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PMAA Meeting with PUCA Contractors



Thursday, Nov. 17 – Municipal Authority philosophy:  “It’s all about the risk…[the contract language is designed] to shift the risk from us to you and we’re willing to pay for that.” Hear it in their words

Members of the PUCA Government Relations Committee met with members of the Pennsylvania Municipal Authorities Association (PMAA) to discuss concerns with House Bill 652 (The Procurement Code).  

PUCA Reasoning:   “In the public sector…why you want to write a contract that encourages higher dollars on the bid… that’s not efficient use of public funds.”
Hear it in their words


The meeting entailed with a lot of discussion on the need for the legislation with very little objections to amending language being discussed.  PUCA members expressed concern with withholding beyond legal retainage limits and the fact that the amended language provides that the party at fault will bear the costs of the dispute.

PUCA Reasoning:  “We’re going to spend our money [on litigation to force payment] and I’m going to go sue them…Under the new law if you [the project owner] don’t do it you owe me, [and] your going to owe… [attorney fees].”  Hear it in their words

PUCA philosophy:  “We believe the public will save money by having standardization in the law and guidelines for us to work with that we all know what they are…just basics [standards]…there will be a savings.” 

“There is a proven factor that when the FAR was written and the risk or the clearness was added to the way contracting was done, contracting costs came down for the Federal Government. We believe that is the case that would happen here.” 

“In every case, when we go for money, when we try to generate funds to do this work, everybody says the same thing – why are you asking for money? – why don’t you get more efficient - what can you do to make this $50 million lay more pipe?…one of the ways is to write a law… that makes it so that we don’t have to build the risks into the job…and that’s what we’re trying to do here.” Hear it in their words 


The meeting ended with a difference of philosophy, but a willingness to continue to work on finding a common ground to improve the current Procurement Code law.

Municipal Authority Compromise:   “I’m certainly open to the idea of some standardization …if the standardization is accomplished via some sort of industry endorsed type of contract method be it AIA, EJCDC…” Hear it in their words  

After a drive from State College to Pittsburgh, Brenda attended the Southwest District meeting in Penn Hills.  Those members that attended the meeting learned about Prevailing Wage Profit Sharing Plans.  Starrr Products, a new PUCA affinity program, talked about OSHA Regulations on slings and straps.  PUCA members are offered discount prices on slings and straps through the PUCA website – watch for Starr Products logo above a PUCAperk header on the PUCA homepage.

 

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Friday, Nov. 18 -  The Pittsburgh Construction Legislative Council (CLC) Meeting – Rep. David Levdansky, House Minority Finance Committee Chair, spoke against the implementation of sales tax as the “panacea” for property tax reduction.  Members of the CLC expressed their opposition to sales tax on professional services for engineers and architects.  Also, Brenda Reigle, PUCA Executive Director, noted the imposition of sales tax on political subdivision’s construction projects.  Brenda explained to Rep. Levdansky that “this practice seems ridiculous considering the fact that most of the funding for sewer and water projects comes from state or federal dollars.  One hand gives while the other hand takes it back.  More projects could be funded if this sales tax is completely eliminated.”   Rep. Levdansky agreed to look into this issue and offered to meet with other concerned members of the CLC.

On another issue, Brenda ask the CLC to send a letter of support to the Pennsylvania Congressional Delegation, Pennsylvania General Assembly and the Clean Water Coalition in Washington D.C. opposing the rescission of the current funding level for the Clean Water State Revolving Loan Fund (SRF).  This Federal funding is distributed to each state with Pennsylvania’s PENNVEST share around $56 million.  The rescission could cut Pennsylvania’s funding to nearly $28 million. The CLC voted in support of a letter and ask Brenda to draft the letter for the CLC.

 

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