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Home My WebLink About02/24/2022 - Meeting Minutes 00. Minutes DEPARTMENT of PUBLIC UTILITIES -(Z-j ADMINISTRATION ,'''•� I T '';,`, February 24, 2022 The Public Utilities Advisory Committee meeting was held at 8 am on February 24, 2022, via online meeting platform due to the COVID-19 outbreak. Committee members present were Roger Player, Kent Moore, Ted Boyer, Lynn Hemingway, Ted Wilson, Kathryn Floor, Alex Lovell and Tom Godfrey, . Salt Lake City Public Utilities employees present were Laura Briefer, Jesse Stewart, Marian Rice, Jamey West, Alex Christensen, Tamara Prue, Brad Stewart, Arlene Larsen, Michelle Barry, Tamara Wambeam, Teresa Gray, Dawn Wagner, Holly Lopez, Lisa Tarufelli, Sharon Turner, Teresa Gray, Jason Brown, Jeff Snelling, Karryn Greenleaf, Holly Mullen and Janine Calfo. Also in attendance were Rusty Vetter, Salt Lake City Attorney's Office; Mike DeVries, Metropolitan Water District of Salt Lake and Sandy; Cheri Jackson, Millcreek City Council; Tim Cosgrove and Abby McWilliams, Salt Lake City Mayor's Office; and Sam Owen, Salt Lake City Council Office. Welcome and Introductions Committee Chair Roger Player and Public Utilities Director Laura Briefer welcomed the attendees. Laura introduced the two new Committee members, Kathryn Floor and Alex Lovell. Approve Minutes of January 27, 2022 Meeting Committee member Tom Godfrey made a motion and committee member Kent Moore seconded the motion to approve the minutes of the January 27, 2022. All members voted to approve. Monthly Financial Report Lisa Tarufelli, Finance Administrator Public Utilities Finance Administrator Lisa Tarufelli gave a presentation of the financial report. A copy of that presentation is attached. As of January 31, 2022, the Water Fund operating revenues are at 56.89 percent of budget and Operating Expenses are at 50.43 percent of budget. Capital Expenditures and Total Expenses are lower than the same time last year. The Sewer Fund operating revenues are on track with budget. Operating expenses are favorable at 47 percent of budget and will continue to be monitored. The 2020 bond funds have $31.2 million remaining. Stormwater Fund revenues are higher than last year and slightly ahead of budget with operating expenses trending behind. Capital expenditures and expenses are a little higher than last year. Available cash increased from last year by 4 percent. February 24,2022 PUAC MEETING MINUTES The Street Lighting Fund operating revenues are trending ahead of budget. Available cash is down due to increased spending from last year. All four funds are very close to anticipated budget. Overall,capital expenditures and encumbrances are at 70 percent.Available cash is down, due to spending down of the bonds.Accounts receivable are up from last year with delinquent billings down from 4.92 percent in comparison to January 2021. Evaluation and refinement of FY 23 budget requests are being made. Preparation is being made for initial WIFIA loan draw. The department is planning for a new FY 22 bond issue for the Water and Sewer Funds to support capital work. Alex Lovell asked what the frequency rate for account delinquencies is and what is the point when the department's viability is impacted. Lisa responded that the rate is about 1 percent or less prior to 2020. The rate did get as high as 5 percent after 2020. The department was able to maintain its AAA bond rating during that period. If the delinquent rate became 25 percent or over, that would impact department viability. Laura Briefer added that the department has conducted the first phase of a Financial Capability Assessment to determine a stress test on rate increases on the population. PUAC Members are encouraged to participate in the upcoming rate study meetings. PUAC Budget Sub-Committee Report Tom Godfrey gave a summary of the previous meetings.During the last meeting,held on February 9th, the Budget Sub-Committee reviewed the capital improvement projects and several price escalations have caused major slowing of capital projects. The Stormwater budget was reviewed to include a 15 percent rate increase. The Water Fund and Sewer Fund are scheduled for a 15 percent rate increase. Report on the Fifth Unregulated Contaminant Monitoring Rule and the Consumer Confidence Report Arlene Larsen Arlene Larsen, Water Quality Regulatory Program Manager, gave a brief presentation on the Report on the Fifth Unregulated Contaminant Monitoring Rule and the Consumer Confidence Report. A copy of that presentation is attached. The Consumer Confidence Report provides information to consumers about the quality of drinking water that includes levels of contamination and types of contaminants. Revisions to this rule are expected in the near future. The National Drinking Water Advisory Council recommended several changes. • Accessibility changes for non-English speaking populations and adaptations for people with disabilities. • Environmental Justice and increased availability for underserved communities. (V a� aA �a a SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET 0 WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 2 of 4 TEL 801-483-6770 February 24,2022 PUAC MEETING MINUTES • Readability, understandability, clarity, accuracy of information and risk communication of the Consumer Confidence Report. • Delivery methods,including electronic delivery to reach non-paying and paying customers. Arlene showed a sample of the Department's 2021 Consumer Confidence Report and explained how it may be revised to implement the new changes. The Unregulated Contaminants Monitoring Rule requires the EPA to issue a list of no more than 30 unregulated contaminants that are monitored every five years. PFAS (Per- and Polyfluoroalkyl Substances) contaminants are linked to a host of health issues and will be restricted. Emergency Sewer Influent Bypass Jesse Stewart Jesse Stewart gave a brief presentation on the Emergency Sewer Influent Bypass. A copy of that presentation is attached. An emergency project has arisen due to failure of Force Main#1 at the Influent Pump Station(IPS) at the Water Reclamation Facility (WRF). To maintain adequate redundancy, to facilitate repairs to force main #1, and to allow assessment of sewer force mains #2 and #3, an above ground emergency bypass pumping system has been installed to convey all sewer flows (30-32 million gallons per day) from the IPS to the WRF. Tom Godfrey asked how the failure manifested. Jamey West responded that abnormal pumping was observed in the pumps at the IPS. Upon further investigation,the operations teams noted that there were irregular rates of flow and water was seeping out of the ground. Currently, force mains #2 and #3 are being used, as force main #1 has been shut down. When the emergency bypass operation is ready, all flows will be bypassed until repairs and assessments are completed. Legislative Update Laura Briefer,Director and Rusty Vetter, Senior City Attorney Laura Briefer discussed the various bills that effect water statutes. There are about 30 pieces of legislation that concern water. The two bills that are most concerning are HB232 — the Utah Lake Authority Bill and HB343- Water Supply Amendments. Water sources from Deer Creek and the City's Utah Lake water rights are dependent on the way that Utah Lake is managed. There are substitute bills out that address water rights and water quality. It may not have passed the House yet and will continue to monitor. HB343 —Water Supply Amendments - is opposed by the City. This legislation would require the (Y) department to provide additional water to the canyons. The department currently has surplus water �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 February 24,2022 PUAC MEETING MINUTES agreements to provide water to landowners. These agreements are very limited. There are some constitutional issues with this legislation. The City does not have any more surplus water. Rusty Vetter added that there was a surplus in the State budget and there are water issues that are receiving funds this year. There are some positive things that are happening this year for water. Ted Wilson asked if the department is involved in an issue regarding secondary metering. Laura responded that the bill doesn't affect Salt Lake City because the City doesn't have pressurized secondary water. Public Comment There was no public comment. Closed Session Under Utah Code Section 52-4-205 This issue has been moved to a future meeting. Other Business There was no other business discussed during the meeting. Meeting adjourned at 9:32 pm. Next Meeting will be held on March 24te 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