Ernest Gutierrez, Chairman George Hunter, Vice Chairman Dave Spence, La Canada Flintridge, SGVCOG Harry Baldwin, San Gabriel Bob Bagwell, Montebello Paul Eaton, Ex-Official, SANBAG Staff Rick Richmond, Chief Executive Officer Joe Silvey, Legal Counsel Sharon Neely, staff Lou Cluster, staff Girish Roy, staff Bruce Armistead, staff

Guests David Varnum, Congressman Miller’s Office Allan Ude, Los Angeles County Department of Public Works Gary Neely, Assemblymember Huff’s Office

II. Pledge of Allegiance

Vice Chairman Hunter led the pledge of allegiance.

III. Approval of Minutes of September 24, 2007

A motion was made to approve the meeting minutes of September 24, 2007.
M/S/C: Spence/Baldwin/Unanimous

IV. Public Comment

There were no public comments.

V. Chairman’s Report

Chairman Gutierrez expressed sincere condolences on the passing of fellow ACE Board Member and Industry Councilman Phil Marcellin to the family and City staff. He noted that Phil was involved with the creation of ACE since the beginning—first supporting Councilman Jack Phillips and then as his replacement on the ACE Board. He noted that ACE counted on his good humor as well as his excellent knowledge of construction at the Board meetings as well as at the weekly trailer meetings. He noted that ACE would miss him greatly.

The Chairman advised the Board that he transmitted a letter to the Governor on behalf of the Board asking him to sign SB 717 (Perata-transportation funding bill) and that the Governor signed the bill despite opposition on October 15th.

VI. Chief Executive Officer’s Report

Rick Richmond provided an update on the meetings he has been attending along with other Southern California Chief Executive Officers from transportation agencies concerning the guidelines for allocating the $2 billion Prop 1B Trade Corridor Improvement Funds (TCIF). He noted that the California Transportation Commission was expecting to adopt guidelines in November and allocate funds in December. Board Member Spence questioned what ACE shall do if CTC does not support ACE funding request; did we have fallback strategy? Mr. Richmond provided an update on working with the San Gabriel Valley legislators regarding the ACE evaluation status within the TCIF allocation process. He noted that the Caucus Chair of the SGV legislature is working with other area Legislator’s on reasonable allocation principles. In addition, Mr. Richmond noted the CEO report included the construction environmental mitigation quarterly report for the period of June 1-August 31st. There are six active construction sites and ACE is in compliance with no exceptions found during the quarter. Further, Mr. Richmond noted that ACE had replaced the computers for speed/efficiency and that the surplus computers were being donated to charity. However, ACE computers were so old there was little interest. Senior Project Manager Girish Roy reviewed construction progress photos of the Brea Canyon Road and East End Avenue grade separation projects. Senior Project Manager Lou Cluster reviewed construction progress photos of the Ramona Blvd. and Sunset Ave grade separation projects. George Nomura, Program Manager reviewed program management support tasks completed or ongoing over the past month.

VII. Approval of Transition Plan for In-House Program Management Support

Mr. Richmond indicated that the ACE competitively procured the program management support services in 1999 to augment agency staff. Consultant staffing needs have declined since 2003 and there are presently 11 full time equivalents supporting ACE activities. Further, Mr. Richmond noted that Bechtel did not plan to continue their contract beyond June 2008 unless ACE expected to increase their work activities. Given the current uncertainty about future funding, ACE cannot reliably project increases in contract support services. Therefore, Mr. Richmond indicated that staff was recommending an orderly transition between now and June, 2008 when the contract ends. He noted that some functions would be retained by subcontractors, others phased out and others added to future project design activities. He summarized the timing for transition activities beginning with administrative support occurring between October and December. The Board report included job descriptions, salary ranges and an organizational chart for adding three administrative positions (Administrative Assistant and two administrative support positions to assume document control, clerical support and expanded office administration responsibilities).

Board Member Spence requested clarification on whether there was a cost impact analysis of the alternative of rebidding the contract. Mr. Richmond responded that staff had considered that option, but believes there will be a cost savings under the staff recommendation since the ACE overhead is lower than any contractor and if ‘re-bidding’ the contract was unsuccessful, it would be extremely difficult to staff up by June. There was discussion about the overhead rates and benefits between the two options. There was discussion about the timing required to re-procure the contract. Mr. Richmond noted that he believes that will be a net savings in the FY ’09 budget.

Board Member Spence made a motion to re-procure the program management contract. Motion failed due to lack of second.

A motion was made to approve staff recommendation to begin converting program management support activities to agency supported activities and begin the process by increasing ACE administrative support staff as described in the agenda (page 29). M/S/C: Baldwin/Gutierrez/Approved/Spence: abstained

VIII. Quarterly Project Progress Report

Mr. Richmond reviewed the key accomplishments from the quarterly progress report on page 34 of the agenda. He noted Ramona Blvd. was expected to open to the public in February. The contractors were continuing the Ramona pump station work and mechanical installation and completed the west side roadway grading and pavement. Further, he noted that the middle bridge section at East End was set in place and that they began construction of the final section of the UPRR bridge as well as continued construction of the retaining walls. At Brea Canyon-- the SCE powerline relocation was finally completed; and the railroad shoofly grading was completed at Sunset Ave.

IX. Quarterly Financial Report

Rick Richmond reviewed the financial quarterly report on page 51 of the agenda. He noted that for the first quarter of the fiscal year, the Authority had expended $6.8 million in cash expenditures for project activities and was expending less railroad force account and contractor construction funds than anticipated. He noted that the same was true for right-of-way acquisitions budget. He expects all activities to be within budget by close of fiscal year.

X. Closed Session:

Joe Silvey, ACE Legal Counsel announced the Board would adjourn to closed session pursuant to Government Code Section 54956.9(a) to discuss existing litigation – Brutoco Engineering and Construction versus Alameda Corridor-East Construction Authority Case No. KC050714.

The Board returned from closed session and ACE Legal Counsel, Joe Silvey announced the Board approved a settlement for Case No. KC050714 for $658,000. M/S/C: Gutierrez/Baldwin/Unanimous

XI. Adjournment

The meeting was adjourned at 3:22 PM in memory of Industry Councilman and ACE Board member Phil Marcellin.