Ernest Gutierrez, Chairman George Hunter, Vice Chairman Dave Spence, La Canada Flintridge, SGVCOG Phil Marcellin, Industry Bob Bagwell, Montebello Staff Rick Richmond, Chief Executive Officer Joe Silvey, Legal Counsel Sharon Neely, staff Lou Cluster, staff Girish Roy, staff Bruce Armistead, staff Deanna Stanley, staff Chip Conway, staff

Guests Hon. Carol Herrera, City of Diamond Bar Jim DeStefano, City of Diamond Bar Jack Yoshino, City of Walnut David Varnam, Congressman Gary Miller’s Office Allen Ude, Los Angeles County Department of Public Works

II. Pledge of Allegiance

Member Spence led the pledge of allegiance.

III. Approval of Minutes of June 25, 2007

A motion was made to approve the meeting minutes of June 25, 2007. M/S/C:Marcellin/Hunter/Unanimous

IV. Public Comment

There were no public comments.

V. Chairman’s Report

The Chairman welcomed new Board member Dave Spence of La Cañada Flintridge.

VI. Chief Executive Officer’s Report

Rick Richmond updated the Board on the State budget. He indicated there were no earmarks included for goods movement. He reminded the Board at the last meeting staff’s concerns with the Prop 1B language included matching requirements. He reported that Senator Lowenthal amended the bill with exclusion to the match requirement but the bill needs to move through the Assembly. Lastly he reminded the Board that required quarterly mitigation monitoring reported are include in the agenda.

Bruce Armistead reviewed the progress photos of the Temple Avenue train diversion project. Girish Roy review progress photos of the East End Avenue grade separation project. Lou Cluster reviewed the progress photos of the Sunset Avenue and Ramona Blvd. grade separation projects. George Nomura reviewed the activities of the Bechtel/Korve program management that included Baldwin Avenue right-of-way activities and informed the Board that aerial photos of the project are planned. Member Hunter inquired as to the procedures following a rebar cage slip at the East End Avenue project. Bruce Armistead described how the accident occurred and safety manager Nathan Williams, Safety Environmental Services reported that, in accordance with procedures, immediately after the incident work was stopped and all parties involved met to review what happened and procedures to avoid a reoccurrence. He indicated safety policies called for information to be shared with each ACE project site. He reminded the Board that there were no injuries as a result of this incident.

VII. Approval of Amendment for Construction Management Services for the Ramona Blvd. Grade Separation Project with Lim & Nascimento Engineering

Mr. Richmond reminded the Board that at the April meeting he reported anticipated contractor claims due to various schedule delays. He indicated at that time construction contractor delay claims were forthcoming and summarized the causes for the claim. He reported that due to delays in SBC/ATT utility relocations, UPPR and Metrolink shoofly construction the project has experienced a 200-day delay at an estimated contractor cost of $1M. He reminded the Board that with the extension of the construction, the on-site construction manager, LAN must also continue to provide oversight of the project. He reviewed the request to add $740,000 for construction management services for the extension of the project and additional scope of work.

A motion was made to authorize the Chief Executive Officer amend the contract with Lim and Nascimento Engineering Corporation (LAN) to add $740,000 to Task Order #2 of the contract for construction management services associated with the Ramona Boulevard Grade Separation project, for a new task order value of $3,995,000. M/S/C/Marcellin/Hunter/Unanimous

VIII. Approval of Additional Staff Position of Grants Manager

Mr. Richmond reviewed the organizational chart. He indicated grants administration was more time-consuming than anticipated. He reported that Menchu Ituralde, was performing grant management in addition to routine accounting and soon expected to oversee new internal contract auditing responsibilities. He indicated with the additional responsibilities of audits a separation of position and responsibilities was necessary. He indicated that he preferred Menchu maintain accounting and auditing responsibilities since prior to working for ACE Menchu performed ACE audits through a contractor of the MTA. He indicated a grants manager position would report to Sharon Neely and responsibilities outlined in the staff report.

A motion was made to approve the additional position of Grants Manager with responsibilities and salary range as outlined in the agenda.
M/S/C/Marcellin/Bagwell/Unanimous

IX. Approval of an Amendment to Lopez & Co. Contract to Provide Auditing Services

Mr. Richmond stated, as mentioned earlier, the internal auditing function would now be performed in-house. MTA previously had 2 full time contracted staff auditors but has recently phased out its contract auditing functions. With the phasing out of the program came a backlog of contracts to be audited. He explained that contractor retention is withheld until audits are performed and after the MTA withdrew its services they approved ACE to self-audit its professional services contracts. He indicated that with minimal staff he recommended issuing a contract amendment to the current financial auditors to audit nine of its most pressing consultant audits. He explained that in conjunction with the audits, staff would prepare an RFP for these services to assist in this task as needed.

A motion was made to authorize the Chief Executive Officer issue a contract amendment and task order to Lopez & company for consultant audit services during FY 2008 in an amount not to exceed $40,500 to perform audits of ACE’s consultants and contractors.
M/S/C/Hunter/Marcellin/Unanimous

X. Quarterly Project Progress Report

Mr. Richmond reviewed the increase in project costs over the past quarter. He indicated a $4.9 million increase was expected due to the following: Delay costs at Ramona ($1.1M) and East End/Reservoir ($1.6M) and Sunset ($500K) projects and revised construction estimates and right of way costs for the Temple Avenue 4th track project ($2.3M). However, design changes for the Temple Avenue train diversion project was expected to result in a savings of $600,000. Accomplishments over the last quarter included: East End Ave – completing a portion of the UPRR bridge, continued utility relocations and excavation. Ramona Blvd – completed construction of Metrolink and UPRR bridges; continued retaining wall construction and roadway excavation. Temple Ave – completed pier protection wall at Temple Ave and completion of State Street Bridge. Brea Canyon Road – completed installation of storm and sewer lines; UPRR completed shoofly tracks and completed construction of temporary Metrolink platform station. Sunset Ave – completed roadwork at California Ave and Valley Blvd; continues storm drain relocations and began UPRR grade crossing signal work.

XI. Quarterly Financial Report

Chip Conway, Finance Manager reviewed the quarterly budget versus accrued actuals, cash expenditures by project, expenditures versus receipts by projects and investments. There were no questions.

XII. Potential Support of Position on State Legislation Affecting ACE Funding

Sharon Neely distributed an updated legislative summary. She reviewed the activities of the State legislature over the past month. She indicated that certain bills were recently amended and requested the Boards approval on AB 995 (Nava) to change its position from monitor to work with Author to clarify the language.

A motion was made to direct staff to work with Author to clarify language regarding recent amendments on AB 995(Nava).
M/S/C/Gutierrez/Hunter/Unanimous

XIII. Compensation of Chief Executive Officer

Chairman Gutierrez reminded the Board that the performance of the Chief Executive Officer was discussed at previous meetings and it was consensus that Rick Richmond was doing an outstanding job and that the Board had full confidence in Mr. Richmond. He indicated that in discussions Mr. Richmond requested no more than a 2% increase in salary.

A motion was made to increase Rick Richmond’s salary 2% effective his anniversary date.
Gutierrez/Hunter/Unanimous

XIV. Tour of Brea Canyon Road Grade Separation Project

Rick Richmond introduced Regina Talamantez, Resident Engineer of the Brea Canyon Road project. She asked Nate Williams to review the safety procedures of the project tour and safety protection was distributed. The Board, members and guests were led on tour of the Brea Canyon Road grade separation project by Ms. Talamentez and Nate Willliams.

XV. Adjournment.

The meeting was adjourned at 4:00PM.