Loading...
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