The Council shall establish a classification of accounts or
funds to be used in all financial plans, budgets and reports, consistent
with all applicable laws and sound financial administration.
The Director of Finance, together with the Municipal Administrator,
shall have the authority to invest, redeem and reinvest funds available
but not immediately required for municipal operations, within the
limits of programs approved by the Council. Such investment shall
be limited to authorized investments for municipal funds as set forth
in the applicable provisions of general law. It shall be the responsibility
of the Director of Finance, together with the Municipal Administrator,
to maximize investment revenues consistent with applicable laws and
minimum investment risks.
The Municipal Administrator, where funds are available, shall
have the power to make contracts for purchases pursuant to the thresholds
in this article and employment of personnel and make expenditures
pursuant to the authorization for such expenditures in the current
fiscal budget and this Administrative Code. No obligation shall be
made or incurred until such time as the Director of Finance shall
certify to the Municipal Administrator that sufficient unencumbered
funds are available for expenditures as authorized by the budget.
A. Contracts in excess of $21,000.
(1) Except as hereinafter mentioned, all contracts for purchases and/or
expenditures in excess of $21,000 shall be made to the lowest responsible
bidder after due advertising. All such bids shall be advertised in
one newspaper of general circulation in the Municipality at least
two times, at intervals of not less than three days. The first advertisement
shall be published no more than 45 days and the second advertisement
not less than 10 days prior to the date fixed for the opening of bids.
Advertisements for contracts or purchases shall also be posted in
a conspicuous place within the Municipality. Advertisements for contracts
or purchases shall contain the date, time and location for opening
of bids and shall state the amount of the performance bond required
to be posted with the Municipality.
(2) All bids shall be opened at a time and place as the Municipal Administrator
may designate. Such bid opening shall be open to the public and shall
be attended by at least two of the following named Municipal officials:
the Municipal Administrator, the Director of Finance, or a Municipal
department head or their designees. If for some reason the bids are
not opened at the scheduled meeting, the time, date and place for
the subsequent opening of bids shall be announced at the time of the
originally scheduled bid opening.
(3) If the bid prices received are within the budget authorization, the
Municipal Administrator may recommend Council award the contract to
the lowest responsible bidder or, in his/her sole discretion, may
reject all bids. In making a recommendation to Council to award contracts,
the Municipal Administrator may take into consideration such factors
as availability, cost and quality of the product/service. If the bid
prices are in excess of the amounts authorized by the Council in the
budget, the contract shall not be awarded, and the Municipal Administrator
shall seek the advice of the Council on how to proceed with the bid.
(4) A bid performance bond or certified check guaranteeing performance,
in the amount of 10% of the bid, must be submitted with all bids for
contracts. The successful bidder shall be required to furnish a bid
performance bond with suitable security in the amount of 50% of the
contract to guarantee the work to be done on the contract. The successful
bidder shall be required to post such other bonds, security, proof
of financial responsibility or other guarantees as the Municipal Administrator
deems appropriate to the performance of the contract. In exceptional
circumstances, the Municipal Administrator, for good cause shown,
may waive the bid bond or performance bond required set forth in this
section.
(5) Contracts not requiring advertising or bidding.
(a)
Contracts involving expenditures of over $21,000 which shall
not require advertising or bidding are as follows:
[1]
Contracts for labor or services rendered by any person in his/her
capacity as an officer or employee of the Municipality.
[2]
Contracts relating to the acquisition of real property.
[3]
Contracts for professional or unique services or supplies.
[4]
Contracts for particular types, models or pieces of equipment
which are patented or copyrighted products which the Municipal Administrator,
with the consent of Council, deem necessary.
[5]
Contracts for emergency repair of public works of the Municipality.
[6]
Contracts with other government entities, authorities, agencies,
or political subdivisions.
[7]
Contracts for purchase/materials and other expenditures where
prices and/or bids are obtained through state-approved agencies and
procedures.
(b)
In making contracts of the above nature, the Municipal Administrator
shall use due diligence and proper management effort to obtain the
necessary product/service for a reasonable price.
(6) All contracts in excess of $21,000 shall be in writing and shall
be awarded by the Municipal Council, and the contract document shall
be executed by the Municipal Administrator.
(7) All contract change orders exceeding 15% of the contract price must
be approved by the Municipal Council and executed by the Municipal
Administrator. No person shall use multiple change orders to evade
change order limitations.
B. For a contract equal to or less than $21,000, the Municipal Administrator
or his or her designee shall request written or telephone price quotations
from at least three qualified and responsible contractors for all
contracts that exceed $11,300, but are not more than $21,000. 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
telephone 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 is subject to quotation and the price. Written price
quotations, written records of telephonic price quotations and memoranda
shall be retained by the Municipality for a period of three years.
The Municipal Administrator shall establish a purchasing policy and
procedures which provides for rules and regulations for the acquisition
of goods, services and other contracts required by all departments
of the Municipality.
C. Interest in contracts. Except as provided in the Home Rule Charter
and herein, no Municipal official or employee shall be interested,
directly or indirectly, in any purchase or contract made by the Municipality
relating to the business of the Municipality.
D. No person, consultant, firm or corporation contracting with the Municipality
for the purposes of rendering personal or professional services entering
into contracts with the Municipality or involved in any financial
transaction with the Municipality shall share with any Municipal official
or employee any portion of the compensation or fees paid by the Municipality
pursuant with any Municipal contract with the person, consultant,
firm or corporation contracting with the Municipality.
E. Public capital improvement contracts. All contracts for construction
of public capital improvements shall first be authorized by the Municipal
Council by ordinance.
F. This section shall be deemed automatically amended at any time that
the Commonwealth of Pennsylvania bidding requirements are amended
under Act of Nov. 3, 2011 P.L. 367, No. 90, after the effective date
of this section, and the contract thresholds set forth in the Pennsylvania
Department of Labor and Industry Bulletin shall be deemed the amounts
controlling the enforcement of this section.
The accounts of the Municipality shall be audited annually by
an independent auditor who shall be a certified public accountant
registered in Pennsylvania or a firm of certified public accountants
so registered. The independent auditor shall be appointed annually
by resolution in accordance with Section 716 of the Home Rule Charter.
Said auditor shall make an independent examination of all the accounts
and related accounting records of the Municipality for the fiscal
year then closing. Such independent auditor shall have and possess
all the powers and perform all the duties provided under the provisions
of general law. The compensation of such appointed independent auditor
shall be fixed by the Council in the budget.
To the extent that they are not inconsistent with the applicable
provisions of the Home Rule Charter, this Administrative Code or general
law, Council may, from time to time, adopt or amend by resolution
financial policies which shall be followed in the administration of
the fiscal affairs of the Municipality.