The record-union., 1893-09-12
MAYOR STEINMAN'S SIGNATURE.
1t is Finally Attached to Mr., Fish's
Pure Water Contract,
Legal Opinions from City Attorney
Post and General A. L. Hart
Not Under Obligations.

~NOL CAuSA ODiiEdt4OhSs
Pure water is now certainty for Sac
ramento.
The City Trustees, after delaying the
consummation of the contract with A. L.
Fish for three weeks, finally did busi-
ness" with him yesterday, and the Mayor
signed the contract.
Mr.. Fish and his attorney, Judge S. S.
Holl, were present at the session. AS
soon as the water matter was taken up
Clerk Young read two legal opinions on
the subject-one from City Attorney
Post and one from General a. L. Hart.
CITY ATTORNEYS VIEWS.
Mr.. Post, in his opinion, said the board
had full power.to contract for a supply of
water without any popular expression by
vote whatever. He said further: Sec
ton 548 of the Civil Code provides
that no corporation formed to supply
any city, city and county or town with
water must do SO, unless previously au-
thorlzed by an ordinance OF the authOri-
ties thereof, or unless il is done in con
1ormlty with contract entered into be-
tween the city and the corporation. Con-
tracts so made are valid and binding in
law, but do not take from the city the
right to regulate the rates for water, nor
must any exclusive rights be granted.
NO contract or grant must be made tor
term exceeding hfty years. The specl-
hcatlons heretofore published for the in
formation of voters at the late municipal
water election have no binding legal
force upon either your honorable board
or the water company proposing to sup
ply said city with water, unless ratified
py both said parties in the form OF a
properly drawn and executed contract,
and l would suggest that any contract
entered into between said parties should
not contain terms more favorable to said
water company than those contained in
said printed specifications. And / would
further suggest that the city be not
bound by any contract that may be made
between it and said water company to
take any specified amount Of water, but
that the amount to be used be left entirely
at the option OF the city authorities to be
determined from time to time as said au-
thorities may decide.
TO FIX RATES.
"Your honorable board has full power
to fix such monthly water rates to con-
sumers, payable in advance, as will pro-
vide revenue sufficient (and more de-
sired) to meet all obligations when due to
said water company from said city, and
this being true, the necessity for an cleo
ton and q two-thirds affirmative vote
alton, as that necessity only arises when
tho city contracts to assume an obligation
that she mas not the means to discharge
when created, l therefore advise your
honorable board that you may legally en-
ter into a contract with said water COM
pany for supply of pure water for said
city; that sad contract must not be for q
term exceeding fifty years; that said con-
tract must not grant, nor attempt to
grant, any exclusive right, nor TO take
nor attempt to take from the municipal
authorities the exclusive right to regulate
the rates for city water to consumers"
GENERAL HART CONCURs.
General Hart's opinion on the subject
was as follows: Il concur in the conclu-
sion reached by the City Attorney in the
foregoing opinion. The Charter confers
upon the Board of Trustees Of the CITY
the power to provide tOr supplying the
city with water, and to regulate the sale
and distribution thereof. This power
may ordinarily be exercised by the
Board of Trustees without any submis-
sion Of the question to the votes OF the
people. The power to contract for water
supplies is one of the ordinary powers of
the Board of Trustees, and it is only
limited, If 1t is limited at all, by Section
20 of the Charter, which provides that no
debts, obligations or claims shall be con-
tracted or created against city the without
first having been voted upon by the
qualified electors thereof Section y OF
the Charter also requires that no debts or
obligations against the city shall be
created by the Board Of Trustees with
out having the funds in the Treasury
with which to pay the same, except upon
a popular vote at an election, at which at
least two-thirdS of all the votes cast shall
be in favor of creating the debt or obliga-
ton. These limitations upon the powers
OF the board, however, only apply to
case in which debt or obligation is
sought to be created beyond the amount
OF funds in the Treasury to meet the
same.
1T is true at the recent election. vour
honorable board submitted to the DeoDIe
of this city the question OF entering into
contract to supply the city with pure
water. At that election more than a ma
jority voted in favor of the proposition.
but, as l understand it, two-thirds Of the
voters voting at said election did not vote
in favor thereof. Had two-thirds of the
voters voting at said election cast their
votes in favor of proposition to incur an
obligation or debt of any amount, then
undoubtedly, your board would have
been authorized to enter into any contract
involved in the proposition submitted;
but, inasmuch as the vote in favor Of the
proposition amounted to but a bare ma
jority, am of the opinion that under the
charter, with your limited powers, you
which could not be met at this time bv
the funds in the treasury applicable to
such purpose.
CANNOT DELICATE THE CITY.
81 fully concur with your City Attor-
ney in the opinion that your board NAV
enter into contract with any person
willing to agree to furnish pure water to
the city. You cannot, however. make an
agreement which would obligate the city to
take any specific amount OF water which
would create an obligation greater than
that which you would be able to pay or
nquidate with the funds now in the treas
ury. Your power to regulate water rates
and to require payment from consumers
would enable you at all times to preserve
or have in the treasury a sufficient
amount OF funds to pay contractors sup
plying the city with water whenever
their demands become due.
II therefore join the City Attorney in
advising that you have the power to en-
ter into contract with any person or
company for q supply of pure water to
the city. l also concur with him III the
opinion that you cannot obligate the city
beyond the funds in the treasury to
meet such demandl to take any specific
amount of water; and that you are not
bound, either in law or conscience, bv
any of the specifications mentioned in
the contract recently submitted 10 the
votes of the people of this city, and
which were not supported by a ma
jority Of two-thirds OF the voters
voting at said election. The law
limits your power to the making OF
contract for a term exceeding fifty
years, and prohibits you from granting
any exclusive right or from waiving the