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HomeMy WebLinkAbout01/28/2016 - Meeting Minutes 00. Minutes DEPARTMENT of PUBLIC UTILITIES -(Z-j ADMINISTRATION m '''-•,,�' I T �,.••'`, Salt Lake City ..."" Public Utilities Advisory Committee Minutes January 28, 2016 The Public Utilities Advisory Committee (PUAC) meeting was held at 7:3o a.m. on January 28, 2016 at 1530 South West Temple, Salt Lake City, UT 84115. Committee members present were Roger Player, Ted Boyer, Dixie Huefner, Sydney Fonnesbeck and Colleen Kuhn. Salt Lake City Public Utilities employees present were Tom Ward, Kurt Spjute, Laura Briefer, Chuck Call, Nathan Page, Stephanie Duer, Mike Reberg, Jesse Stewart, Jason Brown and Janine Calfo. Also in attendance were Rusty Vetter, SLC Attorney's Office; Lehua Weaver City Council Staff; Mike Wilson, MWDSLS; Trevor Lindley, Mike Chandler and Brandon Heidelberger, Brown and Caldwell; Keith Larson, Bowen and Collins Welcome — Tom Ward Tom took a moment to introduce Mike Reberg, the candidate appointed by Mayor Biskupski as Director of Public Utilities. As this was Mike's first attendance of the PUAC meeting, Tom requested that all persons present make a brief introduction of themselves to Mike. Tom Ward is serving as Interim Director until Mike Reberg is confirmed by the City Council. Introduction of Mike Reberg to PUAC Mike Reberg (previously the Director of Animal Services) has worked with Jackie Biskupski for over 20 years and has her trust to run Public Utilities toward her vision. He has worked with Laura Briefer for many years as well. Mike appreciates the strong leadership that exists at Public Utilities. Mike has an environmental ethic that he is known for. The Mayor wanted to send a strong message as to who she wanted in the department from a philosophical point of view. Mike has a history of environmentalism and stewardship,working specifically on watershed issues. Mike has over 25 years of government management experience at various different levels. He was the equivalent to director in the Salt Lake Public Works Department for most of the 199os. It was a much bigger department than it is today that included the Fire Department, Flood Control, Fleet and Sanitation, Land Fill, Operations and Planning and Zoning. Mike worked with Congressman Matheson for over ii years and created a model of how Public Lands bills in Utah get passed into law. Mayor Biskupski is trying to create an environment where employees will be able to thrive. Mike Reberg feels that his expertise in management and leadership. He creates an environment where innovation occurs. January 28,2016 PUAC MEETING MINUTES Sydney Fonnesbeck raised an issue and is worried about Mike's lack of an engineering degree and lack of years of experience in water related issues. Mike responded that the way that you manage and lead may counter the engineering degree. LeRoy did not have an engineering degree. Jeff Niermeyer leaves a remarkable legacy. There is an excellent team in place that will be given the tolls and environment required to succeed. Change and a new perspective are good. Approve Minutes of December 10, 2015 Meeting Committee member Ted Boyer moved and Committee member Roger Player seconded the motion to approve the minutes of the December 10, 2015, PUAC meeting as submitted. All members present voted aye. Financial Report for Period Ending December 31, 2015 - Kurt Spjute Kurt reported that current sales charges are over $41.1 and remains 7% above last year at this time. Aging receivables that are 12o days are $36,209 — which is 1% ($3.5 million total Accounts Receivable). Water delivered is 864 acre feet less than last 3 year average. Water Sales were $1.4 million less than anticipated for the budget or 95%• Water delivered through December compared with the average last 3 years (savings in water conservation of 281 million gallons). Percentages have gone down because our receivables have gone up. Operations show that all funds are below 50% of budget. Water is leading all funds at 49.4 expended for the last 6 months. Capital and debt services show: • Water is 34% of$31.5 million Budget • Sewer is 18% of$26.6 million Budget • Storm is 16% of$10.7 million Budget • Lighting is 33% of$1.2 million Budget Cash in all funds (less current obligations) is $94 million. Water is $53.4 million, Sewer $30.2 million, Storm $8.4 million and Lighting $2 million. Daily Water Use in our service area is currently down 864 acre feet as of December 15, 2015, or 281.5 million gallons since July 1, 2015 on 3 year average. Some of the issues for this year will be Incremental Budgeting, Zero-Based Budgeting (evaluation of each particular item related to budgeting), Priority-Based Budgeting, Participatory Budgeting and Resource-Restricted Budgeting. Budget Issues for next year: CV Ion In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 2 of 8 TEL 801-483-6770 January 28,2016 PUAC MEETING MINUTES Rates: Water may not require a rate increase 1. Should water rely on existing cash balances and review again next year based on how aggressive our actual construction fits the budget? 2. Past year's cash reserve ratio dropped no lower than 62% in the last io years. Goal has been to be higher than io% a. Goal is based on percentage of total yearly expenses. 3. Sewer Rates/Bond Issues — 15% or higher? a. Bonding - $54 million to $75 million? b. Reclamation plant nutrient program —yes, more bonding in 2018 c. Influent Screen Building — replace old building/trickling filters at $43 million d. Special Master Plan upgrades - $15 million i. Orange Street Diversion $15 million ii. Gladiola Street — 5th South 1300 South $6 million e. Northwest Quadrant (Prison) Small Capacity Treatment Plant 4. Street Lighting — Rate may increase $50% - SAAs into enterprise. a. Consultant hired to determine a new fee, rate tier structure to accommodate existing and future business and residential choices. Personnel: Possibility of six new positions — Cost $505,88o 1. Replace Google Fiber Temps with 3 full-time positions. Inspection work at Reclamation Plant. 2. Re-class existing unfilled positions at the Reclamation Plant — 4 higher technicians 3. Street Lighting — new engineer Tech, but use existing Customer Service position 4. Add Development Review — Engineer Tech and drainage maintenance worker III and Water Quality Tech. Administration Building/Space/Logistics 1. Remodel Contracts office, remove lobby space to bring down 2 plan reviewers from downtown. 2. Replace existing HVAC system, rework all restrooms, modify several upper level office spaces, remove file storage area to create more office space, fix water fountains, re-carpet, paint, improve employee lunch room and a. Move people offsite or do remodel only on weekends b. Restrooms restricted or unusable c. Employee complaints of paint fumes, glue or other smells 3. Cosmetic or Permanent solution? a. Expansion or replace for LeRoy Hooton Bldg and Regan Bldg? i. No projected costs — or b. Create a top floor or look for entirely new complex, replace Regan Bldg with new 4 story Admin Bldg? C' c. Lease instead of renovate or buy Io In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 3 of 8 TEL 801-483-6770 January 28,2016 PUAC MEETING MINUTES d. Delay decision to await issues in future years? Do the cosmetic work now as it looks to be needed. Capital Replacement/ New/ System Maintenance 1. Engineering Asset Management System a. Budgets submitted to design, build and replace only segments of the system that are needed now based on condition and criticality. b. Develop a minimum level of capital required to maintain a quality system in all enterprise funds. c. Engineering strategy to do work on items that have the greatest likelihood of failure or system impact. d. Sensus Flexnet Customer portal information i. Purchase free for the customer or customer buys the new portal Three members of the PUAC will be chosen to assist in reviewing or analyzing the Department Budget. They will meet with Utility Administrators to help adopt, modify and present the desired budget packet to the full PUAC Board. All PUAC members will receive the reviewed packet prior to a regularly scheduled meeting. The Chairperson will sign and date, along with the Department Director, as the approved Department Budget, once the PUAC has voted to accept. The timeframe for the subcommittee and budget will be to meet within the next few weeks. Some problems may be with developing a narrative for everyone. We should be able to put all of the financial information on paper by that time. Election of New Chair and Vice Chair for PUAC The Committee nominated Kent Moore as Chair and Ted Boyer as Vice Chair. The nominations were unanimously accepted. Asset Management — Jason Brown Tom introduced Jason Brown to discuss the department function to identify what our needs are and how they are fulfilled. The Asset Management Program is giving a good, keen understanding of where our assets. Review of the Program dictates our Maintenance Work Order program and inspection schedule that relates to staffing. The Capital Asset Program looks at where the money is being spent. There are three main processes that drive the Capital Improvement Program. We have recently spent an effort to put a form to these functions that we have been doing for years. Asset Management is the ongoing process of evaluating all of the Salt Lake City Department of Public Utilities assets. This program allows the understanding of what assets need maintenance or replacement. a� Ion In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 4 of 8 TEL 801-483-6770 January 28,2016 PUAC MEETING MINUTES The Capital Asset Program was developed to track potential projects and to increase the level of detail that we consider for every potential project. This program helps to better understand the needs and the level of funding that will be required to meet those needs. Project Delivery is the process of implementing design and constructing budgeted projects. Asset Management is the ongoing process of identifying, evaluating and advocating the current and future needs of all Salt Lake City Department of Public Utilities assets. This process ensures that each asset is properly maintained, repaired, upgraded or replaced when needed. The process detailed in this presentation is continuously followed for every asset. There is a unique process for e each individual program that Public Utilities manages (i.e. Drinking Water Treatment Plants, sewer collection lines, watershed, etc.) to perform the required asset management. The first step of Asset Management is to inventory all assets. There are several ways to track information about the assets, but the central database for this information is the GIS system. Within GIS, all of our assets included as GIS objects. Users can view the assets by their location and see key information about each asset. Along with the inventory of assets, each asset needs to be inspected. Asset inspections will drive how each asset is rated and prioritize needs. Inspection protocol varies throughout the multiple programs. Each program also has unique schedules and time constraints for the inspection requirements based on the types of assets in the program. Many programs have state and/or federally mandated inspection schedules. Once an asset has been appropriately inspected, Criticality and Condition ratings can be assigned to the asset. Examples of Asset Performance Criteria are: • Regulatory • Customer Satisfaction • Water Quality • Safety • Structural • Capacity • Sustainability • Seismic • Carbon Free by 2032 • Other The Asset Management Program is centrally focused on two main factors for rating assets — Criticality and Condition. These two factors are considered simultaneously to determine an asset's importance and needs in order to prioritize efforts. Criticality and Condition must be assigned for every asset that is analyzed during Asset Management. Criticality is a consideration of the importance of an asset. Criticality is also described as the Consequence of Failure. When assigning Criticality, it is important to think of the impacts that would result from failure. Criticality is generally measured as shown in the L.n table. ao In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 5 of 8 TEL 801-483-6770 January 28,2016 PUAC MEETING MINUTES Criticality Criticality Rating Description 1 Lowor minimal impact if the asset is lost or fails 2 Moderate or minimalimpactifassetislostorfails 3 Service restored with repair or system redundancy in 8 to 2-1 hours after failure ofthe asset 4 Somecriticalcustomersareaffectedbyfailureoftheasset 5 Significantnumberofcustomersorcriticalfacilitiesareaffectedbyfailureof the asset ""Consequence I Failure"" Currently, Criticality is listed in GIS for a large majority of pipelines. This Criticality assignment in GIS was determined based on the size of the pipe alone. This Criticality should only be used as a starting point. Criticality must be reevaluated for each asset and reassigned after further investigation. Condition Condition Rating Description 1 Asset does not exist. ""Probability of Failure "" 2 Asset is in very good or new condition. 3 Asset is in good shape withoutsignificantdefects. 4 Asset hassomedefectsorisdeteriorating,anditshouldbemonitoredagain within five years. 5 Assethasdefectsthatmaycausefailurewithinfiveyearsandrepairshould be included in the five year CIP Budget. a� Ion In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 6 of 8 TEL 801-483-6770 January 28,2016 PUAC MEETING MINUTES Condition measures the ability of the asset to perform its intended function. Condition is a function of several factors (hydraulic capacity, structural integrity, operation and maintenance, etc.) depending on the specific asset. The inspection of the asset will provide the necessary information to assign a Condition rating. Condition is generally measured as shown above. As with Criticality, the Condition rating for each asset will be obtained differently within each program. Jason showed a slide of a 2007 inspection graphic of inspection of trunk lines. He mentioned a sink hole that developed in the vicinity of igoo W and Orange Street. Sydney Fonnesbeck asked whether this area would be impacted by the new prison. The answer is, yes. It is part of the reason that the budget for Sewer is so large. Tom asked Jason to talk about the Curb and Gutter Survey and how the results are communicated to the Committee and Council. Jason said that report was able to define certain failure modes and why gutters weren't draining. There is a range of costs would be associated with the level of service that would need to be provided. Once an asset has been inspected and assigned a Criticality and Condition, a plan must be established for that asset based on the information gathered. There are three options for what direction to gear the asset's plan. Continued Asset Management: Asset condition does not warrant repairs or improvements. Schedule next inspection and assessment. Maintenance Work Order: Asset condition requires maintenance. Submit a Maintenance Work Order; Schedule next inspection when work order is completed. Capital Improvement Project: Asset condition requires replacement or significant improvement; CAP; Project delivery; Schedule next inspection when project is completed. Sydney indicated that she would be interested in seeing anything that is slated for the legislature that is pertinent to water issues. Sydney asked how much of the current sewer system would be considered "first generation." About 70% of the sewer system is older than 70 years. There are a lot of lines that really need to be replaced. Budget Sub-Committee There will be a sub-committee formed to review budget issues for the Department. Janine Calfo will contact the members that are interested in serving on this committee: Colleen Kuhn, Ted Boyer, Roger Player and Kent Moore to confirm the date of the L meeting. In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 7 of 8 TEL 801-483-6770 January 28,2016 PUAC MEETING MINUTES Flint Michigan — Jesse Stewart Tom Ward asked Jesse Stewart to give a brief update on the water issues that are currently happening in Flint, Michigan. Michigan State switched water sources in 2014 from local Detroit, MI to the Flint River. This decision may have been made based on financial reasons. The municipality has a State appointed Water Manager. When the water source switched over, proper protocols were not followed. When Salt Lake City considers a change in water sources, the City will look at the source from both chemistry and corrosive potential standpoints to see how it will interact with other water sources. Salt Lake also monitors all of our sources for lead and copper and a variety of other constituents. The distribution system is also carefully reviewed every three years. Types of in-home plumbing are also considered (homes that were built before 1986 before mandates for lead-free components were in place). After Flint, MI made their switch, they immediately started getting"Red Water" complaints due to pipe corrosion that was persistent and ongoing. These reports were not addressed as well as they could have been. Flint could have added a scaling agent to the water to mitigate the corrosion. Salt Lake City has 24 hour on-line monitoring and is currently replacing lead fire hydrants. Homes that are located in The Avenues area have the most lead content in their pipes. Final Comment The next meeting will be Thursday, March 26, 2o16 at 7:3o a.m. Meeting Adjourned at 9:15 a.m. Minutes approved February 26, 2o16 00 a) Ion In. SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 8 of 8 TEL 801-483-6770