Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000379

 

MEETING DATE:

05/23/23

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

5

SUBMITTING Agency/Department:

County Counsel   (Approved)

Department contact person(s):

Leon J. Page (714) 834-3303 

 

 

Mark N. Sanchez (949) 252-5280

 

 

Subject:  Selection of Special Airport Counsel

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:   N/A

Annual Cost: FY 2023-24 - $620,000.00
FY 2024-25 - $620,000.00
FY 2025-26 - $310,000.00

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     280:100%

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         2/5/2013 #14, 9/12/2006 #60

 

RECOMMENDED ACTION(S):

 

 

1.

Select the law firms of Gatzke Dillon & Ballance LLP and Anderson & Kreiger LLP as the primary providers of special legal services to John Wayne Airport.

 

2.

Select the law firm of Kaplan Kirsch & Rockwell LLP as the secondary provider of special  legal services to John Wayne Airport.

 

3.

Authorize County Counsel to execute the standard Agreement for legal services with each of the selected firms.

 

 

 

 

SUMMARY:

 

Selection of Gatzke Dillon & Ballance LLP and Anderson & Kreiger LLP as primary special counsel, and Kaplan Kirsch & Rockwell LLP as secondary special counsel will provide John Wayne Airport with legal expertise in airport related legal, regulatory, and environmental issues.

 

 

 

BACKGROUND INFORMATION:

 

John Wayne Airport ("JWA" or "Airport") is one of the most highly regulated airports in the United States.  In addition to compliance with a wide range of federal and state law and regulation, the Airport is subject to a complex set of facility, operational, and curfew restrictions that stem from local ordinances as well as the settlement agreement the County entered into with the City of Newport Beach and other settling parties in 1985 ("1985 Settlement Agreement").

 

The Office of the County Counsel has contracted with various law firms for advice and litigation assistance on Airport matters.  Since approximately 1978, the firm of Gatzke Dillon & Ballance LLP ("Gatzke") has been one of the primary firms the County has contracted with in the areas of general airport law and airport environmental issues.  Gatzke was also directly involved in the United States District Court lawsuit that led to the 1985 Settlement Agreement and its subsequent amendments.  In addition, the firm has been instrumental in the drafting and implementation of the Phase 2 Commercial Airline Access Plan and Regulation ("Access Plan") and its amendments.

 

Since 2021, the Office of the County Counsel has contracted with the law firm Anderson & Kreiger LLP ("Anderson"), located in Boston, MA, for Airport matters pertaining specifically to federal law, regulation, and litigation.  Anderson successfully defended the County in litigation against Jet Suite X resulting in the Federal District Court dismissing the case on October 31, 2022.  Anderson currently represents the County in two ongoing Federal Aviation Administration ("FAA") complaints related to the General Aviation Improvement Program resulting in one dismissal thus far.  The firm is recognized nationally in federal airport law and has served the County well in its dealings with the FAA and Federal Court.

 

The services provided by Gatzke and Anderson have been above average. However, to ensure the County is receiving the highest quality and highest value in legal services, our office periodically initiates competitive processes for its outside counsel contracts.

 

Request for Statements of Qualification

 

County Counsel initiated a competitive selection process for the retention of airport special  counsel from law firms possessing expertise in the areas of general airport law as well as airport environmental expertise. On November 21, 2022, the Office of the county Counsel released a Request for Statements of Qualifications ("RFQ") for Special Counsel for Advisory and Litigation Services in the Area of Airport Law and Related Environmental Legal Services was sent to fifty-three (53) law firms.  Firms were permitted to submit their qualifications in the subject area of airport law generally, airport environmental law, or both.  Six (6) law firms responded with Statements of Qualifications ("SOQs").  All six SOQs were rated by a five-member panel that consisted of County Counsel and Airport executives.  All of the responding firms submitted their qualifications for both general airport law and airport environmental law.  The three highest ranking firms were interviewed by the evaluation panel.  Each firm was offered time to make a presentation and answer the same structured set of questions.
Based on the evaluation panel's review of firm SOQs and interviews, the firms were ranked as follows:

 

 

Firm Ranking

 

 

Total Score

1.  Kaplan Kirsch & Rockwell LLP

 

6,002

2.  Anderson & Kreiger LLP

 

5,720

3.  Gatzke Dillon & Ballance LLP

 

5,686

 

As part of the interview, firms were required to provide their proposed billing rates in sealed envelopes.  Only after the evaluation panel had completed its review and ranking of all three firms, were the billing rates reviewed.  The proposed billing rates for the firms are as follows:

 

 

Firm Billing Rates

 

 

Partner

 

Associate

 

Paralegal

Kaplan Kirsch & Rockwell LLP

 

$695/hr.

$400/hr.

$175/hr.

Anderson & Kreiger LLP

 

$510-$650/hr. (Incl. Sr. Counsel)

$300-$430/hr.

$190-$220/hr.

Gatzke Dillon & Ballance LLP

 

$425/hr.

$330-$375/hr.

$150/hr.

 

We are recommending that the Board select the law firms of Gatzke Dillon & Ballance LLP and Anderson & Kreiger LLP as the primary providers of special legal services to the Airport based on the exemplary service both have provided to the County as well as their competitive billing rates.

 

While Kaplan Kirsch & Rockwell LLP ("KKR") was ranked number one by the evaluation panel, we are recommending that the firm be selected as the secondary provider of special legal services to the Airport due to the firm's higher blended hourly billing rate.  KKR is a national law firm with extensive expertise in proceedings before the FAA, and at appellate and federal district courts.

 

Selecting these three firms will ensure that the Airport continues to have access to outside counsel with legal expertise in airport-related legal, regulatory, and environmental issues.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract are included in Fund 280, Airport Operating Fund, FY 2023-24 Budget and will be included in the budgeting process for future years.

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

ATTACHMENT(S):

 

Attachment A - RFQ for Airport Legal Services Final
Attachment B - JWA Special Counsel Ranking Summary Sheet
Attachment C - Proposed Legal Services Agreement - Anderson & Kreiger LLP
Attachment D - Proposed Legal Services Agreement - Gatzke Dillon & Balance LLP
Attachment E - Proposed Legal Service Agreement - Kaplan Kirsch & Rockwell LLP