2.104.450 Trusteeship—Appointment when—Powers.
A. The city by resolution of the city council after a public hearing held with notice to the public corporation may petition the superior court to impose a trusteeship over a public corporation organized pursuant to this chapter and to appoint the trustees therefor under any of the following circumstances:
1. The board of directors of the public corporation has requested same by resolution;
2. The public corporation has filed a statement of dissolution preparatory to termination of its existence;
3. The public corporation becomes insolvent or otherwise unable to carry out its contractual obligations to creditors and other persons;
4. The charter was procured through fraud or misrepresentation of any material that has an effect upon the projects or activities to be undertaken;
5. The public corporation has filed an annual report with the city clerk that is false or deceptively misleading on a material matter;
6. The public corporation is incompetent or ineligible to carry out the public purposes for which it was chartered;
7. The public corporation has misused, abused or continuously exceeded the power or authority conferred by this chapter or its charter, or committed repeated violations of this chapter or its charter; or
8. The assets of the public corporation have been or are committed to be misapplied or wasted, or illegally expended, or a material violation of this chapter has been committed or is about to be committed, and the city council determines that intervention as provided in Section 2.104.440 would not be feasible under the circumstances.
B. The trustees appointed by the superior court shall take such actions as necessary during the trusteeship to achieve the object thereof as reasonable. The trustees shall have the power and authority to reorganize the public corporation and amend its charter and/or its rules and regulations; suspend and/or remove corporate officials, and manage the assets and affairs of the public corporation; and exercise any and all corporate powers as necessary or appropriate to fulfill outstanding agreements, to restore the capability of the public corporation to perform the functions and activities for which it was chartered, to reinstate its credit or credibility with its creditors or obligees; and, if so authorized by the superior court, to oversee its dissolution. (Ord. 1016-84 § .450, 1984.)