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(b) (c) (d) (e) All bids on reverse auctions shall be posted electronically on the Internet, updated on a real-time basis, and shall allow registered bidders to lower the price of their bid below the lowest bid posted on the Internet. The purchasing manager shall require vendors to register before the reverse auction opening date and time, and as part of the registration, agree to any terms and conditions and other requirements of the solicitation. The purchasing manager may require vendors to be prequalified prior to placing bids in a reverse auction. For purposes of this section, "reverse auction" means a competitive online solicitation process for fungible goodS or services in which vendors compete against each other online in real time in an open and interactive environment. The reverse auction process may not be used for bidding on any construction contract that is subject to Section 422 of the City Charter. Section 11. Section 2-807 of the Santa Ana Municipal Code is hereby amended such that it reads as follows: Sec. 2-807. Non-bid purchases. The following contracts may be exempted from competitive bidding through an open market purchase by the purchasing manager, and confirmed by the city council in the case of contracts for over twenty five thousand dollars ($25,000.00), but shall nevertheless be entered into only after compliance with the rules established by the purchasing manager, which shall include the review of such alternative sources of supply or performance as may be available in competition with one another and selection therefrom on the basis of obtaining maximum quality at minimum costs: (a) Purchases of materials, supplies, labor, and equipment whenever it shall appear that there is only one reasonably available source or where solicitation of bids would for any reason be an idle act. (b) Purchases of materials, supplies, labor, and equipment necessary for the preservation of life, health or property, following the declaration of a state of emergency in the city upon the affirmative vote of at least two-thirds (2/3) of the members of the city council. (c) Situations where no bids are received or all bids are rejected and the city council determines, upon the affirmative vote of at least two-thirds (2/3) of its members, that the materials, supplies, labor or equipment can be obtained at a lower cost. Ordinance No. NS-2742 Page 7 of 9