Agenda packet — South Lake Tahoe City Council, January 10, 2023 (part 2 of 2)

treatment to a particular customer (e.g., consultation on a plan for undergrounding “outside the CPUC Rule 20 process”).

You ask what “assurances” the City has that Liberty will support the City’s renewable energy goals as a utility service partner and service provider in the absence of an MOU. Liberty responds as follows:
 If by “assurance,” you mean a verbal or written commitment, you have the public statement in my letter. You also have a record of the multiple meetings, phone calls, informational presentations, and project consultations Liberty has provided during the past year. For example, in May we met with the City’s Sustainability Coordinator to discuss energy efficiency, transportation electrification, solar incentives, access and functional needs planning, and other issues. Throughout the year, we had numerous meetings and consultations with City staff to discuss topics including managed EV charging, RPS procurement, Rule 24, Resiliency as a service (RaaS), the Community Resource Center, and solar project questions. Last month we also met with and presented to the South Lake Tahoe 100% Renewable Committee. Liberty stands ready to discuss and provide input on proposals or projects you wish to explore. But there are limits to the kind of help Liberty may provide. Because Liberty is obligated to provide nondiscriminatory service to all customers, we cannot favor one city over another or provide technical consultancy services that go beyond our utility role. Because Liberty is regulated by the California Public Utilities Commission (CPUC) and under an obligation to keep rates affordable for our customers, we have constraints on what projects we can undertake to help individual customers or local governments advance their aspirational 100% renewable goals. All customers should not be expected to subsidize projects that benefit only one City.
 If by “assurance” you mean a legal commitment, we refer you to the California Public Utilities Code, our binding utility tariffs and rules, and our obligation to comply with applicable decisions of the CPUC. For example, under Decision 19-11-017, Liberty has an obligation to offer incentives and support for EV charging stations at schools and parks. Under Rule 21, Liberty has an obligation to interconnect renewable energy facilities. Under Rule 24, Liberty has an obligation to provide the utility-side infrastructure needed for customers to install EV charging stations on their sites.

The City’s desire for 100% local renewable electricity
We are familiar with Resolution 2021-104, which was attached to your letter, and have discussed the Resolution with City staff on more than one occasion. Your letter criticizes Liberty for providing renewable energy from projects that are not “providing energy to South Lake Tahoe directly.” You disparage using renewable energy credits (RECs) for compliance with regulatory 285
Joseph D. Irvin
City Manager
City of South Lake Tahoe
December 22, 2022

Page 3 ends

obligations. And you criticize Liberty for developing utility-scale solar generation resources that are not sited in the Lake Tahoe area.

We have heard these concerns before in our meetings with City staff. We have tried to explain the external factors affecting our system operations and procurement of renewable energy at a reasonable cost, including the CPUC’s encouragement for Liberty to use RECs as a lower-cost approach to RPS compliance. We will not reiterate past discussions at length here but will briefly address specific points raised in your letter.

Your statement that Liberty is dependent on transmission from NV Energy is correct. This has been the case for service throughout the service territory for decades and pre-dates Liberty’s acquisition from Sierra Pacific Power Company. It is true that an NV Energy substation outage in November resulted in an outage on Liberty’s system. However, Liberty’s “dependence” on the NV Energy transmission grid did not cause the outage. All utilities are interconnected with the grid, and customers may experience outages at the local distribution level if an incident affects the interconnected high voltage transmission system.

You are correct that Liberty’s 2022 IRP does not include a plan for “local renewable resource development.” However, as discussed previously with staff, the most economical renewable projects that Liberty has advanced are the solar facilities located in Nevada, which have much better solar conditions, much lower land acquisition costs, significantly fewer hours of cloud cover, no exposure to potential significant snow loading, and lower overall development costs.

Because such investments are made to advance a cost-effective portfolio of energy and capacity for customers wherever located in Liberty’s service territory, Liberty is resistant to proposing suboptimal project sites or projects that are likely to face opposition by the CPUC’s consumer advocates or other customer intervenors.

We note that Resolution 2021-104 was based on the 24/7 Carbon-free Energy Compact and on 24/7 100% goals set by the City of Des Moines, Iowa, Google, and the Sacramento Municipal Utility District. The one notable difference between these resolutions and commitments and the City’s is that you have added the condition that all electricity must be “connected to the local distribution grid.” If rigidly applied, this condition will exclude consideration of renewable resources that are eligible under California RPS rules (and that would be counted under the 24/7 100% commitments that you cite from other jurisdictions) and will prevent you from formulating a realistic and holistic plan for reaching your goals.

To be clear, we will continue to provide support for the City’s efforts to plan for and develop generation and storage projects that are connected to the local distribution system. That is part of our function and our mission. But we encourage you to ground your planning process on an understanding of the operational and regulatory constraints specific to the City’s location and situation.
286
Joseph D. Irvin
City Manager
City of South Lake Tahoe
December 22, 2022

Page 4 ends

It is not our place to address the questions in your letter about whether and under what conditions the CPUC may amend Liberty’s IRP or make City-specific findings in the IRP proceeding. The City has the right as a customer and as an interested public entity to intervene and participate in the IRP or any other CPUC proceeding affecting its interests and to advocate for changes in the IRP rules or Liberty’s IRP. Recognizing your interest in Liberty’s IRP, we would be happy to schedule a meeting with you to discuss it and any concerns the City may have regarding the vision it outlines.

Additional Questions
We provide answers below to your additional questions. We can discuss any of these in more detail and schedule a follow-up meeting to address these and any other concerns or questions you may have.

1. Where do you see the common ground of the City’s 24/7 CFE resolution and Liberty’s plans and goals?
First, both the City and Liberty have responsibilities to protect and serve the public and, in Liberty’s case, all of its utility customers. We are both actively working to address the resiliency challenges associated with climate change and to bring additional renewable energy to serve homes and businesses in the City of South Lake Tahoe (and, in Liberty’s case, to all our customers). Our roles and responsibilities are different, but we share these overarching objectives.

We see common ground between Liberty’s plans and goals for increased procurement of clean, renewable energy, transportation electrification, and system decarbonization and the City’s goals as reflected in the 24/7 Carbon-free Energy Compact and the South Tahoe Zero Energy District Plan (STZEDP).

We see specific areas of opportunity in the STZEDP that could align between the City’s goals and our own: electrification of transportation, heating and other sectors, energy efficiency, energy management systems, time-of-use strategies, DERs, storage, and microgrids. We want to discuss these opportunities and help the City prioritize feasible actions. In particular, we see transportation electrification and energy efficiency investments as areas we are productively working on together today.

2. Do you believe it is technologically feasible for all electrical loads – current and future – to be met with electricity generated in places that are directly connected to Liberty’s South Lake Tahoe electrical grid? Solutions might potentially include suitable solar sites in Alpine, Mono, or Douglas counties, with new transmission from renewable generation facilities to the South Lake Tahoe distribution grid where needed. Other 287
Joseph D. Irvin
City Manager
City of South Lake Tahoe
December 22, 2022

Page 5 ends

solutions could include biomass energy, pumped hydro or solar-powered microgrids within the Tahoe Basin.

It may be theoretically possible for all South Lake Tahoe loads to be served most of the time by generation located in the area. However, we would underscore “theoretically” because a plan to essentially island the Tahoe Basin would not be realistic or attainable operationally or financially.

We understand that the City is considering all options for expanding clean energy resources locally. But we would encourage you to prioritize and focus discussions on actions that can realistically contribute to meeting the City’s goals between now and 2030. As recognized in principle 3 of the 24/7 Carbon Free Compact, “local procurement” may include purchasing clean energy on both the local and regional electricity grids. As acknowledged in Google’s “24/7 by 2030” whitepaper, working toward at-scale decarbonization involves recognizing local constraints (land, resources, infrastructure) that may require location-specific solutions. Some of the options listed above, such as pumped storage, do not seem realistic for the timeframe you are considering and are likely to face significant economic and environmental challenges.

Moreover, as a technical matter, Liberty does not currently own any transmission facilities, but rather its entire grid is distribution. Liberty does investigate potential wires investments to better integrate delivery of energy and capacity throughout the system. Still, to date we have not seen an economically feasible means of constructing transmission facilities sited near the California portion of Lake Tahoe.

3. Are there programs or tariffs that are available from other utilities in California that could help the City and partners achieve our energy goals, and provide additional resilience in the face of extreme weather events? Could we work together to advocate for access to these? Examples might be SGIP, RES-BCT, new incentives for electrification, or others.

It would be difficult for Liberty to determine precisely which programs or tariffs implemented by other California utilities would best serve to enable the City achieve its goals and provide resilience. We have previously discussed with City staff why, to our best understanding, there are statutory constraints in the existing RES-BCT program that foreclose multi-county generation development. Moreover, as we have explained several times, because Liberty is not located in the California Independent System Operator (CAISO) and because NV Energy does not operate an open access wholesale market that would facilitate trading of imbalance energy, our existing supply arrangements with NV Energy require Liberty to balance its load and generation. The other large IOUs in California are not subject to these limitations, and many of the programs advanced by the CPUC are designed for the large IOUs’ circumstances, not those of much smaller utilities like Liberty.
288
Joseph D. Irvin
City Manager
City of South Lake Tahoe
December 22, 2022

Page 6 ends

Liberty is willing to continue this discussion and to look at the potential feasibility of other programs or tariffs that may be of interest to the City, but any such efforts must always be evaluated from the perspective of the interests of all customers in the territory.

4. In pursuit of our 24/7 carbon free electricity goal, we need data about our energy use 24 hours a day. When might Liberty work to install smart meters? Can we work together to advance this at City facilities? In the interim, would you be able to work with the City to provide relevant data to help us approximate our baseline? Liberty has a pending request in its 2022 General Rate Case (GRC) for authorization to deploy AMI. Chapter 13 of our GRC filing (A.21-05-017) describes in detail the need for AMI and the benefits that AMI will provide. Liberty has already initiated detailed planning and design for an AMI system and enhanced customer information access. Liberty plans to begin installing smart meters in Q2 2023 for residential and small/medium commercial customers, assuming the CPUC approves the settlement in a timely manner. The GRC settlement is still pending with the CPUC, so the roll-out date may be delayed.

The City may want to follow the GRC proceeding at the CPUC. The City may also want to monitor Rulemaking 22-11-013. This Order Initiating Rulemaking includes a good summary on pages 3-11 of the complex interaction between IRP and DER program requirements, legislative mandates, and cost-effectiveness standards that are reflected in our decision-making. The proceeding will also address data access issues that may be of interest to the City.

With respect to your request for data, Liberty can work with the City to provide relevant data to help it approximate baseline energy usage on a monthly basis for both City operated buildings and South Lake Tahoe as a whole, but because most of the accounts do not register interval data, the hourly data provided is an approximation. (See attached)

5. 24/7 is coming at a price premium no matter what. It could incentivize the development of energy resources at the time/place that would benefit the grid and build resilience.

Would Liberty issuing the 24/7 certificates create the revenue stream necessary? Can we work together to make the market conditions more beneficial? We generally agree that projects benefiting the grid and contributing to resilience should be prioritized. Liberty does not issue “24/7 certificates,” and we are not sure what you mean by this term. If your reference to “market conditions” refers to the competitive market for third-party project development and project finance, we are open to discussing this topic, but it is unclear how the City can “make the market conditions more beneficial.” One development that seems likely to influence the scope and pace of project development in California overall is the implementation of the Infrastructure Investment and Jobs Act and the Inflation Reduction Act of 2022, which provide funding for incentives and loans for a range of new clean energy and transportation electrification projects.
289
Joseph D. Irvin
City Manager
City of South Lake Tahoe
December 22, 2022

Page 7 ends

6. Given that electrical demand will increase (with more electric vehicles and household appliances) how can we work together to build projects that provide capacity or shift loads?
The CPUC is actively focused on developing new policies and rate design changes addressing anticipated increases in demand for electricity from transportation and building electrification.

For example, in Rulemaking 22-07-005, the CPUC is examining how to “expand the use of demand flexibility beyond early adopters” in order to use rate signals and DR options for the benefit of grid management. The unique load patterns in Liberty’s service area (which includes the City) may lead to flexible rate solutions that are different from those of other utilities. The CPUC has specifically ruled that development of “demand flexibility rates” for small and multijurisdictional electric utilities will occur in Phase 2 of the proceeding. However, the development of demand-response programs for Liberty can only occur after the AMI rollout and may be dependent on other regulatory changes in the balancing authority area operated by NV Energy.

With respect to the City’s interest in building new projects that provide capacity or shift loads, you may want to engage with experts who can help you explore the economics of your own energy efficiency or self-generation/storage investments. We are always available to discuss and provide feedback on feasibility and project design. But, as previously noted, under our supply arrangements with NV Energy, Liberty must balance its load and resources and cannot export imbalance power to NV Energy. It is possible this may change in the future, particularly if NV Energy eliminates some of its transmission constraints or joins a regional market. But presently, these are areas of very high uncertainty that may impede the kind of generation development the City wants to pursue.

Next steps
Liberty takes issue with some of your statements and assumptions regarding our procurement decisions and intentions. We are also concerned that a singular focus on matching electricity consumption in the City 24/7 with “renewable energy sources connected to the local distribution grid” may not be the most effective route to achieving the City’s decarbonization goals and is unlikely to be sufficiently cost-effective for Liberty to obtain necessary CPUC approval.

However, we do wholeheartedly share the City’s interest in making rapid progress toward addressing the causes and impacts of climate change in the local area and in looking for opportunities to expand energy efficiency, transportation electrification, demand response, and cost-effective distributed generation and storage projects to benefit our entire service territory, including the citizens of South Lake Tahoe. We have identified some specific suggestions above in response to your questions. And, of course, as your electric utility, we will continue to provide technical support and information on our tariffed services as needed to support City projects. 290
Joseph D. Irvin
City Manager
City of South Lake Tahoe
December 22, 2022

Page 8 ends

We welcome any suggestions you may have for moving forward.

Sincerely,
/s/ Sharon Yang
Sharon Yang
Director of Legal Services
Attachments: Usage data for City and Other accounts
cc: Heather Stroud, City Attorney ([email protected]) Cristi Creegan, Mayor ([email protected])
Cody Bass, Mayor Pro Tem ([email protected])
John Friedrich, Council Member ([email protected]) Tamara Wallace, Council Member ([email protected])
Scott Robins, Council Member ([email protected])
291
8CD06 Notice of PH - Liberty (second print_sb - Page 2 of 2 292
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: January 10, 2023
Agenda Item #: 13
Agenda Item: Ordinance Amending South Lake Tahoe City Code to Authorize Prequalification and Design-Build Contracts (First Reading)
Executive Summary: The proposed Ordinance would amend the City Code to create greater flexibility for procurement of public works projects. The Ordinance would allow prequalification of contractors prior to issuing an invitation to bid and would allow design-build procurement of City buildings and parks and recreation facilities over $1 million, consistent with state law.

Requested Action / Suggested Motions: Pass a Motion to hold a first reading (by title only) of an Ordinance Amending South Lake Tahoe City Code Title 3, Chapter 3.45, Article II (Public Contracts and Uniform Public Construction Cost Accounting Act) to Authorize Prequalification and Design-Build Contracts and refer to second reading and adoption to the January 24, 2023 meeting.

Responsible Staff Member: Heather Stroud, City Attorney Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Attachments:
01 - Staff Report.docx
02 - Ordinance.docx
03 - Ordinance Redline.pdf
293
Council Agenda Report- January 10, 2023 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: January 10, 2023
Title: Ordinance Amending South Lake Tahoe City Code to Authorize Prequalification and Design-Build Contracts
Location: Citywide
Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Background:

State law authorizes general law cities to prequalify bidders for public works projects (Cal. Pub.

Contract Code § 20101), and to use the design-build method of project delivery for certain types of public works projects, namely contracts to design and construct buildings and parks and recreation facilities over $1 million (Cal. Pub. Contract Code §§ 22160 et seq.).

Issue and Discussion:

Currently, the City does not have a process to prequalify bidders and the South Lake Tahoe City Code requires public works projects to be awarded based on the lowest responsible bidder. The City desires to update its public works procurement code provisions to allow for prequalification of bidders and/or design-build delivery when appropriate and in the City’s best interests on particular future projects.

Pre-qualification may be done either on a quarterly basis for all City public works projects, or for a particular project. For example, the City may want to consider pre-qualifying bidders for larger projects to increase the likelihood that serious and qualified bidders will submit a bid. Staff intends to use the standard pre-qualification forms issued by the Department of Industrial Relations (DIR), which include information such as contractor license and DIR public works contractor registration numbers, financial information, any prior bankruptcy, prior performance and payment bond information including whether a surety has been called to complete a project, bonding capacity for current project, Labor Code compliance history, criminal background, prior civil litigation and/or administrative penalties, occupational health and safety compliance, prevailing wage and apprenticeship compliance, and project references. Contractors are pre-qualified if they have a total score above a certain level on the questionnaire form. Contractors who are determined to be disqualified have a right to appeal that determination to the public works director before bids are submitted.

Design-build contracts combine professional design services and construction services into a single contract with the owner. There are potential benefits from using design-build delivery 294
Council Agenda Report- January 10, 2023 Page 2 of 2
instead of the traditional design-bid-build for certain projects. These benefits may include greater flexibility in contract award, as design-build contracts may be awarded on a best value basis instead of to the lowest responsible bidder. Design-build contracts allow for a single point of accountability to avoid finger-pointing between the designer and the constructor when there are issues during construction. Design-build projects may result in fewer change orders and faster project completion. Under the authorizing statute, general law cities may use design-build delivery for buildings and parks and recreation facilities with a contract value over $1 million, through the sunset date of the statute on January 1, 2025. The ordinance is drafted so that if the Legislature extends the sunset date, our ordinance will automatically extend the ability to use design-build procurement through the extended sunset date.

To use design-build procurement, the City is required by statute to develop guidelines for a “standard organizational conflict of interest policy,” which has been incorporated into the proposed ordinance via the prohibition against any architectural firm, engineering firm, specialty consultant, or individual assisting in the development of plans, designs, performance standards, or the request for proposals from submitting a proposal as part of a design-build entity.

A two-step procurement process is required, with a prequalification process followed by a request for proposals issued to design-build entities who have prequalified.

Financial Implications:

There are no specific financial implications from adopting this Ordinance. It is possible that taking advantage of prequalification and/or design-build procurement may save money on specific projects in the future.

Environmental Considerations:

Adoption of the proposed Ordinance is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) because the Ordinance is general policy and procedure making related to the City’s procurement of public works projects.

Policy Implications:

The proposed Ordinance would provide greater flexibility to tailor public works project procurement to meet the City’s needs.
295
Ordinance 2023-XXX January 10, 2023 Page 1 of 6
Ordinance 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
January 24, 2023
An Ordinance Amending South Lake Tahoe City Code Title 3, Chapter 3.45, Article II (Public Contracts and Uniform Public Construction Cost Accounting Act) to Authorize Prequalification and Design-Build Contracts

FINDINGS
A. State law authorizes general law cities to prequalify bidders for public works projects (Cal. Pub.

B. The City desires to update its public works procurement code provisions to allow for prequalification of bidders and/or design-build delivery when appropriate and in the City’s best interests on particular future projects.

Now, Therefore, the City Council of City of South Lake Tahoe does ordain as follows:

SECTION 1. South Lake Tahoe City Code Title 3, Chapter 3.45, Article II is hereby amended to read as follows:

Article II. Public Contracts and the Uniform Public Construction Cost Accounting Act

3.45.100 Requirements for public projects.

Awarding contracts for public projects shall be in accordance with the Uniform Public Construction Cost Accounting Act (the “Act”) (Public Contract Code Section 22000 et seq. or any successor provision thereto) for all public projects except design-build projects under SLTCC 3.45.165 and those in which grant funds require alternate bidding procedures.

3.45.105 Prequalification.

A. The city may require each prospective bidder for a contract to submit a standardized questionnaire and financial statement in the form specified by the director of public works.

B. The city may establish a process for prequalifying prospective bidders on a quarterly basis, and a prequalification pursuant to this process shall be valid for one calendar 296
Ordinance 2023-XXX January 10, 2023 Page 2 of 6
year following the date of initial prequalification. The director of public works is authorized to establish such a quarterly prequalification process.

C. A prospective bidder may appeal its prequalification rating for a contract to the director of public works in accordance with this subsection and procedures consistent with this section issued by the director of public works.

1. Upon request of the prospective bidder, the director of public works shall provide notification to the prospective bidder in writing of the basis for the prospective bidder’s disqualification and any supporting evidence that has been received from others or adduced as a result of investigation by the city.

2. Prior to the closing time for receipt of bids, the prospective bidder shall provide to the director of public works in writing of any rebuttal evidence as to why the prospective bidder should be found qualified.

3. If the prospective bidder does not avail itself of this process, the proposed prequalification rating may be adopted without further proceedings.

3.45.110 Director of public works authority.

A. Public project contracts of $60,000 or less may be executed by the director of public works or his or her designee by force account, negotiated contract, or purchase order. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Public project contracts of $200,000 or less may be executed by the director of public works or his or her designee in accordance with the provisions of this article. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

3.45.120 Formal competitive bidding.

Public projects of greater than $200,000 shall be bid in accordance with the procedures set forth in Public Contract Code Section 22037 et seq. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

3.45.130 Informal bidding.

A. Monetary Limit. Public contracts of $200,000 or less may be let to contract by informal procedures as set forth in this section. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Contractors List. The city shall maintain a contractors list and contractors shall be selected to perform public projects in accordance with the provisions of Public Contract Code Section 22034.

C. Notice Inviting Informal Bids. Not less than 10 calendar days before bids are due, the city will mail notices inviting informal bids to all contractors on the contractors list and/or all trade journals specified in Public Contract Code Section 22034(b).
297
Ordinance 2023-XXX January 10, 2023 Page 3 of 6
a. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission. b. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
c. The notice inviting informal bids shall include specifications that describe the public project with sufficient particularity to allow for competitive bidding and evaluation. The specifications shall also describe the functions and performance that are required.

3.45.140 Waiver of irregularities and rejection of bids.

A. At its discretion, the city may waive any irregularity in any bid received and award the contract.

B. At its discretion, the city may reject all bids presented and may readvertise the project.

C. At its discretion, the city may abandon the project.

3.45.150 Lowest responsible bidder.

Contracts for public projects shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses. In determining the lowest responsible bidder, the following factors may be considered in addition to price:

A. The ability, capacity and skill of the bidder to perform the contract or provide the service required; B. The character, integrity, reputation, judgment, experience, efficiency and performance demonstrated in previous contracts or services for the city; C. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services;
D. The ability of the bidder to provide future maintenance for service for the public project.

3.45.160 Prohibition against splitting projects.

It shall be unlawful to split or separate any public project into smaller work orders or projects for the purpose of circumventing or evading the requirements of the Act.

3.45.165 Design-build contracts.

A. The purpose of this section is to authorize and provide guidelines for the award and use of design-build contracts, which means a public project procurement method in which both the design and construction of the project are procured from a single entity, in accordance with Public Contract Code Section 22160 et seq. This section shall be effective until January 1, 2025, unless the authorizing statute is extended, in which case this section shall be effective so long as Public Contract Code Section 22160 et seq. is in effect.

B. Design-build procurement may be used for public projects in excess of $1,000,000 consisting of the construction of a building or buildings and improvements directly 298
Ordinance 2023-XXX January 10, 2023 Page 4 of 6
related thereto and park and recreational facilities, and may not be used for construction of other infrastructure including, but not limited to, streets and highways.

C. The city shall prepare and issue a request for qualifications to prequalify or short-list the design-build entities. The request for qualifications shall include an identification of basic scope and needs of the project, the expected cost range, the methodology that will be used to evaluate proposals, the procedure for final selection of the design-build entity, technical design and construction expertise, acceptable safety record, and all other nonprice related factors. The city shall use a standard template request for statements of qualifications that shall require the information from design-build entities required by Public Contract Code Section 22164(b)(3).

Performance specifications should describe the quality of materials, equipment, and workmanship, preliminary plans or building layouts, and other information deemed necessary to adequately describe the city’s needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. The request for proposals shall also set forth the estimated price, methodology used to evaluate proposals, and whether the contract will be awarded on the basis of lowest responsible bidder or best value.

E. For design-build projects awarded on the basis of best value, proposals shall be evaluated on the basis of price, technical design and construction expertise, life-cycle costs over 15 or more years, and other factors within the city’s discretion that are included in the request for proposals. The city may request proposal revisions and hold discussions and negotiations with responsive proposers in accordance with procedures set forth in the request for proposals.

F. Any architectural firm, engineering firm, specialty consultant, or individual retained by the city to assist in the development of plans, designs, performance standards, or the request for proposals shall not be eligible to submit a proposal as a design-build entity or join a design-build team.

G. The design-build entity shall provide payment and performance bonds for the project in the form and amount required by the city, and issued by a California-admitted surety.

Final design plans shall be signed and sealed by a California-registered professional engineer or architect for the required disciplines. The design-build entity shall provide errors and omissions insurance for the design elements of the project.

H. The city may identify specific types of subcontractors that must be included in the statement of qualifications and proposal. All construction subcontractors identified in the proposal shall be afforded the protections of the Subletting and Subcontracting Fair 299
Ordinance 2023-XXX January 10, 2023 Page 5 of 6
Practices Act, Public Contract Code Section 4100 et seq. Alternatively, if construction subcontractors are not identified in the proposal, the design-build entity shall specify the specific types of subcontractors and construction trades, and following award, for all construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocated to construction work, the design-build entity shall provide public notice of availability of work to be subcontracted, including a fixed date and time on which qualification statements, bids, or proposals will be due, establish reasonable qualification criteria and standards, and award the subcontract on the basis of either best value or lowest responsible bidder.

3.45.170 Change orders.

The director of public works is delegated authority to approve, without seeking new bids, contract change orders to public projects up to the combined amounts authorized in this chapter so long as the combined amounts are within the approved project budget.

3.45.180 Emergencies.

In cases of emergency, when repair or replacements are necessary, the governing body may proceed to replace or repair any public facility by complying with Public Contract Code Section 22050.

SECTION 2. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 3. The City Council finds that adoption of the proposed Ordinance is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) because the Ordinance is general policy and procedure making related to the City’s procurement of public works projects.

SECTION 4. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 5. This Ordinance shall become effective thirty days after the date of its adoption.

Adopted by the City of South Lake Tahoe City Council on January 24, 2023 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Cristi Creegan, Mayor
300
Ordinance 2023-XXX January 10, 2023 Page 6 of 6
Attest:
________________________
Susan Blankenship, City Clerk
First Reading:

Published:

Second Reading:

Effective:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
301
South Lake Tahoe City Code Page 1/4
Article II. Public Contracts and the Uniform Public Construction Cost Accounting Act

3.45.100 Requirements for public projects.

3.45.105 Prequalification.

A. The city may require each prospective bidder for a contract to submit a standardized questionnaire and financial statement in the form specified by the director of public works.

B. The city may establish a process for prequalifying prospective bidders on a quarterly basis, and a prequalification pursuant to this process shall be valid for one calendar year following the date of initial prequalification. The director of public works is authorized to establish such a quarterly prequalification process.

3. If the prospective bidder does not avail itself of this process, the proposed prequalification rating may be adopted without further proceedings.

3.45.110 Director of public works authority.

3.45.120 Formal competitive bidding.

3.45.130 Informal bidding.

B. Contractors List. The city shall maintain a contractors list and contractors shall be selected to perform public projects in accordance with the provisions of Public Contract Code Section 22034.

C. Notice Inviting Informal Bids. Not less than 10 calendar days before bids are due, the city will mail notices inviting informal bids to all contractors on the contractors list and/or all trade journals specified in Public Contract Code Section 22034(b). a. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission. b. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
c. The notice inviting informal bids shall include specifications that describe the public project with sufficient particularity to allow for competitive bidding and evaluation. The specifications shall also describe the functions and performance that are required.

3.45.140 Waiver of irregularities and rejection of bids.

A. At its discretion, the city may waive any irregularity in any bid received and award the contract.

B. At its discretion, the city may reject all bids presented and may readvertise the project.

C. At its discretion, the city may abandon the project.

3.45.150 Lowest responsible bidder.

A. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
B. The character, integrity, reputation, judgment, experience, efficiency and performance demonstrated in previous contracts or services for the city; 303
South Lake Tahoe City Code Page 3/4
C. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services;
D. The ability of the bidder to provide future maintenance for service for the public project.

3.45.160 Prohibition against splitting projects.

It shall be unlawful to split or separate any public project into smaller work orders or projects for the purpose of circumventing or evading the requirements of the Act.

3.45.165 Design-build contracts.

B. Design-build procurement may be used for public projects in excess of $1,000,000 consisting of the construction of a building or buildings and improvements directly related thereto and park and recreational facilities, and may not be used for construction of other infrastructure including, but not limited to, streets and highways.

C. The city shall prepare and issue a request for qualifications to prequalify or short-list the design-build entities. The request for qualifications shall include an identification of basic scope and needs of the project, the expected cost range, the methodology that will be used to evaluate proposals, the procedure for final selection of the design-build entity, technical design and construction expertise, acceptable safety record, and all other non-price related factors. The city shall use a standard template request for statements of qualifications that shall require the information from design-build entities required by Public Contract Code Section 22164(b)(3).

D. The city shall issue a request for proposals to prequalified or short-listed design-build entities which sets forth the scope of the project that may include the size, type, and desired design character of the buildings and site and performance specifications. Performance specifications should describe the quality of materials, equipment, and workmanship, preliminary plans or building layouts, and other information deemed necessary to adequately describe the city’s needs.

The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. The request for proposals shall also set forth the estimated price, methodology used to evaluate proposals, and whether the contract will be awarded on the basis of lowest responsible bidder or best value.
304
South Lake Tahoe City Code Page 4/4
E. For design-build projects awarded on the basis of best value, proposals shall be evaluated on the basis of price, technical design and construction expertise, life-cycle costs over 15 or more years, and other factors within the city’s discretion that are included in the request for proposals. The city may request proposal revisions and hold discussions and negotiations with responsive proposers in accordance with procedures set forth in the request for proposals.

G. The design-build entity shall provide payment and performance bonds for the project in the form and amount required by the city, and issued by a California-admitted surety. Final design plans shall be signed and sealed by a California-registered professional engineer or architect for the required disciplines. The design-build entity shall provide errors and omissions insurance for the design elements of the project.

Alternatively, if construction subcontractors are not identified in the proposal, the design-build entity shall specify the specific types of subcontractors and construction trades, and following award, for all construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocated to construction work, the design-build entity shall provide public notice of availability of work to be subcontracted, including a fixed date and time on which qualification statements, bids, or proposals will be due, establish reasonable qualification criteria and standards, and award the subcontract on the basis of either best value or lowest responsible bidder.

3.45.170 Change orders.

3.45.180 Emergencies.

In cases of emergency, when repair or replacements are necessary, the governing body may proceed to replace or repair any public facility by complying with Public Contract Code Section 22050.
305
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: January 10, 2023
Agenda Item #: 14
Agenda Item: Agenda Planning Calendar
Executive Summary: The Agenda Planning Calendar is a projection of items comming before City Counci, for consideration.

Requested Action / Suggested Motions: A Councilmember may request that an item be placed on a future agenda. Upon the support of one (1) additional Council Member, direction shall be given to the City Manager to calendar the item for a convenient future agenda, but no sooner than the second meeting after the request was made, and/or modify the Agenda Planning Calendar as desired.

Responsible Staff Member: Joseph Irvin, City Manager
Responsible Staff Member: Joseph Irvin, City Manager (530) 542-6043 Reviewed and Approved By:

Susan Blankenship, City Clerk
Attachments:

APC - 01 05 2023.pdf
306
2023 Agenda Planning Calendar (Updated 1 5 2023)
Agenda Item Agenda Section
Jan 24, 5:30 p.m. City Attny Wellness Contract for Public Safety Liberty Franchise Agreement Ordinance (second reading)
City Code Update For Design/Build Contracts (second Reading) Consent City Manager Tesla EV Charging Station Contract NB
South Tahoe Zero Emissions District MOU
Micro Transit $150 K Contribution (existing services) NB Liberty Utilities Critical Resource Center MOU
Dev Services Event permitting guidelines
Finance Transfer of Unclaimed Check Funds Consent
Pub Works City Hall Lease
Jan 31, 9 a.m. City Manager Strategic Planning Retreat
Feb 14, 9 a.m. City Manager Comprehensive Energy Services Contract NB Clean Mobility Options Grant NB
Dev Services Housing Fund Revenue Feasibility Study UB
Pub Works EDC License Agreement for Stormwater Basin
Department
307
2023 Agenda Planning Calendar (Updated 1 5 2023)
RAISE Grant Application for Johnson Blvd. Complete Streets Consent Feb 28, 5:30 p.m. City Mngr Electric Vehicle Charging Contract NB TRPA Commodity Appraisal
Dev Serv 3900/3908 Lake Tahoe Blvd DDA
City/CTC land exchange agreement
Finance 2022-2023 Master Fee Schedule NB
FY 22-23 Quarterly Financial Status Report QE 12/31/2022 Consent Investment Portfolio Report as of December 31, 2022 Consent Ski Run Business Improvement District Annual Assessment NB March 7, 9 a.m. Joint City Council Planning Commission Ethics Training March 14, 9 a.m. City Mngr Approval of the 2023-2028 Strategic Plan Dev Services Bijou/Al Tahoe (Midtown) Area Plan consultant PSA NB Finance Mid-Year Budget
March 28, 5:30 p.mCity Clerk Protocol Update & Mayor 9 month rotation discussion NB Dev Services REACH Code options UB
General Plan Annual Report NB
308
2023 Agenda Planning Calendar (Updated 1 5 2023)
Finance 2022-2023 Master Fee Schedule Consent
April 4, 5:30 p.m. Pub Works CTC Prop 1 Grant Funding
Dev Services award permit tracking and public portal software PSA award NB Finance Ski Run Business Improvement District Annual Assessment PH May 2, 9 a.m. Finance City ACFR FYE 9/30/2022 Consent
May 16, 5:30 p.m.

June 6, 9 a.m.

June 20, 5:30 p.m.Dev Services TVAP Update
TCAP Update
City Attorney Parking Garage License Agreement with Verizon City Attny/PW Amendments to Small Cell Policy
City Clerk Records Management Policy (Updated)
Policy - Use of Personal Devices for City Business
City Manager SW Gas Prestentation Renewable Energy Goals Joint Council/TTD Board Mtg
Unscheduled/Pending
309
2023 Agenda Planning Calendar (Updated 1 5 2023)
Customer satisfaction survey(s)
SEED Solar Photovoltaic Project PPA
Dev Services Amendment to PLHA Grant Use
TCAP Amendment – Montreal
Plan Area Statement Update for Tourist Accommodation Uses Plan Area Statement 111 amendment
Single Room Occupancy Program Amendments
Finance Software Purchase
Fire Weed abatement/nusance Program - Defensable Space Policy Parks & Rec Parks Foundation MOU
Bijou Golf Course "Rock the Lake" Event and Review
Public Works Award Contract PD - Community Recource Center Renovations Broadband Master Plan Draft Recommendations
Bijou Creek Park Project Update
310

South Lake Tahoe City CouncilJanuary 10, 2023

South Lake Tahoe City Council
January 10, 2023