The City of Piedmont could soon begin to see significant savings on the cost of natural gas, following a vote at by the Piedmont City Council.
During Tuesday’s meeting, the officials adopted a resolution authorizing the city’s gas department to purchase natural gas from Southeast Energy Authority at a $0.33 per MMBTU (1 million BTU) below market value.
Water, Gas, and Sewer Manager Byrian Watts said the 30-year deal is all positive for the Piedmont, noting that every 5-7 years, the city would have the option to terminate the deal if the discount was less than $0.23 per MMBTU below market value.
Watts said the city would be required to purchase 80-percent of its natural gas usage, based on a 5-year average, from SEA.
The resolution will allow the city to proceed with the agreement, if it comes to fruition, which according to Watts is extremely likely.
Watts said that other cities also participating in similar deals with SEA include Andalusia, Cordova, and Opp, among others.
The agreement is expected to be finalized in the coming weeks.
Mayor Bill Baker informed the council that a street paving bid previously approved in the amount of $500,000 came in about $258,000 over budget. Revisions to the scope of the project necessary to bring the cost back under $500,000 were approved by city officials.
Baker said that $250,000 is will be covered by grants, costing the city nothing. The rest will be covered by gas tax and county funds.
In other business, City Project Manager, Carl Hinton informed the council that ALDOT has agreed to remove two of the city’s traffic lights at no cost to the city.
Once removed, the intersection of AL Highway 9 and Memorial Drive will become a 4-way stop, while the AL Highway 9 and Ladiga Street intersection will become a 2-way stop, per ALDOT’s recommendation. Hinton said that ALDOT will provide flashing stop signs, also at no charge.
The council agreed to spend $2,000 to replace school crossing signs with flashing lights.
The purchase of a 2021 International “knuckle boom” truck outfitted with a Pac-Mac boom system was approved at a total cost of $153,708.13.
At the request of Fire Chief Mike Ledbetter, equipment taken off of a brush truck was declared surplus to be sold on GovDeals.com.
Bills for payment were approved in the amount of $521,559.49.
The next regular Piedmont City Council Meeting is scheduled for Tuesday, August 4th, immediately following the work session, which is set for 5:30pm.