Will Fresno Unified’s latest contractor controversy impact bid process?
Fresno Unified’s bid process is under scrutiny after trustees recently awarded bids to repaint two schools to a contractor that a trade union alleges hadn’t paid workers for completed jobs.
This isn’t the first time the district has awarded contracts to a contractor accused of ethically questionable practices. A similar issue arose last year when 22 carpenters levied claims they were never paid by Davis Moreno Construction for their work on Slater Elementary School in 2018.
Board trustees awarded Rio Linda-based H.B. Restoration the contracts to repaint to Sunnyside High and Vang Pao Elementary in a 5-0 vote, with trustees Elizabeth Jonasson Rosas and Veva Islas abstaining.
The school board’s May 28 approval came after Juan Rosales, representing District Council 16 of the Northern California & Nevada International Union of Allied Trades, asked the board to reconsider awarding the contracts to H.B. Restoration.
Rosales accused the company of being among the “unethical contractors” the district should hold accountable. He noted the district’s policy is to accept the lowest bid even if companies may “have a track record of labor violations” — a practice Rosales said “sends the wrong message” to students and families.
He called for the board to adopt a zero-tolerance policy on wage theft, vet bidders’ compliance with labor laws, and ensure contractors adhere to payroll reporting requirements.
H.B. Restoration owner Emmanuel Rozakis denied the trade union’s allegations and told The Bee the district has systems in place to help ensure accountability and compliance.
“Any allegations made by the public during the board meeting were unknown to the district and unverified,” a Fresno Unified spokesperson told The Bee in an email.
Board trustees sought alternatives when they discussed the contract, such as delaying the vote, but that would have resulted in the projects being postponed another year, according to chief operations officer Paul Idsvoog.
While trustees could have approved everything except the Sunnyside and Vang Pao projects, Fresno Unified attorney Bryan Martin said such a move would initiate a “due process right of the contractor to contest derogatory information,” such as accusations of wage theft.
Additionally, because the district would have to repost the bids, district officials recommended action proceeding with approval of all sixprojects before the board.
H.B. Restoration’s Vang Pao Elementary bid totals at $82,050, while its Sunnyside High School bid is $386,050. The second-lowest bids for the respective projects were $89,000 and $399,000.
Trustee Elizabeth Jonasson Rosas told The Bee she abstained from the board’s recent vote “out of frustration” because the conversation around the district’s bid process hasn’t shown much progression.
The district’s policy mandates that contracts must go to the lowest bidder, which is known as a hard-bid process.
“Except as authorized by law, contracts shall be let to the lowest responsible bidder who shall give such security as the Board requires, or else all bids shall be rejected,” Fresno Unified’s policy reads.
Additionally, district policy says bidders only need to be prequalified when projects have a threshold of $1,000,000 or more.
Alex Belanger, the district’s chief executive of operations, told the board that while supporting local companies is a priority, the current policies’ focus on awarding bids to contractors can result in out-of-towners getting the jobs.
Jonasson Rosas said the district has been exploring potential alternatives to a hard-bid process. Fresno Unified confirmed it was exploring establishing a project labor agreement (PLA).
“We continuously review our policies to ensure they remain current and reflect the best interests of the communities and families we serve. While these are the current versions in place, discussions around doing a project labor agreement are being explored by the district for future painting projects,” a district spokesperson said via email.
While a hard-bid process prioritizes the lowest bidder, a PLA includes input from labor unions and incorporates additional factors into the process of awarding contracts, such as ensuring payroll monitoring and no-strike guarantees.
