The URL can be used to link to this page

Home My WebLink About10/27/2022 - Meeting Minutes 00. Minutes DEPARTMENT of PUBLIC UTILITIES -(Z-j ADMINISTRATION ,'��''•� I T ''�;,`, October 27, 2022 The Public Utilities Advisory Committee meeting was held at 8 am on October 27, 2022, at 1530 South West Temple, Salt Lake City, UT 84115. Virtual participation was also accommodated in this meeting. Committee members present were Roger Player, Dani Cepernich, Alex Lovell, Kathryn Floor, Ted Boyer, Lynn Hemingway and Tom Godfrey. Salt Lake City Public Utilities employees present were Laura Briefer, Jesse Stewart,Marian Rice, Jason Brown, Stephanie Duer, Chloe Morroni,Tamara Prue,Jeff Grimsdell,Lisa Tarufelli,Tammy Wambeam,Dustin White and Debby Newton. Also in attendance was Mark Kittrell, Salt Lake City Attorney's Office; Mike DeVries, Metropolitan Water District of Salt Lake and Sandy; Tim Cosgrove, Salt Lake City Mayor's Office; Nathan Zaugg, Carollo Eng; Will Petersen, AECOM; and Sam Owen, Salt Lake City Council Office; and members of the public Welcome and Introductions Committee Chair Roger Player and Public Utilities Director Laura Briefer welcomed the attendees. Approve Minutes of September 22, 2022 Meeting A motion was made and seconded to approve minutes of the September 22, 2022 PUAC meeting. All members voted to approve as amended. Monthly Financial Report Lisa Tarufelli, Finance Administrator Public Utilities Finance Administrator Lisa Tarufelli gave a presentation of the financial report as of September 30, 2022. A copy of that presentation is available. Financial reports were presented for August and September 2022. August 2022 Water Fund: Revenues were approximately 24 percent of budget but down by nearly $1.9 million from the same time last year. Operating expenses were trending slightly less than budget but up slightly year over year. Capital expenditures, including encumbrances were at 85 percent of budget. The increase in available cash from August 2021 is attributed to the 2022 Revenue bond issuance at the end of FY 2022. Without these funds, the cash reflects lower revenues and the utilization of 2020 bond proceeds for capital projects. Sewer Fund: Revenues are slightly less than anticipated at 16 percent of budget but up by $1.7 million form August 2021. Operating expenses are less than anticipated at 13.32 percent and capital expenditures and encumbrances are at 93 percent of budget. Available cash is up year over year due to the issuance of the 2022 Revenue Bonds. October 27,2022 PUAC MEETING MINUTES Stormwater Fund: Revenues are slightly ahead of budget and expenses are trending on budget. The capital expenditures and encumbrances are about 101 percent of budget and are up from 2022. This percentage will adjust when files are posted for open contracts. Street lighting Fund: Revenues and expenses are less than anticipated. Capital expenditures are still in the planning stages. Overall: Operating revenues are up slightly from the same time last year and operating expenses are trending on budget. The increase noted in available cash is attributed to the bond proceeds from the 2022 series. Total accounts receivable is down almost $1M from the same time last year and delinquent billings over 90 days are 0.54 percent. September 2022 Water Fund: Revenues are ahead of budget at the end of September. Water sales indicated a slight increase during the month and operating expenses were 23.75 percent of budget. These numbers will need to be monitored throughout the year. Capital expenditures and encumbrances are at 86 percent of budget. The expenditure budgets will be adjusted for open contracts so this percentage will shift. Sewer Fund: Revenues are close to expected at 26.88 percent. Sewer user charges are lagging expected by approximately $1.9 million. Operating expenses are less than expected at approximately 21 percent of budget. The capital expenditures and encumbrances are at 116.41 percent of budget. The expenditure budgets will be adjusted for open contracts so this percentage will shift. Available cash is up from the same time a year ago due to the issuance of series 2022 bonds in June. The 2020 bonds were fully drawn down in July. Stormwater Fund: Revenues are starting the year as anticipated and operating expenses are trending less than budget. Capital expenditures and encumbrances are at 98 percent of budget. Available cash increase is attributed to the increase in operating revenues and lower spending levels in FY 2022. Street lighting Fund: Revenues and expenses continue to be less than anticipated. Overall: Operating revenues are at 32.35 percent of budget and up from the same time last year. Operating expenses are as anticipated and approximately $1 million more than the same time last year. Capital expenditures (including encumbrances) are 110 percent of budget. Total accounts receivable is up from the same time last year but delinquent billings remain less than 1%. The total over 90 days delinquent is up about $21,000 from the same time last year. N a SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 2 of 4 TEL 801-483-6770 October 27,2022 PUAC MEETING MINUTES Status of Fats, Oil, Grease (FOG) Sewer Pretreatment Program Jesse Stewart,Jamey West and Terry Price Regulatory Compliance Manager Terry Price gave a presentation of the status of the fats, oils and grease (FOG) sewer pretreatment program. A copy of that presentation is available. Jesse Stewart introduced Terry Price and Jamey West to the Committee. Terry Price gave definitions to common anacronyms used throughout the program. Tom Godfrey asked how the department interacts with the County Health Department. Terry responded that as soon as the wastewater enters the sewer system, Public Utilities takes over the response and that there is a good working relationship with the Health Department. The purpose of the FOG system is to protect the sewer system from animal and organic matter. EPA estimates that uncontrolled FOG discharge ranges from 800-17,000 pounds/year from each food service establishment. Without control—39 million pounds of OFG pr year illicitly discharged into our sewer, enough to fill eight Olympic swimming pools. Our sewer treatment plant processes the FOG and converts the oils into methane and returns the treated water to the system. Kent Moore asked how well restaurants comply with the city ordinances. Terry and Laura responded that most restaurants are compliant with the program. There are some owners who do push back and there are consequences and fines that are levied. The average cleaning cost of sewer"hot spots"is approximately $1,000 per spot. Ted Boyer asked what homeowners can do to reduce FOG in the system. Terry responded that dry clean-up is encouraged by scraping food waste from dishes and pans into recyclable or solid waste receptacle before washing. Capital Asset Program, Budget Planning, and Funding Strategy Matrix Jesse Stewart,Jason Brown,Derek Velarde and Holly Lopez Chief Engineer Jason Brown gave a presentation of the capital asset program, budget planning and funding strategy matrix. A copy of that presentation is available. Jason gave a brief synopsis of the Public Utilities assets across all divisions and how criticality is determined. Once the criticality is determined there is a plan made for the asset through a vetting process that identifies issues and concerns. Based on the issues and concerns of an individual asset, the engineer assigned to the project will scope the project to determine all of the stake holders, costs, material requirements and potential consumer impacts. Internal meetings are convened to determine prioritization. If a project doesn't make it through the Capital Asset Program to funding through the budget, it M may end up being mitigated through operations and management if required. �a a SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 3 of 4 TEL 801-483-6770 October 27,2022 PUAC MEETING MINUTES After administration review, the PUAC Budget sub-committee will be informed of the projects that are critical for the budget year and the completed budget will be presented to the full Advisory Committee before final presentation to the City Council and Mayor. Incorporating Environmental Justice into Lead Service Line Replacement Marian Rice and Dustin White This presentation will be moved to a future meeting due to time constraints Field Trip Opportunity November 2nd to the WRF with Mayor Mendenhall Laura Briefer alerted the Advisory Committee of an opportunity to tour the Water Reclamation Facility with Mayor Mendenhall and Council Member Wharton at 9:30 am on November 2nd to see the progress of construction. There will be a preview walk through on Monday the 31't at 1 pm. The address is 2020 North Redwood Road. Public Comment None. Other Business None. Meeting adjourned at 9:27 am. Next Meeting will be held on December 151h at 12 noon at Tracy Aviary Chase Mill a� aA �a a SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 4 of 4 TEL 801-483-6770