Section 120-L. Letting of contracts

1. Whenever any work to be performed or
  materials  to be furnished in or about any improvement to be made by two
  or more municipalities under the provisions of this act shall involve an
  expenditure of any sum of money  exceeding  five  hundred  dollars,  the
  municipal  bodies  or boards of the contracting municipalities, by their
  official action  taken  in  joint  meeting  as  herein  provided,  shall
  designate  a time when they will meet at their usual place of meeting to
  receive proposals, in writing, for doing  the  work  or  furnishing  the
  materials, and such joint meeting shall order the chairman and secretary
  thereof  to  give  notice,  by  advertisement  inserted  in  one or more
  newspapers  published  or  circulating  in  the  municipalities  jointly
  contracting,  at least two weeks before the time of such meeting, of the
  work to be done or materials to be furnished, of which at  the  time  of
  such  order  they  shall  cause  to be filed in the office of such joint
  meeting particular  specifications;  all  proposals  received  shall  be
  publicly opened by such chairman in the presence and during a session of
  such  joint  meeting,  and  of  all others who choose to attend the said
  meeting; not more than one proposal  shall  be  received  from  any  one
  person, directly or indirectly, for the same contract work or materials;
  and  the said joint meeting may reject any and all of said proposals and
  direct its chairman and secretary to advertise  for  new  proposals  and
  accept  such as shall in the opinion of a majority of the municipalities
  represented in said joint meeting be deemed most  advantageous  for  the
  said  municipalities,  subject,  however,  to  the  reservations  herein
  provided; the board may require  a  bond  or  deposit  from  the  person
  submitting  a  proposal,  the  liability of such bond to accrue, or such
  deposit to be forfeited to the municipality, or municipalities, in  case
  such  person  shall refuse to enter into a contract in accordance to his
  proposal. The proposal so accepted shall be reduced  to  a  contract  in
  writing,  and  a  satisfactory bond to be approved by such joint meeting
  shall be required and  given  for  its  faithful  performance,  but  all
  contracts when awarded shall be awarded to the lowest responsible bidder
  offering  satisfactory  security;  this  section  shall not apply to any
  engineer or agent of the joint  contracting  municipalities  engaged  in
  supervising or directing the work of such improvements.
    2.  Whenever  a security bond is posted by a successful bidder for the
  faithful performance of a municipal project under the provisions of this
  article, for which state aid is approved, the name and  address  of  the
  bonding  company or person issuing the security bond, the number of such
  bond, and such other  information  as  may  be  required  by  the  state
  department  or  agency  responsible  for  supervising  the  aid  program
  regarding the project,  shall  be  transmitted  to  such  department  or
  agency,  where  it shall be reviewed to determine its authenticity prior
  to the award of such contract. The original of such bond shall remain in
  the office of the municipality.  Upon  request  of  such  department  or
  agency,  the superintendent of insurance shall render such assistance as
  is necessary to determine the authenticity of the security bond.