[00:00:09]
>> GOOD MORNING. IT'S GOOD TO SEE EVERYONE THIS MORNING.
[1. Call to Order – Jerald Jones, Chairman]
WELCOME TO THE BOARD OF COMMERCE AND INDUSTRY ON WEDNESDAY, OCTOBER 23, IT'S 9:30.I MISSED LAST MONTH'S MEETING OR THE LAST MEETING, AND I HEARD MR. MILLER DID AN ADMIRABLE JOB TO THE POINT THAT I HAD SEVERAL MEMBERS ASKING ME NOT TO COME BACK, BUT [LAUGHTER] SORRY.
BUT AT ANY RATE, THE MEETING IS CALLED TO ORDER, MS. SIMMONS, WOULD YOU CALL THE ROLL AND MAKE SURE WE HAVE A QUORUM?
REPRESENTATIVE VINCENT [INAUDIBLE] I'M GOING TO GET IT RIGHT. [LAUGHTER]
>> THANK YOU. SENATOR FRANKLIN FOYLE, CAR POLOZOLA.
>> REPRESENTATIVE JULIE EMERSON, MICHAEL TANNER.
>> ANN VILLA, FOR SECRETARY SUSAN BOURGEOIS.
>> IRWIN THOMPSON III, PARA COLAY.
>> LADY A DON, ROBBIE MILLER, AL ROOKER.
>> THANK YOU, MA'AM. I BELIEVE EVERYONE HAS RECEIVED THE MINUTES FROM THE LAST MEETING,
[3. Approval of Minutes from August 28, 2024 meeting]
AND HAD AN OPPORTUNITY TO REVIEW OUR TRUST.BUT WOULD THIS TIME ENTERTAIN A MOTION TO APPROVE THOSE MINUTES? HAVE A MOTION FROM MR. MOSS. DO I HAVE A SECOND?
>> SECOND, MR. MILLER. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
[4. Quality Jobs Program – Michaela Adegbe]
I UNDERSTAND MR. DEGE IS OUT AND MR. FAVOROLOS TAKING HER PLACE.>> THANK YOU. GOOD LUCK TO YOU, SIR.
>> [LAUGHTER] THANK YOU. THERE WERE FOUR NEW QUALITY JOBS APPLICATIONS, 2022-0302 BIENVILLE LUMBER COMPANY, LLC AND BIENVILLE, 2022-0397, CRYING EAGLE BREWING COMPANY, LLC AND KALKISHU, 2022-0045, GREENBERY, INDUSTRIAL LLC, AND JEFFERSON DAVIS, AND 2022-0356, WEST LAKE MANAGEMENT SERVICES INC AND ASCENSION.
THAT CONCLUDES THE APPLICATIONS.
>> GREAT. WOULD ENTERTAIN A MOTION TO APPROVE THESE, A MOTION FROM MR. MOSS.
SECOND, FROM MR. REMEDIES. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> WE HAVE ONE QUALITY JOB RENEWAL APPLICATION, 2017-0648, BUNGEY, LUDERS, CROCKLN, USA, LLC, AND JEFFERSON PARISH.
>> DO WE HAVE A MOTION? MOTION TO APPROVE MS. EL, SECOND FROM MR. NASSER.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE, ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
>> WE HAVE THREE REQUESTS FOR FULL TRANSFER OF OWNERSHIP TO NEW COMPANY, 2021-0451, ONE FOR GROUP INC. TO SKYFALL BIOLOGICALS, LLC AND ASCENSION, 2021-0571 TO LAURI AND SERVICES LLC, TO DRIFTWOOD ASSET SERVICES LLC AND KALKISHU IN 2014-0903 VANTAGE HEALTH PLAN INC AND AFFINITY HEALTH GROUP, LLC, TO LOUISIANA HEALTH SERVICE AND INDEMNITY CORP. GREAT COMPANY IN WASHINGTON.
THAT CONCLUDES THE TRANSFER OF OWNERSHIPS.
>> I NEED TO RECUSE MYSELF FROM THE MATTER INVOLVING TELLURIAN AND ADVANTAGE HEALTH PLAN.
>> MR. POLOZOLA WILL BE RECUSING MEANS HE WILL NOT PARTICIPATE IN THE DISCUSSION OR THE VOTE ON THOSE MATTERS.
DO WE HAVE A MOTION? TO APPROVE A MOTION.
I'M SORRY, FROM MR. RUCKER, SECOND FROM MR. MILLER.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC?
[00:05:02]
THERE BEING NONE. ALL IN FAVOR SAY AYE.>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> AND LASTLY, WE HAVE A REQUEST TO ADD AFFILIATES OR LLC MEMBERS TO SCHEDULE ONE OF THE FOLLOWING CONTRACT, 2022-0048 FOR NGD PREFAB LLC.
ADDING 1001 MCDERMOTT, LLC, NGD, LLC, FORMERLY KNOWN AS PALMASANO LLC AND JEFFERSON.
>> DO WE HAVE A MOTION? MOTION FOR MR. NASSER.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE.
ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR, SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> THAT CONCLUDES QUALITY JOBS.
[5. Restoration Tax Abatement Program – Travis Rosenberg]
WALK US THROUGH THE RESTORATION TAX ABATEMENT PROGRAM, PLEASE.>> THERE ARE SIX NEW APPLICATIONS.
2023-0193 FOR BAYOU CORTE BLUE INVESTMENTS, LLC AND ST. LANDRY PARISH, 2020-0075, 2020-0139, 2020-0140, AND 2020-0141, ALL FOR ECO DEVELOPMENT RUSTIN, LLC, AND LINCOLN PARISH, AND 2022-0545 FOR LISA KIEFER, LLC IN ST. TAMMANY PARISH.
>> THESE APPLICATIONS HAVE ALREADY BEEN APPROVED BY THE LOCAL GOVERNMENT.
BUT ANY MOTION ON THIS? DO I HAVE A MOTION TO APPROVE? MR. DAW, SECOND FROM MR. POLOZOLA.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE IS NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
>> THERE IS ONE RENEWAL APPLICATION, 2015-1972 FOR ARDENDALE, OAKS APARTMENTS, LLC, AND EAST BATON ROUGE PARISH.
>> WE HAVE A MOTION ON THIS RENEWAL. WE HAVE A MOTION.
MOTION FROM MR. MOSS, SECOND FROM MR. NASSER.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC.
THERE BEING NONE? ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> THAT CONCLUDES THE RTA AGENDA.
[6. Enterprise Zone Program – Joyce Metoyer]
>> GOOD MORNING. THERE ARE SIX NEW APPLICATIONS FOR EZ, 2016-106-2501 EFA HOTEL, LLC, ORLEANS PARISH, 2021-0460 BENNIS CARWASH, LLC ASCENSION PARISH, 2021-0357 HUNT FOREST PUS LLC, GRANT PARISH, 2021-0098 JACKSON HARTWOOD, LLC.
EAST FALSIANA PARISH, 2021-0190, OPULENCE KRISHNA HOSPITALITY, LLC, CALCAS PARISH, AND 2019-0341 PLACID REFINING COMPANY LLC, WEST BATON RODGE PARISH.
>> BEFORE I ASK FOR A MOTION, I JUST WANT TO NOTE FOR THE BOARD THAT WE HAVE TWO OF THESE PROJECTS THAT ARE BASICALLY TAKING ADVANTAGE OF THE ENTERPRISE ZONE AMENDMENTS TO THE ACT THAT WERE ENACTED BY THE LEGISLATURE DURING THE COVID PANDEMIC, BASICALLY ALLOWING SOME HOTELS TO TAKE IT NORMALLY, A HOTEL WOULD NOT BE ABLE TO TAKE ADVANTAGE OF AN ENTERPRISE ZONE. EXCUSE ME.
>> 2016-106-2501 EFA HOTEL, LLC.
THAT ADVANCE WAS FILED WHILE HOTELS WERE ALLOWED ACT 423.
BUT ACT 18 ENDED THAT ON 4116.
THIS ADVANCE WAS FILED 330-116. YES.
>> GOT IT. GOOD. THANK YOU FOR THAT CLARIFICATION.
>> THE OTHER ONE, OPULENCE KRISHNA HOSPITALITY? THAT ADVANCE WAS FILED BETWEEN JULY 1, 20, AND 1231-21. YES.
>> GOOD. THANK YOU FOR THAT. THAT HELPS US.
I JUST WANT TO BE SURE BECAUSE SOMETIMES THERE'S CONFUSION ON THAT THING.
WHY DID THEY GET TO, AND I DIDN'T? I WANT TO MAKE SURE YOU UNDERSTOOD WHAT WAS GOING ON HERE. DO I HAVE A MOTION?
[00:10:03]
>> I JUST NEED TO RECUSE MYSELF FROM THE BENNY'S CARWASH AND PLACID REFINING COMPANY MATTERS, PLEASE.
>> MR. POLOZOLA WILL BE RECUSING HIMSELF FROM THE BENNY'S CARWASH MATTER.
>>> I NEED TO RECUSE MYSELF FROM PLACID REFINING.
NOW, CAN I HAVE A MOTION OR HAVE THE WHOLE BOARD RECUSE HIMSELF? [LAUGHTER] DO I GET A MOTION FROM MAYOR 2.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC.
HEAR BEING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
FOR THE RECORD, THAT WAS MR. MIGUES, WHO REFUSED HIMSELF.
I'M SORRY, I DID NOT MAKE THAT CLEAR. NEXT.
>> WE HAVE THREE TERMINATIONS.
IN ACCORDANCE WITH SECTION 717B OF THE EZ PROGRAM RULES, A BUSINESS MAY SUBSTITUTE TO SUBMIT A REQUEST TO TERMINATE THEIR ENTERPRISE ZONE CONTRACT, IF ONE, THE CONTRACTS HAVE BEEN IN EFFECT FOR AT LEAST 30 MONTHS AND THE BUSINESS HAS MET ALL THE REQUIREMENTS OF THE PROGRAM, WHICH INCLUDES TIMELY FILING OF ALL PROGRAM FORMS, DOCUMENTS, AND APPROPRIATE FEES.
FOLLOWING CONTRACTS WERE PREVIOUSLY APPROVED BY THE BOARD OF COMMERCE AND INDUSTRY AND THE CONTRACT HOLDERS LISTED BELOW HAVE SUBMITTED A REQUEST TO TERMINATE THEIR EZ CONTRACTS.
THE CONTRACTEE UNDERSTANDS BOARD DECISION IS FINAL AND CONTRACTS CANNOT BE REINSTATED OR REACTIVATED.
2018 0442, EXXON MOBILE CORP, EAST BAN ROCHE PARISH, THE EXISTING CONTRACT IS 11118 TO 1031-23.
THE REQUESTED TERM DATE IS APRIL 30, 2021, 2019-0168, FABRICATED STEEL PRODUCTS, EAST BATON ROUGE PARISH.
THE EXISTING CONTRACT IS MAY 9, 2019 TO MAY 8, 2024.
THE REQUESTED TERM DATE IS 58-2023.
IN 2019-0514, ASSOCIATED GROCERS INCORPORATED, EAST BATON ROUGE PARISH.
THE EXISTING CONTRACT IS 1120 TO 1231-24, AND THE REQUESTED TERM DATE IS JUNE 30, 2022.
>> DO WE HAVE A MOTION CONCERNING THESE TERMINATIONS?
>> I NEED TO RECUSE MYSELF FROM THE MATTER INVOLVING EXXON MOBIL AND ASSOCIATED GROCERS.
>> MR. POLOZOLA IS SO RECUSING HIMSELF. DO WE HAVE A MOTION?
>> MOTION, MR. DAW, SECOND, SENATOR MAISEL.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
[7. Industrial Tax Exemption – Kristin Johnson/Hud Usie]
IT'S GOOD TO SEE YOU THIS MORNING.> >GOT YOUR NAME RIGHT, MS. JOHNSON.
>> WE HAVE SEVEN APPLICATIONS FOLLOWING THE POST EO 2018 ITEP RULES, 2023-0090-A, CYBER SQUARE LLC, BOGER PARISH, 2018-0148E, FLO PAM INC IBERVILLE PARISH, 202-01-0538A, LOUISIANA SUGAR REFINING LLC, ST. JAMES PARISH, 2023-0253 MACHAHANY COMPANY, IBERIA PARISH, 2022-0128 NOBLE PLASTICS, LLC, ST. LANDRY PARISH, 2022-0100 PACKAGING CORPORATION OF AMERICA BAGAR PARISH, AND 2023-0161 PLACER PAC PACKAGING INC AND REPEATS PARISH.
>> DO WE HAVE A MOTION ON THESE, MR. NASSER? SECOND SENATOR ST. BLOC OR REPRESENTATIVES.
I'M ABOUT TO GIVE YOU A PROMOTION OR DEMOTION.
[LAUGHTER] WE HAVE A MOTION TO SECOND.
ANY COMMENTS OR QUESTIONS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> NEXT, WE HAVE FOUR NEW APPLICATIONS FOLLOWING THE POST DO 2024 EMERGENCY RULES,
[00:15:01]
2024-0376 EXXON MOBILE CORPORATION, EAST BATON ROUGE PARISH, 2024-0355 FLO PAM INC, IBERVILLE PARISH, 2024-0178 MARATHON PETROLEUM COMPANY, LP, ST. JOHN THE BAPTIST PARISH, AND 2024-0175, METAL FAB GUYS, LLC, LIVINGSTON PARISH.>> DO WE HAVE A MOTION ON THESE? YES.
>> I NEED TO RECUSE MYSELF FROM THE EXXON MOBILE AND MARATHON PETROLEUM MATTERS, PLEASE?
>> YES, SIR. ANY OTHER RECUSALS? DO WE HAVE A MOTION TO APPROVE? WE HAVE A MOTION FROM MR. WHELIS.
THANK YOU. FORGIVE ME, AND A SECOND FROM MR. RUCKER.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE.
ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
>> NEXT, WE HAVE FOUR PRE EXECUTIVE AUDER TIMELY RENEWALS, 2015-2046 BASF CORPORATION ASCENSION PARISH, 2014-1117B, COKE METHANOL, ST. JAMES LLC, ST. JAMES PARISH, 2014-1610A, MARATHON PETROLEUM COMPANY, LP, ST. JOHN THE BAPTIST PARISH, AND 2016-142A, PODPAC, INTERNATIONAL LLC EAST BATON ROUGE PARISH.
>> I NEED TO RECUSE MYSELF FROM THE BASF, COKE METHANOL AND MARATHON PETROLEUM, MATTERS, PLEASE.
>> MR. POLOZOLA WILL BE RECUSING HIMSELF.
I ALSO WILL BE RECUSING MYSELF FROM THE COKE METHANOL PROJECT AS WELL.
ANY MOTION FROM THE BOARD APPROVE THESE RENEWALS.
HAVE A MOTION FROM CENTER MYSELF, SECOND FROM REPRESENTATIVE ST. BLANC.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE IS NONE.
ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
>> NEXT, WE HAVE ONE LATE RENEWAL FOLLOWING THE POST-EXECUTIVE ORDER 2017 RULES, 2017-0234, TALAN INDUSTRIAL LLC AND ASCENSION PARISH, INITIAL CONTRACT EXPIRATION DATE 12TH, 31-2022, LATE RENEWAL REQUEST DATE AUGUST 27TH, 2024.
>> DO WE HAVE SOMEONE HERE FROM TALAN INDUSTRIAL?
>> THIS ONE'S GOING TO BE A LITTLE BIT INTERESTING.
JUST TO PUT SOME CONTEXT FOR EVERYONE, THE 2017 RULES ARE A LITTLE BIT DIFFERENT, IN THAT THEY BASICALLY PROVIDE FOR A FIVE-YEAR INITIAL TERM AND THEN A THREE-YEAR RENEWAL TERM.
WHAT MAKES THAT A LITTLE INTERESTING FROM THIS PERSPECTIVE IS YOU WILL NOTE THAT THEIR CONTRACT EXPIRED IN 12/31/22, AND THEY DID NOT FILE THE RENEWAL UNTIL 08/27/24.
THAT WOULD MEAN THAT WE ARE PROBABLY LOOKING AT A TWO-YEAR PENALTY, WHICH ESSENTIALLY WOULD WIPE OUT THEIR RENEWALS ALTOGETHER.
>> NO. THERE WOULD STILL BE ONE YEAR LEFT.
>> THERE WILL STILL BE ONE YEAR LEFT?
>> THERE WILL BE ONE YEAR LEFT ON THE RENEWAL.
I WANTED EVERYBODY TO UNDERSTAND THE CONSEQUENCES.
I WAS HOPING TALON WOULD BE HERE TO EXPLAIN WHAT HAPPENED, BUT THEY'RE NOT, SO WE HAVE TO GO WITH WHAT WE KNOW.
AGAIN, THE NORMAL COURSE HERE IS A ONE-YEAR PENALTY FOR THIS, AND THIS WOULD BE TWO YEARS LATE, SO IT'D BE A TWO-YEAR PENALTY IS WHAT IS NORMAL.
>> I ALSO WANT TO ADD FOR THE RECORD THAT SINCE MAUSER, WHO THEY SHARED THE EXHIBIT A WITH FOR THIS CONTRACT, THE MANUFACTURER ON SITE, THEY WERE NON COMPLIANT, AND ASCENSION PARISH LOCALS PENALIZED THEM A LOSS OF 11% IN THE LAST YEAR OF THEIR EXEMPTION.
THIS ONE YEAR RENEWAL WOULD BE 11% LESS THAN 80%.
>> MAUSER, USA, IS THE MANUFACTURER, AND TALON IS THE REAL ESTATE COMPANY THAT OWNS THE BUILDING THAT THEY MANUFACTURER WITHIN, AND THEY SHARE JOB AND PAYROLL REQUIREMENTS.
SINCE MAUSER WAS NON COMPLIANT, THE ASCENSION PARISH LOCALS RECOMMENDED THE LOSS OF 11% OF EXEMPTION IN THE LAST YEAR OF THE CONTRACT,
[00:20:04]
AND THAT'S FOR BOTH MAUSER AND FOR TALON.THAT WAS APPROVED BY THE BOARD OF COMMERCE AND INDUSTRY, WHENEVER THAT NON COMPLIANCE MATTER CAME UP BEFORE YOU-ALL.
IF THIS IS RENEWED, THAT WOULD BE THE LAST YEAR OF TALON'S CONTRACT, SO IT WOULD BE REDUCED BY 11%.
>> BECAUSE THIS CAN GET REALLY CONFUSING REALLY QUICK.
YOU'VE GOT LAND, AND THEN YOU'VE GOT THE FACILITIES THAT SIT ON THE LAND.
IT'S NOT UNUSUAL FOR A PROJECT TO EITHER LEASE PROPERTY FROM A LAND OWNER OR HAVE IT OWNED BY A SEPARATE AFFILIATE OR SOMETHING LIKE THAT.
WHAT HAPPENS IN THESE SITUATIONS, THERE'S NO JOBS, THERE'S NO PAY ROLL INVOLVED WITH OWNING THE LAND.
ALL THE JOBS AND PAYROLL ARE TIED TO THE FOLKS THAT ARE OPERATING THE ASSET ON THE LAND, BUT BOTH OF THEM HAVE THE BENEFIT OF ITEP.
HOWEVER, THE LAND OWNER IS GOING TO BE RESPONSIBLE FOR THE SAME JOBS AND PAYROLL, EVEN THOUGH THEY HAVE NO CONTROL OVER IT, BUT THEIR LESSEE, IF YOU WILL, IS RESPONSIBLE FOR MAINTAINING JOBS AND PAYROLL, AND WHEN THEY DON'T, BOTH OF THEM GET PENALIZED.
>> MR. CHAIRMAN, CAN I MAKE ONE POINT OF CLARIFICATION?
>> YOU WANT TO CORRECT ME, GO RIGHT AHEAD.
>> LAND IS NOT ELIGIBLE, SO IT'S THE BUILDING OWNER.
>> THANK YOU. I USED THAT WORD VERY LOOSELY, I APOLOGIZE, AND THAT IS AN ABSOLUTE CORRECT CORRECTION.
I WON'T HOLD THAT AGAINST YOU, MS. [INAUDIBLE]. I KNOW.
>> I CAN'T GET IT RIGHT EITHER.
>> CORRECT ME IN PUBLIC AGAIN.
I THINK YOU SEE THE POINT, THOUGH.
WHAT WE HAVE HERE IS TALON AS THE BUILDING OWNER HAS NOT FILED AS THEY SHOULD HAVE, AND THEY ARE ALSO BEING PENALIZED FOR THEIR LESSEE, IF YOU WILL, NOT HANDLING THINGS THE WAY THEY SHOULD HAVE, BUT AT THE END OF THE DAY, THE NET EFFECT HERE, WE CAN APPROVE THIS RENEWAL OR WE CAN DENY THE RENEWAL, BUT IF WE DO APPROVE THE RENEWAL WITH THE PENALTY, IT WOULD ESSENTIALLY BE A TWO-YEAR PENALTY.
EVEN THOUGH THEY SHARE JOB AND PAYROLL REQUIREMENTS, MAUSER DID RENEW TIMELY, SO THEY DID GET THEIR FULL THREE-YEAR.
>> IS THERE ANY EXPLANATION AS TO WHY THEY WERE NON COMPLIANT IN ANY OF THE PREVIOUS YEARS?
>> ALL THOSE ISSUES WERE HANDLED AS THEY CAME UP.
I DON'T HAVE THE DETAILS, BUT THEY WERE HANDLED IN PREVIOUS YEARS, WHEN THOSE NON COMPLIANCES CAME UP, THEY WERE HANDLED BY THE BOARD AT THAT TIME.
THEY PAID WHATEVER PENALTY OR NOT THAT THE BOARD THOUGHT APPROPRIATE AT THE TIME.
>> THE PENALTIES ARE YOU GET A RECOMMENDATION FROM THE LOCAL GOVERNMENTAL ENTITIES AND THEY'RE PRESENTED TO THE BOARD OF COMMERCE AND INDUSTRY.
FOR THE FIRST THREE YEARS OF NON COMPLIANCE, THERE WAS NO PENALTY BECAUSE THE BOARD AND THE LOCALS SAID THEY DIDN'T WANT TO PENALIZE.
THEIR RECOMMENDATION FOR THE PENALTY FOR THE FOURTH YEAR OF NON COMPLIANCE WAS THE REDUCTION OF 11% OF EXEMPTION ON THE LAST YEAR OF THEIR CONTRACT, WHENEVER THAT MAY BE.
IF THEY HAD TIMELY FILED, THAT WOULD HAVE BEEN YEAR 3 OF THE RENEWAL CONTRACT, I'M SORRY, BUT IF YOU-ALL ASSESS THE PENALTY OF TWO YEARS ON THIS THREE-YEAR RENEWAL, THE FIRST YEAR OF THE RENEWAL WOULD BE THEIR ONLY YEAR OF RENEWAL, AND IT WOULD BE REDUCED BY 11% FROM THE 80% THAT THEY WOULD HAVE BEEN GRANTED.
>> DURING THOSE OTHER TWO YEARS, HAVE THEY ALREADY RECEIVED THE BENEFITS? THEY'VE ALREADY RECEIVED THE TAX REDUCTIONS.
>> NO. THIS IS A PROPERTY TAX EXEMPTION, AND THOSE ARE YEARS IN THE FUTURE.
THAT WOULD BE THIS YEAR AND NEXT YEAR.
ACTUALLY 2023, WOULD HAVE BEEN THEIR LAST YEAR OF EXEMPTION.
>> WELL, NO, UNDER THE RENEWAL SHOULD YOU-ALL RENEW IT, BUT WE DID CHECK.
THE ASSESSOR DID CONFIRM THAT THEY HAVE NOT BEEN ADDED TO THE ROLES AND THEY HAVE NOT BEEN TAXED, BUT THEY WILL IF YOU-ALL RENEW, HAVE TO GO BACK.
>> THAT WAS MY QUESTION. IF WE VOTED, WOULD THEY BE ASSESSED TAXES FOR THE PREVIOUS TWO YEARS?
[00:25:01]
>> THE PENALTY WOULD BE FOR 2024 AND 2025, WHAT YOU-ALL ARE CONSIDERING RIGHT NOW.
THEY WOULD BE TAXED FOR 2024 AND 2025.
TWENTY-TWENTY THREE IS THE ONLY ONE YEAR OF RENEWAL THAT THEY WOULD RECEIVE, AND THAT WOULD BE REDUCED TO 69% OF EXEMPTION.
THAT'S AN ASSESSOR QUESTION, BUT I THINK THEY WOULD HAVE TO SUBMIT A CHANGE ORDER.
>> THEY WOULD GET A CHANGE ORDER OF 11%?
>> A REDUCTION OF 11%, SO IT'D BE A 69% EXEMPTION.
>> BUT THAT WAS FOR LAST YEAR?
>> RIGHT NOW THEY DID RECEIVE AN 80% EXEMPTION.
>> THEY'LL BE ASSESSED A BILL FOR 11% IF THEY DID NOT?
>> I'M NOT EXACTLY SURE HOW THAT WORKS WITH THE ASSESSOR'S OFFICE, BUT THEY WOULD HAVE TO SUBMIT A CHANGE ORDER, YES, FOR THE PREVIOUS YEAR.
>> THAT WOULD BE THE ONLY THING THAT THEY WOULD BE SUBJECT TO IN THE PAST, SO THEY JUST WOULDN'T HAVE ANYTHING MOVING FORWARD?
>> WELL, THEY WOULD BE TAXED FULLY.
>> JUST NORMALLY, JUST LIKE THEY WOULD GET A NORMAL ASSESSMENT AT FULL VALUATION FOR THIS YEAR AND MOVING FORWARD?
>> I'M JUST A LITTLE CONCERNED ABOUT GETTING PENALTIES FOR THE PREVIOUS YEARS AND SETTING A PRECEDENCE FOR THAT.
>> THANK YOU FOR A GOOD QUESTION. MR. MILLER.
>> WITHOUT THERE BEING REPRESENTATION HERE, IS IT A FAIR ASSUMPTION FOR THE BOARD TO MAKE THAT THEY ARE AWARE OF THIS AND SINCE THEY'VE BEEN PENALIZED ONCE BEFORE, THAT THEY HAVE COME TO THE CONCLUSION THAT THEY CAN AFFORD THE PENALTY?
>> I DID COMMUNICATE WITH THEM THE TIME AND DATE AND LOCATION OF THIS MEETING, AND THEY MADE IT SOUND LIKE THEY WOULD BE HERE, SO I'M NOT SURE.
>> I HESITATE TO SPECULATE AS WHY THEY CHOSE NOT TO BE HERE, BUT IT'S OBVIOUS THEY KNEW OF THE MEETING, THEY KNEW OF THE POTENTIAL PENALTIES, AND THEY CHOSE NOT TO APPEAR. MR. MILLER?
>> QUICK POINT. MAYBE FOR EVERYBODY, HELP CLARIFICATION.
IF IT HAD BEEN ADDED TO THE TAX ROLLS, NONE OF THIS WOULD MATTER BECAUSE ONCE IT'S ON A TAX ROLL, ALL EXEMPTIONS ARE GONE.
THIS IS THE REASON WE HAVE THESE MEETINGS BECAUSE EVERY ONCE IN A WHILE THERE'S A HICCUP WHERE WE NEED TO UNDERSTAND WHAT'S GOING ON IN THE IMPLICATIONS OF IT TO MR. RAMIDIS' POINT.
>> EXCUSE ME. WHAT WAS THE REASON THAT THEY WERE AT 80% ALREADY?
>> THE 2017 RULES THAT THEY'RE UNDER.
THE 2017 RULES ALLOW FOR A FIVE-YEAR INITIAL TERM AT 100%, AND THEN A RENEWAL FOR THREE YEARS AT 80%.
THAT WAS THE MAXIMUM THEY COULD HAVE BEEN ALLOWED.
>> EXCELLENT QUESTIONS. HELP ME, MISS.
DO WE HAVE A MOTION AND A SECOND ALREADY? NO. I THINK THIS WAS ALL. NOW I'M READY FOR A MOTION. MR. RAMIDIS.
>> I MAKE A MOTION TO APPROVE WITH THE PENALTIES OF A ONE-YEAR FOR EACH LATE YEAR.
THAT MEANS THEY WOULD GET THE TAX REDUCTION FOR THE 2023.
>> YOU HAVE TWO-YEAR PENALTY? WE HAVE A MOTION TO APPROVE THE RENEWAL WITH A TWO-YEAR PENALTY.
>> WE HAVE A MOTION FROM MR. RAMIDIS, A SECOND FROM MR. DOSS.
ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? THIS ONE IS A COMPLICATED ONE, SO THERE'S NO SUCH THING AS A STUPID QUESTION.
ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> NEXT, WE HAVE SIX TIMELY FILED POST EXECUTIVE ORDER 2018 RULES RENEWALS : 20180323-A, BAGWELL ENERGY SERVICES INC, IBERIA PARISH, 20180403, INDORAMA VENTURES OLEFINS, LLC, CALCASIEU PARISH, 20180403A, INDORAMA VENTURES OLEFINS, LLC, CALCASIEU PARISH, 20170300 PACKAGING CORPORATION OF AMERICA, BEAUREGARD PARISH, 20170377A, PALA INTERSTATE, LLC, LIVINGSTON PARISH, AND 20170378, PARADISE, LLC, LIVINGSTON PARISH.
>> DO WE HAVE A MOTION TO APPROVE THESE RENEWALS? WE GOT SOME RECUSALS [INAUDIBLE].
>> I NEED TO RECUSAL FROM INDORAMA AND PACKAGING CORPORATION, PLEASE.
YOU READY FOR A MOTION FROM MR. ST. BLONC AND A SECOND FROM MR. MILLER.
[00:30:04]
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE, ALL IN FAVOR SAY AYE?>> ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
>> NEXT, WE HAVE ONE LATE POST EXECUTIVE ORDER 2018 RULES RENEWAL, 20180110, SERVICE MACHINE AND SUPPLY INC IN LAFAYETTE PARISH.
THE INITIAL CONTRACT EXPIRATION DATE WAS 12/31/2023.
THE LATE RENEWAL REQUEST DATE IS JULY 2ND, 2024.
THE CUSTOM OF THIS BOARD IS ONE YEAR OR SUCH A PENALTY, BUT IT IS AT THE OPTION OF THE BOARD.
WHAT IS THE PLEASURE? MR. NASSER, DO YOU HAVE A MOTION TO APPROVE THE RENEWAL WITH A ONE YEAR PENALTY?
DO I HAVE A SECOND FROM MR. MILLER?
>> ANY QUESTIONS OR COMMENTS? HEARING NONE, ANY COMMENTS FROM THE PUBLIC? THERE ARE BEING NONE, ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION. THERE IS NONE.
>> NEXT, WE HAVE THREE CONTRACT CANCELLATIONS, CARGILL INC, CONTRACT 20200377 IN ST. MARTIN PARISH, COMPANY REQUESTS CANCELLATION.
EXXON MOBILE CORPORATION, 20230071 IN EAST BATON ROUGE PARISH, COMPANY REQUESTS CANCELLATION, AND ORIGIN US [INAUDIBLE] 1, LLC, 20220013 IN ASCENSION PARISH, COMPANY REQUESTS CANCELLATION.
>> DO WE HAVE A MOTION TO APPROVE THE CANCELLATION?
>> WISH TO RECUSE MYSELF FROM THE EXXON MOBIL MATTER, PLEASE.
I HAVE A MOTION FROM MR. [INAUDIBLE], SECOND FROM MR. DOSS TO APPROVE THESE CANCELLATIONS.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC.? THERE BEING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> NEXT, WE HAVE NON COMPLIANT CONTRACTS FOLLOWING THE 2017 POST EXECUTIVE ORDER ITEP RULES.
ONE CONTRACT, NUMBER 20180164 FOR AIR LIQUIDE, ADVANCED TECHNOLOGIES US, LLC, IN ALLEN PARISH IS NON COMPLIANT FOR THE 2023 REPORTING PERIOD.
THE EXHIBIT A FOR THE CONTRACT REQUIRES THE COMPANY CREATE AND MAINTAIN THREE JOBS WITH 150,000 IN PAYROLL.
THE COMPANY FAILED TO SUBMIT ANNUAL COMPLIANCE BY THEIR REQUESTED EXTENDED DEADLINE OF JUNE 14TH, 2024.
THE PARISH, THE SCHOOL BOARD, NOR THE SHERIFF RESPONDED WITH RECOMMENDATIONS.
>> I WILL BE RECUSING MYSELF FROM THE AIR LIQUIDE MATTER, BUT WE FACILITATE ANY DISCUSSION ON THE MATTER.
DO WE HAVE ANYBODY HERE FROM AIR LIQUIDE? JUST HAVE A SEAT. GOOD MORNING.
>> JUST STATE YOUR NAME AND YOUR POSITION WITH THE COMPANY, PLEASE.
>> I'M DAVID NGO. I'M THE DIRECTOR OF PROPERTY TAX FOR AIR LIQUIDE.
>> I HAVE WITH ME, GUS FONTENOT WITH THE SOUTHWEST ALLIANCE ECONOMIC DEVELOPMENT.
>> VERY GOOD. IF YOU CAN EXPLAIN TO US THE REASON FOR THE NON COMPLIANCE.
>> IT'S AN ADMINISTRATIVE CLERICAL ON OUR PART.
WE DID CREATED THE JOB AND THE SALARY REQUIREMENT.
IT'S A TECHNICALITY IN MY COMMUNICATION WITH HUD.
IN ADDITION TO THAT, WE WERE WORKING THE RENEWAL FOR THE CONTRACT THAT'S EXPIRING AT THE END OF THE YEAR.
IN OUR COMMUNICATION WITH THE PARISH, WE HAVE THEIR TOTAL SUPPORT FOR THE ITEP CONTRACT THAT WE ARE UNDER, AND THE EXTENSION OF THE RENEWAL WITH THE ADJUSTMENT THAT WE REQUESTED BECAUSE OF CURRENT ECONOMIC CONDITION FOR OUR PLANS.
I HAVE MR. FONTENOT HERE IF YOU HAVE ANY QUESTION THAT YOU WANT DIRECTLY TO THE PARISH.
>> ANY QUESTIONS FROM THE BOARD? MR. FONTENOT, YOU HAD SUBMITTED A CARD.
DO YOU WANT TO SPEAK ON BEHALF?
>> YES, SIR. THANK YOU VERY MUCH.
WE WOULD JUST LIKE TO SAY THAT WE ARE SATISFIED IN HAVING WORKED WITH THE PARISH, THAT THEY HAVE MET THEIR EMPLOYMENT AND SALARY OBLIGATIONS UNDER THE INITIAL TERMS OF THE ITEP. THANK YOU.
>> JUST ONE SECOND. WHY THEY HAVEN'T RESPONDED.
[00:35:01]
IT SAYS THAT YOU FAILED TO REPORT YOUR COMPLIANCE.
HAVE YOU SINCE REPORTED THAT TO THE DEPARTMENT?
>> SO THIS IS A REPORTING NON-COMPLIANCE?
>> IT'S AN ADMINISTRATIVE CLERICAL ERROR ON OUR PART.
WE HAVE MANY DEADLINES, AND WE PRIORITIZE A RENEWAL WITH THE PARISH AND THE STATE FOR THE ITAP.
THIS WAS CLERICAL ON OUR PART, WITH THE TIMES.
>> THIS IS WITHIN THE CONTRACT REPORTING THAT WAS NON-COMPLIANCE.
>> YES. IT WAS ORIGINALLY DUE APRIL 30TH, AND THE COMPANY REQUESTED AN EXTENSION UNTIL JUNE 14TH, BUT THEY NEVER FILED IT.
THE LOCALS WERE NOTIFIED FOR NOT FILING IT, AND IT'S BEEN FILED SINCE THE LOCALS WERE NOTIFIED OF THE NON-COMPLIANCE.
>> IN THE LAST FEW MONTHS, A COUPLE OF MONTHS. THANK YOU.
>> YES. MOTION WE ACCEPT THEIR REPORT AND WORD.
TAKE NO ACTIONS I GUESS. [BACKGROUND]
>> OKAY. WE HAVE A MOTION FROM MR. MILLER TO APPROVE THE CONTRACT WITH NO PENALTY.
DOES THAT ACCURATELY REFLECT YOUR MOTION, MR. MILLER?
>> YOU HAVE A SECOND FROM MR. MAILEY. ALL RIGHT.
ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE.
ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE BEING NONE, THE MOTION CARRIES.
>> NEXT, WE HAVE ONE CONTRACT FOR FOSTER POULTRY FARMS, 2017 0088 IN LINCOLN PARISH, THEY'RE NON-COMPLIANT FOR THE 2020 AND 2021 REPORTING PERIODS.
EXHIBIT A FOR THE CONTRACT REQUIRES THE COMPANY TO CREATE AND MAINTAIN 50 NEW JOBS WITH 900,000 IN NEW PAYROLL.
FOR 2020, THE ACTUAL JOBS CREATED WERE 35 NEW JOBS WITH 03,556,564 IN NEW PAYROLL.
THEY'RE NON-COMPLIANT FOR MISSING THE JOB REQUIREMENT ONLY.
AND IN 2021, THE ACTUAL JOBS AND PAYROLL CREATED WERE ZERO NEW JOBS AND ZERO NEW PAYROLLS.
THE PARISH SCHOOL BOARD, NOR THE SHERIFF RESPONDED WITH RECOMMENDATIONS, AND THEY'RE NOT LOCATED WITHIN A MUNICIPALITY, AND THEY HAVE SINCE BECOME COMPLIANT IN PROJECT YEAR 2022.
>> THEY HAVE COME [OVERLAPPING].
>> YES. THEY ARE COMPLIANT CURRENTLY.
>> OKAY. DO WE HAVE SOMEONE HERE FROM FOSTER POULTRY? WOULD YOU PLEASE COME FORWARD, PLEASE? THANK YOU. WOULD YOU STATE YOUR NAME, AND YOUR POSITION WITH THE COMPANY, PLEASE?
>> GOOD MORNING. MY NAME IS VINCE LUCAS.
I'M THE COMPLEX MANAGER FOR FOSTER FARMS.
>> GREAT. OKAY. TELL US WHAT WAS HAPPENING HERE THAT KEPT YOU FROM REACHING YOUR GOAL.
>> COVID DEEPLY IMPACTED FOSTER FARMS, IN YEARS 2020 AND 2021, MOVING FORWARD IN YEARS 2022 AND 2023, WE'RE 120 TEAM MEMBERS ABOVE OUR BASELINE, BASELINE IS 1027 EMPLOYEES.
WE HAVE EXCEEDED OUR SALARY REQUIREMENT, WHICH IS 900,000.
WE'RE CURRENTLY AT 2.83 FOR THE LAST TWO YEARS, SIR.
>> ALL RIGHT, SO YOU RECOVERED FROM THE PANDEMIC AND MORE THAN MET YOUR GOALS?
>> GREAT. GOOD DEAL. THANK YOU FOR YOUR WORK. ALL RIGHT.
ANY QUESTIONS OR COMMENTS FOR MR. LUCAS? ALL RIGHT. DO WE HAVE A MOTION? [BACKGROUND] OKAY.
>> A MOTION TO TAKE NO ACTION.
>> OKAY, SO WE APPROVE AND WITHOUT ANY PENALTY.
WE GOT A SECOND? [BACKGROUND] OKAY.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? THERE BEING NONE, ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE.
THE MOTION CARRIES. THANK YOU, SIR.
>> NEXT, WE HAVE ONE CONTRACT FOR GUIN MACHINE, 2016- 1675 IN BIENVILLE PARISH, BUT THE COMPANY IS REQUESTING THAT THESE BE DEFERRED TO THE DECEMBER MEETING BECAUSE THEY COULDN'T MAKE IT HERE TODAY.
>> OKAY. DO WE HAVE A MOTION TO DEFER ALL THE MATTERS ON GUIN MACHINE INC?
[00:40:06]
WE HAVE A MOTION FROM MAYOR T. SECOND FROM MR. NASSER.ANY QUESTIONS OR COMMENTS ON THAT DEFERRAL FROM THE BOARD? THERE BEING NONE, ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE.
THAT MATTER WILL BE HEARD AT THE NEXT MEETING.
>> NEXT, WE HAVE ONE CONTRACT NUMBER 2018 0076 FOR KEROTEST MANUFACTURING CORP IN AVARS PARISH THAT IS NON-COMPLIANT FOR THE 2022 AND 2023 REPORTING PERIODS.
EXHIBIT A FOR THE CONTRACT REQUIRES THAT THE COMPANY RETAIN 155 JOBS WITH A RAMP-UP OF 55 NEW JOBS FOR A TOTAL OF 205 NEW JOBS BY THE END OF 2026.
THE TOTAL NUMBER OF JOBS REQUIRED FOR THE 2022 REPORTING PERIOD WAS 155 RETAINED AND 30 NEW FOR A TOTAL OF 185 JOBS.
THE 30 NEW JOBS HAD A PAYROLL REQUIREMENT OF $634,890, AND THE RETAINED JOBS HAD A PAYROLL REQUIREMENT OF $4,882,304 FOR A TOTAL REQUIRED PAYROLL OF $5,517,194.
THE ACTUAL NUMBER OF JOBS FOR THE REPORTING PERIOD WAS 155 JOBS WITH 5,452,945 IN PAYROLL.
THE REPORTING PERIOD WAS ALSO FILED LATE.
IT WAS DUE APRIL 30TH, 2023, BUT NOT RECEIVED UNTIL MAY 3RD, 2023, UPON NOTIFICATION BY LED.
THE TOTAL NUMBER OF JOBS REQUIRED FOR THE 2023 REPORTING PERIOD WAS 155 RETAINED AND 35 NEW FOR A TOTAL OF 190 JOBS.
THE 35 NEW JOBS HAD A PAYROLL REQUIREMENT OF $740,705, AND THE RETAINED JOBS HAD A PAYROLL REQUIREMENT OF $5,028,773 FOR A TOTAL REQUIRED PAYROLL OF $5,769,478.
THE ACTUAL NUMBER OF JOBS FOR THE REPORTING PERIOD WAS 119 JOBS WITH $5,656,088 IN PAYROLL.
THE PARISH, THE SCHOOL BOARD, OR THE SHERIFF RESPONDED WITH RECOMMENDATIONS.
>> ALL RIGHT. PLEASE LET ME SEE.
PLEASE STATE YOUR NAME, AND YOUR POSITION WITH THE COMPANY, PLEASE.
I'M WITH THE BATON ROUGE LAW FIRM OF SHOCKEY AND ASSOCIATES.
KEROTEST IS BASED IN PITTSBURGH.
THAT'S WHERE THEIR EXECUTIVE TEAM IS.
THEIR MANUFACTURING FACILITIES ARE UP AT MANSURA, WHICH IS BY MARKSVILLE.
I HAVE BEEN ASKED TO COME TODAY TO BE YOUR SACRIFICIAL LAMB, IF I MAY.
WE DEEPLY REGRET BEING HERE ONCE AGAIN.
A LITTLE BIT OF BACKGROUND, KEROTEST MANUFACTURES VALVES.
THEIR NUMBER ONE PRODUCT LINE IS THE POLYETHYLENE VALVES THAT ARE USED IN NATURAL GAS DELIVERY SYSTEMS BY UTILITIES, MUNICIPALITIES, AND THINGS OF THAT NATURE.
THEY MAKE A LOT OF METAL VALVES THAT ARE ALSO USED IN INDUSTRIAL APPLICATIONS AND OIL FIELDS.
THEIR PLANT IS IN MANSURA, LOUISIANA, AND HAS BEEN FOR A NUMBER OF YEARS.
OUR CONTRACT WAS SIGNED IN 2019, SO CAN YOU IMAGINE WHAT TURNED OUT TO BE A WORSE YEAR FOR ANYONE TO HAVE SIGNED A CONTRACT FOR THE INDUSTRIAL TAX EXEMPTION THAN 2019 WITH WHAT WAS LOOMING FOR US IN 2020 THAT WE DIDN'T KNOW ABOUT? THE 2022 JOB REQUIREMENT WAS 185 JOBS.
90% OF THAT, WHICH IS THE DEFAULT BENCHMARK IN THE CONTRACTS, 167. WE HAD 159.
WE WERE EIGHT JOBS SHORT. THAT'S LIKE 7.2%.
I DON'T MEAN TO MAKE LIGHT OF IT, BUT WE'RE NOT TALKING ABOUT THOUSANDS OF JOBS THAT WE MISSED THE TARGET HERE.
THE 2022 PAYROLL THAT WAS REQUIRED WAS 5.517 MILLION.
OUR PAYROLL WAS 5.452 MILLION OR 98.9% OF THE PAYROLL REQUIRED UNDER THE CONTRACT.
YES, THERE WAS A LATE FILING OF THE CERTIFICATE OF COMPLIANCE.
CHRIS WHITE NOW RETIRED, WAS A FORMER PRESIDENT, AND CEO OF THE COMPANY, DIDN'T FILE TIMELY.
I'M NOT RESPONSIBLE FOR THE PROGRAM.
I'M JUST THEIR LOCAL BOOTS ON THE GROUND WHEN THEY NEED SOMEONE HERE.
BUT UPON NOTICE, AS HUD INDICATED, IT WAS FILED WITHIN THREE DAYS.
THE REPORT WAS FILED WITHIN THREE DAYS OF NOTICE.
THERE ARE THREE LOCAL GOVERNMENTAL ENTITIES AFFECTED BY THE INDUSTRIAL TAX EXEMPTION UNDER THIS CONTRACT.
VOY SPEARS SCHOOL BOARD, VOY SPEARS POLICE JURY, AND NAVS PAIRE SHERIFF, NONE OF THEM HAVE RESPONDED DESPITE WRITTEN NOTICE REQUESTING THAT
[00:45:02]
ANY SORT OF PENALTY BE EXACTED FOR NON-COMPLIANCE.WE FELL 7% SHORT ON OUR JOBS, BUT ONLY ABOUT 2% SHORT ON THE ACTUAL PAYROLL.
THE BENCHMARK IN THE CONTRACT FOR 2023 IS 190 JOBS.
WE ENDED THE YEAR WITH ONLY 119.
I'M INFORMED THAT THE EMPLOYEE COUNT DROPPED BECAUSE OF CUTBACKS IN CUSTOMER ORDERS.
I HATE TO BRING THIS UP, DRIVEN BY COVID AS A BACKLASH TO COVID.
REMEMBER DURING THE EARLY DAYS OF COVID, WE RAN INTO SUPPLY CHAIN PROBLEMS. ONCE SUPPLY BECAME AVAILABLE, CUSTOMERS STOCKED UP.
THEY ORDERED MORE INVENTORY THAN THEY COULD USE IN THE ORDINARY COURSE OF BUSINESS.
NOW OUR CLIENT, AS MANUFACTURERS HAD TO DEAL WITH THE RUNOFF OF THAT INVENTORY THAT THE SUPPLIERS BOUGHT IN 2022 AND 2023.
I'M SORRY, THAT CUSTOMERS BOUGHT IN 2022 AND 2023 AND HAVEN'T USED UP YET.
THERE IS, HOWEVER, SOME GOOD NEWS.
THE 2023 PAYROLL PER THE AGREEMENT IS $5.769 MILLION.
THE TOTAL PAYROLL REPORTED FOR 2023 WAS 5.656%, A DIFFERENCE OF 1.97%, SO WE'RE PRETTY CLOSE TO THE PAYROLL NUMBERS.
THERE ARE THREE LOCAL GOVERNMENTAL ENTITIES THAT ARE AFFECTED.
THEY ARE THE VOY SCHOOL BOARD, POLICE JURY, AND SHERIFF, AND NONE OF THEM HAVE ASKED FOR ANY ACTION ON THE PART OF THE BOARD.
NOW, THIS CONTRACT WAS SIGNED UNDER THE POST-EXECUTIVE ORDER 2017 RULES, SO IT'S A FIVE-YEAR CONTRACT THAT'S UP FOR RENEWAL IN 2024.
BECAUSE THE WAY THE CONTRACTS ARE WRITTEN, IT ISN'T THAT YOU'VE GOT TO HAVE TEN MORE JOBS THAN YOU HAD LAST YEAR, FOR EXAMPLE, IT'S YOU HAVE A FINITE NUMBER OF JOBS THAT YOU'RE SUPPOSED TO ACHIEVE EVERY YEAR AND IT BILLS.
IT'S 160, THEN IT'S 170, THEN IT'S 180, THEN IT'S 190.
IF YOU MISS OUT, YOU HAVE GROUND TO RECOVER.
IT ISN'T GOOD ENOUGH TO JUST HAVE TEN MORE JOBS THAN YOU HAD LAST YEAR.
WE'VE NEVER BEEN ABLE TO MAKE UP FOR LOST GROUND ON THE JOB.
KEROTEST MADE THE ELECTION NOT TO APPLY FOR RENEWAL IN 2024 BECAUSE WE'VE CONSISTENTLY BEEN IN A DEFICIT POSITION AND UNABLE TO LIVE UP TO OUR OBLIGATIONS.
WE'VE COME SHORT. WE'VE COME CLOSE, BUT NEVERTHELESS, WE RECOGNIZE WE'RE SHORT AND HAVEN'T FULFILLED OUR OBLIGATIONS.
WHILE I RECOGNIZE THAT WHAT I'M ABOUT TO SAY IS NOT A RELEVANT FACTOR IN TERMS OF COMPLIANCE WITH THE CONTRACT, I WOULD SUGGEST TO YOU, THAT IT IS A RELEVANT FACTOR TO CONSIDER IN CONNECTION WITH WHAT PENALTY, IF ANY, TO EXACT FROM MY CLIENT.
THAT MEANS THOUGH IT'S A PENNSYLVANIA COMPANY, ITS LOUISIANA EMPLOYEES SHARE IN THE OWNERSHIP OF THE COMPANY.
I'M INFORMED THAT IN 2023, LOUISIANA RESIDENTS WERE PAID $1,042,141 FOR KEROTEST COMPANY STOCK THAT THEY REDEEMED UPON RETIREMENT OR SEVERANCE FROM THE COMPANY.
THAT'S ADDITIONAL MONEY THAT THIS COMPANY HAS PUT INTO THE LOCAL ECONOMY IN THE VOS PARISH AREA.
REALIZE IT DOESN'T MEAN WE DIDN'T VIOLATE THE CONTRACT.
I'M JUST SUGGESTING TO YOU THAT IT SHOWS THAT KEROTEST IS A GOOD CORPORATE CITIZEN WHO'S TAKEN HIS RESPONSIBILITIES UNDER THE CONTRACT SERIOUSLY.
GIVEN THE LACK OF OPPOSITION FROM THE THREE LOCAL GOVERNMENTAL ENTITIES, I WOULD BEG YOUR INDULGENCE AND ASK THAT NO PENALTY BE ASSESSED AGAINST KEROTEST.
>> [BACKGROUND] CAN YOU HEAR ME NOW?
>> ARE YOU HAVING PROBLEMS WITH HAVING JOB OPENINGS THAT CAN'T HIRE, BECAUSE OF WHAT'S HAPPENING RIGHT NOW IN LOUISIANA? I CAN UNDERSTAND THE LAST TIME YOU CAME, I REMEMBER COVID.
WE TALKED ABOUT THIS AND HAD JOB OPENINGS, BUT COULDN'T SUPPLY THEM.
THERE ARE A LOT OF BUSINESSES RIGHT NOW THAT DON'T HAVE.
DO YOU KNOW ANYTHING ABOUT WHETHER THEY CAN MAKE IT WITH THE AMOUNT OF JOBS THAT THEY HAVE AN OPENING FOR, BUT THE WORKFORCE IS REALLY LACKING RIGHT NOW?
>> SENATOR LAVON ANSWERS, I DON'T KNOW.
>> ALL RIGHT. I'M SORRY. I THOUGHT YOU WERE.
>> JUST A REPRESENTATIVE [LAUGHTER].
>> FORGIVE ME. REPRESENTATIVE LAVON, [BACKGROUND] I DON'T KNOW.
I'M SURE I HAD ASKED IF GREG MAYU, WHO IS THE MANAGER OF THE PLANT IN MANSURA, COULD COME TODAY, BUT THERE WAS SOMETHING ELSE AND HE COULD NOT BE SPARED.
[00:50:02]
AT ONE TIME, THAT WAS A PROBLEM IN THE EARLIER YEARS OF THE CONTRACT.COURSE, WE'VE ACTUALLY HAD IN 2023 A SIGNIFICANT REDUCTION IN EMPLOYEES, BECAUSE OF THE SUPPLY CHAIN BACKLASH ISSUES THAT I MENTIONED.
I ANTICIPATE THAT THERE'S BEEN A REDUCTION IN FORCE AS OPPOSED TO THE WORKFORCE REMAINING STATIC.
IT LED ME TO BELIEVE THAT NO, IT'S NOT THEY CAN'T FIND EMPLOYEES, THOUGH I KNOW THAT'S BEEN A PROBLEM.
[BACKGROUND] BUT RATHER THEY JUST DON'T HAVE ENOUGH CUSTOMER WADERS.
>> I'D LIKE TO KNOW THE NUMBER BECAUSE I'D LIKE THAT TO GO ON RECORD AND STUFF BECAUSE WE'RE HAVING A BIG PROBLEM WITH THE SUPPLY LABOR FORCE.
>> WE'RE WORKING ON THAT HARD, AND IF WE KNOW THAT THESE JOBS ARE NOT BEING CREATED, BUT THEY TRYING TO.
I'D REALLY LIKE YOU TO ASK THEM AND GET BACK TO ME, SO THIS BOARD CAN UNDERSTAND WHAT'S GOING ON TOO.
>> I CAN TELL YOU THAT IN MY ASKING QUESTIONS OF MANAGEMENT IN PITTSBURGH ABOUT WHY THE NUMBER OF JOBS WENT DOWN AND ALL, THAT WAS NOT MENTIONED, RATHER IT WAS THE PROBLEM WITH LACK OF CUSTOMER ORDERS DUE TO CUSTOMERS RUNNING OFF THE INVENTORY THAT THEY ALREADY HAD ON.
AGAIN, THEY FEEL THAT THERE WAS A DEFINITE THAT THEIR CUSTOMERS MAY BE OVERBOUGHT IN 2022 AND 2023.
ONCE KEROTEST WAS ABLE TO MEET WHATEVER DEMAND THERE WAS FOR THEIR CUSTOMERS.
NOW THOSE CUSTOMERS ARE SITTING THERE WITH INVENTORY ON THEIR SHELF THAT THEY HAVEN'T USED YET, AND THEY WANT TO USE THAT UP OR DOWN TO SOME POINT.
>> IF THEY USED IT FASTER, YOU WOULD HAVE MORE ORDERS.
>> MR. CHAIRMAN, I'D LIKE TO MAKE THAT MOTION WITH NO PENALTY.
>> WE HAVE A MOTION FROM MR. ST. BLONC TO APPROVE WITH NO PENALTY.
>> WE HAVE A SECOND, MR. F [OVERLAPPING].
>> FORGIVE ME. BIFOCALS AREN'T WORKING THAT FAR.
[LAUGHTER] FORGIVE ME. ALL RIGHT.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE, ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION. THERE IS NONE.
THE MOTION CARRIES. THANK YOU, MR. SHOCKEY.
>> NEXT, WE HAVE NON-COMPLIANT CONTRACTS FOLLOWING THE POST DO 2018 ITEP RULES.
>> ONE CONTRACT NUMBER 2019 0086 FOR FISHER MANUFACTURING SERVICES, LLC, INTANGIBLE HOA PARISH IS NON COMPLIANT FOR THE 2023 REPORTING PERIOD.
THE EXHIBIT A FOR THE CONTRACT REQUIRES THE COMPANY CREATE AND MAINTAIN ONE JOB WITH 20,000 IN PAYROLL.
THE COMPANY FAILED TO SUBMIT ANNUAL COMPLIANCE BY THE REQUESTED EXTENDED DEADLINE OF JUNE 29TH, 2024.
THE PARISH NOR SHERIFF RESPONDED WITH RECOMMENDATIONS, AND THE SCHOOL BOARD DID NOT APPROVE THE EXEMPTION AT THE TIME OF APPLICATION.
>> DO WE HAVE SOMEONE HERE FROM FISHER MANUFACTURING.
IF YOU WOULD PLEASE STATE YOUR NAME, YOUR POSITION WITH THE COMPANY, PLEASE?
>> I'M JENNI FISHER, AND I'M A PURCHASING MANAGER.
>> JUST OUR RENEWAL APPLICATION WAS LATE AND IT WAS AN OVERSIGHT THINKING THAT THE COMPLIANCE WOULD COME AFTER THE RENEWAL WAS GRANTED.
WE HAVE NOW COMPLIED, BUT IT WAS STILL LATE.
WE MET ALL OF OUR REQUIREMENTS.
>> WITH THE INFORMATION I HAVE, YOU DID NOT MEET THE JOB OR THE PAY ROLL REQUIREMENT, IS THAT CORRECT HAG?
>> THEY DIDN'T FILE SO WHEN THEY DIDN'T FILE, THEY REQUESTED AN EXTENSION TO FILE, AND THEY DIDN'T FILE IT BY THAT EXTENDED DEADLINE.
THE LOCALS WERE NOTIFIED OF THEM NOT FILING.
AFTER THE LOCALS WERE NOTIFIED OF THEM NOT FILING COMPLIANCE AT ALL, THEY FILED IT BETWEEN THEN AND THIS BOARD.
>> YOU MET YOUR COMPLIANCE GOALS.
BECAUSE THE NO FILING NO REPORT, WE DID NOT KNOW WHETHER YOU MET THE GOAL?
>> YOU MET THE JOBS, YOU MET THE PAYROLL.
WE ESSENTIALLY HAVE NOW A LATE FILING ISSUE, IS THAT CORRECT?
>> WHEN WAS THE COMPLIANCE REPORT FILED?
>> I DON'T HAVE THE EXACT DATE ON ME.
>> YES. SOMEWHERE. WAS A SEVENTH MONTH.
[00:55:04]
>> IT'S NOT CRITICAL. I THOUGHT YOU MIGHT HAVE IT RIGHT THERE IN FRONT OF YOU.
>> I PROBABLY DO. MIDDLE OF ALL OF THIS.
>> IT'S ABOUT A MONTH LATE THEN.
THANK YOU. NOW, THE REASON FOR THE NON FILING WHAT WAS GOOD?
>> IT WAS JUST I THOUGHT WITH THE RENEWAL NOT I WAS LATE ON MY RENEWAL.
I WAS LATE ON THE RENEWAL, AND I DIDN'T THINK THAT I COULD DO THIS COMPLIANCE BEFORE THE RENEWAL.
I'M NEW TO ALL THIS SO I'M LEARNING.
>> WE'RE GOING TO TRY TO MAKE IT SIMPLER WHEN WE FIX THE NEW RULES.
>> I GET IT. BUT AT THE END OF THE DAY, WHAT WE HAVE HERE IS THAT THEY MET THE JOBS AND PAY ROLL REQUIREMENTS.
THEY HAD A LATE FILING OF ESSENTIALLY LESS THAN A MONTH.
NO PENALTY. A SECOND FOR MR. DAS.
>> WHAT WAS THE ACTUAL NUMBER OF EMPLOYEES? IT WAS SUPPOSED TO BE ONE AND WE HAD TWO.
>> VERY GOOD. ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE, ALL IN FAVOR, SAY AYE.
>> ANY OPPOSITION. THERE IS NONE.
>> WE HAVE ONE CONTRACT FOR GATOR MILLWORKS, INC IN 2018 0108 IN LIVINGSTON PARISH.
THEY'RE NON COMPLIANT FOR THE 2022 AND 2023 REPORTING PERIODS.
THE EXHIBIT A FOR THIS CONTRACT REQUIRES THE COMPANY CREATE AND MAINTAIN FIVE NEW JOBS AND 250,000 IN NEW PAYROLL.
FOR THE 2022 REPORTING PERIOD, THE ACTUAL JOBS AND PAYROLL CREATED FOR ZERO NEW JOBS AND ZERO IN NEW PAYROLL.
FOR THE 2023 REPORTING PERIOD, THE ACTUAL JOBS IN PAYROLL WERE ZERO NEW JOBS AND ZERO IN NEW PAYROLL.
THE PARISH RESPONDED WITH A RESOLUTION STATING TO TAKE NO ACTION AGAINST GATOR MILLWORKS BY NOT PENALIZING THEM FOR EVERY YEAR OF NON COMPLIANCE IN THE ITEP PROGRAM.
THE SCHOOL BOARD RESPONDED WITH A RESOLUTION STATING TO RECOMMEND THE LOUISIANA BOARD OF COMMERCE AND INDUSTRY REDUCED BY ONE YEAR FOR 2022, AND BY ONE YEAR FOR 2023, THE TERMS OF THE TAX EXEMPTIONS PREVIOUSLY GRANTED TO GATOR MILLWORKS INC FROM THE CURRENT FIVE YEAR TERM TO THREE YEAR TERM, AND THE SHERIFF DID NOT RESPOND WITH A RECOMMENDATION.
>> DO WE HAVE ANYONE HERE FROM GATOR MILLWORKS? WOULD YOU STATE YOUR NAME, YOUR POSITION WITH THE COMPANY, PLEASE.
>> MY NAME IS CHAD FOSTER WITH GATOR MILLWORKS. I AM THE PRESIDENT.
>> GREAT. TELL US WHAT WAS GOING ON HERE.
WE HAVE NOT BEEN ABLE TO MAINTAIN POSITIONS AT OUR COMPANY THE LAST SEVERAL YEARS. WE'VE BEEN HIRING.
WE'VE BEEN VERY COMPETITIVE JOB MARKET, SO PEOPLE LEAVING FOR OTHER HIGHER PAYING JOBS AND PLANT WORK.
FOR US, AS A CUSTOM MILLWORK FABRICATOR, IT'S CHALLENGING TO COMPETE WITH THAT.
I CAN SAY IN REPORT TODAY THAT OUR NUMBERS OF TODAY WE'RE ONE JOB AWAY FROM BEING IN COMPLIANCE, AND WE ALSO EXPECT TO BE VERY CLOSE TO HITTING OUR REQUIREMENT OF JOB PAYROLL AMOUNT FOR THE YEAR AS WELL.
PRETTY BIG TURN FROM JUST BEING ABLE TO KEEP MAINTAINING, BUT IT'S BEEN CHALLENGING.
HOW MANY TOTAL EMPLOYEES DO YOU HAVE RIGHT NOW?
>> THAT GIVES ME AN IDEA OF THE SIZE OF YOUR OPERATION.
IT'S A MATTER OF LOSING PERSONNEL TO HIGHER PAYING JOBS AND NOT BEING ABLE TO MAINTAIN THE COUNT.
>> WE'VE NEVER HAD A LAYOFF IN 30 YEARS THAT WE'VE BEEN IN BUSINESS, AT ONE TIME. I'M PROUD TO SAY THAT.
JUST UNFORTUNATELY, JUST EVEN LAST WEEK, YOUNG MAN TEXT ME ON A FRIDAY AND SAID THAT HE GOT OFFERED $36 AN HOUR TO GO BE A TURNAROUND JOB WITH TWO MONTH JOB, AND HE LEFT US UP TO NINE MONTHS.
>> HELP ME UNDERSTAND. THERE ARE NO DATES UNDER THE COMPLIANCE DUE DATE IN THE COMPLIANCE RECEIVED DATE.
>> IT'S JUST A MATTER OF NOT MEETING THE NEW JOBS.
>> THEY FILE THEIR COMPLIANCE REPORTS TIMELY.
>> ONE OTHER THING I WOULD LIKE TO ADD IS THAT IN THESE LAST TWO YEARS AS WELL,
[01:00:03]
WE'VE BEEN ABLE TO WHILE WE HAVEN'T HIT THE JOBS, WHAT WE HAVE BEEN ABLE TO DO THOUGH IS TO OFFSET SOME OF OUR PRODUCTION BE ABLE TO ADD SOME MACHINERY, WHICH THAT'S NOT PART OF OUR ITAP.IT GOES ON THE ROLE. WE'VE PAID USE TAX ON THAT EQUIPMENT, WHICH IS A LITTLE OVER A MILLION DOLLARS IN THE LAST TWO YEARS TO HELP US WITH STAFFING NEEDS, WHICH HAS GENERATED ADDITIONAL SALES AND USE TAX FOR THE LOCAL ECONOMY, AND ALSO EVEN FOR PROPERTY TAXES THAT GOES ON INSTANTLY.
IN THOSE LAST 2-3 YEARS, IT WAS $130,000 IN ADDITIONAL MONEY THAT WE DID NOT EXPECT TO PAY WHEN WE WENT INTO THIS ITEP WHEN WE STARTED.
>> HOW WAS BUSINESS DURING THESE TWO YEARS? YOUR BUSINESS DURING THESE TWO YEARS, THE '22 AND '23 WAS IT GROWING, FLAT?
>> I WOULD SAY IT'S BEEN STEADY, IS THE WAY TO SAY IT.
IT'S HARD TO TAKE ON TOO, TOO MUCH MORE WORK WHEN IT'S HARD TO DEPEND ON THE PEOPLE.
>> THANKS FOR BEING HERE. I JUST WANT TO GET THE FULL CONTEXT HERE.
WITH THE APPLICATION, NUMBERS WISE, YOU HAD 38 EMPLOYEES, YOU WERE GOING TO ADD FIVE.
>> WE DID ADD THEM. IT'S JUST JUST IN EACH YEAR OF 2022, WE HAD 62 W2S WE ISSUED THE YEAR.
WELL OVER THE NUMBERS THAT WE HAVE, AND IN THOSE NUMBERS, 27 PEOPLE OF 2022 RESIGNED TO TAKE OTHER POSITIONS.
IT'S JUST COMPETITIVE JOB MARKET THAT I CANNOT I GUESS FAULT HIM FOR THAT.
>> YOU ANSWER THE QUESTION. I'M GOING TO ASK YOU WITHOUT ME ASKING. THANK YOU.
>> I HAVE A QUESTION. THIS THIS IS WHAT THE NEW RULES WILL ADDRESS?
>> YES. THERE WILL BE NO JOBS AND PAY ROLL REQUIREMENTS.
THERE ARE NONE FOR ANYBODY THAT HAS FILED SINCE FEBRUARY OF '24.
THE NEW RULES WILL HAVE NO JOBS AND PAY ROLL REQUIREMENTS.
BECAUSE WE CAN TALK PROS AND CONS OF THE EDWARDS CHANGES, BUT THE REALITY IS, AND I'VE MAINTAINED THIS FROM DAY 1 IS THAT MANUFACTURING BY ITS NATURE, INTENDS TO MAKE MORE WIDGETS WITH FEWER PEOPLE.
THAT IS ITS GOAL IN LIFE, AND REQUIRING A JOB AND GUYS, THESE JOBS AND PAYROLL REQUIREMENTS WERE NOT REQUIRED FOR ONE YEAR, THEY WERE REQUIRED FOR 10 YEARS.
BASICALLY, YOU HAVE A COMPANY THAT'S AGREEING TO HAVE X NUMBER OF JOBS AND AGREEING TO HAVE THAT MANY JOBS 10 YEARS FROM NOW.
WELL, WITH TECHNOLOGY AND WITH EVERYTHING ELSE GOING ON, NOT TO MENTION THE ECONOMY, THAT'S A BRIDGE TOO FAR.
FORTUNATELY, GOVERNOR LANDRY HAS SEEN FIT TO REMOVE THOSE REQUIREMENTS.
THE NEW RULES WILL NO LONGER HAVE THOSE JOBS AND PAYROLL REQUIREMENTS.
MANUFACTURERS WILL BE EXPECTED TO MANUFACTURE, AND WE WANT THEM TO BE AS EFFICIENT AS THEY POSSIBLY CAN BECAUSE THAT'S THE WAY THAT INSURERS SUCCESS.
>> JUST CURIOUS, WHAT'S HAPPENED TO YOUR TOTAL PAYROLL OVER THAT TIME PERIOD? NOT IN NEW JOBS, BUT JUST YOUR TOTAL PAYROLL?
>> IT'S RELEASED AND PAYING MORE.
>> YOU KNOW APPROXIMATELY HOW MUCH?
>> I KNOW IT'S INCREASED BUT LESS PEOPLE.
>> THIS IS A TOUGH ONE. THE ONLY THING THAT I SEE IS WITH THE SCHOOL BOARD.
DO THEY WANT TO CONTINUE TO REDUCE THE TERM? YOU MET WITH THEM?
>> WE DID AND THEY ACTUALLY HAD TWO RESOLUTIONS THAT THEY VOTED ON THAT NIGHT AT THE SCHOOL BOARD MEETING.
THEY ACTUALLY HAD A RESOLUTION THEY VOTED ON TO TAKE TO DEFER.
THAT VOTE WENT WAS ONE DIFFERENT VOTE THAT IT WAS 5,4 OVER THIS.
ONE OF THE VOTE CHANGED BETWEEN THE TWO RESOLUTIONS, WHICH WAS STRANGE BECAUSE IT WAS TO TAKE TO DEFER AND THEN IT WAS THE NEXT RESOLUTION WAS TO TAKE ONE YEAR FOR EACH YEAR, NON COMPLIANCE.
IT'S WAS STRANGE TO SEE A VOTE CHANGE WITHIN SECONDS, I GUESS, TO GO FOR NO DEFERMENT.
I'M SORRY, 63 SO MY GLASSES, I CAN'T SEE IT, 63 WAS WHAT THE RESOLUTION PASSED, AND IT WAS 54 TO TAKE TO DEFER IT.
IT WAS CLOSE TO DEFERRING IT FROM SCHOOL BOARD.
THEN THE COUNCIL PASSED AT 90, TAKE NO ACTION.
>> THANK YOU. [OVERLAPPING] ANYTHING ELSE?
[01:05:01]
WE'VE HAD ISSUES LIKE THIS COME UP BEFORE.WE COULD ACTUALLY MAKE A MOTION TO REDUCE THE TERM BY TWO YEARS AS PER THE RESOLUTION BY THE SCHOOL BOARD AND TAKE NO ACTION ON THE POLICE JURY AND THE SHERIFF, CORRECT?
>> WE ACTUALLY CANNOT DO THAT BECAUSE YOU CAN'T CHANGE THE TERM OF ONLY A PORTION OF THE CONTRACT.
THAT WOULD MAKE YOU COULDN'T CHANGE THE EXPIRATION DATE FOR ONLY THE SCHOOL BOARD MOTION.
IT'S ONE OR THE OTHER, I WOULD SAY, OR WHATEVER YOU'LL DECIDE?
>> BEFORE WE GET INTO THAT DEBATE, I'M SORRY, YOU HAVE SOMETHING?
>> I GUESS I DIDN'T SAY, BUT WE'RE ASKING FOR NO PENALTY ON THIS ONE.
>> NICE TO ADD. BUT I ASSUMED IT.
>> BUT BEFORE WE GET INTO BECAUSE WE HAVE A COUPLE OF OTHER PEOPLE THAT WANT TO SPEAK ON THIS.
UNLESS YOU HAVE SOMETHING ELSE TO ADD.
WE HAVE MR. BILLY TAYLOR FROM THE LIVINGS PARISH COUNCIL.
>> GOOD MORNING. MY NAME IS BILLY TAYLOR, LIVINGSTON PARISH COUNCIL DISTRICT 3.
>> GATOR MILLWORKS HAS DONE AMAZING THINGS, NOT ONLY JUST BEING PART OF THE LIVINGSTON PARISH IS THAT I ACTUALLY GOT TO ATTEND A SCHOOL FUNCTION THAT THEY DID THERE.
WHAT THEY DID WAS THEY BROUGHT ALL THE KIDS THAT ARE IN THE WOOD SHOP IN HIGH SCHOOL AND BROUGHT THEM INTO THEIR FACILITY AND SHOWED THEM THE CUTTING TECHNOLOGY THAT THAT THEY'RE PRODUCING.
ONLY STUFF THAT IS IN LIVINGSTON PARISH THAT'S NOT EVEN ON THE EAST COAST.
NOT INCLUDING THE COUNCIL TOOK A NO VOTE OF ELECTED OFFICIALS TO TAKE NO ACTION.
THAT'S WHAT THE COUNCIL REQUEST.
I BELIEVE THAT THEY WILL BE FINDING ONE OTHER PERSON TO BECOME IN COMPLIANCE WITH THIS, AND I KNOW THAT THEY'RE WORKING REALLY HARD TO DO THAT.
>> ANY QUESTIONS? THANK YOU VERY MUCH FOR BEING HERE TODAY.
>> I TALK A LOT MORE THAN EVERYBODY ELSE. MY NAME IS RICKY GOFF.
I'M LIVINGSTON PARISH COUNCIL OF DISTRICT 7.
TO GIVE A REAL QUICK SYNOPSIS.
THESE PEOPLE PUT IN FOR THEIR ITF EARLY ON WHEN THERE WAS NO JOB REQUIREMENTS.
THEN THEY FELL INTO A FLOOD OF 2016.
THEN THEY FELL INTO WHAT YOU'RE STATING TODAY THAT I AGREE 100% IS STRING UP THE PEOPLE TO DO AND MAKE A HEALTHY COMPANY.
THEN THEY FELL INTO THAT CATEGORY, AND THEY HAVE BEEN NEAR THE GREAT COMPANY THAT YOU WANT IN YOUR PARISH AND IN YOUR DISTRICT, NOT ONLY COMPETING AND MARKET ACROSS THE PARISH, ACROSS THE NATION, BUT THEY'RE ALSO GIVING BACK TO AS MY FELLOW COUNCILMAN SAID TO THE STUDENTS.
THEY'RE DOING THAT, SO HOPEFULLY THEY CAN ALSO GET SOMETHING BACK OUT OF THOSE STUDENTS WHEN THEY GET OUT.
THEY'RE DOING, I BELIEVE, EVERYTHING THEY HUMANLY POSSIBLY CAN DO, AND THEY ARE IN COMPLIANCE.
THEY'RE DOING THEIR DUE DILIGENCE.
BUT UNFORTUNATELY, THEY HAVE FOUND THEMSELVES IN A FLOOD, A COVID, AND AN EXTREMELY TOUGH MARKET THAT'S COMPETITIVE FOR OUR WORKFORCE.
I THINK OUR GOVERNOR SEES THAT AND REALIZES THAT.
OUR COUNCIL ON THOSE REASONINGS VOTED NINE, THAT WE GIVE THEM NO PENALTIES BECAUSE OUR DOOR IS OPEN TO COMPANIES LIKE THIS TO BE IN OUR PARISH FOR 25 YEARS, STAY IN OUR PARISH FOR 25 YEARS.
THAT BEING SAID, LET'S ROLL OVER TO THE SCHOOL BOARD.
I KNOW THAT IS TOUGH FOR SOME PEOPLE.
BUT OUR SCHOOL BOARD IS IN A REALLY TOUGH TIGHT SPOT FROM A TAX BASED STANDPOINT, AND THEY GETTING A LOT OF POLITICAL PRESSURE TO DO EVERYTHING THAT THEY CAN.
WE HAD SOME SCHOOL BOARD MEMBERS THAT HAD A LOT OF STRINGS PULLED ON THEIR HEARTS ON WHAT TO DO AND WHAT NOT TO DO, AND THAT'S WHY YOU SAW THE VOTE THAT IT WAS.
I SIMPLY ASK YOU TODAY THAT TAKE NO ACTION, LET THESE PEOPLE CONTINUE TO DO WHAT THEY'RE DOING, AND HOPEFULLY OTHERS WILL LOOK AT THAT AS WELL.
AGAIN, I SAY THE LIVINGSTON PARISH DOOR IS OPEN TO COMPANIES OF THIS NATURE.
>> THANK YOU, MR. GROFF. ANY QUESTIONS FOR MR. GROFF?
>> YOU'VE BEEN IN BUSINESS FOR 25 YEARS?
>> THIRTY YEARS. I WANT TO RESTATE ONE THING THAT HE SAID.
[01:10:03]
>> HE HAS NOT LET ANYONE GO FROM HIS COMPANY WITH ALL THE STRUGGLES THAT THEY'VE HAD WITH COVID, THE FLOOD, PUTTING PEOPLE'S HOUSES BACK TOGETHER.
ALL THESE PEOPLE LIVE IN THAT COMMUNITY AND PROBABLY, I DON'T KNOW WHAT THE PERCENTAGE IS, BUT IF I HAD TO GUESS, AT LEAST A MINIMUM OF 80% OF THEM GOT WATER IN THEIR HOUSE.
BUT HE DIDN'T SAY, HEY, WE CAN'T PUT YOU TO WORK.
HE SAID, COME BACK AS SOON AS YOU CAN. ANY QUESTIONS?
>> AT THE PROPER TIME, I'D LIKE TO MAKE A MOTION.
>> THANK YOU VERY MUCH. THANK, MR. [INAUDIBLE].
>> DO WE HAVE ANYONE HERE FROM THE SCHOOL BOARD BY ANY CHANCE? I DID NOT GET A CARD, BUT I WANTED TO GIVE YOU AN OPPORTUNITY TO SPEAK IF YOU'RE HERE.
>> I'M LOOKING AT YOUR WEBSITE.
WOULD YOU HAVE ANY IDEA HOW MANY OF YOUR WORKERS ARE LIVINGSTON PARISH SCHOOL GRADUATES?
>> I DON'T HAVE THAT EXACT NUMBER, BUT IT'S DEFINITELY PROBABLY 60, 70%.
>> THAT'S WHAT I WANT. THANK YOU.
>> ANY OTHER QUESTIONS? MR. NASSER, DO YOU HAVE A MOTION TO MAKE?
>> YES SIR. I'D LIKE TO MAKE A MOTION TO TAKE NO ACTION.
>> WE APPROVE WITH NO PENALTY?
WE HAVE A MOTION, MR. NASSER SECOND, MR. MILLER.
ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD?
>> YEAH, JUST A QUICK COMMENT.
I THINK THIS IS THE EXACT EXAMPLE OF THE TYPE OF BUSINESS IN LOUISIANA THAT DESERVES LENIENCY.
YOU HAVE A EMPLOYEE BASE OF 38.
YOU HAD 62 W2S IS ISSUED IN ONE YEAR.
WE ALL KNOW ABOUT THE ISSUES THAT ARE GOING ON IN OUR STATE RIGHT NOW.
I THINK THIS IS THE PERFECT EXAMPLE OF A TAKE NO ACTION TYPE OF SITUATION.
>> JUST A COMMENT JUST FOR EVERYONE.
HERE TODAY, I DID HAVE THE HONOR TO BE TOURED YOUR FACILITY A COUPLE OF YEARS AGO.
I DON'T KNOW IF YOU REMEMBER, BUT THERE WAS A CONTINGENCY OF US THAT WENT OUT THERE.
IT WAS A BEAUTIFUL FACILITY IN LIVINGSTON PARISH A NEW FACILITY.
I CAN'T REMEMBER HOW MANY YEARS AGO YOU CONSTRUCTED IT.
BUT JUST THE SITE, THE FLOOR SITE OF WALKING THROUGH THE MILL AND HOW CLEAN IT WAS AND THE TECHNOLOGY THAT HE HAD IN PLACE.
THANK YOU FOR YOUR COMMITMENT TO LOUISIANA AND FOR YOUR EMPLOYEES THAT YOU EMPLOY THERE WHAT YOU DO IN THE COMMUNITY. THANK YOU.
>> WE HAVE A MOTION TO SECOND.
ANY OTHER QUESTIONS OR COMMENTS? HEARING NONE, ALL IN FAVOR SAY AYE.
>> ANY OPPOSITION? THERE IS NONE.
THE MOTION CARRIES. THANK YOU, MR. FOSTER.
>> THANK YOU FOR YOUR INVESTMENT IN STATE.
THANK YOU ALL FOR BEING HERE. NEXT.
>> NEXT, WE HAVE ONE CONTRACT, 2020 0220 FOR GRAVE ALUMINUM BOATS, LLC, AND ST. MARY PARISH THAT IS NON-COMPLIANT FOR THE 2023 REPORTING PERIOD.
EXHIBIT A FOR THE CONTRACT REQUIRES THE COMPANY CREATE AND MAINTAIN TWO JOBS WITH $72,800 IN PAYROLL.
THE COMPANY FAILED TO SUBMIT THEIR ANNUAL COMPLIANCE BY THE APRIL 30, 2024 DEADLINE.
THE PARISH SCHOOL BOARD, SHERIFF NR CITY RESPONDED WITH RECOMMENDATIONS.
>> WE HAVE ANYONE HERE FROM GRAVA?
>> MR. CHAIRMAN, I NEED TO RECUSE MYSELF FROM GRAVA.
>> THANK YOU, MR. MAGRES. ANYBODY HERE FROM GRAVA ALUMINUM BOATS? WELL, THE WORLD IS YOUR OYSTER.
WE DON'T HAVE THE APPLICANT HERE.
>> I WOULD LIKE TO MAKE A MOTION.
>> WE HAVE A MOTION FROM MR. ST. BLONC TO APPROVE WITH NO PENALTY.
WE HAVE A SECOND FROM MR. REMEDES.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? MS. VILLA.
>> HUD, HAVE WE SINCE RECEIVED THE COMPLIANCE?
>> YES. THEY SINCE SUBMITTED THE COMPLIANCE.
THEY WERE STILL NON COMPLIANT FOR THE JOBS AND PAYROLL, BUT THEY DID SUBMIT IT.
>> NOTABLY, THE LOCALS HAVE MADE [INAUDIBLE] THE BOARD.
WE HAVE A MOTION SECOND TO APPROVE AND NO PENALTY.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE?
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> F1 CONTRACT, 20 GILCO, LLC, 2018 0373 IN ST. LANDRY PARISH, THEY'RE NON COMPLIANT FOR THE 2022 AND 2023 REPORTING PERIODS.
THE EXHIBIT A FOR THIS CONTRACT REQUIRES THE RETENTION OF 13 EXISTING JOBS IN $283,539 IN PAYROLL FOR THE 2022 REPORTING PERIOD,
[01:15:02]
THEY FAILED TO SUBMIT ANNUAL COMPLIANCE BY THE 43023 DEADLINE, AND FOR THE 2023 REPORTING PERIOD, THEY ALSO FAILED TO SUBMIT ANNUAL COMPLIANCE BY THE 43024 DEADLINE.THE PARISH RESPONDED WITH A RESOLUTION RECOMMENDING THAT THE LOUISIANA BOARD OF COMMERCE AND INDUSTRY AND OR LED ADOPT NO REMEDIAL ACTION FOR THE ALLEGED VIOLATIONS OF PROGRAM CONTRACT NUMBER 2018 0373-ITE, AND ONLY IN SO FAR AS THE FAILURE OF GILCO TO MEET THE REQUIREMENTS OF THEIR CONTRACT FOR JOB CREATION, JOB RETENTION, AND OR ANNUAL PAYROLL DICTATES.
THE SCHOOL BOARD AND SHERIFF DID NOT RESPOND WITH RECOMMENDATIONS.
THEY DID FILE THEIR COMPLIANCE AFTER THE NOTICES WERE SENT TO THE LOCALS NOTIFYING THEM THAT THEY WERE OUT OF COMPLIANCE FOR NON FILING, AND THEY DID MEET THE 13 REQUIRED RETAINED JOBS IN THE PAYROLL.
>> THIS ESSENTIALLY COMES DOWN TO A LATE FILING.
>> IT SAYS ON OUR PACKET THAT IT'S NOT RECEIVED, BUT WE'VE SEEN MORE THAN ONE THAT HAD BEEN RECEIVED. IS IT?
>> THE LOCALS WERE NOTIFIED OF THE NON FILING.
THEN SO WHEN THE LOCALS REACHED OUT AND ASKED WHY THEY DIDN'T FILE, THEY THEN FILED.
>> BUT I'M SAYING THE DATE THE SHEET WAS PRINTED.
>> WELL RIGHT. BECAUSE THAT'S WHAT THE LOCALS WERE NOTIFIED.
THAT'S THAT'S THE REASON THE LOCALS WERE NOTIFIED OF NON-COMPLIANCE.
>> LET'S BACK UP. THEY FAILED TO FILE, THE LED NOTIFIED THE LOCALS AND HAD ALREADY NOTIFIED THE COMPANY.
WHEN THE LOCALS NOTIFIED THE COMPANY OF WHAT'S GOING ON, THEY FILED THEIR COMPLIANCE REPORT.
FORTUNATELY, THEY MET ALL THEIR GOALS.
THERE WAS NO REASON NOT TO FILE A COMPLIANCE REPORT OTHER THAN I'M PRESUMING THERE'S SOMEBODY HERE.
BUT NOW THAT THEY HAVE FILED THEIR COMPLIANCE REPORT, WHICH CAME OUT BEFORE THIS REPORT WAS CREATED.
>> WE PROVIDED THE INFORMATION THIS WAY BECAUSE THAT IS WHAT IT WAS REPORTED TO THE LOCALS AS.
THAT IS THE REASON FOR THEIR NON-COMPLIANCE.
>> MY QUESTION IS THAT BUT AS FAR AS ADMINISTRATIVELY, HOW DO WE MAKE A DECISION BASED ON ALL OF THE INFORMATION? BECAUSE THIS WOULD LEAD ME TO BELIEVE THAT THEY HAD STILL NOT FILED ANYTHING. YOU SEE WHAT I'M SAYING? WHEN WE LOOK AT THIS AND IT SAYS IT'S NOT BEEN RECEIVED AND MORE THAN ONE TIME IT HAD BEEN RECEIVED, THEN WE LOOK AT THE APPLICANT A LITTLE BIT DIFFERENTLY.
>> BECAUSE WE ALREADY HAD NOTIFIED THEM THAT THEY WERE LATE AND GAVE THEM ADDITIONAL TIME TO FILE AS A LATE FILING, AND THEY STILL DID NOT TAKE THAT ADDITIONAL TIME.
WE CONSIDERED IT NOT RECEIVED.
>> BUT WHEN WE WERE MAKING OUR DECISIONS TODAY BASED ON THIS COLUMN BEING FILLED OUT AS NOT RECEIVED AND THAT LEADS.
I DON'T KNOW ABOUT ANYONE ELSE, BUT IT WOULD MAKE YOU THINK MAYBE THEY WERE JUST IGNORING THE REQUESTS FOR THAT, WHICH PUTS THEM IN A DIFFERENT LIGHT.
>> I AGREE WITH YOU, MR. REMEDES.
>> MAYBE IT'S NOT YOU GUYS BECAUSE YOU DON'T CREATE THE TEMPLATE IN WHICH TO PUT THE INFORMATION INTO THE MASK, AND MAYBE THE ADMINISTRATION COULD CONSIDER IF WE'LL GET AS OF YESTERDAY OR THE DAY BEFORE THE MEETING, WHAT HAS BEEN RECEIVED?
>> I THINK THE WAY WE CAN REMEDY THE PROBLEM IS WE GIVE THE APPLICANT OPPORTUNITY TO BE HERE AND WE CAN CLARIFY AS WE HAVE THAT THEY HAVE NOW FILED A COMPLIANCE REPORT, AND SO WE NOW HAVE THAT INFORMATION.
WE DIDN'T HAVE IT UNTIL NOW, BUT WE NOW HAVE IT.
WE'VE NOW DETERMINED THAT THEY DID MEET THEIR JOBS AND PAYROLL REQUIREMENTS.
WE KNOW THERE'S NOT A COMPLIANCE PROBLEM AS FAR AS THEIR GOALS.
WHAT IT REALLY COMES DOWN TO NOW IS A LATE FILING PROBLEM.
I THINK MR. REMEDES'S POINT IS HE WISHED HE'D KNOWN IT BEFORE WE GOT HERE TODAY.
I DON'T IF THERE'S SOME WAY TO CHANGE THE TEMPLATE.
>> OR MAYBE THE MATTER MIGHT BE OR THE QUESTION OF THE COMPANY IS, WHY DID THEY NOT FILE?
>> NO, I WANT GET THEM HERE. I'M GOING TO ASK THE QUESTION.
BUT I THINK THE POINT IS THAT WHEN THE BOARD IS REVIEWING THIS SHEET AND WE'RE SEEING NOT RECEIVED, WE'RE THINKING THEY'VE JUST IGNORED US.
THAT'S ONE ISSUE. IF THEY IGNORED US FOR A PERIOD OF TIME BUT THEN DID FILE,
[01:20:02]
THAT'S ANOTHER BRICK IN THE WALL, IF YOU WILL.IT'S MORE INFORMATION THAT MIGHT BE HELPFUL IF WE CAN FIGURE OUT SOME WAY TO PUT THAT IN THE FORM.
>> WHAT CREATES THE NON COMPLIANCE IS THAT THEY DIDN'T FILE.
THAT'S WHAT YOU'RE SEEING THERE IS THAT THAT'S WHAT CREATED THE NON COMPLIANCES? WE DID NOT RECEIVE A COMPLIANCE REPORT, THEN THE SYSTEM NOTIFIES THEM THAT THEY WERE LATE AND THEN NOTIFIES THE LOCALS THAT THEY WERE NON COMPLIANT.
THAT'S WHAT CREATED THE NON COMPLIANCE.
IN BETWEEN THEM BEING NON COMPLIANT, AND TODAY, THEY BECAME THEY FILED THE REPORT.
>> DO WE HAVE ANYBODY HERE FROM GILCO?
>> WE HAVE TO BASICALLY TELL THE BOARD WHY THEY'RE NON COMPLIANT AND WHY THEY'RE ON THIS SHEET?
>> YES, MA'AM. BUT MY QUESTION WAS THAT BUT IT STATES IN THE LAST COLUMN.
IT SAYS, COMPLIANCE RECEIVED DATE, AND IT'S NOT RECEIVED, WHICH TELLS US THEY'VE NOT RECEIVED ANYTHING FOR COMPLIANCE FOR THIS APPLICANT.
>> WE DID NOT THAT'S WHY WE NOTIFIED THE LOCALS AND TOLD THE LOCALS, HEY, THEY'RE NON COMPLIANT.
MAYBE THE LOCALS TOLD THEM, HEY, YOU SHOULD FILE THIS.
>> THAT'S CONTEXT THAT COME UP DURING THE MEETING, BUT WHAT I'M LOOKING FOR HERE IS HAS ANYTHING BEFORE DAY BEFORE THE MEETING OR WHENEVER THE PACKET IS PRINTED. I WANT TO BE FAIR.
IF THEY'VE IN FACT, SUBMITTED EVERYTHING, LIKE WE SEE IN MANY CASES TODAY, WE'VE EXCEEDED THE JOBS REQUIREMENT.
WE ARE SORRY WE MADE A FILING TWO DAYS LATE.
BUT WE HAVE EXCEEDED EVERYTHING.
>> WE COULD POTENTIALLY PUT IN.
BECAUSE THESE ARE PRODUCED A COUPLE OF WEEKS?
>> BY THAT TIME, IF WE'VE RECEIVED IT, WE COULD PUT A LITTLE NOTATION THAT IT'S SINCE BEEN RECEIVED, JUST LIKE WE DO ON OTHER THINGS, JUST A LITTLE ASTROS OR SOMETHING TO SAY THAT IT'S SINCE BEEN RECEIVED?
>> BUT THEY DO HAVE TO GO ON THE REPORT BECAUSE THEY WERE NON COMPLIANT, AND THAT WAS THE REASON THEY WERE NON COMPLIANT.
>> YES, MA'AM. I AGREE THAT THAT SHOULD BE ON THERE, BUT MAYBE TITLE A LITTLE DIFFERENTLY, LIKE REASON FOR THE COMPLIANCE.
>> AGAIN, DO WE HAVE ANYBODY HERE FROM GILCO?
>> ON THE TIMING OF THEY'RE NOTIFIED THAT THEY'RE NOT COMPLIANT BY LED.
BUT THEN THE LETTER THEN GOES OUT TO THE SCHOOL BOARD AND WHATNOT.
THEN THEY TAKE ACTION WHEN THEY GET CONTACTED DIRECTLY BY THEM, IS THAT CORRECT?
>> ALL EXHIBIT AS REQUIRE ANNUAL COMPLIANCE TO BE FILED BY APRIL 30 OF EVERY YEAR.
AFTER APRIL 30 PASSES AS A COURTESY, HUD AND I NOTIFY THE PEOPLE THAT DON'T FILE BY APRIL 30, HEY, WE'LL GIVE YOU TWO MONTHS.
I THINK WE'VE BEEN GIVING THEM TILL JUNE 29 TO FILE, AND WE'LL CONSIDER IT LATE, BUT WE WILL STILL REVIEW IT.
IF YOU DON'T FILE BY 629, WE'RE NOTIFYING THE LOCALS THAT YOU DID NOT FILE.
WE NOTIFIED THE LOCALS THAT THESE COMPANIES DID NOT FILE THEIR REQUIRED ANNUAL COMPLIANCE AND THAT'S WHY THEY ARE OUT OF COMPLIANCE.
>> GOT YOU. I UNDERSTAND THAT.
WHAT I'M GETTING AT, IS IT FAIR TO SAY THAT THEY'RE NOT BEING RESPONSIVE TO LED, BUT THEY WERE RESPONSIVE TO THE LOCALS.
MAYBE THEY COULD'VE JUST RESPONDED.
>> I COULDN'T SPEAK FOR THE COMPANY.
>> THAT'S WHAT IT FEELS LIKE, MR. MILLER.
WE JUST DON'T KNOW BECAUSE THERE'S NOBODY HERE TO TELL US.
WHAT'S THE PLEASURE OF THE BOARD TODAY, WE HAVE ESSENTIALLY A LATE FILING IS WHAT IT COMES DOWN TO.
IF THEY ARE COMPLIANT WITH JOBS AND PAY ROLL, ONCE THEY FILE THEIR COMPLIANCE REPORT.
GUYS, I'M GOING TO TELL YOU, FOR THOSE OF YOU WHO ARE COMPANIES IN THE AUDIENCE OR THOSE THAT ARE REPRESENTING COMPANIES IN THE AUDIENCE, I THINK YOU WILL PERCEIVE THAT OBVIOUSLY THIS GOVERNOR AND IN TURN THIS BOARD ARE GOING TO BE RELATIVELY UNDERSTANDING OF INDUSTRY ISSUES.
I'M ONLY ONE BOARD MEMBER, BUT I WILL TELL YOU IN INDUSTRY WE STILL HAVE A SET OF RULES.
WE STILL HAVE A SET OF REQUIREMENTS THAT THIS BOARD HAS APPROVED, AND WHEN COMPANIES IGNORE THOSE RULES, THERE'S ALWAYS REASONS AND THAT'S WHY WE BRING COMPANIES UP TO EXPLAIN.
[01:25:05]
BUT WHEN THEY IGNORE THE RULES OR FLAUNT THE RULES OR THAT TENDS TO GET ON THIS BOARD MEMBERS UNDER MY SKIN.I DON'T IF IT BOTHERS ANYBODY ELSE, BUT LIKE I WAS TELLING BOARD MEMBER EARLIER TODAY, I DON'T LIKE FILING MY TAXES, BUT I STILL DO IT BY APRIL 15 BECAUSE I KNOW THAT THERE'S CONSEQUENCES IF I DON'T.
MAKE ME LIKE IT ANY BETTER, BUT I STILL DO IT.
>> CAN I MENTION. OUR PRACTICE WAS THAT WE WERE NOT EVEN GOING TO REVIEW THESE.
AFTER THEY WERE DEEMED NON COMPLIANCE DUE TO NON FILING, BUT THE FIRST ONE WE BROUGHT TO THIS BOARD, BOARD MEMBERS WANTED TO KNOW IF THEY WERE IN COMPLIANCE WITH THE JOBS IN PAYROLL OR NOT, REGARDLESS OF THE NON FILING OR NOT.
THAT'S WHY WE'VE BEEN REVIEWING THEM.
BUT IT'S NON COMPLIANT DUE TO NON FILING.
BUT I'M CONFLICTED ON THIS ONE, BECAUSE THEY IGNORED LED, THEY'RE NOT HERE TODAY TO EXPLAIN, AND THAT FRANKLY BOTHERS ME.
I WOULD PREFER IF THEY CAME HERE AND EXPLAIN AND THERE WAS LEGITIMATE EXPLANATION ON WHY THEY DIDN'T FILE IT, THEN I'M HERE TO LISTEN.
BUT IF THEY IF THEY DON'T THINK ENOUGH OF THE PROGRAM TO COME AND DEFEND A COMPLIANCE ACTION, THAT'S PROBLEMATIC FOR ME.
>> I WOULD SAY THAT I WOULD I WOULD AGREE WITH THAT.
IT MAKES THEIR JOB EXTREMELY DIFFICULT WHEN THEY DON'T GET THE COMPLIANCE, BUT EVEN IN MY OFFICE, WHICH IS A SMALL OFFICE, NOT A CORPORATION, BUT MANY TIMES THERE ARE THINGS THAT GET SENT THROUGH THE MAIL THAT MAY GET PUT ON THE WRONG PERSON'S DESK, MAY GET PUT IN A PAPER SHREDDER.
IF WE'RE REWRITING THE RULES, MAYBE THAT WE WOULD CONSIDER SOME STANDARD PENALTY TO EVEN CONSIDER THAT.
THEN WE WOULDN'T HAVE TO JEOPARDIZE.
IF THEY'VE BEEN IN FACT, WE'RE IN COMPLIANCE THROUGH THAT PERIOD AND CAN PROVE IT, BUT JUST TO MAKE IT STREAMLINE THE PROCESS A LITTLE MORE.
>> THAT'S WHAT WE'RE HOPING TO DO.
>> WHEN YOU PAY PAYROLL TAXES, THERE'S A LATE FILING FEE IF YOU PAY LATE.
>> THAT WOULD REMOVE THAT FROM US AND MAKE IT LESS CONFLICTING FOR US.
THEY HAD THAT PENALTY FOR LATE FILING.
BUT WE DECIDE THEN BASED ON, DID THEY MEET THE REQUIREMENTS OF THE PROGRAM OR NOT WHAT OUR ACTION IS.
BUT A LATE FILING FEE TO ME WOULD NOT BE UNREASONABLE.
>> [OVERLAPPING] THE LATER RULES HAVE THAT 2018 RULES HAVE A ONE-YEAR PENALTY FOR LATE FILING.
>> I DON'T THINK WE CAN ASSESS FEES.
>> WE'LL CROSS THAT BRIDGE WHEN WE GET TO THIS IN THE RULE-MAKING COMMITTEE.
BUT I THINK THE POINT IS IF PEOPLE UNDERSTAND THE PENALTY FOR FAILURE, PERHAPS IT BECOMES MORE MEANINGFUL, SO WE'LL TAKE A LOOK AT THAT.
BUT AT ANY RATE, WHAT IS THE PLEASURE OF THE BOARD ON GUILD CO, LLC? WE HAVE A LATE FILING.
THEY'RE NOT HERE TO DEFEND. HOW DO YOU WANT TO HANDLE IT?
>> I MAKE A MOTION THAT WE TAKE NO ACTION, APPROVE, AND TAKE NO ACTION.
>> WE HAVE A MOTION TO APPROVE AND TAKE NO ACTION.
ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE.
ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE ALL IN FAVOR SAY AYE.
>> ANY OPPOSED? THAT WAS A REAL WEAK [LAUGHTER].
I'M GOING TO ASK FOR A VOTE AGAIN BECAUSE I HEARD ABOUT THREE VOICES.
>> ANY OPPOSED? THERE IS NO OPPOSITION.
THE MOTION CARRIES. GREAT. THANK YOU. NEXT.
>> NEXT, WE HAVE ONE CONTRACT, 2020 0058 FOR KITCHEN MAGIC LLC REN'S KITCHEN IN LAFAYETTE PARISH THAT IS NON-COMPLIANT FOR THE 2022 REPORTING PERIOD.
EXHIBIT EIGHT FOR THE CONTRACT REQUIRES THE COMPANY TO CREATE AND MAINTAIN 50 JOBS WITH 1,040,000 IN PAYROLL.
THE ACTUAL JOBS AND PAYROLL CREATED AND MAINTAINED WERE ZERO.
NO JOBS AND PAYROLL COULD BE CONSIDERED BECAUSE, ON THE CERTIFICATE OF COMPLIANCE FORM, THE COMPANY CONFIRMED NO BASIC HEALTH BENEFITS PLAN WAS OFFERED TO EMPLOYEES, WHICH IS A REQUIREMENT IN ORDER TO BE CONSIDERED A NEW JOB AS DEFINED IN THE EXHIBIT A AGREEMENT.
THE PARISH, THE SCHOOL BOARD, AND NOT THE SHERIFF RESPONDED WITH RECOMMENDATIONS.
>> THIS IS AN ISSUE OF, THEY MET THEIR JOBS AND PAYROLL NUMBERS, BUT THEY DID THE JOBS THAT THEY PROVIDED DID NOT HAVE THE BENEFITS THAT THE CONTRACT REQUIRES.
[01:30:02]
>> THEY STILL DIDN'T MEET THEIR JOBS AND PAYROLL.
[OVERLAPPING] THEY WERE SHORT, BUT REGARDLESS, NONE OF THE JOBS COULD COUNT BECAUSE THEY DIDN'T OFFER THE HEALTH BENEFITS PLAN.
>> OKAY. DO WE HAVE SOMEONE HERE FROM KITCHEN MAGIC? WOULD YOU STATE YOUR NAME, OR YOUR POSITION WITH THE COMPANY, PLEASE?
>> MORNING. MY NAME IS RUSSELL TWILLEY.
I'M GENERAL MANAGER AT KIBBERIA FOODS.
GREAT. KITCHEN MAGIC IS OUR LLC.
>> I'M JUST CURIOUS, WHAT DO YOU MANUFACTURE?
>> WE'RE A FOOD MANUFACTURING PLACE?
>> FOOD MANUFACTURER. OKAY. GOT IT.
>> WHEN WE INITIALLY DID THE 2020 APPLICATION, WE BUILT THE FACILITY IN LAFAYETTE LOUISIANA TO SUPPORT OUR SISTER FACILITY IN CONNECTICUT.
THEY HAVE REGIONAL DISTRIBUTION FOR WHOLE FOODS.
OBVIOUSLY, AS YOU ARE AWARE, IN 2020 AND 2021, STRUGGLING WITH THE PANDEMIC, WE MADE THE STRATEGIC BUSINESS DECISION TO CONTROL GROWTH, AND BY DOING THAT, WE DID NOT MEET OUR JOBS, AND OUR PAYROLL APPLICATION.
WE ALSO DID NOT OFFER HEALTH BENEFITS, AND FOR THOSE REASONS, THAT'S WHY WE DID NOT MEET 2022.
>> THE JOBS AND PAYROLL ISSUE DURING COVID, I UNDERSTAND FROM THE PERSPECTIVE THAT YOU HAVE DIFFICULTY FILLING JOBS OR WAS DEMAND DOWN, WHAT WAS GOING ON?
>> WE DECIDED TO LEARN DUE TO THE COMPLEX ENVIRONMENT LEARNING OF SUPPLY CHAINS AND CHANGES, WE DID NOT WANT TO TARNISH THE RELATIONSHIP WITH OUR FACILITY IN CONNECTICUT, BECAUSE OBVIOUSLY, IF WE DECIDED TO GO AFTER THAT DISTRIBUTION DOWN HERE, WHICH IS WHAT THE FACILITY WAS BUILT FOR.
IF WE HAD ANY MISSTEPS DOWN HERE, THAT WOULD AFFECT THEM IN CONNECTICUT.
WE DECIDED TO FOCUS ON LOCAL MARKETS.
WE ACTUALLY WENT AFTER RA'S FOOD.
WE STARTED THAT, WE HAVE FIVE PRODUCTS.
WE'VE GROWN THAT OVER THE LAST TWO YEARS UP TO 20 ACROSS SEVERAL OF THEIR DIFFERENT DIVISIONS AND ACROSS THEIR ENTIRE GROCERY STORE CHAIN NETWORK.
WE'VE GROWN, AND WE MADE THE STRATEGIC DECISION RATHER THAN GO AFTER THE LARGER MARKET.
WE WANT TO LEARN THE LOCAL MARKETS HERE, LEARN THE BUSINESS, LEARN SUPPLY CHAINS, AND THEN FROM THERE, GO AFTER THE CERTIFICATIONS, WE NEED TO GO GET THE WHOLE FOODS. OKAY. DISTRIBUTION.
>> AGAIN, CONTEXT. HOW MANY EMPLOYEES DO YOU HAVE?
>> RIGHT NOW, WE HAVE 20 EMPLOYEES.
>> OKAY. WHEN YOU STARTED IN 2020, WAS IT A START-UP COMPANY ESSENTIALLY?
>> DOWN HERE, IT WAS, BUT WE HAVE ONE FACILITY IN DANBURY, CONNECTICUT.
>> OKAY. YOU MADE THE STRATEGIC DECISION TO LIMIT EMPLOYEE GROWTH AND THEREFORE PAYROLL.
>> THEN I TAKE IT MADE THE DECISION TO SAVE MONEY TO REDUCE THE HEALTH BENEFITS FOR YOUR EMPLOYEES, IS THAT CORRECT? DID YOU UNDERSTAND AT THE TIME THAT THAT JEOPARDIZED YOUR ITEP CONTRACT?
>> I'M NOT TRYING TO BE AS PEJORATIVE AS THIS IS GOING TO SOUND, BUT HOW DID YOU NOT KNOW THAT?
>> BECAUSE I WAS THE ONE WHO DID THE FILING AND I WAS NOT EMPLOYED WHEN THE ORIGINAL APPLICATION WAS SUBMITTED.
>> IT WAS A MISUNDERSTANDING ON ME.
>> OKAY. I'M PRESUMING NOW THAT THIS ISSUE HAS ARISEN THAT YOU NOW UNDERSTAND WHAT THE CONTRACT REQUIRES, IS THAT CORRECT?
>> THE PATH FORWARD IS WE MADE MOVES TO GET THIS THIRD-PARTY FOOD CERTIFICATION THAT WILL ALLOW US TO GET DISTRIBUTION FOR WHOLE FOODS, AND WITH THAT, THAT'S WHY THE PLANT WAS ORIGINALLY CREATED, AND THAT WOULD GET US TO OUR 50-EMPLOYEE GOAL AND OUR ACTUAL PAYROLL GOAL AS WELL.
WE'RE FINALIZING THOSE STEPS NOW.
WE'RE HOPING IN 2025 THAT WE'LL BE ABLE TO OPEN THAT DISTRIBUTION BEGINNING OF THE YEAR.
THAT'S GOING FROM TEXAS ALL THE WAY TO FLORIDA.
THAT'S ORIGINALLY WHY THE PLANT WAS BUILT DOWN HERE TO SUPPORT NATIONWIDE DISTRIBUTION.
>> AT WHAT POINT DO YOU INTEND TO REINTRODUCE THE HEALTH BENEFITS TO YOUR EMPLOYEES?
>> THEY HAVE BEEN? WHEN WERE THEY REINTRODUCED?
>> A PORTION OF THAT PREMIUM COMPANY PAID OR IS THAT ALL EMPLOYEE-PAID?
[01:35:01]
>> HOW DID THAT SAVE YOU MONEY IF IT WAS EMPLOYEE-PAID?
>> IT WAS JUST A PLAN. WE DIDN'T ACTUALLY HAVE ANY WE OFFERED IT.
THEY DIDN'T TAKE ANY OF THE BENEFITS.
>> WE OFFERED IT, BUT THEY DIDN'T TAKE ANY OF THE BENEFITS.
>> THE EMPLOYEES DID NOT TAKE ADVANTAGE OF THE BENEFITS, SO YOU DIDN'T SEND ANY REASON TO CONTINUE TO OFFER IT.
>> IS THE CONTRACT REQUIREMENT THAT ONE BE OFFERED OR THAT THE COMPANY PAY PART OF THE PREMIUM?
>> THAT'S A REALLY FAIR QUESTION.
>> JUST THAT IT'S OFFERED, AND THAT THE COMPANY CERTIFIES THAT IT WAS OFFERED TO EMPLOYEES, NOT THAT THE EMPLOYEE ACTUALLY TOOK IT [OVERLAPPING]
>> EVEN IF IT'S 100% EMPLOYEE FUNDED, THAT'S THE REQUIREMENT?
>> THE REQUIREMENT JUST STATES OFFERED IN THE EXHIBIT AGREEMENT.
>> YOU OFFERED IT DURING THE YEARS?
>> OKAY. LET'S DRILL DOWN INTO THAT JUST A LITTLE BIT.
THE NON-COMPLIANT YEAR IS 2022.
WHEN DID YOU CANCEL THE HEALTH BENEFITS?
>> THEY WEREN'T OFFERED IN 2022. [BACKGROUND]
>> I KNOW, BUT YOU OFFERED THEM IN 2020, RIGHT? WHEN YOU STARTED THE COMPANY, DID YOU OFFER THEM?
>> I DON'T BELIEVE THEY WERE EVER OFFERED.
>> YOU NEVER OFFERED THEM? OR YOU DON'T KNOW.
PEOPLE COULDN'T TAKE ADVANTAGE OF THEM IF YOU DIDN'T OFFER THEM, RIGHT?
>> COULD I ASK SOMETHING ABOUT CONNECTICUT? I WANT TO UNDERSTAND A LITTLE BETTER THE CONNECTION.
DO YOU STILL HAVE A BUSINESS IN CONNECTICUT?
>> DO THEY GET HEALTH INSURANCE FOR THE EMPLOYEES IN CONNECTICUT?
>> I'M NOT AWARE. I'M NOT SURE.
>> WE'RE TWO SEPARATE COMPANIES.
TWO DIFFERENT LLCS, BUT WE'RE UNDER THE SAME DVA, AND THE SAME BRAND NAME.
>> WHAT YEAR DID YOU COME ON BOARD WITH THE COMPANY?
>> IN 2022, SO YOU'VE BEEN HERE FOR TWO YEARS. OKAY.
>> OKAY. I'M SCRATCHING MY HEAD OVER THIS ONE BECAUSE ESSENTIALLY, AND AGAIN, CORRECT ME IF MY UNDERSTANDING IS INCORRECT OR INCOMPLETE.
IT SOUNDS LIKE YOU NEVER OFFERED THE HEALTH BENEFITS FROM THE INCEPTION, AND THAT TO ME IS REALLY PROBLEMATIC.
BECAUSE THAT'S JUST A BASIC REQUIREMENT OF EVERY COMPANY THAT SIGNS AN ITEP CONTRACT.
MEETING JOBS AND PAYROLL, I GET THAT, THAT'S ECONOMY, BUT THIS IS A HEALTH BENEFIT THAT IS NOT AN EMPLOYEE COST, IT'S AN EMPLOYEE BENEFIT.
I'M WRESTLING WITH THIS, WE HAVE SOMEONE WHO SIMPLY REFUSED TO OR I DON'T MEAN TO AGAIN, BE JUDGMENTAL, BUT YOU FAILED TO FOLLOW THE CONTRACT AND THAT'S SUCH A BASIC REQUIREMENT OF THE CONTRACT.
I DON'T KNOW HOW YOU ENTER A CONTRACT OF THAT MAGNITUDE WITHOUT UNDERSTANDING THE REQUIREMENTS OF THE CONTRACT.
>> MR. CHAIRMAN, HAVE YOU HAD A SITUATION BEFORE LIKE THIS?
>> [OVERLAPPING] I DON'T REMEMBER ONE.
THAT'S WHY I'M WRESTLING WITH IT.
THIS IS NEW TO ME BECAUSE I'VE BEEN DOING THIS FOR 16 YEARS NOW, BUT THE JOBS AND PAYROLL WE'VE DEALT WITH THE LAST 8 YEARS AND I THINK WE FIGURED OUT HOW TO DEAL WITH THAT.
BUT WE HAVE SOMEONE WHO SIMPLY DIDN'T MEET THE BASIC REQUIREMENTS OF THE CONTRACT.
WE'RE ALL GOING TO FIGURE THIS OUT TOGETHER AS A BOARD.
THIS IS WHERE AGAIN, MY PERSONAL BIAS, PERHAPS.
BUT ONE OF THE REQUIREMENTS, I FEEL THIS WAY UNDER QUALITY JOBS, I FEEL THIS WAY UNDER THIS PORTION OF THE ITEP CONTRACT.
IT'S NOT JUST ABOUT A BENEFIT TO THE COMPANY, ONE OF THE THINGS WE'RE ASKING FROM THE COMPANY IS THAT YOU PROVIDE GOOD JOBS TO OUR EMPLOYEES.
WE HOPE YOU'RE EMPLOYING LOUISIANA PEOPLE, AND IF YOU'RE GOING TO PROVIDE THESE JOBS TO OUR LOUISIANA PEOPLE, WE HOPE YOU'RE GOING TO PROVIDE JOBS THAT ARE QUALITY JOBS THAT HAVE BENEFITS, THAT HAVE CERTAIN HOURS THAT MEET CERTAIN BASIC REQUIREMENTS.
OTHERWISE, WE'RE GOING TO BE A STATE OF CALL CENTERS, WHICH THERE'S NOTHING WRONG WITH THE CALL CENTERS, BUT THE 30-HOUR-WEEK JOBS WITH NO HEALTH BENEFITS,
[01:40:03]
AND SO SOMEBODY'S GOT TO PROVIDE HEALTH INSURANCE TO THOSE PEOPLE.THIS ONE'S A LITTLE TOUGHER FOR ME FROM THE PERSPECTIVE BECAUSE TO ME THE INSURANCE AND AS HUD POINTS OUT, IT'S NOT A MATTER THAT YOU HAVE TO WRITE IT FOR EVERYBODY, BUT YOU HAVE TO PROVIDE IT.
MAKING PROVISION FOR THE INSURANCE IS TO ME A CRITICAL PART OF THE CONTRACT.
>> I WOULD LIKE TO PROVIDE A LITTLE BIT OF CONTEXT IF THEY APPLIED IN 2020, I KNOW AT MY BUSINESS, THERE WERE SEVERAL THINGS DURING THAT PERIOD THAT WE WERE JUST LOOKING TO KEEP THE DOORS OPEN AND BE AROUND WHEN THE PANDEMIC WENT AWAY.
I'M NOT SUGGESTING THAT WHAT THEY DID OR THEIR INTENTIONS WERE GOOD, BUT IF WE TAKE THAT INTO CONTEXT, THAT THEY MAKE THIS APPLICATION, THEY BEGIN TO HIRE PEOPLE.
THEN COVID HITS, AND THEN THEY HAVE TO TRY TO FIGURE OUT HOW THEY CAN JUST WEATHER THE STORM LONG ENOUGH.
ALSO, ONE OTHER THING THAT I'D LIKE TO MENTION IS THAT IN 2022, THEY DID BEGIN TO OFFER THE BENEFITS.
>> IT WAS 2023. OKAY, SO SOMETIMES PERIOD, THEY DID OFFER THE BENEFITS.
>> BUT THEY'RE NOT UP FOR COMPLIANCE FOR 2023.
FOR THIS IS ON THIS IS 2021 AND 22.
THEY HAD THREE YEARS, AND I GET MR. REMEDIES, I AGREE WITH YOU ON THE COVID STUFF, I GET THE IMPACT ON JOBS AND PAYROLL, THAT MAKES SENSE TO ME.
BUT NOT OFFERING A BASIC BENEFIT THAT HAS NO COST TO THE COMPANY.
>> WAS A KNOWN ISSUE AT THE BEGINNING OF THE [OVERLAPPING].
>> I FORGET YOUR LAST NAME AGAIN.
MR. TWILLEY WAS NOT THERE IN 2020, IS THAT CORRECT?
>> HE TOOK OVER AN ORGANIZATION THAT APPARENTLY NEVER OFFERED THE BENEFIT, AND THE PEOPLE WHO WERE THERE ARE NOT HERE TODAY.
WE DON'T KNOW WHY THEY CHOSE NOT TO OFFER THE BENEFIT OR WHY THEY APPARENTLY BOTHERED NOT TO READ THE CONTRACT.
>> I PERSONALLY STILL HAVE CONFUSION AROUND THE OWNERSHIP OF A CONNECTICUT COMPANY IN LOUISIANA COMPANY.
ARE THEY PARTNERS? ARE THEY SISTERS? ARE THEY [OVERLAPPING]?
>> THEY HAVE NO OWNERSHIP IN YOUR COMPANY OR?
>> THIS IS A LOUISIANA COMPANY.
[OVERLAPPING] LOUISIANA OWNED.
>> YOUR RELATIONSHIP WITH THE CONNECTICUT COMPANY IS [OVERLAPPING].
>> IS JUST FAMILY. FAMILY-BASED. IT'S A FAMILY COMPANY.
>> PAYROLL IS THERE FOR THEM AND HERE FOR YOU?
>> IT HAS NO BEARING ON WHAT THE CONNECTICUT COMPANY DOES OR DOESN'T DO.
>> IT WAS JUST A DECISION TO PROTECT THE BRAND.
INSTEAD OF GOING AFTER THE ENTIRE REGIONAL DISTRIBUTION FROM TEXAS TO OKLAHOMA, WE DECIDED TO CONTROL GROWTH, LEARN THE MANUFACTURING PROCESS IN LOUISIANA, AND GROW THE BUSINESS ORGANICALLY USING LOUISIANA'S LOCAL CUSTOMERS.
THAT'S WHY WE CHOSE RA'S AS OUR FIRST CUSTOMER.
>> WITH THAT BEING SAID, TO GROW, I THINK YOU SAID IT EARLIER, BUT THERE'S BEEN A LOT OF DISCUSSION, SO IT MIGHT HAVE BEEN FORGOTTEN.
CAN YOU TELL US WHAT THE CONDITIONS, I GUESS OF YOUR COMPANY ARE TODAY, THE GROWTH RATE, STABILITY NUMBER OF EMPLOYEES PAYROLL, THINGS LIKE THAT, AND EXPECTATIONS GOING FORWARD?
>> YES. IN 2022, WE HAD 8 EMPLOYEES AT ABOUT 280,000 IN PAYROLL.
IN 23, WE'VE GROWN THAT TO 17 WITH ABOUT 350, AND NOW IN 2024, WE'RE UP TO 20 EMPLOYEES WITH HOPEFULLY CONTINUED GROWTH UP TO 50 EMPLOYEES IN 2025.
BUT THAT'S ALL CONTINGENT ON THIS CERTIFICATION THAT WE NEED TO GET TO ALLOW DISTRIBUTION FOR WHOLE FOODS, WHICH IS WHY THE FACILITY WAS BUILT DOWN HERE.
THAT'S THE REASONING BEHIND SUCH SMALL NUMBERS AND THE SMALL GROWTH.
>> OKAY. WHAT IS THE PLEASURE OF THE BOARD?
>> WE STILL HAVE A QUORUM, DON'T WE?
>> I'LL MAKE A MOTION TO REDUCE THE TERM BY ONE YEAR.
>> WE HAVE A MOTION FROM MR. AMOSS TO APPROVE, BUT REDUCE THE TERM BY ONE YEAR.
>> WE HAVE A SECOND FROM MR. MOSS.
WHATEVER THE DECISION OF THE BOARD, PLEASE UNDERSTAND THAT YOU WILL BE REQUIRED TO HAVE HEALTH INSURANCE FROM NOW ON, OKAY?
>> IT'S NOT BEEN MADE ABUNDANTLY CLEAR, BECAUSE YOUR FUTURE COMPLIANCE REPORTS WILL STILL REQUIRE THAT REPORTING.
[01:45:06]
>> MY THOUGHT PROCESS IS IT'S GREAT THAT THE COMPANY IS GROWING NOW, BUT I AGREE WITH YOU, MR. CHAIRMAN, THAT NOT OFFERING THE HEALTH INSURANCE BENEFITS FROM THE BEGINNING IS A REAL ISSUE AND GOES TO THE CORE OF THIS PROGRAM FOR LOUISIANA.
>> THANK YOU, MR. AMOSS. WE HAVE A MOTION AND SECOND.
ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE, ALL IN FAVOR SAY AYE?
>> ANY OPPOSITION? THERE IS NONE. THE MOTION CARRIES.
>> THANK YOU, MR. [INAUDIBLE].
>> NEXT, WE HAVE ONE CONTRACT, 20190204 FOR TOMAKK GLASS PARTNERS LLC IN CADDO PARISH, THAT IS NON-COMPLIANT FOR THE 2022 REPORTING PERIOD.
THE EXHIBIT A FOR THE CONTRACT REQUIRES THE COMPANY CREATE AND MAINTAIN 50 JOBS WITH $2,100,000 IN PAYROLL.
THE ACTUAL JOBS AND PAYROLL CREATED AND MAINTAINED WAS 13 JOBS WITH $721,750 IN PAYROLL.
THE FILING WAS ALSO RECEIVED LATE.
IT WAS DUE APRIL 30, 2023, BUT NOT RECEIVED UNTIL JUNE 29, 2023 UPON NOTICE OF THE MISSED DEADLINE BY LED.
THE PARISH, THE SHERIFF, AND THE CITY DID NOT RESPOND WITH RECOMMENDATIONS.
THE SCHOOL BOARD SUBMITTED A RECOMMENDATION STATING TO NOT PENALIZE AND HAVE THE EXEMPTION REMAIN IN PLACE.
>> DO WE HAVE SOMEONE HERE FROM TOMAKK GLASS PARTNERS? PLEASE STATE YOUR NAME AND YOUR POSITION WITH THE COMPANY, PLEASE.
>> MY NAME IS CLAY HARGGET. I'M THE SALES MANAGER IN PRODUCT DEVELOPMENT AT GLAZ-TECH INDUSTRIES IN SHREVEPORT.
FORMALLY, THE COMPANY WAS TOMAKK GLASS PARTNERS WHEN THE APPLICATION WAS INITIALLY FILED AND THEN APPROVED.
BUT WE RECENTLY GOT ACQUIRED BY GLAZ-TECH INDUSTRIES WHO ALSO HAS A LOCATION IN BATON ROUGE.
THEY'RE A LARGER COMPETITOR, AND WE TRANSFERRED OUR ELIGIBILITY IN THE PROGRAM TO GLAZ-TECH.
>> THANK YOU FOR THAT EXPLANATION.
YOU MAKE PLATE GLASS, AUTO GLASS, WHATEVER?
>> THANKS FOR ASKING. WE'RE A GLASS FABRICATOR AND OUR MODEL IS BUSINESS TO BUSINESS.
WE MAKE TEMPERED SAFETY GLASS, INSULATED GLASS UNITS, AND HEAVY FRAMELESS SHOWER ENCLOSURES.
OUR LOCATION IN SHREVEPORT IS THE FIRST LOCATION THAT TEMPER SAFETY GLASS IN THE HISTORY OF NORTHWEST LOUISIANA.
THEY COMPETE AGAINST SOME REALLY LARGE COMPANIES OUT OF DALLAS.
TO PUT IT IN PERSPECTIVE, THERE'S 14 OR 15 TEMPERING OVENS IN DALLAS, AND THERE'S ONE IN NORTHWEST LOUISIANA, AND THEY KNOW WE'RE THERE. THAT'S FOR SURE.
>> GOT IT. TELL ME WHAT'S HAPPENED TO YOU IN 2022?
>> WELL, YOU SEE THERE WE HAD ABOUT 13 JOBS OF THE INITIAL 50.
WHEN WE FILED EXHIBIT A, THAT WAS PRE-COVID.
WE STARTED THE COMPANY AS COVID WAS HITTING CHINA.
[NOISE] THEN AS YOU MENTIONED EARLIER, MR. JONES, MANUFACTURING IS ALL ABOUT EFFICIENCY AND AGILITY AND STAYING ALIVE AND MANUFACTURING.
THAT'S WHAT WE DID TO WEATHER THE STORM, AND WE WERE RE-EVALUATING THE TOTAL JOBS THAT WE THOUGHT WE COULD BE SUCCESSFUL WITH AND KEEP THE DOORS OPEN.
WE THINK THE NUMBER IS GOING TO BE AROUND 30-35.
THE LAST TWO YEARS IN A ROW WE'VE HAD 30-35 ON ANY GIVEN DAY ON STAFF, AND WE FILED NORTH OF 35 IN TERMS OF W-2S EACH YEAR.
THE REASON WE HAD 13 RECORDED FOR 2023 IS TURNOVER.
THERE'S ANOTHER BOARD MEMBER THAT ASKED ABOUT STABILITY OF THE LABOR POOL, AND WE BATTLED THAT FOR QUITE A BIT 2022 AND 2023.
SEEING A LOT MORE STABILITY IN THE LABOR POOL IN CADDO PARISH RIGHT NOW.
MANY OF OUR EMPLOYEES WENT TO SCHOOL IN THE PARISH AND THEY LIVE REALLY RIGHT AROUND THE CORNER.
WE'RE POSITIONED IN A NEIGHBORHOOD CALLED SOUTHERN HILLS IN SHREVEPORT.
I'LL SAY THAT WHEN WE APPROACH THE TAXING ENTITIES FOR THE 2023 NON-COMPLIANCE, THERE'S MANY POSITIVE THINGS ABOUT THE ITEP PROGRAM, BUT ONE IS IT BRINGS THE NARRATIVE OF INDUSTRY TO THE LOCAL TAXING BODIES, AND THOSE BOARDS SOMETIMES ARE COMPOSED OF LAY PEOPLE AND OR PROFESSIONALS.
IT REALLY HELPS EDUCATE THE COMMUNITY TO SPUR THE LOCAL ECONOMY.
EVEN THOUGH WE'RE GETTING A TAX INCENTIVE, IT BRINGS THE COMMUNITY TOGETHER AND HELPS TO FORTIFY THE LOCAL ECONOMY,
[01:50:02]
BUT CLEARLY THIS BOARD AND THE LEGISLATORS SAW THAT IN THIS PROGRAM, BUT I'M LIVING PROOF THAT IT'S THERE.WE HAD GREAT CONVERSATION WITH THE SCHOOL BOARD.
THEY WERE VERY SUPPORTIVE OF OUR STORY AND WHERE WE ARE TODAY.
I'M PRETTY CONFIDENT IN TERMS OF WHERE WE ARE TODAY.
WE'RE GOING TO REVISE EXHIBIT A AND RESUBMIT FOR ABOUT 35 JOBS.
THAT WILL PUT US SOMEWHERE AROUND $1.5 MILLION OR SO IN TOTAL PAYROLL.
THE FACT THAT WE WERE ACQUIRED BY A COMPANY WHO HAS ANOTHER LOCATION IN BATON ROUGE, THAT MAKES TWO LOCATIONS FROM ONE COMPANY IN LOUISIANA.
THESE PRODUCTS SERVICE COMPANIES LIKE GATOR MILLWORKS, AND WE'VE SOLD THEM SOME GLASS OVER TIME AND A GREAT COMPANY AND GREAT PARTNER TO DO BUSINESS WITH.
JUST SO YOU GUYS KNOW, THE MILLWORK THAT COMES OUT OF BATON ROUGE, NEW ORLEANS, IT'S SHIPPED NATIONWIDE.
IT'S REALLY INTERESTING TYPE OF WORK, AND IT'S VERY HIGH-END TYPE OF PRODUCTS.
IT TAKES A COMPANY THAT CAN PAY ATTENTION TO DETAIL AND HIRE THE RIGHT PEOPLE, AND EDUCATE THEM AND INSTILL THE RIGHT VALUES IN THEM TO TAKE OWNERSHIP IN THEIR WORK, AND LOOK FOR QUALITY CONTROL AND BE RESPONSIBLE, MAKE GOOD DECISIONS DAY IN AND DAY OUT.
THEY CAN MAKE PRODUCTS TO STAND UP FOR PROJECTS LIKE GATOR MILLWORKS PUTS IN PLAY.
IT'S DEFINITELY BEEN A GRIND, [NOISE] ESPECIALLY COMBATING THE INSTABILITY OF THE LABOR POOL.
BUT LIKE I SAID, AS OF THIS YEAR, WE'RE SEEING A LOT MORE STABILITY IN THE LABOR POOL.
WE'RE PRETTY CONFIDENT OUR REVISED TOTAL JOBS WILL BE 35 SO THAT WE CAN BE COMPLIANT GOING FORWARD WITH THIS POST-COVID MODEL.
THAT'S PRETTY MUCH THE STORY TODAY.
>> VERY GOOD. THANK YOU. [NOISE] I'M GLAD TO HEAR YOU'RE LOOKING AT AMENDING YOUR CONTRACT BECAUSE I THINK BASED ON WHAT YOU'RE TELLING ME THAT'S THE RIGHT MOVE, AND THAT HAPPENS.
I THINK THAT'S AN APPROPRIATE MOVE. YOU'VE HEARD THE STORY.
IS THERE ANY QUESTIONS FROM THE BOARD TO MR. HARGGET? DO WE HAVE A MOTION?
>> A MOTION TO APPROVE WITHOUT PENALTY, MR. [INAUDIBLE].
>> A SECOND FROM MR. REMEDIES. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE. ANY COMMENTS FROM THE PUBLIC? HEARING NONE. ALL IN FAVOR SAY AYE?
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
>> THANK YOU. APPRECIATE YOUR WORK.
>> LAST, WE HAVE ONE CONTRACT, 20190281 FOR TRI-STATE INDUSTRIES OF LOUISIANA LLC IN RAPIDES PARISH THAT IS NON-COMPLIANT FOR THE 2022 AND 2023 REPORTING PERIODS.
THE EXHIBIT A FOR THE CONTRACT REQUIRES THE COMPANY TO RETAIN 23 JOBS WITH $751,164 IN PAYROLL.
THE 2022 REPORTING PERIOD, THE ACTUAL JOBS CREATED AND PAYROLL MAINTAINED WAS 18 JOBS WITH $783,727 IN PAYROLL.
THE FILING WAS ALSO RECEIVED LATE.
IT WAS DUE APRIL 30TH OF 2023, BUT NOT RECEIVED UNTIL JUNE 29, 2023 UPON NOTIFICATION BY LED OF THE MISSED DEADLINE.
FOR THE 2023 REPORTING PERIOD, THE COMPANY DID NOT FILE THEIR ANNUAL COMPLIANCE BY THE APRIL 30, 2024 DEADLINE.
>> THANK YOU. DO WE HAVE ANYBODY HERE FROM TRI-STATE INDUSTRIES?
>> MORNING Y'ALL. [OVERLAPPING] ROBERT SMITH, TRI-STATE INDUSTRIES GENERAL MANAGER.
>> MR. SMITH. GREAT. TELL US WHAT WAS GOING ON HERE, MR. SMITH, IN '22 AND 2023.
>> '22-23, THE OWNER OF THE COMPANY WHERE ALL THESE EMAILS WERE DIRECTED TO HAS RETIRED SINCE THEN.
WE WERE UNAWARE THAT THEY WERE GOING DIRECTLY TO HIM AND HAS SINCE RECTIFIED THIS ISSUE.
NOW THE PERSON THAT WAS OVER THIS PROJECT WAS UNAWARE AND HAD BEEN WORKING WITH LED THROUGHOUT THE 2023 SEASON AND HAS BEEN GOING BACK AND FORTH ON WHETHER OR NOT THEY WERE CHECKING THE RIGHT BOX AND PAYING THE PENALTIES AND TRYING TO MOVE FORWARD AND MAKING SURE THAT WE WERE DOING EVERYTHING ON TIME FOR THIS.
>> THAT EXPLAINS THE PROBABLY THE LATE FILING.
GOING BACK TO OUR EARLIER POINT HEARD ON THIS ONE,
[01:55:03]
I SEE ON 2023 THEY HAD NOT RECEIVED IT BY THE TIME.>> THEY HAVE SUBMITTED IT SINCE THEN.
>> THEY HAVE SUBMITTED IT NOW.
DO WE STILL HAVE A JOBS AND PAYROLL COMPLIANCE ISSUE?
THEY HAD 23 JOBS WITH $1,034,144 IN PAYROLL, SO THEY WERE COMPLIANT.
>> ESSENTIALLY WE HAVE A JOBS PROBLEM, NOT A PAYROLL PROBLEM IN 2022, IS THAT CORRECT?
>> THEN IN 2023, LATE FILING, BUT THEY HAVE MET JOBS AND PAYROLL? IS THAT ACCURATE?
>> GOOD. THAT HELPS ME GET IT CLEAR IN MY MIND.
>> WHAT'S YOUR CURRENT JOB COUNT AND PAYROLL?
>> YES, SIR. WE'RE AT 33 JOBS THIS YEAR AND CURRENT PAYROLL SHOULD BE AROUND $1.5 MILLION.
WE'RE A STEEL MANUFACTURING COMPANY.
WE ARE DIRECT SUPPORT FOR TANK CAR INDUSTRY THAT MOVED OUT OF CHICAGO.
THROUGH THAT TIME THROUGH 2019-2022, UNKNOWN TO US, THEY CHANGED THEIR BUSINESS MODEL AND CLOSED ONE OF THEIR MANUFACTURING FACILITIES DOWN IN HOUSTON.
LUCKILY, THEY KEPT THE ONE IN ALEXANDRIA OPEN, WHICH ALLOWED US TO JUST FURTHER SUPPORT THEM.
THAT'S WHAT WE'VE BEEN DOING AND ATTEMPTING TO CONTINUE TO BUILD UP AND SUPPORT THEM IN THIS EVER CHANGING ENVIRONMENT OF MANUFACTURING.
SINCE THEN, LIKE THIS PAST YEAR, WE JUST PUT IN A $1.2 MILLION PIECE OF EQUIPMENT TO HELP FURTHER DRIVE DOWN OUR COST, DRIVE UP TECHNOLOGY IN OUR AREA AND GROW OUR COMMUNITY.
>> THANK YOU, MR. SMITH. DO WE HAVE ANY OTHER QUESTIONS FROM THE BOARD? ENTERTAIN A MOTION FROM THE BOARD.
>> APPROVE, TO TAKE NO ACTION.
>> SENATOR MIZELL MOVES TO APPROVE AND TAKE NO ACTION. SECOND FOR MR. REMEDIES. ANY QUESTIONS OR COMMENTS FROM THE BOARD? HEARING NONE, ANY COMMENTS FROM THE PUBLIC? THERE BEING NONE, ALL IN FAVOR, SAY AYE?
>> ANY OPPOSITION? THERE IS NONE, THE MOTION CARRIES.
THANK YOU FOR WHAT YOU'RE DOING FOR CENTRAL LOUISIANA.
>> THANK YOU FOR YOUR TIME GUYS.
>> LADIES AND GENTLEMEN, I'M GOING TO HAVE TO BUG OUT.
MR. MILLER IS GOING TO TAKE OVER TO TAKE ANY FINAL BUSINESS AND ANY REPORTS FROM LED.
I LOOK FORWARD TO SEEING YOU ALL AT THE NEXT MEETING.
>> NEXT THING. ANY OTHER BUSINESS.
DOES ANYBODY HAVE ANYTHING ELSE TO BRING BEFORE THE BOARD? THANK YOU VERY MUCH. MISS VILLA,
[9. Secretary Remarks – Secretary Susan Bourgeois]
WOULD YOU LIKE TO GIVE THE LED REPORT?ANNE VILLA, DEPUTY SECRETARY FOR LED REPRESENTING SECRETARY BOURGEOIS WHO WAS UNABLE TO ATTEND.
A LOT GOES INTO THESE BOARD MEETINGS.
MEMBERS OF BUSINESS AND INDUSTRY THAT COME AND REPRESENT WHAT'S GOING ON, THE STATUS OF YOUR BUSINESSES.
THANK YOU ALL FOR TAKING THE TIME OUT OF YOUR BUSY DAY TO COME AND PRESENT TO THE BOARD.
AS YOU CAN SEE FROM THE DISCUSSIONS THAT WE HAD TODAY, IT'S VERY HELPFUL FOR US TO HAVE A TRUE UNDERSTANDING OF WHAT'S GOING ON IN YOUR BUSINESS AND WHAT YOU'VE BEEN FACED WITH.
ESPECIALLY THANKS TO THE PROGRAM ADMINISTRATORS AND OUR LEGAL TEAM AND FOR ALL YOU BOARD MEMBERS ATTENDING.
A LOT GOES INTO PREPARING THESE MEETINGS, AND I'M MOST THANKFUL FOR THE TEAM THAT WE HAVE AT LED.
JUST A COUPLE OF THINGS TO HIGHLIGHT.
THE NEXT RULES COMMITTEE MEETING WILL BE ON THURSDAY, NOVEMBER 14, STARTING AT 1:30 IN THIS ROOM.
JUST PLEASE MARK YOUR CALENDAR FOR THAT.
I THINK WE'VE MADE A LOT OF PROGRESS DURING THE LAST SEVERAL MONTHS ON THE RULES, AND THERE'S GOING TO BE SOME PRESENTATIONS THAT ARE GOING TO BE HEARD.
PLEASE MARK YOUR CALENDARS FOR THURSDAY, NOVEMBER 14, STARTING AT 1:30 IN THIS ROOM FOR THE RULES COMMITTEE.
ALSO ADDITIONALLY, OUR NEXT BOARD MEETING WAS RESCHEDULED TO THURSDAY, DECEMBER 12, STARTING AT 1:30 IN THIS ROOM.
AGAIN, THURSDAY, DECEMBER 12, INSTEAD OF WEDNESDAY, DECEMBER 4.
PLEASE MARK YOUR CALENDARS NOW FOR THOSE TWO UPCOMING MEETINGS.
MS. DEBRA WILL REACH OUT TO YOU TO MAKE SURE THAT YOU'RE ABLE TO ATTEND.
SINCE OUR AUGUST MEETING, GOVERNOR LANDRY ANNOUNCED THE LEDP ADVISORY BOARD MEMBERS, WHICH IS A PRIVATE SECTOR ADVISORY BOARD CHARGED WITH DEVELOPING A STRATEGIC PLAN AND ADVISING ON POLICIES, PROGRAMS AND INITIATIVES THAT PROMOTE ECONOMIC GROWTH IN THE STATE.
I CAN'T HELP, BUT I ALWAYS ACKNOWLEDGE SENATOR MIZELL WHEN SHE'S ANYWHERE AROUND ME.
THANKFUL FOR THE BILL THAT SHE PRESENTED, AND WE WERE SUCCESSFUL IN POSITIONING LOUISIANA TO WIN.
THIS ADVISORY BOARD IS ONE OF THE ITEMS THAT WAS IN THAT SENATE BILL.
[02:00:04]
WE HAD A CURRENT MEETING THAT TOOK PLACE, I THINK LAST MONTH, AND WE'RE MOVING FORTH WITH THAT STRATEGIC PLAN, AND WE'RE HOPEFUL TO HAVE OUR GUIDING LIGHT SOON FOR THE DEPARTMENT SO THAT WE WILL BEGIN TO EXECUTE ON THAT STRATEGIC PLAN.IN ADDITION, THERE'S BEEN SEVERAL PROJECT ANNOUNCEMENTS THAT HAVE OCCURRED IN THE STATE.
JUST TO NAME A COUPLE, THE MID SOUTH EXTRUSION, WHICH IS A FLEXIBLE FILM AND BAG MANUFACTURER, ANNOUNCED THAT IT WAS INVESTING $17 MILLION IN ITS FACILITY IN OUACHITA PARISH.
THEN ALSO THE COMPANY EXPECTS TO CREATE 21 NEW DIRECT JOBS WHILE RETAINING 189.
THEN ALSO RECENTLY, WE HAD WOODLAND BIOFUELS ANNOUNCED TO PLAN $1.35 BILLION INVESTMENT AND EXPECTS TO CREATE 110 DIRECT JOBS AT THE PORT OF SOUTH LOUISIANA TO ESTABLISH ONE OF THE WORLD'S LARGEST RENEWABLE BIOFUELS PRODUCTION FACILITIES.
THEN ADDITIONALLY, WE HAD OUR LANTERN AWARDS THAT WERE HELD ON THE EVE OF NATIONAL MANUFACTURING DAY, AND SECRETARY BOURGEOIS RECOGNIZED EIGHT MANUFACTURERS ACROSS OUR STATE FOR THOSE THAT DEMONSTRATED BUSINESS EXCELLENCE, INNOVATION, AND COMMUNITY SERVICE DURING THE 45TH ANNUAL LANTERN AWARDS RECEPTION AT THE CAPITOL COMPLEX THAT WE HAD ON THURSDAY, OCTOBER 3.
JUST WANTED TO AGAIN, THANK YOU ALL FOR COMING TODAY.
IF YOU HAVE ANY QUESTIONS OF ME, I'M HAPPY TO ANSWER AS I CAN. QUESTIONS?
>> ANY QUESTIONS OR COMMENTS TO MS. VILLA? THANK YOU VERY MUCH. ANYTHING ELSE? ONE LAST CHANCE, EVEN THOUGH WE'VE ALREADY DONE IT ONCE.
I'LL ENTERTAIN A MOTION TO ADJOURN. I'M SORRY?
>> MR. NASSER, AND MAYOR TOUPS.
WITH THAT BEING SAID, MEETING IS ADJOURNED.
>> THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.