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Home My WebLink About01/27/2022 - Meeting Minutes 00. Minutes DEPARTMENT of PUBLIC UTILITIES -(Z-j ADMINISTRATION ,'��''•� I T ''�;,`, January 27, 2022 The Public Utilities Advisory Committee meeting was held at 8 am on January 27,2022,via online meeting platform due to the COVID-19 outbreak. Committee members present were Kent Moore, Ted Boyer, Dani Cepernich, Lynn Hemingway, Ted Wilson and Tom Godfrey. Salt Lake City Public Utilities employees present were Laura Briefer, Jesse Stewart, Marian Rice, Tamara Prue, Dawn Wagner, Brad Stewart, Michelle Barry, Tamara Wambeam, Teresa Gray, Tricia Cannon, Holly Lopez, Lisa Tarufelli, Sharon Turner, Mike Gill, Cameron Scharrer, Dustin White, Karryn Greenleaf, Jason Brown, 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;Nathan Zaugg,Corollo Engineering;Drew Quinn,Holladay City Council; Sam Owen, Salt Lake City Council Office; Mike Matichich, Jacobs. Welcome and Introductions Committee Chair Lynn Hemingway and Public Utilities Director Laura Briefer welcomed the attendees. Approve Minutes of December 16, 2021 Meeting Committee member Tom Godfrey made a motion and committee member Kent Moore seconded the motion to approve the minutes of the December 16, 2021. All members voted to approve. Election of Chair for 2022 Tom Godfrey nominated Roger Player as chair, Ted Boyer seconded. All members voted to approve. Election of Vice-Chair for 2022 Tom Godfrey nominated Dani Cepernich as vice-chair. Kent Moore seconded. 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. Financial Report -November 30, 2021 Water Fund—Operating revenues are trending slightly ahead of budget. The metered sales for water are slightly ahead of budget but down about 15 percent from the prior year, most likely due to summer conservation efforts. Operating expenses continued to trend on budget and are up $2.5 million from the same time last year. Capital expenditures are at 64% of budget. January 27,2022 PUAC MEETING MINUTES Sewer Fund—Operating revenues are slightly less than budget with user charges coming in at 36% of budget. Operating expenses are within budget. Capital expenditures are $50.6 million higher than the same time last year due to WRF construction. The 2020 bond funds have 35.20% remaining. Stormwater Fund - Operating revenues continue to trend slightly ahead of budget. Operating Expenses, Capital Expenditures, and Total Expenses are well within the budgeted parameters. Street Lighting Fund - Operating Revenues and operating expenses are within budget. Capital Expenditures are low pending development of a new capital plan based on master plan guidance. The overall view for November 2021 reflects a decrease in Operating Revenues, an increase in Operating expenses from the prior year, and all area are within budget. 2020 Bond proceeds and time remaining are approximately 56%. Financial Report—December 31, 2021 Water Fund—Operating revenues continue to trend slightly ahead of budget. Metered sales are at budget but are down by 13.7% from the prior year. Operating expenses and capital expenditures continue to trend as expected. The decrease in available cash is related to operational spending and utilization of bond proceeds for capital projects. Sewer Fund—Operating revenues remain slightly less than budget. Sewer user charges are at 44% of budget. Operating expenses are as expected and within budget. Capital expenditures are up by$71.2 million from the prior year reflecting the level of work on the water reclamation facility. The amount remaining in 2020 bond proceeds for this project is $33.4 million. Stormwater Fund—Previously reports trends for operating revenues, operating expenses, and capital expenditures continue. All are within budget and $10.1 million of 2020 bond proceeds remain. Street Lighting Fund—Operating revenues and operating expenses are as expected. The overall view for December 2020 indicates operating expenses are up from the prior year,but within budget. The total capital expenditures, including encumbrances, for the department are at 68.58 % of budget. The decrease in cash is largely attributed to the utilization of bond proceeds. The 2020 Bond Funds have 51.99 percent remaining with 53.8 percent of time remaining to spend them." PUAC Budget Sub-Committee Report Laura Briefer gave a brief report. The Sub-Committee has met twice. The first meeting was an N informational overview of the budget process. The second meeting reviewed the preliminary �a 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 January 27,2022 PUAC MEETING MINUTES personnel requests from the various departments and a review of the preliminary budgets of Stormwater and Street Lighting Utilities. The next meeting will be on February 9th and will review the Water and Sewer Utilities. Lead and Copper Rule Update Teresa Gray and Dustin White Teresa Gray and Dustin White gave a brief presentation on the Lead and Copper Rule updated December 2021. A copy of that presentation is attached. There are long term health effects in both adults and children from ingestion of lead and copper. The new rule will make the department responsible for developing a service line inventory, replacement plan, sampling plan, and education and outreach for City lines, as well as the lines that go into private homes to mitigate high levels of lead and copper that are detected. Dustin White discussed lead service line inventory and identification. The EPA is now requiring an inventory all the way up to private property. There are approximately 68,000 services lines, both public and private, that are of unknown composition. Tom Godfrey asked what triggers a"tap sampling".Dustin responded that there are 100 samplings required by year and will reach out to customers with surveys. Ted Wilson asked what the impact of mountain run offs is to the water quality. Dustin responded that the impact is down-stream from the treatment plants. Laura added that there was no ore processing in the canyons above the treatment plants. The canyon streams,themselves, don't have a problem with lead and copper. Lynn Hemingway asked if there was a date that lead was phased out of the building code. Dustin responded that lead pipe was banned in 1986 and homes older than 1960 are of primary concern." Possible Amendment to Salt Lake City Code Chapter 17.16 Prohibiting New Uses of Water Greater than 100,000 Gallons Per Day Laura Briefer,Director and Rusty Vetter, Senior City Attorney Laura Briefer gave a brief synopsis of the proposed amendment. The goal is to have the large water user ordinance equitable across Public Utilities' Service Area and to mirror the City's land use ordinance. Tom Godfrey asked if the inland port would be exempt of the restriction. Rusty responded that the land use ordinance does not apply to the area at this time. M Laura will have a draft of the proposed amendment to the PUAC meeting in February for review. 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 January 27,2022 PUAC MEETING MINUTES Legislative Update Rusty Vetter, Senior City Attorney Rusty Vetter discussed the various bills that effect water statues. The Utah Water Taskforce has been the primary driver of bringing people together to talk about legislation. There is a lot of attention to helping the Great Salt Lake and water conservation. Rusty also mentioned the strong team of people working for the City who are regularly monitoring and providing input on new legislation as it comes out every day. There are a few bills of concern. Utah Lake Authority Bill HB232 is patterned very much like the Inland Port Authority that creates a board with power to work on the lake, clean up and management. The City is also watching for a bill that may impact water in the watershed areas. Ted Wilson asked if Zach Frankel is making any waves. Laura responded that the bill that he has advocating related to Great Salt Lake hasn't been introduced yet. Laura discussed SB 110, which is a land use bill that would require coordination between counties and cities and water agencies in general planning. Preliminary Financial Capability Assessment Summary Marian Rice, Deputy Director Marian Rice and Michael Matichich, who leads the Financial Services consulting team at Jacobs, provided a presentation of the overview of the Phase I Financial Capability Assessment Study. The purpose of the study is to further Public Utilities'understanding of the affordability of services and the impacts of rates and rate increases on the range of demographic groups within Public Utilities'customer base. The study uses new metrics and approaches that have been identified in recent studies new and pre-publication guidance on financial capability released by the United States Environmental Protection Agency(EPA). The study also incorporates Environmental Justice and social equity. The next steps include the finalization of Phase I, stakeholder engagement, and kickoff for Phase II.A copy of the presentation and Executive Summary of the Phase I report are attached. Public Comment There was no public comment. Other Business There was no other business discussed during the meeting. Meeting adjourned at 9:41 pm. Next Meeting will be held on February 25th at 8 am. d-+ 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