COIORE AGENDA CORLSS REGULAR MEETING BOARD OF UTILITIES COMMISSIONERS La Junta, Colorado April 11, 2023 4:00 p.m. Council Chambers Municipal Building 601 Colorado Avenue CALL TO ORDER ROLL CALL (City Clerk) Board Members PIA Supervisors Others Ayala Bourget Cranson McKenzie Velasquez 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 at the BOARD OF UTILITIES COMMISSIONERS - March 14, 2023 April 11 2023 CITY OF LA JUNTA Utilities Board Meeting COUNTY OF OTERO SS STATE OF COLORADO A 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 of 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 published. CITIZEN PARTICPATION 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 list but not any longer. Mr. Klein will have someone look into this matter. 2. Mr. Martinez: Had a water leak and was told to present information to the Board for a possible discount of his utilities. Mr. Klein will look into this matter as well. REPORTS A. ARPA Board. Gary Cranson gave the following report: 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 2 of 6 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 than 2020. 3. Annual Election of Officers: The current slate of officers was reelected for another one-year 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 of less than 50,00 population. The City should investigate eligibility. 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 following: Revenues based on: o Budgeted sales for 2023 and remaining flat throughout the modeling period. Rate decreases in 2025, 2026, 2027 totaling about 8%. Power Supply Costs based on: Contracted rate for supplemental power purchases. WAPA-LAP pricing that includes rate increase of 5% in 2025 and 2027. WAPA-CRSP allocation based on a reduction in Lamar's annual allocation and a 6% rate increase in 2024. 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: 0 Annual increase of 5% for employee, insurance, travel, office, dues, and subscription expenses. Outside legal counsel fixed at $250,000 annually. , General counsel annual increase of 3%. City of Lamar settlement, leases, etc., expenses in accordance with their contractual requirements. Debt service per the bonding requirements and fixed through the time period. 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 epairedrecondiioned. 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 3 of 6 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, scale inhibitor injectors, and well static levels. New motor installed on Well #12. The well was put back into service after the bacterio- logical test came back clear. Changed out all cartridge filters. 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 repar/replacement options. Replaced mechanical seal and carbon bearing on RO "C". Repaired leaks on finished water pumps. Replaced fitting on finish water pump #2 after it failed to close. Revised SOP's. 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 Raton. Replaced service that was leaking at the connection to the main in the 1400 block of Belleview. 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 settling. Installed twenty radio read meters. Meter reading and utility billing office generated work orders. 3. Wastewater Treated 23.092 million gallons. Removed 35.0 ft3 of screenings and 39.0 fts 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 of non-combustile and non-volatile material in a 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 of the collection system to use this technology on, including the manholes on the main trunk line running between 1st and 2nd streets to the plant. 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 WWWTP grounds for the duration of that project. Placed rock for erosion control and grounds landscaping. Additional plant, collection system, and grounds maintenance. 4. Other Notables: Safety training concerning fire prevention and emergencies. Cyber-security training concerning social engineering red flags. Two employees presented at the Girls in the Middle Conference about water quality and treatment. 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 Page 4 of 6 BOARD OF UTILITIES COMMISSIONERS = March 14, 2023 practice. We will be in continued communication with this team concerning our water and wastewater lines that hang on this bridge. 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, climatology, reservoir storage, and water availability. Continued work on an SRF funding package with CDM Smith. Working on a schedule for a pipe assessment on the 18-inch line on the North La Junta bridge. Working as a stakeholder on the new LCR Revisions and PFAS regulations. Completing a 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- line statistics. We are in a decade that has promised substantial changes to the federal Safe Drinking Water Act. I 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 of time. A Water Department Master Plan proposed improvements summary is attached. 5. Arkansas Valley Conduit Update 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 repayment contract by that time. The first load of AVC pipe for the trunk line (federal project) has been ordered and will arrive by May 31. Construction will begin shortly thereafter. 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 meetings. 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. I was not there and am not privy to what those changes are or what funding strategies were discussed. 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 will be pushing for a large bucket of 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 funding to date totals more than $111 million. C. Electric Department. Bill Jackson gave the following report: 1. Line Crew Daily reads, disconnects and maintenance. Some older equipment failed at the light plant substation. The crew did some repairs to the load side of 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 electricians are finished with their side, we will put it online. We responded to a house fire at 208 Harriet Avenue. We had to disconnect the service to the house. 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. Page 5 of 6 BOARD OF UTILITIES COMMISSIONERS = March 14, 2023 We responded to the Fairway Restaurant as they had half power. We discovered a blown cutout; it was re-fused and the power was restored. There was a call that sparks were coming from the power line in front of the old Loma Vista Medical Center. There was a bad hotline clamp. Three solid cutout blades were replaced with a fused cutout on the G52-10 circuit, SO that in the event of a fault it would be isolated. 2. SOLAR Accounts 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. 3. System Update 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 Item 2022 2023 Diff % Diff 2022 2023 Diff % Diff Special Pick-Ups 6 7 (13.00) 14.29 6 5 (1.00) (16.67) (Quantity) 40-yd Boxes 1 4 (5.00) 75.00 1 2 1.00 50.00 (Rental & Service) 20-yd Boxes 3 5 (8.00) 40.00 3 1 (2.00) (66.67) (Rental & Service) 40-yd Box 11 35 (46.00) 68.57 10 18 8.00 44.44 (Service) 20-yd Box 15 7 (22.00) (53.33) 15 2 (13.00) (86.67) (Service) Overage on Boxes 13 19 (32.00) 31.58 13 6 (7.00) (53.85) (Days andlor Weight) Compactor Box 3 8 (11.00) 62.50 3 4 1.00 25.00 (Service) Transfer Station 20.17 53.89 (74.06) 62.57 20.17 23.05 2.88 12.49 Open Top (tons) Transfer Station 2.86 14.75 (17.61) 80.61 2.86 4.21 1.35 32.07 Compactor (tons) Replaced Tote 60 8 (68.00) (86.67) 60 5 (55.00) (91.67) Replaced Lid 0 4 4.00 0.00 a 4 4.00 0.00 Additional Tote 0 3 3.00 0.00 ) 3 3.00 0.00 Repaired/Replaced 0 0 0.00 0.00 0 0 0.00 0.00 Dumpsters (Quantity) Page 6 of6 BOARD OF UTILITIES COMMISSIONERS - March 14, 2023 Year To Date Total January Item 2022 2023 Diff Change 2022 2023 Diff % Diff Otero County Landfill 467.88 522.03 54.15 54.15 467.88 522.03 54.15 10.37 (tons) Southeast & East 20.76 9.7 (11.06) (11.06) 20.76 9.7 (11.06) (53.28) Central Recycling (tons) Clean Valley Recycling 4.29 3.68 (0.61) (0.61) 4.29 3.68 (0.61) (14.22) Curbside (tons) Clean Valley Recycling 1.47 1.88 0.41 0.41 1.47 1.88 0.41 21.81 Trailer (tons) Clean Valley Recycling 0 0 0.00 0.00 0 0 N/A 0.00 E-Waste (tons) NEW BUSINESS A. Review of Rate Study. There was quite a lot of information provided in the rate study done by JK Engineering. It 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. 1. There is a webinar tomorrow from 10:00 a.m. to 12:00 p.m. on the Colorado River. C. Governing Body's Comments. 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 LA JUNTA 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. 2. Year to Date Income Statement: 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%) YTD Net Revenue is $ 469,862. Debt Service Coverage YTD is 1.24X 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. 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 LA JUNTA TREATED WATER PUMPING REPORT 2023 DAILY RUNNING RUNNING MARCH TOTALS TOTAL AVERAGE 1 1,072,295 1,072,295 1,050,220 2 845,529 1,917,824 958,912 3 1,035,487 2,953,311 984,437 4 1,080,748 4,034,059 1,008,515 5 764,141 4,798,200 959,640 6 1,119,049 5,917,249 986,208 7 746,235 6,663,484 951,926 8 1,171,441 7,834,925 979,366 9 1,012,943 8,847,868 983,096 10 898,315 9,746,183 974,618 11 1,132,958 10,879,141 989,013 12 810,821 11,689,962 974,164 13 1,093,583 12,783,545 983,350 14 1,013,090 13,796,635 985,474 15 1,174,507 14,971,142 998,076 16 609,017 15,580,159 973,760 17 1,275,501 16,855,660 991,509 18 1,099,025 17,954,685 997,483 19 956,630 18,911,315 995,332 20 1,271,054 20,182,369 1,009,118 21 1,595,073 21,777,442 1,037,021 22 1,161,902 22,939,344 1,042,697 23 1,039,607 23,978,951 1,042,563 24 1,034,577 25,013,528 1,042,230 25 919,198 25,932,726 1,037,309 26 1,141,294 27,074,020 1,041,308 27 1,015,687 28,089,707 1,040,360 28 1,299,358 29,389,065 1,049,609 29 1,011,103 30,400,168 1,048,282 30 1,428,594 31,828,762 1,060,959 31 1,299,920 33,128,682 1,068,667 City ofLa Junta Electric Department P.O. Box 489 a 601 Colorado Avenue PEEE DES La Junta, Colorado 81050 March 2023 Report In addition to daily reads, disconnects and maintenance, the crew performed these additional tasks: 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. Wel had to block off eastbound Hwy 50 for a short time. AI new 75 KVA transformer bank was built for the newly remodeled apartment at 10 East Ist Street. A blown arrester was replaced at the Industrial Park on the AB52-7 Circuit, which was due to high winds. The crew responded to an antenna that fell on our service line at 1101 Smithland Avenue. There was a house fire in the 1800 block of Cimarron Avenue and the power was disconnected to the house for the Fire Department. There was an underground fault at 1902 College Drive. Eight direct buried connectors were dug up and new pipe and new conductors were added, An old capacitor bank on the 800 block of Maple Avenue was retired. It was no longer needed as we used it before the Gardner Sub was on line. A primary pole was added at 517 Maple Avenue. We had 18 high-pressure sodium lights out at the Industrial Park, They were replaced with LED lights. SOLAR Accounts 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. 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 be including our project in their funding request. The project is such that we can do in 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. This is more than the February budget of $819,200 by $218,800. Compared to 2022 sales were up 3.84%. $$$ 2023 2022 +/- PERCENT CHANGE RESIDENTIAL 310,997.35 304,136.40 6,860.95 2.21% COMMERCIAL 108,531.87 103,765.50 4,766.37 4.39% INDUSTRIAL 510,169.31 489,259.62 20,909.69 4.10% MUNICIPAL 72,073.38 66,150.31 5,923.07 8.22% 1,001,771.91 963,311.83 38,460.08 3.84% Kilowatt usage increased 320,255 compared to 2022. Total kilowatts billed was 6,923,080. kWh 2023 2022 +/- PERCENT CHANGE RESIDENTIAL 1,959,192 1,878,998 80,194 4.09% COMMERCIAL 790,881 784,159 6,722 0.85% INDUSTRIAL 3,682,694 3,531,647 151,047 4.10% MUNICIPAL 490,313 408,021 82,292 16.78% 6,923,080 6,602,825 320,255 4.63% 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 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 substation. ARPA costs were much lower than last year. Expenses were decrease by 4.28% compared with 2022. TRANSMISSION (LESS ARPA 12,500.00 30,100.00 (17,600.00) -140.80% ARPA 627,900.00 667,600.00 (39,700.00) -6.32% DISTRIBUTION 77,400.00 74,800.00 2,600.00 3.36% CUSTOMER ACC 900.00 400.00 500.00 55.56% ADMINISTRATION 121,000.00 99,800.00 21,200.00 17.52% OTHER CHARGES 0.00% DEPRECIATION 36,200.00 40,700.00 (4,500.00) -12.43% 875,900.00 913,400.00 (37,500.00) -4.28% In conclusion, revenue exceeded expenses by $ 162,000 for February 2023. ARPA ARPA 2023 2022 +/- PERCENT CHANGE ENERGY 6,225,931 6,097,119 128,812 2.07% DEMAND 14,024 14,377 (353) -2.52% AVOIDED COST 5,641 5,641 100.00% 6,245,596 6,111,496 134,100 2.15% LESS SECPA (25,235) (23,475) (1,760) 6.97% 6,220,361 6,088,021 132,340 2.13% Energy was increase 2.07% 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 rate for avoided costs. Avoided cost rate for 2022 was 03218/kWh while in 2023 it was .05270/kWh, (MIN) 6+4 6E4 N - : 51091 PI'6SI E9'6ST 12'191 3 - S C a 3 % - a 10 : - 62 04 4T'04 88'04 SE'04 2T04 S8'04 91 09 04