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Port of Lake Charles approves series of contract amendments, procurement bids and bond refunding

Board of Commissioners, Port of Lake Charles · October 25, 2024
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Summary

At its Oct. 20 meeting the Port of Lake Charles Board of Commissioners approved multiple submissions including a time extension for hurricane-recovery consultant CSRS, a Worley stormwater study for BT 1, acceptance of a Komatsu equipment bid, a fee adjustment for Shed 7 engineering, a lease option with Energy Transfer, a PPG lease amendment and a bond refunding that yielded roughly $2.6 million in net savings.

The Port of Lake Charles Board of Commissioners on Oct. 20 voted to approve a package of contracts, procurement actions and a bond-refunding resolution.

The board authorized the executive director to amend the professional services agreement with CSRS Disaster Recovery Management to extend the contract term for hurricane recovery and grant-management work tied to hurricanes Laura and Delta; staff said the action was a time extension only and did not change the contract dollar amount.

The board authorized a professional services agreement with Worley Group to evaluate the storm-water collection system at BT 1, citing concerns about petroleum coke entering the environmental pit during heavy rains. Staff said Worley was recommended from three proposals.

The board accepted the lowest responsive bid from Komatsu for a 2024 Joy Stammler RF5Q reclaimed feeder and associated equipment for BT 1. Staff said the item is vital to terminal operations; the item was budgeted at $700,000 and Komatsu’s lone bid was $753,000. Commissioners asked whether the single bid met specifications and staff confirmed it did.

Commissioners approved an increase to the engineering services fee for the reconstruction of Shed 7 at City Docks after construction bids came in at roughly $11.9 million versus the $8 million figure used to calculate the original fee; staff said the adjustment follows the facility planning fee curve and the overall project remains below the $60 million budget.

The board also approved an option-to-lease agreement with Energy Transfer for dockside liquid-loading arms and a separate option on Tract 375 (about 275 acres). Staff described the project as “significant” for Southwest Louisiana, noting potential throughput and capital investment referenced in the presentation.

An amendment to PPG’s lease was approved to add one additional warehouse to PPG’s existing seven-warehouse lease; staff said the change would generate about $45,000 a year in additional revenue and that the structures may later be affected by I‑10 bridge construction.

Finally, commissioners adopted a third supplemental resolution amending the port’s general bond resolution and refunding the port’s 2013 bond issue. Staff said the refunding generated about $2.6 million in net savings and about $20,000 in cash savings per month for the life of the bonds.

All submissions were moved, seconded and approved with no recorded roll-call tallies in the transcript; items were adopted by voice vote without objection.

What’s next: staff will execute the amended agreements, proceed with the Worley study, and complete the procurement and lease paperwork as approved by the board.