8 Pa.C.S. Ch. 24

in effect

8 Pa.C.S. § 24A01 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Municipal power agency." A separate body politic and corporate under the laws of this Commonwealth created by agreement between or among two or more boroughs pursuant to section 24A04 (relating to municipal power agencies). "Project." Electric plants, hydroelectric plant works, system, facilities or real or personal property, together with their parts and appurtenances, used or useful in connection with the generation, production, transmission, purchase, sale, exchange or interchange of electric power or energy, or any interest therein or right to capacity thereof. "Revenue bond." An instrument imposing an obligation for the repayment of money borrowed, payable as to both principal and interest exclusively from the income and revenues derived from an interest in an electric plant or project.

8 Pa.C.S. § 24A02 General powers.

(a) Electric plants and projects.--A borough may, either singly or jointly, manufacture or purchase electricity for the use of its inhabitants and own, construct, acquire by lease, purchase or otherwise gain an interest in, operate and manage or cause to be operated and managed an electric plant or project located within or without this Commonwealth. In the exercise of these powers, a borough may join with any other borough, political subdivision, agency or instrumentality of the Federal Government, State government, political subdivision of another state, private corporation empowered to supply electricity, electric cooperative corporation formed under 15 Pa.C.S. Ch. 73 Subchs. A (relating to preliminary provisions) and B (relating to powers, duties and safeguards) or previously formed under the former act of June 21, 1937 (P.L.1969, No.389), known as the Electric Cooperative Corporation Act, or an electric cooperative corporation in another state. (b) Contracts for supplying electricity.--A borough owning or operating an electric plant may make contracts for supplying electricity for commercial purposes outside the limits of the borough if the borough has received the consent of the other municipal governing body and, if applicable, subject to 66 Pa.C.S. Pt. I (relating to Public Utility Code). (c) Additional sources.--A borough may conduct studies as necessary to determine the feasibility and cost of any additional sources and supplies of electric power and energy and may cooperate with private power companies, other boroughs, electric cooperative corporations and other public or private electric power entities, within or without this Commonwealth, in the development of electric power and energy. (d) Consent of borough to supply electricity.--No person, partnership or corporation may introduce electric current for light, heat or power purposes, without the consent of the council, into the limits of any borough that is furnishing electric current to its inhabitants. This subsection shall not apply to any person, partnership or corporation manufacturing electricity exclusively for its own use. (e) Corporate rights.--Nothing in this chapter may conflict with the corporate rights of a corporation empowered to supply electricity in the territory adjacent to the borough or with the rights of any other municipality. (f) Restrictions.--A borough shall not become a stockholder in, obtain or appropriate money for or loan its credit to a corporation, association, institution or individual or otherwise act contrary to the provisions of section 9 of Article IX of the Constitution of Pennsylvania. (g) General powers.--A borough, through its governing body, shall have the power to do and accomplish all actions reasonably necessary and incident to the administration, operation and management of a plant or project. Cross References. Section 24A02 is referred to in sections 24A03, 24A05 of this title.

8 Pa.C.S. § 24A03 Specific powers.

(a) Specific powers enumerated.--In addition to exercising its general powers under section 24A02 (relating to general powers), a borough, through its governing body, shall have the following powers: (1) To contract for the purchase, sale, exchange, interchange, wheeling, pooling or transmission of electric power and energy or for the right to the capacity of electric power, inside and outside of this Commonwealth, to and from any public or private power entities, private power companies, other boroughs and electric cooperative corporations. The sale of electric power to a borough for resale inside the limits of the borough and the sale of electric power by a borough inside the limits of the borough shall be exempt from the tax imposed under section 1101 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. (2) To regulate the use of and the charge for electricity furnished by the borough for use throughout the borough. A borough may fix, establish, maintain and collect or authorize by contract or otherwise the establishment, levying and collection of the rates, fees, rental or other charges, including connection charges, for the services afforded by or in connection with any properties which the borough constructs, erects, owns, acquires, operates or manages and for the sale or transmission of electric energy and power as it deems necessary, proper, desirable and reasonable. (3) To procure insurance against any losses in connection with its property, operations or assets in the amounts and from the insurers as the governing body or bodies deem desirable. (4) To contract for and to accept any gifts, grants or loans of funds, property or financial or other aid in any form, from the United States or any agency or instrumentality of the United States or from any other source. (5) To lease, or otherwise grant the use of, and to make charges for the use of any property or facility owned or controlled by the borough. (6) To procure from the United States or any agency or instrumentality of the United States, or from any state or agency or instrumentality of a state, any consents, authorizations or approvals which may be requisite to enable ownership, operation, construction or repair. (7) To borrow money and from time to time to issue revenue bonds and to enter into agreements with the purchasers of the revenue bonds. A borough that incurs debt for the construction or purchase of an electric plant, or land on which to construct an electric plant, or gains an interest in an electric plant or project under section 24A02 shall incur the debt in accordance with and to the extent permitted by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). Interest and principal paid on revenue bonds issued by a borough under this chapter shall be exempt from all State taxes of any kind or nature. (8) To mortgage a property acquired or owned under section 24A02 to secure the payment of its revenue bonds or other obligations issued to finance the acquisition, ownership or repair. (9) To sell, by ordinance, all or part of its electric works to a purchaser for the sale price agreed upon by the parties. After the sale, the price shall be deemed to be the purchaser's original cost less accrued depreciation of the plant at the date of purchase. (10) To purchase the electric works of any person, partnership or electric company organized under the laws of this Commonwealth that is furnishing electricity to the borough or the public within the borough. The borough and the person, partnership or a majority in value of the stockholders of a corporation may agree upon the purchase price, except that, upon failure of the parties to agree on the price, the borough may proceed according to 26 Pa.C.S. (relating to eminent domain). (b) Eminent domain.--In the erection and extension of an electric plant or project under this chapter and for all other purposes authorized by this part, a borough may enter upon, appropriate, injure or destroy private lands, property or material according to the proceedings set forth in 26 Pa.C.S. A borough shall not have the power of condemnation with regard to any property of a private or public retail electric supplier which geographically lies beyond the boundaries of the corporate limits of the borough. (June 5, 2020, P.L.211, No.28, eff. 60 days) 2020 Amendment. Act 28 amended subsec. (a)(1). Section 3(1) of Act 28 provided that the amendment of subsec. (a)(1) shall apply to gross receipts received after December 31, 2016. Section 3(2) of Act 28 provided that the amendment of subsec. (a)(1) shall apply to sales to or by a municipal power agency or any borough owned or operated utility established on or before the effective date of section 3.

8 Pa.C.S. § 24A04 Municipal power agencies.

(a) General rule.--Two or more boroughs may form a municipal power agency by the execution of an agency agreement authorized by an ordinance of the governing bodies of each borough. The agency agreement shall state: (1) The name of the agency, which shall include the words "municipal power agency." (2) The names of the boroughs which have approved the agency agreement and are initial members of the municipal power agency. (3) That the municipal power agency is created pursuant to the authority granted by this part. (4) The names and addresses of the persons initially appointed by the governing bodies to act as representatives to the municipal power agency from the member boroughs. (5) The limitations, if any, placed on the powers or terms of representatives appointed by the governing bodies of the member boroughs. (6) The names and addresses of the initial board of directors of the municipal power agency, if known by the time of filing, which shall be constituted by not less than five persons who are representatives of the member boroughs, selected by the vote of a majority of the representatives. (b) Certificate of incorporation.--The agency agreement under subsection (a) and a certified copy of the ordinance of the governing body of each borough shall be filed for record with the Secretary of the Commonwealth. If the agency agreement meets the requirements of this section, the Secretary of the Commonwealth shall record the agreement and issue and record a certificate of incorporation which shall be conclusive proof of substantial compliance with the requirements of this section. The certificate shall state the name of the municipal power agency and the fact and date of incorporation. Upon the issuance of the certificate of incorporation, the existence of the municipal power agency as a political instrumentality of the Commonwealth shall begin. (b.1) Open meetings.--Regular and special meetings of the representatives of member boroughs and the board of directors as provided in this section shall be subject to 65 Pa.C.S. Ch. 7 (relating to open meetings). (c) Bylaws.--The bylaws of the municipal power agency and any amendments shall be proposed by the board of directors and shall be adopted by a majority vote of the representatives of the member boroughs unless the agency agreement requires a greater vote at a meeting held after notice. Subject to the provisions of the agency agreement, the requirements of this part and the laws of this Commonwealth, the bylaws shall state: (1) The qualifications of member boroughs and limitations, if any, upon their number. (2) Conditions of membership, if any. (3) The manner and time of calling regular meetings of representatives of member boroughs. (4) The manner and conditions of termination of membership. (5) Other provisions for regulating the affairs of the municipal power agency as the representatives of the member boroughs shall determine to be necessary. (d) Registered office.--Every municipal power agency shall maintain an office in this Commonwealth to be known as its registered office. When a municipal power agency desires to change the location of its registered office, it shall file with the Secretary of the Commonwealth a certificate of change of location of registered office, stating the new location by address, including street and number, if any, and the effective date of change. When the certificate of change of location has been duly filed, the board of directors may make the change without any further action. (e) Directors.--The following apply: (1) Each of the directors shall hold office for the term for which the director has been selected and until a successor has been selected and has qualified. Directors shall discharge their duties in good faith and with that diligence and care which an ordinary prudent person in a like position would exercise under similar circumstances. (2) The agency agreement or the bylaws may prescribe the number, term of office, powers, authority and duties of directors, the time and place of their meetings and other regulations concerning directors in a manner consistent with law. (3) Except where the agency agreement or bylaws prescribe otherwise, the term of office of a director shall be for one year. (4) Except where the agency agreement or bylaws prescribe otherwise, a meeting of the board of directors may be held at any place within this Commonwealth designated by the board, after notice, and an act of the majority of the directors present at a meeting at which a quorum is present is the act of the board. (5) Except where the agency agreement or bylaws prescribe otherwise, any vacancy occurring on the board shall be filled by a person nominated by the remaining members of the board and elected by a majority of representatives of the member boroughs. (f) Officers.--Except where the agency agreement or bylaws prescribe otherwise, the board of directors shall appoint a president from its membership and a secretary, treasurer and any other officers or agents deemed necessary who may, but need not be, borough representatives or directors. An officer may be removed with or without cause by the board of directors. Officers of the municipal power agency shall have the authority and duties in the management of the business of the municipal power agency that the agency agreement or bylaws prescribe or, in the absence of the prescription, as the board of directors determines. (g) Representatives of member boroughs.--The following apply: (1) Except as otherwise provided in the agency agreement or the bylaws, the duly authorized representatives of each member borough shall act as and vote on behalf of that borough. (2) Except where the agency agreement or bylaws provide otherwise, representatives of the member boroughs shall hold at least one meeting each year for the election of directors and for the transaction of any other business. (3) Except where the agency agreement or bylaws prescribe otherwise, special meetings of the representatives may be called for any purpose upon written request to the president or secretary to call the meeting. The officer shall give notice of the meeting to be held between ten and 60 days after receipt of the request. (4) Unless the agency agreement or bylaws provide for a different percentage, a quorum for a meeting of the representatives of the member boroughs is a majority of the total members, and a quorum for meetings of the board of directors is a majority of the membership of the board. (h) Amendment of agency agreement.--The agency agreement may be amended as proposed at any meeting of the representatives of the members for which notice stating the purpose shall be given to each representative and, unless the agency agreement or bylaws require otherwise, shall become effective when ratified by ordinances of a majority of the governing bodies of the member boroughs. Each amendment and the ordinances approving it shall be filed for record with the Secretary of the Commonwealth. (i) Appropriations.--Each member borough shall have full power and authority, within budgetary limits applicable to it, to appropriate money for the payment of expenses of the formation of the municipal power agency and of its representative in exercising its functions as a member of the agency. (j) General powers.--A municipal power agency may own, construct, acquire by lease, purchase or otherwise gain an interest by itself or as co-owner or tenant in common and operate and manage or cause to be operated and managed an electric plant or project located within or without this Commonwealth jointly with any political subdivision, subdivision of the Federal Government, State government, political subdivision of another state, private corporation empowered to supply electricity, electric cooperative corporation formed under the former act of June 21, 1937 (P.L.1969, No.389), known as the Electric Cooperative Corporation Act, or electric cooperative corporation in another state. (k) Specific powers.--All powers of a municipal power agency shall be exercised by its board of directors, unless otherwise provided by the agency agreement or bylaws. A municipal power agency shall have the power to do and accomplish all actions reasonably necessary and incident to the ownership, construction, acquisition, administration, operation and management of an electric plant or project. Among the specific powers of a municipal power agency shall be the following: (1) To sue and be sued. (2) To enter into contracts. (3) To cooperate with private power companies, boroughs, electric cooperative corporations and other public or private electric power entities inside and outside of this Commonwealth in the development of electric power and energy. (4) To make the studies as may be necessary to determine the feasibility and cost of any additional sources and supplies of electric power and energy. (5) To contract for the purchase, sale, exchange, interchange, wheeling, pooling or transmission of electric power and energy or for the right to the capacity thereof, inside and outside of this Commonwealth, to and from any public or private power entities, private power companies, other boroughs and electric cooperative corporations. (6) To procure insurance against any losses in connection with its property, operations or assets in amounts and from insurers as the board of directors deems desirable. (7) To contract for and to accept any gifts, grants or loans of funds, property or financial or other aid in any form from the United States or any agency or instrumentality of the United States or from any other source. (8) To acquire, hold, use, operate and dispose of personal property. (9) To acquire, hold, use and dispose of its income, revenues, funds and money. (10) To acquire, own, use, lease, operate and dispose of real property and interests in real property and to make improvements to the real property. (11) To grant the use, by lease or otherwise, and to make charges for the use of any property or facility owned or controlled by it. (12) To procure from the United States or any agency or instrumentality of the United States, or from any state or agency or instrumentality of a state, any consents, authorizations or approvals which may be requisite to enable ownership, operation, construction or repair. (13) To borrow money and from time to time to issue revenue bonds and to enter into agreements with the purchasers of the revenue bonds. (14) To invest funds not required for immediate use, including, but not limited to, proceeds from the sale of revenue bonds. The power of a municipal power agency to invest shall be the same as that of a borough, as exercised by the council pursuant to sections 1005(6) (relating to powers of council) and 1316 (relating to investment of funds). (15) To mortgage any property acquired or owned to secure the payment of its revenue bonds or other obligations issued to finance the acquisition, ownership or repair. (l) Eminent domain.-- (1) Except as provided under paragraph (2), in the erection and extension of an electric plant or project and for all other purposes authorized by this part, a municipal power agency may enter upon, appropriate, injure or destroy private lands, property or material according to the proceedings set forth in 26 Pa.C.S. (relating to eminent domain). (2) A municipal power agency shall not have the power of condemnation with regard to any property of a private or public retail electric supplier which geographically lies beyond the boundaries of the corporate limits of its member boroughs. (m) Revenue bonds.--A municipal power agency which gains an interest in an electric plant or project may pay all or part of the cost from the revenues derived from the sale of revenue bonds issued in the manner provided by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). (n) Bylaws.--A municipal power agency may make and enforce bylaws or rules which it deems necessary or desirable. A municipal power agency may establish, fix, levy and collect or may authorize, by contract, franchise, lease or otherwise, the establishment, levying and collection of rents, rates and other charges for the services afforded by the municipal power agency, including connection for the services afforded by the municipal power agency, including connection charges or by or in connection with any project or properties which it may construct, erect, acquire, own, operate or control, or with respect to which it may have any interest or any right to capacity thereof, and for the sale of electric energy or of generation or transmission capacity or services as it may deem necessary, proper, desirable and reasonable. Rents, rates and other charges shall be at least sufficient to meet expenses thereof, including reasonable reserves, interest and principal payments. (o) State tax exemptions.--Interest and principal paid on revenue bonds issued by a municipal power agency shall be exempt from all State taxes of whatsoever kind or nature. Cross References. Section 24A04 is referred to in sections 1402, 24A01, 24A05 of this title.

8 Pa.C.S. § 24A05 Additional contracting authority.

(a) Additional contracting authority.--In addition to the authority provided under section 24A02 (relating to general powers), a borough that, on October 27, 2010, owned or operated electric generation or distribution facilities and a borough that is a member of a nonprofit membership corporation may contract with the nonprofit membership corporation for the following: (1) The development of electric power and associated energy, including the conduct of investigations or studies necessary to determine the feasibility and cost of additional sources and supplies of electric power and associated energy. (2) The purchase, sale, exchange, interchange, wheeling, pooling or transmission of electric power and associated energy or the right to the capacity from sources and projects in this Commonwealth or another state for a period not to exceed 50 years. (b) Contract requirements.--A contract under subsection (a)(2) shall include the purpose of the contract, the duration of the contract and available procedures to terminate the contract subsequent to the repayment of all indebtedness secured under the contract. (c) Minimum quantity of electric power and energy.--If a borough is a member of a nonprofit membership corporation, a contract under subsection (a)(2) may, if specifically set forth in the contract, obligate the borough to: (1) Take and pay for a minimum quantity of electric power and associated energy if the power and energy are available for delivery. (2) In connection with a project owned by the nonprofit membership corporation or in which the nonprofit membership corporation obtains an undivided ownership interest, take or pay for a minimum amount of electric power and energy. (3) Pay for electric power and energy only if utilized by the borough. (d) Applicability of minimum requirements.-- (1) The authority under subsection (c)(1) shall apply whether or not the borough accepts delivery of the power and energy. (2) The authority under subsection (c)(2) shall apply notwithstanding the suspension, interruption, interference or reduction or curtailment of the output of the project or the electric power and energy contracted for and whether or not: (i) the electric power and energy is available for delivery to the borough; or (ii) the borough accepts delivery of the electric power and energy. (e) Take-or-pay or take-and-pay arrangements.--No borough may be obligated under a take-or-pay or take-and-pay arrangement entered into with a nonprofit membership corporation in which the borough maintains membership unless that obligation is expressly authorized by an act of the council. (f) Restrictions.--A nonprofit membership corporation shall not: (1) Condition membership in the nonprofit membership corporation on the inclusion of any take-or-pay or take-and-pay obligations in a contract under subsection (a)(2). (2) Except as set forth in subsection (g), require take-or-pay or take-and-pay obligations in a contract with a borough unless the contract meets the criteria of subsection (c)(1) or (2). (g) Future contracts.--A borough that is a member of a nonprofit membership corporation may enter into future power supply contracts, contract renewals or contract extensions with the nonprofit membership corporation under subsection (c)(3): (1) with no take-or-pay or take-and-pay obligations as permitted by subsection (c)(1) and (2); and (2) without prejudice or discrimination as compared to any other borough which chooses to enter into contracts permitted by subsection (c)(1) and (2) with the nonprofit membership corporation. (h) Future power supply contract terms.--In order to carry out subsection (g), a nonprofit membership corporation which provides or offers electric power and associated energy to a member borough in this Commonwealth under subsection (a)(2) shall offer, to all of its member boroughs in this Commonwealth, future power supply contract terms, contract renewals or contract extensions under subsection (c)(3) on a comparable and nondiscriminatory basis and with similar terms and conditions to future power supply contract terms, contract renewals or contract extensions that would be appropriate under subsection (c)(3) which the nonprofit membership corporation contemporaneously offers to its members in other states. (i) Payments.--All obligations under a contract under subsection (a)(2) shall be paid from revenues derived from the operation of the borough's electric system, and payments shall be an operating expense of the borough's electric system. (j) Obligations of other entities.--If explicitly set forth in a contract under subsection (a)(2), a borough may agree to assume, prorate or otherwise become liable for the obligations of another borough of this Commonwealth or of a political subdivision of another state that is a member of the nonprofit membership corporation if the borough or other political subdivision defaults in the payment of its obligations for the purchase of the electric power and associated energy. The contract may include provisions to permit a borough to succeed to the rights and interests of the defaulting borough or political subdivision to purchase electric power and associated energy. A borough's liability for the obligations of a defaulting borough of this Commonwealth or a political subdivision of another state shall not exceed 25% of a borough's initial nominal entitlement to electric power and associated energy under the contract. (k) Pledge of borough property prohibited.--None of the obligations under the contract may constitute a legal or equitable pledge, charge, lien or encumbrance on any property of the borough or on any of its income, receipts or revenues, except revenues of its electric system. The full faith and credit and the taxing power of the borough shall not be pledged for the payment of an obligation under the contract. (l) Construction.--This section is intended to add to the powers and rights of a borough, and nothing in this section may be construed to limit either the general or specific powers or rights of a borough set forth in this title. (m) Definition.--As used in this section, the term "nonprofit membership corporation" means an entity the membership of which: (1) consists solely of Pennsylvania boroughs, such as a consortium, buying group or municipal power agency under section 24A04 (relating to municipal power agencies); or (2) consists of Pennsylvania boroughs and political subdivisions of another state or states.

8 Pa.C.S. § 2401 Power to supply water and make regulations.

(a) Supply of water.--Boroughs may supply water for the use of the public within the borough by constructing or purchasing and operating a water system, by entering into contract with persons or corporations authorized to supply water within the limits of the borough or partly by constructing or purchasing and operating a water system and partly by entering into a contract. (b) Regulations.--Council may make regulations for the protection of water pipes, reservoirs and other apparatus used in the supplying or storing of water, for the prevention of the waste of water supplied and for the drilling of water wells within the borough. (c) Rates.--Council shall fix the rates to be charged for the water furnished to individuals, partnerships, associations or corporations and shall provide for the collection of water rents from users of water supplied by the borough. The borough's provision of water to users outside the borough limits as to character of service, extensions and rates shall be subject to any applicable approval, regulation or control imposed by 66 Pa.C.S. Pt. I (relating to Public Utility Code). Cross References. Section 2401 is referred to in section 2402 of this title.

8 Pa.C.S. § 2402 Contracts not to abridge powers.

A borough's power to construct and operate a water system as provided in section 2401 (relating to power to supply water and make regulations) shall not be abridged by the borough entering into a contract with a person or corporation for the supply of water, but the power shall remain in force as though the contract had not been made.

8 Pa.C.S. § 2403 Issue of bonds where water system acquired.

Where the price and terms are agreed upon, a borough may become the owner of and operate any water system owned and operated by a corporation furnishing water within the acquiring borough and in nearby municipal corporations. The borough may pay for the water system from the revenues derived from general obligation bonds or utility bonds issued in the manner provided by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing).

8 Pa.C.S. § 2404 Refunding bonds.

(a) General rule.--If a borough acquires a water system subject to any existing lien or liens and, at the time of acquisition, issues utility bonds secured by the liens on the water system and which impose no municipal liability, when the utility bonds mature or at any time prior, the borough may issue and sell utility bonds for the purposes of refunding the outstanding bonds. The refunding bonds shall be issued as utility bonds pursuant to 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). The issued bonds shall not be deemed to be the creation of new obligations but shall be deemed a continuation of the bonds existing or created at the time of the original acquisition of the water system. (b) Time, interest rate and amount.--The bonds shall not be refunded for a longer period than 20 years, and the refunding lien bonds issued shall not bear interest at a rate exceeding 6%. The aggregate amount of the issued refunding lien bonds shall not exceed the amount of the bonds to be refunded. Any money placed in any fund by the borough or by any commission of the water system for the purpose of redeeming or paying the bonds at maturity shall be first applied to the payment of the principal of the bonds to be refunded, and the balance of the bonds only shall be refunded by the issue of new bonds.

8 Pa.C.S. § 2406 Contracts to supply water for municipal purposes.

Boroughs may receive bids from water companies and municipal authorities authorized to do business within the borough and from other municipalities operating a water system for the supply of water for fire protection and for other municipal purposes. The borough may contract for the supply of water with the water company.

8 Pa.C.S. § 2407 Power to supply water beyond limits of borough.

If a borough maintains a water system, it shall be lawful for the borough to supply water to persons and corporations outside the limits of the borough, but the supply of water shall be subject to any applicable approval or regulation imposed by 66 Pa.C.S. Pt. I (relating to Public Utility Code). The privilege shall not conflict with the corporate rights of any water company or the rights of any other municipality or municipal authority.

8 Pa.C.S. § 2408 Assessment for water mains.

Boroughs shall have power to assess the whole cost or any part of the cost of construction of new water mains built in connection with the establishment or extension of a municipally owned water supply system in accordance with Chapter 21A (relating to assessments and charges for public improvements), notwithstanding if the mains are located within or without the limits of the borough.

8 Pa.C.S. § 2409 Sale of water system.

(a) General rule.--By ordinance, a borough may sell all or part of its water system to a purchaser at an agreed-upon price, and, thereafter, for all purposes that price shall be deemed to be the purchaser's original cost less accrued depreciation of the plant at the date of purchase. No ordinance shall take effect until the expiration of ten days following its enactment, and, if, within that ten-day period, a protest signed by at least 10% of the registered electors of the borough is filed with the council, the sale shall be stayed pending a referendum on the ordinance. (b) Protest.--The following shall apply to a protest: (1) The borough secretary, within five days following the filing of the protest, shall certify to the county board of elections a copy of the ordinance and the fact of the protest, together with the number of signers of the protest, and the county board of elections shall direct a referendum to be held on the matter at a special election to be held at the time of the next general or municipal or primary election occurring not less than 60 days from the date of the certification by the borough secretary. (2) The referendum shall be conducted by the county board of elections in the manner provided by the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code, for the holding of special elections. The ballot used when voting upon the question shall contain a question stating the nature and purpose of the ordinance and provide that a "yes" vote shall be to sustain the ordinance and a "no" vote shall be to reject it. (3) If more electors vote to sustain the ordinance than to reject it, the ordinance shall take effect immediately. If more electors shall vote to reject the ordinance than to sustain it, the ordinance shall be null and void and shall not take effect.

8 Pa.C.S. § 2411 Appropriation of lands and waters.

A borough desiring to build a water system or to improve its water supply may appropriate springs, streams, rivers or creeks and lands, easements and rights-of-way, within or without its limits. If the appropriation is outside its limits, the appropriation shall be in compliance with 26 Pa.C.S. § 206 (relating to extraterritorial takings). For the purpose of conducting water obtained outside its limits, a borough may lay pipes under and over any lands, rivers, streams, bridges, highways and under railroads. No water appropriated under this section shall be used in a manner as to deprive the owner of the water of the free use and enjoyment of the water for domestic or farm purposes. The exercise of the powers in this section shall be subject to any required approvals or permits from the Department of Environmental Protection or other Federal or State entity. Cross References. Section 2411 is referred to in section 2412 of this title.

8 Pa.C.S. § 2412 Agreements as to damages.

Prior to any appropriation under section 2411 (relating to appropriation of lands and waters), the borough shall attempt to agree with the owner as to the damage done or likely to be done. If the parties cannot agree, the borough shall proceed pursuant to 26 Pa.C.S. (relating to eminent domain).

8 Pa.C.S. § 2421 Petition to court.

If a borough desires to own and operate a water system owned by any person, firm or corporation, the borough may present its petition to the court of common pleas of the county where the water system is located, setting forth that: (1) The borough desires to own the water system. (2) It will be necessary to issue bonds. (3) A value should be placed upon the water system, including all property, real and personal, used in connection with the water system.

8 Pa.C.S. § 2422 Appointment of appraisers.

(a) Valuation.--The court of common pleas shall appoint three civil engineers as appraisers to value and appraise: (1) The water system. (2) The property used in connection with the water system. (3) The contracts or agreements with municipalities. (b) Report.--The civil engineers shall file their report in the court within three months after their appointment unless the time is extended by the court.

8 Pa.C.S. § 2423 Powers of appraisers.

(a) Powers.--The appraisers shall have the following powers: (1) To access the books and records of the person, firm or corporation owning the water system to inform themselves as to the income and value of the water system. (2) To administer oaths and to take the testimony of witnesses. (b) Report.--The report of the appraisers shall be final unless the report is appealed.

8 Pa.C.S. § 2424 Appeal from appraisement.

(a) Filing of petition.--Within ten days after notice of the filing of any report in the court of common pleas, either party may appeal from the appraisement by filing a petition for a hearing before the court alleging an undervaluation or overvaluation of the property. (b) Hearing.--The court shall fix a time when the appeal may be heard, giving at least ten days' notice to the parties, and, upon hearing, the court of common pleas shall have power to affirm or modify the report as the court deems just and proper.

8 Pa.C.S. § 2425 Authority to purchase and consent to sell.

(a) Authority to purchase.--After the value is finally determined, the borough is authorized to buy the water system at the valuation fixed. (b) Consent to sell.--The person, firm or corporation owning the water system shall, within ten days after notice, file in the court of common pleas its consent to sell and convey its water system and property to the borough at the valuation fixed. In default of the filing of the consent, the person, firm or corporation shall cease to have any exclusive privilege of supplying the borough or the citizens of the borough with water, and the borough may install the water system as may be necessary for the accommodation of the public.

8 Pa.C.S. § 2426 Bond issue and limitations.

(a) Bond issue.--For the purpose of purchasing a water system, the borough may issue utility bonds in the manner provided by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). (b) Limitations.--The bonds shall not exceed in amount the value fixed by the appraisers or the court of common pleas. The proceeds of the sale of the bonds shall be used exclusively for the purpose of paying for the property acquired.

8 Pa.C.S. § 2431 Lease of water system.

The council of a borough may enter into a contract with any individual, partnership, association or corporation for the leasing of a water system of the individual, partnership, association or corporation.

8 Pa.C.S. § 2432 Term of lease and rental.

The lease term may be for a term of years and at a rental price as shall be agreed upon by the borough and the individual, copartnership, association or corporation.

8 Pa.C.S. § 2433 Operation of property.

A borough shall have the same powers in operating a leased water system as it would have in operating a purchased or condemned water system.

8 Pa.C.S. § 2436 Joint acquisition and construction.

A borough may join with one or more municipal corporations in the construction or acquisition and maintenance of a water system.

8 Pa.C.S. § 2437 Permits.

The construction of a water system shall be commenced only after plans for the water system have been filed with the Department of Environmental Protection and, if required by law, other Federal or State entities and permits issued in accordance with law.

8 Pa.C.S. § 2438 Joint commission.

(a) General rule.--The municipal corporations joining in the construction or acquisition and maintenance of a water system may, by ordinance, provide for the appointment of a joint commission of a water system in order to facilitate the construction, operation and maintenance of the water system and to secure preliminary surveys and estimates. (b) Function.--The joint commission shall act generally as the advisory and administrative agency in the construction of the improvement and its subsequent operation and maintenance. (c) Composition.--The joint commission shall be composed of one representative from each of the joining municipal corporations. (d) Term of members.--The members of the joint commission shall serve for terms of six years each from the dates of their respective appointments and until their successors are appointed. (e) Officers.--The joint commission shall organize by the election of a chair, secretary and treasurer. The secretary and treasurer may be the same person. (f) Ordinance provisions.--The municipal corporations may, in the ordinances creating the joint commission, authorize it to appoint an engineer, a solicitor and other assistants as are deemed necessary and agree to share the compensation for attending its meetings as shall be fixed in the budget prepared by the commission and submitted to and adopted by the joining municipal corporations. (g) Compensation limitation and expenses.--The budget item providing for the compensation to the members for attending meetings shall not exceed $500 per year, but members shall be entitled to actual expenses to be paid by the respective municipal corporations that the members represent. The fee for each attendance at meetings shall be stipulated, and no member shall be paid a fee for any meeting the member does not attend.

8 Pa.C.S. § 2441 Acquisition of land.

(a) Acquisition for construction of roads.--If a borough finds it necessary, when storing water for supply to the public, to occupy and overflow portions of any public road with water or if any public road leads into or crosses over any reservoir used for the storage of water, the borough shall, at its own expense, reconstruct or build a road in a favorable location, which shall be in the same or better condition as the original road. A borough is authorized to condemn land for these purposes if an agreement as to price cannot be reached with the landowner. (b) Land outside borough limits.--A condemnation of land outside the borough limits shall be in conformity with 26 Pa.C.S. § 206 (relating to extraterritorial takings). (c) Acquisition to prevent contamination.--A borough may acquire, by purchase or condemnation, land along and contiguous to streams of water or reservoirs from which water is taken for public use if necessary to preserve the water from contamination. Cross References. Section 2441 is referred to in section 2442 of this title.

8 Pa.C.S. § 2442 Filing maps and plans.

If a change is made under section 2441(a) (relating to acquisition of land), the borough shall file in the court of common pleas a map or plan showing the change of road, and, if the road is outside the limits of the borough, it shall furnish to the governing body of the municipal corporation a copy of the map.

8 Pa.C.S. § 2451 Commission.

(a) Establishment.--If a borough owns and maintains a water system, there may be established in the borough, by ordinance, a commission of the water system, which shall have the power of a nonprofit corporation, to be composed of either three or five citizens of the borough appointed by the council, who shall be known as commissioners of the water system. (b) Abolishment.--At any time after three years from the first appointment of the commissioners of the water system, the borough may abolish the commission by repealing the ordinance establishing the commission, which shall terminate the terms of the commissioners then in office.

8 Pa.C.S. § 2452 Terms of commissioners and compensation.

(a) General rule.--If a borough establishes a commission of the water system, it shall be the duty of the council to appoint the commissioners of the water system. (b) Commissions with three commissioners.--If there are three commissioners, one shall be appointed to serve for one year, one for two years and one for three years. Annually thereafter, the council shall appoint one commissioner of the water system to serve a term of three years. (c) Commissions with five commissioners.--If there are five commissioners, one shall be appointed to serve for one year, one for two years, one for three years, one for four years and one for five years. Annually thereafter, the council shall appoint one commissioner of the water system to serve a term of five years. (d) Vacancy.--In case of a vacancy, the council shall fill the vacancy for the unexpired term. (e) Salary and expenses.--The commissioners of the water system may receive a salary for their services and shall be reimbursed by the borough for all expenses necessarily incurred in the performance of their duties. (f) Salary limitations.--The salary of the commissioners shall not exceed the following: (1) In service areas with fewer than 5,000 metered accounts, a maximum of $1,875 per year or $156.25 per month. (2) In service areas with 5,000 but fewer than 10,000 metered accounts, a maximum of $2,500 per year or $208.33 per month. (3) In service areas with 10,000 but fewer than 15,000 metered accounts, a maximum of $3,250 per year or $270.83 per month. (4) In service areas with 15,000 but fewer than 25,000 metered accounts, a maximum of $4,125 per year or $343.75 per month. (5) In service areas with 25,000 but fewer than 35,000 metered accounts, a maximum of $4,375 per year or $364.58 per month. (6) In service areas with 35,000 or more metered accounts, a maximum of $5,000 per year or $416.67 per month.

8 Pa.C.S. § 2453 Organization of commissioners.

The commissioners of the water system shall meet within ten days after their first appointment and annually thereafter and organize by electing a president and secretary.

8 Pa.C.S. § 2454 Powers of commission.

After organization, the commissioners shall take charge and control of the water system of the borough. The commission shall have the following powers: (1) To appoint all necessary officers and agents and take from the officers and agents security for the faithful performance of their duties as the commission deems proper. (2) To fix the salaries and wages of the officers and agents. (3) To provide for the repair, extension, improvement and maintenance of the water system and the construction of a new water system. (4) To collect water rents. (5) To make and establish the rates and conditions upon which water will be furnished to applicants, subject to any applicable approval, regulation or control imposed by 66 Pa.C.S. Pt. I (relating to Public Utility Code). (6) To make bylaws and regulations for the economic and efficient management of the water system, which shall not be inconsistent with any of the laws of this Commonwealth or the rules and regulations of the Department of Environmental Protection. No bylaws or regulations shall become effective until they have been approved by the council and enacted as ordinances of the borough. Cross References. Section 2454 is referred to in section 2458 of this title.

8 Pa.C.S. § 2455 Issue of bonds.

The borough may, upon the request of the commissioners of the water system, issue general obligation or nondebt revenue bonds for the extension of the water system or the erection of a new water system. The bonds shall be designated "water system bonds" and shall be issued and sold in the manner provided by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing).

8 Pa.C.S. § 2456 Preparation of plans and specifications and contracts.

(a) Preparation of plans and specifications.--The commissioners shall prepare plans and specifications of all work to be performed and materials necessary for the repair, maintenance and extension of the water system or the construction of a new water system. (b) Contracts.--The commissioners shall, after plans and specifications for the extension or the construction of a water system have been submitted to and approved by the Department of Environmental Protection and a permit has been granted as may be required by law: (1) Invite proposals for the performing of the work and the furnishing of materials. (2) Advertise for bids as required by law. (3) Let contracts to the lowest qualified and responsible bidder. (4) Take adequate security for the performance of the contracts and for the payment of all labor and materials. Special Provisions in Appendix. See section 4(3)(xiv) of Act 37 of 2014 in the appendix to this title for special provisions relating to continuation of prior law.

8 Pa.C.S. § 2457 Reports by commission.

The commissioners shall make a monthly report to the council of the receipts and disbursements during the preceding month and annually make a detailed report of the condition of the water system. Both the monthly and annual reports shall be deemed to be public records.

8 Pa.C.S. § 2458 Care of funds.

(a) Collectors.--Collectors shall be appointed by the commissioners, in accordance with section 2454 (relating to powers of commission), who shall collect all money for water rents. (b) Deposits.--The money collected shall be deposited weekly with the borough treasurer who shall return a receipt to the commissioners. (c) Use.--All money collected shall be kept in a separate fund and shall be used for the purpose of repairing, maintaining and extending the water system and the construction of a new water system. All money remaining after the expenditures shall be used solely for the payment of any indebtedness on the water system and any indebtedness incurred by the borough for constructing, maintaining, improving, enlarging or extending the water system. (d) Withdrawals.--No money shall be drawn from the fund except upon order countersigned by the president and secretary of the commission.

8 Pa.C.S. § 2461 Ordinance.

(a) General rule.--Council may, by ordinance, require any owner of property to connect with and use a water system of the borough or municipal authority or a joint water board in either of the following cases: (1) Except as provided in subsection (b), if the property owner's principal building is located within 150 feet of a water system or any part or extension of the system. (2) If the property owner's principal building has no supply of water which is safe for human consumption. (b) Exception.--A property owner who after July 16, 2012, is subject to mandatory connection under subsection (a)(1) shall not be required to connect to the water system in accordance with subsection (a) if all of the following conditions exist: (1) The water system or part or extension of the system that is within 150 feet of the principal building was in existence on July 16, 2012. (2) The principal building has its own supply of water which is safe for human consumption. (3) Prior to July 16, 2012, the property owner was not required to connect to the existing system. (c) Backflow prevention.--A borough may require any owner of property to install and maintain a backflow prevention device based on the degree of potential hazard of the connected property in accordance with the Pennsylvania Construction Code and regulations promulgated under that act. (d) Penalties.--A borough may assess penalties for the violation of ordinances pertaining to water connections or backflow prevention devices.

8 Pa.C.S. § 2462 Notice and failure to make required connection.

An owner shall be given at least 45 days' notice of any ordinance requiring a water connection, and, upon failure of the owner to make the required connection, the borough may make the connection and collect the cost from the owner by a municipal claim or in an action of assumpsit. All connections required shall be uniform.

8 Pa.C.S. § 2463 Water main tapping fees.

(a) General rule.--A borough may, by ordinance, provide for charging a tapping fee calculated in accordance with 53 Pa.C.S. § 5607 (relating to purposes and powers) if the owner of any property connects the property with a water main constructed or acquired by the borough. The tapping fee shall be in addition to any charges assessed and collected against the property in the construction or acquisition of the water main by the borough. (b) Refund.--If a water main or part or extension owned by a borough has been constructed by the borough at the expense of a private person or corporation or has been constructed by a private person or corporation under the supervision of the borough at the expense of the private person or corporation, the borough shall have the right to charge a tapping fee calculated in accordance with 53 Pa.C.S. § 5607 and refund the tapping fee or any part of the tapping fee to the person or corporation who has paid for the construction of the water main or any part or extension. The total of the refunds shall never exceed the cost of the system or any part or extension to the person or corporation paying for the construction.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=08Fetched: 10/16/2026