Article 6. Water Leases For Mechanical Purposes of California Water Code >> Division 11. >> Part 5. >> Chapter 3. >> Article 6.

22550.

The provisions of this article apply only to leases made pursuant to it.

22551.

Whenever a district in the development of its works has the opportunity without increased expenditure to lease for mechanical purposes not inconsistent with the district's purposes the use of water controlled by it, it may do so.

22552.

Whenever the board desires to lease the use of water it shall pass a resolution of intention to do so.

22553.

Immediately after the passage of the resolution the secretary shall give notice of the intention, by publication for at least 20 days in one newspaper published in each affected county if a newspaper is published in it, and, if not, in any newspaper the board selects, and if the board thinks proper, in any other newspapers the board selects.

22554.

The notice of intention to lease the use of water shall state all of the following:
  (a) The board will receive sealed proposals for the lease.
  (b) The lease will be let to the highest responsible bidder.
  (c) The time and place of opening the proposals.

22555.

At the time and place appointed the board shall open in public the proposals to lease the use of water.

22556.

As soon after opening the proposals as may be convenient the board may let the lease in portions or as a whole to the highest responsible bidder or may reject any or all proposals and readvertise for proposals.

22557.

The rental accruing upon a lease of the use of water may vary from year to year as specified in the lease and shall be payable semi-annually on the thirtieth day of December and thirtieth day of June of each year.

22558.

If at any time the rental is not paid on the day fixed, the amount of the rental due shall be doubled, and if not paid within the next succeeding 90 days, the lease shall be forfeited to the district, together with any and all works constructed, owned, used, or controlled by the lessee.

22559.

All money collected on a lease shall be paid into the district treasury and be apportioned to any funds the board deems advisable.

22560.

Upon the letting of any lease, the board may require the lessee to execute a bond for the faithful performance of the covenants of the lease or give such other guaranty of good faith as in its judgment may be necessary.

22561.

The lease may be for a period not exceeding 25 years.