Pennsylvania Act 1907-256 — MUNICIPALITIES AUTHORIZED TO ACQUIRE WATER PLANTS

Act text

MUNICIPALITIES AUTHORIZED TO ACQUIRE WATER PLANTS
                  Act of May 31, 1907, P.L. 355, No. 256              Cl. 11
                                  AN ACT

     Providing for the acquiring of water plants or systems by
        municipalities, from corporations, firms, or individuals, and
        the manner of ascertaining and arriving at the value of the
        same; and to authorize municipalities of this Commonwealth to
        issue bonds, secured by such water plants or systems, for the
        payment thereof; and to provide a sinking-fund therefor, out
        of the revenues of said plants.

        Compiler's Note:  Section 4701 of Act 317 of 1931 provided
            that Act 256 is repealed insofar as it relates to third
            class cities.
        Compiler's Note:  Section 1301(c) of Act 192 of 1915 provided
            that Act 256 is repealed insofar as it relates to
            boroughs.
        Section 1.  Be it enacted, &c., That the several cities and
     boroughs of this Commonwealth, desirous of owning and operating
     the waterworks, plants, or system for the supplying of water to
     any such municipality and the inhabitants thereof, which
     waterworks, plants, or system is now, or may hereafter be, owned
     by a private corporation, firm, or individual, may petition the
     court of common pleas of the proper county, setting forth that
     the said municipality is desirous of owning said water plant or
     system, owned by such corporation, firm, or individual, and that
     it will be necessary, in order to make payments therefor, to
     issue bonds, secured by such plant or system of waterworks, and
     that therefore a value should be placed upon such waterworks,
     plant, or system, including all property, real or personal, used
     in connection therewith and reasonably necessary for its
     purposes.
        Section 2.  That the said court shall thereupon appoint three
     disinterested civil engineers as appraisers, to value and
     appraise such plant or system and the property used in
     connection therewith and reasonably necessary for its purposes,
     who shall file their report in the office of the prothonotary of
     the proper court within three months after their appointment,
     unless such time be extended by the court.
        Section 3.  The appraisers so appointed shall have full
     access to the books and records of the private corporation,
     firm, or individual owning said waterworks or system, to inform
     themselves as to the income and value thereof. They shall have
     power to administer oaths, and are hereby authorized to hear and
     consider the testimony of witnesses and other legal proofs.
     Their report shall be final, if not appealed from within ten
     days after notice of the filing thereof shall have been served
     on the mayor or burgess of the city or borough, and upon the
     corporation, firm, or individual owning the waterworks. Within
     said ten days either party may appeal from such appraisement,
     alleging an under or over valuation of the property thereby, and
     praying for a hearing before the court; and the said court shall
     thereupon, upon application of either party, fix a time when
     said appeal may be heard, of which time at least ten days'
     notice shall be given to the parties; and upon such hearing the
     court shall have power, after hearing legal proofs and
     arguments, to increase or lower such appraisement, or otherwise,
     and modify the same as the facts may warrant, subject, however,
     to the right of appeal by either party to the proper appellate
     court, as in other cases in equity.
        Section 4.  After such value is finally determined, the
     municipality is authorized to buy said water plant at the
     valuation so fixed and determined; and the said corporation,
     firm, or individual, owning same, shall, within ten days' notice
     of such determination, and a request by the municipality so to
     do, file in said court a paper indicating its consent and
     election to sell and convey its plant, system, and property, so
     appraised, to the municipality, at the valuation fixed as
     aforesaid; and, in default whereof, such corporation, firm, or
     individual shall cease to have any exclusive privilege of
     supplying said municipality, or the citizens thereof, with
     water, and said municipality may install or cause to be
     installed such plant or system as the authorities may deem
     necessary and expedient for the accommodation of the public.
        Section 5.  For the purpose of said purchase the municipality
     may issue bonds, which shall be secured solely by such
     waterworks, systems, and property, and the revenues thereof, and
     without other liability whatever of said municipality thereon,
     to an amount not exceeding the appraisement of the value fixed
     by said appraisers or the court. The proceeds of the sale of
     such bonds shall be used exclusively for the purpose of making
     payment for the property so acquired.
        (5 amended Apr. 22, 1909, P.L.135, No.83)
        Section 6.  The municipality shall provide an adequate
     sinking-fund for the receipts and revenues derived from said
     waterworks or systems, for the payment of the interest on such
     bonds and for their redemption. The bonds shall be payable
     within thirty years from the date of their issue, and shall be
     redeemable at such earlier period as the municipality may by
     ordinance provide, and shall bear interest at a rate to be fixed
     by the municipality, not exceeding six per centum per annum. The
     bonds shall be exempt from taxation for any purpose.
        (6 amended Apr. 22, 1909, P.L.135, No.83)
        Section 7.  Should there be, at the time of the passage of
     this act, a contract or agreement, in writing, existing between
     any corporation, firm, or individual owning the water plant or
     system, and a municipality then being supplied with water by
     such corporation, firm, or individual, establishing or adjusting
     or fixing the manner in which such water plant or system may be
     appraised, purchased, or acquired, then, and in that case,
     appraisers shall be selected, and the appraisement made in
     accordance with the terms of such contract, and to the
     respective parties to such contract shall, in lieu of the
     preceding provisions of this act, carry out the terms of said
     contract in arriving at the value of said water plant or system.