HomeMy WebLinkAboutSeaside Heating & Air Conditioning Inc; 2026-04-27; MSA26-4066FACMSA26-4066FAC
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MAINTENANCE SERVICES AGREEMENT FOR CITYWIDE HEATING, VENTILATION, AND AIR
CONDITIONING (HVAC) SYSTEMS SERVICES WITH
SEASIDE HEATING & AIR CONDITIONING, INC.
THIS AGREEMENT (“Agreement”) is made and entered into as of the ______________ day
of _________________________, 2026, by and between the City of Carlsbad, California, a
municipal corporation and California charter city ("City") and Seaside Heating & Air Conditioning,
Inc., a California corporation ("Contractor").
RECITALS
A. City requires the services of a contractor that is experienced in HVAC maintenance
and services (“Services”).
B. Contractor is duly qualified and has the necessary experience to provide the
Services.
C. The City issued a Request for Proposal, and in response, the Contractor submitted
a proposal to the City and affirmed its willingness and ability to perform the work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained
herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those Services (“Services”)
described and delineated in Exhibit “A.” To the extent that any of the terms in the Exhibits(s),
including any attachments, conflict with the terms in this Agreement, in whole or in part, the
terms of this Agreement control.
2. TERM
The term of this Agreement will be effective for a period of one (1) year from the date first above
written. The City Manager may amend the Agreement to extend it for five (5) additional one (1)
year periods or parts of a year. Extensions will be based upon a satisfactory review of Contractor's
performance, City needs, and appropriation of funds by the City Council. The parties will prepare
a written amendment indicating the effective date and length of the extended Agreement.
3. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term shall
not exceed forty-four thousand dollars ($44,000). No other compensation for the Services will be
allowed except for items covered by subsequent amendments to this Agreement. If the City
elects to extend the Agreement, the amount shall not exceed forty-four thousand dollars
($44,000) per Agreement year.
Payment terms are Net 30 unless otherwise provided in Exhibit “A” or agreed to in writing by the
parties. The City reserves the right to withhold a ten percent (10%) retention until City has
accepted the work and/or Services specified in Exhibit "A." Incremental payments, if applicable,
should be made as outlined in attached Exhibit "A."
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4. PUBLIC WORKS
4.1 Prevailing Wage Rates. Any construction, alteration, demolition, installation, repair, and
maintenance work, including work performed during design and preconstruction such as
inspection and land surveying work, cumulatively exceeding $1,000 and performed under this
Agreement constitute “public works” under California Labor Code section 1720 et seq. and are
subject to state prevailing wage laws. The general prevailing rate of wages, for each craft or type
of worker needed to execute the contract, shall be those as determined by the Director of
Industrial Relations pursuant to the Section 1770, 1773 and 1773.1 of the California Labor Code.
Pursuant to Section 1773.2 of the California Labor code, a current copy of applicable wage rates
is on file in the office of the City Engineer. Contractor shall not pay less than the said specified
prevailing rates of wages to all such workers employed by Contractor in the execution of the
Agreement. Contractor and any subcontractors shall comply with Section 1776 of the California
Labor Code, which generally requires keeping accurate payroll records, verifying and certifying
payroll records, and making them available for inspection. Contractor shall require any
subcontractors to comply with Section 1776.
4.2 DIR Registration. California Labor Code section 1725.5 requires the Contractor and any
subcontractor or subconsultant performing any public work under this Agreement to be currently
registered with the California Department of Industrial Relations (DIR), as specified in Labor Code
section 1725.5. Labor Code section 1771.1 provides that a contractor or
subcontractor/subconsultant shall not be qualified to engage in the performance of any contract
for public work, unless currently registered and qualified to perform public work pursuant to
Labor Code section 1725.5. Prior to the performance of public work by any subcontractor or
subconsultant under this Agreement, Contractor must furnish City with the subcontractor or
subconsultant's current DIR registration number, including submitting the form provided in
Exhibit “B.”
5. CONSTRUCTION MANAGEMENT SOFTWARE
Procore Project Management and Collaboration System. This project may utilize the City’s
Procore (www.procore.com) online project management and document control platform. The
intent of utilizing Procore is to reduce cost and schedule risk, improve quality and safety, and
maintain a healthy team dynamic by improving information flow, reducing non-productive
activities, reducing rework and decreasing turnaround times. Contractor is required to create a
free web-based Procore user account(s) and utilize web-based training / tutorials (as needed) to
become familiar with the system. Unless the Engineer approves otherwise, the Contractor shall
process all project documents through Procore because this platform will be used to submit,
track, distribute and collaborate on project. If unfamiliar or not otherwise trained with Procore,
Contractor and applicable team members shall complete a free training certification course
located at http://learn.procore.com/procore-certification-subcontractor. Contractor is
responsible for obtaining Contractor’s own Procore support, as needed, either through the online
training or reaching out to the Procore support team. It will be the responsibility of Contractor to
regularly check Procore and review updated documents as they are added. There will be no cost
to Contractor for use of Procore.
It is recommended that Contractor provide mobile access for Windows, iOS located at
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https://apps.apple.com/us/app/procore-construction-management/id374930542 or Android
devices located at https://play.google.com/store/apps/details?id=com.procore.activities with
the Procore App installed to at least one on-site individual to provide real-time access to current
posted drawings, specifications, RFIs, submittals, schedules, change orders, project documents,
as well as any deficient observations or punch list items. Providing mobile access will improve
communication, efficiency, and productivity for all parties. The use of Procore for project
management does not relieve the contractor of any other requirements as may be specified in
this Agreement.
6. Intentionally removed.
7. STATUS OF CONTRACTOR
Contractor will perform the Services in Contractor's own way as an independent contractor and
in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be
under the control of City only as to the result to be accomplished, but will consult with City as
necessary. The persons used by Contractor to provide services under this Agreement will not be
considered employees of City for any purposes.
The payment made to Contractor pursuant to the Agreement will be the full and complete
compensation to which Contractor is entitled. City will not make any federal or state tax
withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be
required to pay any workers' compensation insurance or unemployment contributions on behalf
of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within
thirty (30) days for any tax, retirement contribution, social security, overtime payment,
unemployment payment or workers' compensation payment which City may be required to make
on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done
under this Agreement. At the City’s election, City may deduct the indemnification amount from
any balance owing to Contractor.
8. SUBCONTRACTING
Contractor will not subcontract any portion of the Services without prior written approval of City.
If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the
acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly
employed by the subcontractor, as Contractor is for the acts and omissions of persons directly
employed by Contractor. Nothing contained in this Agreement will create any contractual
relationship between any subcontractor of Contractor and City. Contractor will be responsible
for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor
of a subcontractor by the terms of this Agreement applicable to Contractor's work unless
specifically noted to the contrary in the subcontract and approved in writing by City.
9. OTHER CONTRACTORS
The City reserves the right to employ other Contractors in connection with the Services.
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10. INDEMNIFICATION
Contractor agrees to defend (with counsel approved by the City), indemnify, and hold harmless
the City and its officers, elected and appointed officials, employees and volunteers from and
against all claims, damages, losses and expenses including attorneys fees arising out of the
performance of the work described herein caused by any negligence, recklessness, or willful
misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any
of them or anyone for whose acts any of them may be liable.
If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s
performance as a “design professional” (as that term is defined under California Civil Code
section 2782.8), then, and only to the extent required by California Civil Code Section 2782.8,
which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to
claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct
of the Contractor, and, upon Contractor obtaining a final adjudication by a court of competent
jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed the
Contractor’s proportionate percentage of fault.
The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or
makes to or on behalf of an injured employee under the City’s self-administered workers’
compensation program is included as a loss, expense or cost for the purposes of this section, and
that this section will survive the expiration or early termination of this Agreement.
11. INSURANCE
Contractor will obtain and maintain for the duration of the Agreement and any and all
amendments, insurance against claims for injuries to persons or damage to property which may
arise out of or in connection with performance of the services by Contractor or Contractor’s
agents, representatives, employees or subcontractors. The insurance will be obtained from an
insurance carrier admitted and authorized to do business in the State of California. The insurance
carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus
line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating
in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by
the National Association of Insurance Commissioners (NAIC) latest quarterly listings report.
11.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits
indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum
amounts of coverage will not constitute any limitations or cap on Contractor's indemnification
obligations under this Agreement. City, its officers, agents and employees make no
representation that the limits of the insurance specified to be carried by Contractor pursuant to
this Agreement are adequate to protect Contractor. If Contractor believes that any required
insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as
Contractor deems adequate, at Contractor's sole expense. The full limits available to the named
insured shall also be available and applicable to the City as an additional insured.
11.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an
“occurrence” basis, including personal & advertising injury, with limits no less than $2,000,000
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per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply
separately to this project/location or the general aggregate limit shall be twice the required
occurrence limit.
11.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work
for City). $2,000,000 combined single-limit per accident for bodily injury and property damage.
11.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits
as required by the California Labor Code. Workers' Compensation will not be required if
Contractor has no employees and provides, to City's satisfaction, a declaration stating this.
11.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s
profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a
period of five years following the date of completion of the work.
11.2 Additional Provisions. Contractor will ensure that the policies of insurance required under
this Agreement contain, or are endorsed to contain, the following provisions:
11.2.1 The City will be named as an additional insured on Commercial General Liability
which shall provide primary coverage to the City.
11.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which
will be written as claims-made coverage.
11.2.3 If Contractor maintains higher limits than the minimums shown above, City
requires and will be entitled to coverage for the higher limits maintained by Contractor. Any
available insurance proceeds in excess of the specified minimum limits of insurance and coverage
will be available to City.
11.2.4 This insurance will be in force during the life of the Agreement and any extensions
of it and will not be canceled without thirty (30) days prior written notice to City sent by certified
mail pursuant to the Notice provisions of this Agreement.
11.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this
Agreement, Contractor will furnish certificates of insurance and endorsements to City.
11.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance
coverages, then City will have the option to declare Contractor in breach, or may purchase
replacement insurance or pay the premiums that are due on existing policies in order to maintain
the required coverages. Contractor is responsible for any payments made by City to obtain or
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maintain insurance and City may collect these payments from Contractor or deduct the amount
paid from any sums due Contractor under this Agreement.
11.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete
and certified copies of any or all required insurance policies and endorsements.
12. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term of the
Agreement, as may be amended from time-to-time.
13. ACCOUNTING RECORDS
Contractor will maintain complete and accurate records with respect to costs incurred under this
Agreement. All records will be clearly identifiable. Contractor will allow a representative of City
during normal business hours to examine, audit, and make transcripts or copies of records and
any other documents created pursuant to this Agreement. Contractor will allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of four
(4) years from the date of final payment under this Agreement.
14. NOTICES
The name of the persons who are authorized to give written notice or to receive written notice
on behalf of City and on behalf of Contractor under this Agreement are:
For City: For Contractor:
Name Brian Bacardi Name Charlie Balcar
Title Public Works Superintendent Title President
Dept Fleet & Facilities Address 1359 Rocky Point Drive
Oceanside, CA, 92056
Address 405 Oak Ave. Phone 760-643-1100
Carlsbad, CA 92008 Email cb@seasidehvac.com
Phone 442-339-2944
Each party will notify the other immediately of any changes of address that would require any
notice or delivery to be directed to another address.
15. CONFLICT OF INTEREST
Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the
requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report
investments or interests as required in the City of Carlsbad Conflict of Interest Code.
Yes ☐ No ☒
16. GENERAL COMPLIANCE WITH LAWS
Contractor will keep fully informed of federal, state and local laws and ordinances and regulations
which in any manner affect those employed by Contractor, or in any way affect the performance
of the Services by Contractor. Contractor will at all times observe and comply with these laws,
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ordinances, and regulations and will be responsible for the compliance of Contractor's services
with all applicable laws, ordinances and regulations.
Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986
and will comply with those requirements, including, but not limited to, verifying the eligibility for
employment of all agents, employees, subcontractors and consultants whose services are
required by this Agreement.
17. CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS
Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty
package delivery vehicles operated in California may be subject to the California Air Resources
Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to
requirements to reduce emissions of air pollutants. For more information, please visit the CARB
Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-
clean-fleets.
18. DISCRIMINATION, HARASSMENT, AND RETALIATION PROHIBITED
Contractor will comply with all applicable local, state and federal laws and regulations prohibiting
discrimination, harassment, and retaliation.
19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance of the Services the following procedure will
be used to resolve any questions of fact or interpretation not otherwise settled by agreement
between the parties. Representatives of Contractor or City will reduce such questions, and their
respective views, to writing. A copy of such documented dispute will be forwarded to both parties
involved along with recommended methods of resolution, which would be of benefit to both
parties. The representative receiving the letter will reply to the letter along with a recommended
method of resolution within ten (10) business days. If the resolution thus obtained is
unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City
Manager. The City Manager will consider the facts and solutions recommended by each party
and may then opt to direct a solution to the problem. In such cases, the action of the City
Manager will be binding upon the parties involved, although nothing in this procedure will
prohibit the parties from seeking remedies available to them at law.
20. TERMINATION
In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may
terminate this Agreement for nonperformance by notifying Contractor by certified mail of the
termination. If City decides to abandon or indefinitely postpone the work or services
contemplated by this Agreement, City may terminate this Agreement upon written notice to
Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any
documents owned by City and all work in progress to City address contained in this Agreement.
City will make a determination of fact based upon the work product delivered to City and of the
percentage of work that Contractor has performed which is usable and of worth to City in having
the Agreement completed. Based upon that finding City will determine the final payment of the
Agreement.
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City may terminate this Agreement by tendering thirty (30) days written notice to Contractor.
Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In
the event of termination of this Agreement by either party and upon request of City, Contractor
will assemble the work product and put it in order for proper filing and closing and deliver it to
City. Contractor will be paid for work performed to the termination date; however, the total will
not exceed the lump sum fee payable under this Agreement. City will make the final
determination as to the portions of tasks completed and the compensation to be made.
21. COVENANTS AGAINST CONTINGENT FEES
Contractor warrants that Contractor has not employed or retained any company or person, other
than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that
Contractor has not paid or agreed to pay any company or person, other than a bona fide
employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration
contingent upon, or resulting from, the award or making of this Agreement. For breach or
violation of this warranty, City will have the right to annul this Agreement without liability, or, in
its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the
full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
22. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must
be asserted as part of the Agreement process as set forth in this Agreement and not in
anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false
claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal
prosecution. Contractor acknowledges that California Government Code sections 12650 et seq.,
the False Claims Act applies to this Agreement and, provides for civil penalties where a person
knowingly submits a false claim to a public entity. These provisions include false claims made
with deliberate ignorance of the false information or in reckless disregard of the truth or falsity
of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to
recover its litigation costs, including attorneys fees. Contractor acknowledges that the filing of a
false claim may subject Contractor to an administrative debarment proceeding as the result of
which Contractor may be prevented to act as a Contractor on any public work or improvement
for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction
is grounds for City to terminate this Agreement.
23. JURISDICTIONS AND VENUE
This Agreement shall be interpreted in accordance with the laws of the State of California without
regard to, or application of choice of law principles. Contractor agrees and stipulates that the
proper venue and jurisdiction for resolution of any disputes between the parties arising out of
this Agreement is the State Superior Court, San Diego County, California.
24. NO ATTORNEYS FEES AND COSTS.
Except as otherwise specifically provided in this Agreement, if there is any litigation, mediation,
arbitration or other dispute resolution proceedings arising out of this Agreement, each Party shall
for its own attorney and other professional fees, costs and expenses.
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25. Intentionally removed.
26. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon City and
Contractor and their respective successors. Neither this Agreement nor any part of it nor any
monies due or to become due under it may be assigned by Contractor without the prior consent
of City, which shall not be unreasonably withheld.
27. THIRD PARTY RIGHTS
Nothing in this Agreement should be construed to give any rights or benefits to any party other
than the City and Contractor.
28. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on behalf of
Contractor each represent and warrant that they have the legal power, right and actual authority
to bind Contractor to the terms and conditions of this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.
CONTRACTOR CITY OF CARLSBAD, a municipal
corporation of the State of California Seaside Heating & Air Conditioning, Inc., a
California corporation
By: By:
(sign here) Paz Gomez, Deputy City Manager, Public
Works, as authorized by the City Manager
Charles Balcar, President
ATTEST:
By: SHERRY FREISINGER, City Clerk
(sign here) By:
Taylor Sebring, Chief Financial Officer
Deputy City Clerk
If required by City, proper notarial acknowledgment of execution by contractor must be attached.
If a corporation, Agreement must be signed by one corporate officer from each of the following
two groups.
Group A Group B
Chairman, Secretary,
President, or Assistant Secretary,
Vice-President CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
CINDIE K. McMAHON, City Attorney
By: _____________________________
Assistant City Attorney
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EXHIBIT A
SCOPE OF SERVICES AND FEE
Contractor to provide all materials, tools and labor required to provide citywide quarterly HVAC
preventative maintenance. Preventative maintenance shall consist of the following activities:
- Visually inspect the units for general condition and defects
- Check unit operation in fan, heating, and cooling mode
- Check thermostat operation and calibration
- Replace all filters with MERV 10 rating
- Check and lubricate motors and bearings as required
- Check service disconnects for proper operation
- Clean condenser and evaporator coils annually
- Test compressor operation
- Check condition of exposed ducting on roof tops
- Check reversing valve, gas valve for proper operation
- Test safeties, electrical connections and controls
- Check exhaust fan operation
- Inspect belts and pulleys, adjust and replace as required
- Check refrigerant levels for peak efficiency
- Check amps on compressor, condenser fan and evaporator fans.
- Check condensate pans. Treat, flush and blowout drain lines each visit.
- Clean and remove debris from worksite
- Document and report findings to responsible party
- Complete required written documentation on the city’s workorder management software
Service locations include:
Alga Norte Community Park
Calavera Community Center
City Hall Complex
Cole Library
Dove Library
Elmwood House
Faraday Center
Fire Station No. 1
Fire Station No. 2
Fire Station No. 3
Fire Station No. 4
Fire Station No. 5
Fire Station No. 6
Fire Station No. 7
Fleet Service Center
Harding Community Center
Holiday House
Kruger House
Leo Carrillo Ranch
Monroe Pool
Water District Facility
Parks Maintenance Yard
Pine Community Center
Oak Maintenance Complex
Train Depot
Senior Center
Stagecoach Community Park
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EXHIBIT “B”
DIR CONTRACTOR REGISTRATION CERTIFICATION
NAME OF PROJECT: Citywide HVAC Maintenance & Service
NAME OF CONTRACTOR: Seaside Heating & Air Conditioning, Inc.
Pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractors and any Subcontractors
for this Project must be registered with the Department of Industrial Relations. See Public
Works (ca.gov) for additional information.
Contractor certifies that it is aware of the registration requirements set forth in Labor Code
Sections 1725.5 and 1771.1 and is currently registered as a Contractor with the Department of
Industrial Relations.
Name of Contractor: Seaside Heating & Air Conditioning, Inc.
DIR Registration Number: 1000005586
DIR Registration Expiration: 6/30/2028
Contractor further certifies:
1. Contractor shall maintain a current DIR registration for the duration of the Project.
2. Contractor will include the requirements of Labor Code Sections 1725.5 and 1771.1 in
any contractor with subcontractors and ensure that all subcontractors are registered at
the time of contract award and will maintain registration status for the duration of the
Project.
Signature: Date:
Name: Charles Balcar Title: President
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4/25/2026
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