MINUTES OF THE REGULAR MONTHLY BOARD MEETING OF THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT SEPTEMBER 20,

2006 ROYS Notes:First full board meeting after they received the AG opinion. Despite a newspaper article about this meeting reporting that they had unearthed that allowed them to move forward without compensation and reporting that neither the state attys nor the Corps attys owned up to which one had unearthed the law, no mention of any of this appears in the minutes. They just slip it in that they can do it under state law 1. Presentation by representative of the U.S. Army Corps of Engineers on Task Force Guardian/Hope, special presentation on the 100 Year Storm Design concepts and challenges for the New Orleans Lakefront levee system from the 17th Street Canal to the Industrial Canal, and progress update on tree removal within the levee section along London Avenue Canal and 17th Street Canal. ............... 4 ROYS NOTES: This presentation was posted in the public online records for the Orleans Levee District and been mysteriously removed by the OLD. The Board reconvened in regular session at 2:50 p.m.. The meeting was called back to order and the Board proceeded with the progress update by the Corps of Engineers on tree removal within the levee section along London Avenue Canal and 17th Street Canal. Mr. Michael Stout, Corps of Engineers Project Manager in charge of tree removal, presented an update on the project. The Orleans Levee District gave the Corps right of entry on the Lakefront and Orleans Avenue Canal levee reaches and that work is in progress. As of today, trees are being removed on the City Park side along the Orleans Avenue Canal, and a number of trees and woody shrubs along the Lakefront Levee will be removed over the next week. The next reach the Corps will be moving on is the London Avenue Canal, and a 12 right of entry request has been submitted to the Orleans Levee District for the right to remove the trees that are at the toe or within six feet of the levee toe. Trees that are at the levee toe or within six feet of the levee toe endanger the levee because their root systems invade the levee section. Should a tree be blown over during a storm, there is a significant risk of levee material being removed and weakening the levee at that critical time of the storm event. He cautioned there may be trees beyond the six feet that may be problematic; however, the request is within six feet based on the limit of what State law allows with right-of-way. The Corps is still in Phase One of the tree removal program, which is focused on the trees that most endanger the levees. Therefore, trees with root systems that are known to invade the levee section will be removed first; however, there may be trees beyond that limit that also are a problem for the levee from a standpoint of maintenance and flood fighting, and the possibility of a tree falling on a flood structure. Phase Two, which will not happen until, at the earliest, next year may go beyond the six feet and in many places right-ofway will have to be acquired. Commissioner Hedge-Morrell expressed her concern about the homeowners on Warrenton and Pratt, where some have fences at or a short distance from the levee toe, and referenced her pervious meeting with him. Mr. Stout explained the Corps hopes to remove the subject trees as early as possible, possibility in October, leaving the stumps and root systems for removal after the hurricane season, possibly in January. The Corps will only be gaining access at this time to cut down trees and will not remove fence sections unless required; any fence section that is removed at this time, will be repaired with a temporary patch. Work must still be done at the Corps internally and with Orleans Levee District staff, however, in January it is likely that fences will be removed back to the six foot line due to maintenance requirements. Commissioner Hedge-Morrell explained the homeowners along the

levee on Warrenton and Pratt are in the process of making a decision relative to rebuilding. In addition, in the long term additional right-of-way may be required 13 along sections of the outfall canals for I-wall support, and it was unfair, one year after Hurricane Katrina, to ask homeowners to stay on hold until the Corps decides whether the right-of-way requirement will be six, nine or twenty feet. The Corps needs to built the strongest flood protection possible along the outfall canals, and in order to do that additional right of way will be required, and sufficient space and property should be acquired now. Commissioner HedgeMorrell further recommended coordination with the LRA and the Road Home program. She reiterated the homeowners need to know before they invest in these properties where there may be a problem. Mr. Stout advised, after meeting with Commissioner Hedge-Morrell, he briefed Colonel Wagener and the Executive staff, and they are aware of this concern. The Corps has been limited because it is trying to do a lot things at oncesome are responsible for the repair and rehabilitation effort, others are responsible for bringing projects to authorized levels, and still others responsible for 100 year protection with whole new features that need to be designed. The Corps is saying under State law trees six feet from the levee toe must be removed. The Corps is saying it is looking at Phase Two of tree removal and other encroachments that may go further. Corps guidelines indicate that a 15 foot corridor from the toe of the levee should be achieved; however, that is not in place in many places in New Orleans. Finally, there is the issue of permanent pump stations and gates, and it is too early to know yet what right-of-way will be required. If the authorization and funds were there, the cleanest thing to do would be to offer everyone who backs into those canals a buy out; however, the Corps does not have that authority at this time and until it can determine an engineering need, it cannot proceed. He assured the Board this concern and need for a solution is very much on theminds of the leadership of the Corps. PAGE14 Relative to the London Avenue Canal, Mr. Stout explained, neighborhood meetings will be held before proceeding, and the Gentilly Civic Improvement Association has been contacted in this regards. Also, a news release will be issued and notices will be mailed to the property owners and posted on doors to communicate the full extent of what is going on. Mr. Stout concluded, falling on the heels of this, will be efforts to secure the right-of-way along the Seventeenth Street Canal, which the Corps is working engineering analyses on.

MINUTES OF THE REGULAR MONTHLY BOARD MEETING OF THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT SEPTEMBER 20, 2006

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT SEPTEMBER 20, 2006 ACTION PAGE

OPENING REMARKS ....................................................................................... 1 ROLL CALL. ...................................................................................................... 3 PLEDGE OF ALLEGIANCE. .............................................................................. 3 PRESENTATIONS: 1. Presentation by representative of the U.S. Army Corps of Engineers on Task Force Guardian/Hope, special presentation on the 100 Year Storm Design concepts and challenges for the New Orleans Lakefront levee system from the 17th Street Canal to the Industrial Canal, and progress update on tree removal within the levee section along London Avenue Canal and 17th Street Canal. ............... 4 EXECUTIVE SESSION: 1. OLD v. American Airports Lakefront, L.L.C., CDC No. 04-16652. ................. 14 2. Katrina related litigation. ................................................................................ 14 a. West End Tennis Club. .............................................................................. 14 3. The Palms at Lake Marina, L.L.C. v. O.L.B., CDC 2004-1390....................... 14 4. O.L.D. v. M/V Belle of Orleans, USDC SDAL 2006-0017-C .......................... 14 5. O.L.D. v. Belle of Orleans, LLC, CDC 2006-283 L (6)................................. 14 6. Haspel & Davis Milling and Planting Co., Ltd., et al. v. OLB, 25th JDC 31-357. .......................................................................................... 14 7. Adams, et al. v. OLB, La 4th Cir. 05-CA-1159 ................................................ 14 APPROVAL OF MINUTES: Approval of minutes of Regular Monthly Board Meeting held on August 18, 2006. ................................................................................................ 15 COMMUNICATIONS: 1. Appointment of Commissioner Cynthia Hedge-Morrell as Chairperson of the Ethics and Policy Committee........................................... 15 2. Insurance update........................................................................................... 15 MOTIONS: *A Resolution Authorizing (i) execution of a $230,752 Promissory Note to FEMA and (ii) pledging collateral for the payment of the Not Exceeding $18,000,000 FEMA Community Disaster Loan. ................................ 16

*Denotes approval

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THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT SEPTEMBER 20, 2006 ACTION PAGE

*A resolution complying with the provisions of a motion adopted by the Board of Commissioners on May 23, 2006, and incorporated in the minutes of the meeting of the Board of such date establishing criteria for (i) making expenditures to be paid or reimbursed by draws on FEMA CDL Loan proceeds and (ii) requiring staff giving the Board advance notice of intent to make a CDL Loan draw; authorizing a FEMA CDL Loan Proceeds draw; and other matters in connection therewith ....................... 17 *To revoke the policy for new 30-year leases for the boathouses in the Orleans Marina as provided by Resolutions Nos. 2-092000, 1-111500 and 4-072005, effective close of business (4:30 p.m.) Friday, September 29, 2006, unless written notice to the Orleans Levee District is received prior to that time and date, receipt of which is acknowledged by the Orleans Levee District.............................................................................. 19 *To approve a new Lease Agreement with Ochsner Clinic Foundation for Store No. 9 at the Lake Vista Community Center, with a primary term of two years, commencing January 1, 2007, at the fair market value rental rate of $23,141.25 per annum, plus a 42 percent pro-rated share of electrical charges for Stores Nos. 8 and 9 as additional rental; and to authorize the President or Director of Real Estate, Recreational and Non-Flood Assets or the Director of Hurricane and Flood Protection to sign any and all documents necessary to carry out the above ....................... 21 *To approve a one year extension of the lease with the New Orleans Mosquito Control Board for property on the southeast corner of Lakefront Airport; and to authorize the President, Director of Real Estate, Recreational and Non Flood Assets or Director of Aviation to sign any and all documents necessary to carry out the above ........................... 22 *To approve a lease with The Flight Academy for approximately 2,000 square feet of space on the east wing of the second floor of the Lakefront Airport Terminal Building at $6.00 per square foot per annum, or approximately $12,000 per annum, for a period of one year, extended monthly by mutual agreement, subject to standard terms and conditions for leases at the Airport; and to authorize the President, Director of Real Estate, Recreational and Non-Flood Assets, or the Director of Aviation to sign any and all documents necessary to carry out the above...................................................................................................... 24 *To approve a budget increase in the amount of $35,100 for the Lakefront Airport Fuel Farm Tank and Mechanical Repair Project to provide for additional damage discovered in the interior of the jet fuel tank; and to authorize the President or Director of Real Estate, Recreational and Non-Flood Assets or the Director of Hurricane and Flood Protection to sign any and all documents necessary to carry out the above............................................................................................................ 25 *Denotes approval

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THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT SEPTEMBER 20, 2006 ACTION PAGE

*To authorize a revision, effective this date and to continue for a period of one year, of Section 4.1.1. of the Orleans Levee District Policy and Administrative Guidelines for Issuance of Pubic Works Construction Contracts and Change Orders, to provide that the President, Director of Hurricane and Flood Protection, Director of Real Estate, Recreational and Non-Flood Assets or the Chief Engineer shall have the authority to enter into informal contracts over $10,000 and less than $50,000, and that said contract award be reported at the next meeting of the Planning, Engineering and Construction Committee ......................................... 26 To approve or ratify public works projects contracts awards for contracts over $10,000 and less than $50,000, as indicated in this Resolution, and to authorize the President, Director of Hurricane and Flood Protection or Chief Engineer to execute any and all documents necessary to accomplish the above.................................................................... 28 *To approve and authorize the outsourcing of the Districts payroll function to ADP, at a one-time setup fee of $5,000, and annual cost not to exceed $30,000; and to authorize the President or the Director of Real Estate, Recreation and Non-Flood Assets to sign any and all documents necessary to accomplish the above ................................................. 29 *To approve a lease with Environmental Engineers, Consultants and Contractors (EE&G) for approximately 80,000 square feet of paved parking at Lakefront Airport at the rate of approximately $3,666 per month for maintenance, vehicle and equipment storage for a period of 90 days, extended monthly by mutual agreement, subject to standard terms and conditions for leases at the Airport; and to authorize the President, Director of Real Estate, Recreational, and Non-Flood Assets, or the Director of Aviation to sign any and all documents necessary to carry out the above............................................................................................. 30 *Denotes approval COMMITTEE REPORTS: STANDING COMMITTEES: 1. Ethics and Policy Committee ........................................................................ 32 2. Executive Committee .................................................................................... 32 3. Finance Committee and Planning, Engineering and Construction Committee ................................................................................ 32 SPECIAL COMMITTEES: 1. Legal Committee .......................................................................................... 32 PUBLIC COMMENTS......................................................................................... 32

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ADJOURNMENT ............................................................................................... 33

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MINUTES OF REGULAR MONTHLY BOARD MEETING SEPTEMBER 20, 2006 __________________________________________________________ The regular monthly meeting of the Board of Commissioners of the Orleans Levee District was held on Wednesday, September 20, 2006, 1:27 p.m., in the Second Floor Hall of the Lake Vista Community Center, 6500 Spanish Fort Boulevard, New Orleans, Louisiana, after due legal notice of the meeting was sent to each Board member, the news media, and a copy of the agenda was posted. President McCrossen advised several Commissioners were in route to the meeting; therefore, the Board would proceed informally with Opening Remarks and Presentations until a quorum is established. President McCrossen stated it was important, regardless of the vote on September 30th, to segregate the Districts two obligations, and addressed the Districts non-flood assets in his opening remarks. Since I became President in October 2005, I have suggested separating the Orleans Levee District into Flood Protection and Recreational Divisions. We did that administratively in January, 2006. Additionally, we tried to pass legislation to set up the Recreational assets under a separate board earlier this year but were not able to succeed. Therefore, this week, I submitted to the Governor a proposal to set up a Lake Area Development as a cooperative agreement under the jurisdiction of the Division of Administration. Whether Amendment Three passes or fails, I believe this new structure is best for New Orleans and Louisiana. Vice President Borne commented these assets are jewels of New Orleans, as well as revenue producing, and hoped President McCrossens proposal would be carried out.

Commissioner Green added, the assets of the Orleans Levee District were paid for by the taxpayers of Orleans Parish, and he hoped whatever consolidation takes place, that the revenues and long term benefits from the assets will be used to enhance the rebuilding of Orleans Parish. President McCrossen further explained, under his proposal, any surplus from these recreational or real estate assets would flow back into hurricane and flood protection. The revenues from these assets currently, and as projected into next year, constitute over 50 percent of the Districts operating funds. Therefore, it is extremely important to hurricane and flood protection that the District maximize the revenue potential of these real estate and recreational assets and develop this revenue base so as to minimize the tax consequences that the citizens of New Orleans must pay. Vice President Borne announced the New Orleans Metropolitan Convention and Visitors Bureau recently honored President McCrossen as one of the seven champions of the Crescent City for his numerous contributions to the convention and tourism industry this past year. President McCrossen has addressed about 24 conventions, helping to keep many in New Orleans who may have otherwise gone to other locations due to the hurricane damage. Mr. Louis Capo added, in addition to speaking to more than two dozen convention groups, President McCrossen spoke a group comprised of over 75 convention planners from across the country. His hard work assisted the Convention Bureau in saving conventions vital to this regions economy, as tourism generates about 35 percent of New Orleans operating budget and is the Citys largest employer. President McCrossen commented these convention planners were interested, first, in flood protection, and, secondly, in the Lakefront Airport.

The roll was then called and a quorum was present. PRESENT: The Honorable Michael P. McCrossen, President The Honorable Allen H. Borne, Jr., Vice President The Honorable Dan S. Foley, Commissioner The Honorable Eugene J. Green, Jr., Commissioner The Honorable Darrel J. Saizan, Jr., Commissioner The Honorable Cynthia Hedge-Morrell, Commissioner ABSENT: The Honorable Brenda Hatfield, Commissioner The Honorable David R. Voelker, Commissioner ALSO PRESENT: Bob Hoffman, Corps of Engineers HPO Mike Watson, Corps of Engineers HPO Dennis Hamilton, Corps of Engineers HPO Mark Pratt, Corps of Engineers Betty Earnest, Godfrey Firm Rochelle Hance, Corps of Engineers Gerry Stauder, Jacobs Civil, Inc. Kevin Wagner, Corps of Engineers HPO Michael Stout, Corps of Engineers Ben Caldwell, Corps of Engineers Mark Werner, Stanley Consultants Victor A. Landry, Evans-Graves/Corps of Engineers Elizabeth Willis, Fox 8 Lance Washington, Fox 8 Frederick Young, Corps of Engineers Paul Hughbanks, Corps of Engineers Ann Duffy, Lake Oaks Parkway Richard Angelico, WDSU Bill Csajko, Corps of Engineers OLD STAFF & CONSULTANTS PRESENT: Stevan Spencer, Director Hurricane and Flood Protection Louis J. Capo, Director Real Estate, Recreational and Non-Flood Assets Cornelia Ullmann, Interim Counsel Glenda Boudreaux, Executive Department Albert Pappalardo, Pappalardo Consultants Robert Maureau, Administrative Director Gerry Gillen, Engineering Department Nina Hebert-Marchand, Compliance Department Carol Kiefer, Auxiliary Services Wilma Heaton, Executive Department Rick Loggins, Information Systems Commissioner Foley led in the pledge of allegiance.

I. 1.

PRESENTATIONS: Presentation by representative of the U.S. Army Corps of Engineers on Task Force Guardian/Hope, special presentation on the 100 Year Storm Design concepts and challenges for the New Orleans Lakefront levee system from the 17th Street Canal to the Industrial Canal, and progress update on tree removal within the levee section along London Avenue Canal and 17th Street Canal. Mr. Frederick Young, Project Manager for the U.S. Army Corps of

Engineers (Corps), reported work is on-going on the pumps at the control structures at the three outfall canals. There appears to be better control over the pump vibrations, and the Corps anticipates having some type of resolution of this problem relatively soon. Additionally, by June 1st, the Corps anticipates having an additional set of hydraulic pumps at the 17th Street Canal to provide 7300 cfs capacity, and increasing the capacity on the London Avenue Canal from 2800 to 4300-4800 cfs. The capacity at the Orleans Avenue Canal is already at or above what can come out of that pumping station. All three gate structures can be closed. Mr. Young then introduced Mr. Paul Hughbanks who will be doing the cultural resource investigations for the permanent pumping stations at the three outfall canals. Mr. Paul Hughbanks, an archaeologist with the Corps of Engineers, explained his job is to facilitate communication with State and Federal agencies who are interested in cultural resources and preservation of those resources to keep projects in compliance with the National Historic Preservation Act. This involves an effort to research and document any cultural resources that may exist within areas that may be impacted by any project undertaken by the Corps. In the case of the outfall canals, background research and investigation of historic maps is being done on potential footprints thus far identified for the permanent pumping stations to determine whether there may be anything there that the Corps needs to be aware of before proceeding with construction at that location, should that be the end result. President McCrossen commented the Board has gone on record favoring placement of the structures as close to the mouth of the canal as

possible, on the north side of Lakeshore Drive; however, the Board is looking to the experts for advice as to where the best place would be. Mr. Young explained, different locations for the pumping stations are being investigated. Meetings have been held with the Lake Pontchartrain Basin Foundation and others. North of Lakeshore Drive is not a favored location for the Lake Pontchartrain Basin Foundation because it takes up lake bottom. The Corps will have to look at the viability of three or four locations on each outfall canal, along with different alternatives. President McCrossen stated the Orleans Levee District would like to remain in the dialog and has asked interested citizens of New Orleans for input. Mr. Young added, meetings have been held with some of the civic associations and the Corps will continue to meet with them throughout the design process. Mr. Kevin Wagner with the Hurricane Protection Office (HPO) of the Corps of Engineers in charge of levees, floodwalls and armoring and the senior project manager for the Orleans Parish, stated Mr. Dennis Hamilton, a representative from the U5 Reach Back Team, will give a presentation on the area between the Seventeenth Street Canal and west side of the Inner Harbor Navigation Canal. The U5 Reach Back team consists of the upper five districts within the Mississippi Valley Division of the Corps of Engineers who are assisting with design efforts for this particular area. Input and feedback was invited from the Orleans Levee District, Entergy and other utility companies, the City of New Orleans, Department of Streets, and other entities on the concepts being considered in this particular reach along Lakeshore Drive. Mr. Dennis Hamilton, Corps of Engineers Project Manager for the U5 Reach Back Team, explained a group from the five districts north of the New Orleans District are working together on this design team. The team wanted to start coordination as early as possible and preliminary design concepts were presented at the recent meeting. One of the next steps will be to discuss these

concepts with the local neighborhood associations for their feedback. Mr. Hamilton then proceeded with the presentation. The goal is to provide protection from storm surge that has a one percent probability of occurring in any given year, which is basically the 100 year storm event. The work will be done in two phases: Phase One will be to raise levees to the authorized elevation, and Phase Two will be to raise the remaining floodwalls, gates and ramps to the final 100 design level or authorized level, whichever is higher. The overall area extends from the Seventeenth Street Canal to the Inner Harbor Navigation Canal. The work has been divided into four distinct reaches for purposes of design and construction: Reach 101 on the western end by the Orleans Marina is being led by the St. Louis District; Reach 102 by the Orleans Canal is led by the Memphis District; Reach 103 between the Orleans and London Avenue Canals is led by the St. Paul District; and Reach 104 from London Avenue to the IHNC is led by the Rock Island District. Design efforts for the gates for all four areas is being led by the Vicksburg District. Reach 101 by the Orleans Marina contains 325 feet of levee and 2600 feet of floodwall, seven gates and no ramps. Reach 102 by the Orleans Canal contains a little over a mile of levee (6,500 feet), no floodwall, and one ramp and one gate at Topaz Street. The Canal Boulevard ramp will require raising to go over the higher levee when constructed. Reach 103 from the Orleans Avenue Canal to London Avenue Canal contains 7,190 feet of levee and 2,330 feet of floodwall, four ramps and one gate, and the sector gate at Bayou St. John. The sector gate is a little lower than required and will have to be raised or replaced at a different location. All work will be completed by 2010, and, if reconstruction is required, the sector gate may be a feature that may take longer than the other features to construct. Also, there is the potential that the sector gate may be replaced by a levee across Bayou St. John rather than a sector gate. Reach 104 from the London Avenue Canal to the IHNC contains 9,400 feet of levee, 3,400 feet of floodwall, four ramps and five gate structures.

Commissioner Saizan requested, relative to Reach 103, that the former Naval Reserve site be included inside of flood protection. Mr. Wagner pointed out that Phase One work is limited to following the existing alignment and footprint, but it had been mentioned and was being looked into. Mr. Hamilton continued the presentation, describing Phase One Construction work, which consists of raising existing levees to authorized grade, modifying I-walls, if necessary, installing concrete pad for scour protection of Iwalls, embankment berm for I-wall stability, scour protection at I-wall transitions into levee, removal of the gate at Topaz Street and replacement with earthen embankment. Phase Two Construction work will consist of raising levees to 100 year level of protection, raising or replacing floodwalls to provide 100 year level of protection, scour protection at transitions of wall to levee, raising or replacing the Sector Gate Structure at Bayou St. John to provide 100 year level of protection, reconstruction of gates to provide 100 year level of protection, raising ramps at Canal Boulevard, Lakeshore Drive at Rail Street, Lake Terrace Drive at Bayou St. John (east side) and Lakeshore Drive at London Avenue Canal, both sides of Elysian Fields traffic circle, Franklin Avenue and Camp Leroy Johnson. Mr. Wagner added, some of the levee sections will be overbuilt to allow for future settlement. Also, there were issues that needed to be worked out with the Department of Streets. There was a brief discussion of the difference between Category 5 protection and 100 year protection, which is less than Category 5 protection. The Corps representatives briefly described the factors in 100 year and Category 5 protection, and advised the Category 5 Study is currently underway. Mr. Spencer commented in his conversations with Mr. Al Naomi of the Corps of Engineers, a levee elevation of 35-ft. was discussed around Lake Borgne for Category 5 protection. Relative to the proposed construction schedule, Mr. Hamilton explained Phase One, consisting mostly of raising earthen levees, will occur in

2007. Phase Two work, which is much more extensive and includes replacement of floodwalls and gates, will continue until 2010; however, it is anticipated that the majority of the work will take place in 2007 and 2008 with a few areas taking longer to finish. Commissioner Saizan asked what Phase One completion meant. Mr. Hamilton replied, the earthen embankment part of the levees will be raised to the authorized level, which is between elevation 18 and 19 in most areas. All floodgates will remain in place and operational during Phase One; during Phase Two, the timing of the replacement of gates will be such that the line of protection will be maintained at all times. Commissioner Green asked the Corps representatives about the other parts of the IHNC protection and the MRGO. Mr. Wagener advised that the MRGO and all projects in Orleans, St. Bernard and Plaquemines Parishes are being handled by the Hurricane Protection Office. There are several IHNC areas that the Corps plans to address. The Corps also has authorization to build the future navigable gates that will address many of the problems in that area. Todays presentation is to give the Board some information on this particular area between the Seventeenth Street Canal and the west side of the IHNC, which is just one aspect of the holistic approach. The Corps will come back to the Board with presentations on the other design efforts. Mr. Hamilton continued, quality control and quality assurances process have been incorporated into the Corps design and construction work. There will be independent technical reviews conducted by a team of Corps of Engineers people from outside of the Mississippi Valley Division. The value engineering process will increase the value and cost effectiveness of projects by looking at ideas the original design team may have overlooked and suggestions made on how to make the project even better. Biddability, constructability, operability and environmental (BCOE) reviews will be conducted at the end of the design process wherein the plans and specifications will be reviewed by the

levee district and other important stakeholders to assure the Corps has a project that meets the needs of the community, are environmentally acceptable and technically feasible. Mr. Hamilton reviewed some of the key issues which are part of the Phase Two work on each of the reaches. In Reach 101 the Corps is considering possible realignment of the floodwall at the Marina and attempting to determine whether there is a better location of the floodwall closer to the water, relocation of gate L-4 closer to the road, abandonment or closure of pedestrian gate L1B, which has not been used in a number of years, modification of the pump station culvert, and possible replacement of gate L1A at the west end of the floodwall with a ramp. In Reach 102 some of the key issues are closure of the Topaz Street Gate and raising the ramp at Canal Boulevard. Also, there is a parking lot south of the Topaz Street gate that could be impacted by the levee raising. The Corps is looking at alternatives that could involve a retaining wall along the parking lot to allow it to remain, however, it is not know whether this would be cost effective. The closure of the Topaz Street gate, if found to be acceptable, could potentially be accomplished in Phase One. The key design issues in Reach 103 from the Orleans Avenue Canal to the London Avenue Canal include the three ramps at Lakeshore Drive at Rail Street, Lake Terrace Drive and Lakeshore Drive at London Avenue Canal, which will increase the road grades and will require coordination with the Department of Streets to assure public safety is maintained, and the sector gate at Bayou St. John. The key design issues in Reach 104 from the Orleans Avenue Canal to the IHNC include ramp alternatives at Lakeshore Drive on each side of the University of New Orleans at Franklin Avenue and Camp Leroy Johnson Drive, the floodwall by UNO where some portions of the floodwall and floodgates may be replaced by a levee section, the Naval Reserve Center alignment and real estate and utility issues that must be coordinated.

Mr. Hamilton added, a number of gates are being looked at as part of the design work, and comparing gates versus ramps to determine the best fit, and minimize operation and maintenance efforts for the Orleans Levee District. Relative to cost, Mr. Wagner explained each situation will be addressed separately; however, anything that is being raised to the authorized grade is 100 percent Federal cost. Relative to the 100 year level, the raising of an existing floodwall will be 100 percent Federal cost. A cost share component for raising levees will be required in the increment between the authorized grade and the 100 year levels; the Corps will have to figure out that incremental cost and inform the Orleans Levee District its share of this Phase Two work. Anything different than the current alignment would require a post authorization change report, which would have to be submitted to Congress for approval, and the Orleans Levee District would pay 30 percent, unless otherwise justified. Mr. Wagner stressed this is the early part of the design phase and these are some alternatives that were brought to the table. The Corps is working on design efforts for other areas. The levee section along the MRGO in the St. Bernard area and New Orleans East from the Michoud Canal to the GIWW is at or above the authorized grade. Relative to monitoring, the Corps conducts annual inspections with the Orleans Levee District and performs periodic surveys of the levees. Mr. Spencer advised his understanding was that State legislation now requires that the centerline surveys of the levees are now required to be done at least once every three years. DOTD and the CPRA are attempting to get funding budgeted from offshore mineral monies to pay LSU to do these surveys via lydar for all levees. President McCrossen noted Lakeshore Drive and the seawall are not part of the federal protection and the expense for maintenance has been borne by the Orleans Levee District. A letter has been written to Congress and the Corps of Engineers requesting their inclusion in the federal project, and an answer has not yet been received.

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Mr. Wagner advised public meetings will be held with the neighborhood associations providing this presentation to make them fully aware of these matters. Ms. Ullmann recognized the presence of Mr. Victor Landry, a former Orleans Levee District Commissioner and currently a special assistant to Colonel Bedey. Mr. Landry explained he retired from the Corps of Engineers, served as a Commissioner and Vice President of the Orleans Levee Board for eight years, and was recently contacted by Evans and Graves Engineers, a consulting engineering firm providing services to the Corps of Engineers, for the hurricane recovery effort. Mr. Landry advised he is a consultant assigned as an assistant to Colonel Bedey in the Hurricane Protection Office, and available to work with the Orleans Levee District staff. President McCrossen thanked Mr. Landry for coming out of retirement to help the community. Mr. Spencer pointed out he stressed at the Charrets meeting the Orleans Levee Districts preference of raising levee crossings along the lakefront, rather than using floodgates, in order to keep Lakeshore Drive open for access. President McCrossen called for a brief recess at 2:33 p.m. The Board reconvened in regular session at 2:50 p.m.. The meeting was called back to order and the Board proceeded with the progress update by the Corps of Engineers on tree removal within the levee section along London Avenue Canal and 17th Street Canal. Mr. Michael Stout, Corps of Engineers Project Manager in charge of tree removal, presented an update on the project. The Orleans Levee District gave the Corps right of entry on the Lakefront and Orleans Avenue Canal levee reaches and that work is in progress. As of today, trees are being removed on the City Park side along the Orleans Avenue Canal, and a number of trees and woody shrubs along the Lakefront Levee will be removed over the next week. The next reach the Corps will be moving on is the London Avenue Canal, and a

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right of entry request has been submitted to the Orleans Levee District for the right to remove the trees that are at the toe or within six feet of the levee toe. Trees that are at the levee toe or within six feet of the levee toe endanger the levee because their root systems invade the levee section. Should a tree be blown over during a storm, there is a significant risk of levee material being removed and weakening the levee at that critical time of the storm event. He cautioned there may be trees beyond the six feet that may be problematic; however, the request is within six feet based on the limit of what State law allows with right-of-way. The Corps is still in Phase One of the tree removal program, which is focused on the trees that most endanger the levees. Therefore, trees with root systems that are known to invade the levee section will be removed first; however, there may be trees beyond that limit that also are a problem for the levee from a standpoint of maintenance and flood fighting, and the possibility of a tree falling on a flood structure. Phase Two, which will not happen until, at the earliest, next year may go beyond the six feet and in many places right-ofway will have to be acquired. Commissioner Hedge-Morrell expressed her concern about the homeowners on Warrenton and Pratt, where some have fences at or a short distance from the levee toe, and referenced her pervious meeting with him. Mr. Stout explained the Corps hopes to remove the subject trees as early as possible, possibility in October, leaving the stumps and root systems for removal after the hurricane season, possibly in January. The Corps will only be gaining access at this time to cut down trees and will not remove fence sections unless required; any fence section that is removed at this time, will be repaired with a temporary patch. Work must still be done at the Corps internally and with Orleans Levee District staff, however, in January it is likely that fences will be removed back to the six foot line due to maintenance requirements. Commissioner Hedge-Morrell explained the homeowners along the levee on Warrenton and Pratt are in the process of making a decision relative to rebuilding. In addition, in the long term additional right-of-way may be required

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along sections of the outfall canals for I-wall support, and it was unfair, one year after Hurricane Katrina, to ask homeowners to stay on hold until the Corps decides whether the right-of-way requirement will be six, nine or twenty feet. The Corps needs to built the strongest flood protection possible along the outfall canals, and in order to do that additional right of way will be required, and sufficient space and property should be acquired now. Commissioner HedgeMorrell further recommended coordination with the LRA and the Road Home program. She reiterated the homeowners need to know before they invest in these properties where there may be a problem. Mr. Stout advised, after meeting with Commissioner Hedge-Morrell, he briefed Colonel Wagener and the Executive staff, and they are aware of this concern. The Corps has been limited because it is trying to do a lot things at oncesome are responsible for the repair and rehabilitation effort, others are responsible for bringing projects to authorized levels, and still others responsible for 100 year protection with whole new features that need to be designed. The Corps is saying under State law trees six feet from the levee toe must be removed. The Corps is saying it is looking at Phase Two of tree removal and other encroachments that may go further. Corps guidelines indicate that a 15 foot corridor from the toe of the levee should be achieved; however, that is not in place in many places in New Orleans. Finally, there is the issue of permanent pump stations and gates, and it is too early to know yet what right-of-way will be required. If the authorization and funds were there, the cleanest thing to do would be to offer everyone who backs into those canals a buy out; however, the Corps does not have that authority at this time and until it can determine an engineering need, it cannot proceed. He assured the Board this concern and need for a solution is very much on the minds of the leadership of the Corps. Commissioner Foley asked when the new pump stations are constructed, whether or not the canals would be insulated from a tidal surge. Mr. Stout explained the new pump stations, as presently planned, do not take the old pump stations out of service, and water will be pumped into

13

the outfall canals as currently done. The Corps will coordinate with the Sewerage and Water Board so that safe water elevations are not exceeded. When the closure structures are closed, the water will have to be pumped again; therefore, water will be in those canals well above the elevation of the surrounding neighborhoods. The normal canal level is the same as the normal lake level, which is zero to 1 ft. above sea level, and the surrounding neighborhoods may be at elevation -3 to -5 ft.; therefore, even in a low water situation, the outfall canal levees and floodwalls act as dam structures. Mr. Stout indicated the possibility of partnering with the LRA is a good idea that should be pursued. Relative to the London Avenue Canal, Mr. Stout explained, neighborhood meetings will be held before proceeding, and the Gentilly Civic Improvement Association has been contacted in this regards. Also, a news release will be issued and notices will be mailed to the property owners and posted on doors to communicate the full extent of what is going on. Mr. Stout concluded, falling on the heels of this, will be efforts to secure the right-of-way along the Seventeenth Street Canal, which the Corps is working engineering analyses on. II. EXECUTIVE SESSION: 1. OLD v. American Airports Lakefront, L.L.C., CDC No. 04-16652; 2. Katrina related litigation; a. West End Tennis Club; 3. The Palms at Lake Marina, L.L.C. v. O.L.B., CDC 2004-1390; 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); 6. Haspel & Davis Milling and Planting Co., Ltd., et al. v. OLB, 25th JDC 31-357; 7. Adams, et al. v. OLB, La 4th Cir. 05-CA-1159. A roll call vote was conducted for the Board to go into Executive Session to hear the items on the agenda, with the majority of the Board voting in favor of going into Executive Session. The Executive Session commenced at 3:15 p.m. The Board reconvened in regular session at 3:36 p.m., and the meeting was called back to order.

14

Ms. Cornelia Ullmann, Interim Counsel, reported no action was taken in the Executive Session. III. APPROVAL OF MINUTES: There were no corrections, additions or deletions to the minutes of the Regular Monthly Board Meeting held on August 18, 2006; therefore, the minutes of the Regular Monthly Board Meeting held on August 18, 2006 were approved as submitted. IV. 1. COMMUNICATIONS: Appointment of Commissioner Cynthia Hedge-Morrell as Chairperson of the Ethics and Policy Committee. Ms. Ullmann announced the appointment of Commissioner Cynthia Hedge-Morrell as Chairperson of the Ethics and Policy Committee. 2. Insurance update. Mr. Gerry Gillen reported staff has met with the insurance adjustors and is moving forward with projects. Estimates have been received from the project architects and engineers, and the insurance carrier for wind damage has acknowledged an additional one million dollars is outstanding and payment will be received soon. The District anticipates exceeding ten million dollars in wind damages. The Board questioned the amounts and delays of the interim payments by the wind damage carrier. President McCrossen suggested the possibility of hiring a public adjustor, having the expertise in adjusting claims and dissecting insurance policies, and who could provide an independent, third party figure on the repairs should the District have to litigate this case. Mr. Gillen explained the initial adjustors provided low numbers. Now, as estimates are provided by the architects and engineers and the projects go to bid, the District has a better understanding of actual costs. Vice President Borne indicated it was now obvious the damages are eight to nine million dollars and could exceed the ten million dollar policy limit.

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He felt this may be a situation that should be turned over to an attorney for a bad faith claim. Ms. Ullmann further explained the District has many properties damaged and is trying to close the claims out building by building providing a complete proof of loss. Also, damages have to be separated as to what part was caused by flood and what was caused by wind, and costs have increased since the damage first occurred. Mr. Gillen added, the excess adjustor will be meeting with staff next week. President McCrossen instructed this matter be followed up and, if the District has estimates from its contractors, a request be made to the insurance carrier, with a copy to the Insurance Commissioner, for at least 50 percent of what is left. Vice President Borne suggested this letter come from the Legal Department. Mr. Louis Capo asked whether the Board wanted a follow up on the hiring of a public adjustor, and President McCrossen responded that would be left to Mr. Capo and Mr. Spencer, the Districts Directors. He further commented this situation has been dragging on far too long, and that every large company that he has spoken to has hired a public adjustor to assist in negotiations. He stated he would like this scenario visited again, as the District needs to settle its claims as quickly as possible and be assured these claims are settled for the proper amounts. Mr. Spencer commented he had spoken to Commissioner Volker who advised that the State would cover the 10 percent local cost share of the FEMA projects. The District, however, has not received this information in writing and has not been informed of the process for application. V. A. MOTIONS: A Resolution Authorizing (i) execution of a $230,752 Promissory Note to FEMA and (ii) pledging collateral for the payment of the Not Exceeding $18,000,000 FEMA Community Disaster Loan.

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President McCrossen commented this is a clarification of a previous amount that had been approved. Commissioner Green stated he would prefer if the District had a letter from the State of Louisiana or FEMA saying that this would not have to be repaid. He felt the District was owed money from FEMA that was not handled in good faith with regards to the housing that was provided and the same thing may happen here; therefore, he did not view this as something that would be released in terms of responsibility and opposed this matter. There was no further discussion on the motion, therefore, Resolution No. 1-092006, offered by Vice President Borne, seconded by Commissioner Green, was adopted, with Commissioners McCrossen, Borne, Foley, Hedge-Morrell and Saizan voting yea, and Commissioner Green voting nay, to-wit: Resolution No. 1-092006 is appended hereto. B. A resolution complying with the provisions of a motion adopted by the Board of Commissioners on May 23, 2006, and incorporated in the minutes of the meeting of the Board of such date establishing criteria for (i) making expenditures to be paid or reimbursed by draws on FEMA CDL Loan proceeds and (ii) requiring staff giving the Board advance notice of intent to make a CDL Loan draw; authorizing a FEMA CDL Loan Proceeds draw; and other matters in connection therewith. There was no discussion on the motion, therefore, Resolution No. 2-092006, offered by President McCrossen and Vice President Borne, seconded by Commissioner Saizan was adopted, with Commissioners McCrossen, Borne, Foley, Hedge-Morrell and Saizan voting yea, and Commissioner Green voting nay, to-wit: MOTION: RESOLUTION: BY: 2-092006 2-092006 President Michael P. McCrossen and Vice President Allen H. Borne Chairperson, Finance Committee Commissioner Darrell J. Saizan, Jr. September 20,2006

SECONDED BY:

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RESOLUTION A resolution complying with the provisions of a motion adopted by the Board of Commissioners on May 23, 2006, and incorporated in the minutes of the meeting of the Board of such date establishing criteria for (i) making expenditures to be paid or reimbursed by draws on FEMA CDL Loan proceeds and (ii) requiring staff giving the Board advance notice of intent to make a CDL Loan draw; authorizing a FEMA CDL Loan Proceeds draw; and other matters in connection therewith. WHEREAS, the Board of Commissioners (the Board) of the Orleans Levee District (the District) in connection with the adoption of Resolution No. 2-052306 included language in the preambles of said resolution as follows: 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. (the Drawing Criteria). WHEREAS, the Staff wants to comply with the Drawing Criteria and obtain the authority of the Board to make the first draw pursuant under the FEMA CD Loan proceeds available to the District and the Board desires to authorize the staff to make a draw under the FEMA CD Loan to pay the operating expenses enumerated below: SECTION 1. Staff Advises Board of Expenditures to be Reimbursed with FEMA CD Loan Proceeds. The staff of the District hereby advises the Board that it has paid the following enumerated operating expenses of the District which it intends to reimburse with proceeds of drawing number 1 under amounts available to the District under FEMA CD Loans: Salaries and Benefits for the period September 2, 2005 through June 2, 2006, but limited to the amounts authorized under the loan provisions: $9,560,280. SECTION 2. Approval Authority to Make Draw on FEMA CD Loan. The Board does hereby authorize and approve the appropriate officers and members of the staff of the Board and the District to make one or more draws under the FEMA CD Loan(s) available to the District in an amount not to exceed $9,560,280 to be used to pay and/or reimburse the operating expenses of the District enumerated in Section 1 above. SECTION 3. Other Required Actions. The President of the Board, the appropriate officers and employees of the Board and the District and the

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consultants to the District are hereby authorized and directed to take all actions necessary or appropriate to issue, sell and deliver the Notes and to effect the purposes of this resolution. SECTION 4. Repealer. Any provision of any resolution of the Board of Commissioners which is in conflict with the provisions of this resolution, including without limitation the Authorizing Resolution are hereby repealed in part to the extent of such conflict. AYES: Commissioners McCrossen, Borne, Foley, Hedge-Morrell and Saizan Commissioner Green Commissioners Hatfield and Voelker Yes

NAYS: ABSENT:

RESOLUTION ADOPTED: C.

To revoke the policy for new 30-year leases for the boathouses in the Orleans Marina as provided by Resolutions Nos. 2-092000, 1-111500 and 4-072005, effective close of business (4:30 p.m.) Friday, September 29, 2006, unless written notice to the Orleans Levee District is received prior to that time and date, receipt of which is acknowledged by the Orleans Levee District. Vice President Borne offered a motion to amend the resolution to

change the effective date for revoking the policy to close of business (4:30 p.m.) Friday, September 29, 2006, which was seconded by Commissioner Saizan, and unanimously adopted. There was no further discussion on the motion as amended, therefore, Resolution No. 3-092006, offered by Commissioner Saizan, seconded by Commissioner Foley, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 3-092006 3-092006 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Commissioner Dan S. Foley September 20, 2006 RESOLUTION WHEREAS, the Orleans Levee District leased the water bottoms and land on South Roadway and West Roadway in the Orleans Marina for a primary term of twenty (20) years, commencing in 1971 or 1972 and expiring in

SECONDED BY:

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1991 or 1992, and said leases were subsequently amended to authorize extensions of the leases to the year 2006 or 2007, and WHEREAS, by Resolutions Nos. 2-092000 and 1-111500, adopted on September 20, 2000 and November 15, 2000, respectively, the Board approved the recommendations on rental rates and general terms for the Orleans Marina leases contained in the Reports submitted by the OLD Staff, the Boards Real Estate Consultant and Legal Counsel, for amendment of said leases to provide for three additional five-year options, and included the offer of a new 30year lease, and WHEREAS, after adoption of the aforementioned resolutions, a number of tenants in the Orleans Marina executed the lease amendment or new 30 year lease, and WHEREAS, by Resolution No. 4-072005, dated July 20, 2005, the Board adopted a policy that the new 30-year lease be made available for the leases in the Orleans Marina, except for those tenants who previously executed new leases and leases involved in litigation with the Orleans Levee Board, under the terms and conditions previously approved by the Board and subject to the following conditions: adjustment of the previously approved per square footage rental rate by the percentage CPI increase between October 2000 and the date of lease execution and payment of a lease renewal fee of $10,000.00 per lease, and WHEREAS, the Board further expressly reserved the right in Resolution No. 4-072005 to revoke said policy or make changes and modifications to said policy at any time as deemed appropriate in the sole discretion of the Board. BE IT HEREBY RESOLVED, That the Board hereby revokes the aforementioned policy for new 30-year leases as provided by the above mentioned Resolutions, effective close of business (4:30 p.m.) Friday,

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September 29, 2006, unless written notice to the Orleans Levee District is received prior to that time and date, receipt of which is acknowledged by the Orleans Levee District. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Green, Hedge-Morrell and Saizan None Commissioners Hatfield and Voelker

RESOLUTION ADOPTED: Yes Commissioner Green asked what would happen should the District not hear a response by that date. Ms. Ullmann responded that the option for the thirty year lease would be off the table. Vice President Borne pointed out that the complexities of this issue would require further discussion at a Committee meeting. D. To approve a new Lease Agreement with Ochsner Clinic Foundation for Store No. 9 at the Lake Vista Community Center, with a primary term of two years, commencing January 1, 2007, at the fair market value rental rate of $23,141.25 per annum, plus a 42 percent pro-rated share of electrical charges for Stores Nos. 8 and 9 as additional rental; and to authorize the President or Director of Real Estate, Recreational and NonFlood Assets or the Director of Hurricane and Flood Protection to sign any and all documents necessary to carry out the above. There was no discussion on the motion, therefore, Resolution No. 4-092006, offered by Commissioner Saizan, seconded by Commissioner Foley, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 4-092006 4-092006 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Commissioner Dan S. Foley September 20, 2006 RESOLUTION WHEREAS, by Resolution No. 3-081804, the Board approved the assignment of the Lease Agreement with Tebbe Medical, P.C., to Ochsner Clinic

SECONDED BY:

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Foundation effective September 1, 2004, for Store No. 9 at the Lake Vista Community Center (6521 Spanish Fort Blvd.), said lease agreement being for a term of four years, commencing January 1, 2003 and ending on December 31, 2006, and WHEREAS, Ochsner Clinic Foundation has requested a new lease for said space, with a term of two years, commencing January 1, 2007 and ending on December 31, 2008, and WHEREAS, the current fair market value rental rate for Store No. 9 is $13.75 per square foot, or $23,141.25 per annum, payable at $1,928.44 per month, plus a prorated share equal to forty-two percent (42%) of the electrical charges for Stores Nos. 8 and 9, as additional rental. BE IT HEREBY RESOLVED , That the Board approves a new Lease Agreement with Ochsner Clinic Foundation for Store No. 9 with a primary term of two years, at the aforementioned rental rate, plus pro-rated share of electrical charges. BE IT FURTHER RESOLVED, That the President or Director of Real Estate, Recreational and Non-Flood Assets or the Director of Hurricane and Flood Protection be authorized to sign any and all documents necessary to carry out the above. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Green, Hedge-Morrell and Saizan None Commissioners Hatfield and Voelker Yes

RESOLUTION ADOPTED: E.

To approve a one year extension of the lease with the New Orleans Mosquito Control Board for property on the southeast corner of Lakefront Airport; and to authorize the President, Director of Real Estate, Recreational and Non Flood Assets or Director of Aviation to sign any and all documents necessary to carry out the above. There was no discussion on the motion, therefore, Resolution No.

5-092006, offered by Commissioner Saizan, seconded by Commissioner Green, was unanimously adopted, to-wit: MOTION: 5-092006

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RESOLUTION: BY:

5-092006 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Commissioner Eugene J. Green, Jr. September 20, 2006 RESOLUTION

SECONDED BY:

WHEREAS, the New Orleans Mosquito Control Board (Mosquito Control) currently leases property on the southeast corner of Lakefront Airport, with said lease expiring on February 18, 2006, and WHEREAS, by letter dated November 22, 2005, Mosquito Control expressed a desire to renew said lease for 20 years, and WHEREAS, the aforementioned property is located in the extended obstacle free area (OFA) and runway protection zone (RPZ) at the east end of Runway 9/27, and extension of the lease may require an airspace study and/or FAA approval, and WHEREAS, the Planning, Engineering and Construction Committee considered the aforementioned request, and because the New Orleans Mosquito Control Board provides valuable services to the community, particularly in the aftermath of Hurricane Katrina, a one-year extension of the primary lease to allow for continuing operations and time for recovery was recommended for Board approval. BE IT HEREBY RESOLVED, That the Board approves a one year extension of the aforementioned lease with the New Orleans Mosquito Control Board. BE IT FURTHER RESOLVED, That the President, Director of Real Estate, Recreational and Non Flood Assets or Director of Aviation be authorized to sign any and all documents necessary to carry out the above. AYES: NAYS: Commissioners Borne, Foley, Green, Hedge-Morrell and Saizan None

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ABSENT:

Commissioners Hatfield and Voelker Yes

RESOLUTION ADOPTED:

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F.

To approve a lease with The Flight Academy for approximately 2,000 square feet of space on the east wing of the second floor of the Lakefront Airport Terminal Building at $6.00 per square foot per annum, or approximately $12,000 per annum, for a period of one year, extended monthly by mutual agreement, subject to standard terms and conditions for leases at the Airport; and to authorize the President, Director of Real Estate, Recreational and Non-Flood Assets, or the Director of Aviation to sign any and all documents necessary to carry out the above. Mr. Albert Pappalardo, Real Estate Consultant, advised the one

year lease would contain a provision that the tenant may be moved so as not to delay or impede the intended renovation work on the second floor of the terminal building. There was no further discussion on the motion, therefore, Resolution No. 6-092006, offered by Commissioner Saizan, seconded by Commissioner Hedge-Morrell, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 6-092006 6-092006 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Commissioner Cynthia Hedge-Morrell September 20,2006 RESOLUTION WHEREAS, the Orleans Levee District owns and operates New Orleans Lakefront Airport , which is located on the South Shore of Lake Pontchartrain in eastern New Orleans, and WHEREAS, on August 29, 2005 Hurricane Katrina struck southeastern Louisiana causing catastrophic flooding and damage within the City of New Orleans, and WHEREAS, only the East wing of the second floor of the Terminal Building is in a condition for lease, and WHEREAS, The Flight Academy has requested to lease the East wing of the second floor of the terminal building for offices and classrooms for a flight school, and

SECONDED BY:

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WHEREAS, The Flight Academy of New Orleans proposes to lease approximately 2,000 square feet at $6.00 per square foot per annum for a period of one year, extended monthly by mutual agreement, subject to standard terms and conditions for leases at the Airport. BE IT HEREBY RESOLVED, That the Board approves the proposed lease with The Flight Academy for approximately 2,000 square feet of space on the second floor of the Terminal Building at $6.00 per square foot per annum for approximately $12,000 per annum. BE IT HEREBY 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. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Green, Hedge-Morrell and Saizan None Commissioners Hatfield and Voelker Yes

RESOLUTION ADOPTED: G.

To approve a budget increase in the amount of $35,100 for the Lakefront Airport Fuel Farm Tank and Mechanical Repair Project to provide for additional damage discovered in the interior of the jet fuel tank; and to authorize the President or Director of Real Estate, Recreational and NonFlood Assets or the Director of Hurricane and Flood Protection to sign any and all documents necessary to carry out the above. Mr. Gillen reported the work is in progress with completion

anticipated within two weeks, and should not exceed the requested amount. There was no further discussion on the motion, therefore, Resolution No. 7-092006, offered by Commissioner Saizan, seconded by Commissioner Green, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 7-092006 7-092006 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Commissioner Eugene J. Green, Jr.

SECONDED BY:

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September 20, 2006 RESOLUTION WHEREAS, by Resolution No. S5-013106, the Board awarded a contract to Lou-Con Construction, Inc. in the amount of $118,590, and established a budget in the amount of $136,000 to include contingencies, for the Lakefront Airport Fuel Farm Tank and Mechanical Repair Project, and WHEREAS, in the process of the contract work, an inspection was made to the interior of the jet fuel tank, and additional damage was discovered, and WHEREAS, the insurance adjuster for National Union Fire has been notified and has verbally approved proceeding with the additional interior work repairs, and WHEREAS, in order to complete the damage repairs, the budget limit as set forth by OLD Public Works Policy of 15 percent over the contract amount must be increased by $35,100. BE IT HEREBY RESOLVED , That the Board approves a budget increase in the amount of $35,100 for the Lakefront Airport Fuel Farm Tank and Mechanical Repair Project. BE IT FURTHER RESOLVED, That the President or Director of Real Estate, Recreational and Non-Flood Assets or the Director of Hurricane and Flood Protection be authorized to sign any and all documents necessary to carry out the above. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Green, Hedge-Morrell and Saizan None Commissioners Hatfield and Voelker Yes

RESOLUTION ADOPTED: H.

To authorize a revision, effective this date and to continue for a period of one year, of Section 4.1.1. of the Orleans Levee District Policy and Administrative Guidelines for Issuance of Pubic Works Construction Contracts and Change Orders, to provide that the President, Director of Hurricane and Flood Protection, Director of Real Estate, Recreational and Non-Flood Assets or the Chief Engineer shall have the authority to enter into informal contracts over $10,000 and less than $50,000, and that said

27

contract award be reported at the next meeting of the Planning, Engineering and Construction Committee. Ms. Ullmann advised, should this resolution be adopted, the next motion on the Boards agenda (Motion No. 9-092006) would be unnecessary. There was no further discussion on the motion, therefore, Resolution No. 8-092006, offered by Commissioner Saizan, seconded by Vice President Borne, was adopted, with Commissioners Borne, Foley, Hedge-Morrell and Saizan voting yea, and Commissioner Green voting nay, to-wit: MOTION: RESOLUTION: BY: 8-092006 8-092006 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Vice President Allen H. Borne, Jr. September 20, 2006 RESOLUTION WHEREAS, the Engineering Department prepares scope of services for Major Maintenance and Capital Improvement Project bids usually requiring urgent attention, and WHEREAS, the current policy limits for projects between $10,000 and $50,000 is below the Louisiana Public Bid Law threshold, and WHEREAS, the current policy is causing delays for the award of urgent projects within this range, and WHEREAS, Article 4.1.1 of the Districts Public Works Policy provides that the Executive Director or the Chief Engineer shall have the authority to enter into informal contracts over $10,000 and less than $50,000, only after having obtained Board approval, and Article 4.1.3 addresses the obtaining of bids for such informal contracts, and WHEREAS, in order to expedite repair of Orleans Levee Districts properties, a revision of said policy is required so that the President, Director of Hurricane and Flood Protection, Director of Real Estate, Recreational and Non-

SECONDED BY:

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Flood Assets or Chief Engineer be allowed to award a letter contract to the lowest responsible bidder for projects over $10,000 and less than $50,000 and report said informal contract award at the next meeting of the Planning, Engineering and Construction Committee, and WHEREAS, in the months following Hurricanes Katrina and Rita, pursuant to the Executive Orders of the Governor, the District followed the Executive Orders in order to accomplish emergency work required on a timely basis, and WHEREAS, the Planning, Engineering and Construction Committee at its meeting on September 6, 2006 reviewed the need for such a revision to the policy and recommended implementation of said revision for a period of one year. BE IT HEREBY RESOLVED, That Section 4.1.1. of the Orleans Levee District Policy and Administrative Guidelines for Issuance of Pubic Works Construction Contracts and Change Orders be revised, effective this date and to continue for a period of one year, to read as follows: 4.1.1 Authorization and Reporting To provide needed flexibility in conducting the business of the District, the President, Director of Hurricane and Flood Protection, Director of Real Estate, Recreational and Non-Flood Assets or the Chief Engineer shall have the authority to enter into informal contracts over $10,000 and less than $50,000, and that said contract award be reported at the next meeting of the Planning, Engineering and Construction Committee. Successive contracts for related work are not authorized. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Hedge-Morrell and Saizan Commissioner Green Commissioners Hatfield and Voelker Yes

RESOLUTION ADOPTED: I.

To approve or ratify public works projects contracts awards for contracts over $10,000 and less than $50,000, as indicated in this Resolution, and to authorize the President, Director of Hurricane and Flood Protection or Chief Engineer to execute any and all documents necessary to accomplish the above. President McCrossen withdrew Motion No. 9-092006.

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J.

To approve and authorize the outsourcing of the Districts payroll function to ADP, at a one-time setup fee of $5,000, and annual cost not to exceed $30,000; and to authorize the President or the Director of Real Estate, Recreation and Non-Flood Assets to sign any and all documents necessary to accomplish the above. There was no discussion on the motion, therefore, Resolution No.

9-092006, offered by Vice President Borne, seconded by Commissioner Saizan, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 10-092006 9-092006 Vice President Allen H. Borne, Jr. Chairperson, Finance Committee Commissioner Darrel J. Saizan, Jr. September 20, 2006 RESOLUTION WHEREAS, in an ongoing effort to improve efficiency and reduce costs, the District explored options for outsourcing the current in-house weekly payroll function, and WHEREAS, as part of the outsource function, the District will be moving from a weekly payroll to a biweekly payroll, and WHEREAS, as part of the Districts overall disaster recovery plan, the outsourcing of the payroll function should provide a continuous means of payment to employees in the case of a catastrophic event, and WHEREAS, the District received five proposals and has selected ADP to provide the bi-weekly payroll function, and WHEREAS, the cost for the payroll services are a one-time setup fee of $5,000, and annual cost not to exceed $30,000, and WHEREAS, funding for these services is available in the Fiscal Year 2007 budget from reduction in Personal Services. BE IT HEREBY RESOLVED, That the Board approves and authorizes the outsourcing of the Districts payroll function to ADP.

SECONDED BY:

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BE IT FURTHER RESOLVED, That the President or the Director of Real Estate, Recreation and Non-Flood Assets be authorized to sign any and all documents necessary to accomplish the above. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Green and Saizan None Commissioners Hatfield, Hedge-Morrell and Voelker Yes

RESOLUTION ADOPTED: K.

To approve a lease with Environmental Engineers, Consultants and Contractors (EE&G) for approximately 80,000 square feet of paved parking at Lakefront Airport at the rate of approximately $3,666 per month for maintenance, vehicle and equipment storage for a period of 90 days, extended monthly by mutual agreement, subject to standard terms and conditions for leases at the Airport; and to authorize the President, Director of Real Estate, Recreational, and Non-Flood Assets, or the Director of Aviation to sign any and all documents necessary to carry out the above Mr. Bob Maureau, Administrative Director, advised this is an

opportunity for additional revenues for Airport property that is not currently in use. This would be a standard Airport lease at the standard rental rate. Commissioner Foley asked the requirements for liability insurance. Ms. Carol Kiefer responded, all lessees are required to have a minimum of one million dollars of general liability insurance coverage, one million dollars of auto liability insurance coverage, Workers Compensation coverage, name the Orleans Levee District as an additional insured on general and auto liability insurance coverages, and provide a waiver of subrogation and a 30-day cancellation clause on all insurance coverages. There was no further discussion on the motion, therefore, Resolution No. 10-092006, offered by President McCrossen, seconded by Commissioner Saizan, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: SECONDED BY: 11-092006 10-092006 President Michael P. McCrossen Commissioner Darrel J. Saizan, Jr. September 20, 2006

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RESOLUTION WHEREAS, the Board owns and operates New Orleans Lakefront Airport, which is located on the south shore of Lake Pontchartrain in eastern New Orleans, and WHEREAS, on August 29, 2005 Hurricane Katrina struck southeastern Louisiana causing catastrophic flooding and damage within the City of New Orleans, and WHEREAS, Environmental Engineers, Consultants and Contractors (EE&G) authorized to do business in Louisiana, has been authorized by FEMA to segregate ineligible debris from the debris piles and transport to an authorized site, and WHEREAS, EE&G has requested to lease approximately 80,000 square feet of paved parking for maintenance, vehicle and equipment storage used in the removal of debris, and WHEREAS, EE&G proposes to lease the area at standard rates of $0.55 per square foot per annum for paved parking for a period of 90 days, extended monthly by mutual agreement, subject to standard terms and conditions for leases at the Airport, and WHEREAS, the parking is not presently being used for aviation purposes and it is the recommendation of the Director of Aviation that the lease be approved. BE IT HEREBY RESOLVED, That the Board approves the proposed lease with EE & G for approximately 80,000 square feet of paved parking at the rate of approximately $3,666 per month. 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. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Green and Saizan None Commissioners Hatfield, Hedge-Morrell and Voelker

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RESOLUTION ADOPTED: V. A. 1. COMMITTEE REPORTS:

Yes

STANDING COMMITTEES: 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 Construction Committee: Minutes of joint Committee meeting were included in agenda packet.

B. 1.

SPECIAL COMMITTEES: Legal Committee: Minutes of Committee meeting were included in agenda packet.

VI.

PUBLIC COMMENTS: Commissioner Green stated, despite media pressure, he hoped the

Board would stand firm on the issue relative to the lighthouse, which is more complex than just turning over the lighthouse to an organization that is not based in New Orleans, and he felt the public should have an opportunity to participate in some sort of request for proposals relative to that structure. President McCrossen commented Legal Counsel has looked into some of the legal ramifications, and agreed it is a complex issue. Ms. Ullmann pointed out the property is owned and controlled by the General Services Administration, who must first turn over control. Commissioner Foley asked for a copy of the document executed between the Board and the U.S. Government. He questioned whether there was a reversionary clause in that document which would allow the property to be returned to the Orleans Levee District should it no longer be used for the intended purpose. He felt, should the property revert to the Orleans Levee District, the Boards Real Estate Consultant should determine the best economic use of the property, and the Board and people from a public policy standpoint

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determine whether there is a public purpose that might militate against seeking top dollar to lease the property because there may be a greater purpose by making it available to the public. VII. 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 4:10 p.m. Respectfully submitted,

_________/S/____________________ LOUIS J. CAPO, SECRETARY I, Louis J. Capo, Secretary of the Board of Commissioners of the Orleans Levee District do hereby certify that the foregoing is a true and correct copy of the minutes of the Board meeting of September 20, 2006.

___________/S/___________________ LOUIS J. CAPO, SECRETARY

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