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AGREEMENT FOR SERVICES
ARC FLASH STUDY AND RISK ASSESSMENT SERVICES
This Agreement is made on September 16, 2026 by and between Smaart Power, LLC, a California Limited Liability Company (“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, the City has determined that the Arc Flash Study Risk Assessment Services involve the performance of services of a temporary nature (the “Project”); and
WHEREAS, the City does not have available employees to perform the services required for the Project; and
WHEREAS, the City released a Request for Proposals on April 6, 2026 to solicit proposals from qualified firms to provide Engineering Services for Arc Flash Risk Assessment for selected Water and Wastewater facilities; and
WHEREAS, the City selected Contractor based on their submitted proposal dated May 8, 2026; and
WHEREAS, the Santa Maria City Council awarded the Arc Flash Study and Risk Assessment Services (the “Agreement”) to the Contractor by Resolution at its regular meeting of September 15, 2026.
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 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 required by the City . 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 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.
2.06. Prevailing Wage. Where applicable, Contractor shall follow the prevailing wage requirements listed in Exhibit D and applicable law.
2.07. Exhibits. Exhibits A, B, C, and D are attached and incorporated.
Attachment B
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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 extra-contractual services does not interfere with or present a conflict with 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 the City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City. The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement. Contractor (as a business entity, including its employees) is a “design professional” as defined by California Civil Code section 2782.8(c)(3).
3.04. Indemnification. To the fullest extent permitted by law, the 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 resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Contractor including its employees. The provisions of this Paragraph survive completion of the services or the termination of this Agreement. 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 the City and a representative of Contractor, listed below . All notices shall be addressed as follows unless a written change is filed with the City:
To City: To Contractor:
City of Santa Maria Smaart Power, LLC
Utilities Department Attn: Ali Halimi
Attn: Contracts Manager 300 Spectrum Center Dr., Suite 400 2065 East Main Street Irvine, CA 92618
Santa Maria, CA 93454
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. 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.
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IN WITNESS WHEREOF, this Agreement is executed by the parties on the date first written above.
“Contractor” “City”
SMAART POWER, LLC CITY OF SANTA MARIA
By: By:
ALI HALIMI SHAD S. SPRINGER, P.E., MPA
Authorized Representative Director of Utilities
ATTEST
By:
DONNA G. SCHWARTZ
Chief Deputy City Clerk
APPROVED AS TO FORM
Risk Manager
City Attorney
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EXHIBIT A
SERVICES TO BE PERFORMED
Task 1 – Data Collection
Contractor shall perform the following:
1. Conduct a kickoff meeting with City staff to confirm project objectives, facility access requirements, safety requirements, available documentation, site contacts, schedule constraints, and communication procedures.
2. Submit a data request list and coordinate with the City to obtain available existing documentation including single -line diagrams, electrical drawings, panel schedules, equipment schedules, previous studies, utility information, generator data, protective device information, and equipment submittals.
3. Review all existing documentation to identify missing information, develop the field investigation plan, and prepare data collection forms.
4. Perform field data collection for all applicable electrical equipment, including:
o Utility service information, available fault current data, service transformer data, and utility protective device information.
o Standby generators, cogeneration sources, UPS systems, motors, and other fault- contributing sources.
o All applicable distribution equipment including switchgear, switchboards, panelboards, MCCs, distribution panels, control panels, transfer switches, disconnects, and transformers.
o Protective device data including manufacturer, model, frame size, trip rating, fuse type, relay type, breaker type, adjustable settings, and all applicable trip functions. o Transformer nameplate data including kVA, voltage, impedance, connection type, and grounding configuration.
o Conductor information including size, type, material, quantity per phase, raceway type, and approximate lengths where available.
o Equipment ratings including voltage, current, SCCR, interrupting rating, withstand rating, and condition observations.
o Equipment enclosure dimensions required for IEEE 1584 calculations. o Existing equipment labels, equipment identification, and documentation discrepancies.
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5. When necessary and permitted, open or remove equipment covers to obtain required data. Coordinate all energized work with City staff and perform in compliance with NFPA 70E, applicable safety procedures, PPE requirements, and City access rules.
6. Coordinate with City personnel familiar with facility systems to verify equipment identification and operating conditions.
7. Review collected field data before and after site visits and identify any remaining information required to complete modeling and analysis.
Task 2 – Updated Single-Line Diagrams & Electrical Model Development Contractor shall:
1. Develop or update single-line diagrams for each facility, incorporating available drawings, field-verified data, and documented assumptions.
2. Identify service sources, distribution equipment, transformers, conductors, protective devices, motors, and standby power sources in updated diagrams.
3. Develop detailed electrical power system models using industry -standard software (ETAP, SKM, EasyPower or equivalent).
4. Model normal and applicable alternate operating configurations, including utility sources, standby generators, transfer switches, bus ties, and motor contribution.
5. Document assumptions required due to missing or unavailable data and coordinate them with City staff for approval.
Task 3 – Electrical Power System Analysis
3.1 Short Circuit Study & Fault Analysis
Contractor shall:
1. Perform short circuit calculations for balanced three -phase and applicable unbalanced fault conditions at relevant system locations.
2. Analyze fault conditions under normal and alternate operating scenarios, including generator operation and motor contribution.
3. Evaluate equipment interrupting and short-circuit withstand ratings.
4. Provide tabulated equipment evaluation results identifying acceptable, marginal, deficient, or items requiring further review.
5. Provide recommendations for corrective actions where equipment deficiencies exist.
3.2 Protective Device Coordination Study
Contractor shall:
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1. Perform a protective device coordination study for applicable adjustable and fixed devices, including circuit breakers, fuses, relays, and trip units.
2. Develop time-current characteristic (TCC) curves organized by equipment zone or system area.
3. Identify coordination issues, miscoordination, excessive clearing times, and opportunities to reduce incident energy.
4. Provide recommended settings for adjustable devices when feasible.
5. Present existing and recommended settings in tabular format.
3.3 Emergency and Standby Power Systems
Contractor shall:
1. Evaluate emergency and standby power systems included in the study scope.
2. Assess coordination between standby sources and distribution equipment.
3. Incorporate generator contribution, transfer switch configuration, reduced fault current, and associated impacts into the short circuit, coordination, and arc flash analyses.
Task 4 – Incident Energy and Arc Flash Calculations
Contractor shall:
1. Perform arc flash calculations in accordance with IEEE 1584 and NFPA 70E using field-verified data, protective device settings, calculated fault current, enclosure dimensions, electrode configurations, and working distances.
2. Calculate incident energy, arc flash boundary, arcing fault current, protective device clearing time, and PPE requirements for each applicable equipment location.
3. Analyze normal and alternate operating scenarios to determine worst-case conditions.
4. Consider generator contribution and decrement characteristics where applicable.
5. Provide results in tabular format including all data required for label development.
6. Identify high incident energy locations and provide practical mitigation recommendations including setting changes, equipment upgrades, maintenance switches, remote operation, or other methods.
Task 5 – Documentation and Reporting
Contractor shall prepare draft and final reports including:
1. Project scope, methodology, assumptions, limitations, and applicable standards.
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2. Software used for analysis.
3. Summary of existing documentation reviewed.
4. Field data collection summary.
5. Utility data and available fault current information.
6. Updated single-line diagrams.
7. Short circuit study results and equipment evaluation tables.
8. Protective device coordination study results and TCCs.
9. Existing and recommended device settings where applicable.
10. Emergency/standby system evaluation where applicable.
11. Incident energy and arc flash analysis results.
12. PPE recommendations.
13. Arc flash label data.
14. Findings and recommendations summarized in tables identifying equipment, issue, severity, and corrective action.
15. Appendices including detailed input/output reports, photos, equipment data, and supporting documentation.
16. A Professional Engineer licensed in California shall sign and seal the final report.
Task 6 – Arc Flash Hazard Categorization and Labeling
Contractor shall:
1. Prepare arc flash labels based on approved final study results.
2. Ensure labels comply with NFPA 70E, NEC, OSHA, ANSI Z535.4, and UL 969.
3. Include required label information:
o Equipment name
o Contractor contact information
o Date of study
o Voltage rating
o Arc flash boundary
o Incident energy
o Working distance
o Recommended PPE and glove
rating
o Limited and restricted approach
boundaries
o Bus and protective device
identification
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o Bolted fault current
4. Coordinate label format with the City.
5. Provide durable vinyl labels and a label schedule.
6. Install labels at correct equipment locations in coordination with City staff.
Task 7 – Arc Flash PPE Recommendations
Contractor shall:
1. Provide PPE recommendations based on calculated incident energy and arc flash boundaries.
2. Identify required arc -rated clothing, face protection, gloves, and applicable protective equipment.
3. Include PPE recommendations in the final report and on arc flash labels.
4. Provide optional guidance on manufacturers or product categories meeting applicable standards.
Task 8 – Optional Electrical Safety Program and Training (If authorized by the City) Contractor shall:
1. Develop a comprehensive Electrical Safety Program tailored to the operational needs of the City's water, wastewater, and stormwater facilities. The program will be coordinated with the findings and recommendations of the Arc Flash Risk Assessment and applicable electrical-safety requirements.
o Establish safe -work procedures for qualified personnel working on or near energized electrical systems.
o Define required protective equipment, protective controls, and safe-work practices.
Address equipment labeling, hazard identification, and compliance with applicable regulations and standards.
o Provide a practical foundation for ongoing implementation and future electrical safety training.
o Submit a draft program for City review, incorporate one conso lidated set of City comments, and issue the final program.
o Deliverables:
1. Draft Electrical Safety Program in editable electronic format and PDF.
2. Final Electrical Safety Program incorporating one consolidated City review cycle.
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2. Following City review and approval of the Electrical Safety Program, SMAART POWER will provide three total days of instructor -led Electrical Safety and Arc -Flash Training to designated City personnel. The training will comply with OSHA 29 CFR 1910.332 and NFPA 70E and will combine theoretical instruction with facility-specific practices.
o Deliverables:
1. Facility-specific training presentation and participant handouts.
2. Total of three days onsite training.
3. Training attendance record and electronic certificates of completion.
Task 9 – Quality Assurance / Quality Control
Contractor shall perform internal QA/QC reviews covering:
1. Consistency between field data, diagrams, model inputs, assumptions, and study results.
2. Verification of utility and source data.
3. Review of transformer, conductor, protective device, and equipment data.
4. Accuracy of equipment ratings and short circuit evaluations.
5. Review of protective device settings and TCCs.
6. Review of arc flash assumptions including working distances, enclosure dimensions, and electrode configurations.
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7. Verification of labels against final arc flash tables.
8. Review of recommendations for clarity and practicality.
9. Final review by a California-licensed Professional Engineer.
Task 10 – Project Coordination and Communication
Contractor shall:
1. Assign a primary project contact.
2. Provide kickoff meeting coordination and documentation.
3. Coordinate site visits, access, and utility data requests.
4. Communicate regularly via weekly or periodic status updates as requested.
5. Identify information gaps and coordinate resolution with the City.
6. Coordinate draft and final report review and label installation.
7. Coordinate optional training upon authorization.
Task 11 – Schedule and Milestones
Contractor shall
perform all work
within six months of
the kickoff in
accordance with a
mutually agreed
project schedule.
The following
baseline durations
represent typical
task sequences and
shall be refined after
the kickoff meeting:
Task 12 – Final Deliverables
Contractor shall provide:
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1. Updated single-line diagrams for each facility.
2. Electrical model files and documentation.
3. Field data collection summary.
4. Short circuit study results and evaluation tables.
5. Protective device coordination study results and TCCs.
6. Existing and recommended settings tables (as applicable).
7. Emergency/standby system evaluation (as applicable).
8. Incident energy and arc flash results tables.
9. Arc flash boundary and working distance tables.
10. PPE recommendations.
11. Arc flash label schedule.
12. Durable arc flash hazard labels.
13. Deficiency and recommendation tables.
14. Assumptions and utility data.
15. Draft and final PE-stamped reports.
16. Optional Electrical Safety Program and training materials described above.
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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 ONE HUNDRED FIFTY-FOUR
THOUSAND, TWO HUNDRED THIRTY DOLLARS AND ZERO CENTS IN FEES for all work.
Item Cost
Tasks 1-7, 9-12 $ 139,770.00
Task 8 - Optional Services 14,460.00
Grand Total $ 154,230.00
II. INVOICE PROCEDURE
A. Payment shall be monthly based on the billable charges.
B. Contractor shall present the bill for charges from the previous month.
C. Contractor's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.
D. City may withhold payment for disputed work. Payment of fees shall not constitute an acceptance of work.
E. Work Authorized by Change Order/Amendment shall be billed on a time and materials basis.
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EXHIBIT C
INSURANCE REQUIREMENTS
Contractor shall procure and maintain for the duration of the Agreement 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 the Contractor, his/her agents, representatives, or employees. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor.
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.
2. 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).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
4. Errors and Omissions liability insurance appropriate to the Contractor’s profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.
5. Cyber Liability Insurance . 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.
B. Minimum Limits of Insurance
Contractor shall maintain limits no less than:
1. 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 Atty. Rev. 2025 Page 15 of 19
project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Statutory limits.
4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.
5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.
6. Cyber Liability - $2,000,000 per occurrence or claim, $2,000,000 aggregate.
C. Self-insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the 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.
D. Other Insurance Provisions
The liability policies are to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equ ipment 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).
2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the 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 the Contractor’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this Agreement to the City. All notices Atty. Rev. 2025 Page 16 of 19
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.
4. Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the 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 the City has received a waiver of subrogation endorsement from the insurer.
5. If any of the required policies provide claims-made coverage:
a. The Retroactive Date must be shown and must be before the date of the Agreement or the beginning of Agreement work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
c. If coverage is canceled 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.
E. 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.
F. Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. 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 the Contractor’s obligat ion to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
G. Special Risks or Circumstances
The 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 construction, 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, "insta llation" 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 pr ovisions be included in all contracts for public works. The Contractor and any subcontractors 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 Contractor 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 work 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 Contractor 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 Atty. Rev. 2025 Page 18 of 19
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 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 wage 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 o n 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, Atty. Rev. 2025 Page 19 of 19
1860 and 1861.
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 subcontractors (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.