Caddo Levee District

Ali  M. Mustapha P.E., Administrator

Minutes

 

Regular Business Hours : Monday thru Friday 7:30 am to 4:00 pm

 

September 8, 2016

OFFICIAL PROCEEDINGS OF BOARD OF COMMISSIONERS OF

CADDO LEVEE DISTRICT

AT REGULAR MEETING HELD ON SEPTEMBER 8, 2016

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At a regular meeting of the Board of Commissioners of the Caddo Levee District held at 10:00 a.m., September 8, 2016, at 1320 Grimmett Drive, Shreveport, Louisiana, the following members were present: Carolyn Prator, James T. Sims, Patrick Harrison, Gary Procell, Helen Godfrey Smith, and Willie Walker. Kandi Moore was not present.

 

Mike DeFalco of Broussard & Company CPAs, LLC; Ali M. Mustapha, Administrator; Danielle Stafford, Assistant Secretary; and Sam Brimer, Forester were also present.

 

The meeting was opened with a prayer and the Pledge of Allegiance.

 

President Prator asked for any comments from the public regarding agenda items or other issues. There were no public comments. 

 

President Prator stated that the minutes from the August 11, 2016 meeting have been emailed for review and asked for a motion to approve. Mr. Sims made a motion, with a second by Mr. Harrison, to approve the minutes of the regular meeting. The motion unanimously passed.

 

The Board reviewed payments and invoices for the month of August, 2016 and subsequent bills for the month of July, 2016. Mr. Sims made a motion, with a second by Mr. Harrison, to ratify payment of the invoices for the month of August, 2016 and subsequent bills for the month of July, 2016. The motion unanimously passed.

 

President Prator recognized Mr. Mike DeFalco, Broussard & Company CPAs, LLC. Mr. DeFalco presented the Board with copies of Caddo Levee District’s financial statements for the fiscal year ending June 30, 2016. Mr. DeFalco reported the audit was conducted smoothly and without issue and reviewed the financial statements, addressing questions as they arose.

 

Mr. Mustapha reported to the board on Marshall Jones’s behalf that the only oil & gas matter that needs to be addressed is the Consent to assign all of J-W Operating Company’s interest in State Agency Lease Number 6454 to Aethon. Mr. Mustapha reported that Mr. Jones had reviewed the Consent and stated he found no cause that the Consent to the assignment should not be approved. Mrs. Smith made a motion for the following resolution with a second by Mr. Harrison. The motion unanimously passed.

 

WHEREAS, the Board of Commissioners of the Caddo Levee District (“CLD”) has received a request from J-W Operating Company (“JWOC”), stating that JWOC is the current Lessee of the following described Oil, Gas and Mineral Leases, to-wit:

 

State Agency Lease Number 6454 dated October 14, 1974, by and between the State Mineral and Energy Board of the State of Louisiana, acting on behalf of the Caddo Levee District as Lessor and originally Bass Enterprises Prod. Co.(currently J-W Operating Company by virtue of merger with Cohort Energy Company on January 1, 2012), as Lessee, recorded under Registry 638908 of the records of Caddo Parish, Louisiana; and

 

hereinafter called “State Agency Lease Number 6454”

 

WHEREAS, JWOC has entered into a transaction with Aethon, which will include a transfer of JWOC’s leasehold rights in the lease upon closing.  JWOC requesting the consent to assign all the JWOC’s interest in State Agency Lease Number 6454 to Aethon whose address is 12377 Merit Drive, Suite 1200, Dallas Texas 75251.

 

             WHEREAS, State Agency Lease Number 6454 provides that State Agency Lease Number 6454 may be assigned, in whole or in part, to any third party, provided that such assignment be made with the consent of CLD and under the terms and conditions of Paragraph 8 of said State Agency Lease Number 6454.

 

             WHEREAS, JWOC desires to obtain CLD’s consent to the assignment of State Agency Lease Number 6454 to Aethon, subject to Aethon’s agreement to assume contractual responsibility for the fulfillment of all of the terms, conditions and covenants of State Agency Lease Number 6454.

 

             NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Caddo Levee District, in legal session convened, that it does hereby consent to the assignment of State Agency Lease Number 6454, more particularly described hereinabove, by JWOC as Assignor, to Aethon, as Assignee, under the terms and conditions of Paragraph 8 of said State Agency Lease Number 6454, subject to Aethon’s agreement to assume contractual responsibility for the fulfillment of all of the terms, conditions and covenants of State Agency Lease Number 6454.

 

There was no President’s Report.

 

Mr. Mustapha reported on his continued efforts to secure federal funding to repair the bank erosion of the Twelve Mile Bayou in close proximity to the levee. He also stated that the US Army Corps of Engineers has inspected the Cherokee Park Levee System and issued the Initial Eligibility Inspector Report. He stated that upon approval of the report by the Corps Division Office, plans for the inclusion of the Cherokee Park Levee into the Federal Levee system can proceed in 2017. Mr. Mustapha also reported on four ongoing capital projects. Construction has begun and is progressing well on the Bayou Pierre repairs from Ockley Drive to Pierremont. Floodgates for the Cherokee Park Levee are being delivered on October 7, at which time the pre-construction meeting will be scheduled so that work can proceed. Rehabilitation of the Black Bayou and West Agurs Culverts is 90% complete; the expected completion date will be late September. Levee Gravel Surfacing of the Twelve Mile Bayou Levee is 93% complete, with a tentative completion date of mid-September. Mr. Mustapha stated that the unusual rainy weather in August has caused significant delays in the progress of all projects.

 

Two permit requests were received in August. Both requests were from AEP-SWEPCO for the installation of temporary access matting roads at Highway 3049 and George Road in order to install poles for replacement of a major transmission power line.

 

There was no Legal Counsel Report.

 

Mr. Brimer, Forester, reported that he has been overseeing the work on the gravel surfacing of the Twelve Mile Bayou Levee project daily. He stated that work should be completed in the next few days, weather permitting. Mr. Brimer also reported that a large infestation of pine beetles was discovered in a tract of timber located off Highway 169, south of Mooringsport. He stated that 15-20 acres of the 80-acre tract are infested. He discussed the need for the timber to be cut as soon as possible in order to stop the infestation from spreading.

 

There was no Engineer’s Report.

 

There was no Personnel Committee Report.

 

There was no Legal Committee Report

 

Mr. Walker, chairman of the Equipment Committee, reported that all equipment is in working order. He also recommended that the Board consider purchasing new tractors, if needed, next year to replace tractors that are 14-15 years old. Mr. Mustapha stated that a full account of all equipment will be taken at the end of the year, and the status of all equipment will be evaluated at that time.

 

There was no Corps of Engineers Report.

 

With no further business to be brought before the Board, the meeting was adjourned.

 

President                                                                              Administrator-Secretary