City Hall lists Rodriguez Electrical in its official directory of minority- and women-owned construction companies certified to do business with the city. The address for Rodriguez Electrical — at Second and Riverview in Kansas City, Kansas — is on the far-west end of the industrial West Bottoms, down a muddy road from the chain-link and barbed-wire fencing that protects a scrap pile at Asner Iron & Metal. Fireworks warehouses are shuttered this time of year. There's no sign of Rodriguez Electrical.
Too bad, because Ralph Rodriguez, the company owner, could tell us a lot about our city right now.
As it is, we have to rely on a short affidavit that Rodriguez signed as part of a lawsuit filed by an organization of Hispanic contractors against J.E. Dunn Construction; H&R Block; the city of Kansas City, Missouri; and the TIF Commission, which oversees tax-increment financing.
In the suit, filed back in 2005, Armando Diaz of Diaz Construction Company and other members of the Hispanic contractors' association claimed that, during the construction of its new world headquarters, H&R Block and its general contractor, J.E. Dunn, paid fees to minority-owned businesses that acted as fronts, or "pass-through" companies, sending the work back to white subcontractors (“A City that Works?” November 15, 2007). It was a tricky way for H&R Block and J.E. Dunn to appear as if they were meeting the city's minority-hiring goals without actually giving work to minorities, the contractors claimed.
Jackson County Circuit Judge Charles Atwell dismissed the case in December, saying that the contractors lacked legal standing to file the suit. But his ruling did acknowledge that the contractors had "presented meaningful evidence ... suggesting that certifications provided by J.E. Dunn were inaccurate, false, or misleading."
The contractors have now gone public with that evidence. Over the past few weeks, while preparing to file their appeal, they've sent copies of affidavits and excerpts of depositions to the mayor, City Council members, City Manager Wayne Cauthen and the TIF Commission.
That's where Ralph Rodriguez comes in.
Among the documents is Rodriguez's sworn affidavit, in which he describes how R.F. Fisher Electric Company approached him about "a bidding strategy" on the H&R Block project. In his July 13, 2007, affidavit, Rodriguez said R.F. Fisher wanted Rodriguez's company to do nothing more than submit the bid to J.E. Dunn, which approved the deal. "Despite my requests to R.F. Fisher, I was not given the opportunity to perform some of the work; in fact, no Rodriguez Electrical employees ever performed work on that project," Rodriguez stated. For its work on the H&R Block headquarters, J.E. Dunn paid R.F. Fisher $2,973,010. For nothing more than Rodriguez's name on the bid, R.F. Fisher paid Rodriguez $66,892.73.
But then Rodriguez came forward and admitted his role in an effort to help the Hispanic contractors make their case about what they say is a widespread practice in the construction industry.
The documents contain other names and affidavits besides Rodriguez's. They claim that, for laying cable, reinforcing steel, putting up studs and drywall, hauling in stone, excavating and other jobs, H&R Block over-reported its payments to minority contractors by more than $11 million.
The depositions are incomplete — just 70-some pages of excerpts of what must be thousands generated in the lawsuit. It's not clear what testimony is missing. One recurring theme emerges, however: Everyone in charge of enforcing the rules seems to have passed off that responsibility to someone else.
Sandra Rayford, the TIF Commission’s affirmative action compliance officer, acknowledged that the use of front companies was "morally" wrong. But, in a deposition dated May 23, 2007, she said, "I don't know how it would be my job responsibility" to investigate. That, she said, would be the responsibility of City Hall's human relations department.
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Mr. Randolph:
Actually, I do agree with your view. I have first hand experience.I've seen it happen.The whole process is a fraud.It has been my experience that most minority bids are high. They know that it is their chance to make a profit. Many other bids are lower. If the general contractor wants a competitive bid,they must use the low price. Again, my experience with minority sub contractors is negative. They need to provide a quality and timely service. My suggestion, do away with the whole minority program, along with TIF.
Mr. Randolph: Actually, I do agree with your view. I have first hand experience.I've seen it happen.The whole process is a fraud.It has been my experience that most minority bids are high. They know that it is their chance to make a profit. Many other bids are lower. If the general contractor wants a competitive bid,they must use the low price. Again, my experience with minority sub contractors is negative. They need to provide a quality and timely service. My suggestion, do away with the whole minority program, along with TIF.
Mr. Hughes is completely missing the point. The issue is not the quality of minority subcontractors, or financial capacity, or bonding. Why is it that whenever minorities bring up issues, the naive respond with unsubstantiated and biased stereotypes? The bigger point, Mr. Hughes, is that H&R Block and J.E. Dunn intentionally falsified their mandatory reporting to the TIF commission in order to get more reimbursement. This reimbursement will come from the overall tax pool. So, by their deception, they are cheating all tax payers no matter their race, color or creed. This includes your tax dollars Mr. Hughes. Does this concern you? Are you willing to let tax dollars be misspent so that you can maintain your discriminatory beliefs?
If H&R Block and J.E. Dunn prevail, they will not do so as winners. Their legal might and influence would have simply overpowered the tiny underdog fighting for a just cause in front of an uniformed judicial system and an apathetic public. There will be no glory. Whenever evil intentions prevail, we all lose.
Mr. Hughes is completely missing the point. The issue is not the quality of minority subcontractors, or financial capacity, or bonding. Why is it that whenever minorities bring up issues, the naive respond with unsubstantiated and biased stereotypes? The bigger point, Mr. Hughes, is that H&R Block and J.E. Dunn intentionally falsified their mandatory reporting to the TIF commission in order to get more reimbursement. This reimbursement will come from the overall tax pool. So, by their deception, they are cheating all tax payers no matter their race, color or creed. This includes your tax dollars Mr. Hughes. Does this concern you? Are you willing to let tax dollars be misspent so that you can maintain your discriminatory beliefs? If H&R Block and J.E. Dunn prevail, they will not do so as winners. Their legal might and influence would have simply overpowered the tiny underdog fighting for a just cause in front of an uniformed judicial system and an apathetic public. There will be no glory. Whenever evil intentions prevail, we all lose.
good piece, this was informative and made me mad. is the point of develoment to make the city better or to bilk the city for every dime & nickel through whatever dishonesty works?
good piece, this was informative and made me mad. is the point of develoment to make the city better or to bilk the city for every dime & nickel through whatever dishonesty works?
I was invloved in bidding these type of projects for years. It is, and remains a deception. General Contractors don't trust the ability of Minatory Subs to preform the work in a timely manor, and therefore hold up the progress of the other Sub Contractors.
There is also a factor of bonding. Many Minatory Sub Contractors lack the financial capacity to provide a Payment and Performance Bond that is required on Public Projects.
The real winners in this case will be H&R Block and J.E.Dunn. It happened here, and it will happen again.
W.A.Hughes
Construction Cost Consultants
I was invloved in bidding these type of projects for years. It is, and remains a deception. General Contractors don't trust the ability of Minatory Subs to preform the work in a timely manor, and therefore hold up the progress of the other Sub Contractors. There is also a factor of bonding. Many Minatory Sub Contractors lack the financial capacity to provide a Payment and Performance Bond that is required on Public Projects. The real winners in this case will be H&R Block and J.E.Dunn. It happened here, and it will happen again. W.A.Hughes Construction Cost Consultants
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