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, on Wednesday, November 10, 2021, at 3:00 pm in the Executive Conference Room, City Hall, 800 Municipal Dr., Farmington, New Mexico. Farmington, New Mexico. I. GENERAL A. Roll Call B. Convening of Meeting by Mr. Jeff Parkes, Chair C. Minutes of October 13, 2021 Regular Meeting submitted for approval ...... 1 II. BUSINESS A. Quarterly Financial Report – Sheree Wilson .............................................. 2 B. Water/Wastewater Report – Jeff Smaka (5 min) ........................................ 3 C. Water/Wastewater Operations Report – Phil Johnson (5 min) .................. 4 D. Presentation-Cost of Service Study - Water/Wastewater Utility................. 5 David Sypher, Community Works Director, Dave Yanke, NewGen Strategies ACTION ITEM E. Electric Utility Report – Hank Adair (5 min)................................................. 6 F. Director’s Report – Hank Adair (5 min) ....................................................... 7 III. BUSINESS FROM THE FLOOR Citizens who wish to address the Commission shall sign in prior to the start of the meeting. IV. ADJOURNMENT Virtual participate is available via Zoom at https://us02web.zoom.us/j/89912651549 or by dialing 1 253 215 8782 Meeting ID: 899 1265 1549 Passcode: 332298 The next regular meeting will be held December 8, 2021 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. ` CITY OF FARMINGTON – PUBLIC WORKS DEPARTMENT (PW) Division: Water-Wastewater Program: Water & Wastewater Report Prepared by: Jeff Smaka Title: Water/ Wastewater Administrator Reporting Period: October 1 through October 31, 2021 PUC Meeting Date: 10 November 2021 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 NewGen Strategies LLC, Presentation to the PUC sub-committee on March 12, 2020 went over inflation factors, capital improvement plans for water and wastewater, revenue requirements, funding options and rate design options. NewGen Strategies completed updates to the cost of service study. Meeting with PUC Sub-committee scheduled for October 11, 2021. Presentation by NewGen Strategies at the October 13, 2021 PUC meeting. Meeting with PUC Sub-committee held on October 28, 2021. Presentation by NewGen Strategies scheduled for the November 10, 2021 PUC meeting. • Engineering Design Contract. 1. 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. Permits submitted to BLM awaiting review comments. • Capital Project Review. 1. Capital Improvement Project Water Treatment Plant Upgrade Study presented to City Council during the August 18, 2020 Work Session; City Council approved moving forward with the design of WTP#1 and WTP#2 as outlined in the study. Design contract with JACOBS approved by all parties. Design (30%) review meeting held on May 20, 2021. Design (60%) review meetings held on September 2 & 9; JACOBS working on 90% design package; next meeting scheduled for November 11, 2021. Raw Waterline Rehab Rehab existing 42” steel raw waterline from Animas Pump Station #1 to Water Treatment Plant #1 - Contract awarded to Canyon Construction of Durango, Co. for the base bid along with the alternate bid. Contract awarded for approximately $4.8 million plus tax. Contractor completed cleaning existing pipeline and camera inspection from Animas Pump Station #1 to Water Treatment Plant #1. Contractor completed the Animas River crossing section, Contractor completed installing section from the intersection of Navajo St. and Delhi west to Butler Ave. Contractor continues to work west from Butler Ave to Dustin Ave. - TRC completed backfilling section between Delhi Ave and Vine S, preparing for installation of curb and gutter and concrete pavement. • Renewal and Replacement. .  30th Street – Northridge to Dustin Av. - Replacing 6” C.I. waterline with 8” PVC waterline - construction to begin in November.  Gila Street - Washington to Main St - Replacing 6” C.I. waterline with 8” PVC waterline - construction schedule to begin in spring FY22 - pending material delivery.  English Ave - Largo St to Gila St. - Replacing 4” & 6” C.I. waterline with 8” PVC waterline – construction scheduled to begin in spring FY22 - pending material delivery.  College Blvd - Pinon Hills Blvd to Windsor – Replacing 6” & 8” C.I. waterline with ` 12” PVC waterline - project in design  30th St – Kiwanis Park to Hutton Ave – Replacing 6”C.I. &16” AC waterline with16” PVC waterline – project in design  E. Main St Interceptor Sewer Rehab - Browning Parkway to East of Farmington Iron and Metal - project in design  2019 Polyline Replacement - KG Sewer working area East of Beckland Dr. and South of Windsor – to date 862 polylines replaced  2. Pressure Reducing Valve (PRV)  None 3. Sewer Lift Stations  None • Budget. - • COF Department Support. Survey support to acquire manhole data of sewer collection system. • Annual Utility Contract. - City Council awarded multi-year contract in 2019 to TRC Construction; Flora Vista, NM. • Federal Funding – 1. Water Projects – Future  Water Treatment Plant #1 - Ute Street  Water Treatment Plant #2 - English Road • 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. - NPDES permit goes into effect on December 1, 2021 permit expires November 30, 2026. New NPDES permit modified total dissolved solids (TDS) requirement from 497 mg/l incremental increase for WWTP effluent for the first three years of the permit; then the permit in the last two years of the permit the TDS requirement reduces to 449 mg/l incremental increase for WWTP effluent.  Snowpack - Water Year 2022 - BOR reporting site  Animas River Basin - 111%  San Juan River Basin - 78% ATTACHMENTS WATER USAGE - RESIDENTIAL CUSTOMERS WATER USAGE - COMMERCIAL CUSTOMERS WATER FUND (602) - RENEWAL & REPLACEMENT WASTEWATER FUND (603) - RENEWAL & REPLACEMENT GRAPH WATER REVENUE FY 18 - FY22 ` ` WATER Renewal & Replacement Water Fund - 602 FY18 FY19 FY20 FY21 FY22 FY22 REVENUES Actual Actual Actual Actual Y-T-D Budget Renewal /Replacement Fee $3,742,390 $4,343,573 $4,501,327 $4,495,952 $1,152,178 $4,663,645 --------------- --------------- --------------- --------------- --------------- --------------- STATE GRANT - $825,000 REVENUE TODATE $34,677,385 $39,173,337 PROJECTED REVENUE FY07 - FY22 $43,836,982 FY18 FY19 FY20 FY21 FY22 FY22 Actual Actual Actual Actual Y-T-D Budget EXPENDITURES RENEWAL/REPLACEMENT Total $1,333,849 $5,847,206 $9,726,595 $5,366,977 $627,394 $4,663,645 --------------- --------------- --------------- --------------- --------------- --------------- PROJECTED EXPENDITURES FY07 - FY22 $44,257,760 College Blvd - PHB to Windsor $950,000 English Rd - Largo St to south end English $520,000 30th St. - Northwood to Dustin $250,000 30th St. - Tulane to College $640,000 30th St. - College to Hutton $1,250,000 Gila St - Main to Washington $200,000 Hicks Av. - Main to Apache $200,000 Polyline Service Replacement $600,000 Fire Hydrant 1960 Replacement $50,000 $4,660,000 PROJECTED EXPENDITURES FY07 - FY22 $44,885,154 ` WASTEWATER Renewal & Replacement Wastewater Fund - 603 FY18 FY19 FY20 FY21 FY22 FY22 REVENUES Actual Actual Actual Actual Y-T-D Budget Charges for Utility Services Renewal /Replacement Fee $2,387,991 $2,740,639 $2,847,240 $2,836,159 $715,707 $2,819,124 --------------- --------------- --------------- --------------- --------------- --------------- REVENUE TODATE $25,369,990 PROJECTED REVENUE FY07 - FY22 $715,707 $28,189,114 FY18 FY19 FY20 FY21 FY22 FY22 Actual Actual Actual Actual Y-T-D Budget EXPENDITURES RENEWAL/REPLACEMENT Total $2,355,815 $1,142,171 $4,417,747 $116,515 $57,005 $3,270,726 --------------- --------------- --------------- --------------- --------------- --------------- PROJECTED EXPENDITURES FY07 - FY22 $15,822,177 BUDGETED FY 22 PROJECTS East Trunk Sewer Rehab - Phase 3 $3,250,000 Sewer Rehab - 8" Lines $1,000,000 Manhole Rehab $150,000 Mainline Rehab - Robotic $50,000 $4,450,000 PROJECTED EXPENDITURES FY07 - FY22 $15,879,182 ` BUDGET TO ACTUAL COMPARISON PER MONTH FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual JUL 2,016,058 2,265,673 2,273,051 2,073,272 2,135,917 2,422,173 1,913,935 2,994,253 1,940,505 2,513,332 AUG 2,016,058 2,596,894 2,273,051 2,102,477 2,135,917 2,451,148 1,913,935 2,469,310 1,940,505 2,383,199 SEP 2,016,058 2,377,605 2,273,051 2,686,873 2,135,917 3,089,408 1,913,935 2,610,780 1,940,505 2,289,547 OCT 2,016,058 1,617,842 2,273,051 1,735,121 2,135,917 1,996,283 1,913,935 1,960,696 1,940,505 NOV 2,016,058 1,477,183 2,273,051 1,700,559 2,135,917 1,913,396 1,913,935 1,655,055 1,940,505 DEC 2,016,058 1,225,036 2,273,051 1,345,168 2,135,917 1,457,962 1,913,935 1,392,101 1,940,505 JAN 2,016,058 1,940,691 2,273,051 1,464,284 2,135,917 1,438,205 1,913,935 1,383,279 1,940,505 FEB 2,016,058 1,173,183 2,273,051 1,568,081 2,135,917 1,395,411 1,913,935 1,341,193 1,940,505 MAR 2,016,058 1,369,104 2,273,051 2,202,047 2,135,917 1,413,377 1,913,935 1,439,493 1,940,505 APR 2,016,058 1,607,818 2,273,051 2,391,386 2,135,917 1,911,189 1,913,935 1,654,750 1,940,505 MAY 2,016,058 1,964,759 2,273,051 1,922,539 2,135,917 2,024,588 1,913,935 2,082,445 1,940,505 JUN 2,016,058 2,120,328 2,273,051 2,824,317 2,135,917 3,960,699 1,913,935 2,385,976 1,940,505 TOTAL: 21,736,116 24,016,124 25,473,839 23,369,331 7,186,078 REVENUE PER CLASS/CUSTOMERS FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual R 8,515,613 8,425,011 9,405,070 8,317,676 9,486,000 9,223,608 9,612,845 9,420,529 9,757,038 2,878,618 GS 4,571,225 5,031,596 5,365,700 5,318,927 5,983,000 6,000,713 5,834,988 5,993,660 5,951,688 2,159,471 CU 1,426,831 1,336,481 1,549,943 1,349,881 1,585,000 1,545,477 1,585,000 1,765,171 1,608,775 536,728 REC 342,154 377,103 345,000 302,239 383,000 428,747 390,660 311,989 395,917 242,635 FH 115,000 130,392 125,000 105,565 125,000 131,825 125,000 94,510 125,000 23,928 R&R 3,277,128 3,742,390 4,009,905 4,343,572 4,313,000 4,501,327 4,594,724 4,495,952 4,663,645 1,152,179 GRANTS 1,500,000 - 1,622,000 - 732,000 - - - - OTHER 4,444,750 2,693,143 4,854,000 4,278,264 3,024,000 3,642,142 824,000 1,287,520 784,000 192,519 TOTAL: 24,192,701 21,736,116 27,276,618 24,016,124 25,631,000 25,473,839 22,967,217 23,369,331 23,286,063 7,186,078 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