PRIOR PRINTER'S NOS. 256, 1554

PRINTER'S NO.  1584

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

282

Session of

2011

  

  

INTRODUCED BY ROBBINS, EICHELBERGER, KASUNIC, FOLMER, GORDNER, BOSCOLA, ORIE, RAFFERTY, YAW, M. WHITE, D. WHITE, ERICKSON, BAKER, ALLOWAY, BRUBAKER, GREENLEAF, SMUCKER, WAUGH, FERLO, VANCE, EARLL, SCARNATI, McILHINNEY, PICCOLA, WARD AND BROWNE, JANUARY 26, 2011

  

  

AS AMENDED ON THIRD CONSIDERATION, SEPTEMBER 26, 2011   

  

  

  

AN ACT

  

1

Amending the act of June 23, 1931 (P.L.932, No.317), entitled

2

"An act relating to cities of the third class; and amending,

3

revising, and consolidating the law relating thereto,"

4

further regulating contracts as to purchasing and advertising

5

requirements.

6

The General Assembly of the Commonwealth of Pennsylvania

7

hereby enacts as follows:

8

Section 1.  Section 1901(a), (b) and (d) of the act of June

9

23, 1931 (P.L.932, No.317), known as The Third Class City Code,

10

reenacted and amended June 28, 1951 (P.L.662, No.164), amended

11

March 25, 1988 (P.L.289, No.32) and July 11, 1996 (P.L.647, No.

12

109), is amended to read:

13

Section 1901.  Power to Make Contracts; Regulations

14

Concerning Contracts.--(a)  Each city may make contracts for

15

carrying into execution the provisions of this act and the laws

16

of the Commonwealth. The council shall, by ordinance, provide

17

for and regulate the award of all contracts. All contracts or

18

purchases not in excess of [ten] the base amount of eighteen 

 


1

thousand five hundred dollars, subject to adjustment under

2

section one thousand nine hundred and three point one of this

3

act, shall be by note or memorandum in writing, signed by the

4

officer or employe making the purchase or contract.

5

(b)  All services and personal properties required by any

6

city, or any department thereof, where the base amount exceeds

7

the sum of [ten] eighteen thousand five hundred dollars, subject

8

to adjustment under section one thousand nine hundred and three

9

point one of this act, shall be furnished and performed under

10

written contract, and the contract shall be awarded and given to

11

the lowest responsible bidder, after advertising two times, each

12

publication on a different day, in not more than two newspapers,

13

in accord with the provisions of section one hundred and nine of

14

this act, and the bids shall not be opened until at least ten

15

days have elapsed after the first advertisement. A notice of the

16

advertisement for contracts or purchases shall also be posted at

17

the city hall.

18

* * *

19

(d)  The contracts or purchases made by council involving an

20

expenditure [of over ten] in excess of the base amount of

21

eighteen thousand five hundred dollars, subject to adjustment

22

under section one thousand nine hundred and three point one of

23

this act, which shall not require advertising or bidding, as

24

hereinbefore provided are as follows:

25

(1)  Those for maintenance, repairs or replacements for

26

water, electric light or other public works of the city,

27

provided they do not constitute new additions, extensions or

28

enlargements of existing facilities and equipment, but a bond

29

may be required by council as in other cases of work done.

30

(2)  Those made for improvements, repairs and maintenance of

- 2 -

 


1

any kind made or provided by any city through its own employes:

2

Provided, however, That this shall not apply to construction

3

materials used in a street improvement.

4

(3)  Those where particular types, models or pieces of new

5

equipment, articles, apparatus, appliances, vehicles, or parts

6

thereof, are desired by council, which are patented and

7

manufactured or copyrighted products.

8

(4)  Those involving any policies of insurance or surety

9

company bonds; those made for public utility service under

10

tariffs on file with the Pennsylvania Public Utility Commission;

11

those made with another political subdivision or a county, the

12

Commonwealth of Pennsylvania, the Federal government, any agency

13

of the Commonwealth or the Federal government, or any municipal

14

authority, including the sale, leasing or loan of any supplies

15

or materials by the Commonwealth or the Federal government, or

16

their agencies, but the price thereof shall not be in excess of

17

that fixed by the Commonwealth, the Federal government, or their

18

agencies.

19

(5)  Those involving personal or professional services.

20

(6)  Those made during a state of emergency declared by the

21

mayor or chief executive in accord with section one thousand two

22

hundred and three of this act.

23

* * *

24

Section 2.  Section 1902 of the act, amended March 25, 1988

25

(P.L.289, No.32), is amended to read:

26

Section 1902.  Evasion of Advertising Requirements.--No

27

member or members of council shall evade the provisions of the

28

preceding section as to advertising for bids by purchasing or

29

contracting for services and personal properties piecemeal for

30

the purpose of obtaining prices under [ten] the base amount of

- 3 -

 


1

eighteen thousand five hundred dollars, subject to adjustment

2

under section one thousand nine hundred and three point one of

3

this act, upon transactions which should, in the exercise of

4

reasonable discretion and prudence, be conducted as one

5

transaction amounting to more than [ten] the base amount of

6

eighteen thousand five hundred dollars, subject to adjustment

7

under section one thousand nine hundred and three point one of

8

this act. This provision is intended to make unlawful the

9

practice of evading advertising requirements by making a series

10

of purchases or contracts, each for less than the advertising

11

requirement price, or by making several simultaneous purchases

12

or contracts, each below said price, when, in either case, the

13

transactions involved should have been made as one transaction

14

for one price. Any members of council who so vote in violation

15

of this provision and who know that the transaction upon which

16

they so vote is or ought to be a part of a larger transaction

17

and that it is being divided in order to evade the requirements

18

as to advertising for bids, shall be jointly and severally

19

subject to surcharge for ten per centum of the full amount of

20

the contract or purchase. Wherever it shall appear that a member

21

of council may have voted in violation of this section but the

22

purchase or contract on which he so voted was not approved by

23

council, this section shall be inapplicable.

24

Section 3.  The act is amended by adding a section to read:

25

Section 1903.1.  Adjustments to Base Amount Based on Consumer

26

Price Index for All Urban Consumers.--

27

(a)  Adjustments to the base amounts specified under sections

28

1901, 1902 and 1909 shall be made as follows:

29

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

30

percentage change in the All Items Consumer Price Index for All

- 4 -

 


1

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

2

published by the United States Department of Labor, Bureau of

3

Labor Statistics for the twelve-month period ending September

4

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

5

thereafter.

6

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

7

percentage change, then no adjustment to the base amounts shall

8

occur for the relevant time period provided for in this section.

9

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

10

positive percentage change in the first year that the

11

determination is made under paragraph (1), the positive

12

percentage change shall be multiplied by each base amount and

13

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

14

and the sums shall be preliminary adjusted amounts.

15

(ii)  The preliminary adjusted amounts shall be rounded to

16

the nearest one thousand dollars ($1,000) hundred dollars

<--

17

($100), to determine the final adjusted base amounts for

18

purposes of sections 1901 and 1902.

19

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

20

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

21

Average, the positive percentage change shall be multiplied by

22

the most recent preliminary adjusted amounts and the products

23

shall be added to the preliminary adjusted amount of the prior

24

year to calculate the preliminary adjusted amounts for the

25

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

26

one thousand dollars ($1,000) hundred dollars ($100) to

<--

27

determine the new final adjusted base amounts for purposes of

28

sections 1901 and 1902.

29

(5)  The determinations and adjustments required under this

30

section shall be made in the period between October 1 and

- 5 -

 


1

November 15 of the year following the effective date of this

2

subsection, and annually between October 1 and November 15 of

3

each year thereafter.

4

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

5

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

6

effective January 1 for the calendar year following the year in

7

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

8

(7)  The department shall publish notice in the Pennsylvania

9

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

10

percentage change determined under paragraph (1) and the

11

unadjusted or final adjusted base amounts determined under

12

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

13

under section 1901, advertising is required under section 1902

14

or separate bids are required under section 1909 for the

15

calendar year beginning the first day of January after

16

publication of the notice. The notice shall include a written

17

and illustrative explanation of the calculations performed by

18

the department in establishing the unadjusted or final adjusted

19

base amounts under this section for the ensuing calendar year.

20

(8)  No adjustment to the base amounts specified under

<--

21

sections 1901, 1902 and 1909 shall exceed three percent of the

22

most recently adjusted base amount.

23

(8)  The annual increase in the preliminary adjusted base

<--

24

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

25

three percent.

26

Section 4.  Section 1909 of the act, amended March 25, 1988

27

(P.L.289, No.32), is amended to read:

28

Section 1909.  Separate Bids for Plumbing, Heating,

29

Ventilating and Electrical Work, Elevators and Moving Stairs.--

30

In the preparation of specifications for the erection,

- 6 -

 


1

construction, and alteration of any public building, when the

2

entire cost of such work shall exceed [ten] [thousand] the base

3

amount of eighteen thousand five hundred dollars, subject to

4

adjustment under section one thousand nine hundred and three

5

point one of this act, the architect, engineer, or other person

6

preparing such specifications, shall prepare only the following

7

separate specifications; (1) plumbing, (2) heating, (3)

8

ventilating, (4) electrical work, (5) elevators and moving

9

stairs, and (6) one complete set of specifications for all the

10

other work to be done in such erection, construction and

11

alteration. The person or persons authorized to enter into

12

contracts for the erection, construction, or alteration of such

13

public buildings shall receive separate bids upon each of the

14

said branches of work, and award the contract for the same to

15

the lowest responsible bidder for each of said branches,

16

including the balance of the work in addition to the plumbing,

17

heating, ventilating and electrical work and elevators and

18

moving stairs. Where it is desired to install an air

19

conditioning unit, the heating and ventilating so involved may

20

be regarded as one branch of work having only one set of

21

specifications, and bids may be received and a contract awarded

22

thereon as hereinbefore provided.

23

Section 5.  This act shall apply to contracts and purchases

24

advertised on or after January 1 of the year following the

25

effective date of this section.

26

Section 6.  This act shall take effect immediately.

- 7 -