Chapter 3.12
PURCHASING SYSTEM1

Sections:

Article I. General Provisions

3.12.010    Adopted--Purpose.

3.12.020    Purchasing authority designated--Department head powers and duties.

3.12.030    Bidding.

3.12.040    Public works projects.

3.12.050    Purchasing process.

3.12.051    Determination of lowest responsible bid.

3.12.052    Bidder protest procedures.

3.12.053    Contracts for professional services.

3.12.060    Purchases by purchasing agent and city manager only.

3.12.061    Splitting purchases prohibited.

3.12.062    Inspection and testing.

3.12.063    Surplus supplies and equipment.

3.12.064    Conflicts of interest in contracts.

3.12.065    Interference with, misleading, etc., bidders prohibited.

3.12.066    Acceptance of gifts, etc., by city employees prohibited.

3.12.070    Local purchasing preference.

3.12.071    Definitions.

3.12.072    Application of local purchasing preference--Procurement of goods, supplies, equipment, materials, services where price is the determining factor.

3.12.073    Application of local purchasing preference--Procurement of services where price is not the determining factor.

3.12.074    Application of local purchasing preference--Public works contracts.

3.12.075    Exceptions to local purchasing preference.

3.12.076    Violations and sanctions.

Article II. Local Hiring for Public Works Projects

3.12.080    Purpose.

3.12.081    Definitions.

3.12.082    Exceptions.

3.12.083    Requirements for contractors submitting bids.

3.12.084    Requirements for prospective subcontractors.

3.12.085    Nonresponsive bids.

3.12.086    Required documentation.

3.12.087    Forms submitted under penalty of perjury.

3.12.088    Disqualification.

Article III. Other Provisions

3.12.090    City attorney prosecution.

3.12.091    Appeals.

3.12.092    Initiation of appeals.

3.12.093    Appeal procedure.

3.12.094    Rules and regulations.

Article I. General Provisions

3.12.010 Adopted--Purpose.

In order to establish efficient procedures for the acquisition of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to dispose of surplus personal property to the best advantage of the city, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. (Ord. 517 §2(part), 2016).

3.12.020 Purchasing authority designated--Department head powers and duties.

The city manager is designated as the purchasing authority for the city. He/she may delegate the duties of purchasing to department heads or any other city employee. The purchasing authority is to:

A.    Purchase or contract for supplies, services and equipment required by any using department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the city manager shall adopt for the internal management and operation of the purchasing procedures and such other rules and regulations as shall be prescribed by the city council.

B.    Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment.

C.    Act to procure for the city the needed quality in supplies, services and equipment at the least expense to the city.

D.    Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.

E.    Prepare and recommend to the city council rules governing the purchase of supplies, services, and equipment for the city.

F.    Prepare and recommend to the city council revisions and amendments to the purchasing rules.

G.    Prescribe and maintain such forms as reasonably necessary for the operation of this chapter and other state or federal rules and regulations.

H.    Inspect all supplies, services and equipment purchased to ensure conformance with specifications.

I.    Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment.

J.    Maintain a bidder list, vendor’s catalog file and records needed for the efficient operation of the purchasing procedures.

K.    Join with other governmental agencies in joint purchasing endeavors where the purchasing procedures substantially conform to this chapter and state law. City purchases may be made by taking advantage of valid contract terms that have been negotiated by another governmental agency subject to section 3.12.030. (Ord. 517 §2(part), 2016).

3.12.030 Bidding.

The purchase of equipment, supplies, materials, general services and professional services shall be by bid or request for proposal as set forth in sections 3.12.040, 3.12.053 and 3.12.070. Formal bidding shall be dispensed with in the following situations:

A.    In the event of an emergency, the city manager may order the suspension of normal bidding or purchasing requirements for projects related to abatement of the impacts or effects of such emergency. An "emergency" exists if:

1.    There is a great public calamity;

2.    There is immediate need to prepare for national or local defense;

3.    There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies or services to protect the public health, welfare or safety;

4.    An essential operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in the procurement of the needed item or service.

The city council shall, if possible, ratify such emergency suspension of procedures within seventy-two (72) hours and consider whether further suspension of procedures is required to abate the impacts of the emergency.

B.    For the purchase of equipment, supplies, materials or services of a value less than that subject to the provisions of section 3.12.050A or for public works projects of a value less than that subject to the provisions of section 3.12.040A.

C.    In the event the contract and/or purchase contemplated is capable of being performed as follows: by a sole provider such as a public utility or the holder of an exclusive patent or franchise; by another governmental agency; through purchasing contracts negotiated by another governmental agency utilizing acceptable bidding procedures; when purchasing used equipment. Such purchases are subject to fair, just and equitable contract conditions. The award of all such contracts valued at twenty-five thousand dollars ($25,000.00) or more is subject to city council approval.

D.    The following rules must be met in every instance in which the city desires to suspend the normal bidding or purchasing requirements set forth in subsection A4 of this section:

1.    The city manager must approve of the use of the exception for a given purchase;

2.    The purchasing officer must determine that the bid to be relied upon was made within the preceding twelve (12) months in accordance with applicable law;

3.    The purchasing officer must determine that there has been no significant change to the price of the item to be purchased since the time that the relied-upon bid was awarded;

4.    If the bid to be relied upon was made by an entity located outside of Monterey County, the purchasing officer must confirm that there is no reason to believe that there would be a significant price difference in the item to be purchased based on the location of available vendors;

5.    The city may only purchase the desired supplies or equipment from the vendor identified as the lowest responsible bidder in the relied-upon bid;

6.    This exception may not be used for any purchase for which bidder’s security is required by law;

7.    Staff must prepare a report to the city council setting forth compliance with the aforementioned rules, and the city council must approve the proposed purchase at a regular meeting of the city council. (Ord. 517 §2(part), 2016).

3.12.040 Public works projects.

A.    Public Bidding--Formal Bid and Contract Procedure: Contracts for public works projects valued at twenty-five thousand dollars ($25,000.00) or more shall be by written bid and contract, in accordance with the provisions set forth in this chapter, or as required by law.

B.    Local Hire Standards: All city contracts for public works projects subject to 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 this chapter unless excepted under section 3.12.082.

C.    Open Market Procedure: Contracts for public works projects estimated in value at two thousand five hundred dollars ($2,500.00) or more but less than twenty-five thousand dollars ($25,000.00), as such amounts may be amended as set forth in subsections A and D of this section, may be made by the city in the open market. Open market contracts shall, unless infeasible, be based on at least three (3) informal bids or quotes and shall be awarded to the lowest responsible bidder.

D.    Purchases Less Than Two Thousand Five Hundred Dollars ($2,500.00): Contracts for public works projects estimated in value to be less than two thousand five hundred dollars ($2,500.00) may be let 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.

E.    Prevailing Wages: Contracts for city-funded public works construction projects valued in excess of twenty-five thousand dollars ($25,000.00), and contracts for city-funded alteration, demolition, repair or maintenance projects valued in excess of fifteen thousand dollars ($15,000.00), shall require payment of prevailing wages in accordance with the requirements of the California Labor Code. (Ord. 517 §2(part), 2016).

3.12.050 Purchasing process.

A.    Formal Bid Procedure: Purchases of supplies, materials, services (other than professional services), and equipment valued at twenty-five thousand dollars ($25,000.00) or more shall be by written bid and contract pursuant to the procedure prescribed herein.

1.    Notice Inviting Bids: Notices inviting bids and specifying the time and place of opening shall be published at least ten (10) days prior to the opening of the bids. Notice shall be published at least once in a newspaper of general circulation within the city.

2.    Receipt and Opening of Bids: All bids shall be sealed, identified on the envelope, and submitted to the city at or before the time specified on the notice. At the time and place specified, the bids shall be publicly opened and read. Any bid received after commencement of bid opening shall be rejected and returned unopened.

3.    Bidders’ Security: At the discretion of the city, each bid may be required to be accompanied by a bid deposit or bond equal to at least ten percent (10%) of the bid amount, as set forth in the bid specifications.

4.    Award of Bid: The city council shall award the contract to the lowest responsible bidder whose bid complies with the specification. In determining responsibility, the city council shall consider the known reliability, resources, experience, integrity, and the reputation for workmanship of the various bidders. The city council may waive any informalities or minor irregularities in bids received. Compliance with bid specifications shall be determined by the city council in the event of a challenge.

5.    Rejection of Bids: The city council may reject any and all bids presented, and may, in its discretion, readvertise for other bids.

6.    Unacceptable Bids or No Bids Received: After rejecting bids, the city council may determine and declare by resolution that the equipment, supplies, materials or services may be more economically or satisfactorily purchased or secured in the open market and direct the purchase of such equipment, supplies, materials or securement of services on the open market by direct negotiations.

7.    Tie Bids: If two (2) or more low bids received are for the same total amount or unit price, quality and service being equal, the city may readvertise for bids, draw lots or accept the one it chooses.

B.    Informal Bid Procedure:

1.    Purchase of supplies, materials, services and equipment estimated in value at three thousand dollars ($3,000.00) or more and twenty-five thousand dollars ($25,000.00) or less may be made by the city informally without observing the formal bidding procedures prescribed in subsection A of this section. Such purchases shall, unless infeasible, be based on at least three (3) informal bids or quotes and shall be awarded to the lowest responsible bidder.

2.    Purchases of vehicles, rolling stock and similar equipment estimated in value at five thousand dollars ($5,000.00) or more and thirty-five thousand dollars ($35,000.00) or less may be made by the city informally without observing the procedures prescribed in subsection A of this section. Such purchases shall, unless infeasible, be based on at least three (3) informal bids or quotes and shall be awarded to the lowest responsible bidder.

C.    Purchases Less Than Two Thousand Five Hundred Dollars ($2,500.00): Purchases of supplies, materials, services and equipment estimated in value to be less than two thousand five hundred dollars ($2,500.00) may be made without informal bids or quotes, subject, however, to fair, just and equitable terms and conditions of purchase.

D.    Purchases through Cooperative Purchases Contracts:

1.    A cooperative procurement contract negotiated by another governmental agency may be utilized for the purchase of goods, services and/or supplies if it meets all of following:

a.    It is in the best interest of the city.

b.    It was competitively awarded using a process that complies with the policies, rules and regulations as approved by the purchasing agent or their designee. (Ord. 517 §2(part), 2016).

3.12.051 Determination of lowest responsible bid.

In determining the lowest responsible bid, criteria will include, but not be limited to, the following:

A.    The extent to which the offer meets the requirements and specifications of the city;

B.    Long-term and short-term costs to the city, including maintenance;

C.    Impact on operational efficiency, which includes delivery requirements;

D.    Reliability of the suppliers to provide and warranty the items procured;

E.    Financial stability of the bidder. (Ord. 517 §2(part), 2016).

3.12.052 Bidder protest procedures.

The following procedures shall apply to bidder protest(s):

A.    Grounds for Protest: Authority to protest shall be limited to bidding vendors. A written protest may be filed based on the following grounds:

1.    Failure of the city to apply correctly the standards of review, evaluation, or scoring of a bid or proposal as specified in the solicitation documents.

2.    Such other grounds as would create a cause of action at law or in equity.

B.    Bidder protests must be submitted in writing within five (5) business days prior to award of contract. Protests will be accepted in person or via mail; either delivery shall be to City of Greenfield, Administrative Service Department, 599 El Camino Real, Greenfield CA 93927. Once the bid protest package has been received, follow-up communications in reference to the bid protest may be made to the administrative services department by telephone, fax, or e-mail.

The written formal protest must contain the following:

1.    Identification of the specific city purchasing code or other statutory or regulatory provision(s) that the buyer or department is alleged to have violated;

2.    Description of each act alleged to have violated the statutory or regulatory provision(s) identified above;

3.    A precise statement of the relevant facts that includes dates, timelines and involved parties, and all supporting documents. Supporting documentation not submitted within the five (5) business days may not be reviewed;

4.    An identification of the issue(s) that need to be resolved that support the protest;

5.    A statement of the form of relief requested.

C.    If a timely protest is filed, administrative services shall notify the involved department(s) and any further action related to the bidding process shall be suspended until a determination is made on the merits of the protest.

D.    Administrative services will conduct an investigation, gather information, prepare documentation of its findings and make a decision as to the protest and so inform the involved department(s). administrative services will then notify the protest bidder(s), in writing.

E.    The notice to the protester shall state the basis of bidder’s protest(s), the results of the investigation, findings and reasons for the action taken and delivered, in writing, to the protesting bidder(s). (Ord. 517 §2(part), 2016).

3.12.053 Contracts for professional services.

Professional services are defined as those provided by a person or firm engaged in a profession based on a generally recognized special knowledge or skill, including, but not limited to, the professions of accountant, attorney, artist, architect, engineer, environmental consultant, dentist, physician, training or educational consultant, or surveyor, and whose services are considered distinct and unique to such a degree that bidding of such services would not be feasible.

A.    Formal Contracts: Award of contracts for services of a professional nature valued at twenty-five thousand dollars ($25,000.00) or more shall be subject to city council approval pursuant to the procedure prescribed herein.

1.    Request for Proposal: When selecting providers of professional services, requests for proposal shall be used when feasible. Requests for proposal shall specify the deadline and place for submission, the nature of the services required, and the selection criteria to be used for awarding the contract.

2.    Award of Contract: Except as otherwise provided herein, the city council shall award a contract based on firm qualifications, experience and responsiveness, in addition to any other criteria set forth in the request for proposal.

3.    Rejection of Proposals: The city council may reject any and all proposals submitted and may, in its discretion, readvertise for other proposals.

B.    Informal Proposal: Contracts for professional services in excess of two thousand five hundred dollars ($2,500.00) but not exceeding twenty-five thousand dollars ($25,000.00), may be made by the city informally without observing the procedures prescribed in subsection A of this section. Such contracts shall, unless infeasible, be based on at least three (3) informal proposals and shall be awarded based on firm qualifications, experience and responsiveness, in addition to other appropriate criteria.

C.    Contracts Less Than Two Thousand Five Hundred Dollars ($2,500.00): Contracts estimated to be less than two thousand five hundred dollars ($2,500.00) in cost may be let without informal proposals subject, however, to fair, just and equitable contract terms and conditions. (Ord. 517 §2(part), 2016).

3.12.060 Purchases by purchasing agent and city manager only.

All purchases whatsoever shall be made only by the purchasing agent or, where specifically provided for in this article, by the city manager, and no such purchase for the use of the city or any department thereof shall be valid or binding upon the city unless made by the purchasing agent or where authorized by the city manager. (Ord. 517 §2(part), 2016).

3.12.061 Splitting purchases prohibited.

No acquisition of equipment, materials, supplies, or contractual services from a single vendor or provider shall be accomplished by the issuance of several purchase orders for portions thereof. (Ord. 517 §2(part), 2016).

3.12.062 Inspection and testing.

The city shall inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The city shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Ord. 517 §2(part), 2016).

3.12.063 Surplus supplies and equipment.

The city shall have authority to, in the most equitable manner, dispose of all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment. (Ord. 517 §2(part), 2016).

3.12.064 Conflicts of interest in contracts.

In accordance with Government Code section 1090, no contract for any purchase of goods, labor or service or any sale of city property in which any officer or employee is or becomes interested shall be allowed, and the resulting contract or sale shall be void. (Ord. 517 §2(part), 2016).

3.12.065 Interference with, misleading, etc., bidders prohibited.

No officer or employee of the city shall aid or assist a bidder in securing a contract to furnish labor, materials or other supplies or favor one bidder over another, or give or withhold information from any bidder not given or withheld from all other bidders, or willfully mislead any bidder in regard to the character of the materials or supplies of a quality inferior to that called for by the contract or knowingly certify to a greater amount of labor performed or material or supplies furnished than has, respectively, been performed or received. (Ord. 517 §2(part), 2016).

3.12.066 Acceptance of gifts, etc., by city employees prohibited.

No officer or employee of the city may accept, directly or indirectly, any gift, rebate, money, or anything else of value whatsoever from any person or entity if the gift, rebate, money, or item of value is intended as a reward or inducement for conducting business, placing orders with, or otherwise using the employee’s position to favor the contributor. Promotional items of nominal value, such as calendars, pens, balloons, etc., shall not constitute a gift if received as a nonpersonal item by the officer or employee, and the item is distributed to customers or potential customers routinely by the contributor. (Ord. 517 §2(part), 2016).

3.12.070 Local purchasing preference.

Local businesses contribute significantly to the economic health of the city and to the quality of life of the city’s residents and visitors. The Greenfield city council encourages the growth of local businesses by means of increasing the participation of local businesses in the city’s purchasing of goods and services through the adoption and the implementation of local purchasing regulations. Current purchasing regulations maximize competition and allow the city to obtain the best price and value for its purchases and contracts and allow for efficient procurement of goods and services with a minimum expenditure of administrative resources. Open competition is a fundamental component of the city’s procurement process and this will continue through implementation of the city’s local purchasing regulations. (Ord. 517 §2(part), 2016).

3.12.071 Definitions.

A.    "Bid" or "bids" shall include any competitive bid submitted at the invitation of the city.

B.    "Bidder" shall mean any person, including any corporation or other business entity, who submits a response to a competitive invitation from the city.

C.    "City" shall mean the city of Greenfield acting through the city council, the city manager, the purchasing agent or such other person who is authorized under the city code or otherwise duly designated to procure and execute contracts on behalf of the city.

D.    "Local business enterprise" means a business enterprise, including but not limited to a sole proprietorship, partnership or corporation, which has a legitimate business presence in the city of Greenfield. Evidence of a legitimate business presence in the city of Greenfield shall include:

1.    Having a current city of Greenfield business license;

2.    Having its principal business office within the city of Greenfield and employing at least one full-time employee within the city of Greenfield;

3.    Being current on all city of Greenfield taxes, fees, assessments, and fines;

4.    Not subject to enforcement action by the city or in litigation with the city;

5.    Began doing business within the city of Greenfield at least one year prior to the city’s inviting bids or quotations for the respective purchases or is a newly established business enterprise which is owned by an individual(s) formerly employed by a local business enterprise, as defined in this subsection, for at least two (2) years immediately prior to the issuance of either a request for competitive bids or request for qualifications from the city; and

6.    Submitting a declaration of local business enterprise on a form provided by the city.

E.    "Purchase" shall mean the acquisition of those supplies, materials, equipment or service bought in a single transaction from a single vendor.

F.    "Responsible" shall mean a bidder’s quality, fitness, and capacity to perform or otherwise meet the particular requirements of the proposed work or service.

G.    "Responsive" shall mean a bidder’s compliance with the solicitation instructions. (Ord. 517 §2(part), 2016).

3.12.072 Application of local purchasing preference--Procurement of goods, supplies, equipment, materials, services where price is the determining factor.

For purchases and procurements of goods, supplies, equipment, materials, and services where price is the determinative factor, the local preference established under this article shall be applied as follows:

A.    In determining the lowest responsible, responsive bidder, bidders who qualify as a local business enterprise shall receive a ten percent (10%) preference. If application of the ten percent (10%) preference results in a responsible, responsive local business enterprise’s bid being at or lower than the nonlocal business enterprise, the contract shall be awarded to the local business enterprise at the local business enterprise’s bid amount.

B.    If equal bids are submitted by a local business enterprise and a nonlocal business enterprise, the contract shall be awarded to the local business enterprise. (Ord. 517 §2(part), 2016).

3.12.073 Application of local purchasing preference--Procurement of services where price is not the determining factor.

Where competitive bidding is utilized for those services where price is not the determining factor and where such services would otherwise be excepted from the competitive bidding requirements including but not limited to contracts covered by the Little Brooks Act (California Government Code section 4525 et seq.) the local preference established under this article shall be applied as follows:

A.    In determining the best qualified and responsible, responsive bidder, bidders who qualify as a local business enterprise shall receive a credit of ten percent (10%) of the total points.

B.    If equal scores result from the evaluation process for a local business enterprise and a nonlocal business enterprise, the contract shall be awarded to the local business enterprise. (Ord. 517 §2(part), 2016).

3.12.074 Application of local purchasing preference--Public works contracts.

Consistent with the competitive bidding requirement of this article, a local preference shall be applied to public works contracts as follows:

A.    For purposes of this section only and the application of the local preference for public works contracts, a local business provider shall be defined as:

1.    Having a current city of Greenfield business license;

2.    Having its principal business office established at an office space and not a personal residence located within the tri-county area (Monterey County, San Benito County, Santa Cruz County) and employing at least one full-time employee within the tri-county area;

3.    Being current on all city of Greenfield taxes, fees, assessments, and fines;

4.    Not subject to enforcement action by the city or in litigation with the city;

5.    Began doing business within the tri-county area at least two (2) years prior to the city’s inviting bids or quotations for the respective project or is a newly established business enterprise which is owned by an individual(s) formerly employed by a local business enterprise, as defined in this section, for at least two (2) years immediately prior to the issuance of either a request for competitive bids or request for qualifications from the city;

6.    Submitting a declaration of local business enterprise on a form provided by the city.

B.    In determining the lowest responsible, responsive bidder, bidders who qualify as a local business enterprise shall receive a five percent (5%) preference. If application of the five percent (5%) preference results in a responsible, responsive local business enterprise’s bid being at or lower than the nonlocal business enterprise, the contract shall be awarded to the local business enterprise at the local business enterprise’s bid amount.

C.    If equal bids are submitted by a local business enterprise and a nonlocal business enterprise after application of the five percent (5%) local preference, the contract shall be awarded to the local business enterprise. (Ord. 517 §2(part), 2016).

3.12.075 Exceptions to local purchasing preference.

The local preferences established in this article shall not be applicable to:

A.    Public works contracts where the funding or applicable regulations prohibit the use of preferences.

B.    Grant agreements where use of a preference is prohibited.

C.    Agreements for the design, fabrication or installation of art.

D.    Sole source purchases where the supplies, materials or equipment can be obtained from only one vendor or manufacturer.

E.    Unique services purchases where the purchasing agent and the city council determine that an unusual circumstance or situation exists that makes the application of the local preference contrary to the public interest.

F.    Leases, licenses or other interests in property.

G.    Cooperative purchasing.

H.    Emergency purchases.

I.    Purchases where the funding source prohibits the use of preferences. (Ord. 517 §2(part), 2016).

3.12.076 Violations and sanctions.

Any person who submits false information or fails to disclose material information in order to qualify for the local preference pursuant to this article shall:

A.    Pay the city any difference between the contract amount and what the city’s cost would have been if the contract had been properly awarded; and

B.    Be prohibited from bidding on any city contract or receiving any city contract for a period of three (3) years of the discovery of facts supporting the same.

C.    Any person who is sanctioned pursuant to this section may appeal the sanction to the city council. Appeals shall be in writing, shall be submitted to the city clerk within ten (10) days of the date of the sanction, and shall clearly state the basis of the appeal. Grounds not stated in the appeal may not be considered. (Ord. 517 §2(part), 2016).

Article II. Local Hiring for Public Works Projects

3.12.080 Purpose.

The purpose of this article is to create a policy that encourages contractors who receive city public works contracts to hire residents of the Monterey Bay area. Unless excepted under section 3.12.082, all city contracts for public works subject to the formal bidding requirements set forth in section 3.12.040A shall contain provisions pursuant to which the contractor promises to make a good-faith effort to hire qualified individuals who are residents of the Monterey Bay area in sufficient numbers so that no less than fifty percent (50%) of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, is comprised of Monterey Bay area residents. (Ord. 517 §2(part), 2016).

3.12.081 Definitions.

Unless the context otherwise requires, the following definitions shall govern the construction of this article:

A.    "Contractor" means any person or entity, which, pursuant to a written agreement or purchase order, provides labor or materials on public works projects for the city.

B.    "Days" means calendar days unless otherwise specified.

C.    "Qualified individual" means a person who is specially trained, skilled, and experienced in the work, trade, or craft specified in the portion of the public work of improvement to be performed or who is enrolled in a certified state or federally approved apprenticeship program in the applicable trade or who is a journey person in his or her applicable trade.

D.    "Monterey Bay area" includes the counties of Monterey, San Benito and Santa Cruz.

E.    "Public works project" means a project of public works improvement which is let by contact pursuant to the formal bidding procedures set forth in section 3.12.040A.

F.    "Resident of the Monterey Bay area" means an individual who is domiciled within the boundaries of the Monterey Bay area immediately preceding the date of the bid advertisement by the city and who can verify his or her domicile upon request of the contractor or city by producing documentation such as rent/lease agreement, telephone and utility bills or payment bills, a valid California driver’s license or identification card, and/or any other similar, reliable evidence that verifies that the individual is domiciled within the Monterey Bay area.

G.    "Subcontractor" means any person or entity which, pursuant to an agreement or purchase order with a city contractor or another subcontractor, participates in the provision of labor or materials on public works projects for the city. (Ord. 517 §2(part), 2016).

3.12.082 Exceptions.

The provisions of this article shall not apply under the following circumstances:

A.    Whenever a state or federal law or regulation applicable to a particular contract prohibits the provision of a local hire requirement; or

B.    Whenever the city, in accordance with the requirements of this code or state law, determines that the contract is necessary to respond to an emergency which endangers the public health, safety, or welfare; or

C.    Whenever the city determines that a suitable pool of persons providing specialized skills does not exist locally for a specific public works project.

Whenever an exception is imposed, the basis of the exception shall be included in the staff report to the city council. (Ord. 517 §2(part), 2016).

3.12.083 Requirements for contractors submitting bids.

A.    A contractor who is submitting a formal bid to the city for a public works project must promise to make a good-faith effort to hire qualified individuals who are residents of the Monterey Bay area in sufficient numbers so that no less than fifty percent (50%) of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, is comprised of Monterey Bay area residents.

B.    A "good-faith" effort means the contractor will take the following or similar actions to recruit and maintain Monterey Bay area residents as part of the construction workforce:

1.    Contact local recruitment sources to identify qualified individuals who are Monterey Bay area residents;

2.    Advertise for qualified Monterey Bay area residents in trade papers and newspapers of general circulation in the area, unless time limits imposed by city do not permit such advertising;

3.    If portions of the work are to be performed by subcontractors, identify qualified subcontractors whose workforce includes Monterey Bay area residents; and

4.    Develop a written plan to recruit Monterey Bay area residents as part of the construction workforce.

C.    Every bidder must complete and sign under penalty of perjury a Certification of Good-Faith Effort to Hire Monterey Bay Area Residents, on the form provided in the city’s bid package, and submit said certification with the sealed bid no later than the date and time of the bid opening. Bidder shall attach to the certificate documentary evidence supporting bidder’s promise to meet or make a good-faith effort to meet the local hiring goal.

D.    Contractor shall include in each and every subcontract relating to the project the requirement that the subcontractor promises to make a good-faith effort to hire qualified individuals who are residents of the Monterey Bay area. Contractor shall be responsible for subcontractor’s compliance under this article.

E.    Prior to submitting bids, bidders shall ensure that any and all subcontractors listed in their bids are not disqualified at that time pursuant to section 3.12.088. Prospective contractors may consult the list, available from the city clerk, of contractors and subcontractors, if any, who are currently disqualified.

F.    Contractors who have been disqualified pursuant to section 3.12.088 may not submit bids during the period of disqualification. Any bid received from a bidder who is currently disqualified will be returned to the bidder unopened. (Ord. 517 §2(part), 2016).

3.12.084 Requirements for prospective subcontractors.

A.    Any subcontractor for work, laborers or materialmen relating to a project subject to this article will be required, in his or her contract with the prime contractor, to promise to make a good-faith effort to hire qualified individuals who are residents of the Monterey Bay area.

B.    A "good-faith effort" means the subcontractor will take actions such as those required of contractors pursuant to section 3.12.083B to recruit and maintain Monterey Bay area residents as part of subcontractor’s workforce. Subcontractor shall maintain documentary evidence of such actions.

C.    Subcontractors who have been disqualified pursuant to section 3.12.088 may not be listed in a prime contractor’s bid for a city public works project and may not submit bids during the period of disqualification.

3.12.085 Nonresponsive bids.

The city may declare a bid to be nonresponsive under the provisions of this article for good cause including, but not limited to, the following circumstances:

A.    If a bidder fails to complete and sign under penalty of perjury the Certification of Good-Faith Effort to Hire Monterey Bay Area Residents and to submit said certification with his or her sealed bid no later than the date and time of the bid opening; or

B.    If a bidder fails to comply with the good-faith effort requirements set forth in section 3.12.083B; or

C.    If a bidder or a subcontractor listed by the bidder has been disqualified pursuant to section 3.12.088 or any other disqualification action. (Ord. 517 §2(part), 2016).

3.12.086 Required documentation.

During the performance of the contract, the contractor shall keep an accurate record on a standardized form showing the name, place of residence, trade classification, hours employed, proof of qualified individual status, per diem wages and benefits of each person employed by the contractor on the specific public works project, including full-time, part-time, permanent and temporary employees. Contractor shall require any and all subcontractors on the project to maintain records of the same information for subcontractor’s workforce on the project and shall require subcontractor to provide a copy of those records to contractor upon contractor’s request. Contractor shall make contractor’s and subcontractor’s records available to the city, upon request, within five (5) working days. (Ord. 517 §2(part), 2016).

3.12.087 Forms submitted under penalty of perjury.

All forms required under this article shall be attested to as true as to the information set forth therein and shall be submitted under penalty of perjury. (Ord. 517 §2(part), 2016).

3.12.088 Disqualification.

If the city finds that a contractor to whom a city contract for public works has been awarded, or a subcontractor listed by contractor on a public works project, has failed to comply with the good-faith hiring provisions of section 3.12.083B during the performance of the contract, the city may disqualify the contractor and/or subcontractor from bidding or being listed in any bid on any city contract for public works for a period of one year from the date of the city’s disqualification for a period of three (3) years. The administrative service department shall keep a current list of all disqualified contractors and subcontractors on file. (Ord. 517 §2(part), 2016).

Article III. Other Provisions

3.12.090 City attorney prosecution.

If the city attorney has reasonable cause to believe that any contractor or subcontractor has knowingly committed any of the acts or omissions set forth in this article, the city attorney may prosecute pursuant to the provisions of Chapter 1.10, Civil Enforcement. (Ord. 517 §2(part), 2016).

3.12.091 Appeals.

To avoid results inconsistent with the purposes of this article, decisions of the department head or city manager, other than bid protests which are heard separately under section 3.12.052, may be appealed by the affected contractor to the city council.

A.    Appeals by Contractor: Appeals of decisions shall be initiated within ten (10) days of the decision. The city shall be considered an interested party.

B.    Time Limits: When the appeal period ends on a day when the city offices are not open to the public for business, the time limits shall be extended to the next full working day. (Ord. 517 §2(part), 2016).

3.12.092 Initiation of appeals.

A.    Filing of Appeals: An appeal shall be filed with the city clerk on a form provided and shall state, as appropriate, any of the following:

1.    A determination or interpretation is not in accord with the purposes of this article;

2.    There was an error or abuse of discretion;

3.    The record includes inaccurate information; or

4.    A decision is not supported by the record.

B.    Effect on Decisions: Decisions that are appealed shall not become effective until the appeal is resolved. (Ord. 517 §2(part), 2016).

3.12.093 Appeal procedure.

A.    Appeal Hearing Date: An appeal shall be scheduled for a hearing before the city council within thirty (30) days of the city’s receipt of an appeal unless the contractor and city consent to a later date.

B.    Notice and Public Hearing: An appeal hearing shall be a public hearing. Notice of the public hearing shall be mailed or delivered to the contractor within ten (10) days.

C.    Hearing: At the hearing, the city council shall review the record of the decision and hear testimony of the contractor and any other interested party.

D.    Decision and Notice: After the hearing, the council shall affirm, modify or reverse the original decision. When a decision is modified or reversed, the council shall state the specific reasons for modification or reversal. The city clerk shall mail notice of a city council decision. Such notice shall be mailed to the contractor within five (5) working days after the date of the decision and to any other party requesting such notice.

E.    A decision by the council regarding an appeal shall become final on the date the decision is announced to the public. (Ord. 517 §2(part), 2016).

3.12.094 Rules and regulations.

The city manager shall adopt an administrative memorandum relating to rules, regulations and procedures to implement this article. The administrative memorandum shall be consistent with the provisions of this article. (Ord. 517 §2(part), 2016).


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    See Gov.C. §54201 et seq.