HomeMy Public PortalAboutExhibit MSD 30H - 2018 Project Clear Update and Stormwater Capital Rate ProposalMSD Project Clear Update &
Stormwater Capital Rate Proposal
March 2018
MSD System Overview & Details
Government Utility
–State Constitution
–Voter Approved Charter
–6 Member Board of Trustees (3
City, 3 County)
Two utilities: wastewater
and stormwater
520 square mile service area
–All of St. Louis City
–87% of St. Louis County
~1,300,000 customers
90 municipalities served
2
7 treatment plants
350+ million gallons/day
wastewater treated
4,744 miles of sanitary sewers
1,806 miles of combined
sewers
3,028 miles of stormwater
sewers
4th largest sewer system in
US (by miles of sewers that
handle wastewater)
Wastewater /
MSD Project Clear
3
Example of Overflow in Combined Sewer
System
Background
Combined sewers were built in the mid-19th century, before MSD’s inception, to carry
rainwater and sewage away from people’s homes.
Reasons for Combined Sewers Overflow
In dry weather sewers work fine. Sewage is treated at a treatment plant before
being released back into the environment.
During heavy rainstorms, combined rainwater and sewage exceed capacity of
sewer system and overflow into local waterways.
Overflows help keep sewers from backing up into streets and basements.
4
5
Sewer overflows – Discharge of
wastewater & stormwater into area
waterways
–Combined Sewer Overflows
–Separate Sewer Overflows
Basement backups
1992 to 2012 - ~$2.7 billion to
remove 350+ overflows
MSD Project Clear
The initiative to improve water
quality and alleviate many
wastewater concerns in the St.
Louis region. Investment of billions
of dollars over a generation in
planning, designing, and building
community rainscaping, system
improvements, and an ambitious
program of maintenance and
repair
Part of an agreement (Consent
Decree) with the US EPA and
Missouri Coalition for the
Environment
Calls for $4.7 billion over 23 years
FY92-12 Removal
FY13-16 Removal
FY17-20 Removal
Overflows Remaining To
Be Addressed
3 Focus Areas for MSD Project Clear
Repair &
Maintain Build
System
Improvements
Get the
Rain Out
6
Stormwater
Disconnections**
Rainscaping/Green
Infrastructure*
CitySheds Program*
Combined Sewer
Separations*
System Maintenance
System Inspection
System
Rehabilitation and
Replacement
Fats, Oil and Grease
Control Program
Emergency Response
Tunnels
Storage Tanks
Relief Sewers
High-Rate
Treatment*
Build System
Improvements Get the
Rain Out Repair &
Maintain
*Combined sewer area only activities
7 **Separate sewer area only activities
MSD Project Clear Highlights*
*Unless noted, through June 30, 2017
$14 million in Green Infrastructure/Rainscaping –MSD Projects, Large Grant & Small Programs, Community Engagement &
Education
CityShed Program –230 Property buyouts in areas where sewer system floods and basement
backups are chronic
Repair & Maintenance (July 1 thru December 31, 2017) –Emergency Response Rate goal is 90% under 4 hours = Current is 94% –Maintenance Related Building Backups goal is under 210 = Current is 58 –Maintenance Related Overflows goal is under 80 = Current is 66
787 miles of wastewater sewers rehabilitated
8
MSD Project Clear Highlights (con’t)*
*Unless noted, through June 30, 2017
$230 million in relief sewers constructed
8 Tunnels at an estimated cost of $1.9 billion –Lemay Redundant Force Main (Complete) –Maline Creek (50% complete) –Deer Creek (just underway) –Jefferson Barracks (just underway) –Lower Meramec –Lower & Middle River des Peres –River des Peres Tributaries –Upper River des Peres
9
On Time & Under Budget / Future Costs
Launch date for MSD Project Clear was July 1, 2012 –Some projects included in agreement started prior to this date
July 1, 2012, through June 30, 2017 Results (First 5 years of MSD
Project Clear) –63 overflows removed –Cost projection reported to Rate Commission = $1.30 billion –Actual spending on wastewater projects = $1.17 billion
Future Affordability & Conversations w/EPA –$4.7 billion over 23 years a “fair deal” –Extend years to allow for other regulatory work that is unrelated to the
Consent Decree
10
MSD Project Clear Diversity
11
Program dating back to 1990s
MSD Project Clear represents a generational opportunity
2012 Disparity Study
–Prior to the disparity study, program based on goals and participation
by all Minority and Women Owned Business Enterprises (MWBE); not
by individual ethnicities and gender.
•Goals based on staff discussion with individual minority, women, and
majority vendors, and industry or trade associations that collectively
represent them.
–Disparity study broke down diverse groups by ethnicity/gender and
then by contract type to identify where the participation percentage
for a particular group in MSD’s capital program was greater than the
percentage of availability; equal to the percentage of availability; or
less than the percentage of availability.
•5 years of data used for study
113 Project Awards $170,684,959.78
•90 Non Building (5 Immediate Need/Emergency)
(17% African American)
• 2 Building Construction (1 Emergency)
(30% MBE African American/Hispanic)
•18 State Funded (10% MBE/10% WBE)
• 3 Under $50K-No Goals
M/WBE Commitments $32,600,022.54 (19.10%)
•MBE = $28,229,442.79 (16.5%)
•WBE = $4,370,579.75 (2.6%)
M/WBE Active Contract Payments $34,226,147 (18.40%)
Total Payments to Primes = $185,906,025
•MBE = $ 31,417,096 (16.9%)
•WBE = $ 2,809,050.87 (1.5%)
FY2017 (July 1, 2016, to June 30, 2017) Capital Project
Construction Utilization
12
FY2017 Construction Workforce Utilization
13
Construction WF Goals Total Project Hours Worked
•Building Const: 30%M/7%W Building Const: 69,301
Hours
•40% Apprentice (if used)
•Non-Building Const: 30%M/7%W Non-Bldg Const: 1,057,727
Hours
•40% Apprentice (if used)
•State Funded Const: 14.7M/6.9%W State Funded Const: 462,221
Hours
Total Project Hours Worked: 1,589,250 Hours
*Workforce applies to construction contracts exceeding $500,000
**Workforce applies to State Funded Construction contracts exceeding $10,000
Q1-Q4 FY2017 CIRP Construction
Workforce Utilization Program
14
FY2017 (July 2016 – June 2017)
CATEGORY MANHOURS COMPARED TO
CONTRACT GOAL
MINORITY 460,077 (28.95%) 54,021 OVER
WOMEN 77,021 (4.85%) -33,763 UNDER
APPRENTICE 50,427 (76.37%) 24,015 OVER
Stormwater Proposal Submitted
to MSD Rate Commission On
February 26, 2018
15
Current Status of Stormwater Funding &
Services
•Voters passed Proposition S in April 2016.
•The issue addressed by Proposition S was unequal storm sewer
operations and maintenance funding across our service area.
•Proposition S simplified and equalized these services with regard
to operations and maintenance in the public storm sewer system.
•Now, MSD is exploring options to fund District-wide capital
projects addressing erosion and flooding.
16
Current District Funding:
$0.0197 regulatory tax
+ $0.10 stormwater tax
= $0.1197 total tax rate
•Includes regulatory compliance
•Includes complete operations
and maintenance
•Includes limited funding for
necessary capital
improvements:
−FY17-20 = ~$67M
Stormwater Capital
Program (FINITE
PROGRAM)
Current Status of Stormwater Funding &
Services
18
Regional
Flooding Erosion
STORMWATER PROPOSAL:
Unfunded Stormwater Issues
Localized
Flooding
~500 unfunded
erosion and
flooding issues
~$562 million
estimated
construction cost
* Based on November 2017
data
STORMWATER PROPOSAL: Unfunded
Stormwater Issues
* Map locations are approximate
" M S D w i l l i m p l e m e n t a S t o r m w a t e r C a p i t a l R a t e t o f u n d a $ 3 0 m i l l i o n p e r y e a r
s t o r m w a t e r c a p i t a l p r o g r a m .
"T h e S t o r m w a t e r C a p i t a l R a t e w i l l b e b a s e d o n t h e a m o u n t o f i m p e r v i o u s
a r e a o n e a c h c u s t o m e r s p r o p e r t y .
"A v e r a g e c h a r g e f o r a s i n g l e f a m i l y h o m e w i l l b e $ 2 . 2 5 p e r m o n t h o r $ 2 7 . 0 0
p e r y e a r .
"T a x e x e m p t e n t i t i e s w i l l b e s u b j e c t t o t h e S t o r m w a t e r C a p i t a l R a t e .
" S t o r m w a t e r C a p i t a l P r o g r a m w i l l a d d r e s s u n f u n d e d s t o r m w a t e r i s s u e s ( i . e . ,
l o c a l i z e d f l o o d i n g , e r o s i o n , a n d r e g i o n a l f l o o d i n g ) .
"E s t i m a t e s a r e t h a t a l l c u r r e n t l y i d e n t i f i e d i s s u e s c o u l d b e a d d r e s s e d i n ~ 3 0
y e a r s .
"C r e e k s , s t r e a m s , e t c . r e m a i n p r i v a t e l y o w n e d .
"F l o o d p l a i n m a n a g e m e n t r e s p o n s i b i l i t i e s r e m a i n w i t h m u n i c i p a l i t i e s .
" L e v e e D i s t r i c t s u n d e r a g r e e m e n t s w / M S D e x e m p t f r o m p r o p o s e d S t o r m w a t e r
C a p i t a l R a t e , a s s e r v i c e s a r e p r o v i d e d t h r o u g h t h e D i s t r i c t s .
2 0
S t o r m w a t e r C a p i t a l F u n d i n g P r o p o s a l
" T h e p r o p o s e d r a t e w a s d e t e r m i n e d b a s e d o n t h e r e c o m m e n d e d c a p i t a l
i m p r o v e m e n t p r o g r a m ( ~ $ 3 0 m i l l i o n a n n u a l l y ) d i v i d e d b y t h e e s t i m a t e d n u m b e r
o f E q u i v a l e n t R e s i d e n t i a l U n i t s ( E R U ) w i t h i n M S D s s e r v i c e a r e a .
" A n E R U i s a u n i t o f i m p e r v i o u s s u r f a c e a r e a .
"E a c h E R U e q u a l s 2 , 6 0 0 s q u a r e f e e t .
"E a c h E R U c h a r g e d a t $ 2 . 2 5 p e r m o n t h .
" M u l t i - f a m i l y , c o m m e r c i a l c u s t o m e r s , a n d o t h e r n o n - r e s i d e n t i a l c u s t o m e r s w i l l b e
c h a r g e d b a s e d o n p r o p e r t y s i z e d i v i d e d i n t o E R U s .
"E x a m p l e : C o m m e r c i a l c u s t o m e r w i t h 1 0 , 0 0 0 s q u a r e f e e t o f i m p e r v i o u s a r e a
e q u a l s 4 E R U s .
" S i n g l e - f a m i l y r e s i d e n t i a l c u s t o m e r c h a r g e s w i l l b e c a l c u l a t e d u s i n g a 4 - t i e r
s y s t e m t h a t d i f f e r e n t i a t e s b e t w e e n t h e a m o u n t o f i m p e r v i o u s s u r f a c e a r e a o n
i n d i v i d u a l p r o p e r t i e s .
"T i e r r a n g e s w e r e d e v e l o p e d u s i n g E R U a s r e f e r e n c e p o i n t .
"T i e r s a r e a n a c c e p t a b l e a n d c o m m o n i n d u s t r y p r a c t i c e .
"U s i n g 4 t i e r s s h a r e s t h e c o s t o f t h e s e s e r v i c e s m o r e e q u i t a b l y a m o n g s t
c u s t o m e r s .
2 1
S t o r m w a t e r C a p i t a l R a t e C a l c u l a t i o n
Note: Fiscal Year 2022 revenue is shown as the full rate that will be charged at the
beginning of MSD’s Fiscal Year 2022 (July 1, 2021, through June 30, 2022).
22
Stormwater Capital Rate Calculation
Properties/ERUs
Monthly
Rate
FY22 Annual Billed
Revenue
Residential Properties
Tier 1: 200 - 2,000 Sq. Ft 120,523 1.42$ 2,050,096$
Tier 2: 2,001 - 3,600 Sq. Ft 218,750 2.25$ 5,906,250$
Tier 3: 3,601 - 6,000 Sq. Ft. 80,469 3.74$ 3,606,621$
Tier 4: >6,000 Sq. Ft. 27,122 6.84$ 2,226,174$
Customer Assistance Program Accounts 6,328 1.13$ 85,428$
Subtotal: Residential Properties 453,192 properties 13,874,569$
Non Residential & Multi-Family ERUs 601,353 ERUs 2.25$ 16,236,531$
30,111,100$
Customers
23
Billing Frequency
•The Stormwater Capital Rate will be appear on the
monthly bill of MSD customers that are also billed for
wastewater.
•Customers not billed for wastewater with properties
containing more than 20 ERUs will be billed monthly.
•All other customers not receiving MSD wastewater
services will be billed on a quarterly basis.
Impervious Based Rate Rationale
•Aug 2007: Rate Commission recommended various MSD taxes and 24¢ fee be replaced
by stormwater impervious fee.
•Dec 2007: MSD Board approved Rate Commission recommendation to implement
impervious fee.
•Mar 2008: Impervious fee implemented.
•July 2008: Zwieg vs MSD lawsuit, challenging the impervious fee, is filed.
•Aug 2010: MSD suspended impervious fee and reinstituted various taxes and 24¢ fee.
•July 2008 - Nov 2013: Circuit, Appellate, and Missouri Supreme Courts declared the
impervious fee unconstitutional without voter approval.
•July 2008 - Nov 2013: Courts unanimously agreed MSD not required to refund
impervious fee revenue that was collected and spent on stormwater services.
•Aug 2015: Rate Commission recommended MSD consider an impervious based
stormwater fee in the future.
•Jan - June 2017: Public outreach and surveying shows that an impervious based rate is
the preferred method for funding a stormwater capital program.
24
" I m p e r v i o u s a r e a i s a h a r d e n e d s u r f a c e s u c h a s c o n c r e t e , b l a c k t o p , a r o o f t o p ,
c o m p a c t e d g r a v e l t h a t d o e s n o t a b s o r b s t o r m w a t e r ; a n d w h i c h g e n e r a t e s
s t o r m w a t e r r u n o f f .
" F l o o d i n g a n d e r o s i o n s e r v i c e s b e i n g p r o p o s e d u n d e r t h e n e w S t o r m w a t e r C a p i t a l
R a t e a r e d i r e c t l y i m p a c t e d b y t h e v o l u m e o f s t o r m w a t e r r u n o f f c r e a t e d b y
i m p e r v i o u s a r e a o n e a c h p r o p e r t y .
" F a i r e s t w a y t o d e t e r m i n e r e v e n u e c o n t r i b u t i o n o f e a c h p r o p e r t y i s t h r o u g h a n
i m p e r v i o u s a r e a m e a s u r e m e n t m e t h o d .
" A l l p u b l i c a n d p r i v a t e p r o p e r t y , i n c l u d i n g p r o p e r t i e s o w n e d b y g o v e r n m e n t a l a n d
n o n p r o f i t e n t i t i e s , w i l l b e s u b j e c t t o t h e S t o r m w a t e r C a p i t a l R a t e .
" F u n d i n g w o u l d b e r e d u c e d b y ~ 1 5 % i f i t i s l a t e r d e t e r m i n e d t h a t g o v e r n m e n t a l
a n d n o n p r o f i t e n t i t i e s s h o u l d n o t b e s u b j e c t t o t h e S t o r m w a t e r C a p i t a l R a t e .
2 5
I m p e r v i o u s B a s e d R a t e R a t i o n a l e ( c o n t )
26
•Proposal submitted by staff to Rate Commission on February 26, 2018.
•Rate Commission has up to 165 days (includes 45 days extension) to review
proposal and make a recommendation to MSD’s Board of Trustees.
•Technical Meetings April through May 2018 (schedule could change based
on Rate Commission needs).
•Public Hearings May 8, May 15, May 17, May 22, May 30, June 6, & June 8.
•Under current schedule, project a Rate Commission recommendation in
June/July.
•If approved, earliest vote possible April 2019.
•If applicable, new rate will be effective January 2020.
Rate Commission Timeline For Stormwater
Capital Rate Proposal
Questions?
www.stlmsd.com
@YourMSD
Your MSD
www.stlmsd.com/ratecommision
-------
Lance LeComb, Manager of Public Information &
Spokesperson
Ph: (314) 768-6237 --or-- llecomb@stlmsd.com 27