HomeMy Public PortalAboutExhibit MSD 54 - Surrebuttal Testimony of Brian Hoelscher, MSDMSD Exhibit No. MSD 54
2018 Stormwater Rate Proceeding
BRIAN L. HOELSCHER
Surrebuttal Testimony
Metropolitan St. Louis Sewer District
May 25, 2018
Table of Contents
Page
Stormwater Capital Improvement and Replacement Program (CIRP) ......................................... 1
Cost-Sharing……………………………………………………………………………………...3
Surrebuttal Testimony of Brian L. Hoelscher, MSD May 25, 2018
2018 Stormwater Rate Proceeding 1 MSD Exhibit No. MSD 54
Stormwater Capital Improvement and Replacement Program (CIRP) 1
Q1. Do you feel the Stormwater CIRP is prudent and reasonable? 2
A. Yes, the MSD Charter (Exhibit MSD 4) provides broad powers to the District to insure 3
adequate stormwater drainage throughout the District. Article 3 Section 3.020 (1) 4
empowers the District “to maintain, operate, reconstruct, and improve the same as a 5
comprehensive sewer and drainage system, and to make additions, betterments, and 6
extensions thereto; to protect the public health and welfare by preventing or abating the 7
pollution of water; and to have all the rights, privileges, and jurisdiction necessary or 8
proper for carrying such powers into execution. No enumeration of powers in this Plan 9
shall operate to restrict the meaning of this general grant of power or to exclude other 10
powers comprehended within this general grant.” 11
Q2. Is it appropriate to make stormwater improvements on both public and private 12
properties? 13
A. Yes, it is appropriate to make stormwater improvements on both public and private 14
properties. Again, referencing Article 3 of the MSD Charter, Section 3.020(2) empowers 15
the District “[t]o prepare or cause to be prepared and to revise and adopt plans, designs, 16
and estimates of costs, of a system or systems of outfall sewers, trunks, mains, submains, 17
interceptors, lateral sewers, outlets for sewerage, storm water drains, pumping and 18
ventilating stations, disposal and treatment plants and works, and any and all other 19
structures, systems, works, and things which, in the judgment of the Board, will provide 20
an effective and advantageous means for insuring the area within such District of 21
adequate sanitary and storm water drainage and of adequate sanitary disposal and 22
treatment of the sewage thereof, or such sections or parts of such system or systems as 23
Surrebuttal Testimony of Brian L. Hoelscher, MSD May 25, 2018
2018 Stormwater Rate Proceeding 2 MSD Exhibit No. MSD 54
the Board may from time to time deem necessary or proper to construct, consistent with 1
the purposes of this Plan, and to take any and all such steps as the Board may deem 2
necessary and proper to effect the purposes hereof.” Section 3.020(6) further allows for 3
the District “[t] own, hold, control, and acquire by donation, purchase, contract, lease, 4
or by the exercise of the power of eminent domain any and all rights of property, either 5
public or private, of every kind and character necessary for the purposes of the District.” 6
As stated in previous testimony and discovery, projects that are part of the MSD CIRP 7
are constructed on public property and/or private property within acquired easements as 8
allowed by Charter. Continuing, Section 3.020(7) allows the District “[t]o contract with 9
municipalities, districts, other public agencies, individuals, or private corporations, or 10
any of them whether within or without the District, for the construction, use, or 11
maintenance of common or joint sewers, drains, outlets, and disposal plants, or for the 12
performance of any service required by the District.” Section 3.020(15) goes on to allow 13
MSD “[t]o meet the cost of acquiring, constructing, improving, or extending all or any 14
part of the sewer or drainage facilities and systems: (a) through the expenditure of any 15
funds available for that purpose …”. And finally, the District as stated in Section 16
3.020(19), has specific powers “[t]o approve, revise, or reject the plans and designs of 17
all outfall sewers, trunks, mains, submains, interceptors, lateral sewers, outlets for 18
sewerage, storm water drains, pumping and ventilating stations, and disposal and 19
treatment plants and works proposed to be constructed, altered, or reconstructed by any 20
other person or corporation, private or public, in the District. No such sewer or drainage 21
facilities shall be constructed or reconstructed without the approval of the District. Any 22
such work shall be subject to inspection and supervision of the District.” 23
Surrebuttal Testimony of Brian L. Hoelscher, MSD May 25, 2018
2018 Stormwater Rate Proceeding 3 MSD Exhibit No. MSD 54
Cost-Sharing 1
Q3. Please describe how MSD handles cost-sharing offers with other public or private 2
entities, including municipalities, in the funding of stormwater capital projects. 3
A. In an effort to be fair and reasonable to all classes of rate payers, MSD has always been 4
receptive to teaming with other entities in the full or partial outside funding of stormwater 5
capital projects. Examples include individuals, municipalities or private companies 6
completely funding their project or using partial funding from MSD to execute their 7
projects. MSD plans to continue with this policy as long as the use of MSD funding does 8
not delay the execution of other scheduled projects that have a higher priority. As has 9
previously been testified to, the potential use of outside funding will have no effect in the 10
priority calculation for each project. In calculating the cost of a project in determining 11
the benefit-cost ratio, cost shall always be the cost to complete the project, regardless of 12
the source of funding. This process insures that the value of the stormwater capital 13
dollars from all rate payers will be weighed equally and not be influenced by the ability 14
of a third party source to provide additional funding to the process. 15
Q. Does that conclude your proposed direct testimony in this matter? 16
A. Yes. 17