THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BAKER, EICHELBERGER, MUSTO, SCARNATI, PILEGGI, STOUT, FOLMER, ORIE, SMUCKER, BROWNE, WAUGH, PICCOLA, BRUBAKER, CORMAN, ROBBINS, FERLO, KASUNIC, EARLL, GORDNER, RAFFERTY, ERICKSON, WONDERLING, M. WHITE, GREENLEAF, PIPPY, ALLOWAY, BOSCOLA AND O'PAKE, FEBRUARY 20, 2009

REFERRED TO LOCAL GOVERNMENT, FEBRUARY 20, 2009  

AN ACT

Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as

reenacted and amended, "An act concerning townships of the

second class; and amending, revising, consolidating and

changing the law relating thereto," further providing for

competitive bidding of contracts.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3102(a), (b) and (h) of the act of May 1,

1933 (P.L.103, No.69), known as The Second Class Township Code,

reenacted and amended November 9, 1995 (P.L.350, No.60), and

amended December 18, 1996 (P.L.1142, No.172), December 19, 1996

(P.L.1412, No.181) and October 11, 2000 (P.L.535, No.70), are

amended and the section is amended by adding a subsection to

read:

Section 3102.  Letting Contracts.--(a)  All contracts or

purchases in excess of the required advertising amount of [ten

thousand dollars ($10,000)] twenty-five thousand dollars

($25,000), subject to adjustment under subsection (b.1), except

those specifically excluded, shall not be made except with and

from the lowest responsible bidder after due notice in one

newspaper of general circulation in the township. The notice for

bids shall be published at least two times at intervals of not

less than three days in daily newspapers or once a week for two

successive weeks in weekly newspapers. The first advertisement

shall be published not more than forty-five days, and the second

advertisement not less than ten days, before the date set for

the opening of bids. Notice of proposed contracts or purchases

shall also be posted where the board of supervisors normally

meets or in a conspicuous place within the township. Any

published notice for bids shall contain full plans and

specifications, or refer to the places where copies thereof can

be obtained, state the amount of the performance bond determined

under subsection (g) and give the date, time and place of a

meeting at which an individual or committee appointed by the

board of supervisors or the board of supervisors will open and

read the bids.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts that exceed [four thousand dollars ($4,000)]

seven thousand dollars ($7,000), subject to adjustment under

subsection (b.1), but are less than the amount requiring

advertisement and competitive bidding, or, in lieu of price

quotations, a memorandum shall be kept on file showing that

fewer than three qualified contractors exist in the market area

within which it is practicable to obtain quotations. A written

record of telephonic price quotations shall be made and shall

contain at least the date of the quotation, the name of the

contractor and the contractor's representative, the

construction, reconstruction, repair, maintenance or work which

was the subject of the quotation and the price. Written price

quotations, written records of telephonic price quotations and

memoranda shall be retained for a period of three years.

(b.1)  Adjustments shall be made as follows:

(1)  Annually, beginning with the year in which this

subsection becomes applicable to contracts and purchases, the

Department of Labor and Industry shall calculate the percentage

change in the Consumer Price Index for All Urban Consumers (CPI-

U) for the United States city average for all items as published

by the United States Department of Labor, Bureau of Labor

Statistics, for the twelve-month average ending in September of

the prior year.

(2)  The amount at which competitive bidding is required

under subsection (a) and the amount at which written or

telephonic price quotations are required under subsection (b)

shall be adjusted annually as follows:

(i)  In the case of competitive bidding, the positive

percentage change, as determined in accordance with paragraph

(1), shall be multiplied by the amount applicable under

subsection (a) for the current year and the product thereof

shall be added to the amount applicable under subsection (a) for

the current year, with the result rounded to the nearest

multiple of ten dollars ($10).

(ii)  In the case of written or telephonic price quotations,

the positive percentage change, as determined in accordance with

paragraph (1), shall be multiplied by the amount applicable

under subsection (b) for the current year and the product

thereof shall be added to the amount applicable under subsection

(b) for the current year, with the result rounded to the nearest

multiple of ten dollars ($10).

(3)  The annual determination required under paragraph (1)

and the calculation of the adjustments required under paragraph

(2) shall be made in the period between October 1 and November

15 of the year following the effective date of this subsection,

and annually between October 1 and November 15 of each

successive year.

(4)  The adjusted amounts obtained in accordance with

paragraph (2) shall become effective January 1 for the calendar

year following the year in which the determination required

under paragraph (1) is made.

(5)  The department shall give notice in the Pennsylvania

Bulletin prior to January 1 of each calendar year of the annual

percentage change determined in accordance with paragraph (1)

and the amounts, whether adjusted or unadjusted in accordance

with paragraph (2), at which competitive bidding is required

under subsection (a) and written or telephonic price quotations

are required under subsection (b) for the calendar year

beginning the first day of January after publication of the

notice.

* * *

(h)  The contracts or purchases made by the board of

supervisors involving payments in excess of the required

advertising amount, which do not require advertising, bidding or

price quotations are as follows:

(1)  Those made for emergency, or routine maintenance,

repairs or replacements for water, electric light and other

public works of the township if they do not constitute new

additions, extensions or enlargements of existing facilities and

equipment.

(2)  Those made for improvements, repairs or maintenance of

any kind made or provided by any township through its own

employes. All contracts or purchases of materials used for

improvement, maintenance or construction [in excess of four

thousand dollars ($4,000) but less than the required advertising

amount] are subject to the provisions contained in subsection

(a) and (b)[, and those contracts or purchases in excess of the

required advertising amount are subject to the advertising

requirements contained in subsection (a)].

(3)  Those involving any policies of insurance or surety

company bonds, those made for public utility service, those made

for electricity, natural gas or telecommunications service

either directly or with an association authorized under Article

XIV in which the township is a member and those made with

another municipal corporation, county, school district or

municipality authority or Federal or State Government, including

the sale, leasing or loan of any supplies or materials by the

Federal or State Government or their agencies.

(4)  Those involving personal or professional services.

(5)  Those made for materials and supplies or equipment

rental under emergency conditions under 35 Pa.C.S. Pt. V 

(relating to emergency management services).

(6)  Those contracts involving equipment rental with

operators if more than fifty percent of the total labor

personnel hours required for the completion of the contract is

supplied by the township through its own employes.

(7)  Those contracts for the purchase of repair parts or

materials for use in existing township equipment or facilities

if the item or material to be purchased is the sole item of its

kind on the market or is manufactured as a replacement for the

original item or equipment being repaired.

(8)  Those for used equipment, articles, apparatus,

appliances, vehicles or parts thereof being purchased from a

public utility.

(9)  Those where particular types, models or pieces of

equipment, articles, apparatus, appliances, vehicles or parts

thereof which are patented and manufactured products.

* * *

Section 2.  The amendment or addition of section 3102(a),

(b), (b.1) and (h) of the act shall apply to contracts and

purchases advertised after December 31 of the year in which this

section takes effect.

Section 3.  This act shall take effect immediately.