PRINTER'S NO. 4220
No. 3080 Session of 1994
INTRODUCED BY NAILOR, TRELLO, MERRY, SATHER, MELIO, MASLAND,
CESSAR, FLEAGLE, FARGO, WAUGH, BARLEY, SANTONI, LEH, TULLI,
L. I. COHEN, E. Z. TAYLOR, GEIST, GODSHALL, MILLER, LYNCH AND
MARSICO, SEPTEMBER 28, 1994
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, SEPTEMBER 28, 1994
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
5 regulation of contracts.
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
10 December 14, 1989 (P.L.626, No.73), 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 or advertisement of a public auction
2 in one newspaper of general circulation in the borough. Such
3 advertisement shall be published once not less than ten days
4 prior to the date fixed for the opening of bids or public
5 auction, and such date for opening bids or public auction shall
6 be announced in such advertisement. The acceptance of bids shall
7 be made only by public announcement at a regular or special
8 meeting of council or at the public auction. All bids shall be
9 accepted on the condition that payment of the purchase price in
10 full shall be made within sixty days of the acceptance of bids.
11 The borough council shall have the authority to reject all bids
12 if such bids are deemed to be less than the fair market value of
13 the real property. In the case of a public auction, the borough
14 council may establish a minimum bid based on the fair market
15 value of the real property. Real estate owned by a borough may
16 be sold at a consideration of fifteen hundred dollars ($1500) or
17 less without advertisement or competitive bidding only after
18 council estimates the value thereof upon receipt of an appraisal
19 by a qualified real estate appraiser.
20 Except as otherwise hereinafter provided in the case of
21 personal property of an estimated sale value of less than [two
22 hundred dollars ($200)] one thousand dollars ($1,000), no
23 borough personal property shall be disposed of, by sale or
24 otherwise, except upon approval of council, by ordinance or
25 resolution. In cases where council shall approve a sale of such
26 property, it shall estimate the sale value of the entire lot to
27 be disposed of. If council shall estimate the sale value to be
28 [two hundred dollars ($200)] one thousand dollars ($1,000) or
29 more, the entire lot shall be advertised for sale once, in at
30 least one newspaper of general circulation in the borough, not
19940H3080B4220 - 2 -
1 less than ten days prior to the date fixed for the opening of
2 bids or public auction, and such date of opening of bids or
3 public auction, shall be announced in such advertisement, and
4 sale of the property so advertised shall be made to the best
5 responsible bidder. Council shall have authority, by resolution,
6 to adopt a procedure for the sale of surplus personal property
7 of an estimated sale value of less than [two hundred dollars
8 ($200)] one thousand dollars ($1,000) and the approval of
9 council shall not be required for any individual sale that shall
10 be made in conformity to such procedure.
11 The provisions of this clause shall not be mandatory where
12 borough property is to be traded in or exchanged for new borough
13 property.
14 The provisions of this clause requiring advertising for bids
15 or sale at public auction and sale to the highest bidder shall
16 not apply where borough real or personal property is to be sold
17 to a county, city, borough, town, township, institution
18 district, school district, volunteer fire company, volunteer
19 ambulance service or volunteer rescue squad located within the
20 borough, or municipal authority pursuant to the Municipality
21 Authorities Act of 1945, is to be sold to a non-profit
22 corporation engaged in community industrial development or where
23 real property is to be sold to a person for his exclusive use in
24 an industrial development program or where real property is to
25 be sold to a non-profit corporation organized as a public
26 library for its exclusive use as a library, or where real
27 property is to be sold to a non-profit medical service
28 corporation as authorized by clause (76) of section 1202 or
29 where real property is to be sold to a non-profit housing
30 corporation as authorized by clause (77) of section 1202 or
19940H3080B4220 - 3 -
1 where real property is to be sold to the Commonwealth or to the
2 Federal Government. When real property is to be sold to a non-
3 profit corporation organized as a public library for its
4 exclusive use as a library or to a non-profit medical service
5 corporation or to a non-profit housing corporation, council may
6 elect to accept such nominal consideration for such sale as it
7 shall deem appropriate. Real property sold pursuant to this
8 clause to a volunteer fire company, volunteer ambulance service
9 or volunteer rescue squad, non-profit medical service
10 corporation or to a non-profit housing corporation shall be
11 subject to the condition that when the property is not used for
12 the purposes of the company, service, squad or the corporation
13 the property shall revert to the borough.
14 * * *
15 Section 2. Section 1402(b) of the act, amended February 14,
16 1990 (P.L.60, No.10), is amended to read:
17 Section 1402. Regulation of Contracts.--* * *
18 (b) (1) The [acceptance] award of bids shall only be made
19 by public announcement at the meeting at which bids are
20 received, or at a subsequent meeting, the time and place of
21 which shall be publicly announced when bids are received. If for
22 any reason one or both of the above meetings shall not be held,
23 the same business may be transacted at any subsequent meeting if
24 at least five days' notice thereof shall be published in the
25 newspaper aforesaid. At council's request, all bids advertised
26 for shall be accompanied by cash, money order, a certified or
27 cashier's good faith check, or a bond with corporate surety in
28 such amount as council shall determine, and, when requested, no
29 bid shall be considered unless so accompanied.
30 (2) Notwithstanding clause (1), council may direct that
19940H3080B4220 - 4 -
1 borough staff receive and open bids during normal business hours
2 and forward the results to council for subsequent award at a
3 public meeting.
4 * * *
5 Section 3. This act shall take effect in 60 days.
G18L08WMB/19940H3080B4220 - 5 -