The Pennsylvania Commonwealth Court recently affirmed the criminal convictions of two second class township supervisors for purchasing equipment with a value over $10,000 without following the advertising and bidding requirements of the Second Class Township Code. The supervisors had defended the charges, claiming that they were mistaken as to the bidding requirements of the Code, and believed that, because they had traded in equipment and applied the trade-in value against the purchase price of the new equipment, public bidding was not required.

The equipment had been purchased for a total purchase price of $14,500, and the township was give $3,000 credit for similar equipment which had been traded in. Payments were made in six installments of $1,800, with a final buy out of $700.

Section 3102(a) of the Second Class Township Code, 53 P. S. § 68102(a), provides, in relevant part:

[a]ll contracts or purchases in excess of the required advertising amount of … $10,000, 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.

Further, Section 3102(a) of the Code, 53 P. S. § 68102(d) provides:

The amount of the contract, whether of straight sale price, conditional sale, lease purchase or otherwise, is the entire amount the township pays to the successful bidder in order to obtain the services or property, or both, and does not mean only the amount which is paid to acquire title or to receive any other particular benefit or benefits.

A resident had filed a private criminal complaint against the supervisors. Upon conviction, both were sentenced to pay the cost of prosecution, pay a fine of $1,000, and serve probation for twelve months.

Mr. French is a senior member of the firm’s litigation department who frequently represents government and municipal owners in procurement and construction matters. He can be reached at Rhoads & Sinon LLP, One South Market Square, 12th Floor, P. O. Box 1146, Harrisburg, PA 17108-1146; telephone (717) 233-5731; email – tfrench@rhoads-sinon.com.