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The boards and general managers shall operate the Proprietary Departments for the following purposes, which shall be known as the Departmental Purposes:
Airports: In connection with, or for the promotion and accommodation of air commerce and air navigation.
Harbor: In connection with, or for the promotion and accommodation of maritime commerce, navigation, and fishery.
Water and Power: In connection with, or for the production and delivery of water and electric power, and for the promotion of the conservation of water and power resources.
The board of each Proprietary Department shall have possession, management and control of all property and rights of every kind whatsoever:
(a) conferred upon the department by the Charter;
(b) purchased with funds under its control; or
(c) received through ordinance, or with approval of the board, through other action of the Council or from any other source, if consistent with Departmental Purposes.
(a) Special Funds. Each Proprietary Department shall have one or more special funds including accounts or subaccounts for the purpose of segregating its revenues from other money of the City.
(b) Expenditures. The board of each Proprietary Department shall have control over its special funds, consistent with other provisions of the Charter. For Departmental Purposes, a board shall have the power to appropriate and expend all money in the department’s special revenue funds and of all money derived from the sale of bonds of the department.
(a) Appointing Authority. The board of each Proprietary Department shall appoint the general manager subject to confirmation by the Mayor and Council, and shall remove the general manager subject to confirmation by the Mayor. A general manager removed pursuant to the provisions of this section may appeal the removal to the Council in the manner provided in Section 508(e).
(b) Annual Review. The board of each Proprietary Department shall evaluate its general manager at least annually and shall set or adjust the compensation of the general manager within guidelines established by Council, after recommendations concerning those guidelines have been made to the Council by the City Administrative Officer. The board shall forward a copy of its performance evaluation and salary determination to the Mayor and Council.
(c) Powers and Duties. The powers and duties of general managers contained in Section 509 shall apply to general managers of the Proprietary Departments. Additionally, the board of each Proprietary Department may authorize its general manager to contract on behalf of the department where the contract does not involve payment or receipt of money or consideration reasonably valued in excess of a monetary limit provided by ordinance.
(d) Alternate Title. The board of each Proprietary Department may designate an alternate title for the general manager, including but not limited to chief executive officer or executive director.
SECTION HISTORY
Amended by: Subsec. (b) amended and Subsection (d) added, Charter Amendment II, approved November 5, 2024, effective January 8, 2025.
(a) For Departmental Purposes. Subject to any limitations imposed upon a specific proprietary board in this Article, each board shall have the power to grant and set the terms and conditions for any franchise, concession, permit, license, or lease concerning any property under its control that will further Departmental Purposes or anything incidental to those purposes and, with respect to the Harbor Department, will not be inconsistent with any trust upon lands held by the City.
(b) For Non-Departmental Purposes. The board of each Proprietary Department shall have the power to grant a license or to enter into a lease concerning property under its control for purposes other than Departmental Purposes, if the board finds in writing that:
(1) the property to be licensed or leased is not presently needed for Departmental Purposes;
(2) the grant of the license or lease will not interfere with Departmental Purposes; and
(3) with respect to the Harbor Department, the license or lease is not inconsistent with any trust upon lands held by the City.
Board action granting franchises, concessions, permits and licenses or approving leases shall be taken by order or resolution. If the board’s order or resolution grants a franchise, permit or license or approves a lease for a term greater than five years, it shall be submitted to Council for its approval or disapproval. The Council may, by ordinance, further define what constitutes a term of more than five years. Unless Council takes action disapproving the franchise, permit, license or lease within 30 days after submission of it to Council, the franchise, permit, license or lease shall be deemed approved. If Council does not approve the franchise, permit, license or lease, Council shall return it to the originating board for reconsideration and resubmission. Any order or resolution granting a franchise for a term of more than five years shall be published once in the same manner as ordinances of the City and shall take effect 30 days after publication.
Franchises, concessions, permits, licenses and leases shall be subject to further limitations specified in this Article for each Proprietary Department and the following:
(a) Length. The term shall not exceed 30 years or the term specified by applicable federal or state law, whichever is less. If Council makes a finding that a term longer than 30 years would be in the best interest of the City, Council may, by a two-thirds vote, subject to Mayoral veto, or three-fourths vote over the veto of the Mayor, authorize a term up to 50 years for the Airports Department and Department of Water and Power and a term up to 66 years for the Harbor Department, or the maximum period allowed by any federal or state law, whichever is less.
(b) Compensation Adjustments. Every franchise, concession, permit, license, or lease shall include a procedure to adjust the compensation periodically but in no case shall the period between adjustments exceed five years.
SECTION HISTORY
Amended by: Charter Amendment P § 1, approved March 7, 2017, effective April 13, 2017.
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