Opinion ID: 1830956
Heading Depth: 1
Heading Rank: 4

Heading: whether the trial court erred in holding the city was without authority to condemn orange grove's facilities and certificates beyond the city limits.

Text: ¶ 14. The city asserts that its power of eminent domain is derived from the general powers given municipalities in sections 21-27-23 et seq. since water and sewer are excluded from the specific provisions set out in chapter 77 of the code. The city submits that since a municipality is authorized to service areas up to five miles beyond the city limits, it should be able to condemn facilities that are within five miles of the city limits. Miss.Code Ann. § 21-27-39 (1990). ¶ 15. To the contrary, Orange Grove asserts Sections 21-27-23 et. seq. convey no authority for a municipality to condemn property. If there is any authority, Orange Grove submits the more specific statutes set out in Chapter 77 include water and sewer utilities and control over these general statutes. Orange Grove asserts that interpretation of the statutes as the city suggests is absurd since the specific statutes would provide more protection for utility companies within the city limits than the general statutes would provide for utilities outside. Since the city's interest is much stronger within the city limits, Orange Grove asserts this is nonsensical. ¶ 16. A review of the legislative history has yielded no simple answers. There is a dearth of legislative history on this topic. The bill approving the amendments to these statutes was vetoed by Governor William A. Allain in 1987, and the bill was passed after both the house and senate voted to override. However, Gov. Allain's concerns centered around stripping municipalities of eminent domain rights by enacting new safeguards for private utilities. There was no reference to the exemption of water and sewer utilities in his comments to the Mississippi Senate nor were there any comments from the House or Senate members on the topic. See 1987 Mississippi Senate Journal, Vol I Regular Session, 1118. Orange Grove is incorrect. Section 21-27-23 does give municipalities the authority to condemn property necessary for creation and maintenance of public utilities. As the title of the section suggests, this part of the code gives municipalities the authority to acquire property in order to create, maintain, and operate public utility service. Miss.Code Ann. § 21-27-23(f) (Supp.1998). ¶ 17. If the property is acquired through eminent domain, this section requires the exercise be consistent with Sections 11-27-1 through 11-27-51. Id. In this regard, we have held, municipal utility statutes are subordinate to contrary provisions of the 1956 Act if it is clear that the legislature so intended. Cities of Oxford, Carthage, Louisville, Starkville & Tupelo, 704 So.2d at 69 (citing Mississippi Pub. Serv. Comm'n v. City of Jackson, 328 So.2d 656 (Miss.1976)). The provisions of the 1956 Act include the Municipally Owned Utilities Act and the Municipal Electric Power Plant Law of 1936 (§§ 21-27-11, et seq. and 77-5-401, et seq.). Cities of Oxford, Louisville, Starkville & Tupelo, 704 So.2d at 69. ¶ 18. It was not the legislature's intent to subordinate the 1987 amendments (including sections 77-3-17 et seq.) to the 1956 Act. It is clear and has been discussed supra that Section 77-3-21 exempted water and sewer utilities from the amendments requiring cancellation of the existing utility's certificate of public convenience and necessity; however, Section 77-3-17 provides: Any municipality shall have the right to acquire by purchase, negotiation or condemnation the facilities of any utility that is now or may hereafter be located within the corporate limits of such municipality. Miss.Code Ann. § 77-3-17(1991)(emphasis added). ¶ 19. The fact that a part of this same statute excludes water and sewer utilities from the cancellation requirement does not mean the language of section 77-3-17 is subordinate to the 1956 Act. Therefore, this more specific statute controls over the general grant of authority found in Sections 21-27-11 et seq. The plain meaning of this statute leaves no doubt that the city has no authority to condemn areas lying outside its corporate limits. The PSC agreed with this decision in its order in this case. It found: Mississippi Code Annotated, § 77-3-17, which provides that a municipality may have the right to a condemnation of facilities which are now or may hereafter be located within the corporate limits of a municipality refers to the time of enactment, and not that a municipality may condemn facilities outside the corporate limits prior to annexation of said area. Therefore, the Commission finds that the City does not have standing to bring an action for persons located outside the City's corporate limits. There was no error in the lower court's finding that the City of Gulfport was without standing to bring a condemnation action for the area located outside its corporate limits. This assignment is without merit.