City of Oakland v. Williams

274 P. 328, 206 Cal. 315, 1929 Cal. LEXIS 599
California Supreme Court·Decided January 30, 1929·No. Docket No. S.F. 13079.·Published·Cited by 34 cases

Opinion

*318 SEAWELL, J.

Petition for a writ of mandamus to compel Harry GL Williams, as the auditor of the City of Oakland, county of Alameda, to certify that there remained unexpended and unapplied a balance of an appropriated fund applicable to pay the estimated expense of a certain contract, according to the freeholders’ charter of the city of Oakland, section 131, awarded by the board of port commissioners of the City of Oakland to the J. Gr. Wilson Corporation for furnishing rolling steel door supplies proposed to be used in the construction of a warehouse which said board of port commissioners had contracted to construct and lease to Rosenberg Bros. & Co., a private corporation extensively engaged in packing, processing and shipping dried fruits a.nd related products in large shipments to domestic and foreign ports. Said warehouse, according to plans, will cost approximately $400,000 and occupy about seven acres of the hundreds of acres of vacant tide and submerged lands, filled and unfilled, lying between the uplands of said City of Oakland and the low-water marks of the San Francisco Bay and the Estuary San Antonio, which lands were .granted by the state to said city by an act approved May 1, 1911 (Stats. 1911, p. 1258), in trust for the uses and purposes therein named. Said warehouse is to be constructed at the Fourteenth Street Wharf Terminal, parallel to an existing transit shed of equal length and separated from said shed by public spur railroad tracks.

The authority of the board of port commissioners to enter into the lease and contract with said Rosenberg Bros. & Co. was challenged by two suits instituted in the superior court of the county of Alameda, wherein an injunction was sought in each action against said board and certain officials of said city, commanding them to desist and refrain from doing any act under or incurring any liability or obligations against said city by reason of said lease and contract, which threatened acts were claimed to be in excess of the power of said board on the ground that said contract attempted to obligate said eity to expend $400,000 of its funds for a private purpose. The auditor, as a measure of protection to himself and bondsmen, declined to indorse his certificate upon said lease and contract. By reason of the public importance of the matter the suits commenced *319 in the county of Alameda were held in abeyance and this proceeding was instituted for the purpose of expediting the determination of the questions raised in said actions.

The main point pressed by intervener William F. Hammer, who was the plaintiff in the actions instituted in the superior court of the county of Alameda, is that said lease attempts to authorize the use of public funds for a private purpose, in violation of article I, section 14, state constitution.

The importance of the development of the natural harbor and seaport advantages which the City of Oakland, situate on the easterly side of the San Francisco Bay, with direct and spacious connection with the Pacific Ocean, offers to the immense agricultural and commercial districts of northern and central California, is not questioned. It is admitted that said city and port is the terminus of three transcontinental railroads and one intrastate railroad. In addition to these transportation lines, an immense volume of agricultural, orchard, dairy and general farm and ranch products of the state and factory products from without, is also carried into said city by many public transportation companies and by private conveyances, destined for foreign shipment, but because of the lack of reasonable harbor development and improvements vessels of reasonable tonnage were unable to enter said harbor. It is alleged, and not denied, that the declared policy on the part of the City of Oakland, which had been the subject of long public discussion, to adopt a comprehensive and concrete program of development has attracted and is still attracting manufacturers in all industrial lines to establish large factories and plants in said city and territory adjacent thereto, because of its favorable situs for the transportation of commerce to domestic and foreign ports and countries by both land and sea. Responding to this growing demand, the City of Oakland submitted the proposition of issuing bonds in the amount of $9,960,000, to be known as the Oakland Harbor Improvement Bonds, to the electors of said city, which issue was duly approved May 18, 1926. Said bond issue was for the following purposes:

“The acquisition, construction and completion by the City of Oakland of a certain municipal improvement on or near the Estuary of San Antonio and on or near the *320 western waterfront of said city, consisting of systems of wharves, docks, piers, slips, bulkheads, quays, and terminal facilities, including channels, water ways, turning basins, courses and docking spaces, roadways, trackage and approaches, transit sheds, warehouses, cold storage facilities, mechanical handling appliances, construction and maintenance equipment, fire boat and house therefor, the extension of the high pressure fire system of said city to said improvement, and such works, structures and property as may be necessary or convenient for the accommodation of shipping by rail or water, and also lands, rights of way; and other easements, property and property rights, necessary or appurtenant to said municipal improvement.”

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City of Oakland v. Williams, 274 P. 328, 206 Cal. 315, 1929 Cal. LEXIS 599 (Cal. 1929).

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