By Michael W. Braa, Co-Owner, Los Banos Enterprise
By the time this op-ed reaches homes across Los Banos, there will likely have been a public call for City Manager Josh Pinheiro to step down from his position. This is not simply a reaction to a few administrative errors. It is a natural progression in response to the mounting scandals under his leadership—scandals that have cost the city millions of dollars and placed its future at serious risk.
While two incidents discussed below—the over-inflated road repaving contract and the suspicious hiring of an unqualified social media manager—are among the more glaring examples, they are far from the only issues. In fact, ongoing investigations suggest that if certain violations are confirmed, the city could face tens of millions of dollars in unfunded liabilities and will likely force the City into bankruptcy.
Additionally, this op-ed doesn’t even begin to address the city’s failure to comply with Public Records Act (PRA) laws, which has led to an ongoing lawsuit, or the $100 million defamation suit filed against the city and Councilmember Brett Jones. The mismanagement in Los Banos is untenable.
The United Pavement Maintenance Debacle
The story of United Pavement Maintenance began with a seemingly routine bidding process for the 2023 Street Rehabilitation Project. Five companies submitted bids by the May 23rd deadline, with United Pavement offering the lowest at $2,041,755.44. The city awarded the contract, with a 10% contingency, bringing the total approved amount to just over $2.2 million.
At first, things proceeded as expected. The initial change orders—such as the August 14, 2023, request for $112,430.88 to stabilize the base on St. Louis and B Streets—fell within the 10% contingency, making them permissible under the original contract. But on September 6th, 2023, United Pavement, most likely at the request of the City submitted a change order for $885,760.56 to add work on Birch Avenue and G Street—streets that were not included in the original bid.
The requested increase far exceeded the preset contingency limit, and according to California Public Contract Code, the proper course of action would have been to issue a new Request for Proposals (RFP) and enter a new bidding process. Instead, the city simply approved the change order. This wasn’t just an administrative oversight—it was a serious violation of the law.
Failure to issue a new RFP under these circumstances constitutes a criminal act by the City Manager and represents grounds for termination, even under Pinheiro’s highly protective contract. This blatant disregard for the rules not only exposed the City to financial risks but also undermined public trust in its leadership.
By the time all the change orders were completed, the project’s total cost had ballooned to $3,837,835.53—an 88% increase over the original bid. This is why the city’s failure to follow the legal requirement for rebidding is more than just bad governance—it’s a breach of public trust that could lead to serious legal consequences; even jail time for some City employees.
Social Media Scandal: A Symptom of Deeper Problems
The paving contract is not the only instance of mismanagement. In October 2023, the city issued an RFP for social media content services, seeking to boost its online presence. Among the applicants was Gabriel Ortiz, a 21-year-old local entrepreneur who formed his company, Imagine Way More, just two months before the RFP deadline. Despite more experienced and lower-cost bids, Ortiz’s company—charging $7,500 per month—was selected.
Internal documents reveal that city employees, including Stacy Elms and Justin Ragunton, inflated Ortiz’s evaluation scores to secure his selection over better-qualified firms. This manipulation not only violated the spirit of the RFP process but also squandered taxpayer money on a company with little to no relevant experience.
To make matters worse, Ortiz’s previous content raised ethical concerns. One video, posted around Martin Luther King Jr. Day, included offensive language, including the “n-word.” Despite protests from Councilmember Deborah Lewis, the contract was awarded to Mr. Ortiz.
An Exodus of City Employees
As troubling as these issues are, they are only part of a broader pattern of dysfunction under Pinheiro’s leadership. Allegations of erratic behavior, mistreatment of employees, and retaliatory behavior continue to seep out of City Hall. More than 80 city employees have left their jobs since his rehiring in February 2023. The most recent was the City’s Finance Director who left after only a few short months. This level of turnover is alarming, particularly when it includes key department heads whose experience and continuity are crucial for the functioning of the city.
The constant turnover has left the city struggling to maintain stability and manage projects effectively. It raises serious questions about the work environment and leadership within City Hall. A mass exodus of talent, combined with financial and legal scandals, suggests that the problems in Los Banos are deep-rooted and systemic.
A Cascade of Violations and the Threat of Financial Ruin
Adding to the financial strain is the fact that the city is currently defending itself in a lawsuit over its failure to comply with PRA laws. On top of that, there is a $100 million defamation lawsuit filed against the city and Councilmember Brett Jones. And as previously mentioned, ongoing investigations could uncover more violations, potentially leaving Los Banos with tens of millions in unfunded liabilities.
Each of these issues compounds the city’s financial vulnerability, and none of them were inevitable. They are the direct result of poor leadership, lack of oversight, and a disregard for both the law and the public interest.
A Call for Change
The scandals surrounding Josh Pinheiro, and the Los Banos City Council are not minor administrative errors—they represent systemic failures that threaten the city’s financial health and public trust. A predictable outcome when you hire your buddy, instead of the most qualified person for the job.
The people of Los Banos deserve leadership that is transparent, accountable, and willing to follow the law. The call for Pinheiro’s resignation is a step toward restoring that leadership. We cannot afford to wait any longer. The time for change is now.