BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING SEPTEMBER 22, 2014

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1 BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE BUDGET COMMITTEE MEETING SEPTEMBER 22, 2014 A MEETING OF THE BUDGET COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY COMMITTEE CHAIRMAN SCOTT H. COOPER AT 1:34 P.M. ON MONDAY SEPTEMBER 22, COMMITTEE MEMBERS PRESENT: MEMBER ABSENT: STAFF: GUESTS: Scott H. Cooper, Committee Chairman Gregory R. Rusovich, 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 & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel J. Ruckert, Director, Finance & Information Technology C. Swain, Director, Administration M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal S. D Aunoy, Hub International 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 1:34 P.M. B. Public Comment Committee Chairman Cooper called for public comment, but there was none. Page 1 of 23

2 C. Briefing and Discussion Items 1. Review of August, 2014, Financial Statement. Mr. Ruckert briefed the committee regarding the August, 2014, financial statement. He distributed a report detailing the financial information, a copy of which is made part of these minutes. Mr. Ruckert stated that August was another good month and that expenses for the month were all below the budget. He announced that revenue for terminal operations, cruise operations, and real estate leases and other rentals came in higher than the budget projected. Mr. Ruckert stated that dockage was the only category that came in below the budget because of fewer vessels. 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. Update on Renewal of Health Care Benefits. Mr. Gallwey briefed the committee on the renewal of employee health care benefits and added that he is still waiting on proposals for the Medicare supplement from other companies to arrive. Mr. Gussoni briefed the committee on Louisiana law concerning the rights of Board retirees to health care benefits. He stated that retirees have a strong legal position in maintaining that some benefit in the nature of what has been offered over the last several decades is likely owed to them. Mr. Gussoni told the committee that the Board has a certain amount of latitude in making adjustments to deductibles, copayments, and other elements of healthcare benefits, but the Board, if challenged, could likely not prevail in a major reduction in what has been offered during retirees careers and since their retirement. Mr. Gallwey introduced Mr. Scott D Aunoy, the representative for HUB International, the Board s benefits broker. Mr. D Aunoy briefed the committee on plan options for Medicare supplements. He covered the current Medicare supplement health plan with Humana along with different option plans and an explanation of benefits. He summarized the performance of a mid-year plan that included loss ratio, claims, and cost-sharing analysis. Mr. D Aunoy explained different options and plans that are available to choose from. He discussed the Louisiana State Office of Group Benefits plan evaluation and self-funding options based on plan performance and marketing. The commissioners requested HUB to seek quotes from insurers for a $500 and a $1,000 deductible option so that they could make a more informed decision for this group of retirees. Page 2 of 23

3 After discussion, the committee indicated it would revisit this issue on Thursday, September 25, 2014, in the Executive Committee meeting when the additional requested information might be available. D. Adjournment There being no further business to come before the committee, Committee Chairman Cooper adjourned the meeting at 2:30 P.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PLANNING AND ENGINEERING COMMITTEE MEETING SEPTEMBER 22, 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 BY COMMITTEE CHAIRMAN WILLIAM T. BERGERON AT 2:30 P.M. ON MONDAY, SEPTEMBER 22, COMMITTEE MEMBERS PRESENT: MEMBER ABSENT: STAFF: 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 3:00 P.M.) 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 D. Keller, Director, Port Development J. Ruckert, Director, Finance & Information Technology A. Fant, Deputy Director, Operations M. Gresham, Executive Assistant for External Affairs B. Etheridge, Manager, Business Development M. Rubino, Staff Attorney Page 3 of 23

4 W. Stokes, Executive Secretary H. Fontenot, Paralegal GUESTS: L. Lambert, Stantec Consulting Services M. Hattori, Manning Architects J. Lavarte, Stantec Consulting Services C. Balthazar, Riverworks A. Determination of Quorum and Call to Order Committee Chairman Bergeron determined the presence of a quorum and called the meeting to order at 2:30 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 the Award of a Contract to Cuzan Services, LLC, for the Administration Building Water Intrusion Repairs. Ms. Keller briefed the committee on and recommended approval of the award of a contract in the amount of $379,000 to Cuzan Services, LLC, of Belle Chase, Louisiana. The purpose of the contract is for window and water intrusion repairs at the Board s administration building. 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 the Award of a Contract to Double Aught Construction, LLC, for the Repair of Damage to the Nashville Avenue Wharf A Substructure. Ms. Keller briefed the committee on and recommended approval of the award of a contract in the amount of $353,090 to Double Aught Construction, LLC. The purpose of the contract is for the repair of damage to the Nashville Avenue Wharf A substructure. That damage was caused by an unknown perpetrator and found during the annual low water inspection. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. Page 4 of 23

5 3. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Accept the Completion of the Construction Contract with Hard Rock Construction, LLC, for Louisiana Avenue Terminal Concrete Paving Improvements Phase 2. Ms. Keller briefed the committee on and recommended approval of a resolution authorizing acceptance of the completion of the construction contract with Hard Rock Construction, LLC. The resolution is to certify that the Board has accepted and completed the work done for Phase 2 of the Louisiana Avenue Terminal concrete paving. The reason for this particular procedure is that the project is funded by the Louisiana Port Priority Construction and Development Program. With the resolution to DOTD, it will return the remaining balance of Port funds. 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 the Proposed Convention Center Traffic Plan. Ms. Gallwey briefed the committee on a proposed Convention Center traffic plan and introduced Mr. Lambert and Mr. Lavarte, representatives from Stantec Consulting Services, and Ms. Hattori from Manning Architects. Stantec is the traffic engineering consultant for the Convention Center. Their goals are to revise the operations on Convention Center Boulevard in order to accommodate a linear park in front of the Convention Center, add additional traffic lanes, ease traffic congestion in and around the Convention Center as well as the Port of New Orleans, and install cab and bus bays at various points near and around the facilities. Mr. Lambert presented a model for the proposed project that includes implementations of a traffic management plan, a multimodal center under the bridge, pedestrian stations, and crosswalks. He also introduced a concept of a diamond pattern interchange to help with the flow of traffic and congestion that has proven to be very effective throughout the country in larger cities with high traffic volume. Commissioner Kearney expressed his concern over the viability of this plan to prove successful in New Orleans. He and other commissioners also expressed their concern over the fact that this plan would actually reduce one lane of traffic for trucks coming and going to Port facilities. Mr. Lambert addressed concerns from the committee regarding cruise ship activity in its peak times and traffic conditions. Although his plan incorporates Volkert s statistics and does detail and factor in the cruise activity on a weekday morning schedule, it does not factor in weekend cruise activity at the Port. Commissioner Rusovich requested that Mr. Lambert amend his study to address this and provide the committee with a model that includes statistics containing weekend cruise activity and convention center traffic activity and conditions. Mr. Lambert agreed to do so. 5. Briefing on and Discussion of a Proposed Monument Site. Page 5 of 23

6 Mr. Gallwey and Ms. Fant briefed the committee on the site of a proposed monument being funded by a private group with an interest in music in New Orleans. The group has raised enough money to build a monument commemorating the Warehouse, a local music venue in the 1960 s and 1970 s that featured many of the iconic rock and roll groups of that era. The group wants to build its monument on City property near the Port s uptown terminals entrance at Felicity Street. The City of New Orleans approached the Port requesting its input before it goes to the City s Planning Advisory Committee where the project will be discussed. Commissioners expressed their concern that it will put people near and create more traffic congestion and safety issues at the Port s ingress and egress to its uptown facilities and that the Port must protect what little area it has to conduct its business. Commissioners expressed concern that this is an inappropriate place for this monument. The Board suggested that a letter be sent to the City expressing opposition by the Port to this project. D. Adjournment There being no further business to come before the committee, Committee Chairman Bergeron adjourned the meeting at 3:30 P.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE PROPERTY AND INSURANCE COMMITTEE MEETING SEPTEMBER 22, 2014 A MEETING OF THE PROPERTY AND INSURANCE COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 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 3:30 P.M. ON MONDAY, SEPTEMBER 22, COMMITTEE MEMBERS PRESENT: Michael W. Kearney, Committee Chairman Gregory R. Rusovich, Member Scott H. Cooper, Member 3:55 p.m.) William T. Bergeron, Member Page 6 of 23

7 Robert R. Barkerding, Jr., Member MEMBERS ABSENT: STAFF: Daniel F. Packer, Jr., Member Laney J. Chouest, Member G. LaGrange, President & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel C. Bonura, Director, Business Development P. Zimmermann, Director, Operations A. Fant, Deputy Director, Operations M. Gresham, Executive Assistant for External Affairs B. Etheridge, Manager, Business Development M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal A. Determination of Quorum and Call to Order Committee Chairman Kearney determined the existence of a quorum and called the meeting to order at 3:30 P.M. 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 a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Empire Stevedoring (LA), Inc., to Lease the First Street Wharf. Mr. Zimmermann briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into a lease with Empire Stevedoring (LA), Inc. (Empire). He stated that there had been discussion for the past several months regarding the lease of the First Street Wharf to Empire. Mr. Zimmermann stated that the Port has obtained a letter of commitment from the company that states Empire is ready to move forward with the new agreement, which includes leasing the entire terminal beginning November 1, The term is two years with two one-year renewals at a minimum annual revenue guarantee of $353,400. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. Page 7 of 23

8 2. Briefing on and Discussion of an Award of Contract to M & L Industries, LLC, for the Purchase of a 36,000-Pound Lifting Capacity Forklift for the Board s Container Crane Department. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract to M & L Industries, LLC, for the purchase of a forklift at a cost of $148,879. 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 an Award of Contract to Premier Automotive Products, LLC, dba Premier Chrysler Jeep Dodge for the Purchase of Two 2014 Law Enforcement Dodge Chargers for the Harbor Police Department. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract to Premier Automotive Products, LLC, for the purchase of two vehicles at a cost of $47,016. 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 an Award of Contract to Bill Hood Ford, Inc., for the Purchase of One 2015 Ford Interceptor for the Harbor Police Department. Mr. Zimmermann briefed the committee on and recommended approval of a resolution to award a contract to Bill Hood Ford, Inc., for the purchase of one Ford Interceptor at a cost of $25,343. Mr. Zimmermann stated that $28,000 was budgeted for the expenditure in this year s capital budget. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. 5. Briefing and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease at 5100 Jourdan Road with CAT 5 Composites, LLC. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the Board s lease at 5100 Jourdan Road with CAT 5 Composites, LLC. The amendment, to become effective November 1, 2014, would extend the primary term of the lease by two years, increase the rent by 10%, and replace one three-year option period with three two-year option periods. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. Page 8 of 23

9 6. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease at France Road Terminal Berths 3 and 4 with Boh Bros. Construction Company, LLC. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to enter into an amendment to the Board s lease at France Road Terminal Berths 3 and 4 with Boh Bros. Construction Company, LLC, by extending the rent commencement date to the earlier of January 31, 2015, or the start of operations pending permit issues. Commissioners Kearney and Barkerding stated that deferring the commencement of rent payments to January 31, 2015, was unnecessary and proposed an earlier date of November 1, The commissioners instructed Mr. Bonura to speak to Boh Bros. about this and report to the Board at its Executive Committee meeting on Thursday, September 25, Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Consent to an Amendment to the Sublease between Board Lessee Pontchartrain Materials Corporation and Its Approved Sublessee Boh Bros. Construction Company, LLC. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to consent to an amendment to the sublease between Pontchartrain Materials Corporation and Boh Bros. Construction Company, LLC. Mr. Bonura stated that the current sublease expires on January 31, 2015, and Boh Bros. Construction Company, LLC, would like to extend the lease for five months. The extension would provide additional time for the company to move into its new site. After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting unless final resolution of the issues raised on the previous action item determined otherwise as these two matters are connected. 8. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease at 7000 Jourdan Road with IT Minerals, LLC. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing the President and Chief Executive Officer to amend the Board s lease at 7000 Jourdan Road with IT Minerals, LLC (IT). Mr. Bonura stated that IT is a new tenant from Mexico that transfers and processes a mineral known as perlite. The amendment would add 1/3 of an acre at Morrison Yard north of the lease to allow IT to gain rail access to its lease site. Page 9 of 23

10 After discussion, the committee indicated it would refer this matter favorably to the Board at its next regularly scheduled meeting. 9. Briefing on and Discussion of a Proposal to Terminate the Dixie Plastics Sublease to the Morris Kirschman & Company Lease at 4200 Florida Avenue. Mr. Bonura briefed the committee on and recommended that the commissioners consider a proposal to terminate the Dixie Plastics sublease to The Morris Kirschman & Company lease at 4200 Florida Avenue. He stated that the term for this sublease extends through the year 2050 and that Dixie Plastics offered to sell its building to the Board for $100,000. Mr. Bonura advised that the purchase of the building would not be in the best interest of the Port as it would take several years of renting the property at present market rate to compensate for the purchase of the building at that price. He recommended that different options should be presented to Dixie Plastics. One of those options is that the company be allowed to terminate without cash changing hands and with Dixie being relieved of its obligation under the lease to demolish the building. This way the Port would not have to pay for the building. Also, the Port could require Dixie Plastics to clean up the site and improve conditions such that someone might be willing to buy the building or lease it at the market rate. Mr. Bonura was instructed to pursue a termination with little or no cash changing hands. D. Adjournment There being no further business to come before the committee, Committee Chairman Kearney adjourned the meeting at 4:05 P.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE EXECUTIVE COMMITTEE MEETING SEPTEMBER 25, 2014 A MEETING OF THE EXECUTIVE COMMITTEE OF THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER Page 10 of 23

11 BY COMMITTEE CHAIRMAN GREGORY R. RUSOVICH AT 9:33 A.M. ON THURSDAY, SEPTEMBER 25, COMMITTEE MEMBERS PRESENT: ABSENT MEMBER: STAFF: GUESTS: 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 (arrived at 9:59A.M.) 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 J. Ruckert, Director, Finance & Information Technology C. Swain, Director, Administration P. Zimmermann, Director, Operations M. Gresham, Executive Assistant for External Affairs M. Rubino, Staff Attorney W. Stokes, Executive Secretary H. Fontenot, Paralegal P. Matthews, Executive Assistant G. Lazaras, New Orleans Maritime Heritage Foundation J. Tynan, Montgomery Barnett, L.L.P E. LeBreton, III, Fowler Rodriguez & Chalos 1. Determination of Quorum and Call to Order Committee Chairman Rusovich determined the presence of a quorum and called the meeting to order at 9:33 A.M. 2. Public Comment Committee Chairman Rusovich called for public comment, but there was none. 3. Chairman s Comments Committee Chairman Rusovich had no comments. 4. President & Chief Executive Officer s Comments Page 11 of 23

12 As part of his comments, Mr. LaGrange yielded the floor to Ms. Gail Lazaras of the New Orleans Maritime Heritage Foundation. Ms. Lazaras gave a brief presentation on Tall Ships as well as her plans on bringing a tall ship to the City of New Orleans permanently so that people can experience and enjoy the water in a different manner. Ms. Lazaras stated that she is in the process of orchestrating the project and welcomed any suggestions and connections in and around the city who might be interested in assisting her and the Tall Ship project. Committee Chairman Rusovich provided suggestions to her about the people he could introduce her to in the maritime community. 5. Briefing and Discussion Items Committee Chairman Rusovich varied the order of the published agenda in order to make sure Commissioner Chouest was present for the discussion of the executive session items. Accordingly, Items B and C were taken up first, and then, after Mr. Chouest s arrival, Items A and D were taken up. A. Executive Session Items 1. Briefing on and Discussion of the Board s Claim in that Certain Lawsuit Captioned Board of Commissioners of the Port of New Orleans v. Bollinger Gulf Repair, LLC, Bollinger Shipyards, Inc., American Marine Corporation, Temporary Marine Company, Barge Owners 1, 2, and 3, Keasbey & Mattison Company, and Insurance Companies AB, DC, EF, GH, IJ, KL, MN, OP, QR, ST, UV, and WX, Civil District Court for the Parish of Orleans, State of Louisiana, Docket No , Section H-12. At 10:03 A.M., a motion was made by Commissioner Cooper and seconded by Commissioner Chouest to go into executive session to allow Messrs. Tynan and Gussoni to brief the committee on and discuss the Board s claim in that certain lawsuit Board of Commissioners of the Port of New Orleans v. Bollinger Gulf Repair, LLC, Bollinger Shipyards, Inc., American Marine Corporation, Temporary Marine Company, Barge Owners 1, 2, and 3, Keasbey & Mattison Company, and Insurance Companies AB, DC, EF, GH, IJ, KL, MN, OP, QR, ST, UV, and WX, Civil District Court for the Parish of Orleans, State of Louisiana, Docket No , Section H-12. The motion passed unanimously, and the Board went into executive session at that time. Messrs. Tynan and Gussoni briefed the committee on this matter and answered any questions asked by the commissioners. At 10:16 A.M., a motion was made by Commissioner Cooper to end the executive session and return to the open meeting. The motion was seconded by Page 12 of 23

13 Commissioner Chouest, passed unanimously, and the executive session ended at that time. 2. Briefing on and Discussion of the Board s Claim in that Certain Lawsuit Captioned Michelle Collins vs. ABC Marine Towing, LLC, and Board of Commissioners of the Port of New Orleans, CA No. 14-CV-1900, U.S. District Court for the Eastern District of Louisiana, Division L, and that Certain Lawsuit Captioned Nicholas Manno and Jeremy Sylve vs. ABC Marine Towing, LLC, and Board of Commissioners of the Port of New Orleans, Civil District Court for the Parish of Orleans, Docket No , Section 11, Division G. At 10:16 A.M., a motion was made by Commissioner Chouest and seconded by Commissioner Cooper to go into executive session to allow Messrs. LeBreton and Gussoni to brief the committee on and discuss the Board s claim and the claim against the Board in the lawsuit captioned Michelle Collins vs. ABC Marine Towing, LLC, and Board of Commissioners of the Port of New Orleans, CA No. 14-CV-1900, U.S. District Court for the Eastern District of Louisiana, Division L, and the claim against the Board in that certain lawsuit captioned Nicholas Manno and Jeremy Sylve vs. ABC Marine Towing, LLC, and Board of Commissioners of the Port of New Orleans, Civil District Court for the Parish of Orleans, Docket No , Section 11, Division G. Messrs. LeBreton and Gussoni briefed the committee on this matter and answered any questions asked by the commissioners. At 10:40 A.M., a motion was made by Commissioner Kearney to end the executive session and return to the open meeting. The motion was seconded by Commissioner Cooper, passed unanimously, and the executive session ended at that time. B. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into Annual Contracts to Provide Medicare Supplemental Insurance to the Board s Retirees. Mr. Gallwey updated the committee on the health care renewal process. He provided a handout outlining the 2015 Health Insurance Renewal Timeline, a copy of which is attached hereto and made part of these minutes. Concerning the Medicare supplements, Mr. Gallwey informed the committee that there are seventy post-65-year-old retirees on the Humana Gold Plan and thirty on the Hartford plan. He discussed the different Page 13 of 23

14 proposals, revisions, increases, and decreases from the participating plans. Mr. Gallwey recommended staying with the renewal plan with Humana Gold and Hartford because it provides the best value at minimal costs. Mr. Barkerding mentioned that the Port will eventually have to take into consideration the benefits for retirees and future employees whether it is done in future employee contracts or health insurance agreements to clarify that if an employee retires prior to Medicare age or the age of sixty-five years old, that employee is not entitled to benefits under the plan. Mr. Gussoni replied that a policy is being drafted at this time that will address the issue. After discussion, the committee indicated it would accept the staff recommendation for the Humana Gold plan for Medicare-eligible post-65 retirees in the New Orleans service area and the Hartford Gold Plan for retirees out of the New Orleans area at its regular public meeting later that morning. C. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease at France Road Terminal Berths 3 and 4 with Boh Bros. Construction Company, LLC. Mr. Bonura briefed the committee on and recommended approval of a resolution authorizing an amendment to the lease at France Road Terminal Berths 3 and 4 with Boh Bros. Construction Company, LLC. He discussed the budget impact of this fiscal year of the Boh Bros proposal to delay the rent commencement to January 31, Mr. Bonura stated that there would not be a long-term impact since the primary term is for ten years, regardless of whether the rent commencement starts on August 29, There will be some rent that Boh will pay before credits are calculated. Mr. Bonura stated that the monthly rent net of the credit will be $6,500 after the credits are calculated. Based on the calculations, this would allow $90,000 annual revenue for After discussion, the committee indicated it would recommend approval of this resolution at its regular public meeting later that morning. D. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Consent to an Amendment to the Sublease between Board Lessee Pontchartrain Materials Corporation and Its Approved Sub-Lessee Boh Bros. Construction Company, LLC. Mr. Bonura stated that Item D was put on the agenda in case changes to Item C above might have affected it, but they did not so there was no further discussion on Item D. E. Retreat Action Plans Mr. LaGrange reported on a successful retreat by mentioning a few hot topics of the meeting such as the portwide surveillance camera installation project, the Napoleon Page 14 of 23

15 Avenue Terminal Gate Complex, radiation portal monitors, malfunctioning radiation portal monitors, industrial properties, and the coffee exchange differential. F. Retirements Mr. LaGrange announced the retirement of Mr. Gallwey as the Board s Chief Operating Officer effective February 28, 2015, and of Ms. Keller as the Board s Director of Port Development effective January 2, Several commissioners expressed the opinion that they should have been notified about these retirements sooner. Several commissioners expressed their opinion the Board should be fully involved in the selection process for the chief operating officer position as well as the division director positions. It was noted that Robert Jumonville, Director of Cruise & Tourism, is also retiring effective January, There was a general discussion regarding the process of replacing these staff members. Differing views of how to manage this process were expressed. A motion was made by Mr. Barkerding and seconded by Mr. Kearney to direct the Board Chairman to name the chairmen of the Budget Committee, the Planning and Engineering Committee and the Property and Insurance Committee as members of a committee to oversee the selection of replacements for these positions. Mr. Chouest recommended that it be a committee of the whole. Committee Chairman Rusovich indicated that it was the CEO's responsibility to hire staff. However, since the selection of a COO may have implications for the future succession of the CEO, the Board should be more involved in the selection of the COO. Mr. Barkerding amended his motion to be to set up an ad hoc committee only for the appointment of the COO only. A discussion took place, and Mr. Gussoni informed the commissioners that an ad hoc committee of three commissioners would constitute a public body such that its meetings would be regulated under the Louisiana Open Meetings Law and that the committee would be required to follow the requirements of a public meeting, taking and publishing minutes, promulgating formal public notice, etc. No vote was taken on the motion. Mr. Barkerding withdrew his motion. A discussion followed resulting in Committee Chairman Rusovich assuring the commissioners that they would be informed of the process of hiring the COO so they could add their input. There was also a brief discussion on hiring an executive search firm for the COO position in addition to advertising with the AAPA. Mr. LaGrange stated that the commissioners would be informed of the selection process for the division director positions. Mr. Chouest asked that he be able to meet with the selected candidate for these positions just to get a feel for the person. Mr. LaGrange indicated his concurrence in this. Page 15 of 23

16 Finally, Committee Chairman Rusovich thanked Mr. Gallwey for his 34 years of service at the Port and the contributions he has made to the Port during his career. G. Briefing on Coffee Exchange Mr. Landry briefed the committee on the Coffee Exchange differentials, explaining that a legal solution is not an option; rather it would have to be a political solution. He stated that letters are being prepared for congressional delegates to get the challenge started. H. Report on Cargo Activity Mr. Landry stated that the numbers through the last twelve months for TEUs are up 5.9% and break bulk up 18.3%. He also reported that September will be a good month. I. Report on Vessel Calls There was no report because the meeting was running long. J. Upcoming Events There was no report because the meeting was running long. 6. Other Business No other business was reported. 7. Adjournment There being no further business to come before the committee, Committee Chairman Rusovich adjourned the meeting at 11:22 A.M. BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF THE REGULAR MEETING OF SEPTEMBER 25, 2014 MEETING NO. 3, 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 Page 16 of 23

17 ORLEANS, LOUISIANA, WAS CALLED TO ORDER AT 11:30 A.M. ON THURSDAY, SEPTEMBER 25, 2014, BY CHAIRMAN GREGORY R. RUSOVICH. COMMITTEE MEMBERS PRESENT: MEMBER ABSENT : STAFF: GUESTS: 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 & Chief Executive Officer P. Gallwey, Chief Operating Officer B. Gussoni, Executive Counsel C. Bonura, Director, Business Development D. Keller, Director, Port Development R. Jumonville, Director, Cruise & Tourism J. Ruckert, Director, Finance & Information Technology S. Ordoyne, Executive Assistant G. Hager, Director, Human Resources J. Cefalu, Deputy Director, Cruise & Tourism S. Fauria, Manager, Information Technology B. Ethridge, Manager, Business Development J. Fritz, Deputy General Counsel M. Rubino, Staff Attorney H. Fontenot, Paralegal A. Brandenburg, Internal Audit R. Aragon-Dolese, Manager, Communications A. Gennaro, Internal Audit R. Hecker, Chief, Harbor Police Department H. Wilbert, Marketing P. Matthews, Executive Assistant S. Reames, Cruise & Tourism A. Hanks, Cruise & Tourism T. Martin, Manager, Services L. Richardson, Industrial Real Estate J. Crist, Operations J. Gommel, Berthing P. Herring, Internal Audit P. Sirisophon, Permits Manager B. Burger, Manager, Container Crane Department H. Horan, Human Resources A. Pellegrin, Manager, Environmental Services C. Nelson, Waldemar S. Nelson and Company, Inc. Page 17 of 23

18 I. Determination of Quorum and Call to Order T. Wells, Waldermar S. Nelson and Company, Inc. B. Brundige, Boh Bros. C. Donner, Jones Lang LaSalle K. Crier, ILA M. Hoelzel, ILA C. Balthazar, Riverworks B. Wilson, Empire Stevedoring (LA), Inc. P. Watson, MEL Engineering Consultants, LLC K. Price, New Orleans Terminal R. Schaefer, New Orleans Terminal C. Daroca, Crescent Towing Company D. Martin, Crescent Towing Company Chairman Rusovich determined the presence of a quorum and called the meeting to order at 11:30 A.M. II. Pledge of Allegiance Chairman Rusovich asked Commissioner Kearney to lead the Board and the audience in saying the Pledge of Allegiance, and he did so. III. Approval of the Minutes from the August, 2014, Meetings and Minutes of the September 3, 2014, Board Retreat On motion duly made by Commissioner Cooper and seconded by Commissioner Bergeron, the Board unanimously approved the minutes of its meetings of August, 2014, as previously circulated. On motion duly made by Commissioner Bergeron and seconded by Commissioner Cooper, the Board unanimously approved the minutes of the Board retreat of September 3, 2014, as previously circulated. IV. Acceptance of Financial Statement for August, 2014 On motion duly made by Commissioner Cooper and seconded by Commissioner Bergeron, the Board unanimously accepted the August, 2014, Financial Statement as previously circulated. V. Public Comment Chairman Rusovich announced that the meeting was open to the public and said, if any member of the public present would like to comment, to please see Mr. Matthew Gresham. Page 18 of 23

19 VI. Actions Required A. Consider Award of a Contract to Cuzan Services, LLC, for the Administration Building Water Intrusion Repairs. Ms. Keller presented and recommended award of a contract in the amount of $379,000 to Cuzan Services, LLC, of Belle Chasse, Louisiana. This was the lower of two responsive bids for the repair of water intrusion. 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 Double Aught Construction, LLC, for the Repair of Damage to the Nashville Avenue Wharf A Substructure. Ms. Keller presented and recommended award of a contract in the amount of $353,090 to Double Aught Construction, LLC, of Hammond, Louisiana. This was the lowest of seven responsive bidders for the repair of damages caused by a vessel allision of an unknown perpetrator. 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. C. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Accept the Completion of the Construction Contract with Hard Rock Construction, LLC, for the Louisiana Avenue Terminal Concrete Paving Improvements Phase 2. Ms. Keller presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to accept the completion of a contract with Hard Rock Construction, LLC. This is a DOTD procedure that requires the Board to release retainage before DOTD will reimburse the Board with State Port Priority Funds. Commissioner Bergeron advised 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. D. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Empire Stevedoring (LA), Inc., to Lease the First Street Wharf. Page 19 of 23

20 Ms. Zimmermann presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into an agreement with Empire Stevedoring (LA), Inc., to lease the entire First Street Wharf beginning November 1, This is a two-year term at $2.96 per ton with a 30% increase at the beginning of the first renewal period. 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. E. Consider Award of a Contract to M & L Industries, LLC, for the Purchase of a 36,000-Pound Lifting Capacity Forklift for the Board s Container Crane Department. Mr. Zimmermann presented and recommended approval of an award of a contract to M & L Industries, LLC, of Metairie, Louisiana, for the purchase of a forklift at a cost of $149,879. 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. F. Consider Award of a Contract to Premier Automotive Products, LLC, dba Premier Chrysler Jeep Dodge for the Purchase of Two 2014 Law Enforcement Dodge Chargers for Use by the Harbor Police Department. Mr. Zimmermann presented and recommended approval of an award of a contract to Premier Automotive Products, LLC, for the purchase of two Dodge Chargers for the Harbor Police Department. Mr. Zimmermann stated that the funds for this purchase were available in this year s capital budget. 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. G. Consider Award of a Contract to Bill Hood Ford, Inc., for the Purchase of One 2015 Ford Interceptor for Use by the Harbor Police Department. Mr. Zimmermann presented and recommended approval of an award of a contract in the amount of $25,343 to Bill Hood Ford, Inc., of Hammond, Louisiana, for the purchase of one 2015 Ford Interceptor to be used by the Harbor Police Department. Page 20 of 23

21 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. H. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease at 5100 Jourdan Road with CAT 5 Composites, LLC. Mr. Bonura presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to amend the Board s lease with CAT 5 Composites, LLC, by extending the primary term to two years and increasing the rent by 10%. 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. I. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease at France Road Terminal Berths 3 and 4 with Boh Bros. Construction Company, LLC. Mr. Bonura presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to amend the Board s lease with Boh Bros. Construction Company, LLC, to extend the rent commencement date because of permit delays. 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. J. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Consent to an Amendment to the Sublease between Board Lessee Pontchartrain Materials Corporation and Its Approved Sublessee Boh Bros. Construction Company, LLC. Mr. Bonura presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to consent to an amendment to the sublease between Pontchartrain Materials Corporation and Boh Bros. Construction Company, LLC, to extend the sublease by an additional five months at Boh s asphalt plant. 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. Page 21 of 23

22 Commissioner Bergeron seconded the motion. MOTION CARRIED UNANIMOUSLY. K. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease with IT Minerals, LLC, at 7000 Jourdan Road to Grant to the Tenant the Right to Use and Maintain Additional Property North of Its Leased Premises for a Common Access Rail Corridor. Mr. Bonura presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to amend the lease with IT Minerals, LLC. 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. L. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into Annual Contracts to Provide Medicare Supplemental Insurance to the Board s Retirees. Ms. Swain presented and recommended approval of a resolution authorizing the Board s President and Chief Executive Officer to enter into annual contracts to provide Medicare Supplemental Insurance to the Board s retirees. 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 asked that Ms. Keller and Mr. Bonura approach the podium along with Mr. Charles Nelson of Waldemar S. Nelson and Company, Inc. Mr. Nelson presented to Mr. LaGrange for the Port of New Orleans the Project Excellence Award for the Gulf Gateway Terminals Project in New Orleans East. Mr. LaGrange acknowledged and recognized Ms. Janine Moreau Mansour for being mentioned in New Orleans City Business under the Who To Watch section. Mr. LaGrange recognized and commended Messrs. Corey Daroca and Devon Martin of Crescent Towing Company for a good deed and an act of heroism. The two workers rescued a deckhand after he fell into the Mississippi River at the Port of Baton Rouge. Page 22 of 23

23 Mr. LaGrange mentioned representatives from Croatia, Mr. Komadina and Dr. Mezak, who had visited the Port s offices earlier that day, but were unable to attend the Board meeting because of a flight schedule. 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, the meeting was adjourned at 11:51 A.M. NEXT MEETING: 11:00 A.M., Thursday, October 23, 2014 Page 23 of 23