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Page 1 of 22 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING APRIL 21, 2014 A MEETING OF THE BUDGET COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY AD HOC COMMITTEE CHAIRMAN WILLIAM T. BERGERON AT 3:35 P.M. ON MONDAY APRIL 21, 2014. COMMITTEE MEMBERS William T. Bergeron, Ad Hoc Committee Chairman PRESENT: Joseph F. Toomy, Member Daniel F. Packer, Jr., Member Michael W. Kearney, Member (left at 4:15 P.M.) Robert R. Barkerding, Jr., Member MEMBERS ABSENT: Gregory R. Rusovich, Committee Chairman Scott H. Cooper, Member STAFF: G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel J. Ruckert, Director, Finance & Information Technology M. Rubino, Staff Attorney W. Stokes, Executive Secretary N. Lopez, Legal Department GUESTS: J. Holt, Government Consultants R. Kelly, City Business A. Determination of Quorum and Call to Order In the absence of Committee Chairman Rusovich, Board Chairman Packer appointed Commissioner Bergeron to serve as Ad Hoc Chairman of this committee for the purpose of holding this meeting only. Ad Hoc Committee Chairman Bergeron determined the existence of a quorum and called the meeting to order at 3:35 P.M. B. Public Comment Ad Hoc Chairman Bergeron called for public comment, but there was none.

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Page 1 of 22

BOARD OF COMMISSIONERS

PORT OF NEW ORLEANS

MINUTES

OF

THE BUDGET COMMITTEE MEETING

APRIL 21, 2014

A MEETING OF THE BUDGET COMMITTEE OF THE BOARD OF

COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE

PRESENTATION ROOM ON THE 4TH

FLOOR AT ITS OFFICES AT 1350 PORT OF

NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER

BY AD HOC COMMITTEE CHAIRMAN WILLIAM T. BERGERON AT 3:35 P.M. ON

MONDAY APRIL 21, 2014.

COMMITTEE MEMBERS William T. Bergeron, Ad Hoc Committee Chairman

PRESENT: Joseph F. Toomy, Member

Daniel F. Packer, Jr., Member

Michael W. Kearney, Member (left at 4:15 P.M.)

Robert R. Barkerding, Jr., Member

MEMBERS ABSENT: Gregory R. Rusovich, Committee Chairman

Scott H. Cooper, Member

STAFF: G. LaGrange, President & Chief Executive Officer

P. Gallwey, Chief Operating Officer

B. Gussoni, Executive Counsel

J. Ruckert, Director, Finance & Information Technology

M. Rubino, Staff Attorney

W. Stokes, Executive Secretary

N. Lopez, Legal Department

GUESTS: J. Holt, Government Consultants

R. Kelly, City Business

A. Determination of Quorum and Call to Order

In the absence of Committee Chairman Rusovich, Board Chairman Packer appointed

Commissioner Bergeron to serve as Ad Hoc Chairman of this committee for the purpose

of holding this meeting only. Ad Hoc Committee Chairman Bergeron determined the

existence of a quorum and called the meeting to order at 3:35 P.M.

B. Public Comment

Ad Hoc Chairman Bergeron called for public comment, but there was none.

Page 2 of 22

C. Briefing and Discussion Items

1. Review of March, 2014 Financial Statement

Mr. Ruckert briefed the committee regarding the March, 2014, financial statement.

He distributed a report detailing the financial information, a copy of which is made

part of these minutes. He announced that the Board's financial condition looked better

at this point in 2014 than in the corresponding month in 2013. He announced that ship

calls were slightly up, and cruise ship parking revenue was up as well in comparison

to the corresponding months of January, February, and March in 2013.

After discussion, the committee indicated it would recommend acceptance of this

month's financial statement to the Board at its next scheduled regular meeting.

2. Briefing on and Discussion of the 2015 Financial Plan Process

Mr. Ruckert gave a status report on the current stage in the financial plan process. He

spoke about each division's projected expenses and the original budget he received on

March 28. He explained that payroll has increased overall about $600,000, which is

about 3.4%. He also addressed direct expenses including professional fees and

insurance.

3. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Professional Services Agreement to Provide

Financial Advisory Services for the Purpose of Evaluating the Potential for a

Public/Private Partnership

Mr. Ruckert gave a brief summary and recap of the activities completed to date on

this item. The recommendation of the staff committee who met last week was to

retain KPMG Corporate Finance, LLC, at a cost not to exceed $195,000.

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next scheduled regular meeting.

4. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Professional Services Contract with Ray

Lauga, Inc., for the Administration and Management of the Capital Projects

Office, including FEMA and Homeland Security Funding and the Capital

Improvement Program

Mr. Gallwey briefed the committee regarding a resolution to enter into a contract with

Ray Lauga, Inc., to manage the Capital Projects Office. Mr. Gallwey explained that

the current administrator Mr. Richard was retiring and the Board needed to fill this

vacancy. He further stated that, after reviewing the thirteen resumes submitted, he

recommended to Mr. LaGrange that the better way to manage this department was to

Page 3 of 22

enter into a contract with Mr. Lauga as opposed to extending full-time employment.

Mr. Gallwey explained that, in addition to FEMA recovery and management, this

office manages all the Board’s capital projects including for the cruise terminals,

Homeland Security funds and all construction projects. He further stated that Mr.

Lauga has worked on capital projects management with the Board for a long time and

is familiar with our systems and has project management experience.

A discussion followed on the cost and scope of Mr. Lauga’s contract. Commissioner

Bergeron questioned Mr. Lauga’s hourly rate and expressed his concern about not

filling the vacancy with a full-time applicant. Commissioners Bergeron and Toomy

further expressed concern regarding work load, projects in progress, and prices, and

said they felt the position may need to be filled by a full-time employee.

Commissioner Packer indicated this was a management issue. Mr. Gallwey indicated

that Mr. Lauga’s rates were commensurate with the workload required and that a full-

time employee would likely be costlier.

D. Adjournment

There being no further business to come before the committee, Ad Hoc Committee

Chairman Bergeron adjourned the meeting at 4:35 P.M.

BOARD OF COMMISSIONERS

PORT OF NEW ORLEANS

MINUTES

OF

THE PLANNING AND ENGINEERING

COMMITTEE MEETING

APRIL 21, 2014

A MEETING OF THE PLANNING AND ENGINEERING COMMITTEE OF THE

BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE

PRESENTATION ROOM ON THE 4TH

FLOOR AT ITS OFFICES AT 1350 PORT OF

NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER

BY AD HOC CHAIRMAN ROBERT R. BARKERDING, JR., AT 3:05 P.M. ON

MONDAY, APRIL 21, 2014.

COMMITTEE MEMBERS Robert R. Barkerding, Jr., Ad Hoc Chairman

PRESENT: Joseph F. Toomy, Member

Daniel F. Packer, Jr., Member

Michael W. Kearney, Member

William T. Bergeron, Jr., Member

Page 4 of 22

MEMBERS ABSENT: Gregory R. Rusovich, Member

Scott H. Cooper, Committee Chairman

STAFF: G. LaGrange, President & Chief Executive Officer

P. Gallwey, Chief Operating Officer

B. Gussoni, Executive Counsel

C. Bonura, Director, Business Development

R. Jumonville, Director, Cruise & Tourism

D. Keller, Director, Port Development

P. Zimmerman, Director, Operations

A. Fant, Deputy Director, Operations

M. Rubino, Staff Attorney

W. Stokes, Executive Secretary

N. Lopez, Legal Department

GUESTS: C. Balthazar, Riverworks

R. Kelly, City Business

A. Determination of Quorum and Call to Order

In the absence of Committee Chairman Cooper, Board Chairman Packer appointed

Commissioner Barkerding to serve as Ad Hoc Chairman for purposes of holding this

meeting only. Ad Hoc Chairman Barkerding determined the presence of a quorum and

called the meeting to order at 3:05 P.M.

B. Public Comment

Ad Hoc Chairman Barkerding called for public comment, but there was none.

C. Briefing and Discussion Items

1. Briefing on and Discussion of an Award of Contract to Industrial & Crane

Services, Inc., for Re-Reeving Devices for Container Cranes No. 8 and No. 9 at

the Napoleon Avenue Container Terminal

Ms. Keller informed the committee that two companies had bid on this project; that

Industrial & Crane Services was the lower bidder at $248,600; and that staff was

recommending the award to this lower bidder. This project will take about 65

calendar days beginning this summer. Commissioner Packer asked if the exclusion of

the re-reeving devices was typical of Doosan. Ms. Fant answered that that company

did supply re-reeving devices. However, it supplied a type of device that was not in

accordance with the Board specification for the item and that obtaining the cost for

the specified re-reeving devices was part of the major settlement with Doosan at the

end of the cranes' construction and erection. At $350,000, this was the largest of a

few line items included in the settlement with Doosan.

Page 5 of 22

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next regularly scheduled meeting.

2. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with U.S. Risk Management, LLC,

for Professional Services for As-Needed Environmental Site Assessments,

Hazards Abatement, and Remediation

Ms. Keller briefed the committee on a contract to U.S. Risk Management, LLC, for

two years at a cost not to exceed $200,000. The staff is currently negotiating a

reasonable and customary hourly rate. Commissioner Packer asked if this was based

on land or water clean-up assessments. Ms. Keller replied it is based on whether or

not it is the Board's responsibility. Staff would resort to this type of contract usually

in limited to small isolated incidents that are directly Board responsibility.

Commissioner Barkerding asked how we would proceed if the incident was large and

exceeded $200,000. Ms. Keller responded those extreme instances would have to be

brought to the Board for action. This contract is for small everyday needs.

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next regularly scheduled meeting.

3. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with U.S. Risk Management, LLC,

for Professional Services for As-Needed Environmental Compliance Assessments

and Guidance Development

Ms. Keller briefed the committee on a contract to U.S. Risk Management, LLC, for a

one-year contract at a cost of $25,000 with the option to renew it for a second year at

the same cost and on the same terms, provided the Board's President and Chief

Executive Officer found the services to be acceptable. Ms. Keller explained that this

contract was necessary to help the Board establish where it stood regarding on site

compliance.

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next regularly scheduled meeting.

4. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with Waldemar S. Nelson &

Company for Professional Services for an As-Needed Storm Water Management

Plan and Water Quality Management

Ms. Keller briefed the committee on a contract to Waldemar S. Nelson & Company

(Nelson) for a one-year contract at a cost of $25,000 with the option to renew for a

second year at the same cost and on the same terms, provided the Board's President

and Chief Executive Officer found the services acceptable. Ms. Keller explained that

Nelson had very impressive credentials regarding storm water runoff management.

Page 6 of 22

She further explained that this contract had DBE/WBE subconsultants. Commissioner

Toomy asked if there were new DEQ regulations, to which Ms. Keller responded that

every year there are updates.

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next regularly scheduled meeting.

5. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with Trigon Associates, LLC, for

Professional Services for As-Needed Emergency Preparedness and Response

Ms. Keller briefed the committee on a contract to Trigon Associates, LLC, for a one-

year contract at a cost of $25,000 with the option to renew for a second year at the

same cost and on the same terms, provided the Board's President and Chief Executive

Officer found the services acceptable. Ms. Keller informed the Board that this was

necessary to produce a policy and procedure manual to help the Port obtain ISO

14001 credentials. This is to prepare the Port better for general emergency

preparedness and response.

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next regularly scheduled meeting.

6. Briefing on and Discussion of an Award of Contract to B & K Contractors, Inc.,

for the Port Administration Building 4th Floor Renovations

Mr. Gallwey told the committee that B&K Contractors was the lower bidder of two at

a price of $41,200 for a contract to add new offices and shift office space between

departments on the fourth floor of the administration building.

After discussion, the committee indicated it would refer this matter favorably to the

Board at its next regularly scheduled meeting.

D. Adjournment

There being no further business to come before the committee, Ad Hoc Committee

Chairman Barkerding adjourned the meeting at 3:30 P.M.

BOARD OF COMMISSIONERS

PORT OF NEW ORLEANS

MINUTES

OF

THE PROPERTY AND INSURANCE

COMMITTEE MEETING

Page 7 of 22

APRIL 21, 2014

A MEETING OF THE PROPERTY AND INSURANCE COMMITTEE OF THE BOARD

OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE

PRESENTATION ROOM ON THE 4TH

FLOOR AT ITS OFFICES AT 1350 PORT OF

NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER

BY COMMITTEE CHAIRMAN MICHAEL W. KEARNEY AT 1:40 P.M. ON MONDAY,

APRIL 21, 2014.

COMMITTEE MEMBERS Michael W. Kearney, Committee Chairman

PRESENT: Joseph F. Toomy, Member

Daniel F. Packer, Jr., Member

William T. Bergeron, Member

Robert R. Barkerding, Jr., Member

MEMBERS ABSENT: Gregory R. Rusovich, Member

Scott H. Cooper, Member

STAFF: G. LaGrange, President & Chief Executive Officer

P. Gallwey, Chief Operating Officer

B. Gussoni, Executive Counsel

C. Bonura, Director, Business Development

P. Zimmerman, Director, Operations

C. Richard, Executive Assistant

M. Rubino, Staff Attorney

W. Stokes, Executive Secretary

N. Lopez, Legal Department

B. Ethridge, Executive Intern

M. Gresham, Executive Assistant, External Affairs

GUESTS: C. Kane, Adams and Reese, LLP

J. Stuckey, Phelps Dunbar, LLP (left at 1:50 P.M.)

J.W. App, J.W. Allen & Co.

C. Jensen, Alvar Properties 1, LLC

R. Kelly, City Business

D. Miranda, Kinney & Ellinghausen

C. Balthazar, River Works (arrived at 1:50 P.M.)

J. Tynan, Montgomery Barnett LLP (arrived at 2:45 P.M.)

A. Determination of Quorum and Call to Order

Committee Chairman Kearney determined the existence of a quorum and called the

meeting to order at 1:36 P.M.

B. Public Comment

Page 8 of 22

Committee Chairman Kearney announced that he would defer public comment if there

was any until after the briefing and presentation of the items.

C. Briefing and Discussion Items

1. Briefing on and Discussion of a Resolution that (1) Determines that the Sale by

the Board to Alvar Industries, LLC (“Alvar”), through an Agreement Regarding

Real Estate (“ARRE”) and Related Documents of 31.24 Acres of Board Property

along Alvar Street in New Orleans, Louisiana, for the Construction Thereon of

an Integrated Global Resin Plastics Packaging Facility (the “Project”) to be in

the Board’s Best Interests and that the Board Expects to Receive Equivalent

Value and Benefit for the Sale of Board Property for this Project; and (2)

Authorizes its President and Chief Executive Officer to Enter into the ARRE

with Alvar, the Act of Sale Transferring the Real Estate and Any Ancillary

Related Agreements, the Assignment and Assumption of Lease Agreement by

the Board to Alvar Regarding the Board’s Lease with Alvar Properties 1, LLC,

and the Servitude Agreement with Alvar. (Mr. Bonura)

Mr. Bonura briefed the Board on the general terms of this transaction. Commissioner

Packer asked for clarity regarding whether or not the property was waterfront. Mr.

Bonura stated that it was not and that there is a flood wall between the waterfront

property and the property in question.

After discussion, the committee indicated it would refer this matter to the entire

Board at its next regularly scheduled meeting.

2. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Amend the Board’s Lease with Star Marine Fleeting, LLC,

to Add to the Leased Premises 1,000 Linear Feet of Water Space on the Right

Descending Bank of the Mississippi River near Mile 91 AHP (Mr. Zimmermann)

Mr. Zimmermann stated that Star Marine Fleeting wished to amend its lease with the

Board to add another 1,000 linear feet of water space adjacent to its current lease of

3,000 linear feet. The company wishes to lease the property at $33 per linear foot, the

same rate as its current lease. This will increase its current yearly payment by

$33,000. Star Marine has agreed to construct all appropriate mooring bits and

structures necessary for its operations and transfer ownership to the Board after their

construction.

3. Briefing on and Discussion of the Purchase of a Fire Protection/Public Safety

Vessel with Department of Homeland Security Port Security Grant Funds

Mr. Zimmerman addressed the committee regarding a $5.5 million federal grant

received by the Board to construct a new fire protection boat. He informed the

committee that the M/V General Roy S. Kelley, the Board's current fire boat, is

approximately 20 years old. He further stated that the construction of a new boat will

Page 9 of 22

cost more than $9 million, and the Board would have to supply any additional

required costs from its own funds, and the Board does not now have any additional

funding available. Mr. Zimmermann also noted the present boat has approximately

another ten years of usefulness if maintained properly. The commissioners discussed

the possibility of scaling back on the new boat's design as well as the possibility of

forfeiting the grant money and abandoning the project. After discussion, the

committee indicated it was inclined to abandon the project and not accept the grant

money.

4. Briefing on and Discussion of Lease Issues with Lake Pontchartrain Properties,

LLC

Mr. Bonura’s briefing was in three parts. The first addressed issues regarding former

tenants which have affected Lake Pontchartrain Properties (LPP). There were initially

two former tenant property tax issues. However, tax issues relating to one of them

have been resolved. Taxes in the amount of $811,880 related to another former tenant

C.F. Bean Dredging (Bean) are still an issue. Bean was a tenant from 1986 to 1990.

Only $46,632 of the outstanding taxes applies to occupancy during Bean's tenancy.

The rest is taxes assessed to Bean after its lease termination and includes interest and

penalties. We are attempting through discussion with the assessor's staff to resolve

these issues and have requested that the assessor remove the taxes, penalties and

interest that were assessed after Bean's lease termination when the ownership of the

property devolved on the Board, which is tax-exempt. If we cannot resolve these

issues with the assessor, they will become part of the lawsuit the Board now has

pending against the assessor with their ultimate resolution in the Louisiana Supreme

Court.

The second part of the briefing regarded security. LPP’s security was set to increase

from $33,803 to $226,840 on January 1, 2014. On January 31, 2014, we suggested a

compromise to reduce the security to $102,000. LPP thought its security should

remain at $33,803 until the tax issues with Bean are resolved. In light of the tax

situation and the impact that it has had on LPP's financing, the President and Chief

Executive Officer has approved that request.

The third part of the briefing related to improvements made by LPP to and on the

leasehold. The improvements as finally constructed do not match the proposed

improvements on the permit drawings which the Board approved. LPP must now

either submit for approval new drawings showing the improvements as built or have

the improvements as built reworked in order to comply with the original drawings

submitted with its permit request. Mr. Bonura reported that the staff is committed to

working these issues out with LPP and that it is just a matter of time before we can

get this resolved.

5. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Page 10 of 22

Executive Officer to Enter into an Agreement with the Orleans Levee District to

Grant a Servitude and Right of Way over a Portion of the Board’s Property

along the France Road Floodwall

Mr. Bonura announced that, since the last time the committee met, the appropriate

authorities have approved the previously discussed servitude. All issues have been

cleared, and this item will be on the agenda for the next regular meeting. The new

servitude allows for a consistent standard width of the servitude and means that less

of the Board’s property is encumbered by the Levee Board's flood prevention

servitude.

After discussion, the committee indicated it would refer this matter favorably to the

entire Board at its next regularly scheduled meeting.

6. Briefing on and Discussion of a Resolution Authorizing the President and Chief

Executive Officer to Enter into an Agreement with Lake Pontchartrain

Properties, LLC (“LPP”) to Amend its Lease to Remove the Eleven Acre Parcel

at 6201 France Road While Contemporaneously Entering into a New Lease with

LPP for that Parcel

This item was not necessary because counsel for the Board and for LPP's lender were

able to negotiate a proposed estoppel agreement without requiring the lease to be

amended in this manner.

7. Briefing on and Discussion of Issues Related to the City of New Orleans’ Draft

Comprehensive Zoning Ordinance

Mr. Bonura told the committee that the staff wrote a letter to the City Planning

Commission (CPC) regarding a number of issues related to its properties. There was a

follow up meeting on March 27, 2014, to discuss the three main issues in that letter.

The first two issues were resolved, and further action will need to be taken to resolve

the third issue. The first issue was that the newly created Maritime Industrial Zone

(created so recreational activities and traditional port activity can co-exist on the

northern IH-NC) does not permit all uses of existing industrial tenants located in

Maritime Industrial Zones. CPC staff will consider adding permitted uses to the

definition of maritime industrial to allow for existing activities and/or change the map

so maritime industrial zoning is limited to the area where there is a mix of

recreational and industrial uses.

The second issue was that provisions related to “Site Plan and Design Review" could

unnecessarily delay projects to develop Board property. CPC staff will consider

making the review apply only when the buildings are within view of a public street.

That would exclude most Board property.

The third issue is that the Board objects to the re-designation of two large tracts of

vacant Board property on the GIWW as Environmentally Sensitive Districts or

Page 11 of 22

Natural Assets, restricting their development potential. No resolution was reached,

but we have a better idea of what the city is trying to accomplish so that we can work

on solutions or defend our property rights.

8. Briefing Update on the Board’s FEMA Funding Reimbursements Related to

Various Hurricanes

Mr. Gallwey announced that Mr. Richard will be retiring at the end of the month, and

that this would be Mr. Richard's final briefing to the committee. Mr. Richard then

briefed the Board regarding FEMA funding reimbursements related to various

hurricanes. He made a power point presentation during which he distributed a

corresponding handout, a copy of which is attached to and made part of these

minutes. Mr. Richard directed the Board’s attention to the first slide titled Recovery

and the second slide titled Close-out and stated he felt the Board was doing well

compared to other applicants with similar claims. He further briefed the Board

regarding close-out options and current FEMA issues.

9. Executive Session

Briefing on the Board’s Claim in that Certain Lawsuit captioned Board of

Commissioners of the Port of New Orleans v. Bollinger Gulf Repair, LLC, Bollinger

Shipyards, Inc., American Marine Corporation, Temporary Marine Company,

Barge Owners 1, 2, and 3, Keasbey & Mattison Company, and Insurance

Companies AB, CD, EF, GH, IJ, KL, MN, OP, QR, ST, UV, and WX, Civil

District Court for the Parish of Orleans, State of Louisiana, Docket No. 11-4077,

Section H-12

At 2:45 P.M. a motion was made by Commissioner Barkerding and seconded by

Commissioner Packer to enter into Executive Session to discuss the Board’s claim in

that certain lawsuit captioned Board of Commissioners of the Port of New Orleans

v. Bollinger Gulf Repair, LLC, Bollinger Shipyards, Inc., American Marine

Corporation, Temporary Marine Company, Barge Owners 1, 2, and 3, Keasbey &

Mattison Company, and Insurance Companies AB, CD, EF, GH, IJ, KL, MN, OP,

QR, ST, UV, and WX, Civil District Court for the Parish of Orleans, State of

Louisiana, Docket No. 11-4077, Section H-12.

Board staff present left the room at this point and returned only when the Executive

Session ended. Mr. Tynan and Mr. Gussoni briefed the committee on the progress of

this litigation and answered any questions raised by the commissioners.

At 3:00 P.M., a motion was made by Commissioner Packer and seconded by

Commissioner Bergeron to end the Executive Session and return to the open meeting.

At that time the Executive Session ended.

Page 12 of 22

D. Adjournment

There being no further business to come before the committee, Committee Chairman

Kearney adjourned the meeting at 3:00 P.M.

BOARD OF COMMISSIONERS

PORT OF NEW ORLEANS

MINUTES

OF

THE EXECUTIVE COMMITTEE MEETING

APRIL 28, 2014

A MEETING OF THE EXECUTIVE COMMITTEE OF THE BOARD OF

COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE

PRESENTATION ROOM ON THE 4TH

FLOOR AT ITS OFFICES AT 1350 PORT OF

NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER

BY COMMITTEE CHAIRMAN DANIEL F. PACKER, JR., AT 9:16 A.M. ON MONDAY,

APRIL 28, 2014.

COMMITTEE MEMBERS Daniel F. Packer, Jr., Chairman

PRESENT: Joseph F. Toomy, Member

Gregory R. Rusovich, Member (arrived at 9:30 A.M.)

Scott H. Cooper, Member

Michael W. Kearney, Member

William T. Bergeron, Member

Robert R. Barkerding, Jr., Member

STAFF: G. LaGrange, President & Chief Executive Officer

P. Gallwey, Chief Operating Officer

B. Gussoni, Executive Counsel

D. Keller, Director, Port Development

B. Landry, Chief Commercial Officer

M. Gresham, Executive Assistant for External Affairs

M. Orlesh, Special Counsel

C. Dunn, Deputy Director, Port Development

M. Rubino, Staff Attorney

W. Stokes, Executive Secretary

N. Lopez, Legal Services

GUESTS: C. Johnsen, Jones Walker, Washington, DC

Page 13 of 22

J. Jaskot, Jones Walker, Washington, DC

(both via conference call)

A. Determination of Quorum and Call to Order

Chairman Packer determined the presence of a quorum and called the meeting to order at

9:16 A.M.

B. Public Comment

Chairman Packer called for public comment, but there was none.

C. Chairman’s Comments

Chairman Packer announced that Commissioner Rusovich would arrive late around 9:30

A.M., but that he would start the meeting in order to complete the agenda.

D. President & Chief Executive Officer’s Comments

Mr. LaGrange had no comments.

E. Briefing and Discussion Items

1. Consider Approval of a Resolution Expressing Condolences to the Family of

David A. Wagner, Retired Chief Operating Officer of the Port of New Orleans

Mr. Orlesh briefed the committee on this matter, and the committee indicated it would

refer the matter favorably to the Board at the regularly scheduled meeting later that

morning.

2. Consider Approval of a Resolution Expressing Condolences to the Family of

Francis E. “Hank” Lauricella, Former Chairman of the Board

Chairman Packer briefed the committee on this matter, and the committee indicated it

would refer the matter favorably to the Board at the regularly scheduled meeting later

that morning.

3. Update on State Legislation

Mr. Gresham addressed the committee and passed out a summary of the pending bills

of interest, a copy of which is incorporated into these minutes. He addressed DOTD's

backlogged projects, speaking on the Port Construction Development Program, Port

Priority Program, and HB2 (the annual capital outlay bill). These items are

recommended for a funding level of $19.7 million. This has been the level set since

2008, and DOTD appears to be comfortable with it. Mr. Gresham continued by

addressing House Bill 788, which authorizes the expansion of the convention center.

Page 14 of 22

He alerted the committee to an amendment in the bill from last year, prohibiting the

expansion from interfering or altering any Port property. This bill is currently in the

Senate Revenue and Fiscal Affairs Committee and has already passed through the full

House of Representatives. He concluded by stating that last Thursday the Board’s two

Harbor Police retirement bills moved through the House Retirement Committee. This

includes the bill to transfer the Harbor Police Retirement System into LASERS.

4. Update on Federal Legislation

Mr. Johnsen addressed the Committee via a conference call. He alerted the committee

that Mr. J.J. Jaskot was also on the call. Mr. Johnsen reported on the status of the

Water Resources and Development Act (WRDA). He announced that Senator Vitter,

who is the ranking Republican on the Environmental and Public Works Committee,

has been very helpful and that the whole Louisiana congressional delegation has been

helpful in various ways. He addressed WRDA’s impact on the Port of New Orleans by

stating that he anticipates significant reform in how the Harbor Maintenance Trust

Fund is managed.

5. Report on Cargo Activity

Mr. Landry reported that cargo activity has been positive. He announced that, for the

first nine months of this fiscal year, inbound cargo has grown by about 5% and export

cargo has grown by 2.6%.

6. Briefing on FY 2014 TIGER VI Grant Application for Mississippi River Marine

Terminal Improvements

Ms. Keller distributed a handout, a copy of which is incorporated into these minutes.

She briefed the committee on the grant’s progress and announced that the Board has

several letters of support for the grant. Ms. Keller asked Ms. Dunn if she knew when a

decision would be made. Ms. Dunn stated that, according to conference calls she has

been participating in, she believes a decision will be announced in August or

September of this year.

7. Report on Vessel Calls

Mr. LaGrange announced that 100 vessels came to call in March this year as opposed

to 79 vessels in March, 2013. He said that year to date the port has had 284 vessels

come to call in 2014 versus 236 year to date in 2013.

F. Other Business

Chairman Packer with the concurrence of the other commissioners called for further

discussion of Item C4 (a contract with Ray Lauga, Inc.) from the Budget Committee

meeting of the week prior. There was some discussion as to how the Budget

Committee concluded its discussion of this item. Commissioner Packer called for Mr.

Page 15 of 22

Gallwey to re-make his presentation to the Budget Committee so that the

commissioners absent from that meeting could understand the item. Mr. Gallwey then

repeated his briefing of a week ago. Commissioner Bergeron reiterated his previous

concerns from that meeting that this function might be better served with a full-time

employee and not an independent contractor. The Commissioners discussed the issues

and decided to refer the matter to the Board for a vote at the regular meeting later that

morning.

G. Adjournment

There being no further business to come before the committee, Committee Chairman

Packer adjourned the meeting at 11:10 A.M.

BOARD OF COMMISSIONERS

PORT OF NEW ORLEANS

MINUTES

OF

THE REGULAR MEETING

OF

APRIL 28, 2014

MEETING NO. 10, FISCAL YEAR 2014, A REGULAR MEETING OF THE BOARD OF

COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE MAIN

AUDITORIUM AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW

ORLEANS, LOUISIANA, WAS CALLED TO ORDER AT 11:19 A.M. ON THURSDAY,

APRIL 28, 2014, BY CHAIRMAN DANIEL F. PACKER, JR.

COMMITTEE MEMBERS Daniel F. Packer, Jr., Chairman

PRESENT: Gregory R. Rusovich, Vice-Chairman

Scott H. Cooper, Secretary-Treasurer

Joseph F. Toomy, Member

Michael W. Kearney, Member

William T. Bergeron, Member

Robert R. Barkerding, Jr., Member

STAFF: G. LaGrange, President & Chief Executive Officer

P. Gallwey, Chief Operating Officer

B. Gussoni, Executive Counsel

D. Keller, Director, Port Development

E. Pansano, Director, Internal Audit

S. Ordoyne, Executive Assistant

G. Hager, Director, Human Resources

Page 16 of 22

A. Fant, Deputy Director, Operations

T. Martin, Manager, Services and Contract Administration

M. Rubino, Staff Attorney

N. Lopez, Legal Services

D. Austin, Port Development

N. Polk, Communications

A. Brandenburg, Internal Audit

B. Parent, Internal Audit

P. Herring, Internal Audit

P. Matthews, Executive Assistant

R. Aragon-Dolese, Manager, Communications

J. Crist, Industrial Development

A. Pellegrin, Environmental Compliance Manager

J. Brown, Operations

D. Guarino, Port Development

C. Dunn, Deputy Director, Port Development

GUESTS: C. Kane, Adams & Reese LLP.

R. Kelly, City Business

T. Dodd, U.S. Risk Management, LLC

T. Wells, Waldemar S. Nelson & Co.

M. Waguespack, Waldemar S. Nelson & Co.

J. Jensen, Transportation Consultants, Inc.

W. Evans, URS

R. Lauga, Ray Lauga Inc.

C. Donner, JLL

M. Mata, MDM

I. Determination of Quorum and Call to Order

Board Chairman Packer determined the presence of a quorum and called the meeting to

order at 11:19 A.M.

II. Pledge of Allegiance

Board Chairman Packer asked Commissioner Barkerding to lead the Board and the

audience in saying the Pledge of Allegiance, and he did so.

III. Approval of the Minutes from the March, 2014 Meetings

On motion duly made by Commissioner Rusovich and seconded by Commissioner

Toomy, the Board unanimously approved the minutes of its meetings of March, 2014, as

previously circulated.

IV. Acceptance of Financial Statement for March, 2014

Page 17 of 22

On motion duly made by Commissioner Toomy and seconded by Commissioner

Kearney, the Board unanimously accepted the March, 2014, Financial Statement as

previously circulated.

V. Public Comment

Board Chairman Packer announced that the meeting was open to the public and asked if

any member of the public present would like to comment. There were no requests to

address the Board.

VI. Actions Required

A. Consider Award of a Contract to Industrial & Crane Services, Inc., for Re-

Reeving Devices for Container Cranes No. 8 and No. 9 at the Napoleon Avenue

Container Terminal

Ms. Keller asked the Board to consider an award of a contract to Industrial & Crane

Services, Inc., for re-reeving devices for Container Cranes No. 8 and No. 9 at the

Napoleon Avenue Container Terminal. She advised that two companies had bid on

this project and that Industrial & Crane Services was the lower bidder at $248,600.

This project will take about 65 calendar days and will begin this summer.

Commissioner Cooper advised the Board that the Planning and Engineering

Committee had met and reviewed the award of this contract with staff, and he moved

for its approval. Commissioner Rusovich seconded the motion. MOTION

CARRIED UNANIMOUSLY.

B. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with U.S. Risk Management, LLC,

for Professional Services for As-Needed Environmental Site Assessments,

Hazards Abatement, and Remediation

Ms. Keller asked the Board to consider an award of a contract to U.S. Risk

Management, LLC, for a period of two years at a cost not to exceed $200,000.

Commissioner Cooper advised the Board that the Planning and Engineering

Committee had met and reviewed the award of this contract with staff, and he moved

for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED

UNANIMOUSLY.

C. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with U.S. Risk Management, LLC,

for Professional Services for As-Needed Environmental Compliance Assessments

and Guidance Development

Page 18 of 22

Ms. Keller asked the Board to consider an award of a contract to U.S. Risk

Management, LLC, for a one-year contract at a cost not to exceed $25,000 with the

option to renew for a second year at the same cost and on the same terms. Ms. Keller

explained that this contract was necessary to help the Board establish a base line

regarding on-site environmental compliance.

Commissioner Cooper advised the Board that the Planning and Engineering

Committee had met and reviewed the award of this contract with staff, and he moved

for its approval. Commissioner Rusovich seconded the motion. MOTION

CARRIED UNANIMOUSLY.

D. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with Waldemar S. Nelson &

Company for Professional Services for an As-Needed Storm Water Management

Plan and Water Quality Management

Ms. Keller asked the Board to consider an award of a contract to Waldemar S. Nelson

& Company for a one-year contract at a cost not to exceed $25,000 with the option to

renew for a second year at the same cost and on the same terms. Ms. Keller explained

that Waldemar S. Nelson has very impressive credentials regarding storm water

runoff management.

Commissioner Cooper advised the Board that the Planning and Engineering

Committee had met and reviewed the award of this contract with staff, and he moved

for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED

UNANIMOUSLY.

E. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Contract with Trigon Associates, LLC, for

Professional Services for As-Needed Emergency Preparedness and Response

Ms. Keller asked the Board to consider an award of a contract to Trigon Associates,

LLC, for a one-year contract not to exceed $25,000 with the option to renew for a

second year at the same cost and on the same terms. Ms. Keller informed the Board

that this was necessary to produce a policy and procedure manual to help the Port

obtain ISO 14001 credentials. This is to better the Port for general emergency

preparedness and response.

Commissioner Cooper advised the Board that the Planning and Engineering

Committee had met and reviewed the award of this contract with staff, and he moved

for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED

UNANIMOUSLY.

F. Consider Award of a Contract to B&K Contractors, Inc., for the Port

Administration Building 4th Floor Office Renovations

Page 19 of 22

Mr. Gallwey asked the Board to consider an award of a contract to B&K Contractors,

Inc., for the port administration building 4th floor office renovations. B&K

Contractors was the lowest bidder at a price of $41,200.

Commissioner Cooper advised the Board that the Planning and Engineering

Committee had met and reviewed the award of this contract with staff, and he moved

for its approval. Commissioner Kearney seconded the motion. MOTION CARRIED

UNANIMOUSLY.

G. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Amend the Board’s Lease with Star Marine Fleeting, LLC,

to Add to the Leased Premises 1,000 Linear Feet of Water Space on the Right

Descending Bank of the Mississippi River near Mile 91 AHP

Mr. Zimmermann asked the Board to consider approval of a resolution authorizing

the President and Chief Executive Officer to amend the Board’s lease with Star

Marine Fleeting, LLC, to add to the leased premises 1,000 linear feet of water space

on the right descending bank of the Mississippi River near Mile 91 AHP. He reported

that Star Marine has asked to lease the property for the same amount as its current

lease rate of $33 per linear foot. This will increase its current annual rent by $33,000.

Commissioner Kearney advised the Board that the Property and Insurance Committee

had met and reviewed this matter with staff, and he moved for its approval.

Commissioner Cooper seconded the motion. MOTION CARRIED

UNANIMOUSLY.

H. Consider Approval of a Resolution by the Board of Commissioners of the Port of

New Orleans that (1) Determines That the Sale by the Board to Alvar Industries,

LLC (“Alvar”), through an Agreement Regarding Real Estate (“ARRE”) and

Related Documents, of 31.24 Acres of Board Property along Alvar Street in New

Orleans, Louisiana, for the Construction Thereon of an Integrated Global Resin

Plastics Packaging Facility (the “Project”) to be in the Board’s Best Interests

and that the Board Expects to Receive Equivalent Value and Benefit for the Sale

of Board Property for this Project; and (2) Authorizes its President and Chief

Executive Officer to Enter into the ARRE with Alvar, the Act of Sale

Transferring the Real Estate and Any Ancillary Related Agreements, the

Assignment and Assumption of Lease Agreement by the Board to Alvar

Regarding the Board’s Lease with Alvar Properties 1, LLC, and the Servitude

Agreement with Alvar.

Mr. Bonura asked the Board to consider approval of this resolution. Commissioner

Bergeron commented that he supports the project conceptually and from an economic

development standpoint, but not in the manner in which it is structured. He is opposed

to selling Board assets. He said he would be in favor of a long-term lease with

favorable concessions which he believed was the preferable structure for this project.

He expressed his opinion that the Board would lose recurring revenue from lost rent

Page 20 of 22

and that it would affect the Board’s future operating budget, which relies on rental

properties.

Commissioner Rusovich stated this was an exciting day for the region. He said that

for many years the Port has seen petrochemical products and cargo head to other

competing ports, particularly to Houston. Commissioner Rusovich expressed his

opinion that it is a great opportunity to have this infrastructure and compatibility, and

he believes there will be an enormous positive economic impact resulting from this

deal. Commissioner Toomy spoke in support of the project and reiterated many of

Commissioner Rusovich’s views.

Commissioner Kearney advised the Board that the Property and Insurance Committee

had met and reviewed the matter with staff, and he moved for its approval.

Commissioner Toomy seconded the motion. MOTION CARRIED 6 to 1 with

Commissioner Bergeron voting no.

I. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into an Agreement with the Orleans Levee District to

Grant a Servitude and Right of Way over a Portion of the Board’s Property

along the France Road Floodwall

Mr. Bonura asked the Board to consider approval of a resolution authorizing the

President and Chief Executive Officer to enter into an agreement with the Orleans

Levee District (OLD) to grant to OLD a servitude and right of way over a portion of

the Board’s property along the France Road floodwall for construction, operation and

maintenance of flood prevention structures.

Commissioner Kearney advised the Board that the Property and Insurance Committee

had met and reviewed the matter with staff, and he moved for its approval.

Commissioner Barkerding seconded the motion. MOTION CARRIED

UNANIMOUSLY.

J. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Professional Services Agreement with KPMG

Corporate Finance, LLC, to Provide Financial Advisory Services for the

Purpose of Evaluating the Potential for a Public/Private Partnership

Mr. Gallwey asked the Board to consider approval of a resolution authorizing the

President and Chief Executive Officer to enter into a professional services agreement

with KPMG Corporate Finance, LLC, to provide financial advisory services for the

purpose of evaluating the potential for a public/private partnership. He said that it

was the recommendation of the staff committee to hire KPMG Corporate Finance,

LLC, after it had completed the process of reviewing various candidates.

Commissioner Rusovich advised the Board that the Property and Insurance

Committee had met and reviewed the matter with the staff, and he moved for its

Page 21 of 22

approval. Commissioner Cooper seconded the Motion. MOTION CARRIED

UNANIMOUSLY.

K. Consider Approval of a Resolution Authorizing the President and Chief

Executive Officer to Enter into a Professional Services Contract with Ray

Lauga, Inc., for the Administration and Management of the Capital Projects

Office, including FEMA and Homeland Security Funding and the Capital

Improvement Program

Mr. Gallwey asked the Board to consider a resolution to enter into a contract with

Ray Lauga, Inc., to manage the Board’s capital projects. Mr. Gallwey explained that

the current administrator Mr. Richard was retiring and the Board needed to fill this

vacancy.

Commissioner Rusovich advised the Board that the Budget Committee had met and

reviewed this matter with staff, and he moved for its approval. Commissioner Cooper

seconded the motion. MOTION CARRIED UNANIMOUSLY.

L. Consider Approval of a Resolution Expressing Condolences to the Family of

David A. Wagner, Retired Chief Operating Officer of the Port of New Orleans

Mr. Orlesh read into the minutes of this meeting a resolution expressing the

condolences of the Board to the family of the late Mr. Wagner.

Commissioner Bergeron said that he had had the opportunity to work with Mr.

Wagner and spoke of his esteem for him and of Mr. Wagner's good character.

Commissioner Packer advised the Board that the Executive Committee had met and

reviewed this matter with staff, and he moved for its approval. Commissioner Cooper

seconded the motion. MOTION CARRIED UNANIMOUSLY.

M. Consider Approval of a Resolution Expressing Condolences to the Family of

Francis E. “Hank” Lauricella, Former Chairman of the Board

Chairman Packer read into the minutes of this meeting a resolution expressing the

condolences of the Board to the family of the late former Chairman Lauricella.

Commissioner Toomy expressed his admiration of Chairman Lauricella and referred

to him as a gentleman.

Chairman Packer advised the Board that the Executive Committee had met and

reviewed this matter with staff, and he moved for its approval. Commissioner Toomy

seconded the motion. MOTION CARRIED UNANIMOUSLY.

VII. Report by the President and Chief Executive Officer

Page 22 of 22

Mr. LaGrange began by referring to Mr. Wagner and Chairman Lauricella as two of

the best men he had ever met. He then spoke very highly of both of their characters.

After addressing the two resolutions, Mr. LaGrange called on Commissioner

Barkerding to read a letter from Commissioner Barkerding's sister, who attended a

group function aboard the M/V General Kelley, the Board’s fire boat. The letter

thanked the Port staff for the way the function was conducted.

Next, Mr. LaGrange read a letter from the New Orleans American Red Cross

thanking the Board for its participation in recycling Mardi Gras beads and for its

support of individuals with intellectual disabilities.

Last, Mr. LaGrange announced that vessel calls were up year to date compared to last

year.

VIII. Old Business

There was no old business before the Board.

IX. New Business

There was no new business before the Board.

X. Adjournment

There being no further business to come before the Board, the meeting was adjourned

by Chairman Packer at 11:58 A.M.

NEXT MEETING:

11:00 A.M., Thursday May 22, 2014