NOTICE AUDIT  CITY OF LA. JUNTA OFFICE OF THE CITY CLERK PO Box 489 601 Colorado Avenue La Junta CO 81050 Phone: 719.384.5991 Fax: 719.384.7231 melanle.sconeldelayutacolorado.org  WORK SESSION  FROM: Melanie Scofield, City Clerk  TO:  City Council Utilities Board City Attorney Supervisors  SUBJECT: Audit Work Session  An Audit Work Session will be held Thursday, May 18, 2023 from 5:30 p.m. to 6:30 p.m. at  the Municipal Building.  Pc: News Media    AGENDA La. Junta, Colorado May 16, 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 April 11, 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. Audit Presentation (Hancock Froese & Co.)  B. Recommendation to City Council for al New Water Attorney (Chairman) (Action)  C. Utility Rate Increase (Chairman) (Possible. Action)  D. City Manager's Comments E. Governing Body's Comments  ADJOURN  REMINDER: THERE WILL BE AN AUDIT WORK SESSION ON THURSDAY, MAY 187h  ROWS3OPM.TOB3OPM, AT THE MUNICIPAL BUILDING    Subjectt to approval at the May 16,2023 Utilities Board Meeting  BOARD OF UTILITIES COMMISSIONERS - April 11, 2023  CITY OF LA. JUNTA COUNTY OF OTERO STATE OF COLORADO  SS  Al Regular Meeting oft the Board of Utilities Commissioners of the City ofl La. Junta, Colorado, was called to order by Vice-Chairman Gary Cranson on Tuesday, April 11, 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 Paul Velasquez, Council Member Frank McKenzie, Chairman Phill 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 Betty McFarren, RF Gazette  Absent:  Also present: Bill Jackson, Asst. City Manager  MINUTES OF PREVIOUS MEETING  Vice-Chairman Cranson asked if there were any corrections or additions to the minutes of the Regular Meeting of March 14, 2023. Hearing none, the vice-chairman asked for a motion to approve the minutes  as published. SECOND: Velasquez  MOTION TO ACCEPT THE MARCH 14, 2023 MINUTES AS PUBLISHED: Ayala  DISCUSSION: There was no discussion VOTE: The motion carried 4-0 (McKenzie absent) CITIZEN PARTICPATION 1. There was no citizen participation. REPORTS  A. ARPA Board. Gary Cranson gave 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 revenues was better than budget by $37,478. Total cost of goods sold was under budget (5.0%). 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. 2. Year to Date Income Statement: Revenue from power sales was less than budget by $20,216 (0.5%). Total revenues were better than budget by $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%6). Transmission expenses YTD were under budget by $86,623. Total A & G expenses are under    Page 2of5  BOARD OF UTILITIES COMMISSIONERS - April 11, 2023  budget by $38,128 (3.4%). YTD Net Revenue is $469,862. Debt Service Coverage YTD is 3. Operating Report: Member Energy sales for February was 2.5% less than budget and the same as 2022. Member Energy Sales YTD was right on budget and 1.3% better than 2022. Alli in cost  1.24X.  of power to members YTD is $0.0994 per kWh; 1.5% lower than 2020. 6. Next Meeting -May 25, 2023 at Otero College in La Junta. B. Water & Wastewater Treatment. Tom Seaba gave thei following report:  1.F R.O. Plant  Diagnosed issues with Clortec flow sensor. New sensor on order. Flushing raw water lines inp preparation for higher summertime flows. Installed new relays on reserve and south booster generators.  Chemical washes completed on RO'sA&C. Installed new pressure gauges on wells.  Conducted the following routine maintenance: Checkedreplaced chemical pump brush- es in all chemical pumps; checked screens, belts, packing and nozzles on degassifiers; tested pH, conductivity, and hardness on all wells; sampled every RO vessel; greased pumps at reserve, Prairie View and West booster stations; changed oil, filters, and  greased wells 1, 4,5,6,7,11and13. Meter Reading, building maintenance.  Revised SOP's.  2. Distribution  Main break at 3rd and Adams Avenue. Creating a bypass around that intersection since that section of pipe has three repair bands already on it and replacing the roadway would Assisted several customers stating they had low water pressure. Issues with water  be costly.  softeners or additional water fillers installed inside the home. Several repairs on service leaks in meter pits. Changed out several old, leaking meters to new radio read meters. Prep work for water installation for bathrooms at 10th and Barnes Avenue. Meter reading and utility billing office generated work orders.  3. Financials (Water Fund)  March water revenues were $170,900. The budget for March was $191,000. Revenues were $20,100 below the monthly budget. Compared to 2022, revenues showed a $32,700 decrease. Year-to-date revenue is at 12%. Budget shows we should be at 18%. The city billed 18,495,000 gallons of water compared to 23,669,000 in 2022. Total expenses were $363,500 with a monthly budget of $301,200. Expenses were $62,300 more than the budgeted amount for March. Year-to-date expenses were $74,800 more than budgeted and $251,400 less than 2022. However, if the bond retire- ment is removed, expenses are $78,500 more than 2022.Expense are at 16%. The budget shows we should be at 22%. Although March numbers are not as aligned as Compared to 2022, assets decreased $166,500 and liabilities decreased $14,600. Net After an amazing career of 42 years with the City of La Junta, Robert Lucero has chosen tor retire on April 15, 2023. He has led a fantastic department through several transitions to include the building of our new WWTP. His dedication, service, knowledge, and dry Zeke Vigil has left La Junta to pursue a new opportunity. Best of luck to Zeke in this new  anticipated, the year-to-date expenses are at acceptable levels. change ini fund balance is ($151,900) for year-to-date 2023.  4. Wastewater  humor will be greatly missed. endeavor.    Page 3 of5  BOARD OF UTILITIES COMMISSIONERS- - April 11, 2023  We will be working with Mark Foxworthy as a contract operator and trainer to build our Treated 26.126 million gallons. Removed 20.01 ft3 of screenings and 30.01 ft3 of grit. Jetted 3,884 feet of line for emergency calls and monthly areas of concern. Sixteen Heater fan in headworks building quit working. New sealed bearings and fan hub on Industrial pretreatment inspections for March completed. Continue to revise and update  certified staffing levels back to normal over the nexty year. RO concentrate discharge to plant was 12.609 million gallons. emergency calls and thirty-two manhole locate requests. Placed rock for erosion control and grounds landscaping. inspection and cleaning schedules, site surveys, permits, and billing. Additional plant, collection system, and grounds maintenance.  order.  5. Financials (Waste Water Fund)  March sales were $202,400. This was $2,500 more than the march anticipated budget of $199,900. However, compared to 2022 sales were up $900. Year-to-date revenue is at 17%. Budget shows we should be at 24%. After the audit of the utility system some Total expenses for March were $235,300. This was $25,400 more than the anticipated budget of $209,900. However, treatment was well over budget due to sludge disposal. Year-to-date expenses was $94,100 less than budgeted and $58,700 more than 2022. Compared to 2022, assets decreased $243,400 and liabilities decreased $48,500. Net  customer classifications were changed.  Expenses are at 22%. Budget shows we should be at 28%. change in fund balance is ($194,900) for year-to-date: 2023. Level 1 water restrictions begin on May 1st.  6. Other Notables:  All systems are installed in new south booster station. Power has been connected to the building with communications being completed. Connection to the transmission main on Training with Paul Schreve from Colorado Rural Water at the old armory building. Continued work on an SRF funding package with CDMSmith. Working on pipe assessment on the 18-inch line on the North La. Junta bridge.  Cimarron. Avenue is scheduled for the 3rdv week in April. Safety training concerning shoring and trenching. Cyber-security concerning cyber awareness.  7. Arkansas Valley Conduit Update - Article from Southeastern Colorado Water Conservancy  District:  The first 15 truckloads of 30-inch HDPE pipe for the Arkansas Valley Conduit (AVC) were received today (Tuesday, March 28, 2023) by WCA Construction LLC, who received the The pipe is being stored along the route of the AVC conduit, which will begin at U.S. This is the first wave of deliveries that will continue during April and May. For the curious: each piece of 50-foot pipe weights about 9,000 pounds, and each truckload carried four Installation of the AVC pipeline is expected to begin soon, and construction of the first The Southeastern District is completing the design of the Avondale and Boone delivery lines, and we expect to begin construction later this year. The District's Board of Directors approved contracts to design all of the AVC delivery lines by the end of 2024, and we expect to build these by the end of 2023 in order to begin delivery of water as  contract to build the first 6 miles of the AVC in September 2022.  Highway 50 and 36th Lane.  pieces.  6-mile stretch will be completed in 2024.  soon as the trunk line reaches AVC participants.    Page 4 of5  BOARD OF UTILITIES COMMISSIONERS - April 11, 2023  The District would like to express thanks to Reclamation officials for a visit of the AVC site last week. We can't wait to see dirt flying in the near future! As we confirm a date and time for an upcoming ground-preaking. celebration, we will send out additional  information.  C. Electric Department. Bill Jackson gave the following report:  1. Line Crew  Daily reads, disconnects and maintenance. block off eastbound Highway 501 for a short time.  The crew set a 60-foot riser pole at the Light Plant Substation. They also ran six runs of 500 MCM wire up the pole to reroute the LP52-4 circuit and the LP52-3 circuit. Had to Anew 75 KVA transformer bank was built for the newly remodeled apartment at 10E. 1st Ab blown arrester was replaced at the Industrial Park on the AB52-7 circuit which was due The crew responded to an antenna that fell on our service line at 1101 Smithland There was a house fire in the 1800 block of Cimarron Avenue and the power was There was an underground fault at 1902 College Drive. Eight direct buried connectors An old capacitor bank on the 800 block of Maple Avenue was retired. It was no longer We had eighteen high-pressure sodium lights out at the Industrial Park. They were The total kWh returned to the system was 9,844, from 12 customers. A total of $541.44 was rebated at the avoided costs. There are currently 22 solar customers. 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 be including our project in their funding request. The project is such that we can do in The wind and weather events continue to point out weak areas in the system that need to Total revenue was $1,038,000. This is more than the February budget of $819,200 by $218,800. Compared to 2022 sales were up 3.84%. Kilowatt usage increased 310,255 compared to 2022. Total kilowatts bills was 6,923,080. Year-to-date was $1,943,700 which was above the $1,883,300 budget by $60,400. This is a 4% increase for the year. Expenses were $875,900 for February. This is $59,000 less than the monthly budget. Transmission costs have decreased substantially with the changes in the light plant sub- station. ARPA costs were much lower than last year. Expenses were decreased by 4.28 % compared with 2022. Revenue exceeded expense by $162,0001 for February 2023. ARPA: Energy was increase 2.07% from 2022, however demand was down. Overall kWh was increased 2.13% from 2022. Even though we consumed more kWh, our costs were decreased due to the increased rate for avoided costs. Avoided cost rate for 2022 Mr. Jackson recommended to the Board that they may want to move their meeting to the third Tuesday of the month rather than the second. This would allow time to get the  Street. toh high winds. Avenue.  disconnected to the house for the Fire Department. were dug up and new pipe and new conductors were added. needed as we used it before the Gardner Sub was on line. Aprimary pole was added at 5171 Maple Avenue.  replaced with LED lights.  2. SOLAR Accounts 3. System Update  phases to best fit int their funding capabilities.  ber repaired and replaced.  4. Financials (Electric Fund)  was. 03218/kWh while in 2023 ity was. 05270/KWh. ARPA billing in order to have ar more current report.    Page 5 of5  BOARD OF UTILITIES COMMISSIONERS - April 11, 2023  MOTION TO CHANGE THE UTILITY BOARD MEETING FROM THE SECOND TUES- DAY TO THE THIRD TUESDAY OF EVERY MONTH AT4:00 P.M.: Bourget  SECOND: Ayala  DISCUSSION: There was no further discussion VOTE: The motion carried 4-0 (McKenzie absent)  D. Sanitation. Martin Montoya gave thei following report:  1. Financials (Sanitation Fund)  March revenues were $92,500. This was $15,900 above the estimated March budget of $76,600. Comparatively, it is a 1.8% increase from 2022. Year-to-date revenue is at 20%. Budget shows it should be at 24%. Recycling revenues have increased steadily since its inception. There were 241 accounts participating in curb side pick-up in March. In202, only 229 residents participated. Total revenues were above the 2022 by $14,300. Total sanitation expenses were $121,000. This is $14,200 above the March budget of $106,900. However, it is a 12% increase from 2022. Net change in fund balance is 2. Discussion of spreadsheet information regarding 2022 sanitation revenue, 2022 sanitation revenue with roll off adjustment, annual city clean-up and monthly tonnage reports from the land- MOTION TO ACCEPT THE PROPOSED RATES ON THE 20 YARD. AND 40 YARD ROLL-OFFS TO AFLAT FEE OF $265FOR: 20 YARD AND $465 FOR 40 YARD, EFFECTIVE MAY 1, 2023:  $10,500 for year-to-date 2023.  fill. Ayala SECOND: Bourget  DISCUSSION: There was no further discussion VOTE: The motion carried 4-0 (McKenzie absent)  NEW/BUSINESS A. City Manager's Comments. 1. There were no city manager comments. B. Governing Body's Comments.  1. Vice-Chairman Cranson: At the last meeting, a gentleman asked why the City was no longer part ofa program that credited people's utility bills. Has this issue been resolved? Asst. City Manager Jackson: Those were supplemental benefits from Medicaid and Medicare 2. Commissioner Bourget: Would like on next months agenda, a discussion of our water lawyer representative, where we can review the current lawyer and consider alternative options.  that were allowed during COVID.  There being no further business, the meeting adjourned at 4:54 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 March 2023 Financial and Operating Statements: During the month of March, revenue from power sales was better than budget by $2,597 (0.1%) and total revenue was better than budget by $ 23,806. Total cost of goods sold was under budget by 3.8%. Purchased Power costs were under budget by $ 38,522 (4.4%) Transmission Expenses were under budget by $ 24.496. Net Revenue from Operations for the month was $ 404,550. Revenue from power sales was less than budget by $ 17,719 (0.3%). Total revenues were better than budget $ 33,036 YTD. Interest income was $50,687 better than budget with rising interest rates. Total cost of goods sold was less than budget by $ 116,511 (2.6%). Purchased power costs were under budget by $ 29,205 (1.1%) Transmission expenses were under budget by $ 111,119. Total A &G expenses are under budget by $41,269 (2.5%)  2. Year to Date Income Statement:  YTD Net Revenue is $ 702,952. Debt Service Coverage YTD is 1.24X 3. Operating Report: than 2022. 2022.  Member Energy sales for March was 1.8% greater than budget and slightly less Member Energy Sales YTD was 0.65% greater than budget and 0.8% better than All in cost of power to members YTD is $0.0990 per kWh; 1.7% lower than 2020.  4. Next Meeting May 25, 2023, at Otero College in La Junta.    Utility Board Meeting Departmental Goings-On  05/16/2023  R.O. Plant  #12 well production rates exceptionally lower again less than one year after iron treatments. Contractor  contacted toj perform inspection/analysis. Assist with south booster project. Meter Reading, building maintenance.  npettedrepairdrepaced bearings on wells 11, 12, and 13 Semi-annual inspection by Cummins for back-up generators.  Distribution  Main break at...  Completed main bypass at 3rd & Adams. Repair main break on North Hwy 109.  Locate all mains and services east of Adams for Black Hills gas mains project. Assisted a company boring ini new lines at Hwy. 50 & Conley Rd. Water installation for bathrooms at 10th & Barnes complete. Meter Reading and utility billing office generated work orders.  Wastewater  Treated 27.397 million gallons. Removed 40ft3 ofs screenings and 35ft3 of grit. RO concentrate discharge to plant was 13.219: million gallons. Heater fan in headworks building repair completed UV disinfection system cleaned and maintained.  Jetted 8,809' feet ofl line jetted for emergency calls and monthly areas of concern. 9 emergency calls and  88 manhole locate requests.  #2 motor on orbal basin pulled for repairs and replaced with spare stored onsite.  Industrial pretreatment inspections for April complete and liquid waste hauler permits issued. Additional plant, collection system, and grounds maintenance, and treatment process lab testing  conducted. Other Notables:  Level 1 water restrictions begin on. May 1St and continue until October 15th.A 20-day exemption may be Substantial completion was met on the new south water booster. The system is now operation. Some fine tuning oft the SCADA system remains. Demolition oft the interior of the old booster station will 4e employees attended Colorado Rural Water Conference. Katelin Reed was awarded Rookie Operator of  requested by calling the water department, 384-7358 for new grass, sod, etc. begin the week ofl May gth. This building will be used: for storage. Continued work on an SRF funding package with CDMSmith. 2employees attended the Arkansas River Basin Water Forum.  the Year for 2022.    OFLAUA  CityofLa Junta Electric Department P.0. Box 489 - 601 Colorado. Avenue Laj Junta, Colotado 81050 April 2023 Report  SCTRICD  In addition to daily reads, disconnects and maintenance, the crew performed these additional tasks: A15001 KVA transformer failed at Lewis Bolt. The A Phase side oft the transformer melted the terminations, so we had to move everything to the B Phase side. We also had a four-wayjunction ACTrack was damaged on aj power pole at Carl's Jr. from the wind; wel had to kill the service to Four new lights were installed at the Brick & Tile Park and we are working on adding four more. The crew has been doing some troubleshooting on AB52-7. Wei isolated a single-phase line that  fail that was replaced. replace the rack.  has been causing interruptions.  We are still working on: rerouting the LP52-4 and the LP52-3 circuits.  High wind caused aj primary pole to blow down on East 16th Street; this resulted in over 1,700  customers without power.  SOLAR. Accounts the avoided cost.  The total kWh returned to the system was 10,728 from 15 customers. A total of$590.14 was rebated at  There are currently 22 solar customers.  System Update replaced.  The wind and weather events continue to point out weak areas in the system that need to bei repaired and  We are experiencing 18 months lead time on transformer orders.    32  - A 8 0 E - L & -   L S 6 &  a -  S    ELECTRIC REVENUE  Total revenue was $868,100. This is less than the March budget of $927,300 by $59,300. Compared to  2022 sales were down. .11%.  $S$ RESIDENTIAL COMMERGIAL INDUSTRIAL MUNICIPAL  2023 248,707.73 92,270.49 443,593.60 49,829.74 834,401.56 2023 1,527,144 652,567 331,572  2022 248,222.65 89,898.21 440,916.27 2,677.33 56,267,64 (6,437.90) 835,304.77 2022 1,540,859 (13,715) 671,596 (19,029) 344,052 (12,480)  +/- 485.08 2,372.28 (903.21) +/-  PERCENT CHANGE 0.20% 2.57% 0.60% -12.92% -0.11%  Kilowatt usage decreased! 34,102 compared to 2022. Total kilowatts billed was 5,644,165.  kWh RESIDENTIAL COMMERCIAL INDUSTRIAL MUNICIPAL  PERCENT CHANGE -0.90% -2.92% 0.36% -3.76% -0.60%  3,132,882 3,121,760 11,122 5,644,165 5,678,267 (34,102)  Year-to-date was $2,811,800 which was below the $2,826,700 budget by $14,900. This isai 1% decrease  for the year-to-date. EXPENSES  Expenses were $ 987,1001 for March. This is $41,400 more than the monthly budget. ARPAcosts increased from last March. Expenses were decrease by 2.33% compared with 2022.  TRANSMISSION (LESS ARPA ARPA DISTRIBUTION CUSTOMER ACC ADMINISTRATION OTHER CHARGES DEPRECIATION  16,461.21 638,192.60 85,826.20 2,505.13 202,012.13 5,836.50 36,221.56 987,055.33  43,251.62 (26,790.41) 618,065.79 20,126.81 131,496.19 (45,669.99) 1,608.24 128,000.49 74,011.64 929.30 40,662.81 964,014.44 23,040.89  -162.75% 3.15% -53.21% 35.80% 36.64% 0.00% -12.26% 2.33%  896.89 4,907.20 (4,441.25)  Inc conclusion, expenses exceeded revenues by $119,0001 for March: 2023. Year-to-date, revenues have  exceeded expenses by$ $4 42,600.    ARPA  ARPA ENERGY DEMAND AVOIDED COST LESS SECPA  2023 6,438,367 12,739 9,844 6,460,950 (26,255) 6,434,695  2022 6,251,302 13,028 6,264,330 (27,021) 6,237,309  +/- PERCENTCHANGE 187,065 (289) 9,844 196,620 766 197,386  2.91% -2.27% 100.00% 3.04% -2.92% 3.07%  Energy was increase 3.07%1 from 2022, however demand was down. Our overall kWh was increased 3.04% from 2022. Avoided cost rate for 2022 was 02737/kWh while in 2023 it was .05490/kWh.  ASSETS/LABILITIES  Compared to 2022, assets decreased $30,500 and! liabilities increased: $ 759,000.  ASSETS CASH INVESTMENTS ACCOUNTS RECIEVABLE INVENTORY FIXED ASSETS  WABLITIES ACCOUNTS PAYABLE CUSTOMER DEPOSITS ACCRUED BENEFIT  552,114 3,009,110 1,211,580 1,735,098 4,673,979 11,181,882  (24,203) (176,943) (198,077)  TOTALA ASSETS  TOTAL LIABLITIES (399,223)  Net change int fund balance is $4 42,6001 for year-to-date 2023.