Public Utility Commission

City of Fa rming ton Wa ter/Wa stewa ter ……for the regular meeting of the Public Utility Commission of the City of Farmington, Wednesday, November 13, 2013, at 3:00 pm in the Executive Conference Room at City Hall, 800 Municipal Dr., Farmington, New Mexico. I. GENERAL A. Roll Call B. Convening of Meeting by Amanda Weese, Chair C. Minutes of October 9, 2013 regular meeting submitted for approval II. BUSINESS A. Quarterly Financial Report – Andy Mason (10 min.) ............................................... 2 B. Water/Wastewater Report – Jeff Smaka (5 min) ................................................. 3 C. Water/Wastewater Operations Report – Ron Rosen (5 min) ............................... 4 D. Director’s Report – Mike Sims (10 minutes) ............................................................ 5 III. ADJOURNMENT The next regular meeting will be on December 11, 2013 The City of Farmington will make every effort to provide reasonable accommodations for people with disabilities who wish to attend a public meeting. If you need to request that an accommodation be made, please notify the Electric Administration office (599-1160) at least 24 hours prior to the meeting.  BOARD OF PUBLIC UTILITY COMMISSIONERS The regular meeting of the CITY OF FARMINGTON BOARD OF PUBLIC UTILITY COMMISSIONERS was held Wednesday, October 9, 2013 at 3:00 p.m., in the Executive Conference Room at City Hall, 800 Municipal Dr., Farmington, New Mexico, in full conformity with the laws and ordinances of the Municipality. I. GENERAL 1. Commission members present: Amanda Weese James Spence Jeff Parkes Keith Johns Bill Standley Vic Eicker Carol Cloer Marty Johnson Bill Hall Chris Hunter Commission members absent: Tory Larsen City personnel present: Water/Wastewater Operations Ron Rosen PUC Secretary Amy McKinley Accounting Sheree Wilson Administrative Services Director Andy Mason Utility Business Operations Susan Nipper Electric Utility Director Michael Sims Electric Transmission & Distribution Rodney Romero Electric Generation Jim McNicol Electric Engineering John Armenta Legal Jay Burnham Mayor Tommy Roberts Guests: 2. Chairman Weese called the meeting to order with a quorum present to conduct the business of the Commission. 3. Commissioner Standley made a motion to approve the September 11, 2013 PUC Commission meeting minutes which was seconded by Commissioner Parkes. The motion passed unanimously. II. BUSINESS 1. Water/Wastewater Report: Ron Rosen reported for Mr. Smaka as Mr .Smaka was away at a conference. Mr. Rosen reported on the status of the meter replacement program. Mr. Rosen reported that the purchase of the meters had been approved by the City Council and the funds had been procured by the State revolving fund. Mr. Rosen reported that this project went out for bid but the bids received were considered not complete and were disqualified. Mr. Rosen stated that the original bid process was for the entire purchase of hardware (meters and remote heads) and installation under one contract. Mr. Rosen stated that the new bid process is to split the purchase of the hardware (the meters and the remote reads) away from the installation. Mr. Rosen stated that OMI/CH2MHill will submit a proposal for the installation portion of the project. Mr. Rosen stated the new bid process will be going to Council for consideration at a later date. Commissioner Weese asked if a timetable had been set up for this project. Mr. Rosen stated that much of the labor portion of the project would need to be sub-contracted out due to the large number of meters to be installed in a twelve month period. Mr. Rosen stated that a scope of work has been prepared that will be advertised on behalf -1-  of the City of Farmington and should have it out on the street within the next couple of weeks. Commissioner Hunter asked if there was an advantage to bidding this as a bundle as opposed to splitting it up, is there a loss of economy of scale and accountability in terms of having hardware provider in partnership under one bid rather than parsing it out. Mr. Rosen stated there was actually better accountability by splitting it up. Mr. Rosen stated that by OMI/CH2MHill being able to do the labor under the existing contract as an out of scope, OMI/CH2MHill will be able to oversee the installation and probably forego a lot of unhappy customers if you just have a contractor that is separate from water/wastewater. 2. Water/Wastewater Operations Report: Mr. Rosen stated the lake is full. Mr. Rosen stated issues were still occurring with TDS (Total Dissolved Solids) and a letter was submitted on September 15, 2013 to the EPA detailing the findings of the use of salt at hotels. Mr. Rosen reported that only two hotels were using large water softeners and so this was found non-consequential. Mr. Rosen stated they were then directed to look at commercial laundries and car washes and submit findings to the EPA by October 15, 2013. Mr. Rosen stated that a few car washes were surprisingly using a large amount of salt. Mr. Rosen stated they will be visiting with car washes about this salt usage and ways they could economize on this usage. Commissioner Parkes noted the large spike in the monthly chart and asks if these spikes are a need for concern. Mr. Rosen stated that these spikes are not unusual. Mr. Rosen stated these spikes typically indicate a high water event in the river or a spike from inflow into the wastewater plant. Mr. Rosen stated the spike occurred in September which was a very wet month. Commissioner Hunter asked if there are other solids besides salt the EPA is looking at. Mr. Rosen stated that the correspondence received from EPA Region 6 indicates the EPA is also concerned about sanitary sewer overflows. Mr. Rosen stated the EPA would like to see no sanitary sewer overflows, especially where the raw sewage could go into a water source. Mr. Rosen stated OMI/CH2MHill has an aggressive cleaning program on the sewer system and it has reduced the overflows to only a few per year. 3. Customer Service Report: Ms. Nipper reported on the Customer Service statistics for the calendar year 2013(January – September) and the fiscal year 2013-2014 (July – September). Ms. Nipper stated that approximately 45 families per month qualify and are able take advantage of the utility assistance program. Commissioner Parkes asked what the source of moneys is for the utility assistance program. Ms. Nipper stated that half of the warning tag fee, which is $5.00, is designated for the utility assistance program. Ms. Nipper stated this money is also used to assist residents with other city utilities, not just the electric bill. Commissioner Hunter asked if there were adequate funds generated in this fashion to adequately assistance customers requesting this service. Ms. Nipper stated the funding is adequate to meet the needs of the community. 4. Rules and Regulations Update Ms. Nipper reported that staff met with representatives of the San Juan County Homebuilders Association to discuss the suggested updates to the Rules and Regulations. Ms. Nipper stated this meeting was productive. Ms. Nipper stated that during this meeting an issue arose with Rule No. 6.D.4 which requires more research so that this rule is more definitively written. Ms. Nipper stated that due to this issue, the request to forward to the City Council the recommendation to approve the updates to the Rules and Regulations will be tabled indefinitely. 5. Director’s Report Mr. Sims reported to the Commission that the City Council approved the first electric rate increase the Electric Utility has had in 31 years. Mr. Sims stated this increase will -2- enable the Utility to move forward with modernizing the system and making the system more reliable and efficient. Mr. Sims thanked the Commission for its courage in unanimously recommending the rate increase to the City Council. Commissioner Standley asked if the City Council vote was unanimous. Mr. Sims reported the City Council vote was not unanimous. Mr. Sims asked Mr. McNicol, Generation Manager, to update the Commission on generation activities. Mr. McNicol reported that the three power plants owned and operated by the City of Farmington; Navajo Hydrolectric Plant, Animas Power Plant and the Bluffview Power Plant, have had good reliability performance through the first nine months of the year. Mr. McNicol stated that at this time the Animas Power Plant is in a scheduled shutdown for routine inspections. Mr. Nicol reported that a portion of the cooling tower at the Animas power plant is being removed due to age. Mr. McNicol stated the other portion of the same cooling tower will have some structural upgrades as it will continue to be used for the indefinite future. Mr. McNicol reported that the same contractor will also be executing some thermal performance upgrades to the cooling towers at the Bluffview Power Plant this month. Mr. McNicol stated the Navajo Hydroelectric Plant has been offline due to low river flows. Mr. McNicol stated that when the area gets back into a dryer weather pattern, the river flow will likely be increased and it will be possible to place at least one of the units back online. Mr. McNicol stated the units are available for service. Mr. McNicol reported the Bluffview Power Plant is offline until the end of October. Mr. McNicol stated the Bluffview Power Plant was scheduled to go offline due to the non-availability of inlet air heating capability. Mr. McNicol stated it is necessary to pre-heat the air into the combustion gas turbine whenever it gets below 40 degree Fahrenheit and that is because at certain temperatures approaching freezing with certain relative humidities, the potential of ice formation exists at the inlet to the gas turbine. Mr. McNicol stated there has been a capital project going back to 2012 to replace the unreliable, less efficient air heating system with a new electric heater style system. Mr. McNicol stated the power buyers were able to purchase favorably priced replacement power so there is no negative economic impact to the City by having the Bluffview Power Plant offline this month. Commissioner Hall asked if we are buying power cheaper than we are generating it. Mr. McNicol responded yes. Mr. McNicol stated that the purchase price was affected by the weather, and time of the year. Mr. Sims commented that the purchase price of power could change at any time and it is still much better for the Utility to operate its units. Commissioner Hunter asked what power is being sold for at this time. Mr. McNicol stated the replacement power block that was purchased to cover the outage at the Bluffview Power Plant was made at $43.00 per mWh on peak (16 hours during the day), and $34.00 per mWh off- peak. Commissioner Hunter asked whether, if there were reason to believe the Utility had an extended period of time of low purchase power availability to it, where the Utility could buy a short term block of purchase power, it might be advantageous to shut down the Bluffview Power Plant, or is there an engineering reason where the Utility always wants to run its own power plant. Mr. McNicol responded that in the Utility’s case, the plant that the Utility would elect to shut down first for economic reasons would be the Animas Power Plant because its buss bar cost is more like $70.00 per mWh compared to $50.00 per mWh. Mr. McNicol stated there are reasons why the Utility would want to have resources online within the system for system stability purposes. Mr. Sims stated that there have been occasions in the past where for economic reasons the Animas Power Plant was taken offline. Commissioner Hall asked when the last time was when the Navajo Hydroelectric Plant was maxed out at 32MW. Mr. Sims stated this occurred in 2011. Mr. Sims reported on the status of the San Juan Generating Station activities. Mr. Sims reported that the rains in September raised the level of Navajo reservoir by ten feet. -3-  Commissioner Hunter encourages the insertion of a bill stuffer in the monthly billing to demonstrate the upgrades taking place. Mr. Sims stated that Utility staff is beginning the process of instituting various avenues of communicating with the public about the happenings within the Utility. III. ADJOURNMENT There being no further business to come before the Commission, upon motion duly made and seconded, the meeting was adjourned. The meeting was adjourned at 4:14 p.m. Approved this 13th day of November, 2013. Amanda Weese, Commission Chair -4-  CITY OF FARMINGTON, NM UTILITY FINANCIAL STATEMENTS Fiscal Year 2014 1st Quarter Ending September 30, 2013 -2-  NOTES TO THE UTILITY FINANCIAL STATEMENTS September 30, 2013 1. The Electric Utility’s net income increased by $1 million from FY13. Operating revenue was about $2 million higher. Electric sales were up $1.9 million; mainly due to $2.4 million increase in the PCA and offset with lower sales to industrial customers of $570 thousand. Surplus sales had a slight increase of $6 thousand. Other revenues were up $77 thousand, with increases in auction proceeds and fiber optic leasing. Operating expenses were $950 thousand more than last year. Purchase power increased $1.2 million. While, natural gas costs decreased $767 thousand and coal costs had a small increase of $43 thousand. Salary and benefits were $298 thousand higher. Other expenses decreased by $41 thousand. Non-operating revenues were up by $170 thousand and expenses also increased by $166 thousand. 2. The Water Utility’s operating revenues were $281 thousand less than last year. Water sales were down $286 thousand. The renewal/replacement fees increased $7 thousand, while the water rights acquisition fee had a slight decrease of nearly $2 thousand. Operating expenses increased $87 thousand. The OMI contract had an increase of nearly $38 thousand. Salaries and benefits was lower by $4 thousand. Other operating also had a decrease of $66 thousand. While depreciation expenses increased $119 thousand. Non-operating revenues were lower by about $3 thousand. Non-operating expenses were also lower, by $13 thousand. As a result the net income for the Water Utility decreased by $358 thousand from the prior year. 3. The Wastewater Utility’s net income was $150 thousand lower than FY13. Operating revenues were higher by $48 thousand from last year. Wastewater sales and renewal/replacement fees were increased a combined $53 thousand and environmental taxes decreased almost $5 thousand. Operating expenses increased $202 thousand over FY13. The OMI contract increased $89 thousand and other operating expenses increased $107 thousand. Salaries and benefits along with depreciation had slight increases. Non-operating revenues had a small increase of $1 thousand. Non-operating expenses increased almost $2 thousand. 4. From September 2012 to September 2013, the cash balance changes for the Electric, Water, and Wastewater funds were $(7,531,488), $1,758,211, and $377,378 respectively. For the 1st quarter of FY14, the cash balance changes for the three utilities were $2,001,903, $1,787,600, and $(199,980). -2.1-  CITY OF FARMINGTON, NEW MEXICO ELECTRIC UTILITY ENTERPRISE FUND STATEMENT OF REVENUES AND EXPENSES QUARTER ENDED SEPTEMBER 30, 2013 FY 2014 FY 2013 FY 2012 QTR TO DATE YR TO DATE QTR TO DATE YR TO DATE QTR TO DATE YR TO DATE OPERATING REVENUES: Charges for Sales and Services: Electric $ 27,214,311 $ 27,214,311 $ 25,337,614 $ 25,337,614 $ 26,524,069 $ 26,524,069 Surplus energy/power pool sales 10,801 10,801 3,967 3,967 8,751 8,751 Other revenues 93,924 93,924 16,975 16,975 187,624 187,624 Total Operating Revenues 1. 27,319,036 27,319,036 25,358,556 25,358,556 26,720,444 26,720,444 OPERATING EXPENSES: Salaries and fringe benefits 2,782,756 2,782,756 2,484,982 2,484,982 2,466,760 2,466,760 Purchased power 4,450,419 4,450,419 3,217,673 3,217,673 6,316,100 6,316,100 Natural gas 5,316,609 5,316,609 6,083,921 6,083,921 2,729,979 2,729,979 SJ #4 coal 1,565,224 1,565,224 1,521,897 1,521,897 1,406,353 1,406,353 Other operating expenses 4,276,135 4,276,135 4,317,548 4,317,548 6,030,712 6,030,712 Depreciation 3,294,288 3,294,288 3,108,716 3,108,716 3,086,640 3,086,640 Total Operating Expenses 1. 21,685,431 21,685,431 20,734,737 20,734,737 22,036,544 22,036,544 OPERATING INCOME 5,633,605 5,633,605 4,623,819 4,623,819 4,683,900 4,683,900 NONOPERATING REVENUES (EXPENSES): Interest on investments 99,087 99,087 113,601 113,601 190,199 190,199 Interest expense (3) (3) (31,519) (31,519) (92,408) (92,408) Other fiscal charges (amortization) - - 35,933 35,933 35,933 35,933 Capital contributions 661,147 661,147 475,848 475,848 528,915 528,915 Transfers out (1,607,376) (1,607,376) (1,445,445) (1,445,445) (2,035,096) (2,035,096) Total Nonoperating Revenues (Expenses) (847,145) (847,145) (851,582) (851,582) (1,372,457) (1,372,457) NET INCOME 1. $ 4,786,460 $ 4,786,460 $ 3,772,237 $ 3,772,237 $ 3,311,443 $ 3,311,443  CITY OF FARMINGTON, NEW MEXICO ELECTRIC UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEETS AS OF SEPTEMBER 30, 2013 ASSETS FY 2014 FY 2013 CURRENT ASSETS: Pooled cash and investments $ 61,487,753 $ 69,019,241 Accounts receivable (net of allowance for doubtful accounts) 4,452,853 3,646,440 Interest receivable - 2,422 Regulatory Asset 11,959,695 - Inventories 6,172,580 4,996,265 Prepaid expenses and deposits 978,040 818,389 Total Current Assets 85,050,921 78,482,757 RESTRICTED ASSETS: Cash with fiscal agent - 1,120,422 Customer utility deposits/overpayments 1,810,482 1,767,980 Contingency fund - 1,598,345 Refundable construction deposits 1,117,128 2,175,115 SJCC coal reclamation 388,989 303,554 Total Restricted Assets 3,316,599 6,965,416 PROPERTY, PLANT, AND EQUIPMENT: Utility plant-in-service 426,509,160 412,471,178 Less accumulated depreciation (195,543,920) (183,869,953) Work in progress 28,987,392 20,503,628 Net Property,Plant,and Equipment 259,952,632 249,104,853 DEFERRED CHARGES - 26,643 TOTAL ASSETS $ 348,320,152 $ 334,579,669 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Current portion of revenue bonds $ - $ 3,232,652 Accounts payable 1,611,955 1,056,927 Accrued interest payable - 47,278 Other accrued expenses 1,303,948 1,146,802 Compensated absences 515,563 527,129 Regulatory Liabiltiy - 2,408,611 Total Current Liabilities 3,431,466 8,419,399 CURRENT LIABILITIES: payable from restricted assets 2,927,610 3,943,095 LONG-TERM LIABILITIES: Revenue bonds payable, net of current portion - 122,465 SJCC coal reclamation 479,889 151,776 Compensated absences, net of current 422,157 485,392 Total Long-Term Liabilities 902,046 759,633 TOTAL LIABILITIES: 7,261,122 13,122,127 FUND EQUITY: Contributed capital 20,001,694 19,878,084 Retained earnings 316,270,876 297,807,221 Current year net income 4,786,460 3,772,237 Total Fund Equity 341,059,030 321,457,542 TOTAL LIABILITIES AND FUND EQUITY $ 348,320,152 $ 334,579,669  CITY OF FARMINGTON, NEW MEXICO ELECTRIC UTILITY ENTERPRISE FUND STATEMENT OF CASH FLOWS QUARTER ENDED SEPTEMBER 30, 2013 QTR QTR FY YTD YR TO YR FY 2014 FY2013 CASH CHANGE CASH CHANGE CASH FLOWS FROM OPERATING ACTIVITIES: Operating income $ 5,633,605 $ 4,623,819 $ 5,633,605 $ 18,727,222 Reconciliation of operating income to net Cash provided (used) by operating activities: Depreciation 3,294,288 3,108,716 3,294,288 12,703,354 Regulatory Asset - amortization 397,899 - 397,899 1,989,493 Changes in: Accounts receivable (688,167) (289,452) (688,167) (844,975) Interest receivable - - - 2,422 Inventories 156,635 160,155 156,635 (1,093,853) Prepaid expenses and deposits (1,348,672) (845,542) (1,348,672) (1,237,954) Accounts payable 385,728 (432,513) 385,728 383,869 Other accrued expenses 317,275 251,623 317,275 485,178 Deferred revenue 351,135 (1,647,787) 351,135 (7,743,100) Net Cash Provided (Used) By Operating Activities 8,499,726 4,929,019 8,499,726 23,371,656 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer to other funds (1,607,376) (1,445,445) (1,607,376) (7,621,577) Net cash provided (Used) by capital and related financing activities (1,607,376) (1,445,445) (1,607,376) (7,621,577) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of fixed assets (5,651,489) (2,631,651) (5,651,489) (25,009,381) Change in restricted assets 963,368 (1,159,748) 963,368 3,648,817 Interest expense (3) (31,519) (3) (78,805) Accrued interest payable - 31,519 - (47,278) Aid to construction 661,147 475,848 661,147 2,032,877 Change in restricted liability (962,557) 16,833 (962,557) (1,015,485) Payment of bond principal - - - (3,232,653) Net Cash Provided (Used) By Capital and Related Financing Activities (4,989,534) (3,298,718) (4,989,534) (23,701,908) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 99,087 113,601 99,087 420,341 NET INCREASE IN POOLED CASH AND INVESTMENTS 4. 2,001,903 298,457 2,001,903 (7,531,488) POOLED CASH AND INVESTMENTS, beginning of Qtr 59,485,850 68,720,784 59,485,850 69,019,241 POOLED CASH AND INVESTMENTS, ending $ 61,487,753 $ 69,019,241 $ 61,487,753 $ 61,487,753  CITY OF FARMINGTON, NEW MEXICO WATER UTILITY ENTERPRISE FUND STATEMENT OF REVENUES AND EXPENSES QUARTER ENDED SEPTEMBER 30, 2013 FY 2014 FY 2013 FY 2012 QTR TO DATE YR TO DATE QTR TO DATE YR TO DATE QTR TO DATE YR TO DATE OPERATING REVENUES: Charges for Sales and Services: Water $ 3,930,729 $ 3,930,729 $ 4,217,212 $ 4,217,212 $ 4,059,662 $ 4,059,662 Renewal/replacement fee 524,159 524,159 516,929 516,929 515,930 515,930 Water rights acquisition fee 32,174 32,174 34,104 34,104 32,634 32,634 Other revenues - - - - 500 500 Total Operating Revenues 2. 4,487,062 4,487,062 4,768,245 4,768,245 4,608,726 4,608,726 OPERATING EXPENSES: Salaries and fringe benefits 153,564 153,564 157,353 157,353 126,593 126,593 OMI contract 971,488 971,488 933,564 933,564 894,818 894,818 Other operating expenses 685,176 685,176 751,473 751,473 796,274 796,274 Depreciation 626,271 626,271 506,960 506,960 462,796 462,796 Total Operating Expenses 2. 2,436,499 2,436,499 2,349,350 2,349,350 2,280,481 2,280,481 OPERATING INCOME 2,050,563 2,050,563 2,418,895 2,418,895 2,328,245 2,328,245 NONOPERATING REVENUES (EXPENSES): Interest on investments 15,303 15,303 13,716 13,716 19,143 19,143 Revenue from grants - - 2,510 2,510 - - Interest expense - - (6,802) (6,802) (20,969) (20,969) Miscellaneous revenue - - 2,000 2,000 1,647 1,647 Other fiscal charges (amortization) - - 7,754 7,754 7,754 7,754 Payments in lieu of taxes (223,419) (223,419) (237,586) (237,586) (229,566) (229,566) Total Nonoperating Revenues (Expenses) (208,116) (208,116) (218,408) (218,408) (221,991) (221,991) NET INCOME 2. $ 1,842,447 $ 1,842,447 $ 2,200,487 $ 2,200,487 $ 2,106,254 $ 2,106,254  CITY OF FARMINGTON, NEW MEXICO WATER UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEETS AS OF SEPTEMBER 30, 2013 ASSETS FY 2014 FY 2013 CURRENT ASSETS: Pooled cash and investments $ 10,313,589 $ 8,555,378 Accounts receivable (net of allowance for doubtful accounts) 1,150,254 1,180,959 Interest receivable - 523 Inventories 8,059 8,059 Total Current Assets 11,471,902 9,744,919 RESTRICTED ASSETS: Cash with fiscal agent - 241,772 Customer utility deposits 384,956 374,538 Contingency fund - 344,902 Total Restricted Assets 384,956 961,212 PROPERTY, PLANT, AND EQUIPMENT: Utility plant-in-service 83,404,657 68,593,388 Less accumulated depreciation (36,018,031) (33,774,692) Work in progress 3,217,980 12,127,079 Net Property,Plant,and Equipment 50,604,606 46,945,775 DEFERRED CHARGES - 5,749 TOTAL ASSETS $ 62,461,464 $ 57,657,655 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Current portion of revenue bonds $ - $ 697,565 Accounts payable 615,766 267,400 Accrued interest payable - 10,202 Compensated absences 5,546 4,915 Total Current Liabilities 621,312 980,082 CURRENT LIABILITIES: payable from restricted assets 384,956 374,538 LONG-TERM LIABILITIES: Revenue bonds payable, net of current portion - 26,424 NMFA Loan 1,006,938 1,054,844 Compensated absences, net of current 12,000 9,411 Total Long-Term Liabilities 1,018,938 1,090,679 TOTAL LIABILITIES: 2,025,206 2,445,299 FUND EQUITY: Contributed capital 11,034,181 11,034,181 Retained earnings 47,559,630 41,977,688 Current year net income 1,842,447 2,200,487 Total Fund Equity 60,436,258 55,212,356 TOTAL LIABILITIES AND FUND EQUITY $ 62,461,464 $ 57,657,655  CITY OF FARMINGTON, NEW MEXICO WATER UTILITY ENTERPRISE FUND STATEMENT OF CASH FLOWS QUARTER ENDED SEPTEMBER 30, 2013 QTR QTR FY YTD YR TO YR FY 2014 FY2013 CASH CHANGE CASH CHANGE CASH FLOWS FROM OPERATING ACTIVITIES: Operating income $ 2,050,563 $ 2,418,895 $ 2,050,563 $ 3,781,289 Reconciliation of operating income to net Cash provided (used) by operating activities: Depreciation 626,271 506,960 626,271 2,257,064 Changes in: Accounts receivable (65,825) (69,840) (65,825) 18,384 Interest receivable - - - 523 Accounts payable 380,887 18,515 380,887 351,913 Net Cash Provided (Used) By Operating Activities 2,991,896 2,874,530 2,991,896 6,409,173 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer from other funds (223,419) (237,586) (223,419) (659,510) Capital Grants - 2,510 - - Net cash provided (Used) by capital and related financing activities (223,419) (235,076) (223,419) (659,510) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of fixed assets (996,449) (516,062) (996,449) (5,915,896) Change in restricted assets 7,546 (202,834) 7,546 576,256 Interest expense - (6,802) - (27,551) Accrued interest payable - 6,801 - (10,202) Aid to construction - - - 2,044,192 Miscellaneous revenue - 2,000 - 17,769 Change in restricted liability (7,277) 21,711 (7,277) 10,418 NMFA Loan - - - (47,906) Payment of bond principal - - - (697,563) Net Cash Provided (Used) By Capital and Related Financing Activities (996,180) (695,186) (996,180) (4,050,483) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 15,303 13,716 15,303 59,031 NET INCREASE IN POOLED CASH AND INVESTMENTS 4. 1,787,600 1,957,984 1,787,600 1,758,211 POOLED CASH AND INVESTMENTS, beginning of Qtr 8,525,989 6,597,394 8,525,989 8,555,378 POOLED CASH AND INVESTMENTS, ending $ 10,313,589 $ 8,555,378 $ 10,313,589 $ 10,313,589  CITY OF FARMINGTON, NEW MEXICO WASTEWATER UTILITY ENTERPRISE FUND STATEMENT OF REVENUES AND EXPENSES QUARTER ENDED SEPTEMBER 30, 2013 FY 2014 FY 2013 FY 2012 QTR TO DATE YR TO DATE QTR TO DATE YR TO DATE QTR TO DATE YR TO DATE OPERATING REVENUES: Charges for Sales and Services: Wastewater $ 1,405,271 $ 1,405,271 $ 1,356,483 $ 1,356,483 $ 1,363,990 $ 1,363,990 Renewal/replacement fee 363,155 363,155 358,733 358,733 358,652 358,652 Environmental tax 316,842 316,842 321,678 321,678 326,281 326,281 Total Operating Revenues 3. 2,085,436 2,085,436 2,036,894 2,036,894 2,048,923 2,048,923 OPERATING EXPENSES: Salaries and fringe benefits 68,846 68,846 67,551 67,551 73,518 73,518 OMI contract 684,292 684,292 595,033 595,033 599,238 599,238 Other operating expenses 330,369 330,369 223,028 223,028 240,955 240,955 Depreciation 362,806 362,806 358,195 358,195 344,755 344,755 Total Operating Expenses 3. 1,446,313 1,446,313 1,243,807 1,243,807 1,258,466 1,258,466 OPERATING INCOME 639,123 639,123 793,087 793,087 790,457 790,457 NONOPERATING REVENUES (EXPENSES): Interest on investments 13,838 13,838 12,211 12,211 15,594 15,594 Interest expense (76,013) (76,013) (81,857) (81,857) (88,607) (88,607) Miscellaneous revenue - - 200 200 - - Other fiscal charges (amortization) - - 1,276 1,276 1,276 1,276 Payments in lieu of taxes (88,067) (88,067) (85,429) (85,429) (85,789) (85,789) Total Nonoperating Revenues (Expenses) (150,242) (150,242) (153,599) (153,599) (157,526) (157,526) NET INCOME 3. $ 488,881 $ 488,881 $ 639,488 $ 639,488 $ 632,931 $ 632,931  CITY OF FARMINGTON, NEW MEXICO WASTEWATER UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEETS AS OF SEPTEMBER 30, 2013 ASSETS FY 2014 FY 2013 CURRENT ASSETS: Pooled cash and investments $ 7,410,740 $ 7,033,362 Accounts receivable (net of allowance for doubtful accounts) 428,058 404,881 Interest receivable - 86 Total Current Assets 7,838,798 7,438,329 RESTRICTED ASSETS: Cash with fiscal agent - 39,783 NMED reserve accounts 1,900,156 1,900,156 Contingency fund - 56,753 Total Restricted Assets 1,900,156 1,996,692 PROPERTY, PLANT, AND EQUIPMENT: Utility plant-in-service 44,599,685 43,867,607 Less accumulated depreciation (20,761,760) (19,339,716) Work in progress 3,243,145 1,575,964 Net Property,Plant,and Equipment 27,081,070 26,103,855 DEFERRED CHARGES - 946 TOTAL ASSETS $ 36,820,024 $ 35,539,822 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Current portion of revenue bonds $ - $ 114,783 Accounts payable 187,494 24,363 Accrued interest payable 76,013 82,417 Compensated absences 5,546 4,915 Total Current Liabilities 269,053 226,478 LONG-TERM LIABILITIES: Revenue bonds payable, net of current portion - 4,348 NMED loan 10,135,082 10,765,125 Compensated absences, net of current 12,000 9,411 Total Long-Term Liabilities 10,147,082 10,778,884 TOTAL LIABILITIES: 10,416,135 11,005,362 FUND EQUITY: Contributed capital 7,862,925 7,862,925 Retained earnings 18,052,083 16,032,047 Current year net income 488,881 639,488 Total Fund Equity 26,403,889 24,534,460 TOTAL LIABILITIES AND FUND EQUITY $ 36,820,024 $ 35,539,822  CITY OF FARMINGTON, NEW MEXICO WASTEWATER UTILITY ENTERPRISE FUND STATEMENT OF CASH FLOWS QUARTER ENDED SEPTEMBER 30, 2013 QTR QTR FY YTD YR TO YR FY 2014 FY 2013 CASH CHANGE CASH CHANGE CASH FLOWS FROM OPERATING ACTIVITIES: Operating income $ 639,123 $ 793,087 $ 639,123 $ 2,179,888 Reconciliation of operating income to net Cash provided (used) by operating activities: Depreciation 362,806 358,195 362,806 1,438,070 Changes in: Accounts receivable (24,279) (13,486) (24,279) (30,526) Interest receivable - - - 86 Inventories - 1,494 - - Accounts payable 156,538 (2,394) 156,538 162,648 Net Cash Provided (Used) By Operating Activities 1,134,188 1,136,896 1,134,188 3,750,166 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer from other funds (88,067) (85,429) (88,067) (329,253) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of fixed assets (1,021,734) (162,048) (1,021,734) (2,415,285) Change in restricted assets (238,205) (268,052) (238,205) 96,536 Interest expense (76,013) (81,857) (76,013) (321,027) Accrued interest payable 76,013 81,857 76,013 (6,404) Aid to construction - - - 298,376 Miscellaneous revenue - 200 - 145 NMED loan - - - (630,043) Payment of bond principal - - - (114,783) Net Cash Provided (Used) By Capital and Related Financing Activities (1,259,939) (429,900) (1,259,939) (3,092,485) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 13,838 12,211 13,838 48,950 NET INCREASE IN POOLED CASH AND INVESTMENTS 4. (199,980) 633,778 (199,980) 377,378 POOLED CASH AND INVESTMENTS, beginning of Qtr 7,610,720 6,399,584 7,610,720 7,033,362 POOLED CASH AND INVESTMENTS, ending $ 7,410,740 $ 7,033,362 $ 7,410,740 $ 7,410,740  CITY OF FARMINGTON, NEW MEXICO Electric Revenue and Expenses YR TO DATE Ending September 30, 2013 $30,000,000 26,720,444 27,319,036 (in millions) $25,000,000 25,358,556 9/30/13 9/30/12 % Change $20,000,000 22,036,544 20,734,737 21,685,431 $15,000,000 Electric Oper. Rev. $ 27.3 $ 25.4 7.7% $10,000,000 Oper. Exp. 21.7 20.7 4.6% $5,000,000 Net Income 4.8 3.8 26.9% Cash Balance 61.5 69.0 -10.9% $- 2012 2013 2014 Oper. Rev. Oper. Exp. Water Electric N.I. & Cash Balance (in millions) Oper. Rev. $ 4.5 $ 4.8 -5.9% 69.0 Oper. Exp. 2.4 2.3 3.7% 61.5 Net Income 1.8 2.2 -16.3% Cash Balance 10.3 8.6 20.6% Waste Water 3.8 4.8 Oper. Rev. $ 2.1 $ 2.0 2.4% 2013 2014 Oper. Exp. 1.4 1.2 16.3% Net Income Cash Balance Net Income 0.5 0.6 -23.6% Cash Balance 7.4 7.0 5.4% Water Revenue and Expenses 4,768,245 4,608,726 4,487,062 WW Revenue and Expenses $5,000,000 $4,500,000 $2,500,000 $4,000,000 2,048,923 2,036,894 2,085,436 $3,500,000 $2,000,000 $3,000,000 $2,500,000 $2,000,000 2,349,350 2,436,499 $1,500,000 2,280,481 $1,500,000 1,258,466 1,243,807 1,446,313 $1,000,000 $1,000,000 $500,000 $500,000 $- 2012 2013 2014 Oper. Rev. Oper. Exp. $- 2012 2013 2014 Oper. Rev. Oper. Exp Water N.I. & Cash Balance (in millions) WW N.I. & Cash Balance (in millions) 10.3 8.6 7.0 7.4 2.2 1.8 2013 2014 0.6 0.5 Net Income Cash Balance 2013 2014 Net Income Cash Balance  CITY OF FARMINGTON, NEW MEXICO NMED loan - Construction interest of $1,348,028 was rolled into the loan and combined with draws to date of $12,830,163, the total loan is $14,178,191. For the 1st 6 years in addition to the principal and interest payment of $952,997.13, an annual debt reserve of $158,832.85 and replacement reserve of $118,151.59 are required for this loan, making the total annual payment $1,229,981.58 for years 1 through 6. Even though payments are due on July 1 of the next fiscal year, since the payment will actually be sent in June the principal and interest are shown in the prior fiscal year. PRINCIPAL $ 14,178,191 RATE 3.00% MTHLY PYMT $952,997 Year Ending 30-Jun Water Wastewater Utility Total Principal Interest Principal Interest Principal Interest 2014 - - 648,945 304,052 648,945 304,052 2015 - - 668,413 284,584 668,413 284,584 2016 - - 688,465 264,532 688,465 264,532 2017 - - 709,119 243,878 709,119 243,878 2018 - - 730,393 222,604 730,393 222,604 2019 - - 752,305 200,692 752,305 200,692 2020 - - 774,874 178,123 774,874 178,123 2021 - - 798,120 154,877 798,120 154,877 2022 - - 822,064 130,933 822,064 130,933 2023 - - 846,726 106,272 846,726 106,272 2024 - - 872,127 80,870 872,127 80,870 2025 - - 898,291 54,706 898,291 54,706 2026 - - 925,240 27,757 925,240 27,757 Total $ - $ - $ 10,135,082 $ 2,253,881 $ 10,135,082 $ 2,253,881 NMFA Loan (Animas Waterline) - Loan is for $1,054,844.00 with 1% interest (0.75% interest, 0.25% admin fee). Loan will be paid by the Water Fund. Interest payments are semi-annual. Principal payment is due every May 1st. PRINCIPAL $ 1,054,844 RATE 1.00% ANNUAL PYMT $58,455 Year Ending 30-Jun Water Wastewater Utility Total Principal Interest Principal Interest Principal Interest 2014 48,385 10,069 - - 48,385 10,069 2015 48,869 9,586 - - 48,869 9,586 2016 49,358 9,097 - - 49,358 9,097 2017 49,851 8,603 - - 49,851 8,603 2018 50,350 8,105 - - 50,350 8,105 2019 50,853 7,601 - - 50,853 7,601 2020 51,362 7,093 - - 51,362 7,093 2021 51,875 6,579 - - 51,875 6,579 2022 52,394 6,060 - - 52,394 6,060 2023 52,918 5,536 - - 52,918 5,536 2024 53,447 5,007 - - 53,447 5,007 2025 53,982 4,473 - - 53,982 4,473 2026 54,522 3,933 - - 54,522 3,933 2027 55,067 3,388 - - 55,067 3,388 2028 55,617 2,837 - - 55,617 2,837 2029 56,174 2,281 - - 56,174 2,281 2030 56,735 1,719 - - 56,735 1,719 2031 57,303 1,152 - - 57,303 1,152 2032 57,876 579 - - 57,876 579 Total $ 1,006,938 $ 103,698 $ - $ - $ 1,006,938 $ 103,698 Total Debt Service Requirements (NMED & NMFA loan payments) Year Ending 30-Jun Water Wastewater Utility Total Principal Interest Principal Interest Principal Interest 2014 48,385 10,069 648,945 304,052 697,330 314,122 2015 48,869 9,586 668,413 284,584 717,282 294,170 2016 49,358 9,097 688,465 264,532 737,823 273,629 2017 49,851 8,603 709,119 243,878 758,970 252,481 2018 50,350 8,105 730,393 222,604 780,743 230,709 2019 50,853 7,601 752,305 200,692 803,158 208,294 2020 51,362 7,093 774,874 178,123 826,236 185,216 2021 51,875 6,579 798,120 154,877 849,995 161,456 2022 52,394 6,060 822,064 130,933 874,458 136,994 2023 52,918 5,536 846,726 106,272 899,644 111,808 2024 53,447 5,007 872,127 80,870 925,574 85,877 2025 53,982 4,473 898,291 54,706 952,273 59,179 2026 54,522 3,933 925,240 27,757 979,762 31,690 2027 55,067 3,388 - - 55,067 3,388 2028 55,617 2,837 - - 55,617 2,837 2029 56,174 2,281 - - 56,174 2,281 2030 56,735 1,719 - - 56,735 1,719 2031 57,303 1,152 - - 57,303 1,152 2032 57,876 579 - - 57,876 579 Total $ 1,006,938 $ 103,698 $ 10,135,082 $ 2,253,881 $ 11,142,020 $ 2,357,579  CITY OF FARMINGTON – PUBLIC WORKS DEPARTMENT (PW) Division: Water-Wastewater Program: Water & Wastewater Report Prepared by: Jeff Smaka Title: Public Works Director Reporting Period: Oct 1, 2013 through Oct 31, 2013 PUC Meeting Date: 13 November 13 ACCOMPLISHMENTS • Waste Water Treatment Plant. Phase III Design – HDR Engineering has submitted the design drawings for the plant upgrades. Staff is reviewing the layout and design flow capacity of the proposed improvements. Construction of Medium Rate Activated Sludge (MRAS) basin in 2014 budget to provide redundancy at the WWTP and maintain compliance with EPA permit. NMED approved funding the waste water treatment plant upgrade in the amount of $10,000,000 through the Clean Water State Revolving Loan Fund (CWSRF) program. • O& M Contract. The current 8 year Operation and Maintenance Contract with CH2MHILL OMI expires on Dec 31, 2015. • Utility Rates. Red Oak Consulting working on the rate study. • On-Call Engineering Service Contract. o 2P Waterline Project - HDR has submitted 90% design drawings. City Council included this project in the City’s Infrastructure Capital Improvement Plan submitted to the state – estimated cost six million dollars. o LaPlata Highway – Project design for water line replacement completed by City staff. Awaiting permit approval, will be scheduled pending approval of NMDOT permit. • Capital Project Review. o Capital Improvement Project  Meter Replacement - NMED: Drinking Water State Revolving Loan Fund Program. Loan amount $5,959,000. The plans and specifications approved by NMFA and NMED. Staff is reworking project to purchase water meters only and we are working with CH2MHill-OMI for a cost to do water meter installation. o Renewal and Replacement rd  23 Street Project • Phase 4 – Santiago – 23 St to 25 St - Summer 2014 rd th  Wildflower Parkway - 4P pump station - Working on acquiring property for pump station. Budgeting for the construction of new pump station FY14. th  Municipal Drive - Replace existing 24” steel waterline from 1C tank to 20 Street with a 24” PVC waterline. – 98% complete  Court Ave - Apache to Shiprock - Replace existing 4” and 6”CI waterline with a 8” PVC waterline – completed  Knollcrest Dr - Windsor to Kingsway - Replace existing 6” CI waterline with an 8”PVC waterline - completed  Holiday Dr - Windsor to Kingsway - Replace existing 6” CI waterline with an 8”PVC waterline - completed  Schwartz Ave - Animas to Broadway – Replace existing 6” CI waterline with an 12” PVC waterline - completed  Blake St - Main to Apache - Replace existing 6” CI waterline with an 8”PVC waterline - Summer 2014 th  20 St – Municipal to Sunset - Replace existing 24” and 16” steel waterline Street with a 24” PVC and 16” PVC waterline. – Summer 2014  o Pressure Reducing Valve (PRV)  PRV installation at Main Street and Gila Street - Construction 2013  PRV installation at Main Street and Red Lobster - Construction 2013  o Sewer Main Extension  Brehend Ave - Apache St to Comanche St Replace existing 6” clay sewer line with 8” PVC sewer line. – completed  Schwartz Ave – Broadway to Cedar St – Replace existing 6” clay sewer line with 8” PVC sewer line - completed  Piñon Hills Blvd Off-Site Sewer and Lift Station Improvements – Completed   Lift Station 5 Improvements - RMCI of Albuquerque - Rehab of the existing lift station which includes the mechanical, pumping equipment and electrical systems of lift station 5. Notice to Proceed for July 22 - Phase 1 of the project is the reconstruction of the wet well, replacement of the piping and mechanical system. Phase 1 is 98% complete, Lift Station is back in operation:: Phase 2 - Electrical submittals are being reviewed by HDR Engineering Inc. - Notice to Proceed will be issued once submittals are approved.  Lift Station 3 Improvements – HDR Engineering is designing the rehab of the existing lift station which includes the mechanical, pumping equipment and electrical systems. Design to be completed spring 2014. • Operational Review. • Human Resource Issues. Job evaluations.  Positions none • Budget. - FY14 • COF Department Support. Survey support to acquire manhole data for future sewer collection system model continues • Annual Utility Contract. - Annual utilities contract awarded to TRC Construction by City Council th on August 6 • Federal Funding – o Water Projects - Meter Replacement Project  City Council to approved final loan application to New Mexico Finance Authority (NMFA) - loan documents completed in January 2013. o Wastewater Projects – submitting for funding in 2014 -  WWTP – MRAS Basin, Final Clarifier, Solids Handling Facility & UV Disinfection – Estimated Cost $10,000,000 - NMED funding source is the Clean Water State Revolving Loan Fund (CWSRF) Program – Project approved by NMED, Staff will be presenting project to City Council on Nov 5 requesting permission to draft ordinance as required by NMED for loan. • PROJECTS / INITIATIVES REQUIRING INTER-DIVISIONAL COORDINATION • Farmington Reach – Navajo Municipal Pipeline. o Working with Bureau of Reclamation and Navajo Tribe for agreements to transfer title to the City for the tank and pipeline project along with an Operation, Maintenance and Replacement (OM&R) agreement as required by Federal law - March 2009. • WWTP NPDES PERMIT – EPA. City has received the EPA final permit. New permit went into effect on November 1, 2010, permit expires October 31, 2015. - City staff and OMI are reviewing the permit regarding Total Dissolved Solids (TDS) limits 400mg/l requirement. On July 19, 2013 the City received an Administrative Order (AO) from EPA Region 6 which specifies the activities the City is to accomplish along with due dates for each activity, these tasks and due dates correspond to those proposed in the City’s letter to EPA. After each task is completed as outlined in the AO a written report for that completed task is due to EPA Region 6. • Snowpack - Water Year 2013 - BOR reporting site down  Animas River Basin - %  San River basin - % ATTACHMENTS WATER FUND (602) – RENEWAL & REPLACEMENT WASTEWATER FUND (603) – RENEWAL & REPLACEMENT GRAPH WATER REVENUE FY 10 – FY14  WATER Renewal & Replacement Water Fund - 602 FY10 FY11 FY12 FY13 FY14 FY14 REVENUES Actual Actual Actual Actual Y-T-D Budget Renewal /Replacement Fee $1,733,666 $1,943,342 $2,018,436 $2,037,806 $524,158 $2,082,909 --------------- --------------- $ --------------- , , --------------- --------------- --------------- STATE GRANT - $825,000 REVENUE TODATE $11,525,254 PROJECTED REVENUE FY07 - FY14 $13,608,163 FY10 FY11 FY12 FY13 FY14 FY14 Actual Actual Actual Actual Y-T-D Budget EXPENDITURES 602-5543 RENEWAL/REPLACEMENT 651.70-60 Construction $1,375,293 $1,518,581 $1,706,469 $2,278,859 $943,616 $2,750,000 --------------- --------------- --------------- --------------- --------------- --------------- $9,770,965 Largo & Main PRV estimated $250,000 20th St - Red Lobster PRV estimated $150,000 Knollcrest Dr - Windsor to Kingsway estimated $200,000 Holiday Dr - Windsor to Kingsway estimated $150,000 Troy King - Piedras south to US 64 estimated $500,000 20th St - Municipal to Sunset estimated $700,000 Behrend - Apache to Commanche estimated $80,000 Coyote Drive - LaPlata Hwy to end estimated $70,000 Blake St - Main to Apache estimated $100,000 Foothills Dr - Hill & Dale to Main St estimated $700,000 N Court Av - Apache to Shiprock estimated $250,000 Schwartz - Broadway to Animas estimated $95,000 Polyline Service Replacement estimated $100,000 Fire Hydrant 1950 Replacement estimated $100,000 $3,445,000 PROJECTED EXPENDITURES FY07 - FY14 $13,215,965  WASTEWATER Renewal & Replacement Wastewater Fund - 603 FY10 FY11 FY12 FY13 FY14 FY14 REVENUES Actual Actual Actual Actual Y-T-D Budget Charges for Utility Services Renewal /Replacement Fee $1,229,258 $1,385,827 $1,436,494 $1,441,591 $363,155 $1,494,391 --------------- --------------- --------------- --------------- --------------- --------------- REVENUE TODATE $7,476,563 PROJECTED REVENUE FY07 - FY14 $8,970,954 FY10 FY11 FY12 FY13 FY14 FY14 Actual Actual Actual Actual Y-T-D Budget EXPENDITURES 603-5543 RENEWAL/REPLACEMENT 751.70-60 Construction $592,933 $1,152,988 $501,814 $685,848 $212,623 $1,257,531 --------------- --------------- --------------- --------------- --------------- --------------- Subtotal Capital $592,933 $1,152,988 $501,814 $685,848 $212,623 $1,257,531 Projects FY07- FY13 $4,364,995 Lift Station #5 Rehab $915,000 MRAS Basin $1,000,000 Lift Station # 3 Rehab $800,000 Sewer Rehab $750,000 Scrubber Rehab $250,000 Manhole Rehab $150,000 Mainline Rehab $300,000 PROJECTED EXPENDITURES FY07 - FY14 $8,811,624  BUDGET TO ACTUAL COMPARISON PER MONTH FY 2010 ** FY 2011 ** FY 2012 ** FY 2013 ** FY 2014 ** Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual JUL 1,067,568 1,322,552 1,107,254 1,485,229 1,176,228 1,630,402 1,165,141 1,696,293 1,196,227 1,657,429 AUG 1,067,568 1,420,178 1,107,254 1,303,558 1,176,228 1,588,665 1,165,141 1,725,060 1,196,227 1,495,029 SEP 1,067,568 1,290,632 1,107,254 1,330,247 1,176,228 1,410,448 1,165,141 1,362,607 1,196,227 1,349,906 OCT 1,067,568 1,010,908 1,107,254 1,110,501 1,176,228 1,184,374 1,165,141 1,338,557 1,196,227 - NOV 1,067,568 735,252 1,107,254 886,031 1,176,228 887,002 1,165,141 936,091 1,196,227 - DEC 1,067,568 791,478 1,107,254 810,541 1,176,228 832,980 1,165,141 839,767 1,196,227 - JAN 1,067,568 760,713 1,107,254 835,520 1,176,228 851,299 1,165,141 851,542 1,196,227 - FEB 1,067,568 740,561 1,107,254 838,187 1,176,228 813,970 1,165,141 401,518 1,196,227 - MAR 1,067,568 727,418 1,107,254 824,263 1,176,228 823,706 1,165,141 788,759 1,196,227 - APR 1,067,568 889,702 1,107,254 951,749 1,176,228 1,028,028 1,165,141 958,767 1,196,227 - MAY 1,067,568 1,099,110 1,107,254 1,116,639 1,176,228 1,317,793 1,165,141 1,194,193 1,196,227 - JUN 1,067,568 1,521,671 1,107,254 1,425,556 1,176,228 1,570,209 1,165,141 1,520,186 1,196,227 - TOTAL: 12,310,175 12,918,021 13,938,876 13,613,340 4,502,364 REVENUE PER CLASS/CUSTOMERS FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual R 5,901,722 5,742,019 6,338,837 5,962,727 6,275,000 6,509,749 6,481,728 6,464,202 6,676,180 2,184,637 GS 3,400,119 2,923,899 3,294,004 3,081,024 3,458,704 3,441,527 3,447,238 3,107,129 3,550,655 1,244,500 CU 1,247,750 994,443 1,062,666 1,118,738 1,117,925 1,096,582 1,129,104 1,123,093 1,151,686 296,763 REC 212,000 205,146 227,751 217,349 210,000 264,281 225,000 264,196 250,000 104,592 FH 92,225 80,933 96,793 89,526 125,000 112,642 118,750 76,419 118,750 31,579 R&R 1,419,550 1,733,666 1,744,954 1,943,342 1,910,000 2,018,437 2,055,322 2,037,805 2,082,909 524,158 GRANTS 10,821,688 5,814,967 3,226,226 1,292,048 500,000 284,788 - 2,510 - - OTHER 537,453 630,069 1,740,218 1,720,237 1,018,114 747,207 524,552 2,595,398 524,552 116,135 TOTAL: 23,632,507 18,125,142 17,731,449 15,424,991 14,614,743 14,475,213 13,981,694 15,670,752 14,354,732 4,502,364 SCHEDULE OF CUSTOMERS R = Residential GS = General Service, Single (commerical CU = Contract Users (bulk water users) REC = Recreational/Raw WaterWater Users (city facilities and FH = Fire Hydrants R&R = Renewal & Replacement OTHER = Miscellaneous Monthly Activity Report October 2013 Prepared for City of Farmington, Public Utility Commission ADMINSTRATION OPERATIONS Safety Training and Incidences as of 10-28-13 TAILGATE TOPICS OCT 2013 YTD Total Safety Training Hours 186 1871.15 Incidences/accidents 0 4 Motor Vehicle Incidences/accidents 1 2 October’s data is partial. DELIVERABLES FOR DISTRIBUTION & COLLECTION SYSTEM Deliverables as of 10-28-13 TASK TARGET YTD % COMPLETED Pressure Regulator Inspection 57 17 30% Valve Exercise 4895 4162 85% Storm Drain Cleaning 678 900 133% Dead End Main Flushing 492 369 75% Sewer Main Cleaning 6" - 24" 307560 199167 52% Sewer Main Cleaning 24" - UP 9800 10965 112% Sewer Main Video Inspection 184800 126036 59% Fire Hydrant Inspection 2565 2381 72% Air Relief Valve Inspection 147 149 101% Permaloggers 100 100 100% Water breaks as of 10-28-13 OCT 2013 YEAR-TO-DATE Main line breaks 1 Main line breaks *36 Service line breaks 12 Service line breaks 144 Total 13 Total 180 *Adjusted YTD mainline breaks – total remains at 36 Estimated water loss for October is 67,550 (gallons). New Meters and New Sewer Taps as of 10-28-13 OCT 2013 YEAR-TO-DATE NEW METERS 5 93 SEWER TAP 9 74 Other activities as of 10-28-13 TASK YTD TASK YTD Check Leak - 204 252 Sewer Calls - 79 105 Dirty Water - 15 20 Water Breaks - 137 180 Irrigation - 41 46 Turn Water On/Off - 241 282 Low Water Pressure - 26 30 Fire Hydrant Repairs - 15 17 Frozen Meter or Water Line - 306 306 Distribution/Meter Repairs 76 443 No Water - 102 112 Collection Repairs - 41 551 WATER TREATMENT OPERATIONS Farmington Lake Elevations – Monthly Average Comparison for 2012 to 2013 5638.00 5636.00 E l 5634.00 2013 e v 5632.00 a t 5630.00 i 5628.00 o 2012 n 5626.00 5624.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2012 5630.95 5628.25 5628.85 5631.63 5634.98 5635.69 5633.96 5630.78 5628.70 5628.71 2013 5634.68 5633.63 5634.58 5634.77 5635.02 5635.46 5634.28 5633.85 5634.88 5635.96 Water Treatment Plants – Total Effluent to System Comparison for 2012 to 2013 700 600 500 Gallons (Millions) 400 2012 300 2013 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2012 242.566 234.059 269.349 375.305 510.642 598.929 578.981 557.870 451.947 364.366 2013 257.025 218.347 258.694 329.580 414.543 531.199 573.921 495.340 375.268 268.759 2012 2013 Year-to-Date Treated Water 700 600 500 400 MG 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 242.57 234.06 269.35 375.31 510.64 598.93 578.98 557.87 451.95 364.37 253.02 236.80 2013 257.03 218.35 258.69 329.58 414.54 531.20 573.92 495.34 375.27 268.76 WASTEWATER TREATMENT OPERATIONS FLOW 6.00 5.50 5.00 4.50 4.00 3.50 3.00 MGD 2.50 2.00 1.50 1.00 0.50 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec INF 5.38 5.28 5.19 5.52 5.53 5.69 5.69 5.62 0.00 5.22 EFF 4.82 4.73 4.68 5.01 4.97 5.18 5.31 5.42 5.46 4.89 LIMIT 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 NOTE: Influent Flow Recorder was out of service from 8/21/13 to 10/23/2013 due to lightning that burned up electrical equipment. Final Effluent Total Flow [MG] 132.04 Final Effluent Average Flow [MG] 4.89 Total Number Septic Trucks 408 Total Gallons Septic Trucks 445035 PRETREATMENT ACTIVITES Completed 96% of grease trap inspections. Completed Industrial Pretreatment Program annual sampling at Alsco and Halliburton. Completed confirmation samples on one remaining hotel for the salinity study. Participated in the Household Hazardous Waste day. Approximately 287 cars participated. Compiled water meter consumption data for carwashes, hotels and laundries with water softeners to identify which industries/commercial users utilized the most salt per gallon of water. Data concludes that it is carwashes that contribute more TDS than other industries. Drafted letter to carwashes urging them to work with the City to reduce the amount of salt used in water softeners. Drafted letter to industries/commercial users with flow greater than 25,000 gallons per day and therefore required to acquire an Industrial Discharge permit.  Acronyms and Abbreviations CM Corrective Maintenance CMMS Computerized Maintenance Management System gpd Gallons per day gpm Gallons per minute hp Horsepower mg millions of gallons mg/L Milligrams per liter mgd Million gallons per day NMED New Mexico Environment Department NPDES National Pollutant Discharge Elimination System O&M Operation and Maintenance OMI Operations Management International OOS Out of Service PdM Predictive Maintenance PM Preventive Maintenance ppm Parts per Million PRV Pressure Reducing Valves PRVs Pressure Reduced Valves QA/QC Quality Assurance/Quality Control SCADA Supervisory Control and Data Acquisition SMP Standard Maintenance Plan SOP Standard Operating Procedure TTHMs Trihalomethanes USEPA U.S. Environmental Protection Agency WEP Work Execution Plan WWTP Wastewater Treatment Plant