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AP 03-02-06 Addendum No. 1SOUTH TAHOE PUBLIC UTILITY DISTRICT "Basic Services for a Complex World" REGULAR BOARD MEETING AGENDA ADDENDUM NO. 1 Note: This item was received subsequent to the Regular Board Meeting Agenda being posted. Adding it to the Agenda will require a separate vote with approval by two- thirds of the Board members present (or all Board members if less than two-thirds are present). Thursday, March 2, 2006 2:00 P.M. City Council Chambers 1900 Lake Tahoe Boulevard, South Lake Tahoe, California Richard Solbrig, General Manager Paul Sciuto, Assistant Manager Eric W. Schafer, President BOARD MEMBERS Duane Wallace, Vice President Mary Lou Mosbacher, Director James R. Jones, Director Tom Comte, Director 6. ITEMS FOR BOARD ACTION REQUESTED BOARD ACTION c. 2:45 P.M. Public Hearing Customer Service, Operations and Laboratory Facility (Jim Hoggatt) (1) Hold a Public Hearing Regarding the Substitution of Subcontractor; (2) Make Written Findings Regarding Whether the Stated Justification for the Substitution is an Authorized Ground for the Substitution, and Has Been Substantiated by the Facts Presented; (3) Determine Whether to Approve Substitution of a New Roofing Subcontractor as Requested by Roebbelen Construction Inc. ouch Tahoe Public Utility District General Manager Richard H. Solbrig Directors Toni Comte James R. Jones Mary Lou Mosbacher Duane Wallace Eric Schafer 1275 Meadow Crest Drive • South Lake Tahoe • CA 96150 -7401 Phone 530 544 -6474 • Fax 530 541 -0614 • www.stpuctus BOARD AGENDA ITEM 6c TO: Board of Directors FROM: Jim Hoggatt, Construction Manager /Engineer MEETING DATE: March 2, 2006 ITEM — PROJECT NAME: Customer Service, Operations and Laboratory Facility 2:45 p.m. PUBLIC HEARING REQUESTED BOARD ACTION: (1) Hold a Public Hearing regarding the substitution of subcontractor; (2) Make written findings regarding whether the stated justification for the substitution is an authorized ground for the substitution, and has been substantiated by the facts presented; (3) Determine whether to approve substitution of a new roofing subcontractor as requested by Roebbelen Construction Inc. DISCUSSION: Roebbelen Construction, Inc., the general contractor for the new buildings, has requested District approval to substitute a new subcontractor to furnish and install the roofing for the project. The request is made pursuant to Public Contracts Code Section 4107. According to the general contractor, they are requesting Andy's Roofing be replaced due to poor performance, lack of supervision, below standard quality, lack of manpower, lack of experience /knowledge of products and installation, and safety violations, in which the contractor outlined in their letter to Andy's Roofing dated February 24, 2006. The contractor notified the District on February 27, 2006, that they had terminated Andy's Roofing. District staff sent Andy's Roofing a certified letter giving them five (5) days, from the date of receipt, to respond to the contractor's request. Andy's Roofing, as of this date, has not officially notified District staff if they are going to file an objection. The contractor has furnished the District a copy of a letter they received from Andy's Roofing disputing these allegations. A copy of that letter is attached even though the District has not received an official copy. SCHEDULE: As soon as possible COSTS: None ACCOUNT NO: BUDGETED AMOUNT REMAINING: ATTACHMENTS: Copies of Roebbelen's Letters dated 1/26/06, 1/31/06, 2/24/06, 2/27/06; Copy of Andy's Roofing Letter dated 2/27/06 CONCURRENCE WITH REQUESTED ACTION: GENERAL MANAGER: YES NO CHIEF FINANCIAL OFFICER: YES NO CATEGORY: General ZU/ LULJU/ 111U L.W.U1 4144„ .• .• • ' January 26, 2006 • Vie, vaesii:. est : • • ..4:•..,•: 4 -- ••• ••••• • 1....• ....: ..... Aftn: Jonathan Engqmsta- .... ,.;.- .i I.- : ..... -..... . • 5, ..... . el. el.." 1 . •• ; . ••• • .... ••••• .t., • J '.• - ...Andy's Roofing Company-Ric. • .,%;.7'• :: - t:-....,. ' . .. . . • ...« • 0 . 897 Ames Avenuetg•';:' .ii:i a :: .. .. 0... .• . •• -•:. • - r., . 4-1. Milpitas,. CA. 95.0.1.e.r.r . ...)..:,. • ....... , .. • ....:., ,. ...„ , .. .. .e. • . 1 .- . • : ' ' • :".c::: • 44 .. L. Fa . .... x: 408-416-Obt • .. . .. .. • . .... ,: ,.7." ••1 • r .. • . . • '..:".;•.s. 41 •• •• .. • 1.•• : ' . Slet' r•r.a. 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IV : to •t• • .:..:,. : ... . .....:. . 1.,... .7. .. .c. , Dear Jonathan:4 • -9,.. t• .: .'"'",= :' ". r .: 0. •• • : -.Iv, - ! ••,....::•.- : : . 2: ;:` : ''' =•***.k:'-1..,:••••: 4, ..... .. ' ' • '''•*".,..•••••::',..• •,,,y,,..... .....,...,...„.....,. •• •••.. r:::. 17:211:.. ....... l';:.!;.7. ... % ,.:. Per A,2itiele...:50';:dfAtit- sui-e6ri*iptiigreement ytFir fum is ofddialiy :p"I's.d.eti 06 ii.21:41AIr .:. ..- 14°116.z.;••:::.Yoir nn was- the customer. Frvice bul4Q 1:31;":44071!0 t6 *Vein : .. . .. • inS talli402;::.kour firti cliditd.tj3.e.gin installatiotismtil 1-16-O to tinti; the thiiipowOr . • , sippliii101.)iii project is nof.iAcreaat to rasintiii schedule. A pd ; your thi;eviri4.:••creW.... showedifici'•:wtirk to .. - .. . - ::9:30 am anAave not reCtlitrecli.:•There has be an occasfdOW.414 snoi(i•;:41i64;.Wic..40.1y, howaver1::the project '..iiisP&444 ,autborized,.lahr... peoplei4i.tAiginii.:7i", 0iii.;;;itag the prolect while critical worl4.i pccyrring 4 ot....,.... acceptabiongr*.st : ,. .fictipletitted.' Your fit:m*4s given (10)orliiiiit ..ci*:.q.complete'• this rod:iialotii." .:'or*sr: .4:t00eitedule. • This .icl?edule was iii.is35ii4itY:sio,'• Airt 41.: 7-6-05. .Paiebl?eiiii-liai'liever."t ;r:fied.a.caprlientregar +ding,. t1ip...1;cheiluie L.ryp..3 ;;••o4 .. 0 . • • • • / ;.:. ..•... .- : 1-..: . .., , ...r .. ......-. :. .v.... ... . .. .... . ... • • . .. • . .......;• : II • • ';'7'. Additionally,: your fora has not supplied *nate tools and equipment foi,..Your installation:is identified in a memo sent to yon.bp 1-24. Roebbelen has continually tad to assist 3ibir installers with equipment, tools, labor to cover your work; and snow 7 ice removal. Yam crews continue to not cover their work or stored material to protoot it The project inspector has stated that if the insulation and insulation board ofthe installed / stored material gets wet, it will be rejected. Roebbelen will not be responsible if this happens and your ftrm will be required to replace while maintaining schedule. . • • . . • . . . Roebbelen has slab been receiving several BFI's from your firm lately. This appears to . . . -.. some attempt at a delay tactic. Questions like these should have been answered long ago .. . • - • 1241 Hants Flight Court, Suite 100, El Dorado HMs, CA 95762 .- . . . . . . '. . Telephone: (916)939-4000 /Fax: (916) 939-4057/ General Contractors License # 734124 ' : , .. - • .. . .. . . ,: ... . . .. . ..- .. - OEBBELE . • . • .• CONTRA.C714,* C... • . 1"•• • r•• • • • ••• • .• '41 Or.14.... • . ' ••••;%',..711 •k 4* • . • • ...el- prr,. • • •••••!. • • ., • `• •••• +: ••.% -'• •••- *: •• J • • • • • • ••%: .1: • •r-r v"•-• .4"••••; 'et '• • 4.. RECEIVED JAN-26-06 16 :DB HOW TO-KLEEIMN ROEBBELEN PAGE. • ' .•JUU/ luv UJ•ULtnt•,'uVLLLLLL'I1' 1 -AA 11 V. _ Y..uu:d vUL before installation started. You stated in •a response that your fin has been delayed in the start ,of your work. If this is the case, why are these late questioDs coming if your.: fist was ready to start some time ago. Please correct these problems immediately and supplement your crew to finish your work as scheduled. .Failure to comply will result in Roebbelen supplementing your crew with another contractor at your contract's expense. • . sincerely, ROEBBELEN CONTRACTING, INC. Sean Honegger Project Manager cc: Jobsite RECEIVED JAN-26 -06 16:06 FROM- TO- KLEEMAN ROEBBELEN PAGE 02 Y ip, 6 ! .. t! F •C t i 3 _..� . '! .�'ti;, ..y Roebbe ' - r" • • in re nse to our 1-264, 6 .2, our aio .16 h •1 , 4 Va++ ` t i 4 i .r}.'t3t 4M :s. r ° axons why fhis`inot ce is n -._ ,�t , .1E, oeb�fmds no valid Y rio , y � review, .z. .: basca '".- delayed our testa pad, z° h ia.ai• -. �. �••�.. 'A t' chelen has Y 4 •. _ ,x Seem. � �,_ °•�t� ..n.t :: �� t P t '!F h -@ i 7P . @@' on 4 • � % ' ' ` our subcontract agreement all ;1 I will foil -.-1.. t ay claims. (1)Or subcon.. eemi :0 early z � �aele Roe elen: 6.;.e :.g Inc. scledul.e as aided • "Adheres � .. .,_ �• � „ �nne as outline in bid documents. Add ona l Con • • • , € . onsite field • .4.- c , t. our subconraC your c rit o •I firrll, .. „�„• tt tom;.° .. .vision for elays. A edsu on m cL ntractor s progress .contractor s• u o ...Ism January31, 2006 Via Vacsimile Attn: Jonathan Engquist Andy's Roofing Company, Inc. • 897 Ames Avenue :: Milpitas, CA 95035 Fax: 408- 416-0301 Pages: 34i, • , Building Project Operation / Laboratory. g RE: Customer�ma*�ce Facility and?�astewater South 1a oaTublic UtilityDistrjot South Tahoe, CA Subject , tus of.Worksvath 72 HourNotice D ees that the. C - „ � r " r' the ContractoL `b "r ti mode � t teA t ed necessary,by_ :. t di cations as to as` h ca of be ob . y i`�e„;fer t.'o ehy� t . or 's modifications . �� s schedule e' a m' e ” •' nth the pro�res Xr rerrr�in tF � .,r �.t�� c .at t� • ��re.�ffiC ' , rums 13- cA „n'o o . documents. " schedu� does no o r i g i n a l • o c u m e n t s t h a t ` • t@ s h e d • .t t... ons a original " y`� eting in December.e show your . R beginning in unit, er an: rap .410; .. lation bePj � ,��. Tahoe, then ,are measurable amounts of snow�fall.'at all times of the year The venter ' '� °' May 1$t This winter peso is period in .t area starts October 150i and remains until M ��. "'� point I am malarig rs published�by TRPA, the governing authority intake Tahoe. The p that we are expected to receive snow at this time of theyear. � clear of this is rest of October '04. This area received approximately 4-5' of the '04 — '05 winter season. When your firm bid this project to Roebbelen, your firm r should have anticipated adverse weather conditions as they are typical for the time of year your installation was scheduled. • You have also clearly stated that your firm will seek reimbursements for your non - productive work. Roebbelen will not entertain any 1241 Hawks Flight Court, Suite 100, El Dorado Dills, CA 95762 Telephone: (916) 939 - 4000 /Fax: (916) 939 -4057/ General Contractors License # 734124 • costs submitted by Andy's Roofing for delays to your work. • • As shown in the CPM schedule, your work is critical to this project. Many of our subcontractors are being impacted by the lack of weather protection on the roof If the progress of your work continues and your firm goes way over the allotted time, Roebbelen may be forced to deal with impacts front other subcontractors. These impacts will be forwarded to your office should the installation of your work not progress per schedule. Again, the purpose of the 72 hour notice is because your firm continues to not provide adequate manpower for installation. Please refer to the photo attached. The area covered is not even one quarter of the building. Your installation begun on 1- 23-06, there is (1) snow day established during this period, 1- 27 -06. Your firm has only worked (4) days out of the possible (6) through today. 1 will remind you that our superintendent directed your firm to proceed on 1 -12-06 with installation. Again, your firm did not start installation until 1- 23 -06. Your firm also continues to send RFI's regarding installation problems that should have been sent long ago. The recent RFI 1#5 regarding EDPM installation is an example. Regardless if you were installing in October or January, this problem would still be an issue. if your firm was truly ready to install, these questions should have been addressed long ago, not at the time of installation. Please take this letter seriously as Roebbelen cannot tolerate any more delays. Your firm . is required, per contract; to staff this project as to maintain our project schedule. • The current crew your firm has provided is not adequate. Please send additional qualified installers as to progress on. this critical.work. Today, is our subcontractor coordination. meeting. This meeting is weekly. on Tuesday's at 1:30. Your firm, by contract, is required to have,a representative, with decision making authority. :This would be very helpful to Roebbelen, as we have had difficulty communicating with your crew. The 72 hour notice sent to your firm on. 1-26-05 has expired. At this time, Roebbelen may supplement your work forces if the progress of your work does not improve. Please remedy these problems immediately. Roebbelen is more than willing to work with your firm. We have made every attempt to allow your crew to be productive by clearing snow, heating the deck, covering roof areas, and allowing use of our equipment Roebbelen will continue to do this, provided your firm does your part to install the work per schedule. Dave .or myself are available anytime to discuss, but most important to Roebbelen is to get your work installed and all problems will be resolved. Sincerely, , ROEBBELEN CONTRAC'T'ING, INC. Sean Honegger • Project Manager. t, • PAO( pgdSS 11AS 04.14? Occ-oLeD 7 -ittc: Pattf ti-c-ot4) SKYLI&IfTS AM) ADE e/i wateKra. oft) Atik) • Q B SELE CC 11ZA q7 ETC.' :4 • February 24, 2006 `is CejaHlectitiall and Vac & .,. • Alta: Mr. Jonathan Efiggl ist" . .Andy's Roofing Goxnpax y, Inc. .. •: 897 Ames Aventi4t• ". i.,:. r "I - , _ r•. • .••� CA r ,...'.t •8 .:: Fae: .408-416081 f ?' . . RE: liriw0000'u�sr.Sezvlce h ty mood Westew;Iii Vpeintioa:/ r abo:ra1oary di •,Ptojtcc: • sout_ "+-id ai. z � •y' ••: • • t .1 ,«" .r••.• .'t'M r ••+; Sean Honegger Project Managcr cc: Jobsitc . Mr. Jim Hogged, STPUD 530 -541 -0614 Mr. Sam Chamberlin, DEZD Roofing 775 -685 -5566 RECEIVED FEB -24 -08 18:0T FROM- TO- KLEEW►N ROEBBELEN PACE 02 OEBBELE CONTRACTING, INC. February 27, 2006 Via Hand Attn: Jim Hoggatt South Lake Tahoe Public Utility District. 1275 Meadow Crest Drive South Lake Tahoe, CA 96150 • RE: Customer Service Facility and Wastewater rOperation I Laboratory Building Project South Tahoe Public Utility. District South Lake Tahoe, CA Subject Replacement of Subcontractor, Andy's Roofing Company, Inc. Dear Jim, As you are aware by a letter copied to you on 2- 24 -06, Roebbelen has terminated our subcontract agreement with Andy's Roofing Company, Inc. per California Public Contract Code Section 4107.a.7. There are several reasons for this termination as outlined in the letter from Roebbelen to Andy's Roofing dated 2- 24 -06. Also included with this letter is supporting correspondence from Roebbelen • to Andy's Roofing throughout the project. Roebbelen has already been damaged by the performance of Andy's Roofing, it is our opinion that if Roebbelen continues with Andy's Roofing, the project will be damaged further Roebbelen has made `arrangements with another contractor that is very well suited for this project : This new contractor'will correct the deficiencies of Andy's Roofing and resume installation of all roofing activities including :installation of the copper sheetmetal at the roof. ' This new contractor 'is'well versed on installation in this area and was an original bidder to Roebbelen before the project began.' � a v Listed Subcontractor.;::' Andy's Roofing Company, 897 Ames Avenues Milpitas, CA 95035" Ph: 408 - 416-0300 Fax: 408 -416 -0301 License' /go. 521860 Contact:; Jonathan Engquist 1241 Hawks Flight Court, Suite 100, El Dorado Hills, CA 95762 Telephone: (916) 939=4000 / Fax: (916) 939 - 4057 / General Contractors License # 734124 Replace with New Contractor D &D Roofing and Sheet Metal, Inc. 1000 Glendale Ave. Sparks, NV 89431 Ph: 775- 685 -5555 Fax: 775- 685 -5566 License: 486667 Contact Sam Chamberlin Please confirm in writing that our substitution request is approved. If you have any additional questions, please call. Sincerely, ROEBBELEN CONTRACTING, INC. Sean Honegger Project Manager cc: Jonathan Engquist, Andy's Roofing 408 -416 -0301 Andy's Roofing Company Inc. February 27, 2006. . Sean Honegger • Roebbelen Contracting, inc. 1241 Hawks Flight Court El Dorado Hills, CA .95762 916/939 -4000 916/939 -2966' fax • 530/541 -1362 job 530/541 -2086 job fax • RE: South Lake Tahoe Public Utility District Customer Service Facility and Wastewater Operations / Laboratory Building South Lake Tahoe . . • • Job #2659 . . • . Subject: .. Roebbelen lettei dated February 24, 200'6 Teriiiiriatioii•of Subcontract Dear Sir. GK We are very sufprised tb rfy'Celve this letter. Since your letter dated January 26, 20b6 We•have completed the Wont tn'the areas that were ready fprout work with the +ix'isptian •of tkd :flat,ares at the Customer SeMCe Buiiding which is pending material stibmittal revIeW. To date,.we Have hot received specific refet bces.tfs "pootperformance, lack of supervisibh, below staiidatd- gUality", "lacI bf e perieficeiknOWletIge•iif phiduots a hd.instsudtion, elhd safety violation":. tiiihert• We.16st:spoka :on February 2, you•adrriitied Mitt there rtteybe-sortiti Uhtftithe tb your 72 -hour notice lst*tiiat•.yau had to put'everything in It fer.ftiture•use against u35. The issues mentioned in yobr.72 =flout Flatlet :Ws*. ad dr6ssed"withodt t`esptittie in -bur letter dated February 3, 2008. We considet d tf1 s issue bloaed. Pleases fdr* 1d your suppetting docurnente9tlonior.atiy of the issues mentiohed: btive ffi:'.dUrteview. ' As far the lack df Ma(ipower° We addressed this issue by• sencdirtg •outiwice•thie•Wotlifi6rt a.:it should be rioted,thafegch•thtiugh we wsre raver behihd e;ttiedUle, We offered oh tWo•bccasionshtb. work Saturday ottly to be told that iRoebbe3len couldn't Piave. er yorte there to.bpen tiia site. - We tine it •iiiinto theft :you t• idte • Safety violatient••as one .of the•feasons for this tettnitiatiori when all /brig, Roebl eleir.he; beers pushing us to wofk in imsate bonditionst Not only have vice not. reeelved' • a single nbtIcl df:vidiet(dh brit Cat OSHA's Cod e:o'F'iRigulations prepItides.*orRe s f om•beitig • required sir knoyvittly ball httt'to work uridtar tir1 afie oortditloiikt. It i :u$f td.the .efliblOyet to ri ke.• that de*termiiiatidh. Cla9rfyi; tfying:tc walk'rrfub i IsSS'Wbrk oh d 13'AridNtrik trWitft'tFie.presence o1^' • snow sited he IS 'hat safe ho mettai• •hoW •rnehy•safety Iifie§ dh'e *ears. • • • We .are currently waiting for the copper to be Installed so we can start the shingle installa• tion. Your (told staff said that this could take as Jong as a week until we could retum to. the site. We have received no notification that this sheet metal has been completed. We don't need muchmetal installed ahead of us to get started. 1 don't know/why this is taking so Tong. . We can and will complete this project once the design issues are addressed and approved. There is nothing to do on the project currently. We believe this Termination to be without cause and may Just be a way for Roebbelen to get us off the job and hire some one cheaper to install the roofing and copper fleshings as a package. This has been Roebbelen's intent since before we started work as demonstrated in their letters dated September 8, 2005 and September 27, 2003. 897 Ames Avenue.- Milpitas, CA 25035 • Phone (408) 416 -0300 • Fax (408) 4160301 RECEIVED •FEB-27-06 17:17. FR011-4064160301 TO- KLEEiAAN ROEBBELEN PAGE 01 Sean Honegger February 27, 2006 Page 2 We would request that we be allowed to meet with the Owner and our manufacturer's representatives to ensure the Owner of the quality of our installation to date and in the future. Please advise if we calf meet this week to resolve these and.any other concerns you might have. enc cc: Jim Haggett WO Jon - an W. Engquis Project Manager RECEIVED FEB- 27 -06 1T:1T FROM- 4084160301 TO- KLEEIWAN ROEBEELEN PAGE 02 SEP ^11-D5 1L:55 FR01.1- 6LEEIMR MUM E(EM September 27, 201DS. Via Pm:31.2,11s Attu: Jim Hoggait South Lake 'robot t Public Utility District 1275 Meadow Cist Drive South Lake Talho , CA 96150 FM 530- S41.0614 11S-1111-11:1 1-611 r.viret r19t OEBBELEN CONTRACTING, INC. Pages: 1 RE: Customer trice Facility and Wastewater Operatioo /Laboratory. Building Project Sauth Tah Public Utility Dbuict South Lakt Tahoe, G Subject C Request to Replace Roofing Contractor Jim: Previously, R belen Contracting regtaested the Disnicr allo* us to replace the listed roofing contract Andy's Roofag. After further review, it appears the differences betiyeett Andy's, Roofing and Roebbelen will be worked art. Roebbelen cancels our request to tt pia this subcortnaetoe. Please call ifyon have any questions. • • Sincerely, . ROEBR ELEN • PJTRACTING, INC. Sean loeegger ?reject Mauager CC: John Engqiiisr 650-967-2741 1 41 Hawks Pligla Ceara, Sake 100, El Dorado Hilb, CA 95762 Tekpbone: ( 16) 939 -4000 / FA= (916) 939-4097/ General Contractors Licence to 734124 RECEIVED FEB -27-06 1T:17 FROM- 4084160301 TO- KLEEMIN ROEBBELEN PAGE 03 'JEf-iB -us 14 :eV Sepiecriiber 27, 205 • Yid Vacsimile Attn: Jonathan Ebggnisc . any, Inc. Road 94041 • 1 • Andy's Roofing X40 South Wh Mountain View, Fax: 650 -967 -2 Pages: 2 : %RE: Customer mice Facility and Wastewater Operation / La'- oratory Building Project South Tah Public Milky Dierriet South La Tahoe, CA Subject: ntraet and Cbauge Order Dear Jonathan: Rncbbelen has Vidsed the owner that we have withdrawn our request to replace your firm on this FOOT- Per our discussion,1 have still not seen a price for the roof copper sheet metal yet. On bad 'indicated in our converse:ioal drat I would receive this price by last week. P provide puce thr ibis added work. We would like m get this work under.contsacd d get submigalsin for approval quickly. Our contracts eot wM he returned to your company shortly. It will be approved and signed and t ' letter serves as your permission to proceed. Also attached is a copy of change order #1. This is for the demo and replacerntat of the roof et the chlorin: building. I Wt ' message at -your office Tat we would like to schedule this work next week.. .Please vs know ,,if shot praseats a problem. Our supetintendcnt, Dave Champion, wal contact you today or tomorrow to schedule this work. Roebbelea has a mfnned that the roof as the customer service building will be ready for your work the week of December. Please umrk this on your calendar and make score that this start ek e will fit in your schedule. As you are aware, the Tahoe region weather can be very unpctable. Your firm wilt be expected to work in adverse conditions. Please let us bar immediately if this presents a problem. Sincere ly ROEB B)(.LEN ONTRACTINC. INC. Scan Honegger Project Manage 1 41 Rsw% Flight Court, Sake 1DD, El Dorado Rills, CA 95762 Telephone. 6),39 -0100 / Fax: (916) 939 - 4951/ General Cennaeeon Lkense u 734124 RECEIVED FEB -27 -06 17:17 FROM- 4084160301 TO- KLEEIMN ROEBBELEN PAGE 04 • Scptranber 8, 200S Via Ventimlle Ann: Jonathan Engquist .. Andy's Roofing Company, Inc. 140 South Whfsmaa Road Mountain View, CA 94041 Fax: 6S0- 967 -2741 Pages: 1 RE: Csbiomer SeMoe Facility and Wastewater Operation 1 Laiwstety libMiag Project South Tahoe Public Utility Dlsuta South Lake Tahoe. CA • Subject: Contract Dear Jonathan: Roebbelei has received the awned contract offered to your fiats minding the etbove rafereaood project. Your firm has mask several modifications TO this contract in both the main body (tee and conditions) of the omIuaet and the Altachmant A (scope of work) portion. Raebbek v does not agree with the changes made to Irk o tract in both scope of work and thus' of the contract. The changes made to this contact are simply too vast for Rocbbelen so consider. Please rernembet; Roebbeletl's standard contract was available for wriest by your firm prior to the bid of this project. If our contract was not ro your salita5a;6on, your bid should have contained t70:11114003 10 our mnnaet as w allow Roebbele n am opportunity to assess maid exclusions prior to bid. Because of the inability to execute a muTm lly agreeable eaatracr. Roebbelea 1te't by rescinds our offer to eater into s contract with your firm for this project. It is our tmdtrstawd ng that your firm has incurred some asinsiaisatmive costs associated with this project. Please sabtnft an Itemized bz k4 m of thews costs fir R.oebbelen to review. You may fax the costs to myself at 916- 939 -2968. More call if yarn have questions. Sincerely, NOFRMEN CONTRACTING, INC. Sean Honegger Project Manager cG Jinn %log r n _ South Tahoe Public Utili y District — 330 -54) O l 4 1241 Hawks Flight Court, State Okla Dara4a Rills, Ca 9576t Telephone. (916) 939 -4000 / Firc (976) P39 -4U571 General Cowuactenr license 1R 734124 • RECEIVED. FEB -2T -06 1T:1T FROM-40841 60301 TO-KLEEMAN ROEBBELEN PAGE 05