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Hundreds of determined hardhats showed solidarity when they attended Monday’s City Council meeting to question the exclusion of their services in the construction of the city’s new water recycling plant.

By Peggy Kelly

Santa Paula Times

Hundreds of determined hardhats showed solidarity when they attended Monday’s City Council meeting to question the exclusion of their services in the construction of the city’s new water recycling plant. Many of the hardhats noted that they are city residents who will be helping to pay for the construction of the approximately $58 million plant, and one labor official said it will be determined if union pension funds are being utilized for financing of the facility, owned 90 percent by Alinda Capital and 10 percent by Pacific Environmental Resources Corp. (PERC). PERC is designing, building and operating the facility.

Union leaders claimed at the meeting - Mayor Bob Gonzales had earlier limited public comment to 3 minutes - that PERC was selecting contractors and subcontractors that will not shop locally for skilled workers. The economy is weak and families are losing their homes, and Marcelo Crespi questioned components of using outsourced labor, such as electrical and cement work, in case “they can’t perform.”

Gene Hansmeier, Ventura County Electrical apprenticeship program, noted that a lack of local jobs would deny work to those being trained; and Shane Werner, representing IBEW Electrical Workers, claimed the Council is “getting very limited information... we ask you to open the books” to allow organized labor a chance to work while bringing down costs.

“They’re going to be gone after this job. Keep that in mind... we own homes in this community.” Werner said the community must be aware of the situation, especially if “this does go bad... I have a feeling they (the community) want local people on this project.”

The strong applause that followed Werner’s remarks brought a warning from Gonzales, who noted that such outbursts could cause speakers to lose comment time.

Allan Butler of the Southwest Regional Council of Carpenters, who has been a city resident for 39 years, said he remembered “a few years back when the city was hunting for a new police chief they were going to outsource it... the citizens got behind a local officer and started a campaign for him and he was appointed. Now he’s Mayor” Gonzales.

Butler said the unions were asking for the same consideration: “Not contractors outsourced.... We want jobs for our people here in Santa Paula,” who are among the 1,600 union carpenters in the county.

PERC and Layton Construction have not returned phone calls, said Butler, and he noted that during facility negotiations Bloise Construction of Ventura was originally “paraded in front of the Council” as the main subcontractor. But “when they (PERC) got the job” Butler said Bloise was dropped. “We have the construction people to do the job,” but Butler claimed Layton officials “told us they don’t have time to train them to do the job,” although union members are certified and highly trained.

Retired union members may also have a stake in the project through pension funds invested in Alinda Capital Partners, said Leo Valenzuela of Laborers Union 585. Valenzuela claimed PERC officials offered a “slap in the face” and were “arrogant and condescending” when he contacted them about using local labor.

“I am angry, you have not heard the end of this... we want transparency. You have the power,” he told the Council. “Feel the power and we can help you with the power.”

“When candidates are running for office they are only as strong as their supporter,” and Rodney Cobos of the Plumbers & Pipefitters union said that, “once elected, a community is only as strong as the voice of the City Council.”

PERC Vice President of Construction Nate Owen told the Council that since the job started July 15 the company has already “put $100,000 in local contractors,” including two that a member of the audience called out provide professional services, not labor. “We’re actively engaging as many local contractors we can,” and Owen said as an equal opportunity contractor the company abides by prevailing wage mandates. “We’re well into using union sources,” he added, although less than 50 percent of the project has been planned.

Layton Vice President Jeff Beecher said the company looks at qualifications of workers, whether union or nonunion, and that the company offers a “high degree of integrity” and a high degree of quality.

Councilman Dr. Gabino Aguirre said from the “get go” the Council wanted largest project in city history to utilize local labor. The Council asked for and was assured that local hiring would be a priority, and “From my perspective this project belongs to Santa Paula, is going to be paid for by Santa Paula for the next 30 years, and they should have a piece of it.” Aguirre urged that PERC and Layton officials sit down with the union to craft a hiring plan.

Owen said PERC is engaged in the process, but asked that the Council “keep in mind this is very fast track; we’re building” before plans are finalized and must utilize “people we know.... PERC’s name and reputation on the line here and we’re going to deliver a facility that is top quality,” using local labor as possible.

Councilman John Procter asked how many local electrical contractors were included in the bidding process and Beecher said two, “mainly to ensure” to assure bid accuracy. Layton is willing to sit down with contractors, although “We don’t particularly sit down with unions” while searching for contractors, and Beecher noted he does not think using union or nonunion labor “is your requirement or ours.”

The majority of the Council took a chance by awarding the contract to PERC, and Vice Mayor Ralph Fernandez said the Council was told local labor would be used. Fernandez urged that the parties open a dialogue to ensure “fair share support of the community.”

Layton is the prime subcontractor, and Owen said the company has “sole discretion to use what contractors we feel are suited to use to build” the facility. Labor pulling is being done from local unions, and Owen said he is “confused... why all the bombardment about using local when we are.”

“I learned over the years,” said Fernandez, “when you have a crowd like this complaining, usually something is wrong.”

More than half the project is still to be awarded, and Layton is considering a “long list of subcontractors,” and Beecher said he encouraged “everyone here to submit a company name.... If they’re qualified, can meet schedule and safety requirements, we’ll give them an opportunity to bid.”

Gonzales said PERC President Brian Cullen assured him the project would utilize local labor. Gonzales urged continued discussion between the contractors and the unions, and “hopefully” when the job is completed in two years it can be said that local labor was a part of the construction.

“In a couple of years the mayor said he would like to see it built by local people,” but Aguirre said “Two years from today is too late” for workers needing jobs, and he requested that talks open immediately.

Councilman John Procter asked Valenzuela for clarification on earlier remarks he made on the Design/Build/Operate/Finance (DBOF) process selected by the Council for plant construction.

Contractors, said Valenzuela, do not have to go to bid on such projects under DBOF guidelines, and local labor is being shutout. “We’re being devastated by this,” and Valenzuela urged that a meeting be held with the Ventura County Building Trade Council.

“What are we, chopped liver? They used Bloise Construction as a pawn, used them to come to the Council and sell them a product... well, we want to sell a product.”

Gonzales noted that no action was taken, as the discussion was not listed as an action item. Later, Procter made a motion that the issue be brought back to the Council for discussion at the September 2 meeting. The Council - minus the absent Ray Luna - unanimously agreed to the motion.