§ 21.12-1207. Contracts.

 A. The Township may make contracts and incur obligations for lawful purposes subject to the provisions of this Charter and state law and subject to the following limitations:

   1. Limitations on Amount

     a. As to the amount payable thereunder in the current fiscal year, at the time of the execution of the contract there shall be a sufficient unencumbered balance in an appropriation and sufficient funds therefor shall be anticipated to be available to cover such payment.

     b. As to the amount payable thereunder in future fiscal years, the total amount which may be paid in each future fiscal year on account of each such contract or obligation (except those hereinafter mentioned) shall not exceed ten percent of the annual arithmetic average of the total operating revenues of the Township for the three full fiscal years ended next preceding the date of the making of such contract or the incurring of such obligation. This limitation shall not apply to obligations for debt or for the purchase of capital goods and services properly to be funded by debt, nor shall it apply to employment contracts with Township employees, to contracts with other governmental entities or with regulated utilities.

   2. Limitations on Duration

     a. Employment contracts with Township employees shall be limited to a maximum of four year terms.

     b. The terms of contracts for the purchase of supplies shall not exceed three years.

     c. Any contract which has a duration of two years or more must be approved by an absolute two-thirds vote.

 B. All contracts exceeding Twenty Five Hundred Dollars:

   1. Shall be in writing.

   2. Shall be approved by ordinance or resolution, except that all contracts for the construction of assessable public capital improvements shall be authorized only by ordinance, regardless of amount.

   3. Shall be signed by the Manager. A written contract for less than Twenty Five Hundred Dollars may be signed by the Manager’s designee if for a term of less than two years, provided that such action is in accordance with the budget or any other specific prior authorization required by this Charter.

   Any officer required to execute a written contract shall submit the form of contract to the Township Solicitor for approval before executing the contract.

 C. All contracts exceeding Twenty Five Hundred Dollars shall be awarded after competitive bidding to the lowest responsible bidder where the Township is purchaser and the highest responsible bidder where the Township is seller, except that competitive bidding need not be required for the following contracts:

   1. Labor or services rendered by any Township officer or employee.

   2. Contracts for labor, material, supplies or services available from only one vendor, providing that the Manager shall have certified to the Board in writing that the material, labor, supplies or services are available from only one vendor.

   3. Contracts relating to the acquisition or use by the Township of real property.

   4. Contracts relating to the lease or sale by the Township of real property owned by it, provided a system for obtaining independent appraisals is developed and utilized so as to assure that the Township is obtaining adequate compensation.

   5. Contracts for professional or unique services or supplies.

   6. Contracts for insurance where competitive bidding is impractical.

   7. Contracts for emergency repairs, services or supplies.

   8. Contracts with other governmental entities, authorities, agencies or political subdivisions.

   9. Contracts for regulated utility services.

   10. Contracts pursuant to joint purchasing arrangements entered into with other governmental entities, providing one of the participating governmental entities utilized similar procedures to those which would be here required in the absence of such joint purchasing agreement.

 The Board shall adopt an ordinance establishing the procedure for competitive bidding which shall include publication and notice requirements, including advertisement at least once in a newspaper of general circulation in the Township, deposit and bond requirements, conditions, terms, rules and regulations.

 D. The Board, by ordinance adopted by an absolute three-quarters vote, may change the Twenty Five Hundred Dollar amount specified for any or all of the requirements stated in §  21.12-1207B1—B3, or C, and may provide for differing amounts for each such requirement.

 E. No person shall evade the provisions of this Section by purchasing or selling goods or contracting for services to be supplied piecemeal, or at separate times, which transactions would, in the exercise of reasonable discretion and prudence, be conducted as one transaction requiring payment or receipt of an amount greater than the amount above which competitive bidding is then required.

 F. Willful violation of any of the provisions of this section shall constitute a summary offense punishable upon conviction by a maximum fine of Five Hundred Dollars. Conviction thereunder, when final, or a plea of nolo contendere or guilty, shall subject such person to surcharge to the extent of the damage shown to be thereby sustained by the Township, and shall result in forfeiture of office.

   Commentary: : The provisions of §  21.12-1207A limiting contracts as to future years with regard to both amount and duration represent an attempt by the GSC to avoid the possibility that a particular Board will bind future Boards by obligating the Township in areas where no such obligations are in fact legitimately required.

   The permission granted to the Board in §   21.12-1207D to increase the Twenty Five Hundred Dollar amount for exemption from competitive bidding, written contract, signatures and Board approval requirements, provides a method for adjustment because of changing inflationary levels. It is not contemplated that the Board will increase the Twenty Five Hundred Dollar limit except to reflect increases in the cost of living.

   The exceptions from the competitive bidding requirement as enumerated in §  21.12-1207C are in general currently applicable under the Township Code, Section 1802. Somewhat special provisions are here included for the exemption from the competitive bidding requirement of items available from only one vender (§   21.12-1207C2), lease or sale of Township real property provided independent appraisals are obtained to assure adequate compensation is being received (§  21.12-1207C4) and contracts pursuant to joint purchasing arrangements providing that one of the participating units followed competitive bidding procedures where they would have been required pursuant to this Charter (§  21.12-1207C10).

   This section cited in 346 Pa. Code §  21.11-1110 (relating to financial interest in matters involving the township).