[Amended 2-11-2019 by Ord. No. 800]
The Director of Finance shall be responsible for all functions of financial management in accordance with the Charter, Article IV, this chapter and other ordinances and resolutions of Council not inconsistent therewith, and as may be required by general law. Responsibilities and reasonable assignment of additional required tasks shall be established by the Township Manager annually through the performance review process.
[Amended 2-11-2019 by Ord. No. 800]
The duties of the Director of Finance shall
include, but not be limited to, the following:
A.
Maintain accounting and related records in the form
required by Council and general law.
B.
Prepare the annual budgets and financial programs
of the Township in the form required by Council and general law.
C.
Provide for the proper recording of all financial
transactions and related activities of the Township and be responsible
for the preservation of financial records.
D.
Serve as purchasing officer of the Township and certify
the availability of funds on all contracts, and approve no contract
or expenditure which would exceed the unencumbered balance of appropriations
in any account on which expenditure controls are maintained.
E.
Authorize disbursement of Township moneys only when
it has been determined that goods and services to be paid for have
been properly received or performed, and countersign all orders of
disbursement.
F.
Receive, give receipt for, and deposit to the proper
funds and accounts of the Township all moneys due and paid to the
Township.
G.
Prepare periodic financial reports, at least monthly,
which will show receipts by major sources and expenditures and encumbrances
by major objects of expense for each department and operating unit
of the Township government. Such reports still show such receipts,
expenditures and encumbrances, in relation to the budgeted estimates
and appropriations, as originally enacted and as amended to date,
and in relation to a pro rata distribution for the year-to-date on
a basis of estimated cash flow.
H.
Provide, in conjunction with monthly financial reports,
a statement of cash flow on a monthly basis through the month currently
ended and as projected for the succeeding three months.
I.
Monitor Township revenues and expenditures in relation
to budget estimates and recommend to Council supplementary appropriations
or reductions of appropriations when it appears that actual circumstances
permit or require modifications of appropriations to maintain a balanced
budget and adequate appropriations to the appropriate accounts to
meet anticipated expenditures and changes in program.
J.
Perform such other duties as may be required by the
Charter, this chapter or other ordinance, by law, or as may be directed
by Council.
The Township Manager shall provide for the delegation
of specific functions and duties to such subordinate personnel as
are authorized by Council, in such manner as to make the most efficient
use of personnel and other resources available and in a manner which
delegates to different personnel or units functions of financial management
which should be separated in maintaining sound financial controls
and good principles of management. Detailed operating procedures,
consistent with the Charter, this chapter or other ordinance, and
general law, shall be provided in the departmental regulations.
The fiscal year of the Township shall be the
calendar year.
The classification of accounts used in the Township
accounting system shall be in accordance with the principles and in
reasonable conformity to the classification in the Accounting Manual
prepared and provided by the Pennsylvania Department of Community
and Economic Development in order to facilitate the preparation of
annual budgets and financial reports in the form required by law.
Such classification shall be followed in all monthly, quarterly and
annual reports prepared for Council, with such supplemental details
as Council may require.
A.
All appropriations in the annual budget as originally
adopted and amended shall be made and controlled in lump sum amounts
according to the following objects of expenditure for each department,
major operating unit, office, board or commission of the Township:
B.
The annual budget and financial reports shall document
the estimated and actual expenditures of the detailed items composing
the major object classifications above, but appropriations shall be
made and controlled by the major objects. The Township Manager and
Director of Finance shall maintain administrative controls over the
detailed items within the major objects but shall recommend to Council
formal amendment of the budget when such is necessary to authorize
an increase or decrease in any of the major objects for any department,
major operating unit, office, board or commission of the Township.
C.
All appropriations shall lapse at the end of the fiscal
year, but sufficient appropriation shall be provided in the budget
for the following year to provide for the completion of or payment
for projects and encumbrances carried over to the following fiscal
year.
The annual budget and capital program of the Township shall be prepared, advertised, adopted and executed in conformance with the Charter, Article IV, which is self-executing except for the supplemental details provided in §§ 4-40 and 4-41 above. The Township Manager shall provide, in the departmental regulations for the Department of Administration and Finance, the detailed procedures, assignments of duties and forms to be used in budget preparation and execution.
The Director of Finance shall establish and
maintain a system for accounting for encumbrances. The monthly financial
reports of the Township shall show the encumbrances as well as expenditures
charged against appropriations, and the unencumbered as well as the
unexpended balances. All encumbrances will be closed out at the end
of the fiscal year, sufficient amounts appropriated to the proper
accounts in the budget of the succeeding year to cover encumbrances
carried over, and the encumbrances to the appropriate appropriations
shall be set up when opening the books for the succeeding fiscal year.
The Director of Finance shall be responsible,
directly or through such subordinate employees as may be specified
in the departmental regulations, for receipt of all moneys received
by the Township. Such receipts shall be deposited promptly to the
credit of the appropriate fund of the Township in such depositories
as shall be designated by Council. Council shall by resolution designate
the depositories to serve as custodian of Township funds. Receipts
shall be prepared at least in duplicate and shall indicate the source
and name of the party or agency from whom the moneys were received
and the account code and title to which the receipt is to be credited
in the accounting records of the Township.
[Amended 4-24-1989 by Ord. No. 437]
A.
In accordance with the Charter, Article IV, Section 414, the Township Manager shall execute all contracts on behalf of the Township.
B.
Contracts involving the purchase, sale, lease or use
of real estate or for the construction of public capital improvements
shall be authorized by ordinance of Council, and such contracts shall
be signed by the Chairman of Council as well as the Manager.
C.
Contracts requiring competitive bidding shall be handled in accordance with the provisions of § 4-46 below.
D.
Administration of contracting, other than that requiring competitive bidding as provided in § 4-46 below, shall be handled in accordance with the following procedures:
(1)
The Finance Director shall serve as purchasing officer
for the Township, directly or through such subordinates as may be
provided in the departmental regulations established for the Department
of Administration and Finance.
(2)
The Township Manager shall provide, in the departmental
regulations, detailed procedures for the processing of purchases and
the assignment of duties and forms relative thereto to appropriate
personnel.
(3)
No contract shall be made or obligation incurred unless
there is a sufficient unencumbered balance in the appropriate appropriation
to which the expenditure will be properly charged. The Director of
Finance will certify on all contracts and purchase orders that sufficient
unencumbered balance is available. If a contract and/or purchase order
is submitted to the Finance Director for which sufficient unencumbered
balance is not available, approval will be withheld until Council
has formally amended the budget to provide a sufficient appropriation.
(4)
All contracts for the employment of personnel shall
be made by the Manager in accordance with the official Manning Table
approved by the Township Council.
(5)
Contracts in writing.
(a)
All contracts for the purchase of materials,
equipment and supplies or for maintenance, repairs or construction
shall be in writing and reflected in the issuance of a purchase order.
Purchases for items or projects which do not exceed in total $10,000
may be authorized by the Manager without formality other than provided
herein, so long as the purchase is for lawful purposes and within
the appropriations for such purposes provided by Council. Purchases
in amounts in excess of $10,000, and not requiring competitive bidding
shall be made by the Township Manager only after solicitation of two
or more written quotations, which quotations shall be retained in
the records of the Township in relation to the purchase order for
the contract which is eventually let, and after formal approval of
Township Council at a public meeting, which approval shall be noted
in the minutes of the meeting.
[Amended 4-9-2012 by Ord. No. 728]
(b)
All other contracts, including those contracts
for professional or unique services, shall be in writing.
(6)
The terms of contracts for the purchase of materials
and supplies shall not exceed two years.
(7)
Any officer authorized to execute a written contract
shall submit the form of contract to the Township Solicitor for approval
before executing the contract. For routine purchases for the normal
services of the Township, approval of the form of purchase order shall
be considered compliance with this requirement of the Charter, Section
414A.
(8)
No person shall evade the provisions of this section, nor the competitive bidding requirements in § 4-46 below, by purchasing or contracting for materials, supplies or services piecemeal, which transaction would, in the exercise of reasonable discretion and prudence, be considered one transaction amounting to more than the amount as specified by Township Council.
[Amended 1-25-1982 by Ord. No. 304; 4-24-1989 by Ord. No.
437; 4-9-2012 by Ord. No. 728; 2-11-2019 by Ord. No. 802]
All contracts for the purchase of materials, equipment and supplies or for maintenance, repairs or construction, the total cost of which exceeds a base amount of $18,500, subject to adjustment in accordance with adjustments authorized under the Second Class Township Code, 53 P.S. § 68102(b.1), except those for which competitive bidding shall not be required in accordance with the Charter, Article IV, Section 414B, shall be made only to the lowest responsible bidder after receipt of one or more sealed bids in accordance with the following procedures:
A.
Bidders list. The Township Manager shall establish
and maintain, by categories of products or services, a bidders list
containing those contractors who have expressed a potential desire
to compete or who by past performance demonstrated such capability.
The Manager shall include in the departmental regulations the procedure
for maintaining the list current. A copy of bid solicitations as advertised
shall be mailed to each contractor providing such products or services
at the time advertisements for bids are placed.
B.
Filing of specifications. Specifications and, where
applicable, plans required for execution of the contract shall be
complete and available in the Township Building preceding and during
advertising for bids.
C.
Advertising. Advertising for bids on all contracts
for which competitive bidding is required shall be processed according
to the following procedures:
(1)
Appropriate advertising shall be placed at least once
in a regularly published newspaper in general circulation in the Township.
Advertising may also be published in additional general circulation
newspapers or trade journals as may be warranted by the nature of
the contract. Advertising may also be placed more than once. The Township
Manager shall determine the additional advertising as may be warranted
by the contract.
(2)
Advertising shall appear no later than 15 days prior
to the day of bid opening for contracts for supply of materials which
are standard commercial or catalog items. For contracts which require
the design, development, fabrication or installation of nonstandard
items, the bid advertising shall appear at least 45 days prior to
bid opening.
D.
General requirements for bidders. The following general
requirements will be established for bidders:
(1)
Familiarity with proposed work. Before submitting
a proposal, the bidder shall carefully examine drawings and specifications,
visit the site when applicable, be cognizant of all laws, ordinances
and regulations, wage rates and labor conditions in the area of operation
affecting the contract or the work and shall include in the proposal
form a sum to cover the cost of all items, implied or required, to
attain the completed conditions required by the contract.
(2)
Laws and ordinances. All regulations and ordinances
of Middletown Township and laws of the Commonwealth of Pennsylvania
or the United States of America shall be observed by the contractor
as far as they apply to the contract. The contractor shall file for
necessary Township permits, but the fee for required Township permits
may be waived by the Township as a condition of the contract.
(3)
Preparation of proposals. All bids must be submitted
on forms prepared by the Township and shall be subject to all requirements
and specifications, drawings, where applicable, and the information
and other instructions to bidders.
(4)
Bids in force for 60 days. All bids must remain in
force for 60 days after the date of the opening of bids and may be
accepted or rejected at any time prior to the expiration of this period.
E.
Bonds required. The following bonds are required for
a bidder and subsequently of the successful bidder:
(1)
Bid bond. Each sealed bid shall be accompanied by
a certified check, bank cashier's or treasurer's check or a bid bond
with corporate surety satisfactory to the Township, in an amount equal
to not less than 10% of the bid. In the case of any materials, equipment
or supplies to be acquired by the Township by chattel mortgage, bailment
lease, conditional sale contract or other security agreement, the
total cost shall be the total amount payable pursuant thereto throughout
the term thereof. No bid will be considered unless it is so guaranteed.
The bid guarantee shall insure the execution of the contract by the
bidder, and only bid bonds which are made on the regular bid bond
form will be accepted, all as required by the specifications.
(2)
Performance, maintenance and labor and material payment
bonds.
(a)
The successful bidder must deliver to Middletown
Township, in exchange for the bid security, the following bonds:
[1]
In the case of contracts for maintenance, repairs
or construction, the total cost of which exceeds $18,500, a performance
bond executed by one or more surety companies satisfactory to the
Council and authorized to do business in the Commonwealth of Pennsylvania,
at 100% of the contract price for faithful performance of the contract,
and 10% of the contract price for maintenance of the work performed
under the contract for a period of one year from the date of completion
and acceptance of the work performed under the contract.
(b)
Such bonds shall be in the form of bonds included
in the specifications and shall bear the same date as the date of
the contract. The failure of any successful bidder to execute required
bonds within 20 days after the prescribed forms are presented for
signature, or within such extended period as the Township Council
may grant, shall constitute a default, and the Township Council may
either award the contract to the next responsible bidder or readvertise
for bids and may charge against the bidder the difference between
the amount of this bid and the amount for which a contract for the
work is subsequently executed, irrespective of whether the amount
thus due exceeds the amount of the bid guaranty.
F.
Bid opening. The following procedures apply to the
receipt, opening and acceptance or rejection of bids:
(1)
Time for receiving bids. Bids received prior to the
time of opening will be securely kept, unopened. Township officials
whose duty it is to open them will decide when the specified time
has arrived, and no bid received thereafter will be considered. No
responsibility will attach to Township officials for the premature
opening of a bid not properly addressed and identified.
(2)
Receipt of bids. Sealed bids will be received by Middletown
Township at the office of the Township Manager until the date and
time specified for the contract. No bid may be considered if received
after that time, nor may any bid be modified or withdrawn after that
time except as provided below. The award of bids shall be made only
by public announcement at the meeting at which bids are received,
or at a subsequent meeting, the time and place of which shall be publicly
announced when bids are received. If for any reason one or both of
the above meetings shall not be held, the same business may be transacted
at any subsequent meeting if at least five days' notice thereof shall
be published in a newspaper published or circulating generally in
the Township, the meeting date is properly posted at the Township
office, and if each bidder has been notified by mail of the change
of date.
(3)
Rejection of bids.
(a)
In accordance with the Charter, Section 414C,
the award shall be made to the lowest responsible bidder. "Responsible"
shall be interpreted to signify that the following conditions are
met: the bonding requirements have been met; all imposed general requirements
have been met; the bidder has demonstrated competence for performing
the work; and the submitted bid is compliant with the proposed statement
of work.
(b)
If none of the bidders meet the above requirements,
the Township may reject all bids and reinitiate the bidding process.
The Township officials evaluating the bids shall interpret the above
conditions and shall include the results of this evaluation in their
recommendation to Council.
G.
Withdrawal of bids. A bidder may withdraw his bid
under the following conditions:
(1)
If the bidder or his authorized representative shall
present a written request not later than the hour set for the opening
of bids, the bid shall be withdrawn and, at the time of opening proposals,
the bid will be returned to him unread.
(2)
If after opening of bids a low bidder submits credible
evidence that the low bid was the result of an unintentional and substantial
arithmetical error or unintentional omission of required work elements,
the bidder may request permission to withdraw the bid, and such request
will be processed by the Township in accordance with the Public Contracts,
Bids, Withdrawal Law, Act No. 4 of 1974 as amended,[1] or other general law of the Commonwealth of Pennsylvania.
The Township Manager shall include in the departmental regulations
the procedures to be followed in processing a request for withdrawal
of a bid under these conditions.
[1]
Editor's Note: See 73 P.S. § 1601
et seq.
H.
Discrimination in employment. All contracts executed
by the Township, or officer thereof, which involve the construction
or doing of any work involving the employment of labor, shall contain
a provision that the contractor shall accept and adhere to the provisions
of the Pennsylvania Human Relations Act.[2]
[2]
Editor's Note: See 43 P.S. § 951
et seq.
I.
Workers' compensation. All contracts executed by the
Township, or an officer thereof, which involve the construction or
doing of any work involving the employment of labor shall contain
a provision that the contractor shall accept, insofar as the work
covered by any such contract is concerned, the provisions of the Pennsylvania
Workers' Compensation Act,[3] and said contractor will insure his liability thereunder
or file with the Township with which the contract is made a certificate
of exemption from insurance from the Bureau of Workers' Compensation
of the Department of Labor and Industry.
[3]
Editor's Note: See 77 P.S. § 1 et
seq.
J.
Interest of Township officials in contracts. In accordance with the Charter, Article VIII, Section 801B, in any case where a Township officer or official, elected or appointed, knows or by the exercise of reasonable diligence could know that he is interested to any appreciable degree, either directly or indirectly, in any contract for the sale or furnishing of any personal property for the use of the Township of more than $300 in any year, he shall notify the Council thereof, and no such contract shall be passed and approved by Council except by an affirmative vote of at least 3/4 of the total number of members of Council.
[Amended 2-11-2019 by Ord. No. 801]
A.
The Township Manager is authorized to sell, on behalf of the Township,
excess or unneeded personal property of the Township when the value
of the personal property as estimated by the Township Manager is less
than $5,000. Sale of excess or unneeded personal property of the Township
estimated by the Township Manager to have a value equal to or exceeding
$5,000 shall receive prior authorization by the Council at a public
meeting.
B.
All excess or unneeded personal property of the Township shall be
sold by auction, including by and through online auction websites,
made available to the public and awarded to the highest bidder. Payment
shall be made in accordance to the rules and policies of the auctioneer
or auction website. The Township shall at least once in January of
each year, in a newspaper generally circulated in the Township, provide
notice of the online auction website to be used for sales hereunder.
For each auction held, the Township shall prominently post in the
Township building and on its website notice of the auction and a summary
of the items to be sold.
C.
All sales of real property shall be made only to the highest bidder
after receipt of one or more sealed bids received after notice. Notice
shall be published at least once in one or more newspapers generally
circulated in the Township, between seven and 30 days before the date
established for the opening of sealed offers. Each sealed offer shall
be accompanied by a certified check or bank cashier's or treasurer's
check in an amount equal to not less than 10% of the offer.
D.
The Council may sell or transfer real or personal property to a municipal
authority, a school district, another municipality, the Commonwealth
of Pennsylvania, or a nonprofit corporation engaged in community industrial
development on such terms as may be negotiated. Competitive bidding
will not be required for such sales or transfer of property.
No gift of real estate, or any interest in real
estate, to the Township may be accepted without specific approval
of a majority vote of the total members of Council.
All disbursements, except those from petty cash,
shall be by check drawn on the proper account of the Township. Each
check shall be signed by two officers, including the Township Manager
or his designee and the Finance Director or his designee. The Finance
Director shall authorize disbursement of Township moneys only after
determining that all goods and services contracted for have actually
been received or performed, and that a sufficient unexpended balance
exists in the appropriation account to which the disbursement is to
be charged.
The elected auditors of the Township shall make the annual audit of Township financial affairs and prepare the annual audit report as required by the Charter, Article VI, which is self-executing and incorporated in this chapter by reference.
The Council shall, as it deems necessary, provide
for an independent audit of all Township accounts by a certified public
accountant who has no personal interest, direct or indirect, in the
fiscal affairs of the Township or of its elected and appointed officers.
Copies of any such audits or financial reports shall be available
for inspection by the public.
The Township Manager shall arrange for blanket
bonds covering all officers and employees of the Township who are
responsible for the handling and/or authorization of receipts, disbursements,
materials and supplies. Such bonds shall be subscribed by a surety
company or companies authorized to do business in Pennsylvania and
shall be designed to provide the Township the greatest protection
at the least cost, under a blanket position bond or by a per-occurrence
fidelity bond. The Council shall approve the bonding contracts on
behalf of all Township officers and employees. The amount of the bond
or bonds shall be determined annually by Council to ensure adequate
protection of the Township interests. The costs of such bonding shall
be paid by the Township.
A.
Limitations on tax rates and debts shall be as provided
in the Charter, Sections 412 and 413. The Township shall follow the
provisions of the Local Government Unit Debt Act, as amended,[1] or other general law of the Commonwealth of Pennsylvania
with respect to authorizing and incurring debt.
[1]
Editor's Note: Said Act was repealed 12-19-1996
by P.L. 1158, No. 177. See now 53 Pa.C.S.A. § 8001 et seq.
B.
Should the Council find it necessary or desirable
to levy real estate taxes at higher rates than authorized to Second
Class Townships in Pennsylvania, the Council shall by ordinance submit,
for referendum of the registered voters of the Township, any proposed
new rate limit to be established, which new rate limit shall continue
until further changed by referendum unless superseded by higher rates
authorized to Second Class Townships generally or by rates authorized
by the General Assembly which apply to municipalities with home rule
charters.
