Mayor Martha Guerrero almost rejected an approved bidder for a $2.6-million contract, due to a history of  federal wage compliance law violations.

WEST SACRAMENTO, CA (MPG) - Failing to comply with prevailing laws does not sit well with Mayor Martha Guerrero.

The mayor nearly withdrew $2,364,269 to Central Valley Engineering & Asphalt, Inc. as the lowest responsible bidder for major traffic upgrades here at the June 26 council meeting.

In 2019, the Cycle 9 Federal Highway Safety Improvement Program (HSIP) awarded the city four grants for different Capital Improvement Plan (CIP) projects.

According to a staff report, two sets of project construction plans are bid as one project that entails citywide improvements beginning with installing "approach medians and median extensions to prohibit dangerous turning movements" at certain intersections.

The other Capital Improvement Plan projects include installing "midblock crosswalks with Rapid Rectangular Flashing Beacons and refuge islands, striping for high visibility crossings, ADA curb ramps and curb extensions; and having traffic signal hardware at signalized intersections to improve safety and mobility."

Five years later, Guerrero raised concerns over a bid advisory email she received the night before awarding Central Valley Engineers & Asphalt Inc. the contract against competing bidders: B&M Builders, Inc., that bid $2,832,675 and F. Loduca Co., which bid $3,310,399.

The mayor pulled the item from the Consent Agenda, questioning the low bidder's history. She asked assistant civil engineer Kevin Chan to explain how a questionable company got the contract.

 Assistant Civil Engineer Kevin Chan explains to officials that Central Valley Engineers & Asphalt Inc. has a history of not adhering to federal wage laws and all cities that have dealt with the company offered praise.

As per policy, Chan said the federally funded project was awarded to the lowest bid after "an extensive analysis on each bidder" was performed. However, it was not extensive enough, according to Guerrero, who said after "looking at this email, there seems to be a track record with this bidder failing to comply with prevailing wage laws."

The mayor again asked how a company that has "historically" failed to pay fines and "was even sued" could win the city's business.

"How are we still to be asked to approve this?" Guerrero asked. “These are the taxpayers' dollars we are trying to protect; we approve a bidder without a past, such as what I am noticing here in the documentation I received."

While Guerrero said she received a letter from the bidder, "rebutting" any wrongdoing, "you can't take away the penalties."

When he received the email the night before the meeting, Chan said, "first thing in the morning, we called other cities and they had nothing but good things to say about this contractor."

City Manager Aaron Laurel explained, "There is a difference between getting a bid advisory through an organization that wasn't a bidder and an actual bid protest that can be done on similar grounds."

"In this case, we had two other bidders, and to my knowledge, there were no other bid protests on this project," Laurel said.

 City Manager Aaron Laurel explains that Central Valley Engineers & Asphalt Inc. might have past penalties but there is no formal bid protest against them.

Before voting, the mayor said she appreciated Chan “digging deeper” and contacting other cities.

"It shows your due diligence in researching it a little further," Guerrero said, adding that she still worries about hiring someone with a history of not "taking care of their employees."

Guerrero made it clear that the only reason she would support the project is that she trusts city staff to monitor the company. Additionally, she asked to refine the process regarding a bidder's history in the future.

"I am open to that," Guerrero said before approving the contract with the rest of the council members.