Thank you to Jody McCaffree for providing this update on today’s Port of Coos Bay commission meeting.

What was approved today at the Port Commission Meeting:

Scoville & Reiber CPA firm will start overseeing the accounting practices of the Port of Coos Bay. They will have to get another firm then to do the auditing.

$163,600 for Conceptual Alternative Study for the Development of a Bulk Export Facility on Coos Bay’s North Spit to be done by Parsons Brinckerhoff

$240,600 for a feasibility study of constructing a regional wastewater treatment and bio-solids management facility on the North Spit. This will come out of CCURA funds and was approved by the CCURA on Feb 25th 2011.

$37,000 for a change order for railroad brush clearing project. (This may have already been allocated for – wasn’t clear on that one.)

$600,000 for HDR Engineering Bridge Inspection and Rehabilitation Scope of Work Task Order #8 which includes inspection and load rating of some of the Railroad bridges and and cursory inspection of remaining bridges.

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Past Consultant Fees discussed today during the Port Commissions public comment time by myself:

David Evans and Associates – Sept 20, 2007

Channel Deepening and Widening – Port allocated $1,051,950 to begin studying the Bay and also $102,100 paid by Jordan Cove for Slip work.

Port made the Marine Slip studies to be 100% funded by Jordan Cove as the Port was dropping the cargo facility at that time but said they could pick it up and buy back in later. The Port, in their contracts with Jordan Cove, has the option of paying for 15% of the terminal in the event that they choose to develop one. They have the option of doing that on a pay as you go or they have the option of buying back in whenever they get ready to develop the project.

Their estimate was that this analysis by David Evans and Associates would be completed between March and April of 2008. Do not recall there ever being a discussion about it or that it was completed.

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Don Breazeale and Associates, Inc – August 25, 2008

Port Commission approved contract not to exceed $50,000 in Oct 16, 2008. Approved additional $26,462.50. – Grand total $76,462.50.

[No public comment was allowed at this meeting]

Mr. Breazeale gave an oral general report at the Oct meeting. Never did hear about a written one being forthcoming.

Oct Meeting Mr. Breazeale report stated:

DBA listed the following as potential advantages which apply to this project:

• Low cost land available for terminal development

• Forty five minutes from deep water to berth

• One day closer sailing from Far East than ports in Southern California

• Carriers will be able to eliminate one vessel from a string and fuel savings on that alone would be $150,000 per sailing a day.

• No accessorial charges such as those being levied in California which could escalate charges to approximately $400-$500 per container.

• Landside property available on dock intermodal which would possibly allow operator to stage longer trains.

• An opportunity to create collaborative relationship with BNSF and UPRR which may lead to access to northern and southern tiers provided it creates an opportunity for both Class I railroads to derive a benefit from such a collaborative approach

• Less militant labor anticipated

• No congestion

• A unique opportunity to create a secure system consistent with the aims of Homeland Security and US Customs and Border Patrol

Given the facts and recommendations above, DBA further recommends:

• Move forward with the rail acquisition

• Develop the Feasibility Study/Project Analysis and as a outflow from that Study develop a realistic Business and Strategic Plan, Implementation Plan and Marketing and Sales Plan

• Proceed with the dredging initiative now and use 8500 (max 10,000) TEU vessels as the norm; and

• Correspondingly develop Funding Initiatives appropriate to the Phased strategy to be developed.

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HDR Engineering

April 7, 2009 Port meeting – Amount not to exceed $200,000;

Port Commission approved clearing maintenance on the rail line; and approved inner fund loan from the Property Reserve Fund to the Rail Fund, in an amount not to exceed $200,000.

HDR had submitted two task order items.

* Task Order #1 – Develop overall work plan for the rehabilitation of the line with the primary goal to be restoration of rail service as quickly as possible. It will include concept estimates of probable costs and will require about four days of track and structure assessments and two days on tunnels. The cost is $30,000 for this task order. It will be the guideline that leads us through the rest of the rehabilitation of the line and hopefully improvements to the infrastructure.

* Task #2 is inspection and preparations of design and contract documents for the repair to tunnels 13, 15 and 18. Those were the three tunnels that were sighted by FRA as no longer meeting the FRA safety standards for rail operations. This task order is required for us to immediately expedite the use of the $2.5 million we received through some Federal Stimulus funding from the OTC. Task Order #2 is $140,000.

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Bruce Facility Planning Consultants, LLC – Industrial Cluster Study – Combined cost $40,000

Oct 1, 2009

This company was to consider the area’s general strengths and weaknesses, as well as what industries might find it convenient to build next to an LNG terminal.

Three areas were identified as possible targets for secondary development:

1. Maritime Commerce, focusing on economies of scale and development of common infrastructure.

2. Financial capacity creating opportunity for development of infrastructure on the North Spit in partnership with CC Urban Renewal Agency.

3. Industrial clustering around LNG facility with symbiotic development

“…Mr. Bishop would like to have a study, paid for by the Special Projects Fund directly from profit of the LNG agreements, done by consultant Mr. Bruce of Bruce Facility Planning Consultants, LLC. He will work to identify specific target industries for the Port and their partners to pursue additional economic development opportunities. The base cost of the study is $15,000 for a general overview of the community, its strengths and weaknesses for economic development.

The second element of this study of $25,000 would be to look specifically at the Jordon Cove Energy project and identify specific target industries for a combined cost of $40,000….”

This study has never come back to the Port Commission agenda. Here is their commission packet for their Oct 1, 2009 meeting that gives details of what they approved. (9MB)

Bruce Facility Planning Consultants, LLC Information in Commissioners packet
( Electronic Pages 53 -83 )

This study never has come back to the Port Commission. I asked if the Cluster Study was done at the Jan 2010 Port meeting and was told at that time that it wasn’t completed.