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BOARD OF COMMISSIONERS
PORT OF NEW ORLEANS
MINUTES
OF
THE BUDGET COMMITTEE MEETING
APRIL 21, 2014
A MEETING OF THE BUDGET COMMITTEE OF THE BOARD OF
COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE
PRESENTATION ROOM ON THE 4TH
FLOOR AT ITS OFFICES AT 1350 PORT OF
NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER
BY AD HOC COMMITTEE CHAIRMAN WILLIAM T. BERGERON AT 3:35 P.M. ON
MONDAY APRIL 21, 2014.
COMMITTEE MEMBERS William T. Bergeron, Ad Hoc Committee Chairman
PRESENT: Joseph F. Toomy, Member
Daniel F. Packer, Jr., Member
Michael W. Kearney, Member (left at 4:15 P.M.)
Robert R. Barkerding, Jr., Member
MEMBERS ABSENT: Gregory R. Rusovich, Committee Chairman
Scott H. Cooper, Member
STAFF: G. LaGrange, President & Chief Executive Officer
P. Gallwey, Chief Operating Officer
B. Gussoni, Executive Counsel
J. Ruckert, Director, Finance & Information Technology
M. Rubino, Staff Attorney
W. Stokes, Executive Secretary
N. Lopez, Legal Department
GUESTS: J. Holt, Government Consultants
R. Kelly, City Business
A. Determination of Quorum and Call to Order
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.
B. Public Comment
Ad Hoc Chairman Bergeron called for public comment, but there was none.
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C. Briefing and Discussion Items
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 the President and Chief
Executive Officer to Enter 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.
After discussion, the committee indicated it would refer this matter favorably to the
Board at its next scheduled regular meeting.
4. Briefing on and Discussion 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 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
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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.
D. Adjournment
There being no further business to come before the committee, Ad Hoc Committee
Chairman Bergeron adjourned the meeting at 4:35 P.M.
BOARD OF COMMISSIONERS
PORT OF NEW ORLEANS
MINUTES
OF
THE PLANNING AND ENGINEERING
COMMITTEE MEETING
APRIL 21, 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 4TH
FLOOR AT ITS OFFICES AT 1350 PORT OF
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, APRIL 21, 2014.
COMMITTEE MEMBERS Robert R. Barkerding, Jr., Ad Hoc Chairman
PRESENT: Joseph F. Toomy, Member
Daniel F. Packer, Jr., Member
Michael W. Kearney, Member
William T. Bergeron, Jr., Member
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MEMBERS ABSENT: Gregory R. Rusovich, Member
Scott H. Cooper, Committee Chairman
STAFF: G. LaGrange, President & Chief Executive Officer
P. Gallwey, Chief Operating Officer
B. Gussoni, Executive Counsel
C. Bonura, Director, Business Development
R. Jumonville, Director, Cruise & Tourism
D. Keller, Director, Port Development
P. Zimmerman, Director, Operations
A. Fant, Deputy Director, Operations
M. Rubino, Staff Attorney
W. Stokes, Executive Secretary
N. Lopez, Legal Department
GUESTS: C. Balthazar, Riverworks
R. Kelly, City Business
A. Determination of Quorum and Call to Order
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.
B. Public Comment
Ad Hoc Chairman Barkerding called for public comment, but there was none.
C. Briefing and Discussion Items
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 re-reeving 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.
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After discussion, the committee indicated it would refer this matter favorably to the
Board at its next regularly scheduled meeting.
2. Briefing on and Discussion of a Resolution Authorizing the President and Chief
Executive Officer to Enter 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 clean-up 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.
After discussion, the committee indicated it would refer this matter favorably to the
Board at its next regularly scheduled meeting.
3. Briefing on and Discussion of a Resolution Authorizing the President and Chief
Executive Officer to Enter into 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.
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 a Resolution Authorizing the President and Chief
Executive Officer to Enter 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.
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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.
After discussion, the committee indicated it would refer this matter favorably to the
Board at its next regularly scheduled meeting.
5. Briefing on and Discussion of a Resolution Authorizing the President and Chief
Executive Officer to Enter into a Contract with Trigon Associates, LLC, for
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.
After discussion, the committee indicated it would refer this matter favorably to the
Board at its next regularly scheduled meeting.
6. Briefing on and Discussion of an Award of Contract to B & K Contractors, Inc.,
for the Port Administration Building 4th 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.
After discussion, the committee indicated it would refer this matter favorably to the
Board at its next regularly scheduled meeting.
D. Adjournment
There being no further business to come before the committee, Ad Hoc Committee
Chairman Barkerding adjourned the meeting at 3:30 P.M.
BOARD OF COMMISSIONERS
PORT OF NEW ORLEANS
MINUTES
OF
THE PROPERTY AND INSURANCE
COMMITTEE MEETING
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APRIL 21, 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 4TH
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 1:40 P.M. ON MONDAY,
APRIL 21, 2014.
COMMITTEE MEMBERS Michael W. Kearney, Committee Chairman
PRESENT: Joseph F. Toomy, Member
Daniel F. Packer, Jr., Member
William T. Bergeron, Member
Robert R. Barkerding, Jr., Member
MEMBERS ABSENT: Gregory R. Rusovich, Member
Scott H. Cooper, Member
STAFF: G. LaGrange, President & Chief Executive Officer
P. Gallwey, Chief Operating Officer
B. Gussoni, Executive Counsel
C. Bonura, Director, Business Development
P. Zimmerman, Director, Operations
C. Richard, Executive Assistant
M. Rubino, Staff Attorney
W. Stokes, Executive Secretary
N. Lopez, Legal Department
B. Ethridge, Executive Intern
M. Gresham, Executive Assistant, External Affairs
GUESTS: 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
R. Kelly, City Business
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.)
A. Determination of Quorum and Call to Order
Committee Chairman Kearney determined the existence of a quorum and called the
meeting to order at 1:36 P.M.
B. Public Comment
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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 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.
After discussion, the committee indicated it would refer 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
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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
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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.
After discussion, the committee indicated it would refer this matter favorably to the
entire Board at its next regularly scheduled meeting.
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 co-exist 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
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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, 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.
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D. Adjournment
There being no further business to come before the committee, Committee Chairman
Kearney adjourned the meeting at 3:00 P.M.
BOARD OF COMMISSIONERS
PORT OF NEW ORLEANS
MINUTES
OF
THE EXECUTIVE COMMITTEE MEETING
APRIL 28, 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 4TH
FLOOR AT ITS OFFICES AT 1350 PORT OF
NEW ORLEANS PLACE, NEW ORLEANS, LOUISIANA, WAS CALLED TO ORDER
BY COMMITTEE CHAIRMAN DANIEL F. PACKER, JR., AT 9:16 A.M. ON MONDAY,
APRIL 28, 2014.
COMMITTEE MEMBERS Daniel F. Packer, Jr., Chairman
PRESENT: Joseph F. Toomy, Member
Gregory R. Rusovich, Member (arrived at 9:30 A.M.)
Scott H. Cooper, Member
Michael W. Kearney, Member
William T. Bergeron, Member
Robert R. Barkerding, Jr., Member
STAFF: G. LaGrange, President & Chief Executive Officer
P. Gallwey, Chief Operating Officer
B. Gussoni, Executive Counsel
D. Keller, Director, Port Development
B. Landry, Chief Commercial Officer
M. Gresham, Executive Assistant for External Affairs
M. Orlesh, Special Counsel
C. Dunn, Deputy Director, Port Development
M. Rubino, Staff Attorney
W. Stokes, Executive Secretary
N. Lopez, Legal Services
GUESTS: C. Johnsen, Jones Walker, Washington, DC
Page 13 of 22
J. Jaskot, Jones Walker, Washington, DC
(both via conference call)
A. Determination of Quorum and Call to Order
Chairman Packer determined the presence of a quorum and called the meeting to order at
9:16 A.M.
B. Public Comment
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.
D. President & Chief Executive Officer’s Comments
Mr. LaGrange had no comments.
E. Briefing and Discussion Items
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.
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.
Page 14 of 22
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.
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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
There being no further business to come before the committee, Committee Chairman
Packer adjourned the meeting at 11:10 A.M.
BOARD OF COMMISSIONERS
PORT OF NEW ORLEANS
MINUTES
OF
THE REGULAR MEETING
OF
APRIL 28, 2014
MEETING NO. 10, FISCAL YEAR 2014, A REGULAR MEETING OF THE BOARD OF
COMMISSIONERS OF THE PORT OF NEW ORLEANS, HELD IN THE MAIN
AUDITORIUM AT ITS OFFICES AT 1350 PORT OF NEW ORLEANS PLACE, NEW
ORLEANS, LOUISIANA, WAS CALLED TO ORDER AT 11:19 A.M. ON THURSDAY,
APRIL 28, 2014, BY CHAIRMAN DANIEL F. PACKER, JR.
COMMITTEE MEMBERS Daniel F. Packer, Jr., Chairman
PRESENT: Gregory R. Rusovich, Vice-Chairman
Scott H. Cooper, Secretary-Treasurer
Joseph F. Toomy, Member
Michael W. Kearney, Member
William T. Bergeron, Member
Robert R. Barkerding, Jr., Member
STAFF: G. LaGrange, President & Chief Executive Officer
P. Gallwey, Chief Operating Officer
B. Gussoni, Executive Counsel
D. Keller, Director, Port Development
E. Pansano, Director, Internal Audit
S. Ordoyne, Executive Assistant
G. Hager, Director, Human Resources
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A. Fant, Deputy Director, Operations
T. Martin, Manager, Services and Contract Administration
M. Rubino, Staff Attorney
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
GUESTS: C. Kane, Adams & Reese LLP.
R. Kelly, City Business
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
Board Chairman Packer determined the presence of a quorum and called the meeting to
order at 11:19 A.M.
II. 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.
III. 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
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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.
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
Ms. Keller asked the Board to consider an 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. 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.
Commissioner Cooper advised the Board that the Planning and Engineering
Committee had met and reviewed the award of this contract with staff, and he moved
for its approval. Commissioner Rusovich seconded the motion. MOTION
CARRIED UNANIMOUSLY.
B. Consider Approval of a Resolution Authorizing the President and Chief
Executive Officer to Enter into a Contract with U.S. Risk Management, LLC,
for Professional Services for As-Needed Environmental Site Assessments,
Hazards Abatement, and Remediation
Ms. Keller asked the Board to consider an award of a contract to U.S. Risk
Management, LLC, for a period of two years at a cost not to exceed $200,000.
Commissioner Cooper advised the Board that the Planning and Engineering
Committee had met and reviewed the award of this contract with staff, and he moved
for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED
UNANIMOUSLY.
C. Consider Approval of a Resolution Authorizing the President and Chief
Executive Officer to Enter into a Contract with U.S. Risk Management, LLC,
for Professional Services for As-Needed Environmental Compliance Assessments
and Guidance Development
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Ms. Keller asked the Board to consider an award of a contract 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 Cooper advised the Board that the Planning and Engineering
Committee had met and reviewed the award of this contract with staff, and he moved
for its approval. Commissioner Rusovich seconded the motion. MOTION
CARRIED UNANIMOUSLY.
D. Consider Approval of a Resolution Authorizing the President and Chief
Executive Officer to Enter 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 asked the Board to consider an award of a contract 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.
Commissioner Cooper advised the Board that the Planning and Engineering
Committee had met and reviewed the award of this contract with staff, and he moved
for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED
UNANIMOUSLY.
E. Consider Approval of a Resolution Authorizing the President and Chief
Executive Officer to Enter into a Contract with Trigon Associates, LLC, for
Professional Services for As-Needed Emergency Preparedness and Response
Ms. Keller asked the Board to consider an award of a contract 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.
Commissioner Cooper advised the Board that the Planning and Engineering
Committee had met and reviewed the award of this contract with staff, and he moved
for its approval. Commissioner Toomy seconded the motion. MOTION CARRIED
UNANIMOUSLY.
F. Consider Award of a Contract to B&K Contractors, Inc., for the Port
Administration Building 4th Floor Office Renovations
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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 Cooper advised the Board that the Planning and Engineering
Committee had met and reviewed the award of this contract with staff, and he moved
for its approval. Commissioner Kearney seconded the motion. MOTION CARRIED
UNANIMOUSLY.
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 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.
Commissioner Kearney advised the Board that the Property and Insurance Committee
had met and reviewed this matter with staff, and he moved for its approval.
Commissioner Cooper seconded the motion. MOTION CARRIED
UNANIMOUSLY.
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
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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.
Commissioner Kearney advised the Board that the Property and Insurance Committee
had met and reviewed the matter 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.
Commissioner Kearney advised the Board that the Property and Insurance Committee
had met and reviewed the matter with staff, and he moved for its approval.
Commissioner Barkerding seconded the motion. MOTION CARRIED
UNANIMOUSLY.
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 and Insurance
Committee had met and reviewed the matter with the staff, and he moved for its
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approval. Commissioner Cooper seconded the Motion. MOTION CARRIED
UNANIMOUSLY.
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 Committee had met and
reviewed this matter with staff, and he moved for its approval. Commissioner Cooper
seconded the motion. MOTION CARRIED UNANIMOUSLY.
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 Committee had met and
reviewed this matter with staff, and he moved for its approval. Commissioner Cooper
seconded the motion. MOTION CARRIED UNANIMOUSLY.
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 Committee had met and
reviewed this matter with staff, and he moved for its approval. Commissioner Toomy
seconded the motion. MOTION CARRIED UNANIMOUSLY.
VII. Report by the President and Chief Executive Officer
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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.
VIII. Old Business
There was no old business before the Board.
IX. 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