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07 11, 2012 by The Town Talk
The city of Alexandria will pursue plans to build a natural gas pipeline at a cost of more than $7 million.
Mike Marcotte, director of the Utility Department, on Tuesday gave City Council members on the Utility Committee two options on plans to reduce the costs of purchasing and transmitting natural gas.
In one, the city could contract with one of three other suppliers who expressed interest and had numbers that would also save money, though not nearly as much. They would continue to deliver the natural gas through the existing pipeline which belongs to Crosstex. Crosstex charges the city, Marcotte said, about $500,000 a year in transportation fees.
The other recommends that the city construct an interconnect and begin purchasing natural gas directly from the producer. This option avoids transportation charges and lets the city negotiate directly with a supplier. Until recently, the Louisiana Municipal Gas Association had been negotiating on behalf of the city.
Building the pipeline will cost about $7.3 million, Marcotte said, and will save nearly a half-million dollars each year.
Marcotte recommended that the city pursue constructing of a pipeline and contracting with natural gas supplier Enterprise/Acadian.
"Which would you choose?" Councilman Roosevelt Johnson asked.
"I think we owe it to the citizens to get as much savings as we can," Marcotte said.
The Utility Committee gave Marcotte the go-ahead to negotiate with Enterprise/Acadian with a caveat that he will see if he can get a better deal from one of the other companies and report back.
Also Tuesday, Andrew Lemoine, a graduate of Holy Savior Menard High School, who will be attending Tulane University in the fall, was recognized by the council and given the 2012 Legislative Youth Advisory Council Leadership Award for Congressional District 5 for his outstanding leadership while at Menard. Rep. Terry Brown, who represents District 5, was on hand to present the award.
In the regular meeting the City Council also:
» Adopted an ordinance authorizing the mayor to enter into a cooperative endeavor agreement with Alexandria Dixie Girls Softball Program Inc. for Dixie Sweeties, Darlings and Ponytail State Tournament to be held July 13-17.
» Adopted an ordinance authorizing the mayor to enter into a cooperative endeavor agreement with District 3 Little League/Alexandria Little League for Big League Baseball Regional Tournament to be held July 13-17.
» Adopted an ordinance authorizing the mayor to accept the low bid submitted for liquid chlorine for one-ton cylinders.
» Adopted an ordinance authorizing the mayor to accept the low bid submitted for Toria Drive Extension for Tot Drive to Ragan Drive.
» Adopted an ordinance authorizing the mayor to accept the low bid submitted for Cooling Tower No. 3 west wall repairs.
» Adopted an ordinance authorizing the mayor to renew the existing contract with Rylee Contracting for annual requirements contract for water and wastewater for an additional year.
» Adopted an ordinance authorizing the mayor to accept the quote received from Garret & Son for transformer repairs for pole mount and pad mount transformers for the Electric Distribution Department.
» Adopted an ordinance authorizing the mayor to accept and execute Change Order No. 1 for Central Louisiana Business Incubator kitchen build-out Phase II project.
» Adopted an ordinance authorizing the mayor to enter into a professional services agreement with Karen Carter Peterson of Davillier Law Group.
» Adopted an ordinance authorizing revocation of an unimproved dead end portion of the right of way of Willow Street which runs northerly from Hill Street between Square 13 and Square 14 of the Hill Addition.
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