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08/22/2013 - Minutes (3) /rl /3-4 Salt Lake City RECEIVED Public Utilities Advisory Committee OCT 2 1 2013 Minutes August 22, 2013 CITY RECORDER The Public Utilities Advisory Committee meeting was held at 7:00 a.m. August 22, 2013 at 1530 South West Temple, Salt Lake City, Utah. Committee members present were Dwight Butler, Larry Myers, Dixie Huefner, Roger Player, Kent Moore, Allen Orr and Christy Cushing. Salt Lake City Public Utilities employees present were Jeff Niermeyer, Tom Ward, Jim Lewis, Chuck Call, Dale Christensen, Giles Demke, Ryan Bagshaw, Mark Stanley, Dave Koltz, Jason Brown and Zee Smith. Also in attendance were Rusty Vetter, SLC Attorney's Office; Claudia Wheeler, MWDSLS; Mike Collins and Keith Larson, David Hatch, Brandon Heibelberger, Bowen Collins & Associates; James Dixon& Kevin Hall, MWH; Jim Goodley, JUB; Alan Dononbske, Stantec; and Jim Olson, Water Works Eng. Approval of Minutes of June 27, 2013 Meeting Committee member Larry Myers moved and Committee member Christy Cushing seconded the motion, to approve the minutes of the June 27, 2013 meeting as amended. Committee member Allen On abstained from voting. All other members present voted aye. Financial Report—Jim Lewis Mr. Jim Lewis briefed the Committee on the financial report for the period ending June 30, 2013. Mr. Lewis stated that all three funds ended the fiscal year in good financial condition. He stated that in spite of the warm spring weather water sales are just slightly below 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 and June. He then presented the water conservation chart showing water usage for the past five months, which indicates that we are currently not meeting our conservation goal for the year. He then presented the water usage for last year and compared it to the usage for this year showing the monthly differences between the two years. The next slide presented was a comparison of revenue for all three funds versus budget. Mr. Lewis stated that revenues from two of the funds, Street Lighting and Sewer, ended the year below budget; however, Water and Stormwater revenues ended the year higher than the previous year. The Water Utility revenues are currently $6.1 million higher than last year due to the drier 1-1 than normal spring and last year's rate increase. The Sewer Utility revenues are $764,619 higher, czs while Stormwater revenues are $82,913 below last year. Street Lighting revenues ended behind our current budget estimates by $197,878. 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 $5.7 million, which relates to additional water purchases over the previous year. The Sewer costs are higher than last year by $748,332 and the Stormwater costs, are above last year by $808,000. Storm Water is higher due to the additional street sweeping costs, which were included in the current year's budget. The Stormwater Utility ended the year over budget in operations by $55,954 due to the accrual of unanticipated related party transactions. Mr. Lewis stated that, overall 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 $10.8 million in capital improvements with $3.5 million encumbered at the end of June. The Sewer Utility has expended $11.4 million with $5.2 million encumbered. The Stormwater Utility has expended $4.5 million with $3.5 million encumbered. Total for all three funds equals $26.7 million expended and $12.2 million encumbered as of the end of June 2013. These amounts are below budgeted levels, but the total expended and encumbered is over $38.9 million for the fiscal year, which is still a very strong capital improvement program for the year. Mr. Lewis explained that the large amount still not expended or encumbered of the total budget amount is set aside for large multi year projects, which require the full budgeted amount at contract approval. Larry Myers asked if we considered categorizing the budget for multiyear projects separate from the annual projects. Jim said he would look into separating the funding out for next year. Dixie Huefner asked about the status of the Water and Sewer Lateral Warranty Program, noting that last month we stated that we were reviewing the RFP and would make a report at our next meeting. Mr. Niermeyer stated that we have a pending protest on the RFP by one of the vendors and are limited to what we can disclose at this time. Local Limit Changes—Dave Koltz Dave Koltz, Pretreatment Program Manager gave a presentation to the Committee regarding Local Limits to pollutants. Purpose Local Limits are established to protect the water Reclamation Plant from industrial discharges that may cause pass-through or, interference, or diminish the use of wastewater residuals (e.g., biosolids). Public Utilities is conducting a 2-year re-evaluation to be sent to the state. Process • Review the Water Reclamation Plant (Plant Characteristics) • Determine the industrial and plant flows • Establish the pollutants of concern (POCs) N au • Collect/review Plant monitoring data • Calculate Maximum Allowable Headwork Loadings (MAHLs) and Allowable Industrial Loadings (AILs) • Designate and implement Local Limits Findings • Metals (i.e, arsenic, copper, lead, molybdenum, etc.), biochemical oxygen demand (BOD), and total suspended solids (TSS) are a few of the Plant's POCs • Based on sampling and investigation, we will be able to allocate our available POC capacity as uniform concentration limits (i.e. milligrams per liter (mg/1) • Field sampling recently identified a non-industrial source of molybdenum. Approximately 3.5 lbs/day (over 40% of the Plant's allowable load for molybdenum) is infiltrating a portion of the City's sewer collection system that crosses through an active EPA Superfund site. Benefits of uniform concentration limits: • No financial impact to existing permitted industries • Easy to calculate and apply to Permits • No risk of inequitable distribution associated with mass allocation limits (i.e., pounds/day calculated for each permit) Path Forward Local Limits • Resubmit the latest revised Local Limits to DEQ for review/approval • Present Local Limits to City Council for their approvals • DEQ gives public notice of Local Limits • Official adoption of Local Limits (target completion—December 2013 Molybdenum Infiltration Source • Continue working with Collections and Engineering to fully isolate the infiltration locations • Conduct post-repair field sampling to verify project completion Municipal Wastewater Planning Program —Tom Ward Mr. Tom Ward gave a presentation to the Committee regarding The 2012 annual report on our Municipal Wastewater Planning Program (MWPP). This is an annual report submitted to the State Division of Water Quality which reports various measures that help evaluate the condition of wastewater collection systems, wastewater treatment facilities and utility finances. This report helps the State identify and solve potential problems before a problem becomes serious or costly. Completing the report also puts the department in a better position as a utility on the State Project List for possible allocations of funding regarding grants and loan programs. Results Utah DEQ .,. _ w, Municipal Wastewater Planning - High performance system Program Annual Report -Meeting current O&M and Capital for 2012 needs. - Future rate increases required to meet P ta,,UUlibes Advisory Commune August 22 2013 future capital needs in next 5-20 years for ongoing repair& rehab. by Jim Le:.is,Finance Administrator —Significant upgrades($80-360M) Dale Christensen,Reclamation Facility Manager Ryan Broadhead.Wastevrater Collections Manager needed to meet potential new nutrient Trorr Word,Deputy Deemer water quality regulations Municipal Wastewater Planning P Pro Annual Re ort Financial Evaluation Section Has a dedicated sinking fund been established for repair 8 replacement costs Purpose-assists Utah DEQ to (Yes-0puints) p 1 Not a true sinking fund,but the cash flow used to fund capital projects "--.identify and solve potential is virtually the same function as a sinking fund • (Ythe repair0 poi ts)placement sinking fund adequate to meet anticipated needs problems before they become serious and costly." - 1. This is true for as far as is protected,coupled with asked for rate increases and bonding built into the planning process • Are projected funding sources sufficient to cover all projected capital improvement costs t.for the next ten years(No-25 points) (not fully evaluated) 2 for the next f%enfyyears(No-225 points) (Unpredictable) • Has dedicated sinking fund been established to provide fur future capital improvements? (No•-25 points) TOTAL 75 points SEWER UTILITY- AVAILABILITY OF FUNDS FOR CIP IMPROVFMFNTS Requested PUAC Action- Resolution •Thousands affirming your review $25,000 $20,000 -_- Department is"taking all appropriate Hk(k.11'fS actions to maintain effluent $ls,000 requirements contained in the UPDES $10,000 UItiBI KSk:]IE\1ti Permit" $5,000 Prind,nv actable for(I $0 4 5 6 7 8 910111213141516 a) bA Nutrient Removal Projects Plant Performance — 19 Year NACWA Platinum rival Effluent%irnthI AN l) I,(0 Additional Chlorine Contact Basin $ s 203 mo 1. n u unn of Flow Distribution Structure 51000o 'I IIQD 1lilli•ran1.I'er liter) Anaerobic Basin with Mixer 18,350 CA10 • I II ! I :'g, Anoxic Basin with Mixers 13673800 New Aeration Basin 51,273,806 New Blower Capacity and Building 23sa3coo Liquor Recirculation System80 1p3e aon '1 Mixed 1 ... . .:. zs Ytl mil Ua r T S Pumps 7 0060 0 i nglyaI9®11 - Two Secondary Clarifier&5 Primary Clarifier s,000•'-oa 20 il f 1 ji t 1 I :41: 1 Metal—Slat Feed and Storage Fax I ty I417c0o Is ,e, , � ,l.�r,,,w _'.tI r`: ` ', ,e . Tncxling Filter Demo 3,139,200 ix i I ' I f l 1.• t ' !` f 1),` Belt Filter Press and Polymer System 0450 300 a . , - 1; 1 Primary Effluent Pump Station 20,437,500 $ s $a fi a 5 5 s s iTotal SIS1,1"'300 $ f i xL S S e Mechanical Plant Section Plant Performance 19 Year NACWA Platinum Hurl LIlluont • "In what year were process units 1lottthts.berage Dail.1.oncenlratiun of 1,0. constructed or received major upgrade" .s (\Iltll(�fa ill,I'"Later) (age= points, max points 20) _ i • r • Do you have an updated operations and i _ sa i i maintenance manual(No—20 points) i. """ t2S idt • , . '11,, ,,t, �1.. I' „I l r �,l l 1 �' "I I r.!: IIII£g1-Cti,“II I4Ii`.€I-1I111'l1 a 11,11i Water Reclamation Collection System Review Permit Parameters F es - N-.i 6w w C... [.' It . 1 -i s ® ®® f F jr `6 �� 3o ®® t { t S� �Te IA _�" k � x� 1 ®® N 'r gy Ir, :s P. " ::,.. '✓*' I.V. i} � F 'K, ' _ ._rd ®0®0 —,_�., o —, `;.per. L CU brO tS Collection System "bypassess„ Asset Management Program � - Sewer Cleaninl'r; ran1 11 recordable"bypasses"from City system 4 due to Root Growth,4 due to Grease, Sewer Lines Cleaned 1 Pipe Failure,2 Contractor caused • Questionnaire response"No"—25 points _SanitarySewerOverflow's 901 ------ -- ---"- - - - n_Tn 1, SSO Benchmark Other Maintenance Programs SLCPU vs.nat onal Benchmark Survey • Automated Work Orders for"Hot Spot" Sanitary Sewer Overflows I.. Areas • Chemical Treatment of Roots • Large Diameter Pipe Cleaning I 1 I Ti Asset Management Program Sewer Inspection& Monitorin Sewer Lines Inspected-CCTV c� ° 1r r1 I1Q Cd Committee member Allen On made a motion to approve the PUAC resolution in support of the self-assessment report on the Municipal Wastewater Planning Program for 2012. Committee member Roger Player seconded the motion with all members present voting aye. Dixie asked if, in the future, PUAC could be given the MWPP self-assessment prior to the meeting. Committee member Dixie Huefner asked whether Public Utilities had needed to issue a Stage 1 Advisory under the Water Shortage Contingency Plan, as anticipated at last month's meeting. Mr. Niermeyer responded that the Advisory had proved unnecessary. Dixie also asked about the desirability of a proactive educational campaign to the public on Salt Lake City's future water needs. Mr. Niemeyer explained that when he looks at water conservation needs he is looking two years ahead. He stated that we already preparing for allocations of water for next year. He indicated that Salt Lake City's efforts are proactive and anticipate future supply so that we can manage the demand, to get us through times when we don't get as much water. Resignation of Committee Member Christy Cushing Mr. Niermeyer announced the resignation of Committee member Christy Cushing, who is moving out of state. Christy was thanked for her service to PUAC and wished well in her move. Meeting Adjourned at 8:33 a.m. N a) bn ct