City seeks $7.2 billion NGDISM grant to replace aging high‑pressure gas mains; Pan American recommended as consultant

The city’s director told the A&E selection committee that the city has applied for the National Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant and listed the request as $7,200,000,000 to address high‑pressure gas infrastructure in zones 19 and 20, areas the record describes roughly as Bayou Rapides, Texas Avenue, Georgia’s Lane and Hinton Bayou. The director said the mains in the affected area date to the 1950s and "it's due for replacement." (Director)

The director said the grant is administered by the Pipeline and Hazardous Materials Safety Administration and that, while PHMSA will reimburse 100% of engineering costs, the city must front payments and then seek reimbursement. "They pay a 100% even the engineering cost but we have to pay the engineer first ... and then they reimburse us back," the director said. He said the city would need a consultant to help secure and manage the grant if awarded. (Director)

Committee members heard an estimate of roughly 17 miles of pipeline targeted for replacement, converting steel mains to polyethylene pipe. The director also described two priority requests listed in the application: gas zone 19 was recorded as 3,550,000 and gas zone 20 appears in the transcript as "3 0.6, 5,000,000"; the director said the city might receive one or both awards. The record contains that budget language verbatim; the city should confirm exact priority amounts in the grant application materials. (Director)

On the recommendation of staff, the committee discussed selecting Pan American to assist with the grant application and management. The director noted Pan American’s familiarity with PHMSA grants and submittal and reimbursement requirements and recommended the company for selection. A committee member moved to recommend Pan American; another member seconded and the chair moved to approve the recommendation. The committee proceeded to approve that recommendation. (Councilmember; Chair/President)

What happens next: If the city is awarded NGDISM funds, staff said the city would need to front engineering and related costs and then seek reimbursement from PHMSA. Council members asked staff to track requests from residents in Shenandoah and Horseshoe Drive who have asked about gas line extensions, and the director asked for potential customer lists to analyze capital cost and payback before pursuing extensions.

The committee approved recommending Pan American as the consultant and closed that item; the grant application remains under review by federal administrators.