PRIOR PRINTER'S NO. 2498 PRINTER'S NO. 3243
No. 1856 Session of 2005
INTRODUCED BY HARHAI, HERMAN, LESCOVITZ, BIANCUCCI, HANNA, ROSS,
GINGRICH, HICKERNELL, HARPER, KAUFFMAN, T. STEVENSON,
HENNESSEY, M. KELLER, PETRI, McNAUGHTON, ARMSTRONG, BALDWIN,
BOYD, CAPPELLI, DALLY, DENLINGER, DeWEESE, FRANKEL, GEIST,
HARRIS, HERSHEY, McILHATTAN, PHILLIPS, SCAVELLO AND WATSON,
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 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,
12 No.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
1 purchases not in excess of [ten] twenty-five EIGHTEEN thousand <--
2 dollars, subject to annual adjustment under section one thousand
3 nine hundred and three of this act, shall be by note or
4 memorandum in writing, signed by the officer or employe making
5 the purchase or contract.
6 (b) All services and personal properties required by any
7 city, or any department thereof, where the amount exceeds the
8 sum of [ten] twenty-five EIGHTEEN thousand dollars, subject to <--
9 annual adjustment under section one thousand nine hundred and
10 three of this act, shall be furnished and performed under
11 written contract, and the contract shall be awarded and given to
12 the lowest responsible bidder, after advertising two times, each
13 publication on a different day, in not more than two newspapers,
14 in accord with the provisions of section one hundred and nine of
15 this act, and the bids shall not be opened until at least ten
16 days have elapsed after the first advertisement. A notice of the
17 advertisement for contracts or purchases shall also be posted at
18 the city hall.
19 * * *
20 (d) The contracts or purchases made by council involving an
21 expenditure of over [ten] twenty-five EIGHTEEN thousand dollars, <--
22 subject to annual adjustment under section one thousand nine
23 hundred and three of this act, which shall not require
24 advertising or bidding, as 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
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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] twenty-five EIGHTEEN <--
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1 thousand dollars, subject to annual adjustment under section one
2 thousand nine hundred and three of this act, upon transactions
3 which should, in the exercise of reasonable discretion and
4 prudence, be conducted as one transaction amounting to more than
5 [ten] twenty-five EIGHTEEN thousand dollars, subject to annual <--
6 adjustment under section one thousand nine hundred and three of
7 this act. This provision is intended to make unlawful the
8 practice of evading advertising requirements by making a series
9 of purchases or contracts, each for less than the advertising
10 requirement price, or by making several simultaneous purchases
11 or contracts, each below said price, when, in either case, the
12 transactions involved should have been made as one transaction
13 for one price. Any members of council who so vote in violation
14 of this provision and who know that the transaction upon which
15 they so vote is or ought to be a part of a larger transaction
16 and that it is being divided in order to evade the requirements
17 as to advertising for bids, shall be jointly and severally
18 subject to surcharge for ten per centum of the full amount of
19 the contract or purchase. Wherever it shall appear that a member
20 of council may have voted in violation of this section but the
21 purchase or contract on which he so voted was not approved by
22 council, this section shall be inapplicable.
23 Section 3. The act is amended by adding a section to read:
24 Section 1903.1. Adjustments Based on Consumer Price Index
25 for All Urban Consumers.--(a) The Department of Labor and <--
26 Industry shall determine the percentage change in the Consumer
27 Price Index for All Urban Consumers for the twelve-month period
28 ending September 30 of the calendar year in which this section
29 becomes effective, and for each successive twelve-month period
30 thereafter. ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
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1 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
2 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE PERCENTAGE
3 CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-
4 U) FOR THE UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED
5 BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
6 STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF
7 THE PRIOR YEAR.
8 (b) The amounts at which competitive bidding and separate
9 bids are required under this act shall be adjusted annually. The
10 positive percentage change, as determined in accordance with
11 subsection (a), shall be multiplied by the applicable amount for
12 the current year and the product thereof shall be added to the
13 applicable amount for the current year, with the result rounded
14 to the nearest multiple of ten dollars.
15 (c) The annual determination required under subsection (a)
16 and the calculation of the adjustments required under subsection
17 (b) shall be made in the period between October 1 and November
18 15 of the year following the effective date of this section, and
19 annually between October 1 and November 15 of each successive
20 year.
21 (d) The adjusted amounts obtained in accordance with
22 subsection (b) shall become effective January 1 for the calendar
23 year following the year in which the determination required
24 under subsection (a) is made.
25 (e) The Department of Labor and Industry shall give notice
26 in the Pennsylvania Bulletin prior to January 1 of each calendar
27 year of the annual percentage change determined in accordance
28 with subsection (a) and the amounts, whether adjusted or
29 unadjusted in accordance with subsection (b), at which
30 competitive bidding, advertising and separate bids are required
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1 under this act for the calendar year beginning the first day of
2 January after publication of the notice.
3 Section 4. Section 1909 of the act, amended March 25, 1988
4 (P.L.289, No.32), is amended to read:
5 Section 1909. Separate Bids for Plumbing, Heating,
6 Ventilating and Electrical Work, Elevators and Moving Stairs.--
7 In the preparation of specifications for the erection,
8 construction, and alteration of any public building, when the
9 entire cost of such work shall exceed [ten] twenty-five EIGHTEEN <--
10 thousand dollars, subject to annual adjustment under section one
11 thousand nine hundred and three of this act, the architect,
12 engineer, or other person preparing such specifications, shall
13 prepare only the following separate specifications; (1)
14 plumbing, (2) heating, (3) ventilating, (4) electrical work, (5)
15 elevators and moving stairs, and (6) one complete set of
16 specifications for all the other work to be done in such
17 erection, construction and alteration. The person or persons
18 authorized to enter into contracts for the erection,
19 construction, or alteration of such public buildings shall
20 receive separate bids upon each of the said branches of work,
21 and award the contract for the same to the lowest responsible
22 bidder for each of said branches, including the balance of the
23 work in addition to the plumbing, heating, ventilating and
24 electrical work and elevators and moving stairs. Where it is
25 desired to install an air conditioning unit, the heating and
26 ventilating so involved may be regarded as one branch of work
27 having only one set of specifications, and bids may be received
28 and a contract awarded thereon as hereinbefore provided.
29 Section 5. This act shall apply to contracts and purchases
30 advertised on or after January 1 of the year following the
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1 effective date of this section.
2 Section 6. This act shall take effect immediately.
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