PLEASANT HILLS CONSTRUCTION COMPANY, INC. v. Public Auditorium Auth.

782 A.2d 68, 2001 Pa. Commw. LEXIS 611
CourtCommonwealth Court of Pennsylvania
DecidedAugust 10, 2001
StatusPublished
Cited by7 cases

This text of 782 A.2d 68 (PLEASANT HILLS CONSTRUCTION COMPANY, INC. v. Public Auditorium Auth.) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PLEASANT HILLS CONSTRUCTION COMPANY, INC. v. Public Auditorium Auth., 782 A.2d 68, 2001 Pa. Commw. LEXIS 611 (Pa. Ct. App. 2001).

Opinion

DOYLE, President Judge.

The Sports and Exhibition Authority of Pittsburgh (SEA) (formerly the Public Auditorium Authority of Pittsburgh & Allegheny County) appeals from an order of the Court of Common Pleas of Allegheny County, which granted in part the request for preliminary injunctive relief sought by Pleasant Hills Construction Company and Gary C. Hartman. The Court preliminarily enjoined SEA from entering into any future contracts for any construction projects not in compliance with the bidding requirements of what is commonly known as the Separations Act 1 , and certain provisions of the Public Auditorium Authorities Law (the Law). 2

This appeal involves a dispute over a plumbing contract for SEA’s PNC Park Construction Project (the Stadium Project), which will be the new sports stadium for the Pittsburgh Pirates baseball team. The Stadium Project is being developed as a Redevelopment Assistance Capital Project, financed by both public and private monies. 3 In order to understand the facts underlying this dispute, it is important to understand the various bidding statutes involved in this matter.

Section 11 of the Law, 53 P.S. § 23851(A), establishes the basic principle that an authority’s construction project “shall be done only under contract or contracts to be entered into by the Authority with the lowest responsible bidder....” This statute is amplified by Section 1 of the Separations Act, which provides that, with regard to the construction of any public building:

it shall be the duty of the architects engineer or any other person ... to prepare specifications for the plumbing, heating, ventilating, and electrical work; and it shall be the duty of the person or persons authorized to enter into such contracts ... to receive separate bids upon each of the said branches of work and to award the contract to the lowest responsible bidder for each of said branches.

53 P.S. § 1003.

In 1999, the General Assembly passed two acts which are central to this appeal: *74 (1) the Capital Facilities Debt Enabling Act (Act 1), Act of February 9, 1999, P.L. 1, 72 P.S. §§ 3919.101-3919.5102; 4 and (2) the Capital Budget Project Itemization Act for 1999-2000 5 , Act No. 35, approved by the Governor on June 25, 1999 (Act 35). (Act 1 and Act 35 are collectively referred to as the 1999 Legislation.)

Act 1 is designed to provide for state funding of redevelopment assistance capital projects, including sports stadiums. With regard to bidding on such projects, Section 318(f) of Act 1, 72 P.S. § 3919.318(f), created the following requirement:

(f) Bids. — The solicitation of a minimum of three written bids is required for all general contracted work in redevelopment assistance capital projects.

Furthermore, in Section 22 of Act 35, the General Assembly pertinently provided:

Section 22. Redevelopment assistance capital projects
(a) Requirements for.—
(1) Notwithstanding any other law to the contrary, the requirements of section 318 of the [Debt Enabling Act] ... shall provide the sole and exclusive requirements for bidding for the construction or renovation of a redevelopment assistance capital project authorized in a capital budget itemization act on or before the effective date of this act.
(b) Construction. — Nothing in this section shall be construed to override or abrogate any provision of the act of March 3, 1978 (P.L. 6, No.3), known as the Steel Products Procurement Act.

The facts and procedural history of this case are summarized as follows. SEA solicited bids for plumbing and HVAC on the Stadium Project. The bidding process included a procedure to pre-qualify potential contractors, and the bid package specifically provided that the contracts for the Stadium Project would be awarded to the lowest responsible bidder. Pleasant Hills Construction Co., Inc., a business located in Allegheny County that constructs plumbing systems, participated in the pre-qualification process and was deemed qualified to bid on the Stadium Project as a prime contractor.

Two relevant addenda to the bid package were subsequently issued by SEA. The first addendum, issued on July 9, 1999, asked pre-qualified contractors to submit separate bids for the plumbing and HVAC contract, and a joint bid for plumbing and HVAC work. Another addendum to the bid package was issued on July 19, 1999, 6 which provided:

The procedures to be used to competitively bid construction work on the PNC Park project under the provisions of Act One of 1999 [Act 1] and Senate Bill 572 [Act 35], as adopted by the Owner, are made a part of this bid package.

(Addendum No. 4, Exhibit C to the Second Amended Complaint.) The July 19th addendum also stated:

The DCM may negotiate scope, price, and terms and conditions to achieve a contract that is in the best interests of the Project.... DCM will not adjust the scope, price or terms and conditions *75 without affording at least three bidders the opportunity to compete....
The DCM will recommend ... the award of the contract that is in the best interests of the DCM, the Project and the Developer taking into account price and other factors....

On August 5, 1999, Pleasant Hills submitted a bid for the plumbing project in the amount of $6,154,700.00. This was the lowest plumbing bid submitted for the Stadium Project. Pleasant Hills did not submit a bid for HVAC work.

Limbach Company also submitted a bid for the plumbing contract, as well as a bid for a combined plumbing/HVAC contract. Limbach’s bid for the plumbing contract was $8,100,000.00, substantially more than Pleasant Hills’ bid for the same work, and Limbach’s combined plumbingTTVAC contract bid was $15,400,000.00.

On August 16, 1999, SEA awarded the plumbing and HVAC contracts to Limbach for the amount of its combined bid. Approximately four weeks later, on September 17, 1999, Pleasant Hills and its President, Gary C. Hartman (who is also a taxpayer and Allegheny County resident), brought an equity action in the Common Pleas Court seeking to have the award to Limbach set aside.

Pleasant Hills and Hartman moved for a preliminary injunction asking the Common Pleas Court to enjoin SEA from contracting with any other entity for the plumbing work. They argued, inter alia, that SEA was required to award the plumbing to the lowest responsible bidder, as required by the Law, and that the Separations Act mandates that SEA enter into separate contracts for plumbing and heating work.

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782 A.2d 68, 2001 Pa. Commw. LEXIS 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pleasant-hills-construction-company-inc-v-public-auditorium-auth-pacommwct-2001.