Bill Text: PA HB1014 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for regulation of contracts, for evasion of advertising requirements and for certain purchase contracts.

Spectrum: Moderate Partisan Bill (Republican 38-5)

Status: (Introduced - Dead) 2009-03-19 - Referred to LOCAL GOVERNMENT [HB1014 Detail]

Download: Pennsylvania-2009-HB1014-Introduced.html

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PRINTER'S NO. 1175
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1014 Session of2009
INTRODUCED BY GINGRICH, M. KELLER, BAKER, BOBACK, BOYD, BOYLE, BRENNAN, CAUSER, CUTLER, FAIRCHILD, FLECK, GEIST, GRELL, HALUSKA, HARHART, HARPER, HARRIS, HESS, HICKERNELL, KAUFFMAN, KORTZ, KOTIK, KULA, MARSICO, MENSCH, MILLARD, MILLER, MOUL, O'NEILL, PAYNE, PEIFER, PETRI, PHILLIPS, PICKETT, PYLE, REICHLEY, ROAE, ROCK, STERN, STEVENSON, SWANGER AND WATSON, MARCH 19, 2009
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 19, 2009
AN ACT
Amending the act of February 1, 1966 (1965 P.L.1656, No.581),
entitled "An act concerning boroughs, and revising, amending
and consolidating the law relating to boroughs," further
providing for regulation of contracts, for evasion of
advertising requirements and for certain purchase contracts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1402(a), (a.1) and (d) of the act of
February 1, 1966 (1965 P.L.1656, No.581), known as The Borough
Code, amended or added July 10, 1990 (P.L.383, No.90), December
18, 1996 (P.L.1141, No.171), December 18, 1996 (P.L.1156,
No.176) and December 20, 1996 (P.L.1497, No.193), are amended
and the section is amended by adding a subsection to read:
Section 1402. Regulation of Contracts.--(a) All contracts
or purchases in excess of [ten thousand dollars ($10,000)]
twenty-five thousand dollars ($25,000) subject to annual
adjustment under subsection (a.2), except those hereinafter
mentioned, shall not be made except with and from the lowest
responsible bidder after due notice in one newspaper of general
circulation in the borough, at least two times at intervals of
not less than three days where daily newspapers of general
circulation are available for such publication, in case of
weekly newspapers, such notice once a week for two successive
weeks. The first advertisement shall be published not more than
forty-five days and the second advertisement not less than ten
days prior to the date fixed for the opening of bids.
Advertisements for contracts or purchases shall also be posted
in a conspicuous place within the borough. Advertisements for
contracts and purchases shall contain the date, time and
location for opening of bids and shall state the amount of the
performance bond determined under subsection (c). The amount of
the contract shall in all cases, whether of straight sale price,
conditional sale, bailment lease, or otherwise, be the entire
amount which the borough pays to the successful bidder or his
assigns in order to obtain the services or property, or both,
and shall not be construed to mean only the amount which is paid
to acquire title or to receive any other particular benefit or
benefits of the whole bargain. In awarding contracts, council
shall have the right to take into consideration such other
factors as the availability, cost and quality of service.
(a.1) Written or telephonic price quotations from at least
three qualified and responsible contractors shall be requested
for all contracts that exceed [four thousand dollars ($4,000)]
ten thousand dollars ($10,000) subject to annual adjustment
under subsection (a.2) but are less than the amount requiring
advertisement and competitive bidding or, in lieu of price
quotations, a memorandum shall be kept on file showing that
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fewer than three qualified contractors exist in the market area
within which it is practicable to obtain quotations. A written
record of telephonic price quotations shall be made and shall
contain at least the date of the quotation, the name of the
contractor and the contractor's representative, the
construction, reconstruction, repair, maintenance or work which
was the subject of the quotation and the price. Written price
quotations, written records of telephonic price quotations and
memoranda shall be retained for a period of three years.
(a.2) (1) The Department of Labor and Industry shall
determine the percentage change in the Consumer Price Index for
All Urban Consumers for the twelve-month period ending September
30 of the calendar year in which this subsection becomes
effective, and for each successive twelve-month period
thereafter.
(2) The amount at which competitive bidding is required
under subsection (a) and the amount at which written or
telephonic price quotations are required under subsection (a.1)
shall be adjusted annually as follows:
(i) In the case of competitive bidding, the positive
percentage change, as determined in accordance with clause (1),
shall be multiplied by the amount applicable under subsection
(a) for the current year and the product thereof shall be added
to the amount applicable under subsection (a) for the current
year, with the result rounded to the nearest multiple of ten
dollars ($10).
(ii) In the case of written or telephonic price quotations,
the positive percentage change, as determined in accordance with
clause (1), shall be multiplied by the amount applicable under
subsection (a.1) for the current year and the product thereof
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shall be added to the amount applicable under subsection (a.1)
for the current year, with the result rounded to the nearest
multiple of ten dollars ($10).
(3) The annual determination required under clause (1) and
the calculation of the adjustments required under clause (2)
shall be made in the period between October 1 and November 15 of
the year following the effective date of this subsection, and
annually between October 1 and November 15 of each successive
year.
(4) The adjusted amounts obtained in accordance with clause
(2) shall become effective January 1 for the calendar year
following the year in which the determination required under
clause (1) is made.
(5) The Department of Labor and Industry shall give notice
in the Pennsylvania Bulletin prior to January 1 of each calendar
year of the annual percentage change determined in accordance
with clause (1) and the amounts, whether adjusted or unadjusted
in accordance with clause (2), at which competitive bidding is
required under subsection (a) and written or telephonic price
quotations are required under subsection (a.1) for the calendar
year beginning the first day of January after publication of the
notice.
* * *
(d) The contracts or purchases made by council, which shall
not require advertising, bidding or price quotations as
hereinbefore provided, are as follows:
(1) Those for maintenance, repairs or replacements for
water, electric light or public works of the borough, provided
they do not constitute new additions, extensions or enlargements
of existing facilities and equipment, but a bond may be required
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by council, as in other cases of work done;
(2) Those made for improvements, repairs and maintenance of
any kind, made or provided by any borough, through its own
employes: Provided, That all materials used for street
improvement, maintenance and/or construction in excess of [four
thousand dollars ($4,000)] the amount specified or adjusted
under subsection (a.1) be subject to the relevant price
quotation or advertising requirements contained herein;
(3) Those where particular types, models or pieces of new
equipment, articles, apparatus, appliances, vehicles or parts
thereof are desired by council, which are patented and
manufactured or copyrighted products;
(3.1) Those for used equipment, articles, apparatus,
appliances, vehicles or parts thereof being purchased from a
public utility.
(4) Those involving any policies of insurance or surety
company bonds; those made for public utility service under
tariffs on file with the Pennsylvania Public Utility Commission;
those made with another political subdivision, or a county, the
Commonwealth of Pennsylvania, the Federal Government, any agency
of the Commonwealth or the Federal Government, or any municipal
authority, including the sale, leasing or loan of any supplies
or materials by the Commonwealth or the Federal Government or
their agencies. The price thereof shall not be in excess of that
fixed by the Commonwealth, the Federal Government, or their
agencies;
(5) Those involving personal or professional services.
* * *
Section 2. Sections 1403(a) and 1405 of the act, amended
July 10, 1990 (P.L.383, No.90), are amended to read:
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Section 1403. Evasion of Advertising Requirements.--(a) No
member or members of council shall evade the provisions of
section 1402 hereof as to advertising for bids, by purchasing or
contracting for services and personal properties piecemeal for
the purpose of obtaining prices under [ten thousand dollars
($10,000)] the amount specified or adjusted under section
1402(a) upon transactions, which transactions should, in the
exercise of reasonable discretion and prudence, be conducted as
one transaction amounting to more than [ten thousand dollars
($10,000)] the amount specified or adjusted under section
1402(a). This provision is intended to make unlawful the evading
of advertising requirements by making a series of purchases or
contracts, each for less than the advertising requirement price,
or by making several simultaneous purchases or contracts, each
below said price, when, in either case, the transactions
involved should have been made as one transaction for one price.
Any members of council who so vote in violation of this
provision and who know that the transaction upon which they so
vote is or ought to be a part of a larger transaction and that
it is being divided in order to evade the requirements as to
advertising for bids, shall be jointly and severally subject to
surcharge for ten percent of the full amount of the contract or
purchase. Whenever it shall appear that a member of council may
have voted in violation of this section but the purchase or
contract on which he so voted was not approved by council, this
section shall be inapplicable.
* * *
Section 1405. Separate Bids for Plumbing, Heating,
Ventilating and Electrical Work.--In the preparation for the
erection, construction and alteration of any public building,
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when the entire cost of such work shall exceed [ten thousand
dollars ($10,000)] the amount specified or adjusted under
section 1402(a), the architect, engineer, or other person
preparing such specifications may, if so requested by the
borough council, prepare separate specifications for the
plumbing, heating, ventilating and electrical work. The person
or persons authorized to enter into contracts for the erection,
construction or alteration of such public buildings may, if such
separate specifications shall have been proposed, receive
separate bids upon each of the said branches of work and shall
thereupon award the contract for the same to the lowest
responsible bidder for each of said branches.
Section 3. This act shall apply to contracts and purchases
advertised after December 31 of the year in which this section
takes effect.
Section 4. This act shall take effect immediately.
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