BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING MARCH 26, 2012

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1 BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING MARCH 26, 2012 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 COMMITTEE CHAIRMAN JOSEPH F. TOOMY, AT 1:38 P.M., ON MONDAY, MARCH 26, COMMITTEE MEMBERS PRESENT: COMMITTEE MEMBER ABSENT: STAFF: GUESTS: Joseph F. Toomy, Committee Chairman John F. Fay, Jr., Member Valerie S. Cahill, Member Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member (arrived at 2pm) Scott H. Cooper, Member J. Wayne Mumphrey, Member G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel B. Landry, Director, Marketing E. Pansano, Director, Internal Audit J. Ruckert, Director, Finance & Information Technology J. Lynch, General Counsel S. Fauria, Director, Information Technology M. Rubino, Staff Attorney, Legal Services John Holt, Government Consultants, Inc. Shaun Toups, Government Consultants, Inc. Lee M. Bressler, Morgan Keegan/Raymond James Page 1 of 22

2 I. Determination of Quorum Committee Chairman Toomy determined the presence of a quorum and called the meeting to order. II. Public Comment Committee Chairman Toomy called for public comment, but there was none. III. Review of February, 2012, Financial Statement and Accounts Receivable Mr. Ruckert discussed the February, 2012, monthly and year-to-date performances and provided an analysis comparing Fiscal Year 2012 to Fiscal Year He also discussed the aging accounts receivable memorandum for February, 2012, copies of which are incorporated into these Minutes. Chairman Toomy said he would recommend acceptance of the February, 2012, financial statement to the Board at its next regularly scheduled meeting. During this presentation, Mr. LaGrange indicated that 107 ships called at Port docks in February and that in March there will be 111 ship calls. He said that, until February, 99 ship calls were the highest ever in the Port s history. Mr. Ruckert said that during February, 2012, Heniff Transportation continued to be a problem because of not paying its water bills on a monthly basis. The outstanding amount is $13,156, which is six months of water charges. Commissioner Fay asked Mr. Ruckert if the Port is paying out of pocket for this, to which Mr. Ruckert replied it is. Commissioner Fay asked if the Port could shut off the water, to which Mr. Ruckert replied we could, but that we try very hard not to do something that drastic. Commissioner Toomey suggested that we put them on a cash basis for water charges. Mr. Ruckert will follow up on this with Heniff. Mr. Ruckert told the commissioners that, other than Heniff, there are no real significant changes in the accounts receivable from last month. IV. Briefing and Discussion Items A. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with JPI, LLC, d/b/a JPI Data Resource for the Purchase and Installation of an Enterprise Content Management System (Laserfiche Rio 100) and for the Training and Maintenance Related to IT, not to exceed $258,000 (Mr. Ruckert and Mr. Fauria) Page 2 of 22

3 Mr. Sidney Fauria, Director of Information Technology for the Board, explained that the Board had sent out Requests for Proposals to companies who could provide an electronic content management system (ECM) for the Board which would greatly improve the ability of employees to track documents, share documents across departments, increase records retention functionality, etc. After receiving a response from four companies, the staff distilled the selection process down to two companies. After further investigation, the ECM Committee decided that Laserfiche was the best product for the Board s needs. Commissioner Toomey asked Mr. Ruckert for more information on this agenda item, which was missing from the commissioners packets. Mr. Ruckert assured the commissioners that they would receive this information prior to Thursday s public meeting. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. B. Briefing on Trip to New York City to Visit Moody's and Standard and Poor s (S&P) Mr. Ruckert told the commissioners that Mr. LaGrange, Mr. John Holt, and he had met with Moody s and S&P in New York, where they made a presentation for the rating agencies analysts. The emphasis of the meeting was that revenues are up for the Port of New Orleans and that everything is looking up at the Port. The agencies indicated that they want to see the Port s facilities before they decide whether to upgrade its rating. Mr. Toups indicated that the ratings agencies have a sense that the Port s finances are going forward, but will better understand this once they see things at the Port for themselves. The discussion of the refinancing of the Port s bond obligations continued. Mr. Holt explained that the Port is considering an application to the bond commission in May and that he is getting a team of bond experts together to address the whole issue. He indicated that we can t start this till we go to the bond commission and that we have to be on the list for 30 days before we have a window of opportunity to refinance the bonds, noting that the market will dictate at that time what we can do. He also reminded the commissioners that the Port will not be upgraded to an A rating until the ratings agencies come to the Port to see our operations. A discussion was had of the need to have the different firms that know the market make a presentation of their proposals to the Board. Stevens, Morgan Keegan, and Loop Capital would be asked to make presentations to this committee at its April 23, 2012, meeting on the viability of various proposals. Page 3 of 22

4 C. Report on Critical Commodities Conference V. Adjournment Mr. LaGrange asked Mr. Landry, Director of Marketing, to address this item. Mr. Landry explained that this fourth annual conference would take place from April 10 to 12 and that the exhibition space has already been completely sold out. Mr. LaGrange indicated that 320 people were already enrolled and that he expects between 400 to550 attendees. Commissioner Cahill expressed her interest in seeing other service providers besides this year s provider Southern Sales considered in the selection process for next year s conference. She asked to see a breakout of the fee schedule and indicated that she wants to see the process open up to other candidates. Mr. Landry explained that he would have to get the co sponsor of this event on board, but that now is the time in the planning stage to do this. Mr. Landry said that he would provide a cost-benefit analysis and show Commissioner Cahill the rate of return. There being no further business to come before the Committee, Committee Chairman Toomy adjourned the meeting at 2:32 P.M. BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS MINUTES OF THE PROPERTY AND INSURANCE COMMITTEE MEETING MARCH 26, 2012 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 4 TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY COMMITTEE CHAIRMAN JOHN F. FAY, JR., AT 2:35 P.M. ON MONDAY, MARCH 26, COMMITTEE MEMBERS PRESENT: John F. Fay, Jr., Committee Chairman Valerie S. Cahill, Member Joseph F. Toomy, Member Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member Scott H. Cooper, Member Page 4 of 22

5 COMMITTEE MEMBER ABSENT: STAFF: VISITOR PRESENT: J. Wayne Mumphrey, Member G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel B. Landry, Director, Marketing C. Miller, Director, Business Development E. Pansano, Director, Internal Audits J. Lynch, General Counsel C. Donner, Business Development M. Rubino, Staff Attorney C. Balthazar, RiverWorks I. Determination of a Quorum Committee Chairman Fay determined the existence of a quorum and called the meeting to order at 2:35 P.M. II. Public Comment Committee Chairman Fay called for public comment, but there was none. III. Briefing and Discussion Items A. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with TCI Packaging, LLC, to Lease the Esplanade Avenue Wharf Shed Mr. Donner told the commissioners that TCI Packaging is currently leasing part of the Governor Nicholls Street and Esplanade Avenue sheds under a month-tomonth agreement for general cargo storage and shipping operations and that the Board has already approved a longer-term lease with TCI at Governor Nicholls which begins June 1, He then explained the basic terms of the Esplanade Avenue lease agreement and the intended business operations of TCI for the leased premises as follows: TCI intends to improve the property at its own cost and set up a PVC resin bagging operation at the Esplanade Avenue shed. The PVC resin will be brought to the shed via railcars and pumped into the shed. The product will then be bagged into super sacks and brought by forklift into the Governor Nicholls Street shed where it will be loaded into containers and brought uptown for export. The initial term is from April 1, 2012, to May 31, 2013, which is the same time as construction at Gov. Nicholls Street will be going on, with rent at $198,000 per Page 5 of 22

6 year, and the primary term is from June 1, 2013, to May 31, 2018, with rent at $247, per year. Commissioner Rusovich suggested that we use this project to market the Port of New Orleans capability to support this type of business operation. Mr. Landry agreed and suggested that perhaps we could get this information out to the Louisiana Chemical Association. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. B. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Submit a Subdivision Letter of Request to the City Planning Commission of the City of New Orleans to Subdivide Board Property at 3601 Alvar Street Mr. Donner said that TCI Packaging has entered into a purchase agreement for 13 acres of Board-approved surplus property (unimproved) along Alvar Street. In order for the Board to sell this portion of the property (which consists of acres), it must first be subdivided and recorded with the City of New Orleans. The subdivision will create four lots located at 3601 Alvar Street between Almonaster Avenue and France Road Parkway. The four lots (before official subdivision) are being utilized as follows: Lot acres (currently leased to New Orleans Terminal LLC) Lot acres (currently leased to New Orleans Cold Storage) Lot acres (to be sold to TCI Packaging) Lot acres (currently leased to Southern Intermodal) The first step in the subdivision process is to submit a Subdivision Letter of Request to the City Planning Commission of the City of New Orleans. This letter requires a Board Resolution and signature of the President and Chief Executive Officer of the Port of New Orleans. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. IV. Adjournment There being no further business to come before the Committee, Committee Chairman Fay adjourned the meeting at 2:55 P.M. Page 6 of 22

7 BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS MINUTES OF THE PLANNING AND ENGINEERING COMMITTEE MEETING MARCH 26, 2012 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 4 TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY COMMITTEE CHAIR VALERIE S. CAHILL AT 2:58 P.M., ON MONDAY, MARCH 26, COMMITTEE MEMBERS PRESENT: COMMITTEE MEMBER ABSENT: STAFF: GUESTS: Valerie S. Cahill, Chair John F. Fay, Jr., Member Joseph F. Toomy, Member Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member Scott H. Cooper, Member (left at 3:50 P.M.) J. Wayne Mumphrey, Member G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel D. Keller, Director, Port Development (left at 3.28 P.M.) E. Pansano, Director, Internal Audit P. Zimmerman, Director, Operations J. Lynch, General Counsel M. Rubino, Staff Attorney Carol Balthazar, RiverWorks Jeff Boos, Shaw Group (present for the Executive Session only) Michael Weiner, Esq. (present for the Executive Session only) I. Determination of Quorum Page 7 of 22

8 Committee Chair Cahill determined the presence of a quorum and called the meeting to order at 2:58 P.M. II. Public Comment Committee Chair Cahill called for public comment, but there was none. III. Briefing and Discussion Items A. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with McDonnel Primus Joint Venture for the Riverfront Cold Storage Facility Project to Provide Additional Fire Hydrants to the Site - Ms. Keller advised the committee members that additional fire hydrants are needed at the site as required by the State Fire Marshal. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. B. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Secam Technologies, Inc., for As-Needed Construction Inspection Services - Ms. Keller advised the committee members that this item concerns the competitive process of consultant selection and that this and the following three items on the agenda are in response to the time lines and capital improvement schedule for various items. She explained that, because of the fluctuations in the Port s construction needs, it is more economical to keep a low in-house level of employees and supplement work demands with outsourcing. She explained that the rates for outsourced contracts are very competitive with hiring employees long-term. This particular contract is not to exceed $150,000. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. C. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Ray Lauga, Inc., for As-Needed Construction Administration Services - Ms. Keller advised the committee members that this item concerns the competitive process of consultant selection. She explained once again that, because of the fluctuations in the Port s construction needs, it is more economical to keep a low in-house level of employees and supplement work demands with outsourcing. She explained that the rates for outsourced contracts are very competitive when compared with hiring employees long-term. This particular contract is not to exceed $75,000. Page 8 of 22

9 After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. D. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Professional Services Contract with ECM Consultants, Inc., for Governor Nicholls Street Shed and Nashville Avenue Shed A Improvements - Ms. Keller advised the committee members that this item concerns the competitive process of consultant selection. She explained that, because of the fluctuations in the Port s construction needs, it is more economical to keep a low in-house level of employees and supplement work demands with outsourcing. She explained that the rates for outsourced contracts are very competitive with hiring employees long-term. Ms. Keller explained that this contract involves the rehabilitation to the exterior of the building, and in the case of the Nashville Avenue Shed, there is almost 750,000 square feet of roofing that actually holds up the walls of the shed which needs some improvement. This particular contract is not to exceed $250,000. There was some discussion with the commissioners concerning the possibility of using solar panels for the Nashville shed roof. Commissioner Packer raised the issue. Commissioner Fay said that we should look into this because of the number of buildings owned by the Board. Ms. Keller indicated that she would study the solar issues and work with a solar technology expert in this industry and report back to the Board on this. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. E. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Perez, APC, for As- Needed Architectural Services - Ms. Keller advised the committee members that this item concerns the competitive process of consultant selection. She said that this architectural work concerns the Board s sheds. This particular contract is not to exceed $125,000. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. F. Executive Session Briefing on and Discussion of the Board s Claim in the Lawsuit Board of Commissioners of the Port of New Orleans v. New Orleans Terminal, LLC, et al., Civil Action No on the Docket of the U.S. District Court for the Eastern District of Louisiana, and of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract Page 9 of 22

10 with Rigging International, Inc., for Nashville Avenue Container Crane #4 Boom and Related Component Repairs On motion of Commissioner Packer and seconded by Commissioner Fay, the Committee went into Executive Session at 3:20 P.M. Mr. Gallwey, Mr. Zimmermann, Mr. Gussoni, Mr. Weiner, the Port s outside counsel for this litigation, and Mr. Boos, the Board s engineer who oversaw the Crane No. 4 repair work, briefed the Board on these matters and answered any questions they raised. At 3:50 P.M., the Committee came out of the executive session and indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. G. Briefing on and Discussion of a Resolution Approving the Purchase of a Hydraulic Crane from Scott Construction Equipment Company Mr. Zimmermann advised the Committee that there had been only one bidder for this contract for the purchase of a 400B 10-ton standard mount hydraulic crane in the amount of $89, from Scott Construction Equipment Company. After discussion, the Committee indicated it would refer this item favorably to the Board at its next regularly scheduled meeting. IV. Adjournment There being no further business to come before the Committee, Committee Chair Cahill adjourned the meeting at 3:55 P.M. BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS MINUTES OF THE EXECUTIVE COMMITTEE MEETING Page 10 of 22

11 MARCH 29, 2012 A MEETING OF THE EXECUTIVE 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 AT 9:38 A.M. BY COMMITTEE CHAIRMAN J. WAYNE MUMPHREY ON THURSDAY, MARCH 29, COMMITTEE MEMBERS PRESENT: STAFF: VISITORS: J. Wayne Mumphrey, Chairman Valerie S. Cahill, Vice-Chair Joseph F. Toomy, Secretary-Treasurer John F. Fay, Jr., Member Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member Scott H. Cooper, Member G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Director, Legal Services B. Landry, Director, Marketing E. Pansano, Director, Internal Audit J. Lynch, General Counsel, Legal Services M. Gresham, Legislative Liaison Valsin A. Marmillion, America s Wetlands Foundation Buddy Boe, America s Wetlands Foundation C.J. Blache, Roedel Parsons I. Call to Order Chairman Mumphrey called the meeting to order at 9:38 AM. II. Determination of a Quorum Chairman Mumphrey determined the presence of a quorum. III. Public Comment There was no request for public comment. IV. Chairman s Comments Page 11 of 22

12 Chairman Mumphrey made no comments. V. President and Chief Executive Officer s Comments Mr. LaGrange made no comments. VI. Presentation by America s Wetlands Mr. LaGrange introduced to the commissioners and staff Mr. Valsin A. Marmillion, the Managing Director of America s Wetlands Foundation. Mr. Marmillion gave a slide presentation of a new initiative of his organization The Big River Works: Building Cooperation for a Sustainable Mississippi River System. This presentation gave an overview and highlighted the key components of the new initiative, including the projected outcome and goals. Providing a framework for constructive dialogue to build cooperation among all of the stakeholders from 31 states in the Mississippi watershed is a big part of the strategic process of the initiative, with the goal of reaching consensus on sound public policy. The Port of New Orleans was asked to lend its support by agreeing to serve on the steering committee to help generate funding for the initiative and participate in a variety of important ways along with other distinguished members, such as New Orleans Mayor Mitch Landrieu, who has already agreed to serve on the steering committee. VII. Briefing and Discussion of a Resolution Expressing the Support of the Board of Commissioners of the Port of New Orleans for the New Orleans Visitors & Convention Bureau s Efforts for Passage in the 2012 Session of the Louisiana Legislature of SB 342 to Extend the Louisiana Tax Free Shopping Commission Until June 30, Mr. LaGrange and Mr. Gussoni informed commissioners that the New Orleans Visitors and Convention Bureau (NOVCB) had approached the Board to ask for its support to try to extend the existence of the Louisiana Tax Free Shopping Commission through June 30, The program which that commission oversees returns to state coffers $1.80 for each tax dollar rebated. The law creating the commission is set to expire on June 30, 2013, but the NOVCB is trying to get it extended at this legislative session. Mr. LaGrange said he recommends that this Board support the NOVCB in this initiative. After discussion, the Committee indicated it would refer this item favorably to the Board at its regularly scheduled meeting later this morning. VIII. Financial Disclosure Report Deadline The commissioners were advised that, pursuant to La. R.S. 42:1114, the Louisiana State Ethics Commission requires each commissioner as a public servant to complete a financial disclosure statement. Copies of the statement form were passed out, and the commissioners were advised that this disclosure form is due to the Ethics Commission by Page 12 of 22

13 May 15, IX. Tax Credit Update Mr. LaGrange and Mr. Landry reported that we are continuing to discuss this matter with the Louisiana Department of Economic Development and its staff, who are re-analyzing the economic impact of the law and the resulting impact on the tax credit program. They have hired a consulting firm to look at the numbers. We continue to discuss it with them, but there is no hard date set for implementation. X. Legislative Update The commissioners were given a status briefing on the 2012 Regular Session of the Louisiana Legislature s activities through the third week of the session by Mr. C.J. Blanche and Mr. Matt Gresham. A briefing paper was handed out, a copy of which is made part of these Minutes. Several initiatives of interest to the Board concerning its Capital Outlay funding requests were discussed, those being the $10.16 million for the Milan Upland Yard Improvements, which will redevelop the 10.5 acre site adjacent to the Napoleon Intermodal Rail Yard and add an estimated 65, 000 TEU capacity to the Napoleon Avenue Container Terminal, and the Poland Avenue Cruise Terminal project. Mr. Gresham indicated that the only approved project is for the Poland Avenue Cruise Terminal, but, because it is ranked eighth in priority on the State s list of port priority and development programs, the Port is approximately two years from having the State s $ million share available. Also discussed were other legislative proposals of interest to the Board involving different issues such as modernizing the Harbor Police Retirement System (which is unlikely to be addressed this year), forgiveness of the debt owed by political subdivisions which borrowed money from the State for the payment of debt service pursuant to the Gulf Opportunity Zone Act of 2005 (which unfortunately appears not to be moving forward), and authorization of ports to utilize the design-build method for certain projects. Other proposals such as the creation of the Downman Road Economic Development District, the creation of the New Orleans Hospitality District, and the creation of the Louisiana International Trade Initiative (which has opposition and therefore will be dropped as a proposal) were also briefly discussed. XI. Board Retreat May 16 & 17, 2012 Mr. LaGrange said that the agenda for the Board Retreat is being developed and that Ms. Lori Bear has been chosen to be the facilitator. XII. Federal Reserve Board Transportation Council Report Mr. LaGrange indicated that within the Federal Reserve there is a difference in opinion as to when the U.S. economy will more fully and robustly recover from the recession. He said that all eyes will be on the transportation sector which is an early indicator of such Page 13 of 22

14 improvement. XIII. Panama Canal Expansion Report Mr. LaGrange indicated that Mr. Alberto Aleman Zubiela will be the administrator of the Panama Canal only until September 3, 2012, when Mr. Jorge Quijano will take his office. He also told the commissioners that the Panama Canal expansions delivery schedule is set for October XIV. Upcoming Meetings Mr. LaGrange mentioned the following meetings: Critical Commodities Conference April Freight Forwarders Annual Conference - May 31 June 3 AAPA Commissioners Seminar June Propeller Club International Convention October 2-6 AAPA Annual Convention October XV. Vessel Calls Mr. LaGrange indicated that there will be 111 vessel calls to the Port in March, 2012, which will be the highest ever in the history of the Port of New Orleans. XVI. Other Business At the Budget Committee meeting last Monday, March 29, 2012, Committee members requested more information about the JPI Data Resource item on the agenda of that Committee. That item dealt with the recommended award of a contract to JPI Data Resource for an enterprise content management system. Mr. Sidney Fauria, Director of Information Technology, gave a brief, but more detailed report on that contract and answered committee members questions. XVII. Adjournment Chairman Mumphrey adjourned the meeting at 10:58 A.M. BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS MINUTES OF THE REGULAR MEETING Page 14 of 22

15 OF MARCH 29, 2012 MEETING NO. 9, FISCAL YEAR 2012, 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 11:10 A.M. ON THURSDAY, MARCH 29, 2012, BY CHAIRMAN J. WAYNE MUMPHREY. COMMISSIONERS PRESENT: J. Wayne Mumphrey, Chairman Valerie S. Cahill, Vice Chair Joseph F. Toomy, Secretary-Treasurer John F. Fay, Jr., Member Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member Scott H. Cooper, Member STAFF: Technology GUESTS: G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel D. Keller, Director, Port Development E. Pansano, Director, Internal Audits J. Ruckert, Director, Finance & Information C. Swain, Director, Administration S. Ordoyne, Special Assistant P. Herring, Internal Audits B. Parent, Internal Audits T. Martin, Port Manager, Purchasing & Contracts D. Guarino, Facility Services R. Dolese, Communications J. Lynch, General Counsel B. Langer, Director, Risk Management D. Austin, Engineering B. Cromartie, Engineering J. Brown, Engineering J. Meliet, Engineering A. Fant, Operations C. Miller, Business Development L. Richardson, Business Development C. Ogburn, Special Assistant, Executive R. Hecker, Harbor Police Department C. Balthazar, RiverWorks Page 15 of 22

16 E. Stanley, Secam B. Naghari, BCM W. Watson, BCM C. Kane, Adams & Reese K. Calkins, NOT T. Wells, Waldemar S Nelson & Co. H. Alzadeh, Shaw Group I. Determination of a Quorum Chairman Mumphrey determined the existence of a quorum and called the meeting to order. II. Pledge of Allegiance Chairman Mumphrey asked Commissioner Cooper to lead the saying of the Pledge of Allegiance. Mr. Cooper led the Board and the audience in saying the Pledge of Allegiance. III. Approval of Minutes of February, 2012, Meetings On motion duly made and seconded, the Board unanimously approved the minutes of its meetings of February, 2012, as previously circulated. MOTION CARRIED UNANIMOUSLY IV. Acceptance of Financial Statements for February 2012 On motion duly made and seconded, the Board unanimously approved the February, 2012, Financial Statement. MOTION CARRIED UNANIMOUSLY V. Public Comment VI. Chairman Mumphrey 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. Actions Required A. Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with McDonnel Primus Joint Venture for the Riverfront Cold Storage Facility Project to Provide Additional Fire Hydrants to the Site - Ms. Keller presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the contract with McDonnel Primus Joint Venture for Page 16 of 22

17 the Riverfront Cold Storage Facility Project to provide additional fire hydrants on the site as required by the State Fire Marshal. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Packer 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 Secam Technologies, Inc., for As-Needed Construction Inspection Services - Ms. Keller presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a contract with Secam Technologies, Inc., for asneeded construction inspection services not to exceed $150,000. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) C. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Ray Lauga, Inc., for As- Needed Construction Administration Services - Ms. Keller presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a contract with Ray Lauga, Inc., for as-needed construction administration services not to exceed $75,000. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Packer seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) D. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Professional Services Contract with ECM Consultants, Inc., for Governor Nicholls Street Shed and Nashville Avenue Shed A Improvements - Ms. Keller presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a professional services contract with ECM Consultants, Inc., for Governor Nicholls Street Shed and Nashville Avenue Shed A improvements not to exceed $250,000. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) E. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Perez, APC, for As-Needed Architectural Services - Ms. Keller presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a contract with Perez, APC, for as-needed architectural services in an amount not to Page 17 of 22

18 exceed $125,000. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Fay seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) F. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Rigging International, Inc., for Nashville Avenue Container Crane #4 Boom and Related Component Repairs - Mr. Zimmermann presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the contract with Rigging International, Inc., to increase the cost of the contract by an amount not to exceed $741,106 for additional scope of work pertaining to the repair of the Board s Container Crane #4 boom assembly and related components. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. G. Consider Approval of a Resolution Approving the Purchase of a Hydraulic Crane from Scott Construction Equipment Company - Mr. Zimmerman presented and recommended approval of a resolution to award a contract in the amount of $89, for the purchase of a 400B 10-ton standard mount hydraulic crane from Scott Construction Equipment Company. Commissioner Cahill advised the Board that the Planning and Engineering Committee had reviewed the resolution and moved its adoption. Commissioner Packer seconded the motion. MOTION CARRIED UNANIMOUSLY. H. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with TCI Packaging, LLC, to Lease the Esplanade Avenue Wharf Shed - Mr. Donner presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement with TCI Packaging, LLC, to lease the Esplanade Avenue Wharf Shed. Commissioner Fay advised the Board that the Property and Insurance Committee had reviewed the resolution and moved its adoption. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) I. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Submit a Subdivision Letter of Request to the City Planning Commission of the City of New Orleans to Subdivide Board Property at 3601 Alvar Street - Mr. Donner presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to submit a subdivision letter of request to the City Planning Commission of the City Page 18 of 22

19 of New Orleans to subdivide Board property at 3601 Alvar Street. Commissioner Fay advised the Board that the Property and Insurance Committee had reviewed the resolution and moved its adoption. Commissioner Cahill seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) J. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with JPI, LLC, d/b/a JPI Data Resource for the Purchase, Installation, Training and Maintenance of an Enterprise Content Management System (Laserfiche Rio 100) - Mr. Ruckert presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a five-year agreement with JPI, LLC, d/b/a JPI Data Resource at a cost not to exceed $258,000 for the purchase, installation, training related to and maintenance of an Enterprise Content Management System (Laserfiche Rio 100). Commissioner Toomy advised the Board that the Budget Committee had reviewed the resolution and moved its adoption. Commissioner Cahill seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) K. Consider Approval of a Resolution Expressing the Support of the Board of Commissioners of the Port of New Orleans for the New Orleans Visitors & Convention Bureau's Efforts for Passage in the 2012 Session of the Louisiana Legislature of SB 342 to Extend the Louisiana Tax Free Shopping Commission until June 30, Mr. Gussoni presented and recommended approval of a resolution expressing the support of the Board for the New Orleans Visitors & Convention Bureau s efforts for passage in the 2012 Session of the Louisiana Legislature of SB 342 to extend the Louisiana Tax Free Shopping Commission until June 30, Commissioner Cahill reported that the Executive Committee had reviewed the resolution and moved its adoption. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. (Certification attached) VII. Report of the President and Chief Executive Officer Mr. LaGrange stated that the Port of New Orleans is staying the course and that business continues to be good at the Port. He told the audience that last Friday he was in a Federal Reserve Bank Industry Transportation Council meeting along with the Port of Miami, CSX Railroad, Crowley Maritime, three trucking companies and an economist from the Atlanta branch. The Federal Reserve created the Transportation Council along with three other industry sector councils in 2006 to provide a consistent and dependable line of communication regarding economic conditions within those industry sectors throughout each Federal Reserve District. At this meeting, the Council mentioned that at best the Page 19 of 22

20 United States gross domestic product growth forecast for 2012 is projected to be in the range of only two to three percent. Mr. LaGrange indicated that this is the slowest recovery of any recession in 75 years. At the close of the Council s briefing, Mr. LaGrange gave the Port of New Orleans report. He said that it was a welcomed surprise to the Council that the Port of New Orleans actually had two excellent years and eight excellent quarters to report. Mr. LaGrange told the audience that for the month of March, 2012, the Port will break the all-time ship call record since the 1890's at its public docks with 111 ships calling. This is higher than the record-breaking calls in February, 2012, of 107 ships. He mentioned that Commissioner Cooper had commented that these aren t small ships either, but much larger vessels than a century ago. Mr. LaGrange said that these recordbreaking vessel calls are a good indicator for us all, and we hope we can continue to stay the course. Mr. LaGrange said that, in the next several months, there are three ribbon-cutting ceremonies scheduled in connection with the Port s capital improvements. One will be the two new gantry cranes combined with Napoleon Avenue Container Facility Stage C; the second will be the new Julia Street cruise terminal, which was recently completed and now houses the Royal Caribbean Voyager of the Seas and the Norwegian Spirit home ported there. Mr. LaGrange said that the third one is the toughest project he has ever worked on in his 37-year career; that being the New Orleans Cold Storage facility. The ribbon-cutting ceremony will take place at the Henry Clay Avenue Wharf. Mr. LaGrange told the audience that last year the Port had the best revenue year ever in its history. He said that from what Mr. Ruckert, the Port s Chief Financial Officer, has told him, the financials indicate that the Port might break last year s record this year and have a better financial year than we have ever had in terms of revenue earned in the history of the Port. Mr. LaGrange said that employment at the Port itself is small compared to the 380,000 people who have gainful employment in this country because of the Port of New Orleans, with 160,000 of those people employed in the State of Louisiana. Mr. LaGrange read a letter from Mr. Andrew Cooper of Crescent Towing dated February 20, In this letter, Mr. Cooper described a recent incident regarding a barge which broke loose from its mooring in the Mississippi River, drifted down river along the east bank and was colliding with the bank intermittently. He described how Captain Daniel Caire aboard the Tug Angus R. Cooper responded to a distress call from Captain Randy Ledit, who was manning the Vessel Traffic Center desk that day. Mr. Cooper expressed his thanks to Captain Caire and his crew for successfully gaining control of the barge and preventing it from causing significant damage to the Port of New Orleans facilities. Mr. LaGrange asked Captain Caire to stand up and be recognized, and he complimented him on a job well done. Mr. LaGrange said that many years ago the Gulf Intercoastal Canal Page 20 of 22

21 Association instituted an annual award called the Dale Miller Award for such acts and that this one should be considered for such nomination. Mr. LaGrange read an from an individual by the name of KAPPY of the charter company known as Sixthman, who wrote a note of appreciation for the assistance his company received from Lt. Dorsey in the logistics of unloading and loading a chartered ship in early March, Mr. LaGrange thanked Lt. Steve Dorsey for his service to the Port and its customers. Mr. LaGrange spoke of a SeaTrade cruise conference that he attended with Mr. Johnny Cefalu and Mr. Robert Jumonville of the Port s cruise division. At that conference, Mr. LaGrange handed out a brochure that was written, designed, and printed in-house by an intern Ms. Shelly Davenport, whom he praised, with the help of Ms. Renee Dolese of the Port s Communications Department. He also indicated that the beautiful brochure had been printed on one of the Port s color copiers by Mr. Mike Douglas. Mr. LaGrange thanked them all for their efforts in producing this brochure. Mr. LaGrange also complemented Mr. Jimmy Hankins from the berthing department and Mr. Paul Zimmerman of the operations department for the record-breaking 111 vessel calls this month. Mr. LaGrange read a third letter from Seabord Marine complementing Mr. Cefalu and Ms. Ana Menes for the assistance they provided to Mrs. Pamela L. Showalter in connect with a cruise she took on the Carnival Conquest on March 4 of this year. Mr. LaGrange thanked all employees and affiliates/associates of the Port for their participation in making the Port a great success and expressed his pleasure in working with everyone. VIII. Old Business Chairman Mumphrey indicated that he had the report of the Nominating Committee by Commissioner Rusovich. Commissioner Rusovich stated that first, on behalf of the Nominating Committee, he wanted to thank Chairman Mumphrey for his strong leadership, his candor, and wonderful commitment to principled positions. He thanked him for his service as Chairman of the Board. Chairman Mumphrey asked Commissioner Rusovich for his report. Commissioner Rusovich reported that the Nominating Committee has decided to put forth the following slate of Board positions as a motion: Commissioner Cahill as Chair of the Board, Commissioner Toomy as Vice Chair of the Board, and Commissioner Packer as Secretary- Treasurer of the Board. Commissioner Rusovich moved for the adoption of the Nominating Committee s slate of Board positions, and Commissioner Fay seconded the Page 21 of 22

22 motion. MOTION CARRIED UNANIMOUSLY Former Chairman Mumphrey pointed to the new Chair Valerie Cahill, and the audience applauded. Commissioner Fay thanked former Chairman Mumphrey on behalf of all of the commissioners for his leadership and his tenure as Chairman of the Board. Commissioner Mumphrey thanked the people who operate the Port of New Orleans and told them they are the finest, most dedicated people he has met in his forty years in business. He said that he never met one person who said, We can t do that. He said it is amazing to see a public organization operating at this level of efficiency and thanked everyone. Commissioner Mumphrey said that it was a pleasure to serve with all of the past and present commissioners that he was on the Board with and he thanked them all. Commissioner Cahill thanked former Chairman Mumphrey for his service. IX. New Business There was no new business to discuss. X. Adjournment There being no further business to come before the Board, the meeting was adjourned at 11:40 A.M. by new Chair Cahill. NEXT MEETING: 11:30 A.M., Thursday, April 26, 2012 Page 22 of 22