01-16-86MINUTES
REGULAR MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
JANUARY 16, 1986
The Board of Directors of the South Tahoe Public Utility District met
in a regular session, January 16, 1986, 4:00 P.M., 1900 Lake Tahoe
Boulevard, City Services Center.
BOARD OF DIRECTORS: President Wynn,
Directors Mason, Jones, Madden, Olson
STAFF: Cofer, Baer, Fischer, Mamath,
Miller, Plasterer, Schroeder, Hrbacek,
Taylor, Rondoni, Tiran, Swain, Trebotich,
Schrempp, S. Clark, Attorney Weidman-(4:16)
GUESTS: Doug Thomas-Carpenter's Local Union
No. 1789, Terry and Boyd Youmans-Mid State
Electric Co., Norm Woods-City of So. Lake
Tahoe, Jeff DeLong-Tribune, Mike Madsen.
None
Moved Mason/Second Olson/Passed Unan-
imously to approve as submitted:
1) Approve submittal of pre-application
of Erosion Control Grant to Tahoe Conserv-
ancy for five projects - (1) Forest Mt.
Water Tank, (2) Twin Peaks Water Tank,
(3) Lookout Point Water Tank, (4) Angora
Highlands Water Tank, (5) Cold Creek Res.;
2) Authorize execution by Manager/Engineer
of Step 3 Grant Amendment to revise Grant
Condition No. 10 and the "Building and
First Year Operation" schedule;
3) Authorize execution of 12/31/85 Amend-
ment to Agreement for Water Service between
Harrah's and STPUD in the amount of
$9,411/month;
4) Authorize payment to Peter Weigelt in
the amount of $55.40. Balance of payment
for easement across Lot 50, Parcel No.
30-403-10 related to Heavenly Valley Water
Tank Erosion Control Project;
ROLL CALL
CORRECTIONS/ADDITIONS TO AGENDA
CONSENT CALENDAR
REGULAR BOARD MEETING MINUTES - JANUARY 16, 1986
Paqe 2
5) Approve hourly rate for Insurance
Consultation Rates with James Norton,
Sierra Tahoe Insurance,at $50/hour;
clerical work connected with same at
$23/hour to be used on an as-needed
basis with prior approval by Finance
Committee.
Moved Mason/Second Jones/Passed Unan-
imously to approve 12/5/85 Reg. Brd. Mtg.
as submitted.
None
Neal Trebotich reported everything was
fine.
Director Madden reported the E1 Dorado
Erosion Control Task Force Committee
had met.
1/7/86 - 4:00 P.M. - Special Board Mtg.
(held at District)
1/9/86 - 1:00 P.M. - Special Board Mtg.
(held at District)
1/10/86-10:00 A.M. - Adjourned Special
Board Mtg. (held in
public E1 Dorado
County court house)
1/8/86 - 2:00 P.M. - Open Construction
Bids-Contract No. 1
1/9/86 - Mountain Counties Water Resources
Assoc. - Sonora
1/13/86- E1 Dorado County Water Agency
1/13/86- 4:00 P.M. - Workshop/Agenda Items
1/14-15- TRPA Consensus-Douglas Co. Library
Manager Cofer read a letter he had
received from Fire Chief Cherry, City of
So. Lake Tahoe, conm~nding Mike Rondoni for
his assistance with an accident. Mr.
Cofer also commended Greg Schrempp and
Steve Clark for their help with the same
accident.
Manager Cofer also stated he had received
a letter about the success of the United
Way campaign which showed a 15% increase
by District employees. He commended Kay
Taylor for her efforts on behalf of the
staff.
CONSENT CALENDAR (continued)
APPROVAL OF BOARD MINUTES
REPORT BY BOARD MEMBERS
SHOP STEWARD'S REPORT
COMMITTEE REPORTS
PAST MEETINGS
MANAGER'S REPORT
REGULAR BOARD MEETING MINUTES - JANUARY 16, 1986 Page 3
Manager Cofer stated there had been two
letters mailed. One to IBLA, Hearing
Officer in Washington, asking them to
expedite our BLM Permit review and the
second to Congressman Shumway asking him
for his assistance with the expediting.
Pat Mamath introduced Sue Hrbacek who
has been hired by the District in the
position of Grant Clerk.
None
MANAGER'S REPORT (continued)
PROGRAM MANAGER'S REPORT
COMMENTS FROM AUDIENCE
(Short Non-Agenda Items)
BOARD ACTION
Moved Olson/Second Mason/Passed Unan-
imously to authorize payment in the
amount of $714,122.77.
Chairman Wynn appointed Director Madden
to be the District representative and
Director Jones to be the Alternate.
4:08 P.M. to allow for arrival of
Attorney Weidman
4:18 P.M.
Presented by Bob Baer who reported to the
Board the District had received 7 bids
with the apparent low bidder to be Alta
Pacific Constructors. He further said the
District had received a Mailgram from
Roen Construction Co., a telegram from
I.B.E.W., Locali'401-Reno, NV and a letter
from Mid State Electric Co., and had been
contacted by Doug Thomas of United
Brotherhood of Carpenters and Joiners of
America, Local Union N6. 1789, all re-
questing the District NOT to award the
bid to Alta Pacific Constructors.
Attorney Weidman stated he had some rec-
ommendations regarding the matter, but
suggested the Board hear the people
present in the audience who were there to
address the Board:
*Terry Youmans, Mid State Electric Co.
*Mike Madsen, Grove Madsen Industries
*Doug Thomas, Carpenters Local Union
No. 1789
In view of what was said by the protesters
the Board made the finding there was a
*See attached verbatim transcription.
PAYMENT OF CLAIMS
APPOINTMENT OF EL DORADO COUNTY
WATER COMMITTEE REPRESENTATIVE
RECESS MEETING
MEETING RESUMED
PLANT MODIFICATION, STEP 3:
CONTRACT NO. 1-TREATMENT PLANT
REGULAR BOARD MEETING MINUTES - JANUARY 16, 1986 Paqe 4
potential for litigation. Moved Olson/
Second Mason/Passed Unanimously to
adjourn to executive session.
4:30 P.M.
4:50 P.M.
Chairman of the Board, John Wynn, an-
nounced that discussion would continue on
this subject and at the time of Adjourn-
ment he would adjourn the meeting to
January 21, 1986, 4:30 P.M.
John Weidman reported on the progress
of the escrow on this property and ex-
plained the 1/10/86 Meeting at the Public
Court House to those Board members un-
able to be present on 1/10/86.
Moved Olson/Second Madden to adopt Res-
olution No. 2377 Rescinding Resolution
No. 2376 which was to Set a Date For
Hearing on Intention to Adopt a Res-
olution of Necessity to Authorize Filing
of Eminent Domain Proceedings. Passed
Unanimously.
Moved Olson/Second Jones to authorize
Vice Chairman and Clerk of Board to
execute escrow instructions and prom-
issorynote in accordance with the court
order ($700,000/total price) and author-
ize payment of $175,000/down payment and
closing costs, payable to Intercounty
Title Co. Vote:
AYES:
NOES:
Directors Olson, Jones
Mason, Wynn
Director Madden
1/21/86 - 4:30 P.M. Adjourned Board Mtg.
1/23-24 - CASA
2/3/86 - 4:00 P.M. Workshop/Agenda Items
2/6/86 - 4:00 P.M. Regular Board Meeting
5:00 P.M.
PLANT MODIFICATION, STEP 3
CONTRACT NO. i-TREATMENT PLANT
(continued)
ADJOURNMENT TO EXECUTIVE
SESSION
MEETING RESUMED
PLANT MODIFICATION, STEP 3
CONTRACT NO. 1-TREATMENT PLANT
(continued)
JOHNSON PROPERTY ADJACENT TO
TREATMENT PLANT: PURCHASE
NOTICE OF FUTURE MEETINGS
ADJOURNMENT TO JANUARY 21, 1986
4:30 P.M., City Services Center
REGULAR BOARD MEETING MINUTES - JANUARY 16, 1986 Page 5
SOUTH~HOE PUBLIC ~TILITY DISTRICT
ATTEST:
PAT A. MAMATH, CLERK OF BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT
BOARD MEET ING
GUEST SIGN-IN SHEET: (please print)
NAME: ADDRESS:
NOTE:
COMPLETION OF THE ABOVE INFO~TION IS VOLUNTARY AND NOT A
PRECONDITION FOR ATTENDANCE.
BID PROTEST CONVERSATIONS
January 16, 1986 Board Meeting Notes transcribed from recorded tape
Bob Baer speaking . .On Wednesday, January 8th the District opened
bids for the Plant Modification Project, Contract I-Treatment Plant
Modification. Seven bids were received . The apparent low bidder
Alta Pacific Constructors, Inc.
Since the workshop on Monday, we have received a written claim from
Roen Construction Co. requesting that we not award the bid. We
received a telegram from Western Union from IBEW requesting we not
award the bid and just a few minutes ago we received a letter from
Mid State Electric Company requesting that we not award the bid.
(end Baer)
J. Weidman speaking. . . I have some recommendations about this
matter, in fact that's why I am late. (He asks who is here). If
you would like to hear from Mid State Electric and Doug Thomas that
would be in order and after that I think an executive session would
be in order in this matter and then we would adjourn back into the
regular meeting and advise the people who are here what the course
of action will be and if yOu woUld care to hear from Mid State
Electric and Doug Thomas that would be in order preliminarily.
end Weidman.
Wynn speaking. . is there anyone here who would like to address
the Board? Come forward. Give your name and Company.
Speaking Terry Youmans, President of Mid State Electric Co ....
We were one of the electrical sub bidders on the project. I think
you all have a copy of the letter we have written. I don't know if
you have had a chance to read it as yet. We have taken exception
to the award of the job to the low bidder due to the fact that he
did'-not list an electrical subcontractor. All of the other bidders
listed Mid State Electric. They all listed for the equipment
-2-
manufacturer, Westinghouse Electric. For the supplier of the
equipment, Grove Madsen Industries. The low bidder in his list of
subcontractors neglected to list an electrical subcontractor, however,
he did list Westinghouse Electric Co. and Grove Madsen Industries.
The people from Grove Madsen have never, ever had a word from the low
bidder's office. This raises the question of how can they list a
supplier that they have never talked to? We feel there is something
wrong. I am not an attorney and don't know all the legal aspects
but would ask that you at least see the award delayed to give us
some time to consult our attorneys and take whatever action they
feel is appropriate.
There is probably one answer that you will get from the low bidder
and that is that they have not listed a subcontractor because they
intend to do their own electrical work. If that is the case, first
it should be known that they don't have a C-10 electrical contractor
license in the State of California and, secondly, I would question
their capabilities and their background to take on over a one million
dollar electrical job. I would request that the Board look into
their abilities in the electrical field. From what I can gather
they are a brand new company and don't have a track record and I
think this is something where time should be taken to consider
this matter.
Thank you. (end Terry Youmans)
Weidman speaking By the way, Terry, I did talk to Mike Madsen,
who is here, and if he would like to make some comments or verify
what Terry said, please come up.
Mike Madsen speaking. I'm Mike Madsen from Grove Madsen Industries.
We are a wholesale electrical warehouse in Sparks, Nevada and on bid day
we did bid all the electrical contractors and we did not bid the general
-3-
contractor.
talk to Alta Pacific Constructors, Inc.
Thank you.
end Madsen
Doug Thomas, Carpenters Local Union speaking.
has basically covered the electrical problem.
I am the one who bid it for my company and we did not
That I will verify.
· . Mid State Electric
I have a problem
with the contractor as to his track record. How does he establish
a track record when he has only had a contractors license issued
to him December 27, 19857 I don't know how they could call him a
responsible bidder as what type of work did he do in the past?
That sort of thing is what I question. I was wondering where they
came from? Is he responsible? Has he done sewer plants before?
Weidman speaking. . .If he is a licensed general contractor in the
State of California and he can supply all of the bonds then prima
facie tells us we are pretty well in the position that we have to
consider awarding him the contract.
Doug Thomas speaking .... Okay.
Weidman .Doug, were you there at the bid opening?
Doug. .. Yes, I was.
Weidman . . I think you noticed this right off the button.
Doug. . . Yes, well, I couldn't pick up anything on Alta Pacific.
I couldn't find them anywhere.
Weidman. . . You caught the fact that they did not list an electrical
contractor and all that?
Doug. . No, I didn't. Not til someone brought it to my attention
-4-
Weidman speakin~ · · . Your main thought here is that they may
not be qualified?
Doug. .That they don't have a track record and I don't find
anything through the Contractors Board that they were licensed until
the 27th of December and we had never heard of them or either
person that is listed as the Responsible Managing Officer and the
President.
Thank you.
end Doug Thomas.
John Wynn speaking. . . Anyone else here to testify on this subject?
Weidman. · . I would like the Board to go into executive session
on this. I don't know when you want to do this. I do think
that they would want to learn of this course of action and after
executive session I think before you do that the Board ought to
make a motion that there is some potential litigation here arising
out of what you just heard and therfore you have justification
under the new government code to go into executive session,.
Olson. . . I so move.
Madden - Seconded.
Wynq . . .Those in favor?
AYES, all.
Those opposed?
So carried.
end subject on tape.
esh/2-6-86