Todd Henderson

The regular meeting involved several key operational and financial discussions. The board ratified Submission 2026-001, approving the executive director's action to accept the proposal from Island Dredging Company LLC for maintenance dredging at City Dock birth number nine, honoring the original quoted cost despite dredge issues. Financial briefings for December 2025 highlighted strong performance, with revenues of $4.3 million (favorable by approximately $1 million) and total cash flow for the year reaching $22.4 million, which exceeded budget by about $6 million. Operating revenues for 2025 were $49.6 million, setting a new record. Navigation updates detailed efforts to acquire easements (12A and 12B), the US Army Corps of Engineers rebuilding Disposal Area H, and ongoing dredging contracts, including work on the bar channel and miles 17 to 36. Notably, the approval of CWPPRA cycles six and seven will deposit dredge material into the Sabine National Wildlife Refuge for marsh creation, avoiding the use of upland disposal sites. Operations reported recent cargo activity including aluminum hydrate, cement, piling, limestone, and bulk rice, with significant future schedules confirmed. The Engineer and Maintenance report detailed planning for the next maintenance dredging cycle and the progress of the Industrial Canal redevelopment project, which has completed substantial demolition and bulkhead installation. Preparations for an approaching storm, including reviewing the freeze protection plan, were also noted.

The meeting addressed several agenda items following public comment procedures. Key discussions included authorizing an addendum to extend the real estate lease option agreement for Lake Charles Methanol LLC until July 31, 2022, which involved updates on equity commitment from I Squared and DOE support. The board also addressed a servitude agreement with Entergy concerning an eight-acre footprint for a substation and transmission line, involving a one-time payment of $258,000 and releasing acreage from the Lake Charles LNG lease. Furthermore, the strategic master development plan for the harbor terminal district was approved, leading to discussions about pursuing wood chip and wood pellet business, as well as clear span warehouse construction to attract new cargo. Another submission authorized entering into a Port Construction and Development Priority for Assistance agreement with the Louisiana DOTD to demolish smaller back warehouses (City Docks 8 through 14) and construct a new clear span warehouse. Finally, authorization was sought for a Guaranteed Maximum Price contract with Bo Brothers Construction LLC for the rehabilitation of Berths 2 and 3 at City Docks, estimated at $32.1 million.

The regular board meeting addressed several items, including the approval of the February 21, 2022, regular meeting minutes and the March 16, 2022, special meeting minutes. Key discussions involved authorizing a cooperative endeavor agreement with the Calcasieu Parish Community Communications District (E911) for aerial photography, costing the District $50,000. The board also approved a bid for the front gate laydown yard and city docks project, which included funding for a 40,000 square foot tension fabric building, with specific contingency discussions regarding soil conditions. Additionally, authorization was sought for a change order to a contract with Keylink Construction for asbestos removal in Shed 7 during the building and roof port project, requiring a $200,000 change order. The procurement of a new Hyundai HL980a wheel loader for Bulk Terminal One operations was approved, replacing an aging unit. Further actions included authorizing the purchase of a new Caterpillar D3 dozer for Bulk Terminal Number One operations, and approving a five-year lease agreement with SIBO Marine for modular office space at City Docks, necessitated by damage from Hurricane Laura to their previous location. Finally, the board sought approval to negotiate and execute documents to acquire approximately 69 acres of land on Elliott Road from the Warren Morin family, noting the proposed acquisition price was based on an industrial appraisal, and approved responses to the Louisiana Compliance Questionnaire required by law.

The key discussion topics included the approval of the November 21, 2022, regular meeting minutes. The board unanimously approved an amendment to the agenda to include authorizing the Executive Director to approve submissions from J.J Flanagan and Lake Charles Stevedore companies prior to December 31st, 2022, subject to documentation requirements. The board also approved Submission 2022-061, establishing the regular board meeting dates for the following year (2023). Approvals were granted for revisions to Tariff 013 (Submission 2022-062) to align dockage rates and security surcharge rates with the Gulf Seashore Marine Terminal conference rates for 2023, and to increase rates for TWIC escort service and Seafarers Center charges. Authorization was granted for an agreement with River West for owner representative and inspection services for Fiscal Year 2023 capital and repair projects, noted as largely reimbursable through FEMA due to hurricane recovery efforts. The 2023 operating, non-operating, and capital budgets were adopted (Submission 2022-066), detailing anticipated revenue increases (primarily vessel/cargo), expense increases (partially reimbursable expenses related to hurricanes and the Fornette Street property cleanup), depreciation increases, and a favorable net cash flow projection, while noting significant capital spending planned, heavily sourced from non-port funds like FEMA and SWLA Recovery Fund. Financial briefings for November 2022 highlighted strong revenue favorable to budget, driven by Petcoke and Bay Rider performance, though expenses were slightly unfavorable due to high tonnage and non-operating expenses related to the first payment for Port Wonder projects and equipment write-offs. The status of FEMA projects was also discussed, noting the obligation of funds for the back warehouses demolition and reconstruction project.

The meeting commenced with the invocation and pledge of allegiance, introducing new commissioners. Key discussions involved the authorization to accept the lowest bid from Alpha Palma LLC for the BT1 storage expansion project, which includes adding wind fences for dust mitigation, at a cost of $9.5 million plus contingency. This required amending the 2023 capital budget and subsequently adjusting the engineering service fee for Duhon and Pleasant Consulting Engineers due to the increased project cost. Another submission involved increasing the engineering services fee for Meyer and Associates Inc. for the City Docks Rail Crossing Rehabilitation due to higher bid amounts than initially budgeted. A detailed financial briefing for the month ended August 31, 2023, noted lower-than-budgeted tonnages and higher expenses, resulting in a slight EBITDA loss but positive cash flow. Discussions also covered significant changes in receivables and liabilities related to ongoing FEMA/GOSUP projects and insurance premiums. Furthermore, an extensive explanation was provided regarding the "begging for bucks" process to secure funding from the Corps of Engineers for channel maintenance and construction, including details on the Public-Private Partnership (P3) funding mechanism for beneficial use projects. Finally, litigation concerning BOEM regulations for the new leased area of the original rice whale restrictions was briefly addressed.