PORT OF NEW ORLEANS LEGALS

MINUTES
BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF
THE BUDGET COMMITTEE MEETING OCTOBER 19, 2015
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 COMMITTEE CHAIRMAN WILLIAM T.
BERGERON AT 1:38 P.M. ON MONDAY
OCTOBER 19, 2015.
COMMITTEE MEMBERS William T. Bergeron, Committee Chairman
PRESENT: Scott H. Cooper, Member Michael W. Kearney, Member
Robert R. Barkerding, Jr., Member Laney J. Chouest, Member
Arnold B. Baker, Member
COMMITTEE MEMBER Gregory R. Rusovich, Member
ABSENT:
STAFF: G. LaGrange, President and Chief Executive Officer
B. Christian, Chief Operating Officer
B. Gussoni, Executive Counsel
B. Landry, Chief Commercial Officer
J. Ruckert, Chief Financial Officer
M. Gresham, Director of External Affairs
M. Orlesh, Special Counsel
M. Rubino, Staff Attorney
W. Stokes, Administrative Assistant
H. Fontenot, Paralegal
GUESTS: J. Holt, Government Consultants
L. Traweek, City Business
S. Weeks, Foley & Judell, L.L.P.
L. Bressler, Raymond James & Associates, Inc.
S. DAunoy, Hub International
B. Naghani, BCM Consultants
A. Determination of Quorum and Call to Order
Committee Chairman Bergeron determined the existence of a quorum and
called the meeting to order at 1:38 P.M.
B. Public Comment
Committee Chairman Bergeron deferred any public comment until after the
presentations.
C. Briefing and Discussion Items
1. Review of September, 2015, Financial Statement
Mr. Ruckert briefed the committee on the September, 2015, financial statement.
He distributed a report detailing the financial information, a copy of which is
made part of these minutes. Mr. Ruckert discussed the GASB 68 governmental
accounting standards, which went into effect in 2015. This requires government
entities to report their unfunded actuarial liabilities for retirement pensions. He
said that the Boards share of LASERS will be $42,000,000 and it will show as
an increase on next months financial statement under noncurrent liabilities.
Commissioner Baker asked if this was expected. Mr. Ruckert said that he did
expect it, but did not know the amount of the Boards share until LASERS
was audited and the amounts owing by the various government entities were
decided.
Mr. Ruckert stated that September was another good month and that operating
revenues were above the budget and operating expenses were below the budget.
He said that dockage was below the budget from a lack of GRT (gross registered
tonnage) with regards to breakbulk.
Commissioner Kearney questioned the parking year-to-date below budget
position. Mr. Ruckert stated that it stemmed from cruise fly-in traffic. He
went on to say that in October the Carnival Dream had an extended cruise of
twenty-one days. Longer voyages attract more fly-in passengers than drive-in
passengers, and that will affect the passenger wharfage revenue with one less
voyage.
2. Briefing on and Discussion of a Resolution Authorizing the Issuance of Not
Exceeding $45,000,000 of Board of Commissioners of the Port of New Orleans
Port Facility Refunding Revenue Bonds for the Purpose of Construction of the
Thalia Street Parking Garage and the Completion of the Poland Avenue Cruise
Terminal and Related
Construction through a Public Offering of Said Bonds and Providing for Other
Matters with Respect to the Issuance of These Bonds.
Mr. Ruckert introduced and welcomed Mr. Lee Bressler, underwriter with
Raymond James & Associates, Inc., and Ms. Susan Weeks, special bond counsel
with Foley & Judell, L.L.P. He stated that the Board is in the preliminary stages
of issuing the debt and looking at building a new parking terminal next to the
present cruise terminal and over the present employee parking lot. Mr. Ruckert
stated that he is asking for approval of a resolution authorizing the issuance
of not exceeding $45,000,000 of Board of Commissioners of the Port of New
Orleans Port Facility refunding revenue bonds. The bond funds would be for
the construction of a new Thalia Street Parking Garage and the completion of
the Poland Avenue Cruise Terminal, related construction costs and other costs
related to the issuance of the bonds.
Ms. Weeks mentioned that the bonds are tax-exempt under the Internal Revenue
Code. Also, by passing this resolution now, the Board can reimburse itself for
expenditures related to the construction that occurs before the issuance of debt.
Commission Baker expressed concerns regarding the higher amount of the
bond issue than the cost of the parking garage and cruise terminal. Mr. Ruckert
replied that the amount is higher to take into account bond issuance expenses,
a debt service reserve fund, and any contingencies. Mr. Bressler added that
interest may not be capitalized, depending on whether the bonds are sold with a
premium or discount, possibly affecting the paramount bond.
Commissioner Bergeron asked about the timeline on the Thalia Street Parking
Garage. Mr. Ruckert said that the timetable involves hiring an engineering firm
for the design, completing the design work, and the construction itself, which
could take to 2018 for its completion.
Commissioner Bergeron asked if we have revenue projections for the new
garage. Mr. Ruckert said he would have this information next month. He agreed
with Commissioner Bergeron that we will have to keep an eye on parking
revenues before we put a shovel in the ground.
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 Annual Agreements Providing
for Employee Benefits for Health, Dental, Vision, Long- Term Disability,
Accidental Death and Dismemberment, and Life Insurance Coverage.
Ms. Christian introduced and welcomed Mr. Scott DAunoy with Hub
International, the Boards employee benefits insurance broker. He provided a
brief presentation of the Boards 2016 benefits renewal summary. Mr. DAunoy
began with a recap of retiree medical plan renewals and included updates on
the demographic factors of the retiree population. He then discussed the active
employee plan. He highlighted various areas: the active medical plan large
claims summary, the active medical plan renewal history, the medical market
analysis, the ancillary benefit market summary, and the ancillary coverage
renewals. Then Mr. DAunoy recommended that the Board accept the renewal
offer from United Health Care on medical coverage at a 1.28% increase, on its
dental coverage at a 4% increase, and on its vision coverage at no change.
After discussion, the committee indicated it would refer this matter favorably to
the Board at its next regularly scheduled meeting.
4. Briefing on and Discussion of the Final Actuarial Evaluation for the Harbor
Police Employees Retirement System to Effect the Transfer into the Louisiana
State Employees Retirement System.
Mr. Ruckert briefed the committee on the final actuarial evaluation for the
Harbor Police Employees Retirement System to effect the transfer into the
Louisiana State Employees Retirement System. He said that trying to put the
Harbor Police pension under LASERS has been ongoing for the past seven
years. Mr. Ruckert stated that part of the agreement for LASERS to take over
the Harbor Police Retirement Systems pension obligations is that the Board
would have to pay the unfunded actuarial liability (UAL), which had been
estimated to be from $7,000,000 to $10,000,000. He said that the final actuarial
evaluation of the UAL has been determined to be
$10,000,000. Mr. Ruckert stated that he intends to pay off upfront
$4,000,000 to $6,000,000 of the total sum because of the high interest rate of
7.75%, which is the assumed rate that LASERS is receiving on its investments.
He said that the balance of payments due will be made over seven years.
D. Adjournment
There being no further business to come before the committee, Committee
Chairman Bergeron adjourned the meeting at 2:21 P.M.
BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF
THE PLANNING AND ENGINEERING COMMITTEE MEETING
OCTOBER 19, 2015
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 COMMITTEE CHAIRMAN
MICHAEL W. KEARNEY AT 2:22 P.M. ON MONDAY, OCTOBER 19, 2015.
COMMITTEE MEMBERS Michael W. Kearney, Committee Chairman
PRESENT: Scott H. Cooper, Member William T. Bergeron, Member Robert R.
Barkerding, Jr. Member Laney J. Chouest, Member Arnold B. Baker, Member
COMMITTEE MEMBER Gregory R. Rusovich, Member
ABSENT:
STAFF: G. LaGrange, President and Chief Executive Officer
B. Christian, Chief Operating Officer
B. Gussoni, Executive Counsel
C. Dunn, Director, Port Development
J. Ruckert, Chief Financial Officer
M. Gresham, Director of External Affairs
M. Rubino, Staff Attorney
W. Stokes, Administrative Assistant
H. Fontenot, Paralegal
GUESTS: L. Traweek, City Business
C. Balthazar, River Works
A. Determination of Quorum and Call to Order
Committee Chairman Kearney determined the existence of a quorum and
called the meeting to order at 2:22 P.M.
B. Public Comment
Committee Chairman Kearney deferred any public comment until after the
presentations.
C. Briefing and Discussion Items
Briefing on and Discussion of a Resolution Authorizing the President and
Chief Executive Officer to Purchase Three Vehicles from Lamarque Ford,
Incorporated, under Jefferson Parish Sheriffs Office Contract No. 15A1501 for
Use by the Facility Services Department.
Ms. Dunn briefed the committee on and recommended approval of a resolution
to authorize the President and Chief Executive Officer to purchase three vehicles
for $180,551 from Lamarque Ford, Incorporated, under the Jefferson Parish
Sheriffs Office Contract No. 15A1501 for the Facility Services Department.
The purchase is funded by the fiscal year 2016 capital equipment budget.
After discussion, the committee indicated it would refer this matter favorably to
the Board at its next regularly scheduled meeting.
a. Briefing on and Discussion of a Resolution Authorizing the President and
Chief Executive Officer to Enter into a Professional Services Contract with All
South Consulting Engineers, LLC, for As-Needed Cross Connection Control
Services for Fiscal Years 2016 and 2017.
Ms. Dunn briefed the committee on and recommended approval of a resolution
authorizing the President and Chief Executive Officer to enter into a contract
not to exceed $300,000 with All South Consulting Engineers, LLC, the selected
one of four consultants, for as-needed cross connection control services for
fiscal years 2016 and 2017. The contract is funded by the Boards fiscal year
2016 capital improvement program.
After discussion, the committee indicated it would refer this matter favorably to
the Board at its next regularly scheduled meeting.
b. Briefing on and Discussion of a Resolution Authorizing the President and
Chief Executive Officer to Enter into Professional Services Contracts with
Burk-Kleinpeter, Inc., ECM Consultants, Inc., Hatch Mott MacDonald, LLC,
Moffat & Nichol, Inc., and River Consulting, LLC, for As-Needed Emergency
Damage Assessment and Engineering Services.
Ms. Dunn briefed the committee on and recommended approval of a resolution
authorizing the President and Chief Executive Officer to enter into five
contracts, each not to exceed $200,000, with Burk-Kleinpeter, Inc., ECM
Consultants, Inc., Hatch Mott MacDonald, LLC, Moffat & Nichol, Inc., and
River Consulting, LLC, the top five selected from eighteen consultants, for asneeded emergency damage assessment and engineering services for fiscal years
2016 through 2018. The contracts are funded by the Boards fiscal year 2016
capital improvement program
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, Committee
Chairman Kearney adjourned the meeting at 2:26 P.M.
BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF
THE PROPERTY AND INSURANCE COMMITTEE MEETING
OCTOBER 19, 2015
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
ROBERT R. BARKERDING, JR., AT 2:27 P.M. ON
MONDAY, OCTOBER 19, 2015.
COMMITTEE MEMBERS Robert R. Barkerding, Jr., Committee Chairman
PRESENT: Scott H. Cooper, Member William T. Bergeron, Member Michael
W. Kearney, Member Laney J. Chouest, Member Arnold B. Baker, Member
COMMITTEE MEMBER Gregory R. Rusovich, Member
ABSENT:
STAFF: G. LaGrange, President and Chief Executive Officer
B. Christian, Chief Operating Officer
B. Gussoni, Executive Counsel
D. Allee, Director, Cruise & Tourism
C. Bonura, Director, Business Development
M. Gresham, Director, External Affairs
P. Zimmermann, Director, Operations
B. Ethridge, Manager, Business Development
M. Rubino, Staff Attorney
J. Cocchiara, Special Projects Consultant
W. Stokes, Administrative Assistant
H. Fontenot, Paralegal
GUESTS: L. Traweek, City Business
C. Balthazar, River Works
C. Kane, Attorney, Adams & Reese
A. Determination of Quorum and Call to Order
Committee Chairman Barkerding determined the existence of a quorum and
called the meeting to order at 2:27 P.M.
B. Public Comment
Committee Chairman Barkerding deferred any public comment until after the
presentations.
C. Briefing and Discussion Items
1. Briefing on and Discussion of a Resolution Amending the Boards FMC
Tariff, T-No. 2, to Implement Rate Increases and Update Certain Items.
Mr. Zimmermann briefed the committee on and recommended approval
of a resolution amending the Boards FMC Tariff, T-No.2, to implement
rate increases and update certain items. He stated that a tariff increase of
7.5% across the board was programmed into this years financial budget. He
mentioned that the increase would not affect the rent from terminal operations.
Mr. Zimmermann gave a comparison between the Port of New Orleans and
other Gulf Coast ports on crane usage and harbor fees. He stated that the Port
of New Orleans is in the middle of the pack compared to other Gulf ports. Mr.
Zimmermann stated that the 7.5% increases and will contribute $750,000 in
revenue to the Board in fiscal year 2016. He mentioned that 2012 was the last
time there was a tariff increase.
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 Psamathe Sands, LLC, Delinquency in Rent
Payments and Eviction.
Mr. Bonura briefed the committee on the terms of the Boards lease with
Psamathe Sands, LLC, its delinquency in rent payments and the staffs proposed
eviction of the tenant. He stated that the rent is four months delinquent totaling
$66,164. Mr. Bonura proposed a course of action to be taken with Psamathe
Sands, LLC, beginning with its eviction. He discussed the eviction process, the
security deposit which the Board will draw on to pay the rent past due, and the
prospect of a new tenant.
Commissioner Baker asked if the tenant is currently operational. Mr. Bonura
replied that there are no current operations on the lease site.
The committee indicated its concurrence with the proposed course of action.
3. Briefing on and Discussion of a Request by Alvar Industries, LLC, to Amend
the Agreement Regarding Real Estate (ARRE) and the Act of Sale for the IHNC
Property.
Committee Chairman Barkerding called this item out of order so that items 3
and 4 on the agenda were switched.
Mr. Bonura briefed the committee on a potential amendment to the ARRE
with Alvar Industries, LLC (Alvar). The ARRE requires that Alvar secure
8,100 containers for a minimum of five years and that construction of the
facility would begin on December 24, 2015, extendable to June 24, 2016, for
a construction permit delay with operations commencing on October 1, 2016,

extendable to April 1, 2017, for a construction permit delay. Mr. Bonura stated
that Alvar would like Board approval to have construction begin by March 1,
2017, (which he indicated is still within ARRE goals to commence construction),
and a buffer for possible construction delays of five to six months after April
1, 2017, to commence operations for possible construction delays. Mr. Kane
added that the delays are based on the paper streets issue and that Alvar is not
dragging its feet. He explained that the purchase of the paper streets from the
City of New Orleans will trigger the financing that will allow construction to
begin. He stated that trying to project dates is very difficult, but, if there is a real
world construction delay, Alvar wants to address it now. He indicated that Alvar
would pay the Board additional compensation of $10,000 per month for every
month of delay with an outer limit for the delay of six months.
Commissioner Barkerding expressed his concern over the proposed delay and
indicated he is not inclined to make concessions for this project again.
Commissioner Kearney asked if the property in question was the wooded
area being cleared, the leased asphalt area, and if it excludes the building. Mr.
Bonura stated that it is the thirty acres sold by the Board to Alvar including
the land in all three areas that Mr. Kearney mentioned, but Alvar owned the
building prior to the sale of the land. He mentioned that the Board has the ability
to rescind the sale and repurchase the property for the appraised value minus
the deposit if the deadlines are not met. He
said, if that option is taken by the Board, the ARRE contemplates that Alvar
would enter into a lease with the Board for the property.
Commissioner Baker asked if denying the deadline extensions would weaken
or strengthen the Boards position. Mr. Bonura stated that the Board benefits
by Alvar completing the building and would not want to send signals to Alvars
customers that the Board is not interested in pursuing the project. He stated that
the revenue generated at the container terminal by the projects 8,100 containers
is $240,000 per year, which equals $20,000 per month. Mr. Bonura said that
the revenues will still be earned (but later in time), even though the deadline is
pushed back. He suggested that the Board could split the difference with Alvar
and accept
$10,000 per month in compensation to the Board for Alvars delay in meeting
the original construction deadlines.
Commissioner Bergeron expressed his major concern about the delay being a
result of constructing a building that is twice the size of what is required by the
ARRE. Mr. Kane explained that the larger-sized building now contemplated
and the additional contracts that Alvar is pursuing are not the reason for Alvar
asking for a construction delay. Commissioner Bergeron also questioned if the
commencement of construction requirement would be satisfied by the cleanup
work which Alvar is doing now. He said he was not in favor of that being
considered as such. Mr. Bonura stated that under the ARRE none of the site
work currently being done is considered commencement of construction. He
stated that the start of the actual construction would be driving piles.
Mr. Kane further addressed the commissioners concerns regarding any
possible or potential delays of construction, the timeline of the project, permit
delays, and potential contract issues.
The commissioners ended the discussion by indicating to Mr. Bonura that he is
authorized to negotiate an amendment to the ARRE for the purposes discussed
for the Boards consideration at a future meeting.
4. Briefing on and Discussion of a Resolution Authorizing the President and
Chief Executive Officer to Enter into an Agreement with Hilton New Orleans
Riverside (Hilton) for Parking Space at Hiltons Whale Lot on Convention
Center Boulevard.
Mr. Allee briefed the committee on and recommended approval of a resolution
authorizing the President and Chief Executive Officer to enter into an agreement
with Hilton New Orleans Riverside to provide for overflow parking for Port
cruise passengers at Hiltons lot. He said this years agreement is for 250 spaces
and is a revenue-sharing agreement. Mr. Allee mentioned that, with the recent
parking rate increase per diem, it should generate $250,000 in revenue. He said
that our Julia Street parking garage is served by the Whale Lot and, in the
event that the Whale Lot is fully occupied, Hilton will make provisions to allow
additional parking in its valet section.
Mr. LaGrange added that this is relative to a long-range plan previously
discussed about building another Board garage so that revenue does not have
to be shared.
After discussion, the committee indicated it would refer this matter favorably to
the Board at its next regularly scheduled meeting.
5. Executive Session
Briefing on and Discussion of the Boards Claim against the U.S. Army, Corps
of Engineers, for the Return of Funds Escrowed for the Deep Draft Lock
Increment.
At 3:10 P.M., a motion was made by Commissioner Kearney and seconded by
Commissioner Chouest to go into executive session to allow staff to brief the
committee on and discuss the legal issues and strategies related to prospective
litigation by the Board against the U.S. Army, Corps of Engineers, for the return
of funds escrowed for the Deep Draft Lock Increment.
The motion passed unanimously, and the Board went into executive session at
that time. Mr. Cocchiara and Mr. Gussoni briefed the committee on this matter
and answered any questions raised by the commissioners.
At 3:31 P.M., a motion was made by Commissioner Cooper to end the
executive session and return to the open meeting. The motion was seconded by
Commissioner Kearney, passed unanimously, and the executive session ended
at that time.
D. Adjournment
There being no further business to come before the committee, Committee
Chairman Kearney adjourned the meeting at 3:32 P.M.
BOARD OF COMMISSIONERS PORT OF NEW ORLEANS MINUTES OF
THE EXECUTIVE COMMITTEE MEETING OCTOBER 22, 2015
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 SCOTT H. COOPER
AT 9:34 A.M. ON THURSDAY,
OCTOBER 22, 2015.
COMMITTEE MEMBERS Scott H. Cooper, Committee Chairman
PRESENT: William T. Bergeron, Member Michael W. Kearney, Member
Robert R. Barkerding, Jr., Member Laney J. Chouest, Member
Arnold B. Baker, Member
COMMITTEE MEMBER Gregory R. Rusovich, Member
ABSENT:
STAFF: G. LaGrange, President and Chief Executive Officer
B. Christian, Chief Operating Officer
B. Gussoni, Executive Counsel
D. Allee, Director, Cruise & Tourism
C. Dunn, Director, Port Development
B. Landry, Chief Commercial Officer
J. Penton, Chief Information Officer
P. Zimmermann, Director, Operations
J. Mansour, Deputy Chief Commercial Officer
M. Gresham, Director of External Affairs
A. Fant, Assistant to the Chief Operating Officer
A. Pellegrin, Manager, Environmental Services
M. Rubino, Staff Attorney
K. Frankic, Business Development
W. Stokes, Administrative Assistant
H. Fontenot, Paralegal
GUESTS: J. Allen, Manning Architects
R. Hathaway, HNTB
W. Evans, River Consultants
B. Shaw, Moffatt & Nichol
1. Determination of Quorum and Call to Order
Committee Chairman Cooper determined the existence of a quorum and called
the meeting to order at 9:34 A.M.
2. Public Comment
Chairman Cooper called for public comment, but there was none.
3. Chairmans Comments
Chairman Cooper and the other commissioners wished Mr. LaGrange a happy
birthday.
4. President and Chief Executive Officers Comments
Commissioner Kearney commented that he attended a Lunch and Learn
sponsored by the Boards community outreach program with guests who are
residents of the retirement home, Lambeth House. He said that Mr. Tucker
Thomas, who is a lawyer, complimented Board employee Mr. Paul Matthews
on his presentation at this event.
Mr. LaGrange stated that he received an email from Mr. Arnie Fielkow
congratulating the Port on an article published in NewOrleans.com concerning
the future of the Port of New Orleans. Mr. LaGrange commented that the Port of
New Orleans has appeared in numerous top ten lists across America.
5. Briefing and Discussion Items

LEGALS

LEGALS

LEGALS

A. Container Terminal Operations Update.

Mr. Zimmermann updated the committee on container terminal operations. He
stated that the intermodal yard project is on schedule and that the rubber tire
gantry cranes are arriving at the end of November. He stated that
congestion has been minimal for the past several weeks compared to several
months ago. He commented, however, that reliance on technology can cause
problems as was the case today because NOTs AT&T service and its terminal
operations support system are both currently down, causing heavy congestion
at the gate.
Mr. Zimmermann mentioned that he met with Ports Americas chief information
officer and he indicated that the joint gate is one of their highest priorities and
they want to move forward with it. Mr. Zimmermann said that the CIO could
not say when it would begin.
Mr. Zimmermann next addressed crane safety issues, stating that his main
objective over the past few years has been productivity and crane down time.
Productivity has been really good compared to other ports and down time has
been exceptionally good compared to industry standards. Mr. Zimmermann
said that, with the increase in volumes, there was a lot of overtime, resulting in
employees working twelve- to sixteen-hour shifts, which have led to potential
safety issues. He stated that the department is aggressively addressing the issues
and has five open positions to add some head count to the container group. He
mentioned that his objective is to maintain productivity and zero down time,
but also to decrease future overtime, to make sure that no one works more than
sixteen hours per shift, and eventually no one works more than twelve hours
per shift. Mr. Zimmermann reiterated that the department recognizes that these
are potential safety issues and that there is not anything more important than
addressing a safety issue. He stated that the department is looking into getting
a consultant on the safety side and talking with other ports to find out how they
man their container cranes and crews. Mr. Zimmermann said that he would like
to revisit the committee in December to give another update.
Mr. LaGrange added that the Port has come up with a three-prong approach
that involves productivity, decreases overtime hours, and enhances safety and
productivity.
Commissioner Chouest had a followup point on the congestion situation. He
asked if the Boards new CIO had weighed in on the gate congestion issue
because he is not sure that the latest technologies have been implemented yet
and said he is looking forward to getting a report from him.
On the issue of the cranes, Commissioner Chouest asked if overtime hours are
necessary or required and if it were budgeted. Mr. Zimmermann stated that it is
a function of how many man hours are required to do everything necessary. He
said after maintenance, preventive maintenance, and capital projects are added,
more man hours are needed than straight time man hours are available, given
the staff level. Mr. Zimmermann said that the only way to accomplish objectives
is to work overtime and to decrease it in a rational way. Commissioner Chouest
stated that it is hard for him to see why overtime
marketing job as well as he has been, the Port is going to need additional crane
hours.
Mr. Bergeron said he prefers to keep all options open before hiring six new
employees and still face possible overtime. He suggested contracting services
out and privatizing the cranes. Mr. Zimmermann stated that there was talk over
the years about privatizing the cranes, but management decided to keep the
function internal. Commissioner Bergeron stated that, at the time of the budget
approval, he was not aware of the six new hires and their cost when he voted on
that budget with those numbers included in it. Mr. Bergeron stated that, when
he had an issue with a professional services contract last year, he questioned
this very thing and asked how many more of the same types of issues existed
in the organization. He said that he was criticized by Board members for trying
to micromanage at a Board level. He mentioned that he detected the issues and
the problems more than a year ago, and now they are facing the Board again.
Commissioner Bergeron stated that he wants to make sure that members do
not jump into any decisions and that he intends to find out what else is looming
in the organization once he becomes chairman. He mentioned that he is not
pleased with the situation and is embarrassed by it.
Commissioner Baker expressed his concerns regarding safety and asked if there
were other areas where excessive overtime is occurring. Mr. LaGrange said that
this particular instance is an exception. Mr. Zimmermann stated that the dredge
periodically has to work overtime on weekends.
Commissioner Barkerding asked if there was a civil service prohibition against
hiring temporary employees. Mr. Gussoni stated that civil service will allow
hiring temporary workers in a situation when workers are needed and a public
body is unable to get them. He mentioned that the process generally takes 60
to 90 days. Mr. Zimmermann stated that the department is on target for hiring
the new positions by the end of the year. Ms. Christian added that civil service
allows temps to be used only for so many days and hours.
Commissioner Bergeron asked about employees pensions and the contribution
that is being made towards that. Mr. Gussoni stated that pensions are based on
an employees base pay and that the overtime does not count towards retirement
benefits calculations.
Mr. LaGrange said that the bottom line is to control costs without losing the
productivity in the increased enhancement and growth that hopefully is around
the corner.
Commissioner Bergeron asked how many employees are out on an eight-hour
shift when the cranes are in operation. Mr. Zimmermann stated that it varies
and that there is a formula. He said that it is difficult to plan a typical eighthour shift for the week because of issues that arise. Commissioner Bergeron
commented on the flexibility when trying to interface with private industry and
said that it puts you in a non-efficient position. He reiterated his concerns on
hiring permanent employees to work flexible operations.
Commissioner Chouest suggested that there should be goals for overtime
tracking.
Commissioner Cooper said that everything that was mentioned was all good
points and not to take away from the jobs that are already being done, but goals
should be set.
Mr. Zimmermann concluded his update with the reefer racks. He said that the
project is nearing completion and will be turned over to New Orleans Terminal
for use.
B. Master Plan Update.
Ms. Christian asked Ms. Frankic to update the committee on the master plan.
Ms. Frankic said that the RFP was released on August 28th and emailed to
approximately two hundred candidates. She said that October 9th was the
deadline and she received three submissions which were forwarded to the
consultant evaluation committee. The interviews will be conducted on
November 9th and awarding of the contract will take place on November 19th.
C. Poland Avenue Cruise Terminal Update.
Mr. Allee introduced and welcomed Mr. Ben Allen of Manning Architects, who
has been involved in the Poland Avenue project for some time. Ms. Dunn gave an
update on the Poland Avenue Cruise Terminal. She gave a comparison between
the full terminal project and the alternate concept project and explained the
projected schedule.
Commissioner Baker asked about the timeline for completion of the construction
of the terminal. Ms. Dunn said that the timeline includes the building demolition,

the bank stabilization, substructure repairs, the complete terminal buildout, and
foundation work. She stated that it is an aggressive schedule set for an October,
2017, completion in order to be ready for the cruise season.
Commissioner Baker asked what some of the potential challenges with the
schedule were. Ms. Dunn said it would be towards the end when working with
U.S. Customs. Mr. Allee mentioned, however, that U.S. Customs has been
involved in the process all along and that it is being very cooperative and helpful.
Ms. Dunn stated thereafter that the biggest challenge is the river level. She said
that, if the extended season has high river levels, it will delay the project.
Commissioner Bergeron asked about the process of bank stabilization. Mr.
Allen said that it involves repairs of the wharf substructure, bank reshaping,
new terminal building foundation work, and building a relieving platform along
the bank side to increase the safety factor of the portion that the building will
be constructed on.
Commissioner Baker asked if the City of New Orleans was going to do
development work around the terminal project. Mr. Allee said that the old naval
facility has three buildings, and the middle building is being considered for a
1,000-space parking garage. He stated the strategy for surface parking is no less
than 500 spaces and an overflow. He stated that this would work for the type of
vessel we are looking at now. We need a parking strategy in order to be able to
sell this to cruise lines.
Commissioner Bergeron mentioned that he met with Ms. Lisa Suarez, head of
the Faubourg Marigny Improvement Association. She stated that she and the
residents are deeply concerned about the potential impacts on the neighborhood
from traffic congestion and other issues. Mr. Allee mentioned that he is
embarking on the community outreach program to address those particular
traffic issues.
D. Report on Trip to Asia and Europe.
Mr. Landry reported on his trip to Asia and Europe with Ms. Mansour, Mr.
LaGrange, and Commissioner Kearney. He first began by saying that both Ports
America and New Orleans Terminal have signed an agreement on working
together on the gates to make them more flexible. He said he received no report
from the carriers this time about truck-queuing problems and that things are
much better because of the new system. Mr. Landry stated that two major
carriers have told him that, when more ships come to our port, we will need
more 100-foot gantry cranes for 8,500-TEU vessels, and that the current small
cranes are inadequate to handle the business. Mr. Landry said on a positive
note, a carrier shared cost information with him which revealed that New
Orleans has one of the lowest load and discharge rates of any port in the United
States. Overall, he said that he received very good information from carriers on
breakbulk and containers and that they are very optimistic about the volumes
that are going to be transiting the Port of New Orleans in the near future.
E. President and CEO Updates (Recent Meetings and Upcoming Events)
1. Thursday, Oct. 22, 7 P.M., Maritime Person of the Year celebration honoring
Carnival CEO Arnold Donald, Hilton Hotel
2. Tuesday, Oct. 27, 11 A.M., visit from Arnold Donald, CEO, Carnival, plaque
exchange and fireboat tour at 3 P.M. with invited guests.
Mr. Allee stated that there may be approximately a dozen visitors that day, a
Holland America vessel in on a port call, and a plaque exchange and lunch.
3. Thursday, Oct. 29, 11:30 A.M.2 P.M., Righting the Regulatory Ship,
U.S. Chamber, Port of New Orleans
Commissioner Baker stated that he was the force behind having New Orleans
selected for this.
4. Monday, Nov. 2, and Wednesday, Nov. 4, AAPA Annual Convention
5. Tuesday, Nov. 10, noon, State of the Port Address
6. Thursday, Nov. 12, 2 P.M., Cong. Graves & Rokita boat tour
7. Thursday, Nov. 12, 6 P.M., WYES Reception and Screening
8. Friday, Nov. 13, 10 A.M., Mandatory Ethics Training
9. Saturday, Nov. 21, 7 P.M., Azucar Ball, Hyatt Hotel
10. Wednesday, Dec. 2, National Coast Guard Museum Association Reception,
Port of New Orleans
11. Wednesday, Nov. 11-13, WCI Symposium, Omni Royal Hotel
12. Thursday, Dec. 10, 11:30 A.M., Holiday Appreciation Lunch for Consular
Corps
13. Friday, Dec. 11, 11 A.M., Employee Service Awards
14. Friday, Dec., 18, 11 A.M., Chamber Annual Meeting with Louisianas
Governor-Elect
15. Friday, Dec. 18, 7 P.M., Holiday Customer Appreciation Night
A. Report on Cargo Activity.
Mr. Landry reported on cargo activity and stated that container volume dropped
from August because of export cargo being impacted by the higher value of
the dollar, but he expects it to pick up by the end of the year. He stated that the
container side for the most recent twelve months is still ahead by 13% of where
it was last year at this time. Breakbulk is still ahead by 30% of where it was last
year at this time.
B. Report on Vessel Calls.
Mr. LaGrange reported vessel calls for the month of September were up. He
said that there were 449 vessels versus 431 last September. Year to date in 2015,
there have been 3,985 compared to last years 3,873.
2. Other Business
None reported.
3. Adjournment
There being no further business to come before the committee, Committee
Chairman Cooper adjourned the meeting at 10:46 A.M.
BOARD OF COMMISSIONERS PORT OF NEW ORLEANS
MINUTES OF
THE REGULAR MEETING OF
OCTOBER 22, 2015
MEETING NO. 4, FISCAL YEAR 2016, A REGULAR MEETING 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 CHAIRMAN SCOTT H. COOPER AT 11:05
A.M. ON THURSDAY, OCTOBER 22, 2015.
MEMBERS PRESENT: Scott H. Cooper, Member, Chairman
William T. Bergeron, Vice-Chairman Michael W. Kearney, Secretary-Treasurer
Robert R. Barkerding, Jr., Member
Laney J. Chouest, Member Arnold B. Baker, Member
MEMBER ABSENT: Gregory R. Rusovich, Member
STAFF: G. LaGrange, President and Chief Executive Officer
B. Christian, Chief Operating Officer
B. Gussoni, Executive Counsel
D. Allee, Director, Cruise and Tourism
C. Bonura, Director, Business Development
C. Dunn, Director, Port Development
B. Landry, Chief Commercial Officer
E. Pansano, Director, Internal Audit
J. Ruckert, Chief Financial Officer
C. Swain, Director, Administration
P. Zimmermann, Director, Operations
A. Fant, Executive Assistant to the Chief Operating Officer

M. Gresham, Director of External Affairs

G. Hager, Director, Human Resources
R. Aragon Dolese, Manager, Communications
B. Ethridge, Manager, Business Development
K. Frankic, Manager, Real Estate Development
A. Pellegrin, Manager, Environmental Services
J. Lynch, General Counsel
S. Ordoyne, Special Assistant
M. Rubino, Staff Attorney
W. Stokes, Administrative Assistant
H. Fontenot, Paralegal
B. Cromartie, Engineering
D. Austin, Engineering
A. Hanks, Cruise & Tourism
S. Reames, Cruise & Tourism
A. Brandenburg, Internal Audit
R. Munsch, Administrative Assistant
A. Taylor, Services
J. Scheck, Communications
GUESTS: L. Traweek, City Business
C. Balthazar, River Works
R. Schaefer, New Orleans Terminal
R. Wade, GHD
B. Rizza, Landis Construction
T. Wells, W.S. Nelson
C. Donner, Jones Lang LaSalle
G. Davis, ILA #3000
C. Hammond, ILA #3000
D. Magee, Sr., ILA #3000
R. Thompson, The Advocate
R. Rung, GLF
W. Evans, River Consultants
L. Jemison & Partners, Inc.
I. Determination of Quorum and Call to Order
Chairman Cooper determined the presence of a quorum and called the meeting
to order at 11:05 A.M.
II. Pledge of Allegiance
Chairman Cooper asked Commissioner Barkerding to lead the Board and the
audience in saying the Pledge of Allegiance, and he did so.
III. Approval of Minutes of September, 2015 Meetings
On motion duly made by Commissioner Cooper and seconded by Commissioner
Chouest, the Board unanimously approved the minutes of its public meetings of
September, 2015, as previously circulated.
F.
Consider Approval of a Resolution Authorizing the Issuance of Not Exceeding
$45,000,000 of Board Commissioners of the Port of New Orleans Port Facility
Refunding Revenue Bonds for the Purpose of Construction of the Thalia Street
Parking Garage and Completion of the Poland Avenue Cruise Terminal and
Related Construction through a Public Offering of Said Bonds and Providing
for Other Matters with Respect to the Issuance of These Bonds.
Mr. Ruckert recommended approval of a resolution authorizing the issuance
of not exceeding $45,000,000 of Board of Commissioners of the Port of New
Orleans port facility refunding revenue bonds in one or more series. This
resolution is to declare the Boards intention to reimburse itself for capital
improvement costs out of the proceeds of the port facility revenue bonds.
Commissioner Bergeron advised the Board that the Budget Committee had met
and reviewed the resolution with staff, and he moved for its approval.
Commissioner Barkerding seconded the motion. MOTION CARRIED
UNANIMOUSLY.
G.
Consider Approval of a Resolution Authorizing the President and Chief
Executive Officer to Enter into an Agreement with Hilton New Orleans
Riversid e (Hilton) f or Parkin g Space at Hiltons Whale Lot on Convention
Center Boulevard.
Mr. Allee recommended approval of a resolution authorizing the President and
Chief Executive Officer to enter into an agreement with Hilton New Orleans
Riverside for parking space at Hiltons Whale Lot on Convention Center
Boulevard.
Commissioner Barkerding advised the Board that the Property and Insurance
Committee had met and reviewed the resolution with staff, and he moved for its
approval. Commissioner Bergeron seconded the motion. MOTION CARRIED
UNANIMOUSLY.
VII.
Report by the President and Chief Executive Officer
Before Mr. LaGrange began his report, Chairman Cooper wished him a very
happy birthday.
Mr. LaGrange spoke about a good deed by Ms. Amelia Pellegrin, manager of
the Boards Environmental Services Department, who found an injured owl in
one of New Orleans Terminals rail cars. She had the owl transferred to the New
Orleans Institute for proper care.
Mr. LaGrange introduced Mr. Paul Matthews of the Boards community
outreach program along with students from Country Day and Ben Franklin
Schools. Mr. Matthews introduced Ms. Vanessa Gentinetta, Director of the
New Orleans Scholars Program. She explained that over the past four weeks,
students from both schools have engaged the Port staff to understand regional
economic development. The students attended the Board meeting this morning,
and each gave a brief presentation of what he learned and also offered ideas to
the Board on various ways it could improve its visibility in the local community
and how to expand the Boards future potential while maintaining good
environmental stewardship.
Mr. LaGrange read a thank you letter from Ms. Dianne Perrilloux of the Jefferson
Parish East Bank Library. She expressed her gratitude and appreciation to
Harbor Police Chief Hecker for taking time to speak at the librarys writers
forum.
Mr. LaGrange took a moment to acknowledge and congratulate Ms. Destiny
Hinson of the Boards Human Resources Department for passing another CEBS
examination.
Mr. LaGrange read a letter from Mr. Arnie Fielkow, President and Chief
Executive Officer of the National Basketball Retired Players Association. He
said Mr. Fielkow stated that he had read the NewOrleans.com article about the
Ports growth and what lies ahead and expressed how lucky the Port is to have
such dynamic leadership.
VIII. Old Business
None reported.
IX. New Business
None reported.
X. Adjournment
There being no further business to come before the Board, the meeting was
adjourned at 11:28 A.M.
NEXT MEETING:
11:00 A.M., Thursday, November 19, 2015