Meeting Minutes for May 11, 2009
Chairman Spohn called the meeting of the Board of Directors of the Alameda Corridor-
East Construction Authority to order at 2:05PM.
| I. | In attendance were:
Tim Spohn Steven Atchley David Gutierrez David Spence Patricia Wallach Rosemarie Vasquez Gloria Molina Staff Rick Richmond, Chief Executive Officer Joe Silvey, Legal Counsel Deanna Stanley Cynthia Ambrose Charles Tsang Carlos Monroy Victoria Butler Regina Talamantez Guests Keith Gillfillan, Moffatt Nichol Duane Kenegay, Moffatt Nichol Connie Sandifer, Oliver, Sandifer & Murphy Damon Juha, Freeman, Freeman & Smiley David Voorhees, Unilever Bruce Russell, Jacobs Engineering Gene Bougdanos, HDR |
| II. | Pledge of Allegiance
Vice Chair Rosemarie Vasquez led the pledge of allegiance. |
| III. | Approval of Minutes of April 27,2009
A motion was made to approve the minutes of March 23, 2009. Vasquez/Atchley/Unanimous. |
| IV. | Public comment
Damon Juha, Freeman, Freeman & Smiley representing Unilever at 19161 E. Walnut Drive. He indicated Unilever's concern was with the proposed detour road for the Nogales Street grade separation project. He reported Unilever was a producer of 400 brands. The affected Unilever site employed 65 people and the proposed detour route via Otterbein could have substantial impacts on the employees, He expressed his appreciation for continued discussions with Paul Hubler and Ricky Choi of ACE regarding an alternative route. He indicated he looked forward to continuing discussions. |
| V. | Chairman's Remarks
Chairman Spohn indicated the American Council of Engineering Companies of California will be honoring Rick Richmond with the Engineering Achievement Award at their annual banquet. He indicated Mr. Richmond was chosen for his leadership of the ACE Project and its accomplishments and indicated he deemed it appropriate that the project purchase a table to the event. The Board agreed and member Vasquez asked if it were appropriate for invite past Board members and the Board agreed. |
| VI. | Chief Executive Officer's Report
Mr. Richmond briefly updated the Board on SB 652. |
| VII. | Approval of FY 2010 Budget Mr. Richmond reviewed the FY '09 goals. He indicated that the goals were divided into three categories: project, fundinglfinance and outreach. Of the project goals four were accomplished, 1 partially accomplished and three not. FundingIFinance - five were accomplished, 1 partially accomplished and 2 not accomplished. And of the four set outreach goals all were accomplished. He reviewed project implementation goals for FY '10 which were: Complete the Temple Avenue fourth track right-of-way; 8O0/0 construction complete on the Sunset Avenue project. Complete right of way and have the construction contract out to bid on the Nogales Street project. Construction underway at Baldwin Avenue and complete the environmental process, substantially complete design and preconstruction utility relocations underway for the San Gabriel Trench project. He reviewed funding/administration goals which included: establish eligibility for grant application and apply for FRA funds; seek FY '10 federal appropriations; seek dedicated freight trust fund or existing federal funding in SAFfTEA-LU reauthorization; advocate container fees, obtain clean financial audit and maintain at least 9S0/0 of note proceeds invested. He reviewed outreach goals which included: groundbreaking ceremonies for Baldwin Avenue and Nogales Street projects, continue business, community and safety outreach, launch enewsletter, implement a revised DBE program and conduct at least one environmental outreach meeting for the San Gabriel Trench project. He reviewed budget versus estimated actual expenditures for FY '09 and a comparison of FY '10 budget. A motion was made to approve the FY '10 budget M/S/C/Atchley/Vasquez/Unanimous |
| VIII. | Approval of Selection and Award of Contracts for Legal Services Contract
Mr. Silvey indicated though the matter was to be discussed in open session he would prefer to recuse himself from the discussions and he departed from the dais area, Chairman Spohn indicated that at the request of the SGVCOG, he and Mr. Richmond had attended a morning meeting with the SGVCOG's Executive Director and President, Dave Spence, to discuss ACE's legal services contracts. At this meeting, the SGVCOG's new legal counsel provided a written opinion indicating that ACE did not have the power to enter into contracts for legal services. A copy of this opinion was provided to the ACE Board. At Mr. Spohn's request, Mr. Richmond then reviewed the procurement process that AGE had used for the two legal services contracts on the agenda . He explained that five proposals were received for package A (general counsel and property acquisition) and seven proposals for package B (property acquisition only). A Technical Evaluation Committee comprised of an attorney from the City of Long Beach, an attorney from the County Counsel's Office, an ACE staff member and Mr. Richmond interviewed the three highest ranking firms for each contract package. The Committee recommended Burke, Williams & Sorensen for package A and Oliver, Sandifer & Murphy for Package B. Ms. Vasquez asked Mr. Richmond for clarification regarding the legal opinion from the SGVCOG. Mr. Richmond indicated he did not agree with the written opinion. He explained that he had little time to study it and that in the time available he had not been able to obtain guidance from ACE's counsel. Mr. Richmond explained that ACE has the power to enter into contracts necessary to run the ACE Project and he considers legal services to be a necessary element of the Project. Ms. Vasquez expressed concern that the ACE Board was being advised of the SGVCOG's new position at the last minute. She also indicated there was a selection process in place and she had confidence in the manner by which the process was followed by ACE staff. After significant discussion, Mr. Spence indicated the SGVCOG had always approved the legal services contracts of ACE. Ms. Molina asked Mr. Richmond to comment on Mr. Spencers remarks. Mr. Richmond indicated the initial legal services contract covering ACE was put in place prior to the existence of ACE and that until recently both ACE and the SGVCOG shared the same counsel. Each agency began separate procurements last year. Mr. Richmond indicated it has not been the practice for legal services contracts to be approved by the SGVCOG for any of the other legal firms providing services to ACE. Ms. Molina suggested that the Board move forward and consider the Technical Evaluation Committee's recommendation. Separately, she requested that staff return to the Board at a subsequent meeting with a listing of possible ACE Board actions which could require SGVCOG Governing Board approval so that the ACE Board could decide whether guidance and clarifications from the Governing Board might needed. A motion was made to authorize the Chief Executive Officer to execute a contract with the firm of Burke, Williams & Sorensen, LLP for Package A - general counsel and property acquisition legal services for the amounts established in each year's annual budget and annual task order and to authorize the Chief Executive Officer to execute a contract with the firm of Oliver, Sandifer & Murphy for Package B - property acquisition legal services for amounts established in each year's annual budget and annual task orders. M/S/C~asquez/Molina/Passed/Spence:opposed |
| IX. | Approval of Selection and Award of Contract for Phase II Traffic Study and Concept Plans
Mr. Richmond reminded the Board that proposals were sought to update the Phase I1 grade separation locations originally proposed in 1998. He reviewed the procurement process and scope, cost and schedule. He indicated there were seven proposals received and four teams interviewed. The Technical Evaluation Committee ranked KOA with JL Patterson highest and the recommendation was to begin negotiations with KOA. However, should negotiations be unsuccessful the procedures allowed negotiations with the second highest rated, CH2MHill. A motion was made to authorize the Chief Executive Officer to negotiate and execute a contract for an amount not-to-exceed $550,000 with KOA Corporation for the Phase I1 Traffic Study and Grade Separation Concept Plans and in the event negotiations are unsuccessful the same with CH2MHill. M/S/C:Vasquez/Wallach/Unanimous |
| X. | Approval of Contract Amendment for Ortiz Enterprises
Mr. Richmond reported the original contract issued in 2004 with Ortiz Enterprises was for construction of the East End Avenue and Reservoir Street grade separations in the City of Pomona. Ongoing delays and increased commodity costs contributed to increased authorizations over the five years of construction. Near the end of construction cost issues were negotiated but as of January 2009 a number of claims remain unresolved. Mr. Richmond reviewed the components of the increased authorization and alerted the Board that there are two unresolved claims which will move to dispute resolution. A motion was made to increases the Chief Executive Officer's change order authorization by $567,763 for a final contract authorization of $37,434,247 to accommodate change orders compensating the general contractor and subcontractor for the East End Avenue and Reservoir Street grade separations. M/S/C/Wallach/Vasquez/Unanimous |
| XI. | Approval of Contract Amendment for Moffatt & Nichol for Design Services for the San Gabriel Trench Project
Mr. Richmond reminded the Board that the initial contract for design services for the San Gabriel trench was for 35% design of the project. Mr. Richmond reviewed the two design/construction methods - designjbid and design/bid/build. He indicated it was determined that the preferred method would be design bid build which would require Moffatt and Nichol to continue services through final design. He reviewed other tasks required for the project. He anticipated work on t his phase would be complete in 18 months and the Authority was pleased with the services provided by Moffatt & Nichol. A motion was made to authorize the Chief Executive Officer to execute amendment #3 to the Design and Engineering Services Agreement with Moffatt & Nichol for the not to exceed amount of $18,304,601 for a total contract value of $25,203,004. M/S/C/Gutierrez/Atchley/Unanimous Mr. Spence requested staff provide the Board with an update on the status of contract audits at the next meeting. |
| XII. | Adjournment
The meeting was adjourned at 3:32PM. |