PORT OF NEW ORLEANS - PUBLIC NOTICE

44 New Orleans CityBusiness June 6-12, 2014 PORT NEW ORLEANS - PUBLIC NOTICE PUBLIC NOTICE BOARD COMMISSIONERS THE PORT NEW ORLEANS In accordance with LRS 39:1305 to 1307, public notice is hereby given that the Board of Commissioners of the Port of New Orleans (Board), acting through its President and Chief Executive Officer Gary P. LaGrange, will hold a public hearing on the proposed operating and capital budgets of the Board for Fiscal Year 2015, which commences July 1, 2014. The hearing will be held at the Port of New Orleans Administration Building, 1350 Port of New Orleans Place, in the Auditorium, First Floor, New Orleans, Louisiana, at 10:00 A.M. on Thursday, June 19, 2014. Prior to the hearing, copies of the budgets will be available for review by the public at the Port of New Orleans Administration Building, Room 407, 1350 Port of New Orleans Place, New Orleans, Louisiana between 8:30 a.m. and 4:30 p.m. on Thursday, June 12, 2014. New Orleans CityBusiness: June 6, 2014

New Orleans CityBusiness June 6-12, 2014 45 BOARD COMMISSIONERS PORT NEW ORLEANS THE BUDGET MEETING A MEETING THE BUDGET THE BOARD COMMISSIONERS THE PORT NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS FICES AT 1350 PORT NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY AD HOC CHAIRMAN WILLIAM T. BERGERON AT 3:35 P.M. ON MONDAY. MEMBERS MEMBERS : ABSENT William T. Bergeron, Ad Hoc Committee Chairman (left at 4:15 P.M.) Gregory R. Rusovich, Committee Chairman J. Ruckert, Director, Finance & Information Technology J. Holt, Government Consultants In the absence of Committee Chairman Rusovich, Board Chairman Packer appointed Commissioner Bergeron to serve as Ad Hoc Chairman of this committee for the purpose of holding this meeting only. Ad Hoc Committee Chairman Bergeron determined the existence of a quorum and called the meeting to order at 3:35 P.M. Ad Hoc Chairman Bergeron called for public comment, but there was none. 1. Review of March, 2014 Financial Statement Mr. Ruckert briefed the committee regarding the March, 2014, financial statement. He distributed a report detailing the financial information, a copy of which is made part of these minutes. He announced that the Board s financial condition looked better at this point in 2014 than in the corresponding month in 2013. He announced that ship calls were slightly up, and cruise ship parking revenue was up as well in comparison to the corresponding months of January, February, and March in 2013. 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 the 2015 Financial Plan Process Mr. Ruckert gave a status report on the current stage in the financial plan process. He spoke about each division s projected expenses and the original budget he received on March 28. He explained that payroll has increased overall about $600,000, which is about 3.4%. He also addressed direct expenses including professional fees and insurance. 3. Briefing on and Discussion of a Resolution Authorizing into a Professional Services Agreement to Provide Financial Advisory Services for the Purpose of Evaluating the Potential for a Public/Private Partnership Mr. Ruckert gave a brief summary and recap of the activities completed to date on this item. The recommendation of the staff committee who met last week was to retain KPMG Corporate Finance, LLC, at a cost not to exceed $195,000. this matter favorably to the Board at its next scheduled regular meeting. 4. Briefing on and Discussion of a Resolution Authorizing into a Professional Services Contract with Ray Lauga, Inc., for the Administration and Management of the Capital Projects Office, including FEMA and Homeland Security Funding and the Capital Improvement Program Mr. Gallwey briefed the committee regarding a resolution to enter into a contract with Ray Lauga, Inc., to manage the Capital Projects Office. Mr. Gallwey explained that the current administrator Mr. Richard was retiring and the Board needed to fill this vacancy. He further stated that, after reviewing the thirteen resumes submitted, he recommended to Mr. LaGrange that the better way to manage this department was to enter into a contract with Mr. Lauga as opposed to extending full-time employment. Mr. Gallwey explained that, in addition to FEMA recovery and management, this office manages all the Board s capital projects including for the cruise terminals, Homeland Security funds and all construction projects. He further stated that Mr. Lauga has worked on capital projects management with the Board for a long time and is familiar with our systems and has project management experience. A discussion followed on the cost and scope of Mr. Lauga s contract. Commissioner Bergeron questioned Mr. Lauga s hourly rate and expressed his concern about not filling the vacancy with a full-time applicant. Commissioners Bergeron and Toomy further expressed concern regarding work load, projects in progress, and prices, and said they felt the position may need to be filled by a full-time employee. Commissioner Packer indicated this was a management issue. Mr. Gallwey indicated that Mr. Lauga s rates were commensurate with the workload required and that a full-time employee would likely be costlier. Ad Hoc Committee Chairman Bergeron adjourned the meeting at 4:35 P.M. BOARD COMMISSIONERS PORT NEW ORLEANS THE PLANNING AND ENGINEERING MEETING A MEETING THE PLANNING AND ENGINEERING THE BOARD COMMISSIONERS THE PORT NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS FICES AT 1350 PORT NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY AD HOC CHAIRMAN ROBERT R. BARKERDING, JR., AT 3:05 P.M. ON MONDAY,. MEMBERS: PRESENT MEMBERS ABSENT: PORT NEW ORLEANS - Robert R. Barkerding, Jr., Ad Hoc Chairman William T. Bergeron, Jr., Member Scott H. Cooper, Committee Chairman C. Bonura, Director, Business Development R. Jumonville, Director, Cruise & Tourism P. Zimmerman, Director, Operations A. Fant, Deputy Director, Operations C. Balthazar, Riverworks In the absence of Committee Chairman Cooper, Board Chairman Packer appointed Commissioner Barkerding to serve as Ad Hoc Chairman for purposes of holding this meeting only. Ad Hoc Chairman Barkerding determined the presence of a quorum and called the meeting to order at 3:05 P.M. Ad Hoc Chairman Barkerding called for public comment, but there was none. 1. Briefing on and Discussion of an Award of Contract to Industrial & Crane Services, Inc., for Re-Reeving Devices for Container Cranes No. 8 and No. 9 at the Napoleon Avenue Container Terminal Ms. Keller informed the committee that two companies had bid on this project; that Industrial & Crane Services was the lower bidder at $248,600; and that staff was recommending the award to this lower bidder. This project will take about 65 calendar days beginning this summer. Commissioner Packer asked if the exclusion of the rereeving devices was typical of Doosan. Ms. Fant answered that that company did supply re-reeving devices. However, it supplied a type of device that was not in accordance with the Board specification for the item and that obtaining the cost for the specified re-reeving devices was part of the major settlement with Doosan at the end of the cranes construction and erection. At $350,000, this was the largest of a few line items included in the settlement with Doosan. 2. Briefing on and Discussion of a Resolution Authorizing into a Contract with U.S. Risk Management, LLC, for Professional Services for As-Needed Environmental Site Assessments, Hazards Abatement, and Remediation Ms. Keller briefed the committee on a contract to U.S. Risk Management, LLC, for two years at a cost not to exceed $200,000. The staff is currently negotiating a reasonable and customary hourly rate. Commissioner Packer asked if this was based on land or water cleanup assessments. Ms. Keller replied it is based on whether or not it is the Board s responsibility. Staff would resort to this type of contract usually in limited to small isolated incidents that are directly Board responsibility. Commissioner Barkerding asked how we would proceed if the incident was large and exceeded $200,000. Ms. Keller responded those extreme instances would have to be brought to the Board for action. This contract is for small everyday needs. 3. Briefing on and Discussion of a Resolution Authorizing into a Contract with U.S. Risk Management, LLC, for Professional Services for As-Needed Environmental Compliance Assessments and Guidance Development Ms. Keller briefed the committee on a contract to U.S. Risk Management, LLC, for a one-year contract at a cost of $25,000 with the option to renew it for a second year at the same cost and on the same terms, provided the Board s President and Chief Executive Officer found the services to be acceptable. Ms. Keller explained that this contract was necessary to help the Board establish where it stood regarding on site compliance. 4. Briefing on and Discussion of a Resolution Authorizing into a Contract with Waldemar S. Nelson & Company for Professional Services for an As-Needed Storm Water Management Plan and Water Quality Management Ms. Keller briefed the committee on a contract to Waldemar S. Nelson & Company (Nelson) for a one-year contract at a cost of $25,000 with the option to renew for a second year at the same cost and on the same terms, provided the Board s President and Chief Executive Officer found the services acceptable. Ms. Keller explained that Nelson had very impressive credentials regarding storm water runoff management. She further explained that this contract had DBE/WBE subconsultants. Commissioner Toomy asked if there were new DEQ regulations, to which Ms. Keller responded that every year there are updates. 5. Briefing on and Discussion of a Resolution Authorizing into a Contract with Trigon Associates, LLC, for

46 New Orleans CityBusiness June 6-12, 2014 Professional Services for As-Needed Emergency Preparedness and Response Ms. Keller briefed the committee on a contract to Trigon Associates, LLC, for a one-year contract at a cost of $25,000 with the option to renew for a second year at the same cost and on the same terms, provided the Board s President and Chief Executive Officer found the services acceptable. Ms. Keller informed the Board that this was necessary to produce a policy and procedure manual to help the Port obtain ISO 14001 credentials. This is to prepare the Port better for general emergency preparedness and response. this matter favorably to the Board at its next regularly 6. Briefing on and Discussion of an Award of Contract to B & K Contractors, Inc., for the Port Administration Building 4 th Floor Renovations Mr. Gallwey told the committee that B&K Contractors was the lower bidder of two at a price of $41,200 for a contract to add new offices and shift office space between departments on the fourth floor of the administration building. Ad Hoc Committee Chairman Barkerding adjourned the meeting at 3:30 P.M. BOARD COMMISSIONERS PORT NEW ORLEANS THE PROPERTY AND INSURANCE MEETING A MEETING THE PROPERTY AND INSURANCE THE BOARD COMMISSIONERS THE PORT NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS FICES AT 1350 PORT NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY CHAIRMAN MICHAEL W. KEARNEY AT 1:40 P.M. ON MONDAY,. MEMBERS MEMBERS ABSENT: Michael W. Kearney, Committee Chairman C. Bonura, Director, Business Development P. Zimmerman, Director, Operations C. Richard, Executive Assistant B. Ethridge, Executive Intern M. Gresham, Executive Assistant, External Affairs C. Kane, Adams and Reese, LLP J. Stuckey, Phelps Dunbar, LLP (left at 1:50 P.M.) J.W. App, J.W. Allen & Co. C. Jensen, Alvar Properties 1, LLC D. Miranda, Kinney & Ellinghausen C. Balthazar, River Works (arrived at 1:50 P.M.) J. Tynan, Montgomery Barnett LLP (arrived at 2:45 P.M.) Committee Chairman Kearney determined the existence of a quorum and called the meeting to order at 1:36 P.M. Committee Chairman Kearney announced that he would defer public comment if there was any until after the briefing and presentation of the items. PORT NEW ORLEANS - 1. Briefing on and Discussion of a Resolution that (1) Determines that the Sale by the Board to Alvar Industries, LLC ( Alvar ), through an Agreement Regarding Real Estate ( ARRE ) and Related Documents of 31.24 Acres of Board Property along Alvar Street in New Orleans, Louisiana, for the Construction Thereon of an Integrated Global Resin Plastics Packaging Facility (the Project ) to be in the Board s Best Interests and that the Board Expects to Receive Equivalent Value and Benefit for the Sale of Board Property for this Project; and (2) Authorizes its President and Chief Executive Officer to Enter into the ARRE with Alvar, the Act of Sale Transferring the Real Estate and Any Ancillary Related Agreements, the Assignment and Assumption of Lease Agreement by the Board to Alvar Regarding the Board s Lease with Alvar Properties 1, LLC, and the Servitude Agreement with Alvar. (Mr. Bonura) Mr. Bonura briefed the Board on the general terms of this transaction. Commissioner Packer asked for clarity regarding whether or not the property was waterfront. Mr. Bonura stated that it was not and that there is a flood wall between the waterfront property and the property in question. this matter to the entire Board at its next regularly scheduled meeting. 2. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease with Star Marine Fleeting, LLC, to Add to the Leased Premises 1,000 Linear Feet of Water Space on the Right Descending Bank of the Mississippi River near Mile 91 AHP (Mr. Zimmermann) Mr. Zimmermann stated that Star Marine Fleeting wished to amend its lease with the Board to add another 1,000 linear feet of water space adjacent to its current lease of 3,000 linear feet. The company wishes to lease the property at $33 per linear foot, the same rate as its current lease. This will increase its current yearly payment by $33,000. Star Marine has agreed to construct all appropriate mooring bits and structures necessary for its operations and transfer ownership to the Board after their construction. 3. Briefing on and Discussion of the Purchase of a Fire Protection/Public Safety Vessel with Department of Homeland Security Port Security Grant Funds Mr. Zimmerman addressed the committee regarding a $5.5 million federal grant received by the Board to construct a new fire protection boat. He informed the committee that the M/V General Roy S. Kelley, the Board s current fire boat, is approximately 20 years old. He further stated that the construction of a new boat will cost more than $9 million, and the Board would have to supply any additional required costs from its own funds, and the Board does not now have any additional funding available. Mr. Zimmermann also noted the present boat has approximately another ten years of usefulness if maintained properly. The commissioners discussed the possibility of scaling back on the new boat s design as well as the possibility of forfeiting the grant money and abandoning the project. After discussion, the committee indicated it was inclined to abandon the project and not accept the grant money. 4. Briefing on and Discussion of Lease Issues with Lake Pontchartrain Properties, LLC Mr. Bonura s briefing was in three parts. The first addressed issues regarding former tenants which have affected Lake Pontchartrain Properties (LPP). There were initially two former tenant property tax issues. However, tax issues relating to one of them have been resolved. Taxes in the amount of $811,880 related to another former tenant C.F. Bean Dredging (Bean) are still an issue. Bean was a tenant from 1986 to 1990. Only $46,632 of the outstanding taxes applies to occupancy during Bean s tenancy. The rest is taxes assessed to Bean after its lease termination and includes interest and penalties. We are attempting through discussion with the assessor s staff to resolve these issues and have requested that the assessor remove the taxes, penalties and interest that were assessed after Bean s lease termination when the ownership of the property devolved on the Board, which is tax-exempt. If we cannot resolve these issues with the assessor, they will become part of the lawsuit the Board now has pending against the assessor with their ultimate resolution in the Louisiana Supreme Court. The second part of the briefing regarded security. LPP s security was set to increase from $33,803 to $226,840 on January 1, 2014. On January 31, 2014, we suggested a compromise to reduce the security to $102,000. LPP thought its security should remain at $33,803 until the tax issues with Bean are resolved. In light of the tax situation and the impact that it has had on LPP s financing, the President and Chief Executive Officer has approved that request. The third part of the briefing related to improvements made by LPP to and on the leasehold. The improvements as finally constructed do not match the proposed improvements on the permit drawings which the Board approved. LPP must now either submit for approval new drawings showing the improvements as built or have the improvements as built reworked in order to comply with the original drawings submitted with its permit request. Mr. Bonura reported that the staff is committed to working these issues out with LPP and that it is just a matter of time before we can get this resolved. 5. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with the Orleans Levee District to Grant a Servitude and Right of Way over a Portion of the Board s Property along the France Road Floodwall Mr. Bonura announced that, since the last time the committee met, the appropriate authorities have approved the previously discussed servitude. All issues have been cleared, and this item will be on the agenda for the next regular meeting. The new servitude allows for a consistent standard width of the servitude and means that less of the Board s property is encumbered by the Levee Board s flood prevention servitude. this matter favorably to the entire Board at its next regularly 6. Briefing on and Discussion of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Lake Pontchartrain Properties, LLC ( LPP ) to Amend its Lease to Remove the Eleven Acre Parcel at 6201 France Road While Contemporaneously Entering into a New Lease with LPP for that Parcel This item was not necessary because counsel for the Board and for LPP s lender were able to negotiate a proposed estoppel agreement without requiring the lease to be amended in this manner. 7. Briefing on and Discussion of Issues Related to the City of New Orleans Draft Comprehensive Zoning Ordinance Mr. Bonura told the committee that the staff wrote a letter to the City Planning Commission (CPC) regarding a number of issues related to its properties. There was a follow up meeting on March 27, 2014, to discuss the three main issues in that letter. The first two issues were resolved, and further action will need to be taken to resolve the third issue. The first issue was that the newly created Maritime Industrial Zone (created so recreational activities and traditional port activity can coexist on the northern IH-NC) does not permit all uses of existing industrial tenants located in Maritime Industrial Zones. CPC staff will consider adding permitted uses to the definition of maritime industrial to allow for existing activities and/or change the map so maritime industrial zoning is limited to the area where there is a mix of recreational and industrial uses. The second issue was that provisions related to Site Plan and Design Review could unnecessarily delay projects to develop Board property. CPC staff will consider making the review apply only when the buildings are within view of a public street. That would exclude most Board property. The third issue is that the Board objects to the re-designation of two large tracts of vacant Board property on the GIWW as Environmentally Sensitive Districts or Natural Assets, restricting their development potential. No resolution was reached, but we have a better idea of what the city is trying to accomplish so that we can work on solutions or defend our property rights. 8. Briefing Update on the Board s FEMA Funding Reimbursements Related to Various Hurricanes Mr. Gallwey announced that Mr. Richard will be retiring at the end of the month, and that this would be Mr. Richard s final briefing to the committee. Mr. Richard then briefed the Board regarding FEMA funding reimbursements related to various hurricanes. He made a power point presentation during which he distributed a corresponding handout, a copy of which is attached to and made part of these minutes. Mr. Richard directed the Board s attention to the first slide titled Recovery and the second slide titled Close-out and stated he felt the Board was doing well compared to other applicants with similar claims. He further briefed the Board regarding close-out options and current FEMA issues. 9. Executive Session Briefing on 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, CD, EF, GH, IJ, KL, MN, OP, QR, ST, UV, and WX, Civil District Court for the Parish of Orleans, State of Louisiana, Docket No. 11-4077, Section H-12 At 2:45 P.M. a motion was made by Commissioner Barkerding and seconded by Commissioner Packer to enter into Executive Session to discuss 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,

New Orleans CityBusiness June 6-12, 2014 47 Inc., American Marine Corporation, Temporary Marine Company, Barge Owners 1, 2, and 3, Keasbey & Mattison Company, and Insurance Companies AB, CD, EF, GH, IJ, KL, MN, OP, QR, ST, UV, and WX, Civil District Court for the Parish of Orleans, State of Louisiana, Docket No. 11-4077, Section H-12. Board staff present left the room at this point and returned only when the Executive Session ended. Mr. Tynan and Mr. Gussoni briefed the committee on the progress of this litigation and answered any questions raised by the commissioners. At 3:00 P.M., a motion was made by Commissioner Packer and seconded by Commissioner Bergeron to end the Executive Session and return to the open meeting. At that time the Executive Session ended. Committee Chairman Kearney adjourned the meeting at 3:00 P.M. BOARD COMMISSIONERS PORT NEW ORLEANS THE EXECUTIVE MEETING APRIL 28, 2014 A MEETING THE EXECUTIVE THE BOARD COMMISSIONERS THE PORT NEW ORLEANS, HELD IN THE PRESENTATION ROOM ON THE 4 TH FLOOR AT ITS FICES AT 1350 PORT NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER BY CHAIRMAN DANIEL F. PACKER, JR., AT 9:16 A.M. ON MONDAY, APRIL 28, 2014. MEMBERS Daniel F. Packer, Jr., Chairman (arrived at 9:30 A.M.) B. Landry, Chief Commercial Officer M. Gresham, Executive Assistant for External Affairs M. Orlesh, Special Counsel C. Dunn, Deputy Director, Port Development N. Lopez, Legal Services C. Johnsen, Jones Walker, Washington, DC J. Jaskot, Jones Walker, Washington, DC (both via conference call) Chairman Packer determined the presence of a quorum and called the meeting to order at 9:16 A.M. Chairman Packer called for public comment, but there was none. C. Chairman s Comments Chairman Packer announced that Commissioner Rusovich would arrive late around 9:30 A.M., but that he would start the meeting in order to complete the agenda. PORT NEW ORLEANS - 2. Consider Approval of a Resolution Expressing Condolences to the Family of Francis E. Hank Lauricella, Former Chairman of the Board Chairman Packer briefed the committee on this matter, and the committee indicated it would refer the matter favorably to the Board at the regularly scheduled meeting later that morning. 3. Update on State Legislation Mr. Gresham addressed the committee and passed out a summary of the pending bills of interest, a copy of which is incorporated into these minutes. He addressed DOTD s backlogged projects, speaking on the Port Construction Development Program, Port Priority Program, and HB2 (the annual capital outlay bill). These items are recommended for a funding level of $19.7 million. This has been the level set since 2008, and DOTD appears to be comfortable with it. Mr. Gresham continued by addressing House Bill 788, which authorizes the expansion of the convention center. He alerted the committee to an amendment in the bill from last year, prohibiting the expansion from interfering or altering any Port property. This bill is currently in the Senate Revenue and Fiscal Affairs Committee and has already passed through the full House of Representatives. He concluded by stating that last Thursday the Board s two Harbor Police retirement bills moved through the House Retirement Committee. This includes the bill to transfer the Harbor Police Retirement System into LASERS. 4. Update on Federal Legislation Mr. Johnsen addressed the Committee via a conference call. He alerted the committee that Mr. J.J. Jaskot was also on the call. Mr. Johnsen reported on the status of the Water Resources and Development Act (WRDA). He announced that Senator Vitter, who is the ranking Republican on the Environmental and Public Works Committee, has been very helpful and that the whole Louisiana congressional delegation has been helpful in various ways. He addressed WRDA s impact on the Port of New Orleans by stating that he anticipates significant reform in how the Harbor Maintenance Trust Fund is managed. 5. Report on Cargo Activity Mr. Landry reported that cargo activity has been positive. He announced that, for the first nine months of this fiscal year, inbound cargo has grown by about 5% and export cargo has grown by 2.6%. 6. Briefing on FY 2014 TIGER VI Grant Application for Mississippi River Marine Terminal Improvements Ms. Keller distributed a handout, a copy of which is incorporated into these minutes. She briefed the committee on the grant s progress and announced that the Board has several letters of support for the grant. Ms. Keller asked Ms. Dunn if she knew when a decision would be made. Ms. Dunn stated that, according to conference calls she has been participating in, she believes a decision will be announced in August or September of this year. 7. Report on Vessel Calls Mr. LaGrange announced that 100 vessels came to call in March this year as opposed to 79 vessels in March, 2013. He said that year to date the port has had 284 vessels come to call in 2014 versus 236 year to date in 2013. F. Other Business Chairman Packer with the concurrence of the other commissioners called for further discussion of Item C4 (a contract with Ray Lauga, Inc.) from the Budget Committee meeting of the week prior. There was some discussion as to how the Budget Committee concluded its discussion of this item. Commissioner Packer called for Mr. Gallwey to re-make his presentation to the Budget Committee so that the commissioners absent from that meeting could understand the item. Mr. Gallwey then repeated his briefing of a week ago. Commissioner Bergeron reiterated his previous concerns from that meeting that this function might be better served with a full-time employee and not an independent contractor. The Commissioners discussed the issues and decided to refer the matter to the Board for a vote at the regular meeting later that morning. G. Adjournment APRIL 28, 2014 MEETING NO. 10, FISCAL YEAR 2014, A REGULAR MEETING THE BOARD COMMISSIONERS THE PORT NEW ORLEANS, HELD IN THE MAIN AUDITORIUM AT ITS FICES AT 1350 PORT NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER AT 11:19 A.M. ON THURSDAY, APRIL 28, 2014, BY CHAIRMAN DANIEL F. PACKER, JR. MEMBERS Daniel F. Packer, Jr., Chairman Gregory R. Rusovich, Vice-Chairman Scott H. Cooper, Secretary-Treasurer E. Pansano, Director, Internal Audit S. Ordoyne, Executive Assistant G. Hager, Director, Human Resources A. Fant, Deputy Director, Operations T. Martin, Manager, Services and Contract Administration N. Lopez, Legal Services D. Austin, Port Development N. Polk, Communications A. Brandenburg, Internal Audit B. Parent, Internal Audit P. Herring, Internal Audit P. Matthews, Executive Assistant R. Aragon-Dolese, Manager, Communications J. Crist, Industrial Development A. Pellegrin, Environmental Compliance Manager J. Brown, Operations D. Guarino, Port Development C. Dunn, Deputy Director, Port Development C. Kane, Adams & Reese LLP. T. Dodd, U.S. Risk Management, LLC T. Wells, Waldemar S. Nelson & Co. M. Waguespack, Waldemar S. Nelson & Co. J. Jensen, Transportation Consultants, Inc. W. Evans, URS R. Lauga, Ray Lauga Inc. C. Donner, JLL M. Mata, MDM I. Determination of Quorum and Call to Order II. III. Board Chairman Packer determined the presence of a quorum and called the meeting to order at 11:19 A.M. Pledge of Allegiance Board Chairman Packer asked Commissioner Barkerding to lead the Board and the audience in saying the Pledge of Allegiance, and he did so. Approval of the Minutes from the March, 2014 Meetings On motion duly made by Commissioner Rusovich and seconded by Commissioner Toomy, the Board unanimously approved the minutes of its meetings of March, 2014, as previously circulated. IV. Acceptance of Financial Statement for March, 2014 On motion duly made by Commissioner Toomy and seconded by Commissioner Kearney, the Board unanimously accepted the March, 2014, Financial Statement as previously circulated. V. Public Comment Board Chairman Packer announced that the meeting was open to the public and asked if any member of the public present would like to comment. There were no requests to address the Board. D. President & Chief Executive Officer s Comments Mr. LaGrange had no comments. E. Briefing and Discussion Items Committee Chairman Packer adjourned the meeting at 11:10 A.M. VI. Actions Required A. Consider Award of a Contract to Industrial & Crane Services, Inc., for Re-Reeving Devices for Container Cranes No. 8 and No. 9 at the Napoleon Avenue Container Terminal 1. Consider Approval of a Resolution Expressing Condolences to the Family of David A. Wagner, Retired Chief Operating Officer of the Port of New Orleans Mr. Orlesh briefed the committee on this matter, and the committee indicated it would refer the matter favorably to the Board at the regularly scheduled meeting later that morning. BOARD COMMISSIONERS PORT NEW ORLEANS THE REGULAR MEETING to Industrial & Crane Services, Inc., for re-reeving devices for Container Cranes No. 8 and No. 9 at the Napoleon Avenue Container Terminal. She advised that two companies had bid on this project and that Industrial & Crane Services was the lower bidder at $248,600. This project will take about 65 calendar days and will begin this summer.

48 New Orleans CityBusiness June 6-12, 2014 Commissioner Rusovich seconded the motion. MOTION B. Consider Approval of a Resolution Authorizing the President U.S. Risk Management, LLC, for Professional Services for As-Needed Environmental Site Assessments, Hazards Abatement, and Remediation to U.S. Risk Management, LLC, for a period of two years at a cost not to exceed $200,000. C. Consider Approval of a Resolution Authorizing the President U.S. Risk Management, LLC, for Professional Services for As-Needed Environmental Compliance Assessments and Guidance Development to U.S. Risk Management, LLC, for a one-year contract at a cost not to exceed $25,000 with the option to renew for a second year at the same cost and on the same terms. Ms. Keller explained that this contract was necessary to help the Board establish a base line regarding on-site environmental compliance. Commissioner Rusovich seconded the motion. MOTION D. Consider Approval of a Resolution Authorizing the President Waldemar S. Nelson & Company for Professional Services for an As-Needed Storm Water Management Plan and Water Quality Management to Waldemar S. Nelson & Company for a one-year contract at a cost not to exceed $25,000 with the option to renew for a second year at the same cost and on the same terms. Ms. Keller explained that Waldemar S. Nelson has very impressive credentials regarding storm water runoff management. E. Consider Approval of a Resolution Authorizing the President Trigon Associates, LLC, for Professional Services for As- Needed Emergency Preparedness and Response to Trigon Associates, LLC, for a one-year contract not to exceed $25,000 with the option to renew for a second year at the same cost and on the same terms. Ms. Keller informed the Board that this was necessary to produce a policy and procedure manual to help the Port obtain ISO 14001 credentials. This is to better the Port for general emergency preparedness and response. F. Consider Award of a Contract to B&K Contractors, Inc., for the Port Administration Building 4 th Floor Office Renovations Mr. Gallwey asked the Board to consider an award of a contract to B&K Contractors, Inc., for the port administration building 4th floor office renovations. B&K Contractors was the lowest bidder at a price of $41,200. Commissioner Kearney seconded the motion. MOTION G. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Amend the Board s Lease with Star Marine Fleeting, LLC, to Add to the Leased Premises 1,000 Linear Feet of Water Space on the Right Descending Bank of the Mississippi River near Mile 91 PORT NEW ORLEANS - AHP Mr. Zimmermann asked the Board to consider approval of a resolution authorizing the President and Chief Executive Officer to amend the Board s lease with Star Marine Fleeting, LLC, to add to the leased premises 1,000 linear feet of water space on the right descending bank of the Mississippi River near Mile 91 AHP. He reported that Star Marine has asked to lease the property for the same amount as its current lease rate of $33 per linear foot. This will increase its current annual rent by $33,000. and Insurance Committee had met and reviewed this matter with staff, and he moved for its approval. Commissioner Cooper seconded the motion. MOTION CARRIED H. Consider Approval of a Resolution by the Board of Commissioners of the Port of New Orleans that (1) Determines That the Sale by the Board to Alvar Industries, LLC ( Alvar ), through an Agreement Regarding Real Estate ( ARRE ) and Related Documents, of 31.24 Acres of Board Property along Alvar Street in New Orleans, Louisiana, for the Construction Thereon of an Integrated Global Resin Plastics Packaging Facility (the Project ) to be in the Board s Best Interests and that the Board Expects to Receive Equivalent Value and Benefit for the Sale of Board Property for this Project; and (2) Authorizes its President and Chief Executive Officer to Enter into the ARRE with Alvar, the Act of Sale Transferring the Real Estate and Any Ancillary Related Agreements, the Assignment and Assumption of Lease Agreement by the Board to Alvar Regarding the Board s Lease with Alvar Properties 1, LLC, and the Servitude Agreement with Alvar. Mr. Bonura asked the Board to consider approval of this resolution. Commissioner Bergeron commented that he supports the project conceptually and from an economic development standpoint, but not in the manner in which it is structured. He is opposed to selling Board assets. He said he would be in favor of a long-term lease with favorable concessions which he believed was the preferable structure for this project. He expressed his opinion that the Board would lose recurring revenue from lost rent and that it would affect the Board s future operating budget, which relies on rental properties. Commissioner Rusovich stated this was an exciting day for the region. He said that for many years the Port has seen petrochemical products and cargo head to other competing ports, particularly to Houston. Commissioner Rusovich expressed his opinion that it is a great opportunity to have this infrastructure and compatibility, and he believes there will be an enormous positive economic impact resulting from this deal. Commissioner Toomy spoke in support of the project and reiterated many of Commissioner Rusovich s views. with staff, and he moved for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED 6 to 1 with Commissioner Bergeron voting no. I. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with the Orleans Levee District to Grant a Servitude and Right of Way over a Portion of the Board s Property along the France Road Floodwall Mr. Bonura asked the Board to consider approval of a resolution authorizing the President and Chief Executive Officer to enter into an agreement with the Orleans Levee District (OLD) to grant to OLD a servitude and right of way over a portion of the Board s property along the France Road floodwall for construction, operation and maintenance of flood prevention structures. with staff, and he moved for its approval. Commissioner Barkerding seconded the motion. MOTION CARRIED J. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Professional Services Agreement with KPMG Corporate Finance, LLC, to Provide Financial Advisory Services for the Purpose of Evaluating the Potential for a Public/Private Partnership Mr. Gallwey asked the Board to consider approval of a resolution authorizing the President and Chief Executive Officer to enter into a professional services agreement with KPMG Corporate Finance, LLC, to provide financial advisory services for the purpose of evaluating the potential for a public/private partnership. He said that it was the recommendation of the staff committee to hire KPMG Corporate Finance, LLC, after it had completed the process of reviewing various candidates. Commissioner Rusovich advised the Board that the Property VII. VIII. IX. with the staff, and he moved for its approval. Commissioner Cooper seconded the Motion. MOTION CARRIED K. Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Professional Services Contract with Ray Lauga, Inc., for the Administration and Management of the Capital Projects Office, including FEMA and Homeland Security Funding and the Capital Improvement Program Mr. Gallwey asked the Board to consider a resolution to enter into a contract with Ray Lauga, Inc., to manage the Board s capital projects. Mr. Gallwey explained that the current administrator Mr. Richard was retiring and the Board needed to fill this vacancy. Commissioner Rusovich advised the Board that the Budget he moved for its approval. Commissioner Cooper seconded the motion. MOTION L. Consider Approval of a Resolution Expressing Condolences to the Family of David A. Wagner, Retired Chief Operating Officer of the Port of New Orleans Mr. Orlesh read into the minutes of this meeting a resolution expressing the condolences of the Board to the family of the late Mr. Wagner. Commissioner Bergeron said that he had had the opportunity to work with Mr. Wagner and spoke of his esteem for him and of Mr. Wagner s good character. Commissioner Packer advised the Board that the Executive he moved for its approval. Commissioner Cooper seconded the motion. MOTION M. Consider Approval of a Resolution Expressing Condolences to the Family of Francis E. Hank Lauricella, Former Chairman of the Board Chairman Packer read into the minutes of this meeting a resolution expressing the condolences of the Board to the family of the late former Chairman Lauricella. Commissioner Toomy expressed his admiration of Chairman Lauricella and referred to him as a gentleman. Chairman Packer advised the Board that the Executive he moved for its approval. Commissioner Toomy seconded the motion. MOTION Report by the President and Chief Executive Officer Mr. LaGrange began by referring to Mr. Wagner and Chairman Lauricella as two of the best men he had ever met. He then spoke very highly of both of their characters. After addressing the two resolutions, Mr. LaGrange called on Commissioner Barkerding to read a letter from Commissioner Barkerding s sister, who attended a group function aboard the M/V General Kelley, the Board s fire boat. The letter thanked the Port staff for the way the function was conducted. Next, Mr. LaGrange read a letter from the New Orleans American Red Cross thanking the Board for its participation in recycling Mardi Gras beads and for its support of individuals with intellectual disabilities. Last, Mr. LaGrange announced that vessel calls were up year to date compared to last year. Old Business There was no old business before the Board. New Business There was no new business before the Board. X. Adjournment There being no further business to come before the Board, the meeting was adjourned by Chairman Packer at 11:58 A.M. NEXT MEETING: 11:00 A.M., Thursday May 22, 2014 New Orleans CityBusiness: June 6, 2014