Minutes 07/09/2015 Special Meeting yo�TH rAhoF
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
Richard Solbrig, General Manager Shannon Cotulla, Assistant General Manager
Randy Vogelgesang, President BOARD MEMBERS Kelly Sheehan, Vice President
Chris Cefalu, Director James R. Jones, Director Duane Wpllace, Director
SPECIAL MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
July 9, 2015
MI N UTES
The South Tahoe Public Utility District Board of Directors met in a special session, 9:02 a.m., at the
District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California.
ROLL CALL:
Board of Directors: President Vogelgesang, Directors Cefalu, Jones, Sheehan, Wallace
Staff: Paul Hughes, Melonie Guttry, Richard Solbrig, Shannon Cotulla, Gary Kvistad, John Thiel, Julie
Ryan, Trevor Coolidge, Tori Lendstrom, Heidi Baugh, Brian Bartlett, Cliff Bartlett, Chris Stanley, Randy
Curtis, Tim Bledsoe, Jim Hilton, Tim Rieger
Guests: Thomas Haen, Robert Haen, Thomas Haen Compony, Inc.; Wayne Vinciguerra, Casey
Vinciguerra, Austin Vinciguerra, Susan Vinciguerra, Vinciguerra Construction
CORRECTIONS TO THE AGENDA:
Attorney Kvistad reporfed two items are proposed to be added to the Agenda -Item 3 a Bid Protest
Hearing, and 3 b Closed Session. These items came to the Board's attention after the Agenda was
posted and require immediate action. Under Government Code 54954.2, the Board can add these
items to the Agenda with a 2/3's vote. If approved, Item 3 a will be moved to Item 3 c. Staff reported
immediate action is needed to add these items to the Agenda for the following reasons:
• Pump control valves are at the end of their useful lives and in danger of imminent failure.
• Pump performance is declining, suggesting an imminent need for rebuild
• Numerous days of power outages and current imbalance from the main power feed at Luther
Pass has caused motors to trip out on high temperate and contrib�tes to putting motors at risk.
• Existing transformers pose reliability risk
• The project needs to move forward to remain in compliance with the Porter-Cologne Water
Quality Control Act.
• A culmination of these critical issues requires the District to keep this project moving forward.
REGULAR BOARD MEETING MINUTES-July 9, 2015 PAGE-2
Moved VoaelaesanQ /Second Wallace / Cefalu Yes /Jones Yes /Voqelqesan4 Yes /Sheehan Yes/
Wallace Yes to add Items 3 a-2015 Luther Pass Pump Station Power and Control Project Bid Protest
Hearing; and Item 3 b-Closed Session Regarding Potential Litigation to the Agenda.
ITEMS FOR BOARD ACTION:
a. Bid Protest Hearing -Staff reported on the 2015 Luther Pass Pump Station Power and
Control Project Re-Bid process. Staff found six (6) deviations identified in Vinciguerra's bid,
three (3) of which continue to be a concern to staff.
1. The bid is incomplete without backup to support the listing of non-American valves on the
Materials/Suppliers list. The District is not obligated to accept an incomplete bid.
2. Although Vinciguerra Construction signed the AIS Certification, the Certification does not
state that the bidder will provide only AIS compliant products.
3. The listing of the non-compliant manufacturer states the Contractor's intent to provide non-
compliant products, and his signing of the Certification committed him to provide the
required documentation to supporf the listing. That document was missing from the bid,
and so it is incomplete.
4. The AIS issue is a matter of omission from the Bid of required documentation to support the
naming of non-American products.
5. "Rockwell" is in fact an approved manufacturer of "Control System Software" for the PLC's
on the project. Vinciguerra's information further confirmed that "Wonderware" will also be
provided as the "Control System Software" for the HMI's on the project, as required.
6. The District does not allow contractors to correct errors in the bid. It might waive minor
irregularities, but it does not change the bid.
The Public Hearing was open at 9:21 a.m. to receive public comments and protests regarding the
2015 Luther Pass P�mp Station Power and Control Project Protest. The Board listened to comments
from Jennifer Dauer, counsel for Vinciguerra Construction and Thomas Haen, Thomas Haen
Company, Inc. Jennifer Dauer finished her comments by stating Vinciguerra Construction has been
responsive and requests that the Board not take staff's recommendation, but to award this contract
to Vinciguerra Construction. Staff addressed points raised by Vinciguerra's counsel.
The Public Hearing was closed at: 9:44 a.m.
b. ADJOURNMENT TO CLOSED SESSION: 9:44 a.m.
RECONVENED TO OPEN SESSION: 10:02 a.m.
c. 2015 LUTHER PASS PUMP STATION POWER AND CONTROL PROJECT
Staff provided an assessment of the protest and finds the protest without merit, recommending
the Board find the bid non-responsive for the following reasons:
REGULAR BOARD MEETING MINUTES-July 9, 2015 PAGE-3
• Omission of information required by the certification makes the bid incomplete. Information is
required by the grant funder when foreign product is stated in the bid as was the case here.
• Omission of the information has potential to jeopardize the District's grant funding. To be
consistent, the District has in the past has found bids non-responsive for failure to comply with
requirements that are set by the grant funder.
• Attorney Kvistad added Vinciguerra's counsel's reading of the various components of the
contract documents in the certification was selective. It is important that the contract
documents be read in whole and in context with the intent.
President Voqel�esan4 commented that staff did their due diligence and appreciates
comments made by Vinciguerra Construction. He does not see any reason to go against
staff's recommendation. Director Wallace stated that time is of the essence and based on the
information, agrees that Vinciguerra's bid is incomplete. The District has lost funds in the past
and cannot allow that to happen on this project. Director Jones supports staff's
recommendations and agrees with comments made by Volgelgesang and Wallace.
Moved Vo4elaesanq /Second Sheehan /Cefalu Yes / Jones Yes /Vogelqesana Yes /
Sheehan Yes/Wallace Yes to find the Vinciguerra Construction protest without merit and that
it should be denied based on the reasons stated by staff.
Moved Voaelqesanq / Second Jones /Cefalu Yes /Jones Yes / Voqelgesang Yes /Sheehan
Yes/ Wallace Yes to find the bid from Vinciguerra Construction as non-responsive for failure to
comply with the requirements of the Buy American Certification because the bid was
incomplete in the omission of the documentation that was necessary to support their naming
of non-American made valves on the Materials/Suppliers list, and furfher did not identifying nor
supplying backup documentation for those valves as required by the Buy American
Certification; reject the bid from Vincinguerra Construction; waive the minor irregularities from
Thomas Haen Company; and award the contract for the 2015 Luther Pass Pump Station Power
and Control Project to Thomas Haen Company, Inc. in the amount of $3,881,334.
ADJOURNMENT: 10:09 a.m. �
Randy Vogelgesang, Board President
` South Tahoe Public Utility District
Melonie Guttry, Clerk of t Board
South Tahoe Public Utility District