BOARD OF COMMISSIONERS. PORT OF New Orleans MINUTES OF THE BUDGET COMMITTEE MEETING MAY 26, 2015

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1 BOARD OF COMMISSIONERS PORT OF New Orleans MINUTES OF THE BUDGET COMMITTEE MEETING MAY 26, 2015 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 COMMITTEE CHAIRMAN WILLIAM T. BERGERON AT 1:35 P.M. ON TUESDAY, MAY 26, COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: STAFF: GUEST: William T. Bergeron, Committee Chairman Scott H. Cooper, Member Michael W. Kearney, Member Robert R. Barkerding, Jr., Member Arnold B. Baker, Member Gregory R. Rusovich, Member Laney J. Chouest, Member G. LaGrange, President and Chief Executive Officer B. Christian, Chief Operating Officer B. Gussoni, Executive Counsel J. Ruckert, Chief Financial Officer D. Allee, Director, Cruise & Tourism P. Zimmermann, Director, Operations M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal J. Holt, Government Consultants L. Traweek, City Business A. Determination of Quorum and Call to Order Committee Chairman Bergeron determined the existence of a quorum and called the meeting to order at 1:35 P.M.

2 B. Public Comment Committee Chairman Bergeron called for public comment, but there was none. C. Briefing and Discussion Items 1. Review of April, 2015, Financial Statement Mr. Ruckert briefed the committee on the April, 2015, financial statement. He distributed a report detailing the financial information, a copy of which is made part of these minutes. He stated that April was another good month, but not better than March. He announced that revenue was over the budget and expenses were below the budget for the month. Mr. Ruckert mentioned that wharf age is the main reason that cruise operation was under budget because of the different tiers of funding that the Port pays to Carnival for its marketing of the Port of New Orleans. Commissioner Barkerding asked for an explanation of the difference in wharfage and parking and whether the two should be in sync. Mr. Ruckert replied that the two are not in sync because of revenue-adjusting measures having to catch up on the Carnival marketing incentives. Commissioner Bergeron asked why rentals were up. Mr. Bonura replied they were up as a result of periodic variable payments, and for the month of April, the variable payment coming due was from the J.M. Smucker Company lease. After some discussion, the committee determined it would recommend acceptance of the May, 2015, financial statement to the Board at its next regularly scheduled meeting. 2. Discussion of Preliminary Draft Budget for the Fiscal Year 2016 Financial Plan Ms. Christian presented the committee with a strategic overview of the draft of the Financial and Operating Plan for the Fiscal Year (FY) A presentation of the draft of financials detailing the statement of operations and operating revenue was distributed, a copy of which is made part of these minutes. She highlighted the areas of concentration that senior management agreed would be most important to focus on for the Port. Ms. Christian reviewed cargo growth, asset planning and management, cruise development, environmental stewardship, organizational and employee effectiveness, financial sustainability, and safe, secure and well-maintained facilities. After Ms. Christian finished her discussion, Mr. Ruckert briefed the committee on the statement of operations portion in the draft of the plan. He highlighted the covenant test for the FY 2015 plan, FY 2015 projected and FY 2016 plan. Mr. Ruckert gave brief summaries of the operating expenses budget comparison, operating revenues and operating revenue and expense for Fiscal Years 2006 to He also covered port operations, insurance, retirement, future new hires, and gave a brief analysis of the DROP program.

3 Commissioner Bergeron had concerns on retiring employees and on how to fill those positions. He suggested that the commissioners should look closer at the civil service scale so that certain employees, more particularly the crane operational positions, are paid a representative salary in line with private industry. Commissioner Baker asked if crane operational positions were set by unions or civil service. Mr. Zimmermann stated that ILA operates the cranes and that the salaries for the Board s crane positions are state civil service jobs. 3. Consider Approval of a Resolution Authorizing the President and chief Executive Officer to Enter into an Amendment to the Professional Services Agreement with KPMG Corporate Finance, LLC, to Provide for an Increase in Budget Expense for Additional Services for the Consideration of a Potential Public/Private Partnership. Mr. Ruckert briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment to the professional services agreement with KPMG Corporate Finance, LLC, to provide for an increase in budget expense for additional services for the consideration of a potential public/private partnership. After some discussion, the commissioners indicated they would recommend approval of this resolution to the Board at its next regular meeting. D. Adjournment There being no further business to come before the committee, Committee Chairman Bergeron adjourned the meeting at 2:30 P.M. BOARD OF COMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PLANNING AND ENGINEERING COMMITTEE MEETING MAY 26, 2015 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 CHAIRMAN MICHAEL W. KEARNEY AT 2:31 P.M. ON TUESDAY, MAY 26, 2015.

4 COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: STAFF: GUESTS: Michael W. Kearney, Committee Chairman Scott H. Cooper, Member William T. Bergeron, Member Robert R. Barkerding, Jr., Member Arnold B. Baker, Member Gregory R. Rusovich, Member Laney J. Chouest, Member G. LaGrange, President and Chief Executive Officer B. Christian, Chief Operating Officer B. Gussoni, Executive Counsel D. Allee, Director, Cruise & Tourism C. Dunn, Director, Port Development J. Ruckert, Chief Financial Officer P. Zimmermann, Director, Operations M. Rubino, Staff Attorney A. Fant, Executive Assistant, Capital Projects W. Stokes, Executive Secretary H. Fontenot, Paralegal L. Traweek, City Business A. Determination of Quorum and Call to Order Committee Chairman Kearney determined the p r e s e n c e of a quorum and called the meeting to order at 2:31 P.M. B. Public Comment Committee Chairman Kearney deferred any public comment until after the presentations. C. Public Comment Committee Chairman Kearney deferred any public comment until after the presentations. D. Public Comment Committee Chairman Kearney deferred any public comment until after the presentations.

5 E. Briefing and Discussion Items 1. Briefing on and Discussion of a Resolution Awarding a Contract to Hard Rock Construction Company, LLC, for France Road Drainage Improvements and Culvert Replacements. Commissioner Baker left the room, did not participate in any discussions and returned to the meeting after all discussion on this matter was completed. Ms. Dunn briefed the committee on and recommended approval of a resolution to award a contract in the amount of $170,730 to Hard Rock Construction Company, LLC, the lowest of nine responsive bidders, for all labor, material, and equipment to upgrade culverts and re-slope ditches for France Road drainage improvements. The contract is funded by the Board s capital improvement program for Fiscal Year 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 Awarding a Contract to Sun Industries, LLC, for Replacement of the First Street Shed Electrical System. Ms. Dunn briefed the committee on and recommended approval of a resolution to award a contract in the amount of $77,000 to Sun Industries, LLC, for all labor, material and equipment to remove existing electrical panels and systems and replace them with updated equipment. The contract is funded by the Board s capital improvement program for Fiscal Year After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. F. Adjournment There being no further business to come before the committee, Committee Chairman Bergeron adjourned the meeting at 2:35 P.M.

6 BOARD OF COMMISSIONERS PORT OF New Orleans MINUTES OF THE PROPERTY AND INSURANCE COMMITTEE MEETING MAY 26, 2015 A MEETING OF T H E P R O P E R T Y A N D I N S U R A N C E C O M M I T T E E OF T H E 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 ROBERT R. BARKERDING AT 2:35 P.M. ON TUESDAY, MAY 26, COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: STAFF: Robert R. Barkerding, Jr., Committee Chairman Scott H. Cooper, Member William T. Bergeron, Member Michael W. Kearney, Member Arnold B. Baker, Member Gregory R. Rusovich, Member Laney J. Chouest, Member G. LaGrange, President and Chief Executive Officer B. Christian, Chief Operating Officer B. Gussoni, Executive Counsel D. Allee, Director, Cruise & Tourism C. Bonura, Director, Business Development B. Landry, Chief Commercial Officer P. Zimmermann, Director, Operations A. Fant, Executive Assistant, Capital Projects B. Ethridge, Manager, Business Development M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal A. Determination of Quorum and Call to Order Committee Chairman Barkerding determined the existence of a quorum and called the meeting to order at 2:35 P.M.

7 B. Public Comment Committee Chairman Barkerding indicated that he would defer public comment if any to the end of any presentations on the discussion items. C. Briefing and Discussion Items 1. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Linfield, Hunger & Junius, Inc., for Disaster Response and Recovery Assistance. Ms. Fant briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in an amount not to exceed $268,000 to a contract with Linfield, Hunter & Junius, Inc., for assistance in implementing the Board s Comprehensive Recovery Policy and Procedures and to further amend the contract in an amount not to exceed $200,000 for as needed disaster recovery assistance in the event of a disaster. 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 an Agreement with Johnson Controls, Inc., for the Maintenance and Repair of the HVAC Systems at the Erato Street and Julia Street Cruise Terminals. Mr. Allee briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement in an amount not to exceed $27,264 with Johnson Controls, Inc., for an initial one year term with two one-year options at slightly higher rates for the maintenance and repair of the HVAC systems at the Erato Street and Julia Street Cruise Terminals. 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 an Agreement with Honeywell International, Inc., for the Maintenance and Repair of the Energy Management System at the Erato Street and Julia Street Cruise Terminals. Mr. Allee briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement in the amount of $23,524 with Honeywell International, Inc., for an initial one year term with two one-year options at slightly higher rates for the maintenance and repair of the energy management systems at the Erato Street and Julia Street

8 Cruise Terminals. 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 an Agreement with Harrah s New Orleans for Hotel Rooms, Meeting Space and Food and Beverage Services for the Florida Caribbean Cruise Association Platinum Associate Membership Advisory Council Annual Conference June 22-24, Mr. Allee briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement not to exceed $128,000 with Harrah s New Orleans for hotel rooms, meeting space and food and beverage services for the Florida Caribbean Cruise Association Platinum Associate Membership Advisory Council Annual Conference. 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 Amend the Lease with the Kearney Companies, Inc., at France Road Terminal, Berth 5 Shed and Upland Area, to Add 0.91 Acres to the Existing 6.0 Acre Lease Site. Commissioner Kearney left the room, did not participate in any discussions and returned to the meeting when discussion of the matter was completed. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment with Kearney Companies, Inc. at France Road Berth Shed for additional acreage to the existing lease site. 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 a Resolution Declaring Property Less than One Acre at 201 Nashville Avenue as Surplus to the Board s Needs and Authorizing the President and Chief Executive Officer to Enter into an Agreement Granting to Brinance Investments, LLC, an Option to Purchase the Property. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement granting Brinance Investments, LLC, a one-year option to purchase property at 201 Nashville Avenue. Mr. Bonura said there is a $25,000 option fee due at granting of the option, and if the option is exercised, the Board will receive

9 the greater of appraised value or $725,000 for the property. He stated that the property is currently vacant, and there is not any maritime use for it. Commissioner Cooper stated that it makes sense to sell the property considering it is not being utilized. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. 7. Briefing on and Discussion of a Resolution Declaring Approximately 15,000 Square Feet of Property on Anson Street in Gretna as Surplus to the Board s Needs and Authorizing the President and Chief Executive Officer to Enter into a Purchase Agreement with the City of Gretna. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into a purchase agreement with the City of Gretna for 15,000 square feet of property on Anson Street in Gretna, Louisiana. He stated that the purchase of the additional square footage on Anson Street is for rear access to the fire station now under construction on the property which the Board sold to the City of Gretna in The lot will be re-subdivided to reflect the property intended to be sold. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. 8. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Consent to the Assignment of the Board s Lease with Lafarge North America, Inc., to Continental Cement Company, LLC, and to Sublease Portions of the Same Property to Lafarge West, Inc., and to C&R Consulting, Inc. Commissioner Baker left the room, did not participate in any discussion of this matter and returned when discussion had been completed. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to consent to the assignment of the Board s lease with Lafarge North America, Inc., to Continental Cement Company, LLC, and to the sublease of portions of the same property to Lafarge West, Inc., and to C&R Consulting, Inc., at 2315 France Street. He stated that the Federal Trade Commission required Lafarge North America, Inc., to divest itself of assets in areas where they and Holcim have overlapping operations, including operations in New Orleans involving this property. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting.

10 9. Briefing on and Discussion of the Extension of the Broker Services Contract for the Board s Property and Liability Insurance Policies. D. Adjournment Mr. Gussoni briefed the committee on the extension of the broker services contract for the Board s property and liability insurance policies. He said that Marsh s three- year contract is in its last year and Marsh has agreed to extend it under the same terms and conditions and at the very reasonable rate of $75,000 per year. Mr. Gussoni stated that Marsh has done an excellent job in the past three years, and it is staff s recommendation that the Port accept Marsh s offer to renew the contract for three more years without going out on a request for proposals or qualifications. After discussion, the committee indicated it concurred with staff recommendation and would refer this matter favorably to the e n t i r e Board at its next regularly scheduled meeting. There being no further business to come before the committee, Committee Chairman Barkerding adjourned the meeting at 3:07 P.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE EXECUTIVE COMMITTEE MEETING MAY 28, 2015 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 FO NEW ORLEANS PLACE, NEW ORLEANS, 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 SCOTT H. COOPER AT 9:33 A.M. ON THURSDAY, MAY 28, COMMITTEE MEMBERS PRESENT: MEMBER ABSENT: Scott H. Cooper, Chairman Gregory R. Rusovich, Member William T. Bergeron, Member Michael W. Kearney, Member Robert R. Barkerding, Jr., Member Arnold B. Baker, Member Laney J. Chouest, Member

11 STAFF: GUEST: G. LaGrange, President and Chief Executive Officer B. Christian, Chief Operating Officer B. Gussoni, Executive Counsel D. Allee, Director, Cruise & Tourism C. Bonura, Director, Business Development C. Dunn, Director, Port Development B. Landry, Chief Commercial Officer P. Zimmermann, Director, Operations M. Gresham, Director, External Affairs M. Rubino, Staff Attorney A. Fant, Executive Assistant, Capital Projects R. Aragon-Dolese, Manager, Communications W. Stokes, Executive Secretary H. Fontenot, Paralegal D. Frances, Times Picayune 1. Determination of Quorum and Call to Order Committee Chairman Cooper determined the presence of a quorum and called the meeting to order at 9:33 A.M. 2. Public Comment Chairman Cooper called for public comment, but there was none. 3. Chairman s Comments Chairman Cooper had no comments. 4. Determination of Quorum and Call to Order Committee Chairman Cooper determined the presence of a quorum and called the meeting to order at 9:33 A.M. 5. Public Comment Chairman Cooper called for public comment, but there was none. 6. Chairman s Comments Chairman Cooper had no comments

12 7. Determination of Quorum and Call to Order Committee Chairman Cooper determined the presence of a quorum and called the meeting to order at 9:33 A.M. 8. Public Comment Chairman Cooper called for public comment, but there was none. 9. Chairman s Comments Chairman Cooper had no comments. 10. President & Chief Executive Officer s Comments Mr. LaGrange mentioned that Congressman Pete Olson of the 22 nd U.S. District from Texas is visiting the Port and he will recognize Mr. Olson downstairs at the regular monthly meeting later this morning. Mr. LaGrange talked about a conference with Secretary Foxx of the U.S. Department of Transportation on mustering up votes for the TPA-2015, i.e., the Bipartisan Congressional Trade Priorities and Accountability Act of Mr. Gresham reviewed a letter that he received about our congressional delegation from Mississippi port directors, GNO Inc., and others who have signed on in support of the TPA. 11. Briefing and Discussion Items A. Briefing on and Discussion of the Official Journal of the Board for Fiscal Year Mr. Gussoni stated that next month by law was the time for the Board to adopt its official journal for the upcoming fiscal year. He asked the commissioners if they would like staff to solicit bids or bring a resolution next month to continue The Advocate as official journal without reviewing bids from other journals. Commissioner Cooper stated that he preferred a bidding process and to have the bids presented at next month s agenda meeting. Mr. Gussoni said staff would do so. B. Update on the Convention Center s Transportation/Traffic Proposal. Mr. LaGrange stated that this update on the Convention Center s proposal is a result of the City Business article. He distributed a handout detailing the Convention Center plans and expansion, a copy of which is made part of these minutes. Ms. Fant updated the committee on the Convention Center s transportation/traffic plans and proposal. She stated that the Convention Center would like to build a linear park along Convention Center Boulevard and also to develop forty-seven acres that it owns along Tchoupitoulas and Henderson Streets. Ms. Fant said that the park would require Convention Center Boulevard to be reduced from a four lane-street to a two-lane street. She explained the process of the proposal with plans for the linear park and briefly

13 discussed the development plan and Convention Center traffic plan both encompassing a neighborhood and a riverfront experience, a multi-modal center, two-way street conversions, a diversion of Poydras and Tchoupitoulas Streets, a Davis Park intersection, and crossover lanes. Ms. Fant reviewed the Port s comments on the Convention Center plans stating that the Port is not in favor of a two-lane Convention Center Boulevard, its hindrance of cruise traffic, lane blockage, redirected traffic, and Tchoupitoulas and Calliope Streets being the only access for the Port. She discussed the permit review process for the rest of the development and said that the City is ready to begin a comprehensive traffic and transportation study of the area that will also include the French Quarter and the CBD. Ms. Fant said that the City Planning Commission has the ultimate decision authority. The commissioners expressed their concerns with the plans and proposals for Convention Center Boulevard in an active in depth conversation. They concluded that they are not in favor of the proposed developments unless there will be alternative traffic solutions that address the Port s issues. C. Briefing on and Discussion of Potential Uses of Avondale Shipyard. Mr. LaGrange discussed an in-house study in 2005 at the request of various entities, the City of New Orleans, and GNO, Inc. He stated that a study was conducted by staff members in 2010 to determine if Avondale could be an alternative use for a container terminal and that the site was ruled out as a site for container operations. He distributed a report detailing Avondale operations, a copy of which is made part of these minutes. Mr. LaGrange mentioned that there are environmental consequences and that Avondale has been very proactive with regard to the environment. He stated that there is a lot of real estate and that the staff will continue doing studies on the potential uses of a shipyard and will present its findings to the Board. Commissioner Rusovich spoke in terms of real estate that this could present an opportunity for some land use and to look beyond just specific terminal uses. He mentioned pipethreading or -coating as examples and if there were some uses for them. He questioned if there are ways to add value at that facility to steel or other major breakbulk product that comes through the Port of New Orleans. Commissioner Kearney expressed concerns on limited resources stating that the Port has its plate full with finding the funding for projects such as those for developing facilities at Napoleon and Poland Avenues. Mr. Bonura stated that the first hurdle is to find out if it seems likely that the benefits of getting involved in site development at Avondale are likely to outweigh the costs and risks. If it is likely, then it would be worth devoting staff time on further study. He said he would report at the July executive committee meeting on staff s preliminary findings. If the preliminary results are positive, staff would then work to quantify and weigh

14 expected opportunities and cash flows against the costs and risks of establishing site control for maritime purposes or to process and manufacture port commodities. Mr. Landry said that he met with Michael Hecht of GNO, Inc., and will be providing him with a list of pipe suppliers, distributors, and fabricators. Ms. Dunn stated that she spoke with an American Society of Civil Engineers (ASCE) subcommittee working on a P3 for the Corp of Engineers. Representatives of the subcommittee visited last month looking at what they wanted to do as a pilot project. She said they expressed interest in the using the Avondale property as one of their study projects. She said she would follow up on this with the ASCE. D. Briefing on and Discussion of Louisiana Board of International Commerce. Commissioner Rusovich briefed the committee and discussed the Louisiana Board of International Commerce. He stated that its sole purpose is to drive global trade and foreigndirected investment, which started in 2013 with a master plan funded by the State. Commissioner Rusovich mentioned that the State of Louisiana has five offices which are all active and that the Governor has adopted an international perspective in his business approach and conducted several trade missions, one in particular that resulted in securing the Viking Cruises deal. E. Report by American Association of Port Authorities that U.S. Ports Need Upgrades over Next Decade. Mr. LaGrange reported that the Port of New Orleans was one of seventy ports that participated in a survey determining what their needs are going to be over the next decade. He said the results indicated that U.S. ports will need $28.9 billion in upgrades to facilitate their needs and demands. Of that, $4.13 billion will be needed on the Gulf Coast and that all the funding will have to come from public private partnerships. F. Cargo Report. Mr. Landry reported that April was another good month on the container side and it was the second best container month in the Port s history. He said there were almost 48,000 TEU s on the month, but that the numbers on the breakbulk side were down from April and last year, but up 35% for the fiscal year. G. Report on Vessel Calls. Mr. LaGrange reported that vessel calls in April, 2015, were 448 this year as compared to 463 last year. He said that on the year there were 1,792 January through April of this year, 1,830 last year in total.

15 H. CFO Position. Mr. LaGrange announced that Chief Financial Officer Jim Ruckert will be retiring at the end of the year and we will be advertising for his position. I. Reminder: Presentation of the C. Alvin Bertel Award to the 2015 Recipient Mr. Michael W. Kearney on June 24, 2015, at the Sheraton Hotel, New Orleans, Louisiana. Commissioner Cooper reminded the committee of the presentation of the C. Alvin Bertel Award that Commissioner Kearney will be accepting. 12. Other Business. Commissioner Bergeron reported that there is a film studio employing 600 people in St. Bernard Parish that is leasing a St. Bernard Port building. He said that the studio is ultimately looking at hiring 2,500 employees in the near future. 13. Adjournment There being no further business to come before the committee, Committee Chairman Cooper adjourned the meeting at 10:55 A.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE REGULAR MEETING OF MAY 28, 2015 MEETING NO. 11, FISCAL YEAR 2015, 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 11:12 A.M. ON THURSDAY, MAY 28, 2015, BY CHAIRMAN SCOTT H. COOPER. COMMITTEE MEMBERS PRESENT: Scott H. Cooper, Chairman William T. Bergeron, Vice-Chairman Michael W. Kearney, Secretary-Treasurer Gregory R. Rusovich, Member Robert R. Barkerding, Jr., Member Arnold B. Baker, Member

16 ABSENT: STAFF: Laney J. Chouest, Member G. LaGrange, President and Chief Executive Officer B. Christian, Chief Operating Officer B. Gussoni, Executive Counsel D. Allee, Director, Cruise & Tourism C. Bonura, Director, Business Development C. Dunn, Director, Port Development E. Pansano, Director, Internal Audit J. Ruckert, Chief Financial Officer A. Fant, Deputy Director, Operations G. Hager, Director, Human Resources J. Cefalu, Deputy Director, Cruise & Tourism S. Fauria, Director, Information Technology B. Ethridge, Manager, Business Development M. Rubino, Staff Attorney K. Ordoyne, Staff Attorney R. Aragon-Dolese, Manager, Communications P. Matthews, Community Affairs Manager H. Fontenot, Paralegal D. Guarino, Deputy Director, Port Development M. Gresham, Director, External Affairs S. Ordoyne, Executive Assistant A. Brandenburg, Internal Audit L. Lofton, Internal Audit L. Richardson, Business Development H. Horan, Human Resources S. Reames, Cruise & Tourism A. Hanks, Cruise & Tourism N. Polk, Communications K. Frankic, Business Development B. Cromartie, Port Development D. Austin, Engineering R. Munsch, Legal B. Parent, Internal Audit GUESTS: C. Balthazar, Riverworks D. Magee, ILA G. Davis, ILA S. Champagne, Gulf Gateway L. Traweek, City Business D. Keller, Deborah D. Keller & Partners D. Lambert, COWI T. Wells, Waldermar S. Nelson & Co. D. Lee, Mallory R. Schaefer, NOT

17 I. Determination of Quorum and Call to Order Chairman Cooper determined the presence of a quorum and called the meeting to order at 11:12 A.M. II. Pledge of Allegiance Chairman Cooper asked Commissioner Barkerding to lead the Board and the audience in saying the Pledge of Allegiance, and he did so. III. Approval of Minutes of April, 2015, Meetings On motion duly made by Commissioner Bergeron and seconded by Commissioner Baker, the Board unanimously approved the minutes of its meetings of April, 2015, as previously circulated. IV. Acceptance of Financial Statement for April, 2015 On motion duly made by Commissioner Bergeron and seconded by Commissioner Kearney, the Board unanimously accepted the April, 2015, financial statement as previously circulated. V. Public Comment Chairman Cooper announced that the meeting was open to the public and said if any member of the public present wanting to comment should please see Mr. Matthew Gresham. Commissioner Cooper recognized Congressman Pete Olson representing the 22 nd District of Texas in the U.S. House of Representatives. Rep. Olson gave a short speech regarding dredging problems and new EPA water rules that will impact ports. VI. Actions Required A. Consider Approval of a Resolution Awarding a Contract to Hard Rock Construction Company, LLC, for France Road Drainage Improvements and Culvert Replacements. Commissioner Baker left the room and did not participate in any discussions or the vote on this matter. He returned after the vote was taken. Ms. Dunn presented and recommended approval of a resolution awarding a contract in the amount of $170,730 to Hard Rock Construction Company, LLC, to upgrade culverts and make drainage improvements on the west side of France Road. Commissioner Kearney advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Bergeron seconded the motion. MOTION CARRIED UNANIMOUSLY.

18 B. Consider Approval of a Resolution Awarding a Contract to Sun Industries, LLC, for Replacement of the First Street Shed Electrical System. Ms. Dunn presented and recommended approval of a resolution awarding a contract in the amount of $77,000 to Sun Industries, LLC, for the replacement of the First Street Shed s electrical system. Commissioner Kearney advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Bergeron seconded the motion. MOTION CARRIED UNANIMOUSLY. C. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Linfield, Hunter & Junius, Inc., for Disaster Response and Recovery Assistance. Ms. Fant presented and recommended approval of a resolution authorizing the Board s P resident and Chief Executive Officer to amend the contract with Linfield, Hunter & Junius, Inc., for disaster response and recovery assistance in an amount not to exceed $268,000 and also to amend it in an amount not to exceed $200,000 for as needed recovery assistance in the event of a disaster. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Baker seconded the motion. MOTION CARRIED UNANIMOUSLY. D. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Johnson Controls, Inc., for the Maintenance and Repair of the HVAC Systems at the Erato Street and Julia Street Cruise Terminals. Mr. Allee presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement with Johnson Controls, Inc., not to exceed $27,264 for the maintenance and repair of the HVAC Systems at the Erato Street and Julia Street Cruise Terminals. Commissioner Barkerding advised the Board that the Property and Insurance Committee had m e t and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY

19 E. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Johnson Controls, Inc., for the Maintenance and Repair of the HVAC Systems at the Erato Street and Julia Street Cruise Terminals. Mr. Allee presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement with Johnson Controls, Inc., not to exceed $27,264 for the maintenance and repair of the HVAC Systems at the Erato Street and Julia Street Cruise Terminals. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. F. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Honeywell International, Inc., for the Maintenance and Repair of the Energy Management System at the Erato Street and Julia Street Cruise Terminals. Mr. Allee presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement in the amount of $23,524 with Honeywell International, Inc., for the maintenance and repair of the energy management system at the Erato Street and Julia Street Cruise Terminals. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. G. Consider Approval of a Resolution Authorizing the President and Chief Executive Of f icer to Enter in to an Agree men t w ith Harrah s New Orleans for Hotel Rooms, Meeting Space and Food and Beverage Services for the Florida Caribbean Cruise Association Platinum Associate Membership Advisory Council Annual Conference June 22-24, Mr. Allee presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement with Harrah s New Orleans in the amount of $128,000 for hotel rooms, meeting space and food and beverage services for the Florida Caribbean Cruise Association Platinum Associate Membership Advisory Council Annual Conference June 22-24, Commissioner Cooper commented that this is a very good and important resolution for the Port. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSL

20 H. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Professional Services Agreement with KPMG Corporate Finance, LLC, to Provide for an Increase in Budget Expense for Additional Services for the Consideration of a Potential Public Private Partnership. Mr. Ruckert presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the Board s professional services agreement with KPMG Corporate Finance, LLC, to provide for additional public private partnership evaluation services. The cost of the amendment is not to exceed $100,000. Commissioner Bergeron advised the Board that the Budget Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Baker seconded the motion. MOTION CARRIED UNANIMOUSLY. I. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Amend the Lease with the Kearney Companies, Inc., at France Road Terminal, Berth 5 Shed and Upland Area, to Add 0.91 Acres to the Existing 6.0 Acre Lease Site. Commissioner Kearney recused himself from any discussion of and the vote on this issue. Mr. Bonura presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to amend the Board s lease with the Kearney Companies, Inc., at France Road Terminal Berth 5 to add 0.91 acres to the existing lease. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. J. Consider Approval of a Resolution Declaring Property Less than One Acre at 201 Nashville Avenue as Surplus to the Board s Needs and Authorizing the President and Chief Executive Officer to Enter into an Agreement with Brinance Investments, LLC, Granting an Option to Purchase the Property. Mr. Bonura presented and recommended approval of a resolution declaring property less than one acre at 201 Nashville as surplus to the Board s needs and authorizing the President and Chief Executive Officer to enter into an agreement with Brinance Investments, LLC, granting an option to purchase the property. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Baker seconded the motion. MOTION CARRIED UNANIMOUSLY. K. Consider Approval of Resolution Declaring Approximately 15,000 Square Feet of Property on Anson Street in Gr etna as Surplu s to the Board s Needs and Authorizing the President and Chief Executive Officer to Enter into a Purchase Agreement with the City of Gretna for the Property.

21 Mr. Bonura presented and recommended approval of a resolution declaring approximately 15,000 square feet of property on Anson Street in Gretna as surplus to the Board s needs and authorizing the President and Chief Executive Officer to enter into a purchase agreement with the City of Gretna for the property to use as part of the adjacent fire station. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. L. Consider Approval of a Resolution Authorizing the President and Chief Executive Of ficer to Consent to the Assignment of the Board s Lease w ith Lafarge North America, Inc., to Continental Cement Company, LLC, and to the Sublease of Portions of the Same Property to Lafarge West, Inc., and to C & R Consulting, Inc. Commissioner Baker recused himself from any discussion of and the vote on this issue. Mr. Bonura presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to consent to the assignment of the Board's lease with Lafarge North America, Inc., to Continental Cement Company, LLC, and to the sublease of portions of the property to Lafarge West, Inc., and C & R Consulting, Inc. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Rusovich seconded the motion. MOTION CARRIED UNANIMOUSLY. M. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Marsh USA, Inc., for the Provision of Brokerage and Consulting Services Related to the Board s Proper ty and Casualty Insurance Policies. Mr. Gussoni presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to renew the Board s contract with Marsh USA, Inc., for the provision of brokerage and consulting services related to the Board s property and casualty insurance policies. Commissioner Barkerding advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Baker seconded the motion. MOTION CARRIED UNANIMOUSLY. VII. Report by the President and Chief Executive Officer. Mr. LaGrange announced that April had been another good month for the Port of New Orleans. He then said that the Port of New Orleans is officially Green Marine-certified after a successful audit by the EPA. He recognized the Port Development Team for all its great effort and hard work to achieve this accomplishment. Mr. LaGrange commented that the Port should toot its own horn because great things are happening here and the word is not getting out to the public. He welcomed suggestions

22 and ideas from everyone who can assist in getting the word out to the public on anything that is positive about the Port. The commissioners echoed Mr. LaGrange on his speech and ideas about spreading the news of the Port s successes to the public. VIII. Old Business None reported. IX. New Business None reported. X. Adjournment There being no further business to come before the Board, the meeting was adjourned at 11:35 A.M. NEXT MEETING: 11:00 A.M., Thursday, June 25, 2015