Ernest Gutierrez, Chairman George Hunter, Vice Chairman Dave Spence, La Canada Flintridge, SGVCOG Phil Marcellin, Industry Harry Baldwin, San Gabriel Michael Antonovich, LA County Paul Eaton, Ex-Official, SANBAG Staff Rick Richmond, Chief Executive Officer Joe Silvey, Legal Counsel Lou Cluster, staff Girish Roy, staff Bruce Armistead, staff Deanna Stanley, staff Chip Conway, staff Menchu Ituralde, staff

Guests David Varnam, Congressman Gary Miller’s Office Allen Ude, Los Angeles County Department of Public Works Maureen Hayes, Parsons Transportation

II. Pledge of Allegiance

Member Hunter led the pledge of allegiance.

III. Approval of Minutes of July 23, 2007

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

IV. Public Comment

Tim D’zmura, Director of Public Works, City of Pomona, thanked the Board and staff for their efforts to help Pomona establish its Quiet Zone. He expressed his appreciation for the assistance from Chief Executive Officer, Rick Richmond, and staff, Sharon Neely and Bruce Armistead. He said with their help the City was able to establish its Quiet Zone, which took affect today.

V. Chairman’s Report

Chairman Gutierrez thanked members Hunter, Baldwin, Marcellin and Spence for attending the Ramona Blvd construction tour last week.
He indicated the ACE Finance Manager, Chip Conway, had accepted a position with SANBAG. The Board presented a resolution to Chip Conway and expressed their appreciation for his contributions to ACE over the past 7 years.

VI. Chief Executive Officer’s Report

Rick Richmond indicated on August 9th members of the House Transportation & Infrastructure Railroad subcommittee conducted a hearing and Congresswoman Grace Napolitano requested ACE to testify and accompany the members on a helicopter tour of the corridor. He also reported that we were contacted by staff of the Congressional Research library who was researching the ports. Staff arranged a tour the ACE project and organized meetings with appropriate LA and Long Beach officials.

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 Avenue grade separation projects. Senior Project Manager Bruce Armistead reviewed photos of the completed Temple Avenue train diversion project. George Nomura, Program Manager reviewed program management support tasks completed or ongoing over the past month.

VII. Approval of Authorization to Proceed with Property Acquisition for the Temple Avenue 4th Track Project

Mr. Richmond indicated the ongoing refinement of the 4th track component of the Temple Ave project identified several fee and permanent easements required for the project. He reviewed an aerial photograph depicting the necessary acquisitions. He indicated staff would work diligently to reach a reasonable negotiation. He indicated that if Board action was necessary staff would bring forth accordingly for approval.

A motion was made to authorize staff to proceed with the acquisition of property interests required for the UPRR fourth track component of the Temple Avenue Train Diversion Project.
M/S/C/Hunter/Marcellin/Unanimous

VIII. Approval of DMJM Request to Withdraw from Program Management Contract

Mr. Richmond reviewed the background of the program management procurement. He reminded the Board that in 1999 a joint venture of Bechtel/Korve was selected to provide program management and as part of that agreement members of either team were prohibited to engage in services under supervision of ACE. Over the years, the participation of Korve has lessened, and in late 2006 ACE was notified that DMJM had acquired Korve. The Board was reminded that renewal of the program management contract was extended only through June and that there were no indications that the contract would increase. With that in mind, DMJM has requested to withdraw from the joint venture and Bechtel has agreed to assume any and all responsibilities of the program management contract.

A motion was made to approve the request by Bechtel Infrastructure Corp. and DMJM Harris for DMJM Harris to withdraw from the Bechtel/DMJM program management joint venture and the assumption of all responsibilities under the contract by Bechtel Corp.
M/S/C/Baldwin/Marcellin/Unanimous
Note: Antonovich was not present during this discussion or vote.

IX. Approval of Purchase of Construction Excess Liability Insurance

Mr. Richmond reviewed the insurance coverages required by the agency of contractors. He reminded the Board that there are five construction projects underway with a work valued in excess of $165 million. He reviewed the layers of insurance coverages and reminded the Board that last year, upon expiration of our excess liability policy, the Board approved purchase of $25 million coverage for a total annual premium of $285,000. He indicated the policy will expire in October and staff has been working with BICEP and their broker to secure coverage at the best possible price. Mr. Richmond indicated he was pleased to report that AIG was able to propose the same coverage for 3 years for an amount not to exceed $190,143.

A motion was made to authorize the Chief Executive Officer to extend and purchase $25M of excess liability insurance for three years for an amount not to exceed $90,143 from the Insurance Company of the State of Pennsylvania (AIG) as recommended by BICEP and their broker.
M/S/C/Baldwin/Hunter/Unanimous

X.Approval of Renewal of Office Lease

Mr. Richmond indicated the lease for the current office space expires in May 2008 and the leasing agent has approached ACE regarding renewing its lease until May 2010 which is the end of their master lease. Mr. Richmond indicated relocating would be costly and disruptive and felt the proposed renewal terms were fair and reasonable.

A motion was made to authorize the Chief Executive Officer to execute a lease amendment for office space at its current location for a period of two years and three months, commending June 1, 2008 and terminating on August 31, 2010.
M/S/C/Marcellin/Baldwin/Unanimous

XI. Update on State Budget and Legislation

Rick Richmond updated the Board on State Bond discussions. He also discussed the failure of the Assembly to pass SB 974 (Lowenthal). He indicated the Governor met with Senator Lowenthal and asked this be held till January.

XII. Closed Session

Joe Silvey announced the board would adjourn to closed session pursuant to Government Code Section 54956.8 for a conference with real property negotiators regarding property at 2882 Pomona Blvd. Pomona, CA. Agency Negotiators Paragon Partners and Negotiating Parties ACE and Altec Industries, Inc.

The Board returned from closed session and Joe Silvey announced the Board approved a right of entry settlement agreement of $160,000 payable to Altec Industries, Inc. by a motion made by Member Spence and seconded by Chairman Gutierrez which passed unanimously.

XIII. Adjournment

The meeting was adjourned at 2:53PM.