MINUTES OF THE REGULAR MONTHLY BOARD MEETING OF THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT AUGUST 16,

2006 PAGE 35: The Corps will begin a phase one study for tree removal along the London and Seventeenth Street Canals.

MINUTES OF THE REGULAR MONTHLY BOARD MEETING OF THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT AUGUST 16, 2006

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT AUGUST 16, 2006 ACTION PAGE

ROLL CALL. ...................................................................................................... 1 PLEDGE OF ALLEGIANCE. .............................................................................. 2 OPENING REMARKS AND PRESENTATIONS: 1. Presentation by representative of the U.S. Army Corps of Engineers on Task Force Guardian/Hope ........................................................................... 2 MOTIONS: *To express the Boards gratitude and appreciation to Councilmember Cynthia Willard-Lewis for the hard work, dedication and support provided during her tenure as an Orleans Levee Board Commissioner. ............ 3 * A resolution supplementing and amending a resolution adopted on January 18, 2006 which authorized the issuance, sale and delivery of not exceeding $10,000,000 Orleans Levee District Revenue Anticipation Notes, (FEMA Community Disaster Loan Program) so as to increase the amount to be borrowed to an amount not exceeding $18,000,000; and other matters in connection therewith. ................................... 6 *A resolution authorizing (i) execution of a $5,984,068 Promissory Note to FEMA and (ii) pledging collateral for the payment of the Not Exceeding $18,000,000 FEMA Community Disaster Loan. ................................ 9 *A resolution authorizing (i) execution of a $671,734 Promissory Note to FEMA and (ii) pledging collateral for the payment of the Not Exceeding $18,000,000 FEMA Community Disaster Loan................................................... 10 *To authorize and approve a settlement payment to the Orleans Levee District in the amount of $20,000.00 to settle Civil District Court Case No. 2004-1390, The Palms at Lake Marina, L.L.C. v. the Orleans Levee Board, subject to the review and approval of the wording of the consent judgment by the Boards Real Estate Consultant, Mr. Albert Pappalardo, and the Boards Legal Department, with each party to bear the cost of its own legal fees and expenses; and to authorize the President, Director of Real Estate, Recreational and Non-Flood Assets or Interim Counsel to sign any and all documents necessary to carry out the above............................................................................................................ 10 *To approve and authorize the substitution of the Director for Hurricane and Flood Protection and/or the Director for Real Estate, Recreational and Non-Flood Assets, as appropriate, in lieu of Executive Director, in the Boards Bylaws and Policies and Procedures............................................... 12 *Denotes approval

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT AUGUST 16, 2006 ACTION PAGE

*To approve a new lease with Mr. Larry Talamo (State Farm Insurance) for Space A at the Lake Vista Community Center (6506 Spanish Fort Blvd.) (1,340 sq. ft.) at the current fair market value rental rate of $14.00 per sq. ft., for a primary term of three years, commencing September 1, 2006, with two three-year options; to approve the mutual termination of the lease dated October 18, 2001 for Store No. 2 (6504 Spanish Fort Blvd.) (895 sq. ft.), conditioned upon the execution of a new lease for Space A, with an effective date mutually agreeable to the Lessee and Districts staff subsequent to the effective date of the lease for Space A; and to authorize the President or Director of Real Estate, Recreational and Non-Flood Assets to sign any and all documents necessary to carry out the above............................................................................................. 14 Consideration of approval of transfer of lease for Boathouse N-28 from John Herzog to David Branton............................................................................ 16 To revise Section 4.1.1. of the Orleans Levee District Policy and Administrative Guidelines for Issuance of Pubic Works Construction Contracts and Change Orders to allow award of a contract to the lowest responsible bidder by the President, Director of Hurricane and Flood Protection or Chief Engineer for projects over $10,000 and less than $50,000 and the reporting of said informal contract award at the next meeting of the Planning, Engineering and Construction Committee................... 16 *To authorize the President or Director of Hurricane and Flood Protection to sign any and all documents necessary for the assignment by Electrocom, Inc. of its rights to the Orleans Levee District to leased space on Pinnacles Benefit Street tower for the Districts radio repeater station used for communications by Police and field yard personnel, and to enter into an agreement with Pinnacle Towers, L.L.C. for said usage, subject to review and approval of said documents by the Districts Legal Department; and to approve the establishment of funding in the SLIP Fund Budget on an annual basis sufficient to fund the rental and maintenance fees for the Districts usage of said tower............... 17 *Denotes approval COMMITTEE REPORTS: STANDING COMMITTEES: 1. Ethics and Policy Committee ........................................................................ 18 2. Executive Committee .................................................................................... 19 3. Finance Committee and Planning, Engineering and Construction Committee ................................................................................ 19 SPECIAL COMMITTEES: 1. Legal Committee .......................................................................................... 19

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THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT AUGUST 16, 2006 ACTION COMMUNICATIONS: 1. Presentation by NOLATOWN / IPPC............................................................. 19 APPROVAL OF MINUTES: Approval of minutes of Regular Monthly Board Meeting held on July 19, 2006. ..................................................................................................... 25 COMMUNICAITONS: 2. Comments by President McCrossen ............................................................. 25 PUBLIC COMMENTS......................................................................................... 26 COMMUNICATIONS: 3. Report from Director of Hurricane and Flood Protection and Director of Real Estate, Recreational and Non-Flood Assets.......................................... 27 ADJOURNMENT ............................................................................................... 31 PAGE

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THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MINUTES OF REGULAR MONTHLY BOARD MEETING AUGUST 16, 2006 __________________________________________________________ The regular monthly meeting of the Board of Commissioners of the Orleans Levee District was held on Wednesday, August 16, 2006, at 1:26 p.m., in the Second Floor Hall of the Lake Vista Community Center, 6500 Spanish Fort Boulevard, New Orleans, Louisiana, after due legal notice of the meeting was sent to each Board member, the news media, and a copy of the agenda was posted. President McCrossen called the meeting to order. The roll was called and since a quorum was not yet present, President McCrossen asked that the Corps of Engineers begin their presentation. During the Corps of Engineers presentation, two additional Commissioners arrived, which constituted a quorum. PRESENT: The Honorable Michael P. McCrossen, President The Honorable Allen H. Borne, Jr., Vice President The Honorable Eugene J. Green, Jr., Commissioner (arrived 1:35 p.m.) The Honorable Brenda Hatfield, Commissioner (arrived 1:33 p.m.) The Honorable Darrel J. Saizan, Jr., Commissioner The Honorable Cynthia Willard-Lewis, Commissioner ABSENT: The Honorable Dan S. Foley, Commissioner The Honorable David R. Voelker, Commissioner ALSO PRESENT: R. A. Glapion, Citywide Testing Kimberly Nunez, R.C. Lambert Consulting Engineers Hamid Alizadeh, Shaw Roy Mack, Louisiana Economic Development Carliss Knesel, Hancock Bank Fred Young, U.S. Army Corps of Engineers Ann Duffy, Lake Oaks Neighborhood Rickey Spearman, NOLATOWN Carey Smith, IPPC, Inc. Samuel Banks, IPPC, Inc.

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MINUTES OF THE REGULAR MONTHLY BOARD MEETING AUGUST 16, 2006 __________________________________________________________

ALSO PRESENT: Keonic A. Smothers, NOLATOWN Glen A. Broom, NOLATOWN Frank Donzie, Times Picayune 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 Gerry Gillen, Engineering Department Frank Milanese, Attorney Robert Maureau, South Shore Harbor Wilma Heaton, Executive Department Mr. Louis Capo led in the pledge of allegiance. I. 1. OPENING REMARKS AND PRESENTATIONS: Presentation by representative of the U.S. Army Corps of Engineers on Task Force Guardian/Hope. Mr. Frederick Young with the Hurricane Protection Office (HPO) of the U.S. Army Corps of Engineers (Corps) explained, currently, the Memphis, Rock Island, St. Louis, St. Paul and Vicksburg Districts of the Corps are working on levee raising and flood protection from the Seventeenth Street Canal to the Inner Harbor Navigation Canal (IHNC). The HPO is putting together a contract for the work around New Orleans East, and other work in the St. Bernard area has been assigned to architect/engineering consultants. The HPO is also working on the three pumping stations at the confluence of each of the outfall canals, and a set of structures at the Seabrook and IHNC area for the Mississippi River Gulf Outlet (MRGO) / Gulf Intracostal Waterway (GIWW). A meeting will be held on Monday, with representation from the Orleans Levee Districts Engineering Department, on the final conceptual ideas for the three pumping

stations at the outfall canals. The HPO is working on the remaining six contracts in the New Orleans area, consisting of the three breach contracts on the outfall canals and the three interim closure structures at the three outfall canals. Mr. Young reported the pumping stations at the Orleans and London Avenue Canals are approximately 98 percent complete; the pumps can be run, however, some electrical and mechanical work remains. The pumps are being tested at the 17th Street Canal; the portable pumps have been moved to the top of the structure, which the Corps anticipates to be working in a week or two and will eliminate the pumps at the Hammond Highway Bridge. Relative to the interior pumping stations, Mr. Young explained, pumps will be taken off line one or two at a time at each existing Sewerage & Water Board pump station, tested and rewound or repaired, and placed back on line. Other work is also involved repairing generators, machinery and electrical equipment. Work at HPO is anticipated to be accomplished to an interim level by June 2007, and to one hundred year FEMA elevations by 2010. In that work will be the repair of the pumping stations in Orleans, Jefferson, Plaquemines and St. Bernard Parishes. II. A. MOTIONS: To express the Boards gratitude and appreciation to Councilmember Cynthia Willard-Lewis for the hard work, dedication and support provided during her tenure as an Orleans Levee Board Commissioner. The Board recognized Commissioner Willard-Lewis service to the District by presenting a plaque, which read, The Board of Commissioners of the Orleans Levee District presents Special Recognition and Appreciation to the Honorable Cynthia Willard-Lewis for her devoted service to the citizens of New Orleans as a Commissioner and Chairperson of the Finance Committee. Her leadership and concern provided positive accomplishments benefiting all people of New Orleans from January 5, 2001 August 16, 2006. President McCrossen commented, although Commissioner WillardLewis was extremely busy as a City Councilmember, she devoted time and

energy to the Orleans Levee District, with contributions that could not be replaced, and thanked Commissioner Willard-Lewis for her service. Commissioner Hatfield stated Commissioner Willard-Lewis has been a dear colleague and friend for many years and wherever she serves, she serves with extreme dedication to the community, and thanked Commissioner Willard-Lewis for all she has done. Commissioner Saizan commented Commissioner Willard-Lewis has done an excellent job, and even though she was extremely busy had attended meetings and has stood up especially for those most impacted by the hurricane in Districts D and E, and thanked her for her service. Vice President Borne stated he admired Commissioner WillardLewis, who successfully lead the charge on many issues, and will be missed by the Board. Commissioner Green stated it had been a pleasure working on the Board with Commissioner Willard-Lewis, and it was inspiring to see how committed she is to New Orleans East and assuring flood protection for the New Orleans East and Lower Ninth Ward areas. He commented he also had the pleasure of working with Commissioner Willard-Lewis over the past years as head of Economic Development for the City and President of the New Orleans Regional Business Park and witnessed her enthusiasm in helping the citizens of New Orleans improve the quality of their lives. Her general concern about the citizens of New Orleans reflected positively on her work as a Commissioner of this Board, and Commissioner Green stated he looked forward to continuing to work with her in the community. Commissioner Willard-Lewis stated earlier today ground was broken in the Lower Ninth Ward for a tribute that will speak to an interpretative experience of what the families in that area suffered on August 29th. She thanked the Board for its tribute, and spoke of the coming transition to her appointment to the Sewerage and Water Board. She stated it was a pleasure to work and labor with the Commissioners and staff of the District, which have a

legacy of commitment. She noted the work that has been done on this Board will be the foundation from which new developments will rise, having the highest and best standards, and that this Board has reached out into the community to assure all of the assets benefit the neighborhoods. She added it was an honor to have served with the outstanding men and women both on this and previous boards. There was no further discussion on the motion, therefore, Resolution No. 1-081606, offered by President McCrossen, seconded by Commissioner Saizan, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: SECONDED BY: 1-081606 1-081606 President Michael P. McCrossen Commissioner Darrel J. Saizan, Jr. August 16, 2006 RESOLUTION WHEREAS, Councilmember Cynthia Willard-Lewis was elected to the New Orleans City Council in October, 2000, and, among her numerous appointments, duties and responsibilities, was appointed to serve on the Board of Commissioners of the Orleans Levee District on January 5, 2001, and WHEREAS, Commissioner Willard-Lewis worked untiringly in the service of both the citizens of New Orleans and the Orleans Levee District, continuously striving to better the lives of the residents of New Orleans and the region, and WHEREAS, Commissioner Willard-Lewis past six yeas of devoted service as a member of the Board, and in particular the leadership provided as Chairperson of the Boards Finance Committee, resulted in many positive accomplishments benefiting both the citizens of New Orleans and the Orleans Levee District. BE IT HEREBY RESOLVED , That the Board hereby expresses its gratitude and appreciation to Councilmember Cynthia Willard-Lewis for the hard

work, dedication and support provided during her tenure as an Orleans Levee Board Commissioner. AYES: President McCrossen, Commissioners Borne, Green, Hatfield and Saizan None Commissioners Foley and Voelker Yes

NAYS: ABSENT:

RESOLUTION ADOPTED: B.

A resolution supplementing and amending a resolution adopted on January 18, 2006 which authorized the issuance, sale and delivery of not exceeding $10,000,000 Orleans Levee District Revenue Anticipation Notes, (FEMA Community Disaster Loan Program) so as to increase the amount to be borrowed to an amount not exceeding $18,000,000; and other matters in connection therewith. Ms. Cornelia Ullmann, Interim Counsel, explained the Bond

Commission has made additional funding available for the District. This will be the same as the action taken in January, wherein no funds will be taken until the staff comes to the Board. Commissioner Green expressed his concern relative to the borrowing the Board is able to do under this action, even though the staff must come back to the Board before proceeding. Should the Board in the future decide to take advantage of these funds, he hoped it would have a clearly delineated program for repayment of the loan, and that the Louisiana Division of Administration would be involved. There was no further discussion on the motion, therefore, Resolution No. 2-081606, offered by President McCrossen, seconded by Vice President Borne, was adopted, with Commissioners McCrossen, Borne, Hatfield, Saizan and Willard-Lewis voting yea, and Commissioner Green voting nay, towit: MOTION: RESOLUTION: BY: SECONDED BY: 2-081606 2-081606 President Michael P. McCrossen Vice President Allen H. Borne, Jr. RESOLUTION

A resolution supplementing and amending a resolution adopted on January 18, 2006 which authorized the issuance, sale and delivery of not exceeding $10,000,000 Orleans Levee District Revenue Anticipation Notes, (FEMA Community Disaster Loan Program) so as to increase the amount to be borrowed to an amount not exceeding $18,000,000; and other matters in connection therewith. WHEREAS, the Board of Commissioners (the Commissioners) of the Orleans Levee District (the District) on January 18, 2006 adopted a resolution captioned: A resolution authorizing the issuance, sale and delivery of not exceeding $10,000,000 Orleans Levee District Revenue Anticipation Notes, (FEMA Community Disaster Loan Program); making application to the State Bond Commission; and providing for other matters in connection therewith. (the Authorizing Resolution) which authorized the borrowing of not exceeding $10,000,000 from FEMA pursuant to its Community Disaster Loan Program; WHEREAS, the District has previously (i) executed a FEMA note for FEMA funding Round 1 Loan # 1, in the sum of $3,346,000, (ii) has recently been advised by FEMA that it is eligible for a FEMA funding Round 1 loan # 2 Community Disaster Loan in the amount of $671,734 which has not yet been borrowed and (iii) has just recently been advised by the Governors FEMA representative that it is qualified for and will be allowed to borrow an additional amount of $5,984,068, all of which total $10,001,802 which is in excess of the $10,000,000 amount previously authorized by the Commissioners; WHEREAS, the Commissioners desire to supplement and amend the Authorizing Resolution so as to increase the amount that may be borrowed by the Board from FEMA pursuant to the Community Disaster Loan program to the amount of not exceeding $18,000,000 and to describe the revenues of the District pledged and to be pledged to the payment of such obligations. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF ORLEANS LEVEE DISTRICT ACTING AS ITS GOVERNING AUTHORITY that: SECTION 1. Supplement and Amendment of Authorizing Resolution. The caption and Section 1 of the Authorizing Resolution are hereby supplemented and amended so as to increase the amount which may be borrowed by the Board from FEMA pursuant to the Community Disaster Loan program to the amount of not exceeding $18,000,000 and they shall read as follows respectively: The Caption: A Resolution providing for the issuance, sale, and delivery of the not exceeding Eighteen Million Dollars ($18,000,000) Orleans Levee District Revenue Anticipation Notes (FEMA Community Disaster Loan Program); making application to the State Bond Commission; and providing for other matters in connection therewith. Section 1: SECTION 1. Authorization of Notes. There is hereby

authorized the borrowing of not exceeding Eighteen Million Dollars ($18,000,000) in the aggregate by the District, to be evidenced by one or more Notes of the District (the Notes), in one or more series, for the purpose of paying working capital expenses including current operating and maintenance expenses, providing for necessary capital improvements of the District relating to essential services, including Hurricane, levee maintenance and floodwater protection and all other services provided by the District, including without limitation, related to its non-hurricane and flood protection operations and properties and the protecting and promoting the health, safety and public welfare of the community, and paying costs of issuance of the Notes, in anticipation of the revenues of the Board, all in accordance with Article 6 Section 40 of the Louisiana Constitution of 1974, and other constitutional and statutory authority supplemental thereto including, without limitation, La. R.S. 39:1430, and La. R. S. 39:1444 through 1455 inclusive (collectively, the Act). The Notes maybe payable from and secured by one or more of a subordinated pledge of the Districts tax revenues consisting of 1) the tax avails from the tax authorized by Article 6 Section 39 (A) of the La. Constitution and 2) the tax referred to as the Special Levee Improvement Tax originally authorized by the
special election held within the District on March 4, 1974 at the rate of 3 mills pursuant to the authority of Article 6, Section 39(B) of the Louisiana Constitution, which was extended for a period of 30 years ending with the year 2015 and increased to 6.07 mills pursuant to authority of a special election held within the District on November 19, 1983, and which was levied at the rate of 6.55 mills for tax year 2004 as increased in accordance with the authority of Article 7, Section 23 of the Louisiana Constitution for each fiscal year and 3) the Districts revenues from

its various real estate and mineral holdings located in Orleans Parish and Plaquemines Parish Louisiana, including without limitation, the Orleans Marina, the South Shore 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 the Orleans Marina, the income from all mineral leases granted by the District in the Bohemia Spillway area, namely OLB Well No.1, Clam Bay Field operated by Clayton Williams, Potash Field operated by Sundown and Cox Bay Field operated by Bass, and all other areas of Plaquemines Parish Louisiana, (the Revenues) subject to and after the payment therefrom of (A) all operation and maintenance expenses of the District (the amount of Revenues remaining after payment of all operation and maintenance expenses being hereinafter referred to as the Net Revenues) and (B) all payments of principal and interest due by the District on its (i) $34,780,000 original principal amount Orleans Levee District Public Improvement Bonds, Series 1986 (which were converted to fixed rate in 1995), and (ii) $2,795,000 original principal amount Orleans Levee District Public Improvement Refunding Bonds, Series 1996, (collectively the Public Improvement Bonds), and (iii) $56,780,000 Levee Improvement Bonds, Series 1986 (which were converted to fixed rate in 1995), and (iv) $6,775,000 Orleans Levee District Levee Improvement Refunding Bonds, Series 1996 (collectively the Levee Improvement Bonds) and collectively with the Public Improvement Bonds the Existing Bonds) for which the avails of the various taxes pledged to the Existing Bonds are insufficient to completely pay, (C) any other bonds, notes or other evidences of indebtedness issued on a parity with the Existing Bonds (the Parity Bonds), (D) any bonds, notes or other evidences of indebtedness issued in the future for any of the authorized purposes of the District secured by the Revenues or Net Revenues on a first lien

basis (the Future Revenue Bonds) and (E) any bonds issued to refund any of the Existing Bonds, the Parity Bonds, and the Future Revenue Bonds regardless of whether secured on a parity first lien basis with any un-refunded Existing Bonds, Parity Bonds, and Future Revenue Bonds. The Notes shall evidence a loan under the Community Disaster Loan Act of 2005 (the Loan Act), shall bear interest from the date thereof at a fixed or variable rate in accordance with the provisions of the Loan Act, at a rate or rates not to exceed 8% per annum and shall mature over a period not exceeding ten (10) years from the date of said Notes. The Notes shall be issued on a taxable basis, and shall have such additional terms and provisions as may be deemed necessary by the Acting President or the Executive Director of the District. SECTION 2. Application To State Bond Commission. Formal application is hereby made to the State Bond Commission for approval of the increase in the not exceeding amount of the Notes to $18,000,000 and for the granting of the FEMA Round 2 loan(s). SECTION 3. Other Required Actions. The Chairman of the Board, the appropriate officers and employees of the Board and the District and the 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. This Resolution having been submitted to a vote, the vote hereon was as follows: AYES: Commissioners McCrossen, Borne, Hatfield, Saizan and WillardLewis Commissioner Green Commissioners Foley and Voelker Yes

NAYS: ABSENT:

RESOLUTION ADOPTED: C.

A resolution authorizing (i) execution of a $5,984,068 Promissory Note to FEMA and (ii) pledging collateral for the payment of the Not Exceeding $18,000,000 FEMA Community Disaster Loan. President McCrossen commented this is the corresponding motion

to the previously approved motion. Commissioner Green expressed concern relative to the promissory note, and requested, in the event that the voters choose this agency to be taken over by the Division of Administration, that the Division of Administration, which could be responsible for the non-flood assets, be made aware, beyond this public

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meeting, of the fact of the execution of this promissory note since it includes collateral that it may be responsible for. President McCrossen noted none of these monies will be spent without Board approval. Commissioner Saizan pointed out this is just reserving the Districts right and place in line should there be a need and that it would come back before the Board. Commissioner Green commented the resolution authorizes execution of the notes, and he wanted to clarify that there has been public comment that this would come back before the Board. There was no further discussion on the motion, therefore, Resolution No. 3-081606, offered by President McCrossen, seconded by Vice President Borne, was adopted, with Commissioners McCrossen, Borne, Hatfield, Saizan and Willard-Lewis voting yea, and Commissioner Green voting nay. Resolution No. 3-081606 appended to minutes. D. A resolution authorizing (i) execution of a $671,734 Promissory Note to FEMA and (ii) pledging collateral for the payment of the Not Exceeding $18,000,000 FEMA Community Disaster Loan. Ms. Ullmann explained the District received money in FY 2005, however, when the Bond Commission finished dividing the money, some was left and this is the Districts share. There was no further discussion on the motion, therefore, Resolution No. 4-081606, offered by President McCrossen, seconded by Commissioner Willard-Lewis, was adopted, with Commissioners McCrossen, Borne, Hatfield, Saizan and Willard-Lewis voting yea, and Commissioner Green voting nay. Resolution No. 4-081606 appended to minutes. E. To authorize and approve a settlement payment to the Orleans Levee District in the amount of $20,000.00 to settle Civil District Court Case No. 2004-1390, The Palms at Lake Marina, L.L.C. v. the Orleans Levee Board, subject to the review and approval of the wording of the consent judgment by the Boards Real Estate Consultant, Mr. Albert Pappalardo, and the Boards Legal Department, with each party to bear the cost of its own legal fees and expenses; and to authorize the President, Director of Real

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Estate, Recreational and Non-Flood Assets or Interim Counsel to sign any and all documents necessary to carry out the above. Commissioner Green asked for a summary relative to this settlement, and Mr. Albert Pappalardo, the Boards Real Estate Consultant explained this litigation was filed by an adjoining property owner demanding a servitude of passage over property owned and leased by the Orleans Levee District. The interest in the property as a servitude of passage was appraised at no more than $29,000. The trial court ruled that a servitude must be provided, and a decision had to be made as to how much could be charged for the servitude. The settlement of $20,000 is based on the Orleans Levee Districts ability to write the consent judgment and servitude so that it only applies to the right of passage; it does not apply to the right to construct anything above or below ground on the servitude other than the paved driveway. Additionally, it gives the Orleans Levee District the right to move that servitude and paving at the Districts cost, if it so chooses, along the expanse of its land. This litigation has been on-going for several years, and an integral part of the work done was abstracting and title work to determine whether it was the Districts property or a dedicated street. Vice President Borne pointed out that a hold harmless to indemnify the Board against any suits that may arise out of this right of passage should be included in the consent judgment. There was no further discussion on the motion, therefore, Resolution No. 5-081606, offered by Vice President Borne, seconded by Commissioner Green, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 5-081606 5-081606 Vice President Allen H. Borne, Jr. Chairperson, Legal Committee Commissioner Eugene J. Green, Jr. August 16, 2006

SECONDED BY:

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RESOLUTION WHEREAS, at its meeting held on August 1, 2006, the Boards Legal Committee discussed in Executive Session the strategy of the litigation entitled The Palms at Lake Marina, L.L.C. v. the Orleans Levee Board, Civil District Case No. 2004-1390., and WHEREAS, reconvening in Regular Session, the Committee determined that a settlement of this claim would be in the best interest of the Orleans Levee District and recommended same for Board approval. BE IT HEREBY RESOLVED, That the Board authorizes and approves a settlement payment to the Orleans Levee District in the amount of $20,000.00 to settle Civil District Court Case No. 2004-1390, subject to the review and approval of the wording of the consent judgment by the Boards Real Estate Consultant, Mr. Albert Pappalardo, and the Boards Legal Department, with each party to bear the cost of its own legal fees and expenses. BE IT FURTHER RESOLVED, That the President, Director of Real Estate, Recreational and Non-Flood Assets or Interim Counsel be authorized to sign any and all documents necessary to carry out the above. AYES: NAYS: ABSENT: Commissioners Borne, Green, Hatfield, Saizan and Willard-Lewis None Commissioners Foley and Voelker Yes

RESOLUTION ADOPTED: F.

To approve and authorize the substitution of the Director for Hurricane and Flood Protection and/or the Director for Real Estate, Recreational and Non-Flood Assets, as appropriate, in lieu of Executive Director, in the Boards Bylaws and Policies and Procedures. Ms. Ullmann explained this is a procedural matter, as the title of

Executive Director was listed throughout important matters, as well as ordinary matters. There was no further discussion on the motion, therefore, Resolution No. 6-081606, offered by President McCrossen, seconded by Commissioner Green, was unanimously adopted, to-wit:

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MOTION: RESOLUTION: BY: SECONDED BY:

6-081606 6-081606 President Michael P. McCrossen Commissioner Eugene J. Green, Jr. August 16, 2006 RESOLUTION WHEREAS, after the retirement of the Districts former Executive

Director, the Board, at a Special Board Meeting held on January 31, 2006, appointed a Director for Hurricane and Flood Protection and a Director for Real Estate, Recreational and Non-Flood Assets, and WHEREAS, the Board adopted revised Bylaws on June 18, 1997, and, subsequent to the adoption of its Bylaws, further adopted certain Policies and Procedures for the management of the Orleans Levee District, and WHEREAS, the aforementioned Bylaws and Policies assign certain responsibilities to and direct certain actions by the Executive Director, and WHEREAS, the Boards Bylaws, as amended, provide that business of an emergency nature may be conducted by the Executive Committee, a standing committee established by said Bylaws and consisting of the President, the Vice-President, another Commissioner and the Executive Director, and, in the event emergency business must be conducted and a quorum of the Board is not available, the membership of the Executive Committee, as well as other sections of said Bylaws and Policies adopted by the Board, require technical modification. BE IT HEREBY RESOLVED, That the Board hereby approves and authorizes the substitution of the Director for Hurricane and Flood Protection and/or the Director for Real Estate, Recreational and Non-Flood Assets, as appropriate, in lieu of Executive Director, in its Bylaws and Policies and Procedures. AYES: NAYS: Commissioners Borne, Green, Hatfield, Saizan and Willard-Lewis None

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ABSENT:

Commissioners Foley and Voelker Yes

RESOLUTION ADOPTED:

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G.

To approve a new lease with Mr. Larry Talamo (State Farm Insurance) for Space A at the Lake Vista Community Center (6506 Spanish Fort Blvd.) (1,340 sq. ft.) at the current fair market value rental rate of $14.00 per sq. ft., for a primary term of three years, commencing September 1, 2006, with two three-year options; to approve the mutual termination of the lease dated October 18, 2001 for Store No. 2 (6504 Spanish Fort Blvd.) (895 sq. ft.), conditioned upon the execution of a new lease for Space A, with an effective date mutually agreeable to the Lessee and Districts staff subsequent to the effective date of the lease for Space A; and to authorize the President or Director of Real Estate, Recreational and Non-Flood Assets to sign any and all documents necessary to carry out the above. There was no discussion on the motion, therefore, Resolution No.

7-081606, offered by Commissioner Saizan, seconded by Commissioner Hatfield, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 7-081606 7-081606 Commissioner Darrel J. Saizan, Jr. Chairperson, Planning, Engineering and Construction Committee Commissioner Brenda G. Hatfield August 16, 2006 RESOLUTION WHEREAS, by Resolution No. 2-091901, the Board approved a lease for Store No. 2 at the Lake Vista Community Center (LVCC) (6504 Spanish Fort Blvd.), containing 895 sq. ft. of space, to Mr. Larry Talamo, and WHEREAS, the Lease Agreement, dated October 18, 2001, provided for a primary term of three years, commencing October 1, 2001, with the first of the two three-year renewal options provided under the terms of the lease having been exercised and ending on September 30, 2007, at a rental rate of $14.00 per sq. ft., or $1,044.17 per month, and WHEREAS, Mr. Talamo has requested to relocate his leasehold from Store No. 2 to Space A at the LVCC (6506 Spanish Fort Blvd.), which is currently vacant, containing 1,340 sq. ft. of space, at the current fair market value rental rate of $14.00 per sq. ft., or $1,563.33 per month, and WHEREAS, Mr. Talamo has been a tenant of good standing at the LVCC since 1992, and

SECONDED BY:

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WHEREAS, the Orleans Levee District will demolish two small walls and repaint the interior of Space A, and WHEREAS, at its meeting held on August 1, 2006, the Boards Planning, Engineering and Construction Committee reviewed Mr. Talamos request, and considered said request for relocation to be in the best interest of the District, and recommended same for Board approval, and WHEREAS, Mr. Talamo further requested that he be allowed to continue his lease for Store No. 2 for a short period simultaneous with his new lease for Space A until such time as Space A is equipped and functional. BE IT HEREBY RESOLVED, That the Board approves a new lease with Mr. Larry Talamo for Space A at the aforementioned mentioned fair market value rental rate, for a primary term of three years, commencing September 1, 2006, with two three-year options, with rental for said option periods to be determined by Lessor based upon the fair market value of the premises at the time said option is exercised, but in no event shall the rental be less than that for the prior term, and containing any and all terms and conditions standard to Orleans Levee District leases. BE IT FURTHER RESOLVED , That the Board approves the mutual termination of the lease dated October 18, 2001 for Store No. 2, conditioned upon the execution of a new lease for Space A, with an effective date mutually agreeable to the Lessee and Districts staff subsequent to the effective date of the lease for Space A. BE IT FURTHER RESOLVED, That the President or Director of Real Estate, Recreational and Non-Flood Assets be authorized to sign any and all documents necessary to carry out the above. AYES: NAYS: ABSENT: Commissioners Borne, Green, Hatfield, Saizan and Willard-Lewis None Commissioners Foley and Voelker Yes

RESOLUTION ADOPTED:

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H.

Consideration of approval of transfer of lease for Boathouse N-28 from John Herzog to David Branton. Ms. Ullmann advised Motion No. 8-081606 was being withdrawn,

as the matter was not ready at this time to be heard and could be placed on the Committee agenda. I. To revise Section 4.1.1. of the Orleans Levee District Policy and Administrative Guidelines for Issuance of Pubic Works Construction Contracts and Change Orders to allow award of a contract to the lowest responsible bidder by the President, Director of Hurricane and Flood Protection or Chief Engineer for projects over $10,000 and less than $50,000 and the reporting of said informal contract award at the next meeting of the Planning, Engineering and Construction Committee. Mr. Stevan Spencer, Director of Hurricane and Flood Protection, explained this item concerns the policy which has been in place for public works contracts between $10,000 and $50,000, for which three bids are required and authorization by Board resolution. Currently, due to the post-Katrina situation, there have been problems getting contractors and obtaining bids. Much of the work should be done as soon as possible, therefore, this request to report the award of contracts at the next Committee meeting, in lieu of obtaining Board approval prior to award, is to expedite projects between $10,000 to $50,000 and to get the work done in a timely manner. Vice President Borne offered a motion to amend the resolution to place a time limit of one year on the policy change, which was seconded, and adopted. Ms. Ullmann also pointed out, should the Constitutional amendment be adopted on September 30, and there is a struggle to find a quorum, then the District may not be able to go forward with repairs. Commissioner Green agreed with a limited time period for this action, however, he did not agree with the action. He questioned the use of the word informal and timing in bringing the action to the next Committee meeting. Also, he felt it may not be the best time to change policies that protect the Board and organization.

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Mr. Spencer explained the word informal is used in the policy referring to bonding and other requirements. Ms. Ullmann recommended the matter be deferred to Committee, and the Board concurred. J. To authorize the President or Director of Hurricane and Flood Protection to sign any and all documents necessary for the assignment by Electrocom, Inc. of its rights to the Orleans Levee District to leased space on Pinnacles Benefit Street tower for the Districts radio repeater station used for communications by Police and field yard personnel, and to enter into an agreement with Pinnacle Towers, L.L.C. for said usage, subject to review and approval of said documents by the Districts Legal Department; and to approve the establishment of funding in the SLIP Fund Budget on an annual basis sufficient to fund the rental and maintenance fees for the Districts usage of said tower. Ms. Ullmann advised this tower is used for the Districts radio communications equipment. Electrocom, who is now out of business, was the wholesaler between the tower owner and the District, and the owner will now deal directly with the District. Commissioner Green asked the amount of funding that will be required. Ms. Ullmann advised the cost, which was previously about $1,100 per month, will now be approximately $964 per month. Vice President Borne offered a motion to amend the resolution to establish funding in a maximum amount of $1,000 per month in the SLIP Fund Budget, which was seconded by Commissioner Green, and unanimously adopted. It was clarified funding had been previously established for this service, however, annual funding was required for this new agreement. There was no further discussion on the amended motion, therefore, Resolution No. 8-081606, offered by President McCrossen, seconded by Commissioner Saizan, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: SECONDED BY: 10-081606 8-081606 President Michael P. McCrossen Commissioner Darrel J. Saizan, Jr.

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August 16, 2006 RESOLUTION WHEREAS, by agreement between Pinnacle Towers, Inc. and Electrocom, Inc., dated August 20, 1997, Electrocom leased space on Pinnacles Benefit Street tower for communications purposes, and WHEREAS, subsequent to its lease with Pinnacle, the Orleans Levee District subleased space from Electrocom for its radio system repeater station, and WHEREAS, the continued use of the tower for everyday and emergency communications by the Orleans Levee District Police and field yard personnel is required in the performance of their official duties, and WHEREAS, the District wishes to accept assignment of Electrocoms right, title and interest in the aforementioned lease for space it is currently utilizing and enter into a new agreement with Pinnacle Towers, L.L.C. for said usage. BE IT HEREBY RESOLVED , That the President or Director of Hurricane and Flood Protection is authorized to sign any and all documents necessary for the aforementioned assignment by Electrocom, Inc. to the District, and to enter into an agreement with Pinnacle Towers, L.L.C., subject to review and approval of said documents by the Districts Legal Department. BE IT FURTHER RESOLVED, That funding be established in a maximum amount of $1,000 per month from the SLIP Fund Budget on an annual basis sufficient to fund the rental and maintenance fees for the Districts usage of said tower. AYES: NAYS: ABSENT: Commissioners Borne, Green, Hatfield, Saizan and Willard-Lewis None Commissioners Foley and Voelker Yes

RESOLUTION ADOPTED: III. A. COMMITTEE REPORTS:

STANDING COMMITTEES:

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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 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.

IV. 1.

COMMUNICATIONS: Presentation by NOLATOWN / IPPC. Mr. Ricky Spearman, President of NOLATOWN, thanked the Board

on behalf of NOLATOWN and IPPC for allowing this presentation. He commented one of the reasons for considering New Orleans East was Councilmember Willard-Lewis and her hard work and dedication. He stated NOLATOWN and IPPC are here today to help clean up and rebuild New Orleans and commented on the inability after Hurricane Katrina to return home. He stated the people behind this concept are people who love New Orleans and want to see it the way it once was or even better. He introduced Mr. Samuel Banks, Vice President of New Business for IPPC, and requested he give a brief overview of the concept and introduce the head of the management team. Mr. Samuel Banks explained, several months ago in Atlanta, he met Mr. Spearman who told him about New Orleans and NOLATOWN, and based on that, IPPC said they would like to participate. Currently, IPPC is actively involved in trucking and demolition work in New Orleans. He introduced Mr. Carey Smith, Chief Executive Officer for IPPC. Mr. Carey Smith, CEO of International Performance Packaging Company (IPPC), stated IPPC packages performance at its highest level and builds communities. The object is to build an economic growth within a

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community and blend government with community leaders. He stated their purpose here today is to bring a proposal before the Board for the redevelopment of the property located on the south side of Lake Pontchartrain between Lakeshore Drive and Camp Leroy Johnson. He introduced Nick Gonzalez, who is in charge of all of IPPCs companies, Bill Whalen, President of IPPC, John Tulac, attorney, and Paul Hsu, builder and developer. All of these gentlemen have been in business over thirty years and have done countless projects both apart and together. IPPCs mission statement reads, IPPC has a passion for being the global development corporation of choice. We are committed to making a positive impact on each local community in which we live and work. Mr. Smith explained IPPC has several projects in Fiji, the Dominican Republic, Tenerife, Spain, and North Carolina. One of the projects in Fiji is an island resort development with 5-star hotel, which IPPC has just begun working on. IPPCs work on a project in the Dominican Republic, and its dealing with large hotel chains, opened the door for the project in Fiji, and can also open the door to bring this 5-star hotel project to this property in New Orleans. Mr. Smith explained IPPCs financial associations are Lehman Brothers, Ernst & Young, Grubb & Ellis, Solomon Brothers, Citibank and Commercial Capital Bank. He added, Ernst & Young and Grubb & Ellis will be here tomorrow on this project, and Lehman Brothers is waiting for IPPC to submit a full proposal. He commented IPPC did not need money and could bring its own money to the table. He named other associates who are involved: Alpha Community Development, Water Management Group, Landmark Entertainment, and Paul Hsu, and explained their prospective contributions. He reiterated these efforts are not about money, but are a way of giving back. Commissioner Saizan explained prior to Hurricane Katrina he was involved in an attempt to obtain federal money to demolish and remediate the Naval Reserve site, which has been unoccupied for several years, and there had been a commitment to remove the building. He expressed interest in knowing exactly what NOLATOWN and IPPC is proposing, whether they would be willing

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to put up some type of a performance bond, and provide a detailed background of the participants. Ms. Ullmann pointed out the Planning, Engineering and Construction (PEC) Committee would be the proper venue to refer this proposal, since the PEC Committee would coordinate real estate issues. President McCrossen indicated the PEC Committee would be a good forum to refer this proposal for further attention, and that individual Commissioners could be met with on an as needed basis. Mr. Smith commented that this project will not be done without the working people here in New Orleans; e.g., proposals will be obtained and local architects hired. The participants introduced today are just the management team. Mr. Spearman advised NOLATOWN and IPPC are additionally interested in the north peninsula, and that they have done research and understood the infrastructure at the peninsula site is not in place and its potential cost, along with the cost of demolition and debris removal at the Naval Reserve site, and that they could take care of these costs. Commissioner Green stated, as Chair of the Ad Hoc Committee, he had an opportunity to speak with representatives of NOLATOWN and IPPC. He expressed a concern as to whether the Board when it next meets would be willing to put forth some process to move forward and mentioned he made a request for the approval of the advertising of a request for proposals (RFP) for the development of the north peninsula, as his understanding was that the Board traditionally advertised an RFP for the development of land parcels such as this. The Board has now received a second proposal. He asked that the Board move forward with such an advertisement in the Times Picayune, the official journal of the City, so that this proposal could be submitted in a formal fashion, and would allow the Board to evaluate whether or not what is being proposed is in its best interest. He recommended advertising a Request for Proposals in the Times Picayune this week for the Naval Reserve site and north peninsula, with a

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response time of no more than thirty days, so that the District could solicit at least these two proposals, collect a deposit and engage in meaningful discussions. He stressed the only obligation to the Orleans Levee District would be the cost of the advertisement and the time it would take to consider the acceptance of the proposals. He also pointed out that neither of the two developers who have approached the Board have requested the Orleans Levee District to put up any money for these projects. Commissioner Green then offered a motion to amend the agenda to include the release of a Request for Proposals for the development of the north peninsula and the former Naval Reserve station site, with receipt within a maximum period of thirty days, which was seconded by Vice President Borne, and adopted. Vice President Borne felt the advertisement of an RFP was a good idea and would allow this developer and any other interested developers an opportunity to respond. Commissioner Green commented his understanding was that the Orleans Levee Board could lease its properties, as long as it is done at a rate consistent with the market. By receiving proposals through an RFP process, the Board would be receiving proposals in its traditional manner giving everyone a chance. He added, the Board is not tied to a specific time period for the receipt of proposals, and that the time period for receipt could be shortened. Vice President Borne pointed out there may be specifications and parameters that the Board may desire in the RFP; therefore, advertisement this week may not be feasible. Ms. Ullmann pointed out that there are some Hurricane Katrina matters that currently involve the Naval Reserve station. Mr. Albert Pappalardo, the Boards Real Estate Consultant, explained, typically in the past when issuing an RFP, the District put together a packet of information setting forth the parameters of the proposal; such as, minimum rent and usage. He explained the north peninsula at South Shore

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Harbor is currently zoned P-Park, which means the only thing that can currently be built on it is a park. Anything that is put forth would have to go through the City Planning Commission and Safety and Permits, and there would have to be a zoning change for the development. Therefore, there must be a partnership between the City of New Orleans and the Orleans Levee District in determining what type of development can be placed on the north peninsula. Developers could spend money putting together a proposal; however, without the acquiescence and concurrence of the City Planning Commission and City Council, the proposed development may not be viable. Commissioner Green pointed out the package would state that any development would be subject to the approval of the City Planning Commission and City Council, and pointed out the CAO and Council representative from that area are sitting on this Board. Mr. Pappalardo cautioned that proposers may be reluctant to spend the money necessary to put together a hard proposal if they do not know what could be developed on the peninsula. The Naval Reserve site is zoned RM-4 Multi Family, and anyone can look at this zoning and determine what can be placed there at this time, which makes it a viable site immediately within the zoning. A developer may propose waivers to the RM-4 zoning or propose to change the zoning to a higher zoning; for example, the proposal received today has a commercial and retail component and based on percentages may not fit within the RM-4 zoning. He suggested projects of this magnitude should additionally be advertised in the regional editions of the Wall Street Journal, and that a packet should be put together to include the types of developments that are being sought, which could even be expanded, and would include a charge for the packet to offset the cost of advertisement. He recommended that at least a Committee meeting, and a meeting with staff, should transpire to determine the types of developments desired so that a proposal packet and advertisement can be put together. He suggested this process may take sixty days, with

25

construction of the packet and advertisement taking thirty days, and a thirty day response time. Commissioner Green pointed out he did not want to limit types of proposals on these non-developed properties, and if a developer submits a proposal that is not in line with what the Board would want to do, the Board could reject it. President McCrossen stated much of the process can be fast tracked; however, in order to do it right, as advised by Louisiana Economic Development Office, the Board must make sure it sets up some general parameters, which do not exclude any visions and can allow for creativity. Mr. Pappalardo pointed out an important part of every proposal on a major piece of land was to bring it to the Committee and allow the affected neighborhood groups to hear the proposal and determine whether the Board had its own neighbors on its side with the type, scope and scale of the parameters of the project. The north peninsula has no adjacent neighborhoods; it is adjacent to the Airport and a marina. SUNO, Pontchartrain Park and Pontilly are neighboring the Naval Reserve site, as well as the military, FBI and UNO educational community. Commissioner Saizan suggested the nearby Lake area communities, as well as part of the Gentilly area backing onto Leon C. Simon, may also be interested. Mr. Spencer pointed out that flight patterns may also be affected. Commissioner Hatfield commented on the importance of having broad, competitive opportunities and agreed with not only advertising in the Times Picayune, but also the Wall Street Journal and any other appropriate publications, and that time be given to the development of scope and specifications so there is no confusion as to where the Board would like to go. Commissioner Green asked Mr. Pappalardo whether he was willing to develop the package.

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Mr. Pappalardo replied, he has done so in the past, and requested help from the Legal and Engineering Departments. Commissioner Green withdrew his motion, adding he was willing to defer to the Committee meeting, if Mr. Pappalardo is willing come to that meeting and move the Board off of where it currently stood. He also invited the representatives of NOLATOWN and IPPC to the next Committee meeting, which the Board rescheduled for Wednesday, September 6th. V. APPROVAL OF MINUTES: There were no corrections, additions or deletions to the minutes of the Regular Monthly Board Meeting held on July 19, 2006; therefore, the minutes of the Regular Monthly Board Meeting held on July 19, 2006 were approved as submitted. IV. 2. COMMUNICATIONS: Comments by President McCrossen. President McCrossen stated he reserved his comments to the end of the meeting for emphasis. First and foremost, the Orleans Levee Districts mission is flood protection. Having said that, yesterday the Gaming Board made some decisions that have made it almost impossible for the next five years to have a gaming boat license previously up for sale in Lake Charles to move here. The nearly five million dollars of lost revenue from the gaming operations at South Shore Harbor is Flood Protection monies that must be replaced in order to properly sustain the Orleans Levee District operations. In addition, this gaming boat can be the economic engine that New Orleans desperately needs at this time for development, not only of the Lake area, but the entire New Orleans East and Ninth Ward communities. Therefore, with little choice he stated he was personally going to ask the Governor for a new gaming boat license at South Shore Harbor, and asked his fellow Commissioners to join with him, if they so desire, at the appropriate time. Vice President Borne agreed with President McCrossen and felt the District has been short changed. The facility was at South Shore Harbor, and the

27

events of Hurricane Katrina caused the boat to be moved; therefore, he felt it only fair that the Orleans Levee District, with the facility already in place for a boat at South Shore Harbor, should be given a new license so the District will continue to have funds to support flood protection. Commissioner Saizan also agreed, adding, it is not only a loss of revenue for the District, but also for the City, and Commissioner Hatfield concurred. Commissioner Green voiced his surprise at the decision of the Gaming Board and his concern that an entity that owed the Orleans Levee District money has been supported by the State of Louisiana to go to another location and engage in business as if that money owed is not a contractual obligation. Vice President Borne added, the burden of this lost revenue falls on the citizens of New Orleans, who are already burdened with the catastrophe of Hurricane Katrina and trying to rebuild. VI. PUBLIC COMMENTS: Ms. Kimberly Nunez, Project Architect/Manager for Hurricane Katrina damage repairs to nine buildings at the Lakefront Airport, explained she was requested to report on specific items regarding the Administration Building, and distributed a packet containing three components: the Administration Building history; 2) Plan and Exterior Elevation Information; and 3) Schedule and Estimate for the demolition of the existing Administration Building facade. The two requested tasks were, first, to develop the schedule for all five projects, and, second, to prepare an estimate for the restoration of the Administration Building exterior faade. Ms. Nunez stated she did not have the full estimate for the faade, but did have an estimate and proposed path to get to the final estimate. The original faade and all of its elements were researched in the archives, and it was realized that there are many components that are very costly and very ornamental in nature. Until the existing faade is removed, the condition of those elements are unknown. She proposed putting together a bid

28

package, which will take about three weeks, and bid the demolition of the exterior faade. At that time a recommendation can be made on the restoration. Ms. Nunez added, the structure that is presently supporting the pre-cast concrete panels is rusted and must be removed, regardless of whether the old faade is restored or a new skin is installed. She further suggested, after removal of the existing faade, setting a limited budget for the restoration of the old faade and then determining what elements can be restored and to what extent. Relative to the overall schedule, Ms. Nunez advised, they are trying to decrease the investigative study phase and overlap it with the design phase in order to get the project out to bid as soon as possible. IV. 3. COMMUNICATIONS: Report from Director of Hurricane and Flood Protection and Director of Real Estate, Recreational and Non-Flood Assets. Mr. Stevan Spencer, Director of Hurricane and Flood Protection, reported, relative to Lakefront Airport, three of the four FAA construction project contracts have been signed; i.e., the signage, security and drainage projects. The bulkhead package is still waiting for FEMA funding approval. The Administration Building water line leaks have been repaired, which is necessary in order to get water to the two chiller units on the roof. Tomorrow technicians will attempt to get at least one of the units running in order to establish an environment on the second floor of the building. Million Air is on temporary power and the new lease lines being drawn up. Orleans Levee District personnel are currently cleaning out the McDermott offices and have already cleaned out the Air National Guard Hangar. Entergy is drawing up proposal plans and a written agreement and investigating a payment plan. A meeting will be held tomorrow with the contractor to reestablish power to South Shore Harbor and the gaming facility. The contract for the design services for Lakeshore Drive is being finalized by the Legal Department. On further review, FEMA cannot justify any mitigation for Lakeshore Drive; therefore, the promenade has been dropped from

29

the scope of work, and the scope is now repairs, lighting and filling behind in the seawall. The Orleans Levee Districts personnel have cut down 45 dead trees on the Lakefront, and FEMA was able to remove the trees that were cut down. The District continues to fall behind with grass cutting being short of staff and equipment. Help with grass cutting was requested from the Department of Transportation and Development, however, it is in the same position as the District and unable to help at this time. President McCrossen suggested out sourcing grass cutting as a possible solution, and Mr. Spencer explained the Corps of Engineers contractors have been attempting to find people to cut grass on the completed levee sections and are having problems doing so. Commissioner Hatfield mentioned the City has also had difficulty in finding laborers and are looking at doing more out sourcing. A recommendation was offered to contact the Sheriffs Office for possible assistance. Mr. Spencer reported he attended a table top exercise yesterday at the Corps of Engineers which used two storm scenarios and addressed what the Corps would do as far as monitoring and closing of the three drainage canal structures. He also attended a meeting regarding the three closure structures at Seabrook, GIWW and MRGO. The opinion was expressed that the local entities are not financially able or sufficiently staffed to monitor and operate such large structures and that they should be considered navigational features that are monitored and maintained by the Corps and/or others. The Corps will begin a phase one study for tree removal along the London and Seventeenth Street Canals. One hundred three FEMA PWs have been signed and ten remain to be written. Of the 103, twenty remain unobligated and are awaiting final approval to obtain funding. The District thus far has $36.8 million in approved projects; the State has verbally said it will provide up to 10 percent, however, this has not been confirmed in writing. The Franklin Facility roof is over 90 percent

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complete. Ms. Kiefer and Mr. Gillen are supplying damage claims to insurance companies A meeting was held last week with the GCR representative, as referred by OMB, relative to funding assistance. An Executive Summary is being prepared for a need request. Mr. Louis Capo, Director of Real Estate, Recreational and NonFlood Assets, reported the District held an auction last week and received $215,000 from the sale of equipment that no longer had useful life. On August 31st a C-42 World War II plane will be arriving at Lakefront Airport, parked at the Williams Hangar for four days for the public to view, and then will be towed to the D-Day Museum for exhibit. A contract should be executed today with Sigma Consulting Services for actuarial services with a fee of $4,500. The general liability insurance quote from Lexington will expire on August 30, and it hoped that Sigmas evaluation will be received prior to that date; therefore, a special committee and Board meeting may be required to take action on insurance. Mr. Capo further reported the FY07 Budget authorized 205 positions, and at the time the budget was approved the District had 228 active employees on the payroll. As of last week, the District has 172 active employees. The dollar value associated with those 56 unfilled positions is approximately $2.2 million. Currently, there is no hiring for these unfilled positions except for critical needs. The Airport previously had eleven firefighters on staff, and have lost three to resignations, one will be tentatively leaving at the end of this month, and four have expressed an interest in leaving by the end of the year, which will leave just three firefighters. In order for the Airport to not lose any of its current FAA certifications, in the near future the District will advertise for firefighters. Additionally, the fuel farm manager will be leaving in the month of September, and this position has been advertised with several applications being received. Other cost savings measurers have been the consolidation of several departments and reassignment of staff, and exploring outsourcing certain functions currently done in house. There is no overtime except for public safety

31

matters; i.e., police, high tide-flood events, and operation of the Seabrook Bridge. The U.S. Coast Guard is being petitioned to modify the times the Seabrook Bridge must be manned and opened. President McCrossen requested Mr. Capo to consult with Commissioner Hatfield, Chairperson of the Ad Hoc Personnel Committee, relative to the high tide overtime to assure the right personnel are in place at the right expense. Mr. Capo advised the District has increased the employees and retirees contribution to the cost for health and dental insurance. Ms. Cornelia Ullmann, Interim Counsel, reported the Corps of Engineers has contacted the Legal Department and the Director of Hurricane and Flood Protection regarding the execution of a set of assurances, which are more onerous than the previous ones, and are being closely reviewed. President McCrossen commented a representative from the Office of Management and Budget in Washington, D.C., inquiring about the Orleans Levee Districts financial wherewithal to participate as local sponsor up to 35 percent of all Category 5 protection expenses, and the response was that the Orleans Levee District does not have the funding. Mr. Spencer added, this issue was discussed last week in a meeting with GCR and this response will be restated in the Executive Summary being prepared. Mr. Capo further advised a letter has been sent to the Office of Statewide Reporting and Accounting and the Legislative Auditors office requesting a 45 day extension to October 20th for the completion of field work and final report on the Districts annual audit.

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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 3:42 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 August 16, 2006.

_________/S/__________________ LOUIS J. CAPO, SECRETARY

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