AGENDA La, Junta, Colorado April 11, 2023 4:00 p.m. Council Chambers Municipal Building 601 Colorado Avenue  REGULAR MEETING BOARD OF UTILITIES COMMISSIONERS  CALL TO ORDER ROLL CALL (City Clerk) Board Members PIA Ayala Bourget Cranson McKenzie Velasquez  Supervisors  Others  MINUTES OF PREVIOUS MEETING (Chairman) Regular Meeting March 14, 2023  CITIZEN PARTICIPATION FOR NON-AGENDA ITEMS ONLY (5-minute time limit per person)  REPORTS  A. ARPA Board (Gary Cranson)  B. Water & Wastewater Treatment (Tom Seaba) C. Electric Department (Bill Jackson) D. Sanitation (Martin Montoya) NEW/BUSINESS A. City Manager's Comments B. Governing Body's Comments  ADJOURN    Subject to approval ati the April 112023 Utilities Board Meeting  BOARD OF UTILITIES COMMISSIONERS - March 14, 2023  CITY OF LA. JUNTA COUNTY OF OTERO STATE OF COLORADO  SS  AF Regular Meeting of the Board of Utilities Commissioners of the City of La Junta, Colorado, was called to order by Chairman Frank McKenzie on Tuesday, March 14, 2023, at 4:00 p.m. in the Council  Chambers of the Municipal Building.  Roll was called and the following Board Members were present:  Present  Joe Ayala, Mayor Mike Bourget, Commissioner Gary Cranson, Vice-Chairman Frank McKenzie, Chairman Paul Velasquez, Council Member  Absent:  none  Also present: Rick Klein, City Manager  Bill Jackson, Asst. City Manager Phil Malouff. Jr., City Attorney Melanie Scofield, City Clerk Paula Mahoney, Admin. Asst. Tom Seaba, Director of Water & Wastewater Martin Montoya, Director of Engineering Edward Vela, City Council Elaine McIntyre, City Council Meghan Yergert, City of La Junta Bret Coates, City ofl La Junta Betty McFarren, RF Gazette  MINUTES OF PREVIOUS MEETING  Chairman McKenzie asked if there were any corrections or additions to the minutes of the Regular Meeting of February 28, 2023. Hearing none, he declared the February 28, 2023 minutes approved as 1. Dav Mikals: Takes care of his mom and aunt who are on Medicare and Medicaid. United Healthcare Advantage Plan provides a "healthy benefits" allowance. The City of La Junta was on the approved 2. Mr. Martinez: Had a water leak and was told to present information to the Board for a possible  published.  CITIZEN PARTICPATION  list but nota any longer. Mr. Klein will have someone look into this matter. discount of his utilities. Mr. Klein will look into this matter as well. A. ARPA Board. Gary Cranson gave the following report:  REPORTS  1, Summary of January 2023 Financial and Operating Statements: During the month of January, revenue from power sales was better than budget by $33,979 (1.5%) and total revenues was better than budget by $46,682. Total cost of goods sold was slightly over budget (0.7%). Purchased power costs are over budget by $57,022 (6.3%). Transmission expenses are under budget by $42,481. Net Revenue from Operations for the month was $476,583. Debt  Service Coverage YTD is 1.34X.    Page 2of6  BOARD OF UTILITIES COMMISSIONERS - March 14, 2023  2. Operating Report: Member Energy sales for January is 2.5% better than budget and about 2.6% better than 2022. All in cost of power to members YTD is $0.0989 per kWh; 1.4% lower 3. Annual Election of Officers: The current slate of officers was reelected for another one-year  than 2020. term.  President - Lorenz Sutherland Vice President - Ron Clodfelter (Las Animas) Treasurer - Gary Cranson Secretary - Arvenia Morris (ARPA)  4. Colorado Energy Office Grid Resiliency Funding: ARPA General Manager briefed the Board on federal and state funding that will become available in 2023. There is approximately $8.5 million in funding from the Department of Energy (DOE) to Colorado with a portion of the funds directed toward rural communities, defined as cities of less than 25,000 population, and counties 5. Financial Modeling 2023-2028: The Board reviewed ARPA's financial modeling for the time period of 2023 through. 2028. Our two largest expense items, power supply and debt service, are fairly well known through this period. Debt service is fixed through the life of the bonds (2043), and 60%-65% of our power supply costs have a contracted rate through 2043. The model also includes renewables and wind generation for the self-supply option of our post-2024 contract. Modeling includes rate decreases beginning in 2025. In addition, the modeling incorporates the  ofl less than 50,00 population. The City should investigate eligibility.  following:  Revenues based on: Power Supply Costs based on:  Budgeted sales for 2023 and remaining flat throughout the modeling period. WAPA-LAP pricing thati includes rate increase of 5% in 2025 and 2027. WAPA-CRSP allocation based on a reduction in Lamar's annual allocation and a Wind pricing based on projected Wind Turbine Generation costs. Addition of renewables for self-supply option in our post-2024 contract. Transmission costs based on an overall annual increase of 4%. A&G expenses based on an average increase of 2.2%-2.4% including:  Rate decreases in 2025, 2026, 2027 totaling about 8%. Contracted rate for supplemental power purchases.  6% rate increase in 2024.  Annual increase of 5% for employee, insurance, travel, office, dues, and City of Lamar settlement, leases, etc., expenses in accordance with their Debt service per the bonding requirements and fixed through the time period.  subscription expenses. Outside legal counsel fixed at $250,000 annually. General counsel annual increase of 3%. contractual requirements.  6. Next Meeting --May 25, 2023 at Otero College in La Junta. B. Water & Wastewater Treatment. Tom Seaba gave the following report:  1. R.O. Plant  Replaced stage 1 permeate flow controller on RO "C" which was fried after a power bump. The replacement quit working after a second power bump a few days later. These were "shelf stock" controllers, older ones that have been previously epairedreconditoned. A tech from Winn-Marion is scheduled for an onsite visit to examine and inspect all connections, controllers, etc. The current controllers in use are outdated, as are the flow tubes. New controllers are $3100. Controller, flow tube, cables are $6105. There are thirteen of these controllers/flow tubes in the plant.    Page 3of6  BOARD OF UTILITIES COMMISSIONERS - March 14, 2023  Routine maintenance performed on air handling units, caustic injectors, emergency lights, chlorine lines, check balls, injectors, and vibration dampeners, pressure transducers, New motor installed on Well #12. The well was put back into service after the bacterio- Checked all SCADA radios. The radio would not transmit to diagnostic computer, then failed transmitting to the plant. Replaced radio in South wellfield using last spare shelf- stock radio. This radio was two years old and out of warranty. Exploring radio Repaired leaks on finished water pumps. Replaced fitting on finish water pump #2 after it  scale inhibitor injectors, and well static levels. logical test came back clear. Changed out all cartridge filters. repatr/replacement options. failed to close. Revised SOP's.  Replaçed mechanical seal and carbon bearing on RO"C".  Meter Reading, building maintenance.  2. Distribution  Repaired a 2-inch water main on North Highway 109. Repaired a 4-inch water main on Cactus Drive.  Replaced service that was leaking at the connection to the main in the 900 block of Replaced service that was leaking at the connection to the main in the 1400 block of After several breaks in succession in the same area, replaced a 12-foot section of pipe in the 1200 block of Grace. Used extended range couplings to allow for movement and  Raton. Belleview. settling.  Installed twenty radio read meters.  Meter reading and utility billing office generated work orders. Treated 23.092 million gallons. Removed 35.01 ft3 of screenings and 39.0f of grit. RO concentrate discharge to plant was 15.458 million gallons. Jetted 8,962 feet of line for emergency calls and monthly areas of concern. Sixteen emergency calls and eighteen manhole locate requests. Ice machine repaired/serviced. Ice is used to cool samples shipped to labs. Service and repair on lab box furnace. This box furnace is used to determine the amount ofnon-combustible: and non-volatile material in as sample. RH Borden complete a demonstration of their acoustic sewer line and manhole inspec- tion system. We are determining a portion of the older sections oft the collection system to use this technology on, including the manholes on the main trunk line running between The crews conducting the North La. Junta bridge repair project will stage and house their office trailer and equipment on the east side of the WWTP grounds for the duration of that  3. Wastewater  1stand 2nd streets to the plant.  project.  Placed rock for erosion control and grounds landscaping. Additional plant, collection system, and grounds maintenance. Safety training concerning fire prevention and emergencies. Cyber-security training concerning social engineering red flags.  4. Other Notables:  Two employees presented at the Girls in the Middle Conference about water quality and The North La Junta Bridge project will begin one lane of traffic operations intermittently the week of March 13th. Once the project is fully underway this will become the standard  treatment.    Page 4 of6  BOARD OF UTILITIES COMMISSIONERS - March 14, 2023  practice. We will be in continued communication with this team concerning our water and Spoke as part of a panel at the 2nd Regional Colorado STAR event Rocky Ford hosted by Acres, USA. This event covered soil health and soil BMP's along with water quality, Working on a schedule for a pipe assessment on the 18-inch line on the North La Junta Working as a stakeholder on the new LCR Revisions and PFAS regulations. Completing ag grant to pay for PFAS testing in our biosolids and a second grant concerning testing possible treatment options, if needed, for PFAS in drinking water and to establish base- We are in a decade that has promised substantial changes to the federal Safe Drinking Water Act. Ib believe La Junta and Colorado is positioned well for these changes due to the approach to drinking water regulations and our system over a long period oft time. AWater Department Master Plan proposed improvements summary is attached. The SECWCD is still looking at the May-June timeframe to begin discussions on contracts. The biggest unknown is whether they will have finished the Reclamation The first load of AVC pipe for the trunk line (federal project) has been ordered and will They are preparing materials for outreach meetings as they finalize reports submitted by their contractor, GMS. The SECWCD AVC committee and their Board will review these at their April meeting and then should be ready to begin scheduling the outreach They had a technical meeting with Avondale to help them align their AVC work program (upgrades in their water system to accept AVC water and to reduce system water loss) with Pueblo County funding. They also met with Otero County Commissioners in Febru- ary to advise them of changes in the Fiscal Agent Agreement and to discuss funding strategies for the smaller water companies. Iwas not there and am not privy to what President Biden's budget for FY '24 was released on 03/09/2023 and includes $10,059 million for ongoing work on the Arkansas Valley Conduit. While the SECWCD had hoped the line item request would be higher, please remember that a second disbursement of funds from the Infrastructure Investment and Jobs Act (IIJA) will be forthcoming this spring and they willl be pushing for a large bucket off funding from that. Last year, the IIJA disbursement to the project was $60 million. The SECWCD will continue to work with legislative delegations to ensure levels of funding are sufficient to accelerate and complete this project in far less time than the original 15-year schedule. Total federal  wastewater lines that hang on this bridge. climatology, reservoir storage, and water availability. Continued work on an SRF funding package with CDM Smith.  bridge.  line statistics.  5. Arkansas Valley Conduit Update  repayment contract by that time.  arrive by May 31. Construction will begin shortly thereafter.  meetings.  those changes are or what funding strategies were discussed.  funding to date totals more than $111 million. Daily reads, disconnects and maintenance.  C. Electric Department. Bill Jackson gave the following report:  1. Line Crew  Some older equipment failed at the light plant substation. The crew did some repairs to the load side oft the LP52-4 breaker and we were able to get the breaker back online. A_1000 KVA pad mount transformer was installed at Lewis Bolt and Nut. When the We responded to a house fire at 208 Harriet Avenue. We had to disconnect the service There was a power outage on 02/11/23 at 2:30 a.m. Customers on the LP52-4 and the LP52-3 experienced the outage because at the time, the two circuits were tied together. The cause of the outage was a phase-to-phase fault by a tree branch.  electricians are finished with their side, we will put it online.  tothel house.    Page 5 of6  BOARD OF UTILITIES COMMISSIONERS - March 14, 2023  We responded to the Fairway Restaurant as they had half power. We discovered a There was a call that sparks were coming from the power line in front of the old Loma Three solid cutout blades were replaced with ai fused cutout on the G52-10 circuit, sO that  blown cutout; it was re-fused and the power was restored. Vista Medical Center. There was a bad hotline clamp. int the event ofai fault it would bei isolated.  2. SOLAR Accounts 3. System Update  The total kWh returned to the system was 5,641, from 12 customers. A total of $282.05 was rebated at the avoided costs. There are currently 22 solar customers. Upcoming big project: plant breakers and get away tower lines routed throughout the  plant. The circuit will be rerouted to bypass the tower.  D. Sanitation. Martin Montoya gave the following report:  1. February 2023  Year to Date Total  February 5 2 1 18 2 6 4  Item Special Pick-Ups (Quantity) 40-yd Boxes (Rental & Service) 20-yd Boxes (Rental & Service) 40-yd Box (Service) 20-yd Box (Service) Overage on Boxes (Daysand/or' Weight) Compactor Box (Service) Transfer Station Open Top (tons) Transfer Station Compactor (tons) Replaced Tote Replaced Lid Additional Tote Repaired/Replaced Dumpsters (Quantity)  2022 2023 Diff %Diff 2022 2023 Diff %Diff  6 1 3 11 15 13 3  7 (13.00) 14.29 (5.00) 75.00 (8.00) 40.00 35 (46.00) 68.57 7 (22.00) (53.33) 15 19 (32.00) 31.58 8 (11.00) 62.50  6 1 3 10  (1.00) (16.67) 1.00 50.00 (2.00) (66.67) 8.00 44.44 (13.00) (86.67) (7.00) (53.85) 1.00 25.00  4 5  13 3  20.17 53.89 (74.06) 62.57 20.17 23.05 2.88 12.49 2.86 14.75 (17.61) 80.61 2.86 4.21 1.35 32.07  60 0 0 0  8 (68.00) (86.67) 60 4.00 0.00 3.00 0.00 0.00 0.00  5 (55.00) (91.67) 4.00 0.00 3.00 0.00 0.00 0.00  4 3 0  0 0 0  4 3 0    Page 6of6  BOARD OF UTILITIES COMMISSIONERS - March 14, 2023  Year To Date Total  January  Item Otero County Landfill (tons) Southeast & East Central Recycling (tons) Clean Valley Recycling 4.29 Curbside (tons) Clean Valley Recycling 1.47 Trailer (tons) Clean' Valley Recycling 0 E-Waste (tons) NEW BUSINESS  2022 2023 Diff Change 2022 2023 Diff % Diff 467.88 522.03 54.15 54.15 467.88 522.03 54.15 10.37  20.76 9.7 (11.06) (11.06) 20.76  9.7 (11.06) (53.28)  3.68 (0.61) (0.61) 4.29 3.68  (0.61) (14.22) 1.88 0.41 21.81  1.88 0.41 0  0.41 0.00  1.47 0  0.00  0  N/A 0.00  A. Review of Rate Study. There was quite a lot ofi information provided in the rate study done by JK Engineering. Itv was decided to schedule a work session on Tuesday, March 28th at 4:00 p.m. Chair-  man McKenzie asked the Board to especially focus on the water fund.  B. City Manager's Comments. C. Governing Body's Comments.  1. There is a webinar tomorrow from 10:00 a.m. to 12:00 p.m. on the Colorado River.  1. Vice-Chairman Cranson: Asked for the report he requested in order to do some modeling. Would also like a digital copy of the revised submissions from John Krajewski.  There being no further business, the meeting adjourned at 4:55 p.m.  ATTEST:  CITY OF LAJUNTA  Melanie R. Scofield, City Clerk  Frank McKenzie, Chairman    A. ARPA Board. Gary Cranson submitted the following report:  1. Summary of February 2023 Financial and Operating Statements: During the month of February, revenue from power sales was less than budget by $ 54,295 (2.6%) and total revenue was better than budget by $ 37,478. Total cost of goods sold was under budget by 5%. Purchased Power costs were under budget by $47,706 (5.3%) Transmission Expenses were under budget by $ 44,978. Net Revenue from Operations for the month was $ 344,770. Revenue from power sales was less than budget by $ 20,316 (0.5%). Total revenues were better than budget $ 9,230 YTD. Interest income was $29,437 better than budget with rising interest rates. Total cost of goods sold was less than budget by $ 61,503 (2.1%). Purchased power costs YTD were slightly over budget by $ 9,319 (0.5%) Transmission expenses YTD were under budget by $ 86,623. Total A&G expenses are under budget by $ 38,128 (3.4%)  2. Year to Date Income Statement:  YTD Net Revenue is $ 469,862. Debt Service Coverage YTD is 1.24X 3. Operating Report: 2022.  Member Energy sales for February was 2.5% less than budget and the same as Member Energy Sales YTD was right on budget and 1.3% better than 2022. All in cost of power to members YTD is $0.0994 per kWh; 1.5% lower than 2020.  4. Next Meeting May 25, 2023, at Otero College in La Junta.    CITY OF LAJUNTA  TREATED WATER PUMPING REPORT  2023 MARCH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31  DAILY TOTALS 1,072,295 845,529 1,035,487 1,080,748 764,141 1,119,049 746,235 1,171,441 1,012,943 898,315 1,132,958 810,821 1,093,583 1,013,090 1,174,507 609,017 1,275,501 1,099,025 956,630 1,271,054 1,595,073 1,161,902 1,039,607 1,034,577 919,198 1,141,294 1,015,687 1,299,358 1,011,103 1,428,594 1,299,920  RUNNING TOTAL 1,072,295 1,917,824 2,953,311 4,034,059 4,798,200 5,917,249 6,663,484 7,834,925 8,847,868 9,746,183 10,879,141 11,689,962 12,783,545 13,796,635 14,971,142 15,580,159 16,855,660 17,954,685 18,911,315 20,182,369 21,777,442 22,939,344 23,978,951 25,013,528 25,932,726 27,074,020 28,089,707 29,389,065 30,400,168 31,828,762 33,128,682  RUNNING AVERAGE 1,050,220 958,912 984,437 1,008,515 959,640 986,208 951,926 979,366 983,096 974,618 989,013 974,164 983,350 985,474 998,076 973,760 991,509 997,483 995,332 1,009,118 1,037,021 1,042,697 1,042,563 1,042,230 1,037,309 1,041,308 1,040,360 1,049,609 1,048,282 1,060,959 1,068,667        OFLA. - U A CTRIC  City ofLa € Electric Department P.O. Box 489 - 601 Colorado Avenue Lay Junta, Colorado 81050 March 2023 Report  Junta  In addition to daily reads, disconnects and maintenance, the crew performed these additional tasks: The crew seta a 60-foot riser pole at the Light Plant Substation. They also ran six runs of 500 MCM wire the pole toi reroute the LP52-4 Circuit and the LP52-3 Circuit. Wel had to block offe eastbound Hwy 50 fora up A new 75 KVA transformer bank was built for the newly remodeled apartment at 10 East 1* Street. Ablown arrester was replaced at the Industrial Park on the AB52-7Circuit, which was due to high winds. The crew responded to an antenna that fell on our service line at 1101 Smithland Avenue.  short time.  There was al house fire in the 1800 block of Cimarron Avenue and the power was disconnected to the house There was an underground fault at 1902 College Drive. Eight direct buried connectors were dug up and An old capacitor bank on the 800 block of Maple Avenue was retired. It was no longer needed as we used it  for the Fire Department.  new pipe and new conductors were added, before the Gardner Sub was on line. A primary pole was added at 5171 Maple Avenue.  We had 181 high-pressure sodium lights out at the Industrial Park. They were replaced with LED lights.  SOLAR Accounts avoided costs.  The total kWh returned to the system was 9,844 from 12 customers. A total of $541.44 was rebated at the  There are currently 22 solar customers.  System Update  We are currently applying for congressional funding for the backup generation and battery storage for the Industrial Park. We have reached the second tier and DOLA will bei including our project in their funding request. The project is such that we can do inj phases to best fit in their funding capabilities. The wind and weather events continue to point out weak areas in the system that need to be repaired and  replaced.    ELECTRIC REVENUE  Total revenue was $1,038,000. Thisi is more than the Februaryl budget of $819,200 by $218,800.  Compared to 2022: sales were up 3.84%.  $$$ RESIDENTIAL COMMERCIAL INDUSTRIAL MUNICIPAL  2023 310,997.35 108,531.87 510,169.31 72,073.38 1,001,771.91  2022 304,136.40 6,860.95 103,765.50 489,259.62 20,909.69 66,150.31 963,311.83 38,460.08  +/- 4,766.37 5,923.07  PERCENT CHANGE 2.21% 4.39% 4.10% 8.22% 3.84%  Kilowatt usage increased 320,255 compared to 2022. Total kilowatts billed was 6,923,080.  kWh RESIDENTIAL COMMERCIAL INDUSTRIAL MUNICIPAL  2023 1,959,192 790,881 3,682,694 490,313 6,923,080  2022 1,878,998 80,194 784,159 3,531,647 151,047 408,021 6,602,825 320,255  +/- 6,722 82,292  PERCENT CHANGE 4.09% 0.85% 4.10% 16.78% 4.63%  Year to date was $1,943,700 whichy was above the $1,883,300 budget by $60,400. This isa 4%1 increase  for the year. EXPENSES  Expenses were $8 875,900 for February. This is $59,000 less than the monthly budget. Transmission costs have decreased: substantially with the changes in thel light plant substation. ARPA costs were much lower than last year. Expenses were decrease by 4.28% compared with 2022.  TRANSMISSION (LESS ARPA ARPA DISTRIBUTION CUSTOMER ACC ADMINISTRATION OTHER CHARGES DEPRECIATION  12,500.00 627,900.00 77,400.00 900.00 121,000.00 36,200.00 875,900.00  30,100.00 (17,600.00) 667,600.00 (39,700.00) 74,800.00 400.00 99,800.00 21,200.00 40,700.00 913,400.00 (37,500.00)  -140.80% -6.32% 3.36% 55.56% 17.52% 0.00% -12.43% -4.28%  2,600.00 500.00 (4,500.00)  Inc conclusion, revenue exceeded expenses by $ 162,000 for February 2023.    ARPA  ARPA ENERGY DEMAND AVOIDED COST LESSSECPA  2023 6,225,931 14,024 5,641 6,245,596 (25,235) 6,220,361  2022 6,097,119 14,377 6,111,496 (23,475) 6,088,021  +/- 128,812 (353) 5,641 134,100 (1,760) 132,340  PERCENTCHANGE 2.07% -2.52% 100.00% 2.15% 6.97% 2.13%  Energy was increase 2.07%1 from 2022, however demand was down. Our overall kWh was increased 2.13% from 2022. Even though we consumed more kWh, our costs were decreased due to the increased ratef for avoided costs. Avoided cost rate for: 2022 was .03218/kWh whilei in 2023 it was  .05270/kWh.    GMNI    6+4  6E4    e  355 3555  :  STV91  #I65I E9'6S1  12191    -    E  E  62'04 SE04  41041 2104  88'04 58'04  -  09:04