Public Utility Commission

City of Fa rming ton Wa ter/Wa stewa ter AGENDA …for the regular meeting of the Public Utility Commission of the City of Farmington, to be held at 3:00 pm, on Wednesday, September 9, 2020 virtually using Zoom at https://us02web.zoom.us/j/83019877796 ... I. GENERAL A. Roll Call B. Convening of Meeting by Dr. James Spence, Chair 1. Approval of Minutes for the Regular Public Utility Commission Meeting and the Special Budget Meeting held July 8, 2020 ...................... 1 II. BUSINESS A. Water/Wastewater Report – Jeff Smaka (5 min) ........................................ 2 B. Water/Wastewater Operations Report – Teresa Garcia (5 min) ................ 3 C. Broadband Presentation – Olena Erickson (15 min) .................................. 4 ACTION ITEM: Staff request direction on whether to participate in Auction 904 to apply for RDOF funds to assist with financing portion of broadband development project D. Electric Utility Report – Brandon Hill (5 min) ............................................... 5 E. Director’s Report – Hank Adair (5 min) ....................................................... 6 III. ADJOURNMENT The next regular meeting will be held October 14, 2020 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 COMMISSION The regular meeting of the CITY OF FARMINGTON BOARD OF PUBLIC UTILITY COMMISSIONERS, was held virtually using Zoom at https://us02web.zoom.us/j/84609739440 at 9:00 a.m. on Wednesday, July 8, 2020. The virtually open regular session was held in full conformity with the laws and ordinances and rules of the Municipality. Upon roll call, the following were found to be present, constituting a quorum: Commission members present: James Spence, Chair Jeff Parkes Gordon Glass Connie Dinning Tory N. Larsen Alex Uhl (arrived approx. 9:10am) Drew Degner Linda Corwin Joanne Duckwitz Kyle Westall Commission members absent: Marty Johnson constituting all members of said Advisory Commission. Also present were: City Council Liaison Linda Rodgers Electric Engineering John Armenta Electric Generation Britt Chesnut Electric Field Operations Luke Lugenbeel Electric Utility Business Operations Brandon Hill Electric Utility Financial Analyst Olena Erickson Customer Care Manager Nicki Parks Community Works David Sypher Community Works JeffSmaka Community Works/Jacobs Teresa Garcia Community Works/Jacobs Ron Rosen Legal Jennifer Breakell PUC Secretary Amy McKinley The meeting was convened by the Chair. A motion was made by Commissioner Degner to approve the Minutes of the March 11, 2020 meeting. Commissioner Westall seconded. The roll was called with the following result: The members present voting aye: James Spence Jeff Parkes Gordon Glass Connie Dinning Tory N. Larsen Drew Degner Kyle Westall Linda Corwin Joanne Duckwitz Those voting nay: None The Chair thereupon declared the motion passed. BUSINESS Water/Wastewater Report Mr. Jeff Smaka reviewed the activities of the water/wastewater utilities for the month of June. Responding to a question by Vice Chair Parkes, Mr. Smaka noted the staff of the Community Works Water/Wastewater utilities as well as personnel from Jacobs have performed well throughout the COVID-19 crisis. Commissioner Glass asked for an update on the Cost of Service Study. In response, Mr. Smaka, reported that due to the COVID crisis, the Cost of Service study for Water/Wastewater utilities has been suspended until further notice. Water/Wastewater Operations Report Ms. Teresa Garcia utilized a PowerPoint presentation to provide an aerial view tour of many of Farmington's water facilities. Chair Spence asked if the COVID crisis has increased demands on the water and wastewater processes and Ms. Garcia responded that initially there was a slight concern that it could become difficult to acquire the chemicals required for these treatment processes. She assured the Commission that due to its global footprint, the Jacobs organization was able to provide the necessary materials so Farmington's water/wastewater treatment processes have been in normal operations throughout the COVID crisis. Electric Utility Report Mr. Brandon Hill offered information from the Electric Utility Report for the month of May. Customer Consumption (residential, commercial, and industrial) was 69GWH compared to 78GWH for May 2019. Mr. Hill said the PCA remains at $0.01/kWh. Director's Report Utilizing a PowerPoint presentation Mr. Adair offered a Year in Photos recap ofFY2020 and provided information about the various events and activities of the utility. Mr. Adair said FEUS contracted with Probst Electric to perform maintenance work on an energized Transmission line. Probst Electric utilized robotic arms in its maintenance work to ensure the highest degree of safety while working on this energized transmission line. Mr. Adair informed the Commission the Cottonwood Substation was energized the end of June. The substation was then de-energized as a safety precaution due to the nearby July 3 fireworks display. He noted the Cottonwood Substation should be placed fully into service in October 2020. Mr. Adair offered a brief review of the AMI advanced metering project that was introduced into the FEUS system. The inclusion of AMI meters into the system allows for more efficient use of FEUS staff because functions such as connections and disconnections can take place at the utility rather than physically sending an employee to the location. These meters will allow the utility to have more information about usage which could allow for other rate structures. Mr. Adair provided information regarding the activities involving the San Juan Generation Station/Enchant Energy project. He reminded the Commission that the US Department of Energy awarded a grant to New Mexico Tech for research on carbon capture sequestration. Regarding the utility's new short term generation source, Mr. Adair said that onceFEUS reviewed the bids for the original gas flexible response generation asset, the cost was such that FEUS chose not to move forward with the project in that format.FEUS has stepped back from this project and is working with the owner's engineer, Black and Veatch to determine what the expense would be to go back out to bid and then determine if such a project even passes muster at that point. He noted funds for this project continue to be in the proposed budget. Mr. Adair reported that the utility took possession of its first all-electric vehicle. The internal fleet charging station is located within the MOC compound and is in service. Construction is complete for four of the five external charging stations. FEUS crews continue to work on the final charging station located on the Animas Valley Mall property. Mr. Adair reviewed the utility's process for protecting its employees and customers during this COVJD crisis. He noted staff developed a staggered shift schedule in an effort to keep crews separated so, should there be a wellness issue, not all of the crews are affected and work of the utility can continue. In an effort to reduce the potential of in person contacts between customers as well as customers and staff, FEUS shut down the Customer Service lobbies and drive thru windows. Customer Service moved to electronic and phone based payment systems. Customers who were most comfortable delivering their payments in person could take advantage of drop boxes that were installed at both locations. In an effort to assist customers during the COVID crisis, Mr. Adair said the decision was made to suspend disconnections and penalties for late payments. This policy has resulted in a loss of approximately $1.2 million since March 17, 2020. Staff continue to evaluate the best time frame for reinstating disconnect policies. In an effort to reach a greater number of our customers who may be experiencing difficulties during this challenging time, the City made adjustments to the Utility Assistance Program to offer additional funds to assist with utility payments for those experiencing financial stress. Mr. Adair reported that FEUS is performing a study about providing broadband internet service. A survey has gone out to the public and Mr. Adair urged commissioners to urge any business owners to perform the survey. Regarding Customer Service, Mr. Adair reviewed the new utility billing program. He said this new contract offers much improved communication with customers. He said Customer Service is also looking at alternate online bill pay systems. Currently the city uses Click2Gov, a somewhat clunky platform. Mr. Adair said that safety is a primary part of the FEUS mission statement and FEUS leadership will be participating in a yearlong safety training program with the goal of all utility leadership speaking the same language regarding safety. In response to a question by Commissioner Glass regarding the Integrated Resource Plan, Mr. Adair stated that funding for an Integrated Resource Plan is included within the proposed FY2021 budget. Mr. Adair provided the Commission with a Capital Improvement Projects spreadsheet which provided clarifications for why some of the projects are extended over more than one budget period. Chair Spence recognized that Commissioner Johnson arrived to the meeting at 9:52 am. ADJOURNMENT There being no further business to come before the Commission, a motion was made by Commissioner Glass, and seconded by Commissioner Westall to adjourn the meeting at 10:07 am. The roll was called with the following result: Those voting aye: James Spence Jeff Parkes Marty Johnson Gordon Glass Connie Dinning Alex Uhl Tory N. Larsen Drew Degner Kyle Westall Linda Corwin Joanne Duckwitz Those voting nay: None The Chair thereupon declared the motion passed. Approved this 9th day of September, 2020. James Spence, MD, Chair  BOARD OF PUBLIC UTILITY COMMISSION The special Budget Meeting of the Board of Public Utility Commissioners/City Council City of Farmington, was held virtually using Zoom at https://us02web.zoom.us/j/84609739440 at 10:00 a.m. on Wednesday, July 8, 2020. The virtually open special session was held in full conformity with the laws and ordinances and rules of the Municipality. Upon roll call, the following were found to be present, constituting a quorum: Commission members present: James Spence, Chair Jeff Parkes Marty Johnson Gordon Glass Connie Dinning Tory N. Larsen Alex Uhl Drew Degner Linda Corwin Joanne Duckwitz Kyle Westall constituting all members of said Advisory Commission. Also present were: City Council Nate Duckett, Mayor Linda G. Rodgers Jeanine Bingham-Kelly Janis Jakino Sean E. Sharer Electric Engineering John Armenta Electric Generation Britt Chesnut Electric Field Operations Luke Lugenbeel Electric Utility Financial Analyst Olena Erickson Customer Care Manager Nicki Parks Community Works JeffSmaka Community Works/Jacobs Teresa Garcia Community Works/Jacobs Ron Rosen City Manager Rob Mayes Legal Jennifer Breakell PUC Secretary Amy McKinley The meeting was convened by the Chair. Thereupon the following proceedings were duly had and taken: BUSINESS Electric Department Budget: Utilizing a PowerPoint presentation, Mr. Hank Adair, Electric Utility Director, offered details regarding the proposed FY2021 Electric Department budget. Mr. Adair reminded the Commission of the Electric Department's mission which is to "safely provide reliable, reasonably priced electricity with operational excellence, exceptional customer service and environmental stewardship". In the department's efforts to uphold its mission statement it has several strategic goals: safety for employees/community; regulatory compliance; exceptional customer service; operational excellence; system assessment/process driven, fiscal responsibility; and environmental stewardship. Mr. Adair commented that a review ofother regional electric utilities in the region shows that FEUS continues to offer the lowest rates for residential customers using 500kW. Mr. Adair thanks the Commission for its budgetary guidance to maintain low rates for our customers. Regarding Power Resources, in FY2021 FEUS projects to receive 44% ofits power from Gas, 21% from Coal, 17% from Hydro, and 18% from Purchased Power. Mr. Adair said FEUS plans to retire the Animas Power Plant in October, 2020. He noted FEUS does continue to budget for the recommended Short Term Generation resource within the FY202 l budget and is looking to fully bond the total cost of this short term generation with a $30 million bond. Mr. Adair commented that in FY2022, FEUS will be placing the Bluffview Power Plant in a long Depot Outage and this outage is the reason for a reduction in Gas usage and an increase in Purchase Power. Mr. Adair said Electric Revenues are projected to be $129.5 million in FY202 I and then will drift back down to approximately $105.9 million in FY2022. Mr. Adair reviewed the $31 million in Capital projects proposed within the FY202 l budget, excluding Generation. He said much of what makes the utility successful is the day over day work, the condition based maintenance, and how staff responds to the acuteness to keep things up and running so FEUS does not have to spend its Capital. He said one of these projects is Pole Testing. This project performs tests on each power pole to determine structural integrity of the pole. He also noted that within in the FY202 l Capital budget is the purchase of two heavy equipment trucks. These units are costly, upwards of$500,000 each, depending on the planned usage of the piece ofequipment. The Power Cost Adjustment (PCA) is projected to remain at $0.01 per kWh in FY202 l with a slight increase to $0.015 per kWh in FY2022. The FY2022 proposed increase in the PCA is due in part to a major outage planned for the Bluffview Power Plant. This outage will involve capital expenditures as well as expenses involved with purchasing power during this outage. Another key point that may occur is the clean break approach for San Juan Generating Station and whether Enchant Energy and Farmington continue the project successfully, which at this juncture continues to look good. But whether the project is successful or not, COF/FEUS will need to fund its Decommissioning Trust Agreement. Mr. Adair provided a review ofFEUS Expenses. He said the staffing recommendations remain flat. The proposed FY202 I and FY2022 budgets for staffing appear to be somewhat higher than the FY2020 projected actuals however, the proposed budget amount accounts for budgeted positions, some ofwhich are unfilled vacancies, where FY2020 projected actuals accounts for presently filled positions. The utility is striving to employ qualified personnel for a number of vacancies. Mr. Adair noted the Operating Budget indicates a significant increase from FY2020 to FY202 l . He said this cost increase includes the contract with Probst Electric, the contractor who is assisting FEUS with completing distribution line maintenance projects. He also noted that legal expenses are significant at $3.5 million. These legal expenses include, but are not limited to, the Enchant/Farmington project, the appraisal process for the Bloomfield matter, and the Vote Solar lawsuit. Responding to a question posed by Vice-Chair Parkes regarding the $1.8 million increase in funds budgeted for Salary and Benefits, Mr. Adair responded that this cost difference is a matter ofactual FY2020 Salaries and Benefits versus budgeted positions. As Mr. Adair noted earlier, the utility is seeking to fill budgeted but vacant positions. City Manager Mayes reminded the Commission all city employees will receive a 0% pay increase in FY2021. Chair Spence asked for a motion to recommend City Council approval of the Electric Department proposed FY2021 budget. Commissioner Johnson offered such a motion and Commissioner Degner seconded. The roll was called with the following result: The members present voting aye: James Spence Jeff Parkes Marty Johnson Gordon Glass Alex Uhl Connie Dinning Tory N. Larsen Drew Degner Kyle Westall Linda Corwin Joanne Duckwitz Those voting nay: None. The motion passed 11 to 0. Public Works Water/Wastewater Budget Presentations: Water/Wastewater Operations Annual Report: Utilizing a PowerPoint presentation Ms. Teresa Garcia offered a report of the many water and wastewater projects Jacobs undertook in the past year. She said each of these projects are important in efficiently providing quality water and wastewater services to the residents of the city of Farmington. Ms. Garcia's report highlighted the continuous improvements Jacobs uses to optimize system performance and reduce costs. One such improvement is the use of a 3-D hand-held LIDAR (Light Detection and Ranging unit) called GeoSlam. This device offers the ability to safely, efficiently, and quickly obtain measurements by taking 3-D photographs. Use of this device provides a more than $400,000 savings to the City of Farmington. The LIDAR unit is owned by Jacobs and was not paid for by the City. Ms. Garcia highlighted the use of the No-Des truck, which allows hydrant cleaning by recycling the water being flushed from the hydrant. Use of this truck has saved approximately 80 million gallons of water. With the traditional process, the water would end up on the ground. This unit was purchased by Jacobs and is owned by the City. The PowerPoint presentation highlighted many of the activities Jacobs personnel participate in within our community. To name only a few, Jacobs assists with the Household Hazardous Waste collection days, raised more than$100,000 for the Four Comers Home for Children during the annual Bi-Fly tournament, collected four barrels of food to assist the Salvation Army during the Christmas food drive. Ms. Garcia said the 60 +/- Jacobs employs take great pride in providing quality, safe water and wastewater services to the residents of Farmington. As the City's long-term partner, Ms. Garcia said Jacobs is committed to partnering with the City to improve efficiencies and reduce costs, while providing best-in-class service. Water Utility Budget Presentation: Mr. JeffSmaka offered a presentation detailing the proposed FY2021 Water Utility Budget. His presentation provided information about the water utility facilities throughout the city. He noted there are 350 miles of various sized water pipe, 19 pump stations, 2,669 fire hydrants, approximately 6,512 valves, and approximately 16, 500 water meters. Mr. Smaka said that since the renewal and replacement fee went into effect in FY2007, projected revenue generated for the water utility from renewal and replacement projects is approximately $34.5 million and projected expenditures is$37.9 million. Mr. Smaka's report noted the FY2021 water utility proposes a projected revenue of$4.6 million and projected expenditures of$2.6 million for renewal and replacement system improvements. Mr. Smaka said the emphasis remains on capital upgrades to improve service delivery and fire protection. Total expenditures in capital in FY2021 is projected to be$9.6 million;$2.6 million of this $9.6 million is renewal and replacement funding. He said project renewal and replacement expenditures over the next five years is$21.9 million. Mr. Smaka's report of the proposed FY2021 Water Utility Budget assumes 1.0% growth in revenues in FY2021 over FY2020 projected actuals. Wastewater Utility Budget Presentation: Mr. JeffSmaka offered a presentation detailing the proposed FY2021 Wastewater Utility Budget. His presentation provided information about the wastewater utility facilities throughout the city. He noted there are approximately 237 miles of pipe of various sizes within the city's wastewater system, 16 lift stations, and approximately 4,500 manholes. Mr. Smaka offered a recap of the FY2020 Wastewater Utility Finances stating adjusted budget FY2020 Revenues is $12.31 million and the FY2020 projected actual is $12.78 million; the adjusted budget FY2020 Expenditures is $16.07 million and the FY2020 Expenditures projected actual is $17.74 million. Regarding the Collection System and Facilities, the FY2021 proposed budget is $3.9 million. The proposed FY2021 Wastewater Utility Budget shows Revenues budgeted at $12.44 million and Expenditures budgeted at $13.88 million. Mr. Smaka's report noted the proposed FY 2021 budget assumes a 1.0% increase in revenues over FY2020 projected. The proposed FY2021 budget includes $3.9 million of capital expenditures (40% of Expenditures Budget) which can be held back if revenues come in below projections. Chair Spence asked for a motion to recommend City Council approval of the proposed FY2021 Water and Wastewater Utilities budgets. Vice-Chair Parkes offered such a motion and Commissioner Uhl seconded. The roll was called with the following result: The members present voting aye: James Spence Jeff Parkes Marty Johnson Gordon Glass Alex Uhl Connie Dinning Tory N. Larsen Drew Degner Kyle Westall Linda Corwin Joanne Duckwitz Those voting nay: None. The motion passed 11 to 0. ADJOURNMENT There being no further business to come before the Commission, a motion was made by Commissioner Glass, and seconded by Commissioner Westall to adjourn the meeting at 12:38 pm. The roll was called with the following result: Those voting aye: James Spence Jeff Parkes Marty Johnson Gordon Glass Connie Dinning Alex Uhl Tory N. Larsen Drew Degner Kyle Westall Linda Corwin Joanne Duckwitz Those voting nay: None. The Chair thereupon declared the motion passed. Approved this 9th day of September, 2020. James Spence, MD, Chair  CITY OF FARMINGTON - PUBLIC WORKS DEPARTMENT PW Pro ram: Water & Wastewater PUC Meetin Date: 9 Se tember 2020 ACCOMPLISHMENTS • O& M Contract. Operation and Maintenance Contract with CH2M - 8-year contract; 2016 - 2023. • Utility Rates. Ordinance 2014-1271 adopted by City Council - Nov 11, 2014. Water and wastewater rates 5th year increase began with first billing cycle in Dec 2018, • Cost of Service for Water and Wastewater - City Council awarded Cost of Service Study to New Gen Strategies, LLC, kick-off meeting held on October 17, 2019. Meeting with Staff and PUC Committee on December 3rd, discussed scope of services, inflation factors, existing utility data, proposed capital improvement plan and funding options. Meeting with staff and PUC Sub­ committee on March 12, went over inflation factors, capital improvement plans for water and wastewater, revenue requirements, funding options and rate design options. City Management placed a suspension of work for the consultant NewGen Strategies & Solutions • Engineering Design Contract. 1. 2P Waterline Replacement Project - Phase Ill - Beginning at the intersection of US64/Camina Flora along Bloomfield Blvd to McCormick School Rd., Hutton Ave. from US64 to Southside River Rd., Don Raven from US64 to end of street, Carlton Ave from US64 to Bloomfield Blvd. - Project funding under DWSRF program through NMED/ NMFA; 25% ($725,000) grant recommendation. Estimated Cost $2.9 million. City Council awarded contract to TRC Construction, Inc. for $2,990,724.20; Construction and punch list completed. Contractor working on project closeout documents. 2. La Plata Highway (Phase I) Pinon Hills Blvd to Coyote Dr. - Project redesign for water line replacement and NMDOT permitting; CWE working on waterline design - 60% complete. CWE working with NMDOT on permitting requirements dealing with the archeology along the proposed waterline replacement alignment. Animas Environmental preparing additional environmental documents required by NMDOT and BLM for permitting. • Capital Project Review. 1. Capital Improvement Project Water Treatment Plant Upgrade Study: Meeting held on December 19th to review draft report and discuss water plant 1 & 2 Improvement options and schedule. JACOBS presented Water Treatment Plants Improvements Study and a PowerPoint presentation to the PUC on Feb 12 for their information. At the March 11 PUC meeting JACOBS presented the Draft Water Treatment Plants Study; the PUC accepted the report and recommended the report move forward to City Council. Water Treatment Plant Upgrade Study presented to City Council during the August 18 Work Session council approved moving forward with design as outlined in study. • Renewal and Replacement. • E. Main Street (Phase 2) - Hallmarc Dr. to Kira Dr.- (Eastbound Lanes) - Replacing 6" C.I. waterline with 12" PVC or 8" PVC waterline - Construction 25% completed • East Main Sanitary Sewer Rehab Phase 2 - Butler Ave to Browning Parkway in old railroad right of way; the project is to rehab of the existing 24" concrete pipe with a 22" fiberglass pipe, rehab manholes with fiberglass inserts and reconnect services. Contract awarded to AUi Inc, Albuquerque, NM. Construction completed. Contractor working on project closeout documents. • US 64 Highway Corridor - Relocation of existing sewer force main and water line due to construction activities in NMDOT right-of-way; Construction completed. ■ 30th St. - Municipal to Northwood Dr. - Replace 6" C.I. waterline with 8" PVC waterline- Construction 99% complete. Contractor workinQ on punch list items. -2-  • Pinon Hills Waterline (College Blvd to 4E Pump Station on English Road) Construct 16" PVC Waterline and Pressure Reducing Station - Construction 65% Complete • 2019 Polyline Replacement - KG Sewer working area North of 30th St. and West of Sunset - • To date 300 polylines replaced. 2. Pressure Reducing Valve (PRV) • None 3. Sewer Lift Stations • Lift Station 12 &14 Improvements (1214 Mossycup Dr.) & (Crestwood Trailer Park off N. Auburn Ave.) The project is to rehab of the existing lift station, which includes the mechanical, pumping equipment and electrical systems. Bid Opened on July 28, 2020. - Three Bidders - Contract awarded to TRC Construction of Flora Vista, Pre-Construction meeting scheduled for Sept 14, 2020. • Budget. - Presentation of FY21 Proposed Budget scheduled for April 8, 2020. • COF Department Support. Survey support to acquire manhole data of sewer collection system. • Annual Utility Contract. - 2019 contract - City Council awarded contract to TRC Construction; Flora Vista, NM. • Federal Funding - 1. Water Projects - 2P Waterline Improvement Project • Project to replace the existing 6" and 8" cast iron waterline (approximately 30,000 LF) along US 64 and various side streets. Project has been broken into three phases - Phase I - Estimated cost $3.2M, Phase II - Estimated cost $3.6M, Phase Ill - Estimated cost $2.9M. • PROJECTS/ INITIATIVES REQUIRING INTER-DIVISIONAL COORDINATION • Farmington Reach - Navajo Municipal Pipeline. 1. Final agreements on hold, pending Bureau of Reclamation (BOR) completion of pipeline. • WWTP NPDES PERMIT - EPA. New NPDES permit went into effect on November 1, 2016 permit expires October 31, 2021. New NPDES permit modified total dissolved solids (TDS) requirement from 400 mg/I incremental increase to 497 mg/I incremental increase for WWTP effluent. ■ Snowpack - Water Year 2020 - BOR reporting site: Site Closed until Winter ■ Animas River Basin - % • San Juan River Basin - % ATTACHMENTS WATER USAGE - RESIDENTIAL CUSTOMERS WATER USAGE- COMMERCIAL CUSTOMERS WATER FUND (602)- RENEWAL & REPLACEMENT WASTEWATER FUND (603)- RENEWAL & REPLACEMENT GRAPH WATER REVENUE FY 17 - FY21 -2.1-  Residential Classification Usage - Gallons 250,000,000 200,000,000 V 0 150,000,000 L u ■SYRAVG 100,000,000 M ■ FY21 E 50,000,000 0 ■ FY21 Months - Fiscal Year CommerdalClwllk:atlon U-•Gallons ICID,000,000 250,000,000 V 200,000,000 0 190,000,000 ■SVIIAYG • ffl lCD,CIII0,000 ■FY21 50,DCID,GGD 0 ■FY21 2&7,ID1 -2.2- WATER Renewal & Replacement Water Fund - 602 FY17 FY18 FY19 FY20 FY21 FY21 REVENUES Actual Actual Actual Actual Y-T-D Budget - ........_ Renewal /Reolacement Fee $3,315 616 $3 742 289 $4 343 572 $4 501 327 $383,324 $4 594,724 - - STAlE GRANT- $825,000 � REVENUE TODATE $33,852,276 PROJECTED REVENUE FY07 - FY21 $38,447,000 FY17 FY18 FY19 FY20 FY21 FY21 Actual Actual Actual Actual Y-T-D Budget EXPENDITURES RENEWAUREPLACENENT Construction $4 520 490 $1 333 849 $5 847 205 $9 726 595 ----- $173 549 -$2,633,000 -- PROJECTED EXPENDITURES FY07 - FY21 $38,866,770 Main St. - Orchard Ave. to Auburn Ave. $750,000 College/ PHB to 4E PS $1,000,000 Main St. - Hallmarc Dr. to Kira Sr. $900,000 30th St. - Tulane to College $640,000 30th St. - Northwood to Dustin $200,000 South Lake St- Murray to WWTP $200,000 Polyline Service Replacement $850,000 Fire Hydrant 1960 Replacement $50,000 $4,590,000 PROJECTED EXPENDITURES FY07 - FY21 $41,499,770 WATER RENEWAL & REPLACEMENT ■REVENUES ■EXPENDITURES $12,000,000 $10,000,000 en $8,000,000 $6,000,000 C $4,000,000 $2,000,000 $0 FISCAL YEAR -2.3- WASTEWATER Renewal & Replacement Wastewater Fund - 603 FY17 FY18 FY19 FY20 FY21 FY21 REVENUES Actual Actual Actual Actual Y-T-D Budget Charaes for Utilitv Services Renewal /Reolacemeot Fee $2 124 043 $2 387 991 $2,740 639 $2 847,239 $233,612 $2,777 462 - - - - - REVENUE TODATE $22,694,967 PROJECTED REVENUE FY07 - FY21 $25,472,429 FY17 FY18 FY19 FY20 FY21 FY21 Actual Actual Actual Actual Y-T-D Budaet EXPENDITURES RENEW ALJREPLACEMENT Construction $473 211 $2 355 815 $1,158 432 $4 344 472 $0 $2 491,045 -- - - - -------- ----------- PROJECTED EXPENDITURES FY07 - FY21 � $16,519,905 BUDGETED FY 21 PROJECTS East Trunk Sewer Rehab - Phase 3 $1,250,000 Sewer Rehab - 8" Lines $1,000,000 Manhole Rehab $150,000 Mainline Rehab - Robotic $50,000 $2,450,000 PROJECTED EXPENDITURES FY07 - FY21 $19,010,950 WASTEWATER RENEWAL & REPLACEMENT ■REVENUES ■ EXPENDITURES $5,000,000 $4,500,000 $4,000,000 $3,500,000 &! $3,000,000 j $2,500,000 � $2,000,000 C $1,500,000 $1,000,000 $500,000 $0 Actual Actual Actual Actual Y-T-D FY17 FY18 FY19 FY20 FY21 FISCAL YEAR -2.4-  Total Water Revenue Per Month FYt7 • FY18 FY19 ■FY20 ■FY21 FY16 - FY20 4,500,000 4,000,000 +------------------------- - - -----�� 3,500,000 +-- - - - --------- - - - - ---------------- 3,000,000 +---------------------------- - - - - ----- 2,500,000 --------- ---------------------- - ------ 2,000,000 1,500,000 1,000,000 500,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN BUDGET TO ACTUAL COMPARISON PER MONTH JUL Budoet FY 2017 1,669,760 Actual 1,923,676 Budqet FY 2018 2,016,058 Actual 2,265,673 Budaet FY 2019 2,273,051 Actual 2,073,272 Budoet FY 2020 2,135,917 Actual 2,422,173 Budqet FY 2021 1,913,935 Actual 2,994,253 I AUG 1,669,760 1,920,854 2,016,058 2,596,894 2,273,051 2,102,477 2,135,917 2,451,148 1,913,935 - SEP 1,669,760 1,756,407 2,016,058 2,377,605 2,273,051 2,686,873 2,135,917 3,089,408 1,913,935 - OCT 1,669,760 1,518,135 2,016,058 1,617,842 2,273,051 1,735,121 2,135,917 1,996,283 1,913,935 - NOV 1,669,760 1,184,943 2,016,058 1,477,183 2,273,051 1,700,559 2,135,917 1,913,396 1,913,935 - DEC 1,669,760 1,377,778 2,016,058 1,225,036 2,273,051 1,345,168 2,135,917 1,457,962 1,913,935 - JAN 1,669,760 1,188,903 2,016,058 1,940,691 2,273,051 1,464,284 2,135,917 1,438,205 1,913,935 - FEB 1,669,760 1,129,860 2,016,058 1,173,183 2,273,051 1,568,081 2,135,917 1,395,411 1,913,935 - MAR 1,669,760 1,189,603 2,016,058 1,369,104 2,273,051 2,202,047 2,135,917 1,413,377 1,913,935 - APR 1,669,760 1,329,406 2,016,058 1,607,818 2,273,051 2,391,386 2,135,917 1,911,189 1,913,935 - - - , MAY 1,669,760 1,526,594 2,016,058 1,964,759 2,273,051 1,922,539 2,135,917 2,024,588 1,913,935 JUN 1 669,760 1.875 671 2.016,058 2,120,328 2,273,051 2,824,317 2,135,917 3 960 699 1,913.935 TOTAL: I I 17 921,830 I 21 736,116 I 24,016 124 25,473,839 I 2,994,2531 PER CLASS/Cl FY 2017 FY 2018 FY2019 FY2020 FY2021 Budaet Actual Budaet Actual Budoet Actual Budaet Actual Budaet Actual R 7,789,369 7,585,241 8,515,613 8,425,011 9,405,070 8,317,676 9,486,000 9,223,608 9,612,845 1,125,859 GS 4,155,659 4,355,258 4,571,225 5,031,596 5,365,700 5,318,927 5,983,000 6,000,713 5,834,988 736,726 cu 1,073,680 1,314,165 1,426,831 1,336,481 1,549,943 1,349,881 1,585,000 1,545,477 1,585,000 176,222 REC 296,145 290,856 342,154 377,103 345,000 302,239 383,000 428,747 390,660 78,424 FH 117,044 92,881 115,000 130,392 125,000 105,565 125,000 131,825 125,000 12,732 R&R 2,892,563 3,315,616 3,277,128 3,742,390 4,009,905 4,343,572 4,313,000 4,501,327 4,594,724 383,325 GRANTS 1,000,000 260,919 1,500,000 . 1,622,000 . 732,000 - - - OTHER 2,712.663 706,894 4,444,750 2,693,143 4,854,000 4 278 264 3,024,000 3.642,142 824,000 480,965 TOTAL: 20 031 123 I 17 921 830 24 192 101 I 21 736 116 27 276 6181 24,016 124 25 631 ooo l 25 473 839 22 967 211 I 2 994 253 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 -2.5-  Public Utility Commission City of Farmington's Water and Wastewater Uti I ities w I I Monthly Report Wednesday, September 9, 2020  �USGS USGS 09364500 ANIMAS RIVER AT FARMINGTON, NM Animas River ] 488.e 588.B .::.. 8 388.B " 288.8 Summary: • River flows in August fell below .. a. 188 e Q.1 I) . the median daily flows as Co- temperatures increased and little -� CJ - I w I rain fell in the area. .. :. "fiI& 18.8 5. e L_ Aug 81 ____________ Aug 88 Aug 15 ----:::---;;-- Aug 22 Aug 29 2828 2828 2828 2828 2828 ---- Provisional Data Subject to Revision---­ /' Nedian dail� statistic (96 �ears) * Neasured discharge - Discharge  Farmington Lake Farmington Lake Capacity 2019 & 2020 January - December Summary: 1010 Graph indicates the average monthly levels, 100 0 in percent capacity. 99.0 Pumping has continued 980 to fill the lake to 100%. >- Due to the decrease in "° " river flow, Animas #2 97.0 pump station remains ,_ 2: 0 100.0 99.9 100.0 off at this time. Two 96,0 99.4 pumps are running at Farmer's Ditch. 95.0 940 93.0 Jan Feb Mar Apr May Jur. Jul Aue Sep Oct Nov Dec 2019 100.0 100.0 98,1 95 5 98.7 99.0 100.0 99 2 100.0 99.4 99.9 100.0 ■ 2020 100.0 100.00 99.9 100.0 99.9 100.0 99.7 98.5  Water Production History Total Effluent - WTP No. 1 & No.2 January - December 2017-2020 600.000 500.000 Summary: 400.000 w I August water production w I V, increased compared to last C � 300.000 month and just above last � u, C years. Usage can still be .2 "' <..9 200.000 attributed to the stay-at­ home order and the higher temperatures. 100.000 0.000 2 3 4 5 6 7 8 9 10 11 12 Month -2017 -2018 2019 -2020 Linear (2019)  Maintenance New Meter Installations/ System Growth NEW METER INSTALLATION 12 Summary: 4 new residential meters 10 +------- - - - ------------- and 3 new commercial meters were installed in ' w August. This is down 8+- ------ from last month and last year. # /mo. (new Construction) 6+-------- 4 +- ------ 2 +- --- 0 I JAN 1 OCT DEC - SEP NOV 20191 1 2 9 7 4 3 •20201 0 3  2020 N M t b t d • l-' NEW METERS BY TYPE & SIZE 10 8 6 ' I l w 4 i ' Vl � � II II 2 \ 0 JAN 2020 FEB2020 MAR 2020 APR 2020 MAY2020 JUN 2020 JUL2020 I AUG2020 SEP2020 OCT2020 NOV2020 DEC2020 , 5.'8"R 0 3 I 4 2 3 3 I 11 3 ■5,18''C I 0 0 0 0 0 1 0 1 I 1"R I 0 0 0 I 0 0 1 0 0 0 0 1 0 '■1"C 0 0 0 0 1-1J2"R 0 I 0 0 0 0 1 0 0 ■1-1J2"C 2" R 0 0 0 0 I 0 0 0 0 0 0 0 0 0 0 2 0 ,■2''C I 0 0 0 0 0 0 I 0 0 ■3" R 0 0 I 0 0 I 0 0 0 0 ■3"C ■4" R I 0 0 0 0 I 0 0 0 0 0 0 0 0 0 0 0 0 l■4"C 0 0 0 0 0 0 0 0 ■6''R ■6"C I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ■8''R 0 Q 0 0 0 0 0 0 ■8''C 0 0 I 0 0 I 0 0 I 0 0  Maintenance Water Line Re airs (Mains and Service Lines) WATER BREAKS 20 Summary: I l.,.J There were 24 breaks in August. 5 main lines and 19 service lines. - - --- - ,__ - � ,__ - ,__ ,__ - - --- - --- - JUN JUN JUL JUL JAN JAN FEB FEB MAR MAR APR APR MAY MAY AUG ,uG' SEP SEP OCT OCT NOV NOV DEC DEC E E y y 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 19 2020 2019 2020 2019 2020 2019 2020 2020 2019 2020 2019 2020 I MAIN LINE 10 8 6 1 9 3 4 0 1 5 4 2 4 4 3 5 f0 2 5 7 5 ]■SERVICE LINE 19 7 7 9 18 11 10 5 10 3 9 5 15 10 10 \_19) 10 11 8 4  Maintenance # Water Line R b t MAIN LINE BREAKS BY PIPE TYPE 9 8 7 6 Summary: '1> There were 5 main line I breaks in August. All 5 were Cast Iron pipe. 4 3 I 2 I I1 I p I I II I l I 1 11 l ::II 0 JAN JAN FEB FEB MAR MAR APR APR MAY MAY JUNE .JUNE JULY JULY AUG UC SEP SEP OCT OCT NOV NOV DEC Dl!C 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 •ASBES1'0S-CEMENT 0 0 1 0 2 0 0 0 0 0 2 0 0 0 2 0 0 0 0 0 •CAST IRON 8 6 4 0 5 3 2 0 0 4 2 2 1 2 0 5 1 3 7 5 • DUCTILE IRON 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 "POLYVINYL CHLORIDE 2 1 1 1 2 0 1 0 1 1 0 0 2 2 0 0 1 0 0 0 •SlEEL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 •GALVANIZED S1EEL 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0  Maintenance Wat L. R - • SERVICE LINE BREAKS BY PIPE TYPE 18 --- - 115 14 I w I 12 - I Summary: 10 Service line breaks in August consisted of 17 8 black poly lines, 1 15 copper line, and 1 PVC line. 4 I I II I II 2 0 JAN JAN FE-B I FEB MAR MAR APR APR MAY MAY JUNe JUNE JULY .JULY AUG .. ua SE» SE» OCT OCT NOV NOV OEC OEC 20111 2020 2019 2020 20111 2020 2019 2020 2019 2020 2019 2020 2019 2020 2010 0020 2019 2020 2019 2020 20111 2020 20111 2020 PEX ---- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ·r 0 0 �OPPl!!R-- 2 2 1 0 2 2 0 0 0 0 0 0 1 0 0 1 0 0 0 •GALVANIZED STEEL 2 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 • BLACK POLY-ETHYU!.N.e 15 5 5 9 15 11 12 5 10 3 11 2 14 11 10 17 10 11 8 • BLUE POLVE1'HYLENE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 •PVC (POL.YVINYLCMLORIOE) 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0  Effluent Flows/ Wastwater Wastewater Avg. MGD Treatment 6.00 • Flows in August increased from last month and from the same ' w month last year. 4.00 3.00 t r'J:- �{� -i. ¢ 'x-\.,, ,'(' 0 l :-1. - � � 1:i,'t �� �\ o�'<. l �'v r,} J � � � �cf; at �o" c � <,; �\J ,J· �,"<' "' -0 '?' �X, \'f ½� \):,:; 2018 J 2019 12020  Lab Quality Control Statistics Farmington Environmental Lab QC Data Results 2019-2020 Lab QC In-control Data 100 2 100 100 100 100 100 I I..,.) 99.8 ··•······•·........ , 99.6 99.6 ----.:.-----·99.2 99.6 , .•..••• , •r•···· .... c 99.4 ····��-�········• .. ·······ggJ · ···· CJ 99.2 ·· .'l�.2 ., i:: 99.2 I 99 98.9 98.8 98.8 98.6 98.4 98.2 Sept Oct Nov, Dec Jan Feb Mar Apr May June July Aug August 2020 QC Dashboard 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 252 Data Points  PUC ACTION ITEM REQUEST DATE: 9/3/2020 DEPARTMENT: Electric MEETING DATE: 9/9/2020 1. ITEM/TOPIC: FCC (Federal Communication Commission) Auction 904 RDOF (Rural Development Opportunity Fund) 2. ACTION REQUESTED OF PUC: Direction on whether to participate in the Auction 904 in October 29, 2020 to apply for RDOF money to help with financing portion of broadband development project. 3. BACKGROUND / RATIONALE: FEUS currently is in the process of conducting a second (first was in 2012) feasibility study for bringing fiber broadband to the electric service area. Due to COVID-19, on­ site visit for the infrastructure review was postponed. This analysis is preliminary and will be further refined by from Finley Engineering and CCG Consulting as they complete a more detailed feasibility study. The RDOF Auction 904 is scheduled to begin on October 29, 2020. FEUS would like to start a conversation whether to pursue this opportunity as an option to help finance constructions in the rural areas for the broadband construction projects as a whole. Early introduction to the study would help to open up a conversation and give enough time to address any questions or concerns. With that said, this analysis shows that there are likely scenarios of building and profitably operating a broadband business that covers the electric service area. Additional information will be provided at the October PUC meeting. 4. STAFF RECOMMENDATION: Staff recommends participation in the RDOF Auction 904. Funds would have to be spent within 5 years after the award. -4-