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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 813, 1658                PRINTER'S NO. 2224

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 749 Session of 1989


        INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
           PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
           MARCH 23, 1989

        AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 30, 1990

                                     AN ACT

     1  Amending the act of June 5, 1947 (P.L.458, No.208), entitled, as
     2     amended, "An act creating as bodies corporate and politic
     3     'Parking Authorities' in cities of the first, second, second
     4     A and third classes, boroughs, and townships of the first
     5     class; prescribing the rights, powers and duties of such
     6     authorities; authorizing such authorities to acquire,
     7     construct, improve, maintain and operate parking projects, to
     8     conduct research of the parking problem, to supervise,
     9     operate and administer an efficient coordinated system of on-
    10     street parking regulation where so authorized by municipal
    11     ordinance or resolution, to establish a permanent coordinated
    12     system of off-street parking facilities, and to borrow money
    13     and issue bonds for such facilities therefor; providing for
    14     the payment of such bonds and prescribing the rights of the
    15     holders thereof; conferring the right of eminent domain on
    16     such authorities; empowering such authorities to enter into
    17     contracts with, and to accept grants from, the Federal
    18     Government, State, political subdivisions of the State or any
    19     agency thereof; exempting the property and securities of such
    20     parking authorities from taxation and conferring exclusive
    21     jurisdiction on certain courts over rates for their
    22     facilities," increasing FURTHER PROVIDING FOR the maximum      <--
    23     amount for which an authority may contract or purchase
    24     without bids.

    25     The General Assembly of the Commonwealth of Pennsylvania
    26  hereby enacts as follows:
    27     Section 1.  Section 11 of the act of June 5, 1947 (P.L.458,


     1  No.208), known as the Parking Authority Law, amended or added
     2  October 4, 1978 (P.L.1029, No.229) and February 5, 1982 (P.L.15,
     3  No.7), is amended to read:
     4     Section 11.  Competition in Award of Contracts.--(a)  All
     5  construction, reconstruction, repairs or work of any nature made
     6  by any Authority, where the entire cost, value or amount of such
     7  construction, reconstruction, repairs or work including labor
     8  and materials, shall exceed [four thousand dollars ($4,000)] ten  <--
     9  thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE   <--
    10  AUTHORITY, except reconstruction, repairs or work done by
    11  employes of said Authority, or by labor supplied under agreement
    12  with any Federal or State agency with supplies and materials
    13  purchased as hereinafter provided, shall be done only under
    14  contract or contracts to be entered into by the Authority with
    15  the lowest responsible bidder, upon proper terms, after due
    16  public notice has been given, asking for competitive bids as
    17  hereinafter provided. No contract shall be entered into for
    18  construction or improvement or repair of any project, or portion
    19  thereof, unless the contractor shall give an undertaking with a
    20  sufficient surety or sureties, approved by the Authority, and in
    21  an amount fixed by the Authority for the faithful performance of
    22  the contract. All such contracts shall provide, among other
    23  things, that the person or corporation entering into such
    24  contract with the Authority will pay for all materials furnished
    25  and services rendered for the performance of the contract, and
    26  that any person or corporation furnishing such materials or
    27  rendering such services may maintain an action to recover for
    28  the same against the obligor in the undertaking, as though such
    29  person or corporation was named therein, provided the action is
    30  brought within one year after the time the cause of action
    19890S0749B2224                  - 2 -

     1  accrued. Nothing in this section shall be construed to limit the
     2  power of the Authority to construct, repair or improve any
     3  project or portion thereof, or any addition, betterment or
     4  extension thereto directed by the officers, agents and employes
     5  of the Authority or otherwise than by contract.
     6     (A.1)  THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE    <--
     7  BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM (1%) OF THE
     8  TOTAL OF ALL BUDGETS ADMINISTERED BY THE AUTHORITY, BUT IN NO
     9  CASE SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND
    10  DOLLARS ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS ($10,000).
    11     (b)  All supplies and materials [costing [four thousand        <--
    12  dollars ($4,000)] ten thousand dollars ($10,000) or more] WHICH   <--
    13  COST OR EXCEED THE MONETARY THRESHOLD LEVEL FOR THE AUTHORITY
    14  shall be purchased only after due advertisement as hereinafter
    15  provided. THE Authority shall accept the lowest bid or bids,      <--
    16  kind, quality and material being equal, but the Authority shall
    17  have the right to reject any or all bids or select a single item
    18  from any bid. The provisions as to bidding shall not apply to
    19  the purchase of patented and manufactured products offered for
    20  sale in a noncompetitive market, or solely by a manufacturer's
    21  authorized dealer.
    22     (B.1)  WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST    <--
    23  THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
    24  FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT
    25  ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
    26  BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
    27  KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
    28  EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
    29  OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
    30  QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
    19890S0749B2224                  - 3 -

     1  THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
     2  REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
     3  MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
     4  THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
     5  TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
     6  A PERIOD OF THREE YEARS.
     7     (c)  The terms, advertisement or due public notice, wherever
     8  used in this section shall mean a notice published at least ten
     9  (10) days before the award of any contract in a newspaper of
    10  general circulation published in the municipality where the
    11  Authority has its principal office, and if no newspaper is
    12  published therein, then by publication in a newspaper in the
    13  county where the Authority has its principal office.
    14     (d)  No member of the Authority or officer or employe thereof
    15  shall either directly or indirectly be a party to, or be in any
    16  manner interested in, any contract or agreement with the
    17  Authority for any matter, cause or thing whatsoever by reason
    18  whereof any liability or indebtedness shall in any way be
    19  created against such Authority. If any contract or agreement
    20  shall be made in violation of the provisions of this section the
    21  same shall be null and void and no action shall be maintained
    22  thereon against such Authority.
    23     (e)  Subject to the foregoing provisions any Authority may,
    24  but without intending by this provision to limit any powers of
    25  such Authority, enter into and carry out such contracts or
    26  establish or comply with such rules and regulations concerning
    27  labor and materials and other related matters in connection with
    28  any project or portion thereof as the Authority may deem
    29  desirable, or as may be requested by any Federal agency that may
    30  assist in the financing of such project or any part thereof:
    19890S0749B2224                  - 4 -

     1  Provided, however, That the provisions of this section shall not
     2  apply to any case in which the Authority has taken over by
     3  transfer or assignment any contract authorized to be assigned to
     4  it under the provisions of section sixteen of this act, nor to
     5  any contract in connection with the construction of any project
     6  which the Authority may have had transferred to it by any person
     7  or private corporation.
     8     (f)  Every contract for the construction, reconstruction,
     9  alteration, repair, improvement or maintenance of public works
    10  shall comply with the provisions of the act of March 3, 1978
    11  (P.L.6, No.3), known as the "Steel Products Procurement Act."
    12     (g)  An Authority shall not evade the provisions of this
    13  section as to bids or purchasing materials or contracting for
    14  services piece-meal, for the purpose of obtaining prices under
    15  ten thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR   <--
    16  THE AUTHORITY upon transactions which should in the exercise of
    17  reasonable discretion and prudence be conducted as one
    18  transaction amounting to more than ten thousand dollars           <--
    19  ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE AUTHORITY. This    <--
    20  provision is intended to make unlawful the practice of evading
    21  advertising requirements by making a series of purchases or
    22  contracts each for less than the advertising requirement price,
    23  or by making several simultaneous purchases or contracts each
    24  below said price, when in either case the transaction involved
    25  should have been made as one transaction for one price.
    26     Section 2.  This act shall take effect in 60 days.



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