City of Monrovia v. Black

264 P. 286, 88 Cal. App. 686
CourtCalifornia Court of Appeal
DecidedJanuary 28, 1928
DocketDocket No. 5900.
StatusPublished
Cited by1 cases

This text of 264 P. 286 (City of Monrovia v. Black) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Monrovia v. Black, 264 P. 286, 88 Cal. App. 686 (Cal. Ct. App. 1928).

Opinion

SHAW, J., pro tem.

This is au original proceeding in this court for a writ of mandate, by which the City of *687 Monrovia seeks to compel the defendant, as city clerk of said city, to countersign certain proposed city bonds, and to affix its corporate seal thereto. The petition sets up the proceedings leading up to the proposed issuance of bonds, and the matter is submitted to us on the petition and the defendant’s demurrer thereto.

The proceedings in question were taken under the act of February 25, 1901 [Stats. 1901, p. 27], providing for the issuance of municipal bonds. This statute must be substantially complied with in the issuance of bonds thereunder. The authority of the legislative body of a city to issue such bonds arises only after a compliance with the statute in relation to conditions precedent. (City of Inglewood v. Kew, 21 Cal. App. 611 [132 Pac. 780].)

In this case the board of trustees, which is the legislative body of petitioner, passed a preliminary resolution in which they declared “that the public interest and necessity demand the acquisition, construction and completion by said City of Monrovia, of a certain revenue producing improvement,” described the improvement, and estimated its cost in three separate parts, each of which was thereafter treated as a distinct improvement. Following this they passed an ordinance, which referred to the preliminary resolution, and its estimates of cost, and submitted to the qualified voters of the city three distinct propositions of incurring a bonded debt to be voted on separately. Except as hereinafter stated, these propositions agreed as to the amount and purpose of the bonded debt with the estimates above mentioned. Pursuant to this ordinance, an election was held, at which each of said propositions received a two-thirds affirmative vote. Thereafter, three ordinances were passed, each providing for the issuance of a separate series of bonds for one of said propositions and requiring the city clerk of said city to countersign the bonds and affix the corporate seal thereto. The defendant has refused to act upon the bond issues based on the first and third propositions, claiming that the proceedings therefor are irregular.

Defendant contends as to each separate proposition that the proceedings are defective because the board of trustees did not in the preliminary resolution declare that the estimated cost of each proposed improvement will be too great to be paid out of the ordinary annual income *688 and revenue of the city. It is clear from the Avording of the preliminary resolution above mentioned that the statement on this point therein made applies only to the aggregate cost of all three of the proposed improvements mentioned therein. Section 2 of the above-mentioned statute provides, omitting immaterial parts, that “ivhenever the legislative branch of any city . . . shall by resolution . . . determine that the public interest or necessity demands the acquisition, construction or completion of any municipal improvement . . . the cost of Avhich will be too great to be paid out of the ordinary annual income and revenue of the municipality, it may at any subsequent meeting . . . order the submission of the proposition of incurring a bonded debt for the purpose set forth in said resolution to the qualified voters of said city. . . . The ordinance calling such election shall recite the objects and purposes for Avhich the indebtedness, is proposed to be incurred, the estimated cost of the proposed public improvements, the amount of the principal of the indebtedness to be incurred therefor and the rate of interest to be paid on said indebtedness. ” This statute clearly requires the fact that the cost Avill be too great to be paid out of the ordinary annual income and revenue to exist separately as to each improvement the issue of bonds for Avhich is to be separately submitted to the voters. Petitioner argues, hoAvever, that while the fact must exist, the statute does not require it to be stated in the preliminary resolution, and hence its omission is not fatal to the validity of the bonds. There appears to be no decision on this point, but there are some eases which have a bearing upon it.

In Clark v. Los Angeles, 160 Cal. 30, 43 [116 Pac. 722], the court said: “The objection that the council, before calling the election, did not make an estimate of the cost of the proposed improvement, is not sustained by the record. Section 2 of the Bond Act requires that the ordinance calling the election shall recite ‘the estimated cost of the proposed public improvements,’ and the provisions of the section authorize a bond issue when the cost of the improvement is too great to be paid out of ordinary annual revenues of the city. Both the original resolution of intention to establish the improvement and the ordinance calling the election declare that the estimated cost of the proposed improvement *689 was three million five hundred thousand dollars. This was a sufficient compliance with the statute. It will be presumed from this recital that the council did previously make the estimate stated.”

In City of Inglewood v. Kew, supra, the court held that a proper estimate of the cost is a necessary part of the preliminary resolution and also said: “The right to issue bonds is restricted to instances where such estimated cost exceeds the ordinary annual income. The elector is entitled to know the estimated cost and the necessity which has arisen, and this notice is imparted to him by the election ordinance duly published.”

While the point now before us is not precisely the same as that raised in these cases, yet the two points are closely related, being derived from the same sentence of the statute, and the absence from the cases cited of any declaration that the statement now under consideration must be contained in the preliminary resolution or in the election ordinance suggests at least that the courts deciding those cases did not regard it as necessary.

In Cary v. Blodgett, 10 Cal. App. 463, 470 [102 Pac. 668], the court said: “The duty of determining the necessity for the expenditure and the propriety of submitting it to the electors and the particular phraseology in which it shall be expressed is cast upon the trustees, subject to a reasonable and practicable regard for the right and privilege of the electors to he informed as to the purposes and cost of the proposed improvement, that they may exercise at the polls an intelligent and discriminating judgment as to their own interests and the public welfare.” This language suggests a sufficient reason for a distinction between the estimate of cost and the declaration that such cost will be too great to be paid out of the ordinary annual income. The purpose of these preliminary proceedings is to inform the voters of the matters on which they are voting. The mere description of a proposed improvement in general terms such as will comply with the statute does not afford the basis of even an intelligent guess as to its probable cost. An estimate of the cost is within the power of the legislative body alone, who may be supposed to know better than anyone else what is the exact nature of the improvement which they propose and how much they expect it to *690

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Bluebook (online)
264 P. 286, 88 Cal. App. 686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-monrovia-v-black-calctapp-1928.