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Judge’s Lakeview Commons decision critical of South Tahoe


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By Kathryn Reed

South Lake Tahoe officials and the City Council were given a written reprimand by the judge overseeing the Lakeview Commons contract dispute.

El Dorado County Superior Court Judge Steve Bailey issued his written opinion of the case Nov. 1. Though the outcome does not alter the decision rendered in court last month, the 30-page document explains why he sided with plaintiffs Clark & Sullivan.

The construction firm sued to have work at Lakeview Commons stopped under the belief the bid was unfairly awarded to Reeve-Knight Construction.

No one is smiling about Lakeview Commons today like ex-City Manager Dave Jinkens, center, and Councilmembers Bruce Grego and Kathay Lovell were in August. Photo/Kathryn Reed

No one is smiling about Lakeview Commons today like ex-City Manager Dave Jinkens, center, and Councilmembers Bruce Grego and Kathay Lovell were in August. Photo/Kathryn Reed

The court document is a blow-by-blow recount of how city staff practically held Reeve-Knight’s hand to get the documents in proper order. That isn’t allowed. Despite much of this coming out during two summer City Council meetings, all but Councilman Jerry Birdwell agreed to go forward with awarding RKC the bid.

The judge’s decision says, “The city acted arbitrarily and capriciously and abused its discretion by accepting a bid that was non-responsive on its face and that material and substantially deviated from the invitation for bids and bid documents. The city further abused its discretion by allowing RKC to revise its bid after the bids were opened; by assisting RKC in correcting the bid irregularity; by providing an opportunity for RKC to withdraw its bid without penalty; by designating specialty items after bid opening; and, by waiving a material element of the bid and awarding the contract to RKC.”

The court points out how allowing the contractor to change its bid violates Public Contract Code.

Now the city is essentially at square one, with the fall building season having been wasted. The original plan was for the foundation of the boathouse to be completed by Oct. 15 and framing to be done this winter. Construction was to be done in July. No date has been given for when Lakeview Commons might be something other than an unusable fenced off area.

RKC will only get paid for the cost of work done, no profit, per state law.

The judge’s decision can be appealed within 60 days of being issued.

The city’s options per court order are to either award the bid to Clark & Sullivan or start the bid process all over.

“From our perspective there is no urgency to the matter,” City Attorney Patrick Enright said when asked if the sitting council will make the decision or if the one sworn in Dec. 14 will pick up the pieces.

The current council meets again Nov. 16 and has a special meeting set for Nov. 30. (The latter is to approve the reconfiguration of Redevelopment Area 2 per the city and county’s negotiated deal.) Lakeview could be on one of those agendas.

Enright would not commit to which council is definitively going to handle the Lakeview mess.

With construction not able to resume until May per Tahoe Regional Planning Agency rules of not being able to move dirt in the basin between Oct. 15 and May 1, the bid process could resume after the start of the year on the multi-million dollar project to transform El Dorado Beach from a rundown area to a showcase for the city.

Click on decision to read the judge’s response.

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Comments (8)
  1. Bob says - Posted: November 2, 2010

    Dear Tony O’Rourke: I was looking to condemn council members but after reading the judges response (thanks for providing the link Kae) it is clear City Attorney Enright is to blame for the mess we have at Lakeview Commons. A reprimand of the highest order should now be directed in Mr. Enright’s direction. I hope you look into this matter with a stern eye and gets to the bottom of Enright’s reasoning for waiving the subcontractor percentage rate. Being an attorney, Mr. Enright should know better. The city of South Lake Tahoe deserves an answer for why we need to drive by this mess on HWY 50 on a daily basis. We have all had enough of it. Was there favoritism on Enright’s part? Was he playing to council? Did he have friends over at RKC? Mr. O’Rourke I look to you to make sure this kind of foolishness stops immediately. The irregularities, unprofessionalism and plain selfishness of the people in charge of our community is killing South Lake Tahoe. Please stop it from happening again and tell us why Mr. Enright did this to our community.

  2. Steve says - Posted: November 2, 2010

    South Lake Tahoe city officials cannot be trusted to impartially and fairly sort out this mess they created. It is appropriate that heads should roll for yet another costly City debacle that will directly result in unnecessary delays and probable loss and further waste of taxpayer dollars.

    Message to El Dorado County Grand Jury: Please return to South Lake Tahoe immediately, your work here is not yet finished. And while you’re here, you might as well also dive in to the South Tahoe Area Transit Authority bus system fiasco.

    Citizens and taxpayers deserve answers.

  3. Tahoe Freedom Fighter says - Posted: November 2, 2010

    Many thanks to Judge Steve Bailey for his prompt and impartial ruling and analysis. The West slopes loss is definitely South Lake Tahoes gain.
    Cudos Judge Bailey, good job.

  4. Diana Hamilton says - Posted: November 3, 2010

    Is there a way to lessen the visual blight of that orange fencing until construction can proceed?

  5. grannylou says - Posted: November 3, 2010

    I agree with EVERYTHING that Bob (above) has said. This is what we hire our city attorneys for and yet another folly……..

    …OR maybe our other city staff need more training?????

  6. Alex Campbell says - Posted: November 3, 2010

    The Machine screws keep playing the game. Ye old contractor Hal Cole of course, had no idea that there is a Public Contract code. Were his contracts No Bid like Halliburton Now Tom Davis another old tarnished but not a rusty screw is back in the machine. Mr.Bob manup with your last name. City Attorneys have to play the game.If not they get the shaft.
    Just like Sam Neasham the most hated El Dorado County counsel.After his contract was up swing vote John dumped him. Dinner anyone. (going back, Jack Sweeney played Tap Tap on the shoulder of Sam. Only to make apoint.

  7. foible says - Posted: November 3, 2010

    Hey Alex ,Davis said you’er in Diego?
    You want come back finish the job?

  8. foible says - Posted: November 3, 2010

    Diana Hamilton ,you could take the fence down at State-line Hole, board up the other HOLE.How’s that sound?
    DIANA, WE CAN’T AFFORD TO DO BOTH HOLES AT THE SAME TIME.
    LOL…CATCHY PHRASE ?

    T.R.P.A. could make a exception at least let them use green,after all they do write the EPA,Gods bible on colors and paint choices here.
    Hard to believe.
    There’s not one at this C.A.T. election that say a word to get it fixed either.
    Cat…….stands for 2 new council members and the retread one, Tom.