Bill S2761-2013

Increases project size for which separate contracts on public work are required; repealer

Increases project size for which separate contracts on public work are required.

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Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 23, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S2761

TITLE OF BILL: An act to amend the general municipal law, the state finance law, the public housing law, the education law, the public authorities law, chapter 892 of the laws of 1971, amending the public authorities law relating to construction by the dormitory authority, and chapter 560 of the laws of 1980, relating to authorizing the city of New York to adopt a waste management law, in relation to project size over which separate contracts on public work are required; and to repeal certain provisions of the general municipal law relating thereto

PURPOSE OF THE BILL: This bill increases the project size or threshold under the Wicks Law for awarding separate contracts for the mechanical work for building in excess of the stated statutory level.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Amends subdivision 1 and 2 of § 101 of the General Municipal Law.

§ 2- Repeals subdivisions 3 and 4 of § 101 of the General Municipal Law and adds two new subdivisions 3 and 4.

§ 3- Amends paragraph (b) of subdivision 7 of § 120-w of the General Municipal Law.

§ 4- Amends 5 135 of the State Finance Law.

§ 5- Amends § 151-a of the Public Housing Law.

§ 6- Amends the opening paragraph of subdivision 2 of § 458 of the Education Law.

§ 7- Amends the opening paragraph of subdivision 2 of 5 482 of the Education Law.

§ 8- Amends subdivision 2 of 5 1045-i of the Public Authorities Law.

§ 9- Amends subdivision 2 of 5 1048-i of the Public Authorities Law.

§ 10- Amends 5 9 of Chapter 892 of the Laws of 1971, amending the Public Authorities Law relating to construction by the Dormitory Authority.

§ 11- Amends subdivision (c) of 5 4 of Chapter 560 of the Laws of 1980, relating to authorizing the City of New York to adopt a Waste Management Law.

§ 12- Effective date,

JUSTIFICATION: State law currently requires that separate specifications be prepared and separate contracts be awarded for the plumbing, electrical, and HVAC components of public construction projects when the

total project cost exceeds $3 million in New York, $1 million in the downstate suburban counties, or $500,000 in the remainder of the state. This bill would increase the threshold to $3 million statewide. In addition, in situations where the estimated cost of any of the plumbing, HVAC or electrical work to be performed does not exceed ten percent (10%) of the applicable dollar threshold, the public owner can fold such minor amounts of work into another contract for greater management efficiencies.

PRIOR LEGISLATIVE HISTORY: 2011-2012: S.4487/A.3263 -- LOCAL GOV/local gov 2009-2010: A.4342-A -- local gov

FISCAL IMPLICATION: Would result in some savings to the state and local governments.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to all subject contracts bid on or after January 1 next succeeding such effective date.


Text

STATE OF NEW YORK ________________________________________________________________________ 2761 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, the state finance law, the public housing law, the education law, the public authorities law, chapter 892 of the laws of 1971, amending the public authorities law relating to construction by the dormitory authority, and chapter 560 of the laws of 1980, relating to authorizing the city of New York to adopt a waste management law, in relation to project size over which separate contracts on public work are required; and to repeal certain provisions of the general municipal law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions 1 and 2 of section 101 of the general munici- pal law, subdivision 1 as amended by section 1 of part MM of chapter 57 of the laws of 2008 and subdivision 2 as added by chapter 861 of the laws of 1953, are amended to read as follows: 1. Except as otherwise provided in section two hundred twenty-two of the labor law, every officer, board or agency of a political subdivision or of any district therein, charged with the duty of preparing specifi- cations or awarding or entering into contracts for the erection, construction, reconstruction or alteration of buildings[, when the entire cost of such public work shall exceed three million dollars in the counties of the Bronx, Kings, New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and Westchester; and five hundred thousand dollars in all other counties within the state,] shall prepare separate specifications for the follow- ing three subdivisions of the work to be performed: a. Plumbing and gas fitting; b. Steam heating, hot water heating, ventilating and air conditioning apparatus; and c. Electric wiring and standard illuminating fixtures.
2. A. Such specifications shall be drawn so as to permit separate and independent bidding upon each of the above three subdivisions of work. All contracts awarded by any political subdivision or by an officer, board or agency thereof, or of any district therein, for the erection, construction, reconstruction or alteration of buildings, or any part thereof, shall award the three subdivisions of the above specified work separately in the manner provided by section one hundred three of this chapter. Nothing in this section shall be construed to prevent any poli- tical subdivision from performing any such branches of work by or through their regular employees, or in the case of public institutions, by the inmates thereof. B. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, WHERE THE ESTIMATED COST OF ANY OF THE THREE SUBDIVISIONS OF WORK TO BE PERFORMED DOES NOT EXCEED TEN PERCENT OF THE APPLICABLE DOLLAR THRESHOLD IN SUBDIVISION FOUR OF THIS SECTION, THE PUBLIC OWNER SHALL NOT BE REQUIRED TO PREPARE SEPARATE SPECIFICATIONS FOR, OR BID SUCH SUBDIVISION OF WORK AS A SEPA- RATE CONTRACT. S 2. Subdivisions 3 and 4 of section 101 of the general municipal law are REPEALED and two new subdivisions 3 and 4 are added to read as follows: 3. SPECIFICATIONS FOR PUBLIC WORK PERTAINING TO THE ERECTION, CONSTRUCTION, RECONSTRUCTION OR ALTERATION OF BUILDINGS MAY PROVIDE FOR THE ASSIGNMENT OF RESPONSIBILITY FOR SUPERVISION AND COORDINATION OF ANY OR ALL CONTRACTS FOR SUCH WORK TO A SINGLE RESPONSIBLE AND RELIABLE PERSON, FIRM OR CORPORATION WHICH HAS NOT BEEN AWARDED A CONTRACT FOR ANY OTHER PORTION OF SUCH WORK. 4. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO PUBLIC WORK AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION WHEN THE ENTIRE COST OF SUCH WORK EXCEEDS THREE MILLION DOLLARS. S 3. Paragraph (b) of subdivision 7 of section 120-w of the general municipal law, as amended by section 2 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: (b) Except as otherwise provided in section two hundred twenty-two of the labor law, when the entire cost of constructing such building shall exceed [three million dollars in the counties of the Bronx, Kings, New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and Westchester; and five hundred thou- sand dollars in all other counties within the state,] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION FOUR OF SECTION ONE HUNDRED ONE OF THIS CHAPTER the project developer shall prepare separate specifications for the following subdivisions of such work, so as to permit separate and inde- pendent bidding upon each subdivision: (i) plumbing and gas fittings; (ii) steam heating, hot water heating, ventilating and air condition- ing apparatus; and (iii) electric wiring and standard illuminating fixtures. S 4. Section 135 of the state finance law, as amended by section 3 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: S 135. Separate specifications for [contract] CERTAIN PUBLIC work for the state. 1. Except as otherwise provided in section two hundred twen- ty-two of the labor law, every officer, board, department, commission or commissions, charged with the duty of preparing specifications or award- ing or entering into contracts for the erection, construction or alter- ation of buildings, for the state[, when the entire cost of such work shall exceed three million dollars in the counties of the Bronx, Kings,
New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and Westchester; and five hundred thousand dollars in all other counties within the state,]
must have prepared separate specifications for each of the following three subdivisions of the work to be performed: [1.] (A) Plumbing and gas fitting. [2.] (B) Steam heating, hot water heating, ventilating and air condi- tioning apparatus. [3.] (C) Electric wiring and standard illuminating fixtures. 2. (A) Such specifications must be so drawn as to permit separate and independent bidding upon each of the above three subdivisions of work. All contracts hereafter awarded by the state or a department, board, commissioner or officer thereof, for the erection, construction or alteration of buildings, or any part thereof, shall award the three subdivisions of the above specified work separately to responsible and reliable persons, firms or corporations engaged in these classes of work. A contract for one or more buildings in any project shall be awarded to the lowest responsible bidder for all the buildings included in the specifications. (B) Each bidder on a public work contract, where the preparation of separate specifications is not required, shall submit with its bid a separate sealed list that names each subcontractor that the bidder will use to perform work on the contract, and the agreed-upon amount to be paid to each, for: [(a)] (1) plumbing and gas fitting, [(b)] (2) steam heating, hot water heating, ventilating and air conditioning apparatus and [(c)] (3) electric wiring and standard illuminating fixtures. After the low bid is announced, the sealed list of subcontractors submitted with such low bid shall be opened and the names of such subcontractors shall be announced, and thereafter any change of subcontractor or agreed-upon amount to be paid to each shall require the approval of the public owner, upon a showing presented to the public owner of legitimate construction need for such change, which shall be open to public inspection. Legitimate construction need shall include, but not be limited to, a change in project specifications, a change in construction material costs, a change to subcontractor status as determined pursuant to paragraph (e) of subdivision two of section two hundred twenty-two of the labor law, or the subcontractor has become otherwise unwilling, unable or unavailable to perform the subcontract. The sealed lists of subcontractors submitted by all other bidders shall be returned to them unopened after the contract award. (C) Nothing in this section shall be construed to prevent the authori- ties in charge of any state building, from performing any such branches of work by or through their regular employees, or in the case of public institutions, by the inmates thereof. (D) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, WHERE THE ESTI- MATED COST OF ANY OF THE THREE SUBDIVISIONS OF WORK TO BE PERFORMED DOES NOT EXCEED TEN PERCENT OF THE APPLICABLE DOLLAR THRESHOLD IN SUBDIVISION FOUR OF THIS SECTION, THE PUBLIC OWNER SHALL NOT BE REQUIRED TO PREPARE SEPARATE SPECIFICATIONS FOR, OR BID SUCH SUBDIVISION OF WORK AS A SEPA- RATE CONTRACT. 3. SPECIFICATIONS FOR PUBLIC WORK PERTAINING TO THE ERECTION, CONSTRUCTION, RECONSTRUCTION OR ALTERATION OF BUILDINGS MAY PROVIDE FOR THE ASSIGNMENT OF RESPONSIBILITY FOR SUPERVISION AND COORDINATION OF ANY OR ALL CONTRACTS FOR SUCH WORK TO A SINGLE RESPONSIBLE AND RELIABLE PERSON, FIRM OR CORPORATION WHICH HAS NOT BEEN AWARDED A CONTRACT FOR ANY OTHER PORTION OF SUCH WORK.
4. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO PUBLIC WORK AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION WHEN THE ENTIRE COST OF SUCH WORK EXCEEDS THREE MILLION DOLLARS. S 5. Section 151-a of the public housing law, as amended by chapter 572 of the laws of 1964, subdivision 1 as amended and subdivision 2-a as added by section 4 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: S 151-a. Separate specifications for certain [subdivisions of work involved in the construction or alteration of buildings as a part of or in connection with] PUBLIC WORK INVOLVING housing projects. [1.] Notwithstanding any inconsistent provision of this chapter or any other general, special or local law, except as otherwise provided in section two hundred twenty-two of the labor law, any authority or municipality, or any officer, board, department, commission or other agency thereof charged with the duty of preparing specifications or awarding or enter- ing into contracts involving the erection, construction, reconstruction or alteration of any building or other appurtenance as a part of or in connection with a project or any part thereof in any part of the state under or pursuant to the authority of this chapter[, when the entire cost of such work shall exceed three million dollars in the counties of the Bronx, Kings, New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and West- chester; and five hundred thousand dollars in all other counties within the state, must have prepared separate specifications for the following three subdivisions of the work to be performed: a. Plumbing and gas fitting; b. Steam heating, hot water heating, ventilating and air conditioning apparatus; and c. Electric wiring and standard illuminating fixtures. 2. Such specifications must be so drawn as to permit separate and independent bidding upon each of the above three subdivisions of work. All contracts hereafter awarded by any such authority or municipality, or any officer, board, department, commission or other agency thereof, involving the erection, construction, reconstruction or alteration of any building as a part of or in connection with any project under or pursuant to this chapter, shall award the three subdivisions of the above specified work separately to responsible and reliable persons, firms or corporations engaged in such classes of work. 2-a. Each bidder on a public work contract, where the preparation of separate specifications is not required, shall submit with its bid a separate sealed list that names each subcontractor that the bidder will use to perform work on the contract, and the agreed-upon amount to be paid to each, for: a. plumbing and gas fitting, b. steam heating, hot water heating, ventilating and air conditioning apparatus and c. elec- tric wiring and standard illuminating fixtures. After the low bid is announced, the sealed list of subcontractors submitted with such low bid shall be opened and the names of such subcontractors shall be announced, and thereafter any change of subcontractor or agreed-upon amount to be paid to each shall require the approval of the public owner, upon a showing presented to the public owner of legitimate construction need for such change, which shall be open to public inspection. Legitimate construction need shall include, but not be limited to, a change in project specifications, a change in construction material costs, a change to subcontractor status as determined pursuant to paragraph (e) of subdivision two of section two hundred twenty-two of the labor law, or the subcontractor has become otherwise unwilling, unable or unavail-
able to perform the subcontract. The sealed lists of subcontractors submitted by all other bidders shall be returned to them unopened after the contract award. 3. Nothing in this section shall be construed to prevent any such authority or municipality in charge of any such project from performing any such branches of work by or through their regular employees]
SHALL CONTRACT FOR PUBLIC WORK INVOLVING HOUSING PROJECTS PURSUANT TO SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW. S 6. The opening paragraph of subdivision 2 of section 458 of the education law, as amended by section 5 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: Except as otherwise provided in section two hundred twenty-two of the labor law, every contract, lease or other agreement entered into by or on behalf of the fund for the acquisition, lease, construction, recon- struction, rehabilitation or improvement of the school portion of the work in any combined occupancy structure shall contain a provision that, when the entire cost of any such contemplated construction, recon- struction, rehabilitation or improvement for the school portion of the work shall exceed [three million dollars in the counties of the Bronx, Kings, New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and Westchester; and five hundred thousand dollars in all other counties within the state,] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION FOUR OF SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW separate specifications shall be prepared for the following three subdivisions of the work on the school portion to be performed: S 7. The opening paragraph of subdivision 2 of section 482 of the education law, as amended by section 6 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: Except as otherwise provided in section two hundred twenty-two of the labor law, every contract, lease or other agreement entered into by or on behalf of the fund for the acquisition, lease, construction, recon- struction, rehabilitation or improvement of any combined occupancy structure shall contain a provision that, when the entire cost of any such contemplated construction, reconstruction, rehabilitation or improvement shall exceed [three million dollars in the counties of the Bronx, Kings, New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and Westchester; and five hundred thousand dollars in all other counties within the state,] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION FOUR OF SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW separate specifications shall be prepared for the following three subdivisions of the work to be performed: S 8. Subdivision 2 of section 1045-i of the public authorities law, as amended by section 7 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: 2. Any such agreements (i) shall describe in sufficient detail for reasonable identification the particular water project to be financed in whole or in part by the authority, (ii) shall describe the plan for the financing of the cost of the construction of such water project, includ- ing the amount, if any, to be provided by the water board and the source or sources thereof, (iii) shall set forth the method by which and by whom and the terms and conditions upon which moneys provided by the authority shall be disbursed, (iv) may require, in the discretion of the authority, the payment to the authority of the proceeds of any state and federal grants available to the water board, (v) shall provide for the
establishment of user fees, rates, rents and other charges and the charging and collection thereof by the water board for the use of, or services furnished, rendered or made available by such system such as to provide that such board receive revenues at least sufficient, together with other revenues of the board, if any, to meet the requirements of subdivision one of section one thousand forty-five-j of this title, provided that revenues received by such board shall be deposited in a special fund established pursuant to this title and disbursed to, and upon certification of, the authority, (vi) may provide for the transfer by the city to the water board pursuant to section one thousand forty- five-h of this title of ownership of the sewerage system or water system, or both, as the case may be, of which such project will form a part by the city, (vii) shall provide for the construction and completion of such water project by the city and for the operation, maintenance and repair thereof as an integrated part of the system of which such water project forms a part, subject to such terms and condi- tions, not inconsistent with this title, which may be in the public interest and necessary or desirable properly and adequately to secure the holders of bonds of the authority, provided, however, all contracts for public work and all purchase contracts shall be awarded by the city as provided by law for the award of such contracts by the city and that all contracts for construction shall be let in accordance with the provisions of state law pertaining to prevailing wages, labor standards and working hours. Except as otherwise provided in section two hundred twenty-two of the labor law, when the entire cost of constructing a building as part of any water project shall exceed [three million dollars] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION FOUR OF SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW, the city shall prepare sepa- rate specifications for the following three subdivisions of the work to be performed: (a) plumbing and gas fitting; (b) steam heating, hot water heating, ventilating and air conditioning apparatus; and (c) electric wiring and standard illuminating fixtures, (viii) shall provide for the discontinuance or disconnection of the supply of water or the provision of sewerage service, or both, as the case may be, for non-payment of fees, rates, rents or other charges therefor imposed by the water board, provided such discontinuance or disconnection of any supply of water or the provision of sewerage service, or both, as the case may be, shall not be carried out except in the manner and upon the notice as is required of a waterworks corporation pursuant to subdivisions three-a, three-b and three-c of section eighty-nine-b and section one hundred sixteen of the public service law, and (ix) in the discretion of the authority, require reports concerning the project from the water board to the authority and the city. S 9. Subdivision 2 of section 1048-i of the public authorities law, as amended by section 8 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: 2. Any such agreements (i) shall describe in sufficient detail for reasonable identification the particular water project to be financed in whole or in part by the authority, (ii) shall describe the plan for the financing of the cost of the construction of such water project, includ- ing the amount, if any, to be provided by the water board and the source or sources thereof, (iii) shall set forth the method by which and by whom and the terms and conditions upon which moneys provided by the authority shall be disbursed, (iv) may require, in the discretion of the authority, the payment to the authority of the proceeds of any state and federal grants available to the water board, (v) shall provide for the
establishment of user fees, rates, rents and other charges and the charging and collection thereof by the water board for the use of, or services furnished, rendered or made available by such system such as to provide that such board receive revenues at least sufficient, together with other revenues of the board, if any, to meet the requirements of subdivision one of section one thousand forty-eight-j of this title, provided that revenues received by such board shall be deposited in a special fund established pursuant to this title and disbursed to, and upon certification of, the authority, (vi) may provide for the transfer by the city to the water board pursuant to section one thousand forty- eight-h of this title of ownership of the water system of which such project will form a part, (vii) shall provide for the construction and completion of such water project by the city and for the operation, maintenance and repair thereof as an integrated part of the system of which such water project forms a part, subject to such terms and condi- tions, not inconsistent with this title, which may be in the public interest and necessary or desirable properly and adequately to secure the holders of bonds of the authority, provided, however, all contracts for public work and all purchase contracts shall be awarded by the city as provided by law for the award of such contracts by the city and that all contracts for construction shall be let in accordance with the provisions of state law pertaining to prevailing wages, labor standards and working hours. Except as otherwise provided in section two hundred twenty-two of the labor law, when the entire cost of constructing a building as part of any water project shall exceed [five hundred thou- sand dollars] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION FOUR OF SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW, the city shall prepare separate specifications for the following three subdivisions of the work to be performed: (a) plumbing and gas fitting; (b) steam heating, hot water heating, ventilating and air conditioning apparatus; and (c) elec- tric wiring and standard illuminating fixtures, (viii) shall provide for the discontinuance or disconnection of the supply of water for non-pay- ment of fees, rates, rents or other charges therefor imposed by the water board, provided such discontinuance or disconnection of any supply of water shall not be carried out except in the manner and upon the notice as is required of a waterworks corporation pursuant to subdivi- sions three-a, three-b and three-c of section eighty-nine-b and section one hundred sixteen of the public service law, and (ix) in the discretion of the authority, require reports concerning the project from the water board to the authority and the city. S 10. The opening paragraph of section 9 of chapter 892 of the laws of 1971, amending the public authorities law relating to construction by the dormitory authority, as amended by section 14 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: Except as otherwise provided in section 222 of the labor law, the dormitory authority in awarding or entering into contracts for the erection, construction, reconstruction or alteration of buildings, pursuant to the provisions added by this act, when the entire cost of such work shall exceed [three million dollars in the counties of the Bronx, Kings, New York, Queens, and Richmond; one million five hundred thousand dollars in the counties of Nassau, Suffolk and Westchester; and five hundred thousand dollars in all other counties within the state] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION 4 OF SECTION 135 OF THE STATE FINANCE LAW, shall prepare separate specifications for the following three subdivisions of the work to be performed:
S 11. The opening paragraph of subdivision (c) of section 4 of chapter 560 of the laws of 1980 relating to authorizing the city of New York to adopt a waste management law, as amended by section 13 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: Except as otherwise provided in section 222 of the labor law, every contract, lease or other agreement entered into, pursuant to this section, by the city of New York for construction, reconstruction, reha- bilitation or improvement of buildings for a solid waste recovery and management facility shall contain a provision that, when the entire cost of such work shall exceed [three million dollars] THE DOLLAR LIMITS PROVIDED IN SUBDIVISION 4 OF SECTION 101 OF THE GENERAL MUNICIPAL LAW, separate specifications shall be prepared for the following three subdi- visions of work: S 12. This act shall take effect immediately and shall apply to all subject contracts bid on and after January first next succeeding such effective date.

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