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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 813, 1658, 2224          PRINTER'S NO. 2375

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 AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 26, 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; AND PROVIDING A PENALTY.                         <--

    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 TEN THOUSAND DOLLARS ($10,000), except reconstruction,  <--
    11  repairs or work done by employes of said Authority, or by labor
    12  supplied under agreement with any Federal or State agency with
    13  supplies and materials purchased as hereinafter provided, shall
    14  be done only under contract or contracts to be entered into by
    15  the Authority with the lowest responsible bidder, upon proper
    16  terms, after due public notice has been given, asking for
    17  competitive bids as hereinafter provided. No contract shall be
    18  entered into for construction or improvement or repair of any
    19  project, or portion thereof, unless the contractor shall give an
    20  undertaking with a sufficient surety or sureties, approved by
    21  the Authority, and in an amount fixed by the Authority for the
    22  faithful performance of the contract. All such contracts shall
    23  provide, among other things, that the person or corporation
    24  entering into such contract with the Authority will pay for all
    25  materials furnished and services rendered for the performance of
    26  the contract, and that any person or corporation furnishing such
    27  materials or rendering such services may maintain an action to
    28  recover for the same against the obligor in the undertaking, as
    29  though such person or corporation was named therein, provided
    30  the action is brought within one year after the time the cause
    19890S0749B2375                  - 2 -

     1  of action accrued. Nothing in this section shall be construed to
     2  limit the power of the Authority to construct, repair or improve
     3  any 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)] TEN THOUSAND    <--
    13  DOLLARS ($10,000) or more] WHICH COST OR EXCEED THE MONETARY      <--
    14  THRESHOLD LEVEL FOR THE AUTHORITY shall be purchased only after
    15  due advertisement as hereinafter provided. THE Authority shall    <--
    16  accept the lowest bid or bids, kind, quality and material being
    17  equal, but the Authority shall have the right to reject any or
    18  all bids or select a single item from any bid. The provisions as
    19  to bidding shall not apply to the purchase of patented and
    20  manufactured products offered for sale in a noncompetitive
    21  market, or solely by a manufacturer's 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
    19890S0749B2375                  - 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:
    19890S0749B2375                  - 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 TEN THOUSAND DOLLARS ($10,000) upon transactions    <--
    17  which should in the exercise of reasonable discretion and
    18  prudence be conducted as one transaction amounting to more than
    19  ten thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR   <--
    20  THE AUTHORITY TEN THOUSAND DOLLARS ($10,000). This provision is   <--
    21  intended to make unlawful the practice of evading advertising
    22  requirements by making a series of purchases or contracts each
    23  for less than the advertising requirement price, or by making
    24  several simultaneous purchases or contracts each below said
    25  price, when in either case the transaction involved should have
    26  been made as one transaction for one price.
    27     (H)  ANY AUTHORITY MEMBER WHO VOTES TO UNLAWFULLY EVADE THE    <--
    28  PROVISIONS OF THIS SECTION AND WHO KNOWS THAT THE TRANSACTION
    29  UPON WHICH HE SO VOTES IS OR OUGHT TO BE A PART OF A LARGER
    30  TRANSACTION AND THAT IT IS BEING DIVIDED IN ORDER TO EVADE THE
    19890S0749B2375                  - 5 -

     1  REQUIREMENTS AS TO ADVERTISING FOR BIDS, COMMITS A MISDEMEANOR
     2  OF THE THIRD DEGREE FOR EACH CONTRACT ENTERED INTO AS A DIRECT
     3  RESULT OF THAT VOTE.
     4     Section 2.  This act shall take effect in 60 days.


















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