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Port board approves equipment purchases, Shed 7 reconstruction and bond refinancing
Summary
The Lake Charles Harbor and Terminal District board approved four procurement and finance items Aug. 26: purchase of a remanufactured dozer from Sun Machinery ($857,000), Keelan Construction's $11.9M low bid for Shed 7 (FEMA‑reimbursable), an amendment to CSRS disaster‑recovery services, and authorization to pursue advance refunding of 2013 revenue bonds.
At its Aug. 26 meeting, the Lake Charles Harbor and Terminal District Board of Commissioners approved a slate of procurement and financing actions, including equipment purchases, a major reconstruction contract and a bond advance‑refunding authorization.
Staff requested and the board approved acceptance of Sun Machinery’s low responsive bid for a remanufactured Wagner CD 1,000 coal‑carry dozer for Bulk Terminal No. 1 at a cost of $857,000. Staff said two of the three dozers of this type have been in service since February 2012 and one needs replacement. "Staff requests the board of commissioners to accept the lowest responsive bid of Sun Machinery," Mr. Self said during the item.
The board authorized the executive director to accept Keelan Construction LLC’s low bid of $11,900,000 to reconstruct Shed 7 at City Docks, a repair project that staff said is FEMA‑reimbursable. Staff explained the base bid was $11.9M with a $1.5M contingency (total $13.5M); the district had budgeted about $16.16M and the engineering estimate was $14.6M.
The board also authorized an amendment to the professional services agreement with CSRS Disaster Recovery Management for hurricane Laura and Delta recovery work; staff emphasized that those costs are expected to be reimbursable by FEMA and that the requested amendment would remain within the program’s allowable cost ceiling.
Finally, the board approved moving forward with an amendment to previously authorized actions to permit issuance of up to $35,000,000 in Lake Charles Harbor internal district revenue refunding bonds to advance‑refund the 2013 bonds. Staff described the refinancing as preserving the original maturities while taking advantage of lower interest rates to generate net savings; staff initially cited an estimated NPV savings of about $2,000,000 and provided an updated estimate of $1,700,000. Financial consultant Sean Toups confirmed that issuance costs were included in the net savings calculation and said issuance would proceed only if the market produced savings.
Each of the above items was moved, seconded and approved by voice vote with no objections recorded in the transcript. The meeting later included a motion to move into executive session, which was on the floor at the end of the provided transcript.
