George Hunter, Vice Chairman Carol Herrera, Diamond Bar, SGVCOG Phil Marcellin, Industry Michael Antonovich, LA County Jeff Siccama, Montebello Harry Baldwin, San Gabriel Staff Rick Richmond, Chief Executive Officer Joe Silvey, Legal Counsel Sharon Neely, staff Lou Cluster, staff Girish Roy, staff Bruce Armistead, staff Cynthia Ambrose, staff Deanna Stanley, staff Chip Conway, staff

Guests Gary Neely, Assemblyman Bob Huff Jack Yoshino, City of Walnut Vince Aguilar, DPW

II. Pledge of Allegiance

Vice Chairman Hunter led the pledge of allegiance.

III. Approval of Minutes of April 23, 2007

A motion was made to approve the meeting minutes of April 23, 2007.
M/S/C: Marcellin/Herrera/Unanimous

IV. Public Comment

There were no public comments.

V. Chairman’s Report

Vice Chairman Hunter reported members Herrera and Baldwin attended legislative meetings recently held in Sacramento and asked they provide comments. Member Baldwin indicated he received very good feedback from the meetings that were held with various Assembly members and their staff. He believed the meetings were productive and the annual dinner co-hosted with Foothill Transit, SGVEP, and SGVCOG was well attended.

VI. Chief Executive Officer’s Report

Mr. Richmond updated the Board on CTC and bond legislation. He also reported the Authority has received $5.145 million for the sale of the excess land at Nogales and Valley. Lastly, he also reported that the Authority was approved to receive $5 million from the Public Utility Commission under their Section 190 program. He thanked Lou Cluster for his efforts on this matter. Mr. Richmond indicated there would be no review of project progress photos at this meeting because of the project site tour.

VII. Approval Contract Amendment for Design Services During Construction for the Ramona Blvd Grade Separation project with DMJM+Harris

Mr. Richmond reminded the Board of the necessity of engaging the services of its designers throughout construction to address design change issues as they arise. He also reminded the board that delays nearly exclusive to third parties have been the greatest frustration to the project. He reviewed the design changes required including two bridge redesigns, each with different bridge types were more complicated than originally expected, pump house, retaining footings, electrical service for streetlights and traffic signals. While the approved contract amendment in 2005 covered these services, the project delays require the services to be extended beyond what was originally contemplated.

A motion was made to authorize the Chief Executive Officer to amend the contact with DMJM to add $81,000 for design services during construction of the Ramona Blvd. Grade separation for a new contract value of $3,211,543 and extend the completion date through February 2008.
M/S/C: Baldwin/Siccama/Unanimous

VIII. Approval of Contract Amendment for Construction Management Services for the East End Avenue Grade Separation project with PB Americas Inc.

Mr. Richmond reviewed the background of the East End Ave/Reservoir project. He indicated that as a result of the delay of the contract start date and significant third party delays the construction schedule has been affected. He stated that the UPRR signal installation and pre-cast girder shop drawing delays alone added 178 calendar days to the schedule. As a result, the construction management service contract requires an amendment to extend the contract through the anticipated duration of the construction.

A motion was made to authorize the Chief Executive Officer to amend the contract with PB Americas, Inc. to add an amount not to exceed $1,2567,170 to task order #1 of the contract for construction management services associated with the East End Ave and Reservoir Street grade separations project. The new task order value will be not to exceed $4,329,164.
M/S/C: Herrera/Marcellin/Unanimous

IX. Approval of an Increased Authorization for Construction Contract Change Orders for the East End and Reservoir Street Grade Separations

Mr. Richmond reminded the Board that the construction of the Reservoir Street grade separation has been accepted and that work on East End Ave continues. He stated that Ortiz Enterprises, the construction contractor for the two projects, was affected with the same delays discussed earlier. He stated that Ortiz has made every effort to mitigate schedule delays including accelerating its work activities and redesigning shoring, and will continue to work towards reducing the level of delay. He reminded the Board that aside delay change orders, the total of all other changes approved is only 4.5% of the original contract value.

A motion was made that the Board increase the Chief Executive Officer’s change order authorization by $737,000 for a total of 12.4% of the original contract value to accommodate significant change orders compensating the contractor for delays as outlined in the staff report presented.
M/S/C: Baldwin/Siccama/Unanimous

X. Approval of Employee High Deductible Health Savings Plan Option

Mr. Richmond explained the elements of the high deductible health savings plan offered to ACE employees. With a deductible of $5,000 deductible (family) and $3,000 (individual) a health savings account is available to the employee for their use for eligible medical/dental/vision expenses. During open enrollment all employees were encouraged to participate in this program. Participation in such a plan generally reduces the premium to the Authority. The Authority is requesting to deposit what is federally allowed, an amount greater than the deductible. He explained that unlike flexible spending accounts, where a tax benefit is realized, participation in this plan will result in a State tax liability and therefore recommended depositing the maximum contribution allowed under IRS regulations.

A motion was made to approve that the Authority contribute the maximum allowable deductible under IRS regulations to employees participating in the High Deductible Health Plan.
M/S/C: Herrera/Marcellin/Unanimous

XI. Approval of Fiscal Year ’08 Budget

Mr. Richmond reviewed the status of the ’07 goals and accomplishments for project implementation, funding/financial administration and outreach as outlined in the agenda. Highlights included: Ramona Blvd. grade separation, with a goal of 90% is 75% complete. Temple Avenue third track is 98% complete while track/signal installation, postponed by the Union Pacific is only 20% complete. Brea Canyon Road grade separation completion, with a goal of 35% will be 50% complete. Mr. Richmond highlighted financial accomplishments. He reported that the MTA has agreed to allow ACE to perform self-audits after several years in minimal audit findings. Mr. Richmond reviewed public outreach achievements that included a dedication of the Reservoir Street grade separation in April, and the continued success of the business, school and community safety programs. Mr. Richmond reviewed the goals for FY 2008 as outlined in the budget for project implementation, outreach, finance/financial administration. He noted that the budget needed approval from the San Gabriel Valley Council of Governments. Mr. Chip Conway, Finance Manager reviewed the fiscal year ending ’07 budget and the proposed FY ‘08 budget.

A motion was made to approve the FY ’08 Budget and forward to the San Gabriel Valley Council of Governments for approval.
M/S/C: Marcellin/Herrera/Unanimous

XII. Approval of Positions on State Legislation

Sharon Neely reviewed the status of pending transportation bills. She noted previous support positions of the Board and asked for continued support of SB 974 (Lowenthal) as amended (includes ACE as an eligible project) and indicated the potential revenue source would be key to funding Phase II projects. She recommended the Board support SB 9 and 19 with language clarification (noted on legislative matrix), support and work with author on AB 1351, and oppose AB 660 unless amended to retain 10% railroad participation and retain a reasonable funding cap per project.

A motion was made to approve staff recommendations on pending state transportation legislation.
M/S/C: Baldwin/Herrera/Unanimous

XIII. The Board adjourned to tour the Temple Avenue train diversion project at 2:40 PM.

XIV. Adjournment.

The meeting was adjourned at 4:07 PM