Gold Coast Transit DistrictDissolution

Section § 107025

Explanation

This law explains how a district can be dissolved. First, at least 80% of the board's directors must vote in favor. The board and the general manager will handle closing down the district, paying off debts and liabilities, and distributing any leftover assets to its members.

If the directors disagree on how to value property or split up the assets, they must go to arbitration. Three arbitrators will be chosen, one by certain cities and counties, and they will make the final decision about asset valuation and distribution. Arbitration is binding, must follow specific legal procedures, and any related hearings will take place in the county. All required notices will be sent to the district's members.

(a)CA Public Utilities Code § 107025(a) The district may be dissolved upon a supermajority vote of the directors which shall be at least 80 percent of the nonweighted vote of the board. However, the winding up of the district shall be conducted by the board and the general manager. The district shall not be fully dissolved and terminated until all debts, financial obligations, and liabilities are paid in full and any and all remaining assets after payment of all debts, financial obligations, and liabilities are distributed to the members.
(b)Copy CA Public Utilities Code § 107025(b)
(1)Copy CA Public Utilities Code § 107025(b)(1) If the directors cannot agree as to the valuation of the property or to the manner of asset distribution, the question shall be submitted to arbitration, as set forth below, and the directors shall make the distribution or valuation as directed by arbitrators.
(2)CA Public Utilities Code § 107025(b)(2) Three arbitrators shall be appointed. One arbitrator shall be selected by the governing bodies of the Cities of Oxnard and San Buenaventura, one arbitrator shall be selected by the governing bodies of the County of Ventura, the City of Port Hueneme, and the City of Ojai, and one arbitrator shall be selected by the governing bodies of the other members. If no other members exist, the third arbitrator shall be selected by the Presiding Judge of the Ventura County Superior Court.
(3)CA Public Utilities Code § 107025(b)(3) The arbitration shall be binding and shall be conducted pursuant to Title 9 (commencing with Section 1280) of the Code of Civil Procedure. Any hearings shall be held within the county. All notices, including notices under Section 1290.4 of the Code of Civil Procedure shall be given to the governing body of each member.
district dissolution supermajority vote board of directors ...