Mechanical Contractors Ass'n of Eastern Pennsylvania, Inc. v. Commonwealth

934 A.2d 1262, 594 Pa. 224, 2007 Pa. LEXIS 2432
Supreme Court of Pennsylvania·Decided November 21, 2007·No. 50, 52, 53, 54, and 59 EAP 2004·Published·Cited by 8 cases

Opinions

[228] OPINION

Chief Justice CAPPY.1

These consolidated direct appeals,2 arise under the Mandate Waiver Program (or “Program”), 24 P.S. § 17-1714-B. This Court considers whether the Commonwealth Court correctly concluded that the Mandate Waiver Program does not allow waiver of the requirement found in the Section 751(a) of the Public School Code of 1949 (“School Code”), 24 P.S. § 1-101 et seq., that separate contracts be used for the plumbing, heating ventilation and lighting work done on public school buildings. For the reasons that follow, we conclude that the Commonwealth Court erred, and that Section 751(a) is subject to waiver under the Program. Accordingly, the orders of the Commonwealth Court in the MCA Action and the GBCA Action are reversed in part and affirmed in part, and the MCA Action is remanded to the Commonwealth Court for further proceedings.

The following material facts are not in dispute. The Mandate Waiver Program is a section in the Educational Empowerment Act (or “Act”), 24 P.S. §§ 17-1701-B-1716-B, which was added to the School Code in May of 2000. P.L. 44, No. 16, § 8.1. Under the Program, a school board may apply to the Appellant Commonwealth of Pennsylvania, Department of Education (the “Department”) for a waiver of any provision of the School Code, if it will enable the school district to improve its instructional program or operate in a more effective, efficient or economical manner. 24 P.S. § 17-1714-B(a). The Department may grant the waiver, provided that one of the exceptions to waiver set forth in the Program does not apply. Id3

[229] On January 3, 2003, Appellant The School District of Philadelphia (the “District”) submitted a Mandate Waiver Program Application to the Acting Secretary of the Department in connection with certain construction and renovation school building projects it planned to undertake. Specifically, the District sought relief from Section 751(a) of the School Code, which requires that separate contracts be entered for work done on the plumbing, heating and ventilating or lighting systems in school buildings. 24 P.S. § 7-751(a).4 In the [230] materials submitted to the Department, the District indicated that a waiver of the multi-prime approach to construction would save the District significant time and enable the District to complete the projects with an estimated savings of $28.3 million dollars. After reviewing the Application, the Department advised the District in a letter dated January 17, 2003 that the Department had concluded that the District would operate more efficiently and economically if the requested waiver were approved. Accordingly, the Department approved the District’s Application and granted it a waiver (the “Waiver”) of Section 751(a) of the School Code for the construction or renovation projects specified in the Application. In November of 2003, the District advertised for bids on the projects. In its solicitation, the District did not seek separate bids for the plumbing, heating, ventilation, and lighting work needed, and sought instead, single bids that included all four work disciplines. Ultimately, the District entered into a single-prime contract for the work.

On January 9, 2004, Appellee Mechanical Contractors Association of Eastern Pennsylvania (“MCA”), a nonprofit corporation whose members are plumbing, heating, ventilating and air conditioning contractors doing business in Southeastern Pennsylvania, filed a Petition for Review in the Nature of an Action for Declaratory Relief in the Commonwealth Court against the Department, Appellant Vicki L. Phillips, the Secretary of Education (the “Secretary”) and the District. The Petition for Review alleged, inter alia, that the Waiver was invalid under the Educational Empowerment Act and Section 1 of the Separations Act, which contains a separate contracts mandate for the plumbing, heating, ventilating and electrical work done on public buildings.5 The Petition for Review requested a [231] declaration that the multi-prime contracting requirements of the Separation Act were not waived for the District and an order directing the Secretary to rescind the Waiver.

The Department, Secretary and the District filed respective answers to MCA’s Petition. The District also brought two counterclaims for declaratory judgment against MCA. In its counterclaims, the District sought a declaration from the Commonwealth Court that the Waiver is valid and that the Acting Secretary was authorized under the Mandate Waiver Program to waive the multi-prime contracting requirement in Section 751(a) of the School Code because it will enable the District to operate in a more efficient, economical manner. In the alternative, the District requested that the court hold a hearing and grant it a waiver under the Program, even if the court concluded that the Waiver was invalid or unauthorized.

On March 25, 2004, MCA filed an application for summary relief. On May 17, 2004, the District responded with an answer opposing MCA’s application for summary relief and a cross-application for summary relief on its counterclaims.

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Mechanical Contractors Ass'n of Eastern Pennsylvania, Inc. v. Commonwealth, 934 A.2d 1262, 594 Pa. 224, 2007 Pa. LEXIS 2432 (Pa. 2007).

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Mechanical Contractors Ass'n of Eastern Pennsylvania, Inc. v. Commonwealth
934 A.2d 1262 (Supreme Court of Pennsylvania, 2007)