Section 71.8 Of Article 3. Small Craft Harbors And Connecting Waterways From California Harbors And Navigation Code >> Division 1. >> Chapter 2. >> Article 3.
71.8
. (a) A contract or agreement for a transfer pursuant to
Section 70 or a loan pursuant to Section 71.4, for which gross
revenues of a small craft harbor are made the security for repayment
shall include, but is not limited to, provisions requiring the
governing body of the city, county, or district to perform all the
following:
(1) Punctually pay all installments of principal and interest on
money owed to the state.
(2) Continuously operate in an efficient and economical manner all
small craft harbor facilities acquired, constructed, improved, or
completed in full or in part as a result of transfers or loans by the
state.
(3) Make all repairs, renewals, and replacements necessary to the
efficient operation of the small craft harbor facilities and to keep
the facilities in good repair at all times.
(4) Preserve and protect the security interest of the state in all
respects by procuring insurance on the facilities in an amount and
of the type approved by the department.
(5) Subject to subdivision (c), periodically fix, prescribe, and
collect fees, rentals, or other charges for services and facilities
of the small craft harbor facilities sufficient to produce gross
revenues adequate for payment of the following amounts in the order
set forth:
(A) All installments of principal and interest on money owed the
state as they come due.
(B) All expenses of operation, maintenance, and repair of the
small craft harbor facilities.
(C) Any additional sums as may be required by the department for
any sinking fund, reserve fund, or other special fund established for
the further security of the loan or transfer or as a depreciation or
other charge in connection with the small craft harbor facilities.
(6) Repay loans with regard to the revenue-producing features, as
determined by the department, constructed under the loan over a
period not to exceed 30 years.
(7) Repay loans with regard to the non-revenue-producing features,
as determined by the department, constructed under the loan over a
period not to exceed 50 years.
(b) The department may require the contract or agreement to
include a requirement that installments of principal and interest on
money owed the state shall be paid from gross revenues prior to any
other expenditures from those revenues. No loan of funds shall be
made to a city, county, or district unless the loan is approved by
the department as conforming to the policies established by the
department. A contract or agreement shall not be effective until
approved by the Department of General Services for legality, form,
and completeness.
(c) The fees for the use of launching ramps in a small craft
harbor shall not exceed the sum of the following:
(1) The costs of operation and maintenance of the launching ramp
and related harbor facilities, including, but not limited to, access
to the ramp from the shore and the ocean.
(2) The prorated capital costs of that portion of the facility
which is determined by the governing body of the small craft harbor
or boating facility to be necessary to pay amounts specified in
paragraph (5) of subdivision (a).
(d) If the city, county, or district defaults on the payment of
money owed the state, or otherwise fails to perform in accordance
with the terms and conditions of the contract or agreement, the state
shall recover the defaulted loan and the department may assume the
operation and maintenance of the harbor or facility or enter into one
or more contracts for its operation and maintenance.