06/26/2014 - Minutes n ..NNN. Minute s
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DEPARTMENT of PUBLIC UTILITIES
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Salt Lake City RECEIVED
Public Utilities Advisory Committee
Minutes SEP 1 8 2014
June 26, 2014
CITY RECORDER
The Public Utilities Advisory Committee meeting was held at 7:oo a.m. June 26, 2014 at 153o
South West Temple, Salt Lake City, Utah. Committee members present: Dwight Butler, Larry
Myers, Allen Orr, Roger Player, Kent Moore and Jani Iwamoto. Committee member Dixie
Huefner was absent. Salt Lake City Public Utilities employees present were Jeff Niermeyer,
Tom Ward, Jim Lewis, Jesse Stewart, Chuck Call, Jason Brown, Laura Briefer, Brad Stewart,
Carly Castle, Stephanie Duer, Karryn Greenleaf and Zee Smith. Also in attendance were Rusty
Vetter, SLC Attorney's Office; Mike Wilson, MWDSLS; Mike Collins and Keith Larson, Bowen
Collins & Associates; Brock Emerson, CH2MHILL; Mark Haik; Kirk Schnader, Nate Wade
Subaru; Ryan Humes, Commerce Res.
Approve Minutes of May 22, 2014 Meeting
Committee member Larry Myers moved and committee member Dwight Butler seconded the
motion to approve the minutes of the May 22, 2014 meeting as amended. 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, 2014.
Mr. Lewis stated that all four funds are in good financial condition. He stated that in spite of one
of the hottest summers on record for 2013 our water sales are below the previous year by 4.5%
but water sales have improved and are no longer 6.9%behind last year as reported in April. The
improvement is based on the hotter dryer spring period. Currently water sales are looking up as
we have had some hotter and dryer days with a warm forecast for next month. He stated that
during the spring period water sales can change drastically from one year to the next based on
weather conditions. He then presented a chart showing water consumption monthly for the past
six years. He stated that you can see the volatility in water sales based on weather conditions in
each of the May and June periods. Mr. Lewis is hoping for a very dry and hot spring season to
bring our water sales up to last year's.
The next slide presented was a comparison of revenue for all four funds versus budget. Mr.
Lewis stated that revenues for the Sewer Utility are higher than last year due to the 6% sewer
rate increase effective July 1st of this past year. The Water Utility revenues are below last year by
approximately $2.7 million due to the wetter than normal spring season. It is anticipated that
sales will improve over the next couple of weeks and bring the total water sales closer to last
year. The Stormwater Utility and Street Lighting are slightly below our expected levels for this
time of year. It is expected that Street Lighting will be under revenue estimates at the end of this
year by as much as $400,00o due to overestimating the new revenue potential of the new fund.
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 lower
May 22,2014
PUAC MEETING MINUTES
than last year by Si million, which relates to a decrease in water purchases from MWDSLS over
the previous year, offsetting the decrease in revenues. The Sewer costs are higher than last year
by $757,00o as legal and professional consulting fees are higher than last year. The Stormwater
costs are almost even with last year.
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 chart was revised at the request of the Committee to show the anticipated capital
projects to be compared to the total budget amount. This will help show projects that are multi-
year projects and the related budget amounts. The Water Utility has expended $11.5 million in
capital improvements with $5.6 million encumbered at the end of May. The Sewer Utility has
expended $6.9 million with $13.2 million encumbered. The Stormwater has expended $2.7
million with $3.7 million encumbered. The Street Lighting Utility is just starting to upgrade
some of the lights to energy efficiency lights in the amount of$706,000. Total for all four funds
equals $21.8 million expended and $22.5 million encumbered for a total of $44.3 million
encumbered or expended as of May 31, 2014.
Mr. Lewis informed the Committee that there have been about 6,000 sewer and water warranty
policies purchased.Also the second letter went out to County Customers last week.The only real
concern seems to be is that customers have questioned why does the City promote and
recommend this program.
Water Wise Landscape Web Site - Stephanie Duer
Stephanie Duer gave a presentation on a recently completed website SLC Garden/Wise, an
interactive and virtual water conservation landscaping tool. This website was designed in
conjunction with Garden Soft, a California-based software company. It was funded through
grants from the Bureau of Reclamation/Field Services Programs. The website took three years to
construct. Pictures of gardens included in the website were selected and photographed over a
period of two summers, and all pictures were taken within the Salt Lake City Public Utilities
service areas. The pictures include residential, commercial and public landscape pictures.
Visitors to the website can view singular gardens through a virtual tour. The virtual tour will also
show examples of particular garden "issues" such as park strips or side yards. Also you can
preview an extensive page of pictures regarding a plant database, visit the pages on weeds, and
learn about water-wise gardening techniques in the resource pages. The website also provides
tools to build a personalized plant database and shows some irrigation designs and scheduling
information. You can visit the website at www.slcgardenwise.com. A link to the site will also be
available at www.slcgov.com/waterconservation when the site is officially bunched, which will
be sometime in July 2o14.
Renewable Energy Project — Carly Castle
Carly Castle gave a presentation regarding the City's Renewable Energy Project. Carly stated that
energy is one of the biggest economic and environmental costs of delivering water to taps and
treating wastewater.
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In support of the City's Greenhouse gas reduction goals and renewable energy production goals
which are outlined in Sustainable Salt Lake — Plan 2015 —the Department has decided to pursue a.
SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES
1530 SOUTH WEST TEMPLE STREET VWVVV SLCGOV COM
SALT LAKE CITY UTAH 84115 2 of 5 TEL 801-483-6770 psi
May 22,2014
PUAC MEETING MINUTES
this Renewable Energy Study.
The goal is to conduct a comprehensive inventory of our renewable energy production potential,
and develop a plan to realize that potential. That way we'll be equipped to diversify our energy
portfolio and reduce our reliance on coal and fossil fuels.
To achieve this objective, the Department selected a consultant team in May of this year to
develop a utility-wide Renewable Energy Plan. The Plan will be a high-level framework that
identifies the Department's opportunities for renewable energy projects; evaluates their
technical, economic, and regulatory feasibility; and provides strategies and recommendations
for their implementation. The renewable energy technologies to be examined are solar power,
hydroelectric, cogeneration and biosolids, waste water heat recovery, and wind power. The
consultant team selected in May is comprised of Energy Strategies, Sunrise Engineering, and
Utah Clean Energy.
Energy Strategies is responsible for the overall project management and conducting the
Economic and Financial Decision Analysis. Sunrise Engineering leads the Technical and
Engineering Assessment. And Utah Clean Energy will be conducting the Regulatory, Legal, and
Policy Analysis.
The project is divided into three phases and will last approximately six months. Our consultant
team just presented the Phase I Technical Memorandum to the Department yesterday. So we are
closing Phase I and beginning Phase II.
Phase I consists of a Preliminary Scoping Evaluation, which is a high-level technical overview of
approximately 150 Department properties and facilities. This overview determines which sites
meet certain technical criteria indicating whether they merit further study as potential
renewable energy producers.
The criteria considered included power generation potential, site suitability and proximity to
loads to serve.
The team filtered the 150 sites down to approximately 40. At this point, about a dozen of those
4o sites are classified as having high renewable energy development potential and they will all
be studied further in Phase II.
In Phase II, we will be conducting more detailed assessments of site characteristics and
generation potential. Phase II will produce a detailed comparative analysis of renewable energy
projects, ranked on the basis of technical and regulatory feasibility; economic and financial
viability; and environmental, social and other performance metrics.
As described earlier, the final deliverable will be a formal Renewable Energy Plan for the
Department. The Plan will provide a list of recommended renewable energy projects, cost
projections, potential funding options and an implementation schedule and strategy.
Property Exchange — Brad Stewart
The owner of Nate Wade Subaru would like to make a land swap that affects Salt Lake City's C
west detention basin located at 1700 south and 500 west. The owner of the Subaru Companyas
Pao
owns the property to the west of the City's parcel. The two owners share a diagonal property a
SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES
1530 SOUTH WEST TEMPLE STREET WWWSLCGOVCOM
SALT LAKE CITY UTAH 94115 3 of 5 TEL 801-483-6770 2
May 22,2014
PUAC MEETING MINUTES
line. The proposal is to square off both properties by trading a o.3 acre triangular section in a
way that doesn't result in a net increase or loss to either property. The volume and hydraulics of
the detention basin will remain the same. There will need to be some storm pipe reconfiguration
and the developer will install a new public sewer line under one of the berms which will service
the property in the future. The Department of Public Utilities would like to make a proposal to
accept and allow the property swap.
PUBLIC HEARING for June 26, 2o14 @ 8:0o a.m. concerning property exchange at
1714 South 50o West.
The purpose of the public hearing is to accept public comments to consider a request for a
trade of private property located at 551 West 1700 South with City owned property
located at the above noted address. The requestor is the owner of property located
adjacent to the City owned property and is requesting that Salt Lake City Department of
Public Utilities consider a proposed exchange for an adjacent parcel. It is the intention
that the exchange of property will be of equal value, as the parcels will be of equivalent
size. Given the similarities between the properties, the parties do not believe that
appraisals of the parcels would be necessary in order to close the proposed transaction.
The City property is currently being used for a storm water detention basin. As part of
this transaction the detention basin will be reconfigured to maintain the volume and
functionality with all cost to be borne by the requestor. The purpose of the hearing is for
the Public Utilities Advisory Committee to hear public comments regarding the property
transaction.
Public Comments: Mr. Ryan Humes, Property Manager for the property located at 175o South
50o West, which is located adjacent to the proposed property exchange has concerns and is
wondering if this property exchange would have any impact on his business? He wanted to know
if his employee parking would be impacted or if the construction would still allow his business to
continue its day to day operations without any interruptions. Mr. Brad Stewart assured him that
this exchange would have no impact or interruptions to his business. Also Mr. Kirk Schneder
owner of the Nate Wade Subaru property reassured Mr. Humes that there would not be any
negative impact or interruptions to his business.The Department will proceed with the property
exchange.
Committee member Larry Myers made a motion to close the public hearing. Committee member
Allen Orr seconded the motion,with all member present voting aye.
Mountain Accord Update —Laura Briefer
Laura Briefer provided an update of the Mountain Accord process. She reported on the work of
each of the Mountain Accord system groups (Environment, Economy, Recreation, and
Transportation) this also included summarizing the draft vision, goals and metrics for each
system group. These updates can also be found at www.mountainaccord.com. Salt Lake City has
assigned appropriate staff to each system group to help in formulating goals. Public Utilities
have staff involved in the Environment system group, since that is the system in which water is
considered.
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Adjourn 8:27 a.m. a
SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES
1530 SOUTH WEST TEMPLE STREET WWW SLCGOV COM
SALT LAKE CITY,UTAH 84115 4 of 5 TEL 801-483-6770 �.i