PRINTER'S NO. 1908

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1629 Session of 1981


        INTRODUCED BY COSLETT, MACKOWSKI, PHILLIPS, TELEK, LEHR,
           STEVENS, LEVI, A. C. FOSTER, JR., PETERSON, WASS, MADIGAN,
           BOWSER, McINTYRE, CALTAGIRONE, E. H. SMITH, SNYDER,
           E. Z. TAYLOR AND KANUCK, JUNE 16, 1981

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 16, 1981

                                     AN ACT

     1  Amending the act of February 1, 1966 (1965 P.L.1656, No.581),
     2     entitled "An act concerning boroughs, and revising, amending
     3     and consolidating the law relating to boroughs," further
     4     providing for the awarding of contracts.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Subsection (a) and the first paragraph of
     8  subsection (d) of section 1402, sections 1403 and 1405, act of
     9  February 1, 1966 (1965 P.L.1656, No.581), known as "The Borough
    10  Code," amended October 4, 1978 (P.L.1022, No.226), are amended
    11  to read:
    12     Section 1402.  Regulation of Contracts.--(a)  All contracts
    13  or purchases in excess of [two thousand five hundred dollars
    14  ($2,500)] four thousand dollars ($4,000), except those
    15  hereinafter mentioned, shall not be made except with and from
    16  the lowest responsible bidder after due notice in one newspaper
    17  of general circulation in the borough, at least three times at
    18  intervals of not less than three days where daily newspapers of

     1  general circulation are available for such publication, in case
     2  of weekly newspapers, such notice once a week for two successive
     3  weeks. The first advertisement shall be published not less than
     4  ten days prior to the date fixed for the opening of bids. The
     5  amount of the contract shall in all cases, whether of straight
     6  sale price, conditional sale, bailment lease, or otherwise, be
     7  the entire amount which the borough pays to the successful
     8  bidder or his assigns in order to obtain the services or
     9  property, or both, and shall not be construed to mean only the
    10  amount which is paid to acquire title or to receive any other
    11  particular benefit or benefits of the whole bargain. In awarding
    12  bids, council shall have the right to take into consideration
    13  such other factors as the availability, cost and quality of
    14  service.
    15     * * *
    16     (d)  The contracts or purchases made by council, involving an
    17  expenditure of over [two thousand five hundred dollars ($2,500)]
    18  four thousand dollars ($4,000), which shall not require
    19  advertising or bidding as hereinbefore provided, are as follows:
    20     * * *
    21     Section 1403.  Evasion of Advertising Requirements.--No
    22  member or members of council shall evade the provisions of
    23  section 1402 hereof as to advertising for bids, by purchasing or
    24  contracting for services and personal properties piecemeal for
    25  the purpose of obtaining prices under [two thousand five hundred
    26  dollars ($2,500)] four thousand dollars ($4,000) upon
    27  transactions, which transactions should, in the exercise of
    28  reasonable discretion and prudence, be conducted as one
    29  transaction amounting to more than [two thousand five hundred
    30  dollars ($2,500)] four thousand dollars ($4,000). This provision
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     1  is intended to make unlawful the evading of advertising
     2  requirements by making a series of purchases or contracts, each
     3  for less than the advertising requirement price, or by making
     4  several simultaneous purchases or contracts, each below said
     5  price, when, in either case, the transactions involved should
     6  have been made as one transaction for one price. Any members of
     7  council who so vote in violation of this provision and who know
     8  that the transaction upon which they so vote is or ought to be a
     9  part of a larger transaction and that it is being divided in
    10  order to evade the requirements as to advertising for bids,
    11  shall be jointly and severally subject to surcharge for ten
    12  percent of the full amount of the contract or purchase. Whenever
    13  it shall appear that a member of council may have voted in
    14  violation of this section but the purchase or contract on which
    15  he so voted was not approved by council, this section shall be
    16  inapplicable.
    17     Section 1405.  Separate Bids for Plumbing, Heating,
    18  Ventilating and Electrical Work.--In the preparation for the
    19  erection, construction and alteration of any public building,
    20  when the entire cost of such work shall exceed [two thousand
    21  five hundred dollars ($2,500)] four thousand dollars ($4,000),
    22  the architect, engineer, or other person preparing such
    23  specifications may, if so requested by the borough council,
    24  prepare separate specifications for the plumbing, heating,
    25  ventilating and electrical work. The person or persons
    26  authorized to enter into contracts for the erection,
    27  construction or alteration of such public buildings may, if such
    28  separate specifications shall have been proposed, receive
    29  separate bids upon each of the said branches of work and shall
    30  thereupon award the contract for the same to the lowest
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     1  responsible bidder for each of said branches.
     2     Section 2.  This act shall take effect in 60 days.



















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