BOARD MEETING DATE: February 4, 2005
AGENDA NO. 6

Amend Employee Relations Litigation and Negotiation Services Contract and Appropriate Funds from Undesignated Fund Balance

SYNOPSIS:

On July 11, 2003, AQMD entered into a three-year contract with Best Best & Krieger to perform employee relations litigation and negotiation services for an amount not to exceed $50,000 per year. Unanticipated expenses resulting from the litigation of an ongoing case require amending the contract to add $100,000 for Fiscal Year 2004-05. The bulk of the costs for this case in excess of $50,000 will be reimbursed to AQMD through its employer’s liability insurance coverage.

COMMITTEE:

Administrative, January 14, 2005. Less than a quorum was present for the discussion of this item; those Committee members present communicated their concurrence.

RECOMMENDED ACTION:

1. Authorize the Chairman to amend the existing contract with Best Best & Krieger for employee relations litigation and negotiation services to increase the contract amount for FY 2004-05 by $100,000.
    
2. Appropriate $100,000 from the Undesignated Fund Balance to the FY 2004-05 Budget, District General, Professional and Special Services account.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On June 6, 2003, the Board approved a prequalified list of five law firms to provide employee relations litigation and negotiation services for the period July 1, 2003, through June 30, 2006. An existing three-year contract with one of these firms, Best Best & Krieger, is limited to $50,000 per year. The firm currently represents AQMD in a case, ongoing since 2001, that will exceed the annual contract limit. To provide sufficient funding to ensure an appropriate defense of this case, staff recommends amending the contract to increase the maximum amount payable in FY 2004-05 from $50,000 to $150,000.

Once costs for this case exceed the deductible amount of $50,000, the agency’s employer’s liability insurance will cover the remaining costs as consistent with the insurance policy. Insurance reimbursements will be designated to the General Fund.

Proposal

Staff recommends the Board authorize an additional amount of up to $100,000 for the existing contract with Best Best & Krieger, bringing the total amount of the contract for FY 2004-05 to $150,000.

Resource Impacts

To fund the recommended contract increase, staff requests appropriation of $100,000 from the Undesignated Fund Balance to District General, Professional and Special Services account.

Attachments

None

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