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Sec. 678. Powers and Duties of the General Manager.
 
   In addition to the powers described in Section 604, the general manager of the department shall have the power and duty to:
 
   (a)   enforce all orders, rules and regulations adopted by the board;
 
   (b)   supervise and manage the design, construction, maintenance and operation of all work or improvements authorized or ordered by the board; and
 
   (c)   carry out all powers and duties of the department delegated by the board.
 
 
Sec. 679. Water and Power Revenue Funds.
 
   (a)   Water Revenue Fund. All revenue from every source collected by the department in connection with its possession, management and control of the Water Assets of the City shall be deposited in the City Treasury to the credit of the Water Revenue Fund.
 
   (b)   Power Revenue Fund. All revenue from every source collected by the department in connection with its possession, management and control of the Power Assets of the City shall be deposited in the City Treasury to the credit of the Power Revenue Fund.
 
   (c)   Use of Funds. The money in the Water Revenue Fund and Power Revenue Fund may not be appropriated, transferred or expended for any purposes except the following:
 
   (1)   Operation and Maintenance. For the necessary expenses of operating the department, including the operation, promotion and maintenance of the Water and Power Assets for Departmental Purposes.
 
   (2)   Retirement of Indebtedness. For the payment of the principal and interest, due or coming due during the fiscal year in which the revenues are received, or are to be received, upon outstanding notes, certificates or other evidences of indebtedness issued against revenues from the Water or Power Assets or bonds or other evidences of indebtedness of the department.
 
   (3)   Development of Assets. For the necessary expenses of constructing, extending and improving the Water or Power Assets, including the purchase or condemnation of lands, water rights and other property for Departmental Purposes.
 
   (4)   Reimbursements. For reimbursement to another department or office of the City on account of services rendered, or materials, supplies or equipment furnished to support Departmental Purposes.
 
   (5)   Promotion of Business. For the promotion of any of its products or services.
 
   (6)   Promotion of Conservation. For the development, or promotion or use of systems, equipment, devices or materials by department customers that conserve utilization of water, electric energy and related departmental services.
 
   (7)   Employee Benefits. For defraying the expenses of any pension or retirement system and health or other benefits applicable to the employees of the department.
 
   (8)   Bond Reserve Funds. For establishing and maintaining a reserve fund to insure the payment at maturity of the principal and interest on all bonds now outstanding or hereafter issued for Departmental Purposes and the money set aside and placed in these funds shall remain in the funds until expended and shall not be transferred to the Reserve Fund of the City.
 
   (9)   General Fund Transfers. To be transferred to the City General Fund as provided in Section 344.
 
 
Sec. 680. Other Enterprises.
 
   (a)   Entry into Any Other Business. Notwithstanding any provision in the Charter to the contrary, the Council, upon making a finding that it is in the best interests of the City, may by ordinance authorize the department to engage in any lawful business enterprise that is in the best interests of the City’s inhabitants and that will not interfere with the department’s role as a provider of water and power to the City’s inhabitants.
 
   (b)   Entry into Public Utility Competition. Without limiting the provisions of subsection (a), the Council may by ordinance adopted by a two-thirds vote and approved by the Mayor, or passed by three-fourths vote of the Council over the veto of the Mayor, authorize the department to provide electricity service or any other service, which may be provided by another utility or direct competitor to any person or entity, whether situated inside or outside of the City or the State of California.
 
   (c)   Prohibition of Entry into Water Service Outside Service Area. Water service or products that would be provided outside the department’s retail service area are specifically excluded from the provisions of this section.
 
   (d)   No Limitation on Department. Nothing in this section limits any right, power or authority granted to the department or to the board elsewhere in the Charter.
 
 
Sec. 681. Division of Departmental Functions.
 
   (a)   Division. Notwithstanding any provision in the Charter to the contrary, the board shall have the power to divide the functions of the department into two divisions. A Division of Water Services shall carry out the Departmental Purposes associated with water and a Division of Electric Services shall carry out the Departmental Purposes associated with electric energy. Each division shall be directed by a general manager appointed, removed and evaluated, and vested with the same powers and duties provided in Sections 604 and 678.
 
   (b)   Consolidation. Upon the division of departmental functions provided in subsection (a), the board shall have the power to discontinue the divisions and consolidate the functions of the department under the direction of a single general manager.
 
 
Sec. 682. Health Benefits.
 
   The Board of Water and Power Commissioners may provide by order or resolution for health insurance and similar benefits to active employees and department retirees. The board shall determine eligibility and required contributions and other terms and conditions in its order or resolution establishing or modifying these benefits.
 
 
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