act-1972-0-298•Pennsylvania Act 1972-298 — THIRD CLASS CITY PORT AUTHORITY ACT
Pennsylvania Act 1972-298 — THIRD CLASS CITY PORT AUTHORITY ACT
act-1972-0-2981972 Pa. Act 298Law
Act text
THIRD CLASS CITY PORT AUTHORITY ACT
Act of Dec. 6, 1972, P.L. 1392, No. 298 Cl. 64
AN ACT
Authorizing the creation of port authorities in cities of the
third class as bodies corporate and politic, with power to
plan, acquire, construct, maintain and operate facilities and
projects for the improvement, development and operation of
the port.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. This act shall be known and may be cited as the
"Third Class City Port Authority Act."
Section 2. As used in this act:
"Authority" means any body, politic and corporate, created by
this act.
"Board" means the governing body of an authority.
"Bond" means and includes the notes, bonds, refunding bonds,
and other evidences of indebtedness or obligations which the
authority is authorized to issue.
"Construction" means and includes acquisition and
construction.
"Federal agency" means and includes the United States of
America, the President of the United States and any department
or corporation, agency or instrumentality, heretofore or
hereafter created, designated or established by the United
States of America.
"Improvement" means and includes extension, enlargement and
improvement.
"Member" means a member of the governing body of an
authority.
"Municipality" means any county, city, incorporated town,
borough or township of the Commonwealth of Pennsylvania, or any
authority organized under any law of the Commonwealth of
Pennsylvania.
"Port facility" includes all real and personal property used
in the operation of a port terminal, including, but without
being limited to, wharves, piers, slips, ferries, docks, graving
docks, drydocks, ship building and/or repair yards, bulkheads,
dock walls, basins, carfloats, float-bridges, dredging
equipment, radio receiving and sending stations, grain or other
storage elevators, warehouses, cold storage, tracks, yards,
sheds, switches, connections, overhead appliances, bunker coal,
oil and fresh water stations, railroads, motor trucks, floating
elevators, airports, barges, scows or harbor craft of any kind,
markets and every kind of terminal storage or supply depot, now
in use or hereafter designed for use, to facilitate
transportation and for the handling, storage, loading or
unloading of freight at terminals, and equipment, materials and
supplies therefor.
"Port terminal" includes any marine, motor truck, railroad
and air terminal, any coal, grain, bulk liquids and lumber
terminal and any union, freight and other terminals, used or to
be used, in connection with the transportation or transfer of
freight, personnel and equipment.
Section 3. (a) There are hereby authorized to be created
bodies corporate and politic in cities of the third class, to be
known as The Port Authority of (insert name of city), or other
name as the authority shall adopt in accordance with the act of
May 24, 1945 (P.L.967), relating to fictitious names. The
authority shall exercise the public powers of the Commonwealth
as an agency thereof. Each authority shall be for the purpose of
planning, acquiring, holding, constructing, improving,
maintaining and operating, owning, leasing, either as lessor or
lessee, port facilities and equipment.
(b) Each authority is hereby granted and shall have and may
exercise all powers necessary or convenient for the carrying out
of the aforesaid purposes, including but without limiting the
generality of the foregoing, the following rights or powers:
(1) To have perpetual existence.
(2) To sue and be sued, implead and be impleaded, complain
and defend in all courts, to petition the Interstate Commerce
Commission (or like body) or join in any proceeding before any
such bodies or courts in any matter affecting the operation of
any project of the authority.
(3) To adopt and use and alter at will a corporate seal.
(4) To establish a principal office and such other office or
offices as may be necessary for the carrying on of its duties.
(5) To acquire, purchase, hold, lease, as lessee and use any
franchise, property, real, personal or mixed, tangible or
intangible, or any interest therein, necessary or desirable for
carrying out the purposes of the authority, and to sell, lease
as lessor, transfer and dispose of any property, or interest
therein, at any time, required by it.
(6) To acquire by purchase, lease, or otherwise, and to
construct, improve, maintain, repair and operate facilities.
(7) To make bylaws for the management and regulation of its
affairs.
(8) To appoint officers, agents, employes and servants, to
serve at the pleasure of the board (except as may otherwise be
provided in collective bargaining agreements) and to prescribe
their duties and fix their compensation. The authority may bind
itself by contract to employ an executive director, a general
manager or a combined executive director and general manager and
not more than five other senior executive personnel but no such
contract shall be for a period of more than five years.
(9) To fix, alter, charge and collect fares, rates, rentals
and other charges for its facilities by zones or otherwise at
reasonable rates to be determined exclusively by it, subject to
appeal, as hereinafter provided, for the purpose of providing
for the payment of the expenses of the authority, the
acquisition, construction, improvement, repair, maintenance and
operation of its facilities and properties, the payment of the
principal and interest on its obligations, and to comply fully
with the terms and provisions of any agreements made with the
purchasers or holders of any such obligations. The authority
shall determine by itself exclusively, the facilities to be
operated by it and the services to be available to the public.
Any person questioning the reasonableness of any rate or
services fixed by an authority may bring suit against the
authority in the court of common pleas of the county wherein the
authority is incorporated. The court shall have exclusive
jurisdiction to determine the reasonableness of fares, rates and
other charges or services fixed, altered, charged or collected
by an authority. The court shall make such order as to fares,
rates and other charges or services as to it shall be just and
proper. No suit or appeal shall act as a supersedeas. The court
shall give priority to all such suits or appeals and no bond
shall be required of any party instituting such action or
appeal.
(10) To borrow money, make and issue negotiable notes,
bonds, refunding bonds and other evidences of indebtedness or
obligations of the authority, and to secure the payment of such
bonds, or any part thereof, by pledge or deed of trust of all or
any of its revenues, rentals and receipts, and to make such
agreements with the purchasers or holders of such bonds or with
others in connection with any such bonds, whether issued or to
be issued as the authority shall deem advisable and in general,
to provide for the security for said bonds and the rights of the
holders thereof.
(11) To make contracts of every name and nature, and to
execute all instruments necessary or convenient for the carrying
on of its business. Without limiting the generality of the
foregoing, the authority is authorized to enter into contracts
for the purchase, lease, operation or management of facilities
subject to the jurisdiction of the Interstate Commerce
Commission.
(12) Without limitation of the foregoing, to borrow money
and accept grants from and to enter into contracts, leases or
other transactions with any Federal agency, Commonwealth of
Pennsylvania, municipality or corporation.
(13) To have the power of eminent domain including the
taking of property of a utility not necessary or useful to the
primary function of the utility.
(14) To pledge, hypothecate, or otherwise encumber, all or
any of the revenues or receipts of the authority as security for
all or any of the obligations of the authority.
(15) To do all acts and things necessary for the promotion
of its business, and the general welfare of the authority to
carry out the powers granted to it by this act or any other
acts.
(16) To enter into contracts with the Commonwealth of
Pennsylvania, municipalities or corporations, on such terms as
the authority shall deem proper for the use of any facility of
the authority, and fixing the amount to be paid therefor.
(17) To enter into contracts of group insurance for the
benefit of its employes, or to continue in existence any
existing insurance or pension or retirement system or any other
employe benefit arrangement covering employes of an acquired
existing transportation system, or to set up a retirement or
pension fund or any other employe benefit arrangement for such
employes.
(18) An authority shall have no power, at any time or in any
manner, to pledge the credit or taxing power of the Commonwealth
of Pennsylvania or any political subdivision, nor shall any of
its obligations be deemed to be obligations of the Commonwealth
of Pennsylvania or of any of its political subdivisions, nor
shall the Commonwealth of Pennsylvania or any political
subdivision thereof be liable for the payment of principal or
interest on such obligations.
(19) Private rights and property in the beds of existing
public highways vacated in order to facilitate the purposes of
the authority shall not be deemed destroyed or ousted by reason
of such vacation, but shall be acquired or relocated by the
authority in the same manner as other property.
(20) To establish carrier routes and services, including
water routes and water services as it deems necessary for the
efficient operation of the port; provided, that the authority
shall not engage in the transportation of property by motor
vehicle outside the port terminal without the approval of, and
subject to regulation by, Pennsylvania Public Utility
Commission.
(21) To self insure or otherwise provide for the insurance
of any property or operations of the authority against any risks
or hazards.
(22) To lease property or contract for service, including
managerial and operating service.
(23) To enter into agreements with any public utility
operating a railroad or any other transportation facility wholly
or partially within the port area for the joint or exclusive use
of any property of the authority or the public utility or the
establishment of routes over the rights of way of the public
utility or the authority or the establishment of joint rates.
(24) To develop programs designed solely to advertise,
promote and stimulate the development and use of its port and to
join and to authorize its agents, employes and servants to join
national and local trade and professional organizations
organized for the purpose of promoting the betterment of port
facilities and the improvement of the efficiency of persons
connected with or employed by the port.
Compiler's Note: Section 2 of Act 53 of 1978 provided that
the last two sentences of section 3(9) are repealed
insofar as such sentences relate to practice or procedure
in the Supreme Court, Superior Court or Commonwealth
Court, or to practice or procedure in the court of common
pleas or before the authority when an appeal has been or
is being taken to, or review has been or is being sought
in, one of such appellate courts.
Section 4. The bonds of the authority, hereinabove referred
to and authorized to be issued, shall be authorized by
resolution of the board and shall be of such series, bear such
date or dates, mature at such time or times, bear interest at
such rate or rates, be in such denominations, be in such form,
either coupon or fully registered without coupons, carry such
registration, exchangeability and interchangeable privileges, be
payable in such medium of payment and at such place or places,
be subject to such terms of redemption, at such prices not
exceeding one hundred five per cent of the principal amount
thereof, and be entitled to such priorities in the revenues,
rentals or receipts of the authority as such resolution or
resolutions may provide. The bonds shall be signed by such
officers as the authority shall determine, and coupon bonds
shall have attached thereto interest coupons bearing the
facsimile signature of the treasurer of the authority, all as
may be prescribed in such resolution or resolutions. The bonds
may be issued and delivered, notwithstanding that one or more of
the officers signing the bonds or the treasurer, whose facsimile
signature shall be upon the coupon, or any officer thereof,
shall have ceased to be such officer at the time when the bonds
shall actually be delivered.
The bonds may be sold at public or private sale, for such
price or prices as the authority shall determine. Pending the
preparation of the definitive bonds, interim receipts or
temporary bonds may be issued to the purchaser or purchasers of
the bonds and may contain such terms and conditions as the
authority may determine.
Any resolution or resolutions, authorizing any bonds may
contain provisions which shall be part of the contract with the
holders thereof as to (i) pledging the full faith and credit of
the authority for such obligations, or restricting the same to
all or any of the revenues, rentals or receipts of the authority
from all or any facilities, (ii) the construction, improvement,
operation, extension, enlargement, maintenance and repair of the
facilities and the duties of the authority with reference
thereto, (iii) the terms and provisions of the bonds, (iv)
limitations on the purposes to which the proceeds of the bonds,
then or thereafter to be issued, or of any loan or grant of the
United States may be applied, (v) the rate of tolls, rentals and
other charges for use of the facilities of or for the services
rendered by the authority, including limitations upon the power
of the authority to modify any lease or other agreement,
pursuant to which tolls, rentals or other charges are payable,
(vi) the setting aside of reserves or sinking funds and the
regulations and disposition thereof, (vii) limitations on the
issuance of additional bonds, (viii) the terms and provisions of
any deed of trust or indenture securing the bonds or under which
the same may be issued, and (ix) any other or additional
agreements with holders of the bonds.
The authority may enter into any deeds of trust indentures or
other agreements with any bank or trust company or any person in
the United States having power to enter into the same, including
any Federal agency as security for such bonds, and may assign
and pledge any or all of the revenues, rentals or receipts of
the authority thereunder. The deed of trust indenture or other
agreement may contain such provisions as may be customary in
such instruments or as the authority may authorize, including,
but without limitation, provision as to (i) the construction,
improvement, operation, maintenance and repair of facilities and
the duties of the authority with reference thereto, (ii) the
application of funds and the safeguarding of funds on hand or on
deposit, (iii) the rights and remedies of said trustees and the
holders of the bonds (which may include restrictions upon the
individual right of action upon such bondholders), and (iv) the
terms and provisions of the bonds or the resolutions authorizing
the issuance of the same.
The bonds shall have all the qualities of negotiable
instruments under the Uniform Commercial Code of the
Commonwealth of Pennsylvania.
Section 5. The rights and remedies, hereinafter conferred
upon or granted to the bondholders, shall be in addition to, and
not in limitation of, any rights and remedies lawfully granted
to such bondholders by the resolution or resolutions providing
for the issuance of bonds or by any deed of trust indenture or
other agreement under which the same may be issued. In the event
that the authority shall default in the payment of principal or
interest on any of the bonds after such principal or interest
shall become due, whether at maturity or upon call for
redemption, and such default shall continue for a period of
thirty days, or in event the authority shall fail or refuse to
comply with the provisions of this act or shall default in any
agreement made with the holders of the bonds, the holders of
twenty-five per cent in the aggregate of the principal amount of
the bonds then outstanding by instrument or instruments filed in
the office of the recorder of deeds of the county wherein the
authority is located and proved or acknowledged in the same
manner as a deed to be recorded, may (except as such right may
be limited under the provisions of any deed of trust indenture
or other agreement as aforesaid) appoint a trustee to represent
the bondholders for the purposes herein provided.
The trustee and any trustee under any deed of trust indenture
or other agreement may and, upon written request of the holders
of twenty-five per cent (or such other percentages as may be
specified in any deed of trust indenture or other agreement
aforesaid) in principal amount of the bonds then outstanding,
shall in his or its own name, (i) by mandamus or other suit,
action or proceeding, at law or in equity, enforce all rights of
the bondholders, including the right to require the authority to
collect rates, rentals or other charges, adequate to carry out
any agreement as to, or pledge of, the revenues or receipts of
the authority, and to require the authority to carry out any
other agreements with or for the benefits of the bondholders and
to perform its and their duties under this act, (ii) bring suit
upon the bonds, (iii) by action or suit in equity require the
authority to account as if it were the trustee of an express
trust for the bondholders, (iv) by action or suit in equity
enjoin any acts or things which may be unlawful or in violation
of the rights of the bondholders, and (v) by notice in writing
to the authority declare all bonds due and payable and if all
defaults shall be made good, then with the consent of the
holders of twenty-five per cent (or such other percentage as may
be specified in any deed of trust indenture or other agreement
aforesaid) of the principal amount of the bonds then outstanding
to annul such declaration and its consequences.
Any trustee, when appointed as aforesaid or acting under a
deed of trust indenture or other agreement and whether or not
all bonds have been declared due and payable, shall be entitled
as of right to the appointment of a receiver, who may (to the
same extent that the authority itself could so do) enter and
take possession of the facilities of the authority or any part
or parts thereof, the revenues, rentals or receipts from which
are or may be applicable to the payment of the bonds so in
default and operate and maintain the same and collect and
receive all rentals and other revenues thereafter arising
therefrom in the same manner as the authority or board might do,
and shall deposit all such moneys in a separate account and
apply the same in such manner as the court shall direct. In any
suit, action or proceeding by the trustee, the fees, counsel
fees and expenses of the trustee and of the receiver, if any,
and all costs and disbursements allowed by the court shall be a
first charge on any revenues, rentals and receipts derived from
the facilities of the authority, the revenues or receipts from
which are or may be applicable to the payment of the bonds so in
default. Said trustee shall, in addition to the foregoing, have
and possess all of the powers necessary or appropriate for the
exercise of any functions specifically set forth herein or
incident to the general representation of the bondholders in the
enforcement and protection of their rights.
Nothing in this act shall authorize any receiver appointed
pursuant to this act for the purpose of operating and
maintaining any facilities of the authority, to sell, assign,
mortgage or otherwise dispose of any of the assets of whatsoever
kind and character, belonging to the authority. It is the
intention of this act to limit the powers of such receiver to
the operation and maintenance of the facilities of the
authority, as the court may direct, and no holder of the bonds
of the authority nor any trustee shall ever have the right in
any suit, action or proceedings, in law or in equity, to compel
a receiver, nor shall any receiver ever be authorized or any
court be empowered to direct a receiver to sell, assign,
mortgage or otherwise dispose of any assets of whatever kind or
character belonging to the authority.
Compiler's Note: Section 2 of Act 53 of 1978 provided that
the first sentence of the third paragraph of section 5 is
repealed.
Section 6. (a) The powers of the authority shall be
exercised by a board composed of eleven members. The Governor
and the Secretary of the Department of Transportation shall be
ex officio members of the authority. The mayor shall appoint
nine members of the board for three year terms, all of whom
shall be residents of the county and citizens of the United
States, and the Governor and the Secretary of Transportation
shall each appoint a member to serve at their pleasure. Three
members shall serve for one year, three for two years, and three
for three years, from January 1 next succeeding the date of
approval of this act. Their terms shall be staggered in a
similar manner. Whenever a vacancy occurs, the appointing
authority shall appoint a member for a term of three years to
succeed the member whose term has expired, or for their
pleasure, or for the unexpired term, as the case may be. Members
shall hold office until their successors have been appointed and
may succeed themselves. A member shall receive no compensation
for his services but shall be entitled to the necessary
expenses, including traveling expenses incurred in the
performance of his duties.
(b) Within ninety days after the creation of the authority,
the board shall meet and organize by electing from their number
a chairman, a vice chairman and such other officers as the board
may determine. Six members of the board shall constitute a
quorum for its meetings. Members of the board shall not be
liable personally on the bonds or other obligations of the
authority, and the rights of creditors shall be solely against
such authority. The board may delegate to one or more of its
agents or employes such of its powers as it shall deem necessary
to carry out the purposes of this act, subject always to the
supervision and control of the board. The board shall have full
authority to manage and operate the business of the authority
and to prescribe, amend and repeal bylaws, rules and regulations
governing the manner in which the business of the authority may
be conducted and the powers granted to it may be exercised and
embodied. Copies of such bylaws, rules and regulations shall be
filed with the secretary of the authority.
Section 7. The authority shall exercise its power of eminent
domain in the manner prescribed by the act of June 22, 1964
(P.L.84), known as the "Eminent Domain Code,": Provided, That no
property owned or used by the United States, the Commonwealth of
Pennsylvania, any political subdivision thereof, or any body
politic and corporate organized as an "authority" under any law
of the Commonwealth, shall be taken under the right of eminent
domain.
Section 8. All moneys of the authority, from whatever source
derived, shall be paid to the treasurer of the authority. The
moneys shall be deposited in the first instance by the treasurer
in one or more banks or trust companies, in one or more special
accounts, and each of such special accounts to the extent the
same is not insured shall be continuously secured by a pledge of
direct obligations of the United States of America or the
Commonwealth of Pennsylvania, having an aggregate market value
exclusive of accrued interest, at all times, at least equal to
the balance on deposit in such account. The securities shall
either be deposited with the treasurer or held by a trustee or
agent satisfactory to the authority. All banks and trust
companies are authorized to give such security for such
deposits. The moneys in said accounts shall be paid out on the
warrant or other order of the chairman of the authority or of
such other person or persons as the authority may authorize to
execute such warrants or orders. As soon after the end of each
fiscal year as may be expedient the board shall cause to be
prepared and printed a report and financial statement certified
to by an independent certified public accountant of its
operations and of its assets and liabilities. A condensed annual
financial report of the authority shall be published each year,
once a week for two consecutive weeks, in at least two
newspapers of general circulation in the county creating the
authority. A copy of the annual report shall be filed with the
mayor of the city creating the authority and with the governing
body of each municipality in which the authority operates.
Section 9. All contracts and purchases shall be made in
accordance with the act of June 23, 1931 (P.L.932), known as
"The Third Class City Code."
Section 10. The use of the facilities of the authority and
the operation of its business shall be subject to the rules and
regulations adopted from time to time by the authority, but the
authority shall not be authorized to do anything which will
impair the security of the holders of the obligations of the
authority or violate any agreements with them or for their
benefit.
Section 11. The Commonwealth does hereby pledge to, and
agree with any person or Federal agency subscribing to or
acquiring the bonds to be issued by the authority for the
construction, extension, improvement or enlargement of any
facility, or part thereof, that the Commonwealth will not limit
or alter the rights hereby vested in the authority, until all
bonds, at any time issued, together with the interest thereon,
are fully met and discharged. The Commonwealth of Pennsylvania
does further pledge to, and agree with the United States and any
other Federal agency, that in the event any Federal agency shall
construct or contribute any funds for the construction,
extension, improvement or enlargement of any facility, or
portion thereof, the Commonwealth will not alter or limit the
rights and powers of the authority in any manner which would be
inconsistent with the continued maintenance and operation of the
facility, or the improvement thereof, or which would be
inconsistent with the due performance of any agreements between
the authority and any such Federal agency, and the authority
shall continue to have and may exercise all powers herein
granted, so long as the same may be necessary or desirable for
the carrying out of the purposes of this act and the purposes of
the United States in the construction or improvement or
enlargement of the facility or such portion thereof.
Section 12. The effectuation of the authorized purposes of
any authority created under this act, shall and will be in all
respects for the benefit of the people of the Commonwealth, for
the increase of their commerce and prosperity, and for the
improvement of their health and living conditions; and since the
authority will be performing essential government functions in
effectuating such purposes, the authority shall not be required
to pay any taxes or assessments upon any property acquired or
used by it for such purposes, or fee, bridge tolls or other
charge imposed or authorized to be imposed by virtue of any law
of the Commonwealth of Pennsylvania, except vehicle registration
fees, liquid fuels taxes, fuel use taxes, gross receipts taxes
imposed as an excise on the use of public highways, and tolls
imposed by the Pennsylvania Turnpike Commission. In lieu of
taxes or special assessments, the authority may agree to make
payments to any municipality. The bonds issued by the authority,
their transfer and the income therefrom, including any profits
made on the sale therefrom, shall at all times be free from
taxation, other than inheritance and estate taxation, within the
Commonwealth of Pennsylvania.
Section 13. Any municipality or owner is hereby authorized
to sell, lease, lend, grant, transfer or convey to the
authority, with or without consideration, any facility or any
part or parts thereof, or any interest in real or personal
property which may be used by the authority in the construction,
improvement, maintenance or operation of any facility. Any
municipality is also authorized to transfer, sell, assign and
set over to the authority any contracts which may have been
awarded by such municipality for the construction of facilities
not begun, or if begun, not completed.
Section 14. The authority shall deal with and enter into
labor contracts with the employes of the authority in accordance
with the act of July 23, 1970 (P.L.563), known as the "Public
Employe Relations Act."
Section 15. Employes who have left the employ of the
authority to enter the military service of the United States
shall have such reemployment rights with the authority as may be
granted under any law of the United States or the Commonwealth
of Pennsylvania.
Section 16. (16 repealed Apr. 28, 1978, P.L.202, No.53)
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