VIA EMAIL – [email protected]
May 17, 2022
Jeffrey Chou
City of South San Francisco
315 Maple Avenue
South San Francisco, CA 94083
RE: BID ADVISORY
Low Bidder: CF Contracting, Inc.
Awarding Agency: City of South San Francisco
Project: Grand Ave and Airport Boulevard Streetscape
Improvement Project
FFC Case No.: 1007SJ
Dear Mr. Chou:
Please enter this formal bid advisory against the above-noted contractor as a matter of public record and circulate to all City Councilmembers. We respectfully request that CF Contracting, Inc. (CF) bid be rejected.
The bid provided to the City by CF signifies that the contractor would not be able to successfully perform its duties on the above project, while fulfilling its obligations with the Rules and Regulations Governing the Payment of Prevailing Wages, at the bid amount provided due to the following:
• ONGOING VIOLATIONS OF PREVAILING WAGE LAWS RESULTING IN WAGE THEFT
CF 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. CF engaged in this pattern of unlawful activity on various public works prevailing wage projects. Civil Wage and Penalty Assessments have been issued to CF by the State of California, Division of Labor Standards Enforcement (DLSE), Labor Commissioner’s office. We have provided supporting documentation for your review.
Furthermore, CF is currently under investigation by our offices and the State of California, Division of Labor Standards Enforcement (DLSE), Labor Commissioner’s office in connection with issues provided below. We have provided supporting documentation 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.
Government Code Section 54957.5
SB 343
Agenda: 5/25/2022 Reg CC
Item # 10
Jeffrey Chou
City of South San Francisco
May 17, 2022
• FAILURE TO COMPLY WITH WORKFORCE DEVELOPMENT AND FORMAL
APPRENTICESHIP PROGRAMS
CF 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 pre-apprenticeship programs and formal apprenticeship programs for specific apprenticeable crafts. They have failed to request, employ, train, and pay the proper prevailing wages to apprentices.
• FAILURE TO PROVIDE REQUIRED APPRENTICESHIP TRAINING FUND
CONTRIBUTIONS
CF has failed to comply with the requirements set forth in Labor Code § 1777.5(m)(1) by omitting payments to either the California Apprenticeship Council or a state approved apprenticeship program. We have provided supporting documentation for your review.
Please contact our office with questions, comments, or clarifications.
Sincerely,
Jesse Jimenez
Executive Director
Case: 1007SJ
cc: City of South San Francisco – City Council
Mark Nagales – Email: [email protected]
Buenaflor Nicolas – Email: [email protected]
Mark Addiego – Email: [email protected]
James Coleman – Email: [email protected]
Eddie Flores – Email: [email protected]
Labor Commissioner, State of California
Department of Industrial Relations
Division of Labor Standards Enforcement
Bureau of Field Enforcement- Public Works
TEL: (916) 263-3305
EMA[L: Srustdir.ca.gov
DATE:
Gavin Newsom, Governor
44 ypo.141"
In Reply Refer to Case No;
CIVIL WAGE AND PENALTY ASSESSMENT
Awarding Body
City and County of San Francisco - Dept, of Public Works " Work Performed in Count)' of
ALAMEDA
Project Name
Panhandle Playground Renovation
Project No,
DtR: 278136
DIR Project ID Io.
275136
Prime Contractor
CF Contracting Inc ' ,r ' .
CSLB License No,
967497
Contractor Registration (PWCR) No,
10000010918
Subcontractor(s)
,
CSLB License No. Contractor Registration (PWCR) No,
Second orTtord-tter Subcontractor, if applicable . CSLB License No. Contractor Registration (PWCR) No.
After an investigation concerning the payment of wages to workers employed in the execution of the contract for the above-named public works project, compliance with the apprenticeship standards found in Labor Code section 1777.5, or compliance with the registration requirements set forth in Labor Code section 1725.5, the Labor Commissioner has determined that violations of the California Labor Code have been committed by the contractor and/or subcontractor(s) identified above. In accordance with Labor Code section 1741, the Labor Commissioner hereby issues this Civil Wage and Penalty Assessment.
I TOTAL ASSESSMENT: $4,670.40 I
The nature of the violations of the Labor Code and the basis for the assessment are as follows:
Wage Violations:
Violation of Labor Code 1774 for failure to pay correct prevailing wages including predetermined increases effective 7/1/19 for 2018-2 wage determination for Northern California. Penalty assessed under LC §1775 at $40 per violation.
The attached Audit Summary further details the basis for this Assessment and itemizes the calculation of wages and penalties due under Labor Code sections 1775 and 1813, if applicable.
The Labor Commissioner has determined the total amount of wages due is: $1,310.40 The Labor Commissioner has determined the amount of
penalties assessed under Labor Code section 1775 is: $3.360.00 The Labor Commissioner has determined the amount of
penalties assessed under Labor Code section 1813 is: $O.O rM
-1
(continued on next page) 00
STATE LABOR COMMISSIONER
/
By/-/1
, Susan Rust
Auditor 1 Y h '
U1 -
PW[ 373 Ownod- 12 16,19)
c-n
Apprenticeship Violations:
Failure to submit DAS 140 to the applicable apprentices/up commnioees on this project. 22/ days of DAS 140 violations. Applicable committees - Northern California District Council of Laborers and Associaled Builders & Comflmacios N. California U.A.C.
The Labor Commissioner has determined the amount of
penalties assessed under Labor Code section 1777.7 is: $0.00 Labor Code Section 1776 Violations:
The Labor Commissioner has determined the amount of penalties assessed under Labor Code section 1776(h) against is: $0.00
Public Works Contractor Registration Violations:
The Labor Commissioner has determined the amount of penalties assessed under Labor Code section 1771.1 against General contractor
Subcontractor
Second-tier subcontractor
Third-tier subcontractor, if applicable
Please refer to page 6 for specific withholding obligations pertaining to these amounts. (continued on next page)
is: $0.00
is: $0.00
is: $0.00
is: $0.00
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code section 1742, an affected contractor or subcontractor may obtain review of this Civil Wage and Penalty Assessment by transmitting a written request to the office of the Labor Commissioner that appears below within 60 days after service of the assessment.
To obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Commissioner - State of California
Civil Wage and Penalty Assessment Review Office
P0 Box 255809
2801 Arden Way
Sacramento, CA 95825
A Request for Review either shall clearly identify the Civil Wage and Penalty Assessment from which review is sought, including the date of the assessment, or it shall include a copy of the assessment as an attachment, and shall also set forth the basis upon which the assessment is being contested. In accordance with Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review evidence to be utilized by the Labor Commissioner at the hearing within 20 days of the Labor Commissioner's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for Review will result in a final order which shall be binding on the contractor and subcontractor, and which shall also be binding, with respect to the amount due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. Labor Code section 1743.
In accordance with Labor Code section 1742(d), a certified copy of a final order may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the affected contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the State against the person assessed in the amount shown on the certified order. (continued on next page)
Payment of Civil Wage and Penalty Assessment
Payment of the assessed wages and/or penalties, including interest on all due and unpaid wages pursuant to Labor Code section 1741(b), must be made by check or money order payable to the Division of Labor Standards Enforcement and mailed to the following address along with a copy of this Civil Wage and Penalty Assessment:
State of California - Department of Industrial Relations Division of Labor Standards Enforcement - Cashiering Unit 2031 Howe Avenue, Suite 100
Sacramento, CA 95825-0196
Opportunity for Settlement Meeting
In accordance with Labor Code section 1742.1(c), the Labor Commissioner shall, upon receipt of a request from the affected contractor or subcontractor within 30 days following the service of this Civil Wage and Penalty Assessment, afford the contractor or subcontractor the opportunity to meet with the Labor Commissioner or his or her designee to attempt to settle a dispute regarding the assessment. The settlement meeting may be held in person or by telephone and shall take place before the expiration of the 60-day period for seeking a hearing as set forth under the heading Notice of Right to Obtain Review. No evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. This opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal hearing, and a settlement meeting may be requested even if a written Request for Review has already been made.
Requesting a settlement meeting, however, does not extend the 60-day period during which a formal hearing may be requested.
A written request to meet with the Labor Commissioner or his or her designee to attempt to settle a dispute regarding this assessment must be transmitted to Susan Rust at the following address:
State of California - Department of Industrial Relations Division of Labor Standards Enforcement - Public Works Unit 2031 Howe Avenue, Suite #100
Sacramento, CA 95825
(continued on next page)
Liquidated Damages
In accordance with Labor Code section 1742.1(a), after 60 days following the service of this Civil Wage and Penalty Assessment, the affected contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages in an amount equal to the wages, or portion that still remain unpaid. If the assessment subsequently is overturned or modified after administrative or judicial review, liquidated damages shall be payable only on the wages found to be due and unpaid.
Notwithstanding the above, in accordance with Labor Code section 1742.1(b), there shall be no liability for liquidated damages if the full amount of the assessment or notice, including penalties, has been deposited with the Department of Industrial Relations, within 60 days following service of the Assessment or Notice, for the Department to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus any interest earned, at the conclusion of all administrative and judicial review to the persons and entities who are found to be entitled to such funds.
The full amount of the assessment that should be deposited is: $4,670.40 Deposits must be made by check or money order payable to the Department of Industrial Relations with a cover letter and a copy of the Civil Wage and Penalty Assessment and mailed to:
Department of Industrial Relations
Attention Cashiering Unit
P.O. Box 420603
San Francisco, CA 94142
(continued on next page)
Statutory Withholding Obligations
1. Awarding Body Withholding Obligations
In accordance with Labor Code section 1727(a), before making payments to the contractor of money due under a contract for public work, the awarding body shall withhold and retain therefrom all amounts required to satisfy this Civil Wage and Penalty Assessment. The amount required to satisfy this Civil Wage and Penalty Assessment shall not be disbursed by the awarding body until receipt of final order that is no longer subject to judicial review.
The amount which must be withheld and retained by the awarding body pursuant to this Civil Wage and Penalty Assessment is:
Wages Due: $1,276.80
Training Funds Due: $33.60
Penalties Due Under Labor Code section 1775: $3,360.00
Penalties Due Under Labor Code section 1813: $0.00
Penalties Due Under Labor Code section 1777.7: $0.00
Penalties Due Under Labor Code section 1776(h) $0.00
Penalties Due Under Labor Code section 1771.1: $0.00
Total Withholding Amount: $4,670.40
2. Prime Contractor Withholding Obligations:
In accordance with Labor Code section 1727(b), if the awarding body has not retained sufficient money under the contract to satisfy this Civil Wage and Penalty Assessment based on a subcontractor's violations, the contractor shall, upon the request of the Labor Commissioner, withhold sufficient money due the subcontractor under the contract to satisfy the assessment and transfer the money to the awarding body. This amount shall not be disbursed by the awarding body until receipt of a final order that is no longer subject to judicial review.
FX]1f this box is checked, the Labor Commissioner hereby requests that the prime contractor withhold the following amount from money due the subcontractor and transfer the money to the awarding body to satisfy this assessment:
Wages Due:
Training Funds Due:
Penalties Due Under Labor Code section 1775:
Penalties Due Under Labor Code section 1813:
Penalties Due Under Labor Code section 1777.7:
Penalties Due Under Labor Code section 1776(h):
Penalties Due Under Labor Code section 1771.1:
Total Withholding Amount:
Distribution:
Awarding Body
Surety(s) on Bond
Prime Contractor
Subcontractor(s)
$1,276.80
$33.60
$3,360.00
$0.00
$0.00
$0.00
$0.00
$4,670.40
PUBLIC WORKS AUDIT WORKSHEET TOTAL AMOUNT DUE/OWING
4670.40
EMPLOYER! FIRM DEPUTY OFFICE WAGES DUE AND OWING
CF Contracting Inc Susan Rust Sacramento 127680
ADDRESS CITY PENALTIES DUE AND OWING
850 S. Van Ness Ave. #2 San Francisco, CA 94110 3360.00
PROJECT AWARDING BODY PRIME CASE NUMBER TRAINING FUND DUE/OWING Panhandle Playground R City and County of San Francin CF Contracting Inc 40-69973-678 33.60 PERIOD HOURS WORKED OTHER TOTAL PREVAILING WAGE REQUIREMENTS AMOUNT OWING PENALTIES 1PENALTIES TRNG. TOTAL EMPLOYEE CLASSIFICATION WORKED ST. 01. D. T. WAGES PAID WAGES PAID OTHER TOTAL WAGES AND UNPAID LC 177-; ILC 1813 FUND AMOUNT DUE 07119/19 -
Hector Acosta Predetermined Increa 11/15/19 336 0 0 0.00 15191.04 0.00 18529.44 638.40 1680.00 0.00 16.80 2335.20 07119/19 -
Juan EsguivelAndrade Predetermined Increa 11/15/19 336 0 0 0.00 18191.04 0_00 18829.44 638.40 1680.00 0.00 16.80 2335.20 01/01/18 -
06/24/19 0 0 0 0_00 0_00 0.00 0.00 0_00 0_00 0_00 0.00 0.00 01/01/18 -
06125/18 01 0 01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0_00 0_00 01/01/18 -
06/25/18 0 0 0 0.00 0.00 0_00 0.00 0.00 0_00 0.00 0.00 0_00 01/01/18 -
06125/18 0 0 0 0.00 0_00 0.00 0.00 0.00 0_00 0.00 0_00 0.00 01/01118 -
06/25/18 0 0 0 0.00 0.00 0.00 0.00 0.00 0_00 0.00 0_00 0_00 01101/18 -
06/25118 01 o 01 0_00 0.00 0_00 0_00 0_00 0_00 0.00 0_00 0_00 01/01/18 -
06/25/18 0 0 0 0_00 0.00 0.00 0.00 0.00 0.00 0.00 0_00 0.00 01/01/18 -
06/25118 0 0 0 0.00 0.00 0.00 0_00 0_00 0.00 0.00 0.00 0.00 01/01/18 -
06125/18 0 0 0 0.00 0.001 0_00 0.00 0.00 0.00 0_00 0.00 0_00 01/01/18 -
06125118 0 0 01 0.00 0_00 0.00 0.00 0.00 0.00 0_00 0.00 0.00 01/01/18 -
06/25/18 0 0 0 0_00 0.00 0.00 0.00 0.00 0_00 0.00 0.00 0.00 01/01118 -
06125/18 0 0 0 0.001 0.00 0_00 0.00 0.001 0_00 0_00 0.00 0.00 01/01/18 -
06125/18 01 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0_00 0.00 0.00 01/01/18 -
06/25/18 0 0 0 0.00 0.00 0.00 0.00 0.00 0_00 0_00 0_Do 0.00 Balance Brought forward from aud1t3 Summary -
-
0_00 0_00 0_00 0.00 0.00 0.00 0_00 0.001 0.00
The following entries represent the amounts relied upon for O.00F 36382-081 0.00 37658.88 1276.80 3360.00 0.00 33.60 $4,670.40 calculating Labor Code 1775 and 1613 penalties.
11776 (h) Penalty Due I $ - I
1775 40.00 Per Day
1813 25.00 Per Day 11777.7 Penalty Due I $ - I
1776(h) 100.00 Per Day
17777 80.00 Per Day CiviIWage and Penalty Assessment Total Amount $4,670.40 I I 1777.7 221 Days I
Summary Page 1
PREVAILING WAGE DETERMINATION SUMMARY
CODE HOURLY HOLIDAY TRAVEL & Other hourly
NO. CLASSIFICATION Effective Date RATE Contributions TRAiNING TIME 1/2 SUNDAY SUBSISTENCE Requirements IlLaborer Grp 2 Area 1 8/22/2018 30.640 23.500 0.450 45.960 61.280 II
ININ
[I
l'IlilllI IIIi III
2 Predeterrmnod Increase 71 l,.1D 19 31,640 L4 4 00 0.500 47.460 6328 ill
filF I I
Ir IIII ILL
WAGE DETERMINATION INFORMATION
CODE
NO. CLASSIFICATION WAGE DETERMINATION NO.
I Laborer Grp 2 Area 1 NC-23-102-1-2018-2
2 Predetermined Increase I NC-23-102-1-2018-2
STATE OF CALIFORNIA
DEPARTMENT OF INDUSTRIAL RELATIONS - DIVISION OF LABOR STANDARDS ENFORCEMENT
CERTIFICATION OF SERVICE BY MAIL
(C.C.P. 1013a) OR CERTIFIED MAIL
I, Susan Rust do hereby certify that I am a resident of or employed in the County of Sacramento over 18 years of age, and not a party to the within action, and that I am employed at and my business address is:
Division of Labor Standards Enforcement
Bureau of Field Enforcement
2031 Howe Ave. Suite 100
Sacramento, CA. 95825
On January 22, 2021 , I served the within: (1) Civil Wage and Penalty Assessment by placing a true copy thereof in an envelope addressed as follows:
Francisco - Dept. of Public
Works CF Contracting Inc
1155 Market Street 4th Floor, 850 S. Van Ness Ave. #21
San Francisco,CA 94103 San Francisco, CA 94110
lAttention: Jacob Friedman RMO
and then sealing the envelope and with postage and certified mail fees (if applicable) thereon fully prepaid, and then depositing it in the United States mail in Sacramento by:
X Ordinary first class mail
X Certified mail
Registered mail
I certify tinder penalty of perjury that the foregoing is true (111(1 correct Executed , at January 22, 2021 , at
SIGNATURE
STATE CASE NO.
40-69973-678
P \V 34 (Rid 4/2/2/22)
Sacramento , County of Sacramento , California
5/17/22, 3:59 PM California Apprenticeship Council - Public works training fund contributions https://www.dir.ca.gov/CAC/TrainingFund/TFLetter.asp 1/1 STATE OF CALIFORNIA Gavin Newsom, Governor
CALIFORNIA APPRENTICESHIP COUNCIL
P.O. Box 420603
San Francisco, CA 94142-0603
(415) 703-4920
To whom it may concern:
According to transactions recorded as of May 16, 2022, no contributions have been received for Contractors License number 967497 in the past four years.
If you have any questions please contact the Division of Apprenticeship Standards. [email protected] Glen Forman
for the Secretary, California Apprenticeship Council