Q: “I want to know why David Kronsteiner, president of the International Port of Coos Bay does not recuse himself from bidding on the port's construction projects. I noticed West Coast Contractors, owned and operated by Mr. Kronsteiner, was awarded the Charleston Boat Ramp project. Wouldn't this be considered a conflict of interest? How could this be fair to other bidders who may not be privy to months of pre-planning and construction cost estimates the port must have engaged in to determine the scope of the project?”

A: The short answer is Kronsteiner did recuse himself on the project in question.

The Oregon International Port of Coos Bay's director of communications and freight mobility, Martin Callery, responds:

In Oregon, public officials are bound by Government Standards and Practices law, which is clearly defined in the Oregon Revised Statutes (ORS). ORS Chapter 244 delineates guidelines by which public officials are expected to conduct themselves. These statutes provide unambiguous direction for public officials on the issue of “conflict of interest” and related topics.

The statutes exist to protect the public from unethical activities by public officials, but also to protect the rights of individuals who serve in a public official role providing service to the community. In many areas it is often civic and business leaders who are willing to serve in a public official role and the statutes provide protection for all parties, while still allowing a person to pursue normal business activities.

Additionally, Commissioners for the Oregon International Port of Coos Bay may seek the advice of Port counsel on these types of issues, which they have done when appropriate.

The requirements of Government Standards and Practices law do not deny a person or business the same rights afforded to persons who are not public officials.

Two specific subsections of Chapter 244 deal with “conflict of interest.” ORS 244.020(1) addresses “Actual conflict of interest,” while ORS 244.020(14) defines “Potential conflict of interest.” Additionally, the definition of “public official” is at ORS 244.020(15). Related statutes are ORS 244.020(2) “Business” and ORS 244.040/ORS 244.040(1) “Code of ethics; prohibited actions; honoria.” The ORS is available via the internet at http://www.leg.state .or.us/ors/.

In reference to the Charleston Marina launch ramp rehabilitation project, these are the facts related to all engineering, bidding and awarding of the construction contract.

n Port staff had proposed upgrade and rehabilitation of the Charleston Marina launch ramp since the mid-1990s and had worked with the Oregon State Marine Board to qualify the project for a Marine Board grant since approximately 1999.

n All project design and engineering documents were prepared and provided by the Oregon State Marine Board staff. The Marine Board also provides project cost estimates, but they are not disclosed until official project bid opening.

n The bid package, with all drawings and specifications, was provided directly to Port staff by the Oregon State Marine Board staff. Port staff then distributes the bid package as requested to all interested parties after the project is advertised.

n All change orders were reviewed and approved by Oregon State Marine Board staff prior to any Port Commission action.

n Final inspection and approval of the finished launch ramp project was conducted by Oregon State Marine Board staff.

The Board of Commissioners of the Oregon International Port of Coos Bay had the bid award as an agenda item for their Nov. 17, 2005, meeting. Commissioners David Kronsteiner, Brady Scott and Jerry Hampel were in attendance. Commissioner Caddy McKeown participated in the meeting via phone. Commissioner Dan Smith had an excused absence due to work commitments out of town.

Commissioner Kronsteiner recused himself from any discussion or action involving the launch ramp bid award since the company he is president of, West Coast Contractors, had submitted a bid for the project.

Port staff provided a report from the project bid opening and listed the bidding firms and their bid prices. Upon a motion by Commissioner Scott, with a second by Commissioner Hampel, Commissioners Scott, Hampel and McKeown approved the staff recommendation for award of the project to the low bidder; West Coast Contractors.

The project bids were as follows:

n Laskey-Clifton Corp. $635,868

n West Coast Contractors $576,716

n Knutson Towboat Co. $635,500

n Donald W. Thompson, Inc. $690,200

The project cost estimate provided by the Oregon State Marine Board was in the range of $500,000 to $750,000. The funding committed from all sources was $648,600, coming from the Oregon State Marine Board (state funds), $286,000; Oregon Department of Land Conservation & Development (Coastal Management Program 306A/federal funds), $50,000; Oregon Department of Fish & Wildlife (federal funds), $200,000; Oregon International Port of Coos Bay (local funds), $112,600.

Final project cost was $598,383, including a number of change orders reviewed and approved by the Oregon State Marine Board staff and the Port's Board of Commissioners. Commissioner Kronsteiner recused himself from any discussion or action taken by the Board of Commissioners regarding the change orders.