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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