Description of problem: See bug 1313276 comment 16. The function fn_db_is_table_exists was added in 3.5.2. We should conflict with < 3.5.2. Didn't verify upgrade from later versions. 3.5.6 works.
AFAICT downstream RHEVM 3.5.0 is also affected. Didn't check later versions.
Lev, please push a change for 3.6.5 conflicting with <= 3.5.5 (3.5.6 is latest oVirt)
Verified in rhevm-3.5.1-0.4.el6ev.noarch (build 3.6.5-1)