The Lake Charles Harbor and Terminal District on Oct. 30 voted to accept the lowest responsive bid from Alfred Palma LLC to replace a conveyor at Bulk Terminal 1 and to amend the 2023 capital budget to cover the work. The board also approved an amendment to a professional services agreement to add construction support services from Lanier & Associates Consulting Engineers.

Board staff told commissioners the project has been on the port27s books since 2013 and is a FEMA 428 recipient, meaning the port expects FEMA to reimburse eligible costs. Staff reported the low bid at $11,000,008.72 and cited a roughly $1,000,000 contingency, which staff described in discussion as bringing the cited total to about $12,000,008.72. Commissioners said concern centered on the fact only one contractor bid and that the cost exceeds engineer estimates and is not budgeted in the port27s regular capital plan.

In response, port staff said FEMA EHP approval for the project has been submitted and is expected soon and that staff can delay issuing a notice to proceed or signing a contract until FEMA authorization is secured. "We can usually agree to hold that price and delay that notice of award until we have that authorization from FEMA," said Nick Castillo, whose role is not specified in the transcript.

Commissioners also discussed timing with a new ship loader scheduled to arrive within the next 12 months. Staff warned that if the ship loader is delivered before the new conveyor is installed, the ship loader27s taller tripper would not operate properly with the existing conveyor and port customers could be affected. Staff said temporary unloading equipment is operational and can keep operations moving in the short term.

A motion to authorize the executive director to accept Alfred Palma LLC27s bid and amend the 2023 capital budget was made (motion by Mister Bridal, second by Mister Crater) and carried on an affirmative voice vote. Separately, the board approved the requested amendment to Resolution 2023-7 to add construction support from Lanier & Associates (motion by Miss Johnson, second by Mister Getrick; vote recorded as "Aye").

The board did not record a roll-call vote in the meeting transcript; staff said next steps are to hold the contractor27s price and postpone issuance of the notice to proceed until FEMA approvals are received.

The port will incorporate the conveyor and construction-support costs into the capital budget amendments approved at the meeting and proceed with permitting and procurement steps while awaiting federal environmental approvals.