BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING DECEMBER 15, 2014

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1 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING DECEMBER 15, 2014 A MEETING OF THE BUDGET COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY AD HOC COMMITTEE CHAIRMAN LANEY J. CHOUEST AT 1:35 P.M. ON MONDAY, DECEMBER 15, COMMITTEE MEMBERS Laney J. Chouest, Ad Hoc Chairman PRESENT: Gregory R. Rusovich, Member 1:38) William T. Bergeron, Member Michael W. Kearney, Member Robert R. Barkerding, Jr., Member MEMBERS ABSENT: STAFF: GUESTS: Daniel F. Packer, Jr., Member Scott H. Cooper, Committee Chairman G. LaGrange, President and Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel B. Landry, Chief Commercial Officer 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 In the absence of Committee Chairman Cooper and because Board Chairman Rusovich was running late, Commissioner Bergeron as the senior commissioner present assumed the role of Ad Hoc Board Chairman and then appointed Commissioner Chouest to serve as Ad Hoc Chairman for purposes of holding this committee meeting only. Ad Hoc Committee Chairman Chouest determined the presence of a quorum and called the meeting to order at 1:35 P.M.

2 B. Public Comment Ad Hoc Committee Chairman Chouest called for public comment, but there was none. C. Briefing and Discussion Items 1. Review of November, 2014, Financial Statement. Mr. Ruckert briefed the committee regarding the November, 2014, financial statement. He distributed a report detailing the financial information, a copy of which is made part of these minutes. He stated that November was another good month, the best month that the Port has had this fiscal year for operating revenue and probably the best operating revenue through the month of November that we have had in more than ten years. He announced that expenses were below the budget in most areas with the exception of executive. Mr. Ruckert stated that revenue for operations, real estate leases, and other rentals came in higher than the projected budget, with the exception of cruise operations, which came in $13,000 below the budget. He stated that revenue from terminal operations came in higher than the projected budget, with the exception of harbor fees. Mr. Landry attributed the lower revenues from harbor fees to November being a short month because of the holidays. He also stated that container volumes were flat from previous months, therefore not producing an increase in volumes. After discussion, the committee indicated it would recommend acceptance of this month's financial statement to the Board at its next scheduled regular meeting. 2. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Professional Services Contract with KPMG Corporate Finance, LLC, to Provide for a Container Market and Breakbulk Market Forecast. Mr. Ruckert briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the professional services contract with KPMG Corporate Finance, LLC, to provide for a container market and breakbulk market forecast. Mr. Ruckert said that the KPMG contract needed to be amended to allow RK Johns and Associates to complete this work under KPMG. The additional work would increase the contract by $54,000. Commissioner Rusovich asked whether or not an outline was produced by KPMG. Mr. Landry responded to Commissioner Rusovich s question by explaining that, based on the container side, KPMG proposed that they were not going to provide numbers or an inventory because of the large amount of commodities. He stated that, on the breakbulk side, it is more manageable with respect to the amounts, numbers, and inventory of containers and commodities.

3 Commissioner Rusovich also stated that he would like to see more macro data that KPMG can produce on how it builds its models. He also recommended that RK Johns and Associates come present its projections to the Board after their study is completed. In addition, Mr. Ruckert provided a brief update on the Harbor Police Retirement System regarding the liquidation of its assets before July 1, D. Adjournment There being no further business to come before the committee, Ad Hoc Committee Chairman Chouest adjourned the meeting at 2:00 P.M.

4 BOARD OF COMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PLANNING AND ENGINEERING COMMITTEE MEETING DECEMBER 15, 2014 A MEETING OF THE PLANNING AND ENGINEERING COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BYCOMMITTEE CHAIRMAN WILLIAM T. BERGERON AT 2:02 P.M. ON MONDAY, DECEMBER 15, COMMITTEE MEMBERS PRESENT: MEMBER ABSENT: STAFF: GUESTS: William T. Bergeron, Committee Chairman Gregory R. Rusovich, Member Scott H. Cooper, 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. Gussoni, Executive Counsel D. Keller, Director, Port Development B. Landry, Chief Commercial Officer P. Zimmermann, Director, Operations C. Dunn, Deputy Director, Port Development A. Fant, Deputy Director, Operations M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney B. Ethridge, Manager, Business Development W. Stokes, Executive Secretary H. Fontenot, Paralegal C. Balthazar, Riverworks Craig Boes, Boes Iron Works, Inc. Judson McCleod, New Orleans Iron Works K. Comeaux, Centric Gulf Coast John Hickman, Centric Gulf Coast

5 A. Determination of Quorum and Call to Order Committee Chairman Bergeron determined the presence of a quorum and called the meeting to order at 2:02 P.M. B. Public Comment Committee Chairman Bergeron called for public comment, but requested that it be held until after staff presentations. C. Briefing and Discussion Items a. Briefing on and Discussion of an Award of a Contract to Centric Gulf Coast, Inc., for the Napoleon Avenue Terminal Refrigerated Container Expansion. Ms. Keller briefed the committee on and recommended approval of a resolution to award a contract in the amount of $7,929,000 to Centric Gulf Coast, Inc., for all labor, material, and equipment for civil, structural, and electrical work necessary for the expansion of refrigerated container capacity by installation of additional refrigerated container plugs and personnel access platforms at the Napoleon Avenue Terminal. Commissioner Bergeron asked for public comment, at which time two visitors addressed the committee. Mr. Judson McCleod of New Orleans Iron Works out of Belle Chase, Louisiana, and Mr. Craig Boes with Boes Iron Works, Inc., both subcontractors from locally owned companies, expressed their frustrations and concerns about not being selected for the expansion project with the Board, while an out-of-state company Centric Gulf Coast, Inc., the lowest bidder, was awarded the project. Mr. McCleod expressed further concerns regarding issues relative to domicile and home state contractors. He also cited that bid documents are clear in that the winning bidder is required to perform 35% of the work and questioned to what extent the Board reviews a general contractor s use of subcontractors prior to awarding a contract. Ms. Keller and Mr. Gussoni said that the Board does not review a contractor s choice of subcontractors before a contract is awarded and generally does not even after award. Mr. Gussoni stated that Ms. Keller s contract administration department monitors the work of contracts on a daily basis and keeps track of the required percentages that are required on contracts. Commissioner Barkerding requested comments from Centric Gulf Coast, Inc., which was recommended for award of the expansion project contract. The two representatives of the company, Mr. Kevin Comeaux and Mr. John Hickman, both declined to comment. Commissioner Rusovich commented that from an overall perspective the Board strongly encourages contractors, whenever possible, to work with local labor pools and with local contractors who are taxed and keep their dollars locally. Heexpressed that he would appreciate staff doing a review of other states laws, California in particular, with a view to finding out which states are punitive towards Louisiana contractors trying to work in their respective states and which would be entitled to

6 reciprocity under Louisiana law. After discussion, the committee indicated it would refer this matter favorably the Board at its next regularly scheduled meeting. to b. Briefing on and Discussion of an Award of a Contract to Construction Management Enterprises, LLC, for the Demolition of Buildings at Morrison Yard. Ms. Keller briefed the committee on and recommended approval of a resolution to award a contract in the amount of $70,500 to Construction Management Enterprises, LLC, the lowest of ten responsive bidders for all labor, material, and equipment for demolition of buildings at Morrison Yard. It is funded by the Board s FY 2015 Capital Improvement Program. Commissioner Cooper and Commissioner Chouest asked questions about Construction Management Enterprises, LLC, being a first-time bidder, its low bid, and the existence of a performance bond. Staff assured them that the requirement of a performance bond in the contract was security to the Board for the contractor s fulfillment of its contractual obligations. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. c. Briefing on and Discussion of an Award of a Contract to Boh Bros. Construction, LLC, for the Inner Harbor-Navigational Canal Seabrook Bridge Approach Roadway Repairs Necessitated by Hurricane Katrina. Ms. Keller briefed the committee on and recommended approval of a resolution to award a contract in the amount of $39,315 to Boh Bros. Construction, LLC, for all labor, equipment and materials to repair damages to the asphalt on the Inner Harbor- Navigational Canal Seabrook Bridge approach roadway that was damaged by hurricanes. It is funded by hurricane recovery funds. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. d. Briefing on and Discussion of the Need for Additional Costs for Replacement of Two Additional Rail Support Beams Deemed Necessary by Consultants as Part of the Emergency Contract to Repair the Seabrook Bridge. Ms.Dunn discussed and updated the committee on the additional costs for replacement of two additional support beams that have deteriorated on the SeabrookBridge at a quoted price of $81,800 by Boh Bros. Construction LLC. This further deterioration was not discovered until after the declaration of extreme public emergency and the Board s subsequent ratification of it and its costs. The completion date is expected to be by the 19 th of this month. Authority for funding for this additional expense is covered by the President and Chief Executive Officer s declaration of extreme public emergency at the

7 Seabrook Bridge and his award of a contract for emergency structural repair work in the amount of $1,271,444 and the Board s ratification of the declaration and the emergency contracts at its regular meeting last month. D. Adjournment There being no further business to come before the committee, Committee Chairman Bergeron adjourned the meeting at 2:43 P.M.

8 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PROPERTY AND INSURANCE COMMITTEE MEETING DECEMBER 15, 2014 A MEETING OF THE PROPERTY AND INSURANCE 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 MICHAEL W. KEARNEY AT 2:44 P.M. ON MONDAY, DECEMBER 15, COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: STAFF: GUESTS: Michael W. Kearney, Committee Chairman Gregory R. Rusovich, Member Scott H. Cooper, Member William T. Bergeron, Member Robert R. Barkerding, Jr., Member Laney J. Chouest, Member Daniel F. Packer, Jr., Member G. LaGrange, President & Chief Executive Officer P. Gallwey, 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 B. Ethridge, Manager, Business Development M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal C. Balthazar, Riverworks A. Determination of Quorum and Call to Order Committee Chairman Kearney determined the existence of a quorum and called the meeting to order at 2:44 P.M.

9 B. Public Comment Committee Chairman Kearney announced that he would defer public comment if there was any until after the briefing and presentation of the items. C. Briefing and Discussion Items 1. Briefing on and Discussion of an Award of a Contract to Boland Marine and Industrial, LLC, for the Purchase and Installation of a Hydraulic Marine Deck Crane for the Public Service Vessel General Roy S. Kelley. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract in the amount of $80,210 to Boland Marine and Industrial, LLC, for the purchase and installation of a deck crane on the Public Service Vessel General Roy S. Kelley. The project will be fully funded by the Department of Homeland Security Port Security Grant. 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 an Award of a Contract to Konecranes Finland Corporation for the Purchase of Two Rubber Tire Gantry Cranes for Use at the Mississippi River Intermodal Terminal. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract in the amount of $4,850,000 to Konecranes Finland Corporation for the purchase of two rubber tire gantry cranes. Mr. Zimmermann mentioned that Konecranes Finland Corporation had concerns regarding items that they agreed on. He stated that, should they decide not to enter into the agreement, it would cost the company approximately $250,000 because it would forfeit its bid bond. Commission Chouest asked what the concerns of Konescranes Finland Corporation were. Ms. Fant replied that they failed to pay attention to all the commercial terms of the contract. For instance, they did not realize that they agreed to a five-year warranty. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting.

10 3. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with New Orleans Terminal LLC for Additional Refrigerated Container Receptacles at the Napoleon Avenue Container Terminal. Mr. Zimmermann briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement with New Orleans Terminal LLC (NOT) to cover the cost of the installation of 300 additional refrigerated container receptacles for the Chiquita business at the Napoleon Avenue Container Terminal. The Board would agree to make this improvement to its facility at the request of and for the efficiency of NOT, which has agreed to pay the full cost at the monthly rate of $76,844 for thirty-six months with a 4.25% interest rate. After discussion, the committee indicated it would refer this matter favorably the Board at its next regularly scheduled meeting. to 4. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Dixie Plastics, Inc., to Consent to the Termination of its Sublease with Morris Kirschman & Company, LLC, at 4250 Florida Avenue and to Remove the Same Property from the Kirschman Lease. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement with Dixie Plastics, Inc., to terminate its sublease with Morris Kirschman & Company, LLC, at 4250 Florida Avenue and removes the property from the Kirschman Lease. The purpose of this agreement is so that Global Recycling, LLC, can lease this particular property. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. 5. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Lease with Global Recycling, LLC, for Approximately 1.2 Acres at 4250 Florida Avenue and Approximately 1.2 Acres West of the Site. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a lease with Global Recycling, LLC. The lease would include approximately 2.4 acres composed of 1.2 acres of the former Dixie Plastics sublease of Morris Kirschman & Company s lease site. The new lease would increase rent to the market rate of $13,500 per acre per year for this acreage. Mr. Bonura indicated that if the letter of intent is not executed by Global Recycling, LLC, by the Board meeting on Thursday, this item would be removed from the agenda.

11 After discussion, the committee indicated it would refer this matter favorably to the Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with New Orleans Terminal, LLC (NOT) for Approximately Twelve Acres at France Road Terminal to Use During Construction at NOT s Lease Site at Napoleon Avenue and Granting to NOT the Option to Lease the Permitted Property after Construction and a Right of First Refusal on Approximately Ten Acres of Property Adjacent to the Permitted Property. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement with New Orleans Terminal, LLC (NOT). The purpose of the agreement is to permit NOT to use twelve acres at France Road Terminal at no cost during construction at its site on Napoleon Avenue and to grant it the option to lease the property after construction as well as a right of first refusal on ten acres adjacent to the permitted property. 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 Authorizing the President and Chief Executive Officer to Expend Additional Funds for the Provision of Ripening Equipment to Chiquita Brands International, Inc. (Chiquita), under the Cooperative Endeavor Agreement with Chiquita, the State of Louisiana, Division of Administration and the Louisiana Department of Economic Development. Mr. Landry briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to expend additional funds for the provision of ripening equipment to Chiquita Brands International, Inc. The total cost to the Board will be $2,600,000 maximum, of which $2,200,000 will be paid by the State of Louisiana, leaving the Board to contribute an additional $400,000. These costs will cover sixteen ripening rooms and will provide additional heating and cooling. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. 7. Briefing and Discussion of the Use of Part of the Florida Avenue Turning Basin for Barge Fleeting. Mr. Bonura briefed the committee on the use of part of the Florida Avenue turning basin for barge fleeting. He stated that more than one party is bidding on industrial property that has not been utilized in a long time. Mr. Bonura mentioned that there are currently two potential bidders for the leasing of a barge-fleeting area. He stated that he had been discussing with Florida Fleet and Star Fleet a possible leasehold comprising 3.8 acres of land and 7.8 acres of water bottoms with a primary term of five years and two fiveyear options. Mr. Bonura commented that the lessees would improve the property by installing mooring structures. He closed his discussion by acknowledging that the next step would be receiving bids from the two companies that are interested in order to move forward.

12 D. Adjournment There being no further business to come before the committee, Committee Chairman Kearney adjourned the meeting at 3:16 P.M.

13 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE EXECUTIVE COMMITTEE MEETING DECEMBER 18, 2014 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 9:40 A.M. ON THURSDAY, DECEMBER 18, COMMITTEE MEMBERS PRESENT: MEMBER ABSENT: 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. Gussoni, Executive Counsel B. Landry, Chief Commercial Officer M. Rubino, Staff Attorney M. Gresham, Director, External Affairs A. Pellegrin, Manager, Environmental Services 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 9:40 A.M. 2. Public Comment Chairman Rusovich called for public comment, but there was none.

14 3. Chairman s Comments Committee Chairman Rusovich had no comments. 4. President & Chief Executive Officer s Comments Mr. LaGrange had no comments. 5. Briefing and Discussion Items A. Update on Downtown Traffic Conditions Analysis Mr. Gallwey briefed the committee on a downtown traffic conditions study proposed by the City. He said that the City is proposing the traffic study to be funded by five entities and that a meeting with the group is planned for January 7, 2015, to determine participation. He also stated that he would like the Board to view the Convention Center s consultant s traffic model for Henderson and Julia Streets with two cruise ships on a Saturday and a Sunday. This was not available at the previous meeting and briefing with the Convention Center s study and analysis. B. Tax Credits Mr. Gresham briefed the committee on tax credits and distributed a handout of the Ports of LA Import Export Credit Program application detailing the preliminary certification information and instructions, a copy of which is made part of these minutes. He stated that no one can apply for the credit until after January 1, 2015, because it will be based on the 2013 base cargo. After 2014, any company can look back at what its 2014 base cargo was at that time, and if there were any increases over the 2013 base, it would be applicable for the credit. Mr. Landry stated that project cargo is included in the tax credits, but it must be a Louisiana tax-paying entity that is responsible for the cargo to qualify. Mr. Gresham stated that the program does not apply to bulk cargo. C. EPA s Proposed New Ozone Standards Ms. Pellegrin briefed the committee on the impacts of the U.S. EPA s proposed ozone standard and implementation time line. She reviewed the current and proposed new standards and the implications for maritime and industrial development. Ms. Pellegrin explained the different potential impacts and costs to industrial development and to Port construction projects. She stated that projects cannot have a negative impact on air quality and that the EPA and Louisiana DEQ could further target ports for air quality requirements.

15 Ms. Pellegrin spoke about the National Ozone Standard and indicated that levels for the greater New Orleans area currently are 71 parts per billion (ppb). The current standard is 75 ppb, and the proposed new standard is 65 to 70 ppb. She covered the U.S. EPA rule-making timeline ranging from comments to the U.S. EPA beginning in March, 2015, through the finalization in 2017, giving each region three to four years to develop plans to reach attainment. A. Cargo Report Mr. Landry stated that November was another good month for the Port and that the numbers were down a little from October and thereafter because of the holidays and shorter work time frames. He stated that the numbers are still really good over the course of the year. The TEU numbers are up more than 10% year to date and break bulk numbers are up more than 65% year to date. Commissioner Rusovich commented on the status of TEU numbers from last year to date. Mr. Landry stated that last year at this point, the numbers were at 190,000 TEU s and currently the numbers are at 210,000. He stated that for the fiscal year, he is expecting the Port to come very close to exceeding 500,000 TEU s. If so, it will be the first time in the history of the Port. Mr. Landry mentioned that he has been speaking to many people and that orders on the books are coming in for the first quarter of He commented that the container number will continue to be strong and expects a new announcement in the spring on new container service to New Orleans. B. Appointment to the Board of New Orleans Regional Business Park Mr. Gresham briefed the committee on the appointment by the Dock Board of a nominee to the board of the New Orleans Regional Business Park. He stated that the Park is 7,000 acres situated in New Orleans East. It has a seven-member board that was created in The Port did have staff on that particular Board. He stated that it has not been a successful park considering it has been billed as the world s largest industrial park, yet it operates on its own and brings in revenue of only $306,000 annually. It exceeded its budget for the past two years. Mr. Gresham stated that he sees this appointment by the Dock Board as an opportunity in the future for the Port of New Orleans. He suggested that Chris Bonura be nominated by the Dock Board. C. Board Meeting Dates for 2015 Mr. LaGrange stated that he handed out next year s Board meeting date list, a copy of which is included as part of these minutes.

16 D. New Orleans Public Belt Railroad Mr. LaGrange informed the committee that there has been a proposal by a private group to purchase the Public Belt Railroad in the city of New Orleans. He stated the reason for bringing up this topic to the committee was for discussion and to have their thoughts. He acknowledged that he does not know where the sale stands as of today, but that, as far as he knows, the Mayor is opposed to it, at least for the low quoted offer made, and so is the Public Belt. Commissioner Kearney stated that he is against the sale of the Public Belt Railroad to a Class 1 railroad. He imparted some information about the individual who has made this proposal and expressed his concern about it being re-sold to another purchaser. Commissioner Kearney also stated that the Public Belt Railroad is doing well financially and that its service has improved tremendously. E. Report on Vessel Calls Mr. LaGrange stated that vessel calls are up again, and he reported that November had 101 ship calls as opposed to 93 in November, For the overall year, there were 1,099 vessel calls versus 968 last year. Other Business Commissioner Rusovich mentioned that he received a letter requesting nominations from the Board for the Bertel Award. He stated that he would like to recommend Senator Conrad Appel for the nomination because he has done a lot to support international commerce and asked the commissioners for their input or suggestions on any other nominations. Many commissioners expressed their support of Senator Appel. Commissioner Chouest raised a question regarding the bottleneck of trucks queuing to enter the Napoleon Terminal gate. Mr. LaGrange explained that the terminal operators are planning to implement an appointment software package which should be running by mid-january. Commissioner Chouest asked if the Board has any legal grounds to intervene in this situation. Mr. Gussoni explained to Commissioner Chouest that from a legal stand point, the joint use agreement in place between the two terminal operators does not allow the Port any authority to control the operation of the gate complex and the joint use area. He stated that there does not appear to be any strong legal position arising out of the joint use agreement that would permit the Port to intervene. Commissioner Kearney said that the Port is losing business despite the reports to the contrary. Commissioner Barkerding confirmed that, based on viewing the backlog, a potential customer indicated he was not bringing cargo to the Port. Mr. Landry indicated that he had several people ride in a truck to test how long it took to get through the gate and was waiting for a report on this. Mr. Gallwey said he spent two hours there on December 17, 2014.

17 Commissioner Rusovich said that we need to see how it plays out with the new software system to be implemented shortly. 6. Adjournment There being no further business to come before the committee, Committee Chairman Rusovich adjourned the meeting at 10:57 A.M.

18 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE REGULAR MEETING OF DECEMBER 18, 2014 MEETING NO. 6, 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, DECEMBER 18, 2014, BY CHAIRMAN GREGORY R. RUSOVICH. COMMISSIONERS 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. Gussoni, Executive Counsel C. Bonura, Director, Business Development R. Jumonville, Director, Cruise & Tourism D. Keller, 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 C. Dunn, Deputy Director, Port Development A. Fant, Deputy Director, Operations B. Ethridge, Manager, Business Development R. Hecker, Chief, Harbor Police Department J. Fritz, Deputy General Counsel M. Rubino, Staff Attorney A. Pellegrin, Manager, Environmental Services H. Fontenot, Paralegal S. Ordoyne, Executive Assistant

19 R. Aragon-Dolese, Manager, Communications R. Munsch, Legal S. Fauria, Manager, Information Technology D. Austin, Engineering L. Lofton, Internal Audit A. Brandenburg, Internal Audit P. Herring, Internal Audit B. Parent, Internal Audit B. Burger, Manager, Cranes Department S. Gauthier, Cruise & Tourism A. Hanks, Cruise & Tourism S. Reames, Cruise & Tourism H. Wilbert, Marketing D. Guarino, Port Development B. Cromartie, Engineering J. Jones, Communications N. Polk, Communications J. Meliet, Construction Administration J. Gommel, Berthing GUESTS: C. Balthazar, Riverworks T. Wells, Waldemar S. Nelson & Co. A. Deng, Intern R. Desselles, Centric Gulf Coast, Inc. A. Russell, Centric Gulf Coast, Inc. K. Calkins, New Orleans Terminal J. Torneli, Platts J. Runa, GLF W. Evans, Hatch Mott MacBanks A. Swift, Terracon 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 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 November, 2014, Meetings On motion duly made by Commissioner Kearney and seconded by Commissioner Cooper, the Board unanimously approved the minutes of its meetings of November, 2014, as previously circulated.

20 IV. Acceptance of Financial Statement for November, 2014 On motion duly made by Commissioner Cooper and seconded by Commissioner Bergeron, the Board unanimously accepted the November, 2014, Financial Statement as previously circulated. V. Public Comment Chairman Rusovich announced that the meeting was open to the public and said that any member of the public who wanted to make a comment should please see Mr. Matthew Gresham. VI. Actions Required A. Consider Award of a Contract to Centric Gulf Coast, Inc., for the Napoleon Avenue Terminal Refrigerated Container Expansion Ms. Keller presented and recommended approval of a resolution awarding a contract in the amount of $7,929,000 to Centric Gulf Coast, Inc., for labor and equipment costs for the refrigerated container expansion project at the Napoleon Avenue 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 Award of a Contract to Construction Management Enterprises,LLC, for the Demolition of Buildings at Morrison Yard Ms. Keller presented and recommended approval of a resolution awarding a contract in the amount of $70,550 to Construction Management Enterprises, LLC, for labor and equipment costs for the demolition of buildings at Morrison Yard. 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.

21 C. Consider Award of a Contract to Boh Bros. Construction, LLC, for the Inner Harbor-Navigational Canal Seabrook Bridge Approach Roadway Repairs Necessitated by Hurricane Katrina Ms. Keller presented and recommended approval of a resolution awarding a contract in the amount of $39,315 to Boh Bros. Construction, LLC, for labor and equipment costs to repair sections of the east and west asphalt approach roadways at the Seabrook Bridge necessitated by Hurricane Katrina. 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. D. Consider Award of a Contract to Boland Marine and Industrial, LLC, for the Purchase and Installation of a Hydraulic Marine Deck Crane for the Public Service Vessel General Roy S. Kelley Mr. Zimmermann presented and recommended approval of a resolution awarding a contract in the amount of $80,210 to Boland Marine and Industrial, LLC, for the purchase of a hydraulic crane and its installation on the Public Service Vessel General Roy S. Kelley. 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 Cooper seconded the motion. MOTION CARRIED UNANIMOUSLY. E. Consider Award of a Contract to Konecranes Finland Corporation for the Purchase of Two Rubber Tire Gantry Cranes for Use at the Mississippi River Intermodal Terminal Mr. Zimmermann presented and recommended approval of a resolution awarding a contract in the amount of $4,850,000 to Konescranes Finland Corporation for the purchase of two rubber tire gantry cranes to be used at the Mississippi River Intermodal Terminal. 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. F. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with New Orleans Terminal LLC for Refrigerated Container Receptacles at the Napoleon Avenue Container

22 Terminal G. Mr. Zimmermann presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement with New Orleans Terminal LLC (NOT) requiring NOT to pay the Board over a 36-month period to install one hundred-fifty reefer container receptacles and five access platforms at the Napoleon Avenue Container Terminal at a cost of $2,593,000. 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 Cooper 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 New Orleans Terminal LLC (NOT) for Approximately Twelve Acres at France Road Terminal to Use During Construction at NOT s Lease Site at Napoleon Avenue and Granting to NOT the Option to Lease the Permitted Property after Construction and a Right of First Refusal on Approximately Ten Acres of Property Adjacent to the Permitted Property Mr. Bonura presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement with New Orleans Terminal LLC (NOT) for twelve acres at France Road Terminal to use during construction at NOT s lease site at Napoleon Avenue and granting to NOT the option to lease the permitted property after construction and the right of first refusal to lease an additional ten acres of property adjacent to the permitted property. 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 Bergeron seconded the motion. MOTION CARRIED UNANIMOUSLY.

23 I. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Expend Additional Funds for the Provision of Ripening Equipment to Chiquita Brands International, Inc. (Chiquita), under the Cooperative Endeavor Agreement with Chiquita, the State of Louisiana, Division of Administration, and the Louisiana Department of Economic Development Mr. Landry presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to expend funds for the purchase of a ripening room and related refrigerated equipment for Chiquita Brand International as prescribed under the cooperative endeavor agreement among the Port, Chiquita, and the State of Louisiana, Division of Administration, and the Louisiana Department of Economic Development. 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 Bergeron seconded the motion. MOTION CARRIED UNANIMOUSLY. J. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Professional Services Contract with KPMG Corporate Finance, LLC, to Provide for a Container Market and Breakbulk Market Forecast Mr. Ruckert presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an amendment to the professional services contract with KPMG Corporate Finance, LLC, to provide for the addition of a container market and breakbulk market forecast at a cost not to exceed $54,000. Commissioner Cooper advised the Board that the Budget Committee had met and reviewed the resolution with staff, and he moved for its approval. Commissioner Bergeron seconded the motion. MOTION CARRIED UNANIMOUSLY. VII. Report by the President and Chief Executive Officer Mr. LaGrange acknowledged the retirements, excellence, achievements, and services of the Board s Chief Engineer Ms. Deborah Keller after 26 1/2 years of service and of the Board s Director of Cruise and Tourism Mr. Robert Jumonville after 25 years of service with the Port of New Orleans. Commissioner Rusovich also recognized the contributions they made to the Port and praised their abilities, service and accomplishments during their careers with the Port. Mr. LaGrange mentioned that the Port had another good month and recognized the terminal operators and tenants of the Port. He read a letter that he received from the president of the American Association of Port Authorities. The letter stated that Mr.

24 Jumonville was nominated for the 2015 Cruise Award and chosen as co-honoree along with Mr. Rene Trepanier, Executive Director of Cruise the Saint-Lawrence in Quebec, Canada. Mr. LaGrange mentioned that he received a letter from Mr. Roger Stanton, Section Chief of the U.S. Department of Justice, expressing thanks for the support provided by the Port of New Orleans and the Harbor Police during the Marble Challenge exercise in November, He expressed his appreciation to the members of the Harbor Police force who deserve recognition for their support of Counter IED Section during the execution of this exercise. Mr. LaGrange acknowledged and introduced the Board s new intern from China, Ms. Arebise Deng, who is a graduate student at Tulane Energy Institute. Mr. LaGrange acknowledged a letter he received from the family of Dr. Merritt Becker, the master craftsman who handcrafted the model ships on display at the Port offices. He informed the audience that Dr. Becker passed away on November 14, VIII. Old Business No old business was reported. IX. New Business No new business was reported. X. Adjournment There being no further business to come before the Board, Chairman Rusovich adjourned the meeting at 11:29 A.M. NEXT MEETING: 11:00 A.M., Thursday, January 29, 2015