Salinas council orders rebid of Sherwood Recreation Center contract after labor-compliance concerns; redirects CDBG funds to cover cost gap

The Salinas City Council voted Sept. 9 to reject awarding the construction contract for the Sherwood Recreation Center building improvements and directed staff to put the project back out to bid after labor-compliance concerns were raised about a subcontractor associated with the apparent low bidder.

The rebid direction followed a staff recommendation to award the contract to Auto Construction, the apparent lowest responsive bidder, for an amount not to exceed $2,686,900. Public-works staff told the council Auto Construction’s bid was about $88,000 below the engineer’s estimate and roughly $180,000 below the second-place bidder, and that the company had satisfied license and registration checks required under the city’s municipal code and the California Public Contract Code.

Council members and members of the public pressed staff and the city attorney for additional detail after labor advocates and several construction workers testified that a subcontractor, identified in public comment as B & M, had prior wage-and-hour violations and had not fully resolved related complaints in other jurisdictions. Council members asked whether those past problems should disqualify Auto Construction as a “responsible” bidder. The city attorney pointed to the responsibility criteria in the city’s municipal code (section 12‑23) and said staff had checked contractor license board and Department of Industrial Relations listings and found no active debarments or suspensions for Auto Construction.

Staff also described the city’s existing…