PRINTER'S NO. 1004
No. 886 Session of 1989
INTRODUCED BY McVERRY, CESSAR, GANNON, GEIST, ROBBINS, KUKOVICH,
DORR, NOYE, DISTLER, CORNELL, BILLOW, COLAIZZO, OLASZ,
COLAFELLA, BATTISTO, TRELLO, FARGO, E. Z. TAYLOR, GIGLIOTTI,
NAHILL, ADOLPH, JOHNSON, SAURMAN, WOGAN, REBER AND BURD,
APRIL 3, 1989
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 3, 1989
AN ACT
1 Amending the act of February 1, 1966 (1965 P.L.1656, No.581),
2 entitled "An act concerning boroughs, and revising, amending
3 and consolidating the law relating to boroughs," further
4 providing for the disposal of personal property and for the
5 opening of bids.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 1201(4) of the act of February 1, 1966
9 (1965 P.L.1656, No.581), known as The Borough Code, amended June
10 24, 1985 (P.L.62, No.24), is amended to read:
11 Section 1201. General Powers.--A borough may:
12 * * *
13 (4) Purchase, acquire by gift, or otherwise, hold, lease,
14 let and convey, by sale or lease, such real and personal
15 property as shall be deemed to be to the best interest of the
16 borough: Provided, That no real estate owned by the borough
17 shall be sold for a consideration in excess of fifteen hundred
18 dollars ($1500), except to the highest bidder after due notice
1 by advertisement for bids in one newspaper of general
2 circulation in the borough. Such advertisement shall be
3 published once not less than ten days prior to the date fixed
4 for the opening of bids, and such date for opening bids shall be
5 announced in such advertisement. The acceptance of bids shall be
6 made only by public announcement at a regular or special meeting
7 of council. All bids shall be accepted on the condition that
8 payment of the purchase price in full shall be made within sixty
9 days of the acceptance of bids. Real estate owned by a borough
10 may be sold at a consideration of fifteen hundred dollars
11 ($1500) or less without advertisement or competitive bidding
12 only after council estimates the value thereof upon receipt of
13 an appraisal by a qualified real estate appraiser.
14 Except as otherwise hereinafter provided in the case of
15 personal property of an estimated sale value of less than [two
16 hundred dollars ($200)] one thousand dollars ($1,000), no
17 borough personal property shall be disposed of, by sale or
18 otherwise, except upon approval of council, by ordinance or
19 resolution. In cases where council shall approve a sale of such
20 property, it shall estimate the sale value of the entire lot to
21 be disposed of. If council shall estimate the sale value to be
22 [two hundred dollars ($200)] one thousand dollars ($1,000) or
23 more, the entire lot shall be advertised for sale once, in at
24 least one newspaper of general circulation in the borough, not
25 less than ten days prior to the date fixed for the opening of
26 bids or public auction, and such date of opening of bids or
27 public auction, shall be announced in such advertisement, and
28 sale of the property so advertised shall be made to the best
29 responsible bidder. Council shall have authority, by resolution,
30 to adopt a procedure for the sale of surplus personal property
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1 of an estimated sale value of less than [two hundred dollars
2 ($200)] one thousand dollars ($1,000) and the approval of
3 council shall not be required for any individual sale that shall
4 be made in conformity to such procedure.
5 The provisions of this clause shall not be mandatory where
6 borough property is to be traded in or exchanged for new borough
7 property.
8 The provisions of this clause requiring advertising for bids
9 and sale to the highest bidder shall not apply where borough
10 real or personal property is to be sold to a county, city,
11 borough, town, township, institution district, school district,
12 volunteer fire company, volunteer ambulance service or volunteer
13 rescue squad located within the borough, or municipal authority
14 pursuant to the Municipality Authorities Act of 1945, is to be
15 sold to a non-profit corporation engaged in community industrial
16 development or where real property is to be sold to a person for
17 his exclusive use in an industrial development program or where
18 real property is to be sold to a non-profit corporation
19 organized as a public library for its exclusive use as a
20 library, or where real property is to be sold to a non-profit
21 medical service corporation as authorized by clause (76) of
22 section 1202 or where real property is to be sold to a non-
23 profit housing corporation as authorized by clause (77) of
24 section 1202 or where real property is to be sold to the
25 Commonwealth or to the Federal Government. When real property is
26 to be sold to a non-profit corporation organized as a public
27 library for its exclusive use as a library or to a non-profit
28 medical service corporation or to a non-profit housing
29 corporation, council may elect to accept such nominal
30 consideration for such sale as it shall deem appropriate. Real
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1 property sold pursuant to this clause to a volunteer fire
2 company, volunteer ambulance service or volunteer rescue squad,
3 non-profit medical service corporation or to a non-profit
4 housing corporation shall be subject to the condition that when
5 the property is not used for the purposes of the company,
6 service, squad or the corporation the property shall revert to
7 the borough.
8 * * *
9 Section 2. Section 1402(b) of the act is amended to read:
10 Section 1402. Regulation of Contracts.--* * *
11 (b) (1) The [acceptance] award of bids shall only be made
12 by public announcement at the meeting at which bids are
13 received, or at a subsequent meeting, the time and place of
14 which shall be publicly announced when bids are received. If for
15 any reason one or both of the above meetings shall not be held,
16 the same business may be transacted at any subsequent meeting if
17 at least five days' notice thereof shall be published in the
18 newspaper aforesaid. Council may request that a certified check,
19 in an amount to be determined, by it, shall accompany every bid
20 and, when requested, no bid shall be considered unless so
21 accompanied.
22 (2) Notwithstanding paragraph (1), council may direct that
23 borough staff receive and open bids during normal business hours
24 and forward the results to council for subsequent award at a
25 public meeting.
26 * * *
27 Section 3. This act shall take effect in 60 days.
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