Public Utility Commission

Ie 6 ~ City 01 P",.",i"gton ,v#.ttu'/ 'VIIsttuv#.te., AG } . ­ ...... for the regular meeting of the Public Utility Corn mission of the City of Farmington, Wednesday, July 9, 2014, at 3:00 PM at 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 June 4, 2014 special meeting submitted for approval .......... .. ...... .... .. .. 1 II, BUSINESS A. San Juan Update - Jim McNicol (30 min) .................. ...... .. ................ .. .... .. ...... .. .. ... 2 B. Water/Wastewater Report - Jeff Smaka (5 min) .......................... .. ............ .. .. ...... .. 3 C. Water/Wastewater Operations Report - Ron Rosen (5 min) ................................. 4 D. Electric Utility Report- Sue Nipper (10 min) ........................................ ............ .. ...... 5 III. ADJOURNMENT The next regular meeting will be on August 13, 2014 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 special meeting of the CITY OF FARMINGTON BOARD OF PUBLIC UTILITY COMMISSIONERS was held Wednesday, June 4, 20]4 at 3 :00 p.m., in the Exccutive Conference Room at City Hall, 800 Municipal Dr., Farmington, New Mexico, in full conformity with the laws and ordinances of the Municipality. r. GENERAL I. Commission members present: Amanda Weese James Spence Jeff Parkes Tory Larsen Carol Cloer Marty Johnson Chris Hunter Commission members absent: Keith Johns Bill Standley Vic Eicker Bill Hall City Council Liaison: Gayla McCulloch City personnel present: Water/Wastewater Jeff Smaka CH2MHiIIOMI Ron Rosen PUC Secretary Amy McKinley Ulility Business Operations Susan Nippcl· Electric Utility Director Michael Sims Electric Transmission & Distribution Rodney Romero Electric Generation Jim McNicol Electric Engineering John Armenta Adm in istrative Serv ices Andy Mason Accounting Sheree Wilson 2. Chair Weese called the meeting to order at 3:00 PM with a quorum present lo conduct the business of the Commission. 3. Commissioner Cloer made a motion to approve the Minutes of the May 14, 20]4 meeting. Commissioner Johnson seconded the motion and the motion passed unanimously. II. BUSINESS 1. NMMEAA Gas Prepay Agreement: Mr. Sims stated the purpose for calling the special meeting of the PUC was to discuss the proposed amendment to the New Mexico Municipal Energy Acquisition Authority CNMMEAA) Gas Prepay Agreement. Mr. Sims stated this presentation vvas for informational purposes only and that no recommendation from the Commission was required. Ms. Nipper reviewed a presentation detailing the current gas prepay agreement between NMMEAA and the City of Farmington as well as the changes offered in the proposed amendment. Discussion ensued regarding the proposed amended agreement. Chair Weese asked how the situation changed so that action by the Commission was no longer necessary. - 1­  Mr. Sims stated that in discussions he had with Mayor Roberts, Mayor Roberts had some questions of his own regarding the proposed amendment and since the documentation continued to be in a state of flux, Mr. Sims and Mayor Roberts both agreed that it was unfair to ask the Commission to make a recommendation on such an important issue without more information; information staff was not prepared to offer at the time. Mr. Sims reported that Mayor Roberts stated if the Commission chose to ofler a recommendation, the Mayor would be amenable to it, but the Commission was not obligated to offer a recommendation. Chair Weese asked if the City Council would have intormation that was not available to the Commission at this special meeting. Mr. Sims stated he ,vas not aware of any information regarding this matter that would be presented to the City Council that had not already been presented to the Commission. Mr. Sims stated the information presented to the Commission was information that was on Iy recently made available. While a recommendation from the Commission was not required, Commissioner Hunter made a motion to recommend to the City Council the adoption of a resolution to continue the finalization of the proposed NMMEAA gas prepay amendment for signature by Mayor Roberts. Vice Chair Spence seconded the motion. The motion passed unanimously. 2. Water/Wastewater Report: Mr. Smaka presented the WaterlWastewater report for the month of May. Mr. Smaka reported that NMED approved funding of the waste water treatment plant Upgrade through the Clean Water State Revolving Loan Fund program . Mr. Smaka stated the loan documents are in the hands of the NMED legal department. Mr. Smaka stated Red Oak Consulting is working on the rate study. Mr. Smaka anticipates receiving information regarding the rate study from Red Oak by the end of June. Mr. Smaka reported on the various water and wastewater projects thmughout the city. 3. Water/Wastewater Operations Repoli: Mr. Rosen reported on water/wastewater operations for the month of May. Mr. Rosen stated the household hazardous waste drop-ofI day was held in May and 362 cars came to the drop-off location. Commissioner Larsen stated he managed the Aztec household hazardous waste drop-ofI location and approximately 125 cars came through the Aztec location. Mr. Rosen stated the meter replacement project has begun and approximately 590 meters have been installed at the date of this meeting. 4. Electric Utility Report: Ms. Nipper presented the May and year to date Electric Utility Report. The Commission had no questions. 5. Director'S Report: Mr. Sims reported on activities of the Electric Utility. Mr. Sims stated that all of the plants are up and running. The Navajo plant is on line but operating at minimum load. Mr. Sims stated the Compliance division continues to work on the permit process for the new outfall at the Bluffview Plant. Mr. Sims reported on the many activities of the Engineering division and briefly reviewed the status of the contract with Ward Electric to replace a large amount of distribution poles, many transmission structures and also conductor. Mr. Sims stated this contract was recently completed and engineering staff are presently performing an audit on the activities of the contractor. Mr. Sims stated that electric utility crews are also performing similar work in areas throughout the system. -2­  Ill. 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 4:46 p.m. Approved this 9th day ofJuly, 2014. Amanda Weese, Chair San Juan Generating Station New Capacity Opportunity STAT US OF PLA NT RESTR UCTURIN G NEGO T IAT ION S A N D MEDIATION JULY 1, 20 14 -2­ Today's Business Provide Council a status report on San Juan Generating Station restructuring negotiations and mediation regarding the opportunity for COF to increase capacity in SJ Unit 4 Discuss recently negotiated non-binding agreements We are not asking for action/ authorization today We do not yet have a definitive agreement to evaluate and bring forward for a final decision by Council -2. 1­ Background 2012-20131RP Pace Global! FEUS Presentation to Council on 7/2/13 SJ new capacity option - favorable economics at $500/KW Authorization for FEUS to participate in negotiations Cou ncil-authorized conditions for good-faith participation: o Up to 65 MWs additional capacity in Unit 4 o Evaluated cost Not-to-Exceed $400/KW o No initial financial transaction required o Obtain favorable terms and conditions -2.2 ­ Activities During Past 12 Months Approximately 40 days of Face-to-Face negotiations and mediated settlement discussions Numerous additional conference calls among participants Formal mediation since 1/5/14 Recent three-day sessions in Denver which produced: o Non-binding Resolution for San Juan Project Restructuring o Non-binding Remainers' Term Sheet o Interim Fuel and Capital Funding Agreement -2.3­ Agreements Resolution for San Juan Project Restructuring. Non-binding. Establishes the terms and conditions for the exit of four plant owners and ownership structure for the remaining five owners. Remainers' Term Sheet. Non-binding. Establishes new ownership percentages and future cost allocations. Details the timing and amounts of financial consideration that will be provided to COF and other remaining participants. Interim Fuel and Capital Funding Agreement. Details payments required for interim capital expenditures including SNCRs and the transfer of Exiters' fuel inventories. While binding in nature, transactions made by PNM fully offset the additional capital contributions required of COF in 2014. -2.4­ Status Non-binding agreements are principally to recognize terms on which participants have reached agreement Allows PNM to respond to New Mexico PRC order Allows California owners to provide status to California Energy Commission Provides a path forward to engineer, procure, and install new SNCRs on Units 1 and 4 by Q4 2015 deadlines and comply with the Alternate SIP Assures on-going availability of COF's existing 43 MW capacity allocation Enables interim and long-term fuel supply activities to proceed in earnest -2.5­ Tentative Terms The COF will receive a total of $14.84M of financial consideration as an offset to the costs associated with another 65 MWs of owned capacity $11.39M will be paid on 1/1/15 The remaining $3.45M will be received monthly from 1/1/15 through 12/31/17 The evaluated cost of the additional 65 MWs is $419/KW This evaluated cost includes a "high scenario" engineer's estimate for plant decommissioning in 2037 ($258M) Current plant decommissioning permit requirement obligations are only $30M The evaluated cost with current decom obligations only is $296/KW Evaluated capacity cost range: $296/KW to $419/KW -2.6­ Terms Continued New capacity occurs on 1/1/18, pending a decision by Council to acquIre PNM offsets COF's additional, interim SNCR and other capital costs Environmental liabilities are based on pre and post exit date plant pa rtici pation Mine reclamation remains a shared obligation among current and future plant owners. Long-standing trust continues to be pre­ funded. -2.7­ Remaining Items Plant decommissioning logistics Long term fuel supply Indemnification language Regulatory approvals EPA approval Governing boards' approvals At this point, there is not a definitive agreement nor a recommendation from FEUS pertaining to new capacity acquisition -2.8­ Path Forward On-going FEUS participation towards the goal of obtaining a negotiated definitive agreement ..... Which we can then evaluate and advance to our governing body for a final decision Timeline to reach definitive agreement is up to six months (December 2014) -2 .9­  CH2MHILL® Monthly Activity Report June 2014 Prepared for City of Farmington, Public Utility Commission -4­ ADMINSTRATION OPERATIONS Safety Training and Incidences as of 6-30-14 TAILGATE TOPICS JUNE 2014 YTD Total Safety Training Hours 135 1034.50 Incidences/accidents 1 4 Motor Vehicle Incidences/accidents 0 0 DELIVERABLES FOR DISTRIBUTION & COLLECTION SYSTEM Deliverables as of 6-27-14 TASK TARGET YTD % COMPLETED Pressure Regulator Inspection 59 28 47% Valve Exercise 2312 703 30% Storm Drain Cleaning 300 57 19% Dead End Main Flushing 492 246 50% Sewer Main Cleaning 6" - 24" 307560 166670 54% Sewer Main Cleaning 24" - UP 3266 2300 70% Sewer Main Video Inspection 184800 86924 47% Fire Hydrant Inspection 2600 1069 41% Air Relief Valve Inspection 149 148 99% Water breaks as of 6-27-14 JUNE 2014 YEAR-TO-DATE Main line breaks 1 Main line breaks 24 Service line breaks 10 Service line breaks 63 Estimated water loss for June => 45,460 (gaJlons) New Meters and Sewer Taps as of 6-27-14. JUN 2014 YEAR-TO-DATE NEW METERS 19 71 SEWER TAPS o 41 -4 .1­ WATER TREATMENT OPERATIONS Farmington Lake Elevations - Monthly Average Comparison for June 2013 and 2014 5637.00 ••••• ••••••••• ••••••••• ........·1·· .~... • ••• 5636.00 ~. E 5635.00 ~ ~ ~ I ~ " / e v 5634.00 """­ ./ a t 5633 .00 .. .7 i 0 5632 .00 n 5631.00 5630.00 Jan Feb Mar Apr May Jun -2013 5634.68 5633.63 5634.58 5634.77 5635 .02 5635.46 2014 5633.02 5633.37 5634.75 5635.93 5636.13 5635.77 • • • • • Max Lake Capacity 5636.41 5636.41 5636.41 5636.41 5636.41 5636.41 Water Treatment Plants - Total Effluent to System Comparison for June 2013 and 2014 600 500 ./ Vi' 400 , /' 4­ c ,g .­ ~ ~' ~ 300 II""'" ~ ~~ III c ..2 rn ~ t!) 200 100 0 January February March April May June -2013 257.025 218.347 258.694 329.580 414 .543 531.199 ,2014 243.941 227.214 272.812 338 .938 349 .008 416.710 -4.2­ WASTEWATER TREATMENT OPERATIONS FLOW 6.00 5.50 5.00 ~ § ~ ~ ~ 4.50 ~ ~ ~ ~ ~ ~ ~ ~ ~ 4.00 ~ ~ ~ ~ ~ ~ 3.50 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 3.00 ~ ~ ~ ~ ~ ~ ~ ~ ~ 2.50 ~ ~ ~ 2.00 ~ ~ ~ ~ ~ ~ ~ ~ 1.50 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1.00 ~ ~ ~ ~ ~ ~ ~~ ~ 0.50 0.00 ~~ Jan ~~ Feb :s~ Mar ~ lS: Apr May Jun ~ Jul Aug Sep Oct Nov Dec _INF 5.20 5.08 5.12 5.24 5.44 5.42 ISSSlEFF 4.71 4.62 4.66 4.83 5.04 5.02 -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 Final Effluent Total Flow [MG] 150.63 Final Effluent Average Flow [MG] 5.02 Total Number Septic Trucks 453 Total Gallons Septic Trucks 501,184 -4.3­  DMR TDS NET INC REAS E 6GO ~oo 401 ] +_ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ __ F'EIUA tT ....' tT _ _ _ _ _~='_ ~~_ JO O 'DO IGO 1/1 1122 2112 Ji'5 Jf?<3 4(16 ~,J7 ~ ellS 7m 7i:! O Si.<:.O SI l O lOll 10/22 1111 2 12 3 r212. 1/ 1'; O.te (1/1/2014 10 12131(2014) , OIrlR TOS ul!;t I:'ICRfASE PRETREATMENT ACTIVITES • Collected samples from the WWTP for the monthly local limits (TBLL's). • Composited the samples and sent to Hall Environmental to be analyzed. • Attended webinar for the Linko software. Downloaded files into Linko Host. • Submitted the Industrial Pretreatment permitted industries to Diane Smylie. • Renewed the discharge permit for San Juan Regional Medical Center -4.4­  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 f\IMED New Mexico Environment Department f\IPDES 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 -4.5 ­ USEPA U.S. Environmental Protection Agency WEP Work Execution Plan WWTP Wastewater Treatment Plant -4.6­  CH2MHILL® 2nd Quarter Business Review Farmington Wastewater & Water Utilities Prepared for City of Farmington, Public Utility Commission -4.7­ SAFETY TRAINING AND INCIDENCES TAILGATE TOPICS APR-14 MAY-14 JUN-14 YTD Total Safety Training Hours 135 135 135 1034.50 Incidences/accidents 0 0 1 4 Motor Vehicle Incidences/accidents 0 0 0 0 DELIVERABLES FOR DISTRIBUTION & COLLECTION SYSTEM TASK TARGET YTD % COMPLETED Pressure Regulator Inspection 59 28 47% Valve Exercise 2312 703 30% Storm Drain Cleaning 300 57 19% Dead End Main Flushing 492 246 50% Sewer Main Cleaning 6" - 24" 307560 166670 54% Sewer Main Cleaning 24" - UP 3266 2300 70% Sewer Main Video Inspection 184800 86924 47% Fire Hydrant Inspection 2600 1069 41% Air Relief Valve Inspection 149 148 99% WATER BREAKS WATER BREAKS APR-14 MAY-14 JUN-14 YTD Main line breaks 11 4 1 24 Service line breaks 14 13 10 63 NEW METER AND SEWER TAPS APR-14 MAY-14 JUN-14 YEAR-TO-DATE NEW METERS 10 15 19 74 SEWER TAPS 12 0 0 41 -4.8­ WATER TREATMENT OPERATIONS Farmington Lake Elevations _2ND Quarter 2013 and 2014 5637.00 5636.00 ·········t··--= .- ······.···-····..­ ........ ===­ I-=""::::: - ---..:J E I 5635 .00 e v a 5634.00 t i 5633.00 0 n 5632.00 5631.00 5630.00 Apr May Jun -2013 5634.77 5635.02 5635.46 2014 5635.93 5636.13 5635.77 • • • • • Max Lake Capacity 5636.41 5636.41 5636.41 Water Treatment Plants - Total Effluent to System - 2 nd Quarter 2013 and 2014 600 500 ~ ~ -I I> 400 ~ - C ~ § ~ -:?! I I> C 300 ~ RI c:J 200 100 0 April May June -2013 329.580 414.543 531.199 ·2014 338.938 349.008 416.710 -4.9­ WASTEWATER TREATMENT OPERATIONS PROCESS CONTROL MEASURES I APR-14 I APR-13 MAY-14 I MAY-13 JUN-14 JUN-13 Final Influent Total Flow (MGj 157.32 165.46 168.75 171.37 156.95 170.77 Final Influent Average Flow [MGj 5.24 5.52 5.44 5.53 5.06 5.69 Final Effluent Total Flow [MG] 144.84 150.28 156.11 154.17 150.63 155.36 Final Effluent Average Flow [MG] 4.83 5.01 5.04 4.97 5.02 5.18 Total Number Septic Trucks 433 436 468 404 453 393 Total Gallons Septic Trucks 500225 494233 551275 446571 501184 432159 DMR res NET INCREASE I EOO ~,OO "o-t-_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ ....:; FEn"" "':::.; IT Ll\I:=~ '__ ~ '"E 300 200 100 II I In? 7J I2 ~j~ '!12" .... 10. fa ~i23 El l S 7i9 mo e,zo Ci( 1j) 1011 10121 11112 12lS 110.4 III' Date ( 1111201 4 to 1:m112014) , O'.IR 1'05 I£f I:1CREAS€ -4.10­