12/19/1985 - Minutes • • i'YIw -3
PUBLIC UTILITIES ADVISORY COMMITTEE
Minutes
Meeting of December 19, 1985 MAR 18 IgeS
at Little America Hotel, Sun Valley Room (,,,,, Mara.,,�,�x
Committee members present were Chairman Marvin Tuddenham, Genevieve Atwood,
David Handley, Ray Arnold and Steve Featherstone. Also in attendance were
Ray Montgomery of the city attorney's office; Nick Sefakis of the Metropolitan
Water District of Salt Lake City; Florence Bittner of Community Services
and newly elected council member; Carole Stokes of the city council office
and Ed Erickson and Steve Zink of Alexander Grant & Canpany. Staff members
present were LeRoy W. Hooton, Jr., Joe Fenton, Tim Doxey, Jim Lewis, George
Jorgensen, Bill Farmer, Lin Fitzgerald, Wendell Evensen and Jackie Faddis.
Chairman Tuddenham welcomed the group at 12:00 and acknowledged Mrs. Bittner,
Carole Stokes and Nick Sefakis. Lunch was served.
Chairman Tuddenham brought the meeting to order at 12:40.
I. Approve minutesof November 21, 1985 meeting
Mr. Handley motioned that the minutes be approved as written and Mr.
Featherstone seconded the motion which carried.
II. Review new water and sewer bill
Mr. Lewis distributed a copy and described the new water and sewer bill.
He said a self-addressed envelope will be enclosed with the bill which wil
speed up cash collections in that it will be sent directly to the bank for
deposit.
Mr. Handley suggested that the type be made larger where it says to mail
this portion back with payment.
Mr. Lewis said the meter section lists basic information with larger print.
The last part shows a bill comparison. We will have an area to enter
comments in, i.e., to tell customers of high consumption, telling them to
check for leaks, etc. The back side of the bill can be printed with any
type of information that we want to get to the public.
Mr. Handley recommended that the screen line be identified so that it would
not confuse our customers and that we should inform the customers that it
is for office use only.
Ms. Atwood suggested putting "Make check payable to Salt Lake City Corporation"
next to where the amount is shown.
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Mr. Featherstone said before we make up too many copies and have it mass
produced he suggested that we send out inquiries to customers asking them
for comments and suggestions. Mr. Handley said a prototype of this type
would be very useful--we could send out 100 or so and wait to hear back
from them.
Mrs. Bittner said the Joint Committee Council is having a meeting on January
8th and this would be a good time to get their response.
Ms. Atwood said in general she thought the bill was very good.
Mr. Featherstone motioned that we proceed with the bill and that we send
out a prototype for comments. Mr. Arnold seconded the motion which carried.
III. Financial audit report by Alexander Grant & Company
Mr. Ahlander introduced Ed Erickson and Steve Zink of Alexander Grant &
Company.
Mr. Erickson briefly described the report. He said the documents are very
similar to the ones we have had in prior years. On the third page is the
auditor's opinion. On the balance sheet the sewer division had a large
amount of cash and cash investments. Total property and equipment was $132
million compared to $116 million last year. Total water and sewer assets
were at $146 million compared to $134_million last year. Liability fund
hasn't varied significantly from last year. Current assets have five times
as many current assets as current liabilities. The fund total equity is at
a very strong, solid position. Total fund equity exceeded $100,000,000 for
the first time. On the statement of income it had a good increase in
operating revenue--was up about 17 percent over last year. Operating
expenses only increased 6 percent, but was 44 percent over last year. Net
income of $12 million is up approximately $4 million over last year. On
the statements of changes in fund equity there was a total of $19 million
in total working capital. Of that $9 million was used for property and
equipment additions and another $1 million to retire the debt. On the
working capital the department had $25 million at the end of the year. On
the letters, it confirms that the bonds have been maintained. Collections
are good with the utilities. Scheduled insurance coverage is shown which
is required. A management letter is required and there have been continual
improvements in the department. The letter is shorter than in past years.
The bottom paragraph in the letter says, ". ..study is made for the limited
purpose described. .." Overall the utility is having very sound internal
control. We have talked with the management and some corrections have
been made already. Cashier responsibilities have been cleared up regarding
making any adjustments to customers' accounts. Approval of debit and
credit memos: prepared by supervisors will be approved by second parties.
Cash accounts: Procedures have been put in place to insure that this will
be done. On the allocation of costs to work orders it is anticipated that
the department cost accountant will be able to perform the cost study this
year. Eta processing costs were billed based on estimates rather than the
actual costs. It is required that these be based on actual costs for
future years.
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Mr. Erickson said that the Public Utilities Department has a very competent
staff.
Mr. Hooton thanked the Public Utilities Advisory Committee for their help,
advise and contributions for a successful year. He thanked Carole Stokes
for her help in the past. He said that Ray Ahlander is retiring in January
and thanked him for his help with the audit reports, etc., and dedication
to the department over the years.
IV. & V. Annual Report & Review past goals and project future goals
Mr. Hooton distributed the new department annual report.
We went over the director's report (attached) which covers the end of
the first five years.
Bill Farmer explained the failed switch during the power outage of last
July. This switch has now been bypassed.
Mr. Hooton updated the group on the progress of the Little Dell Project.
He said that in the next month a decision will be made either to construct
or not construct the project. One concern is getting Salt Lake County to
make a commitment on funding for flood control and recreation.
Mr. Sefakis said-we-have to go before theWater Resource Board on - -
January 13th and by then we will have to be able to make a decision.
Mr. Featherstone suggested that the Public Utilities Advisory Committee
send a letter to the county urging them to construct this project.
Mr. Hooton said that Mt. Dell reservoir is small with an inadequate overflow
structure and in the event of a potential maximum flood it could overtop.
He also said that the Corps has an interest in the project. They are now
trying to get back into the game.
Mr. Tuddenham said at one time the Corps project was too far out. Now that
they have reworked it it may be better.
Mr. Featherstone motioned that we send a resolution to the mayor and city
council reaffirming our position and ask them to contact the Salt Lake
County Commission and urge them to construct the project. Mr. Arnold
seconded the motion which unamiously carried.
The meeting was adjourned at 2 p.m.
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LEROY W. HOOTON, JR.
DIRECTOR DEPARTMENT OF PUBLIC UTILITIES PALMER A. DEPAULIS
JOSEPH S. FENTON WATER SUPPLY '& WATERWORKS
7331XXXVIIIMMX
SUPERINTENDENT, WATER RECLAMATION WATER RECLAMATION - MAYOR
WENDELL E. EVENSEN, P.E. :1530 SOUTH-WEST TEMPLE
SUPERINTENDENT SALT LAKE CITY, UTAH 84115
WATER SUPPLY & WATERWORKS
1985 DIRECTOR' S REPORT
This year' s annual report is really the end of a
five-year period which began with a change in city government
and appointment of the Public Utilities Advisory Committee.
Over the past five years the department' s programs centered
on first identifying the city' s water and sewer needs, then
developing solutions and financial plans; i.e. , the 201
Facilities Planning Study, bonding, etc. , and then the
construction phase. The overall goal during this period
was to develop water and sewer programs that would provide
the city quality services into the 21st century.
The end of 1985 signals the end of a five-year period
that has seen unprecedented activity within the Department
of Public Utilities. Over this period of time the department
completed a five-year capital improvements program that
began in 1981. Major improvements were made to both the
water and wastewater systems.
o $38 million in water system improvements which included
the replacement and enlargement of the city' s major
east-side Big Cottonwood conduit, increasing the capacity
by 90 percent. Seven new distribution storage reservoirs
were constructed, increasing the total treated water
storage capacity by 37 percent.
o $17.7 million in sewer system capital expenditures,
replacing sewer lines and equipment and upgrading the
city' s existing wastewater plant.
Water Division . Within the water division the following
significant events occurred:
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° New connections grew at a one percent rate annually.
Over the last five years we have gained 3600 new
connections or equivalent to a new city the size of
Spanish Fork.
o Customer service needs grew by 99 .4 percent--from 50 ,576
to 100,847 contacts per year.
o As a result of the department ' s distribution computer
13 new water• facilities were added to the system without
hiring any additional employees to operate them.
o The valve running program increased by 30 percent.
o Maintenance work increased by 7 percent from 27 ,107 to
28 ,107 work orders.
Wastewater Division. Major programs were completed during
the past five years. Most significantly there were no odor
episodes at the wastewater plant since 1979 .
o The city successfully completed an EPA 201 Plan which was
adopted on December 7 , 1982 .
o In compliance with EPA regulations the department adopted —
a pretreatment program to control industrial discharges
into the city' s sanitary sewer which was approved by EPA
on August 9 , 1982.
o The department completed sludge management pilot studies
for sludge disposal on land owned at the international
airport . The city now has a viable and economical method
of disposing of its sludge at a cost of less than $100
per ton.
o The department completed an engineering study to determine
the site for a new treatment facility in the northwest
quadrant. Purchase of the property is expected to be
completed shortly.
o The pilot study for short-term areation which will allow
the plant to operate within its discharge permit parameters
was completed and submitted to the State Board of Health
for final approval .
o In 1984 the bonded "near-term improvements" were completed
o During 1985 three contracts were let to rehabilitate
the pretreatment and main treatment facilities and to
construct energy recovery facilities.
o Additional contracts will be let in 1986 for upgrading
the existing laboratory facility and to construct a new
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o In compliance with EPA regulations the department adopted
a pretreatment program to control industrial discharges
into the city' s sanitary sewer which was approved by EPA
on July 28, 1983 .
o In 1984 the bonded "near-term improvements" were completed .
o In 1984 the department completed an engineering study to
determine the site for a new treatment facility in the
northwest quadrant. Purchase of the property is expected
to be completed shortly.
o In 1985 the department completed sludge management pilot
studies for sludge disposal on city-owned land at the
international airport. The city now has a viable and
economical method of disposing of its sludge.
o In 1985 the pilot study for short-term areation which
will allow the plant to operate within its discharge
permit parameters was completed and submitted to the
State Board of Health for final approval.
o During 1985 three contracts were let to rehabilitate
the pretreatment and main treatment facilities and to
construct energy recovery- facilities.
o The program to reduce flows entering the wastewater
treatment plant has been successful , reducing the flow
by 12 percent from 46. 3 MGD in 1980 to 40. 6 MGD in 1985.
o The wastewater treatment plant in 1985 was meeting the
requirements of its NPDES permit.
During this period the sewer maintenance division made
significant progress in maintaining and cleaning the city' s
765 miles of sewer line .
o The entire 765 miles of sewer lines have been televised
and cleaned.
o Seventy-five percent of the sewer lines that have root
problems have been vapor-rooted.
° The entire system is being monitored by ISCO meters to
determine infiltration/inflow problems.
In 1985 the Public Utilities Advisory Committee recom-
mended that sewer rates be reduced by 17 percent, making
the average sewer bill in Salt Lake City next to the lowest
in Salt Lake County.
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This period has also been extraordinary in terms of
emergencies. The September 28, 1982 100-year storm caused
widespread damage to department facilities and caused
extreme overloading at the wastewater treatment plant.
Plant meters were pegged as flows over 100 MGD passed
through the facility. Mayor Wilson made a public request
to limit plumbing use to alleviate the problem. That
following spring the 1983 flood damaged many water facilities
and to a lessor extent again in the spring of 1984. To
demonstrate the variations in weather, before the wet
period of 1982-1984, there was almost a water crisis during
the summer of 1981 when it nearly became necessary to cut
the county off the Salt Lake Aqueduct in order to meet our
demand . This again nearly happened during August in the
summer of 1985.
During this period the area also experienced two major
power outages, one on January 8, 1981 and the other this
past summer on July 6. The first outage was handled without
any problems, however, the most recent failure was compounded
when an electrical switch failed in the wastewater treatment
plant auxiliary generators, preventing the coupling with
the main plant pumps. The equipment that failed was scheduled
for replacement under a contract let two months earlier.
Next Year' s MajorGoals
Wastewater:
1 . Continue wastewater construction program at wastewater
treatment plant.
2 . Master plan for the northwest quadrant sewer collection
system.
3. Construction of new pumping plant and trunk line on
North Temple
Water:
1 . Construct a high-pressure line at the mouth of Parley' s
Canyon to serve the city' s east bench.
2. Construct Suicide Rock regulation station to regulate
flows from Mt. Dell, eliminating the air entrainment
problem and feeding the east bench by gravity.
3. Continue to initiate the construction of Little Dell
Project.
4. Design pipelines to connect to the CUP Jordan Aqueduct.
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RECEIVED
MAR 17 1986
Mk atir
LEROY W. HOOTON, JR,DIRECTOR DEPARTMENT OF PUBLIC UTILITIES
ff
JOSEPH S. FENTON WATER SUPPLY & WATERWORKS PALMER DEPAULIS
SUPERINTENDENT, WATER RECLAMATION WATER RECLAMATION MAYOR
WENDELL E. EVENSEN, P.E. 1530 SOUTH WEST TEMPLE
SUPERINTENDENT SALT LAKE CITY, UTAH 84115
WATER SUPPLY & WATERWORKS
March 13, 1986
APPROVE
Honorable Mayor Palmer DePaulis u.-!' 18 1SR
300 City and County Building
Salt Lake City, UT 84111
EACOADhit
Dear Mayor DePaulis :
RE: u rc Utilities Advisory Committee
Enclosed are the minutes of the Public Utilities Advisory
Committee meeting of December 19, 1985 which were approved
at the committee meeting of March 13, 1986
. I recommend that the minutes be approved in the mayor' s
executive meeting and filed in the city recorder' s office .
Sincerely,
ti!'-
EROY TAV HOO °NW.
Directo!
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Enc .
cc : City Council /1/1
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