2006.11.21.board_minutesland may need to be taken for construction

8/4/2019 2006.11.21.Board_minutesland May Need to Be Taken for Construction

1/21

THE BOARD OF COMMISSIONERS

OF THE ORLEANS LEVEE DISTRICT

NOVEMBER 21, 2006

FROM PAGE 2

President McCrossen stated for the record his concern relative tothe land along the 17th Street and London Avenue Canals that may have to be

taken for future construction and the need for clarification for the residents along

those canals who will be impacted. He stated the District must implore the Corps

to make decisions on how much land will be taken along those canals. A letter

was received today, and will be forwarded to the Corps, from some residents

along the 17th Street Canal, and Commissioner Hedge-Morrell has voiced her

concern about the situation along the London Avenue Canal as well. President

McCrossen stated the Corps must be accountable for notifying these residents

as quickly as possible, so the City can take the appropriate actions, and theresidents can proceed with decisions and plans.


2/21

MINUTES OF THE REGULAR MONTHLY BOARD MEETING

OF



NOVEMBER 21, 2006


3/21

i



NOVEMBER 21, 2006

ACTION PAGE

ROLL CALL. ...................................................................................................... 1

PLEDGE OF ALLEGIANCE. .............................................................................. 1

OPENING REMARKS AND PRESENTATIONS:

1. Presentation by representative of the U.S. Army Corps of Engineers onTask Force Guardian/Hope. .......................................................................... 2

EXECUTIVE SESSION: ..................................................................................... 2

1. OLD v Bellsouth, CDC 2006-4817 A.2. OLD v. M/V Belle of Orleans, USDC SDAL 2006-0017-C.3. OLD v. Belle of Orleans, LLC, CDC 2006-283 L (6).4. Haspel & Davis Milling & Planting Co., Ltd, et al v. Board of Levee

Commissioners, USDC EDLA Case No. 06-3829, US Fifth Circuit Court ofAppeals, Case No. 06-31083, and Bohemia related claims:

1. Billie A. Breuille v. Board, 25th JDC 53-2072. King v. Board, 25th JDC 37-0853. Fried v. Board, CDC 03-19794F4. Riley v. Baord, 25th JDC 37-9225. Clarence Favret, III v. Board, 25th JDC 53-9516. Conner v. Board, 25th JDC 52-5397. Succession of Ursin v. Board, 25th JDC 51-8968. Union Title v. Board, 25th JDC 52-8569. Poydras Home v. Board, 25th JDC10. Montgomery Favret v. Board, 25th JDC 54-13511. Bruce Favret v. Board, 25th JDC 54-124

12. Union Benevolent v. Board, 19th JDC13. Graham v. Board, 25th JDC 54-144

5. USDC EDLA 05-5931 R "Lambert v Board".6. Bruno v. OLB, et al., CDC 01-15765.7. OLB v. Mandry, CDC 01-166368. OLD v. American Airports Lakefront, L.L.C., CDC No. 04-166529. Polly DeGruy v. OLD, CDC 06-179710. Gary G. Benoit v. OLD, USDC 06-240211. Marina Center Lease, CDC 06-28312. Landrys Seafood House New Orleans, Inc., CDC 06-533413. Darlene Benson, USDC 05-2777

14. Old Hammond Townhouse Association, Inc., USDC 04-243315. Sauying Richardson, CDC 04-1187616. Barry Barth, CDC 04-999017. Jessica Hijuelos, CDC 04-0818918. The Palms at Lake Marina, LLC, CDC 04-0139019. William Wilson, CDC 03-1876220. Joe Ellen Sutherlin, CDC-04-1261021. Robert Neidrick, CDC 03-1215822. Breaux-Kearney, CDC 00-1492123. Joseph Simmons, CDC 04-0804624. Chotin Transportation, Inc., CDC 99-19143

25. Sewerage & Water Board, CDC 01-15365


4/21

ii



NOVEMBER 21, 2006

ACTION PAGE

EXECUTIVE SESSION (continued)

26. Phuong Nguyen, CDC 01-1070527. Verdell Henley, CDC 95-1449228. John Chamberlain, CDC 96-1375229. OLD v. Homeland Security & National Flood, USDC EDLA 06-5103

30. OLD v. Lloyds of London, CDC 06-929231. OLD v Harleysville Mutual Insurance, CDC 06-929532. OLD v. Alea London Limited Ins. Co., CDC 06-930133. Hurricane Katrina Litigation:

1. Kelvin Slaton, et al. 19th JDC: 536664, USDC MDLA:05-1138

2. Ann Vodanovich, et al. CDC: 05-11669, USDC EDLA:05-5237

3. Jared Vodanovich, et al. CDC: 05-4568, USDC EDLA:2:05-cv-04191

4. Richard Vanderbrook, et al. CDC: 05-11834, USDC EDLA:

05-63235. Robert Harvey, Darleen Jacobs Levy, et al. CDC: 05-11660, USDC EDLA:

05-45686. Susan and William Laurendine, et al CDC: 05-11660, USDC EDLA:

06-35297. Mary Beth Gillaspie, et al. 19th JDC: 536-998, USDC MDLA:

05-1301-RET-CN8. Colleen Berthelot, et al. USDC EDLA: 2:05-cv-041829. Maureen ODwyer, et al. USDC EDLA: 2:05-cv-04181-

SRD-ALC10. David Kirsh, et al. USDC EDLA: 05-607311. Jim Ezell, et al. USDC EDLA: 05-6314

12. David M. Brown, Sr., et al. USDC EDLA: 05-632413. Beth A. LeBlanc, et al. USDC EDLA: 05-632714. William R. Baird and Betty K. Baird, et al. CDC: 05-12952, USDC EDLA:

06-015315. Bruce Conlay Case, et al. CDC: 05-12955, USDC EDLA:

06-015116. Diane W. Rogers, et al. CDC: 05-12954, USDC EDLA:

06-015217. Frederick Bradley, et al. CDC: 05-12915, USDC EDLA:

06-022518. Julie E. Tauzin, et al. USDC EDLA: 06-002019. Kelly A. Humphreys, et al. CDC: 05-12619, USDC EDLA:

06-016920. Milton Armstead, et al. USDC EDLA: 05-643821. Mary Beth Finney, et al. USDC EDLA: 06-088622. James E. Fitzmorris, et al. USDC EDLA: 06-234623. Peter Marcello, et al. CDC: 06-0342124. Herbert Christenberry, et al. USDC06-227825. June Sanchez, et al. USDC 06-228726. Cathy Adams, et al. USDC EDLA: 06-406527. Ingram Barge Company USDC EDLA: 05-4419, c/w 05-

4237, 05-5531 & 05-572428. Jennifer Deane-Luscy, et al. CDC: 2006-0912529. Emma Brock, et al. USDC EDLA: 06-4931

30. Ponchartrain Baptist Church, et al. 24

th

JDC 635-946


5/21

iii



NOVEMBER 21, 2006

ACTION PAGE

EXECUTIVE SESSION (continued)

39. Lisa Rodriguez, et al CDC 06-976340. Claude Baudot, et al CDC 06-971841. Audrey Robinson et al CDC 06-972642. Josephine Richardson et al CDC 06-924643. Maureen ODwyer, et al USDC EDLA 06-438944. Ingram Barge Company USDC EDLA 06-3313(05-4419

c/w 05-4237)45. Maureen ODwyer, et al USDC EDLA 06-6099

46. Glen Michael Adams, et al USDC EDLA 06-4634

MOTIONS:

*To authorize the Boards attorneys to communicate the offer containedin this resolution to the plaintiffs in the litigation entitled Haspel & DavisMilling and Planting Co., Ltd., et al v Board of Levee Commissioners,Case No. 06-3829, in the U.S. District Court for the Eastern District ofLouisiana, as appropriate in a timely manner and to inform and assist theFinance Department of the District, and the Director of Real Estate,Recreational and Non-Flood Assets, for the purpose of carrying out

those matters authorized in this Resolution; to direct that the CPRA(Coastal Protection and Restoration Authority), DOA (Division ofAdministration), the Bond Commission, the Treasurer of the State ofLouisiana, the Governors office and the Attorney Generals office benotified immediately upon passage of this resolution; and to authorize thePresident or Director of Real Estate, Recreational and Non-Flood Assetsto sign any and all documents necessary to carry out the above. ...................... 5

**To approve an Agreement with Resolve Towing & Salvage, Inc., toremove a number of unclaimed vessels, upon which Resolve asserts it

has a maritime lien to the extent of salvage and other services provided,from the Naval Reserve property to another facility in the New Orleansarea and store said vessels, at no cost to the District; and to authorizethe President, Director of Real Estate, Recreational and Non-FloodAssets or the Director of Hurricane and Flood Protection to sign saidagreement and any and all documents necessary to carry out the above,final list of vessels to be removed subject to approval of the OrleansLevee District, after review by the Legal Department. ........................................15

*Denotes approval**Tabled

31. Ray Rieth, et al v. SWB, et al CDC 06-973832. Judy Paul, et al v. SWB, et al CDC 06-973833. Gaye T. Bennett, et al 24th JDC 635-59434. Benjamin Brubbacher, et al CDC 06-9775

35. Abraham Yacob, et al CDC 06-1037236. Gwendolyn Diggs, et al CDC 06-975337. Yvonne Metters aka Matters, et al CDC 06-979638. New Investment Properties CDC 06-8203


6/21

iv



NOVEMBER 21, 2006

ACTION PAGE

MOTIONS: (continued)

**To approve a lease with Ms. Janell A. St. Martin for Store No. 3, in theLake Vista Community Center (6500 Spanish Fort Boulevard), for theoperation of Lakefront Play Palace, for a term of three years,commencing on December 1, 2006, at the current fair market value

rental rate of $14.00 per sq. ft.; and to authorize the President or Directorof Real Estate, Recreational and Non-Flood Assets to sign any and alldocuments necessary to accomplish the above. ................................................ 15

**To award a contract to Durr Heavy Construction, L.L.C, the lowestresponsible bidder, in the amount of $370,700.00, and to establish abudget in the amount of $425,000.00 to include contingencies, for theDemolition of the Lakefront Airport Chevron Building and MaintenanceBuilding and Lakefront U.S. Naval Reserve Buildings; and to authorizethe President or Director of Real Estate, Recreational and Non-FloodAssets or the Director of Hurricane and Flood Protection to sign any and

all documents necessary to carry out the above................................................. 15

**To approve the request of Mr. Denver F. Gray and recognize Mr.Michael T. Gray as an additional lessee with Mr. Denver F. Gray on theLease Agreement dated June 6, 2001, for Boathouse N-21; and toauthorize the President or Director of Real Estate, Recreational and Non-Flood Assets or the Director of Hurricane and Flood Protection to signany and all documents necessary to carry out the above...................................15

**A resolution recognizing the reversion of the property located on theNew Basin Canal (U.S. Coast Guard facility), and to authorize, President,

Legal Counsel, Director of Real Estate, Recreational and Non-FloodAssets or Director of Hurricane and Flood Protection to take any actionsand sign any and all documents necessary to accomplish the above. ...............15

**Tabled

COMMITTEE REPORTS:

STANDING COMMITTEES:

1. Ethics and Policy Committee ........................................................................15

2. Executive Committee ....................................................................................15

3. Finance Committee and Planning, Engineering andConstruction Committee ................................................................................15

SPECIAL COMMITTEES:

1. Legal Committee ..........................................................................................15

PUBLIC COMMENTS.........................................................................................15

ADJOURNMENT ...............................................................................................15


7/21

1



MINUTES OF REGULAR MONTHLY BOARD MEETING

NOVEMBER 21, 2006

__________________________________________________________

The regular monthly meeting of the Board of Commissioners of the

Orleans Levee District was held on Tuesday, November 21, 2006 at 1:40 p.m., in

the Second Floor Hall of the Lake Vista Community Center, 6500 Spanish Fort

Boulevard, New Orleans, Louisiana, after due legal notice of the meeting was

sent to each Board member, the news media, and a copy of the agenda was

posted.

President McCrossen called the meeting to order.

The roll was called and a quorum was present.

PRESENT:

The Honorable Michael P. McCrossen, PresidentThe Honorable Dan S. Foley, CommissionerThe Honorable Eugene J. Green, Jr., CommissionerThe Honorable Brenda Hatfield, CommissionerThe Honorable Darrel J. Saizan, Jr., CommissionerThe Honorable David R. Voelker, Commissioner

ABSENT:

The Honorable Allen H. Borne, Jr., Vice PresidentThe Honorable Cynthia Hedge-Morrell, Commissioner

ALSO PRESENT:

Sheila Ehren, LPBFAnn Duffy, Lake Oaks Pkwy.

OLD STAFF & CONSULTANTS PRESENT:

Louis J. Capo, Director Real Estate, Recreational and Non-Flood AssetsCornelia Ullmann, Interim CounselGlenda Boudreaux, Executive DepartmentAlbert Pappalardo, Pappalardo Consultants

Commissioner Voelker led in the pledge of allegiance.


8/21

2



MINUTES OF THE REGULAR MONTHLY BOARD MEETING

NOVEMBER 21, 2006

__________________________________________________________

I. OPENING REMARKS AND PRESENTATIONS:

1. Presentation by representative of the U.S. Army Corps of Engineers onTask Force Guardian.

Representatives from the U.S. Army Corps of Engineers were

unable to attend todays meeting; however, an update was received by staff and

the indication was that there was no significant additional information that would

have been offered at this meeting.

President McCrossen stated for the record his concern relative to

the land along the 17th Street and London Avenue Canals that may have to be

taken for future construction and the need for clarification for the residents along

those canals who will be impacted. He stated the District must implore the Corps

to make decisions on how much land will be taken along those canals. A letter

was received today, and will be forwarded to the Corps, from some residents

along the 17th Street Canal, and Commissioner Hedge-Morrell has voiced her

concern about the situation along the London Avenue Canal as well. President

McCrossen stated the Corps must be accountable for notifying these residents

as quickly as possible, so the City can take the appropriate actions, and the

residents can proceed with decisions and plans.

President McCrossen further advised the Committee and Board

Meeting for the month of December will be held as scheduled.

II. EXECUTIVE SESSION:

1. OLD v Bellsouth, CDC 2006-4817 A.2. OLD v. M/V Belle of Orleans, USDC SDAL 2006-0017-C.3. OLD v. Belle of Orleans, LLC, CDC 2006-283 L (6).4. Haspel & Davis Milling & Planting Co., Ltd, et al v. Board of Levee

Commissioners, USDC EDLA Case No. 06-3829, US Fifth Circuit Court ofAppeals, Case No. 06-31083, and Bohemia related claims:1. Billie A. Breuille v. Board, 25th JDC 53-207

2. King v. Board, 25th

JDC 37-0853. Fried v. Board, CDC 03-19794F


9/21

3

II. EXECUTIVE SESSION: (continued)

4. Riley v. Baord, 25th JDC 37-922

5. Clarence Favret, III v. Board, 25th JDC 53-9516. Conner v. Board, 25th JDC 52-5397. Succession of Ursin v. Board, 25th JDC 51-8968. Union Title v. Board, 25th JDC 52-8569. Poydras Home v. Board, 25th JDC10. Montgomery Favret v. Board, 25th JDC 54-13511. Bruce Favret v. Board, 25th JDC 54-12412. Union Benevolent v. Board, 19th JDC13. Graham v. Board, 25th JDC 54-144

5. USDC EDLA 05-5931 R "Lambert v Board".6. Bruno v. OLB, et al., CDC 01-15765.

7. OLB v. Mandry, CDC 01-166368. OLD v. American Airports Lakefront, L.L.C., CDC No. 04-166529. Polly DeGruy v. OLD, CDC 06-179710. Gary G. Benoit v. OLD, USDC 06-240211. Marina Center Lease, CDC 06-28312. Landrys Seafood House New Orleans, Inc., CDC 06-533413. Darlene Benson, USDC 05-277714. Old Hammond Townhouse Association, Inc., USDC 04-243315. Sauying Richardson, CDC 04-1187616. Barry Barth, CDC 04-999017. Jessica Hijuelos, CDC 04-08189

18. The Palms at Lake Marina, LLC, CDC 04-0139019. William Wilson, CDC 03-1876220. Joe Ellen Sutherlin, CDC-04-1261021. Robert Neidrick, CDC 03-1215822. Breaux-Kearney, CDC 00-1492123. Joseph Simmons, CDC 04-0804624. Chotin Transportation, Inc., CDC 99-1914325. Sewerage & Water Board, CDC 01-1536526. Phuong Nguyen, CDC 01-1070527. Verdell Henley, CDC 95-1449228. John Chamberlain, CDC 96-13752

29. OLD v. Homeland Security & National Flood, USDC EDLA 06-510330. OLD v. Lloyds of London, CDC 06-929231. OLD v Harleysville Mutual Insurance, CDC 06-929532. OLD v. Alea London Limited Ins. Co., CDC 06-930133. Hurricane Katrina Litigation:

1. Kelvin Slaton, et al. 19th JDC: 536664, USDC MDLA:05-1138

2. Ann Vodanovich, et al. CDC: 05-11669, USDC EDLA:05-5237

3. Jared Vodanovich, et al. CDC: 05-4568, USDC EDLA:2:05-cv-04191

4. Richard Vanderbrook, et al. CDC: 05-11834, USDC EDLA:05-63235. Robert Harvey, Darleen Jacobs Levy, et al. CDC: 05-11660, USDC EDLA:

05-45686. Susan and William Laurendine, et al CDC: 05-11660, USDC EDLA:

06-35297. Mary Beth Gillaspie, et al. 19th JDC: 536-998, USDC MDLA:

05-1301-RET-CN8. Colleen Berthelot, et al. USDC EDLA: 2:05-cv-041829. Maureen ODwyer, et al. USDC EDLA: 2:05-cv-04181-

SRD-ALC10. David Kirsh, et al. USDC EDLA: 05-607311. Jim Ezell, et al. USDC EDLA: 05-631412. David M. Brown, Sr., et al. USDC EDLA: 05-6324


10/21

4

II. EXECUTIVE SESSION: (continued)

33. Hurricane Katrina Litigation: (continued)13. Beth A. LeBlanc, et al. USDC EDLA: 05-632714. William R. Baird and Betty K. Baird, et al. CDC: 05-12952, USDC EDLA:

06-0153

39. Lisa Rodriguez, et al CDC 06-976340. Claude Baudot, et al CDC 06-971841. Audrey Robinson et al CDC 06-972642. Josephine Richardson et al CDC 06-924643. Maureen ODwyer, et al USDC EDLA 06-438944. Ingram Barge Company USDC EDLA 06-3313(05-4419

c/w 05-4237)45. Maureen ODwyer, et al USDC EDLA 06-609946. Glen Michael Adams, et al USDC EDLA 06-4634

A roll call vote was conducted and the Board unanimously voted in

favor of going into Executive Session to discuss the items listed on the agenda.

The Board convened in Executive Session at 1:43 p.m.

The Board reconvened in regular session at 2:12 p.m. and the

meeting was called back to order.

Ms. Cornelia Ullmann advised Haspel & Davis Milling & Planting

Co., Ltd, et al v. Board of Levee Commissioners, USDC EDLA Case No. 06-

3829, US Fifth Circuit Court of Appeals, Case No. 06-31083 was discussed in

15. Bruce Conlay Case, et al. CDC: 05-12955, USDC EDLA:06-0151

16. Diane W. Rogers, et al. CDC: 05-12954, USDC EDLA:06-0152

17. Frederick Bradley, et al. CDC: 05-12915, USDC EDLA:06-0225

18. Julie E. Tauzin, et al. USDC EDLA: 06-002019. Kelly A. Humphreys, et al. CDC: 05-12619, USDC EDLA:

06-016920. Milton Armstead, et al. USDC EDLA: 05-643821. Mary Beth Finney, et al. USDC EDLA: 06-088622. James E. Fitzmorris, et al. USDC EDLA: 06-234623. Peter Marcello, et al. CDC: 06-0342124. Herbert Christenberry, et al. USDC06-227825. June Sanchez, et al. USDC 06-228726. Cathy Adams, et al. USDC EDLA: 06-406527. Ingram Barge Company USDC EDLA: 05-4419, c/w 05-

4237, 05-5531 & 05-572428. Jennifer Deane-Luscy, et al. CDC: 2006-0912529. Emma Brock, et al. USDC EDLA: 06-493130. Ponchartrain Baptist Church, et al. 24th JDC 635-94631. Ray Rieth, et al v. SWB, et al CDC 06-973832. Judy Paul, et al v. SWB, et al CDC 06-973833. Gaye T. Bennett, et al 24th JDC 635-59434. Benjamin Brubbacher, et al CDC 06-977535. Abraham Yacob, et al CDC 06-1037236. Gwendolyn Diggs, et al CDC 06-975337. Yvonne Metters aka Matters, et al CDC 06-979638. New Investment Properties CDC 06-8203


11/21

5

Executive Session, and as a result of discussions in Executive Session the rules

will be waived and a resolution introduced.

Commissioner Voelker offered a motion to waive the rules to

introduce and add a resolution to the agenda relative to the Haspel & Davis

Milling & Planting Co., Ltd. case, which was seconded by Commissioner Foley,

and unanimously approved by the Board.

III. MOTIONS:

A. To authorize the Boards attorneys to communicate the offer contained inthis resolution to the plaintiffs in the litigation entitled Haspel & DavisMilling and Planting Co., Ltd., et al v Board of Levee Commissioners,Case No. 06-3829, in the U.S. District Court for the Eastern District ofLouisiana, as appropriate in a timely manner and to inform and assist theFinance Department of the District, and the Director of Real Estate,Recreational and Non-Flood Assets, for the purpose of carrying out thosematters authorized in this Resolution; to direct that the CPRA (CoastalProtection and Restoration Authority), DOA (Division of Administration),the Bond Commission, the Treasurer of the State of Louisiana, theGovernors office and the Attorney Generals office be notified immediately

upon passage of this resolution; and to authorize the President or Directorof Real Estate, Recreational and Non-Flood Assets to sign any and alldocuments necessary to carry out the above.

President McCrossen advised the action the Board would like to

undertake is based on several meetings going back several months with the

Louisiana Attorney General, the Governors Office, the Division of Administration

and others relative to the Bohemia Spillway class action suit. The Board had

previously proposed a settlement of that litigation prior to Hurricane Katrina, and

is now proposing, with the concurrence of the Attorney General, another

resolution of that litigation. The Board hopes to bring this litigation to a

resolution. The Attorney General is representing this Board, and the Governor

and Division of Administration are involved on a daily basis.

Ms. Ullmann read the pertinent portions of a draft resolution.

Commissioner Foley requested the following language be included

in the draft resolution: The plaintiffs agree to forbear on the execution of the

October 10, 2006 judgment during the period of time in which the Orleans Levee

District is entitled to make payment. If payments are not made timely, the

payments shall constitute a credit towards satisfaction of the judgment; however,

if payments are made timely and in accordance with the terms of the settlement


12/21

6

agreement, the judgment shall be considered fully satisfied. A sufficient number

of claimants/plaintiffs must accept the settlement agreement such that the

aggregate amount of their claims is equal to or greater than 90 percent of the

monetary amount of the judgment rendered by the U.S. District Court in Case

No. 06-3829 less legitimate credits due to the Orleans Levee District. The

plaintiffs must file motions seeking approval of the proposed settlement in

accordance with the deadline to be determined by the Louisiana Attorney

General.

Ms. Ullmann advised the Board needed to address whether the

Attorney Generals Office will be delegated with working out any necessary

details.

President McCrossen replied Ms. Ullmann was correct in that the

Attorney General is acting as the Boards legal representative. He then quoted

from Governor Blancos letter dated November 20, 2006, The negotiations and

actions taken to resolve the reference litigation must be concurred in by the

Attorney Generals Office.

Commissioner Green stated he has studied this matter and

recognizes it is in the best interest of the Board to settle this litigation and felt the

Board should be commended for working out the details, with use of the States

resources, to get this potentially off the table. Therefore, despite some

objections he may have with this complex matter, in the interest of the Board and

the future of the organization, he would be voting to support this resolution.

Commissioner Foley stated it was his understanding that Mr. Capo

had evaluated the finances of the Board and believes it is in a financial position

to meet the terms of this settlement.

Mr. Louis Capo, Director of Real Estate, Recreational and Non-

Flood Assets, responded, yes, based on the information that he had to work with,

he would have to concur and agree with that.

President McCrossen complimented the Governor, the Attorney

General, the Division of Administration and CPRA for stepping up and doing the


13/21

7

best thing for this District. He explained, there will be a new governing body on

January 1, 2007; however, the Orleans Levee District stays in place, and it is

essential for the solvency of the District to have all of these parties working

together. He noted this has been done in a historic time, based on what the

District had to deal with in terms of the worst natural disaster in American history,

and yet moving forward. He felt that under the guise of the Division of

Administration, the non-flood assets will be managed in a profitable manner, and

should the District need any additional resources in the forthcoming years, the

State, which is currently in a surplus fund position, could be asked for help.

There was no further discussion on the motion, therefore,

Resolution No. 1-112106, offered by Commissioner Voelker, seconded by

Commissioner Foley, was unanimously adopted (as there was no tie vote,

President McCrossen did not vote on the motion), to-wit:

MOTION: 6-112106

RESOLUTION: 1-112106

BY: Commissioner David R. Voelker

SECONDED BY: Commissioner Dan S. Foley

November 21, 2006

R E S O L U T I O N

WHEREAS, by Act 99 of 1924 the Legislature required the Orleans

Levee District to locate land in Plaquemines Parish for the construction of a

spillway for the purpose of flood protection for the City of New Orleans; and

WHEREAS, the Orleans Levee District located approximately

twenty miles of river frontage on the east bank of the river in Plaquemines Parish;

and

WHEREAS, the Legislature directed the Orleans Levee District to

purchase or expropriate the lands needed for the construction of the spillway;

and


14/21

8

WHEREAS, the Legislature further required that the Orleans Levee

District pay the bonded indebtedness of the then bankrupt Grand Prairie and the

East Bank Levee Districts; and

WHEREAS, the Orleans Levee District purchased ninety-seven

percent of the land in arms length transactions and expropriated the remaining

three percent of the land from the only unwilling sellers; and

WHEREAS, the land owners who willingly sold their property to the

Orleans Levee District realized huge profits well in excess of market value at the

time; and

WHEREAS, the Orleans Levee District paid all of the bonded

indebtedness of the Grand Prairie and East Bank Levee Districts; and

WHEREAS, the Orleans Levee District constructed the Bohemia

Spillway in 1925-26, spending well in excess of one and a half million dollars in

construction and maintenance of the spillway over fifty-nine years; and

WHEREAS, some sixteen years after the spillway was constructed

mineral revenues began to be produced from the land; and

WHEREAS, as early as 1952 the landowners who realized huge

profits from the sale of the land to the Orleans Levee District began attempts to

regain the land and minerals through legislation; and

WHEREAS, in 1962 the Legislature reduced the millage authorized

for the Orleans Levee District by fifty percent due to receipt of mineral revenues

from the spillway, and in the 2006 Acts the Legislature maintained the reduced

millage for the Orleans Levee District despite the debilitating effects from

Hurricane Katrina; and

WHEREAS, if the Orleans Levee District had retained its authorized

millage in 1962, the District would have realized more revenue from the millage

than it did from the mineral revenues that came from production in the spillway;

and


15/21

9

WHEREAS, in 1984 the Legislature passed Act 233 declaring the

need for the spillway to no longer exist thereby ordering the return of the land

and minerals to the previous owners or their heirs; and

WHEREAS, according to the U.S. Army Corps of Engineers, the

Spillway operated at least twice during the Legislative session of 1984, and the

Spillway continues to operate to this day whenever the Carrollton gage is at 15

feet; and

WHEREAS, Act 233 of 1984 directed the Department of Natural

Resources to establish rules to receive claims and certify to the Orleans Levee

District the proper successors in interests for the return of lands and mineral

rights in the spillway; and

WHEREAS, the owners of the largest tracts of land received the

return of their lands through conveyance from the Orleans Levee District as long

ago as 1991; and

WHEREAS, the owners of all tracts of land have received all

mineral revenues from production on the lands since receiving their deeds; and

WHEREAS, the landowners who have been receiving mineral

revenues since the time that the lands were conveyed have successfully

convinced the courts that they should also receive all mineral revenues plus

interest on the value of production received by the Orleans Levee District

between the date of Act 233 of 1984 and the date that conveyances were made;

and

WHEREAS, in addition to the Orleans Levee District losing half of

its taxing authority in 1962, it has lost all future mineral revenues after

conveyance to successors in interest, and has been ordered to pay

approximately Twenty-Five Million Dollars in mineral revenues received before

the return of the property plus interest thereon; and

WHEREAS, the Orleans Levee District and the citizens of Orleans

Parish have suffered a great financial burden from the original purchase of the

land, the construction and maintenance of the spillway, the loss of half of its


16/21

10

millage, the loss of future revenues, and the loss of revenues received and spent

prior to return of the land, all without any credit or compensation for the funds

used to purchase the land, construct and maintain the spillway; and

WHEREAS, in litigation entitled Haspel & Davis Milling and

Planting Co., Ltd., Jean Mayer Connel, Joseph Jean Torres, Sr., Bohemia

Planting Co., Inc., Leonie Davis Rothschild and Arthur Q. Davis, for Themselves

and on Behalf of all Similarly Situated v. Board of Levee Commissioners of the

Orleans Levee District, Case No. 31-357 on the docket of the 25 th Judicial

District Court for the Parish of Plaquemines, a judgment was rendered in favor of

the plaintiffs awarding the sum of $18,767,144.76 plus special interest from date

of judgment until paid, for the sum of revenues paid to the Levee Board for its

share of royalties under mineral leases in the Bohemia Spillway, and

WHEREAS, by Resolution No. 1-071900 of July 19, 2000, the

Board approved and the Orleans Levee District paid unto plaintiffs, Haspel &

Davis et al., by depositing into the Registry of the Court, the full sum of

$1,968,263.72 for the payment of all claims of under $10,000.00 in said suit; and

WHEREAS, by Resolution No. 11-081501 of August 15, 2001, the

Board approved and the Orleans Levee District paid unto plaintiffs, Haspel &

Davis et al., a fair and reasonable distribution of available funds in the full sum of

$371,532.00 into the Bohemia Class Action Fund for the benefit of the plaintiffs

in the said suit; and

WHEREAS, by Resolution No. 4-121802 of December 18, 2002,

the Board approved and the Orleans Levee District paid unto plaintiffs, Haspel &

Davis et al., one full payment, with interest, current through August 15, 2002 in

the full sum of $1,906,023.00 to partially satisfy those claims of over $10,000.00

in said suit; and

WHEREAS, by Resolution No. 10-012104 of January 21, 2004, the

Board authorized one full payment with interest, current through August 15, 2003

in the full sum of $600,000.00 to partially satisfy those claims in the said suit, and

that Class Counsel in the Haspel and Davis Class Action agreed that the


17/21

11

payment shall make the Board current through August 15, 2003, under the terms

of Settlement Document and the Consent Judgment dated December 11, 2000;

and

WHEREAS, by Resolution No. 6-121504 of December 15, 2004 the

Board authorized one full payment, in the full sum of $350,000.00 into the

Bohemia Class Action Fund for the benefit of the plaintiffs in the Haspel &

Davis Milling and Planting Co., Ltd., Jean Mayer Connel, Joseph Jean Torres,

Sr., Bohemia Planting Co., Inc., Leonie Davis Rothschild and Arthur Q. Davis, for

Themselves and on Behalf of all Similarly Situated v. Board of Levee

Commissioners of the Orleans Levee District, Case No. 31-357; and

WHEREAS, over the years the Board has transferred properties as

directed and made payments totaling over $9 million in claims and judgments

and still owes over $23 million, including other claims, and in order to reduce the

principal amount of the judgment and significant interest; and

WHEREAS, after concerted effort the Board and its attorney

negotiated an agreement with the plaintiffs which resulted in Resolution No. 3-

072005 in July of 2005, settling the matter for $10,076,559.41, with a deadline to

fund the final payment on or before January 21, 2006; and

WHEREAS, Hurricane Katrina struck on August 29, 2005, causing

significant damage to the income producing properties of the Orleans Levee

District, disrupting the ability of the Board to effect the settlement by the agreed

upon deadline; and

WHEREAS, thereafter the plaintiffs began a legal course of action

resulting in the dissolution of the 2005 settlement, and pursued further litigation in

federal court; and

WHEREAS, in litigation entitled Haspel & Davis Milling and

Planting Co., Ltd., et al v Board of Levee Commissioners, Case No. 06-3829, in

the U.S. District Court for the Eastern District of Louisiana, a portion of that

principal judgment, along with interest and attorneys fees, was reduced to a


18/21

12

judgment as a federal takings claim in the principal amount of $17,442,322.96;

and

WHEREAS, that judgment became executory and subjected the

assets of the Orleans Levee District to seizure, threatening the rebuilding and

recovery of New Orleans and the surrounding parishes, the Levee District, and

hurricane and flood protection for the New Orleans area, as well as all the jobs of

the civil service employees charged with flood protection; and

WHEREAS, the Board made immediate application to the 5th Circuit

Court of Appeals to review the decision of the trial court, as well as request a

stay pending appeal and a waiver of the requirement to file an appeal bond,

which relief was denied by the 5th Circuit on November 10, 2006; and

WHEREAS, in order to prevent seizure of public assets, the District

is required to post an appeal bond in the amount of 120% of the judgment value,

which amount is estimated to be $24 million, and further that the District does not

have the ability, either financially or legally to fund such a bond; and

WHEREAS, the Board of Commissioners of the Orleans Levee

District desires to end this huge financial drain on its resources created by

legislative acts and the courts; and

WHEREAS, in November of 2005, the CPRA (Coastal Protection

and Restoration Authority) was created and empowered with oversight over the

levee districts; and

WHEREAS, in the First Special Session of the 2006 Legislature,

constitutional amendments were proposed effectuating levee board

consolidation, and additionally transferred the non-flood assets of the various

levee districts, including the Orleans Levee District to the Louisiana Division of

Administration, which amendments were approved by the voters of the State of

Louisiana on September 30, 2006; and

WHEREAS, the Board has continually kept the authorities of the

State advised of the status and proceedings in this matter, seeking their

guidance, assistance and cooperation in order to protect the assets of the District


19/21

13

from a seizure which would severely impact the finances of the District and

compromise hurricane and flood protection; and

WHEREAS, having received direction from the Governor in her

letters dated November 13 and 20, 2006, the Board, after careful thought and

deliberation, and upon consultation with its various attorneys, trial counsel,

financial counsel, the CPRA (Coastal Protection and Restoration Authority), DOA

(Division of Administration), the Bond Commission, the Treasurer of the State of

Louisiana, the Governors office and the Attorney Generals office; and

WHEREAS, the Attorney General is acting as the legal

representative for the Orleans Levee District in negotiation of the details of an

informal stay and a settlement of this matter; and

WHEREAS, this Resolution constitutes an offer of less than the full

amount due to the members of the Haspel & Davis Class who hold the largest

claims against the Orleans Levee District; and

WHEREAS, the full discounted amount of this offer is for $13

million, contingent upon the following terms and conditions: initial payment of

$6.3 million, upon execution of the agreement of the parties, and this sum will be

segregated in an Orleans Levee District account at LAMP in a separate account

designated to fund this settlement. Providing the final settlement documents

have been executed and the settlement approved by the courts and all the

plaintiffs, the second payment of $2.5 million will be deposited in the segregated

account on or before March 31, 2007 or within ninety days of the funding of the

initial payment, whichever is later; a third payment of $2.2 million will be

deposited in the segregated account on or before December 31, 2007; and a

final payment of $2 million will be deposited in the segregated account on or

before July 1, 2008. Additional terms and conditions include: The plaintiffs

undertake all responsibility to obtain class and court approval. The plaintiffs

agree to forbear on the execution of the October 10, 2006 judgment during the

period of time in which the Orleans Levee District is entitled to make payment. If

payments are not made timely, the payments shall constitute a credit towards


20/21

14

satisfaction of the judgment; however, if payments are made timely and in

accordance with the terms of the settlement agreement, the judgment shall be

considered fully satisfied. A sufficient number of claimants/plaintiffs must accept

the settlement agreement such that the aggregate amount of their claims is equal

to or greater than 90 percent of the monetary amount of the judgment rendered

by the U.S. District Court in Case No. 06-3829 less legitimate credits due to the

Orleans Levee District. The plaintiffs must file motions seeking approval of the

proposed settlement in accordance with the deadline to be determined by the

Louisiana Attorney General. Formal settlement agreements and releases are to

be confected by counsel for the parties, including an affidavit by the plaintiffs

listing all the members of the class by name and interest to be submitted at the

time the settlement documents are confected; and subject to the concurrence of

the Attorney Generals office, as directed by the Governor; and

BE IT HEREBY RESOLVED, That the CPRA (Coastal Protection

and Restoration Authority), DOA (Division of Administration), the Bond

Commission, the Treasurer of the State of Louisiana, the Governors office and

the Attorney Generals office be notified immediately upon passage of this

resolution.

BE IT FURTHER RESOLVED, That the Boards attorneys are

authorized to communicate this offer as appropriate in a timely manner and to

inform and assist the Finance Department of the District, and the Director of Real

Estate, Recreational and Non-Flood Assets, for the purpose of carrying out those

matters authorized in this Resolution.

BE IT FURTHER RESOLVED, That the President or Director of

Real Estate, Recreational and Non-Flood Assets be authorized to sign any and

all documents necessary to carry out the above.

AYES: Commissioners Foley, Green, Hatfield, Saizan and Voelker

NAYS: None

ABSENT: Commissioner Borne and Hedge-Morrell

RESOLUTION ADOPTED: Yes


21/21

President McCrossen announced, because of Governor Blancos

letter dated November 13, 2006, which was sent to all the levee districts officially

placing the districts in a transition mode with CPRA having strict oversight over

the consolidation, which has been gracefully accepted by the Board in order to

facilitate a smooth, orderly and transparent transition, and the fact that no further

concurrence had been received from the CPRA, the Board would not conduct

any additional business and all further matters on the agenda would be tabled.

IV. PUBLIC COMMENTS:

Ms. Ann Duffy, President of Lake Oaks Neighborhood Association,

asked what affect would the transition have on activities, such as administering

the subdivisions building restrictions.

President McCrossen explained the District would stay intact;

management of the east bank flood assets would go to the Southeast Louisiana

Flood Control Authority East, and management of Algiers to the West authority.

Management of the non-flood assets would go to the Division of Administration to

determine how they will be managed and controlled. Also, representatives of the

home owners associations met yesterday with Mr. Jerry LeBlanc, and

additionally President McCrossen has met with Mr. LeBlanc, to work on the

transition to assure all the things that have happened in the past would continue.

V. ADJOURNMENT:

Due to the loss of a quorum of the Board, the meeting was

adjourned at 2:33 p.m.

Respectfully submitted,

_________/S/_________________

LOUIS J. CAPO,SECRETARY

I, Louis J. Capo, Secretary of theBoard of Commissioners of theOrleans Levee District do herebycertify that the foregoing is a true andcorrect copy of the minutes of the Boardmeeting of November 21, 2006.

________/S/___________________

LOUIS J. CAPO, SECRETARY

2006.11.21.board_minutesland may need to be taken for construction

Documents