Algiers Development District
Board of Commissioners Meeting
Monday, April 14, 2008 • 4:00 p.m.
Louisiana State Capitol • Wimberly Room • Baton Rouge

The meeting of the Board of Commissioners for the ADD was called to order by Chairman Arnold at 4:30 p.m. Roll call was taken by name by Ms. Duplessis.

Members Present:
Board members present were Rep. Jeff Arnold, Val Exnicios, Senator Derrick Shepherd, House Speaker Jim Tucker and Rev. Arthur Wardsworth.

Others Present:
Executive Director Kathy Lynn Honaker, Office Administrator Vanessa Duplessis and several members from various other organizations who signed in.

Mr. Arnold referred the commissioners to the Rules of Order in the packet.

In addition, he read a letter (See Attachment A) received from Senator David Heitmeier appointing Val Exnicios as his permanent designee on the board. Senator Heitmeier will no longer serve on the board but Mr. Exnicios would be his representative. Mr. Exnicios was welcomed to the board of commissioners.

Old Business

Update on Assessment
Attorney Charles Rice presented the assessment response. He explained that this includes input from all members of the task force who were mentioned in the assessment. Mr. Rice has had contact with all the attorneys. He stated that in the summer of 2007, the board requested the legislative auditors conduct an assessment of the ADD and the legislative auditors issued a confidential assessment report which is not public at this point. He stated he has been hired by the board to draft the assessment response to the auditors on behalf of the ADD and address each of the recommendations to ensure all are completed as suggested.

Mr. Rice explained that he reviewed HB45, the CEA with the City of New Orleans, the City Council ordinances, City of New Orleans ordinances, and the City New Orleans charter and case law regarding whether a bill could be applied retroactively or prospectively. In addition, he stated he had conversations with Executive Director Kathy Lynn Honaker. He stated he took the findings with input from the other entities and drafted the response. He explained he believed there is a “political issue” with interpretation as to whether HB45 applied retroactively or prospectively and referenced that the two drafters of the legislation were present today in the audience and that they may be able to provide legislative intent. Mr. Rice stated that based on his review and opinion—HB45 ratifies all previous acts by ADD and that was the legislative intent. He further stated that if you read the legislative intent, it was to cure that sunset provision and ratify or correct all. It does not, however, say “retroactive” and if someone challenges it, they could say it does not contain the word “retroactive.”

Mr. Rice stated the two individuals were present who were responsible for drafting the legislation so let’s get their opinion. He introduced Mr. Brian Vincent and Ms. Tina Righteous and suggested the commissioners listen to them.

Mr. Vincent stated, “our job as drafters is to take a request. We do not interpret the intent of the legislation. They (the legislators) know the intent of the law. We are a bipartisan staff. Our job is to get what the legislator wants on paper.”

The City attorney in the audience made a statement questioning whether HB45 did ratify the acts by ADD.

Ms. Righteous stated, “HB45 corrected the sunset provision. HB45 ratified all acts back to the beginning of 1993 to the date of this act which would make all contracts and actions by ADD ratified and confirmed.”

Senator Shepherd made the following statements. “We need to look at legislative intent. That is legislative action and testimony. Subsequent to that, the court cannot imagine what the legislative intent was. The legislator himself said from 1993 to the time the legislation was adopted was his intent. The question of the sunset period is moot. The legislation is adopted and will not be turned over by any court. There is no gap. There is no argument.

We have not been challenged by a court so the presumption is that we existed due to actions by the city council and the legislature as they redefined the board and again referred to ACT 6.” Mr. Rice said “Senator Shepherd is absolutely correct in his summation of the issue and that it is the law.”

Senator Shepherd stated, “Mr. Chairman I am asking our attorney Mr. Rice to address the issues brought up by the city attorney and asking him if we need a bill in this session. Mr. Rice replied, “Frankly, legally it is fine without a bill, but politically it may be an issue for the city. I would have to defer to the city on the political issue.”

Mr. Rice replied, “If it is anything the city normally does, like street sweeping in Algiers you would have to go through the city. Otherwise, if it is one of the four focus item of the ADD, it would not have to go through the city.”

Mr. Rice referred everyone to section E-3 of Act 45 to avoid extra expenses prior to going outside you should go through the city for approval if it is a serviced provided by the city.

Senator Shepherd stated “If not ordinarily provided” is the key statement. ADD is empowered to do the four ADD things. Senator Shepherd further stated his understanding is that if we do those four things, we do not have to go to the mayor and council again. The legislation enacted us to not go through the city on these aforementioned items. Speaker Tucker stated that authorization of the mayor who was on the board at that time and we are not a city department and do not have to go thru RFPs like a state department or city department. It is my opinion that we did not have to go through the city on these as they were already approved for these four items. Mr. Rice agreed.

Mr. Rice read the ordinance which he stated is law over the city’s CEA. He explained that ADD could spend money on the focus areas of Kabel Drive, Federal City, Behrman Sports Facility Park, 20% local match and up to 10% for administrative and operating. You can spend the money once the city council approves the annual budget for ADD and the mayor has signed it.

Speaker Tucker stated ADD needed to go back to the City Council and correct this with them. He further stated it was not a problem explaining this to them. If the city wanted more clarification, we could provide them with that. It would have to be advertised to change HB45, but it is not necessary. House Bill 45 received legislative intent overwhelmingly in both houses with the Governor clearly stating the new legislation was to correct something in order to go forward with Federal City. Speaker Tucker explained the Governor stated this twice in public at the Westbank luncheon and in the newspaper.

There was discussion on the scope of the CEA and city Ordinance. The ordinance says the ADD has to have an annual audit and it should be sent to the mayor to approve. We were operating exactly per the ordinance.

Mr. Rice again stated that he read the ordinance. He explained the ordinance has greater standing than the CEA. The ordinance says the mayor and city council shall approve the budget annually. So each fall, the ADD should send their budget to the city for approval and send a copy of the annual audit for the record.

There was much discussion between new member Val Exnicios, Mr. Rice and the board bringing Mr. Exnicios up-to–date on several issues and explaining who some of the contracts were with.

After much discussion on the ordinances and CEAs it was decided ADD would meet with the city and discuss the fact they need to correct their documents as the state has done. Mr. Rice and Ms. Honaker will take the budget for 2008 to the city council for approval and signature by the mayor. A copy of the 2007 audit also will be sent to the city.

The subject of Federal City funding for 2008 was questioned. Speaker Tucker explained that our recommendations to the state are not to take the Federal City money through the ADD but let it go directly to the NOFA (501c3) through a contract with LED. There is no reason to run the Federal City money through ADD.

Speaker Tucker explained that the ADD was created for the TIF monies and to help Algiers with projects. ADD always knew Federal City would go to NOFA and the Master Developer and we would back off our involvement with Federal City once it is up and going this fall.

Much discussion was held on the TIF money and what ADD could do, including getting out of Federal City business. It was discussed that we are 150 days from being out of it and the developers and NOFA will take charge totally. The ADD will be prepared to do other things in the community and fill small gaps with Federal City if needed for the developer and NOFA. Once that happens we will focus mostly on non-Federal City issues. The board offered ideas about other projects for ADD or dissolving ADD. Ms. Honaker stated the auditors suggested to her that an update is needed to our focus areas in the fall of 2008 to take to the City Council for 2009.

Chairman Arnold passed out his changes to the Assessment document adding the board’s name to his letter as requesting. Rev. Wardsworth recalled that Senator Francis Heitmeier did this. Rev. Wardsworth said Chairman Francis Heitmeier stated publically in our minutes that we had asked for this assessment.

There was discussion confirming that Senator Francis Heitmeier proposed the Assessment to the board and the board unanimously voted for it. Senator Frances Heitmeier moved and the board acted. Mr. Rice asked Ms. Honaker to send those minutes to him and he would draft the letter.

Speaker Tucker made a motion to accept the recommended changes suggested by Chairman Arnold, seconded by Senator Shepherd. All voted to accept.

Speaker Tucker motioned to adopt the report with the attorney amendments and giving the attorney leeway to make changes as needed and discussed in this meeting and removing the city and city council references. Senator Shepherd seconded.

A vote was taken:

Chairman Arnold yes
Mr. Exnicios no
Speaker Tucker yes
Senator Shepherd yes
Rev. Wardsworth no

The motion passes and the report response is accepted by the board.

Mr. Exnicios had a couple of additional questions and input on the document.

Speaker Tucker stated the board appreciated Ms. Exnicios input on whatever revisions/changes he thought was needed to make HB45 stronger. Everyone agreed.

Ms. Honaker was questioned if ADD had heard from the attorney general regarding hiring Charles Rice. She confirmed her discussion and indicated the attorney general was sending a contract and rate scale. She anticipates receiving it in the next two days.

Mr. Exnicios inquired about $75,000.00 transfer to AEDF and asked if appropriate documents were available reflecting the transfer. An explanation on the historical data that was used for the transferred amount for office, supplies and staff pay for the year was elaborated by Mr. Rice. Chairman Arnold explained that AEDF is subject to audits by LED due to having contracts with LED.

Mr. Exnicios made additional recommendations to the response. Chairman Arnold made a motion to put in those recommendations which was seconded by Speaker Tucker. All approved.

Amended Budget 2008
Ms. Honaker was asked to cover the amended budget. She explained this budget was previously adopted last year but is now amended to reflect road repairs that ADD would help to pay in 2008. She reminded the board that this was requested at the ADD January 2008 board meeting. Ms. Honaker covered each of the amounts and work to be done, indicating 1.6 million total would be paid by ADD for the road repairs.

Mr. Exnicios inquired about Bearing Point, Apogen and Adams and Reese. He stated he had problems with payment of these bills. Chairman Arnold explained the contracts were approved by the attorney general’s office last fall. Again Ms. Honaker explained who Bearing Point is and that they act as Gen. Mize’s staff.

Ms. Honaker further stated the attorney general approved both Apogen and Bearing Point contracts in the fall per our request. This budget was approved fall of 2007. We are adding the road work for Algiers. If you don’t want the road work done, then you will not vote for it. I don’t think the citizens of Algiers are going to be happy if you do not approve the road work that has been promised said Ms. Honaker.

Ms. Honaker presented the amended 2008 budget to include the road repairs for Algiers of $1.6 million for 2008.

The vote was taken verbally to approve the amendment to the 2008 budget:

Chairman Arnold yes
Mr. Exnicios yes
Speaker Tucker yes
Rev. Wardsworth no

The motion carried to approve funding for Algiers road work and the projected budget is amended for presentation to the city.

Legal Status of ADD Financial Obligations
Mr. Rice gave his opinion that House Bill 45 returned the legal status to ADD and therefore ADD was approved to now pay bills. To provide Mr. Exnicios and update the board, Chairman Arnold explained that nothing has been paid since the legislative auditors informed ADD of its status earlier this year. Speaker Tucker made a motion to pay staff for all monies owed them. It was seconded by Rev. Wardsworth. All voted in favor. The checks were passed for signature by Interim-Treasurer Tucker and Chairman Arnold.

Chairman Arnold stated for the record that a vice chairman needs to be selected at one of our next meetings. He asked the commissioners to advise him if there were other items to be discussed at the next meeting.

Chairman Arnold asked for public comments. There were no public comments.

There was no further business and the meeting was adjourned at 6:30 pm.

Respectfully submitted,

Kathy Lynn Honaker