Council reviews $64,000 proposal for 400 new meters; questions whether bids need to be accepted
Although no action was taken, the Century Council listened as City Manager Vernon Prather recommended the purchase of natural gas meters for about $64,000 and gave an update on the town's upcoming reports.
Prather said the town had replaced about 200 residential meters and 15 commercial meters in late 2019 and 2020. He said the town needs about 400 more meters to finish replacing them all.
The town is a member of the Florida Gas Utilities Association (FGUA), which contacted several meter firms for quotes. Prather recommended Precision Meter Repair's proposal for $160 to change out each meter, for a total of about $64,000.
He said they can do about 10 or 12 meters per day, which will take several months. The company's quote included corrosion maintenance, new regulators if needed, installation of test fittings for more accurate calibration and more with the installation. The company would start the change out in about three weeks, he said.
Prather said the gas fund does not have the funds to pay for the meters, but Century CPA Robert Hudson did say this project would qualify for Local Option Sales Tax (LOST) funds.
“Not that LOST is a bottomless bucket of money,” said Prather. “As of Jan. 31, it had a little more than a million dollars. We withdrew $96,189 for the natural gas debt service payments, we're planning to spend about $94,000 for water and sewer debt service for 2020, which leaves $824,000 remaining. If you authorize the expenditure of $64,000, you'll have a balance of $760,000 left in the LOST fund.”
Council President Ann Brooks expressed concern that the quote included lodging and if they could find a company a little closer. Prather said other quotes for each meter were $1,000 a meter and $400 a meter, so that's why the $160 a meter looked like a better deal, especially for such a small order of 400.
He said other companies did not express interest in coming to the town due to the small size of the job.
Brooks also asked Prather if he thought the town was required to bid the job out. Prather said he did not and that FGUA had helped represent the town, help with inspections and that it was integral to the town's gas operations.
Councilwoman Sandra McMurray Jackson expressed concern about permits that were not covered according to the proposal. Prather gave the example if they had to remove a big azalea bush, it would have to be covered by the town, although he doubted it would be more than a minimal cost. Permits would only be necessary if they were working inside a home.
Councilman Luis Gomez asked about the number of meters purchased and what the town will actually be paying for. Prather said residential meters are about $80 each usually and commercial meters are much more, around $800.
Gomez asked if there will be someone in the office to work in correspondence with meters being installed out in the field, to prevent the same problems the town has faced in the past.
Prather said that he, town employees Billy Johnson and Joe Brown and the contractor will work together to get the system installed smoothly.
“We are going to be working off a work-order system,” said Prather. “We will start in book one and work in a geographical area, not all over town, so it's a more organized effort.”
Gomez questioned any possible backlash about not bidding the job out.
“Whatever has to be done on paper to cover us,” said Gomez. “That's what I would like to see done.”
Brooks said the council does not want to get in trouble for not bidding the job out and said she hoped this company, Precision Meter Repair, would put in a bid. Prather said he would check and see if the town is required to bid the job out.
Prather gave several town infrastructure updates in the first quarter of the year. The Florida Rural Water began their work on the asset management plan for the Century water system and were in Century for four days last week; the town is working on its Northwest Florida Water Management District permit renewal and reports; the town is working on the stormwater MS4 annual report; the town has two natural gas reports to file by March 15; the town has a hazardous materials report that is due; the town is scheduled for a natural gas inspection by the Public Service Commission at the end of March; and a kick-off meeting with the USDA grant application was held last week.
In other business, the council:
-approved the purchase of a $125 ad in the Academic All-Star Club program for the Atmore Rotary Club
The next Century Council meeting will be held at 7 p.m., Monday, March 16 at Century Town Hall.