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a. Small Procurements.Contracts for public works projects estimated in value to be less than twelve thousand dollars ($12,000) may be made without informal bids or quotes, subject, however, to fair, just and equitable terms and conditions of purchase, and recognizing the need for fair competition in the conduct of such purchases.

b. Informal Bid Procedure.Contracts for public works projects estimated in value at twelve thousand dollars ($12,000) or more and below one hundred fifty thousand dollars ($150,000) may be made by the Purchasing Agent informally without observing the formal bidding procedures. Such contracts shall, unless infeasible, be based on at least three (3) informal bids or quotes and shall be awarded to the lowest responsible bidder.

c. Formal Bid Procedure.Except as otherwise provided for in this chapter, contracts for public works projects estimated in value at one hundred fifty thousand dollars ($150,000) or more shall be by formal written bid, in accordance with the procedures set forth in Section 28-4(c)(1) through (c)(7), with contracts awarded by the City Council to the lowest responsive and responsible bidder.

d. Bids Exceeding Available Funds.In the event all bids for a public works project exceed available funds as certified by the Purchasing Agent, and the lowest responsive and responsible bid does not exceed such funds by more than ten percent (10%), the Purchasing Agent or his/her designee is authorized, in situations where time or economic considerations preclude resolicitation of work of a reduced scope, to negotiate with the lowest responsive and responsible bidder for an adjustment of the bid price, including changes in the bid scope and bid requirements, in order to bring the bid within the amount of available funds.

When the lowest responsive and responsible bid exceeds available funds by more than ten percent (10%), and an essential operation or City service affecting the public’s health, welfare or safety would be greatly hampered if the City were required to formally resolicit bids, the procurement may proceed under the emergency procurement provisions set forth in this chapter.

e. Local Hire Standards.Unless such provision would be excepted under Section 28-72, all City contracts for public works projects subject to the above-stated formal bidding requirements shall contain provisions for a good-faith effort to hire qualified individuals who are residents of the Monterey Bay area, in accordance with the provisions set forth in Article 2 of this chapter.

f. Prevailing Wages.Contracts for City-funded public works projects valued in excess of twenty-five thousand dollars ($25,000), and contracts for City-funded maintenance work valued in excess of fifteen thousand dollars ($15,000), shall require payment of prevailing wages in accordance with the requirements of the California Labor Code. (Ord. 3624 § 2, 2020)