SENATE BILL NO. 412
AN ACT TO AMEND CERTAIN PROVISIONS OF SECTION 8-200(5) OF THE CITY OF WILMINGTON HOME RULE CHARTER.
WHEREAS, Section 8-200(5) of the City's Home Rule Charter provides, in part, that when the term of a contract with the City exceeds four years the City has the right to terminate the contract at the option of the City at any time after the expiration of four years without the city incurring any liability to the other party for damages or loss of profits which would be realized by the other party had the contract not been terminated; and
WHEREAS, The City does not have the authority to waive its right to terminate under Section 8-200(5); and
WHEREAS, the termination provision under Section 8-200(5) is, in some instances, a deterrent to the City's ability to enter into long-term contracts for the benefit of the citizens of Wilmington due to the reluctance of entities to enter into long-term contracts with the City because of the City's right to terminate, without cause, at any time after four years without any obligation to pay damages or lost profits to the other party; and
WHEREAS, it is in the best interests of the citizens of Wilmington to allow the City to naive its right to terminate under Section 8-200(5), at its option, if approved by City council.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):
Section 1. Amend Section 8-200(5) of the Wilmington City Code by adding after the phrase "would have been realized had the contract not been terminated;", the phrase:
"except that, upon the approval of City Council, the City may omit insertion of the clause and waive its right to terminate under this Section."
Approved July 8, 1998