BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: April 18, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maz Bozorginia, Public Works Director/City Engineer Jonathan Woo, Assistant Engineer
TITLE: CONSTRUCTION CONTRACT AWARD FOR THE 2023 STREET MAINTENANCE PROJECT (CIP PROJECT NO. 0514)
______________________________________________________________________________ RECOMMENDATION:
Adopt a resolution authorizing the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Dryco Construction, Inc. (Dryco), of Fremont, California in the amount of $281,177 and approve a construction contingency amount not exceeding an amount of $42,176.55 (15 percent) for potential change orders for the 2023 Street Maintenance Project (CIP Project No. 0514).
FISCAL IMPACT:
This project is funded by the Pavement Management and Traffic Safety Program (CIP Project No. 0514). There are sufficient funds to award this contract.
STRATEGIC ELEMENT:
This action supports the Infrastructure and Environment, and Healthy Communities and Public Safety Elements of the Strategic Plan.
BACKGROUND:
The 2023 Street Maintenance Project scope consists of performing “dig-out” base repairs, surface milling, asphalt concrete overlay, slurry sealing, traffic markings, traffic striping, and other related work on the following streets:
• Jenna Lane between Pine Avenue and Kelly Avenue
• Arleta Way between Grove Street and Magnolia Street
• Alsace Lorraine Avenue/First Avenue between Granelli Avenue to Filbert Street • Second Avenue between Metzgar Street and Grove Street On Wednesday, March 8, 2023, the City advertised a request for public bids for the 2023 Street Maintenance Project.
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Construction work will be performed during the day, Monday through Friday, between the hours of 7:00 a.m. and 5:00 p.m. The contractor will be posting public notices in advance of construction. Traffic control and intermittent closures will be required and communicated in advance with affected properties.
BID SUMMARY:
The City received five (5) bids before the scheduled bid opening time and date of 2:00 PM on Wednesday, March 29, 2023. The bids and engineer’s estimate are summarized as follows:
Bidder Base Bid
Engineer’s Estimate $398,185.10
Dryco Construction, Inc. $281,177.00
G. Bortolotto & Company, Inc. $286,915.20
Andreini Brothers, Inc. $299,946.00
Half Moon Bay Grading & Paving, Inc. $300,935.83
QA Contractors, Inc. $355,924.35
DISCUSSION:
The lowest responsive and responsible bidder, Dryco Construction, Inc.’s base bid of $281,177 is approximately 29 percent below the Engineer’s Estimate. City Staff have reviewed the bid from Dryco and determined that it is acceptable and free from significant material discrepancies. Construction contingencies will also be needed for the project.
On April 3, 2023, the City received a “Bid Advisory” via email from the Foundation for Fair Contracting regarding Dryco Construction, Inc., in relation to the 2023 Street Maintenance Project bid, asserting that Dryco has numerous infractions/violations resulting in wage theft and non-compliance with apprenticeship laws. This was not a bid protest by another contractor, but rather an “advisory” by a third-party organization. Dryco has been responsive to staff inquiries into the Bid Advisory and denies the allegations. Dryco explained how prior claims were resolved, either dismissed or settled, and that they abide by state wage and hour laws as well as apprenticeship requirements via timely filing of the of the State’s DAS 140 and 142 forms. Dryco further explained that any inadvertent mistake Dryco may have made in the past was corrected and its internal processes modified to prevent any future mistake.
The City Attorney’s Office has confirmed that prior wage claims against Dryco have been resolved and/or dismissed and found no evidence of any active state investigations. This explanation and evidence of resolution supports Dryco’s commitment to comply with the state and local law as required by the contract with the City. Staff completed the review of Dryco’s bid and found it to be responsive and meets all bid requirements.
Staff continues to recommend awarding the contract to the lowest responsive and responsible bidder, Dryco Construction, in the amount of $281,177 and approve a construction contingency 168
amount not exceeding an amount of $42,176.55 (15 percent) for potential change orders for the 2023 Street Maintenance Project (CIP Project No. 0514).
ATTACHMENTS:
1. Resolution
2. Attachment 2 – Foundation for Fair Contracting Email
3. Attachment 3 – Dryco Response Email
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Resolution No. C-2023-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY TO AUTHORIZE THE
CITY MANAGER TO AWARD AND EXECUTE A CONSTRUCTION CONTRACT WITH DRYCO CONSTRUCTION, INC. OF FREMONT, CALIFORNIA, IN THE AMOUNT OF $281,177, APPROVE A CONSTRUCTION CONTINGENCY IN AN AMOUNT NOT EXCEEDING 15 PERCENT, OR $42,176.55, OF THE CONTRACT AWARD AMOUNT FOR POTENTIAL CHANGE ORDERS FOR THE 2023 STREET MAINTENANCE PROEJCT (CIP PROJECT NO. 0514)
WHEREAS, the 2023 Street Maintenance Project (under Fiscal Year 2022-23) scope consists of performing “dig-out” base repairs, surface milling, asphalt concrete overlay, slurry sealing, traffic markings, traffic striping, and other related work, along the project limits; and WHEREAS, the City advertised the project on Wednesday, March 8, 2023, and opened five (5) bids that were received at the scheduled time, date, and place, as set forth in the Public Contract Code for the 2023 Street Maintenance Project; and WHEREAS, the lowest responsive and responsible bid for the base bid schedule was submitted by Dryco Construction, Inc., out of Fremont, California, in the amount of $281,177.00.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:
1) Accepts the submitted five (5) responsive bids; and
2) Authorizes the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Dryco Construction, Inc., out of Fremont, California, in the total amount of $281,177; and
3) Approves the construction contingency in an amount not exceeding 15 percent, or $42,176.55, of the contract award amount for potential change orders for the 2023 Street Maintenance Project (CIP Project No. 0514).
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 18th day of April 2023 by the City Council of Half Moon Bay by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
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ATTEST: APPROVED:
___________________________ _____________________________ Jessica Blair, City Clerk Deborah Penrose, Mayor
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1 Maziar Bozorginia
From: Justin Bochmann <[email protected]>
Sent: Monday, April 3, 2023 4:44 PM
To: Maziar Bozorginia
Cc: Deborah Penrose; Joaquin Jimenez; Debbie Ruddock; Robert Brownstone; Harvey Rarback; Arturo Sainz; Jesse Jimenez; Eva Cruz-Huerta
Subject: Bid Advisory on Dryco Construction, Inc. - 2023 Street Maintenance Project - FFC Case No. 1105SJ Attachments: Bid Advisory - Dryco Construction Inc - FFC Case No. 1105SJ.pdf [CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
RE: BID ADVISORY
Low Bidder: Dryco Construction, Inc.
Awarding Agency: City of Half Moon Bay
Project: 2023 Street Maintenance Project
FFC Case No.: 1105SJ
Dear Mr. Bozorginia:
The Foundation for Fair Contracting (FFC) is a nonprofit organization which has been serving the public interest since 1985. The objective of the FFC is to monitor compliance with prevailing wage laws pertaining to the construction industry, including informing and educating industry stakeholders. Unbalanced bids raise questions in regard to performance and compliance with the rules and regulations for the payment of prevailing wages, and the safety and well-being of the workforce. It further opens the question of excessive future change orders, the fairness to and rights of other bidders in the bidding process, and the intent of the competitive bidding process in general.
In deference to all bidders and in order for the public interest to best be served, please enter this formal bid advisory against the above-noted contractor as a matter of public record. We respectfully request that Dryco Construction, Inc. (Dryco) bid be rejected for the following reasons:
ONGOING VIOLATIONS OF PREVAILING WAGE LAWS RESULTING IN WAGE THEFT Dryco has numerous infractions/violations which have resulted in willful circumvention of the Laws and Regulations governing the payment of prevailing wages, including, but not limited to, violations resulting in wage theft and non-compliance with apprenticeship laws. Dryco has engaged in this pattern of unlawful activity on various public works prevailing wage projects. Civil Wage and Penalty Assessments have been issued to Dryco by the State of California, Division of Labor Standards Enforcement (DLSE), Labor Commissioner’s office. Supporting documentation is attached for your review.
Furthermore, Dryco is currently under investigation by our offices and the State of California, Division of Labor Standards Enforcement (DLSE) in connection with issues provided below. Supporting documentation is attached for your review.
Misclassifications resulting in underpayments.
Failure to comply with overtime requirements.
Failure to comply with apprenticeship requirements.
Failing to report all workers on certified payrolls.
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2 FAILURE TO COMPLY WITH WORKFORCE DEVELOPMENT AND FORMAL APPRENTICESHIP
PROGRAMS
Dryco has not made a good faith effort to participate and invest in Local Workforce Development, nor have they participated in local hiring of workers in the community through formal and recognized preapprenticeship programs and formal apprenticeship programs for specific apprenticeable crafts. They have failed to request, employ, train, and pay the proper prevailing wages to apprentices. HISTORY OF PRIVATE ATTORNEY GENERAL ACT (PAGA) LAWSUITS Dryco has a history of PAGA related lawsuits filed with the State of California, brought forth from workers who have been victims of wage theft. Supporting documentation is attached for your review.
Please contact our office with questions, comments, or clarifications.
Sincerely,
Jesse Jimenez
Executive Director
Case: 1105SJ
cc: City of Half Moon Bay – Mayor and Councilmembers
Deborah Penrose – Email: [email protected]
Joaquin Jimenez – Email: [email protected]
Debbie Ruddock – Email: [email protected]
Robert Brownstone – Email: [email protected]
Harvey Rarback – Email: [email protected]
Justin Bochmann
Field Representative
Foundation for Fair Contracting
3807 Pasadena Avenue, Suite 150
Sacramento, California 95821
Office (916) 487-7871; Fax (916) 487-0306; Direct (916) 541-2848 One Stop Solutions @ www.ffccalifornia.com
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1 Jonathan Woo
From: David Schaefer <[email protected]>
Sent: Monday, April 10, 2023 11:50 AM
To: Jonathan Woo
Cc: Willie Hillyard; Maziar Bozorginia; Kevin Frink
Subject: RE: Bid Advisory on Dryco Construction, Inc. - 2023 Street Maintenance Project - FFC Case No. 1105SJ
[CAUTION]: This email originated from outside of the organizaƟon. Do not click links or open aƩachments unless you recognize the sender and know the content is safe.
Good Morning Jonathan,
I hope you had a good weekend. Thank you again for forwarding the supporƟng documents from the FFC's allegaƟons and thank you and your team for your support. We do not have any addiƟonal informaƟon to add, but did want to again note that any inadvertent mistake DRYCO may have made in the past was corrected and our internal processes modified to miƟgate any future mistake.
We look forward to working with the City of Half Moon Bay to make this a successful project for all parƟes. Please let me know if you need anything else from us and please keep us updated as we approach the City Council MeeƟng.
Thank you,
David Schaefer
ESTIMATOR & PROJECT MANAGER
[email protected] | 650‐296‐6767
42745 Boscell Road | Fremont, CA 94538
office 510‐438‐6500 | fax 510‐438‐6510
ASPHALT • STRIPING • SEALCOAT • SLURRY SEAL • CONCRETE • FENCE & IRON ‐‐‐‐‐Original Message‐‐‐‐‐
From: Jonathan Woo <[email protected]>
Sent: Friday, April 7, 2023 8:42 AM
To: David Schaefer <[email protected]>
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4 Assistant Engineer
501 Main Street, Half Moon Bay, CA 94019
(650) 726‐8265
www.hmbcity.com
‐‐‐‐‐Original Message‐‐‐‐‐
From: David Schaefer <[email protected]>
Sent: Wednesday, April 5, 2023 6:36 PM
To: Jonathan Woo <[email protected]>
Cc: Willie Hillyard <[email protected]>; Maziar Bozorginia <[email protected]>; Kevin Frink <[email protected]>
Subject: RE: Bid Advisory on Dryco ConstrucƟon, Inc. ‐ 2023 Street Maintenance Project ‐ FFC Case No. 1105SJ [CAUTION]: This email originated from outside of the organizaƟon. Do not click links or open aƩachments unless you recognize the sender and know the content is safe.
Good Evening Jonathan,
I spoke at length with our ExecuƟve team and HR Department and confirmed that the protest is based on false tenses.
As you know, we have a personal interest in ensuring the City's projects get completed with the best quality possible.
We complete numerous projects for CiƟes throughout the greater bay area and most, if not all, are completed without any issue. It’s unfortunate that someone would try and protest our bid based on these false grounds but we understand that you must take the necessary steps to ensure it is dealt with properly.
That being said, please see formal response below from the DRYCO ExecuƟve & Legal Team:
We appreciate you reaching out to ask for a response. DRYCO is commiƩed to complying with all wage and hour laws. In fact, DRYCO works with labor counsel, has a dedicated HR Team and strives to stay abreast of all industry standards for wage and hour laws.
We respecƞully disagree with the allegaƟons asserted. Mr. Bochmann’s asserƟon is without merit, as the claim is generic in nature. This asserƟon is likely generated because we are a non‐union contractor, and the fact of the maƩer is that we pay our employees at or above the prevailing wage guidelines. We also keep track of the apprenƟce requirements, via Ɵmely filing of the DAS 140 and 142.
In 2019, there was a PAGA claim filed that asserted that employees were not paid all wages due (aka wage theŌ), and the premise was that they were denied payment for overƟme. In this Country, one is innocent unƟl proven guilty – or in this case unƟl a court finds a violaƟon – which never occurred. In regard to the 2019 case, DRYCO produced evidence of detailed wage statements. DRYCO was faced with the difficult decision of liƟgaƟng during the peak of the pandemic to prove it was correct or paying a small amount per employee to resolve the dispute. It made the difficult business decision to seƩle. This decision meant money went into the employees’ pockets during a tough economic Ɵme rather than on lawyers and seemed a beƩer use of funds rather than spend Ɵme, money and energy proving it was right and taking money away from the company. As proof that this was a frivolous claim, the court iniƟally didn’t approve the seƩlement because the PlainƟff’s moƟon was “not supported by a declaraƟon of counsel that includes the informaƟon required by CCP 382.4 regarding the absence or presence of a relaƟonship between counsel and the residual beneficiary.” While this was eventually resolved, it further demonstrates it was a contested maƩer.
On January 5, 2023, another employee made similar claims, that are equally without merit. However, the mere fact they made a claim does not mean a violaƟon occurred. More importantly a review of the State DIR website for this PAGA 175
5 claim demonstrates that there is NO state invesƟgaƟon. The fact that some third‐party for‐profit organizaƟon is for its own personal reasons "invesƟgaƟng" and lobbying for another contractor to get the bid is not only an improper interference with contract in violaƟon of law, but also amounts to defamaƟon. There is absolutely no acƟon by the State or any other lawful and legiƟmate regulatory body that has made any finding against the Company. These are for profit claims meant to steer work away from non‐union shops.
Please feel free reach out to me once you've had a chance to read the above repsonse and let us know what the next steps are moving forward.
Thank you,
David Schaefer
ESTIMATOR & PROJECT MANAGER
[email protected] | 650‐296‐6767
42745 Boscell Road | Fremont, CA 94538
office 510‐438‐6500 | fax 510‐438‐6510
ASPHALT • STRIPING • SEALCOAT • SLURRY SEAL • CONCRETE • FENCE & IRON ‐‐‐‐‐Original Message‐‐‐‐‐
From: Jonathan Woo <[email protected]>
Sent: Wednesday, April 5, 2023 9:11 AM
To: David Schaefer <[email protected]>
Cc: Willie Hillyard <[email protected]>; Maziar Bozorginia <[email protected]>; Kevin Frink <[email protected]>
Subject: RE: Bid Advisory on Dryco ConstrucƟon, Inc. ‐ 2023 Street Maintenance Project ‐ FFC Case No. 1105SJ Hi David,
Sorry for the email earlier! I heard back from some staff that tomorrow by noon would be perfect! Again, sorry about the rush earlier!
Thank you,
Jonathan Woo, E.I.T.
Assistant Engineer
501 Main Street, Half Moon Bay, CA 94019
(650) 726‐8265
www.hmbcity.com
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