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06/27/2013 - Minutes RECEIVED Salt Lake City SEP 2 0 2013 Public Utilities Advisory Committee Minutes CITY RECORDER June 27, 2013 The Public Utilities Advisory Committee meeting was held at 7:00 a.m. June 27, 2013 at 1530 South West Temple, Salt Lake City, Utah. Committee members present were Dwight Butler, Larry Myers, Dixie Huefner, Roger Player, Kent Moore and Christy Cushing. Committee member Allen Orr was absent. Salt Lake City Public Utilities employees present were Jeff Niermeyer, Tom Ward, Jim Lewis, Florence Reynolds, Chuck Call, Nick Kryger, Laura Briefer, Stephanie Duer, Jason Brown and Zee Smith. Also in attendance were Rusty Vetter, SLC Attorney's Office; Mike Wilson, MWDSLS; Mike Collins and Keith Larson, Bowen Collins & Associates; Stan Postma MWH; Karen Nichols, HDR; Jim Goodley, JUB; Mark Atencio, Stantec; and Bob Sperling. Approval of Minutes of April 25, 2013 Meeting Committee member Roger Player moved and Committee member Dwight Butler seconded the motion, to approve the minutes of the April 25, 2013 meeting as amended. All members present voted aye. Approval of Minutes of May 23, 2013 Tour Committee member Kent Moore moved and Committee member Roger Player seconded the motion, to approve the minutes of the May 23, 2013 tour. All members present voted aye. Financial Report—Jim Lewis Mr. Jim Lewis briefed the Committee on the financial report for the period ending May 31, 2013. Mr. Lewis stated that all three funds are currently doing very well and are in a good financial position at this time. He stated that the warm spring weather and warm southern wind is great if you are in the water business. He stated that water sales are currently even with last year which was a great year for water sales. He then presented a chart showing water consumption by month for the past six years. He stated that you can see the increase in water sales since last July and August and this May. He then presented the water conservation chart showing water usage for the past five months showing we are currently going over our conservation goal for the year. The next slide presented was a comparison of revenue for all three funds versus budget. Mr. Lewis stated that two of the funds, Street Lighting and Storm Water are currently below budget 1 -1 expectations while Water and Sewer are above last year. The Water Utility is currently $10 P. million higher than last year due to the drier than normal spring and last year's rate increase. The Sewer Utility is $670,000 higher and Storm Water $56,000 below last year. Street Lighting is behind our current budget estimates at this time by $150,000. Committee member Christy Cushing asked if the Department was considering a rate increase for the lighting utility. Mr. Lewis responded that no increase is anticipated for five years. 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 higher than last year by $5.4 million, which relates to additional water purchases over the previous year. The Sewer is higher than last year by $623,000 and the Storm Water is above last year by $718,000. Storm Water is higher due to the additional street sweeping costs which were included in the current year's budget. It is anticipated that all four funds will end the current budget year within budget. The Department has 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 $9.1 million in capital improvements with $3.2 million encumbered at the end of May. The Sewer Utility has expended $10.6 million with $5.7 million encumbered. The Storm Water Utility has expended $4.4 million with $3 million encumbered. Total for all three funds equals $24.1 million expended and $11.9 million encumbered as of the end of May 2013. These amounts are below budgeted levels, but the total expended and encumbered is over $36 million for the fiscal year, which is still a very strong capital improvement program for the year. Mr. Lewis then talked about the budget process, stating that the City Council discussed increasing our proposed rate increases higher than our proposal. They, however, decided to focus on the greater need for citywide projects and approved a proposed property tax increase for capital improvements for the General Fund. They approved our recommended 4% increase in water rates and 6% increase in sewer rates. They understood that water rates will need to increase higher next year to offset the proposed Metropolitan Water District of Salt Lake & Sandy water rate increases next year. Mr. Lewis also mentioned that the Department is currently reviewing three bids for a Water and Sewer Lateral Warranty Program. He stated that the Department hopes to make a decision by next month and will report at the next meeting. Water Shortage Contingency Plan— Stephanie Duer Mr. Jeff Niermeyer informed the Mayor's office that the Department of Public Utilities may be asking for a declaration of a Stage 1)Advisory under the Water Shortage Contingency Plan, based on our current water supplies and US Weather Service/Utah Climate Center projections of weather patterns. These patterns could indicate that we may be at the beginning of a 4 to 6 year drought cycle. N Most of the current Public Utilities Advisory Committee members were not on the board when b a the Contingency Plan was developed. So as a matter of information Stephanie Duer gave the board a brief summary of its development and key elements. • Adopted in 2003, after a public process involving the Public Utilities Advisory Committee, the Public Utilities Advisory Rate Sub-committee, and committee meetings. • The plan has three components: 1) an ordinance amending 17.16.092 and, establishing the plan; 2) the contingency plan itself which includes descriptions of triggers, stages, and responses, and 3) a response summary. • The contingency plan was unique at the time as it contains the dual triggers of both water supply and demand, so that community response to the call for water use reductions can drive the stage levels by reducing demand below the water supply. This allows for greater community dialogue and involvement. • The plan has five stages; 1-Advisory: increase public awareness to potential water shortage; 2-Mild: demand reductions are voluntary; however, some prohibitions may be announced; 3-Moderate: demand reductions are voluntary except for mandated restrictions in city facilities; 4-Severe: some recommended use reductions in Stage 3 may be mandated, with penalties and fines for violation. 5-Critical: all elements under this stage are mandated (e.g. water restrictions on landscaping) unless otherwise stated. • Violations and fines are established within ordinances and enforced civilly. A PUAC subcommittee established for this purpose acts as an appeals or hearing board. • Any collected fines that are collected to be directed at water conservation messaging or programs. • The plan is a component of the Water Conservation Master Plan, and is published on our conservation and main utility web pages. GIS Video —Nick Kryger Mr. Nick Kryger showed the Committee a 6 minute video that was made and produced by Environmental Systems Research Institute (ERSI). ERSI is the world's leading GIS software supplier. ERSI came to Salt Lake City Public Utilities and filmed some employees explaining how using the accessible mobile applications can help them do their jobs. ESRI wanted to showcase how Salt Lake City Public Utilities is using mobile applications to serve their customers and make this training video for use as a training device for other utility companies in other areas. The video also shows how using this technology can save time, and money and how the applications can be made available to employees working out in the field and are more efficient for the department. Recognition of Florence Reynolds—Jeff Niermeyer Mr. Jeff Niermeyer informed the Committee that Florence Reynolds, who is the Public Utilities Water Quality Administrator, is retiring after 25 years of service. Florence came to work at Public Utilities in 1987, as a Lab Director. In 1991 Florence became the Water Quality Administrator. Her responsibilities have included overseeing the watershed department and three culinary water treatment plants, storm water and cross-connections. She also has had the responsibility of ensuring water compliance with all state and federal standards for water quality. M a.) Florence has received numerous awards during her career with the department: a qe • EPA Environmental Achievement Award for establishing a Utah Drug Disposal Program • State of Utah Non-Point Task Force Award for leadership in protecting Salt Lake City's water quality. • Envision Utah Award for Watershed Land Acquisition Program. • Environmental Achievement, EPA Region V 111, for the development of a county-wide drinking water protection program. • 2012 George Warren Fuller Award, one of the highest awards given by the American Water Works Association, for"her outstanding character, technical expertise and personal commitment to ensuring sustainable, high quality water." • Florence is also past chair of the Intermountain Section of American Water Works Association. Florence will be missed and Mr. Niermeyer thanked her for her commitment to the department and all of her hard work. Dixie Huefner, on behalf of the entire Public Utilities Advisory Committee, also thanked Florence for her many years of outstanding service. Meeting Adjourned at 8:14 a.m. • cu to a