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PENNSYLVANIA STATUTES
TITLE 53. MUNICIPAL AND QUASI-MUNICIPAL CORPORATIONS
PART V. CITIES OF THE THIRD CLASS
CHAPTER 81. THIRD CLASS CITY CODE
ARTICLE XIX. CONTRACTS
Date:
08/31/2009
Document:
NOTICE: As to repeal of this section where inconsistent with Act 1990, Dec. 19, P.L. 1343, No. 209, see § 2 of said act.
§ 36901. Power to make contracts; regulations concerning contracts
(a) Each city may make contracts for carrying into execution the provisions of this act and the laws of the Commonwealth. The council shall, by ordinance, provide for and regulate the award of all contracts. All contracts or purchases not in excess of ten thousand dollars shall be by note or memorandum in writing, signed by the officer or employe making the purchase or contract.
(b) All services and personal properties required by any city, or any department thereof, where the amount exceeds the sum of ten thousand dollars, shall be furnished and performed under written contract, and the contract shall be awarded and given to the lowest responsible bidder, after advertising two times, each publication on a different day, in not more than two newspapers, in accord with the provisions of section one hundred and nine of this act, and the bids shall not be opened until at least ten days have elapsed after the first advertisement. A notice of the advertisement for contracts or purchases shall also be posted at the city hall.
(c) The amount of the contract shall in all cases, whether of straight sale price, conditional sale, bailment lease, or otherwise, be the entire amount which the city pays to the successful bidder or his assigns in order to obtain the services or property or both, and shall not be construed to mean only the amount which is paid to acquire title or to receive any other particular benefit or benefits of the whole bargain.
(d) The contracts or purchases made by council involving an expenditure of over ten thousand dollars, which shall not require advertising or bidding, as hereinbefore provided are as follows:
(1) Those for maintenance, repairs or replacements for water, electric light or other public works of the city, provided they do not constitute new additions, extensions or enlargements of existing facilities and equipment, but a bond may be required by council as in other cases of work done.
(2) Those made for improvements, repairs and maintenance of any kind made or provided by any city through its own employes: Provided, however, That this shall not apply to construction materials used in a street improvement.
(3) Those where particular types, models or pieces of new equipment, articles, apparatus, appliances, vehicles, or parts thereof, are desired by council, which are patented and manufactured or copyrighted products.
(4) Those involving any policies of insurance or surety company bonds; those made for public utility service under tariffs on file with the Pennsylvania Public Utility Commission; those made with another political subdivision or a county, the Commonwealth of Pennsylvania, the Federal government, any agency of the Commonwealth or the Federal government, or any municipal authority, including the sale, leasing or loan of any supplies or materials by the Commonwealth or the Federal government, or their agencies, but the price thereof shall not be in excess of that fixed by the Commonwealth, the Federal government, or their agencies.
(5) Those involving personal or professional services.
(6) Those made during a state of emergency declared by the mayor or chief executive in accord with section one thousand two hundred and three of this act.
(e) The acceptance of bids by advertising required herein shall be made by public announcement at the meeting at which bids are received by council or at a subsequent meeting, the time and place of which shall be publicly announced when bids are so received. If, for any reason, the award is not made at either of the above meetings, the same business may be transacted at a subsequent meeting, the time and place of which shall be announced at the previous meeting held for such award. At such third meeting, the council shall either award the contract or shall reject all bids.
(f) Council may require that any bids so advertised be accompanied by cash, by a certified or cashier's good faith check or other irrevocable letter of credit in a reasonable amount, or by a bond with corporate surety in a reasonable amount. Whenever it is required that a bid be accompanied by cash, certified check, cashier's good faith check or other irrevocable letter of credit, no bid shall be considered unless so accompanied. In the event any bidder shall, upon award of the contract to him, fail to comply with the requirements hereinafter stated as to a bond guaranteeing the performance of the contract the good faith deposit by cash, certified check, or bond, shall be forfeited to the city as liquidated damages.
(g) Where advertising is required herein, the successful bidder shall be required to furnish a bond or irrevocable letter of credit in an amount sufficient to council with suitable reasonable requirements guaranteeing the performance of the contract within twenty days after the contract has been awarded, unless council prescribes a shorter period of not less than ten days, and failure to furnish such security within such time shall void the award. The provisions of this subsection requiring successful bidders to furnish security shall not be mandatory as to contracts for the purchase of motor vehicles or other pieces of equipment but only as to those contracts which involve furnishing of labor and materials. Council may in all cases of contracts or purchases require security for performance, delivery, or other terms.
(h) Where the roadway of a street is to be paved originally and for the first time, or reconstructed by putting down a new base, or a sewer is to be constructed, or grading done, such work shall be done under written contract, after advertising as provided in section one hundred and nine of this act, and such contract shall be given to the lowest responsible bidder.
(i) The council may, by ordinance, provide for and regulate the purchase of supplies and materials and the sale of personal property.
(j) The council may also, by ordinance, provide a contingent fund or funds for necessary repairs and incidental expenses, not otherwise provided in the general appropriations, and such funds may be expended without advertising for bids.
(k) Every contract for the construction, reconstruction, alteration, repair, improvement or maintenance of public works shall comply with the provisions of the act of March 3, 1978 (No. 3), known as the "Steel Products Procurement Act."
(l) No person, consultant, firm or corporation contracting with a city for purposes of rendering personal or professional services to the city shall share with any city officer or employe, and no city officer or employe shall accept, any portion of the compensation or fees paid by the city for the contracted services provided to the city except under the following terms or conditions:
(1) Full disclosure of all relevant information regarding the sharing
of the compensation or fees shall be made to the council of the city.
(2) The council of the city must approve the sharing of any fee or
compensation for personal or professional services prior to the
performance of said services.
(3) No fee or compensation for personal or professional services may be
shared except for work actually performed.
(4) No shared fee or compensation for personal or professional services
may be paid at a rate in excess of that commensurate for similar
personal or professional services.
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