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Algiers Development District The meeting of the Board of Commissioners for the ADD was called to order by Chairman Arnold at 7:10 a.m. Roll call was taken by name by Ms. Duplessis. Members Present: Others Present: Chairman Arnold started the meeting with the Rules of Order and then read the following memo to be included for public records: “It is reflected in our minutes that in August 2007 the Algiers Development Board of Commissioners (A.D.D.) requested that the state’s legislative auditors and attorney general offices perform an assessment of the ADD organization in relation to the Federal City project. This is the largest economic development project in the entire state we wanted to ensure that everything necessary was put in place between our entity and our working partners to facilitate a seamless operation with a project of this enormous importance. Over 150 million dollars will be funded to the project alone in 2008. The ADD staff, our partners with the city and state and our past and present chairmen have worked diligently with the state offices in reviewing our entire operation and principle relationships with the city, state and NOFA(New Orleans Federal Alliance) which is the 501c3 group leading the Federal City project for us. The legislative auditors sent us the preliminary assessment which contains recommendations for us to review. We are working with our partners to put together a game plan to address each recommendation so that the ADD continues to operate in a transparent and ethical manner as this important project moves forward. There is nothing contained in this assessment to embarrass the ADD, any of our board members or our staff or partners. We simply cannot go public with the assessment until such time the legislative auditors release the final published report. At this time we plan to put the results on our website for the general public to access. We are proud of the work we have done and will do to make the Federal City project a reality for Algiers, New Orleans and the state of Louisiana.” Jeff Arnold Old Business Selection of Legal Counsel for Legislative Auditor Assessment Chairman Arnold stated that today’s meeting was to focus on the selection of legal counsel to represent ADD in its reply to the legislative auditor on the August 2007 Requested Assessment. He asked to open discussion on names of potential candidates. Speaker Tucker expressed that since the assessment is a short term process, consideration should be given to an attorney familiar with all facets of what we would be dealing with on this issue. He suggested we select a major law firm to go forward. He further expressed that in the last six (6) months, the Federal City project has gone from concept to reality and that it was important for ADD to hire permanent legal counsel for its long term needs. He indicated that ADD has used a small Algiers legal firm in the past, but that firm does not have the staff capacity nor is interested in providing legal advice to a $300 million dollar project. Assessor Arnold inquired what firms were used in the past. Speaker Tucker indicated firms used in the past have included Brian Adorno, Sher Gardner and Adams and Reese. Adams and Reese should not be considered as they represent the New Orleans Federal Alliance (NOFA) board. Assessor Arnold stated that he thought someone who is both an attorney and a CPA would be good for this project. He said we needed to select someone Legislative Auditor Steve Theriot would be comfortable working with. He recommended we continue to use Brian Adorno to finish this project as he has started it and has been an approved state auditor. He stated he heard the name of Val Exnicios as a possible candidate. He further indicated he thought that Mr. Exnicios’ firm had a case suing the Assessor’s office. He also said he would not provide the name of his personal attorney Ken Pickering to avoid a conflict of interest. Senator Shepherd inquired how to proceed. After much discussion, the board suggested selecting two names for two votes. There was discussion about Brian Adorno, his qualifications and staff size and the fact he conducted past audits for the ADD. Councilman Carter asked if Mr. Adorno was comfortable handling this issue and Speaker Tucker replied yes. Rev. Wardsworth inquired why these issues were not addressed by Mr. Adorno. Rep. Arnold informed the Commissioners as per the state’s legislative auditor’s request, they could not discuss the assessment in public. The commissioners inquired if they could go into executive session. Rep. Arnold informed them that not enough notice was given to go into executive session. Senator David Heitmeier stated he wanted to nominate Val Exnicios. He stated his resume and qualifications to the rest of the board and passed his resume for them to review. Assessor Arnold once again expressed his concern about a lawsuit against the Assessor’s office by Mr. Exnicios. Assessor Arnold said he is uncomfortable with conflict of interest being Senator Heitmeier’s attorney (Val Exnicios) or representing English Turn in a lawsuit against the Assessor’s office. Charles Rice was the third name presented by Assessor Arnold to the board for consideration. Executive Director Kathy Lynn Honaker asked the commissioners to strongly look at qualifications and criteria versus name recognition. She further said they should consider whether it would be a good idea to use their personal attorney or someone with a lawsuit against another board member. She expressed that they should be clear on the qualifications they would accept before nominating anyone. Chairman Arnold said for the long term we need to consider qualifications as well as experience working with the city and state. Chairman Arnold also stated he had problems hiring an attorney that is a personal attorney of a board member or that had litigation against any board member due to the recent ethics legislation passed. He said for the long term hire we need to have a list of qualifications for discussion before hiring our long term counsel. Senator Heitmeier explained for the record that Mr. Exnicios had worked as his personal attorney in the past. Councilman Carter asked if Brian Adorno performed legal work for anyone. Speaker Tucker responded that Brian Adorno worked as his personal CPA. Speaker Tucker further explained there would be a learning curve for a new attorney versus retaining Brian Adorno who was already familiar with this assessment process. Speaker Tucker said he respected Val Exnicios and thought he was a qualified attorney. Ms. Duplessis (a former employee of the Louisiana State Bar Association) informed the commissioners that a possible conflict may exist with an attorney representing the board who had a suit against any member of the board. She further explained that Mr. Exnicios would unlikely agree to represent the board because of possible unethical sanctions. Senator Heitmeier restated that he recommend hiring Val Exnicios, with the attorney general’s approval and disclosure. Speaker Tucker cautioned Senator Heitmeier he may not want to nominate his own personal attorney for the position as it may not look good. Assessor Arnold also stated that he would not recommend his personal attorney because of how it would appear. Rev. Wardsworth nominated Charles Rice (previous chief administrative officer and city attorney – City of New Orleans) as another candidate. Assessor Arnold inquired if Mr. Rice was anyone’s personal attorney. All commissioners responded no and Assessor Arnold said there appears to be no conflict. Councilman Carter indicated he understood Speaker Tucker’s observations about the conflict of interest in hiring Senator Heitmeier’s personal attorney. He further said the same conflict could also apply to retaining Brian Adorno. Although Mr. Adorno had not performed legal work for Speaker Tucker, he served as his personal CPA. Councilman Carter thought both Mr. Exnicios and Mr. Adorno presented conflicts of interest. Speaker Tucker thought the conflict came more into play by Mr. Exnicios lawsuit against a member of the board versus his past personal work for a board member. Speaker Tucker further explained that Mr. Adorno was not bound to accept the job because he represented someone as a CPA and not on a legal basis. Chairman Arnold informed the board that Brian Adorno had attended the task force meetings and had drafted a response. Rev. Wardsworth inquired why we are dealing with these issues if Mr. Adorno has been our attorney before. Speaker Tucker explained that we have never had an attorney to give us legal advice or wanted to spend the money to retain a full-time attorney for advice. Assessor Arnold again asked if Charles Rice was anyone’s personal attorney. With everyone’s response being a no, Assessor Arnold stated that Charles Rice should be the attorney due to the conflicts with Mr. Exnicios and Mr. Adorno. Everyone stated they felt comfortable with Mr. Rice and have worked with him through the city. Senator Shepherd asked if Mr. Adorno, Mr. Exnicios or Mr. Rice were willing to work with no pay. Chairman Arnold gave an update on trying to contact the attorney general’s office regarding the status of payment to the staff and vendors. He said he was waiting to hear from Mike Vallan of that office to return today. We will follow-up today for an answer and send to everyone. Senator Shepherd said he wanted it very transparent and for the selected attorney/firm to understand they may not get paid for a while. There was discussion from all commissioners about the pay and that the person would need to be willing to wait. The attorney general would approve their contract. Members asked if Mr. Rice was part of a firm. Assessor Arnold indicated his firm’s name was Barrasso Usdin Kupperman Freeman Sarver, L.L.C. Senator Shepherd indicated he wanted to discuss the issue of legal representation and asked Senator Heitmeier about Mr. Exnicios. Senator Heitmeier explained that Val Exnicios did some pro bono work for him and came to a deposition. “He didn’t ask any questions or anything like that, said Senator Heitmeier.” Senator Shepherd asked …“Was this before the campaign, during or after.” Senator Heitmeier responded that Val Exnicios did pro bono work for him on a campaign matter. Senator Shepherd asked Speaker Tucker to confirm his relationship with Mr. Adorno. Speaker Tucker once again confirmed Mr. Adorno was his CPA on his personal company accounts. After much discussion on the three (3) candidates, the commissioners took a break to call Mr. Rice to see if he would be interested in the job and if he would be willing to await payment. A motion to recess for ten (10) minutes was made and seconded. The meeting resumed ten (10) minutes later and was called back to order by Chairman Arnold. Chairman Arnold and Rev. Wardsworth confirmed they spoke to Mr. Rice during the break and he agreed to accept the position at the attorney general’s rate. Mr. Rice also confirmed he would be willing to wait for payment. Senator Heitmeier also confirmed that he spoke to Mr. Exnicios and there was no pending lawsuit against the Assessor’s office. Assessor Arnold replied that he must have dropped the case. Senator Heitmeier further explained that Mr. Exnicios was also okay with the attorney general’s rate and would be willing to wait for payment. Rev. Wardsworth indicated he would have no problem with Mr. Exnicios representation if there is no lawsuit. Chairman Arnold asked the board if they wanted to vote on each name. Assessor Arnold made a board resolution to hire Charles Rice as he has no ties with any commissioner. It was seconded by Speaker Tucker. Senator Heitmeier said he would like to make a motion to hire Val Exnicios pending the attorney general’s approval. Councilman Carter stated that perhaps one motion could accomplish the same thing. He further stated we should move to accept Val Exnicios pending the attorney general’s approval and secondarily if he is not hired, then Charles Rice would be the candidate. Speaker Tucker stated he would have a problem if it’s okay to hire Val Exnicios, but not Brian Adorno. Senator Heitmeier stated he thought it was more about qualifications or who could best serve. Speaker Tucker stated they were all three different attorneys; one who have dealt with legislative auditors and the board in the past; two with experience, but no knowledge of the issues. Speaker Tucker further explained the attorney general would ultimately approve whomever we nominated and hired. Assessor Arnold indicated he has known Brian Adorno approximately twenty (20) years as an honest and devoted attorney. He further elaborated that the criticism of Mr. Adorno wasn’t fair as he only did what the legislator’s auditors instructed him to do. Assessor Arnold indicated that he wasn’t aware Mr. Adorno had conducted personal work for Speaker Tucker and thought we should not use a personal attorney. Assessor Arnold stated that Mr. Exnicios should also be ruled out due to working for Senator Heitmeier whether he was paid or not. Speaker Tucker explained to the group how Mr. Adorno worked with the auditors and the ADD on issues that have surfaced in the past. The legislative auditors give advice to the local auditors. Senator Shepherd asked if Speaker Tucker would vote for Brian. “If there is a problem with Brian doing my CPA business work then I will abstain in an abundance of caution, stated Speaker Tucker.” The chairman brought the group back to the original motion for Charles Rice to become the attorney for the assessment issue which was made by Tom Arnold. It was seconded by Speaker Tucker. Senator Heitmeier presented a substitute motion for Val Exnicios to become attorney for the assessment process pending the attorney general’s approval with Charles Rice as a backup. The executive director pointed out that multiple motions were on table. She stated we cannot vote on both at the same time. There was a motion by Senator Heitmeier to hire Val Exnicios as the attorney for the assessment issue; seconded by Rev. Wardsworth. Ms. Duplessis took a roll call vote on this motion with the following responses: Arnold nay With a vote of four (4) to three (3), Mr. Exnicios was approved conditionally. Councilman Carter then made a motion to make sure the attorney general was aware of the personal pro bono work performed for Senator David Heitmeier. Assessor Arnold made a motion that if Mr. Exnicios is not accepted by the attorney general, then Mr. Charles Rice would be selected as the attorney. Senator Heitmeier seconded. All voted in favor. Chairman Arnold asked “I just want to be clear Senator Heitmeier before I call the attorney general’s office on this issue with Mr. Exnicios. When I spoke with Mr. Exnicios last week, he told me he was your personal attorney. But you say you have never paid him anything.” Senator Heitmeier responded “never.” Chairman Arnold asked Senator Heitmeier if Mr. Exnicios had read the confidential assessment report. “Yes he has,” responded Senator Heitmeier. He has performed pro bono work for me. Chairman Arnold stated again that he wanted to make sure he is telling the attorney general’s office proper facts. Speaker Tucker questioned how Mr. Val Exnicios obtained and read the confidential assessment report when it was to be confidential? Senator Heitmeier replied, “As my personal attorney.” Assessor Arnold then stated “Then he is your personal attorney.” A motion to withdraw the previous votes hiring Val Exnicios was made by Senator Shepherd. He stated for the record that the commissioners move to reconsider the vote in light of the facts just stated by Senator Heitmeier. Senator Shepherd made a formal motion to reconsider the vote on the two previous motions and it was seconded by Speaker Tucker. All voted in favor. The motion was also made by Senator Shepherd and seconded by Speaker Tucker to rescind the previous votes made before Senator Heitmeier revealed his facts about Val Exnicios being his personal attorney and the document release. It was seconded by Speaker Tucker and all voted affirmative. Senator Shepherd requested a board resolution be drafted to hire Charles Rice as the legal counsel for this issue of the legislative assessment and that he be submitted to the Attorney General‘s office for approval. It was seconded by the Rev. Wardsworth and all voted to approve. Charles Rice is to be notified by the Chairman Arnold of his selection. The next meeting will be in Baton Rouge on Monday, April 14 as a special meeting to approve the responses to the legislative auditor’s assessment report. Senator Shepherd also moved to resolve the issue on payment to ADD staff as they have not been paid in two (2) months. He suggested the commissioners get a ruling from the state and also vote on this issue at the April 14 meeting, as well as the final assessment response. Everyone agreed. There being no further business, a motion was made to adjourn the meeting by Senator Shepherd and seconded by Assessor Arnold. The meeting was adjourned.
Respectfully submitted,
Kathy Lynn Honaker |