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12-Why are Salt Lake County water rates 176% to 496% higher than Orem water rates? (SLC)

Please help break the Salt Lake City water monopoly by calling the Governor’s Hot-line 801-538-1045 and leave this message: “Please break the Salt Lake City water monopoly.”

Salt Lake City water utility has approx. 1 employees per 346 water connections with a water district tax 733% higher than Orem’s versus Orem City water utility which has approx. 1 employees per 833 water connections.

This means that the salary, health insurance, retirement, and any other cost for one (1) employee are carried by just 357 water connections. If it costs $50,000 total compensation per employee, then divided that by 357 yields $140 per connection per year in Salt Lake City versus Orem’s employee operation cost of $60 per connection.

A-2007 Orem has approx. 1 water employee per 833 water connections.

A-2007 Salt Lake City has approx. 1 water employees per 346 water connections.

B-2007 Orem water rate is 55 cents per 1,000 gallons without tiered billing.

B-2007 Salt Lake City water rate $1.14 to $3.28 per 1,000 gallons with tiered billing.

C-1988 Orem water rate is 26 cents per 1,000 gallons without tiered billing.

C-1988 Salt Lake City water rate 51 cents to 75 cents per 1,000 gallons with tiered billing.

D-rate from Metro-Water District of Orem is .000042 (1/8th of Salt Lake Citys).

D-2007 Property tax rate from Metro-Water District of Salt Lake & Sandy is .00035 (733% higher than Orems property tax). [SLC outside corporate general water sales business] just like a monopoly,  [CPA, Salt Lake City Public Utility Finance Administrator James M.] Lewis said. Lewis said the benefit would be for public relations with county customers who have no representation on the City Council or with the Public Utilities Advisory Panel, which recommend the rate restructuring. And without representation, those county customers might feel they are getting a raw deal if higher rates are approved. “Water fee may soar in county, Deseret News March 21, 2003.

Before the vote, there was much public comment on both sides. Many Salt Lake County residents were miffed that they pay more for water than city customers. Given the uproar, the council decided to reduce county customers rates from 1.5 times what the city resident pays to 1.35 times what city residents pay. The extra amount is to compensate for property tax payments that city residents pay to the Metropolitan Water District of Salt Lake. S.L. boosts water rates for wasters Deseret News April 23, 2003.

How much excess profit may Salt Lake City be making off Salt Lake County customers residing outside Salt Lake City limits?  Page 4 of this site has a rough estimate.

Over the next 35 years, Salt Lake Citys un-needed State “surplus water sales business selling water outside city limits will sell 830,303.25 acre-feet of water or 270 Billion gallons of water for 557 Million Dollars.

In order to sell water outside city limits, the city must classify the water as un-needed, temporary œsurplus. There is no such thing as permanent surplus city water. If water is permanently surplus, then under the doctrine of beneficial use (73-1-3) that water automatically reverted to the State.

It would appear that it is illegal for water classified as surplus or surplus sales contracts to be used to meet permanent and perpetual state water requirements of building permits or city connections.Salt Lake County water rate payers are disenfranchised by having no elected voice in Salt Lake City government, and no voice in the Public Service Commission regarding their water rates which are 35% higher than in Salt Lake City rates and 143% to 420% higher than Orem City water rates .

Salt Lake County water rates from Salt Lake City compared with Orem City rates:Salt Lake County on summer water rates: $1.52 per 1,000 gallons on 1st Tier which is 176% more than the Orem resident rate $2.37 per 1,000 gallons on 2nd Tier which is 331% more than the Orem resident rate$3.28 per 1,000 gallons on 3rd Tier which is 496% more than the Orem resident rate Why are the water rates so high for Cottonwood Heights? Why are Salt Lake County water rates 143% to 420% higher than Orem City water rates? The water quality is comparable. The water sources are comparable

(In 2006, Orem City used 26,548.94 Acre-feet 55% Treated, 27% Well water, and 18% spring water).Connections per foot of pipe are comparable.

Based upon economy of scales, Salt Lake City water rates should be lower. Q: What causes the dramatic uptick in Salt Lake City water operating costs which result in 35% higher water rates in Salt Lake County than Salt Lake City which rates are 80% to 283% higher than Orem City water rates?A: Could it be that operating costs are increased by the chronic protesting, chronic litigating, chronic blocking, obstructing, implementing extreme green environmental policies, using the water department to control planning and zoning on 125,000 acres of canyons outside city limits, and to control water in cities? In 2006, Orems Water Section maintained 333 miles of main line from 4 to 48 in diameter and 121 miles of service lines, totaling 454 miles of pipe. There are 19,068 residential service connections, 2,160 commercial service connections, totaling 21,228 service connections. Page 15-16 2006 Annual Report

If Salt Lake County residents could receive similar efficient and well managed water services like Orem Citys, then residents may see up to a 50% reduction in their water bills with comparable water quality and service.

Note: $1.14 per 100 cubic feet of water is $1.14 per 748 gallons ($1.52 per 1,000 gallons). $1.77 per 100 cubic feet is $1.77 per 748 gallons ($2.37 per 1,000 gallons), and $2.45 per 100 cubic feet of water is $2.45 per 748 gallons ($3.28 per 1,000 gallons). 748 gallons ($3.28 per 1,000 gallons).

1-Protest On Salt Lake City Water Rights 57-9301 (a1875) For 2.55 AF 2-140,000 Disenfranchised Rate Payers (31,231 Outside SLC Connections) With No Elected Voice In SLC Govt. & No Voice In Public Service Commission

3-Orem City Flat Water Rate $0.55 per 1,000 Gallons 4-Salt Lake City Water Rules July 1, 2007 $1.14 to $3.28 Per 1,000 Gallons

5-Salt Lake City Public Utilities Rate Structure History 1957 thru 2003 6-Salt Lake City Public Comment June 12, 2007

7-May 2007 Protest Review 1,737 SLC Protests v 7 Orem Protests for The Same Period 8-Salt Lake City Water Monopoly Article June 17, 2007 Daily Herald

9-Operating A For Profit Water Business On 140,000 Disenfranchised Salt Lake County residents is not a regular function of a city water department. 10-Salt Lake City Council Public Comment July 17, 2007

11- 12-Orem City Water Rates 1988 thru 2007 v Salt Lake City Water Rates 1988 thru 2007

13-Q:The amount of water in acre-feet Salt Lake City claims it owns estimated within 10,000 acre-feet? GRAMA Response--No Record. 14-Q:The amount of money billed for each year [surplus water sold outside SLC limits]? GRAMA --No record

15-PSC Response to no overisigt on SLC water rates charged to SL County residents 16-PSC This is a real issue of concern.