That the City Council approve the Notice of Completion for Civic Center Project including the constructions and improvements of the City Hall Building, Police Station, Veterans Hall, Old Settlers Museum, Community Center, City Project 01-14-052, and authorize staff to submit the notice for recordation.

On July 6, 2015, the City Council approved a Construction Contract with DLS Builders for the construction of the Civic Center Improvement project. The project included the renovation of existing office buildings into a new City Hall and Council Chamber, the construction of a new annex building at the Community Center, improvements to Veterans Hall and the Historical Museum, a remodel of the existing Community Center building, and renovations to the Police Station.  On October 24, 2018, staff conducted a final inspection and found that the work was completed in accordance with the project plans, specifications, and City standards.

Prior to the final completion of the project, the Department of Industrial Relations (DIR) informed the City that Mega Plastering Systems, a subcontractor of DLS Builders, violated Labor Code Sections 1771 and 1774 pertaining to prevailing wages.  Mega Plastering Systems reportedly misclassified two plaster tender employees as apprentices while working unsupervised by a plaster tender journeyman.  As a result, in November 2022, DIR informed the City of the complaint, and instructed the City not to file a Notice of Completion until the complaint was resolved.  During that time, the City received an "Unconditional Waiver and Release on Final Payment" form from DLS Builders, as well as all subcontractors, including Mega Plastering Systems, which releases the City from any pending expenses that have not been paid.

On April 11, 2023, the DIR issued a Notice of Complaint Closed confirming that the Mega Plastering had satisfactory paid all prevailing wages and penalties.  Upon acceptance of the project as complete by City Council, staff will file a Notice of Completion (Attachment 1) for recordation at the Orange County Clerk-Recorder's Office.