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HomeMy WebLinkAbout02/26/2026 - Meeting Minutes Minutes DEPARTMENT of PUBLIC UTILITIES ADMINISTRATION Salt Lake City Public Utilities Advisory Committee Meeting Minutes February 26, 2026 The Public Utilities Advisory Committee (PUAC) meeting was held at 7:30 am on Thursday, February 26, 2026. Committee members that were present, Chris Shope (Chair), Sean McKelvie (Vice-Chair) Kathryn Floor, , Tom Godfrey, Dani Cepernich, Ted Boyer, Dani Cepernich and Kamiron Anderson. Salt Lake City Public Utilities employees present were Laura Briefer, Jason Brown, Jesse Stewart, Tamara Prue, Tammy Wambeam, Jason Draper, Lisa Tarufelli, Jacob Jorgensen, Tamara Prue, Holly Lopez, Audree Ketcham, Michelle Barry, Jamey West, Jeffrey Grimsdale, Teresa Gray, Chloe Morroni, Karryn Greenleaf, Karl Fenrich, and Elle Smith. Others present were Dorothy Adams, Director, Salt Lake County Health Department; Ron Lund, Salt Lake County Health Department; Aspen Johnston, Great Salt Lake Water Coordinator, Great Salt Lake Commissioner’s Office; Zac Steele, Carly Castle, Salt Lake City Attorney's Office; Austin Kimmel, Salt Lake City Council Office; Jack Stauss, Save our Canyons; Scott Narus, Citizen. Welcome and Introductions Chair, Chris Shope welcomed everyone to the committee meeting. Laura Briefer introduced Elle Smith, Public Utilities Executive Assistant, and gave a brief introduction of her role managing the PUAC. Approve Minutes of January 22, 2026, Meeting A motion was made by Tom Godfrey and seconded by Dani Cepernich to approve minutes of the January 22, 2026, PUAC meeting. All members voted to approve. Financial Report and Budget Update Lisa Tarufelli, Finance Administrator Lisa Tarufelli presented the financial report for the period ending December, noting that her team is still finalizing January figures. Operating revenues for the Water Fund were at 63% of budget, with water sales, the primary driver, at 61% of projected year‑to‑date. Operating expenses were just under 38% of budget, and capital expenditure and encumbrance were at 76%. The 2025 bond fund had approximately $72.9 million remaining at year‑end. In early December, the department also issued a $50 million Bond Anticipation Note (BAN) for the purchase of a new Public Utilities campus, $24.1 million remains to support the project. For the Sewer Fund, operating revenues were at 55% of budget, with sewer charges at 51%. Operating expenses reached 34%, reflecting the higher budget set in anticipation of transactional activity between plants. Capital expenditures and encumbrances were at 76%, with one February 26, 2026 PUAC MEETING MINUTES SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY, UTAH 84115 2 of 6 TEL: 801-483-6770 Pa g e 2 additional encumbrance pending for the WRF main contract and several engineering projects still underway. Remaining 2025 bond funds totaled approximately $81.4 million at year‑end. Stormwater Fund operating revenues were at 54% of budget, driven primarily by storm drain fees at 49% of projections. Operating expenses were at roughly 30%, and capital expenditures and encumbrances were around 34–35%. The fund has no remaining bond proceeds, although outstanding debt continues to be serviced through operating expenses. For the Street Lighting Fund, revenues and expenses were both at about 51% of budget. Fees were at 48% of projections. Capital expenditures and encumbrances were 15% of budget. One large loss bill of $200,000 was posted in January. Across all four funds, combined revenues were just under 60% of projections, operating expenses were at 37%, and capital expenditures and encumbrances were approximately 74%. Total accounts receivable decreased 27% from the prior December, from $11.6 million to about $8.5 million. The delinquency rate is currently 8.95%, higher than the department’s target of under 3%. Four accounts represent 68% of the delinquent balance; resolving those is expected to bring the rate back to target. Committee Member Ted Boyer asked whether current Sewer Fund resources will cover remaining construction costs. Lisa confirmed they should be sufficient, and additional federal funds remain available for drawdown. Overall, the department has $154.33 million remaining from bonds issued about a year ago, split roughly evenly between Water and Sewer. A major use of these funds is the City Creek Treatment Plant. The BAN for the campus project totals about $24.1 million under the Water Fund, with interfund reimbursement used if Sewer or Stormwater draws on those funds. Director Briefer asked about the BAN for the new campus. Lisa explained it was privately placed with Wells Fargo rather than taken to market, resulting in a 3.54% interest rate. This structure also allows flexibility to issue long‑term bonds later if needed, though the goal is to finance repayment through the property sale. Lisa provided a brief update on customer service activity for December: 71,163 calls handled, 615 walk‑ins, and $13,111 in Project Water Assist donations collected. The program assisted 13 families with approximately $2,600 in bill support. There was one new bankruptcy filing of $133.08. Field collectors made 4,080 visits and calls, collecting about $825,000. Delinquent accounts remained steady at approximately 1,132. The department is currently reviewing street lighting fees with rate consultants and participating in the City’s FY27 budget subcommittee. A new billing system begins this week, with consultants assessing current processes and future needs. The department is also monitoring legislative changes that may affect the impact‑fee study and facilities plan. Director Briefer emphasized the significance of these potential changes, noting the substantial effort already invested and the risk of delays in implementing updated impact fees. February 26, 2026 PUAC MEETING MINUTES SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY, UTAH 84115 3 of 6 TEL: 801-483-6770 Pa g e 3 Director Briefer concluded by thanking the PUAC Budget Subcommittee for its work. Rate scenarios will be discussed at the next meeting, and Public Utilities will soon be presented to the internal Citywide Budget Subcommittee. Presentation from Salt Lake County Health Department Dorothy Adams, Director; Ron Lund, Division Director Director Briefer introduces Dorothy Adams and Ron Lund from the Salt Lake County Health Department, emphasizing the department’s critical partnership with Public Utilities. Director Briefer notes that Public Utilities function, in many ways, as a public health agency because much of its work focuses on protecting community health. Director Adams presents on “Public Utilities and the Local Health Department: Partners in Environmental Protection.” She has served nearly 39 years with the Health Department, primarily in Water Quality and Hazardous Waste, and helped establish the Household Hazardous Waste Program—one of the earliest collection events was held at the current SLC Public Utilities building. Director Adams explains that public health is broad and continually evolving. Key responsibilities include managing communicable diseases, conducting community health tracking, and providing timely public health information, such as recent notices regarding measles outbreaks. Public Health plays a unique role in directly notifying community members of potential exposures. The Environmental Health Division consists of four areas: air pollution, food protection, sanitation, and safety/solid waste. Director Adams highlights the long-term benefits of early childhood interventions and programs such as WIC. The department also provides traditional public health nursing, chronic disease and injury prevention education, and partnerships with healthcare organizations, all with a strong focus on health equity. Salt Lake County Health Department is the largest in Utah and works closely with the state’s 13 local health departments to maintain consistent standards. Nationally, there are 394 local health departments. The department is governed by a Board of Health that includes medical professionals, County Council and Mayor’s Office representatives, and a dentist. Non-environmental public health services include immunizations, WIC, home visits for low- income households, vital records, disease investigation, emergency preparedness, injury prevention, substance use prevention, and support for 18 community coalitions. Director Adams notes that funding can be challenging because measurable outcomes often take 10 years or more to appear. Environmental responsibilities include maintaining housing standards related to heat, electricity, hot water, and sewer connections. While the department does not handle evictions, it serves as a regulatory body focused on education and compliance for both individuals and businesses. The department also manages solid waste, including encampment cleanups supported by three dedicated staff, and permits waste processing facilities. This work intersects frequently with Salt Lake City Public Utilities. February 26, 2026 PUAC MEETING MINUTES SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY, UTAH 84115 4 of 6 TEL: 801-483-6770 Pa g e 4 Air quality is another key responsibility. The department oversees the INM program and regulates more than 450 emissions inspection stations, with roughly 800,000 vehicles tested annually. They also participate in incentive programs encouraging the adoption of electric vehicles. Division Director Ron Lund discusses the noxious weed program required for all counties. The program focuses on removing invasive species that threaten native plants and increase fire risk, particularly along canyon areas on the east side of the valley. The Health Department also partners with Public Utilities on stormwater protection and MS4 permits, a collaboration ongoing for nearly 30 years. They operate four Household Hazardous Waste sites, accept electronic waste, and coordinate with the fire department for unsafe materials. Additional joint work includes watershed protection to safeguard high‑quality canyon water. Rusty Vetter notes the long-standing partnership between the City and the Health Department, particularly in aligning City watershed ordinances with Regulation 14. Division Director Lund confirms that the City and County share regulatory jurisdiction in these areas. Director Briefer emphasizes that Salt Lake City, as a public water system, must maintain a surface water source protection plan to prevent contamination before water reaches treatment facilities. Salt Lake County Health Department Regulation 14 and the partnership Public Utilities remain central to this effort. The City has never experienced a water quality event under these regulations, demonstrating their effectiveness. She also notes that the success of these protections can lead to public complacency, underscoring the ongoing need for community education about the importance of watershed protection. Both Director Adams and Division Director Lund close out their presentation with an emphasis on the partnership between Salt Lake County Health Department and Salt Lake City Public Utilities. Sewer Rate Adjustments Jesse Stewart, Deputy Director; Jacob Jorgensen, Financial Analyst This item is a continuation from the previous meeting regarding sewer rate adjustments. There are now eight requested adjustments requiring the committee’s approval. These requests come from customers with significant outdoor water use who are seeking a reduction in their sewer charges. Adjustments are calculated using each customer’s average AWC. The one‑page summary prepared by Deputy Director Jesse Stewart will be attached to these minutes. Director Briefer noted that she does not expect this process to continue next year, as an amendment to the rate study is underway to better account for certain multi‑family developments. These adjustments are therefore anticipated to be temporary for this year. February 26, 2026 PUAC MEETING MINUTES SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY, UTAH 84115 5 of 6 TEL: 801-483-6770 Pa g e 5 Committee member Ted Boyer moves to recommend these 8 adjustments for approval, with a second from Committee member Sean McKelvie. All committee members vote in favor of the recommendation. Presentation from the Great Salt Lake Commissioner’s Office Aspen Johnston, Great Salt Lake Water Coordinator Director Briefer introduced Aspen Johnston and thanked him for presenting. Aspen’s presentation will be attached to these minutes. He serves as the Great Salt Lake Water Coordinator for the Office of the Great Salt Lake Commissioner and has been working closely with Salt Lake City Public Utilities to identify collaborative strategies to support the lake’s recovery. Aspen shared a video illustrating the Great Salt Lake’s long‑term decline and discussed the broader impacts on air quality, plant life, and public health. As lake levels fall, previously submerged lakebed becomes exposed, increasing the risk of emissive dust. Prolonged exposure erodes the natural salt crust that typically protects the playa, allowing dust to be carried across the Wasatch Front and potentially as far as Idaho. He also explained the differences between the lake’s north and south arms, which are divided by a railroad causeway. This separation has created two distinct water bodies, with higher salinity in the north arm. Most mineral extraction occurs in the south arm. Aspen noted that the State of Utah recently acquired property and 144,000 acre‑feet of associated water rights. The Utah Division of Forestry, Fire, and State Lands, in coordination with the Commissioner’s Office, is evaluating how best to dedicate this water to support the lake. He provided historical context, noting the high lake elevations during the 1980s floods and the subsequent long‑term decline that led to the historic low in 2022. Two strong water years have since provided some rebound; however, it remains uncertain whether levels may again approach record lows this year. Aspen outlined several consequences of the lake’s decline. Many relate to public health, including water quality, water quantity, and the spread of noxious weeds. As a terminal lake, any contaminants within the basin ultimately settle in the lakebed. As more lakebed becomes exposed, these materials may become airborne. Ecological risks are also significant; extreme salinity changes can severely affect the wildlife dependent on the lake’s ecosystem, with downstream effects on industries that rely on those conditions. He described potential dust‑mitigation strategies but noted their high cost. As a comparison, a lake in California roughly one‑sixteenth the size of the Great Salt Lake has required approximately $2.5 billion in mitigation work, with ongoing annual costs of about $100 million. The Office of the Legislative Auditor General has estimated potential costs in Utah at around $150 million, though the actual figure may be higher. February 26, 2026 PUAC MEETING MINUTES SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY, UTAH 84115 6 of 6 TEL: 801-483-6770 Pa g e 6 Governor Cox recently committed to the 2034 Great Salt Lake Charter, motivated in part by the upcoming 2034 Olympic Games. The charter aims to reverse the decline of a terminal saline lake and will require broad collaboration across agencies, municipalities, businesses, and other stakeholders. Dr. David Tarboton developed three scenarios based on 1,000 simulations: • Scenario 1: Baseline, with no changes to current practices. • Scenario 2: An additional 250,000 acre‑feet per year directed to the lake. • Scenario 3: An additional 800,000 acre‑feet per year directed to the lake. While lake elevation is not the sole measure of lake health, it is a helpful indicator. Achieving meaningful improvement will require coordinated efforts among municipalities, agricultural producers, water right holders, and secondary water systems. The Commission is working on a Comprehensive Municipal Conservation Strategy to bring these groups together. Committee Member Tom Godfrey asked whether there are mandatory obligations related to the Great Salt Lake. Aspen and Director Briefer confirmed that there are none. Chair Chris Shope asked how major water users compare with individual outdoor water use such as lawn watering. Aspen noted that all outdoor use is being evaluated and that conservation measures must consider the needs of businesses. He also emphasized opportunities to conserve water with minimal impact, such as incorporating less water‑intensive plants. Tamara Prue from Salt Lake City Public Utilities reported that the City has been tracking relevant legislation, including HB 296, a conservation bill that recently passed both houses. Director Briefer reiterated that addressing the lake’s decline is a collective action challenge and will require participation from all partners. 2026 Legislative Session Laura Briefer, Director Laura Briefer provided an update on the current Utah State Legislative session. The Department of Public Utilities is monitoring approximately 60 proposed bills, though relatively few are considered high priority. One bill of concern, HB 501, originally proposed minimum rate requirements for water and wastewater utilities to qualify for state and federal funding. Recent amendments have clarified the bill’s language and limitations. Laura also expressed appreciation for the work of Holly Lopez, Carly Castle, the City’s Legislative Affairs Division, our lobbyists, and Austin Kimmel, with the Salt Lake City Council. Public Comment Salt Lake City Resident Scott Narus expressed appreciation to the Committee for its consideration of the sewer rate adjustments. Meeting adjourned at 9:11 am. The next PUAC Meeting will be held on Thursday, March 26th, 2026, at 7:30 am