2006.05.23.Board Minutes See Pg6bottom

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MINUTES OF THE MONTHLY BOARD MEETING

OF

THE BOARD OF COMMISSIONERS

OF THE ORLEANS LEVEE DISTRICT

MAY 23, 2006



i



MAY 23, 2006

ACTION PAGE

PUBLIC COMMENTS......................................................................................... 1

ROLL CALL. ...................................................................................................... 4

PLEDGE OF ALLEGIANCE. .............................................................................. 5

OPENING REMARKS AND PRESENTATIONS:................................................ 5

APPROVAL OF MINUTES:

Approval of minutes of Regular Monthly Board Meeting held onApril 19, 2006. .................................................................................................... 7

EXECUTIVE SESSION:

1. Haspel & Davis Milling and Planting Co., Ltd., et al. v. OLB,25th JDC 31-357. ........................................................................................... 7

2. U.S. Army Corps of Engineers projects and cooperative agreements........... 7

3. Benoit v. Bd of Commissioners, USDC EDLA 06-cv-2402 ............................ 7

4. O.L.D. v. M/V Belle of Orleans, USDC SDAL 2006-0017-C .......................... 7

5. O.L.D. v. Belle of Orleans, LLC, CDC 2006-283 “L” (6)................................. 7

MOTIONS:

*A Resolution authorizing the execution of documents necessary toproceed with the FEMA Community Disaster Loan (low rate, simpleinterest loan, dedicated to operating expenses, first payment for which isnot due for five years), including the execution of a Promissory Note toFEMA and pledging of collateral for the payment of said loan, which hasbeen approved for $3.346 million (not to exceed $10 million). ........................... 8

*To retain the services of Essilor Laboratories for the period commencingJuly 1, 2006 and ending on June 30, 2007, to provide a comprehensiveprescriptive safety eyewear program for employees, with discounts offeredto dependents of employees, with funding not to exceed $8,000 provided

in the FY’07 Budget, and to authorize the President or Director of RealEstate, Recreational and Non-Flood Assets to execute any and alldocuments necessary to accomplish the above. ................................................ 9

*Denotes approval



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MAY 23, 2006

ACTION PAGE

*To retain the services of Internal Medicine Associates for a period of oneyear from July 1, 2006 through June 30, 2007, for pre-employmentphysicals and other medical services for employees to include back-screens, vaccinations, emergency care, and back-to-work physicals, at acost not to exceed $2,500, with funding provided in the FY’07 ProfessionalServices Budget, and to authorize the President or Director of Real Estate,

Recreational and Non-Flood Assets to execute any and all documentsnecessary to accomplish the above....................................................................10

*To retain the testing services of Morris and McDaniel, Inc. to provide 16Personality Factor testing for all police personnel for a period of one year,from July 1, 2006 through June 30, 2007, at a cost not to exceed $1,250,with funding provided in the FY’07 Professional Services Budget, and toauthorize the President or Director of Real Estate, Recreational and Non-Flood Assets to execute any and all documents necessary to accomplishthe above............................................................................................................11

*To renew the counseling services of Mark S. Roloff and C. Philip Bein fora period of one year, from July 1, 2006 through June 30, 2007, to providean employee assistance program for employees and dependents, for anamount not to exceed $5,000, with funding provided in the FY’07Professional Services Budget, and to authorize the President or Directorof Real Estate, Recreational and Non-Flood Assets to sign any and alldocuments necessary to accomplish the above. ................................................ 13

*To renew the contract with BFM to provide survey services on an asneeded basis, for a period of one year, from July 1, 2006 to June 30,2007, with funding in the amount of $2,500 designated in the FY’07

General Fund for said work; to authorize the President or Director ofHurricane and Flood Protection to sign any and all documents required toaccomplish the above; and to provide that prior to the authorization of anySupplemental Agreement, the project will be brought to the Planning,Engineering and Construction Committee for informational purposes................14

*To renew the contract with Shaw Coastal, Inc. to provide professionalservices, on an as needed basis, that are required to fulfill rules andregulations of LADEQ regarding environmental matters, for a period ofone year, from July 1, 2006 to June 30, 2007, for an amount not to exceed$10,000 with funding established in the FY’07 Major Maintenance and

Capital Improvement Fund; to authorize the President or Director ofHurricane and Flood Protection to sign any and all documents required toaccomplish the above; and to provide that prior to the authorization of anySupplemental Agreement, the project be brought to the Planning,Engineering and Construction Committee for informational purposes................15

*Denotes approval



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MAY 23, 2006

ACTION PAGE

*To approve the Orleans Levee District’s “Emergency OperationsProcedure” (EOP) Manual, with an effective date of June 1, 2006, and toauthorize all actions under the EOP and La. R.S. 38:319; and to authorizethe President or Director of Hurricane and Flood Protection to sign anyand all documents necessary to carry out the above..........................................16

*To authorize and approve the continuation of the engagement of CorneliaUllmann to December 31, 2006 to provide general legal services as setforth in this Resolution; to provide that said engagement be submitted tothe Attorney General’s office for approval; and to authorize the Presidentor appropriate Director to sign any and all documents necessary to carryout the above...................................................................................................... 17

*To authorize the Eagan Insurance Agency to procure primary Propertyand Business Computer (EDP) insurance coverage for an additional twomonth period commencing on June 1, 2006, and expiring on August 1,2006, at a approximate cost of $21,672 from Hartford, with funds

contained in the FY 2006 and FY 2007 budgets, and in accordance withprovisions set forth in this Resolution; and to authorize the President orDirector of Real Estate, Recreational and Non-Flood Assets to sign anyand all documents necessary to accomplish the above......................................20

*To authorize the cancellation of leases in the Lakefront Airport TerminalBuilding effective September 1, 2005, for the mutual convenience of theparties, and the cancellation of dumpster service charges for the AirportRestaurant effective September 1, 2005; and to authorize the President,Director of Real Estate, Recreational and Non-flood Assets or the Directorof Aviation to sign any and all documents necessary to carry out the

above..................................................................................................................25

*A resolution authorizing the Orleans Levee District’s participation in theState of Louisiana’s Gulf Tax Credit Bonds Program through the issuanceof not exceeding $27,000,000 bonds or notes or otherwise participatingtherein; making application to the State Bond Commission; and providingfor other matters in connection therewith............................................................27

*Denotes approval

COMMITTEE REPORTS:

STANDING COMMITTEES:

1. Ethics and Policy Committee ........................................................................32

2. Executive Committee ....................................................................................32

3. Finance Committee and Planning, Engineering andConstruction Committee ................................................................................32



iv



MAY 23, 2006

ACTION PAGE

SPECIAL COMMITTEES:

1. Legal Committee ..........................................................................................32

PUBLIC COMMENTS.........................................................................................32

ADJOURNMENT ...............................................................................................32



1



MINUTES OF MONTHLY BOARD MEETING

MAY 23, 2006

__________________________________________________________

The monthly meeting of the Board of Commissioners of the Orleans

Levee District was held on Tuesday, May 23, 2006, in the Second Floor Hall of

the Lake Vista Community Center, 6500 Spanish Fort Boulevard, New Orleans,

Louisiana, after due legal notice of the meeting was sent to each Board member,

the news media, and a copy of the agenda was posted.

At 3:40 p.m., President McCrossen advised, since four of the

Commissioners were present and a fifth Commissioner was in route to the

meeting, Public Comments would be received until such time as a quorum was

established.

I. PUBLIC COMMENTS:

Mr. Al Fourroux, a boathouse tenant on South Roadway, explained

he would like to start a dialogue between the boathouse tenants and the Board

for the purchase of the water bottoms. He felt this could be a win-win situation,

as the District currently has administrative costs for rent collection and insurance

administration, in addition to legal fees.

President McCrossen commented the Board would like to do what

is best for New Orleans. He added, he did not know whether this proposal would

be legal, however, Mr. Fourroux could submit his proposal in writing for review.

Ms. Cornelia Ullmann, Interim Counsel, advised a portion of these

leases are currently in litigation; therefore, it would be inappropriate to comment

while this litigation is on-going.

Mr. McCrossen added, it would be inappropriate discuss any type

of settlement because of the on-going litigation.

Mr. Fourroux indicated he did not feel this was a settlement, and

felt confident that a good figure, equitable to both parties could be reached. He



2

further suggested a group could be put together to purchase the water bottoms of

those tenants who are not willing to purchase them.

President McCrossen thanked Mr. Fourroux for coming and

requested that he put his proposal in writing for review.

Ms. Margaret Schuber, a 55 year resident of Lake Terrace,

explained her home is located on Frankfort Street, and Bell South has placed a

facility, she thought with the approval of the Orleans Levee District, in the corner

of Killdeer Park, which obstructs her view of the park. Originally, it would have

prevented her family’s access to the park. She stated in April neither she, nor

Mr. Hassinger, the President of the Lake Terrace Property Association, knew

about this facility, and when construction was started she inquired about it and

found out what was happening. She felt there were many areas where this

facility could be placed where it would not obstruct anyone’s view, and asked that

the Orleans Levee District take another look at this matter and determine

whether it must go in the corner where it presently will be located. She added,

the facility was craned in yesterday.

Mr. Stevan Spencer presented photographs of the facility.

Mr. Schuber further explained the facility was moved three feet in

order for her to have access to the park, however, her view is still obstructed, and

she had suggestions for alternate locations. She stated she was concerned

about the process, as the Orleans Levee District, Bell South and the property

owners involved did not have an opportunity to dialog and work out a better

location. Also, representatives on the site from Bell South, and Mr. Keith

Hitchens of Bell South, seemed unaware that this was an issue and were under

the impression that everything was resolved.

President McCrossen commented this matter was brought up in

October and discussions were held with Bell South. He stated the District would

look into this situation to see whether there are any alternatives.



3

Mr. Spencer indicated his understanding was this was the general

size of the units Bell South would be utilizing. Also, he spoke to Mr. Hitchens

yesterday and thought Bell South was still looking at sites.

Ms. Schuber added, she also spoke to Mr. Hitchens who advised

he had no knowledge that the facility would be placed at that actual location.

Mr. Spencer explained on January 18, 2006, a resolution was

adopted by the Board for a 30-ft. by 30-ft. area in Boreas Park, with the exact site

to be determined. A survey drawing was attached to the aerial with the final

location placed so as not to interfere with the use of the park.

Commissioner Foley commented this matter was placed on a public

agenda and approved at a public meeting. Additionally, about five weeks ago a

letter was received from the Lake Terrace Property Owners Association asking

the Orleans Levee District take action to prohibit the construction of the facility in

the park, and at that point an agreement had been executed with the utility

company; however, there was an effort made to jointly look at the problem. The

President of the Lake Terrace Association did not wish the facility built in the

park, however, if it had to be in the park, requested that it be moved closer to

Killdeer. He further explained problems encountered in that no one wanted the

facility behind their home. He felt the Board gave Bell South a contractual right

to build their facility somewhere in that park, with a resolution which was adopted

at a public meeting.

Ms. Schuber felt the facility could be built, fenced and landscaped

in the park area.

President McCrossen reiterated the District would look into the

situation and contact Ms. Schuber.

President McCrossen asked whether there were any further public

comments.

Ms. Gretchen Dyer stated she has been a resident of Orleans

Parish for the last 57 years, and it has come to her attention that on the bids that

were recently taken on the Franklin Facility there is some inappropriate action in



4

regards to the public bid law and some money that should be returned to the

Orleans Levee District, and she would like that investigated.

President McCrossen commented, surely, and asked Ms. Dyer had

she reported this matter.

Ms. Dyer responded she reported this to Mr. Gillen, and she has

tried to speak to Mr. Spencer, but has not had a return phone call. She stated

she was not present today in any other capacity but as a citizen of the City of

New Orleans, and that she pays taxes here and wants business done properly.

President McCrossen asked Ms. Dyer whether there were any

other comments she would like to make, other than for the Board to investigate

this matter.

Ms. Dyer replied, she would like to have this investigated and have

a resolution given back, otherwise she would have to take this to others.

Commissioner Foley asked Ms. Dyer which contract was she

talking about, and President McCrossen asked for specific information.

Ms. Dyer replied, the Franklin Facility Warehouse. She stated it

was brought to her attention that one of the contractors was given some different

benefits than other contractors that bid the project that are local contractors, and

that this money was going to be kept in their pockets and not returned to the

District.

President McCrossen asked Ms. Dyer whether Mr. Capo had her

contact information, and Mr. Capo indicated he did have that information.

President McCrossen thanked Ms. Dyer for coming to the meeting.

With the arrival of Commissioner Saizan, the roll was called and a

quorum of the Commissioners was established, and the meeting called to order

by President McCrossen at 4:00 p.m.

PRESENT:

The Honorable Michael P. McCrossen, PresidentThe Honorable Allen H. Borne, Jr., Vice PresidentThe Honorable Dan S. Foley, CommissionerThe Honorable Eugene J. Green, Jr., Commissioner

The Honorable Darrel J. Saizan, Jr., Commissioner



5

ABSENT:

The Honorable Brenda Hatfield, CommissionerThe Honorable David R. Voelker, CommissionerThe Honorable Cynthia Willard-Lewis, Commissioner

ALSO PRESENT:

Al Fourroux, boathouse tenantAddie Fanguy, Million AirTom LongNicole May, Lake OaksGretchen Dyer, Orleans Parish Resident

Sharon E. Betpouey, boathouse tenantAnn Duffy, Lake Oaks Neighborhood AssociationMargaret Schuber, Lake TerraceRobert DrougilDenise Fitzgerald, AG’s OfficeTim Avegno, Eagan Insurance Agency

OLD STAFF & CONSULTANTS PRESENT:

Stevan Spencer, Director Hurricane and Flood ProtectionLouis J. Capo, Director Real Estate, Recreational and Non-Flood Assets

Cornelia Ullmann, Interim CounselGlenda Boudreaux, Executive DepartmentJarrell Godfrey, Godfrey FirmDawn Wagener, Finance DepartmentGerry Gillen, Engineering DepartmentJim Bollinger, Internal AuditorAlbert Pappalardo, Pappalardo ConsultantsCynthia Taylor, Human ResourcesCarol Kiefer, Auxiliary ServicesJoel Jenkinson, Lakefront AirportWalter Baudier, Design Engineering, Inc.

Robert Maureau, South Shore HarborRick Loggins, Information TechnologyMary Herbert, ComptrollerJohn Holtgreve, Design Engineering, Inc.Wilma Heaton, Executive Department

Commissioner Green led in the pledge of allegiance.

II. OPENING REMARKS AND PRESENTATIONS:

President McCrossen asked to pause a moment in recognition of

Police Officer Andre Gonzales, Jr., a New Orleans Police Department Officer

who was wounded during the course of duty.

Mr. Bob Maureau, Senior Marina Manager, advised Officer

Gonzales is the son of South Shore Harbor Assistant Marina Director Andre

Gonzales, Sr., a dedicated Orleans Levee District employee. Officer Gonzales

has been a member of the New Orleans Police Department for several years,



6

and was badly wounded during a routine traffic stop. Mr. Maureau reported

Officer Gonzales was at that time in critical condition and he would keep the

Board informed on his condition.

President McCrossen asked Mr. Maureau to express the Board’s

best wishes to Officer Gonzales and his family.

President McCrossen then read an opening statement:

Now that the US Army Corps of Engineers has revealed that the

outfall canal I-wall breaches were the result of the Corps’ design, the

importance of a flood control structure (gate) at the Lakefront, on the 17th

Street, Orleans and London Avenue Canals, in protecting the areas of

New Orleans they drain (and portions of Jefferson Parish) are a significant

improvement. The gates will stop the storm surge up to the grade and

prevent the waters from entering the canals.

The Corps will decide when to close the gates and the Sewerage

and Water Board will address any drainage issues.

The levees that were over-topped in New Orleans East are being repaired

to required project heights (pre-Katrina) by the Corps of Engineers under

Task Force Guardian to be stronger and higher. However, they may be

susceptible to surges from the Mississippi River-Gulf Outlet and Lake

Borgne.

There is additional work being done in Algiers to protect the west

bank of Orleans Parish. The levees and floodwalls along both sides of the

Mississippi River are all in excellent shape. The Orleans Levee District

has always been vigilant of self inspecting the 129 miles of levees and

floodwalls under its jurisdiction and adhering to federal guidelines. The

State and the Department of Transportation and Development have

developed and revised a version of the federal guidelines for local levee

districts to use. The Orleans Levee District will start these inspections in

May along with the DOTD representatives.



7

In Economics we say – Money begets Money. In hurricane

protection design we say -- Money begets Safety.

Therefore, I am recommending the establishing of a National Commission

to oversee water management for the entire country, including hurricane

protection and coastal restoration. This commission should make a list of

recommendations that Congress can choose from.

We cannot allow the political art of compromise to interfere with

public safety.

With the flooding that has occurred all over the country in the last

90 days, this is a national problem that deserves a national solution.

The professionals agree on what must be done. It’s always about how to

fund the projects.

III. APPROVAL OF MINUTES:

There were no corrections, additions or deletions to the minutes of

the Regular Monthly Board Meeting held on April 19, 2006; therefore, the

minutes of the Regular Monthly Board Meeting held on April 19, 2006, were

approved as submitted.

IV. COMMUNICATIONS:

None.

V. EXECUTIVE SESSION:

1. Haspel & Davis Milling and Planting Co., Ltd., et al. v. OLB,25th JDC 31-357.

2. U.S. Army Corps of Engineers projects and cooperative agreements.

3. Benoit v. Bd of Commissioners, USDC EDLA 06-cv-2402.

4. O.L.D. v. M/V Belle of Orleans, USDC SDAL 2006-0017-C;

5. O.L.D. v. Belle of Orleans, LLC, CDC 2006-283 “L” (6);

Commissioner Saizan offered a motion to go into Executive

Session to discuss the items on the agenda, which was seconded by

Commissioner Borne, and unanimously approved by a roll call vote.

The Board convened in Executive Session at 4:08 p.m.



8

The Board reconvened in regular session at 5:45 p.m., and the

meeting was called back to order.

Ms. Cornelia Ullmann, Interim Counsel, advised the Board met in

Executive Session and no action was taken.

VI. MOTIONS:

A. A Resolution authorizing the execution of documents necessary toproceed with the FEMA Community Disaster Loan (low rate, simpleinterest loan, dedicated to operating expenses, first payment for which isnot due for five years), including the execution of a Promissory Note to

FEMA and pledging of collateral for the payment of said loan, which hasbeen approved for $3.346 million (not to exceed $10 million).

Mr. Jarrell Godfrey, Bond Counsel, explained this is in follow up to

a resolution originally placed on the Board’s agenda in December, 2005, which

authorized proceeding with the administrative process to authorize this loan, but

not to execute the loan without coming back to the Board. FEMA has given its

approval. The resolution presented is in the prescribed FEMA form, and

authorization is requested for the Board’s representatives, the President and

Secretary, to execute the documents and give the required information.

Commissioner Foley offered a motion to amend the resolution, as

follows, “The following language shall be considered an amendment to the

resolution and shall be incorporated into the minutes of the Orleans Levee

District (O.L.D.), but shall not be incorporated into the formal resolution submitted

to FEMA, as that is unnecessary: No expenditures shall be made by the O.L.D.

with the expectation that it shall obtain reimbursement from the FEMA funds

borrowed. Each and every drawdown submitted by the agency for

reimbursement of an expenditure made shall not be submitted to FEMA except

by prior written Board approval.”

Commissioner Green seconded the motion to amend the

resolution, and asked whether the amendment would present a problem with

FEMA.

Mr. Godfrey responded, FEMA would probably not have a problem

with the amendment, as long as it is an amendment in the minutes of the Board



9

and FEMA is made aware of it, but it is not incorporated into FEMA’s standard

form. Mr. Godfrey added, his understanding of the amendment is that the staff

cannot make a draw on the FEMA obligation without a written authorization from

the Board.

Commissioner Foley clarified staff cannot make an expenditure and

think that it can go back and cover that expenditure by drawing down on the

FEMA loan, nor can the staff submit a drawdown with respect to the FEMA funds

without prior written Board approval. Dual action would be required on the part of

the staff; first, relative to the expenditure, staff would have to give the Board

advanced notice that it intends to do something that would cause a drawdown

request to be submitted to the Board; and second, the drawdown request would

have to be submitted to the Board for approval.

There was no further discussion on the motion to amend the

resolution; therefore, the amendment, offered by Commissioner Foley, seconded

by Commissioner Green, was unanimously adopted.

There was no further discussion on the motion, as amended,

therefore, Resolution No. 1-052306, offered by President McCrossen, seconded

by Commissioner Foley, was unanimously adopted.

Resolution No. 1-052306 is appended hereto and made a part hereof.

B. To retain the services of Essilor Laboratories for the period commencingJuly 1, 2006 and ending on June 30, 2007, to provide a comprehensiveprescriptive safety eyewear program for employees, with discounts offeredto dependents of employees, with funding not to exceed $8,000 providedin the FY’07 Budget, and to authorize the President or Director of RealEstate, Recreational and Non-Flood Assets to execute any and alldocuments necessary to accomplish the above.

There was no discussion on the motion, therefore, Resolution No.

2-052306, offered by Vice President Borne, seconded by Commissioner Green,

was unanimously adopted, to-wit:

MOTION: 2-052306

RESOLUTION: 2-052306

BY: Vice President Allen H. Borne, Jr.Vice Chairperson, Finance Committee



10

SECONDED BY: Commissioner Eugene J. Green, Jr.

May 23, 2006

R E S O L U T I O N

WHEREAS, the Orleans Levee District (O.L.D.) provides a

comprehensive prescriptive safety eyewear program for its employees, as part of

the safety program and as a benefit to the employees, with discounts offered to

dependents of employees; and

WHEREAS, the O.L.D. issued a Request for Proposal (RFP) in

2005, with proposals being submitted by three service providers being reviewed

by staff, who recommended that the services of Essilor Laboratories, the lowest

responsive bidder, be retained for a period of eleven months, commencing

August 1, 2005 and ending June 30, 2006, with a one-year option, should terms

remain agreeable to both parties, subject to the review and approval of the

Finance Committee; and

WHEREAS, funding in the amount of $8,000 for the

aforementioned vision program is available in the Fiscal Year 2007 Budget.

BE IT HEREBY RESOLVED, That the services of Essilor

Laboratories be retained for the period commencing July 1, 2006 and ending on

June 30, 2007, and that the President or Director of Real Estate, Recreational

and Non-Flood Assets be authorized to execute any and all documents

necessary to accomplish the above.

AYES: Commissioners Borne, Foley, Green and Saizan

NAYS: None

ABSENT: Commissioners Hatfield, Voelker and Willard-Lewis

RESOLUTION ADOPTED: Yes

C. To retain the services of Internal Medicine Associates for a period of oneyear from July 1, 2006 through June 30, 2007, for pre-employmentphysicals and other medical services for employees to include back-screens, vaccinations, emergency care, and back-to-work physicals, at acost not to exceed $2,500, with funding provided in the FY’07 ProfessionalServices Budget, and to authorize the President or Director of Real Estate,Recreational and Non-Flood Assets to execute any and all documentsnecessary to accomplish the above.



11


3-052306, offered by Vice President Borne, seconded by Commissioner Foley,


MOTION: 3-052306



SECONDED BY: Commissioner Dan S. Foley

May 23, 2006

R E S O L U T I O N

WHEREAS, by Resolution No. 8-051805, the Board authorized the

retention of the services of Internal Medical Associates for pre-employment

physicals and other medical services for employees of the Orleans Levee District

to include back-screens, vaccinations, emergency care, and back-to-work

physicals, for the period July 1, 2005 through June 30, 2006; and

WHEREAS, pre-employment physicals are used to protect the

District from liability for pre-existing injuries or illnesses, as well as ascertain the

physical capacity of applicants to perform the required work of the position; and

WHEREAS, Internal Medicine Associates has agreed to continue

the same rates as in Fiscal Year 2006.

BE IT HEREBY RESOLVED, That the services of Internal Medicine

Associates be retained for a period of one year from July 1, 2006 through

June 30, 2007, at a cost not to exceed $2,500, with funding provided in the Fiscal

Year 2007 approved Professional Services Budget, and that the President or

Director of Real Estate, Recreational and Non-Flood Assets be authorized to

execute any and all documents necessary to accomplish the above.


NAYS: None





12

D. To retain the testing services of Morris and McDaniel, Inc. to provide 16Personality Factor testing for all police personnel for a period of one year,from July 1, 2006 through June 30, 2007, at a cost not to exceed $1,250,

with funding provided in the FY’07 Professional Services Budget, and toauthorize the President or Director of Real Estate, Recreational and Non-Flood Assets to execute any and all documents necessary to accomplishthe above.


4-052306, offered by Vice President Borne, seconded by Commissioner Saizan,


MOTION: 4-052306



SECONDED BY: Commissioner Darrel J. Saizan, Jr.

May 23, 2006

R E S O L U T I O N

WHEREAS, by Resolution No. 7-051805, the Board authorized

Morris and McDaniel, Inc. to provide the 16 Personality Factor testing for all

police personnel for the Orleans Levee District for the period July 1, 2005

through June 30, 2006; and

WHEREAS, this is a scientifically based behavior assessment tool,

which when used by a professional, along with a formal interview, is an asset for

evaluating candidates for law enforcement work; and

WHEREAS, Morris and McDaniel, Inc. has provided quality

services to the District; and

WHEREAS, Morris and McDaniel, Inc. has agreed to continue the

same rates as in Fiscal Year 2006.

BE IT HEREBY RESOLVED, That the testing services of Morris

and McDaniel, Inc. be retained for a period of one year, from July 1, 2006

through June 30, 2007, at a cost not to exceed $1,250, with funding provided in

the Fiscal Year 2007 approved Professional Services Budget, and that the

President or Director of Real Estate, Recreational and Non-Flood Assets be



13

authorized to execute any and all documents necessary to accomplish the

above.


NAYS: None



E. To renew the counseling services of Mark S. Roloff and C. Philip Bein fora period of one year, from July 1, 2006 through June 30, 2007, to provide

an employee assistance program for employees and dependents, for anamount not to exceed $5,000, with funding provided in the FY’07Professional Services Budget, and to authorize the President or Directorof Real Estate, Recreational and Non-Flood Assets to sign any and alldocuments necessary to accomplish the above.


5-052306, offered by Vice President Borne, seconded by Commissioner Foley,


MOTION: 5-052306




May 23, 2006

R E S O L U T I O N

WHEREAS, by Resolution No. 4-051805, the Board authorized the

engagement of Mark S. Roloff and C. Philip Bein to provide an employee

assistance program to Orleans Levee District employees and dependents, with a

full range of mental health and wellness counseling services, including employee

consultation and referral, 24-hour “warm line” services, and outpatient mental

health services for the period July 1, 2005 through June 30, 2006; and

WHEREAS, Mark S. Roloff and C. Philip Bein have agreed to

continue the same rates as in Fiscal Year 2006; and



14

WHEREAS, the Board wishes to continue to provide these services

to employees, with funding provided in the Fiscal Year 2007 approved

Professional Services Budget.

BE IT HEREBY RESOLVED, That the counseling services of Mark

S. Roloff and C. Philip Bein be renewed for a period of one year, from July 1,

2006 through June 30, 2007 for an amount not to exceed $5,000, and that the

President or Director of Real Estate, Recreational and Non-Flood Assets be

authorized to sign any and all documents necessary to accomplish the above.


NAYS: None



F. To renew the contract with BFM to provide survey services on an as

needed basis, for a period of one year, from July 1, 2006 to June 30,2007, with funding in the amount of $2,500 designated in the FY’07General Fund for said work; to authorize the President or Director ofHurricane and Flood Protection to sign any and all documents required toaccomplish the above; and to provide that prior to the authorization of anySupplemental Agreement, the project will be brought to the Planning,Engineering and Construction Committee for informational purposes.


6-052306, offered by Commissioner Saizan, seconded by Vice President Borne,


MOTION: 6-052306


BY: Commissioner Darrel J. Saizan, Jr.Chairperson, Planning, Engineeringand Construction Committee

SECONDED BY: Vice President Allen H. Borne, Jr.

May 23, 2006

R E S O L U T I O N

WHEREAS, by Resolution No. 6-011895, the Board approved the

engagement of BFM Corporation to provide survey services on an as needed

basis; and



15

WHEREAS, by Resolution No. 11-051805, the Board extended

BFM’s contract to June 30, 2006; and

WHEREAS, BFM’s services will be needed in Fiscal Year 2007.

BE IT HEREBY RESOLVED, That the contract with BFM be

renewed for a period of one year, from July 1, 2006 to June 30, 2007, and that

the President or Director of Hurricane and Flood Protection be authorized to sign

any and all documents required to accomplish the above.

BE IT FURTHER RESOLVED, That an amount of $2,500 be

designated in the General Fund for FY 2007 for any special survey work that may

be required of BFM from July 1, 2006 to June 30, 2007.

BE IT FURTHER RESOLVED, That prior to the authorization of any

Supplemental Agreement, the project will be brought to the Planning,

Engineering and Construction Committee for informational purposes.


NAYS: None



G. To renew the contract with Shaw Coastal, Inc. to provide professionalservices, on an as needed basis, that are required to fulfill rules and

regulations of LADEQ regarding environmental matters, for a period ofone year, from July 1, 2006 to June 30, 2007, for an amount not to exceed$10,000 with funding established in the FY’07 Major Maintenance andCapital Improvement Fund; to authorize the President or Director ofHurricane and Flood Protection to sign any and all documents required toaccomplish the above; and to provide that prior to the authorization of anySupplemental Agreement, the project be brought to the Planning,Engineering and Construction Committee for informational purposes.


7-052306, offered by Commissioner Saizan, seconded by Vice President Borne,


MOTION: 7-052306





16

SECONDED BY: Vice President Allen H. Borne, Jr.

May 23, 2006

R E S O L U T I O N

WHEREAS, by Resolution No. 3-012093, the Board approved the

engagement of Coastal Engineering and Environmental Consultants, Inc., which

was subsequently purchased by the Shaw Group and became Shaw Coastal,

Inc., to provide professional services, on an as needed basis, that are required to

fulfill rules and regulations of LADEQ regarding environmental matters; and

WHEREAS, by Resolution No. 10-051805, the Board extended

Shaw Coastal, Inc.’s contract to June 30, 2006; and

WHEREAS, Shaw Coastal, Inc.’s services will be required in Fiscal

Year 2007 for various environmental projects, including the New Orleans

Lakefront Airport and Municipal Storm Water Pollution Prevention Plan Renewal,

for which funds are established in the FY 2007 Major Maintenance and Capital

Improvement Fund.

BE IT HEREBY RESOLVED, That the contract with Shaw Coastal,

Inc. be renewed for a period of one year, from July 1, 2006 to June 30, 2007, for

an amount not to exceed $10,000, and that the President or Director of Hurricane

and Flood Protection be authorized to sign any and all documents required to

accomplish the above.

BE IT FURTHER RESOLVED, That prior to the authorization of any

Supplemental Agreement, the project be brought to the Planning, Engineering

and Construction Committee for informational purposes.


NAYS: None



H. To approve the Orleans Levee District’s “Emergency OperationsProcedure” (EOP) Manual, with an effective date of June 1, 2006, and toauthorize all actions under the EOP and La. R.S. 38:319; and to authorizethe President or Director of Hurricane and Flood Protection to sign any

and all documents necessary to carry out the above.



17


8-052306, offered by Commissioner Saizan, seconded by Commissioner Foley,


MOTION: 8-052306




May 23, 2006

R E S O L U T I O N

WHEREAS, Louisiana Revised Statutes, Title 38, Section 319,

mandates that each Board of Commissioners of each Levee District prepare and

regularly review its emergency procedures manual; and

WHEREAS, the Orleans Levee District’s “Emergency Operations

Procedure” (EOP) Manual was developed by the Engineering Department, and

has been in use for many years; and

WHEREAS, the Orleans Levee Board conducts an annual review of

its EOP, and updates and approves it for the District’s operations; and

WHEREAS, after reviewing the current revision of the EOP, with an

effective date of June 1, 2006, the Planning, Engineering and Construction

Committee on May 2, 2006, recommended approval by the Board.

BE IT HEREBY RESOLVED, That the Board of Commissioners of

the Orleans Levee District approves the Orleans Levee District’s EOP Manual,

with an effective date of June 1, 2006, and authorizes all actions under the EOP

and the Statute.

BE IT FURTHER RESOLVED, That this Resolution be made a part

of the EOP Manual.



18

BE IT FURTHER RESOLVED, That the President or Director of

Hurricane and Flood Protection be authorized to sign any and all documents

necessary to carry out the above.


NAYS: None



I. To authorize and approve the continuation of the engagement of CorneliaUllmann to December 31, 2006 to provide general legal services as setforth in this Resolution; to provide that said engagement be submitted tothe Attorney General’s office for approval; and to authorize the Presidentor appropriate Director to sign any and all documents necessary to carryout the above.


9-052306, offered by Vice President Borne, seconded by Commissioner Saizan,


MOTION: 9-052306


BY: Vice President Allen H. Borne, Jr.Legal Committee


May 23, 2006

R E S O L U T I O N

A resolution authorizing the continuation of the engagement of CorneliaUllmann to perform general legal services beyond the 90 day periodapproved by Resolution No. 5-021506, which expires May 19, 2006.


the engagement of Cornelia Ullmann to perform general legal services for a

period of 60 days, which time expires February 18, 2006; and


extension of Ms. Ullmann’s engagement for a period of ninety days, which time

expires on May 19, 2006, with terms and conditions contained in said resolution;

and



19

WHEREAS, it is the recommendation of the Legal Committee, that

Cornelia Ullmann continue her previous engagement to provide supervision,

review, and recommendation on legal matters, and written reports thereof, in the

day to day affairs of the District, as requested by the District; as well as any other

matters that may be assigned; and

WHEREAS, it is the further recommendation of the Legal

Committee that Cornelia Ullmann be compensated at the rates below those

approved by the Attorney General, as set forth below:

• For services performed, no less than 100 hours per month, $4,500.00(four thousand five hundred dollars per month) ($45.00 per hour).

• Travel time is to be compensated at $25.00 per hour, if outside Orleans,Jefferson or Plaquemines Parishes, and must be specifically authorized byeither a Director, the President or the chair of the Legal Committee.

• Any hours in excess of 100 hours is to be compensated at the rate of$90.00 per hour (2/3rds of the rate provided in the Louisiana Attorney

General’s approved rate schedule), the hourly rate approved in Resolution13-122105 and previously approved by the Attorney General.

• Prior to any work being performed over 100 hours, permission of the Chairof the Legal Committee, President, and/or a Director (in said order) is tobe obtained.

• Paralegal services will be reimbursed at $45.00 per hour for actualexpenses.

• Law Clerk services will be reimbursed at $25.00 per hour for actualexpenses.

• Travel reimbursements are reimbursable in accordance with State Policy& Procedure memorandum (PPM) 49 “General Travel.

• The total of all sums payable under the contract including fees andreimbursement of expenses shall not exceed $4,500.00 (four thousandfive hundred dollars) per month for the services of Counsel, and a total of$41,800.00 (forty-one thousand eight hundred dollars), including paralegaland other expenses, the maximum amount of this contract endingDecember 31, 2006, without further authorization from the LegalCommittee.

WHEREAS, this contract shall be on a month to month basis for

professional services, terminable by the Board, at will, with or without cause, and

terminable by Ms. Ullmann with thirty (30) days notice.

WHEREAS, said engagement shall be submitted to the Louisiana

Attorney General’s office for approval.



20

BE IT HEREBY RESOLVED, That a real necessity exists to

continue the engagement of counsel to handle the day to day affairs of the Board

until permanent staffing solutions throughout the District are made and approved

by Civil Service, considering the constitutional vote that is currently scheduled for

September 30, 2006, which if successful, might eliminate the current Board

effective January 1, 2007, and accordingly, the Board authorizes and approves

continuing the engagement of Cornelia Ullmann to December 31, 2006 to provide

general legal services as set forth in this Resolution.

BE IT FURTHER RESOLVED, That said engagement be submitted

to the Attorney General’s office for approval.

BE IT FURTHER RESOLVED, That the President or appropriate

Director be authorized to sign any and all documents necessary to carry out the

above.


NAYS: None



J. To authorize the Eagan Insurance Agency to procure primary Propertyand Business Computer (EDP) insurance coverage for an additional two

month period commencing on June 1, 2006, and expiring on August 1,2006, at a approximate cost of $21,672 from Hartford, with fundscontained in the FY 2006 and FY 2007 budgets, and in accordance withprovisions set forth in this Resolution; and to authorize the President orDirector of Real Estate, Recreational and Non-Flood Assets to sign anyand all documents necessary to accomplish the above

Ms. Carol Kiefer, Auxiliary Services Director, advised Hartford

Insurance offered renewal at the same terms and conditions for the next two

months at a cost of $21,672, and asked that Mr. Avegno explain the current

situation.

Mr. Tim Avegno, representing Eagan Insurance Agency, explained

the original property coverage expired on November 1, 2005. Under Rule 23 an

insurance company cannot cancel or not renew coverage on damaged property

or property that has not been substantially repaired. Therefore, the insurance



21

coverages with an expiration date of November 1, 2005 have been continued

under the same terms and conditions, which includes the same rate. Hartford,

which is the carrier of coverage for the first $10 million, will continue coverage at

the same rate; RSUI, which is the excess coverage carrier, refused to further

extend coverage under the same terms and conditions. Therefore, a two month

policy would be written with RSUI for excess coverage, but at new rates, to

coincide with Hartford’s policy. RSUI had extended coverage at the same rate

for seven months, but refused a further extension and has quoted a new rate for

two months. He added, RSUI’s rate is very high and is conducive with the

property market; however, he felt an official complaint should be made to the

Commissioner of Insurance’s Office, and with the Board’s approval he would do

so. RSUI quoted a rate of $105,381 for the two month period of June 1 through

August 1, 2006, for coverage of $62 million in excess of $10 million. Hartford will

only provide $10 million of coverage, which is what it provided at the time of loss.

Mr. Avegno reiterated he felt RSUI’s increase was extremely

excessive, and he planned on contacting the Commissioner of Insurance’s

Office; however, he cautioned, should the Board not approve the extension which

is effective June 1, the District may loose excess coverage until the property is

repaired.

Ms. Kiefer pointed out previously this coverage was $92,000 for the

entire year. She advised, relative to damage from Hurricanes Katrina and Rita,

the damage to the Franklin Facility and Warehouse is currently under repair and

almost completed, the Lake Vista Community Center and West Bank facility had

very little damage, and the majority of property damage sustained was at the

Lakefront Airport.

Vice President Borne suggested that the facilities that have been

repaired be separated from those that still require repair and those properties be

covered.

Mr. Avegno felt this might be possible; however, most of the

properties are in the process of being repaired. Also, the carrier may charge a



22

higher rate because it will have less premium coming in—the carrier is saying,

basically, this is the premium it wants, which he felt was excessive. RSUI cannot

leave until 60 days after substantial repairs have been done. Mr. Avegno

advised his understanding was the Commissioner of Insurance would be issuing

something soon that will address the terms and conditions that should be

complied with on damaged property, as insurance companies are basically doing

what they want as far as terms and conditions, such as, raising deductibles and

rates. Should everything be repaired and the District take out new coverage on

this property, he estimated there will probably be a 300 percent rate increase,

due to the state of the market. He added, obtaining excess layers of coverage is

difficult at this time. He further explained should a property be repaired, such as

the Franklin Facility, other quotes can be obtained on that property; however,

when one piece is removed from a property schedule, you do not get the same

combined rate as you would get from a huge property schedule, but you could

get a better rate because of the fact that it is repaired. Mr. Avegno pointed out

he could not guarantee anything because of the approach of hurricane season.

Mr. Avegno recommended the extension with Hartford Insurance;

however, as far as RSUI, the Board would have to determine whether it wants to

take the risk on the coverage of $62 million in excess of $10 million, as far as

potential exposure.

Ms. Kiefer advised wind and flood property damage will top over

$10 million.

President McCrossen clarified, should the District make a complaint

to the Commissioner of Insurance, it will not get relief by June 1st, and if the

District does not pay this amount, it will not have excess coverage with RSUI,

and no one else will provide this coverage because the property is damaged.

Mr. Avegno commented it is difficult to find insurance companies

willing to write coverage at a decent rate at this time, and wind deductibles may

be raised.



23

Ms. Kiefer pointed out that this discussion is on coverage for wind

damage, and that flood insurance is a separate issue. The premium for flood

insurance is generally received about the second week in June.

Vice President Borne offered a motion to amend the resolution to

accept the offer for the extension with Hartford for $10 million of primary

coverage, and not accept the offer for excess coverage, and further to state that

funding is contained in the FY 2006 and FY 2007 budgets. The motion was

seconded by Commissioner Green.

President McCrossen clarified the amendment would provide that

the District only purchase the underlying coverage from Hartford for two months

at a premium of $21,672.

There was no further discussion on the amendment; therefore, the

question was called and the Board voted unanimously in favor of the motion for

amendment, offered by Vice President Borne and seconded by Commissioner

Green.



by Commissioner Saizan, was unanimously adopted, to-wit:

MOTION: 10-052306


BY: President Michael P. McCrossen


May 23, 2006

R E S O L U T I O N

WHEREAS, Commercial Property (Wind/Fire) and Inland Marine

Computer (EDP) insurance coverages will expire on June 1, 2006, and

WHEREAS, the aforementioned insurance coverages were

procured through proposals submitted in response to a Request for Proposal

issued by the Orleans Levee District in August, 2004, and



24

WHEREAS, by Resolution No. 8-102004, the District entered into a

contract with Eagan Insurance Agency to provide the aforementioned insurance

coverages through the insurance provider authorized by the Board, with two

consecutive one year options to shop the market for such coverages and provide

market results to the members of the Board, and

WHEREAS, the Orleans Levee District experienced extensive flood

and wind property damage from Hurricane Katrina, and repairs are insufficient to

determine current value of property, and

WHEREAS, Hartford, the primary incumbent provider of Property

and Business Computer (EDP) coverages, has extended the current policies

under the same terms and conditions, for an additional two month period

commencing on June 1, 2006, 12:01 A.M. and expiring on August 1, 2006, 12:01

A.M. at a pro rata premium of $21,672.00 and,

WHEREAS, Hartford is an admitted company authorized to do

business in the State of Louisiana (LA. R.S. 22:1257) and Best Rated A VIII or

better.

BE IT HEREBY RESOLVED, That the Board authorizes Eagan

Insurance Agency to procure the primary insurance coverage at a approximate

cost of $21,672 from Hartford, with funds contained in the FY 2006 and FY 2007

budgets, and in accordance with provisions set forth in this Resolution.

BE IT FURTHER RESOLVED, That the President or Director of

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

all documents necessary to accomplish the above.


NAYS: None



Vice President Borne asked Mr. Avegno to file the complaint with

the Commissioner of Insurance to see if there is any relief that can be given to

the District relative to excess insurance coverage, as the Board may wish to



25

reconsider should the Insurance Commissioner’s Office say that RSUI has been

unreasonable and must offer the coverage back to the District.

President McCrossen expressed his concern relative to markets

that Mr. Avegno may not have been able to deal with, and asked Mr. Avegno

whether he would object to the District requesting quotes from others for this

excess coverage.

Mr. Avegno reiterated insurance carriers do not want to quote on

damaged property. He stated he did not object to the District asking for quotes,

however, he explained, as an independent agent, he has access to probably

every market in the world either through direct admitted companies or through

excess or surplus brokers.

The Board briefly discussed the on-going property claims and

repair processes. Mr. Gerry Gillen reported, after going through the RFQ

process, on March 15th professional service contracts were awarded for the

engineers and architects for the various projects, and he anticipated sending

these contracts to Civil Service for approval by the end of the week so that work

can begin.

K. To authorize the cancellation of leases in the Lakefront Airport TerminalBuilding effective September 1, 2005, for the mutual convenience of the

parties, and the cancellation of dumpster service charges for the AirportRestaurant effective September 1, 2005; and to authorize the President,Director of Real Estate, Recreational and Non-flood Assets or the Directorof Aviation to sign any and all documents necessary to carry out theabove.

Commissioner Green asked which leases were involved, and Ms.

Ullmann responded, A.H. Glenn & Associates, Airport Restaurant and Walnut

Room, Flight Academy of New Orleans, U.S. Customs Service, Landry’s

Limousine and Mr. Nicholas Caridas (Room 100). Ms. Ullmann added, these

spaces were located on the first floor of the Airport Administration Building and

are not accessible or usable.

Mr. Albert Pappalardo explained the Board would be authorizing

the Legal Department to cancel these leases for the mutual benefit of the parties.

Since these leases were for office space only, none of the lessees had an



26

obligation to perform any repairs, and the total obligation for repair is on the

District, which have not been performed.

Commissioner Green asked whether any of these lessees would

contest this cancellation, and Mr. Pappalardo responded, no.

Relative to the status of the building, Mr. Gerry Gillen reported that

the roof contract has begun, with the upper portion being approximately 75

percent complete. Interest has been expressed by FEMA regarding bringing in

historic renovation money for repair of the murals and artwork in the building.

Mr. Pappalardo further explained, until these leases are canceled,

back to September 1st, there is an open item on rent, and by law rent should not

be received on a building that is totally damaged for which the District had the

total responsibility.

There was no further discussion on the motion, therefore,

Resolution No. 11-052306, offered by President McCrossen, seconded by

Commissioner Saizan, was unanimously adopted, to-wit:

MOTION: 11-052306


BY: President Michael P. McCrossen


May 23, 2006

R E S O L U T I O N

WHEREAS, on or about August 29, 2005 Hurricane Katrina caused

damage to the New Orleans Lakefront Airport Administration Building, also

known as the Terminal Building; and

WHEREAS, the Orleans Levee District owns, operates and

manages the New Orleans Lakefront Airport Administration Building; and

WHEREAS, given the unique, historic architectural attributes of the

building, the Orleans Levee District has incurred considerable delay in evaluating



27

the feasibility of conservation of the structure versus redevelopment of the

property; and

WHEREAS, A.H. Glenn & Associates, Airport Restaurant and

Walnut Room, Flight Academy of New Orleans, U.S. Customs Service, Landry’s

Limousine and Mr. Nicholas Caridas (Room 100) have leases in the Terminal

Building; and

WHEREAS, these lessees are not able to occupy the leased

premises until such time as the Orleans Levee District completes its evaluation

and repair of the building.

BE IT HEREBY RESOLVED, That the Board authorizes the

cancellation of leases in the Terminal Building effective September 1, 2005, for

the mutual convenience of the parties.

BE IT FURTHER RESOLVED, That the Board authorizes the

cancellation of dumpster service charges for the Airport Restaurant effective

September 1, 2005.

BE IT FURTHER RESOLVED, That the President, Director of Real

Estate, Recreational and Non-flood Assets or the Director of Aviation be

authorized to sign any and all documents necessary to carry out the above.


NAYS: None



L. A resolution authorizing the Orleans Levee District’s participation in theState of Louisiana’s Gulf Tax Credit Bonds Program through the issuanceof not exceeding $27,000,000 bonds or notes or otherwise participating

therein; making application to the State Bond Commission; and providingfor other matters in connection therewith.

Mr. Jarrell Godfrey, Bond Counsel, advised this particular resolution

authorizes participation in the Gulf Tax Credit Bonds Program, which is a special

program enacted by Congress to allow the State of Louisiana to issue $200

million of tax credit bonds, which would result in no interest cost on that $200

million to the State, but the State would have to match it with $200 million of



28

General Obligation Bonds at the State’s normal interest rate, which in today’s

environment would be approximately 4.85 to 5 percent. The net effect of this is

to give a pool of $400 million to the State for the purpose of lending to the

political subdivisions of the State to use for payment of principal, interest and

redemption premiums only on their outstanding bonds. The public purpose is to

prevent there being any defaults by the political subdivisions on their existing

outstanding debts. The amount not to exceed $27 million is roughly three times

the approximate annual debt service on the Board’s outstanding debt of

approximately $8,700,000 per year. There is no absolute assurance of what

amount the State would be receiving, although the Treasurer has made

numerous statements on the record of the Bond Commission last Thursday that

the Levee District would be included in this program and would be getting

approximately $20 million. The resolution has alternative methods of security

provided Section 3. The first alternative is a subordinated pledge of taxes, and

the second alternative is a subordinated pledge of the revenues from non-tax

receipts from the District’s various commercial and oil and gas properties in

Orleans and Plaquemines Parishes. Mr. Godfrey recommended that the second

alternative be chosen, and that the Godfrey Firm be authorized to make that

selection and delete the first alternative; therefore, the collateral would be a

pledge of the revenues from the numerous non-tax revenues received from the

properties of the Board in Orleans and Plaquemines Parishes.

Commissioner Foley offered a motion to amend the resolution as

written to delete option number one as an option, and relegate the collateral to

that which is specified as alternate number two in the draft resolution.

There was no further discussion on the amendment, therefore, the

question was called and the motion to amend the resolution, offered by

Commissioner Foley, seconded by Vice President Borne, was unanimously

adopted.





29

by Vice President Borne, was adopted, with Commissioners McCrossen, Borne,

Foley and Saizan voting yea, and Commissioner Green voting nay, to-wit:

MOTION: 12-052306

RESOLUTION: 12-052306May 23, 2006

The following resolution was offered by Michael P. McCrossen and seconded byAllen H. Borne, Jr. .

RESOLUTION

A resolution authorizing the Orleans Levee District’s participation inthe State of Louisiana’s Gulf Tax Credit Bonds Program through theissuance of not exceeding $27,000,000 bonds or notes orotherwise participating therein; making application to the StateBond Commission; and providing for other matters in connectiontherewith.

WHEREAS, the Orleans Levee District (the “District”) has previouslyissued its (i) $56,780,000 Levee Improvement Bonds, Series 1986 (which wereconverted to fixed rate in 1995), (ii) $6,775,000 Orleans Levee District LeveeImprovement Refunding Bonds, Series 1996 (collectively the “Levee

Improvement Bonds”), (iii) $34,780,000 Orleans Levee District PublicImprovement Bonds, Series 1986 (which were converted to fixed rate in 1995),and (iv) $2,795,000 Orleans Levee District Public Improvement Bonds, Series1996 (collectively the “Public Improvement Bonds” and collectively with theLevee Improvement Bonds the “Existing Bonds”); and

WHEREAS, the annual debt service payments on the Existing Bonds isapproximately $8,700,000 per year for the next three fiscal years of the District;and

WHEREAS, the District has executed and delivered its $3,346,000

Orleans Levee District Interim Revenue Notes (FEMA Community Disaster Loan)Series 2006 A (the “FEMA Note”) which contains provisions for possibleincreases in amount up to a maximum of $10,000,000; and

WHEREAS, the President of the United States (the “President”) hasdeclared the City of New Orleans, the geographic area of the District to be adisaster area in the aftermath of Hurricane Katrina; and

WHEREAS, the President has signed into law the Gulf Opportunity ZoneAct of 2005 (the “GO Zone Act”); and

WHEREAS, the State of Louisiana (the “State”) has announced itsintention to avail itself of the provisions of Section 1400N(i)(4) of the G.O. ZoneAct to issue Gulf Tax Credit Bonds the proceeds of which are to be used to payprincipal, interest, or premiums on qualified bonds issued by qualified politicalsubdivisions of the State; and

WHEREAS, the Board of Commissioners of the District (the “Board”)desires to authorize participation by the Orleans Levee District in the State’s GulfTax Credit Bonds Program; and



30

WHEREAS, as a result of the state of emergency, it maybe necessary forthe proper officers of the District to proceed, on behalf of the District in applyingfor assistance through the State’s Gulf Tax Credit Bonds Program.

NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF THEDISTRICT ACTING AS ITS GOVERNING AUTHORITY that:

SECTION 1. Declaration of Emergency. The District does hereby find anddetermine that an emergency exists within the District as a result of HurricaneKatrina and as a result thereof a real necessity exists requiring that the Districtparticipate in the State’s Gulf Tax Credit Bonds Program as allowed under therules established for such program either through (i) borrowing amounts to beused to pay principal, interest, and premiums on its currently outstanding debt or(ii) if permitted under such programs through receipt of grants or (iii) as otherwise

permitted under the rules to be established for the Gulf Tax Credit BondsProgram.

SECTION 2. Authorization to Make Application for Assistance Through theGulf Tax Credit Bonds Program. The proper officers of the Board and the Districtare hereby authorized to proceed with an application on behalf of the District forassistance through the Gulf Tax Credit Bonds Program.

SECTION 3. Authorization of Notes. There is hereby authorized theborrowing of not exceeding Twenty-Seven Million Dollars ($27,000,000) in theaggregate by the Orleans Levee District (the “District”), to be evidenced by one

or more bonds or notes of the District (the “Notes”), in one or more series, to bedenominated the not exceeding $27,000,000 Orleans Levee District Notes (GulfTax Credit Bonds Program) Series 2006 A the proceeds of which shall be usedfor the purpose of paying principal, interest, and premiums on the Existing Bondsor as otherwise permitted under the Gulf Opportunity Act of 2005. The Notesshall be issued in accordance with La. R.S. 39:1430, and La. R. S. 39:1444through 1455 inclusive, (collectively, the "Act"). The Notes shall be payable fromand secured by a subordinate pledge of the District’s revenues from its variousreal estate and mineral holdings located in Orleans Parish and PlaqueminesParish Louisiana, including without limitation, the Orleans Marina, the SouthShore Harbor Marina, the Lake Vista Community Center, the Lakefront Airport,

all leases along, adjacent to or in the vicinity of the New Basin Canal and theOrleans Marina, the income from all mineral leases granted by the District in theBohemia Spillway area, namely OLB Well No. 1, Clam Bay Field operated byClayton Williams, Potash Field operated by Sundown and Cox Bay Fieldoperated by Bass, and all other areas of Plaquemines Parish Louisiana, (the“Revenues”) subject to and after the payment therefrom of (A) all operation andmaintenance expenses of the District (the amount of Revenues remaining afterpayment of all operation and maintenance expenses being hereinafter referred toas the “Net Revenues”) and (B) all payments of principal and interest due by theDistrict on (i) the Existing Bonds, (ii) the FEMA Note, (iii) any bonds notes orother evidences of indebtedness issued on a parity with the Existing Bonds (the

“Parity Bonds”), (iv) any bonds notes or other evidences of indebtedness to beissued in the future secured by a first lien on the Revenues or Net Revenues (the“Future Revenue Bonds”), and (v) any bonds issued to refund any of the ExistingBonds, the Parity Bonds and the Future Revenue Bonds regardless of whethersecured on a parity first lien basis with any un-refunded Existing Bonds, ParityBonds and the Future Revenue Bonds, for each fiscal year while any of theNotes are outstanding. The Notes may evidence (i) a loan or (ii) a grant from theState under the Gulf Tax Credit Bonds Program, and if a loan may bear interestfrom the date thereof at a fixed or variable rate in accordance with the provisionsof the Gulf Tax Credit Bonds Program at an amount not exceeding 8% perannum, and shall mature over a period not exceeding thirty (30) years or such



31

shorter period as is required under the Gulf Tax Credit Bonds Program from thedate of said Notes.

The Notes may be issued in fully registered form, may be issued on a

taxable and/or tax-exempt basis, and shall have such additional terms andprovisions as may be deemed necessary by the District in order to qualify for theGulf Tax Credit Bonds Program.

SECTION 4. Sale of Notes. The Notes are hereby authorized to be soldby private negotiated sale in one or more series to the State or as directed by theState, and the President of the Board or in his absence the Vice President of theBoard is hereby authorized to execute such Notes and other documents in formand substance satisfactory to bond counsel to the District and to State.

SECTION 5. Pledge of Collateral. If the District’s participation in the Gulf

Tax Credit Bonds Program is structured as a loan, the District hereby pledgesthat it will repay the Notes, and the officers of the District, including withoutlimitation, the President or in his absence the Vice President is authorized toexecute any certificate or other document required by the State in connectionwith said pledge.

SECTION 6. Severability. If any provision of this resolution shall be held tobe invalid, such invalidity shall not affect any other provisions herein which canbe given effect without the invalid provision and to this end, the provisions of thisresolution are hereby declared to be severable.

SECTION 7. Application to State Bond Commission. Application is herebymade to the State Bond Commission, Baton Rouge, Louisiana, for approval of (i)the District’s participation in Gulf Tax Credit Bonds Program and (ii) the issuanceand sale of the Notes, and bond counsel is directed to make application to theState Bond Commission in accordance with the foregoing on behalf of theDistrict.

SECTION 8. Employment of Bond Counsel/Ratification Consultants. It isrecognized that a real necessity exists for the employment of bond counsel inconnection with all of the District’s numerous post Katrina financial matters,including participation in the Gulf Tax Credit Bonds Program and the issuance of

the Notes and, accordingly, the District does hereby ratify, accept the benefit ofand authorize The Godfrey Firm, P.L.C., of New Orleans, Louisiana, to serve asits special counsel/bond counsel with respect to all its post Katrina financial andrelated matters, including without limitation, to perform comprehensive, legalservices and coordinate professional work with respect to its participation in theGulf Tax Credit Bonds Program and the issuance of the Notes. The fee to bepaid bond counsel shall be on a non-contingent hourly rate basis with the hourlyrates provided for in the engagement letter previously authorized and executedby the District but if the Notes are actually issued and delivered an amount not toexceed the amount resulting from the Attorney General's then current BondCounsel Fee Schedule and other guidelines for comprehensive, legal and

coordinate professional work in the issuance of revenue bonds applied to themaximum aggregate principal amount of the Notes actually issued, together withreimbursement of out-of-pocket expenses incurred and advanced in connectionwith participation in the Gulf Tax Credit Bonds Program and the issuance of theNotes.

SECTION 9. Publication of Resolution. A copy of this resolution shall bepublished as soon as possible after its adoption in the official journal of theDistrict. For a period of thirty (30) days from the date of such publication anyperson in interest shall have the right to contest the legality of this resolution andof the Notes to be issued pursuant hereto and the provisions securing the Notes.

After the expiration of said thirty (30) days, no one shall have any right of action



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to contest the validity of the Notes or the provisions of this resolution and theNotes shall be conclusively presumed to be legal and no court shall thereafterhave authority to inquire into such matters.

SECTION 10. Other Required Actions. The President of the Board, theappropriate officers and employees of the District and the consultants to theDistrict are hereby authorized and directed to take all actions necessary orappropriate to participate in the Gulf Tax Credit Bonds Program and issue, selland deliver the Notes and to affect the purposes of this resolution.

SECTION 11. Effective Date. This resolution shall become effectiveimmediately.

AYES: Commissioners McCrossen, Borne, Foley and Saizan

NAYS: Commissioner Green



Commissioner Foley commented he was interested in assuring this

Board provides as much flexibility as possible to any successor agency that

comes into existence at the end of this year and the beginning of calendar year

2007. He felt both propositions passed today are financing tools any successor

agency may wish to use, and it can exercise its sound discretion as to whether it

wants to go forward and utilize these funds, or cancel the programs and remit the

monies to the creditor.

VII. COMMITTEE REPORTS:

A. STANDING COMMITTEES:

1. Ethics and Policy Committee:

No meeting held, therefore no report.

2. Executive Committee:

No meeting held, therefore no report.

3. Finance Committee and Planning, Engineering and ConstructionCommittee:

Minutes of joint Committee meeting were included in agenda packet.

B. SPECIAL COMMITTEES:

1. Legal Committee:

Minutes of Committee meeting were included in agenda packet.

VIII. ADJOURNMENT:



There were no further discussions, nor was there anyone who

wished to bring any more business before the Board, therefore, the meeting was

adjourned at 6:30 p.m.

Respectfully submitted,

_________/S/

_________________ LOUIS J. CAPO,SECRETARY

I, Louis J. Capo, Secretary of the

Board of Commissioners of theOrleans Levee District do herebycertify that the foregoing is a true andcorrect copy of the minutes of the Boardmeeting of May 23, 2006.

________/S/___________________ LOUIS J. CAPO, SECRETARY

2006.05.23.Board Minutes See Pg6bottom

Documents

Transcript of 2006.05.23.Board Minutes See Pg6bottom