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HomeMy WebLinkAbout01/07/2025 - Work Session - Meeting MaterialsSALT LAKE CITY COUNCIL AGENDA WORK SESSION   January 7, 2025 Tuesday 2:00 PM Council meetings are held in a hybrid meeting format. Hybrid meetings allow people to join online or in person at the City & County Building. Learn more at www.slc.gov/council/agendas. Council Work Room 451 South State Street, Room 326 Salt Lake City, UT 84111 SLCCouncil.com 7:00 pm Formal Meeting Room 315 (See separate agenda) Welcome and public meeting rules In accordance with State Statute and City Ordinance, the meeting may be held electronically. After 5:00 p.m., please enter the City & County Building through the main east entrance. The Work Session is a discussion among Council Members and select presenters. The public is welcome to listen. Items scheduled on the Work Session or Formal Meeting may be moved and / or discussed during a different portion of the Meeting based on circumstance or availability of speakers. The Website addresses listed on the agenda may not be available after the Council votes on the item. Not all agenda items will have a webpage for additional information read associated agenda paperwork. Generated: 09:19:37 Note: Dates not identified in the project timeline are either not applicable or not yet determined. Item start times and durations are approximate and are subject to change. Work Session Items   1.Nomination of Council Chair and Vice Chair for Calendar Year 2025 ~ 2:00 p.m.  15 min. The Council will take a straw poll to nominate the Council Chair and Vice Chair for calendar year 2025. The process includes expressions of interest from Council Members, nominations for each position, and then voting each for the Chair and Vice Chair positions. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - Tuesday, January 7, 2025   2.Informational: Updates from the Administration ~ 2:15 p.m.  15 min. The Council will receive information from the Administration on major items or projects in progress. Topics may relate to major events or emergencies (if needed), services and resources related to people experiencing homelessness, active public engagement efforts, and projects or staffing updates from City Departments, or other items as appropriate. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Recurring Briefing Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   3.Informational: National Legislative Briefing ~ 2:30 p.m.  30 min. The Council will receive a briefing about the City’s National Legislative priorities with Salt Lake City Advisor Jennifer Covino. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   4.Informational: State Legislative Briefing ~ 3:00 p.m.  30 min. The Council will receive a briefing about issues affecting the City that may arise during the 2025 Utah State Legislative Session. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   5.Informational: 2024 Comprehensive Water, Wastewater, and Stormwater Rate Study ~ 3:30 p.m.  45 min. The Council will receive a briefing from the Department of Public Utilities about the 2024 Water, Wastewater, and Stormwater Rate Study. Rate studies are conducted approximately every five years to ensure utility pricing structures remain appropriate and reflect changing conditions. The recommended rates and rate design will be important to future City decisions for the Fiscal Year 2026 budget and the Consolidated Fee Schedule. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   6.Tentative Break ~ 4:15 p.m.  20 min. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Set Public Hearing Date - Hold hearing to accept public comment - TENTATIVE Council Action -   7.Ordinance: Alley Vacation at Approximately 373 West American Avenue ~ 4:35 p.m.  15 min. The Council will receive a briefing about a proposal that would vacate a City-owned alley situated adjacent to properties located at approximately 373 West American Ave. The proposal would close the alley to public use and allow the property owner of three of the four adjacent properties to potentially redevelop this site (the other adjacent property owner also supports the alley vacation.) The alley cannot be used as a mid-block connection because the 900 South viaduct is directly to the south. Located within Council District 5. Petitioner: Jarod Hall. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - Tuesday, January 21, 2025 Hold hearing to accept public comment - Tuesday, February 4, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, February 18, 2025   8.Informational: Public Art Program Maintenance and Conservation Report for Fiscal Year 2024-25 ~ 4:50 p.m.  15 min. The Council will receive a briefing about the Public Art Program Maintenance and Conservation Report for Fiscal Year 2024-25 and the Maintenance and Conservation Artwork Projections. The Public Art Program recommends to the Finance Department that 20% of the Fiscal Year 2024-25 CIP Percent-for-Art funds ($40,000) be deposited to the Maintenance Fund based on the information contained in the report. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   9.Utah Open Meetings Law Training and Government Records Access and Management Act (GRAMA) Training ~ 5:05 p.m.  20 min. The Council will receive a briefing from the City Attorney’s Office about the Utah Open Meetings Law, and from the Recorder's Office about the Government Records Access and Management Act (GRAMA). This briefing will serve as the annual trainings for both the City Council and the Board of Directors of the Redevelopment Agency. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   10.Ordinance: Library Budget Amendment No.1 for Fiscal Year 2024-25 ~ 5:25 p.m.  15 min. The Council will receive a briefing about an ordinance that would amend the budget for the Library Fund for Fiscal Year 2024-25. Budget amendments happen several times each year to reflect adjustments to the City’s budgets, including proposed project additions and modifications. The proposed amendment includes re-appropriating $190,000 in the Library’s FY25 budget from unused employee benefits to help pay for the Main Library roof renovation project. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - Tuesday, January 7, 2025 Hold hearing to accept public comment - Tuesday, January 21, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, February 4, 2025   11.Informational: Waste and Recycling Weekly Residential Collection Route Changes ~ 5:40 p.m.  15 min. The Council will receive a briefing from the Sustainability department about changes to the residential waste and recycling collection routes, which will start on February 3, 2025. The route adjustments are intended to better align the daily workload with the typical staffing levels of the collection crews. A citywide communication effort will inform residents of the upcoming changes. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a   12.Advice and Consent: Chief Human Resources Officer - David Buchanan ~ 5:55 p.m.  10 min. The Council will interview David Buchanan prior to considering appointment as the Chief Human Resources Officer. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - Tuesday, January 7, 2025   13.Advice and Consent: Director of the Community and Neighborhoods Department - Tammy Hunsaker ~ 6:05 p.m.  10 min. The Council will interview Tammy Hunsaker prior to considering appointment as the Director of the Community and Neighborhoods Department. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - Tuesday, January 7, 2025   14.Board Appointment: Accessibility and Disability Commission – Nancy Strahan ~ 6:15 p.m.  5 min The Council will interview Nancy Strahan prior to considering appointment to the Accessibility and Disability Commission for a term ending December 28, 2026. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - Tuesday, January 7, 2025   Standing Items   15.Report of the Chair and Vice Chair -  - Report of Chair and Vice Chair.    16.Report and Announcements from the Executive Director -  - Report of the Executive Director, including a review of Council information items and announcements. The Council may give feedback or staff direction on any item related to City Council business, including but not limited to: •Newsletters for Public Utilities; •Financial Disclosure; •Legislative Action; and •Scheduling Items.    17.Tentative Closed Session -  - The Council will consider a motion to enter into Closed Session. A closed meeting described under Section 52-4-205 may be held for specific purposes including, but not limited to: a. discussion of the character, professional competence, or physical or mental health of an individual; b. strategy sessions to discuss collective bargaining; c. strategy sessions to discuss pending or reasonably imminent litigation; d. strategy sessions to discuss the purchase, exchange, or lease of real property, including any form of a water right or water shares, if public discussion of the transaction would: (i) disclose the appraisal or estimated value of the property under consideration; or (ii) prevent the public body from completing the transaction on the best possible terms; e. strategy sessions to discuss the sale of real property, including any form of a water right or water shares, if: (i) public discussion of the transaction would: (A) disclose the appraisal or estimated value of the property under consideration; or (B) prevent the public body from completing the transaction on the best possible terms; (ii) the public body previously gave public notice that the property would be offered for sale; and (iii) the terms of the sale are publicly disclosed before the public body approves the sale; f. discussion regarding deployment of security personnel, devices, or systems; and g. investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code § 78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act.    CERTIFICATE OF POSTING On or before 5:00 p.m. on Thursday, January 2, 2025, the undersigned, duly appointed City Recorder, does hereby certify that the above notice and agenda was (1) posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701, and (2) a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda, including but not limited to adoption, rejection, amendment, addition of conditions and variations of options discussed. The City & County Building is an accessible facility. People with disabilities may make requests for reasonable accommodation, which may include alternate formats, interpreters, and other auxiliary aids and services. Please make requests at least two business days in advance. To make a request, please contact the City Council Office at council.comments@slc.gov, 801-535-7600, or relay service 711. CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Austin Kimmel Public Policy Analyst DATE:January 7, 2024 RE: 2024 COMPREHENSIVE WATER, WASTEWATER, AND STORMWATER RATE STUDY View the Administration’s proposal ISSUE AT-A-GLANCE The Salt Lake City Department of Public Utilities is recommending rate changes across its water, wastewater (sewer), and stormwater utilities to meet rising operational costs and infrastructure needs. If approved in the Fiscal Year 2026 budget, the recommended changes will result in changes to the water and sewer rate structures, and various rate adjustments – both increases and decreases – depending on several factors, including customer class, water usage, and wastewater characteristics. These recommendations stem from a comprehensive utility rate study conducted by FCS Group, a consulting firm based in Washington that specializes in municipal utility rate and fee setting and consulting. The study was initiated in March 2024 and covers Fiscal Year 2026 (FY26) through Fiscal Year 2029 (FY29). The rate study methodology follows established and researched criteria for rate setting in the public water sector. The rate stabilization fee that was implemented this year as a temporary measure is not proposed as part of the FY26 water and sewer rate structures. The proposed changes reflect the cost of service across different customer classes and ensures adequate revenue for the department to maintain and improve critical infrastructure and comply with current and anticipated future state and federal regulations. Key recommendations include changes to the utility rate structures and design for specific customer classes. The recommended changes will require amendments to Salt Lake City code and updates to the City's Consolidated Fee Schedule as part of the Fiscal Year 2026 budget process. Since the rate changes impact monthly bills for the utility customers, this briefing provides the Council with an overview before more public engagement will occur, and then the Council will formally consider these modifications in a future deliberation between April and June. This study continues Public Utilities' practice of conducting rate evaluations every five to six years to ensure pricing structures remain appropriate and reflect changing conditions. While the Department also manages the City's Street Lighting Utility, this service was not included in the current study. Item Schedule: Briefing: January 7, 2024 Public Hearing: n/a Potential Action: n/a Page | 2 The KEY CHANGES BY UTILITY section below provides explanations of specific changes for each utility. Goal of the briefing: Review the information about the process and recommendations of the 2024 Comprehensive Water, Wastewater, and Stormwater Rate Study and provide feedback or requests for changes or more information. A formal request for approval is expected as part of the Mayor’s recommended FY26 budget to amend the City’s Consolidated Fee Schedule (CFS) and sections of the City’s ordinances since the Utilities’ budgets will be based on the revenue anticipated from these new rates and rate structures. A public hearing is not required for this informational update, as the public comment opportunities will occur as part of the Council’s FY26 budget deliberation process. POLICY QUESTIONS 1. Given the impacts recommended utility rate designs will have on customers, what specific outreach and communication strategies will the department use to help utility customers – throughout the service area - and businesses understand their expected bills? The Council may also wish to ask about the Department’s planned conversations with other City (general fund or other fund) customers. 2. The study indicates that high-volume residential water users will substantially increase their bills, potentially 15-30% higher (this estimate is compared to current year rates, which includes the stabilization fee). What conservation programs or resources does the department have available to help these customers reduce their water usage and manage their utility costs? 3. Council Members may wish to ask the department about strategies for maintaining revenue stability during periods of reduced water consumption following the elimination of the rate stabilization fee. What safeguards are in place to manage potential revenue shortfalls, and under what circumstances does the department need to implement additional revenue measures, including whether the department foresees needing to reimplement a rate stabilization fee? 4. The study notes that achieving all rate design objectives is often unattainable because goals like revenue sufficiency often conflict with goals of customer affordability. Could the department explain how they prioritized these competing objectives and what specific tradeoffs were made in developing the final rate recommendations? 5. The Council may ask about the reliance on residential vs. non-residential accounts for revenue stability. For example, in the water utility industry, it is noted that non-residential accounts may see a larger percentage decrease than residential accounts. Will that cause the burden for revenue stability to fall more on residential accounts? (Note: staff has asked for more information about anticipated revenue scenarios to understand this, and the Council may request a follow-up if needed). KEY CHANGES BY UTILITY A. Water FCS Group prepared long-range financial forecasts for each utility, which include a projection of annual revenue requirements and user charge revenue requirements. The report concludes the water utility requires annual revenue increases over multiple years, largely due to operations and maintenance costs increasing by 5.6% annually, an $800 million capital improvement plan, and the elimination of the rate stabilization fee (RSF). The revenue forecasts also anticipate continued reduced rates of water demand as communities across Public Utility’s service area take steps for more efficient water use and water conservation. Proposed Rate Structure Changes Page | 3 For residential customers, which include single-family homes, duplexes, and triplexes, the recommended rate design maintains the fixed service charges and charges based on actual usage while introducing three key changes: 1. The tiered structure will be applied year-round, eliminating the previous uniform wintertime rate. 2. Each usage block volume allowance has been adjusted, reducing the number of CCFs covered within each tier. 3. Overall reduction in the monthly service charges, due to increased fixed fees offset by the elimination of the FY25 RSF. Additionally, larger multi-family properties are classified as a new “Multi-Family” class due to their usage patterns. Expected Residential Customer Impacts The impact of these proposed changes will vary depending on household water usage patterns. Households using 10 CCF or less can expect to see between two and nine percent (2-9%) decreases in their monthly water bills. For context, Public Utilities estimates nearly half of residential water bills are for volumes of 5 CCF or less. Households with higher water consumption – particularly those using 11 CCF (hundred cubic feet) or more per month will likely see increases ranging from 15 to 30%. These estimates are compared to FY25 bills, which included the rate stabilization fee (RSF). Note: This chart references 5/8" meters, which differs from the City's actual 3/4" meter size standard. Additional water rate bill impacts for duplex and triplex properties, and for different meter sizes can be found in Attachment B. Expected Non-Residential Customer Impacts Non-residential customers include all commercial, industrial, and institutional users in the system. The recommended non-residential water rates propose simplifying the current rate structure by eliminating the current tiered structure which is based on average winter consumption. It proposes new uniform Page | 4 seasonal rates (based on higher summertime usage and lower wintertime usage) providing better predictability for non-residential customers. Under this recommended structure, commercial class customers could expect a 14-50% reduction in their water utility bill depending on water usage. It also reflects the removal of the RSF, resulting in a lower fixed fee than FY25 rates. Industrial class customers could expect an 11-48% reduction, and Institutional class customers could expect a 13-50% reduction. It should be noted that there is significant variability in water demand characteristics in the commercial, industrial, and institutional classes, including customers with larger than 1” meters and larger volumes of water use during different times of the year than presented in the example charts below. Page | 5 B. Wastewater (Sewer) FCS Group’s report projects increased wastewater revenue requirements over several years. Those increases are driven by a $1 billion capital improvement plan, increases in annual debt service, increases in operations and maintenance by about 5.5% annually, and additional operations and maintenance costs to operate the new water reclamation facility. Proposed Rate Structure Changes Page | 6 The recommended structure is two-part: a single monthly service charge for all customers (currently, different charges exist for seven customer classifications) plus a class-specific volumetric charge based on customer class (residential, non-residential, or multi-family). The rate stabilization fee (RSF) will also be removed from sewer utility accounts, and a monthly service charge will be applied. a) Single monthly service charge The monthly service charge for residential properties is $3.70 per unit, reducing the current charge for properties with single-family homes will be reduced from $17.66. A triplex property, for example, would pay a monthly service charge of $11.10 ($3.70 x 3 units). b) Volumetric charge The study recommends measuring billed sewer flows differently from class to class. Average winter consumption (AWC) is the standard way to measure sewer flow, using six months out of the year to determine average winter water usage. However, FCS Group proposes using only the months of December to February (three months, instead of the typical six months) to determine AWC. The study also proposes a separate Multi-Family class for properties with over three dwelling units. These properties have similar wastewater strength characteristics to residential properties but different average winter consumption (AWC). The study recommends measuring multi-family sewer flows as 70% of the winter usage, matching the percentage used for non-residential classes. Customers who discharge higher concentrations of waste into the wastewater system already pay high- strength surcharges. The new rates introduce charges for ammonia (NH3) and phosphorus (TP) discharges, alongside existing charges for biochemical oxygen demand (BOD) and total suspended solids (TSS). These new surcharges were added to comply with recent regulatory requirements. The surcharges, with the single monthly service charge, allow the department to maintain fairness and equity by identifying and monitoring select customers who cause a higher burden on the wastewater conveyance and treatment systems. Expected Residential Customer Impacts Single-family residential properties could expect a 5-51% decrease in their sewer bill, and duplex and triplex owners could expect between a 17% decrease to a 9% increase. Page | 7 Additional sewer rate bill impacts can be found in Attachment B. Expected Non-Residential Customer Impacts Non-Residential properties (Commercial, Industrial, Institutional) could expect a 47% decrease to a 43% increase in its sewer bill. The new Multi-Family class of properties could expect between a 21% decrease to a 49% increase in its sewer bill. A. Stormwater The report concludes that the overall cost requirements for stormwater are much lower than those required for water and wastewater. However, the total costs of stormwater service are expected to increase by 57% from 2024 to 2029, driven by increases in operations and maintenance and capital funding needs. Proposed Rate Structure Changes The proposed stormwater rates recommend maintaining much of the current rate structure, with annual increases to monthly rates. It is also proposed that the department reduce the amount of stormwater credits customers may receive for on-site stormwater mitigation improvements over three years. The study concludes that phasing down credits maintains affordable rates for non-credited customers. a) Stormwater Credits The City offers stormwater credits for non-residential customers who install on-site improvements ranging from zero to 75 percent of the applicable rate. Public Utilities reports that over half of the non-residential impervious area (the appropriate measure of a property’s contribution of runoff) in the City receives this credit, at varying levels. However, the rate study’s cost of service analysis determined the maximum benefit to the stormwater system for onsite improvements justifies a maximum 25% credit for onsite improvements. Phasing down the existing credits will create more affordable rates for non-credited customers, including all residential properties. The proposed rates reduce the maximum credit to 25% to align with the cost-of-service analysis, which will be phased in over three years. For example, if a parcel currently receives a 55 percent credit, it will receive a 45 percent credit in FY26, a 35 percent credit in FY27, and a 25 percent credit in FY28. The airport and customers with a National Pollutant Discharge Elimination System (NPDES) permit may receive an additional 10 percent credit. Page | 9 Expected Customer Impacts Based on the recommended changes to the stormwater rate structure, all non-credited properties (which include all residential properties) will expect to see a 5% increase in their stormwater utility bill. Those properties who currently receive a stormwater credit of 70% can expect to see a 58% increase in their stormwater bill. Page | 10 ADDITIONAL & BACKGROUND INFORMATION A. Rate Study Framework & Rate Design Objectives The rate study, initiated in March 2024, addresses three primary components for each water-related utility, which are copied below from the FCS Group report for convenience: 1) Determination of revenue requirements. This is the total amount of money each utility needs to cover operating costs, maintenance expenses, and investments in infrastructure. 2) Allocation of costs to customer classes. This is the amount needed to cover the cost of service among different customer groups, such as residential, commercial, and industrial customers based on how much each group uses each of the utility’s services. 3) Rate design. This is the rate setting process that allows each utility to recover its costs from each customer class. Rate design can take various forms such as fixed/flat fees, tiered rates, or demand- based rates. The rate design objective is to reach the practical financial requirements for the rates while achieving as many community preferences as possible. B. Rate Design Philosophy and Objectives The purpose of the rate design is to convey findings from the cost-of-service study to help determine the total revenue the utility should recover from each customer class. A key objective in this process is achieving interclass equity, where each customer class pays its share of costs without subsidizing other classes. Rate designs can also help achieve several other objectives, including those listed below. The challenge lies in balancing competing objectives to serve the utility’s operational needs and the community’s interests. Page | 10 C. Rate Advisory Committee To gather community input, Public Utilities assembled an ad-hoc 30-plus-member Rate Advisory Committee (RAC) comprised of residents, environmental groups, industry representatives, and institutional stakeholders like the University of Utah and the Salt Lake City School District. The Committee held seven meetings between May and September, during which it provided feedback on the separate utility rates among various customer classes. The RAC had two primary purposes within the study: 1. To provide input and recommendations regarding the rate structure to the Public Utilities Advisory Committee, Salt Lake City Mayor, and Council 2. To represent and communicate the views of the community Below is a list of individual RAC members and their affiliated organization(s): D. Water Service Area and Outside-City Customer Rates The Salt Lake City Department of Public Utilities’ Water Utility serves a broad customer base extending beyond municipal boundaries. In addition to the over 200,000 Salt Lake City residents, Public Utilities also serves water to approximately 365,000 residents across Salt Lake County. As defined by City code, Page | 11 Public Utilities’ water service area includes portions of Millcreek, Holladay, Cottonwood Heights, Murray, Midvale, and South Salt Lake. Water customers outside Salt Lake City pay rates approximately 35% higher than city residents, a differential that FCS Group's analysis confirmed as justified. This higher rate partly compensates for the property tax assessment city residents pay to the Metropolitan District of Salt Lake City and Sandy (the District). The District provides additional water management and treatment options from sources within and beyond the Salt Lake Valley, a service from which outside-city customers also benefit. Additionally, outside-city customers do not share the same inherent risks that Salt Lake City residents bear as owners and operators of the water system. ATTACHMENTS A.Administrative Transmittal B.Estimated Utility Bill Impacts CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Brian Fullmer Policy Analyst DATE:January 7, 2025 RE: Alley Vacation at Approximately 373 West American Avenue PLNPCM2023-00636 ISSUE AT-A-GLANCE The Council will be briefed about a proposal to vacate an approximately 135 foot by 11.5 foot north/south alley running between 373 West American Avenue to a former east/west alley that was vacated in 1965 and incorporated into the applicant’s property. The Interstate-15 900 South viaduct abuts the southern property line which renders the alley unusable as a mid-block connection within the neighborhood. The applicant proposes redeveloping their parcels into a multi-family development, though no formal proposal has been submitted to date. To support the Ballpark Station Area Plan’s goal of improving pedestrian connectivity, the applicant proposes providing a 10-foot-wide easement on the eastern edge of their property at 337 West American Avenue as shown in the image below. This would run along existing railroad tracks and the potential TRAX Orange Line light rail route. The applicant owns four of the five parcels abutting the alley and the other property owner is supportive of the proposed alley vacation. If approved by the Council the vacated alley property would be sold to the abutting property owners at market value. The Planning Commission reviewed this petition during its September 11, 2024 meeting and held a public hearing at which no one offered comments. The Commission followed Planning staff’s recommendation and voted 7-0 in support of the proposed alley vacation, with the following conditions: Item Schedule: Briefing: January 7, 2025 Set Date: January 21, 2025 Public Hearing: February 4, 2025 Potential Action: February 18, 2025 Page | 2 1. The applicant shall establish a utility easement in place of the existing public alley right-of-way following the approval of the request or coordinate relocation of existing power lines with Rocky Mountain Power. 2. The applicant shall establish a 10-foot-wide public access easement along the eastern boundary of 337 West American Avenue. 3. The applicant shall not purport to convey the property encompassing any portion of the alley until at least 60 days after a final decision by the City Council on the petition. (Staff note: this is a recommendation from the City Attorney’s Office to allow time to finalize the ordinance and complete a transaction for the alley property and proposed easement.) 4. The applicant must consolidate the parcels through a lot consolidation. Goal of the briefing: To review the proposed alley closure, address questions Council Members may have and prepare for a public hearing. POLICY QUESTIONS 1. Does the Council support the Planning Commission’s recommendation to close this alley? 2. Is the Council supportive of the proposed conditions of approval? South facing aerial view of the subject alley and proposed easement highlighted in blue. Image courtesy of Salt Lake City Planning Division ADDITONAL INFORMATION In 2022 a previous owner attempted to vacate the subject alley through a quiet title action. (A quiet title action is lawsuit in civil court to establish or settle title to property. They often involve cases in which there is disagreement on who holds the title, and the lawsuit is intended to remove or “quiet” claims to a title, resulting in a clear title.) In this case, the court incorrectly granted title (or ownership) to the alley property to the previous owner who brought the quiet title action, but the City was not notified. The alley is included in the subdivision plat and has not previously been vacated. Public rights-of-way cannot be vacated through quiet title actions. A notice of public alley is being held in escrow by the City Attorney’s Office and clarifies the alley remains City property unless and until the City Council approves the alley vacation. Page | 3 Alley vacation requests receive three phases of review, as outlined in section 14.52.030 Salt Lake City Code (see pages 5-7 below). Those phases include an administrative determination of completeness; a public hearing, including a recommendation from the Planning Commission; and a public hearing before the City Council. Planning staff identified four key considerations connected to this alley vacation. A short description of each issue is provided below for reference. Please see pages 4-8 of the Planning Commission staff report for full analysis of these issues. Consideration 1: Analysis of Alley Vacation Factors Section 14.52.030.B Salt Lake City Code directs the Planning Division to analyze factors in the following table. Planning staff found the proposed alley factors clearly meet seven of the eight factors. The factor in blue text received additional consideration, which is discussed below. The Ballpark Station Area Plan (2022) discusses potential removal of the 900 South Interstate-15 viaduct and replacing it with community amenities. UDOT owns the viaduct and indicated it has no plans to change the current configuration. Vacating the alley would remove it from public access should the viaduct ever be eliminated or reconfigured. However, it is Planning staff’s opinion that the applicant’s proposed easement adjacent to the potential TRAX Orange Line will widen an existing connection through the block and not result in a use that is contrary to the Ballpark Plan. Factor Planning Staff Finding The City Police Department, Fire Department, Transportation Division, and all other relevant City Departments and Divisions have no objection to the proposed disposition of the property. Complies The petition meets at least one of the policy considerations stated above. Complies with Policy Consideration A – Lack of Use. The petition must not deny sole access or required off-street parking to any adjacent property. Complies The petition will not result in any property being landlocked. Complies The disposition of the alley property will not result in a use which is otherwise contrary to the policies of the City, including applicable master plans and other adopted statements of policy which address, but which are not limited to, mid-block walkways, pedestrian paths, trails, and alternative transportation uses. Complies No opposing abutting property owner intends to build a garage requiring access from the property, or has made application for a building permit, or if such a permit has been issued, construction has been completed within 12 months of issuance of the building permit. Complies Page | 4 The petition furthers the City preference for disposing of an entire alley, rather than a small segment of it; and Complies The alley is not necessary for actual or potential rear access to residences or for accessory uses. Complies Consideration 2: Policy Considerations Alley vacation requests must satisfy at least one of the following four policy considerations: A-Lack of Use, B-Public Safety, C-Urban Design, D-Community Purpose. Planning staff found the alley vacation satisfies the Lack of Use consideration. As noted above, the alley terminates near the Interstate-15 900 South viaduct and cannot currently be used as a public right-of-way. Consideration 3: 2022 Quiet Title Claim As discussed above, a quiet title action in 2022 incorrectly granted title to a previous owner. A notice of public alley is being held in escrow by the City Attorney’s Office pending a decision by the City Council. Consideration 4: General Plan Considerations The subject alley is identified in the Central Community Master Plan, Ballpark Station Area Plan, and Downtown Plan. Given the alley’s termination point at the Interstate-15 900 South viaduct, it is highly unlikely it will be usable as a public right-of-way in the future. City Department Review During City review of the petition, the Engineering Division noted the need to maintain access for Rocky Mountain Power to service its lines. This is addressed in the Planning Commission’s recommendation to establish a utility easement or coordinate with Rocky Mountain Power to relocate the lines. No other responding departments or divisions expressed concerns with the proposal but stated additional review and permits would be required if the property is developed. ANALYSIS OF STANDARDS Attachment D (pages 46-48 of the Planning Commission staff report) is an analysis of factors City Code requires the Planning Commission to consider for alley vacations (Sections 14.52.020/.030.B Salt Lake City Code). 14.52.020 - The City will not consider disposing of its interest in an alley, in whole or in part, unless it receives a petition in writing which demonstrates that the disposition satisfies at least one of the following policy considerations: A - Lack of Use- The City’s legal interest in the property appears of record or is reflected on an applicable plat; however, it is evident from an on-site inspection that the alley does not physically exist or has been materially blocked in a way that renders it unusable as a public right-of-way. B - Public Safety- The existence of the alley is substantially contributing to crime, unlawful activity or unsafe conditions, public health problems, or blight in the surrounding area. C - Urban Design- The continuation of the alley does not serve as a positive urban design element. D - Community Purpose- The petitioners are proposing to restrict the general public from use of the alley in favor of a community use, such as a neighborhood play area or garden. Planning staff found the requested alley vacation complies with policy consideration A-Lack of Use. Page | 5 PUBLIC PROCESS September 14, 2023 – o The Ballpark Community Council was sent a 45-day required notice for recognized community organizations. The council did not provide comments. o Neighbors within 300 feet of the site were provided early notification of the proposal. No comments were received. August 29, 2024 – o Public hearing notice mailed, posted on City and State websites, and posted on Planning Division listserv. o Public hearing notice sign posted on the property. September 11, 2024 – Planning Commission review and public hearing. The Commission voted unanimously to forward a positive recommendation to the City Council. October 16, 2024 – Draft ordinance sent to the Attorney’s Office. October 30, 2024 – Signed ordinance sent to Planning Division from Attorney’s Office. November 27, 2024 – Transmittal received in City Council Office The process for closing or vacating a City-owned alley is outlined in Section 14.52 Salt Lake City Code. 14.52.010: DISPOSITION OF CITY'S PROPERTY INTEREST IN ALLEYS: The city supports the legal disposition of Salt Lake City's real property interests, in whole or in part, with regard to city owned alleys, subject to the substantive and procedural requirements set forth herein. 14.52.020: POLICY CONSIDERATIONS FOR CLOSURE, VACATION OR ABANDONMENT OF CITY OWNED ALLEYS: The city will not consider disposing of its interest in an alley, in whole or in part, unless it receives a petition in writing which demonstrates that the disposition satisfies at least one of the following policy considerations: A. Lack Of Use: The city's legal interest in the property appears of record or is reflected on an applicable plat; however, it is evident from an onsite inspection that the alley does not physically exist or has been materially blocked in a way that renders it unusable as a public right of way; B. Public Safety: The existence of the alley is substantially contributing to crime, unlawful activity, unsafe conditions, public health problems, or blight in the surrounding area; C. Urban Design: The continuation of the alley does not serve as a positive urban design element; or D. Community Purpose: The petitioners are proposing to restrict the general public from use of the alley in favor of a community use, such as a neighborhood play area or garden. (Ord. 24-02 § 1, 2002) 14.52.030: PROCESSING PETITIONS: There will be three (3) phases for processing petitions to dispose of city owned alleys under this Page | 6 section. Those phases include an administrative determination of completeness; a public hearing, including a recommendation from the Planning Commission; and a public hearing before the City Council. A. Administrative Determination Of Completeness: The city administration will determine whether or not the petition is complete according to the following requirements: 1. The petition must bear the signatures of no less than seventy-five percent (75%) of the neighbors owning property which abuts the subject alley property; 2. The petition must identify which policy considerations discussed above support the petition; 3. The petition must affirm that written notice has been given to all owners of property located in the block or blocks within which the subject alley property is located; 4. A signed statement that the applicant has met with and explained the proposal to the appropriate community organization entitled to receive notice pursuant to title 2, chapter 2.60 of this code; and 5. The appropriate city processing fee shown on the Salt Lake City consolidated fee schedule has been paid. B. Public Hearing and Recommendation From The Planning Commission: Upon receipt of a complete petition, a public hearing shall be scheduled before the Planning Commission to consider the proposed disposition of the City owned alley property. Following the conclusion of the public hearing, the Planning Commission shall make a report and recommendation to the City Council on the proposed disposition of the subject alley property. A positive recommendation should include an analysis of the following factors: 1. The City Police Department, Fire Department, Transportation Division, and all other relevant City departments and divisions have no reasonable objection to the proposed disposition of the property; 2. The petition meets at least one of the policy considerations stated above; 3. Granting the petition will not deny sole access or required off street parking to any property adjacent to the alley; 4. Granting the petition will not result in any property being landlocked; 5. Granting the petition will not result in a use of the alley property which is otherwise contrary to the policies of the City, including applicable master plans and other adopted statements of policy which address, but which are not limited to, mid-block walkways, pedestrian paths, trails, and alternative transportation uses; 6. No opposing abutting property owner intends to build a garage requiring access from the property, or has made application for a building permit, or if such a permit has been issued, construction has been completed within twelve (12) months of issuance of the building permit; 7. The petition furthers the City preference for disposing of an entire alley, rather than a small segment of it; and 8. The alley property is not necessary for actual or potential rear access to residences or for accessory uses. Page | 7 C. Public Hearing Before The City Council: Upon receipt of the report and recommendation from the Planning Commission, the City Council will consider the proposed petition for disposition of the subject alley property. After a public hearing to consider the matter, the City Council will make a decision on the proposed petition based upon the factors identified above. (Ord. 58-13, 2013: Ord. 24-11, 2011) 14.52.040: METHOD OF DISPOSITION: If the City Council grants the petition, the City owned alley property will be disposed of as follows: A. Low Density Residential Areas: If the alley property abuts properties which are zoned for low density residential use, the alley will merely be vacated. For the purposes of this section, "low density residential use" shall mean properties which are zoned for single-family, duplex or twin home residential uses. B. High Density Residential Properties And Other Nonresidential Properties: If the alley abuts properties which are zoned for high density residential use or other nonresidential uses, the alley will be closed and abandoned, subject to payment to the city of the fair market value of that alley property, based upon the value added to the abutting properties. C. Mixed Zoning: If an alley abuts both low density residential properties and either high density residential properties or nonresidential properties, those portions which abut the low density residential properties shall be vacated, and the remainder shall be closed, abandoned and sold for fair market value. (Ord. 24-02 § 1, 2002) 14.52.050: PETITION FOR REVIEW: Any party aggrieved by the decision of the City Council as to the disposition of City owned alley property may file a petition for review of that decision within thirty (30) days after the City Council's decision becomes final, in the 3rd District Court. STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Sylvia Richards, Policy Analyst DATE:January 7, 2025 RE: Required Public Art Program Maintenance and Conservation Report for FY24/25 Maintenance and Conservation Artwork Projections ISSUE AT-A-GLANCE Each year, as required by ordinance, the Department of Economic Development’s Arts Council Division provides the City Council with a report estimating the maintenance and conservation costs for the City’s public art collection, including recommendations for the deaccession (removal) of certain art pieces. As in prior years, the Arts Council requests the transfer to the CIP Percent-for-Art Maintenance Fund 20% of the FY24-25 CIP Percent-for-Art funds which is $40,000. Currently, there are a total of 150 pieces of city-owned artwork in various spaces throughout the city, including parks, streets, plazas, and buildings, as well as 92 art pieces located at the City & County Building. During FY24-25, the Arts Council will focus on maintaining 13 art pieces for an estimated cost of $73,529, $33,069 from the CIP Percent-for-Art Maintenance Fund, and $40,460 from the CIP General Fund Public Lands Maintenance Fund, plus $15,000 of Arts Council funds for unexpected repairs (see attachments indicating *UR). KEY CONSIDERATIONS The Administration has noted that while most of the plans for maintenance and conservation this year are focused on the Assessment Report recommendations from FY20, the condition of some art pieces have worsened over time, requiring an immediate plan to preserve them. Additionally, some of the Fine Art pieces located within the City & County Building, primarily two-dimensional artworks, are in need of maintenance, however, they are not being considered because funding regulations prohibit the use of CIP funds on non-capitalized objects. One artwork, located on the 500 West Park Blocks, is being considered for deaccession because of complexity (various locations and mediums). See Item 1 of Attachment B. Further, some pieces were funded by the RDA, but when the RDA passed the 1.5% for Art Ordinance increase, no funding was set aside to maintain the RDA artwork. 2 Lastly, some additional objects in the City collection are in need of maintenance and are not being considered because repairs far exceed available funds (see Outstanding Repairs report). POLICY QUESTIONS 1. The Council may wish to ask if the Administration has considered other sources to supplement the funding of the public art maintenance costs. 2. The Council may also wish to ask if the Administration has considered requesting additional maintenance funding during the annual budget process. BACKGROUND During FY23-24, the Public Art Program focused on the maintenance of 26 public art pieces in the City’s collection for a total cost of $142,340, of which $63,890 was paid from the CIP Percent-for-Art Maintenance Fund while $19,450 was from CIP General Fund from Public Lands, and $59,000 was from the Mayor’s Office (allocated in FY23-23). Through the annual CIP Percent-for-Art funding approved in FY22-23, the Public Art Program allocated $31,221 towards the maintenance fund. Additionally, four artworks were deaccessioned as recommended by the Art Design Board and approved by Mayor Mendenhall. a) The 200 West Cycle Track Planters were partially deaccessioned due to structural concerns b) The Vines and Leaves piece was partially deaccessioned due to structural concerns and natural fading of the artwork c)Peace Cradle was stolen from the International Peace Gardens d)Untitled (4th Avenue Stairwell Pavers) near Memory Grove were deaccessioned due to natural fading of the artwork Maintenance costs for two artworks exceeded the original bids (Flight of Fancy and Signal Site) and were postponed for completion. Two works were substituted in their place. Additionally, the following pieces were restored and reinstalled at Jordan Park’s International Peace Gardens: Irish Cross, Little Mermaid, the Olmec Head and the Greek Goddess statue of Hebe. The Arts Council oversaw the managed the restoration work using the Public Lands CIP Maintenance funds. For reference, the following ordinance allows the transfer of funds and requests an annual report: ORDINANCE CONSIDERATIONS: 2.30.060: FUNDS FOR WORKS OF ART; REQUESTS FOR APPROPRIATIONS: A. When so designated by the City Council, in its appropriation for capital improvements, all City departments shall expend, as a nondeductible item out of any monies appropriated for the planning, design and construction of construction projects, an amount equal to one and one-half percent (1.5%) of such appropriations for the acquisition and installation of works of art and ornamentation, ten to twenty percent (10- 20%) of which will be deposited in the public art maintenance fund and used to provide maintenance for existing works of art. The Mayor shall provide a report to the City Council of works of art that require maintenance and the estimated cost of such maintenance prior to the funds being deposited in the public art maintenance fund. Attachments: Attachment A: FY23-24 Completed and In Progress Artworks Addressed for Maintenance and Conservation Attachment B: FY24-25 Maintenance and Conservation Artwork Projections Attachment C: Future Artworks for Maintenance & Conservation Artwork Projections – Outstanding projects with no budget City Council Announcements January 7, 2025 Information Needed by Council Staff A. Council District Newsletters for Public Utilities Mailing At the beginning of each calendar year, the Public Utilities Department identifies certain months for Council Members to include Council District newsletters as an insert in residents’ monthly utility bills. Each Council Member may opt to use the Public Utility billing for outreach purposes once per calendar year. The advantage of sharing in the Public Utilities mailings is Council Members only pay for printing expenses out of their communication budget, saving on postage costs. Due to limitations with mail sorting machines, only three Council District newsletters can be accommodated each month. The following months have been identified for the Council to include a newsletter insert. Please let staff know which month you would like to include a newsletter as part of the Public Utilities billing: o April o August o December B. Legislative Action: Height Restrictions and Gates The Council will consider adopting a legislative action that would initiate a zoning petition for City staff to research and draft an ordinance that would update the Salt Lake City Code to increase the maximum hedge height to 6 feet (currently 4 feet) in the front and side yards in front of the primary façade. The request arises from residents' concerns about the current code, which may unintentionally limit safety, privacy, and functionality for properties incorporating ADUs or pursuing higher-density living solutions. In addition, the maximum height of a fence, wall, or hedge located behind the primary façade would be increased to 7 feet (currently 6 feet). If the Council supports this action, it may consider formally adopting the legislative action in the January 7 formal meeting. C. Financial Disclosure (attached) During January of each year, Council Members are given an annual reminder to submit a financial disclosure form statement, which is now required to be completed by the end of January, regardless if there is a change or not. Please complete the attached form and give to the City Recorder.