FOURTH CIRCUIT COURT OF APPEAL STATE OF LOUISIANA NO. 2019-CA-0774 c/w 2019-CA-0775 DEEP SOUTH CENTER FOR ENVIRONMENTAL JUSTICE, VAYLA NEW ORLEANS, JUSTICE AND BEYOND, 350 NEW ORLEANS, SIERRA CLUB, MR. THEODORE QUANT, AND MS. RENATE HEURICH Plaintiffs-Appellees V. THE COUNCIL OF THE CITY OF NEW ORLEANS, THE UTILITY, CABLE, TELECOMMUNICATIONS AND TECHNOLOGY COMMITTEE OF NEW ORLEANS CITY COUNCIL, JASON R. WILLIAMS, STACY HEAD, SUSAN G. GUIDRY, LATOYA CANTRELL, NADINE M. RAMSEY, JARED C. BROSSETT, AND JAMES A. GRAY, II Defendants-Appellants ON APPEAL FROM CIVIL DISTRICT COURT, PARISH OF ORLEANS, NO. 2018-03843 (“I-14”) HONORABLE PIPER D. GRIFFIN, PRESIDING APPELLANTS’ BRIEF IN 2019-CA-0774 Corwin M. St. Raymond #31330 Deputy City Attorney William R. H. Goforth # 33153 Assistant City Attorney Donesia D. Turner #23338 Sr. Chief Deputy City Attorney Sunni J. LeBeouf #28842 CITY ATTORNEY 1300 Perdido Street – Room 5E03 New Orleans, LA 70112 Telephone: (504) 658-9800 Facsimile: 504-658-9868 E-mail: cmstraymond@nola.gov wrgoforth@nola.gov donesia.turner@nola.gov sunni.lebeouf@nola.gov James M. Garner #19589 Debra J. Fischman #5578 Stuart D. Kottle #37194 SHER GARNER CAHILL RICHTER KLEIN & HILBERT, L.L.C. 909 Poydras Street, Suite 2800 New Orleans, LA 70112 Telephone: (504) 299-2100 Facsimile: (504) 299-2300 E-mail: jgarner@shergarner.com dfischman@shergarner.com skottle@shergarner.com Adam J. Swensek #30751 Executive Counsel NEW ORLEANS CITY COUNCIL 1300 Perdido Street, Room 1E6 New Orleans, Louisiana 70112 Telephone: (504) 658-1109 E-mail: adam.swensek@nola.gov ATTORNEYS FOR DEFENDANTS-APPELLANTS TABLE OF CONTENTS Table of Contents ...................................................................................................... ii Table of Authorities ................................................................................................. iii Table of Appendices ..................................................................................................v Jurisdictional Statement .............................................................................................1 Concise Statement of the Case...................................................................................2 Assignment of Alleged Errors ...................................................................................3 Issues Presented for Review ......................................................................................4 Statement of Facts ......................................................................................................5 A. Entergy New Orleans’ application to construct the New Orleans Power Station. .............................................................................................................6 B. The Utility, Cable, Telecommunications and Technology Committee meeting of February 21, 2018........................................................................................6 C. The full City Council meeting of March 8, 2018. ...........................................7 D. District Court proceedings. ..............................................................................8 Summary of the Argument.......................................................................................12 Argument..................................................................................................................14 I. The District Court erred as a matter of law in finding that the Open Meetings Law can be violated when a public body “did nothing wrong” – merely because a private party pays members of the audience to appear in support of an agenda item. ....................................................................................................................14 II. The March 8, 2018 City Council’s vote cured any purported violation, which is denied, of the Open Meetings Law. ....................................................................18 A. The February 21, 2018 committee meeting was not required for the City Council’s vote on the resolution at the March 8, 2018 meeting....................18 B. Even if the February 21, 2018 committee meeting was required, the District Court erred because the March 8, 2018 meeting was conducted in full compliance with the Open Meetings Law. ....................................................20 III.In the alternative, the District Court abused its discretion by imposing the drastic remedy of declaring the final City Council’s vote to adopt the resolution void over other available remedies. ............................................................................22 Conclusion ...............................................................................................................26 ii TABLE OF AUTHORITIES Louisiana Revised Statutes: La. R.S. 42:4.1 ......................................................................................................... 14 La. R.S. 42:11 ......................................................................................................... 14 La. R.S. 42:14 ...................................................................................................... 8, 14 La. R.S. 42:19 ......................................................................................................... 14 La. R.S. 42:24 .......................................................................................................... 19 La. R.S. 42:26 ....................................................................................................12, 21 La. R.S. 42:27 .......................................................................................................... 22 Louisiana Constitution: Louisiana Constitution Article 12, Section 3 .....................................................13, 14 Louisiana Constitution Annotation Art. 1, Section 7 ........................................15, 16 Louisiana Administrative Code: La. Admin. Code 55:V.1505(B) ................................................................................ 1 Municipal Code: New Orleans City Code, Chapter 158, Art. II, Div. 6, § 158 .................................. 16 Home Rule Charter § 3-130(6) ....................................................................13, 18, 19 Louisiana Code of Civil Procedure: La. Code of Civ. Proc. art. 1911 ................................................................................ 1 La. Code of Civ. Proc. art. 2083(A)........................................................................... 1 La. Code of Civ. Proc. art. 2123 ................................................................................ 1 La. Code of Civ. Proc. art. 2595 .............................................................................. 22 Cases: A. Copeland Enters., Inc. v. City of New Orleans, 372 So.2d 764 (La. App. 4 Cir. 1979) .................................................................................. 22 Alliance for Affordable Energy, et al. v. Council of the City of New Orleans, No. 2018-3471 (CDC Div. I-14) ............................................................... 5, 24 iii Brown v. Board of Trustees—Municipal Police Employees’ Retirement System, 2017-0295 (La. App. 1 Cir. 12/18/17), 234 So.3d 260 ................................. 20 Brown v. Monroe Municipal Fire & Civil Police Service Board, 52,537 (La. App. 2 Cir. 12/17/18), 262 So.3d 985 ........................................ 20 Causin, L.L.C. v. Pace Safety Consultants, LLC, 2018-0706 (La. App. 4 Cir. 1/30/19) ............................................................. 13 Courvelle v. La. Recreational and Used Motor Vehicle Comm’n, 2008-0952 at *5-6 (La. App. 1 Cir. 6/19/09), 21 So. 3d 340 ........................ 14 Daigre v. Terrebonne Ass’n for Retarded Citizens, 543 So.2d 1108 (La. Ap. 1 Cir. 1989) ........................................................... 21 Delta Dev. Co. v. Plaquemines Par. Comm’n Council, 451 So.2d 134 (La. App. 4 Cir. 1984) ...................................11, 14, 19, 21, 23 Gordon v. Council of City of New Orleans, 9 So.3d 63 (La. 2009) ..................12, 24 Greemon v. City of Bossier City, 2010-2828 (La. 7/1/11), 65 So.3d 1263 ................................................................................................ 14 Hardestry v. Waterworks Dist. No. 4 of Ward Four, 954 F.Supp. 2d 461 (W.D. La. 2013) ............................................................ 20 Kem Search, Inc. v. Sheffield, 434 So.2d 1067 (La. 1983) ...................................... 21 Red Stick Studio Dev. L.L.C. v. State ex rel, Dep’t of Econ. Dev., 2010-0193 (La. 1/19/11), 56 3d 181 .............................................................. 13 State ex Rel. Guste v. Council of the City of New Orleans, 309 So.2d 290 (La. 1975) ........................................................................12, 24 iv TABLE OF APPENDICES Appendix 1 Judge of District Court, dated July 2, 2019…………………….30 Appendix 2 June 14, 2019 Hearing Transcript………...…………………….33 v MAY IT PLEASE THE COURT: JURISDICTIONAL STATEMENT Jurisdiction over this matter is vested in this Court by the Louisiana Constitution, La. Const. art. V, § 10, and the Louisiana Code of Civil Procedure, La. C.C.P. art. 1911, La. C.C.P. art. 2083(A), and La. C.C.P. art. 2123. Pursuant to this Court’s jurisdiction, Defendants-Appellants,1 the Council of the City of New Orleans, the Utility, Cable, Telecommunications and Technology Committee of New Orleans City Council, Jason R. Williams, Stacy Head, Susan G. Guidry, Latoya Cantrell, Nadine M. Ramsey, Jared C. Brossett, and James A. Gray, II (the “City Council”), respectfully file their Appellants’ Brief and seek review and reversal of the District Court’s July 2, 2019 Judgment, which is a final and appealable judgment. On July 8, 2019, the City Council filed a Motion for Suspensive Appeal. R. 786–788. On July 11, 2019, the District Court signed an order granting the City Council’s Motion for Suspensive Appeal. R. 789. This appeal is timely. 1 The title of the case as it appears on the docket of the court. Based on the Amended Petition to Enforce the Louisiana Open Meetings Law, for Declaratory Judgment, Injunction, and Attorneys’ Fees and Costs, R. 137–184, Defendants-Appellants are the Council of the City of New Orleans, the Utility, Cable, Telecommunications and Technology Committee of the New Orleans City Council, Jason R. Williams, Helena Moreno, Joseph I. Giarrusso, Jay H. Banks, Kristin Gisleson Palmer, Jared C. Brossett, and Cyndi Nguyen. 1 CONCISE STATEMENT OF THE CASE This lawsuit arises from a legal challenge to the vote from the elected officials of the New Orleans City Council. Following an extensive, multi-year regulatory process, a 2018 City Council resolution authorized the construction of a power plant in New Orleans East. The District Court declared the City Council’s action void because the proponent of the plant hired citizens to bolster the appearance of public support at a committee meeting held weeks before the full City Council formally considered and approved the plan. Despite holding that the City Council “did nothing wrong” when it approved the power plant, R. 785, the District Court held that the Open Meetings Law was “undermined” by the appearance of paid actors. R. 786. The District Court’s ruling was premised on private conduct—conduct beyond the control of the City Council and wholly absent any state action. Based on this private conduct, the District Court voided the valid and legal vote of a public body. The District Court’s interpretation of the Open Meetings Law is unprecedented and, under the District Court’s interpretation, the presence of any paid citizen would negate an otherwise valid and legal vote taken at a lawful public meeting. The District Court’s ruling will have a grave impact on the City of New Orleans and similarly situated public bodies, which will be compelled to question the motives of audience members at every lawful public meeting. This Honorable Court should reverse the District Court’s ruling and reinstate the City Council’s valid vote authorizing the construction of a power plant in New Orleans East. 2 ASSIGNMENT OF ALLEGED ERRORS 1. The District Court legally erred by declaring the final City Council’s vote to adopt the resolution void because the public body cannot violate Open Meetings Law based on the actions of private citizens. 2. The District Court legally erred by declaring the final City Council’s vote to adopt the resolution void because the presence of paid citizens at a committee meeting that was not a necessary component to the subsequent meeting at which the City Council voted to adopt a resolution. 3. The District Court abused its discretion by imposing the drastic remedy of declaring the final City Council’s vote to adopt the resolution void, over other available remedies. 3 ISSUES PRESENTED FOR REVIEW 1. Whether a court can void the vote of an elected public body, in a meeting compliant with the Open Meetings Law, based on the actions of paid, private citizens. 2. Whether the presence of paid, private citizens at a prior committee meeting affects the validity of a vote by the City Council at a subsequent meeting conducted in full compliance with the Open Meetings Law. 3. Whether a District Court abuses its discretion by imposing the drastic remedy of voiding a final and valid City Council resolution, which serves the public interest by providing desperately needed power and energy infrastructure. 4 STATEMENT OF FACTS Entergy New Orleans (“ENO”) is the public utility that provides electric and natural gas service to the citizens of New Orleans. See R. Exhibit A, Resolution R18-65, at 1. After an extensive study by the City Council of ENO’s long-term resource needs, the City Council identified a great need for a new power source in New Orleans. See R. Exhibit A, Resolution R-18-65, at 6–9, 120. Based on the great need for a reliable and new source of electricity, the City Council concluded that there was a need to construct a new power plant, the New Orleans Power Station (“NOPS”). See R. Exhibit A, Resolution R-18-65, at p. 188. The City Council found that NOPS will address a “critical and urgent reliability need” and “the risk of cascading outages that will leave 49,000 ENO customers without power for extended periods of time, particularly in New Orleans East.” See R. Exhibit A, Resolution R18-65, at 71, 72. The City Council determined that NOPS “serves the pubic convenience and necessity and is in the public interest, and therefore prudent.” See R. Exhibit A, Resolution R-18-65, at 188. The City Council’s action was rationally related to the legitimate state purpose of providing power and infrastructure to its citizens. See Alliance for Affordable Energy, et al. v. Council of the City of New Orleans, No. 2018-3471 (CDC, Div. I-14) (a companion case in which the District Court found that the City Council’s determination to approve NOPS was reasonable). Prior to the study concluding the need for the new power plant, Entergy, Inc. (“Entergy”), the parent company of ENO, previously operated as a single, integrated unit with its six subsidiary companies, all of which would share costs, resources and profits. See R. Exhibit A, Resolution R-18-65, at 3. See id. After years of discussions and litigation among Entergy, its subsidiary companies, the City Council, and federal regulators, a settlement was reached between Entergy and the Federal Energy Regulatory Commission, filed on August 14, 2015 and approved by the City Council 5 on November 5, 2015. See id., at 3–4. The settlement dissolved the operational and cost-sharing structure of Entergy. See id., at 6. With ENO being the most affected by the termination of the operational and cost-sharing structure of Entergy, the settlement provided that ENO had the option to evaluate and consider building a new power plant in the City of New Orleans. See id. at 9. A. Entergy New Orleans’ application to construct the New Orleans Power Station. ENO filed its original application to construct NOPS in June 2016, followed by a supplemental and amending application in July 2017. See R. Exhibit A, Resolution R-18-65, at 10. The City Council established Council Docket No. UD16-02 to consider matters related to the approval of NOPS. See id., at 9. ENO held at least 21 public meetings regarding NOPS. See id., at 12. A five-day evidentiary hearing was held on December 15, and 18–21, 2017, at which parties were given the opportunity to cross-examine the witnesses who had provided written testimony. See id., at 14. The City Council received more than 2,700 pages of testimony and exhibits, as well as extensive post-hearing briefing from the parties. See id., at 15. Among those parties to Council Docket No. UD-16-02 were Deep South Center for Environmental Justice, 350 New Orleans, and the Sierra Club, which are three of the Plaintiffs in this case. See id. The Hearing Officer certified the record to the City Council on January 22, 2018. See id., at 14. B. The Utility, Cable, Telecommunications and Technology Committee meeting of February 21, 2018. Resolution R-18-65 was considered by the Utility, Cable, Telecommunications and Technology Committee (“UCTTC” or “committee meeting”), at its February 21, 2018 meeting. See R. Exhibit D; see R. Exhibit E. Resolution R-18-65 was the sole item on the UCTTC’s agenda. See R. Exhibit B, Affidavit of Keith D. Lampkin (Chief of Staff for Councilmember Jason Williams), at ¶ 5. Each party to the proceedings in Council Docket No. UD-16-02 was given 6 the opportunity to make closing arguments. See id., at ¶ 6. After two hours of public comment, the UCTTC voted 4-1 in favor of moving proposed Council Resolution No. R-18-65 to the full City Council for further deliberation. See id., at ¶¶ 16, 18. As would later be found, private citizens were paid to attend or speak at the February 21, 2018 UCTTC meeting in support of ENO and its application for approval to construct NOPS.2 See R. 595–656. There was no state action involved in arranging the presence of private, paid citizens at the committee meeting and, at that time, the City Council was unaware of their presence. C. The full City Council meeting of March 8, 2018. On March 8, 2018, the full City Council considered Resolution R-18-65. See R. Exhibit F; see R. Exhibit H. The meeting occurred at the Council Chamber, which has a maximum occupancy of 258 people. R. Exhibit C, Affidavit of Alvin Walton, at ¶ 20. New Orleans police officers monitored and controlled access to the Council Chamber, allowing the public to be seated on a first-come, first-served basis. See id., at ¶ 24. Three officers of the New Orleans Police Department were present at the meeting to maintain public order. See id., at ¶ 18. According the Alvin Walton, Executive Security for the New Orleans City Council and employed by the New Orleans Police Department: No member of the public was excluded from the March 8 meeting based upon their appearance, personal characteristics, position held, or whether they were present to support or oppose any agenda item. See id., at ¶ 29; see also R. Exhibit C-1, Affidavit of Herman Shushan (Reserve officer for the New Orleans Police Department), at ¶ 29. The meeting was also recorded and broadcast live through the City Council’s website for those who could not attend in person, and it remains available for viewing by any member of the 2 In Council Resolution R-19-78, adopted on February 21, 2019, the City Council approved a settlement with ENO after a “show cause” proceeding relating to allegations that people were paid to attend and/or speak at public meetings in connection with ENO’s application to construct NOPS. R. 670–684. 7 public to this day. See R. Exhibit G, Affidavit of Lora Johnson (Clerk of Council for the City Council), at ¶ 9. Comment cards were also submitted and accepted throughout the meeting. See id., at ¶ 13. The City Council worked through the comment cards, and a total of 94 people spoke during the public comment period. See id., at ¶ 14. After nearly five hours of public comment, compare R. Exhibit G, Johnson Aff., at ¶ 11 with id., at ¶ 15, the City Council voted to adopt Resolution R-18-65, in a 6-1 vote. Id. at ¶ 16. The City Council concluded that NOPS “serves the public convenience and necessity and is in the public interest, and therefore prudent.” R. Exhibit A, Resolution R-18-65, at 188 (emphasis added). D. District Court proceedings. Plaintiffs’ original Petition and Amended Petition to Enforce the Louisiana Open Meetings Law, for Declaratory Judgment, Injunction, Attorneys’ Fees and Costs, and Memorandum in Support (the “petition”) and sought a declaration that the City Council and its members, and the UCTTC and its members, conducted the February 21, 2018 UCTTC meeting and the March 8, 2018 City Council meeting in violation of the Louisiana Constitution and the Louisiana Open Meetings Law. R. 1–117; R. 137–184. Based on La. R.S. 42:14(A) and La. R.S. 42:14(D), R. 139–140, Plaintiffs alleged that persons were denied the right to make comments at the public meetings and requested that the court declare the City Council’s action approving ENO’s application void. R. 162–163. The District Court held a hearing on Plaintiffs’ petition on July 19, 2018. See R. 2019-CA-0775, Vol. 5 (Transcript of July 19, 2018 Hearing). In considering Plaintiffs’ claim that persons could not enter the meeting room, the District Court indicated that such a claim was an extreme interpretation of the Open Meetings Law, stating: 8 I do not believe that there was a necessity for everyone that showed up to get into the room, that is not the law. To say that is the law would mandate that we build a much larger City Hall with a much larger Council Chambers that accommodates any number that could be possible reached, and that is an unreasonable expectation, period. R. 2019-CA-0775, Vol. 5, at 49:8–21. The District Court further noted that the affidavits submitted by Plaintiffs were not based on personal knowledge. See id., at 12:22–26; see also id., at 70:16–24. Nonetheless, the District Court instructed the parties to submit supplemental memorandum regarding the competency of Plaintiffs’ evidence and set a special hearing to announce its ruling. See id., at 65:21– 30. Prior to the District Court announcing its ruling, Plaintiffs sought to delay a ruling and moved for a continuance. R. 346–347. The City Council opposed a continuance. R. 343–345. The District Court heard Plaintiffs’ motion for a continuance on July 24, 2018. See R. 2019-CA-0774, Supplemental Vol. 1 (Transcript of July 24, 2018 Hearing). Although Plaintiffs claimed in their motion that a continuance would help lead to a resolution between the parties, at the hearing it became clear that Plaintiffs’ request for a delay was to obtain the report from the City Council’s pending investigation into the allegations that citizens were paid to attend or speak at meetings in support of ENO’s application for approval to construct NOPS. Id. at 17:12–29. The City Council objected and argued that any investigation of the paid citizens is not material to whether the Open Meeting Law is violated. Id. The District Court acknowledged that the issue of paid, private citizens is a “red herring,” id., at 14:2–3, and was “not so sure that it has any . . . bearing on this.” Id. at 14:3–4, 11. The District Court found, nonetheless, a potential for that issue to affect its decision and granted a continuance on August 1, 2018. R. 349–351. Due to the continuance of the investigation, Plaintiffs later moved for two more 9 continuances, see R. 352–354, see R. 358–363, which the District Court granted on September 28, 2018, see R. 355, and on November 9, 2018. See R. 363. On June 14, 2019, nearly a year after the hearings in the summer of 2018, the District Court announced its ruling and reasons for granting judgment against the City Council. R. 2019-C-0774, Supplemental Vol. 2 (Transcript of June 14, 2019 Hearing). While expressly affirming the propriety of the action of the UCTTC and the City Council in conducting both meetings, the District Court concluded that Entergy’s actions “undermined the Public Meetings Laws.” Id. at 5:25–26. In its statement of reasons, the District Court stated:  “I do applaud the City Councilmembers who were there who did their due diligence,” id, at 4:5–7 (emphasis added);  “I don’t see that they did anything wrong,” id., at 4:26–27 (emphasis added); and  “[T]hat does not mean that, again, that the Council did anything wrong or that the views ultimately, that the decision ultimately made by the Council was at all wrong.” Id., at 5:5–7 (emphasis added). On July 2, 2019, the District Court signed the judgment in favor of Plaintiffs and against the City Council. R. 784–786. In the Judgment, the District Court included written statements, repeating its earlier findings, that the City Council “did nothing wrong,” R. 785, and that “Entergy’s actions undermined” the Open Meetings Law. R. 786. The District Court found that “the Open Meetings Law was violated” at the February 21, 2018 UCTTC meeting, but, concerning the March 8, 2018 full City Council meeting, the court noted that it “does not find that the Open Meetings Law was violated.” R. 786 (emphasis added). Despite the District Court’s finding that the Open Meetings Law was not violated at the March 8, 2018 meeting (at which the City Council voted on the Resolution No. R-18-65), the District Court reasoned that the “February 21, 2018 action” was a “necessary component” of the full City Council’s decision to adopt Resolution No. R-18-65 and, as a result, the 10 District Court concluded that action taken later at the full City Council meeting conducted in compliance with the Open Meetings Law was “void ab initio.” R. 786. 11 SUMMARY OF THE ARGUMENT Solely because private, paid citizens appeared and showed support at a committee meeting, the District Court erred by declaring void the City Council’s vote, at a subsequent meeting, on a critical resolution. First, voiding the final City Council’s vote to adopt a resolution based on the actions of a private, paid citizen is clear legal error and bad public policy. The Open Meetings Law regulates the conduct of public bodies, not private parties. It requires only that government business be conducted in a public forum, with adequate notice and a reasonable opportunity for public comment. That undoubtedly occurred. Nothing in the law requires a public body to ascertain speakers’ financial, political, or policy affiliations or invalidates a vote because certain audience members were paid to attend as audience members. It is not the duty of government to establish acceptable grounds for citizens to attend public meetings and speak on matters of public consequence. Indeed, paid citizens have the same right to attend public meetings as unpaid citizens. The ultimate motivation behind supporters of NOPS— whether policy-driven or pecuniary—simply has no bearing on whether the City Council complied with the Open Meetings Law. Correctly finding no misconduct on the part of any public official, the District Court erred as a matter of law in holding that private conduct constitutes a violation of the Open Meetings Law and then ascribing that “violation” to the City Council. Second, the District Court erred by relying on the presence of paid citizens at the February 21, 2018 UCTTC meeting as a basis to void the March 8, 2018 vote of the City Council at a meeting conducted in full compliance with the Open Meetings Law. See Delta Development Company v. Plaquemines Parish Commission Council. Delta Dev. Co. v. Plaquemines Par. Comm’n Council, 451 So.2d 134, 138 (La. App. 4 Cir. 1984). The proper legal conclusion for this Court is that the subsequent legal and valid vote of the full City Council cured any purported deficiency at the prior 12 committee meeting—a fortiori because the District Court concluded that the City Council did nothing wrong. R. 785. How can there be any violation of the Open Meetings Law if the City Council did nothing wrong? There cannot be. Third, in the alternative to the legal errors raised above, the District Court abused its discretion because it imposed the sweeping remedy of voiding the City Council’s vote rather than less drastic remedies provided by statute. Under La. R.S. 42:26, “the court may grant any or all” of the listed forms of relief, including rendering the action void—but this does not mandate that the action must be voided. La. R.S. 42:26(A). The District Court erred because (1) its ruling was issued fifteen months after the City Council voted on the resolution, (2) under the New Orleans City Code the City Council could not even consider comments from citizens when making a determination on a resolution involving utilities, (3) the City Council March 8, 2018 meeting was conducted in compliance with the Open Meetings Law, and, (4) the City Council’s decision regarding public utilities should have been afforded great deference by the court. See Gordon v. Council of City of New Orleans, 9 So. 3d 63, 71 (La. 2009); see also State ex. Rel. Guste v. Council of the city of New Orleans, 309 So. 2d 290, 293 (La. 1975). Under these circumstances, by declaring the City Council’s vote on the resolution void, the District Court abused its discretion. The City Council prays that this Honorable Court reverse the District Court’s erroneous July 2, 2019 Judgment and dismiss Plaintiffs’ suit with prejudice, at Plaintiffs’ cost. 13 ARGUMENT I. The District Court erred as a matter of law in finding that the Open Meetings Law can be violated when a public body “did nothing wrong” – merely because a private party pays members of the audience to appear in support of an agenda item. A. The standard of review is de novo. The District Court’s ruling rests atop a misinterpretation of the Open Meetings Law, and this legal ruling is reviewed de novo. See Red Stick Studio Dev., L.L.C. v. State ex rel. Dep’t of Econ. Dev., 2010-0193 (La. 1/19/11), 56 So. 3d 181, 187; see Causin, L.L.C. v. Pace Safety Consultants, LLC, 2018-0706 (La. App. 4 Cir. 1/30/19), 2019 WL 385206, at *6. B. The Open Meetings Law requires only that public bodies hold public meetings and does not contemplate that public officials should question the financial motives of audience members. The Louisiana Constitution and the New Orleans Home Rule Charter vest the City Council with the power to supervise, regulate, and control utilities providing service within the City of New Orleans. See La. Const. art. 6, §§ 4–6; see Home Rule Charter, §§ 3-101, 3-130. The District Court’s ruling invalidates a vote of the City Council because members of the public were compensated to attend a prior committee meeting. It does so without citing any law or jurisprudence, without identifying a particular standard that was violated, and without explaining how a public body can possibly violate a law when it “did nothing wrong.” R. 785. The District Court has essentially rewritten the Open Meetings Law to impose requirements that appear nowhere in the statute. More troublingly, the District Court ruling establishes a rule that allows private conduct beyond the City Council’s control to delay public action for years even though the City Council has acted entirely in good faith. Article 12, Section 3 of the Louisiana Constitution of 1974 provides that “[n]o person shall be denied the right to observe the deliberations of public bodies and examine public documents, except in cases established by law.” La. Const. art. XII, 14 § 3 (emphasis added). This constitutional fiat was codified two years later as the Louisiana Open Meetings Law, La. R.S. 42:11, et seq. Delta Dev. Co. v. Plaquemines Par. Comm’n Council, 451 So. 2d 134, 138 (La. App. 4 Cir. 1984). These laws do not establish an unequivocal right to observe every action of every public official. To the contrary, these laws are subject to a host of exceptions and restrictions aimed at balancing the rights of the public with the pragmatic realities of governance. In the broadest terms, the Open Meetings Law prohibits public business from occurring behind closed doors. It is intended “to allow the public to observe and evaluate public officials, public conduct, and public institutions” and “to protect citizens from secret decisions made without any opportunity for public input.” Courvelle v. La. Recreational and Used Motor Vehicle Comm’n, 2008-0952 at *5-6 (La. App. 1 Cir. 6/19/09), 21 So. 3d 340, 345. The requirements of the Open Meetings Law are straightforward and few:  Meetings of any public body must be open to the public. See La. R.S. 42:14(A).  Public bodies may not vote by proxy or use secret ballots. See La. R.S. 42:14(B).  Votes must be recorded and made public. See La. R.S. 42:14(C).  Public comment must be allowed prior to action on an agenda item requiring a vote, subject to reasonable restrictions. See La. R.S. 42:14(D).  Public meetings must be appropriately noticed. See La. R.S. 42:19.  Public bodies must keep written minutes. See La. R.S. 42:19. Consistent with these narrow requirements, the Louisiana Supreme Court has held that a plaintiff did not allege a violation of Open Meetings Law if there is not an allegation of an “illegal, closed-door meeting.” Greemon v. City of Bossier City, 2010-2828, p. 10 (La. 7/1/11), 65 So. 3d 1263, 1269. 15 Because the Open Meetings Law regulates government action and officials, the conduct of private audience members cannot serve as the basis of a violation. The duties created by that statute—public meetings, public votes, public notice—are imposed exclusively upon public bodies, not private parties who fill the chamber. With respect to private parties, the law requires merely that the public body allow them an opportunity for public comment in a public forum. That opportunity is not limited to a subset of the general public with no pecuniary interest in the outcome of the vote. Indeed, public meetings frequently include comment from lawyers, employees, consultants, and a host of others who receive compensation for their appearance. The District Court ruling erroneously implies that the Open Meetings Law somehow requires a public body to ascertain the financial motives of public commenters. The Open Meetings Law requires only that the City Council provide a reasonable period for public comment. Beyond generic citation to the importance of access to public meetings (provided in this case), Plaintiffs cannot point to any case finding a violation under similar circumstances—because there is none. The District Court ruling renders every City Council vote vulnerable to a claim that a public commenter failed to disclose a financial affiliation and, thus, “undermined the purpose of the Public Meeting Law.” R. 786. This represents a real and present threat to the efficient administration of government, particularly in an area as vital as utility regulation. The efforts of a private party to create the appearance of support – whether it is a utility paying actors to show support or a neighborhood association giving its residents signs and t-shirts expressing opposition to a zoning matter – are wholly outside the scope of the law. The District Court ruling also presents troubling First Amendment implications. See U.S. Const., amend. I; see La. Const. Ann. art. I, § 7. To ensure that its actions withstand Open Meetings Law scrutiny, the City Council must 16 aggressively police private speech and the private motives of private speakers. And, even if the City Council were to do so, it could never know with certainty that its efforts are sufficient to comply with the Open Meetings Law. This uncertainty threatens the City Council’s ability to legislate matters of public importance with the finality required to govern effectively. Further, even assuming that private actions are germane to the Open Meetings Law, which they are not, the unique circumstances surrounding these regulatory proceedings preclude any contention than ENO’s paid supporters undermined the Open Meetings Law. R. 786. By law, the City Council’s examination of a utility docket was limited to a record compiled over more than two years of extensive deliberation. New Orleans City Code Section 158-431(b) provides that no statements by “members of the public at large who are not parties of record . . . shall, in legal terms, form (and such matter shall not form) the basis of any council decision in a contested proceeding.” New Orleans City Code, Chap. 158, Art. II, Div. 6, § 158431(b). While the Open Meetings Law may have required the City Council to entertain reasonable public comment before voting, the City Council could not base its decision on that comment, which belies any claim that ENO’s actions—even if unsavory—affected the outcome or undermined the purpose of the Open Meetings Law. The public will suffer if the District Court’s interpretation of the Open Meetings Law is not reversed. The District Court’s ruling will impose an untenable burden on public bodies and, by requiring public officials to question the motives of persons attending public meetings, the burden should not pass constitutional muster. See U.S. Const., amend. I; see La. Const. art. I, § 7. The District Court erred by considering the presence of private, paid citizens as a factor relevant to the Open Meetings Law. 17 II. The March 8, 2018 City Council’s vote cured any purported violation, which is denied, of the Open Meetings Law. A. The February 21, 2018 committee meeting was not required for the City Council’s vote on the resolution at the March 8, 2018 meeting. The District Court’s reasoning that the February 21, 2018 action was a “necessary component” of the full City Council’s meeting vote ignores the legal reality that only the City Council’s actions at the March 8, 2018 could constitute an official act. At the March 8, 2018 meeting, the City Council was aware of concerns that some people were not heard at the February 21, 2018 UCTTC committee meeting and a Councilmember was careful to explain at the start of the March 8, 2018 meeting why those concerns did not compromise the City Council’s consideration of Resolution R-18-65. Councilmember Williams began the March 8, 2018 meeting by stating: First, I know there was some concern about the committee meeting where this item was preliminarily discussed. I want to note for the record that that committee vote was not a legally binding vote. It was, in fact, a mere recommendation. In this circumstance, only the vote of the full Council, today, carries the legal weight and is outcome determinative. Although the committee meeting was conducted in compliance with the law, it is today’s vote and today’s public hearing where the rubber meets the road and a real decision is made. Exhibit H, Transcript March 8, 2018 Meeting (Excerpts), at 2:23–3:9. Councilmember Williams further explained that the vote at the UCTTC meeting was solely to move consideration of Resolution No. R-18-65 to the full City Council for consideration and that only the City Council is empowered with regulatory authority. Councilmember Williams stated: The vote at the Utility Committee meeting was to move this docket to the full Council for the actual legal vote which will have determining effect so that all members of the City Council can vote. The City Council is the regulatory authority, not the committee. 18 Exhibit H, Transcript March 8, 2018 Meeting (Excerpts), at 3:22–4:2. Council Member Williams further addressed that at the meeting the City Council wishes to hear from all parties and that staff at the meeting would be collecting comment cards. Councilmember Williams stated: Today we will hear from all parties. I know there are several people feel as though they were not heard from at the committee hearing and that is what today is for. I have directed my staff, as well as members of the clerk’s office who are assisting us, who will be collecting public comment cards from folks in the hallway. We will have a robust discussion. We will hear from the public. We will hear from experts. We will hear from Entergy. And we are here to conduct a full public hearing and receive public comment on this very important issue. All comments today will be made party of the formal record. And if time permits today, we would like to hear from every single person that wants to weigh in today. Exhibit H, Transcript March 8, 2018 Meeting (Excerpts), at 4:3–4:19. As evidenced by the statements of Councilmember Williams, the City Council at the March 8, 2018 meeting unequivocally sought to address any concerns with the prior February 21, 2018 committee meeting. Moreover, the Home Rule Charter of the City of New Orleans does not require that the City Council’s utility orders first be approved by the UCTTC. Pursuant to Charter Section 3-130(6), orders of the City Council in utility matters “shall be upon a resolution or an ordinance in open council meeting and passed by an affirmative vote of a majority of all members of the Council.” Home Rule Charter § 3-130(6). Because the March 8, 2018 meeting is the only meeting at which the full City Council took binding legal “action” on the proposed Resolution R-18-65, a violation at the committee meeting could not serve as a basis to void the City Council’s later action adopting Resolution R-18-65. By finding that the February 21, 2018 meeting was a necessary component of the March 8, 2018 meeting, the District Court ignored the City Council’s public 19 explanation that only the City Council’s actions at the March 8, 2018 would constitute an official act and ignored that the Home Rule Charter of the City of New Orleans does not require the UCTTC to approve utility orders. B. Even if the February 21, 2018 committee meeting was required, the District Court erred because the March 8, 2018 meeting was conducted in full compliance with the Open Meetings Law. Under the Open Meetings Law, “[a]ny action taken in violation of this Chapter shall be voidable by a court of competent jurisdiction.” La. R.S. 42:24. Because the language in the statute only provides that an action in violation of Open Meetings Law is voidable, not void, any action by a public body not in compliance with the Open Meetings Law is not an absolute nullity and may be cured. Even if this Court agrees with the District Court’s finding that the February 21, 2018 meeting violated the Open Meetings Law, which the City Council disputes, the District Court erred by declaring the City Council’s resolution adopting R-18-65 void because the March 8, 2018 meeting did not violate Open Meetings Law. The mechanism to cure a violation of the Open Meetings Law at a second meeting was resolved and described by this Court in its decision in Delta Development Company v. Plaquemines Parish Commission Council. Delta Dev. Co. v. Plaquemines Par. Comm’n Council, 451 So.2d 134, 138 (La. App. 4 Cir. 1984). In Delta Development, “the principle issue [was] whether the Council’s original resolution, if adopted in violation of the Open Meeting Law, could be ratified or was it absolutely null and void and insusceptible of ratification.” Delta Dev. Co., 451 So.2d at 136. In that case, a company, Delta, alleged that the Parish Council violated the Open Meetings Law by adopting a resolution (which authorized the filing of a suit to recover mineral rights from Delta) in an executive session that fell short of the Open Meetings Law’s notice requirements. Id. at 136, 138. The Parish Council met at a second meeting and adopted a resolution ratifying its previous action. Id. at 136. Faced with whether the actions by the Parish Council at the second meeting 20 cured any defect with the first meeting, this Court addressed La. R.S. 42:9 (later renumbered as La. R.S. 42:24 on August 14, 2010), which provides that an action taken in violation of the Open Meetings law “shall be voidable.” Id. at 136. According to this Court, “[a] simple reading of [the Open Meetings Law] compels the conclusion that action taken by a public body without compliance with the Open Meeting law is not an absolute nullity.” Id. at 137. This Court supported its decision by noting that another provision in the Open Meetings Law provides that any enforcement proceeding must be brought within sixty days of the action. If an action in violation of the Open Meetings law is an absolute nullity, “no purpose would be served by the sixty day provision for bringing enforcement proceedings.” Id. Applying that provision to its analysis, this Court found that “[a]ssuming that the Council’s original action [at the first meeting] was taken in such a way that the public’s constitutional and statutory rights were violated, the injury or harm to the public was cured when the ratification resolution was adopted.” Id. at 138. The rule that a second meeting can cure a defect from a prior meeting has been echoed by other courts, including the First Circuit, see Brown v. Board of Trustees— Municipal Police Employees’ Retirement System, 2017-0295 (La. App. 1 Cir. 12/18/17), 234 So.3d 260, 263, the Second Circuit, see Brown v. Monroe Municipal Fire & Civil Police Service Board, 52, 537 (La. App. 2 Cir. 12/17/18), 262 So.3d 985, 987, as well as a federal court applying Louisiana law. See Hardesty v. Waterworks Dist. No. 4 of Ward Four, 954 F.Supp.2d 461, 465 (W.D. La. 2013). In other words, it is settled law that a second meeting can cure a violation from a prior meeting and the District Court erred by ruling otherwise. Here, the District Court found that “the Open Meetings Law was violated” at the February 21, 2018 UCTTC meeting, but, concerning the March 8, 2018 full City Council meeting, the court noted that it “does not finding that the Open Meetings 21 Law was violated.” R. 786 (emphasis added). Despite the District Court’s finding that the Open Meetings Law was not violated at the March 8, 2018 meeting, the District Court reasoned that the “February 21, 2018 action” was a “necessary component” of the full City Council’s decision to adopt Resolution No. R-18-65 and, as a result, the District Court concluded that action taken later at the full City Council meeting conducted in compliance with the Open Meetings Law was “void ab initio.” R. 786. The District Court’s reasoning conflicts with this Court’s decision in Delta Development (and other similar cases) and should be reversed. III. In the alternative, the District Court abused its discretion by imposing the drastic remedy of declaring the final City Council’s vote to adopt the resolution void over other available remedies. In the alternative to the legal errors raised above, the District Court abused its discretion because voiding the City Council’s vote is a remedy that far exceeded the harm (if any) caused by the presence of paid citizens at the February 21, 2018 committee meeting. “[I]f the trial court’s decision was based on its erroneous interpretation or application of law rather than a valid exercise of discretion, such an incorrect decision is not entitled to deference.” Kem Search, Inc. v. Sheffield, 434 So. 2d 1067, 1071–72 (La. 1983). Under La. R.S. 42:26, in an enforcement proceeding, “the court may grant any or all” of the listed forms of relief, including rendering the action void—but this does not mandate that the action must be voided. La. R.S. 42:26(A). Because an action taken in violation of the Open Meetings Law is not automatically void, a district court has the discretion to assess the weight of the violation and determine an appropriate form of relief (or deny relief) based on the intent and purpose of the Open Meetings Law. See, e.g., Daigre, 543 So. 2d at 1110–11 (refusing to void a meeting despite technical violations of the Open Meetings Law because plaintiff was not prejudiced by those violations). 22 Here, the District Court could have declared a violation of the Open Meetings Law but, nonetheless, refused to invalidate the City Council’s ultimate vote. Even if this Court affirms the District Court’s ruling regarding the Open Meetings Law, which it should not, this Court should nevertheless find that the District Court abused its discretion by declaring the City Council’s vote to adopt Resolution No. R-18-65 void ab initio—a needlessly draconian remedy rendered more than more than a year after suit was filed. First, the District Court’s delay in rendering its ruling on Plaintiffs’ request should have removed voidance as an available remedy. Actions of a public body, like the City Council, are entitled to a strong presumption of validity and should not be easily set aside. See A. Copeland Enters., Inc. v. City of New Orleans, 372 So. 2d 764, 766 (La. App. 4 Cir. 1979). Recognizing this principle, the Open Meetings Law mandates swift rulings regarding challenges to the validity of public action. It mandates that Open Meetings Law challenges “shall be tried by preference and in a summary manner,” La. R.S. 42:27, and, in summary proceedings, “[t]he court shall render its decision as soon as practicable after the conclusion of the trial of a summary proceeding and, whenever practicable, without taking the matter under advisement.” La. C.C.P. art. 2595. By design, the Open Meetings Law limits the time in which a plaintiff can file suit and accelerates the time in which a District Court must conduct the proceedings, evidencing the Legislature’s intent that such proceedings and judicial determinations be conducted quickly. Otherwise, the validity of public actions remains uncertain and vital public business remains undone.3 In this case, nearly a year passed between the hearings that occurred during the summer of 2018 and the District Court’s June 14, 2019 ruling in open court. 3 In addition, La. R.S. 42:27 provides that “[a]ny appellate court to which the proceeding is brought shall place it on its preferential docket, shall hear it without delay, and shall render a decision as soon as practicable.” 23 R. 2019-C-0774, Supplemental Vol. 2 (Transcript of June 14, 2019 Hearing). The District Court abused its discretion in imposing the remedy of nullifying the City Council’s vote and resolution and by rendering its decision nearly 15 months after the date the City Council passed R-18-65. Much of time delay was due to continuances, requested by Plaintiffs, and delays authorized by the District Court. By condoning such a delay, the District Court may have recognized that Plaintiff’s claims were not urgent, yet the District Court later imposed the drastic remedy of declaring the actions of the City Council void. The Open Meetings Law does not envision granting judicial authority to impose such a drastic remedy after such a long passage of time and the District Court abused its discretion by imposing such a remedy in this case. Second, based on the New Orleans City Code, the City Council could not consider comments from citizens when making a determination on a resolution involving utilities and, therefore, the District Court should not have voided the City Council’s vote based on the presence of private, paid citizens at the February 21, 2018 committee meeting. See New Orleans City Code Section 158-431(b) (providing that no statements by “members of the public at large who are not parties of record . . . shall, in legal terms, form (and such matter shall not form) the basis of any council decision in a contested proceeding”). Thus, the District Court’s finding that “the February 21, 2018 action was a necessary component of the full council’s decision to adopt Resolution No. 18-65,” R. 786, does not square with the New Orleans City Code’s regulations governing what information may be considered by the City Council. That is, because the City Council cannot rely on those allegedly excluded members of the public in forming their decision, the District Court erred in imposing a remedy to void the City Council’s act. Third, as stated above, this Court has held that when violations of the Open Meetings Law are found, “the injury or harm to the public [is] cured when [a] 24 ratification resolution [is] adopted.” Delta Dev. Co., 451 So. 2d at 138. To the extent there was any violation of the Open Meeting Law at the February 21, 2018 committee meeting, which the City Council disputes, any injury or harm to the public was cured when the City Council voted on and adopted the resolution at its March 8, 2018 meeting. Fourth, in the companion case, entitled Alliance for Affordable Energy, et al. v. Council of the City of New Orleans, No. 2018-3471 (CDC, Div. I-14), on June 14, 2019, Judge Piper D. Griffin affirmed Resolution No. R-18-65 and rejected challenges to the City Council’s approval of NOPS by the Alliance for Affordable Energy, Deep South Center for Environmental Justice, 350 New Orleans, and the Sierra Club. The District Court erred in this matter by voiding the decision of the City Council because doing so contradicts the finding in the companion case that the City Council’s determination was reasonable. In the companion case, in its Reasons for Judgment, the District Court recounted a nearly two-decade history to explain the current need for new energy generation in Orleans Parish and noted that the decisions under review were “precipitated by many years of planning, negotiation, trial and error, and compromise.” CDC Case No. 2018-3471, Reasons for Judgment at 1 (6/14/19). As recognized by the District Court in that companion case, the City Council’s decision regarding public utilities should not be overturned unless (1) the decision was arbitrary and capricious, (2) the decision represented a clear abuse of authority; or (3) the decision was not reasonably based upon the factual evidence presented. See CDC Case No. 2018-3471, Reasons for Judgment at 9 (6/14/19); see also Gordon v. Council of City of New Orleans, 9 So. 3d 63, 71 (La. 2009); see also State ex. Rel. Guste v. Council of the city of New Orleans, 309 So. 2d 290, 293 (La. 1975). As such, a reviewing court must limit its review “to a determination of whether the decision is reasonable and refrain from merely substitute [its] judgment for that of 25 the Council.” Gordon, 9 So. 3d at 72 (quoting State ex. Rel. Guste, 309 So. 2d at 294). Applying this standard, the District Court in the companion case affirmed the City Council’s decision to adopt Resolution No. R-18-65. See CDC Case No. 20183471, Reasons for Judgment at 26 (6/14/19). Because the District Court in the companion case affirmed the City Council’s decision to adopt Resolution No. R-18-65, the District Court in this case abused its discretion by voiding the decision of the City Council. Resolution No. R-18-65 is in the public interest and the City Council’s vote to adopt that resolution was reasonable. The gravity of such an important resolution should not be undermined by supposed technical violations of the Open Meetings Law. In sum, declaring the City Council’s resolution void is a remedy that that far exceeded the alleged harm and, as a result, the District Court abused its discretion by ruling that the City Council’s vote to adopt Resolution No. R-18-65 was void ab initio. CONCLUSION The City Council prays that this Honorable Court reverse the District Court’s legally erroneous July 2, 2019 Judgment and dismiss Plaintiffs’ suit with prejudice, at their cost. Respectfully submitted, /s/James M. Garner JAMES M. GARNER, #19589 DEBRA J. FISCHMAN #5578 STUART D. KOTTLE #37194 SHER GARNER CAHILL RICHTER KLEIN & HILBERT, L.L.C. 909 Poydras Street, Suite 2800 New Orleans, LA 70112 Telephone: (504) 299-2100 Facsimile: (504) 299-2300 E-mail: jgarner@shergarner.com dfischman@shergarner.com skottle@shergarner.com 26 Corwin M. St. Raymond #31330 Deputy City Attorney William R. H. Goforth # 33153 Assistant City Attorney Donesia D. Turner #23338 Sr. Chief Deputy City Attorney Sunni J. LeBeouf #28842 CITY ATTORNEY 1300 Perdido Street – Room 5E03 New Orleans, LA 70112 Telephone: (504) 658-9800 Facsimile: 504-658-9868 E-mail: cmstraymond@nola.gov wrgoforth@nola.gov donesia.turner@nola.gov sunni.lebeouf@nola.gov Adam J. Swensek # 30751 Executive Counsel NEW ORLEANS CITY COUNCIL 1300 Perdido Street, Room 1E6 New Orleans, Louisiana 70112 Telephone: (504) 658-1109 E-mail: adam.swensek@nola.gov Attorneys for Defendants-Appellants the Council Of The City of New Orleans, the Utility, Cable, Telecommunications and Technology Committee Of New Orleans City Council, Jason R. Williams, Stacy Head, Susan G. Guidry, Latoya Cantrell, Nadine M. Ramsey, Jared C. Brossett, and James A. Gray, II 27 CERTIFICATE OF SERVICE In accordance with Rule 2-14.1 and 2-14.2, I hereby certify that a copy of the above and foregoing has been served to all counsel of record by e-mail this 12th day of November, 2019. A copy of the above and foregoing will also be mailed to the District Court. /s/ James M. Garner JAMES M. GARNER 28 SERVICE LIST William P. Quigley #07769 Loyola University New Orleans 7214 St. Charles Avenue New Orleans, LA 70118 Telephone: 504-861-5591 quigley@loyno.edu Alexander “Sascha” Bollag #34447 Green Justice Legal 540 Broadway Street, Room 304 New Orleans, LA 70118 Telephone: 504-913-7740 E-mail: sbollag@greenjusticelegal.org Counsel for VAYLA New Orleans, Justice and Beyond, 350 New Orleans, Sierra Club, Mr. Theodore Quant, and Ms. Renate Heurich Susan Stevens Miller Earthjustice 1625 Massachusetts Ave., N.W. Suite 702 Washington, D.C. 20036 Telephone: 202-667-4500 E-mail: smiller@earthjustice.org Pro Hac Vice Counsel for VAYLA New Orleans, Justice and Beyond, 350 New Orleans, Sierra Club, Mr. Theodore Quant, and Ms. Renate Heurich Monique Harden #24118 Deep South Center for Environmental Justice 3157 Gentilly Blvd. – Suite 145 New Orleans, LA 70122 Telephone: 504-510-2943 E-mail: moniquecoharden@gmail.com Counsel for Deep South Center for Counsel for VAYLA New Orleans, Environmental Justice Justice and Beyond, 350 New Orleans, Sierra Club W. Raley Alford, III #27354 Timothy S. Gragin #22313 Kathryn W. Munson #35933 Harry Barton #29751 Stanley, Reuter, Ross, Thornton & Entergy Services, LLC Alford, L.L.C. 639 Loyola Avenue 909 Poydras Street, Suite 2500 New Orleans, LA 70113 New Orleans, LA 70112 Telephone: 504-576-2603 Telephone: 504-523-1580 Facsimile: 504-576-5579 Facsimile: 504-524-0069 E-mail: tcragin@entergy.com E-mail: wra@stanleyreuter.com hbarton@entergy.com kwm@stanleyreuter.com Counsel for Entergy New Orleans, LLC Counsel for Entergy New Orleans, LLC in Docket No. 2019-CA-0775 in Docket No. 2019-CA-0775 Hon. Piper D. Griffin, Judge Division "I" - Section 14 421 Loyola Avenue, Room 405 New Orleans, LA 70112 Phone: (504) 407-0280 FAX: (504) 558-0950 pgriffin@orleanscdc.com 29 CIVIL DISTRICT COURT FOR THE PARISH OF ORLEANS STATE OF LOUISIANA CASE NO. 18-3843 DIVISION “P Section 14 THE S o u t h e r n c e n t e r f o r e n v i r o n m e n t a l j u s t i c e , i n c . d ^ /a d e e p CENTER FOR ENVIRONMENTAL JUSTICE, VAYLA NEW ORLEANS, JUSTICE AND BEYOND, 350 NEW ORLEANS, SIERRA CLUB, MR. THEODORE QUANT, A N D MS. RENATE HEURICH so uth VERSUS THE COUNCIL OF THE CITY OF NEW ORLEANS, THE UTILITY, CABLE, TELEC O M M UN ICA tlO NS A ND TECHNOLOGY COMMITTEE OF THE NEW ORLEANS CITY COUNCIL, JASON R. WILLIAMS, HELENA MORENO, JOSEPH I. GIARRUSSO, JAY H. BANKS, KRISTIN GISLESON PALMER, JARED C. BROSSETT, AND CYNDI NGUYEN FILED: Deputy Clerk JUDGMENT etitioners’ Amended Petition to Enforce the Louisiana Open Meetings Law, for Declaratory Judgment, Injunction, and Attorneys’ Fees and Costs came before this Court for hearing on July 19, 2018. l^resent at the hearing in court were: W illiam Quigley, Monique Harden, Alexander Bollag, Susan Stevens Miller, and Jill Tauber, for petitioners; and Corwin St. Raymond, William Goforth, and Cherrell S. Taplin, for defendants. After considering the pleadings and memoranda filed with this Court, the evidentiary record, and the arguments o f counsel, this Court announced its ruling in open court on June 14, 2019. t h e Court explained this judgment is to make sure that “citizens voices are heard” at City Council meetings. Regarding the February 21, 2018 meeting o f the Utilities, Cable, Telecoijuuunications and Technology Committee o f the N ew Orleans City Council (“UCTTC”) and the March 8, 2018 meeting o f the N ew Orleans City Council (the “Council”), the Court found that the Council “did nothing wrong.” The Court acknowledged the Council’s own investigatory finding^ that, as a result o f Entergy N ew Orleans’ actions, “paid citizens were p resen ra t public ' 0030 rV u lri meeting!! held on October 16, 2017 and February 21, 2018. The Court further found that “Entergy’s actions undermined” the Open Meetings Laws, La. R.S. 42:11, et seq. Finally, the Court fcund that “the Open Meetings Laws were not adhered to as relates to the meaning and policy b ihind the Open Meetings Laws.” Regarding the February 2 1 ,2 0 1 8 meeting o f the Utilities, Cable, Telecommunications and Technology Committee o f the N ew Orleans City Council, the Court finds that the Open Meetings Law was violated. Regarding the March 8, 2018 meeting o f the N ew Orleans City Council, the Court does n o t find that the Open Meetings Law was violated. However, the February 21, 2018 action was a necessaiy component o f the full council’s decision to adopt Resolution No. 18-65. As such, the full council’s vote to adopt the resolution was void ab initio. IT IS ORDERED, ADJUDGED AND DECREED that, for the reasons stated in open court on June 14, 2019, there be judgment in FAVOR o f petitioners. The Southern Center for Environmental Justice, Inc. d/b/a Deep South Center for Environmental Justice, VAYLA New Orleans, Justice and Beyond, 350 N ew Orleans, Sierra Club, Mr. Theodore Quant and Ms. Renate Heurich, and AGAINST defendants. The Council o f the City o f New Orleans, the Utility, Cable, Telecommunications, and Technology Committee o f the N ew Orleans City Council, Jason R. Williams, Helena Moreno, Joseph I. Giarrusso, Jay H. Banks, Kristin Gisleson Palmer, Jared C. Brossett, and Cyndi Nguyen; and T IS FURTHER ORDERED, ADJUDGED and DECREED that, for the reasons stated in open colirt on June 14, 2019, the action o f the then-sitting members o f the UCTTC at its February 2 1 ,2 0 1 8 meeting is VOID; and T IS FURTHER ORDERED, ADJUDGED and DECREED that, for the reasons stated in open court on June 14, 2019, the action o f the then-sitting members o f the N ew Orleans City Council adopting Council Resolution N o ^ -1 8 -6 5 at a March 8, 2018 meeting is VOID. N ew Orleans, Louisiana, this ^ day o f 2019. / THE HONORABLE PIPER D. GRIFFIN DISTRICT COURT JUDGE, DIVISION “I” , _ 0031 CIVIL DISTRICT COURT FOR THE PARISH OF ORLEANS .I STATE OF LOUISIANA NO. 18-:(843 DIVISION “I” SECTION: 14 THE ¡SOUTHERN C ENTER FOR EN VIR O N M EN TAL JUSTICE, INC. d/b/a DEEP SO U JH CENTER FOR EN VIR O N M EN TAL JU ST IC E, VAYLA NEW ORLEANS, JU ST IC E AND BEYOND, 350 NEW O RLEANS, SIERRA CLUB, MR. TH EO DO RE QUANT, AND MS. RENATE HEURICH VERSUS THE CO UNCIL OF THE CITY OF NEW O RLEANS, THE UTILITY, CABLE, TEL ECO M M U N ICA TIO N S AND TEC H N O LO G Y COM M ITTEE OF THE NEW o r l e A NS CITY CO U NC IL, JA SO N R. W ILLIAM S, HELENA M ORENO, JOSEPH I. GIARR IJSSO, JAY H. BANKS, KRISTIN G ISLESON PALM ER, JARED C. BROSSETT, AND CYNDI NGUYEN FILED: DEPUTY CLERK M O TIO N FOR SUSPENSIVE APPEAL N o w INTO COURT, through undersigned counsel, come defendants The Council of the City of New Orleans; The Utility, Cable, Telecommunications and Technology Committee of the New Orleans City Council; Jason R. Williams; Helena Moreno; Joseph 1. Giarrusso; Jay H. Banks; Kristin Gisleson Palmer; Jared C. Brossett; and Cyndi Nguyen (hereinafter, the “Council"), who respectfully move the Court for a suspensive appeal from the Court’s July 2, 2019 Jiulgment in the above-captioned matter, as set forth below; 1. On July 2, 2019, the Court entered a Judgment in favor of Plaintiffs, finding a violation o f the Uouisiana Open Meetings Law, La. R.S. § 42:11, el seq. and declaring that the action of the Utility, Cable, Telecommunications and Technology Committee o f the New Orleans City Council on Febriuiry 21, 2018 and the March 8, 2018 action o f the New Orleans City Council adoptin Council Resolution No. R-18-65 are void. See Notice o f Signing o f Judgment, attached hereto as "E.xhibit A." 2. The July 2, 2019 Judgment is a final judgment pursuant to article 1841 o f the Louisiana RIFIED Code o Civil Procedure. 0032 LDOONOW CIVIL DISTRICT COURT PARISH OF ORLEANS STATE OF LOUISIANA ALLIANCE FOR AFFORDABLE ENERGY, ET AL No.2017-5208 VERSUS CIVIL ACTION THE COUNCIL FOR THE CITY OF N.o. DIVISION Testimony and Notes of Evidence heard in the above entitTed cause of action her in Open Court before the HONORABLE PIPER D. GRIFFIN, judge presiding in Division on FRIDAY, the 14th day of JUNE of 2019. Reported By: SHANNON OfficiaT Court Reporter 0033 REPRESENTING PLAINTIFF: Attorney Monique Harden FOR DEEP SOUTH CENTER FOR ENVIRONMENTAL JUSTICE Attorney Susan Stevens MILLER FOR ALLIANCE FOR AFFORDABLE ENERGY AND ORLEANS REPRESENTING DEFENDANTS: Attorney BasiTe J. Uddo Attorney PressTey R. Reed, Jr. FOR THE CITY OF NEW ORLEANS Attorney w. RaTey w. A1ford, FOR ENTERGY NEW ORLEANS 0034 LDOONG FRIDAY, JUNE 14, 2019 THE COURT: We're going to deai with 2 cases today, everybody knows that. We're going to dea1 with both the for Affordab1e Energy et a1 versus The City Counci1 of New Orieans, 2018?03471 as weii as 2018-03843, Deep South Center for Environmentai Justice versus The Councii for The City of New Orieans. First I was going to have you guys say which one you wanted to hear first, One is a written judgment and I know that I?ve taken quite a bit of time because I wanted to get it what I considered right. During the process I 1earned a iot, a iot about the process that the City and the City Councii goes through. I've 1earned that the citizens of New Orieans are deepiy concerned about, both the City Councii and the citizens of New orieans are deepiy concerned about making sure that we not on1y have the appropriate energy necessary to power the City but that we aiso do everything in an appropriate way. I?m going to first, I think the counseis in front of me, some of whom are different from the other case, -3- 0035 deai with 2018?38436. That's the one that deais with, among other things, the issue of the open meetings 1aws. One thing I did determine, and I wi11 appiaud and ya'11 can take it the way you wish to take it, I do appiaud the City Counciimembers who were there who did their due and make sure that ya?ii understand the City understands that my judgment, though appiauding the City, does ruie against the City. And 1et me expiain to you why. The Open Meetings Laws were designed and continue to be designed to ensure that the citizens, that their voices be heard and that they have an opportunity to have a seat at the tab1e when decisions are made by those that they've e1ected to make those decisions. My review of that, I don't get to decide whether I agree or disagree, that's not the issue. The issue upon appeal is whether or not there was a substantiai comp1iance, the City Councii, and I guess my judgment wOn't make sense to everybody since I'm going to make this statement because I make this statement, I don't see that they did anything wrong, but even though they did nothing wrong the rea1ity becomes this; the citizens of New Orieans have to be1ieve in the process and trust the process. And to beiieve in and trust the process they have to have an appreciation that the -4- 0036 process itseif is one in which their voices are heard. The City's investigation showed they were paid citizens, that those paid citizens were present and to some extent may have skewed the presentation, that does not mean that, again, that the Councii did anything wrong or that the.views uitimateiy, that the decision uitimateiy made by the Councii was at wrong, but in making this decision I have to 100k at and have in my own opinion and iooking at whether there is substantiai compiiance make sure that there is in fact adherence to the poiicy behind the Open Meetings Laws. And so after having reviewed a11 the record, and I'm oniy vacating the judgment because I want to make sure that as the City Councii has the meetings that there is no, that the citizen's voices are heard, that the citizen's voices are in the room to the extent they choose to be in the room and that there is a true appreciation for both the pros, cons and in essence what I'm saying is that Energy's actions undermined the Pubiic Meetings Laws. I can't say it any differentiy. That being said, that is my judgment in that case. I wouid ask that Petitioners simpiy prepare a judgment that vacates the origina1 ruiing finding that the Open Meetings 1aws were not adhered to as reiates to the meaning and poiicy behind -5- 0037 U1 LDOON05 the Open Meetings Laws. we now move on to 2018?03471, and that's a written judgment and we will give, who are the attorneys in that? Let's change seats. We are copying that judgment, that judgment is 26 pages long, it's taking a minute. I'm going to do for purposes, you will get the judgment, Tawanda is making one of my staff members is making a copy. In that instance, in that case involved whether or not the City's determination and the Council's determination in allowing Entergy to build the plant in some what violated the due process rights of the Petitioners, it did not. And in that instance I rule squarely in favor of the City and find that the City, in looking at the Resolution and the settlement agreement and all of the history that, and you, ya'll will have, the lawyers will have my judgment to look at. The reality is this, from what I could see the City did a very good job of making sure notice of hearings were had, the City in it's concern for what was clearly taking place in the industry meaning that in the energy industry there were these agreements there were being massaged, is probably the best word to say, but they were being dealt with as Entergy the Corporation bought several subsidiaries and subsequently figured out a way to make sure that these -5- 0038 LUNH subsidiaries were abie to stand on their own. Because of these changes the City did it's due I can't say it any different, they had muitipie meetings, they did investigation, they made a determination based on iots of evidentiary, iots of evidentiary hearings. This is one of the things I know and I know that one of the things the Petitioners says that they didn't know, c1ear1y the City notified everybody of what was going on. I don't think peopie appreciated the magnitude of what was happening untii the ninth hour. And it is ciear from what I read and from the information provided to me that the City and it's advisors, I know one of the arguments made by Petitioners is that the presence of the advisors in some way was a1so a vioiation of due process, again I fee1 that it was not. The on1y way that the City functions is if it has people who have knowiedge within an area that are abie to do the investigation necessary. I iooked at the case 1aw regarding ratemaking versus ruie determination and determined that the City as it was acting in this particuiar matter as the entity responsibie for the and more specificaiiy for energy, that it did not, it was not inappropriate for it to have the advisors and have the advisors both heip them through the process and heip them make a a7- 0039 decision that was good for the citizens at 1arge. The determination of the type of plant needed was done after much negotiations, and again, the opinion is 26 pages, and it's 26 pages because I wanted the Petitioners to understand that I 1ooked at everything. I didn't want them to think I did not have an appreciation for a11 of their arguments and a11 everything that they said, but I just did not find that given the circumstances and given the actions taken by the City that there was any faiiure by the City to both give notice, to both act appropriate1y and do a due investigation and to make a determination that they be1ieve was in the best interest of the citizens of New Orieans. One of the things that the Petitioners do ta1k about is the faiiure to consider a11 the a1ternatives as re1ates to or options other than buiiding a new it's ta1ked about. Everything that I beiieve the Petitioners suggest was not considered, it's in the Reso1ution, they considered it and they for whatever reasons, and again, my ro1e is not to decide that I wou1d have done it better, that's not my ro1e. My roie is to determine whether or not they acted arbitrary and capricious and whether or not any evidence, whether there is sufficient evidence up the record to suggest that they 0040 LDOONOV did something that vioiated again, due process in not, in making the determination that they made. I'm not going to go through a11 26 pages but I am going to say that is my judgment, it is a written judgment, it is signed today and if you want your copy of the judgment we have it for you, you can take it. We just need you to sign for it. If you want us to mai1 it to you we can mai1 it to you. If citizens want a copy of the judgment we have to figure that out because it's 26 pages. Thank you a11 very much for your patience. I know to some extent, and I've been very, what's the word,.. genera1, in my comments re1ative to both judgments but I think that the parties who are participating understand my ru1ing. If they don't understand my ru1ing you can raise your hand and I can try to give you some 1eve1 of c1arity, but my ru1ings are what they are. Thank ya'11 very much. Anybody have any questions? Thank you. 0041 PAGE I, Shannon Deruise, Officia1 Court Reporter for Civil District Court, 0r1eans Parish, do hereby state on the record that due to the interaction and the spontaneous discourse of these proceedings, dashes have been used to indicate pauses, changes in thought, interruptions and/or simu1taneous speech; that this is the proper method for a court reporter's transcription of the proceedings; and that the dashes do not indicate that words or phrases have been 1eft out of the I transcript. Any words and/or names which cou1d not be verified through reference materiai have been denoted with the phrase -10_ 0042 AWNH This certificate is va1id onTy for a transcript accompanied by my original signature and origina1 required seaT on this page. I, Shannon Deruise, OfficiaT Court Reporter in and for the State of Louisiana, empToyed as an officiaT court reporter by the Parish of OrTeans CiviT District Court for the State of Louisiana, as the officer before whom this testimony was taken, do hereby certify that this testimony was reported by me in the Stenotype reporting method, was prepared and transcribed by me or under my direction and supervision, and is a true and correct transcript to the best of my abiTity and understanding; that the transcript format guideTines required by statute or by ru1es of the board or by the Supreme Court of Louisiana, and that I am not reTated to counse1 or to the parties herein nor am I otherwise interested in the outcome of this matter. DERUISE, CCR OFFICIAL COURT REPORTER CERTIFICATE NO. 87098 _11m 0043