SENATE AMENDED

 

PRIOR PRINTER'S NOS. 242, 1435

PRINTER'S NO.  2429

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

289

Session of

2011

  

  

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, 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, WATSON AND F. KELLER, JANUARY 27, 2011

  

  

SENATOR EICHELBERGER, LOCAL GOVERNMENT, IN SENATE, AS AMENDED, SEPTEMBER 27, 2011   

  

  

  

AN ACT

  

1

Amending the act of August 6, 1936 (Sp.Sess., P.L.95, No.38

2

1/2), entitled "An act to authorize and empower cities,

3

boroughs, towns, and townships, separately or jointly, to

4

provide for protection against floods by erecting and

5

constructing certain works and improvements, located within

6

or without their territorial limits, and within or without

7

the county in which situate; and to expend moneys and incur

8

indebtedness; to assess benefits against property benefited;

9

to issue improvement bonds imposing no municipal liability;

10

and to acquire, take, injure or destroy property for such

11

purposes," further providing for competitive bidding of

12

contracts.

13

The General Assembly of the Commonwealth of Pennsylvania

14

hereby enacts as follows:

15

Section 1.  Section 3 of the act of August 6, 1936 (Sp.Sess.,

<--

16

P.L.95, No.38 1/2), entitled "An act to authorize and empower

17

cities, boroughs, towns, and townships, separately or jointly,

 


1

to provide for protection against floods by erecting and

2

constructing certain works and improvements, located within or

3

without their territorial limits, and within or without the

4

county in which situate; and to expend moneys and incur

5

indebtedness; to assess benefits against property benefited; to

6

issue improvement bonds imposing no municipal liability; and to

7

acquire, take, injure or destroy property for such purposes,"

8

amended July 10, 1990 (P.L.402, No.97), is amended to read:

9

Section 3.  (a)  No such works or improvements, involving an

10

expenditure by any municipality or municipalities of more than

11

[ten thousand dollars ($10,000)] the base amount of twenty-five

12

thousand dollars ($25,000), subject to adjustment under

13

subsection (b.1), shall be erected, constructed or provided,

14

except by contract let to the lowest responsible bidder after

15

due advertisement, once a week for two successive weeks in at

16

least one newspaper of general circulation: Provided, however,

17

That no contract shall be required to be let for the performance

18

of the work on any such work or improvement where the cost of

19

the labor shall be paid by the Federal Government, or any agency

20

thereof, without cost to the municipality or municipalities.

21

(b)  Written or telephonic price quotations from at least

22

three qualified and responsible contractors shall be requested

23

for all contracts that exceed [four thousand dollars ($4,000)] 

24

the base amount of ten thousand dollars ($10,000), subject to

25

adjustment under subsection (b.1), but are less than the amount

26

requiring advertisement and competitive bidding or, in lieu of

27

price quotations, a memorandum shall be kept on file showing

28

that fewer than three qualified contractors exist in the market

29

area within which it is practicable to obtain quotations. A

30

written record of telephonic price quotations shall be made and

- 2 -

 


1

shall contain at least the date of the quotation, the name of

2

the contractor and the contractor's representative, the

3

construction, reconstruction, repair, maintenance or work which

4

was the subject of the quotation and the price. Written price

5

quotations, written records of telephonic price quotations and

6

memoranda shall be retained for a period of three years.

7

(b.1)  Adjustments to the base amounts specified under

8

subsections (a) and (b) shall be made as follows:

9

(1)  The Department of Labor and Industry shall determine the

10

percentage change in the All Items Consumer Price Index for All

11

Urban Consumers (CPI-U) for the United States City Average as

12

published by the United States Department of Labor, Bureau of

13

Labor Statistics for the twelve-month period ending September 30

14

of the calendar year in which this subsection becomes effective,

15

and for each successive twelve-month period thereafter.

16

(2)  If the department determines that there is no positive

17

percentage change, then no adjustment to the base amounts shall

18

occur for the relevant time period provided for in this

19

subsection.

20

(3)  (i)  If the department determines that there is a

21

positive percentage change in the first year that the

22

determination is made under paragraph (1), the positive

23

percentage change shall be multiplied by each base amount and

24

the products shall be added to the base amounts, respectively,

25

and the sums shall be preliminary adjusted amounts.

26

(ii)  The preliminary adjusted amounts shall be rounded to

27

the nearest one thousand dollars ($1,000), to determine the

28

final adjusted base amounts for purposes of subsections (a) and

29

(b).

30

(4)  In each successive year in which there is a positive

- 3 -

 


1

percentage change in the CPI-U for the United States City

2

Average, the positive percentage change shall be multiplied by

3

the most recent preliminary adjusted amounts and the products

4

shall be added to the most recent preliminary adjusted amounts,

5

respectively. The sums thereof shall be rounded to the nearest

6

one thousand dollars ($1,000) to determine the new final

7

adjusted base amounts for purposes of subsections (a) and (b).

8

(5)  The determinations and adjustments required under this

9

subsection shall be made in the period between October 1 and

10

November 15 of the year following the effective date of this

11

subsection, and annually between October 1 and November 15 of

12

each year thereafter.

13

(6)  The final adjusted base amounts and new final adjusted

14

base amounts obtained under paragraphs (3) and (4) shall become

15

effective January 1 for the calendar year following the year in

16

which the determination required under paragraph (1) is made.

17

(7)  The department shall publish notice in the Pennsylvania

18

Bulletin prior to January 1 of each calendar year of the annual

19

percentage change determined under paragraph (1) and the

20

unadjusted or final adjusted base amounts determined under

21

paragraphs (3) and (4) at which competitive bidding is required

22

under subsection (a) and written or telephonic price quotations

23

are required under subsection (b), respectively, for the

24

calendar year beginning the first day of January after

25

publication of the notice. The notice shall include a written

26

and illustrative explanation of the calculations performed by

27

the department in establishing the unadjusted or final adjusted

28

base amounts under this subsection for the ensuing calendar

29

year.

30

(c)  No municipality shall evade the provisions of this

- 4 -

 


1

section as to advertising for bids or purchasing materials or

2

contracting for services piecemeal for the purpose of obtaining

3

prices under [ten thousand dollars ($10,000)] the amount

4

required by this section upon transactions which should, in the

5

exercise of reasonable discretion and prudence, be conducted as

6

one transaction amounting to more than [ten thousand dollars

7

($10,000)] the amount required by this section. This provision

8

is intended to make unlawful the practice of evading advertising

9

requirements by making a series of purchases or contracts each

10

for less than the advertising requirement price or by making

11

several simultaneous purchases or contracts each below said

12

price, when in either case the transaction involved should have

13

been made as one transaction for one price.

14

(d)  Any member of a governing body of a municipality who

15

votes to unlawfully evade the provisions of this section and who

16

knows that the transaction upon which he so votes is or ought to

17

be a part of a larger transaction and that it is being divided

18

in order to evade the requirements as to advertising for bids

19

commits a misdemeanor of the third degree for each contract

20

entered into as a direct result of that vote.

21

(e)  Every contract for the construction, reconstruction,

22

alteration, repair, improvement or maintenance of public works

23

shall comply with the provisions of the act of March 3, 1978

24

(P.L.6, No.3), known as the "Steel Products Procurement Act."

25

Section 2.  The amendment of section 3 of the act shall apply

26

to contracts and purchases advertised after December 31 of the

27

year in which this section takes effect.

28

Section 3.  This act shall take effect immediately.

29

Section 1.  Section 3 of the act of August 6, 1936 (Sp.Sess.,

<--

30

P.L.95, No.38 1/2), entitled "An act to authorize and empower

- 5 -

 


1

cities, boroughs, towns, and townships, separately or jointly,

2

to provide for protection against floods by erecting and

3

constructing certain works and improvements, located within or

4

without their territorial limits, and within or without the

5

county in which situate; and to expend moneys and incur

6

indebtedness; to assess benefits against property benefited; to

7

issue improvement bonds imposing no municipal liability; and to

8

acquire, take, injure or destroy property for such purposes,"

9

amended July 10, 1990 (P.L.402, No.97), is amended to read:

10

Section 3.  (a)  No such works or improvements, involving

11

[an] expenditure by any municipality or municipalities of more

12

than [ten thousand dollars ($10,000)] the base amount of

13

eighteen thousand five hundred dollars ($18,500), subject to

14

adjustment under subsection (b.1), shall be erected, constructed

15

or provided, except by contract let to the lowest responsible

16

bidder after due advertisement, once a week for two successive

17

weeks in at least one newspaper of general circulation:

18

Provided, however, That no contract shall be required to be let

19

for the performance of the work on any such work or improvement

20

where the cost of the labor shall be paid by the Federal

21

Government, or any agency thereof, without cost to the

22

municipality or municipalities.

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

in excess of the base amount of ten thousand dollars ($10,000),

27

subject to adjustment under subsection (b.1), but are less than

28

the amount requiring advertisement and competitive bidding or,

29

in lieu of price quotations, a memorandum shall be kept on file

30

showing that fewer than three qualified contractors exist in the

- 6 -

 


1

market area within which it is practicable to obtain quotations.

2

A written record of telephonic price quotations shall be made

3

and shall contain at least the date of the quotation, the name

4

of the 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 to the base amounts specified under

10

subsections (a) and (b) shall be made as follows:

11

(1)  The Department of Labor and Industry shall determine the

12

percentage change in the All Items Consumer Price Index for All

13

Urban Consumers (CPI-U) for the United States City Average as

14

published by the United States Department of Labor, Bureau of

15

Labor Statistics for the twelve-month period ending September

16

30, 2012, and for each successive twelve-month period

17

thereafter.

18

(2)  If the department determines that there is no positive

19

percentage change, then no adjustment to the base amounts shall

20

occur for the relevant time period provided for in this

21

subsection.

22

(3)  (i)  If the department determines that there is a

23

positive percentage change in the first year that the

24

determination is made under paragraph (1), the positive

25

percentage change shall be multiplied by each base amount and

26

the products shall be added to the base amounts, respectively,

27

and the sums shall be preliminary adjusted amounts.

28

(ii)  The preliminary adjusted amounts shall be rounded to

29

the nearest one hundred dollars ($100), to determine the final

30

adjusted base amounts for purposes of subsections (a) and (b).

- 7 -

 


1

(4)  In each successive year in which there is a positive

2

percentage change in the CPI-U for the United States City

3

Average, the positive percentage change shall be multiplied by

4

the most recent preliminary adjusted amounts and the products

5

shall be added to the preliminary adjusted amount of the prior

6

year to calculate the preliminary adjusted amounts for the

7

current year. The sums thereof shall be rounded to the nearest

8

one hundred dollars ($100) to determine the new final adjusted

9

base amounts for purposes of subsections (a) and (b).

10

(5)  The determinations and adjustments required under this

11

subsection shall be made in the period between October 1 and

12

November 15 of the year following the effective date of this

13

subsection, and annually between October 1 and November 15 of

14

each year thereafter.

15

(6)  The final adjusted base amounts and new final adjusted

16

base amounts obtained under paragraphs (3) and (4) shall become

17

effective January 1 for the calendar year following the year in

18

which the determination required under paragraph (1) is made.

19

(7)  The department shall publish notice in the Pennsylvania

20

Bulletin prior to January 1 of each calendar year of the annual

21

percentage change determined under paragraph (1) and the

22

unadjusted or final adjusted base amounts determined under

23

paragraphs (3) and (4) at which competitive bidding is required

24

under subsection (a) and written or telephonic price quotations

25

are required under subsection (b), respectively, for the

26

calendar year beginning the first day of January after

27

publication of the notice. The notice shall include a written

28

and illustrative explanation of the calculations performed by

29

the department in establishing the unadjusted or final adjusted

30

base amounts under this subsection for the ensuing calendar

- 8 -

 


1

year.

2

(8)  The annual increase in the preliminary adjusted base

3

amounts obtained under paragraphs (3) and (4) shall not exceed

4

three per centum.

5

(c)  No municipality shall evade the provisions of this

6

section as to advertising for bids or purchasing materials or

7

contracting for services piecemeal for the purpose of obtaining

8

prices under [ten thousand dollars ($10,000)] the amount

9

required by this section upon transactions which should, in the

10

exercise of reasonable discretion and prudence, be conducted as

11

one transaction amounting to more than [ten thousand dollars

12

($10,000)] the amount required by this section. This provision

13

is intended to make unlawful the practice of evading advertising

14

requirements by making a series of purchases or contracts each

15

for less than the advertising requirement price or by making

16

several simultaneous purchases or contracts each below said

17

price, when in either case the transaction involved should have

18

been made as one transaction for one price.

19

(d)  Any member of a governing body of a municipality who

20

votes to unlawfully evade the provisions of this section and who

21

knows that the transaction upon which he so votes is or ought to

22

be a part of a larger transaction and that it is being divided

23

in order to evade the requirements as to advertising for bids

24

commits a misdemeanor of the third degree for each contract

25

entered into as a direct result of that vote.

26

(e)  Every contract for the construction, reconstruction,

27

alteration, repair, improvement or maintenance of public works

28

shall comply with the provisions of the act of March 3, 1978

29

(P.L.6, No.3), known as the "Steel Products Procurement Act."

30

Section 2.  The amendment of section 3 of the act shall apply

- 9 -

 


1

to contracts and purchases advertised after December 31 of the

2

year in which this section takes effect.

3

Section 3.  This act shall take effect immediately.

- 10 -