08 Staff Report.2024 Annual Concrete Award with attachments
PREPARED BY: Gary Heap
Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Public
Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/07/2024
DATE: May 1, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: 2024 Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-
9921):
a. Award and Authorize the Town Manager to Execute a Public Works
Contract with Villalobos and Associates in the Amount of $409,480;
b. Authorize Town Manager to Execute Change Orders in an Amount Not to
Exceed Ten Percent (10%) of the Contract Award Amount;
c. Authorize an Expenditure Budget Transfer in an Amount of $185,331 from
the Annual Street Repair and Resurfacing Project (CIP No. 811-9901); and
d. Approve the Project Construction Plans as Required by Government Code
830.6 – Design Immunity
RECOMMENDATION:
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921):
a. Award and authorize the Town Manager to execute a public works contract with Villalobos
and Associates (Attachment 1) in the amount of $409,480;
b. Authorize Town Manager to execute change orders in an amount not to exceed ten percent
(10%) of the contract award amount;
c. Authorize an Expenditure Budget Transfer in an amount of $185,331 from the Annual Street
Repair and Resurfacing Project (CIP No. 811-9901); and
d. Approve the Project Construction Plans as required by Government Code 830.6 – Design
Immunity
BACKGROUND:
The adopted Fiscal Year (FY) 2023/24-2027/28 Capital Improvement Program (CIP) Budget
designates funding for the 2024 Annual Curb, Gutter, and Sidewalk Maintenance Project
PAGE 2 OF 5 SUBJECT: Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) DATE: May 1, 2024
BACKGROUND (continued):
(CIP No. 813-9921). The goal of this annually funded project is to replace and improve
damaged or outdated curbs, gutters, sidewalks, driveways, and curb ramps within the Town’s
jurisdiction to address safety and operational issues and to improve accessibility.
For the 2024 Annual Curb, Gutter, and Sidewalk Maintenance (Concrete) Project, a large
portion of the work focuses on replacing or retrofitting curb ramps for compliance with the
Americans with Disabilities Act (ADA) and other accessibility requirements. Title II of the ADA
obligates jurisdictions to upgrade non-conforming curb ramps when streets are resurfaced from
one intersection to another. The United States Department of Justice has determined that
surface treatments such asphalt overlay, rubber cape seal, and micro-surfacing trigger the
requirement for ADA compliant curb ramps on associated streets.
DISCUSSION:
The 2024 project was advertised for bid on Friday, March 8, 2024. On April 3, 2024, bid
packages were opened and two contractors submitted bids: RK Engineering and Villalobos and
Associates. A summary of bid results is presented in Table 1 with Villalobos as the apparent low
bidder. A completed Bid Summary is in Attachment 2.
Table 1. Bid Summary for 2024 Curb, Gutter, Sidewalk (CIP No. 813-9921)
Base Bid Add. Alt. 1 Add. Alt. 2 Total Bid
Amount
Engineer’s Estimate $454,000.00 $60,000.00 $23,400.00 $537,400.00
RK Engineering $453,140.00 $69,250.00 $25,720.00 $548,110.00
Villalobos and Associates $349,670.00 $42,300.00 $17,510.00 $409,480.00
Following the bid opening, the Town received a Letter of Bid Advisory from the Foundation for
Fair Contracting (FFC) (Attachment 3). In the letter, FFC made four specific allegations against
Villalobos and Associates. Specifically:
• Ongoing Violations of Prevailing Wage Laws Resulting in Wage Theft
• Failure to Comply with Bid Specifications/Unfair Competitive Advantage
• Failure to Comply with Workforce Development and Formal Apprenticeship Programs
• Occupational Safety and Health Administration (OSHA) Violations Resulting in Fines
Issued and Upheld
PAGE 3 OF 5 SUBJECT: Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) DATE: May 1, 2024
DISCUSSION (continued):
In response to the letter, staff met with Villalobos and Associates on April 16. In addition,
Villalobos has provided a written response (Attachment 4). The concerns raised in FFC’s letter
have been reviewed by staff and evaluated independently based on the discussions with
Villalobos. Staff has determined that Villalobos had reasonable responses to each of the
allegations, and that they have put measures in place to ensure that these issues will not occur
on this job. The discussion of the allegations follows:
1) Prevailing wage violations: Complaints of prevailing wage violations were made with
regard to projects in Saratoga and Morgan Hill. For the Saratoga matter, Villalobos paid
a penalty. The Morgan Hill matter is currently being investigated by the Department of
Labor Standards Enforcement. A determination has not been made. Villalobos has
taken recent steps to assure internal compliance with prevailing wage tracking, and
assured Town staff that it will comply with prevailing wage laws. This requirement is
described in Section 7.2, Prevailing Wage, in the draft contract between the Town and
Villalobos and Associates.
2) Failure to Comply with Bid Specifications/Unfair Competitive Advantage: Town staff
does not have any evidence that this has occurred with the Town’s bid on this project or
in other jurisdictions
3) Failure to Comply with Workforce Development and Formal Apprenticeship Programs:
A complaint regarding failure to employ apprentices in another jurisdiction are currently
being investigated by the Department of Labor Standards Enforcement. A
determination has not been made. The Department of Industrial Relations (DIR)
requires all public works contracts valued at $30,000 or more to carry an obligation to
hire apprentices. Villalobos has assured Town staff that it will comply with the State’s
apprenticeship requirements. This requirement is specified by the DIR, and Section 7.3,
DIR Registration, requires the contractor to register with DIR for this project.
4) OSHA Violations: In reviewing the FFC allegations and bid documents submitted by
Villalobos and Associates to the Town, staff noted that Villalobos had not claimed any
past OSHA or Cal OSHA violations even though there had been a previous determination
of an OSHA violation in another jurisdiction. Villalobos stated that this was an
administrative oversight by the individual who filled out the bid form. If a future OSHA
violation is filed for work being done in Los Gatos or another jurisdiction while Villalobos
and Associates is under contract with the Town, the draft agreement includes language
that requires the firm to notify the Town immediately of the violation. This error in the
bid documents does not cause the bid to be unresponsive.
PAGE 4 OF 5 SUBJECT: Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) DATE: May 1, 2024
DISCUSSION (continued):
Based on the meeting with Villalobos and the follow up letter, staff believes that Villalobos is
working to rectify these issues. In addition, the draft agreement with Villalobos and Associates
contains safeguards to address all of the issues raised in the FFC letter. Villalobos and
Associates was also awarded the Town’s 2021 Curb, Gutter, and Sidewalk contract and
completed the work without incident or issue. Based on this, staff recommends that the Town
proceed with award to Villalobos and Associates.
During execution of the contract, PPW staff monitors work site safety consistent as the
Department does with all contractors that perform Town-funded work. While the Town is not
responsible for verifying that the correct wages are paid to the contractor’s employees, Town
staff are responsible for verifying the appropriate records are submitted to the State of
California for their review, and this will be completed for the Villalobos contract.
Government Code 830.6 – Design Immunity states that neither a public entity nor a public
employee is liable under this chapter for an injury caused by the plan or design of a
construction of, or an improvement to, public property where such plan or design has been
approved in advance of the construction or improvement by the legislative body. Since this
project was not brought to Town Council with a request to bid, at which time approval of the
construction plans would have taken place, staff requests that the Town Council also approve
the construction plans for this project. The project construction plans can be found at the
following link: https://www.losgatosca.gov/108/Capital-Improvement-Program
CONCLUSION:
The proposed actions would allow the Town to proceed with executing an agreement for
construction services with Villalobos and Associates to complete the annual curb, gutter and
sidewalk work within the Town.
COORDINATION:
This memorandum has been coordinated with the Finance Department and the Town
Attorney’s Office.
PAGE 5 OF 5 SUBJECT: Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) DATE: May 1, 2024
FISCAL IMPACT:
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA as being Categorically Exempt (Section 15301(c)). A
Notice of Exemption has been filed.
Attachments:
1. Construction Agreement with Exhibit A - Bid Summary
2. Bid Summary
3. Bid Advisory Letter from Foundation for Fair Contracting
4. Villalobos Response to FFC Claims
Budget Costs
GFAR 451,332$
Budget Transfer (Approved by Town Council on 11/21/23)(5,500)$
Budget Transfer (Approved by Town Council on 12/19/23)(35,150)$
Budget 410,682$
2023 Project Construction Costs (7/1/23-7/3/23 Service)89,535$
Contract with Precision Concrete for Additional Sidewalk Repair Services 44,000$
Misc. Expenses 50$
Costs to Date 133,585$
Current Available Balance 277,097$
GFAR 277,097$
Transfer from CIP #411-811-9901 - Annual Street Repair and Resurfacing
(Proposed with this Staff Report)185,331$
Budget 462,428$
Construction - Public Works Contract (Requested with this Staff Report)409,480$
Construction Contingency - Public Works Contract (10%)40,948$
Temporary/Part-Time Staff 12,000$
Additional Costs Proposed in this Staff Report 462,428$
Available Balance -$
Curb, Gutter, and Sidewalk Maintenance Project 2024
CIP No. 813-9921
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project CONTRACT
Project #813-9921 Page 1
Contract
This public works contract (“Contract”) is entered into by and between the Town of Los Gatos
(“Town”) and Villalobos & Associates (“Contractor”), for work on the FY 2023/24 Curb, Gutter,
and Sidewalk Maintenance Project (“Project”).
The parties agree as follows:
1.Award of Contract. In response to the Notice Inviting Bids, Contractor has submitted a
Bid Proposal to perform the Work to construct the Project. On April 2, 2024, Town
authorized award of this Contract to Contractor for the amount set forth in Section 4,
below.
2.Contract Documents. The Contract Documents incorporated into this Contract include
and are comprised of all of the documents listed below. The definitions provided in Article
1 of the General Conditions apply to all of the Contract Documents, including this
Contract.
2.1 Notice Inviting Bids;
2.2 Instructions to Bidders;
2.3 Addenda, if any;
2.4 Bid Proposal and attachments thereto;
2.5 Contract;
2.6 Payment and Performance Bonds;
2.7 General Conditions;
2.8 Special Conditions;
2.9 Project Plans and Specifications;
2.10 Change Orders, if any;
2.11 Notice of Potential Award;
2.12 Notice to Proceed;
2.13 Locations of Work (Appendix A); and
2.14 Standard Plans (Appendix B); and
2.15 The 2010 Caltrans Standard Specifications, as revised.
3.Contractor’s Obligations. Contractor will perform all of the Work required for the Project,
as specified in the Contract Documents. Contractor must provide, furnish, and supply all
things necessary and incidental for the timely performance and completion of the Work,
including all necessary labor, materials, supplies, tools, equipment, transportation, onsite
facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor
must use its best efforts to diligently prosecute and complete the Work in a professional
and expeditious manner and to meet or exceed the performance standards required by
the Contract Documents. Should the contractor receive any violations from OSHA on this
project, the contractor is required to notify the Town immediately.
ATTACHMENT 1
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project CONTRACT
Project #813-9921 Page 2
4. Payment. As full and complete compensation for Contractor’s timely performance and
completion of the Work in strict accordance with the terms and conditions of the Contract
Documents, Town will pay Contractor $409,480 (“Contract Price”) for all of Contractor’s
direct and indirect costs to perform the Work, including all labor, materials, supplies,
equipment, taxes, insurance, bonds and all overhead costs, in accordance with the
payment provisions in the General Conditions.
5. Time for Completion. Contractor will fully complete the Work for the Project, meeting all
requirements for Final Completion, within 40 Working Days from the start date set forth
in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives
any claim for delayed early completion.
6. Liquidated Damages. As further specified in Section 5.4 of the General Conditions, if
Contractor fails to complete the Work within the Contract Time, Town will assess
liquidated damages in the amount of $2,000 per day for each day of unexcused delay in
achieving Final Completion, and such liquidated damages may be deducted from Town’s
payments due or to become due to Contractor under this Contract.
7. Labor Code Compliance.
7.1 General. This Contract is subject to all applicable requirements of Chapter 1 of
Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages,
working hours and workers’ compensation insurance, as further specified in Article
9 of the General Conditions.
7.2 Prevailing Wages. This Project is subject to the prevailing wage requirements
applicable to the locality in which the Work is to be performed for each craft,
classification or type of worker needed to perform the Work, including employer
payments for health and welfare, pension, vacation, apprenticeship and similar
purposes. Copies of these prevailing rates are available online at
http://www.dir.ca.gov/DLSR.
7.3 DIR Registration. Town may not enter into the Contract with a bidder without
proof that the bidder and its Subcontractors are registered with the California
Department of Industrial Relations to perform public work pursuant to Labor Code
§ 1725.5, subject to limited legal exceptions.
8. Workers’ Compensation Certification. Pursuant to Labor Code § 1861, by signing this
Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code §
3700 which require every employer to be insured against liability for workers’
compensation or to undertake self-insurance in accordance with the provisions of that
code, and I will comply with such provisions before commencing the performance of the
Work on this Contract.”
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project CONTRACT
Project #813-9921 Page 3
9. Conflicts of Interest. Contractor, its employees, Subcontractors, and agents may not
have, maintain, or acquire a conflict of interest in relation to this Contract in violation of
any Town ordinance or requirement, or in violation of any California law, including
Government Code § 1090 et seq., or the Political Reform Act, as set forth in Government
Code § 81000 et seq. and its accompanying regulations. Any violation of this Section
constitutes a material breach of the Contract.
10. Independent Contractor. Contractor is an independent contractor under this Contract and
will have control of the Work and the means and methods by which it is performed. Contractor
and its Subcontractors are not employees of Town and are not entitled to participate in any
health, retirement, or any other employee benefits from Town.
11. Notice. Any notice, billing, or payment required by or pursuant to the Contract
Documents must be made in writing, signed, dated, and sent to the other party by
personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF file.
Notice is deemed effective upon delivery, except that service by U.S. Mail is deemed
effective on the second working day after deposit for delivery. Notice for each party must
be given as follows:
Town:
Parks and Public Works
Town of Los Gatos
41 Miles Avenue
Los Gatos, CA 95030
Attn: Nicolle Burnham, Parks and Public Works Director
nburnham@losgatosca.gov
Copy to: Janice Chin, Assistant Engineer
jchin@losgatosca.gov
Contractor:
Name:___ Villalobos & Associates______________
Address:___________________________________
Town/State/Zip:_______________________________
Phone:_____________________________________
Attn:_______________________________________
Email:______________________________________
Copy to:____________________________________
12. General Provisions.
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project CONTRACT
Project #813-9921 Page 4
12.1 Assignment and Successors. Contractor may not assign its rights or obligations
under this Contract, in part or in whole, without Town’s written consent. This
Contract is binding on Contractor’s and Town’s lawful heirs, successors and
permitted assigns.
12.2 Third Party Beneficiaries. There are no intended third party beneficiaries to this
Contract.
12.3 Governing Law and Venue. This Contract will be governed by California law and
venue will be in the Santa Clara County Superior Court, and no other place.
Contractor waives any right it may have pursuant to Code of Civil Procedure § 394,
to file a motion to transfer any action arising from or relating to this Contract to a
venue outside of Santa Clara County, California.
12.4 Amendment. No amendment or modification of this Contract will be binding
unless it is in a writing duly authorized and signed by the parties to this Contract.
12.5 Integration. This Contract and the Contract Documents incorporated herein,
including authorized amendments or Change Orders thereto, constitute the final,
complete, and exclusive terms of the agreement between Town and Contractor.
12.6 Severability. If any provision of the Contract Documents is determined to be
illegal, invalid, or unenforceable, in whole or in part, the remaining provisions of
the Contract Documents will remain in full force and effect.
12.7 Iran Contracting Act. If the Contract Price exceeds $1,000,000, Contractor
certifies, by signing below, that it is not identified on a list created under the Iran
Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person
engaging in investment activities in Iran, as defined in the Act, or is otherwise
expressly exempt under the Act.
12.8 Authorization. Each individual signing below warrants that he or she is authorized
to do so by the party that he or she represents, and that this Contract is legally
binding on that party. If Contractor is a corporation, signatures from two officers
of the corporation are required pursuant to California Corporations Code § 313.
[Signatures are on the following page.]
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project CONTRACT
Project #813-9921 Page 5
The parties agree to this Contract as witnessed by the signatures below:
TOWN: Approved as to form:
s/_______________________________ s/__________________________________
_Laurel Prevetti, Town Manager______ _Gabrielle Whelan, Town Attorney______
Name, Title Name, Title
Date: ___________________________ Date: ______________________________
Attest:
s/_______________________________
_Wendy Wood, CMC, Town Clerk______
Name, Title
Date: ___________________________
CONTRACTOR: __ Villalobos & Associates __
Business Name
s/_______________________________ Seal:
_________________________________
Name, Title
Date: ____________________________
Second Signature (See Section 12.8):
s/_______________________________
_________________________________
Name, Title
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project CONTRACT
Project #813-9921 Page 6
Date: ____________________________
___________________________________________________
Contractor’s California License Number(s) and Expiration Date(s)
END OF CONTRACT
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project PAYMENT BOND
Project #813-9921 Page 7
Payment Bond
The Town of Los Gatos (“Town”) and __ Villalobos & Associates __ (“Contractor”) have entered
into a contract for work on the 2024 Annual Curb, Gutter, and Sidewalk Maintenance Project
(“Project”). The Contract is incorporated by reference into this Payment Bond (“Bond”).
1. General. Under this Bond, Contractor as principal and ____________________________,
its surety (“Surety”), are bound to Town as obligee in an amount not less than $409,480,
under California Civil Code § 9550 et seq., to ensure payment to authorized claimants.
This Bond is binding on the respective successors, assigns, owners, heirs, or executors of
Surety and Contractor.
2. Surety’s Obligation. If Contractor or any of its Subcontractors fails to pay a person
authorized in California Civil Code § 9100 to assert a claim against a payment bond, any
amounts due under the Unemployment Insurance Code with respect to work or labor
performed under the Contract, or any amounts required to be deducted, withheld, and
paid over to the Employment Development Department from the wages of employees of
Contractor and its Subcontractors under California Unemployment Insurance Code §
13020 with respect to the work and labor, then Surety will pay the obligation.
3. Beneficiaries. This Bond inures to the benefit of any of the persons named in California
Civil Code § 9100, so as to give a right of action to those persons or their assigns in any
suit brought upon this Bond. Contractor must promptly provide a copy of this Bond upon
request by any person with legal rights under this Bond.
4. Duration. If Contractor promptly makes payment of all sums for all labor, materials, and
equipment furnished for use in the performance of the Work required by the Contract, in
conformance with the time requirements set forth in the Contract and as required by
California law, Surety’s obligations under this Bond will be null and void. Otherwise,
Surety’s obligations will remain in full force and effect.
5. Waivers. Surety waives any requirement to be notified of alterations to the Contract or
extensions of time for performance of the Work under the Contract. Surety waives the
provisions of Civil Code §§ 2819 and 2845. Town waives the requirement of a new bond
for any supplemental contract under Civil Code § 9550. Any notice to Surety may be given
in the manner specified in the Contract and sent to Surety as follows:
Attn: _________________________________________________
Address: ______________________________________________
Town/State/Zip: ________________________________________
Phone: _______________________________________________
Email: ________________________________________________
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project PAYMENT BOND
Project #813-9921 Page 8
6. Law and Venue. This Bond will be governed by California law, and venue for any dispute
pursuant to this Bond will be in the Santa Clara County Superior Court, and no other place.
Surety will be responsible for Town’s attorneys’ fees and costs in any action to enforce the
provisions of this Bond.
[Signatures are on the following page.]
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project PAYMENT BOND
Project #813-9921 Page 9
7. Effective Date; Execution. This Bond is entered into and is effective on __________,
20__.
SURETY:
___________________________________
Business Name
s/__________________________________ ______________________________
Date
___________________________________
Name, Title
(Attach Acknowledgment with Notary Seal and Power of Attorney)
CONTRACTOR:
___ Villalobos & Associates ____________
Business Name
s/__________________________________ ______________________________
Date
___________________________________
Name, Title
APPROVED BY TOWN:
s/ __________________________________ ______________________________
Date
Nicolle, Burnham, Director of Parks and Public Works
Name, Title
END OF PAYMENT BOND
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project PERFORMANCE BOND
Project #813-9921 Page 10
Performance Bond
The Town of Los Gatos (“Town”) and ___ Villalobos & Associates ___ (“Contractor”) have
entered into a contract for work on the 2024 Annual Curb, Gutter, and Sidewalk Maintenance
Project (“Project”). The Contract is incorporated by reference into this Performance Bond
(“Bond”).
1. General. Under this Bond, Contractor as principal and ___________________________,
its surety (“Surety”), are bound to Town as obligee for an amount not less than $409,480
to ensure Contractor’s faithful performance of its obligations under the Contract. This
Bond is binding on the respective successors, assigns, owners, heirs, or executors of
Surety and Contractor.
2. Surety’s Obligations. Surety’s obligations are co-extensive with Contractor’s obligations
under the Contract. If Contractor fully performs its obligations under the Contract,
including its warranty obligations under the Contract, Surety’s obligations under this Bond
will become null and void. Otherwise, Surety’s obligations will remain in full force and
effect.
3. Waiver. Surety waives any requirement to be notified of and further consents to any
alterations to the Contract made under the applicable provisions of the Contract
Documents, including changes to the scope of Work or extensions of time for
performance of Work under the Contract. Surety waives the provisions of Civil Code §§
2819 and 2845.
4. Application of Contract Balance. Upon making a demand on this Bond for completion of
the Work prior to acceptance of the Project, Town will make the Contract Balance
available to Surety for completion of the Work under the Contract. For purposes of this
provision, the Contract Balance is defined as the total amount payable by Town to
Contractor as the Contract Price minus amounts already paid to Contractor, and minus
any liquidated damages, credits, or backcharges to which Town is entitled under the
terms of the Contract.
5. Contractor Default. Upon written notification from Town of Contractor’s termination for
default under Article 13 of the Contract General Conditions, time being of the essence,
Surety must act within the time specified in Article 13 to remedy the default through one
of the following courses of action:
5.1 Arrange for completion of the Work under the Contract by Contractor, with
Town’s consent, but only if Contractor is in default solely due to its financial
inability to complete the Work;
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project PERFORMANCE BOND
Project #813-9921 Page 11
5.2 Arrange for completion of the Work under the Contract by a qualified contractor
acceptable to Town, and secured by performance and payment bonds issued by
an admitted surety as required by the Contract Documents, at Surety’s expense;
or
5.3 Waive its right to complete the Work under the Contract and reimburse Town
the amount of Town’s costs to have the remaining Work completed.
6. Surety Default. If Surety defaults on its obligations under the Bond, Town will be entitled
to recover all costs it incurs due to Surety’s default, including legal, design professional, or
delay costs.
7. Notice. Any notice to Surety may be given in the manner specified in the Contract and
sent to Surety as follows:
Attn: _________________________________________________
Address: ______________________________________________
Town/State/Zip: ________________________________________
Phone: _______________________________________________
Fax: __________________________________________________
Email: ________________________________________________
8. Law and Venue. This Bond will be governed by California law, and venue for any dispute
pursuant to this Bond will be in the Santa Clara County Superior Court, and no other place.
Surety will be responsible for Town’s attorneys’ fees and costs in any action to enforce the
provisions of this Bond.
9. Effective Date; Execution. This Bond is entered into and effective on
____________________, 20___.
SURETY:
___________________________________
Business Name
s/__________________________________ ______________________________
Date
___________________________________
Name, Title
(Attach Acknowledgment with Notary Seal and Power of Attorney)
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project PERFORMANCE BOND
Project #813-9921 Page 12
CONTRACTOR:
___ Villalobos & Associates ___________
Business Name
s/__________________________________ ______________________________
Date
___________________________________
Name, Title
APPROVED BY TOWN:
s/ __________________________________ ______________________________
Date
Nicolle, Burnham, Director of Parks and Public Works
Name, Title
END OF PERFORMANCE BOND
Town of Los Gatos Parks and Public Works Department
#813-9921 2024 Annual Curb, Gutter, and Sidewalk Maintenance
BASE BID:
ITEM
NO ITEM DESCRIPTION UNIT
EST.
QTY.
UNIT
PRICE EXTENSION
1. Traffic Control L.S. 1 $7,000.00 $7,000.00
2. Adjust Utility to Grade (Revocable) Ea. 1 $250.00 $250.00
3. Clearing and Grubbing L.S. 1 $7,000.00 $7,000.00
4. Remove and Replace Curb and Gutter L.F. 1,000 $60.00 $60,000.00
5. Remove and Replace Rolled Curb L.F. 50 $56.00 $2,800.00
6. Remove and Replace Sidewalk S.F. 400 $19.00 $7,600.00
7.Remove and Replace Cross Gutter
(Revocable)S.F. 50 $54.00 $2,700.00
8.Remove and Replace Hardscape
(Revocable)S.F. 100 $20.00 $2,000.00
9.Remove and Replace Commercial Concrete
Driveway (Revocable)S.F. 200 $23.00 $4,600.00
10.Remove and Replace Residential Concrete
Driveway S.F. 180 $22.00 $3,960.00
11. Install New Curb Ramp-Case B Ea. 24 $5,300.00 $127,200.00
12. Install New Curb Ramp-Case C Ea. 15 $5,300.00 $79,500.00
13. Install New Curb Ramp-Case F Ea. 3 $5,300.00 $15,900.00
14. Install New Curb Ramp-Case G Ea. 2 $5,300.00 $10,600.00
15. Install New Curb Ramp-Type B Passageway Ea. 2 $4,500.00 $9,000.00
16. Paint Red Curb (Revocable)L.F. 100 $5.00 $500.00
17. Remove and Replace Tree (Revocable) Ea. 4 $2,000.00 $8,000.00
18. Install Root Barrier L.F. 60 $11.00 $660.00
19.Remove and Install New Sign and Post
(Revocable)Ea. 2 $200.00 $400.00
BASE BID
TOTAL $349,670.00
ADD. ALTERNATE 1:
ITEM
NO ITEM DESCRIPTION UNIT EST.
QTY.
UNIT
PRICE EXTENSION
A1.1. Remove and Replace Curb and Gutter L.F. 90 $60.00 $5,400.00
A1.2. Remove and Replace Sidewalk S.F. 1,200 $19.00 $22,800.00
Villalobos & Associates
Villalobos & Associates
Page 1 of 2
EXHIBIT A
A1.3. Remove and Replace Hardscape S.F. 100 $20.00 $2,000.00
A1.4.Remove and Replace Residential Concrete
Driveway S.F. 550 $22.00 $12,100.00
ADD. ALT. 1
TOTAL $42,300.00
ADD. ALTERNATE 2:
ITEM
NO ITEM DESCRIPTION UNIT EST.
QTY.
UNIT
PRICE EXTENSION
A2.1. Remove and Replace Curb and Gutter L.F. 80 $60.00 $4,800.00
A2.2. Remove and Replace Sidewalk S.F. 390 $19.00 $7,410.00
A2.3. Install New Curb Ramp-Case G Ea. 1 $5,300.00 $5,300.00
ADD. ALT. 2
TOTAL $17,510.00
GRAND TOTAL $409,480.00
Villalobos & Associates
Page 2 of 2
Town of Los Gatos Parks and Public Works Department
#813-9921 2024 Annual Curb, Gutter, and Sidewalk Maintenance
Certified Bid Tabulation Bid Opening: April 3, 2024 at 3:00 pm
BASE BID:
ITEM
NO ITEM DESCRIPTION UNIT
EST.
QTY.
UNIT
PRICE EXTENSION UNIT
PRICE EXTENSION UNIT
PRICE EXTENSION
1. Traffic Control L.S. 1 $20,000.00 $20,000.00 $7,000.00 $7,000.00 $40,000.00 $40,000.00
2. Adjust Utility to Grade (Revocable) Ea. 1 $1,000.00 $1,000.00 $250.00 $250.00 $1,500.00 $1,500.00
3. Clearing and Grubbing L.S. 1 $15,000.00 $15,000.00 $7,000.00 $7,000.00 $5,000.00 $5,000.00
4. Remove and Replace Curb and Gutter L.F. 1,000 $120.00 $120,000.00 $60.00 $60,000.00 $125.00 $125,000.00
5. Remove and Replace Rolled Curb L.F. 50 $30.00 $1,500.00 $56.00 $2,800.00 $150.00 $7,500.00
6. Remove and Replace Sidewalk S.F. 400 $20.00 $8,000.00 $19.00 $7,600.00 $32.00 $12,800.00
7.Remove and Replace Cross Gutter
(Revocable)S.F. 50 $40.00 $2,000.00 $54.00 $2,700.00 $62.00 $3,100.00
8.Remove and Replace Hardscape
(Revocable)S.F. 100 $60.00 $6,000.00 $20.00 $2,000.00 $35.00 $3,500.00
9.Remove and Replace Commercial Concrete
Driveway (Revocable)S.F. 200 $50.00 $10,000.00 $23.00 $4,600.00 $45.00 $9,000.00
10.Remove and Replace Residential Concrete
Driveway S.F. 180 $35.00 $6,300.00 $22.00 $3,960.00 $38.00 $6,840.00
11. Install New Curb Ramp-Case B Ea. 24 $6,000.00 $144,000.00 $5,300.00 $127,200.00 $4,000.00 $96,000.00
12. Install New Curb Ramp-Case C Ea. 15 $6,000.00 $90,000.00 $5,300.00 $79,500.00 $4,900.00 $73,500.00
13. Install New Curb Ramp-Case F Ea. 3 $6,000.00 $18,000.00 $5,300.00 $15,900.00 $4,600.00 $13,800.00
14. Install New Curb Ramp-Case G Ea. 2 $6,000.00 $12,000.00 $5,300.00 $10,600.00 $4,800.00 $9,600.00
15. Install New Curb Ramp-Type B Passageway Ea. 2 $6,000.00 $12,000.00 $4,500.00 $9,000.00 $5,500.00 $11,000.00
16. Paint Red Curb (Revocable) L.F. 100 $10.00 $1,000.00 $5.00 $500.00 $18.00 $1,800.00
17. Remove and Replace Tree (Revocable) Ea. 4 $5,000.00 $20,000.00 $2,000.00 $8,000.00 $7,000.00 $28,000.00
18. Install Root Barrier L.F. 60 $300.00 $18,000.00 $11.00 $660.00 $50.00 $3,000.00
19.Remove and Install New Sign and Post
(Revocable)Ea. 2 $600.00 $1,200.00 $200.00 $400.00 $1,100.00 $2,200.00
BASE BID
TOTAL $506,000.00 BASE BID
TOTAL $349,670.00 BASE BID
TOTAL $453,140.00
ADD. ALTERNATE 1:
ITEM
NO ITEM DESCRIPTION UNIT
EST.
QTY.
UNIT
PRICE EXTENSION UNIT
PRICE EXTENSION UNIT
PRICE EXTENSION
A1.1. Remove and Replace Curb and Gutter L.F. 90 $120.00 $24,000.00 $60.00 $5,400.00 $125.00 $11,250.00
A1.2. Remove and Replace Sidewalk S.F. 1,200 $20.00 $10,800.00 $19.00 $22,800.00 $28.00 $33,600.00
A1.3. Remove and Replace Hardscape S.F. 100 $60.00 $6,000.00 $20.00 $2,000.00 $35.00 $3,500.00
A1.4.Remove and Replace Residential Concrete
Driveway S.F. 550 $35.00 $19,250.00 $22.00 $12,100.00 $38.00 $20,900.00
ADD. ALT. 1
TOTAL $60,050.00 ADD. ALT. 1
TOTAL $42,300.00 ADD. ALT. 1
TOTAL $69,250.00
Engineer's Estimate Villalobos & Associates
Engineer's Estimate Villalobos & Associates RK Engineering
RK Engineering
Page 1 of 2 ATTACHMENT 2
Town of Los Gatos Parks and Public Works Department
#813-9921 2024 Annual Curb, Gutter, and Sidewalk Maintenance
Certified Bid Tabulation Bid Opening: April 3, 2024 at 3:00 pm
ADD. ALTERNATE 2:
ITEM
NO ITEM DESCRIPTION UNIT
EST.
QTY.
UNIT
PRICE EXTENSION UNIT
PRICE EXTENSION UNIT
PRICE EXTENSION
A2.1. Remove and Replace Curb and Gutter L.F. 80 $120.00 $9,600.00 $60.00 $4,800.00 $125.00 $10,000.00
A2.2. Remove and Replace Sidewalk S.F. 390 $20.00 $7,800.00 $19.00 $7,410.00 $28.00 $10,920.00
A2.3. Install New Curb Ramp-Case G Ea. 1 $6,000.00 $6,000.00 $5,300.00 $5,300.00 $4,800.00 $4,800.00
ADD. ALT. 2
TOTAL $23,400.00 ADD. ALT. 2
TOTAL $17,510.00 ADD. ALT. 2
TOTAL $25,720.00
GRAND TOTAL $589,450.00 GRAND TOTAL $409,480.00 GRAND TOTAL $548,110.00
This certifies that all bids were received and opened on April 3, 2024 and that this is a copy of the bid tabulation with bids corrected for errors in addition and multiplication. By: J. Chin,
Assistant Engineer
Engineer's Estimate Villalobos & Associates RK Engineering
Page 2 of 2
VIA EMAIL – JChin@losgatosca.gov
April 6, 2024
Janice Chin
Town of Los Gatos
41 Miles Avenue
Los Gatos, CA 95030
RE: BID ADVISORY
Bidder(s): Villalobos & Associates, Inc.
Awarding Agency: Tow of Los Gatos
Project: 2024 Annual Curb, Gutter, and Sidewalk Maintenance
FFC Case No.: 1209SJ
Dear Ms. Chin:
The Foundation for Fair Contracting (FFC) is a nonprofit organization which has been serving
the public interest since 1985. The objective of the FFC is, in-part, to monitor for compliance
with prevailing wage laws pertaining to the construction industry, educate industry stakeholders,
and ensure a fair and level playing field is present for all contractors. Unbalanced bids raise
questions in regard to performance and compliance with the rules and regulations for the
payment of prevailing wages, and the safety and well-being of the workforce. It further opens
the question of excessive future change orders, the fairness to and rights of other bidders in the
bidding process, and the intent of the bidding process in general.
In deference to all bidders and in order for the public interest to best be served, please enter this
formal bid advisory against the above-noted contractors as a matter of public record. We
respectfully request that Villalobos & Associates, Inc. (Villalobos) bid be rejected for the
following reasons:
•ONGOING VIOLATIONS OF PREVAILING WAGE LAWS RESULTING IN WAGE
THEFT
Villalobos has committed 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. Audits have been performed by the State of California, Division of
Labor Standards Enforcement (DLSE), Labor Commissioner’s office, finding wages
owed to workers. We have provided supporting documentation for your review.
Furthermore, Villalobos 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.
ATTACHMENT 3
Janice Chin
Town of Los Gatos
April 6, 2024
Page 2
▪Failure to comply with apprenticeship requirements.
▪Failing to report all workers on certified payrolls.
•FAILURE TO COMPLY WITH BID SPECIFICATIONS/UNFAIR COMPETITIVE
ADVANTAGE
Villalobos’ bid is in excess of 22% lower than all other bidders on this project. A large bid
variance commonly indicates a failure to account for the proper prevailing wage rate –
including travel and subsistence. If awarded the project, this contractor would inevitably
need to submit change orders to complete the project in accordance with the
specifications and/or compromise prevailing wage laws/standards. This gives Villalobos
an unfair advantage in its bidding practices against its competitors and puts the Town of
Los Gatos into a precarious legal position.
•FAILURE TO COMPLY WITH WORKFORCE DEVELOPMENT AND FORMAL
APPRENTICESHIP PROGRAMS
Villalobos 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.
•OSHA VIOLATIONS RESULTING IN FINES ISSUED AND UPHELD
Villalobos has safety infractions that have resulted in investigations and fines issued by
OSHA. We have provided supporting documentation for your review.
Please contact our office with questions, comments, or clarifications.
Sincerely,
Jesse Jimenez
Executive Director
FFC Case No: 1209SJ
cc: Town of Los Gatos – Mayor and Councilmembers
Mary Badame – Email: mbadame@losgatosca.gov
Matthew Hudes – Email: mhudes@losgatosca.gov
Rob Moore – Email: rmoore@losgatosca.gov
Rob Rennie – Email: rrennie@losgatosca.gov
Maria Ristow – Email: mristow@losgatosca.gov
Town of Los Gatos – Parks & Public Works Director
Nicolle Burnham – Email: NBurnham@losgatosca.gov
STATE OF CALIFORNIA Gavin Newsom Governor
DEPARTMEMT OF INDUSTRIAL RELATIONS
Division of Labor Standard Enforcement
454 W. 4th Street, Room #348
San Bernardino, CA 92401
From the Desk of
Caroline Wood
Deputy Labor Commissioner
(909)383-7408 cwood@dir.ca.giv
February 27, 2024
Re: DLSE Case No.: 40-78873-833
Project Name: AC and Curb and Gutter Repairs
Awarding Body: City of Saratoga
Prime Contractor: VILLALOBOS & ASSOCIATES Inc.
Dear Evangeline Rose,
Please be advised that I have completed my audit of Villalobos and Associates Inc. I have
found the following information on the public works project referenced above and found
the sum of $3598.80 as due and owing. This amount is broken down as follows:
Wages Due and Owing: $474.80
Training Funds Due and Owing: $24.00
Labor Code 1771.4: $2,500.00
Labor Code 1775: $500.00
Labor Code 1777.7: $100.00
Accordingly, please remit a cashier’s check in the amount of $3598.80. The amount $3598.80 is
for settlement purposes only. Payment must be received no later than 3/06/24.
The check must be a cashier’s check and should be made payable to the State Labor
Commissioner and have case number 40-78873-833 written on the check. Mail payment to:
State of California
Department of Industrial Relations
Division of Labor Standards Enforcement
Bureau of Field Enforcement Cashiering Unit
2031 Howe Avenue Suite 100
Sacramento, CA 95825-0196.
Please be advised that failure to resolve this matter will result in the issuance of a Civil Wage
and Penalty Assessment.
Please email me a copy/scan of the check along with tracking information for the
mailing. CWood@dir.ca.gov
Thank you for your cooperation. If you have any questions, do not hesitate to contact me
at 909-383-7408.
Sincerely
Caroline Wood
Caroline Wood
Deputy Labor Commissioner
[This page intentionally left blank]
Inspection Nr: 1527621.015 Report ID: 0950612 Date Opened: 04/27/2021
Site Address:
Villalobos & Associates
21439 Continental Cir.
Saratoga, CA 95070
Mailing Address:
P.O. Box 110004, Campbell, CA 95011
Union Status: NonUnion SIC:
NAICS: 236115/New Single-Family
Housing Construction (except
Operative Builders)
Inspection Type: Accident
Scope: Partial
Advanced Notice: N
Ownership: Private
Safety/Health: Safety
Close Conference: 10/15/2021
Emphasis:
Case Closed: 06/12/2023
An official website of the United States government.Here's how you know
U.S. DEPARTMENT OF LABOR
Inspection Detail
Case Status: CLOSED
Inspection: 1527621.015 - Villalobos & Associates
Inspection Information - Office: Ca Fremont District Office
Related Activity
Type Activity Nr Safety Health
Accident 1761874
Inspection 1528679 Yes
Inspection 1528966 Yes
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Case Status: CLOSED
Violation Summary
Violations/Penalties Serious Willful Repeat Other Unclass Total
Initial Violations 2 4 6
Current Violations 2 4 6
Initial Penalty $21,825 $0 $0 $2,375 $0 $24,200
Current Penalty $21,825 $0 $0 $2,375 $0 $24,200
FTA Penalty $0 $0 $0 $0 $0 $0
Violation Items
#Citation
ID
Citaton
Type
Standard
Cited
Issuance
Date
Abatement
Due Date
Current
Penalty
Initial
Penalty
FTA
Penalty
Contest Latest Event
1.01001 Other 341(D)(5)(A)10/15/2021 $625 $625 $0 Z - Issued
2.01002 Other 1509(A)10/15/2021 $500 $500 $0 Z - Issued
3.01003 Other 3395(H)(1)10/15/2021 $500 $500 $0 Z - Issued
4.01004 Other 1541(J)(2)10/15/2021 $750 $750 $0 Z - Issued
5.02001 Serious 15410001 A01 10/15/2021 $16,200 $16,200 $0 05/04/2022 W - Empr Withdrew
6.03001 Serious 1541(K)(1)10/15/2021 $5,625 $5,625 $0 05/04/2022 W - Empr Withdrew
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ATTACHMENT 4