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AGREEMENT FOR PROFESSIONAL SERVICES
CONTRACT ADMINISTRATION AND INSPECTION SERVICES
FOR WATER SUPPLY WELL NO. 15 EQUIPPING PROJECT
This Agreement is made on October 21, 2025 by and between MNS Engineers, Inc. , a California Corporation (“Contractor”), and the City of Santa Maria , a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:
WHEREAS, City has determined that Contract Administration and Inspection Services for Water Supply Well No. 15 Equipping (the “Project”) involves performance of services of a temporary nature; and
WHEREAS, City does not have available employees to perform the services for the Project; and
WHEREAS, following an advertised Request for Proposals process, City selected Contractor based on their submitted proposal dated August 14, 2025, and based on Contractor’s qualifications to perform the Project; and
WHEREAS, on October 21, 2025, the City Council adopted a resolution to approve the execution of this Agreement; and
WHEREAS, City has determined Contractor’s rates were fair and reasonable compared to other firms performing similar services; and
WHEREAS, City has requested Contractor perform the services for the Project; and
WHEREAS, Contractor is registered or licensed in California to perform the services for the Project.
NOW, THEREFORE, IT IS AGREED:
1. Recitals true. The above recitals are true.
2. General.
2.01 Term and Termination. The term of this Agreement begins on the first date written above and ends at 11:59 p.m. on June 30, 2027, or Project completion, whichever occurs first. This Agreement may be extended by mutual consent of the parties. This Agreement may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state, or federal law. Termination is effective fourteen (14) days after deposit of notice as specified in this Agreement.
2.02 Services to be Performed. Contractor shall determine the method, details , and means of providing services for the Project. More specifically, Contractor agrees to perform the specific services listed in Exhibit “A.”
2.03 City’s Duties. City’s duties under this Agreement are to cooperate with the Contractor in the performance of the Agreement and timely pay invoices.
2.04 Payment. Payment terms under this Agreement are listed in Exhibit “B.”
2.05 Insurance. Contractor shall provide insurance as listed in Exhibit “C.” ATTACHMENT "B"
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2.06 Prevailing Wage. Where applicable, Contractor shall follow the prevailing wage requirements as listed in Exhibit “D” and applicable law.
2.07 Exhibits. Exhibits “A”, “B”, “C”, and “D” are attached and incorporated.
3. Contractor’s Obligations.
3.01 Minimum Amount of Service. Contractor shall devote sufficient time to perform services under this Agreement efficiently and effectively. Contractor may represent, perform services for and be employed by additional individuals or entities, in Contractor ’s sole discretion, as long as the performance of these extracontractual services does not interfere with or present a conflict with the City's business.
3.02 Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.
3.03 Status. Contractor (including its employees) is an independent Contractor.
No employer/employee relationship exists between Contractor and City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of City. City is not required to make any deductions or withholdings from the compensation payable to Contractor under this Agreement.
3.04 Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute r esolution) regardless of nature or type that arise out of , pertain to, or relate to the negligence, reckless or willful misconduct of Contractor, or the acts or omissions of an employee, agent or subcontractor of Contractor . The provisions of this paragraph survive completion of the services or the termination of this contract.
The provisions of this section are not limited by the provisions of the section relating to insurance.
4. Miscellaneous
4.01 Notices. All communication relating to the day -to-day activities of this Agreement shall be exchanged between a designated representative of City and a representative of Contractor, listed below . All notices shall be addressed as follows unless a written change is filed with the City:
City: Contractor:
Attn: Shad Springer Attn: Joseph Pope
City of Santa Maria MNS Engineers, Inc.
Utilities Department 201 North Calle Cesar Chavez
2065 East Main Street Suite 300
Santa Maria, CA 93454 Santa Barbara, CA 93103
If the designated Representative or address of either party changes during the term of this Agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this Agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.
4.02 Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this Agreement.
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4.03 Integration. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties.
4.04 Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California.
4.05 Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of California.
4.06 Warranty of authority. Each person signing this Agreement on behalf of a party warrants that he or she has authority to do so.
4.07 No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.
4.08 Severability. The provisions of this Agreement are severable. If any part of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.
4.09 Submittals. In addition to any other submittals required by this Agreement, Contractor shall submit copies of its current business license and current certificate of workers compensation coverage to the City before beginning work on this Project.
4.10 Prevailing Wage. If applicable, Contractor and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. Further requirements are attached as Exhibit “D”.
CONTINUED ON NEXT PAGE
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IN WITNESS WHEREOF , this Agreement is executed by the parties on the date first written above.
“Contractor” “City”
MNS ENGINEERS, INC. CITY OF SANTA MARIA
By: By:
JOSEPH POPE, P.E., QSD/QSP SHAD S. SPRINGER, P.E., MPA Vice President Director of Utilities
ATTEST
By:
DONNA SCHWARTZ
Chief Deputy City Clerk
APPROVED AS TO FORM
Risk Manager
City Attorney
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EXHIBIT “A”
SERVICES TO BE PROVIDED
PROJECT UNDERSTANDING
The City is undertaking drilling and equipping a new 2,200 GPM potable water well, Well #15, at a new 0.35-acre site immediately adjacent to the Santa Maria Airport airfield. Drilling of the well is being completed under a separate contract with completion anticipated in December 2025.
The well equipping portion of the project includes installation of a new well pump with enclosure, sand separator, surge tank, and associated site/discharge/drain piping and appurtenances, chemical building, disinfection equipment, electrical/generator building, PG&E service, switchgear, motor control center, PLC, backup generator, and site improvements to finish the site. Contractor will provide construction management and inspection in accordance with the contract documents for the Well #15 Equipping Project.
SCOPE OF WORK
Contractor staff will support the City by providing construction management and inspection in accordance with the contract documents for the Well #15 Equipping Project per the following tasks:
Task 1. Pre-Construction
1.1 Project Kickoff
At project kickoff, Contractor will review the contract plans, specifications, permits, agreements, PG&E handouts, and environmental documents. A kickoff meeting with City staff and the Design Engineer will be held to discuss design questions and contract administration procedures.
1.2 Project Risk Matrix
Contractor, in conjunction with the City and Design Engineer, will develop and maintain a project risk matrix, identifying potential risks to project success. The risk matrix will identify the key project indicator impacted, the likelihood of occurrence, and the potential severity.
1.3 Pre-Construction Conference
Contractor will organize and lead a pre- construction meeting, preparing and distributing an agenda beforehand. The pre- construction conference will clarify project team roles, establish protocols, set a cooperative tone, and address contract requirements. Meeting minutes will be distributed to all attendees.
1.4 Site Documentation
Contractor will take pre-construction site photos to document the existing condition of the project limits prior to construction. Contractor will document construction throughout the life of the project. Photos will be logged and filed in the project files.
Task 2. Contract Administration
Contractor will develop an administration system using CMIS to ensure construction complies with contract documents and standards, organizing files and forms to track correspondence, Atty. rev. Oct 2025; Risk rev. Oct 2025 Page 6 of 19
submittals, Requests for Information (RFIs), Construction Change Orders (CCOs), and progress payments. Contract administration includes but is not limited to:
• Daily diaries
• Labor compliance and certified payrolls
• Logs for submittals, RFIs, CCOs, and materials testing results • Correspondence, permits, and agreements
• Progress schedule/Weekly Statement of Working Days (WSWDs) • Progress pay estimates and quantities
• Potential claims
• Safety and traffic control
• Material verification
• Biweekly meetings agenda and minutes
2.1 Develop Material and Equipment Inspection and Testing Plan
Contractor will develop and submit for City approval a material and equipment inspection and testing plan detailing personnel responsibilities, required tests, schedules, procedures, acceptance criteria, and special inspection needs, following a “start wit h the end in mind” approach.
2.2 Project Communication and Coordination
The Construction Manager (CM) will manage communication and coordination among the City, Design Engineer, residents, and Construction Contractor during construction. Weekly updates to the City will highlight upcoming public impacts. Bi-weekly progress meetings will cover project status, the Construction Contractor’s lookahead schedule, City operations coordination, issues/resolutions, RFI/submittal status, QA/QC, environmental compliance, and CCOs. The CM will prepare agendas and record meeting minutes.
2.3 Submittals/RFIs
Contractor will perform a timely review of submittals and RFIs, which will be reviewed for completeness, logged, and distributed as appropriate for technical review. Contractor will monitor the log to verify responses are submitted in a timely manner.
2.4 Project Schedule Adherence
The CM will review and approve the Construction Contractor’s baseline schedule at the start of the project. The CM will require and review three- week look -ahead schedules from the Construction Contractor on a weekly basis. The Construction Contractor will be issued WSWDs to document the progress of the work and the number of working days expended.
2.5 CCO and Claims Management
Before contract work begins, Contractor will coordinate with the City to define the CCO process.
All CCOs must specify scope and limits and comply with project documents. Contractor will proactively identify issues and pursue timely, cost-effective solutions. The CM will:
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• Determine the validity and justification for all CCOs • Notify the City if CCOs are needed
• Negotiate costs with the Construction Contractor
• Prepare CCO documentation for City authorization
• Track all CCOs against project contingency balance
The CM will work closely with the City, Design Engineer, and the Construction Contractor to resolve CCOs and/or disputes.
2.6 Permit Management
Contractor will monitor the construction to ensure all items of work are performed in accordance with encroachment permits, stormwater pollution control requirements, environmental permits, mitigation measures, and FAA requirements.
2.7 Cost Control
The project’s document control system will track and monitor actual construction costs, incorporating contract item payments and quantities into the progress payment spreadsheet.
CCO payments, extra work, and item overruns/underruns will also be tracked, w ith the contingency balance verified during monthly progress pay estimate reviews and submittals.
2.8 Progress Pay Estimate
Contractor will track contract items and review quantities for each progress pay estimate. The Construction Inspector will monitor extra and supplemental work costs against authorized change orders. Contractor will review the Construction Contractor’s mont hly payment request and recommend approval to the City.
2.9 CM Monthly Report
The CM will prepare monthly reports covering past and upcoming construction activities, schedule analysis, budget tracking, PCO and progress payment summaries, submittal/RFI status, environmental compliance, risk log updates, and progress photos. Reports w ill be distributed electronically to the City and others as requested.
2.10 Startup, Testing, and Commissioning
Contractor will oversee commissioning of the well site, including pressure testing, disinfection, sampling, tie-in, mechanical, electrical and instrumentation testing, loop checks, and SCADA testing.
2.11 Preliminary/Final Walkthroughs and Punchlists
Contractor prioritizes short punchlists by continuously coordinating with the Construction Contractor to address issues during the project. The CM/Inspector will conduct a preliminary walkthrough with the Construction Contractor and City staff to identify defects and outstanding items, prepare and submit a final punch list to the Construction Contractor, and perform a final inspection with City representatives before project acceptance.
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2.12 Construction Survey Quality Assurance
Contractor’s in-house survey team will perform field surveying and office support to verify the project’s provided survey control, boundary establishment, and recorded easement locations.
Survey control will be verified through the use of local traverse and GPS methods. Existing topography and design conforms will also be measured to ensure mapping meets minimum accuracy standards. Contractor will verify the applicable property boundaries and easements based on found monumentation, available county records , and provided easement documentation.
2.13 Closeout
Once the Construction Contractor provides the required documentation, Contractor will submit an acceptance recommendation report with the final pay request for payment. Contractor will submit job files and final reports to the City upon completion of the contract.
Task 3. Construction
3.1 Construction Inspection
The Construction Inspector will be on- site to observe the work with the goal of verifying it is performed safely and in accordance with the contract documents. The Construction Inspector’s responsibilities will also include:
• Inspection Coverage: Contractor aims to inspect construction for compliance with plans and specifications, coordinating daily with the Construction Contractor and adjusting inspection coverage based on operations and crew. The proposal budgets conservatively, but inspection levels may be reduced if work quality is high and trust is established with the Construction Contractor.
• Quality Assurance: Assure the Construction Contractor’s overall QC Plan is implemented in a manner consistent with the Project's Special Provisions. • Traffic Control/No Parking Zones: Inspect the Construction Contractor’s traffic control per approved standards. Notify the Construction Contractor of any perceived unsafe conditions.
• Daily Reports: Prepare daily inspection reports documenting work, labor, equipment, quantities, safety issues, extra work or plan changes, environmental mitigation observations, PG&E operations, and deficiencies. Maintain a photographic record of construction.
• Materials: Verify approved materials are incorporated into the project. • Acceptance/Performance Testing: Coordinate acceptance and performance testing in conformance with the contract documents.
• Materials Testing/Special Inspection: Coordinate with Earth Systems as needed and maintain testing records with current tester and laboratory certifications placed in the construction file.
• MMRP Coordination: Provide coordination with environmental monitors and monitor mitigation efforts for compliance with the MMRP.
• SWPPP Compliance Monitoring: Monitor SWPPP compliance efforts, including installation and maintenance of BMPs.
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• Groundwater Monitoring (as needed): Monitor and report trench and well dewatering activities including quantities, groundwater quality, contaminated groundwater treatment efforts, and groundwater disposal.
• Punch List: Prepare punch list and inspect for completion of punch list work items.
3.2 Safety
The Construction Contractor is solely responsible for safety compliance, while Contractor monitors their safety program and informs the City of any deficiencies. Inspectors follow the Construction Contractor’s Safety Plan, Traffic Control Plan, and Cal/OSHA Construction Safety Orders to oversee the work.
3.3 Red Line As-Builts
Contractor will track and maintain as -built drawings per contract requirements, ensuring completeness. The CM will hold regular meetings with the Construction Contractor to monitor as-built drawing status, often a contingency for monthly pay approval. The inspector will keep a field set of as-builts to review the Construction Contractor’s copy.
Task 4. Electrical and Mechanical Systems Testing, Observation, and Inspection
4.1 Installation Observation of Electrical and Mechanical Systems
Contractor will closely monitor electrical and mechanical system installation to ensure compliance with contract documents, codes, regulations, and industry standards. Equipment will be inspected upon delivery with the Construction Contractor to confirm conformity with approved submittals and specifications.
4.2 Field Testing and Commissioning Observation
Contractor will begin field testing, startup and commissioning coordination with the Construction Contractor early on in the project. Contractor will witness and document testing of mechanical, power, automation, and communication systems as required in the Contract Documents.
Task 5. Engineering Support Services During Construction
Contractor staff will support the City by providing technical review and engineering support through the construction process as described in the following subtasks. Contractor is not the Engineer of Record (EOR), and will not be responsible for the accuracy or correctness of the design documents, prepared by others.
5.1 Construction Meetings
Contractor’s Engineering Project Manager will attend the virtual pre- construction meeting.
Contractor has budgeted for the Project Manager to attend bi-weekly virtual meetings and three site visits during construction.
5.2 Submittal Review
Contractor will review the Construction Contractor’s shop drawings and submittals for conformance with the Project drawings and specifications. For budgeting, 45 submittals with 20 Atty. rev. Oct 2025; Risk rev. Oct 2025 Page 10 of 19
requiring re- submittal have been assumed. Contractor will prepare a Shop Drawing Review Letter (SDRL) for each submittal and maintain a Submittal Log. All submittals and SDRLs will be transmitted electronically.
5.3 Respond to RFIs/RFCs
Contractor will prepare responses to requests for information/clarification (RFI/RFCs) forwarded by the City from the Construction Contractor, or develop recommendations based on changed field conditions based on interpretation of the contract documents. I f the intent of the contract documents is unclear, Contractor will coordinate with the City to contact the EOR for clarification of the design intent. A total of 10 RFIs/RFCs responses have been assumed.
5.4 Witnessed Factory Acceptance Testing (FAT)
Contractor’s electrical subconsultant, J. Calton Engineering, will provide witness to the electrical gear FAT. Two days for travel and testing witness has been assumed.
5.5 Prepare Contract Change Order Documents
Based on required design changes or changed field conditions, Contractor will prepare design modification documents in support of change order requests from the Construction Contractor.
Two change order requests have been assumed.
5.6 Project Closeout
Contractor will support the City to close out the Project. Contractor will attend a final site walk and assist in preparing a Project punch list. Contractor will file the Notice of Completion for the Project.
5.7 Record Drawings
Contractor will prepare record drawings based on a single consolidated set of City and Construction Contractor red- line drawings provided by the City. Record drawings will be prepared using the latest version of AutoCAD and will be transmitted to the City within three weeks of receipt of red-line drawings. Electronic versions of the record drawings will be provided in both AutoCAD and Adobe PDF format. It is assumed the City will provide the drawing files in AutoCAD format.
Task 5 Deliverables:
• SDRLs
• Responses to RFIs/RFCs
• PCO Memoranda
• Punchlist
• Notice of Completion
• Record drawings
Exclusions:
• SCADA and PLC programming review and oversight.
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SCHEDULE
Contract Award September 16, 2025
Pre-Construction Meeting October 7, 2025
Notice to Proceed October 13, 2025
Contract Completion (300 working days) January 4, 2027 Pump Procurement October 2025 - June 2026
Electrical Procurement October 2025 - September 2026
Offsite Construction April 15, 2026 - August 2026
Anticipated Project Completion December 2026
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EXHIBIT “B”
PAYMENT
I. PROGRESS AUTHORIZATION
Written authorization to proceed from the City authorizes the Contractor to generate the
NOT-TO-EXCEED COST OF SIX HUNDRED TWENTY-SEVEN THOUSAND, FOUR HUNDRED SIXTY-FIVE DOLLARS AND ZERO CENTS IN FEES for all work based on the rate schedule(s) that follow.
TOTAL NOT-TO-EXCEED COSTS: $627,465.00
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II. INVOICE PROCEDURE
Payment shall be monthly based on the billable charges.
The Contractor shall present the bill for charges from the previous month.
The Contractor's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.
City may withhold payment for disputed work. Payment of fees shall not constitute an acceptance of work.
Rates shall be billed according to Contractor’s attached fee schedule, up to the not-to- exceed amount.
Work Authorized by Change Order/Amendment shall be billed at on a time and materials basis according to the attached fee schedule, unless another payment method is agreed to in writing by the City prior to initiation of work.
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EXHIBIT “C”
INSURANCE
Contractor shall procure and maintain, for the duration of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, or employees. If Contractor maintains broader coverage and/or higher limits than the minimums shown below, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Contractor.
1) Minimum Scope of Insurance
a) Coverage shall be at least as broad as:
i) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.
ii) Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1); or if Contractor has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).
iii) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
iv) Errors and Omissions liability insurance appropriate to the Contractor's profession.
Architects' and engineers' coverage is to be endorsed to include contractual liability. v) Contractor’s Pollution liability insurance applicable to the work being performed. vi) Cyber Liability insurance as applicable to the work being performed and appropriate to the Contractor’s profession. Such coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.
2) Minimum Limits of Insurance
a) Contractor shall maintain limits no less than:
i) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
ii) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. iii) Workers’ Compensation: Statutory limits.
iv) Employer's Liability: $1,000,000 per accident for bodily injury or disease. v) Errors and Omissions Liability: $1,000,000 per occurrence or claim, $2,000,000 aggregate.
vi) Contractors Pollution Liability : $2,000,000 per occurrence or claim, $2,000,000 aggregate.
vii) Cyber Liability: $2,000,000 per occurrence or claim, $2,000,000 aggregate.
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3) Self-insured Retentions
Self-insured retentions must be declared to and approved by City. City may require Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.
4) Other Insurance Provisions
a) The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
i) The City of Santa Maria, its officers, officials, employees, and volunteers are to be covered as additional insureds on the policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used). ii) For any claims related to this project, Contractor's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of Contractor's insurance and shall not contribute with it. iii) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be cancelled or reduced, except with notice stating the title of this Agreement to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested. iv) Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not City has received a waiver of subrogation endorsement from the insurer. v) If any of the required policies provide claims-made coverage:
(1) The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
(2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. (3) If coverage is cancelled or non- renewed, and not replaced with another claims - made policy form with a Retroactive Date prior to the Agreement effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
5) Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
6) Verification of Coverage
a) Contractor shall furnish City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause.
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b) All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive Contractor’s obligation to provide them. City reserves the ri ght to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications, at any time.
7) Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
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EXHIBIT “D”
PREVAILING WAGE REQUIREMENTS FOR MAINTENANCE WORK, DESIGN, AND
PRECONSTRUCTION PHASES OF CONSTRUCTION, AND INSTALLATIONS
The terms of this Exhibit apply to all public works projects for over $1,000.
For purposes of this Exhibit, “Public Works” includes any project of a type defined in California Labor Code section 1720 when paid for in whole or in part by public funds. These projects include construction, alteration, demolition, installation, or repair work done under contract. For purposes of this definition, "construction" includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of cons truction, including, but not limited to, inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this definition, "installation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.
Pursuant to California Labor Code sections 1720 and 1771, construction, alteration, demolition, installation, repair and maintenance work performed under this Agreement is subject to State prevailing wage laws. State prevailing wage laws require certain provisions to be included in all contracts for public works. The Co ntractor and any subcontractor s shall comply with all applicable State prevailing wage laws , whether included in this agreement or inadvertently omitted, including but not limited to the requirements listed below:
1) Compliance with Prevailing Wage Requirements.
Pursuant to California Labor Code sections 1720 through 1861, the Co ntractor and all subcontractors shall ensure that all workers who perform work under this Agreement are paid not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations (DIR). This includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including but not limited to inspection and land surveying work, regardless of whether any further construction wor k is conducted, and work performed during the post -construction phases of construction, including but not limited to all cleanup work at the jobsite.
1.1. Copies of such prevailing rate of per diem wages are on file at the City Public Works Department and are available for inspection to any interested party on request.
Copies of the prevailing rate of per diem wages also may be found at http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. The Co ntractor and all subcontractors shall post a copy of the prevailing rate of per diem wages determination at each job site and shall make them available to any interested party upon request.
1.2. The wage rates determined by the DIR refer to expiration dates. If the published wage rate does not refer to a predetermined wage rate to be paid after the expiration date, then the published rate of wage shall be in effect for the life of this Agreement. If the published wage rate refers to a predetermined wage rate to become effective upon expiration of the published wage rate and the predetermined wage rate is on file with the DIR, such predetermined wage rate shall become effective on the date following the expiration date and shall apply to this Agreement in the same manner as if it had Atty. rev. Oct 2025; Risk rev. Oct 2025 Page 18 of 19
been published in said publication. If the predetermined wage rate refers to one or more additional expiration dates with additional predetermined wage rates, which expiration dates occur during the life of this Agreement, each successive predetermined wag e rate shall apply to this Agreement on the date following the expiration date of the previous wage rate. If the last of such predetermined wage rates expires during the life of this Agreement, such wage rate shall apply to the balance of the Agreement.
2) Penalties for Violations.
The Contractor and all subcontractors shall comply with California Labor Code section 1775 in the event a worker is paid less than the prevailing wage rate for the work or craft in which the worker is employed. This shall be in addition to any other applicable penalties allowed under California Labor Code sections 1720 through 1861.
3) Payroll Records.
The Contractor and all subcontractors shall comply with California Labor Code section 1776, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. The Contractor shall require all subcontractors to also comply with section 1776. The Contractor and all subcontractors shall furnish records specified in section 1776 on a monthly basis, both to the City and directly to the Labor Commissioner in the manner required by California Labor Code section 1771.4.
The Contractor shall ensure its subcontractors prepare and submit payroll records to the City and the DIR as required by this section. The City may require the Contractor and its subcontractors to prepare and submit records specified in section 1776 to the City and the Labor Commissioner on a weekly basis, at no additional cost to the City.
4) Apprentices.
The Contractor and all subcontractors shall comply with California Labor Code sections 1777.5, 1777.6 and 1777.7 concerning the employment and wages of apprentices. The Contractor is responsible for compliance with this section for all apprenticeable occupations pursuant to California Labor Code section 1777.5(n).
5) Working Hours.
The Contractor and all subcontractors shall comply with California Labor Code sections 1810 through 1815, including but not limited to: (i) restrict working hours on public works contracts to eight hours a day and forty hours a week, unless all hours worked in excess of 8 hours per day are compensated at not less than 1½ times the basic rate of pay; and (ii) specify penalties to be imposed on Contractors and subcontractors of $25 per worker per day for each day the worker works more than 8 hours per day and 40 hours per week in violation of California Labor Code sections 1810 through 1815.
6) Required Provisions for Subcontracts.
The Contractor shall include, at a minimum, a copy of the following provisions in any contract they enter into with a subcontractor: California Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861.
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7) Labor Code Section 1861 Certification.
In accordance with California Labor Code section 3700, the Contractor is required to secure the payment of compensation of its employees. By signing the Agreement, to which this is an exhibit, the Contractor certifies that: “I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”
8) Compliance Monitoring and Enforcement.
This project is subject to compliance monitoring and enforcement by the DIR. The City must withhold contract payments from the Contractor as directed by the DIR, pursuant to California Labor Code Section 1727.
9) Contractor and Subcontractor Registration Requirements.
The Contractor and all subcontractors shall not engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to California Labor Code section 1725.5 Contractor certifies that the Contractor has verified that all Contractor and all subcontractor s (if any approved by City) used on this project are registered with the DIR in compliance with California Labor Code sections 1771.1 and 1725.5.
The Contractor shall provide proof of registration for themselves and all listed subcontractors to the City at the time of signature of contract and immediately upon any changes or City’s request.
10) Stop Order.
Where a Contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of California Labor Code sections 1725.5 or 1771.1, the Labor Commissioner must issue and serve a stop order prohibiting the use of the unregistered Contractor or subcontractor on all public works until the unregistered Contractor or subcontractor is registered. Failure to observe a stop order is a misdemeanor.