[HISTORY: Adopted 32 Del. Laws, c. 121; amended in its entirety
72 Del. Laws, c. 116. Subsequent amendments noted where applicable.]
(a)
A Municipal Services Commission for the City of New Castle is hereby
created, the business and affairs of which shall be managed by or
under the direction of a Commission composed of 3 Commissioners who
shall be residents of and qualified voters of the City of New Castle
and who shall have resided in said City for at least 3 years prior
to their appointment.
[Amended 78 Del. Laws, c. 261; 83 Del. Laws, c. 100]
(b)
Each Commissioner shall serve for a term of 4 years from the date
of the Commissioner's appointment. Two Commissioners will be appointed
by the Council of the City. The Mayor of the City of New Castle will
serve as the third Commissioner. In the event of the Mayor's absence,
the City Administrator may serve as a substitute for the Mayor as
the third Commissioner. In the month of March in each year a successor
to the Commissioner whose term expires on April 1 in that year shall
be appointed for the term of 4 years.
[Amended 83 Del. Laws, c. 100]
(c)
Any vacancy during a term shall be filled for the remainder of the
term by appointment of the City Council. In exercising the above appointing
power, the Council shall not appoint one of its own members.
[Amended 83 Del. Laws, c. 100]
(d)
Definitions. The following words, terms and phrases, when used in
this Chapter, shall have meanings ascribed to them in this section:
[Amended 78 Del. Laws, c. 261]
(i)
'Additional Systems' shall include, but is not limited to, systems
for the purpose of furnishing steam, manufactured gas, natural gas,
heat, power, and wired and wireless telecommunications or other communication
services, all as may be approved by resolution of the Council for
the City of New Castle, which approval shall not be unreasonably withheld.
However, any Additional Systems operated by the Commission shall not
interfere with franchise rights granted by the City Council to third
parties, nor shall any franchise right granted by the City Council
to third parties interfere with the rights, duties, obligations, and
responsibilities of the Commission as herein provided.
[Amended 80 Del. Laws, c. 303]
(ii)
'City' shall refer to the City of New Castle;
(iii)
'Commission' shall refer to the Municipal Services Commission
of the City of New Castle;
(iv)
'Commissioner' shall refer to a member of the Municipal Services
Commission of the City of New Castle;
(v)
'Municipal Corporation' shall refer to the City of New Castle as
an incorporated municipality;
(vi)
'Telecommunications' shall include, but is not limited to, internal
communications; communication services to the City of New Castle,
schools, and non-profit institutions; and commercial and residential
voice, data, and video services.
[Amended 78 Del. Laws, c. 261]
(a)
The Commisioners, in April of each year, shall elect one of their
number as President, and shall appoint a Secretary and a Treasurer,
neither of whom need be a Commissioner.
[Amended 80 Del. Laws, c. 303]
(b)
The Treasurer of the Commission shall hold the funds of the Commission
in one or more separate accounts at such banks and trust companies
and upon such terms and conditions as the Commission may by resolution
from time to time prescribe. Checks and other transfer of monies may
be signed by such persons as are authorized by the Commission from
time to time prescribe. The Treasurer shall give such additional bond
as the Commission may require.
[Amended 80 Del. Laws, c. 303]
(c)
No Commissioner shall hold any office of profit under the Commission,
except as otherwise provided in Section 11, or contract with it for
work or supplies.
[Amended 78 Del. Laws, c. 261]
(a)
The Commission shall have control of the water and electric light
supply in the City of New Castle, and the management and operation
of the City water system, the City light system, and any other Additional
Systems approved by City Council and operated by the Commission, which
shall be entirely under its exclusive control, direction, and supervision.
[Amended 80 Del. Laws c. 303; 82 Del. Laws c. 110]
(i)
The Commission, in addition to the power and authority which it now
has to supply and distribute water within the corporate limits of
the City of New Castle, may, in its discretion, supply and distribute
water throughout all of that territory included within three miles
of the corporate limits of said City.
(ii)
The Commission shall determine the person or persons, firm or firms,
corporation or corporations, to which it shall supply and distribute
water throughout said territory included within three miles of the
boundary of said corporate limits; shall fix the rates therefor; shall
regulate the use of said water; and shall supply the same upon such
terms and conditions as may be agreed upon by such person or persons,
firm or firms, corporation or corporations, and the Commission.
(iii)
The Commission shall have and exercise all the power and authority
necessary to the accomplishment of said supplying and distributing
of water throughout the territory included within three miles of the
boundary of said corporate limits as it now has and exercises in the
installation, operation and maintenance of its systems for supplying
and distributing water in the City of New Castle.
(iv)
Whenever the Commission shall deem it necessary or expedient to obtain
private property either within the limits of the City of New Castle
for the purpose of constructing facilities for supplying and distributing
water and/or electricity or without such limits to a distance not
exceeding three miles for the purpose of constructing facilities for
the supplying and distributing of water, the Commission shall advise
the Council of New Castle, in writing, of the location, description
and estimated fair value for which such property is deemed necessary
or expedient, and upon such approval by resolution of the Council
of the City of New Castle, which approval shall not be unreasonably
withheld, the said Commission shall be empowered to acquire such property
by agreement with the owner thereof or if such agreement cannot be
reached, the said property or land may be acquired by condemnation
proceedings as prescribed and fully set forth in Section 25 of an
Act entitled "An Act Amending, Revising and Consolidating the Charter
of the City of New Castle" being Chapter 216 of Volume 27, Laws of
Delaware, and all Acts amendatory thereof and supplemental thereto
for condemning and taking land for the purpose of laying out, opening,
extending or widening of any street, road, lane or alley in the City
of New Castle.
(b)
The Commission may, in its discretion and with the advance approval
of the Council of the City of New Castle, manage and operate, as the
sole provider or in conjunction with any person, firm, association,
corporation, or entity, one or more Additional Systems within the
corporate limits of the City of New Castle. Notwithstanding the foregoing,
the Commission’s operation of any Additional Systems shall not
abridge the rights of the holder of any franchise granted by the Council
of the City of New Castle, nor shall any franchise right granted by
the City Council to third parties interfere with the rights, duties,
obligations, and responsibilities of the Commission as herein provided.
[Amended 80 Del. Laws, c. 303]
(c)
For the purposes set forth in Section 3(a) and Section 3(b) of this
Chapter, the Commission shall have the power to enter into contracts
on behalf of the City and in the name of the Municipal Corporation.
The Commission shall have exclusive charge of the collection of and
shall receive revenue due for water and light and any other Council-approved
Additional System managed and operated by it, and shall fix the rates
for water and light and for goods and/or services furnished by any
such Additional System from time to time.
[Amended 80 Del. Laws, c. 303]
(d)
The Commission may appoint a one or more supervisiors and regulate
their duties, and shall provide for such other employees as may from
time to time be necessary, and shall fix the salary or pay of all
employees.
(e)
The Commission shall provide for all supplies and work that may from
time to time be necessary, and in general shall have full and exclusive
charge of the maintenance and operation of the City water and light
system and the City Council-approved Additional System managed and
operated by it.
[Amended 80 Del. Laws, c. 303]
(f)
The Commission shall have the power to borrow temporarily from time
to time on the faith and credit of the City in order to provide for
the expenses of maintenance, replacement and operation of the water
and light system, as well as any Additional System that the Commission,
in its discretion, chooses to manage and operate; but the Commission
shall have no power to enlarge or extend the water and light system,
plant, mains, lines, or apparatus, or Additional System, except out
of surplus earnings, without the authority and approval of the Council
of the City first had and obtained.
(g)
Notwithstanding anything in this Chapter to the contrary, the Commission,
upon unanimous approval of the Commissioners, and following approval
by resolution of the Council of the City of New Castle, is authorized
and empowered to borrow sums of money through the issuance of revenue
bonds or other debt obligations in the name of the Commission in accordance
with the following provisions:
(i)
The revenue bonds or other debt obligation shall not be backed by
the full faith and credit of the City of New Castle.
(ii)
The revenue bonds or other debt obligations shall be backed by the
revenue generated by the Commission.
(iii)
The Commission shall provide the Council of New Castle and the
Mayor of New Castle with 30 days' advance written notice of its intention
to issue such revenue bonds or other debt obligations.
[Amended 80 Del. Laws, c. 303]
(iv)
The maximum amount of outstanding revenue bonds or other debt obligations
issued under this Section shall not exceed the annual gross revenues
of the Commission for the year preceding the year of the issuance
of such revenue bonds or other debt obligations.
(v)
The proceeds from the revenue bonds or other debt obligations shall
be used solely for expansion of the existing water and electric systems
of the Commission, and the upgrade and maintenance of such systems,
and other capital expenditures for real or personal property deemed
by the Commissioners as reasonably necessary to the operations of
the Commission.
(vi)
Revenue bonds or debt obligations may be issued in one or more service,
shall bear such date or dates, shall mature at such time or times,
shall bear interest at such rate or rates, shall be payable at such
time or times, at such place or places, shall be in such denominations
and shall contain such other provisions as the Commissioners, by unanimous
consent, may provide and shall be set forth in such revenue bonds
or other debt obligations. Revenue bonds may or may not be coupon
bonds and may be registered or otherwise as the Commissioners, by
unanimous consent, deem advisable.
(vii)
The Commissioners shall direct and effect the preparation and
sale of said revenue bonds or other debt obligations at such time
or times, at such price or prices and upon such terms as the Commissioners,
by unanimous consent, deem advisable and all net monies raised from
the issuance of such proceed shall be used in accordance with the
terms of this Act.
(viii)
The form of the revenue bonds or other debt obligations shall
be as prescribed by the Commissioners and all such bonds shall be
signed by a duly authorized commissioner. A facsimile signature may
be imprinted on the bonds in lieu of signature of the aforementioned
Commissioner.
(ix)
Bonds shall be exempt from all state, county and municipal taxes.
(x)
A statement appearing on the bond that the bonds have been duly authorized
shall be deemed and held to be conclusive evidence in favor of the
lawful holder of any such bonds that the terms and conditions of this
Section have been fully met and complied with.
[Amended 78 Del. Laws, c. 261]
(a)
The Commission shall meet at least once every month, and shall have
power to make all needful rules and regulations for their meetings
and for the regulation of the employees.
(b)
The Commission shall have the power to make rules regulating the
use and supply of water and light by and to consumers, and the goods
and/or services furnished by any Additional System(s).
(c)
The Commission shall establish regulations for the payment of bills
for water and light, and any Additional System(s), and may cause suit
to be brought in the name of the Municipal Corporation for all bills
overdue. All sums due for water shall be a lien upon the property
to which such water was furnished in the same ways as the taxes due
the City of New Castle.
(d)
The Commission shall arrange for the prompt collection of all sums
due for water and light, and for services and/or goods furnished by
any Additional System(s), and shall have power to make rules for cutting
off the service when bills are overdue.
(a)
The Commission shall furnish to the Mayor, the Council of the City
and the Trustees of the Common, quarterly, a full statement of their
receipts and expenses.
(b)
The Commission, in December of each year, shall publish an annual
statement and report for the benefit of the Citizens of the City of
New Castle.
[Amended 78 Del. Laws, c. 261]
[Amended 78 Del. Laws, c. 261]
Intentionally omitted.
[Amended 80 Del. Laws, c. 303]
The Commission shall aim, in the operation of the water and
light systems and in fixing the rates therefor, to produce revenue
at least sufficient, when supplemented by fair allowances by the City
for the water and light furnished for public purposes, to pay the
operating expenses of the system and the interest on any water and
light bonds as well as provide for ordinary maintenance.
[Amended 80 Del. Laws, c. 303]
The Commission is intended to be a separate agency of the City
created pursuant to 72 Del. Laws c. 116 for the operation of the water
and light systems and City Council-approved Additional Systems. All
contracts and bills may be in the name of and on behalf of the Commission
or in the name of the Municipal Corporation, through the agency of
the Commission.
[Amended 80 Del. Laws, c. 303]
(a)
The Council of the City shall have the power to remove any Commissioner
upon proper cause shown, but such removal shall be only after charges
made and hearing thereon and by vote of two-thirds of all the members
of the Council of the City.
[Amended 78 Del. Laws, c. 261]
(a)
The Commission shall have full control and direction of all money
borrowed pursuant to Section 3(g) above or borrowed by the City, by
bond issue or otherwise, for the improvement or alteration of the
City's water and light systems.
(b)
All money borrowed pursuant to Section 3(g) above or borrowed by
the City, by bond issue or otherwise, for the alteration or improvement
of the City's water and light systems, shall be held by the Treasurer
of the Commission subject to the direction of the Commission.
[Amended 80 Del. Laws, c. 303]
The President of the Commission shall receive an annual salary
of Three Thousand Six Hundred Dollars ($3,600.00) and each other Commissioner
shall receive an annual salary of Three Thousand Dollars ($3,000.00)
for their services, payable monthly out of the funds of the Commission,
and in addition to their necessary expenses in the performance of
their duties.
[Amended 80 Del. Laws, c. 303]
The Commission shall pay to the City of New Castle an appropriation
of 6% of the Commission’s previous fiscal year’s audited
annual user charges, whether or not collected (the “MSC Contribution”).
Quarterly payments of the MSC Contribution shall be made on or before
June 30, September 30, December 31, and March 31 of each year. The
City Council shall pay monthly out of the general fund of the City
to the Commission for electric services, including street lighting.
The electric service shall be charged at a rate equal to the purchase
of power rate paid by the Commission. The City of New Castle shall
not be charged for water consumption. In the event that the MSC Contribution
drops below $500,000 in any fiscal year (computed on an annual basis),
the Commission and the City of New Castle shall meet and discuss in
good faith an adjustment to the MSC Contribution for that year.
