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HomePublic Utilities CodeDiv. 5Ch. 1Art. 2§ 10059 Municipal Utility Sale Authorization

§ 10059 Municipal Utility Sale Authorization

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10059 Municipal Utility Sale Authorization

This law lets a city council let the mayor (or other top official) sign a paper that gives a public service, like a water plant, to the highest bidder after the bidder pays all the money and promises to keep the service running.

Key Takeaways

  • •The city council must first accept a bid.
  • •A resolution lets the mayor (or chief officer) sign the deed on the city’s behalf.
  • •The bidder must pay the full cash amount and promise to keep operating the utility.
  • •The deed transfers all of the city’s ownership and rights in the utility to the bidder.

Example

The city wants to sell its old water treatment plant. A private company offers the highest price, pays the full amount in cash, and promises to keep providing clean water to residents.

The city council can pass a resolution letting the mayor sign a deed that transfers ownership of the plant to the company. Once the cash is received and the promise is made, the deed gives the company all the city’s rights to run the plant.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10059 Municipal Utility Sale Authorization

When a bid is accepted by the legislative body of the municipal corporation, the legislative body may by resolution authorize its mayor, or president of its board of trustees, or other chief executive officer, and its clerk to execute, acknowledge, and deliver on behalf of the municipal corporation, in its name and under its corporate seal, a deed conveying the public utility to the successful bidder upon receiving from him in cash the full amount of the bid and the promise of the bidder to continue to operate the public utility. The deed shall operate to convey to the successful bidder all of the municipality’s right, title, interest, and estate in and to the public utility described in the deed. (Enacted by Stats. 1951, Ch. 764.)

Last verified: January 11, 2026

Key Terms

legislative bodymunicipal corporationdeedpublic utilitysuccessful bidderright, title, interest, and estate

Related Statutes

  • § 10052 Municipal Utility Sale Approval
  • § 10061 Water Or Sewer Utility Disposition
  • § 10051 Municipal Utility Sales Authority
  • § 10057 Public Utility Sale Process
  • § 10058 Public Utility Bid Process

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 10059.
View Official Source