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Home My WebLink About06/23/2022 - Meeting Minutes 00. Minutes DEPARTMENT of PUBLIC UTILITIES -(Z-j ADMINISTRATION ,'��''•� I T ''�;,`, June 23, 2022 The Public Utilities Advisory Committee meeting was held at 8 am on June 23, 2022, at 1530 South West Temple, Salt Lake City, UT 841115. Virtual participation was also accommodated in this meeting. Committee members present were Roger Player, Dani Cepernich,Kent Moore,Alex Lovell, Kathryn Floor, Ted Boyer, Ted Wilson and Tom Godfrey. Salt Lake City Public Utilities employees present were Laura Briefer, Jesse Stewart, Marian Rice, Teresa Gray, Jason Brown, Stephanie Duer, Hailey Keller, Karryn Greenleaf, Nikole Bench, Lisa Tarufelli, Dustin White, Sharon Turner, Jamey West, Tricia Cannon, Holly Mullen and Janine Calfo. Also in attendance were Rusty Vetter and Mark Kittrell, Salt Lake City Attorney's Office; Mike DeVries, Metropolitan Water District of Salt Lake and Sandy; Kathy Olsen, Woodbury; John McCullay, Jacobsen Inc.; Mike Wilson, CRS Engineers; Tim Cosgrove, Salt Lake City Mayor's Office; Nathan Zaugg, Carollo Eng; and Sam Owen, Salt Lake City Council Office. Steven Cornell Welcome and Introductions Committee Chair Roger Player and Public Utilities Director Laura Briefer welcomed the attendees. Approve Minutes of May 26, 2022 Meeting Ted Boyer mentioned the need to add Kathryn Floor to the attendance list and there was an editing note left that needs to be deleted. Committee member Ted Boyer made a motion and committee member Ted Wilson seconded the motion to approve the minutes of the May 26, 2022. 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 May 31, 2022. A copy of that presentation is attached. Water Fund: Revenues are at 77 percent of budget. Operating Expenses are lower than budget. There has been some bond spending that has lowered available cash. Accounts receivable is down from the same time a year ago due to decreasing water demand from conservation efforts. Half of the bond proceeds have been spent from the 2020 issue. Additional bonds will be issued in 2022. Kent Moore asked if the coming rate increase will impact delinquencies in the near future. Lisa responded that the new rates will not go into effect until July I st and consumers may not start noticing until August. Sewer Fund: Operating revenues are slightly less than planned for budget. The sewer use charge component are at 86 percent of budget. Operating expenses continue to trend less than budget. There are only 17 percent of bond funds remaining. There should be a seamless transition to the June 23,2022 PUAC MEETING MINUTES 2022 bond issue. Kent Moore asked if the new bond rates were locked in at a good rate. Laura and Lisa responded that the bonds are closing next week. Pricing happened last week; closing will be next week. The true interest cost should be just over 4 percent, which is what was projected. Ted Boyer asked if the supply chain issues have caused problems for the WRF rebuild. Jason Brown responded that the type of contracts that have been made,purchases can be made before the prices increase, allowing the department to save a significant amount of money. There has been minimal impact from delays in getting supplies. The facility will be compliant by 2025, but construction may not be completed. Stormwater Fund: Capital expenditures are increasing due to some new agreements that have been made. Operating revenues are ahead of budget. There have been no new bond issues this year for this fund. Street Lighting Fund: This fund is right on track with budget. The new Master Plan is being reviewed. Overall: Operating revenues are less than anticipated. The Capital Program is at 80 percent of budget. Available cash is down due to the spend down of bonds. Delinquent billings are down from last year,but up from last month. To offset the lower available cash, the Department delayed new hires. The 2022 bond issues have a tentative closing of June 29t'. Total issues will be $329,025,000. The City Council has approved the Department budget. The Department is taking advantage of making collection efforts over the phone and saving fuel costs from driving out to customers' homes. Possible Amendment to the Salt Lake City Code Chapter 17.6 Prohibiting New Uses of Water Greater than 200,000 Gallons per day for County Customers—Laura Briefer and Rusty Vetter Laura Briefer gave a brief discussion about the Salt Lake City Code Chapter 17.6 Prohibiting New Uses of Water Greater than 200,000 Gallons per day for County Customers. The City adopted a new land use/zoning ordinance in December of last year that would prohibit the expansion of large water use customers. There are some areas that this ordinance wouldn't apply outside of Salt Lake City. There are quite a few large plots of property in the Northwest Quadrant that locked the zoning ordinance to what it was in 2018 and wouldn't be held to the new ordinance. By amending this code,it would provide equity to everyone who is being served by Public Utilities, inside and outside City boundaries. Rusty Vetter discussed that research that was done to put this amendment together. N Tom Godfrey has some questions regarding verbiage of the amendment. Laura responded that there will be some further research to amend to remove ambiguity of the language. Alex Lovell is 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 June 23,2022 PUAC MEETING MINUTES supportive of the intent but has some reservation about the modality and would like to see innovation in how water is used. Laura responded that the Department would be very supportive of innovations with how water is used and charged to different types of water users. Future refinements will need to happen during the next rate study. Motion of support: Committee member Kent Moore made a motion and committee member Ted Wilson seconded the motion to support amending the ordinance. Discussion and Public Hearing Concerning Disposition of City-Owned Property Located at 348 East South Temple, Salt Lake City, UT The PUAC will accept public comments to consider a request to declare Salt Lake City Department of Public Utilities (SLCDPU) owned property surplus. The property is located at 348 East South Temple,the section of said property is 2,369 square feet. 348 Apartments, LLC has requested this conveyance for a housing development. The City will require fair market value for the property while retaining an easement for the City owned facility. The purpose of the public hearing is for the Public Utilities Advisory Committee to hear public comment regarding the property transaction. For additional information,please contact Karryn Greenleaf at 801-483-6769. This item has been cancelled and may be continued at a future meeting. Open Meeting Training Follow-Up Rusty Vetter Rusty Vetter gave a brief discussion about Open Meeting Training and Committee members who have completed the training can send an email to Janine Calfo for record. Director's Report Laura Briefer There is a lot of attention on the Great Salt Lake, and state policy discussions are reflecting the concerns about a shrinking Great Salt Lake. The Department has initiated an Adopt A Storm Drain project. There will be several legislative issues that Laura will be reviewing over the summer. Laura recognized Rusty Vetter, who is retiring from the City and Holly Mullen will be moving on to the Salt Lake City Tribune to run their Innovations Lab and thanked them for their service with the Department. Laura then welcomed Mark Kittrell, who will be taking Rusty's place with the Department. Roger Player also thanked Rusty, on behalf of the Committee. M Other Business None. 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 June 23,2022 PUAC MEETING MINUTES Public Comment None. Kathryn Floor had a question about using treated wastewater at the cemetery and to the Great Salt Lake. Laura responded that it is harder to get treated water to the cemetery due to its elevation and there are ongoing discussions. Meeting adjourned at 9:42 pm. There will be no meetings for July and August. Next Meeting will be held on September 22°d at 8 am. 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