BOARD OF COMMISSIONERS PORT OF NEWORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING FEBRUARY 23, 2015

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1 BOARD OF COMMISSIONERS PORT OF NEWORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING FEBRUARY 23, 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 CHAIRMAN SCOTT H. COOPER AT 1:37 P.M. ON MONDAY, FEBRUARY 23, 2015 COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: STAFF: GUEST: Scott H. Cooper, Committee Chairman William T. Bergeron, Member Michael W. Kearney, Member Robert R. Barkerding, Jr., Member Laney J. Chouest, Member Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member G. LaGrange, President and Chief Executive Officer P. Gallwey, Chief Operating Officer B. Christian, incoming Chief Operating Officer B. Gussoni, Executive Counsel J. Ruckert, Chief Financial Officer M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal J. Holt, Government Consultants A. Determination of Quorum and Call to Order Committee Chairman Cooper determined the existence of a quorum and called the meeting to order at 1:37 P.M.

2 B. Public Comment Committee Chairman Cooper called for public comment, but there was none. C. Briefing and Discussion Items 1. Review of January, 2015, Financial Statement. Mr. Ruckert briefed the committee on the January, 2015, financial statement. He distributed a report detailing the financial information, a copy of which is made part of these minutes. He stated that January was another good month. He announced that revenue was over the budget and expenses were below the budget for the month of January. Mr. LaGrange mentioned that, in terms of dockage being a little down, container crane revenue was up. Mr. Ruckert reiterated that breakbulk dockage was lower because of fewer GRT breakbulk vessels, but container crane revenue was higher because of an increase in container vessels. After some discussion, the committee determined it would recommend acceptance of the January, 2015, financial statement to the Board at its next regularly scheduled meeting. D. Adjournment There being no further business to come before the committee, Committee Chairman Cooper adjourned the meeting at 1:46 P.M. BOARD OF COMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PLANNING AND ENGINEERING COMMITTEE MEETING FEBRUARY 23, 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 WILLIAM T. BERGERON AT 1:47 P.M. ON MONDAY, FEBRUARY 23, COMMITTEE MEMBERS PRESENT: William T. Bergeron, Committee Chairman Scott H. Cooper, Member

3 Michael W. Kearney, Member Robert R. Barkerding, Jr., Member Laney J. Chouest, Member MEMBERS ABSENT: STAFF: Daniel F. Packer, Jr., Member Gregory R. Rusovich, Member G. LaGrange, President and Chief Executive Officer P. Gallwey, Chief Operating Officer B. Christian, incoming Chief Operating Officer B. Gussoni, Executive Counsel C. Dunn, Director, Port Development M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal A. Determination of Quorum and Call to Order Committee Chairman Bergeron determined the presence of a quorum and called the meeting to order at 1:47 P.M. B. Public Comment Committee Chairman Bergeron called for public comment, but there was none. C. Briefing and Discussion Items 1. Briefing on and Discussion of a Resolution Awarding a Contract to Command Construction Industries, LLC, for the Poland Avenue Cruise Terminal Phase I MARAD Access Roadway Improvements. Ms. Dunn briefed the committee on and recommended approval of a resolution to award a contract in the amount of $1,442,757 to Command Construction Industries, LLC, the lowest of five responsive bidders for all labor, material, and equipment for Phase One of the MARAD access roadway improvements at the Poland Avenue Cruise Terminal. The contract is funded by the Board s FY 2015 Capital Improvement Program. 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 Barber Brothers Contracting Company, LLC, for the Perry Street Wharf Access Roadway Paving Improvements. Ms. Dunn briefed the committee on and recommended approval of a resolution to award a contract in the amount of $262,011 to Barber Brothers Contracting

4 Company, LLC, the lower of two responsive bidders for all labor, material, and equipment for asphalt removal, disposal, and grading at the Perry Street Wharf. The contract is funded by the Board s FY 2015 Capital Improvement Program. 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 Amendment to the Contract with Barber Brothers Contracting Company, LLC, for Asphalt Paving Improvements at the Milan Upland Yard. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $62, to the contract with Barber Brothers Contracting Company, LLC, to reconcile line items, add new line items for additional required work, and assess ascertained and liquidated damages at the Milan Upland Yard in order to close out the project. The contract is funded by the Board s FY 2015 Capital Improvement Program. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PROPERTY AND INSURANCE COMMITTEE MEETING FEBRUARY 23, 2015 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 MICHAEL W. KEARNEY AT 2:10 P.M. ON MONDAY, FEBRUARY 23, COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: Michael W. Kearney, Committee Chairman Scott H. Cooper, Member William T. Bergeron, Member Robert R. Barkerding, Jr., Member Laney J. Chouest, Member Gregory R. Rusovich Member Daniel F. Packer, Jr., Member

5 STAFF: GUESTS: G. LaGrange, President and Chief Executive Officer P. Gallwey, Chief Operating Officer B. Christian, incoming Chief Operating Officer B. Gussoni, Executive Counsel P. Zimmermann, Director, Operations M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney B. Sickinger, Risk Manager W. Stokes, Executive Secretary H. Fontenot, Paralegal C. Balthazar, Riverworks J. Laborde, Marsh & McLennan R. Hill, Marsh & McLennan A. Determination of Quorum and Call to Order Committee Chairman Kearney determined the existence of a quorum and called the meeting to order at 2:10 P.M. B. Public Comment Committee Chairman Kearney called for public comment, but there was none. C. Briefing and Discussion Items 1. Briefing on and Discussion of a Resolution Awarding a Contract to McFarland Cascade Holdings, Inc., for the Purchase of 500 Eighty-Foot Untreated Timber Piles for Use in Maintenance of Board Fender Systems. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract in the amount of $316,500 to McFarland Cascade Holdings, Inc., the lowest of three responsive bidders, for the purchase of 500 eighty-foot timber piles. Commissioner Chouest asked if there was a possibility of entering into a discounted deal for several years with this vendor. Mr. Zimmermann said that is a possibility, and he would look into it. D. Public Comment Committee Chairman Kearney called for public comment, but there was none.

6 E. Briefing and Discussion Items 1. Briefing on and Discussion of a Resolution Awarding a Contract to McFarland Cascade Holdings, Inc., for the Purchase of 500 Eighty-Foot Untreated Timber Piles for Use in Maintenance of Board Fender Systems. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract in the amount of $316,500 to McFarland Cascade Holdings, Inc., the lowest of three responsive bidders, for the purchase of 500 eighty-foot timber piles. Commissioner Chouest asked if there was a possibility of entering into a discounted deal for several years with this vendor. Mr. Zimmermann said that is a possibility, and he would look into it. 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 Renew the Board s Primary and Excess Property Insurance, Boiler and Machinery/Equipment Breakdown Insurance, NFIP Property Insurance, Primary and Excess General Liability Insurance, Hull and Machinery and P & I Insurance, Vessel Pollution Liability Insurance, Public Official s Liability Insurance, Law Enforcement Liability Insurance, Government Crime Insurance, and Business Automobile Liability Insurance and to Purchase Cyber Risk Liability Insurance and Property Terrorism Insurance all through the Broker Marsh, Inc. Mr. Gussoni addressed the committee explaining briefly the process that the staff and the broker have followed to foster a favorable renewal climate for the property insurance renewal with the London market and then introduced Mr. James Laborde and Mr. Robert Hill, both representatives of Marsh & McLennan from its New Orleans office, to continue the briefing in more detail. Mr. Laborde distributed a handout detailing renewal information, a copy of which is made part of these minutes. He discussed the premium summary of the property and the liability program. He explained that our proposal was to replace the present primary general liability insurer with Lloyds of London and that we proposed to change motor vehicle liability insurers to save approximately $30,000. He explained cyber risk quote options with Travelers Insurance Company (Travelers) and a check list of what the policy would cover. Mr. Laborde explained that renewal this year for existing policies would cost theboard approximately $250,000 less in premiums than last year with better policies even with an increased statement of values for the Board s properties.

7 Mr. Hill addressed and briefed the committee in more depth on the cyber risk quote from Travelers. He discussed third and first party liability coverage under the cyber risk policy program and limit options and deductions on its coverages. Then he briefly touched on terrorism property insurance coverage also. Commissioner Chouest expressed his concerns on purchasing cyber risk insurance for the Port by asking what is the real cyber risk associated with the Port. Mr. Gussoni stated that he met with Ridge Global two weeks ago and that company proposed doing a cyber risk assessment for the Board. He stated that the company is in the cyber risk insurance industry and has contacts with Lloyds of London. Mr. Gussoni mentioned that he has been unable to reach the company representatives in order to get a quote on the cost of doing an assessment, but he would like to pursue discussions with them on this issue. Commissioner Chouest stated that he would like to have an independent company or individual look at the Port s IT vulnerability rather than someone who wants to sell us insurance. Mr. Laborde stated that the biggest risks are business interruptions, which need to be quantified, and whether the Port can afford an interruption because of a cyber-attack. Mr. Gussoni then reported that IT and audit staff and he would attend an AAPA seminar on cyber security risks in the next two weeks. He then asked commissioners whether they preferred to purchase the cyber risk coverage now or wait until an assessment is conducted. Commissioners Cooper and Bergeron replied that they recommended waiting until after Mr. Gussoni attended the cyber risk seminar and reported back on this issue. Mr. Gussoni replied that the item would be removed from the resolution for this Thursday s meeting. Mr. Gussoni requested confirmation from the committee whether they preferred to defer the terrorism property insurance along with the cyber risk until after the seminar. The committee confirmed that it rather wait until the conclusion of the seminar. Regarding renewal of existing coverages, the committee indicated it would refer those matters favorably to the Board at its next regularly scheduled meeting. 3. Commissioner Kearney made a motion to amend the agenda to add an item. Commissioner Cooper seconded the motion. The new item was identified as the following: Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Berthing Agreement with Carnival Corporation Regarding Carnival Vessels Calling at the Port of New Orleans. The resolution was read and staff explained the item must be considered at this time because Carnival had requested it be taken up after the agenda for this meeting had been posted. There was a call for public comment. There were none. A vote to

8 amend the agenda to add this item was called. The commissioners unanimously voted to add this item to the agenda. Thereafter, Mr. LaGrange presented and recommended approval of this item to the committee. 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 Kearney adjourned the meeting at 2:48 P.M. 4. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Modjeski and Masters, Inc., for As-Needed Professional Services for Bridges at the St. Claude Avenue Bridge. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $170,000 to the contract with Modjeski and Masters, Inc., to provide design and construction engineering and inspection services for replacement of the roadway grating on the outside lanes of the St. Claude Avenue Bridge. The contract is funded by the Board s FY 2015 Capital Improvement Program. 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 an Amendment to the Contract with Modjeski and Masters, Inc., for As-Needed Professional Services for Bridges at the St. Claude Avenue Bridge. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $170,000 to the contract with Modjeski and Masters, Inc., to provide design and construction engineering and inspection services for replacement of the roadway grating on the outside lanes of the St. Claude Avenue Bridge. The contract is funded by the Board s FY 2015 Capital Improvement Program. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting.

9 6. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Modjeski and Masters, Inc., for As-Needed Professional Services for Bridges at the St. Claude Avenue Bridge. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $170,000 to the contract with Modjeski and Masters, Inc., to provide design and construction engineering and inspection services for replacement of the roadway grating on the outside lanes of the St. Claude Avenue Bridge. The contract is funded by the Board s FY 2015 Capital Improvement Program. 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 Authorizing the President and Chief Executive to Enter into an Amendment to the Contract with AECOM Technical Services, Inc., for the Mississippi River Intermodal Terminal and Yard Improvements. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $495,309 to the contract with AECOM Technical Services, Inc., to provide design review and manufacturing/assembly oversight for the purchase of rubber tire gantry cranes. The contract is funded by the Board s FY 2015 Capital Improvement Program. 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, Committee Chairman Bergeron adjourned the meeting at 2:08 P.M.

10 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE EXECUTIVE COMMITTEE MEETING FEBRUARY 26, 2015 A MEETING OF THE EXECUTIVE COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE TH PRESENTATION ROOM ON THE 4 FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY COMMITTEE CHAIRMAN GREGORY R. RUSOVICH AT 9:37 A.M. ON THURSDAY, FEBRUARY 26, COMMITTEE MEMBERS PRESENT: ABSENT MEMBER: STAFF: Gregory R. Rusovich, Committee Chairman Scott H. Cooper, Member William T. Bergeron, Member Michael W. Kearney, Member Robert R. Barkerding, Jr., Member Laney J. Chouest, Member Daniel F. Packer, Jr., Member G. LaGrange, President and Chief Executive Officer P. Gallwey, Chief Operating Officer B. Christian, incoming Chief Operating Officer B. Gussoni, Executive Counsel C. Bonura, Director, Business Development B. Landry, Chief Commercial Officer P. Zimmermann, Director, Operations A. Fant, Deputy Director, Operations M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal 1. Determination of Quorum and Call to Order Chairman Rusovich determined the presence of a quorum and called the meeting to order at 9:37 A.M.

11 2. Public Comment Chairman Rusovich called for public comment, but there was none. 3. Chairman s Comments Chairman Rusovich did not have any comments. 4. President & Chief Executive Officer s Comments Mr. LaGrange informed the committee that he circulated an upcoming schedule of events list. Commissioner Chouest informed the committee of an event taking place on March 4 th involving a tour of the Island Performer, a well intervention ship, which he encouraged the commissioners to participate in. 5. Briefing and Discussion Items A. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Cooperative Endeavor Agreement with the Louisiana Department of Economic Development, the State of Louisiana, Division of Administration, the New Orleans Steamboat Company and Viking USA LLC for the Commencement of Viking River Cruises Operations in the Port of New Orleans. Mr. Gallwey presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into a cooperative endeavor agreement with the Louisiana Department of Economic Development, the State of Louisiana, Division of Administration, Viking USA LLC and the New Orleans Steamboat Company to establish and operate a Mississippi River cruise land-based headquarters in New Orleans commencing by July 1, He disseminated a handout outlining the terms and conditions for the Viking Mississippi vessel, a copy of which is made part of these minutes. Commissioners Chouest and Rusovich commented on the significance of having the Viking Cruise Line come to New Orleans. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting later this morning.

12 B. Update on the Agreement Regarding Real Estate (ARRE) for the Mega Plastics District. Mr. Bonura updated the committee on the sale of Board property to Alvar Industries, LLC. He reminded the commissioners that, in addition to the appraised value of the land to be sold, the contract was set up so that the Board would have a reasonable expectation that the project would generate approximately $250,000 or more in annual revenue from cargo generated by the project. He stated that an updated appraisal on the acre site establishing its value at $3,213,214 represents an increase in value. The agreement to sell the property contemplates that Alvar provide evidence that it has packaging contracts that in the aggregate exceed 90% of the minimum capacity of 9,000 containers per year or 495,900,000 pounds per year for at least five years. Alvar provided an affidavit stating it has a contract with a customer for 1,001,000 metric tons and estimates that the contract will generate 41,500 containers for five years after the commencement of operations. The Board s auditors have reviewed and found minor discrepancies between Alvar s estimate of the containers generated by the contract and their own estimates. However, he stated that volumes are subject to interpretation and that it is impossible to know with certainty how the weight provided in the packaging contract will translate into container volumes. Mr. Bonura reiterated that, even using the most negative assumptions about how much weight will be packed into each container, the Board will realize annual revenue for handling containers of approximately $225,000 per year in addition to the $3.2 million land sale. Commissioner Barkerding expressed concern about using weight as a measure where the ARRE speaks in terms of containers only. Mr. Bonura stated that the ARRE sets the minimum capacity in terms of the number of containers or weight. He said that staff contemplated that Alvar s contract with its customers to package plastics would be tied to weight, but confirmed that the Board s cargo revenue at the container terminal is generated by the number of containers. Commissioner Rusovich stated that he agreed with Commissioner Barkerding that we should stick to containers with the understanding that the calculations will fluctuate and that we should see how things develop going forward. Commissioner Rusovich asked Mr. Landry if his projected numbers for this project were well beyond the minimum number containers agreed to in the ARRE. Mr. Landry replied affirmatively. Alvar s contract guarantees only a portion of the cargo generated by plastics manufacturing projects underway. He remarked that 9,000 containers is a very attainable number. Mr. Bonura commented that these numbers in Alvar s contract reflect only what Alvar has under contract today as justification for the Board s selling the land and that Alvar is working to secure additional business.

13 Commissioner Rusovich asked if the spot market numbers were included in the ARRE s guarantee of container requirements. Mr. Bonura replied no, commenting that Alvar s spot market business will bring in additional containers and revenue to the Board. C. Briefing on and Discussion of a Resolution Commemorating the Public Service of Mr. Patrick J. Gallwey on the Occasion of His Retirement. Mr. LaGrange yielded to Mr. Gussoni to present a resolution commemorating the almost 35 years of public service of Mr. Gallwey at the Port. Mr. Gussoni stated that staff had prepared the resolution now before the committee for its consideration. Also he said that staff had approached the New Orleans City Council and the Louisiana State Legislature to acquire commendations for Mr. Gallwey and that both had agreed to issue such commendations with no reservations. Those commendations will be addressed at the Board meeting. Commissioner Rusovich said that comments by the commissioners on Mr. Gallwey s service will be made at the public meeting today. After this discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting later this morning. D. Report on Napoleon Avenue Container Terminal. Mr. LaGrange said he charged Ms. Christian to come up with some ideas to reduce the congestion. She then reported on some actions the Port is attempting to take, covering the short-term and long-term solutions brainstormed between Ms. Fant, Mr. Zimmermann and herself. Ms. Christian highlighted some of the short-term solutions: CB radios, smartphone texting, traffic studies, and applications for funding. For long-term solutions, she offered: a gate study, a steel wheel shuttle, a truck queuing lane, and the extension of gate hours during mornings and Saturdays. Commissioner Kearney stated that he was excited that the staff is focused on gathering information for congestion solutions at the Port and container terminals. Much of the discussion thereafter focused on the significance of getting data on the congestion which everyone agreed is very important. Commissioner Kearney stated that this is a multifaceted problem and the data will show us what is happening on any given day. Mr. LaGrange said we are in the process of getting an updated Volkert study. Commissioner Chouest stated that tracking trucks can be easily accomplished with an iphone application, which should cost only $20,000 to $25,000 to develop. Commissioner Kearney asked Mr. Gussoni what legal rights the Board had arising out of its leases to help resolve this issue, and Mr. Gussoni reported that the leases do not give the Board a strong position to intervene to mandate a resolution of this issue because when the agreements were drafted in 2002 or so, the Board s position was that this was an operating issue to be resolved between the two tenants, but he said his staff and he would take another look at the documents to see if they could find something to work

14 from. Commissioner Bergeron suggested that it might be a good idea to ask outside counsel to put a fresh pair of eyes on the agreements. Commissioner Bergeron asked about the status of the transponders and wondered why we are not using them. Ms. Fant stated they are not connected to the system anymore. Ms. Christian indicated we would explore technologies and solutions and look at all the different options available. Commissioner Chouest said we need to get this going fast. Mr. LaGrange addressed The Sun Herald story about Chiquita s continued operation in Gulfport because of the congestion at the Port. Matt Gresham explained that the Associated Press, which distributed this story, got it wrong. Mr. Landry explained the delay was caused by the ripening rooms not being ready yet and not Port congestion. Commissioner Rusovich asked when the Chiquita ripening rooms would be complete, and Mr. Landry replied that Chiquita has given a date of May 1, E. Briefing on the Ceremony Celebrating the 250 th Anniversary of the Arrival of Acadians to Louisiana on October 12, Mr. LaGrange stated that he met with a delegation from Lafayette last Saturday and mentioned the October 12, 2015, celebration ceremony commemorating the 250 th anniversary of the arrival of Acadians in Louisiana. F. Cargo Report. Mr. Landry reported that cargo remained strong and that the breakbulk numbers were good. He stated that in January, breakbulk cargo moved 44% more than last January and containers were up in January by 7.6% compared to last January. G. Report on Vessel Calls. Mr. LaGrange reported that for the year from January this year compared to January last year there were 494 vessels compared to 478 last year. 6. Other Business. Mr. Zimmermann stated that the Port received a Department of Homeland Security grant several years ago for the installation of security cameras. He stated that there are approximately 180 cameras installed throughout the port, cargo facilities, and cruise terminals primarily for security purposes. Mr. Zimmermann stated that the secondary function is to save video (1) in the event of a criminal investigation which was initially reported to the Harbor Police Department, and (2) as a homeland security requirement. Mr. LaGrange asked Mr. Zimmermann to speak about the queuing lane that is under design. Mr. Zimmermann stated that the queuing lane is along Clarence Henry Truckway

15 and that there are occasions when trucks are backed up alongside the road. He stated that under the design, the two current lanes will be made into three lanes to create a safer environment to queue along the flood wall. Mr. Zimmermann stated that a lot of progress has been made and that staff will soon begin training on the video camera surveillance policy and use of the new camera technology. Commissioner Kearney announced that the Railroad Users Group will meet at the Port next Monday, March 2 nd at 2:00 p.m. 7. Adjournment There being no further business to come before the committee, Committee Chairman Rusovich adjourned the meeting at 10:56 A.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE REGULAR MEETING OF FEBRUARY 26, 2015 MEETING NO. 8, 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 11:08 A.M. ON THURSDAY, FEBRUARY 26, 2015, BY CHAIRMAN GREGORY R. RUSOVICH. COMMISIONERS PRESENT: COMMISSIONER ABSENT: STAFF: Gregory R. Rusovich, Chairman Scott H. Cooper, Vice-Chairman William T. Bergeron, Secretary-Treasurer Michael W. Kearney, Member Robert R. Barkerding, Jr., Member Laney J. Chouest, Member Daniel F. Packer, Jr., Member G. LaGrange, President and Chief Executive Officer P. Gallwey, Chief Operating Officer B. Christian, incoming Chief Operating Officer B. Gussoni, Executive Counsel D. Allee, Director, Cruise & Tourism C. Bonura, Director, Business Development

16 C. Dunn, Director, Port Development B. Landry, Chief Commercial Officer E. Pansano, Director, Internal Audit J. Ruckert, Chief Financial Officer P. Zimmermann, Director, Operations J. Cefalu, Deputy Director, Cruise & Tourism B. Ethridge, Manager, Business Development A. Fant, Deputy Director, Operations J. Fritz, Deputy General Counsel G. Hager, Director, Human Resources R. Hecker, Chief, Harbor Police Department M. Rubino, Staff Attorney K. Ordoyne, Staff Attorney R. Aragon-Dolese, Manager, Communications P. Matthews, Community Affairs Manager H. Fontenot, Paralegal D. Guarino, Port Development M. Gresham, Executive Assistant S. Ordoyne, Executive Assistant J. Crist, General Operations R. Munsch, Legal M. Villarreal, Claims Manager/Safety Officer H. Horan, Human Resources N. Polk, Communications D. Dillon, Services J. Moran, Executive Assistant P. Sirisophon, General Operations J. Meliet, Construction B. Parent, Audit D. Austin, Engineering B. Rivera, Engineering GUESTS: C. Balthazar, Riverworks T. Wells, Waldemar S. Nelson & Co. G. Davis, ILA D. Magee, ILA M. Bell, HMM W. Evans, HMM D. Francis, Office of the Mayor New Orleans R. Gonzales, Biehl & Co. F. Bennett, GEC, Inc. I. Determination of Quorum and Call to Order Chairman Rusovich determined the presence of a quorum and called the meeting to order at 11:08 A.M. II. Pledge of Allegiance

17 Chairman Rusovich 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 January, 2015, Meetings On motion duly made by Commissioner Kearney and seconded by Commissioner Cooper, the Board unanimously approved the minutes of its meetings of January, 2015, as previously circulated. IV. Acceptance of Financial Statement for January, 2015 On motion duly made by Commissioner Cooper and seconded by Commissioner Barkerding, the Board unanimously accepted the January, 2015, Financial Statement as previously circulated. Chairman Rusovich announced that the meeting was open to the public and said any member of the public who would like to comment should see Mr. Matthew Gresham. V. Actions Required A. Consider Approval of a Resolution Awarding a Contract to Command Construction Industries, LLC, for the Poland Avenue Cruise Terminal Phase I MARAD Access Roadway Improvements. Ms. Dunn presented and recommended approval of a resolution awarding a contract in the amount of $1,377,750 to Command Construction Industries, LLC, for all labor, material, and equipment for Phase 1 of the MARAD access roadway improvements at the Poland Avenue Cruise Terminal. Commissioner Bergeron advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. B. Consider Approval of a Resolution Awarding a Contract to Barber Brothers Contracting Company, LLC, for the Perry Street Wharf Access Roadway Paving Improvements. Ms. Dunn presented and recommended approval of a resolution awarding a contract in the amount of $262,011 to Barber Brothers Contracting Company, LLC, for all labor, material, and equipment for asphalt removal, disposal, and grading at the Perry Street Wharf. Commissioner Bergeron advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Barkerding seconded the motion. MOTION CARRIED UNANIMOUSLY.

18 C. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Barber Brothers Contracting Company, LLC, for Asphalt Paving Improvements at the Milan Upland Yard. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $62, to the contract with Barber Brothers Contracting Company, LLC, to reconcile line items, add new line items for additional required work, and assess ascertained and liquidated damages at Milan Upland Yard in order to close out the project. Commissioner Bergeron advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Kearney seconded the motion. MOTION CARRIED UNANIMOUSLY. D. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Modjeski and Masters, Inc., for As-Needed Professional Services for Bridges at the St. Claude Avenue Bridge. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $170,000 to the contract with Modjeski and Masters, Inc., to provide design and construction engineering and inspection services for replacement of the roadway grating at the outside lanes of the St. Claude Avenue Bridge. Commissioner Bergeron advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. E. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with AECOM Technical Services, Inc., for Professional Engineering Services for the Mississippi River Intermodal Terminal and Yard Improvements. Ms. Dunn presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment in the amount of $495,309 to the contract with AECOM Technical Services, Inc., to provide design review and manufacturing/assembly oversight for the purchase of rubber tire gantry cranes. Commissioner Bergeron advised the Board that the Planning and Engineering Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Barkerding seconded the motion. MOTION CARRIED UNANIMOUSLY.

19 F. Consider Approval of a Resolution Awarding a Contract to McFarland Cascade Holdings, Inc., for the Purchase of 500 Eighty-Foot Untreated Timber Piles for Use in Maintenance of Board Fender Systems. Mr. Zimmermann presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into a contract in the amount of $316,500 to McFarland Cascade Holdings, Inc., for the purchase of 500 eighty-foot timber piles. Commissioner Kearney advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Barkerding seconded the motion. MOTION CARRIED UNANIMOUSLY. G. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Renew the Board s Pri mary and Exces s Property Insurance, Boiler and Machinery/Equipment Breakdown Insurance, NFIP Property Insurance, Primary and Excess General Liability Insurance, Hull and Machinery and P & I Insurance, Vessel Pollution Liability Insurance, Public Off icial s Liability Insurance, Law Enforcement Liability Insurance, Government Crime Insurance and Business Automobile Liability Insurance through the Broker Marsh, Inc. Mr. Gussoni presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to renew the Board s primary and excess property insurance, boiler and machinery/equipment breakdown insurance, NFIP property insurance, primary and excess general liability insurance, hull and machinery and P & I Insurance, vessel pollution liability insurance, public official s liability insurance, law enforcement liability insurance, government crime insurance and business automobile liability insurance through the broker Marsh, Inc. Commissioner Kearney advised the Board that the Property and Insurance Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Barkerding seconded the motion. MOTION CARRIED UNANIMOUSLY. H. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Berthing Agreement with Carnival Corporation Regarding Carnival Vessels Calling at the Port of New Orleans. Mr. Allee presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the berthing agreement with Carnival Corporation regarding Carnival vessels calling at the Port of New Orleans. Commissioner Kearney advised the Board that the Property and Insurance Committee

20 had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. I. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Cooperative Endeavor Agreement with the Louisiana Department of Economic Development, the State of Louisiana, Division of Administration, the New Orleans Steamboat Company and Viking USA LLC for the Commencement of Viking River Cruises Operations in the Port of New Orleans. Mr. Gallwey presented and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a cooperative endeavor agreement with the Louisiana Department of Economic Development, the State of Louisiana, Division of Administration, the New Orleans Steamboat Company and Viking USA LLC for the commencement of Viking River Cruises operations in the Port of New Orleans. This is a ten-year berthing agreement as well as a ten-year extension of the Port s lease with the New Orleans Steamboat Company at the Toulouse Street Wharf. Commissioner Rusovich advised the Board that the Executive Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. J. Consider Approval of a Resolution Commemorating the Public Service of Mr. Patrick J. Gallwey on the Occasion of His Retirement. Mr. LaGrange presented and recommended approval of a resolution commemorating the public service of Mr. Patrick J. Gallwey on the occasion of his retirement. Commissioner Rusovich and Mr. LaGrange asked that Mr. Gallwey and his wife approach the podium, and then they gave a speech praising Mr. Gallwey s professional expertise and his personal accomplishments during the course of an almost 35-year career in public service at the Port of New Orleans. Next they presented him with a plaque on behalf of the Port, a certificate from the City Council of the City of New Orleans, and an official statement from the State of Louisiana through Governor Jindal, all commemorating his long public service. Mr. Gallwey addressed the audience, the commissioners, and his wife in a brief speech on his career with the Port of New Orleans. He thanked all of his assistants in the executive department, the commissioners, and the entire Port staff. Commissioner Rusovich advised the Board that the Executive Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY.

21 VI. Report by the President and Chief Executive Officer. Mr. LaGrange mentioned the arrival of Viking USA LLC to commence on July 1, He mentioned that the Port is having another strong robust month in this very good fifth fiscal year in a row. Commissioner Rusovich mentioned a new CMA CGM service on a weekly basis. Mr. LaGrange announced that the Port lost its Administrative Services Manager Terry Martin unexpectedly and that he will be sorely missed by everyone. Mr. LaGrange read an that Mr. Zimmermann received from a cruise passenger couple who parked on the top level of the parking garage. The couple had forgotten to roll up one of their car windows. On their return to their delight and surprise, they noticed that in their absence a covering had been placed over the opened window preventing rain from getting inside. Mr. LaGrange thanked the staff for making extra kind efforts like this on a regular basis. VII. Old Business Each commissioner spoke briefly to commemorate Mr. Gallwey s public service and wished him well in his retirement. VIII. New Business Commissioner Rusovich announced for the next meeting that he appointed a nominating committee which consists of Commissioners Cooper, Kearney, and Bergeron. IX. Adjournment There being no further business to come before the Board, the meeting was adjourned at 11:43 A.M. NEXT MEETING: 11:00 A.M., Monday, March 30, 2015