Lake Charles Harbor board approves $5.0M bid, contract amendments and lease change

The Lake Charles Harbor & Terminal District on April 22 approved a package of procurement and contract actions, including awarding a low bid of $5,000,003.75 for rehabilitation work at BT 1 and amending multiple professional-services agreements and a major tenant’s lease.

The board accepted the lowest response from Alfred Palmer (listed in board materials as Alfred Palma/Palmer LLC) for the calcine dust collectors and electrical feeders rehabilitation at BT 1. Staff reported the low bid of $5,000,003.75 compared with an engineering estimate of $5,400,000. The motion to accept the bid was made and approved by voice vote.

The board also approved an amendment to a professional-services contract with Lanier and Associates to expand design and construction-support services for the same BT 1 rehabilitation. Staff said the amendment increases the design fee by $237,000, adds $172,000 for construction-support services and includes a $50,000 contingency, for a $459,000 total additional authorization to the contract.

Commissioners questioned whether the change stemmed from bid cost increases or added scope. An engineering staff member responded that the scope had grown beyond an “in-kind” replacement and that the consultant’s fee is tied to construction cost and duration. Staff said the original contract amount had not yet been fully expended and that the amendment is intended to stay ahead of potential overrun rather than wait until funds are exhausted.

Separately, the board authorized an amendment to the Moffett Nickel contract for professional services on the City Docks Berth 45 and 46 wharf project, adding $398,000 for construction-support services. Staff told commissioners that the project has produced an unexpectedly large number of submittals — about 880 to date — and 149 RFIs, far above typical expectations for a CMAR (construction manager at risk) delivery. Staff said they are working with the contractor to consolidate submittals and avoid repetitive packages; the amendment was presented as a response to increased engineer time and was approved.

The board also authorized an amendment to the Magnolia LNG lease to allow monthly rent payments instead of annual prepayment for the duration of the lease. Staff said the board had previously approved temporary monthly payments during the COVID–19 period and that this change would relieve the tenant from annual renewal requests for monthly payments going forward. The motion passed by voice vote.

All motions linked to these agenda items were moved, seconded and approved by voice; no roll-call tallies were recorded in the meeting transcript.

What’s next: The approved contract amendments and bid award are administrative next steps for staff to execute. The board adjourned into executive session at the end of the public meeting.