02-06-86 Adjourned MINUTES
ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
FEBRUARY 6, 1986
The Board of Directors of the South Tahoe Public Utility District
met in an adjourned regular session, February 6, 1986, 1:00 P.M.,
1900 Lake Tahoe Boulevard, City Services Center.
BOARD OF DIRECTORS: Chairman Wynn,
Directors Olson, Madden, Mason, Jones
STAFF: Cofer, Baer, Mamath, Fischer,
E. Eppler, G. Eppler, Cartwright, Brown,
Hrbacek, Sullivan, Plasterer, Hydrick,
Attorney Weidman
GUESTS: Jeff DeLong-Tahoe Daily Tribune,
Also see attached list which becomes a
part of these minutes by reference herein.
Attorney Weidman confirmed the following
documents had been distributed to the
Clerk and the Board of Directors:
1) 9/85 Caltrans MBE/WBE referral list
(Exhibit 40);
2) Caltrans referral list code key for
crafts and counties (Exhibit 41);
3) Caltrans map (Exhibit 42);
4) Memoranda of J. McNeil-Carollo Eng.,
re investigation of Alta Pacific
dated 1/30, 31 (Part of Exhibit 43);
5) Bid Specifications Planholders List
(Exhibit 44);
6) U.S. Small Business Admin. MBE/WBE
referral list submitted by Alta
Pacific (Exhibit 45);
7) Petition of Public Protesters
(Exhibit 46); (Received 2/3/86).
Attorney Weidman introduced Exhibits 46
through Exhibit 51 and asked Mr. Sherman
Honeycutt, representing C.W. Roen Con-
struction to submit a 2/4/86 letter from
Homitz Allen & Assoc. (Exhibit 52). The
letter was read aloud by Mr. Honeycutt in
which Mr. Homitz stated he had not been
approached by Alta Pacific for MBE/WBE
information. (Attachment No. 1)
ROLL CALL
PUBLIC HEARING CONTINUED
ADJOURNED REGULAR BOARD MEETING MINUTES - FEBRUARY 6, 1986 Page 2
Attorney Weidman asked J. McNeil-Carollo
Engineers, to report on his call to Wally
Homitz at 11:30 A.M. on 2/6/86 re letter
referenced by Mr. Honeycutt. Mr. McNeil
verified Mr. Homitz stated he had writ-
ten the letter in question.
Chairman Wynn asked if the Board would
look at Exhibit 26 which included a
letter from Mr. Homitz to Alta Pacific
dated 12/18/85.
Mr. McNeil read the 12/18/85 letter
aloud which addressed the MBE/WBE
Business Listings.
Attorney Weidman stated he had asked
the district's Purchasing Agent, Rich
Tiran, to make an investigation concern-
ing the Rados Corp. to find out if there
had been any violations to the State
Contractors License Law and also their
financial capabilities to comply with
one of the requests from a protester.
Rich Tiran reported on his inquiries
since 1/30/86 from the Dept. of Corp-
orations-California Licensing Board,
Secretary of State, California
Franchise Tax Board, Dun & Bradstreet
Corporation. Mr. Tiran read aloud
a recap of his findings and labeled
as Exhibit 53 by Attorney Weidman.
Bud Rogers, District Manager-Associa-
tion of General Contractors of CA, (Sac.)
spoke on the apprenticeship provisions
of public works contracting and re-
ferenced Labor Code Section 1777.5 and
explained the difference between the
procedures to follow for a signatory
bargaining agreement as opposed to an
employer who is not signatory.
Attorney Weidman stated Sletten Con-
struction (3rd lowest bidder) had sent
a protest by mailgram (Exhibit 55)
because"they were the only bidder who
had met the MBE goals." Attorney Weidman
asked that all bids be introduced into
the record as Exhibits 56 through Exhibit
61. (Attachment No. 1)
PUBLIC HEARING CONTINUED
(continued)
ADJOURNED REGULAR BOARD MEETING MINUTES - FEBRUARY 6, 1986 Page 3
Attorney Weidman stated he had requested
Mr. McNeil to ask the 2nd lowest bidder
(Roen) to submit supplemental MBE/WBE
documentation in the event they were the
apparent low bidder. This information
was submitted as Exhibit 63~ The same
type of information was requested from
Sletten Construction Company (3rd lowest
bidder) and Fru Con Construction (4th
lowest bidder). Sletten told Mr. McNeil
it was their procedure to submit every-
thing with their bid and the Fru-Con
supplemental MBE/WBE information was
submitted as Exhibit 64~
Attorney Weidman then questioned Mr.
McNeil about the responsibility of the
Grantee (District) to insure payment of
the prevailing wage rates. As a result
of Mr. McNeil's testimony, Exhibit 65*
was introduced into the record.
Director Madden stated she and Director
Mason wanted clarification of the Sletten
Construction Mailgram - that they were
not only protesting award of bid to
Alta Pacific but to Roen Construction
also, and further she wanted this in-
formation entered into the record.
Attorney Weidman introduced Exhibit 66*
into the record which was a check into
Alta Pacific's bonding company by the
District's insurance broker, James Boyd
Norton-Tahoe Sierra Insurance Agencies.
The next items introduced into the
record as Exhibit 67*were the resumes of
the Manager, Assistant Manager, Purchasing
Agent, Attorney Weidman, Mr. McNeil-Carollo
Engineers, Mr. Ettlich-Culp/Wesner/Culp,
Bob Thompson-Special Council and his
associate, Jennifer Hernandez.
Attorney Weidman then requested Alta
Pacific to respond to the question which
arose as to the electrical supplier and
introduced a 2/6/86 letter from Grove-
Madsen Industries as Exhibit 68~
PUBLIC HEARING CONTINUED
(continued)
*Attachment No. 1
ADJOURNED REGULAR BOARD MEETING MINUTES - FEBRUARY 6, 1986 Page 4
Attorney Minchella responded for Alta
Pacific.
Jennifer Hernandez questioned Mr.
Minchella about the Caltrans list being
used as a MBE/WBE source. Mr. Min-
chella responded extinsively about
Alta Pacific's MBE/WBE solicitation
efforts.
Chairman Wynn asked for comments from the
protesters in the audience.
Mr. Walker questioned the apprenticeship
training and the District's policing the
pay rates of the construction contractor.
Bud Rogers responded to Mr. Walker's
questions. Mr. Rogers is from the
Association of General Contractors
located in Sacramento.
Attorney Weidman asked J. Mc Neil for
clarification to the testimony about the
District's policing of construction em-
ployees salaries.
Doug Thomas, Business representative of
Carpenters Local 1789 wanted it en-
tered into the record that he had been
a resident of this community for 32 years.
He also stated he had brought up the ap-
prentice issue and that a representative
from California DAS was not able to be at
the meeting on such short notice. He
requested a continuance of the hearing
so that someone from DAS might submit
testimony on the apprenticeship issue.
Attorney Weidman stated he had heard
from a Mr. Franklin and asked Doug
Thomas if he was the DAS person from the
apprenticeship program. Mr. Thomas gave
a positive response.
Mrs. Garcia questioned the affiliation
Rados Corporation had with Alta Pacific
and again questioned Alta Pacific's
efforts in obtaining minority subcon-
tractors. She offered to leave a copy
of Caltrans list of projects entitled
The On-Ramp. Mr. Weidman accepted the
publication and introduced it as Ex-
hibit 71*along with other publications
provided by Mrs. Garcia.
PUBLIC HEARING CONTINUED
(continued)
*Attachment No. 1
ADJOURNED REGULAR BOARD MEETING MINUTES - FEBRUARY 6, 1986 Page 5
Chairman Wynn asked Jf someone from Alta
Pacific would respond to the two ques-
tions posed by Mrs. Garcia. Attorney
Minchella responded.
Doug Edwards stated he felt Alta Pacific
had lied about their contact with Mid
State Electric, their MBE efforts and their
contact with the electrical supplier. He
felt the District was supporting their
lies if the Board awarded the bid to
Alta Pacific.
Don Kral, Secretary-Treasurer of Alta
Pacific gave testimony on their ap-
prenticeship program, prevailing wage rate
policy, and employment of loacl citizens.
Director Mason asked Mr. Kral how many of
of their own people Alta Pacific would be
bringing onto the job. Jim Pelletier of
Alta Pacific answered saying they intended
to bring 5 or 6 key people as advisors and
hire locals for the remainder of their work
force.
Susan Northrop, member of Labors Local 185,
questioned whether or not Alta Pacific was
going to hire locals whether or not they
were affiliated with the union. Jim
Pelletier stated they would not discriminate
against anyone who wanted to work.
Mr. T. P. Jensen stated his general dis-
pleasure if the Board awards the bid to
Alta Pacific.
Attorney Weidman questioned Mr. McNeil
about Alta Pacific's bid bond (Portion
of Exhibit 7) because the Board had
questioned the quality of 1st American
Bonding Company of Fireman's Fund. He
asked Mr. McNeil if, in the event Alta
Pacific was awarded the contract, would
they be able to get the required bond.
Mr. McNeil answered, "yes".
Doug Thomas requested clarification from
Mr. Rogers as to whether he represented
the AGC Open Shop Division or the AGC
Union Contractors Division. Mr. Rogers
stated he represented both divisions,
signatory as well as nonsignatory em-
ployers.
PUBLIC HEARING CONTINUED
(continued)
ADJOURNED REGULAR BOARD MEETING MINUTES - FEBRUARY 6, 1986
Page 6
Chairman Wynn asked Attorney Weidman
if it was possible to close the hear-
ing and leave it open for the two
items at a later time (Information
from Mr. Franklin either in person or
in writing re the apprentice issue and
testimony from Purchasing Agent, Rich
Tiran, re his inquiry from the State
Contractor's Licensing Board about the
Rados Company.)
PUBLIC HEARING CONTINUED
(continued)
Attorney Weidman told him, "yes".
Chairman Wynn stated the Public Hearing PUBLIC HEARING CLOSED WITH
was closed to further testimony with the THE EXCEPTION OF TWO ITEMS:
exception of the two items noted above. INFORMATION BY STATE OFFICIAL
ON THE RESPONSIBILITY OF THE
Attorney Weidman stated he would like guid- DISTRICT INSOFAR AS THE
ance from the Board as to whether they APPRENTICESHIP PROGRAM IS
wanted the issues (some irrelevant and
some very legally relevant) set forth for
them with recommendations from staff
(the three lawyers, manager, assistant
manager, and the design and consulting
engineers) or if the Board just wanted
the issues set forth with no recom-
mendations.
CONCERNED AND THE REMAINING
INQUIRY OF THE PURCHASING
AGEN~ AS YET UNANSWERED, FROM
THE STATE CONTRACTOR'S
LICENSING BOARD.
Director Olson stated since there were
two items open he would like the rec-
ommendations from the legal and District
staff before a vote is taken on the matter.
Director Madden stated she would be out
of town for the next 2½ weeks but would
convey her comments to Chairman Wynn.
2:52 P.M.
ADJOURNMENT TO FEBRUARY 11,
1986, 1:00 P.M., 1900 LAKE
TAHOE BLVD., CITY SERVICES
CENTER
ATTEST:
JO lWYNN, oF BOARD
SOU TAHOE PL BLIC UTILITY DISTRICT
SOUTH TAHOE PUBLIC UTILITY DISTRICT
· ~BOARD
M EE T I'N G
· . GUEST SIGN-IN SHEET: (please print)
, . _ ,~. ,
COMPLETION OF THE ABOVE INFO~TION IS VOLUNTARY AND NOT A
PRECONDITION FOR ATTENDANCE.
NOTE:
NOTICE OF
PUBLIC
HEARING
TO WHOM IT MAY CONCERN:
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING HAS BEEN
SCHEDULED FOR THE 6th DAY OF February, 1986
1:00 P,M, AT City Council Chambers, 1900 Lake Tahoe
Boulevard (City Services Center)
BY ORDER OF THE BOARD OF DIRECTORS OF THE SOUTH TAHOE PUBLIC
UTILITY DISTRICT TO CONSIDER protests and other evidence
related to the awarding of the construction contract for
Contract No. 1, Plant Modification Project.
This is a contCnuation of the P~blic Hearing held on
~_~bruary 3, 1986, 3:00 P.M., 1900 Lake Tahoe Blvd., South
Lake Tahoe, CA.
DATED: February 4, 1986
PAT A, MAMATH, CLERK OF BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT