02/24/2011 - Minutes p2 //-.6
RECEIVED
Salt Lake City APR 2 5 2011
Public Utilities Advisory Committee
February Minute, 2011 CITY RECORDER
24The Public Utilities Advisory Committee meeting was held at 7:00 a.m. February 24, 2011 at
1530 South West Temple, Salt Lake City, Utah. Committee members present were Jan Striefel,
Dick Gaddis, Allen Orr, Dwight Butler, Dixie Huefner and Larry Myers. Salt Lake City Public
Utilities employees present were Jeff Niermeyer, Tom Ward, Jim Lewis, Bob Sperling, Florence
Reynolds, Chuck Call, Tracie Kirkham and Zee Smith. Also in attendance were Holly Hilton,
SLC Mayor's Office; Rusty Vetter, SLC Attorney's Office; Lehua Weaver, SLC Council Office;
Darrel Dixon, Stantec, Alan Taylor, J-U-B Engineers; Keith Larson and Mike Collins, Bowen
Collins & Associates; Jim Olson, HDR; and Mike Wilson, MWDSLS.
Approve Minutes of January 27, 2011 Meeting
Committee member Jan Striefel moved and Committee member Larry Myers, seconded the
motion to approve the minutes of the January 27, 2011 meeting as amended. All members
present voted aye.
Elect Chairman and Vice-Chairman for 2011
Committee member Allen On proposed that we rotate the Chair and Vice-Chairman each year.
Committee member Dick Gaddis made a motion that in order to be nominated for Chair or Vice-
Chair, the Committee member must be present. Committee member Jan Striefel seconded the
motion, with all members present voting aye.
Committee member Dixie Huefner nominated Committee member Dwight Butler for Vice-
chairman. Committee member Jan Striefel seconded the motion, with all members present voting
aye.
Committee member Jan Striefel nominated Dick Gaddis for Chairman. Committee member
Larry Myers nominated Allen Orr for Chairman. Committee member Dixie Huefner seconded
the motion to nominate Allen Orr for Chairman. The majority of the members voted aye.
Committee member Dick Gaddis was opposed.
Financial Report — Jim Lewis
Mr. Jim Lewis briefed the Committee on the financial report for the period ending January 31,
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2011. Mr. Lewis stated that all three funds are currently doing very well and are in a good
financial position at this time. Water sales are currently 2.6 percent ahead of last year, thanks to
the extended fall season helping the situation. Mr. Lewis presented a slide showing water
deliveries month by month for the past eight years. The chart showed an increase in September
and October deliveries and a small drop in August. He stated that the winter season is almost
over and we do not expect any major changes in water deliveries until May of this year. He also
presented the water conservation chart for the current year.
The next slide showed a comparison of revenue for all three funds versus budget. Mr. Lewis
stated that two of the funds are higher than last year due to rate increases in all the funds on July
1, 2010. The Water Utility is currently $4.6 million higher than last year with Stormwater at $1.3
million higher than last year. Sewer is the only one that is current with expectations and equal to
last year with the 4.5% rate increase included. This shows that the economy has not recovered
yet with most of our large industrial customers reducing production and limiting the amount of
water used and discharged.
The next slide was a comparison of operating costs last year with the expected budget amounts.
Mr. Lewis stated that operating cost for the Water Utility is above last year by $1.9 million,
which relates to the purchase of more water and higher prices from the Metropolitan Water
District. The Sewer is above last year by $ 676,000 and the Storm Water is just slightly above
last year by $6,288 as the Riparian Corridor project, which reviewed the three drainage areas,
comes to a close. The Department has been doing a very good job of controlling expenditures
over the last couple of years.
The last slide listed the capital improvements for each of the funds compared to budget. The
Water Utility has expended over $6 million in capital improvements with $5.1 million
encumbered at the end of January. The Sewer Utility has expended $7.2 million with $11.8
million encumbered. The Storm Water Utility has expended $895,000 with $6.7 million
encumbered.
Budget Presentation for 2011/12-Jim Lewis
Mr. Jim Lewis briefed the Committee on the budget request for next year, 2011-2012. He stated
that the major budget issues for next year were:
• Department O&M Budget is $62,619,442. Capital budget $67,452,675. The budgeted
Debt servicing is $7,110,000—grand total of$137,182,117
• No rate changes as all three funds maintain the status quo. Cash flow analysis of all
three (Water, Sewer, Stormwater) funds indicate sewer and water rate increases may be
needed starting in FY 2012.
• Folsom Stormwater line project bond for $8 million.
• Operating budgets for all three funds is designed around a zero base budget with some
increases for personnel, benefits and materials as cost of doing business increases.
Sustainability and transparency continues to be the objective of this operations budget. N
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• Overall construction will be aggressive; with $22 million applied to four projects, the
Orange Street sewer trunk line, Folsom Avenue storm drain, waste water digester plant
covers and water valve replacement program.
• Future bonding for capital programs. CIP planning, for the next 3 years at this pace,
may require up to $41 million in revenue bonds issued. Steel reservoirs & tanks will be
undergoing a special, once a decade review to determine if any type of corrosion or
deterioration exists. Watershed and other programs to protect the environment will
continue.
• The Department is proposing to increase personnel by 3 FTEs (Full-time Equivalent
Employees).
a. Sewer Collection Crew+4 Water warehouse supervisor -1
b. Customer Service Rep +1 Water Payroll Position -1
c. Watershed seasonal +.5 Meter reader -1
d. Canal seasonal +.5 Total Change +3
Expansion of Sewer Cleaning Team
For the first time since 1998, the Department is asking to increase Sewer personnel by 4 full-time
employees along with a new Jet truck. The Department's line cleaning goals are far above the
current crew's ability to reach minimum standards and ensure that homes or businesses are not
flooded with raw sewage. The Department expects that the savings in damage claims and other
cleanup will exceed the expected additional costs. Greater detail is included in the Sewer
Section write-up.
Metropolitan Water District costs are 13.7% of the Department's entire budget.
The Department purchases water from Metropolitan (Metro) each year, along with paying for
additional capital construction by Metro that has added to the Departments water resources in the
valley. The Department pays over $7 million annually for a capital assessment and is proposing
to purchase 50,000 acre-feet (AF) of water at a cost of$11.54 million. Metro's water rates are
increasing each year by 3% on a preapproved plan and will be $332 per AF during summer and
$216 in the winter.
Large Scale Projects are planned on Orange Street, Folsom and at the Waste Treatment
Plant.
The Sewer Fund CIP program leads with$10 million trunk line rehabilitation (Orange St.) and
$10 million for various and ongoing projects at the treatment plant. The Folsom Project in
Stormwater will require an $8 million bond issue to assist in the drainage of City Creek
watershed. Another $6 million is also budgeted for various repairs to the existing sewer
collection line system.
Personnel Cost Increases
The Department anticipates increases of about 10% for health care benefits. Cost of living
(COLA) and merits will raise expense another couple of percent. Total costs of all modifications
anticipated in personnel will be 3.7% including the increases in FTEs for the Sewer Fund. M
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Stormwater Riparian Corridor Projects
The Riparian Corridor Study is being used to begin funding of both Red Butte and Emigration
Creek's rehabilitation of the stream, its banks, natural vegetation and animal life. The various
projects total $960,000 for the new budget year.
Water Capital Improvements
Water CIP totals $18.8 million and includes a wide range of projects from pipe replacement,
demolition of old buildings to treatment plant upgrades, new pump stations, upkeep on reservoirs
and valve replacement. Highlights include $1 million for the 3r East 33rd South to 39th South
main line, Olympus Cove pump Station and valve replacement program. The Water Fund is also
budgeting $1.2 million for automotive equipment.
Historical & Current Capital System Information
The Salt Lake City water distribution system (WDS) is very large (1,226 miles of 12" or smaller
distribution lines plus 178 miles of large transmission mains for a total length of 1,404 miles of
pipe in 2010) and complicated (over fifty pressure zones). The service area covers the Salt Lake
City corporate boundaries as well as the east side of the Salt Lake valley all the way to the mouth
of Little Cottonwood Canyon. Figure 1 shows the age history of the water pipes. This is an
aging system with corrosion and other factors that affect integrity of the pipes. There is a
continual need to repair and replace bad pipe segments to maintain service and reduce
emergency break repair costs and impacts to the public. Figure 2 shows 93 miles of water main
were replaced in the last ten years.
Cumulative Waterline Footage .
1,e00 r WATER REPLACEMENT FOOTAGE
1,400 I ( ' 100,000 ____ a1,918
1,200 i ..�
1,000 I 80,000
800 ► ,,. 61,378 ([, 57,176
yb� ► j 60,000 P1Sb& 52,120
—400 ► 1
38,237,483 42,214 ." !41,08340,684
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200 �- - - 1 _ • A • S 840,000 0gacLL20000ii ' i
Cr-
te. FISCAL YEAR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
Figure 1. Pipeline Age for the Salt Lake City Figure 2. Water System Repair and Replacement
Water Distribution System Program
The sewer collection system (655 miles in 2010) is a very corrosive environment with hydrogen
sulfide gases, sediment, roots and other factors that affect the competency of the pipes. With this
environment there is a continual need to repair and replace bad pipe segments. More than 50%
of the sewer collection system is more than 85 years old (Figure 3). The goal for Sewer program
is to rehabilitate at least 1% of our old pipe system every year (Figure 4).
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Mies Age of Sewer lines &Total Miles
700 — SEWER LINE REPLACEMENT
600 i 70,000 .._64 fl4 9 ....a 500 , S _ . 60,000 i 56,717 ,91 51,954
400
30011."1111.7- I `po,000
200 1111MrAMMINIMIn11101111111 t40,000 I 32 77214,47i:35170
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100 ---3--r— =NMI /30 000
0 . , { i ' ® �20,000 9,083 18,830
8 n�i m �i �o n m C O 10,000 -11101•111 • • • • • •
rn a rn 03 o, 01 rn a rn 8 0
0 - - - -
tV Ifi ni N ai if) IC, .0 u- m ¢ in p N p p p p p pOs
O N 05 7 Le, .a h 05 01 O O 8 O O O O O
(l OI O. OI O. T Le, U O. T ?.
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Time Period(5-year increments) N N Fiscal Year N N N N N
Figure 3. Pipeline Age& miles for the Salt Lake Figure 4. Sewer System Restoration Program in linear
City Sewer Collection System feet
The last Drainage Master Plan was completed in 1993. The projects identified in the Master Plan
will take at least another 15 years to complete. In the last ten years almost 40 miles of storm
drain pipe has been installed (Figure 5). Some of the major projects are listed in Figure 6.
STORMWATER PIPE INSTALLATION
40,000 34
35,000 29,053
30,000 22,224 i
Z�000 •2,35'72,46422,308
411,000 . . 5,000
1000 . . . . 10,000iuIi .II
1g oo0 • • •0 • • • MHO • •
N I5 8 In .0 O a1 01 O
8 8 8 8 8 N 8 8 N
Fiscal Year
Figure 5. Drainage Pipe Installation History
Major Changes — Water Utility
1. Salary increases and merits $ 414,247
2. Metropolitan Water District 380,000
3. Increase in Operation &Maint. 225,150
4. Increase in Books and Supplies 3,000
5. Utility costs 98,70o
6. Decrease in Postage, Chemicals and Printing -63,050
7. Payment in Administrative Service Fees 10,000
8. Increase in Utah Lake expenses 35,000
9. Increase in Professional Services 82,899
io. Increase in computer maintenance contracts 41,700
11. Decrease in various other expenses - 7,664
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Total Increases $1,219,982
Major Changes — Sewer Utility
1. Salary increases and merits $ 418,961
2. Materials and Supplies 12,500
3. Increase in Administrative Services 30,000
4. Increase in Utility costs 1,000
5. Increase Consulting Services 92,000
6. Increase in Training 9,200
7. Increase in Payment in lieu of Taxes 24,000
8. Increase in Computer Maintenance 17,500
9. Other decreases - 3,750
Total Increases $ 601,411
Major Changes — Storm Water Utility
1. Salary increases and merits $ 105,567
2. Increase in Materials and Supplies 2,450
3. Increase in Street Sweeping 15,629
4. Increase in Training 500
5. Decrease in Consulting Fees - 274,629
6. Increase in Waste Disposal 4,700
7. Increase in Computer Maintenance 9,800
7. Other decreases - 2,850
Total Increases $ - 138,833
Mr. Lewis stated that all three funds had strong capital improvement programs planned for next
year. The water utility is proposing over $17 million with sewer at $32 million and storm at $12
million.
Mr. Jim Lewis asked for a motion to approve the 2011-2012 budgets. Committee member Dixie
Huefner made a motion to approve the 2011-2012 budgets and forward to the Mayor. Committee
member Jan Striefel seconded the motion, and all members present voted aye.
Capital Improvement Update—Chuck Call
WATER
BC/Tanner waterline replacement program—The Department is the improvement to increase the
fire flow in the Big Cottonwood/Tanner exchange area. The total project will be over $6 million.
• Annual on-going waterline replacement program 10-year history
• Reservoir/tank inspection history and program (3900 South tank failure & history)
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• Valve replacement program—We have a million dollars in the current budget for
replacement of bad system valves and another million dollars next fiscal year. These
cover all of our service area.
• PCE well issues —We are currently trying to deal with PCE issues at several wells-500
South, Sugarhouse and 19th East.
SEWER
• Master Plan was just completed
• H2S deterioration of major trunk lines
• Orange Street project ($10m)—Alignment map— Orange Street Sewer Rehabilitation
project will improve about 16,000 feet of 48-inch deteriorated sewer trunk line in the
Rosepark area from North Temple to the Pre-treatment pumping station.
• Annual CIPP Rehabilitation projects history
• WWTP projects—Digester roof—This is a project to replace the roofs on three digesters
which will allow for better methane gas recovery.
STORMWATER
• Folsom Avenue diversion line ($8m)—High flow potential —TRAX conflict—This
diversion project will give us the ability to handle the potential flows from City Creek
without flooding North Temple. Work that is related to this project is the replacement of
the drainage pipes under the North Temple viaduct which is being replaced as part of the
Airport TRAX project. Public Utilities paid $4 million to replace these pipes.
• Irrigation system improvements—Delivery system that covers the entire county
• Dam oversight—Regulatory agencies—Map showing where all our dams are located
• Riparian corridor projects ($959k)—Picture of good stream riparian area
CITY DEPARTMENT COORDINATION
• Yalecrest storm drain
• City Departments Coordination— 500/700 South waterline— Opportunity to replace --
$600k of waterline replacement and $600k of drainage work will be done as part of this
project.
• City Departments Coordination— 500 East storm drain—Opportunity to replace -- $600k
of drainage work will be done.
AIRPORT TRAX PROJECT
• Sewer pipe replacement and rehabilitation(betterment)—The Airport TRAX contractor is
doing $500k of sewerline improvements along the TRAX alignment. Public Utilities is
doing an additional $400k of CIPP rehabilitation along the alignment.
• Viaduct replacement & $4m storm drain replacement
• Replacement of 84" storm drain near river
• AC waterline under relocated curb & gutter—This is a$600k waterline replacement
project from Redwood Road to the Jordan River for which Public Utilities is paying
$200k as our share. This is good leverage of our funds.
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