Owensboro Riverport Authority | 1771 River Road | P.O. Box 21955 | Owensboro, Kentucky 42304
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Riverport revenues rise

October 27, 2012

By Steve Vied


The Owensboro Riverport Authority achieved almost $300,000 in net income through the first quarter of the 2012-13 fiscal year on revenue of $1.5 million, even though profit in September was slightly below budget, the port's board was told Friday.

For the quarter, revenue beat projections in four of five income categories — warehouse handling, warehouse storage, terminal handling and terminal storage — while income from leases was only slightly below budget. Overall revenue beat the budget by 5.4 percent, or $81,899. Revenues were lower than expected for metals and grain, but those were offset by higher warehousing and handling revenue.

In September, revenue was strong except for terminal handling. Less aluminum was received than anticipated, a port official said, resulting in revenue of $174,303, about $67,000 below budget.

In other business, Bryan Reynolds, the riverport board's attorney, reported that state regulators are agreeable to the early removal of groundwater monitoring wells at a waste pile on the east side of the former Green River Steel property on U.S. 60 East, owned by the riverport. Eliminating the wells should make it easier to sell the property, Reynolds said. A 45-day comment period must pass before the wells can be capped, he said.

Also Tuesday, the board discussed whether the port could favor local bidders when awarding contracts. Reynolds said flexibility in awarding bids is possible, but warned that a "disappointed bidder" could claim illegal fraud or collusion on the part of the riverport if the lowest bid was rejected for a contract.

"Your duty is to the riverport, which requires you to get the best deal for the riverport," Reynolds told the board members.

Rod Keugel, the riverport board's chairman, said the board brought the matter up because recently a local company was not granted a sizable contract with the riverport when a nonlocal company's bid was slightly lower.

Spending money with local companies helps the local economy, Kuegel said.

"We just wanted to know if we could, and I think the answer is yes," Kuegel said. "I don't know if we will consider it."

No action to favor local bidders was taken by the board. The riverport is not bound by the state model procurement code, Reynolds said, which has strict procedures for contract awards and purchasing. The riverport is subject to other states laws pertaining to contract awards, however, he said.

Steve Vied, 691-7297, svied@messenger-inquirer.com


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