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July 11, 2012

Council approves Osage Road project bids

Joshua Kellogg The Duncan Banner

DUNCAN — Bids were approved for the Osage Road improvement project, allowing work to begin while action on a fuel cost adjustment increase that would affect customers was delayed until a later date.

Both measures were taken during the Duncan City Council meeting Tuesday night on the separate issues.

City Manager Jim Frieda said he hopes to pursue an new rate study for the City of Duncan to help accurately reflect the power consumption of the municipality.

The Oklahoma Municipal Power Authority and the South west Power Authority provides electricity to Duncan Power customers and with the cost rising for fuel to power generators and lack of available hydropower, the city is considering increasing the cost to the customer.

So far, this cost is something the city has been absorbing.

“In fairness to the consumer, we want to hold those increases down to a minimum,” Frieda said. “It may mean that we have to make some sacrifices to do that.”

The electricity supplied to Duncan from the OMPA comes from coal generation and gas generating plants, with coal accounting for two-thirds and gas accounting for one-third.

Frieda explained the OMPA locked in a rate for natural gas on a four year contract, which is twice the amount natural gas costs on the market.

This means OMPA is not getting break on the lower rate and the cost is higher than other electric companies.

Frieda said the city is pursuing a new rate study with the OMPA because of the unique situation Duncan operates in.

“The fact that we have competition makes us different than any other municipality in the study,” Frieda said.

The fuel cost adjustment increase will be addressed at the first meeting in August.

Alternate bids for the Osage Road improvement project were awarded to WW Builders for five parts, at an estimated $1,588,781.25.

The project was previously delayed after the city changed its code to allow usage of PVC pipe for water main construction. The area was in extensive use by a Halliburton Services site where private water wells were contaminated with the release of the toxic salt mineral perchlorate situation into the ground water system.

The five parts of the project include new 12-inch water mains from: (1) Osage Road from U.S. Highway 81 to Union Pacific Railroad; (2) Fifth Street from Camelback Road to Osage Road; (3) Osage Road from Fifth Street to east of Day Street; (4) U.S. Highway 81 from Osage Road extending north; (5) Camelback Road from Fifth Street, extending east.

To help adjust the ductile iron pipes transition to the pvc to be used in the project, the council members approved the bids for tapping clamps to American Waterworks for $12,603.16 and a tapping machine to Pioneer Supply for $6,161.00.

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