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Commissioners approve amendment to Moffett & Nickel agreement after value-engineering lowers cost estimate

2537912 · February 27, 2025
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Summary

The Lake Charles Harbor and Terminal District board authorized its executive director to amend a professional services agreement with Moffett & Nickel after engineers' value-engineering cut the Industrial Canal design estimate from about $157 million to an estimated $63 million (plus dredging).

The Lake Charles Harbor and Terminal District Board of Commissioners voted to authorize the executive director to amend Resolution 2023-016 and increase the design fee for Moffett & Nickel to complete updated engineering on the Industrial Canal improvement project.

Commissioner Stone moved approval of Submission 2025-005; Commissioner Cheyenne seconded the motion and the board passed it by voice vote with no objections.

The change follows a value-engineering review by Moffett & Nickel and District staff that produced a new design approach. “That estimate, I believe, is at about 63,000,000, not including the dredging. And, if we add the dredging of 10 to 20,000,000, we get to maybe 83,000,000,” said Mister Veil, a staff member who presented the briefing. The figure was presented as a comparative estimate versus an earlier engineering estimate the presenter described as “right at a hundred and 57,000,000.”

Staff said the revised design uses a tie-back with a bulkhead in front and plans to dredge to about 40 feet. Engineering changes included increasing pile sizes while reducing the number and length of sheet piles; staff and the consultant said those adjustments reduced the amount of steel required and produced the savings. A separate round of permit drawings for the U.S. Army Corps of Engineers also required additional engineering work, staff said.

The board did not adopt a construction contract or award bids at the meeting; the action approved only the amendment to the consultant agreement so Moffett & Nickel can complete the revised design and related permit drawings. Mr. Veil said some permit alternatives increased cost and were not being pursued.

The amendment does not itself commit construction funding. Staff told the commissioners the revised design will be ready to be put out for bid, with staff planning to go to a public bid process next month for the construction work.

Clarifying details discussed in the meeting include that the earlier engineering estimate was presented as roughly $157,000,000; the new design estimate was presented at about $63,000,000 before dredging; staff projected dredging at $10,000,000–$20,000,000; and the proposed dredge depth is approximately 40 feet. The board discussion explained that the amendment covers additional design and permit work, not construction procurement.

The board did not provide a roll-call tally; the item passed by unanimous voice vote with no commissioners objecting.

The board will consider construction bids after the revised design and Corps permit documentation are finalized.