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BACKGROUND This project was budgeted under the FY 2008 -2009 Capital Improvement Program in the amount of $170,000. On April 7, 2009, the Pleasanton City Council awarded the contract for the project to A -1 Septic Construction, Inc. in the amount of $114,875. The City Council also authorized the Director of Community Development to approve change orders up to the amount of $23,000, for a total of $137,875. The project consisted of the construction of 62 intersection ramps and 5 raised islands with passageways, resulting in improved access to sidewalks for persons with bicycles or wheelchairs, as well as pedestrians with strollers. The project also included the installation of yellow detectable warning surfaces at various locations throughout the City. Project sites were located on Greenwood Drive, Mohr Avenue, Hopyard Road, Stoneridge Drive, and Valley Avenue (see Attachment 1 for specific locations). DISCUSSION The City experienced various issues with A -1 Septic Construction on this project, including prevailing wage and certified payroll problems, resident complaints, sub- standard work, cancellation of insurance coverage, a suspension of its contractor license, and a delayed work schedule. As a result of these issues, it was necessary for staff to award additional work planned for the project to an existing on -call services contract with Econolite instead of A -1 Septic Construction. In addition, staff is withholding $35,862.50 on payments to A -1 Septic until matters related to prevailing wage issues are resolved by the State Department of Industrial Relations, Division of Labor Standards Enforcement. Also, the contractor did not meet the construction schedule; therefore, in accordance with the Contract, staff has assessed liquidated damages in the amount of $15,500 to compensate for the delays. Finally, multiple Stop Notices have been filed against A -1 Septic Construction by both the laborers and suppliers with a total amount exceeding the total funds being withheld. The City is in contact with A -1 Septic Construction's insurance and bond companies and parties responsible to pay any and all claims and anticipates the issues will be resolved. Due to a delay by PG &E in relocating a service box, A -1 Septic Construction was unable to install one access ramp located at Greenwood Drive and Canary Drive. The City deleted the ramp from the project Scope of Work and intends to include the ramp in a future project after PG &E relocates its box. Despite the payroll irregularities, initially sub standard work, and other issues related to the Contractor, the work on the project has finally been completed to the satisfaction of the City. Therefore, staff is recommending acceptance of the project. Once the Notice of Completion is filed, any additional claims against the project are required to be filed with Page 2 of 3