MTA TO FIGHT RULING ON PROJECT.

Byline: David Bloom Daily News Staff Writer

The MTA board decided Thursday to appeal a judge's ruling forcing it to reopen the bidding process on a controversial east-side subway construction project, said its attorney, Thomas Malcolm.

``We respectfully disagree with (the judge's) decision,'' Malcolm said. ``We're going to the Court of Appeals.''

The Metropolitan Transportation Authority board also delayed approval of an $85 million contract to JMA, the joint venture that won the bidding after nearly two years of controversy.

In a decision released late Wednesday, Los Angeles Superior Court Judge Robert O'Brien wrote that the contract award process was so ``haphazard, uncertain, disjointed and suspicious'' that ``the slate should be cleaned and a proper process, free of all influence, implemented.''

O'Brien's decision left in limbo the entire $1 billion Metro Red Line east-side extension from Union Station to First and Lorena streets.

``This throws a real monkey wrench into whether we can move ahead or not. It's very disappointing,'' said county Supervisor Gloria Molina, an MTA board member heavily involved in the contract infighting.

Molina foe Richard Alatorre, an MTA board member and city councilman, called the judge's decision ``a validation of what I've been saying all along. It was a tainted process. This was outrageous what went on.''

In the first round of procurement, the contract was to go to Metro East Consultants, a joint venture that included several firms with close ties to Alatorre but little subway building experience.

The agency's inspector general criticized the first selection process, saying no background and financial checks were done on companies among other problems.

Former Chief Executive Officer Joseph Drew set up a new bid process whose expert panel ranked JMA well ahead of another team and Metro East.

But Drew then recommended Metro East get the contract, splitting the MTA board between factions backing Alatorre and Molina.

Drew's recommendation sparked a criminal investigation and his resignation in December before the board finally gave the contract to JMA.

Metro East then filed suit, saying Molina pressured Drew to keep it from getting the contract, as a political payback for its Alatorre connections. Molina denied that saying the depositions taken in the suit showed no such evidence.

Metro East attorney Neil Papiano welcomed O'Brien's decision.

``We want the process to be fair, equal, unbiased and no political effect,'' Papiano said.

The decision Wednesday angered JMA venture partner Tony Gonzalez, who said his partnership would pursue ``all legal remedies'' to keep its contract.