Meeting Minutes for September 28, 2009
Chairman Spohn called the meeting of the Board of Directors of the Alameda Corridor-
East Construction Authority to order at 2:01 PM.
| I. | In attendance were:
Tim Spohn, Industry Steve Atchley, Pomona David Gutierrez, San Gabriel Patricia Wallach, El Monte Tom King, Walnut, SGVCOG Rosemarie Vasquez, Montebello Gloria Molina, Los Angeles County Staff Rick Richmond, Chief Executive Officer Joe Silvey, Legal Counsel Deanna Stanley Cynthia Ambrose Charles Tsang Victoria Butler Lou Cluster Guests Mick Bartholomew, PBSW Gene Bougdanos, HNTB Joe Jenkins, Jacobs Jeanne Harwin, Jacobs Mark Alexander, La Canada Flintridge Dave Spence, La Canada Flintridge Nick Conway, SGVCOG |
| II. | Pledge of Allegiance
Member Vasquez led the pledge of allegiance. |
| III. | Approval of Minutes of August 24, 2009
A motion was made to approve the minutes of August 24, 2009. M/S/C/King/Vasquez/Unanimous |
| IV. | Public comments
There were no public comments at this time. |
| V. | Chairman's Report
Chairman Spohn reported he and staff arranged a tour of the ACE Projects for Congresswoman Judy Chu and staff on August 31% Congresswoman Chu assured staff her support of the ACE Project. The Chairman also reported that he met with Congresswoman Grace Napolitano and her staff on August 27 to brief her on the ACE Project progress. Congresswoman Napolitano also committed her continued support of the Project. Chairman Spohn reminded the Board that the next regularly scheduled Finance Committee meeting would be held on Thursday, October 2znd at the ACE Offices at 11AM. |
| VI. | CEO's Report
an update of the ACE Project and Paul Hubler provided an update of the legislative strategy. Mr. Richmond also reported there has been significant level of effort of the above ground work at the Sunset Avenue project and suggested the October meeting be held in the City of Industry with a tour to immediately follow. Mr. Charles Tsang reviewed construction progress photos of the Temple Avenue project. Ms. Victoria Butler reviewed construction progress photos of the Sunset Avenue grade separation project. |
| VII. | Hearing on Resolution of Necessity for Property Acquisition for the
Baldwin Avenue Grade Separation Proiect Mr. Silvey reviewed the process for adoption of a Resolution of Necessary. He reminded the Board that although the eminent domain process required adoption of a Resolution of Necessary, even with such adoption, negotiations would continue. He reviewed the specific actions required for the adoption of the Resolution of Necessity. A hearing must take place, staff would review the project and property rights proposed to be acquired, public comments must be heard and the Board must consider adoption of a Resolution of Necessity containing three specific findings required by law. He reminded the Board that a two thirds affirmative vote is required for such action. Mr. Mendoza reviewed the design options considered which included realignment of Baldwin, building an overpass or not building a grade separation. The evaluation criteria included vehicular movements, impacts to adjacent residential/business areas, property costs and safety. Mr. Mendoza reviewed the property requirements which were a permanent utility easement, permanent easement for retaining wall and a temporary construction easement. The property owner is MIPCO and the property is used as a warehouse facility. Mr. Ralph Megna, representing MIPCO, LLC, reviewed other property takes required by the Baldwin Avenue grade separation project. He indicated the MIPCO property was the only property where only access was from Baldwin and where ACE sought limited easement. He stated the loss of use of parking and accessibility of loading docks/doors justified ACE purchasing the property in its entirety. After discussion, a motion was made to adopt Resolution No. 09-04 and for staff to schedule a conference with the ACE property negotiators for the next Board meeting to review the negotiations with MIPCO, LLC. M/S/C / Molina/Vasquez/Unanimous |
| VIII. | Approval of Amendment to Design Services Contract for the Nogales
Street Grade Separation for AECON USA, Inc.
Mr. Richmond reminded the Board that this project was at about 65% design in 2008 when given to the Authority by the City of Industry and LA County to take into construction. In late 2008 the designs were updated to include additional elements and a traffic study during construction. In addition an alternative construction detour route was being incorporated due to the dissatisfaction from the community of the original proposed route. In order to incorporate the new detour including profiling, traffic signals, drainage, and temporary street lighting additional effort is required by AECOM, the designer of the project. A motion was made to authorize the Chief Executive Officer to amend the contract with AECOM, ISA, Inc. for the Nogales Street grade separation to add $316,880 for a new contract value of $3,508,407 for additional design services. M/S/C/Wallach/King/Unanimous |
| IX. | Construction Management Contract with LAN Engineering for the Baldwin Avenue Grade Separation Project
Mr. Richmond reminded the Board that in March LAN Engineering was approved for the construction management services for the Baldwin Avenue grade separation. LAN was selected to provide up to four grade separation projects under its contract, He reviewed the elements of the scope of services. He reported that in August we were advised that LAN was acquired by AECOM which is the designer of the Baldwin project. He indicated overall industry practice would not favor having the construction manager of the same design firm. However, LAN has approached ACE with contract conditions which would provide reasonable protection under the circumstances. Conditions included; if design changes were suggested, a third party opinion would be sought and associated costs absorbed by LAN, key staff would remain for one year, overhead rate will not increase beyond provisional rate and the E&O insurance carrier separate from AECOM. Mr. Richmond indicated ACE has been very pleased with the CM work performed by LAN for the Nogales, Ramona projects. The Board discussed this item at length. After discussion, Supervisor Molina requested staff to bring this item to the Board for consideration at the next scheduled meeting. |
| X. | Approval of Revised Project Reporting
Public Comments were made during this time from Mark Alexander, City Manager, La Canada Flintridge and Nick Conway, Executive Director, San Gabriel Valley Council of Governments.Steering Committee. He initially expressed concern with the lack of opportunity for the City Manager's TAC to review the proposed formats for the ACE Project reports prior to their presentation to the ACE Board. He indicated the Committee consisted of 8-9 members, none were Finance Managers. Supervisor Molina requested clarification of his concerns with the reports and Mr. Alexander indicated he had no issues with the reports however he was concerned with the process. Supervisor Molina suggested if there was a concern with the process by a committee run by the COG, problems with the process should be addressed by the COG not the ACE Board. Mr. Richmond indicated the quarterly reports proposed were revised to include relevant reporting information, most of which was currently being reported to both Boards. He indicated, however, reporting on funding and schedules of unplanned projects were not prudent, and not proposed, contrary to the request from the COG'S Executive Director. described at great length, certain concerns that he attributed to the COG City Manager's TAC Steering Committee regarding possible liabilities that could be associated with the overall ACE Program. Mr. Conway cited such examples of possible liability from the results of future close out audits, obligations associated with the $100 million working capital obtained for the project through the sale of commercial paper and the overall responsibility of the COG for the ACE Project. Supervisor Molina reminded Mr. Conway that liability was always going to be an issue. She further indicated the ACE Board, individually and as a whole had a fiduciary responsibility of the management of the ACE Project and that this responsibility had been delegated by the COG Board. She also indicated she has been very pleased with the way ACE staff handles matters related to the ACE Board and with the actions and cohesiveness of the ACE Board itself. Ms. Wallach suggested the Board be given additional time to review and understand the formats being proposed by Mr. Richmond. Mr. Conway continued to express concerns regarding the liability of ACE to the COG. Mr. Silvey suggested if further discussion regarding liability be required, it should be addressed at a separate meeting, properly noticed. Mr. Richmond then suggested he present the material to the COG City Managers TAC Steering Committee and he would report back to the ACE Board at the October Board meeting, However, Mr. Richmond expressed concern that such a schedule might be inappropriate if the COG continued to move forward with its plans to discuss ACE'S reports at its October Governing Board meeting. Member King, who is President of the COG indicated the COG Governing Board would refrain from addressing the ACE reporting format until the Governing Board's November meeting. Ms. Wallach made a motion to have Board action on the matter of ACE'S report formats be held over until the next Board meeting to enable the Board members to study the issue further. After discussion Mrs. Vasquez made a motion to adopt staff's recommendation. The motion failed due to a lack of second. Ms. Wallach's motion was then seconded and passed. M/S/C/ WaIlach/Gutierrez/Passed Spohn/Vasquez/Nays |
| XI. | Closed Session
Mr. Richmond requested that due to time constraints this item be held over. |
| XII. | Adjournment
The meeting was adjourned at 3:51PM |