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HomeMy WebLinkAboutMINUTES - 08062013 - HA SD.1RECOMMENDATIONS CONSIDER accepting report on the status of complaint filed by Bay Area Roofers Labor-Management-Trust. BACKGROUND On February 23, 2010, the Board of Commissioners awarded a $2.3 million modernization contract for Las Deltas in North Richmond to Bayview Painting and Construction. Among other elements, the project included new roofs, windows, and exterior painting. Bayview did all the work on the project with the exception of roofing, which was subcontracted to Universal Corporation. In September 2010, near the end of the roofing portion of the project, the Housing Authority (HACCC) began to receive complaints about Universal Corporation from Tim Little of the Bay Area Roofers Labor-Management Trust (BARLMT). Mr. Little also brought his complaints before the Board at the public comment sections of the October 26, 2010 and January 25, 2011 meetings. BARLMT asserted that Universal Corporation was not meeting building and labor codes and also was not paying workers Davis-Bacon prevailing wages. The question of the quality of Universal's work was settled when every roof passed the required code inspections. Action of Board On: 08/06/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF COMMISSIONERS Contact: 925-957-8028 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 6, 2013 Joseph Villarreal, Executive Director By: , Deputy cc: SD.1 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:August 6, 2013 Contra Costa County Subject:Status report on Complaint Filed By Bay Area Roofers Labor Management Trust BACKGROUND (CONT'D) That left the question of whether or not workers were paid Davis-Bacon prevailing wages as required by the contract and federal regulations to be resolved. Staff began an investigation in the Fall of 2010 into whether or not Universal Corporation paid workers correctly on the Las Deltas modernization project. The investigation was made more difficult by the fact the workers provided several conflicting signed statements about the amount they had been paid. After investigating this matter for several months, staff concluded that it appeared Universal owed $28,735.60 to six different workers for up to three-and-a-half weeks of work. Therefore, on April 6, 2011 HACCC informed Bayview and Universal that this amount would be withheld from final payment. Subsequent to that notice, Mr. Little asserted the workers were actually underpaid for up to twelve weeks. As a result, a total of $77,973.60 was withheld in case BARLMT's claim was proven correct. Following regulatory procedures, Universal then appealed HACCC's decision to the U.S. Department of Housing and Urban Development (HUD) in May 2011. On June 4, 2013, HUD finally closed their investigation into this matter by finding in favor of Universal. HUD stated in their letter closing their investigation that "there is insufficient evidence to determine workers are owed back wages" and that HUD's determination was based on additional information and clarifications that were not provided to HACCC. Based on HUD's June 4th letter, HACCC released the $77,973.60 it was withholding to Bayview on June 27, 2013. The clearance letter from HUD's Office of Labor Relations is attached. FISCAL IMPACT None. Informational item only. CONSEQUENCE OF NEGATIVE ACTION None. Information item only.