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2020 Urban Habitat Formal Complaint by So. Cal Labor MgmtLABOR W.O.E. Local No.12 Ronald J. Sikorski Chairman Dan E. Hawn Co -Chairman Larry Davison Trustee Shawn Kinsey Trustee MANAGEMENT Jordan Brandman, Trustee B.I.A. Mike Rodriguez, Trustee A.G.C. Wesley F. May, Trustee S.C.C.A. Paul Von Berg, Trustee S.C.C.A. Southern California Labor/Management Operating Engineers Contract Compliance Committee 100 East Corson Street, Suite 222, Pasadena, California 91103 Telephone: (626) 564-6070 Fax: (626) 564-6393 March 4, 2020 Nichole Romane, Deputy City Clerk City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Re: Formal Complaint — Prime Contractor: Urban Habitat — City of La Quinta, La Quinta SilverRock Park Venue Project No. 2016-08 Dear Ms. Romane, Please find enclosed a copy of our correspondence sent to the State of California D.I.R. related to the above. We have not enclosed the numerous documents attached to our complaint since most are on file in your office. If you would like to have a complete package of referenced exhibits, please let us know and we will provide immediately. Thank you again for your professional assistance. DSL:ad Sincerely, David S. Lanham Contract Compliance Representative ellai7ham@_oecc]2.org ,w w Southern California Labor/Management Operating Engineers Contract Compliance Committee 7Z 100 East Corson Street, Suite 222, Pasadena, California 91103 N10� / � i 1 l � \��,�` Telephone: (626) 564-6070 Fax: (626) 564-6393 �� March 4, 2020 LABOR DLSE-BOFE Public Works LU.O.E. Local No.12 Attn: Complaints Unit Ronald J. Sikorski 300 Oceangate, Suite 850 Chairman Long Beach, CA 90802 Dan E. Hawn Co -Chairman RE: Formal Complaint —Prime Contractor: Urban Habitat Project, City of La Larry Davison Quinta "La Quinta SilverRock Park Venue" Project No. 2016-08 Trustee Shawn Kinsey Dear Sir/Madam: Trustee Please accept this correspondence as a formal complaint against prime contractor MANAGEMENT Urban Habitat for failure to pay the required prevailing wages on the project referenced above. Certified payrolls obtained by this office clearly indicate that the Jordan Brandman, Trustee B.I.A. contractor is paying landscape wages on this new construction project. We provide copies of certified payrolls here labeled Exhibit A. Mike Rodriguez, Trustee A.G.C. In Addition to Exhibit A, we will provide several documents in support of our Wesley F. May, Trustee S.C.C.A. position that the higher Master Labor Agreement wage rates are applicable to this project. Please look to the enclosed Invitation to Bid document (Exhibit B). The Paul Von Berg, Trustee S.C.C.A. description of work is stated in part: " ....work includes precise grading, landscaping and irrigation, utility construction, stream and lake construction, furnishing and installation of pump for lake, furnishing and installation of lighting, decomposed granite parking lot construction, concrete ADA parking space construction, concrete and decomposed walkways, construction of a stage, construction of outlet structures, construction of retaining walls and construction of an outdoor theater with seating area as an additive alternate..." It is obvious the description of work above paints this project as a new construction project. Please not too, contained in the Invitation to Bid (Exhibit B) that the city: ".... has determined that the general contractor shall possess a valid class A (General Contractor) .... License. If this project was simply a landscape type project, a landscape license (C-27) would have been required. We now turn to the bid document (Exhibit C) identified as: "Addendum 04-July 26, 2019 — Section 1210 Bid Schedule Project No. 2016-08 La Quinta SilverRock Park Venue." -.—,m March 4, 2020 Page Two This document consists of 8 pages, 1210-1 to 1210-8. The specific bid items are spelled out in pages 1210-2 to 1210-7. There exist 8 item categories which are: General, Site Improvements, Water/Sewer/Irrigation Improvements, Site Storm Drainage, Water Feature, Site Amenities, Site Electrical and Lighting and Landscape & Irrigation. This Bid Schedule lays out the contractor's plan or timeline of how the project will proceed from start to finish. Look to the item numbers for each of the 8 categories listed. The General category has items 1-5, Site Improvements lists items 6-25, Water/Sewer/Irrigation Improvements lists items 26-35, Site Storm Drain lists items 36-47, Site Amenities lists items 48-57, Site Electrical and Lighting lists items 58-68 and finally, category Landscape and Irrigation lists items 69-78. Out of 78 items, 10 are found in the last category. More importantly, according to the schedule these items are the final items to be performed bringing completion to this project. Now it could be argued that the Landscape prevailing wages could or would be applicable on this final phase of the project, the last scheduled items before completion. The certified payrolls (Exhibit A) submitted here indicate the lower landscape wages from the start of the project and throughout. We would argue that the higher MLA rates are applicable for most of the project schedule or items 1-68. We will pause here to discuss the advertised date, applicable rate set dates and briefly compare Landscape rates versus Master Labor Agreement rates. Looking back to the previous document Invitation to Bid (Exhibit B). You will note the advertised date of 7/10/2019 and 7/17/2019 which places the published applicable rate determination at 2019-1 published rates. We will now compare the applicable wage rates versus certified payroll dates to determine precise applicable published rates for crafts identified by the contractor. Operating Engineer — single asterisk — 2019-1 Laborers — double asterisk — 2019-2 Cement Mason — double asterisk — 2019-2 The Cement Mason reported rates on certified payroll are close to the total required rate of $62.80 ($62.80 vs. $62.67). This complaint is primarily directed at the Landscape Operator, Landscape Laborer classifications compared to the Master Labor Agreement rates for each. For the Labor Landscape rate vs. Labor MLA rate, the contractor reported rate is short $2.00 per hour. For the Landscape Operator rate compared to the Operator MLA rate, the contractor reported rate is substantially short. Looking to the Operator 2019-1 rate for Group 1, the total required rate is $72.34 per hour. If the most common Group 8 rate is applied, the total rate is $75.23 per hour. Urban Habitat CPR rate plus the PW-26 benefits equals $65.26 per hour, far short of the MLA rate (See Exhibit D and Exhibit E) Laborers 2019-2, Operators 2019-1. March 4, 2020 Page Three Please look now to the Exhibit F, the subcontractors list provided at the time of bid by prime Urban Habitat. The subcontractor Cook & Solis Construction holds a C-27 Landscape license. This subcontractor is paying Master Labor Agreement Wages, not Landscape wages. Please see Exhibit G, certified payrolls for Cook & Solis Construction. We submit here as Exhibit H, certified payrolls for subcontractor Archuleta Concrete which indicate that this subcontractor is paying the Master Labor Agreement wages. We submit here as Exhibit I the Notice Regarding Advisory Scope of Work for the Southern California and San Diego Landscape/Irrigation Laborer Tenders' General Prevailing Wage Determinations dated March 4, 2011. This document specifies clearly classifications and type of work that shall not be applied or used. Urban Habitat utilizes some of these classifications in documents submitted here (CPR -Exhibit A). Exhibit J and Exhibit K are the scope and work provision pages for Landscape/Irrigation Laborer Tender, 2019-1 and 2019-2 respectfully. Each document has inserted the March 4, 2011 "Notice...." as mentioned previously in our Exhibit I. On page 3 of the new Exhibits J and K, under work covered Section A it states in part: "A. Work covered by this agreement includes all work in the Landscape industry" (emphasis added). And our final document submitted here Exhibit L, the City of La Quinta City Council Meeting Staff Report August 6, 2019 — Consent Calendar Item No.8. Page 70 lists total budget numbers for the project. Landscape language is nowhere to be found. The last paragraph on page 70 starts with ".... on July 2, 2019 staff solicited construction bids..." (emphasis added). Constructor bids were asked for, not Landscape bids. The issue presented here is Landscape Wages versus Construction Wages. The prime contractor as listed from day one, landscape wages for the bulk of their employees. Other contractors, subcontractors on site appear to be paying the MLA rates. The intention of landscape collective bargaining rates published by the State of California were for use applicable to landscape projects. We are confident in our stated position here backed up with several documents supporting our position. Urban Habitat cannot be allowed to use the lower landscape rates on this construction project. With this complaint letter and supporting documents we will to provide your PW-1 complaint form. We will certainly assist your office if further documentation or clarity is needed. Thank you in advance for your assistance. March 4, 2020 Page Four Sincerely, P . L'�_ i �V\d DLA David S. Lanham, Contract Compliance Representative d1anhani rr oecc1 ?. org Cc: Nichole Romane, Deputy City Clerk Exhibits: A — Urban Habitat Certified Payrolls B — Invitation to Bid C — Addendum 4 July 26, 2019 Bid Schedule D — Laborers 2019-2 Rates (page 13) E — Operators 2019-1 Rates (page 7) F — Subcontractors List G — CPRs for Sub Cook & Solis Construction H — CPRs for Sub Archuleta Construction I —Notice Regarding Advisory Scope March 4, 2011 J — Scope of Work Laborers Landscape 2019-1 K — Scope of Work Laborers Landscape 2019-2 L — City of La Quinta City Council Meeting Staff Report August 6, 2019 — Consent Calendar Item No.8 DSL:ad Original Contract 4,218,880.00$ Budget 6,000,000.00$ Change Order No. 1 5,629.99$ Original Contract 4,218,880.00$ Change Order No. 2 8,758.75$ CCO 1‐8 613,204.22$ Change Order No. 3 42,996.50$ CCO 9 98,160.57$ Change Order No. 4 35,195.04$ CCO 10 30,344.92$ Change Order No. 5 209,855.77$ Budget Remaining 1,039,410.29$ Change Order No. 6 321,900.00$ Change Order No. 7 3,563.06$ Change Order No. 8 (14,694.89)$ 613,204.22$ Total CCO 1‐8Change Order No. 9 98,160.57$ 711,364.79$ Total CCO 1‐9Change Order No. 10 30,344.92$ 741,709.71$ Total CCO 1‐10TOTAL 4,960,589.71$ 4,930,244.79$