PRINTER'S NO. 2496
No. 1854 Session of 2005
INTRODUCED BY KAUFFMAN, HERMAN, BIANCUCCI, LESCOVITZ, HANNA,
ROSS, GINGRICH, HICKERNELL, HARHAI, HARPER, T. STEVENSON,
HENNESSEY, M. KELLER, PETRI, O'NEILL, McNAUGHTON, WATSON,
CAPPELLI, DeWEESE, PHILLIPS, ARMSTRONG, DENLINGER, BALDWIN,
DALLY, BOYD, GEIST, HARRIS, R. MILLER, HERSHEY, SCAVELLO,
FRANKEL, McILHATTAN AND PICKETT, JULY 3, 2005
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JULY 3, 2005
AN ACT
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," further providing for
5 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:
15 Section 3102. Letting Contracts.--(a) All contracts or
16 purchases in excess of the required advertising amount of [ten
17 thousand dollars ($10,000)] twenty five thousand dollars
1 ($25,000), subject to adjustment under subsection (b.1), except
2 those specifically excluded, shall not be made except with and
3 from the lowest responsible bidder after due notice in one
4 newspaper of general circulation in the township. The notice for
5 bids shall be published at least two times at intervals of not
6 less than three days in daily newspapers or once a week for two
7 successive weeks in weekly newspapers. The first advertisement
8 shall be published not more than forty-five days, and the second
9 advertisement not less than ten days, before the date set for
10 the opening of bids. Notice of proposed contracts or purchases
11 shall also be posted where the board of supervisors normally
12 meets or in a conspicuous place within the township. Any
13 published notice for bids shall contain full plans and
14 specifications, or refer to the places where copies thereof can
15 be obtained, state the amount of the performance bond determined
16 under subsection (g) and give the date, time and place of a
17 meeting at which an individual or committee appointed by the
18 board of supervisors or the board of supervisors will open and
19 read the bids.
20 (b) Written or telephonic price quotations from at least
21 three qualified and responsible contractors shall be requested
22 for all contracts that exceed [four thousand dollars ($4,000)]
23 ten thousand dollars ($10,000), subject to adjustment under
24 subsection (b.1), but are less than the amount requiring
25 advertisement and competitive bidding, or, in lieu of price
26 quotations, a memorandum shall be kept on file showing that
27 fewer than three qualified contractors exist in the market area
28 within which it is practicable to obtain quotations. A written
29 record of telephonic price quotations shall be made and shall
30 contain at least the date of the quotation, the name of the
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1 contractor and the contractor's representative, the
2 construction, reconstruction, repair, maintenance or work which
3 was the subject of the quotation and the price. Written price
4 quotations, written records of telephonic price quotations and
5 memoranda shall be retained for a period of three years.
6 (b.1) Adjustments shall be made as follows:
7 (1) The Department of Labor and Industry shall determine the
8 percentage change in the Consumer Price Index for All Urban
9 Consumers for the twelve-month period ending September 30 of the
10 calendar year in which this subsection becomes effective, and
11 for each successive twelve-month period thereafter.
12 (2) The amount at which competitive bidding is required
13 under subsection (a) and the amount at which written or
14 telephonic price quotations are required under subsection (b)
15 shall be adjusted annually as follows:
16 (i) In the case of competitive bidding, the positive
17 percentage change, as determined in accordance with paragraph
18 (1), shall be multiplied by the amount applicable under
19 subsection (a) for the current year and the product thereof
20 shall be added to the amount applicable under subsection (a) for
21 the current year, with the result rounded to the nearest
22 multiple of ten dollars ($10).
23 (ii) In the case of written or telephonic price quotations,
24 the positive percentage change, as determined in accordance with
25 paragraph (1), shall be multiplied by the amount applicable
26 under subsection (b) for the current year and the product
27 thereof shall be added to the amount applicable under subsection
28 (b) for the current year, with the result rounded to the nearest
29 multiple of ten dollars ($10).
30 (3) The annual determination required under paragraph (1)
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1 and the calculation of the adjustments required under paragraph
2 (2) shall be made in the period between October 1 and November
3 15 of the year following the effective date of this subsection,
4 and annually between October 1 and November 15 of each
5 successive year.
6 (4) The adjusted amounts obtained in accordance with
7 paragraph (2) shall become effective January 1 for the calendar
8 year following the year in which the determination required
9 under paragraph (1) is made.
10 (5) The department shall give notice in the Pennsylvania
11 Bulletin prior to January 1 of each calendar year of the annual
12 percentage change determined in accordance with paragraph (1)
13 and the amounts, whether adjusted or unadjusted in accordance
14 with paragraph (2), at which competitive bidding is required
15 under subsection (a) and written or telephonic price quotations
16 are required under subsection (b) for the calendar year
17 beginning the first day of January after publication of the
18 notice.
19 * * *
20 (h) The contracts or purchases made by the board of
21 supervisors involving payments in excess of the required
22 advertising amount, which do not require advertising, bidding or
23 price quotations are as follows:
24 (1) Those made for emergency, or routine maintenance,
25 repairs or replacements for water, electric light and other
26 public works of the township if they do not constitute new
27 additions, extensions or enlargements of existing facilities and
28 equipment.
29 (2) Those made for improvements, repairs or maintenance of
30 any kind made or provided by any township through its own
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1 employes. All contracts or purchases of materials used for
2 improvement, maintenance or construction [in excess of four
3 thousand dollars ($4,000) but less than the required advertising
4 amount] are subject to the provisions contained in subsection
5 (a) and (b)[, and those contracts or purchases in excess of the
6 required advertising amount are subject to the advertising
7 requirements contained in subsection (a)].
8 (3) Those involving any policies of insurance or surety
9 company bonds, those made for public utility service, those made
10 for electricity, natural gas or telecommunications service
11 either directly or with an association authorized under Article
12 XIV in which the township is a member and those made with
13 another municipal corporation, county, school district or
14 municipality authority or Federal or State Government, including
15 the sale, leasing or loan of any supplies or materials by the
16 Federal or State Government or their agencies.
17 (4) Those involving personal or professional services.
18 (5) Those made for materials and supplies or equipment
19 rental under emergency conditions under 35 Pa.C.S. Pt. V
20 (relating to emergency management services).
21 (6) Those contracts involving equipment rental with
22 operators if more than fifty percent of the total labor
23 personnel hours required for the completion of the contract is
24 supplied by the township through its own employes.
25 (7) Those contracts for the purchase of repair parts or
26 materials for use in existing township equipment or facilities
27 if the item or material to be purchased is the sole item of its
28 kind on the market or is manufactured as a replacement for the
29 original item or equipment being repaired.
30 (8) Those for used equipment, articles, apparatus,
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1 appliances, vehicles or parts thereof being purchased from a
2 public utility.
3 (9) Those where particular types, models or pieces of
4 equipment, articles, apparatus, appliances, vehicles or parts
5 thereof which are patented and manufactured products.
6 * * *
7 Section 2. The amendment or addition of section 3102(a),
8 (b), (b.1) and (h) of the act shall apply to contracts and
9 purchases advertised after December 31 of the year in which this
10 section takes effect.
11 Section 3. This act shall take effect immediately.
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