Council OKs gas fund transfer

The Century Council approved the transfer of $36,030 to the town's gas operating account at an emergency meeting last Thursday following discussion of a discrepancy of what the town is paying for gas and taking in as gas revenue.

The total amount of $36,030 to be transferred will be $25,000 from special revenue and $11,030 from council-designated reserve funds.

“The actual cost of gas that BP sent us a bill for August versus September went up in September by almost $1,500, but our billing went down about the same amount,” said Robert Hudson. “So we bill less and the gas cost us more. I've looked at the price of natural gas for that period and it just didn't vary to account for that. We've got something not quite right in respect to that.”

Hudson said the council needed to move some money to the gas fund and for the month of November, which he recommended should be approved as needed instead of a blanket approval for all.

Hudson said he compared the gas bill for Century Correctional Facility in August and September of 2014 through 2017, and the bill in 2017 was practically cut in half in May 2017, when the new gas meter was installed there.

Gas Superintendent Wally Kellett told the council the index he went back to gas usage and billing records before 2015 when he came onboard to work for the town and noticed the trend then.

“You could see when it was installed, something was bad wrong,” said Kellett. “Instead of that being caught for whatever reason, it wasn't, but we looked at it recently and the actual index of the meter was sticking, it was not working properly.”

Kellet said that meter has been temporarily repaired until the new meter, which has been ordered, can be installed. He hopes that will take care of the bill issue.

“The numbers don't lie,” said Kellet. “We just have no idea of knowing is that actual or not, until we get that new gate meter in. That will give us a great guide to make sure we are being billed properly. Right now we just have to go by their word.”

Hudson said that the conversions between BP and the town's gas billing units is different, although not by much.

“It's almost a one for one, but not quite,” said Hudson.

Kellett said new meters have been ordered that will feature a hand-held meter reading device with special software that will capture your total customer base, all kinds of reads, such as skipped reads, high reads, low reads and zero consumption reads. Currently, there is no checking system to account for the town's purchase and billing, he said. Kellett said as gas meters age, they slow down over time and get less accurate, due to pressure changes and other reasons. Residential meters for Century have been ordered and are scheduled to arrive in February and Kellett said town employees will install them.

“Once we get this thing turned around and we are able to have some excess, the council can designate some additional funds to go into reserve to help fund the next we have to have new meters in ten or twelve years or whenever,” said Hudson.

Century Mayor Henry Hawkins said he and the attorney met with Florida Gas Utilities (FGU) and that FGU will put a gas tap on Highway 29 on the new pipeline and the town will keep Gulf South as a reserve so they can track the gas intake and output better.

“We will get our gas cheaper,” said Hawkins. “Because they buy it in bulk quantities so whatever we're paying now will be cut almost in half. Our gas price should drop next month when a new gate meter station that will be located near Highway 4 that FGU is paying for is installed.”

In a motion made by Councilwoman Sandra Jackson McMurray and seconded by Councilman Gary Riley, the motion carried.