MINUTES OF THE BOARD MEETING OF THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MARCH 15, 2006 PAGE3 Mr.

Young advised, Corps’ appraisers have been looking at all the land to determine what is owned by the property owners on the Pratt side near the canal. Ownership--whether private, Orleans Levee District or the Sewerage & Water Board--has not yet been determined relative to an alleyway along the floodwall. Information has been collected on the properties, which appear to be 130 feet deep, in the areas of the breaches. The Corps is concerned about the 4 trees located within 15 feet of the levee and floodwall toe, which can effect the stability of the levee and if fallen can damage the ground near the floodwall, and the removal of the trees in the 15-foot strip is being considered. There are still on-going discussions and no property is being expropriated at this time; however, in the breach areas the Corps is looking to expropriate probably 15 feet beyond the toe of the new levee, which probably will not affect a single piece of property as far as expropriating the whole property. The Corps is also considering the removal of trees in the levees or on the levee toe along the London Avenue and 17th Street Canals, and discussions are on-going as to how this matter will be addressed. At some point the 15 foot free zone may run the entire length of the levee on both sides of the canals.

MINUTES OF THE BOARD MEETING OF THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MARCH 15, 2006

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MARCH 15, 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. .................................................................................... 2 APPROVAL OF MINUTES: Approval of minutes of Regular Board Meeting held on February 15, 2006. ...... 5 MOTIONS: *To authorize employment of the Godfrey Firm, P.L.C., as counsel to do and to perform legal and professional work relating to post Hurricane Katrina general financial matters, subject to review and authorization by the Legal Department or Chairman of the Legal Committee; to direct that said engagement be submitted to the Attorney General’s office for approval; and to authorize the President or appropriate Director to sign any and all documents necessary to carry out the above................................... 5 To select counsel for services related to Bohemia litigation and claims, and oil and gas matters; to direct that this Resolution be submitted to the Office of the Attorney General for the State of Louisiana for approval; and to authorize the President or the Director of Real Estate, Recreational and Non-Flood Assets to sign any and all documents necessary to carry out the above........................................................................ 8 *To ratify the agreement authorized with Broadmoor, L.L.C. for the emergency cleanup, installation of rip-rap and grading of the runways at the New Orleans Lakefront Airport and installation of a temporary roof on the Franklin Avenue Administration Building; to approve execution of a written contract with Broadmoor, L.L.C. for said emergency services and for the price and sum of $1,235,277.06, which shall not be exceeded, and that funding be designated in the General Fund for FY 2006; and to authorize the Chief Engineer/ Director Hurricane and Flood Protection of the Orleans Levee District or the President or Vice-President to sign any and all documents to carry out the above. .......................................................... 9 *To approve a lease with Fluor Enterprises, Inc. for the Jimmie Wedell Hangar, including approximately 18,000 square feet of hangar deck, plus approximately 184,000 square feet of concrete, at an approximate rental rate of $10,683 per month, to provide covered areas for maintenance and servicing purposes related to the provision of FEMA trailers, for a period of 90 days, extended monthly by mutual agreement; and to authorize the President, Director of Real Estate, Recreational and NonFlood Assets, or the Director of Aviation to sign any and all documents necessary to carry out the above........................................................................ 12 *Denotes approval i

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MARCH 15, 2006 ACTION PAGE

*To approve revisions to the Fiscal Year 2006 General Operating and Major Maintenance/Capital Improvement Budget and Special Levee Improvement Projects (SLIP) Fund Budget. ....................................................... 14 To approve the Fiscal Year 2007 General Operating and Major Maintenance/Capital Improvement Budget and Special Levee Improvement Fund Budgets. .............................................................................. 15 *To approve and authorize Professional Service Contracts with the consultants listed in this resolution to complete the associated projects; to provide that the awarded projects be prioritized and authorization to proceed to depend upon the financial ability of the District to fund the projects within the contract; to provide that the appropriate Director direct additional work items as identified by FEMA to any of the consultants listed through Supplemental Agreements; and to authorize the President, 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........................................................................ 16 *Denotes approval COMMUNICATIONS: 1. Discussion of Lakeshore Drive. ..................................................................... 20 2. Discussion of retaining the services of a public adjuster. .............................. 23 COMMITTEE REPORTS: STANDING COMMITTEES: 1. Ethics and Policy Committee ........................................................................ 24 2. Executive Committee .................................................................................... 24 3. Finance Committee and Planning, Engineering and Construction Committee ................................................................................ 24 SPECIAL COMMITTEES: 1. Legal Committee .......................................................................................... 24 PUBLIC COMMENTS......................................................................................... 24

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THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MARCH 15, 2006 ACTION EXECUTIVE SESSION: 1. O’Dwyer v. USA, et al, USDC EDLA 05-4181; .............................................. 26 2. Lambert v. OLD, et al., USDC EDLA 05-5931, CDC 2005-12295; ................ 26 3. N-Y Associates, Inc. v. OLB, La. 4th Cir. 04-CA-1598;.................................. 26 4. Phillips Land Co., Inc. V. OLD, 25th JDC 52-857; .......................................... 26 5. OLD v. DNR, Phillips Land Co., 19th JDC 537,925; ....................................... 26 6. Union Title v. OLD, 19th JDC 537,924; ......................................................... 26 7. OLD v. Union Title, 25th JDC 52-856; ........................................................... 26 8. Succ of Carter Ursin, et al v. OLD, 25th JDC 53-112; ................................... 26 9. In Re Isabelle Stevens Conner, 25th JDC 52-539; ........................................ 26 10. OLB v. Belle of Orleans, Civil District Court Case No. 06-283, Div. L;......... 26 11. OLB v. Belle of Orleans, USDC, Southern District of Alabama.................... 26 12. Discussion of security issues relative to the Naval Reserve Station located on Lakeshore Drive. ........................................................................ 26 ADJOURNMENT ............................................................................................... 27 PAGE

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THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MINUTES OF MONTHLY BOARD MEETING MARCH 15, 2006 __________________________________________________________ The regular monthly meeting of the Board of Commissioners of the Orleans Levee District was held on Wednesday, March 15, 2006, 1:25 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 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 Brenda Hatfield, Commissioner The Honorable Darrel J. Saizan, Jr., Commissioner The Honorable David R. Voelker, Commissioner ABSENT: The Honorable Eugene J. Green, Jr., Commissioner The Honorable Cynthia Willard-Lewis, Commissioner ALSO PRESENT: Bruce White, Coconut Beach Demarcus Gordon, Gordon, Arata Matt Randazzo, Gordon, Arata Michael Botnick, Gordon, Arata Jarrell Godfrey, The Godfrey Firm Richard McCloskey, RCL Consultants Patrick Bartley, Broadmoor, L.L.C. Fred O’Boyle, Broadmoor, L.L.C. Jamie Walter Ray Hoffman, Hoffman & Haggerty, L.L.C. Mark Waln, Lake Vista Addie Fanguy, Million Air Ann Duffy, Lake Oaks Neighborhood Association Elsa Gaskell, West End Tennis Club Broderick Grubb, Hub International Fred Herman John Holtgreve, DEI

1

THE BOARD OF COMMISSIONERS OF THE ORLEANS LEVEE DISTRICT MINUTES OF MONTHLY BOARD MEETING MARCH 15, 2006 __________________________________________________________ ALSO PRESENT: (continued) Tom Barbera Michael Chopin, BKI Walter Baudier, DEI Tim Avegno, Eagan Insurance Agency Hamid Alizadeh, SCI Fred Young, US Army Corps of Engineers Ray Landish 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 Louis Durr, Operations and Maintenance Albert Pappalardo, Pappalardo Consultants Cynthia Taylor, Human Resources Robert Maureau, South Shore Harbor Dawn Wagener, Finance Department Rick Loggins, Information Technology Mary Herbert, Comptroller Pam Zeringue, Purchasing Department Gerry Gillen, Engineering Department Donald Booth, OLD Police Richard Lewis, OLD Police Nina Hebert-Marchand, Compliance Department Carol Kiefer, Auxiliary Services Commissioner Voelker 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. Mr. Frederick Young with U.S. Army Corps of Engineers Task Force Guardian, which is charged with rebuilding the levees in the metropolitan area, explained he is the project manager assigned to the Orleans East Bank Basin, which consists basically of the three outfall canals and Lakefront protection. Mr. Young reported presently 59 contracts are underway, with the majority in Chalmette, Plaquemines and New Orleans East being 40 to 50 percent complete. 2

Contracts were recently awarded for the three closure structures at the Orleans, London and 17th Street Canals, with most of this contract activity currently taking place at the pre-fabrication yards. Jackets, piles and other required supplies are being prefabricated and will be brought to the sites where the structures will be built fairly quickly. He anticipated a flurry of activity, basically 24 hours a day/seven days a week, during April and May at the sites. Currently, piles are being driven for cell structures that will be part of the final control structures. Sheet pile with a maximum 4-ft stickup will be driven to reinforce the levees from the Orleans and London closures to the lakefront levees in order in to provide a consistent elevation and prevent overtopping. The sheet pile will go down an average elevation of -48, to cut off seepage in the area where the WPA pumped in fill with different types of materials under the existing levees. Scour repairs are being performed along the Lakefront levee, with dirt and new sod. Also, in several locations spalled concrete and floodwall cracks are being repaired. Nine contracts have been awarded on the IHNC, with the last contract award being the scour protection behind the wall located in the Ninth Ward. Ten contracts in New Orleans East are underway, with the latest contract awarded for repair around the pumping stations. Contracts are on-going on the back levees in Chalmette and along the MRGO. Commissioner Foley asked about the possibility of land south of Robert E. Lee along the London Avenue Canal being expropriated by the Corps. Mr. Young advised, Corps’ appraisers have been looking at all the land to determine what is owned by the property owners on the Pratt side near the canal. Ownership--whether private, Orleans Levee District or the Sewerage & Water Board--has not yet been determined relative to an alleyway along the floodwall. Information has been collected on the properties, which appear to be 130 feet deep, in the areas of the breaches. The Corps is concerned about the

3

trees located within 15 feet of the levee and floodwall toe, which can effect the stability of the levee and if fallen can damage the ground near the floodwall, and the removal of the trees in the 15-foot strip is being considered. There are still on-going discussions and no property is being expropriated at this time; however, in the breach areas the Corps is looking to expropriate probably 15 feet beyond the toe of the new levee, which probably will not affect a single piece of property as far as expropriating the whole property. The Corps is also considering the removal of trees in the levees or on the levee toe along the London Avenue and 17th Street Canals, and discussions are on-going as to how this matter will be addressed. At some point the 15 foot free zone may run the entire length of the levee on both sides of the canals. Mr. Young showed six trees and shrubs in the area of the London Avenue Canal which will be removed in order to drive sheet pile. Commissioner Foley asked, if there is a more permanent solution that replaces the structures in the Canal, would the 4-ft. length of sheet pile remain above the levee? Mr. Young responded the sheet pile may be left in and cut down to the top of the levee, as long as that type of protection is not needed in that area. He anticipated that with a pumping station at the front of the canal at the lake, a 14-ft. to 16-ft. elevation would no longer be required inside of the flood protection. Mr. Young showed a diagram of a typical control structure, which includes a series of gates, with pump platforms placed behind the structure. The pumps will be driven by motors located on raised platforms outside of the canal. The motors will be diesel driven, with approximately four days of diesel fuel to be kept on site. Ms. Anne Duffy, President of the Lake Oaks Neighborhood Association, asked whether the Corps of Engineers will do anything about the erosion behind the seawall. Mr. Young responded the fill removed at the three sites where the control structures will be built will be dried out, the Corps will assure there are no

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contaminants and then dispose of the fill along the Lakefront where it can be used by the Orleans Levee District behind the seawall or in any other manner needed. President McCrossen pointed out that the Lakefront area will be discussed under Communications. Mr. Young advised that the Corps is working with Coconut Beach at the 17th Street Canal. At the present time the entire yard is being utilized; however, as construction is on-going, they will try to maneuver the yard and determine what area can be freed to help Coconut Beach get back into operation, since this facility provides revenues back into NORD. President McCrossen thanked Mr. Young for his report. II. APPROVAL OF MINUTES: There were no corrections, additions or deletions to the minutes of the Regular Board Meeting held on February 15, 2006; therefore, the minutes of the Regular Board Meeting held on February 15, 2006 were approved as submitted. III. A. MOTIONS: To authorize employment of the Godfrey Firm, P.L.C., as counsel to do and to perform legal and professional work relating to post Hurricane Katrina general financial matters, subject to review and authorization by the Legal Department or Chairman of the Legal Committee; to direct that said engagement be submitted to the Attorney General’s office for approval; and to authorize the President or appropriate Director to sign any and all documents necessary to carry out the above. Vice President Borne explained that Mr. Godfrey’s expertise is needed to represent the Board before the Bond Commission, and in the area of the District’s outstanding bonds and other financial matters. The contract has been reviewed and is in the District’s new contract format, and Vice President Borne recommended approval. Mr. Godfrey outlined the scope of services, which includes meeting with bond insurers, rating agencies and tax collecting entities, reviewing drafts of the Finance Department staff’s submittals to the Legislature for legislative drafting purposes, and keeping the District in compliance with reporting

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requirements. At some point an interface will be necessary between the Orleans Levee District and Division of Administration, and possibly the crafting of a Cooperative Endeavor Agreement and working out how the finances will be handled so as not to impair bond obligations. Services will be only at the request of the Legal Committee, the President or General Counsel. There was no further discussion on the motion, therefore, Resolution No. 1-031506, offered by Vice President Borne, seconded by Commissioner Saizan, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 1-031506 1-031506 Vice President Allen H. Borne, Jr. Chairperson, Legal Committee Commissioner Darrel J. Saizan, Jr. March 15, 2006 RESOLUTION A resolution authorizing the President to engage the Godfrey Law Firm to perform services relating to post Hurricane Katrina general financial matters, subject to review and authorization by the Legal Department or Chairman of the Legal Committee. WHEREAS, the Godfrey Firm, P.L.C. has the experience and knowledge of the financial matters of the Orleans Levee District, and is ready and available to undertake such engagement; and WHEREAS, it is the recommendation of the Legal Committee that the Godfrey Firm, P.L.C. be requested to do and to perform, from time to time as directed by the District, comprehensive, legal and coordinate professional work relating to post Hurricane Katrina general financial matters, subject to the review for the necessity of such legal services and authorization of the Legal Department, the President or the Chair of the Legal Committee (in said order); and WHEREAS, the aforementioned legal work shall include, but not be limited to, comprehensive, legal, and coordinate professional financial work, discussions with bond insurers, counseling regarding existing or potential

SECONDED BY:

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defaults on outstanding bonds, assisting in preparing a financial recovery plan, advice with respect to availability and remedies under Chapter 9 of the Federal Bankruptcy Act applicable to political subdivisions of the state, assisting in developing a Katrina Recovery Plan, borrowing, restructurings of outstanding debt through the issuance of restructuring/refinancing bonds, coordinating and authorizing a working capital financing facility, and other related matters; and WHEREAS, the Godfrey Firm is to be compensated at the rates approved by the Attorney General, as set forth below: NAME: Jarrell E. Godfrey, Jr. Elizabeth Earnest Patrick Files Julie G. Hines, CPA John S. Godrey Paralegals RESPONSIBILITY: Supervising attorney HOURLY RATE: $225.00 $175.00 $175.00 $135.00 $100.00 $ 35.00

WHEREAS, with respect to any post Katrina matter involving the issuance of debt which is actually delivered, credit will be allowed for amounts previously paid on the hourly rates basis, with respect to the issuance of such issued debt against a fee calculated in accordance with the Louisiana Attorney Generals’ fee schedule for “Coordinate professional Work with Respect to Revenue Bonds” (the “Fee Schedule”); and WHEREAS, the Godfrey Firm, at the request of staff and the Acting President of the District, has been working on such matters since November 2, 2005, and the Firm shall be paid for activities relating to this subject engagement from said date; and WHEREAS, said engagement shall be submitted to the Louisiana Attorney General’s office for approval. BE IT HEREBY RESOLVED, That a real necessity exists to retain special counsel experienced with financial matters and the debt structure of the District, and accordingly, the Godfrey Firm, P. L. C., New Orleans, Louisiana, is

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hereby employed as counsel to do and to perform legal and professional work as set forth in this Resolution. BE IT FURTHER RESOLVED, That said engagement be submitted to the Attorney General’s office for approval. BE IT FURTHER RESOLVED, That the President or appropriate Director be authorized to sign any and all documents necessary to carry out the above. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Hatfield, Saizan and Voelker None Commissioners Green and Willard-Lewis

RESOLUTION ADOPTED: Yes B. To select counsel for services related to Bohemia litigation and claims, and oil and gas matters; to direct that this Resolution be submitted to the Office of the Attorney General for the State of Louisiana for approval; and to authorize the President or the Director of Real Estate, Recreational and Non-Flood Assets to sign any and all documents necessary to carry out the above. (Recommendation to be made and resolution to be presented at Board meeting.) Ms. Cornelia Ullmann, Interim Counsel, advised that Mr. Hoffmann and representatives of Gordon and Arata were present. Mr. Milazzo was not in attendance due to a scheduling conflict. Presentations were made at the Legal Committee meeting. Commissioner Foley stated this issue had been discussed at several meetings he was aware of the immediate need for these services. He indicated he had spoken with the individuals who had authority within the Attorney General’s Office to assign counsel from the Natural Resources section and was told yesterday that there was a probability that Attorney General Foti could assign an oil and gas lawyer to the District at no cost for the balance of the year. In order to afford Attorney General Foti’s representative sufficient time to speak with President McCrossen and Ms. Ullmann for confirmation, Commissioner Foley offered a motion to table the motion for thirty days, which was seconded by Commissioner Voelker and unanimously adopted.

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Ms. Ullmann pointed out the urgent need for assistance in the routine Bohemia Spillway matters. C. To ratify the agreement authorized with Broadmoor, L.L.C. for the emergency cleanup, installation of rip-rap and grading of the runways at the New Orleans Lakefront Airport and installation of a temporary roof on the Franklin Avenue Administration Building; to approve execution of a written contract with Broadmoor, L.L.C. for said emergency services and for the price and sum of $1,235,277.06, which shall not be exceeded, and that funding be designated in the General Fund for FY 2006; and to authorize the Chief Engineer/ Director Hurricane and Flood Protection of the Orleans Levee District or the President or Vice-President to sign any and all documents to carry out the above. Commissioner Voelker asked whether this cost could be dealt with by the successive entity handling the Airport. Mr. Stevan Spencer explained this cost has been submitted, reviewed and priced out by FEMA, and should be 100 percent reimbursable as a clean up cost. Mr. Randy Taylor, Director of Aviation, added, funding should be reimbursable either through FEMA or insurance proceeds. Commissioner Foley clarified this is the ratification of an emergency contract that was let some time ago. Commissioner Saizan stressed, no matter which entity takes over the Airport, the Airport has immediate issues that need to be solved and this work needed to be done. Vice President Borne stated Mr. Gerry Metzger, Legal Counsel, has reviewed the contract and recommended it be capped at $1,235,277.06. Commissioner Foley offered a motion that the contract that the Board executes be approved with additional language that specifies the sum of $1,235,277.06 is a ceiling which cannot be exceeded, which was seconded, and unanimously approved. There was no further discussion on the motion, therefore, Resolution No. 3-031506, offered by Commissioner Saizan, seconded by Vice President Borne, was unanimously adopted, to-wit: MOTION: RESOLUTION: 3-031506 2-031506 9

BY:

Commissioner Darrel J. Saizan, Jr., Chairperson Planning, Engineering and Construction Committee Commissioner Allen H. Borne, Jr. March 15, 2006 RESOLUTION WHEREAS, on August 29, 2005 Hurricane Katrina struck the State

SECONDED BY:

of Louisiana resulting in catastrophic flooding and damage, including in the City of New Orleans, and caused extensive damage to private property and public facilities in southeastern Louisiana; and WHEREAS, Hurricane Katrina caused emergency declarations to be issued by Governor Blanco on August 26, 2005 and by President Bush on August 27, 2005; and WHEREAS, the impact of the Hurricane on New Orleans Lakefront Airport caused catastrophic damage as a result of both wave/surge and wind action, and mud from Lake Pontchartrain was deposited on the runways and debris from the Airport facilities covered practically the entire 480 acres of the Airport; and WHEREAS, shortly after the Hurricane, the FAA notified the Orleans Levee District that reopening the New Orleans Lakefront Airport as soon as practicable was a top priority, and the District was also determined to have the Airport reopened without delay; and WHEREAS, the District was not in a position to commence the work required to reopen the Airport with its equipment and employees; and WHEREAS, the OLD was contacted by Broadmoor, L.L.C., a large, well known local contractor, which offered its services to immediately begin the Airport cleanup, and the offer submitted by Broadmoor was only extended for a short duration because of the great amount of other work available to Broadmoor for the restoration of Southeast Louisiana; and WHEREAS, the Orleans Levee District had to act quickly to secure the services of Broadmoor, L.L.C., which was an experienced company with a

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good reputation for the type of heavy work required to cleanup the runways and reopen the Airport; and WHEREAS, for these reasons, the District authorized Broadmoor to start and complete the Lakefront Airport cleanup, and under the agreement entered into with Broadmoor, charges for services rendered were to be based on time and materials in view of the many unknowns involved in the cleanup work at the Airport, including weather, the availability of personnel, and the equipment necessary to access the site; and WHEREAS, the services provided by Broadmoor included not only debris removal at the Airport and installation of rip-rap along the Airport bulkhead to fill eroded areas to prevent further loss and damage to the public runway/taxiways, but also installation of a temporary roof on the Franklin Avenue Administration Building; and WHEREAS, Broadmoor, L.L.C. has submitted a statement for services rendered pursuant to the authorized agreement in the amount of $1,204,561.56 for the airport work and $30,715.50 for the roof repair, and the statement has been reviewed by the Board’s Engineering Consultant which has recommended payment; and WHEREAS, the cost of the airport emergency work is subject to reimbursement by the Federal Emergency Management Agency. BE IT HEREBY RESOLVED, That the Board ratifies the agreement authorized with Broadmoor, L.L.C. for the emergency cleanup, installation of riprap and grading of the runways at the New Orleans Lakefront Airport and installation of a temporary roof on the Franklin Avenue Administration Building. BE IT HEREBY FURTHER RESOLVED, That the Board approves execution of a written contract with Broadmoor, L.L.C. for said emergency services and for the price and sum of $1,235,277.06, which shall not be exceeded, and that funding be designated in the General Fund for FY 2006. BE IT HEREBY FURTHER RESOLVED, That the Chief Engineer/Director Hurricane and Flood Protection of the Orleans Levee District or

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the President or Vice-President of the Orleans Levee Board be and is hereby authorized to sign any and all documents to carry out the above. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Hatfield, Saizan and Voelker None Commissioners Green and Willard-Lewis

RESOLUTION ADOPTED: Yes D. To approve a lease with Fluor Enterprises, Inc. for the Jimmie Wedell Hangar, including approximately 18,000 square feet of hangar deck, plus approximately 184,000 square feet of concrete, at an approximate rental rate of $10,683 per month, to provide covered areas for maintenance and servicing purposes related to the provision of FEMA trailers, for a period of 90 days, extended monthly by mutual agreement; 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. Randy Taylor, Director of Aviation, reported a representative advised yesterday that Flour Enterprises wishes to rent the Jimmie Wedell Hangar, in lieu of the Walter Wedell Hangar, and an addition area, and estimated the monthly rental at $9,640 per month, subject to modifications as needed. Vice President Borne offered a substitute motion to include the modifications requested by Mr. Taylor, which was seconded by Commissioner Hatfield. There was no further discussion on the substitute motion, therefore, Resolution No. 3-031506, offered by Vice President Borne, seconded by Commissioner Hatfield, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 4-031506 3-031506 Vice President Allen H. Borne, Jr. Acting Chairperson, Finance Committee Commissioner Brenda Hatfield March 15, 2006 RESOLUTION

SECONDED BY:

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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 including within the City of New Orleans; and WHEREAS, Fluor Enterprises, Inc., a California Corporation authorized to do business in Louisiana, has been authorized by FEMA to construct, provide and service temporary housing in Louisiana for residents displaced by Hurricane Katrina; and WHEREAS, Fluor Enterprises, Inc. presently leases a large parcel of paved ramp at Lakefront Airport (the East Ramp) for the purpose of staging and servicing FEMA trailers; and WHEREAS, Fluor Enterprises, Inc. has additionally requested to lease (as-is) one of the Wedell Hangars located on the east side of the Airport, adjacent to the presently leased East Ramp, to provide covered areas for maintenance and servicing purposes related to the provision of FEMA trailers; and WHEREAS, Fluor Enterprises, Inc. proposes to lease both a hangar and adjacent ramp at rate of $1.50 per square foot per annum for hangar deck and $0.55 per square foot per annum for paved ramp, 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 hangar and adjacent ramps are not in condition to lease 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 Fluor Enterprises, Inc. for the Jimmie Wedell Hangar including approximately 18,000 square feet of hangar deck, plus approximately

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184,000 square feet of concrete, at an approximate rental rate of $10,683 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, Hatfield, Saizan and Voelker None Commissioners Green and Willard-Lewis

RESOLUTION ADOPTED: Yes E. To approve revisions to the Fiscal Year 2006 General Operating and Major Maintenance/Capital Improvement Budget and Special Levee Improvement Projects (SLIP) Fund Budget. There was no discussion on the motion, therefore, Resolution No. 4-031506, offered by Vice President Borne, seconded by Commissioner Hatfield, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: 5-031506 4-031506 Vice President Allen H. Borne, Jr. Acting Chairperson, Finance Committee Commissioner Brenda Hatfield March 15, 2006 RESOLUTION WHEREAS, by Resolution No. 4-011905, the Board approved the General Operating and Major Maintenance/Capital Improvement Budget, and Special Levee Improvement Projects (SLIP) Fund Budget for Fiscal Year 2006 to provide for required expenditures for personnel services, contractual services, operating supplies, equipment, annual debt service and capital projects; and WHEREAS, a review of the operations to date indicates that for accounting purposes, budget revisions and adjustments are necessary to be in budgetary compliance in several areas of the general operating and SLIP Fund budgets, all as indicated on the financial schedules attached hereto and made a part hereof: 14

SECONDED BY:

General Operating Budget 1. 2. 3. 4. 5. Decrease in Revenues Decrease in Expenditures Increase in Other Financing Sources Increase in Other Financing Uses Accumulated Prior Year Funds SLIP Fund Budget 1. Decrease in Revenues 2. Decrease in Expenditures $ $ 7,140,394 900,000 $ $ $ $ $ 15,158,302 4,807,726 750,000 743,324 10,342,225

WHEREAS, the foregoing adjustments are determined to reflect the projected operating requirements based on the latest revenue and expenditure estimates. BE IT HEREBY RESOLVED, That the revisions to the Fiscal Year 2006 General Operating SLIP Fund budgets are approved. AYES: NAYS: ABSENT: Commissioners Borne, Foley, Hatfield, Saizan and Voelker None Commissioners Green and Willard-Lewis

RESOLUTION ADOPTED: Yes F. To approve the Fiscal Year 2007 General Operating and Major Maintenance/Capital Improvement Budget and Special Levee Improvement Fund Budgets. Commissioner Foley requested, in order to have sufficient time for detailed discussion and to receive input from the Coastal Protection and Restoration Authority (CPRA), which will be meeting with the District’s staff on Monday, that a decision on the budget be postponed and that the Board have a Special Board Meeting devoted exclusively to these budgetary matters. He then offered a motion to table the motion for a period of three weeks to be brought up at a Special Board Meeting to be called by the President prior to March 31, 2006, which was seconded by Commissioner Voelker. Commissioner Voelker asked about the oil and gas report and assumptions, which he felt should be a part of Monday’s meeting with the CPRA.

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President McCrossen indicated everyone was e-mailed the oil and gas report, and after the Committee meetings the recommended budget was forwarded to the CPRA. He further invited any Commissioner who wished to attend to Monday’s meeting with the CPRA. After a brief discussion the Board agreed on a date and time for the special meeting, and Commissioner Foley amended his motion to table the motion to be brought up at a Special Board Meeting on Thursday, March 23, 2006 at 11:00 a.m., and that the President be directed to issue the appropriate notice to call the Special Board Meeting, which was seconded by Commissioner Voelker, and unanimously adopted. G. To approve and authorize Professional Service Contracts with the consultants listed in this resolution to complete the associated projects; to provide that the awarded projects be prioritized and authorization to proceed to depend upon the financial ability of the District to fund the projects within the contract; to provide that the appropriate Director direct additional work items as identified by FEMA to any of the consultants listed through Supplemental Agreements; and to authorize the President, 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. Ms. Ullmann advised a copy of the substitute motion was provided to the Commissioners, which revised some of the language to clarify the intent. Mr. Louis Capo, Director Real Estate, Recreational and Non-Flood Assets, explained the Engineering Department advertised a Request for Qualifications and responses were received from five civil engineers, two architects and one electrical engineer, all of which were qualified. The selection committee met and scored the firms and the proposed assignments were included in the resolution. Mr. Gerry Gillen further explained, after evaluating and rating the firms, the selection committee looked at the strengths of each firm and developed this list. Fees offered for design services were limited by the FEMA curve; therefore, those firms experienced and familiar with certain projects were designated to continue work on those projects. FEMA will pay for 90 percent of uninsured projects, and the Orleans Levee District will have to come up with 10 percent. The District has received $6 million of the estimated $13 million of flood 16

and wind insurance proceeds, which is available to begin work, and approximately $7 million of FEMA funds are in the Baton Rouge account available for FEMA projects. Commissioner Saizan expressed his concern about the recovery of the lakefront park area. Ms. Ullmann pointed out the Orleans Levee District is the local sponsor, however, in the past the State has shared in 10 percent local share for FEMA projects. Mr. Gillen explained the Airport and South Shore Harbor buildings were insured; however, the bulk of the projects, which were not buildings, are to be funded by FEMA. The District is going forward with the design of the projects and the 10 percent match for design will be small; however, the larger 10 percent match for construction will need to be discussed. Architects will do an independent structural analysis to determine whether a building should be repaired. Projects will be prioritized, and, in order not to over obligate the District, funding for those projects last on the priority list may be used initially to fund some of the higher priority projects to get those facilities back into commerce. Vice President Borne asked that the Board be appraised if funding is taken from one project to fund another. Ms. Kiefer reported the South Shore Harbor Harbormaster Building maxed out the flood insurance at $332,800 and the amount for wind damage has not yet been received. Mr. Bob Maureau, Senior Marina Manager, advised the South Shore Harbor Harbormaster Building has been infested with termites for many years and is located on Airport property. He recommended the building be demolished and relocated to marina property. Vice President Borne asked whether the Harbormaster Building’s funding could be used for the design of a new building, and Mr. Gillen responded

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that could be done, and if the building is under-insured, FEMA could be approached relative to an alternate project for additional funding. Mr. Capo pointed out that any monies provided by FEMA for a certain project must be used for that project. There was no further discussion on the motion, therefore, Resolution No. 5-031506, offered by President McCrossen, seconded by Commissioner Saizan, was unanimously adopted, to-wit: MOTION: RESOLUTION: BY: SECONDED BY: 7-031506 5-031506 President Michael P. McCrossen Commissioner Darrel J. Saizan, Jr. March 15, 2006 RESOLUTION WHEREAS, the Orleans Levee District sustained catastrophic damage to the majority of its facilities as a result of Hurricane Katrina; and WHEREAS, the facilities located at the New Orleans Lakefront Airport, South Shore Harbor, Orleans Marina and Lakefront roadways and recreational areas require repair for safety and revenue production for the District; and WHEREAS, the District was insured for flood and wind on a majority of the facilities, and those facilities under-insured or not insured will be repaired with FEMA funds; and WHEREAS, insurance proceeds and FEMA funds are in the process of being received by the District; and WHEREAS, in order to move forward with the repairs, the District requires the services of architects, civil engineers and an electrical engineer to prepare plans and specifications for public bid; and WHEREAS, a Request for Qualifications was advertised and Statements of Qualifications (SOQ’s) were received on March 3, 2006 for architects and engineers; and

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WHEREAS, the SOQ’s of the single electrical engineer, two architects and six civil engineers were evaluated by an in-house selection board and all firms were determined to be qualified for the required services. BE IT HEREBY RESOLVED, That the Board approves and authorizes Professional Service Contracts with the following consultants to complete the associated projects: Civil Engineers ECM Consultants, Inc. - Airport projects, including sewerage pump stations, wash rack, fuel farm retention walls and southwest retaining wall drainage. Design Engineering, Inc. – Lakeshore Drive Reaches 1, 2, 3, 4 and 5 repairs to utilities, roadway, erosion, and any future mitigation allowed by FEMA. Burk-Kleinpeter, Inc. – Orleans Marina and New Basin Canal facilities. Shaw-Coastal, Inc. – South Shore Harbor, including clean-up, repairs to piers and utilities. Hartman Engineering, Inc. – Seabrook Boat Launch and picnic area, South Shore Harbor floating piers, roadways, parking areas, aids to navigation. Architects Murray Architects, Inc. – Orleans Marina Harbormaster and Schubert Marina Buildings; South Shore Harbor Harbormaster, public restroom, guard house, boathouses, and east marina buildings; Lake Vista Community Center building and sign; Lakefront picnic shelters, bus stops, police station, and playground equipment; Franklin Facility Warehouse and Loft Buildings. Richard C. Lambert Consultants, L.L.C. – New Orleans Lakefront Airport Administration Building, Hangars, FAA Building and fire station. Electrical Engineers Burk-Kleinpeter, Inc. – New Orleans Lakefront Airport main power distribution system and twenty electric vaults and transformers. BE IT FURTHER RESOLVED, That the awarded projects be prioritized and authorization to depend upon the financial ability of the District to fund the projects within the contract.

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BE IT FURTHER RESOLVED, That the appropriate Director direct additional work items as identified by FEMA to any of the consultants listed through Supplemental Agreements. BE IT FURTHER RESOLVED, That the President, 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, Hatfield, Saizan and Voelker None Commissioners Green and Willard-Lewis

RESOLUTION ADOPTED: Yes IV. 1. COMMUNICATIONS: Discussion of Lakeshore Drive. Mr. Stevan Spencer reported the Corps of Engineers will provide the District with fill material from its projects through July 1st, which can be used in the area between the seawall and the north side of Lakeshore Drive. FEMA has proposed a half-million dollar mitigation project for at least one section between the roadway and seawall, similar to the promenade in front of the Mardi Gras Fountain, and should that section be approved, FEMA will proceed with other sections along the Lakefront. Storms and northeasters have been eroding the area behind the seawall for years, causing the District to expend a lot of money to clean the roadway and replace the fill. President McCrossen pointed out the seawall is not considered a Federal project; therefore, the Orleans Levee District has had to foot the bill to refurbish that area. FEMA has now been asked to intercede. President McCrossen explained he has asked the Coastal Protection and Restoration Authority for assistance, and they have turned to the Governor and petitioned Congress to include the seawall as a Federal area in order to receive funding. Mr. Spencer pointed out there are two particularly bad areas--one at Canal Boulevard and the lake, and the second in front of Shelter 2. He further

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advised the District no longer has roadway and bridges insurance, and there are no lights along Lakeshore Drive, and that staff is concerned about safety along the roadway itself and has discussed closing the north side lane in sections with special signage to prevent possible problems, and closing the entire area north of the roadway to the seawall due to scouring. The two south side lanes (east bound) and one north side lane (west bound) would be remain open. The Engineering Department is attempting to obtain estimates for temporary repairs for the area around Shelter 2. Chief Richard Lewis, OLD Police Superintendent, expressed concern about the safety of the area, and felt since there are currently no restroom facilities and the park is torn up, if the Board could not close the area in its entirety, then it should at least be closed at night for safety reasons. Ms. Carol Kiefer, Auxiliary Services Director, concurred, advising the green space is unsafe due to holes and debris, and until the area can be cleaned for its intended purpose, it should be closed. Commissioner Saizan asked whether a plan was in place to clean the area. Mr. Spencer explained in the past week a great deal of trash has been cleared and the Corps of Engineers has been removing stumps that were not previously removed and backfilling holes. Welders will be sent to cut the rebar sticking out from the broken bench foundations. Playground equipment has been fenced off with safety fencing, and the Engineering Department is looking into fencing the Shelterhouses due to safety hazards such as loose bricks. President McCrossen commented that everyone is in agreement that the seawall side should be closed to all pedestrian traffic and that no vehicular traffic should be allowed to park on that side due to damage. The question remained as to what degree and how effectively could the green space be limited to pedestrian traffic.

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Vice President Borne indicated, in view of the fact that the District does not currently have liability insurance and of the conditions along the lakefront, the Board should consider staff’s recommendation. President McCrossen advised it was felt a Board decision was not necessary, and that an internal decision would be made by staff; therefore this item was placed on the agenda as a Communications item so that it could be brought before a public forum for input. He felt, until the District has a specific plan, and the money and manpower to implement it, the seawall side of the roadway should be closed. He asked Mr. Stevan Spencer, Director of Hurricane and Flood Protection, and Mr. Louis Capo, Director of Real Estate, Recreational and Non-Flood Assets, to develop a formal plan, immediately closing the most dangerous area and closing the area during the night, and present it to the Board. Commissioner Foley asked whether the nighttime closure was also for vehicular traffic, and Chief Lewis responded that vehicular traffic could be allowed and the District could determine whether traffic could effectively be kept moving through the area. Commissioner Saizan asked that part of the next report on Lakeshore Drive include what assistance can be expected from FEMA and/or any other entities, and further commented, even if the District can only make one side of Lakeshore Drive safe for public use, then it should attempt to do so. Mr. Albert Pappalardo commented the District’s Police Chief and insurance manager have come before the Board, and the District does not have liability insurance; therefore, the Board would be taking a tremendous risk allowing anyone to negotiate the green space. Six months ago, one could travel on Lakeshore Drive; however, there was a check point with two National Guardsmen at one end and periodically throughout. He did not see a problem with allowing vehicular traffic to continue moving through the area; however, until such time as the hazards on the green space can be identified and quantified, he asked, why wouldn’t the Board consider making the entire Lakefront off limits

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because of safety reasons, but allow traffic to flow. He suggested more work could be done if time and money are not spent just fencing hazards. A clarification was requested on this item, and Ms. Ullmann replied her understanding was that a staff decision would be made based on the Insurance, Legal and Police Departments’ determinations as to safety. 2. Discussion of retaining the services of a public adjuster. President McCrossen commented he had voiced his displeasure in the process delay and asked Mr. Avegno to outline his roll. Mr. Tim Avegno with Eagan Insurance Agency explained, as the agent for the property insurance, his duty is to notify the insurance company at the time of loss, which was done in late August-early September. The Orleans Levee District must then furnish proof of loss, which has been done since September. Hartford used independent adjustors to analyze the damages for the past six to seven months. Hartford has come up with a summary of what they feel is wind damage, and in turn it is up to the District as the insured to either agree or disagree with that summary. When the advance payment was delayed, Mr. Avegno called the Boston office and had the check in the amount of $947,000 delivered within the week. He explained, the District has yet to agree or disagree with Hartford’s figures, and the only way to do that is to get bids for the damages, and determine whether the District agrees with the assessment of flood vs. wind damage. The problem with the District’s engineering survey of damages which was done in November was that it did not differentiate between flood and wind damage. The District was given a summary of every building analyzed and replacement cost vs. actual cash value is provided. The actual cash value was used for Hartford to come up with the $947,000 advancement; however, replacement cost will eventually be awarded once the damages are replaced or repaired. Ms. Kiefer further explained this is an on-going process--as bids come in, they are submitted to the adjustor and the insurance company pays that particular amount. Also, supplemental claims can be submitted.

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Commissioner Foley commented in some instances the in-house engineering staff may be in a position to agree or disagree with Hartford relative to wind damage, and the list could be narrowed to those instances where further investigation is warranted and a structural engineer may be necessary. Ms. Kiefer pointed out that the engineers and architects approved today will used on these projects, and Mr. Gillen further advised the first task for these architects and engineers will be to assess the projects which they are assigned, and determine whether additional insurance proceeds should be received for wind damage. These architects and engineers will be redesigning these projects, therefore, they will be in a position to assess the true damage. Commissioner Foley pointed out, in addition to assessing the true damage, they must offer opinions in writing as to the cause of the damage. V. A. 1. COMMITTEE REPORTS: 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 Foley asked whether the District was being conscientious on a timely basis with its obligations relative to DBE requirements. Mr. Louis Capo advised engineering and architectural firms are required to address their DBE participation. Ms. Nina Marchand, Compliance Director for the DBE program, stated there was a problem with the Airport project and that a call was received

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from the FAA advising the District is about to receive $12 million and they did not see goals on these particular projects. She stated she has been attempting in the last month to obtain the actual FAA application, and even though the dollar figures may not be the entire amount to be received, she would be able to put on a wish list goals on those projects, and when the actual monies are received adjustments could be made and submitted to the FAA. Tentative goals were submitted to the FAA today, and those goals will probably come back with minor adjustments. She stated she used all of the data needed to be used to get to this point, but stressed the need to receive information early in the process. Goals will be included in the project bids, however, goals have not been placed in the designs. She stated she assured OIG today there was still time to place these goals. She further explained the need to be involved early in the process in order to develop forms and to advertise for community input. Commissioner Foley commented these are Federal regulations and the District did not want to frustrate any efforts to secure funding for the Airport, and asked when was the goal due. Ms. Marchand advised the goal was due on August 1, 2005, and was extended to March 1, 2006. She stated the reason this was not submitted on August 1st was because she was not given a wish list; i.e., Capital Outlay Projects or anything related to the FAA, on August 1st. Commissioner Foley asked Ms. Marchand whether she was in a position to rectify any delays and get this brought up to speed so that the FAA is not upset. Ms. Marchand replied, correct. Mr. Gerry Gillen advised years ago the Board expressed a 16 percent goal, which is placed in all advertisements for projects. After projects are awarded, Ms. Marchand assists in getting local DBE firms involved. The last FAA project met the 16 percent goal. He pointed out the FAA grant is not a block grant, but has been split, and, his understanding was, as long as there is participation under one of the other parts of the grant, it would reach the goal.

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Richard Lambert and Associates will be using a DBE firm for inspection and testing, which is a very large contract and a significant percentage towards the total goal. Ms. Marchand pointed out that under special legislation that was passed goals were due by March 1st on the $12 million total grant. President McCrossen stated he has requested Mr. Capo and Mr. Spencer to crystallize this situation. Mr. Capo pointed out that one of the engineering firms selected and approved is a DBE firm. Commissioner Foley commented, if the overall goal is met, it is not critically important that it is met across the board, so long as the total dollars of the $12 million equals the desired goal. VII. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. EXECUTIVE SESSION: O’Dwyer v. USA, et al, USDC EDLA 05-4181; Lambert v. OLD, et al., USDC EDLA 05-5931, CDC 2005-12295; N-Y Associates, Inc. v. OLB, La. 4th Cir. 04-CA-1598; Phillips Land Co., Inc. V. OLD, 25th JDC 52-857; OLD v. DNR, Phillips Land Co., 19th JDC 537,925; Union Title v. OLD, 19th JDC 537,924; OLD v. Union Title, 25th JDC 52-856; Succ of Carter Ursin, et al v. OLD, 25th JDC 53-112; In Re Isabelle Stevens Conner, 25th JDC 52-539; OLB v. Belle of Orleans, Civil District Court Case No. 06-283, Div. L; OLB v. Belle of Orleans, USDC, Southern District of Alabama; and Discussion of security issues relative to the Naval Reserve Station located on Lakeshore Drive. Commissioner Foley offered a motion to convene in Executive Session to discuss the items stated on the agenda, which was seconded and unanimously approved by a roll call vote. The Executive Session convened at 3:25 p.m. The Board reconvened in regular session at 4:00 p.m. Ms. Ullmann, Interim Counsel, advised the Board met in Executive Session and no action was taken.

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VIII.

ADJOURNMENT: Due to the absence of a quorum returning from the Executive

Session, Commissioner Foley offered a motion to adjourn the meeting, which was seconded and unanimously approved; therefore the meeting was adjourned at 4:02 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 March 15, 2006.

_________/S/_________________ LOUIS J. CAPO, SECRETARY

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