§1201.2. Personal property.

(a) Sale.--Except as provided in subsection (b), no borough personal property may be disposed of, by sale or otherwise, except upon approval of council by resolution. In cases when council approves a sale of the property, council shall estimate the fair market value of the entire lot to be disposed of. If council estimates the fair market value to be $1,000 or more, the entire lot shall be advertised for sale once in at least one newspaper of general circulation not less than ten days prior to the date scheduled for the opening of bids or public auction. The date of opening of bids or public auction shall be announced in the advertisement, and sale of the property advertised shall be made to the best responsible bidder.

(a.1) Electronic auction sale.--A public auction of personal property may be conducted by means of an online or electronic auction sale. During an electronic auction sale, bids shall be accepted electronically at the time and in the manner designated in the advertisement. During the electronic auction, each bidder shall have the capability to view the bidder's bid rank or the high bid price. Bidders may increase their bid prices during the electronic auction. The record of the electronic auction shall be accessible for public inspection. The purchase price shall be paid by the highest bidder immediately or at a reasonable time after the conclusion of the electronic auction as determined by council. In the event that shipping costs are incurred, they shall be paid by the highest bidder. A borough that has complied with the advertising requirements of this section may provide additional public notice of the sale by bids or public auction in any manner deemed appropriate by council. The advertisement for electronic auction sales authorized in this paragraph shall include the Internet address or means of accessing the electronic auction and the date, time and duration of the electronic auction.

(a.2) Rejection of bids.--Council may reject any bids received if the bids are believed to be less than the fair market value of the property. If no bids are received after advertisement, the applicable procedures in the act of October 27, 1979 (P.L.241, No.78), entitled "An act authorizing political subdivisions, municipality authorities and transportation authorities to enter into contracts for the purchase of goods and the sale of real and personal property where no bids are received," shall be followed.

(b) Exception for small value sales.--Council shall, by resolution, adopt a procedure for the sale of surplus personal property, either individual items or lots of items, of an estimated fair market value of less than $1,000. The approval of council shall not be required for any individual sale that shall be made in conformity to the procedure.

(c) Exchange of personal property.--This section shall not be mandatory when borough personal property is to be traded in or exchanged for new or used personal property being acquired by the borough, except that the trade or exchange shall be by resolution.