PHA Commission Delivers Bayport, Security, Capital Improvement and Community Partnership Matters


HOUSTON, May 24, 2004 (PRIMEZONE) -- The Port of Houston Authority (PHA) commission approved several recommendations involving contract awards, bids and proposals, professional services and general administrative and operational matters during its meeting on Monday, May 24, 2004. Chairman Jim Edmonds presided over the public meeting.

Bayport Matters

(Agenda item G7) The commission approved a recommendation to award a $62 million contract to Zachry Construction Corporation for wharf construction and dredging at Phase 1A of the Bayport Container and Cruise Terminal. Separately, Zachry is also involved in negotiations with PHA involving an estimated $37 million contract for container yard construction at Bayport. Pending the successful outcome of negotiations, the latter contract award is expected to be considered by the commission at a future meeting.

(Agenda item G8) The commission also approved a recommendation to award a $30.6 million contract to Shanghai Zhenhua Port Machinery Co., Ltd. for the purchase of four dockside electric container cranes for the Bayport terminal. The cranes will be manufactured, assembled and tested in the People's Republic of China and a separate contract will be required for third-party inspection services.

(Agenda item L1) The commission approved a recommendation to evaluate and rank qualifications for consideration of a contract for concrete testing at Bayport Phase 1A. Paradigm Consultants received the commission's top ranking, followed by HTS, Inc. Consultants and Fugro Consultants LP, respectively.

(Agenda items L2 and L3) The commission pulled from the agenda two recommendations to evaluate and rank firms that had submitted their qualifications for consideration of contract awards for soil materials and asphalt testing and verification testing. Pending further review by PHA staff, the commission may evaluate and rank qualifications for the two contract awards at a later date.

(Agenda item K17) The commissioners authorized PHA to issue a new request for qualifications (RFQ) for design/build services for the Bayport mitigation project along Memorial Tract on Red Bluff Road. All previous RFQs and competitive sealed proposals submitted for consideration on this project were rejected and the process will be repeated from the beginning.

(Agenda item M4) The commission approved a recommendation to authorize the PHA to enter into an inter-governmental agreement for the City of Shoreacres to provide security services at Bayport. The estimated $20,188 annual cost for the city's services will be paid by PHA in equal quarterly installments of $5,047 beginning on July 1, 2004.

Last week, the PHA welcomed 98th District Court Judge W. Jeanne Meurer's decision to dismiss the lawsuit that was filed by the City of Shoreacres and other groups that challenged the PHA's permit for the Bayport terminal. The state court granted the PHA's motion to dismiss, which pointed out that the U.S. Army Corps of Engineers received the Texas Commission on Environmental Quality's certification prior to issuing its permit and, having done so, it is not proper to now try to attack the Corps' permit by alleging errors in the TCEQ process.

"Gratified to have prevailed in this important legal matter, we are now looking forward to June 1 when we will begin issuing purchase orders on the Bayport project and preparing for the groundbreaking soon afterward," stated Chairman Edmonds. "As many as 16 contracts totaling more than $180 million will be awarded during the first part of the Bayport project. More than half of that amount is expected to be packaged in contracts eligible for our Small Business Development Program, resulting in as much as 35 percent participation by qualified small businesses."

Edmonds added, "We also continue to look forward to working with the local communities and being a good neighbor throughout the development and operation of the Bayport terminal."

Security Matters

The commission approved three recommendations related to PHA's participation in a federally mandated cargo screening project aimed at preventing nuclear and radiological materials from being imported into the U.S. Specifically, the goal of the U.S. Customs and Border Protection Service's Radiation Portal Monitoring Project is to screen containers. The recommendations that were approved by the PHA commission involve:


  --  (Agenda item M1) Execution of a memorandum of agreement
      with the U.S. Customs and Border Protection Service;

  --  (Agenda item M2) Approval of a cost reimbursement agreement
      with Battelle Memorial Institute, a third party federal
      contractor;

  --  (Agenda item G12) Authority to negotiate and execute
      change orders totaling an estimated $4 million for Four
      Season Development Co., Infrastructure Services, Inc.,
      Reytec Construction Resources, State Construction, L.P.,
      and TRC-ECON Capital, L.P., to install radiation portal
      monitors at PHA terminals.

(Agenda item M5) In another security matter, the commission approved a recommendation to authorize PHA to enter into an inter-governmental agreement for the City of Morgan's Point to provide security services at PHA's Barbours Cut Container Terminal. PHA will pay the $24,000 annual cost for the city's services in monthly installments of $2,000 beginning on June 1, 2004.

Capital Improvement Matters

(Agenda item G6) The commission approved a recommendation to award an estimated $1.1 million construction contract to Forde Construction Company, Inc. for the construction of the sound wall for Phase 1 of the entry/exit pre-check and inspection facilities at PHA's Barbours Cut terminal. Last month, the commission had evaluated the three top competitive sealed proposals for the project and authorized PHA to negotiate a contract with Forde, a firm that was among the first to enroll in PHA's Small Business Development Program and recently graduated. As the prime contractor for the sound wall construction contract, Forde will use sub-contractors for approximately 35.8 percent of the work on the project.

Community Partnerships

(Agenda item M7) The commission approved a recommendation to enter into a subscription service agreement with the Bay Area Houston Economic Partnership. The non-profit organization previously known as the Clear Lake Area Economic Development Foundation will engage in economic development program activities aimed at promoting the development and enhancement of port facilities and operations. The annual fee of $25,000 per year for a two-year period will be paid by PHA in quarterly installments of $6,250.

(Agenda item M 11) The commission also approved a contract commissioning the ArtworkZ Public Art & Design Program at the Museum of Cultural Arts Houston (MOCAH) to create a tile mosaic mural at the PHA Visitor's Center Pavilion. The $51,506 project will celebrate, stimulate and document the port's historical legacy and economic spirit over its 90-year history. MOCAH, a 501(c)(3) non-profit organization, will seek partnerships with local youth organizations, local and international artists, the WorkSource summer job training program and other diverse stakeholders to become active participants in the design, development and creation of the project.

The next PHA commission meeting is scheduled for Monday, June 28, 2004 beginning at 2 p.m. in the 4th floor board room at the PHA Executive Office Building located at 111 East Loop North (Exit 29 off Loop 610) in Houston. The meeting is open to the public.

The Port of Houston Authority owns and operates the public facilities located along the Port of Houston, the 25-mile long complex of diversified public and private facilities designed for handling general cargo, containers, grain and other dry bulk materials, project and heavy lift cargo, and other types of cargo. Each year, more than 6,600 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and sixth largest in the world. The Port Authority plays a vital role in ensuring navigational safety along the Houston Ship Channel, which has been instrumental in Houston's development as a center of international trade. The Barbours Cut Container Terminal and Central Maintenance Facility are the first of any U.S. port facilities to develop and implement an innovative Environmental Management System that meets the rigorous standards of ISO 14001. Additionally, the port is an approved delivery point for Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar & Cocoa Exchange. For more information, please visit www.portofhouston.com

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