Lamar Utility Board Meeting of April 9, 2024

The first of the monthly meetings for the Utility Board was held April 9, 2024.  Mintes from the previous meeting were approved.  Approval was given for Purchase Orders totaling $639,350.23 and for payment of bills totaling $263,268.80.

Approved was an irrigation contract between Lamar Utilities Board and Colorado Gravel Co. for electrical service for a 40 HP irrigation pump which is newly installed at 31100 US Hwy 385 north of Granda.  Colorado Gravel will be charged $10.00 per HP, resulting in a minimum payment of $400.00 and a $28.00 monthly service charge. The contract calls for a 5- year agreement.

Approved was a bid line material hardware.  5 bids were submitted for a variety of line material hardware to replenish stock inventory.  The staff recommendation was to accept the bid from Stuart Irby in the amount of $13,724.65.

The December 2023 Financial Report was presented, which includes the balance sheet, income statement, year to date income and year to date monthly comparisons with 2022.  There were no significant changes to the balance sheet.  Cash was up $48,587 from November and accounts receivable increased by $137,316.  Total operating revenue for the month was $1,081,292 and operating costs were $1,114,432, resulting in a gross operating loss of $33,140. When non-operating revenues and expenses were taken into consideration, there is a net income for the month of $420,143.  YTD income statement showed a net income of $418,385 and when compared to the same month in 2022, showed that retail sales were up approximately 2% ($224,682) and overall operating expenses were up approximately 8% ($985,240), resulting in a net income of $418,385 for the year.

The System Operating Report stated that the department has been working with City Light and Power Engineering (CLPE) in conducting a distribution system planning study.  The study stems from grid resiliency, grid hardening grant funding from the DOE and Colorado Energy Office that ARPA is planning on applying for on behalf of its member cities.  We are in competition with other utilities in Colorado; however, utilities located in Bent and Prowers Counties have better chances in getting grant funding since we are located in a disproportionately impacted area of the state.  ARPA will fund the distribution system planning study by CLPE whether we receive the grant or not.

The line crew completed installation of a voltage regulator for the town of Holly which will regular voltage to 3-300 HP irrigation pumps for Granda Farms south of Holly.  The wind turbine crew will be starting the semi-annual maintenance and inspection program on all 5 wind turbines.  Each turbine will be shut down for approximately 8 hours on a calm day so that preventative maintenance can be performed safely per FE’s recommended maintenance program.

The Board’s next meeting is scheduled for Tuesday, April 23, 2024.

By Barbara Crimond