PROPOSAL:

Execute Contracts for Employee Relations Litigation and Negotiation Services

SYNOPSIS:

The RFP for Employee Relations Litigation and/or Negotiation Services was released on March 18, 1997, and reissued on July 11, 1997, to attract responses from a larger number of law firms. The evaluation of 20 proposals has been completed and the evaluation panel recommended that contracts be awarded to three firms: Gutierrez & Preciado to perform litigation services ($50,000); Best, Best & Krieger to perform negotiation services ($20,000); and Goldstein, Kennedy & Petito regarding in-progress employee relations matters and cases relating to matters in which they have previous experience ($30,000). The total amount for the three contracts shall not exceed $250,000 per year, and funding has been included in the FY 1997-98 budget.

COMMITTEE:

Administrative, October 24, 1997, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman of the Board to execute a contract with Gutierrez & Preciado to perform litigation services for AQMD, upon authorization of the General Counsel, relating to new cases or matters involving employee relations, for the period of November 14, 1997 through June 30, 2000. The contract amounts shall not exceed $50,000 for FY 1997-98, $50,000 for FY 1998-99, and $50,000 for FY 1999-2000.

2. Authorize the Chairman of the Board to execute a contract with Best, Best & Krieger to perform specific litigation services based on unique expertise and represent AQMD as legal counsel during labor contract negotiations, to advise AQMD on the administration and interpretation of Memoranda of Understanding with the employee bargaining units, and to attend Labor-Management Committee meetings, meet-and-confer sessions, and grievance and administrative hearings, for the period of November 14, 1997 through June 30, 2000. The contract amounts shall not exceed $20,000 for FY 1997-98, $75,000 for FY 1998-99, and $50,000 for FY 1999-2000.

3. Authorize the Chairman of the Board to execute a contract with Goldstein, Kennedy & Petito limited to performing litigation services, upon authorization of the General Counsel, for only in-progress matters involving employee relations and for the period of November 14, 1997 through June 30, 1998. The contract amount shall not exceed $30,000 for FY 1997-98.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

On March 18, 1997, AQMD released RFP 9697-39 for Employee Relations Litigation and/or Negotiation Services. Twenty proposals were received by the deadline for submittal of April 18, 1997. At the Administrative Committee meeting on May 23, 1997, staff submitted an evaluation of the proposals and recommended awarding a contract to Gutierrez & Preciado for litigation services, and recommended either Best, Best & Krieger or Goldstein, Kennedy & Petito to perform negotiation services. The Administrative Committee expressed concern that only three law firms were deemed technically qualified through the proposal evaluation process and directed staff to reissue the RFP using an enhanced outreach effort to attract responses from a larger number of qualified firms.

As the former contract for employee relations litigation and negotiation services expired on June 30, 1997, the Board authorized the Chairman to execute an interim contract with Gutierrez & Preciado to represent AQMD in any new employee relations matters which may arise from July 11, 1997 through November 14, 1997. The Board also authorized an extension of a contract with Goldstein, Kennedy & Petito to represent AQMD regarding in-progress matters involving employee relations and cases relating to matters in which they had previous experience, for the period of July 11, 1997 through November 14, 1997.

Outreach

In accordance with AQMD’s consulting and contracting policies, a public notice advertising the reissued RFP and inviting bids was published in the following publications:

1.	Black Voice News	8	Korea Central Daily	15.	Philippine News
2.	Chinese Daily News	9.	La Opinion	16.	Precinct Reporter
3.	Eastern Group Publications	10.	La Voz	17.	Rafu Shimpo
4.	El Chicano	11.	Los Angeles Sentinel	18.	Riverside Press Enterprise
5.	The Excelsior	12.	Los Angeles Times	19.	San Bernardino Sun
6.	Inland Empire Hispanic News	13.	M/W/DVBE Source	20.	State of California
7.	Inland Valley Daily Bulletin	14.	Orange County Register		Contracts Register

Additionally, potential bidders were identified using AQMD’s electronic listing of certified minority vendors and AQMD Purchasing’s mailing list. Copies of the RFPs were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business & Job Opportunities" icon]; and on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. Further, General Counsel attorney staff’s participation was solicited for outreach efforts directed towards law professional meetings and association lunches to help advertise the RFP and encourage submission of proposals. Copies of the RFP were mailed to over 200 law firms and sole practitioners.

Bid Evaluation

Twenty proposals were received in response to the reissued RFP by the deadline for submittal of 5 p.m. on August 22, 1997. Of the twenty bids, none were from disabled veteran owned business enterprises, three were from women-owned business enterprises, nine were from certified minority owned businesses (five Hispanic, three African-American, and one Asian), and none were from non-certified minority-owned business enterprises. Panel interviews were held on September 19, 1997, for the eight law firms scoring a minimum of 70 points in Step 1 of the two-step proposal evaluation process. Attachment A reflects a listing of the proposals received and the final ratings and proposed hourly costs for the eight law firms interviewed by the panel.

Based on information gathered from the proposals and during the panel interviews, the members of the panel recommended that the Board approve using the services of three law firms consisting of (a) Gutierrez & Preciado; (b) Best, Best & Krieger; and (c) Goldstein, Kennedy & Petito, to represent AQMD in employee relations litigation and negotiation matters, for the period of November 14, 1997 through June 30, 2000. Gutierrez & Preciado had the lowest cost bid and was ranked first, and the panel members recommended that the Board execute a contract with them for litigation services related to new cases or matters involving employee relations.

The panel members also recommended that Best, Best & Krieger, due to its superior experience in both litigation and negotiation services for a wide variety of public sector employers, be awarded a contract to serve as legal counsel during labor contract negotiations, Labor-Management Committee meetings, meet-and-confer sessions, and grievance and administrative hearings. Best, Best & Krieger ranked #2 in the proposal evaluation. Due to their unique expertise and experience in employee relations litigation, the legal services of Best, Best & Krieger was also recommended by the panel members to be considered for specific employee relations litigation matters that may arise in the future.

In addition, staff is recommending a small contract for this fiscal year with Goldstein, Kennedy & Petito. This firm has handled labor relations and employee litigation over a number of years. They ranked seventh in this proposal evaluation process. However, staff recommends this firm be retained to handle the small amount of ongoing litigation in which they have already been substantially involved, such that it would not be cost-effective to bring in another firm at this point. This firm would be retained to wrap up three existing cases and perform a small amount of related work. The District’s Contracting and Purchasing Policy, Section VII (C)(3), authorizes the award of a contract to other than the lowest bidder if it is determined that another bidder would provide the best value to the District. Due to the high cost of transferring these few cases to another lawyer, the best value would be provided by entering a small contract with Goldstein, Kennedy & Petito. This recommendation provides a cost-effective transition process moving all new cases to Gutierrez & Preciado or Best, Best & Krieger, while resolving existing employee relations matters without incurring a substantial amount of time and cost.

Panel Composition

The evaluation panel consisted of B. J. Kirwan of Latham & Watkins; James Redmond of AQMD, Administrative and Human Resources; Kurt Wiese of AQMD, District Counsel; and William Wong of AQMD, District Counsel. Of these 4 panelists, one is a woman and three are men. Additionally, three of the panelists are Caucasian and one is Asian-Pacific.

Proposition 209 Compliance

On August 28, 1997, Proposition 209 went into effect when a stay of enforcement was lifted. Proposition 209 prohibits granting of preferential treatment based upon race, ethnicity, color, sex or national origin in the operation of public employment, public education, or public contracting. On October 10, 1997, the District’s Board adopted an Interim Contracting & Purchasing Policy and Consultant Selection Policy. The Interim Policy eliminates the granting of preference points based upon race or gender and only requires a good faith effort to subcontract with minority and women-owned businesses if subcontracts are to be let, when contracts are funded in whole or in part by EPA grant funds. Proposition 209 does not prohibit actions necessary to maintain eligibility for federal funding. In addition, in compliance with federal requirements, local preference points are allowed only if the contract does not involve federal funding. This contract award will be based on the interim policy. The remainder of the District’s Contracting and Purchasing Policy and Consultant Selection Policy remains unchanged.

Resource Impacts

An amount not to exceed $250,000 has been budgeted for employee relations litigation and negotiation services for FY 1997-98. Funding to cover the contractual cost for future years will be requested as part of the annual budget process.

Attachments

Evaluation of Proposals for RFP 9697-39 (Reissued)

ATTACHMENT A

EVALUATION OF PROPOSALS FOR RFP #9697-39 (Reissued)

* The maximum number of points possible in Step 1 and 2 of the evaluation process is 85. A minimum of 70 points in Step 1 of the evaluation process is necessary to be included in Step 2.

** Melanie Lomax and Associates were unable to attend the panel interviews on September 19, 1997.

*** Law firms which did not score a minimum of 70 points in Step 1 of the proposal evaluation process are not shown on this attachment.

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