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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY M.K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GERBER, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH AND WATSON, JANUARY 27, 2011 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 27, 2011 |
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| AN ACT |
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1 | Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as |
2 | reenacted and amended, "An act concerning townships of the |
3 | second class; and amending, revising, consolidating and |
4 | changing the law relating thereto," in contracts, further |
5 | providing for competitive bidding of contracts. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Section 3102(a), (b) and (h) of the act of May 1, |
9 | 1933 (P.L.103, No.69), known as The Second Class Township Code, |
10 | reenacted and amended November 9, 1995 (P.L.350, No.60), and |
11 | amended December 18, 1996 (P.L.1142, No.172), December 19, 1996 |
12 | (P.L.1412, No.181) and October 11, 2000 (P.L.535, No.70), are |
13 | amended and the section is amended by adding a subsection to |
14 | read: |
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1 | Section 3102. Letting Contracts.--(a) All contracts or |
2 | purchases in excess of the required advertising amount of [ten |
3 | thousand dollars ($10,000)] twenty-five thousand dollars |
4 | ($25,000), subject to adjustment under subsection (b.1), except |
5 | those specifically excluded, shall not be made except with and |
6 | from the lowest responsible bidder after due notice in one |
7 | newspaper of general circulation in the township. The notice for |
8 | bids shall be published at least two times at intervals of not |
9 | less than three days in daily newspapers or once a week for two |
10 | successive weeks in weekly newspapers. The first advertisement |
11 | shall be published not more than forty-five days, and the second |
12 | advertisement not less than ten days, before the date set for |
13 | the opening of bids. Notice of proposed contracts or purchases |
14 | shall also be posted where the board of supervisors normally |
15 | meets or in a conspicuous place within the township. Any |
16 | published notice for bids shall contain full plans and |
17 | specifications, or refer to the places where copies thereof can |
18 | be obtained, state the amount of the performance bond determined |
19 | under subsection (g) and give the date, time and place of a |
20 | meeting at which an individual or committee appointed by the |
21 | board of supervisors or the board of supervisors will open and |
22 | read the bids. |
23 | (b) Written or telephonic price quotations from at least |
24 | three qualified and responsible contractors shall be requested |
25 | for all contracts that exceed [four thousand dollars ($4,000)] |
26 | ten thousand dollars ($10,000), subject to adjustment under |
27 | subsection (b.1), but are less than the amount requiring |
28 | advertisement and competitive bidding, or, in lieu of price |
29 | quotations, a memorandum shall be kept on file showing that |
30 | fewer than three qualified contractors exist in the market area |
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1 | within which it is practicable to obtain quotations. A written |
2 | record of telephonic price quotations shall be made and shall |
3 | contain at least the date of the quotation, the name of the |
4 | contractor and the contractor's representative, the |
5 | construction, reconstruction, repair, maintenance or work which |
6 | was the subject of the quotation and the price. Written price |
7 | quotations, written records of telephonic price quotations and |
8 | memoranda shall be retained for a period of three years. |
9 | (b.1) Adjustments shall be made as follows: |
10 | (1) The Department of Labor and Industry shall determine the |
11 | percentage change in the Consumer Price Index for All Urban |
12 | Consumers for the twelve-month period ending September 30 of the |
13 | calendar year in which this subsection becomes effective, and |
14 | for each successive twelve-month period thereafter. |
15 | (2) The amount at which competitive bidding is required |
16 | under subsection (a) and the amount at which written or |
17 | telephonic price quotations are required under subsection (b) |
18 | shall be adjusted annually as follows: |
19 | (i) In the case of competitive bidding, the positive |
20 | percentage change, as determined in accordance with paragraph |
21 | (1), shall be multiplied by the amount applicable under |
22 | subsection (a) for the current year and the product thereof |
23 | shall be added to the amount applicable under subsection (a) for |
24 | the current year, with the result rounded to the nearest |
25 | multiple of ten dollars ($10). |
26 | (ii) In the case of written or telephonic price quotations, |
27 | the positive percentage change, as determined in accordance with |
28 | paragraph (1), shall be multiplied by the amount applicable |
29 | under subsection (b) for the current year and the product |
30 | thereof shall be added to the amount applicable under subsection |
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1 | (b) for the current year, with the result rounded to the nearest |
2 | multiple of ten dollars ($10). |
3 | (3) The annual determination required under paragraph (1) |
4 | and the calculation of the adjustments required under paragraph |
5 | (2) shall be made in the period between October 1 and November |
6 | 15 of the year following the effective date of this subsection, |
7 | and annually between October 1 and November 15 of each |
8 | successive year. |
9 | (4) The adjusted amounts obtained in accordance with |
10 | paragraph (2) shall become effective January 1 for the calendar |
11 | year following the year in which the determination required |
12 | under paragraph (1) is made. |
13 | (5) The department shall give notice in the Pennsylvania |
14 | Bulletin prior to January 1 of each calendar year of the annual |
15 | percentage change determined in accordance with paragraph (1) |
16 | and the amounts, whether adjusted or unadjusted in accordance |
17 | with paragraph (2), at which competitive bidding is required |
18 | under subsection (a) and written or telephonic price quotations |
19 | are required under subsection (b) for the calendar year |
20 | beginning the first day of January after publication of the |
21 | notice. |
22 | * * * |
23 | (h) The contracts or purchases made by the board of |
24 | supervisors involving payments in excess of the required |
25 | advertising amount, which do not require advertising, bidding or |
26 | price quotations are as follows: |
27 | (1) Those made for emergency, or routine maintenance, |
28 | repairs or replacements for water, electric light and other |
29 | public works of the township if they do not constitute new |
30 | additions, extensions or enlargements of existing facilities and |
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1 | equipment. |
2 | (2) Those made for improvements, repairs or maintenance of |
3 | any kind made or provided by any township through its own |
4 | employes. All contracts or purchases of materials used for |
5 | improvement, maintenance or construction [in excess of four |
6 | thousand dollars ($4,000) but less than the required advertising |
7 | amount] are subject to the provisions contained in subsection |
8 | (a) and (b)[, and those contracts or purchases in excess of the |
9 | required advertising amount are subject to the advertising |
10 | requirements contained in subsection (a)]. |
11 | (3) Those involving any policies of insurance or surety |
12 | company bonds, those made for public utility service, those made |
13 | for electricity, natural gas or telecommunications service |
14 | either directly or with an association authorized under Article |
15 | XIV in which the township is a member and those made with |
16 | another municipal corporation, county, school district or |
17 | municipality authority or Federal or State Government, including |
18 | the sale, leasing or loan of any supplies or materials by the |
19 | Federal or State Government or their agencies. |
20 | (4) Those involving personal or professional services. |
21 | (5) Those made for materials and supplies or equipment |
22 | rental under emergency conditions under 35 Pa.C.S. Pt. V |
23 | (relating to emergency management services). |
24 | (6) Those contracts involving equipment rental with |
25 | operators if more than fifty percent of the total labor |
26 | personnel hours required for the completion of the contract is |
27 | supplied by the township through its own employes. |
28 | (7) Those contracts for the purchase of repair parts or |
29 | materials for use in existing township equipment or facilities |
30 | if the item or material to be purchased is the sole item of its |
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1 | kind on the market or is manufactured as a replacement for the |
2 | original item or equipment being repaired. |
3 | (8) Those for used equipment, articles, apparatus, |
4 | appliances, vehicles or parts thereof being purchased from a |
5 | public utility. |
6 | (9) Those where particular types, models or pieces of |
7 | equipment, articles, apparatus, appliances, vehicles or parts |
8 | thereof which are patented and manufactured products. |
9 | * * * |
10 | Section 2. This act shall apply to contracts and purchases |
11 | advertised after December 31 of the year in which this section |
12 | takes effect. |
13 | Section 3. This act shall take effect immediately. |
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