Meetings
 
Agenda Item
Docket No. 10-822
 
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RE:
Appearance in connection with a request for an advisory opinion regarding employees of the New Orleans Aviation Board who are affected by the privatization of the operation of New Orleans Louis Armstrong International Airport, may accept employment with the private operator that may take over the day-to-day operations of the airport.
Facts:
The New Orleans Aviation Board is an agency of the city of New Orleans. The New Orleans' home rule charter provides that the NOAB shall consist of nine members who shall administer, operate, and maintain all municipal airports and aviation facilities, including Louis Armstrong International Airport. The NOAB staff of approximately 100 people perform the everyday operations and maintenance functions of Louis Armstrong. The staff is headed by an Aviation Director who is under contract employment with the NOAB. Reporting to the Director of Aviation are Deputy Directors who supervise various areas of Louis Armstrong. The NOAB also has a contract for professional services and a legal department staff for the NOAB.

The NOAB is considering privatizing the day-to-day operations and managerial control of the airport by a private operator pursuant to the pilot privatization program administered by the Federal Aviation Administration (FAA).The NOAB has filed a preliminary application with the FAA to participate in the pilot privatization program. Under the FAA's pilot privatization program, the City of New Orleans would enter into a long-term lease with a qualified operator, who would then be responsible for operating the airport. Pursuant to federal law, the privatization must be approved by the FAA, the NOAB, the City of New Orleans, and 65% of the airlines that service the airport. The privatization of the airport will cause the NOAB's previous operation of the airport facilities to cease to exist.

The NOAB is requesting an opinion as to whether former employees of the NOAB, namely the Aviation Director, the Deputy Directors, and the in-house general counsel, could accept employment with the private operator who is awarded the contract after the privatization of the airport is approved by the Federal Aviation Administration. As part of their job duties, the Aviation Director, the Deputy Directors, and the in-house legal counsel have participated in meetings with stakeholders and provide and evaluate information in order for the NOAB, the City of New Orleans, the FAA and the airlines which service the airport, to decide whether privatization is in its best interest. However the above refrenced employees will not participate in the decision to privatize and that they do not have the authority to enter into any binding contract to effect the privatization since by law that decision is relegated to the NOAB, the City of New Orleans, the FAA and the airlines that service the airport.



Law:
Section 1121B of the Code prohibits a former public servant for a period of two years following the termination of his public service from assisting another person for compensation in a transaction in which the former public servant participated at any time during his public service and involving his former agency and from rendering any service which such former public employee had rendered to the agency during the term of his public employment on a contractual basis, regardless of the parties to the contract, to, for, or on behalf of the agency with which he was formerly employed.

Section 1112B(4) prohibits a public servant from participating in a governmental transaction in which a person with whom they are negotiating for future employment has a substantial economic interest.

In BD 2001-621, 2004-365, 2004-759 and 2004-074, the Board concluded that based on the unique circumstances of the privatization of a former employee's duties, the Code did not prohibit the public servants, who did not participate in the agency's decision to privatize the services, to be employed by the private entity.

Recommendations:
Adopt the proposed advisory opinion.

Assigned Attorney: Alesia Ardoin
 
 
ATTACHMENTS:
Description:
2010-822: Draft Opinion
2010-822: Request
2004-759: Opinion