Resolution on Lakeview Commons is in sight
SOUTH LAKE TAHOE, Calif. – The legal saga surrounding Lakeview Commons may be coming to a close.
On Tuesday, the South Lake Tahoe City Council could approve agreements with Roseville’s Reeve-Knight Construction and North Highlands’ Clark & Sullivan resolving a contracting dispute over the stalled El Dorado Beach improvement project.
According to a Jan. 20 staff report by City Attorney Patrick Enright, the city and Reeve-Knight have “tentatively agreed” to a resolution that will include the contractor receiving $140,000 for work completed on the project, require the contractor to drop a pending appeal and allow the city to move forward in accordance with a November decision by El Dorado County Superior Court Judge Steven Bailey.
In the decision, Bailey ruled in favor of Clark & Sullivan and the Carpenters Work Preservation Committee, who challenged the city’s awarding of the construction contract to Reeve-Knight based on the amount of work to be completed by subcontractors.
The decision compelled the city to re-bid the construction contract for the project or award the contract to Clark & Sullivan.
The proposed agreement with Reeve-Knight would also prevent the contractor from further bidding on the project or issuing any challenges to the city’s decision to re-bid or award the contract to Clark & Sullivan.
Subcontractors used by Reeve-Knight on the project would also need to be paid under the agreement.
During a phone interview Thursday, Reeve-Knight attorney Jennifer Dauer said a notice of appeal to Bailey’s decision was filed earlier this month to preserve the contractor’s legal position, but she also said she is in discussion with the city to resolve the case out of court.
She said none of the parties involved want to see the project delayed further. Dauer said she typically tells appellant clients to plan on proceedings taking a year if the matter ends up in court.
In a separate proposed agreement with the city, Clark & Sullivan and the Carpenters Work Preservation Committee would be required to withdraw requests for bid preparation costs, as well as fees arising from legal action, Enright said.
Clark & Sullivan, the lowest responsive bidder on the project outside of Reeve-Knight, would be awarded the construction contract under the agreement.
Enright and outside legal staff have reviewed the contractor’s bid forms and determined “irregularities in the bid proposal submitted by Clark & Sullivan Builders, Inc., if any, are inconsequential and the City Council may, as authorized under California law, waive any and all such irregularities.”
The payment to Reeve-Knight for work completed is expected to be paid by the California Tahoe Conservancy, which has funded Lakeview Commons to the tune of $6 million.
“Public Works staff, in consultation with the California Tahoe Conservancy, determined all of the amounts to be paid to Reeve-Knight Construction, Inc., are eligible under the grant funding so there will be no impact on the General Fund,” Enright said.
“Also, the city’s legal fees for outside legal counsel are eligible for reimbursement from the grant funds. There is a potential when the project is audited in two or three years that some of the amounts could be determined not to be grant-eligible, but city staff is confident the likelihood of any item not being grant-eligible is not likely.”
Also at Tuesday’s meeting the City Council will hear a presentation from Liberty Energy’s Bob Dodds and Randy Kelly regarding customer service programs, local job creation and emergency response capabilities.
The council meets starting at 9 a.m. at Lake Tahoe Airport.