02/23/2012 - Minutes (3) •
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Public Utilities Advisory Commit3$TY RECORD
Minutes
February 23, 2012
The Public Utilities Advisory Committee meeting was held at 7:00 a.m. February 23, 2012 at
1530 South West Temple, Salt Lake City, Utah. Committee members present were Jan Striefel,
Dick Gaddis, Dwight Butler, Dixie Huefner, and Larry Myers. Allen On was absent. Salt Lake
City Public Utilities employees present were Jeff Niermeyer, Tom Ward, Jim Lewis, Florence
Reynolds, Chuck Call, Amy Green, Stephanie Duer and Zee Smith. Also in attendance were
Holly Hilton, SLC Mayor's Office; Lehua Weaver, SLC Council Office; Rusty Vetter, SLC
Attorney's Office; Jim Olson, HDR; Mike Wilson, MWDSLS: Keith Larson BC&A; Karen
Nichols HDR; and M. C. Haik.
Approve Minutes of January 26, 2012 Meeting
Committee member Dick Gaddis moved and committee member Jan Striefel, seconded the
motion to approve the minutes of the January 26, 2012, meeting as amended. All members
present voting aye.
Financial Report—Jim Lewis
Mr. Jim Lewis briefed the Committee on the financial report for the period ending January 31,
2011. Mr. Lewis stated that all three funds are currently doing very well and are in good financial
position at this time, even with the wetter summer. He stated that the Department had budgeted
for a poor spring, but did not count on the wetter summer. Currently water deliveries are below
last year by six percent and water revenues are below last year by $3.9 million as we continue to
have lower water sales during the winter period. He also presented the water conservation chart
showing lower water usage for the past two months.
The next slide presented was a comparison of revenue for all three funds versus budget. Mr.
Lewis stated that two of the funds, Sewer and Storm Water, are higher than last year with water
below last year due to weather. The Water Utility is currently $3.9 million below last year,
Sewer $392,000 higher, and Storm Water at $313,000 higher than last year.
The next slide presented was a comparison of operating costs, comparing last year with the
current budget amounts. Mr. Lewis stated that operating costs for the Water Utility are below last
year by $319,000, which relates to lower water purchases over the last year. The Sewer is above
last year by $704,000 and the Storm Water is above last year by $374,000. The Department has a;
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been doing a very good job of controlling expenditures over the last couple of years.
The last slide presented listed the capital improvements for each of the funds as compared to
budget. The Water Utility has expended $5.3 million in capital improvements with $9 million
encumbered at the end of January. The Sewer Utility has expended $9.6 million with $16 million
encumbered. The Storm Water Utility has expended $2.6 million with $6.8 million encumbered.
Total for all three funds equal $17.5 million and $31.8 million encumbered as of the end of
January 2012.
Budget Presentation—Jim Lewis
Mr. Jim Lewis briefed the Committee on the budget request for next year, 2012-2013. He stated
that the Finance Sub-committee met and reviewed the budget on February 9, 2012, and made
some suggested changes and requested an additional option on proposed water rates. He stated
that the major budget issues for next year were:
Summarization of the current budget proposal:
• Department Budget Totals for O&M Budget is $65,809,378. Capital budget
$53,499,916. The budgeted Debt servicing is $7,410,000—grand total of$126,719,294.
This is an 8.08% decrease, or $11.1 million below last year. Capital decreased $14.4
million with a $3.0 million increase in operations or 4.8%, and debt service increased
$300,000.
• Proposed Rate Increases are forecasted for both Water and Sewer over the next five
years. Currently the Stormwater Utility has adequate funding to cover their capital
needs. Forecasted rate increases are as follows:
Water Sewer Sto rmwate r
2012-13 4% 4% 0%
2013-14 5% 5% 0%
2014-15 5% 5% 0%
2015-16 5% 5% 0%
2016-17 5% 5% 0%
Average Water resident bill will increase$15 a year or$1.25 per month.
Average Sewer resident's bill would increase$5.76 a year or.48 cents a month.
Larger organizations will see an increase of 4%over previous years.
• Future Bond Issues will be needed to continue a strong capital improvement program.
Forecasted future bond issues are as follows:
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Water Sewer Stormwater
2012-13 0 5,000,000 0
2013-14 0 0 0
2014-15 8,000,000 0 0
2015-16 0 0 0
2016-17 10,000,000 11,200,000 0
• Personnel Changes are modest for the Department following the City's expected cost
increases for the next fiscal year.
a. Insurance increaseed 9% and retirement 19% and a 2% cola and a 1% salary
adjustment (that may or may not take place).
b. Personnel costs increase $1.6 million or 6.3%with the above changes.
c. Eliminated an Engineering Tech & Technician system supervisor and added an
Engineer IV and Pre-Treatment Inspection permit writer.
Metropolitan Water District The District is proposing to raise rates by 3% this year. It
is proposed that the summer rate increases from $332 to $342 per acre foot and winter
rates will increase from $120 to $124 per acre foot at an additional cost of $346,470
(annually). The District is planning on raising costs by 3% each year over the next five
year period.
• Requested Studies This budget proposes four special studies. The highlights of the
major studies follows:
a. Water Pipeline Condition Assessment needed for the Department to determine,
the condition of certain pipelines in the system that play a major role in delivering
water to areas we service. This is an effort to be proactive in determining the
condition of these critical pipelines before their failure. The assessment can be
done without interrupting water service or closing or excavating any streets using
recently developed technology. This budget proposes accessing the condition of 14
miles of critical pipe at a cost of$400,000.
b. Silver Lake Education Program the Town of Alta to assist the Department as a
partner in the protection of Watershed for the funding of two programs: 1) to
educate the public on the importance of protecting and preserving the Watershed
and 2) a shuttle bus program to limit the volume of vehicle traffic into popular
recreation areas. This budget recommends assistance in the amount of$40,000.
c. Pump Efficiency Study to analyze the efficiency of the different pump options that
can be used to distribute water to different service areas. When the department has
an option, it will be able to choose the alternative that will use the least amount of
electricity. The department believes this study can save electricity and energy
costs. This budget anticipates such a study will cost about $100,000.
d. Legal Fees of $120,000 will be required to cover litigation in the Water Utility M
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• Construction Projects This budget continues with crossover fiscal year work on
Orange Street Sewer Line, Digester Covers at the Sewer Plant and the Oil Drain EPA
Remediation Canal-a total of$7 million for these three projects. Upgrades continue
at the Sewer Reclamation Plant that has a suggested budget of almost $11 million and
Riparian Corridor Projects for Stormwater is proposed for $1.8 million. Replacing and
upgrading our systems piping infrastructure continues in all three funds at $24.9 million
and includes the Orange Street Sewer Line replacement.
• Stormwater Riparian Corridor Projects The Riparian Corridor Study is being used
to identify projects needed for Red Butte's, Parley's, and Emigration Creek's
rehabilitation of the stream, its banks, natural vegetation and animal habitat. The
various projects total $1,825,000 for the 2012-13 budget years.
The committee then reviewed water rate increase options. The sub-committee wanted to look at a
rate option which increased the service by $0.50 rather the proposed $0.33 to move to a more
stable revenue base. The following options were reviewed by the committee with the committee
recommending option C
Service Fee Proposal
Meter Size Existing Option A Option B Option C
3/4 & 1 Inch $8.29 $8.62 $9.28 $8.79
1 '/2 9.79 10.18 10.96 10.38
2 10.63 11.06 11.91 11.27
3 17.84 18.55 19.98 18.91
4 19.10 19.86 21.39 20.25
6 27.58 28.68 30.89 29.23
8 49.58 51.56 55.53 52.55
Rate Proposal
Descri tion Current Option A Option B Option C
Block 1 - $0.93 $0.97 $0.96 $0.97
1-10 ccf
Block 2 1.43 1.49 1.47 1.49
11-30 ccf
Block 3 1.98 2.06 2.02 2.06
31 -70 ccf
Block 4> 2.08 2.16 2.13 2.16
71 ccf
Mr. Lewis stated that all three funds had strong capital improvement programs planned for next
year. The water utility is proposing over $16.5 million, sewer at $25 million, and storm at $7
million..
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Committee member Jan Striefel made a motion to raise the service fee .50 cent per service and
raise each tier 4%. Committee member Dick Gaddis seconded the motion, with all members
present voting aye.
Stormwater Riparian Corridor Project Ranking—Amy Green
Amy Green updated the Committee on the proposed scope of work for the Riparian Corridor
Implementation Plan Project. This is a projection in which the department is working with Bio-
West. The scope of work includes establishing prioritization criteria and a ranking process for
projects identified in existing Riparian Corridor Studies and documents for ranking the Jordan
River projects. This information will be used to prepare integrated prioritized list, preparing an
implementation plan(schedule, funding etc.) establishing a process to accept, rank and prioritize
newly-proposed projects (projects not in existing RCS documents), also for designing and
implementing creek crossing signs.
The Department wanted to present the draft Riparian Corridor Implementation Plan to the Public
Utilities Advisory Committee to get feedback before the first public workshops begin on
February 28 and 29. This draft plan is proposed to be used to rank the corridor reaches from the
riparian studies and specific projects that are developed by city staff and the public, and
acquisition of property and culvert replacements.
Bio-west summarized the goals from the Department of Public Utilities Mission Statement, the
Riparian Corridor Ordinance, and the Riparian Corridor Statements and created 7 benefit
categories to rank the reaches from the Riparian Corridor studies. The categories are Water
Quality, Flood Damage Risk Reduction, Stream Bank Stability, Ecological (Habitat)
Scenic/Anesthetic, Recreation Access, and Education and Public Awareness. After Amy
explained how the projects would be ranked, the Advisory Committee stated that for the general
public it seems a little too complex and the committee would like to see something more
simplified, and also would like to have the presentation show some examples.
Amy Green then presented the various sign designs that have been proposed by Bio-west. There
were some single post, double post, and similar Salt Lake City way finding signs to distinguish
Creek Crossing throughout the City. The Advisory Committee suggested a single post sign and
was really interested in adding the Keep it Pure Logo for the new signs.. There was also some
interest in+using a different color for each creek and making the picture of the river look more
like a river rather than a road. It was also noted that there must be some checking into the road
standards to see what colors of signs are allowed on certain roadways..
Legislative Update - Rusty Vetter
Mr. Rusty Vetter gave an update to the Committee regarding the water issues that the Legislature
is focusing on.
HB—6'7 Storm Water Capture Amendments, Rep. Fred Cox
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The Substitute HB 67 was adopted on the 2nd of February, it was then held so that all could
examine and review HB67S01 before the committee considered it at its next meeting next week.
The State engineer has expressed concern about the bill. That concern may have been resolved.
HB— 127 Navajo Water Rights Negotiation Account, Rep. C. Watkins
This bill creates a restricted account for funds to be used for Utah's share of the negotiated
settlement for the Utah Navajo's share of the Colorado River. This bill contains a $2 million
dollar appropriation to start reserving the funding of the settlement so that when all the funds are
available.
HB -170 Water Rights Amendments, Rep. Kay Mciff- This is a"box car" Interest in protecting
the Strawberry water case.
HB— 174 Sales and Use Tax Allocation for Water Resources Construction Fund, Rep. Pat
Painter
This is the bill recommended b the Legislative Water Task Force. It appropriates 15% of the
otherwise unappropriated growth in the general fund for water development. It is a similar
approach taken to the bill last year that allocated 30% for the new growth in the General Fund.
HB—368 Abandonment or Forfeiture of Water Rights, Rep. B. Galvez
This is a"tune up" bill recommended by the Executive Water Task Force and the Water
Coalition. It clarifies the State Engineer's role in adjudications of water rights in the District
Court. Some adjudication are still pending after a long period of time and the code provided
some protection that would have been OK if adjudications had been finalized years ago. This bill
provides clarification that a proposed water right identified by the State Engineer is still subject
to the forfeiture provisions of UCA 73-1-4 from the date of the Engineer's proposal forward.
This bill is under revision.
HB—412 Voting Shares Assessment, Rep. Pat Painter
The drafting work group prepared a better approach to the way this bill was originally submitted
to the Water Coalition. Proposed by Jordan Valley regarding voting rights. This current"box
car" will have visible text that we like during the first part of the upcoming week.
HB—485 Change Application Amendments, Rep. Ryan Wilcox
This bill requires that a change application for a water right that is subject to a federal repayment
contract or a federal operation and maintenance contract, under a federal water project with a
local water users association or district, shall be signed by the local sponsor of the federal
project. The bill is supported by the Coalition and the Water Executive Task Force. The bill was
reported out favorably from the House Natural Resource Committee on Valentine's Day.
HB —489 Safe Drinking Water Disclosure Act. Rep Roger Barrus
This s the "box car" for Rep. Roger Barrus's bill that is designed to correct information about the
chemicals used to fluoridate public water supplies. So far the text of the bill is not available.
HCR-10 Provo Canal Title Transfer Concurrent Resolution, Rep. John Dougall
This Resolution recognizes the benefits of completing the Provo Reservoir Canal Enclosure
Project; expresses support for completion of the Provo Reservoir Canal Enclosure Project; and
urges the United States Bureau of Reclamation to work with the parties to expeditiously
complete the transfer of title.
SB—78 Water Conservancy District Amendments, Sen. John Valentine
On Valentine's Day, the test of Senator Valentine's box car was introduced. It repealed the
property taxing authority for Washington County Water Conservancy District, Jordan Valley
Water Conservancy District and the Roy Water Conservancy District. Sen. Valentine has
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dropped this bill and it won't be going forward.
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SB— 13.4 State Water Development Commission Amendments, Sen. Margaret Dayton
The bill increases the number of legislators on the Commission, removes the vote of the non
legislative members and removes the requirement that the legislators have to represent certain
river districts.
SB— 18'7 Forfeiture of water rights, Sen. Ralph Okerlund
This is still a"box car." This is the Big Ditch and Jensen Fixes legislation developed during the
interim by the Executive Water Task Force and by the Coalition. Even though text of the bill is
not available yet, the bill has already created a lot of tension for the water community. The two
Supreme Court cases of June created a need for the water community to address the difficult
issues of the change application process.
RES—SCR10 Resolution to support Interconnect, this is only a resolution and we are watching
it.
Meeting Adjourned at 8:50
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