PRIOR PRINTER'S NO. 2496 PRINTER'S NO. 3241
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, PICKETT AND SATHER, JULY 3, 2005
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 6, 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) EIGHTEEN THOUSAND DOLLARS ($18,000), subject to <--
2 adjustment under subsection (b.1), except those specifically
3 excluded, shall not be made except with and from the lowest
4 responsible bidder after due notice in one newspaper of general
5 circulation in the township. The notice for bids shall be
6 published at least two times at intervals of not less than three
7 days in daily newspapers or once a week for two successive weeks
8 in weekly newspapers. The first advertisement shall be published
9 not more than forty-five days, and the second advertisement not
10 less than ten days, before the date set for the opening of bids.
11 Notice of proposed contracts or purchases shall also be posted
12 where the board of supervisors normally meets or in a
13 conspicuous place within the township. Any published notice for
14 bids shall contain full plans and specifications, or refer to
15 the places where copies thereof can be obtained, state the
16 amount of the performance bond determined under subsection (g)
17 and give the date, time and place of a meeting at which an
18 individual or committee appointed by the board of supervisors or
19 the board of supervisors will open and 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) SEVEN THOUSAND DOLLARS ($7,000), <--
24 subject to adjustment under subsection (b.1), but are less than
25 the amount requiring advertisement and competitive bidding, or,
26 in lieu of price quotations, a memorandum shall be kept on file
27 showing that fewer than three qualified contractors exist in the
28 market area within which it is practicable to obtain quotations.
29 A written record of telephonic price quotations shall be made
30 and shall contain at least the date of the quotation, the name
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1 of the 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 (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
13 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
14 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE PERCENTAGE
15 CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-
16 U) FOR THE UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED
17 BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
18 STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF
19 THE PRIOR YEAR.
20 (2) The amount at which competitive bidding is required
21 under subsection (a) and the amount at which written or
22 telephonic price quotations are required under subsection (b)
23 shall be adjusted annually as follows:
24 (i) In the case of competitive bidding, the positive
25 percentage change, as determined in accordance with paragraph
26 (1), shall be multiplied by the amount applicable under
27 subsection (a) for the current year and the product thereof
28 shall be added to the amount applicable under subsection (a) for
29 the current year, with the result rounded to the nearest
30 multiple of ten dollars ($10).
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1 (ii) In the case of written or telephonic price quotations,
2 the positive percentage change, as determined in accordance with
3 paragraph (1), shall be multiplied by the amount applicable
4 under subsection (b) for the current year and the product
5 thereof shall be added to the amount applicable under subsection
6 (b) for the current year, with the result rounded to the nearest
7 multiple of ten dollars ($10).
8 (3) The annual determination required under paragraph (1)
9 and the calculation of the adjustments required under paragraph
10 (2) shall be made in the period between October 1 and November
11 15 of the year following the effective date of this subsection,
12 and annually between October 1 and November 15 of each
13 successive year.
14 (4) The adjusted amounts obtained in accordance with
15 paragraph (2) shall become effective January 1 for the calendar
16 year following the year in which the determination required
17 under paragraph (1) is made.
18 (5) The department shall give notice in the Pennsylvania
19 Bulletin prior to January 1 of each calendar year of the annual
20 percentage change determined in accordance with paragraph (1)
21 and the amounts, whether adjusted or unadjusted in accordance
22 with paragraph (2), at which competitive bidding is required
23 under subsection (a) and written or telephonic price quotations
24 are required under subsection (b) for the calendar year
25 beginning the first day of January after publication of the
26 notice.
27 * * *
28 (h) The contracts or purchases made by the board of
29 supervisors involving payments in excess of the required
30 advertising amount, which do not require advertising, bidding or
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1 price quotations are as follows:
2 (1) Those made for emergency, or routine maintenance,
3 repairs or replacements for water, electric light and other
4 public works of the township if they do not constitute new
5 additions, extensions or enlargements of existing facilities and
6 equipment.
7 (2) Those made for improvements, repairs or maintenance of
8 any kind made or provided by any township through its own
9 employes. All contracts or purchases of materials used for
10 improvement, maintenance or construction [in excess of four
11 thousand dollars ($4,000) but less than the required advertising
12 amount] are subject to the provisions contained in subsection
13 (a) and (b)[, and those contracts or purchases in excess of the
14 required advertising amount are subject to the advertising
15 requirements contained in subsection (a)].
16 (3) Those involving any policies of insurance or surety
17 company bonds, those made for public utility service, those made
18 for electricity, natural gas or telecommunications service
19 either directly or with an association authorized under Article
20 XIV in which the township is a member and those made with
21 another municipal corporation, county, school district or
22 municipality authority or Federal or State Government, including
23 the sale, leasing or loan of any supplies or materials by the
24 Federal or State Government or their agencies.
25 (4) Those involving personal or professional services.
26 (5) Those made for materials and supplies or equipment
27 rental under emergency conditions under 35 Pa.C.S. Pt. V
28 (relating to emergency management services).
29 (6) Those contracts involving equipment rental with
30 operators if more than fifty percent of the total labor
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1 personnel hours required for the completion of the contract is
2 supplied by the township through its own employes.
3 (7) Those contracts for the purchase of repair parts or
4 materials for use in existing township equipment or facilities
5 if the item or material to be purchased is the sole item of its
6 kind on the market or is manufactured as a replacement for the
7 original item or equipment being repaired.
8 (8) Those for used equipment, articles, apparatus,
9 appliances, vehicles or parts thereof being purchased from a
10 public utility.
11 (9) Those where particular types, models or pieces of
12 equipment, articles, apparatus, appliances, vehicles or parts
13 thereof which are patented and manufactured products.
14 * * *
15 Section 2. The amendment or addition of section 3102(a),
16 (b), (b.1) and (h) of the act shall apply to contracts and
17 purchases advertised after December 31 of the year in which this
18 section takes effect.
19 Section 3. This act shall take effect immediately.
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