RESOLUTIONS & BACKUP INFORMATION FOR PUBLIC MEETING OF MAY 28, 2015 ITEM A
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1 S & BACKUP INFORMATION FOR PUBLIC MEETING OF MAY 28, 2015 ITEM A Consider Approval of a Resolution Awarding a Contract to Hard Rock Construction Co., L.L.C., for France Road Drainage Improvements and Culvert Replacements (Ms. Dunn). This contract in the amount of $170,730 to Hard Rock Construction Co., L.L.C., of Metairie, Louisiana, the lowest of nine responsive bidders, is for all labor, material and equipment to upgrade culverts and re-slope the ditches to improve drainage on the west side of France Road between France Road Parkway and Pumping Station #6. Funds are budgeted in the Board s Capital Improvement Program for Fiscal Year (Ms. Dunn) FUNDING SOURCE: Board s FY 2015 Capital Improvement Program PRE BID ESTIMATE: $175,000 - $200,000 BID SUMMARY: BIDDERS TOTAL BID Hard Rock Construction Co., L.L.C. $170,730 Metairie, LA Command Construction Industries, L.L.C. $182,000 Metairie, LA Lou-Con, Inc. $196,000 Meraux, LA Ram J Construction, L.L.C. $207,000 Kenner, LA KCR Contractors, L.L.C. $211,000 Hammond, LA K-Belle Consultants, L.L.C. $238,000 New Orleans, LA Wallace C. Drennan, Inc. $238, New Orleans, LA Cycle Construction Company, L.L.C. $286,500
2 Kenner, LA Durr Heavy Construction, LLC $370,000 Harahan, LA CONTRACT TIME: BID DISCREPANCIES: RECOMMENDED ACTION: PROJECT MANAGER: 60 consecutive calendar days None Award the contract in the amount of $170,730 to Hard Rock Construction Co., L.L.C. Ryan Bylsma
3 ITEM B Consider Approval of a Resolution Awarding a Contract to Sun Industries, LLC, for Replacement of the First Street Shed Electrical System (Ms. Dunn). This contract in the amount of $77,000 to Sun Industries, LLC, of Brusly, Louisiana, the only responsive bidder, for all labor, material and equipment to remove existing electrical panels and system and replace it with updated equipment in a new configuration. Funds are available in the Board s capital improvement program for Fiscal Year 2015 budget. (Ms. Dunn) FUNDING SOURCE: Board s FY 2015 Capital Improvement Program PRE BID ESTIMATE: $60,000 - $80,000 BID SUMMARY: BIDDER TOTAL BID Sun Industries, LLC $77,000 Brusly, LA CONTRACT TIME: BID DISCREPANCIES: RECOMMENDED ACTION: PROJECT MANAGER: 60 consecutive calendar days None Award the contract in the amount of $ 77,000 to Sun Industries, LLC. Ryan Bylsma
4 ITEM C Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Amendment to the Contract with Linfield, Hunter & Junius, Inc., for Disaster Response and Recovery Assistance (Ms. Fant) This resolution will authorize the President and Chief Executive Officer to enter into a contract amendment with Linfield, Hunter & Junius, Inc., for an amount not to exceed $268,000 for assistance in implementing the Board s Comprehensive Recovery Policy and Procedures and for an amount not to exceed $200,000 for as-needed disaster recovery assistance in the event of a disaster. Funds for these services are budgeted in the Board s FY 2016 annual capital improvement program. (Ms. Fant) & IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to enter into a contract amendment with Linfield, Hunter & Junius, Inc., for an amount not to exceed $268,000 for assistance in implementing the Board s Comprehensive Disaster Recovery Policy and Procedures and for an amount not to exceed $200,000 for as-needed disaster recovery assistance in the event of a disaster; and IT IS HEREBY FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized on behalf of this Board to execute all documents and to take all further action as he in his discretion may deem necessary or required in the best interest of this Board to give full force and effect to the intentions expressed in this resolution.
5 ITEM D Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Johnson Controls, Inc., for the Maintenance and Repair of the HVAC Systems at the Erato Street and Julia Street Cruise Terminals (Mr. Allee) & IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to enter into an agreement with Johnson Controls, Inc., for an initial one-year term with two one-year options to extend (which may be exercised by the Board s President and Chief Executive Officer in his discretion if he determines the services for the previous contract year have been acceptable) for the maintenance and repair of the HVAC systems at the Erato St. and Julia St. Cruise Terminals at a cost for the initial term not to exceed $27,264 and $28,028 respectively and with annual rate escalations for subsequent years capped at three percent; and IT IS FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as may be necessary and proper in his discretion to give full force and effect to the intentions expressed in this resolution.
6 ITEM E Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Honeywell International, Inc., for the Maintenance and Repair of the Energy Management Systems at the Erato Street and Julia Street Cruise Terminals (Mr. Allee) & IT IS HEREBY RESOLVED BY THE BOARD OF COMMISIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to enter into an agreement with Honeywell International, Inc., for an initial one-year term with two one-year options to extend (which may be exercised by the President and Chief Executive Officer in his discretion if he determines the services for the previous contract year have been acceptable) for the maintenance and repair of the energy management systems at the Erato St. and Julia St. Cruise Terminals at a cost for the initial term of $23,524 and $28,785 respectively and with annual rate escalations for subsequent years capped at three percent; and IT IS FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized on behalf of this Board to take such actions, enter into such agreements and execute such documents as may be necessary and proper in his discretion to give full force and effect to the intentions expressed in this resolution.
7 ITEM F Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into an Agreement with Harrah s New Orleans for Hotel Rooms, Meeting Space and Food and Beverage Services for the Florida Caribbean Cruise Association Platinum Associate Membership Advisory Council Annual Conference Jun 22-24, 2016 (Mr. Allee) & IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to enter into an agreement at a cost not to exceed $128,000 with Harrah s New Orleans for hotel rooms, meeting space and food and beverage services for the Florida Caribbean Cruise Association Platinum Associate Membership Advisory Council Annual Conference June 22-24, 2016; and IT IS FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as may be necessary and proper in his discretion to give full force and effect to the intentions expressed in this resolution.
8 ITEM G Consider Approval of a Resolution Authorizing the President and Chief Executive officer to Enter into an Amendment to the Professional Services Agreement with KPMG Corporate Finance, LLC, to Provide for an Increase in Budget Expense for Additional Services for the Consideration of a Potential Public/Private Partnership (Mr. Ruckert) & IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of the Board to enter into an amendment at a cost not to exceed $100,000 of the professional services agreement with KPMG Corporate Finance, LLC, to provide for additional valuation services; and IT IS FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements, and execute all such documents as are deemed necessary in his discretion to give full effect to the intentions expressed in this resolution.
9 ITEM H Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Amend the Lease with Kearney Companies, Inc., at France Road Terminal, Berth 5 Shed and Upland Area to Add 0.91 Acres to the Existing 6.0 Acre Lease Site (Mr. Bonura) DOCUMENT: Lease Amendment LESSEE: Kearney Companies, Inc. LOCATION: 3501 France Road - Berth 5 Shed and Upland Area LEASED PREMISES: Addition of approximately 0.91 acres of land, to the 6.0 acres and 31,000 square foot transit shed already leased, located at Berth 5 of the France Road Terminal OPERATION: The property is currently leased as a facility for the storing, sorting, handling and shipping of international and domestic cargoes. This first amendment to the lease is a result of the lessee s request to add 0.91 acres to the existing 6.0 acre lease site to allow for expansion of current operations. TERM: Three-year primary term with two three-year option periods. Currently in the lessee s first option period through July 31, 2017, with second option period August 1, 2017 to July 31, RENT/BOARD REVENUE: Rent will increase from $84,000 to $96,740 annually. IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to amend the lease with Kearney Companies, Inc., to increase the area of its existing 6.0 acre lease site at Berth 5 Shed and Upland Area by 0.91 acres under such terms and conditions as the said Gary P. LaGrange may in his discretion determine to be in the best interests of this Board and not inconsistent with the foregoing; and IT IS HEREBY FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as are deemed necessary in his discretion to give full force and effect to the intentions expressed in this resolution.
10 ITEM I Consider Approval of a Resolution Declaring Property Less than One Acre at 201 Nashville Avenue as Surplus to the Board s Needs and Authorizing the President and Chief Executive Officer to Enter into an Agreement Granting an Option to Purchase the Property to Brinance Investments, LLC (Mr. Bonura) DOCUMENT: Option to purchase PARTIES: Brinance Investments, LLC, and the Port LOCATION: 201 Nashville Avenue PREMISES: Total of less than one acre of land, formerly the entrance to the Nashville Avenue Underpass. OPERATION: The purchaser intends to build and operate a small animal hospital on the site. TERM OF OPTION: One year option to purchase BOARD REVENUE: $25,000 option fee due at granting of the option. If option is exercised, Board will receive the greater of appraised value or $725,000 for the property. IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that the Board declares the property set out on the drawing attached as Exhibit A to this resolution constituting less than one acre at 201 Nashville Avenue as surplus to the Board s needs and hereby authorizes and empowers its President and Chief Executive Officer Gary P. LaGrange to enter into an agreement with Brinance Investments, LLC, granting an option to purchase the property, and authorizing the sale of the property if Brinance exercises its option under such terms and conditions as the said Gary P. LaGrange may in his discretion determine to be in the best interests of this Board and not inconsistent with the foregoing; and IT IS HEREBY FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as are deemed necessary in his discretion to give full force and effect to the intentions expressed in this resolution.
11 ITEM J Consider Approval of a Resolution Declaring Approximately 15,000 Square Feet of Property on Anson Street in Gretna as set out on Exhibit A to this Resolution as Surplus to the Board s Needs and Authorizing the President and Chief Executive Officer to Enter into a Purchase Agreement with the City of Gretna to Sell the Property (Mr. Bonura) DOCUMENT: Purchase agreement PARTIES: City of Gretna and Port of New Orleans LOCATION: Anson Street in Gretna PREMISES: Approximately 15,000 square feet of property adjacent to the property sold in 2013 to the City of Gretna for the construction of a fire station. OPERATION: The purchaser intends to utilize for rear access to the fire station. TERMS OF AGREEMENT: The lot will be re-subdivided to reflect the property intended to be sold. CONSIDERATION: To be determined based on appraised value of the land DOCUMENT: Purchase agreement PARTIES: City of Gretna and Port of New Orleans LOCATION: Anson Street in Gretna PREMISES: Approximately 15,000 square feet of property adjacent to the property sold in 2013 to the City of Gretna for the construction of a fire station. OPERATION: The purchaser intends to utilize for rear access to the fire station. TERMS OF AGREEMENT: The lot will be re-subdivided to reflect the property intended to be sold. CONSIDERATION: To be determined based on appraised value of the land IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that the Board declares approximately 15,000 square feet of property on Anson Street in Gretna as set out on Exhibit A to this resolution as surplus to the Board s needs and hereby authorizes and empowers its President and Chief Executive Officer Gary P. LaGrange on behalf of this Board to enter into a purchase agreement with the City of Gretna to sell the said property at appraised value and under such other terms and conditions as the said
12 Gary P. LaGrange may in his discretion determine to be in the best interests of this Board and not inconsistent with the foregoing; and IT IS HEREBY FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as are deemed necessary in his discretion to give full force and effect to the intentions expressed in this resolution.
13 ITEM K Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Consent to the Assignment of the Board s Lease with Lafarge North America, Inc., to Continental Cement Company, LLC, and to the Sublease of Portions of the Same Property to Lafarge West, Inc., and to C&R Consulting, Inc. (Mr. Bonura) DOCUMENTS: Assignment of a lease and two subleases CURRENT LESSEE: Lafarge North America, Inc. FUTURE LESSEE: Continental Cement Company, LLC LOCATION: 2315 France Street, New Orleans, La LEASED PREMISES: acres OPERATION: Cement and concrete manufacturing and distribution and unloading and handling of limestone, rock, aggregates, sand, gravel and stone. TERM: The lease expires in approximately 10 years on April 30, RENT/BOARD REVENUE: Rent is currently $133,206/ year. In October, the rent is scheduled to increase to $144,560. SUBLESSEE: C&R Consulting, Inc. SUBLET PREMISES: Approximately 2 acres USE: Concrete Batch Plant SUBLESSEE: Lafarge West, Inc. SUBLET PREMISES: Approximately 5 acres USE: Unloading and Handling of aggregates General Note: The worldwide merger of two of the world s largest concrete companies Lafarge and Holcim has led to this action item. The Federal Trade Commission is requiring Lafarge to divest itself of assets in areas where Lafarge and Holcim have overlapping operations, including operations in New Orleans involving this property. Lafarge is selling its assets on this site to Continental Cement Company, which is a subsidiary of Summit Materials. Although Continental will operate the concrete distribution at the site, it intends to receive aggregates and materials
14 from Lafarge West, Inc., so Lafarge intends to maintain a presence on the site through a sublease. C&R has an existing sublease of the site with Lafarge which the Board has not consented to. IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to consent to the assignment of the Board s lease with Lafarge North America, Inc., to Continental Cement Company, LLC, and to consent to the sublease of portions of the same property to Lafarge West, Inc., and to C&R Consulting, Inc., under such terms and conditions as he may in his discretion determine to be in the best interests of this Board; and IT IS HEREBY FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as are deemed necessary in his discretion to give full force and effect to the intentions expressed in this resolution.
15 ITEM L Consider Approval of a Resolution Authorizing the President and Chief Executive Officer to Enter into a Contract with Marsh USA, Inc., for the Provision of Brokerage and Consulting Services Related to the Board s Property and Casualty Insurance Policies (Mr. Gussoni) IT IS HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT OF NEW ORLEANS that its President and Chief Executive Officer Gary P. LaGrange be, and he is, hereby authorized and empowered on behalf of this Board to appoint Marsh USA, Inc., as the broker of record for placement of the Board's property and casualty insurance policies and to enter into a contract for the provision of brokerage and consulting services related to the policies for a primary term of one year, and further authorizing the President and Chief Executive Officer to extend the contract for two additional one-year terms if in his opinion the services provided would justify extension at a cost of $75,000 per year for each year of the contract; and IT IS HEREBY FURTHER RESOLVED BY THIS BOARD that the said Gary P. LaGrange be, and he is, hereby authorized to take such actions, enter into such agreements and execute such documents as are deemed necessary in his discretion to give full effect to the intentions expressed in this resolution.
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