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HomeMy Public PortalAboutExhibit MSD 61 - Transcript of the May 22, 2018 Public Hearing RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 1 1 TRANSCRIPT OF PROCEEDINGS 2 3 Rate Commission Public Hearing 4 May 22, 2018 5 Maryland Heights Community Center 6 7 8 9 10 11 12 13 14 15 REPORTED BY: 16 Ms. Julie Johanning, CCR Alaris Litigation Services 17 711 North Eleventh Street 18 St. Louis, Missouri 63101 19 314-644-2191 20 21 22 23 24 25 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 2 1 2 3 4 TRANSCRIPT OF PROCEEDINGS 5 6 Rate Commission Public Hearing 7 May 22, 2018 8 Maryland Heights Community Center 9 10 11 12 13 14 15 16 17 TRANSCRIPT OF PROCEEDINGS OF THE RATE 18 COMMISSION PUBLIC HEARING on the 22nd day of May, 2018, 19 between the hours of 6:05 p.m. in the evening and 7:25 p.m. 20 in the evening of that day, at Maryland Heights Community 21 Center, 2300 McKelvey Road, Maryland Heights, Missouri, 22 before JULIE A. JOHANNING, Certified Court Reporter within 23 and for the State of Missouri. 24 25 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 3 1 A P P E A R A N C E S 2 3 4 MSD FY2018 RATE COMMISSION: 5 6 Mr. Steve Mahfood, Chairman 7 Missouri Coalition for the Environment 8 9 Mr. Lloyd Palans City of Ladue 10 11 Mr. Brad Goss HBA 12 13 Mr. Chan Mahanta North County, Incorporated 14 Mr. Don Bresnan 15 Greater St. Louis Labor Council 16 17 ALSO PRESENT: 18 Mr. Brian Hoelscher MSD - Executive Director & CEO 19 20 21 22 23 Ms. Julie Johanning, CCR 24 Alaris Litigation Services 711 North Eleventh Street 25 St. Louis, Missouri 63101 314-644-2191 25 314-644-2191 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 4 1 (Hearing commenced at 6:05 p.m.) 2 MR. MAHFOOD: I think we're going to go ahead 3 and get started. It's five after six and we've had -- we 4 have so far limited attendance. I'd just ask that 5 everybody just be flexible if we have somebody come in. 6 I'm hoping that we'll have a lot of people come in as we go 7 through this. You probably saw that there is a sign-up 8 sheet at the door for anybody who wants to speak. I would 9 appreciate you signing up over here on the list. And we'll 10 be -- we'll be talking about that in just a few minutes. I 11 think you probably -- good evening. 12 MS. SEID: Hi. 13 MR. MAHFOOD: How are you doing? 14 UNIDENTIFIED SPEAKER: Good. 15 MR. MAHFOOD: Good. We've got -- I think you 16 know where the exits are, how to get into the room. 17 Restrooms are right off to the right here, pretty 18 accessible. 19 And what we're going to do this evening will 20 entail a few different parts. I'm going to read a 21 statement here in just a minute or so. Then we're going to 22 hear from the Metropolitan Sewer District on the stormwater 23 rate plan. Then we will be here and I will be chairing and 24 receiving the comments from the public and any other 25 questions that the public may have, and I'll get these to RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 5 1 the MSD staff as needed. And then we'll go from there. So 2 I'm going to go ahead and read a standard background that I 3 think would be very important for you all to hear, and I'm 4 going to get started on that right now. 5 I'll just say good evening. My name is Steve 6 Mahfood, and I'm one of the members of the Rate Commission. 7 With me here -- next to me here is Lloyd Palans. Next to 8 him is Brad Goss, Chan Mahanta and Don Bresnan. And we're 9 all from varying and different backgrounds, all serving as 10 volunteers on the Metropolitan Sewer District's Rate 11 Commission. 12 Now, the charter plan of the district was 13 amended at a general election on November 7th of 2000 and 14 established at that time the Rate Commission to review and 15 make recommendations to the District regarding changes in 16 wastewater rates, stormwater rates, and tax rates proposed 17 by the District. The charter plan requires the MSD Board 18 of Trustees to select organizations to ensure a fair 19 representation of all users of the District's services on 20 the Rate Commission. The Rate Commission representative 21 organizations are to represent commercial/industrial users, 22 residential users, and other organizations interested in 23 the operation of the District including organizations 24 focusing on environmental issues, labor issues, 25 socioeconomic issues, community neighborhood organizations, RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 6 1 and other non-profit organizations. The MSD Rate 2 Commission currently consists of 15 members from 3 organizations and institutions throughout St. Louis City 4 and County. 5 On February 26, 2018, the Rate Commission 6 received a rate change notice proposing changes to the 7 District's stormwater rates. Now, the Rate Commission 8 adopted an operational rules and procedure schedule to 9 govern the proceedings, and we did that on March 4th of 10 2018. And all this is happening in open meetings. 11 Under the current procedural schedule adopted 12 by the Rate Commission, the MSD Rate Commission has until 13 June 26th to review and make a recommendation to the MSD 14 Board of Trustees as to whether the proposed rates should 15 be approved. I think I might have -- yeah, that's the 16 correct date, to review and make a recommendation to the 17 MSD Board. The Commission requested an extension from the 18 MSD Board of Trustees until August 10th of 2018, and that 19 was granted on May 1st of 2018. The Commission considered 20 on May 17th a new revised schedule including the extension, 21 time extension, and that was granted by the MSD Board. The 22 MSD Rate Commission has engaged legal counsel and a rate 23 consultant independent of those used by the Metropolitan 24 Sewer District staff. 25 Under the procedural rules adopted by the Rate RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 7 1 Commission as they were amended, any person affected by the 2 rate change proposal has an opportunity to submit an 3 application -- or had an opportunity to submit an 4 application to intervene on these proceedings. An 5 application to intervene has been filed by the Missouri 6 Industrial Energy Consumers. That application was granted 7 and they are involved with this process. 8 Since February 26th of this year, the MSD Rate 9 Commission has received testimony from MSD staff, the rate 10 consultant that we have, and intervenors. The parties have 11 also engaged in formal discovery requests. Pre-hearing 12 conference for the purpose of identifying any issues raised 13 by these rate setting documents that were provided and the 14 prepared testimony previously submitted will and have been 15 all conducted on record, court reporters, and in public 16 meetings. 17 All persons submitting testimony may 18 participate in the pre-hearing conference, and each 19 participant at the pre-hearing conferences shall submit a 20 pre-hearing conference report describing the issues raised 21 by the rate setting documents and to prepare testimony 22 together with a brief description of such participant's 23 position, if any, on each of the issues and their rationale 24 for questioning whatever it is that they may have been 25 concerned with. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 8 1 Rate payers who do not wish to intervene in 2 that formal process are permitted to participate in these 3 on-the-record public hearings conducted in seven sessions 4 that began on May 8th, 2018. Now, the Rate Commission 5 published a notice regarding these proceedings in the 6 Post-Dispatch, St. Louis Post-Dispatch, and St.~Louis 7 American, and in a whole number of other sites and in 8 contact with local municipalities. These notices contained 9 the time, dates and location of each of the conferences and 10 hearings. And I'll tell you in just a second, we have some 11 more coming up after this one. 12 The public hearing session today is for the 13 purpose of permitting the District to present its 14 stormwater rate change proposal and to permit any rate 15 payer an opportunity to comment or ask questions. We're 16 going to begin, as I said before, with a presentation by 17 the District followed by a public comment period. The 18 District is going to be presenting a lot of information, so 19 I'd ask that you hold your questions until the comment 20 period, as perhaps many of your initial questions might be 21 answered in the presentation. 22 Those wishing to speak, again, should sign on 23 a sheet provided up at this desk. Please feel free to get 24 up even in the middle of all of this. Let's not be too 25 formal. If you want to sign up, that works great. Because RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 9 1 we'll use the list as the order in which we call on people 2 if they so desire to ask a question or make a comment. And 3 I ask that each rate payer identify themselves and any 4 organizations that they might represent, if they do 5 represent an organization. 6 A couple of housekeeping rules, sign up as we 7 said. Speakers will be recognized in the order in which 8 they sign up. Try to hold things to up to no more than ten 9 minutes. But that's up to my judgment as to how that goes. 10 If you've not already done so, please turn off your cell 11 phones if you can. And I think I already said, we know 12 where the doors are and we know where the restrooms are 13 right out the side door there. 14 Before I ask the District to come up and 15 proceed, I wanted to ask anybody, have any initial 16 questions, just to ask? Yes, ma'am? 17 MS. SEID: How long will the presentation 18 take? 19 MR. MAHFOOD: Oh -- 20 MS. SEID: Not counting discussion, I'm sorry. 21 MR. HOELSCHER: 15, 20 minutes. 22 MS. SEID: Okay, thank you. 23 MR. MAHFOOD: Any other questions? Yes, 24 ma'am? 25 MS. SHENKER: You will not have anything here RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 10 1 where you can project something on the screen here at all, 2 correct? 3 MS. SEID: I thought that's what -- 4 MR. MAHFOOD: Yeah, that's what -- he'll be 5 presenting using -- 6 MS. SHENKER: He will be presenting it? 7 MR. MAHFOOD: Yes, ma'am. 8 MS. SHENKER: Okay. So like the public notice 9 that was in the paper showing the rates and what it was 10 going to be will be shown? 11 MR. MAHFOOD: Yes, it will. 12 MS. SHENKER: Okay. Thank you. 13 MR. MAHFOOD: He will go through a whole 14 explanation. And please, if you have questions or you see 15 something that you don't -- you think is confusing or not 16 clear, write it down and please follow up with it. Don't 17 hesitate, please. 18 MS. SHENKER: Thank you. 19 MR. MAHFOOD: Okay. With that, I'll ask 20 Director Hoelscher to come up and do his thing. 21 MR. HOELSCHER: I'll go over here so I'm close 22 enough to everybody. Brian Hoelscher. I'm the Executive 23 Director and CEO here at MSD. We're going to give a 24 presentation on the rate proposal. I'm going to give you a 25 little background information first on MSD as a whole, then RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 11 1 I'm going to tell you where we're at with our existing 2 stormwater services, so you'll understand what services 3 we're providing now and where those revenues come from. 4 Then I'll dive into -- the balance and the majority of the 5 presentation will be what it is we submitted -- the 6 proposal we submitted in front of the Rate Commission. 7 As the Chairman indicated, after this is done, 8 any comments you have regarding that, the Rate Commission 9 is going to take comments on the rate change proposal we 10 have up here. I have a lot of staff with me in these blue 11 shirts. MSD provides a lot of other services. So after 12 this rate proposal discussion and after the Rate Commission 13 has closed the meeting, staff will hang around and answer 14 any other questions you have about any other issues at MSD. 15 We'll be able to try and answer those this evening as well. 16 So first all, an overview of MSD. We're a 17 government entity. We are created under an amendment to 18 the state constitution. We have a voter approved charter 19 which serves as kind of our set of laws as to how MSD is 20 governed. We have a three-member board of trustees -- a 21 six-member board of trustees. Three are appointed by the 22 mayor of the City of St.~Louis, three are appointed by the 23 county executive. 24 It's important to remember we are two 25 utilities, a wastewater utility and a stormwater utility. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 12 1 We collect separate sets of revenues, provide separate 2 services, and we can't mix either the providing of services 3 or those revenues. Those revenues are dedicated to those 4 two particular services. 5 We have a service area of 520 square miles, 6 which right now is all of the City of St.~Louis and just 7 under 90 percent of St.~Louis County, it's out to about 109 8 in Wildwood, 1.3 million customers, and there's 88 separate 9 municipalities located within our service area. We have 10 seven treatment plants and we treat about 11 350 million gallons of wastewater a day. And if you add up 12 the miles of sewers that you see there, you come up with 13 about 9,500 miles of sewers. That makes us the fourth 14 largest sewer system in the country just be behind Los 15 Angeles. 16 MS. SEID: Really? Wow. 17 MR. HOELSCHER: Yes, which is one of the 18 reasons we're sitting here having this discussion. 19 The most recent action was Proposition S. 20 That was in April 2016. It came to the voters. That 21 proposition passed. The issue we addressed with 22 Proposition S was that when MSD's boundaries were extended 23 in 1989 for stormwater for west of 270 and west of 24 Lindbergh, MSD became responsible for owning and operating 25 the public storm sewer system in that area as well as its RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 13 1 original area. They were given the assets to operate and 2 maintain, but there were no revenues set up to do that 3 operation and maintenance. 4 So since 1989, we owned those assets, inlets, 5 manholes, storm sewers, full concrete paved channels. We 6 owned them, but there was no money to operate and maintain 7 them. And they were starting to get in bad enough shape, 8 something needed to be done. So what happened was 9 Proposition S passed. They put a district-wide tax in 10 place throughout our entire district, so everybody for the 11 purposes of operation and maintenance of the public storm 12 sewer system pays the same tax and gets provided exactly 13 the same service. 14 So what happened with Prop S? This is a 15 summation of where things stand today. So if you see on 16 the upper left-hand corner there, there's a 0.0188 cent 17 regulatory tax. That's a two-cent per hundred dollar 18 valuation property tax that shows up on your property tax 19 bill. If you look at your latest property tax bill and 20 find the smallest number, that's MSD. That's this 21 particular tax. 22 That tax pays for the regulatory part of 23 stormwater. MSD is tasked with addressing the pollutants 24 that are in stormwater runoff that affect the water quality 25 of local creeks and streams. That number produces a RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 14 1 revenue that allows us to meet all of our regulatory needs 2 for stormwater. It's been in place since 1979 and was 3 specifically identified before the Hancock Amendment, and 4 it's been sufficient since 1979. 5 The second tax you'll see is -- it's now a 6 9.71-cent stormwater tax per hundred dollar valuation. 7 That's Proposition S that I just described. That number 8 gets adjusted based on property values. That number is in 9 place. It was only passed two years ago. It now allows us 10 to operate and maintain the storm sewer systems that we 11 own, the public storm sewer systems throughout the 12 district. 13 What the passing of Prop S did, it allowed us 14 to eliminate two revenue sources that paid for some 15 stormwater services. It allowed us to take 21 other taxing 16 subdistricts in discrete areas throughout the district that 17 were paying a special tax and set that at zero. So you 18 take those 23 different funds that had some amount of money 19 in all of them and we end up with a pot of $67 million. 20 What we command is what you see on this map. 21 If those of you -- it's still on our website if you want to 22 look. This is the map we used prior to Proposition S. 23 What you see are dots. Those dots are projects. And if 24 you went on our website and took a look, there's a number 25 inside of each one of those dots that goes to a spreadsheet RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 15 1 that says, we are going to do this project to address this 2 issue by doing this, spend this amount of money, and have 3 it done by this date. So that is on our website right now. 4 We're in the process of doing -- at least 30 percent of 5 those projects are completed. There's a lot more designed. 6 And we're working our way through $67 million worth of 7 projects for stormwater flooding and erosion throughout the 8 entire district. 9 So where that leaves us is, once we've spent 10 that $67 million for flooding and erosion, there's no more 11 money left. There's no more money coming into the pot to 12 provide that service district-wide. The rate proposal 13 we've set in front of our Rate Commission is a proposal to 14 provide a district-wide revenue to continue doing work for 15 stormwater and flooding district-wide. 16 And these are the kind of problems we're 17 talking about. Localized flooding. There's folks when 18 storms happen, either because the way yards are graded, 19 because ditches are blocked, because somebody put a 20 swimming pool through a swale, or just over time water 21 sits, doesn't get away fast enough on streets or yards. 22 This fund will help address those issues. 23 Regional flooding, and that's more like folks 24 who are next to local creeks and streams. when we get 25 real, real heavy rains they experience flooding that occurs RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 16 1 from living next to those water sources. And then along 2 with the water is erosion issues and the creek banks and 3 streams that will affect roadways, affect people's 4 properties, those types of things. These are the kind of 5 problems that are getting resolved with that 67 million I 6 indicated. These are the kind of problems we're putting a 7 rate proposal in front of the Rate Commission to say let's 8 provide -- see if the citizens would like for us to provide 9 a program to continue addressing these throughout the 10 district. 11 UNIDENTIFIED SPEAKER: Can I ask one question? 12 Does Proposition S, does that end? That funding that 13 comes, does that end in four years or something? 14 MR. HOELSCHER: No. It's a 10-cent tax that's 15 for continuous operation and maintenance of the existing 16 public storm sewer system. 17 UNIDENTIFIED SPEAKER: It's not projects? 18 MR. HOELSCHER: No, it's not projects. Now, 19 to be clear, you may see projects coming out of it. For 20 instance, we may need a project in order to replace the 21 existing systems because it's gotten old. But it's not to 22 build new systems or to address any of these issues. 23 How big is the issue? We collect stormwater 24 issues from a lot of places. Most of them come from the 25 residents. Sometimes cities will collect their residents' RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 17 1 issues and they will send them to us. We've identified 2 about 500 different issues that have been reported to us. 3 We're estimating the cost to take care of all of those 4 problems, kind of a preliminary number, is about 5 $562 million if we were to resolve all of those 6 district-wide. That's the size of the issue that we're 7 looking to try to address. 8 What's the proposal? The proposal is to 9 implement a Stormwater Capital Rate that will generate 10 $30 million a year in revenue. It will be based on the 11 amount of impervious area that's on everybody's property. 12 Impervious area is an area that when rain hits it it 13 doesn't soak into the ground because it's not grass. That 14 would be roof tops, concrete driveways, sidewalks, places 15 where rain hits and runs off. The amount of impervious 16 area you have would be the basis for the amount of 17 contribution to the program. We're planning on tax exempt 18 entities will pay this. So churches, schools, city halls, 19 airports will all pay this rate. 20 Again, we'll address the unfunded stormwater 21 issues which are flooding and erosion that exist throughout 22 the District's boundaries. Creeks and streams, as they are 23 now, will remain privately owned. They've always been like 24 that. And the management of the flood plains, as far as 25 what do you do with new development or what do you do with RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 18 1 existing development that sees flooding, those 2 responsibilities currently sit with the flood plain 3 managers at the individual municipalities in the county. 4 That's per state statute. They will remain there. They 5 will remain as flood plain managers. 6 Okay. Again, I mentioned impervious rate. 7 It's a hard surface, concrete, blacktop, roof, in some 8 cases compacted gravel. It's compacted hard enough where 9 you pour water on it and it runs off. Those are impervious 10 areas. The problems we are addressing, flooding and 11 erosion, are directly impacted by the stormwater runoff 12 that's created by impervious areas. Therefore, the fairest 13 way to determine the revenue contribution of each property 14 is to base it on the amount of impervious area on each 15 property. It's a commonly used method throughout the 16 United States for figuring out how to fund programs like 17 this. 18 I won't hit this too long. But some of you 19 may remember about ten years ago we tried to put a 20 stormwater impervious rate in place similar to our 21 wastewater rate. We followed a lot of the lessons learned 22 from a lot of states and utilities throughout the country. 23 We followed that example. By the time we got done, 24 ultimately the state supreme court indicated that that rate 25 was unconstitutional because it was not voted on. So even RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 19 1 though we followed the example from other states throughout 2 the country, it turns out the determination was in Missouri 3 we have to vote on something. So after that, also on 4 previous -- or subsequent meetings and rate proposals, the 5 rate Commission has always expressed the desire that 6 services be provided based on an impervious-based method. 7 So that's why we're moving forward. 8 Here's how the capital rate is calculated. 9 There's something called an ERU. That's Equivalent 10 Residential Unit. It is the measure of the average number 11 of square feet of impervious area on a residential 12 property. In MSD's boundaries, the average residential 13 property has 2,600 square feet of impervious area. And 14 this is as you look from up above, an aerial photography, 15 looking down. So it's the rooftop, driveways, whatever the 16 footprint is on your property. 17 The rate was determined by the recommended 18 capital improvements, which is about $30 million per year, 19 divided by the total number of ERUs. That's how we come up 20 with the proposed rate. So based on that calculation, each 21 equivalent residential unit would be charged $2.25 per 22 month. Now, that's not going to be completely clear. This 23 next slide will help show some real world examples I think 24 that will help. 25 So for single-family residential customers, RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 20 1 we're going to take the amount of impervious area you have 2 and we're going to put you into one of four tiers. Again, 3 it's a very common methodology used throughout the country 4 to determine a proper contribution for residential 5 properties for stormwater services. 6 If your residential property has between 200 7 and 2,000 square feet of impervious area, you would fall 8 into Tier 1. And the proposal is for those properties to 9 pay $1.42 per month for stormwater services. Tier 1, 10 that's about one-quarter of our residential customers fall 11 within Tier 1. If you have between 2,001 and 3,600 square 12 feet of impervious area, and that's 50 percent of our 13 residential customers -- again, the average is about 2,600. 14 So that's just about what half of the residential customers 15 in MSD's district look like. If you fall within 2,001 to 16 3,600, the rate proposal is for those properties to pay 17 $2.25 per month for the proposed stormwater services. If 18 you have a larger home with more impervious area, between 19 3,601 and 6,000 square feet, the rate is $3.74 per month. 20 And again, if you have a much larger property with 6,000 21 square feet or more, you'll be asked to pay $6.84 per month 22 under the proposal. Those are the residential customers. 23 That represents about 450,000 different buildings. 24 Okay. There are other folks. These are 25 multi-family, industrial, commercial, everybody who's not RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 21 1 residential. They are going to be billed a little bit 2 different. They are going to be billed based on the number 3 of ERUs of impervious area they have. Remember, an ERU is 4 2,600 square feet. That's the average amount of impervious 5 area for an equivalent residential unit in the district. 6 So for instance, take a commercial customer 7 who has 10,000 square feet of impervious area. If you take 8 10,000 and divide it by one ERU, which is 2,600 square 9 feet, you end up with about 3.85 ERUs. For that particular 10 commercial customer, we would round that up to four ERUs 11 and bill them at a rate of $2.25 per month. For the 12 example of this commercial customer, four ERUs times $2.25 13 would be $9 per month. That's what they would be asked to 14 pay. 15 Full collection would be starting with the 16 period July 1, 2021 to June 30, 2022. If it passes, the 17 rates would actually show up and start being collected in 18 January of 2020 if this were to move forward. 19 Where's the money -- how does that break out 20 as to where the money comes from? If you do the 21 calculation for all the single-family residential units, 22 they will generate about $13.8 million of revenue, or just 23 half of the $30 million program that we're proposing. If 24 you take the 50,000 nonresidential customers, you do the 25 calculation for them, they generate revenues of about RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 22 1 16.2 million, slightly over half the program. You add 2 those two numbers together, you get the $30 million program 3 that MSD is proposing. 4 How will it be billed? So for those 5 individuals who currently receive wastewater service, the 6 other service we provide, and get a monthly bill for 7 wastewater service, this will just be another line on your 8 bill if this passes. It will be added onto -- you know, it 9 will be added on. So that's probably the easiest way for 10 us. 11 There are 50,000 -- or let's see, how do we do 12 this? There's 50,000 customers we have that don't 13 currently get wastewater service from us. They might be 14 parking lots that don't have a wastewater service or a 15 residential unit that's on a septic tank and don't get 16 wastewater services. So in those instances, if there's a 17 customer that has more than 20 ERUs, which is 20 times 18 2,600 square feet of impervious area, we will bill them 19 monthly. That's the only bill they will get from MSD is 20 for the stormwater service. 21 We do have, again, residential customers who 22 don't have wastewater bills. So as you recall me saying, 23 what we're going to do is bill them quarterly, every three 24 months. The reason for that is if you take the average 25 customer residential, who's being charged $2.25 per month, RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 23 1 it's not cost effective for us to go through the billing 2 and collection process for a $2.25 a month bill. It would 3 end up costing us more to send the bill and collect it than 4 what we are collecting. So we're going to go ahead and 5 bill them every three months so it's a more cost efficient 6 method of collecting revenues from them. 7 There will be some incentive programs and ways 8 to reduce the cost. The most easiest is to reduce the 9 amount of impervious area on your property. For 10 residential properties, remove impervious area to drop 11 yourself to a lower tier. Some of the examples we see of 12 people doing that when we were starting the impervious 13 rate, those of you who have, for instance, concrete back 14 patios, some people took those patios up and laid pervious 15 pavers. So instead of the water hitting and running off, 16 it soaked into the ground. You do that, it's no longer an 17 impervious area and it won't count. You can lower yourself 18 into another tier. For the nonresidential who are billing 19 by ERUs, by simply eliminating one ERU, or 2,600 square 20 feet of impervious area, we will eliminate $2.25 off your 21 bill because you're one ERU less than you were previously. 22 There are some other credit systems. For 23 those properties whose runoff from their properties goes 24 directly to the Missouri, Mississippi or Meramec River, 25 we're going to give them a 70 percent credit. Those flows RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 24 1 are going to rivers that MSD has no jurisdiction over at 2 all. The reason for the 70 percent credit is 30 percent of 3 the impervious area is on things like streets, highways, 4 roads. Now, while they generate run off, they also are 5 stormwater conveyance. So that 30 percent that's left from 6 the 70 percent credit is for everybody to bear the burden 7 of having the transportation system throughout our 8 district. 9 There are best management practices. For 10 residential property, if you take 500 square feet of your 11 impervious area and get it into an area of green 12 infrastructure or something that will hold 500 square feet 13 or a one- to two-year storm, and there's details wrapped 14 around that, but if you go to the cost and expense of doing 15 that to help us hold back some water, we'll offer a 16 one-time payment of $135 towards the cost of doing that as 17 an incentive. 18 Commercial properties, instead of removing an 19 ERU, if they take that ERU and drain it to the same type of 20 facility that will hold water for small storms, we will 21 charge them 50 percent of the cost per ERU if they put 22 those types of things in place, or about $1.13 cents per 23 ERU per month. 24 There's also low impact development. There's 25 a way to get a 35 percent credit. That happens to be a lot RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 25 1 side that's at least three acres in size and the impervious 2 area is 15 percent or less of the total lot area. There's 3 a credit of 35 percent. And that's around an 4 environmentally sensitive development standard that exists 5 throughout the country that shows that that would help in a 6 reduction of the amount of runoff that comes from the 7 impervious area. 8 So the schedule -- I'll repeat some of the 9 things that Chairman Mahfood indicated and move a little 10 further. So the proposal was submitted to the Rate 11 Commission by MSD staff on February 26, 2018. The Rate 12 Commission has 165 days to review the proposal and send a 13 recommendation for consideration to our board of trustees. 14 There are technical meetings that are going on 15 right now. Chairman Mahfood indicated some of those. They 16 are on our website, stlmsd.com, a full publication of what 17 those are. It's somewhat like a trial. There's our rate 18 proposal, there are exhibits, there's testimony, there's 19 cross-examination, there's discovery requests. All that's 20 documented on our website if you're interested in really 21 following those proceedings, and electronically you can do 22 that on our website. Those are available at 23 www.stlmsd.com. That's MSD's website. 24 There's public hearings going on. This one is 25 the May 22nd. This is the May 22nd meeting which you see RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 26 1 up there, so we have three more meetings left. On our 2 website as well, the location of those three meetings are 3 on our website, the Rate Commission schedule for having 4 public meetings. 5 Under the current schedule, the Rate 6 Commission is supposed to deliver a rate proposal 7 recommendation to our board of trustees in August. At that 8 time, our board, as part of a public process, will go 9 through the process of evaluating MSD's staff's rate 10 proposal as well as any recommendations from the Rate 11 Commission and they will decide how to proceed. If the 12 proposal is approved and it's decided to move forward, the 13 earliest chance for a public vote is in April 2019. And 14 right now we think that's when that will happen if we move 15 forward. And therefore, once that goes in effect, the new 16 rate will be effective January 2020. 17 So there's two possible outcomes from that 18 vote. If citizens vote yes, the rate goes in place and 19 starts getting charged in January 2020 and we start 20 providing the service. If the residents vote no, MSD won't 21 provide the service. It's a very simple yes/no question 22 for the folks who are going to vote, for the folks who are 23 considering this. 24 Now I want to let you know, so we don't get 25 confused, outside of stormwater -- I mentioned MSD is also RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 27 1 a wastewater utility. So in a year, we have to start this 2 process all over again for our wastewater rates. So in 3 February 2019, we will submit a wastewater proposal for the 4 years 2021 through 2024 and the Rate Commission next year 5 will go through this process for our wastewater rates, 6 almost identical to what you're seeing here. They will go 7 through deliberations, we'll be having public meetings for 8 folks to provide comments to the Rate Commission. And 9 right now staff's in the process of getting ready to 10 prepare that rate proposal for our Rate Commission. 11 And here is for -- other than questions for 12 the Rate Commission, here's a contact, Lance LeComb. He's 13 here as our public affairs gentleman. He's here if you 14 have questions after these proceedings are over. That's 15 the contact if you have any questions other than about this 16 rate proposal for District staff and you don't get them 17 answered here today. That's the contact information. 18 Mr. Chairman, I'm done. 19 MR. MAHFOOD: Great. Thank you very much. I 20 appreciate it. I think at this point we're going to open 21 this up. I don't know if we've had any sign-ups. And if 22 we haven't, we're working on that. I'm going to just open 23 it up for questions. And I would appreciate you directing 24 those to me, and then I will get the appropriate person, 25 it's probably going to be Brian most of the time, for RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 28 1 answers about the proposal and any other issues. Yes, 2 ma'am? 3 MS. SEID: Can you please tell me why you 4 didn't combine asking for the stormwater and the wastewater 5 together so we can just have one vote and get it over with 6 rather than put us through this set of meetings, a vote, 7 and then you're doing another evaluation? It just seems 8 like a duplication of effort. 9 MR. MAHFOOD: Ma'am, before you -- 10 MS. SEID: Yes. 11 MR. MAHFOOD: -- can I get your name, please? 12 MS. SEID: My name is Mai Seid, and I'm a 13 resident of Maryland Heights. 14 MR. MAHFOOD: Fantastic. Thank you very much. 15 Go ahead, Brian. 16 MR. HOELSCHER: I think it all goes to my 17 explanation that MSD is two utilities. As a matter of 18 fact, they are two separate organizations in some cities. 19 We do -- this is about a stormwater service that has a 20 specific set of revenues on a specific schedule for a 21 specific purpose. We're wanting to address this issue now 22 while we can. We also don't want to mix it up with the 23 other issues. We found that dividing up and separating 24 these two separate issues is the easiest way to keep it 25 clear and understandable for those folks who have to RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 29 1 consider what's being proposed through the rate proposal. 2 That's why we don't mix them together. Especially in this 3 particular case, as opposed to asking for more or different 4 kind of moneys, we're actually offering a new service that 5 MSD currently doesn't provide district-wide. We thought it 6 was real important for us to make sure we did this 7 separately so folks can really take into account what's 8 here. 9 Also, if you think about it, this affects all 10 of our ratepayers. The wastewater proposal wouldn't 11 necessarily affect all of the residents in our district 12 boundaries. So we're trying to do it to be as fair and 13 clear to the ratepayers as we possibly can. 14 MR. MAHFOOD: I've got a -- I have a sign-up 15 sheet. We're going to go by the sign-up sheet first, and 16 then any other additional questions. The first person on 17 the list here is a Herbert Abeln. 18 MR. ABELN: I signed in. I thought it was a 19 sign-in sheet -- 20 MR. MAHFOOD: Okay. 21 MR. ABELN: -- not a question sheet. I'm 22 sorry. No questions. I'll come up with something later. 23 MR. MAHFOOD: All right. Thank you. John 24 Olson. Yes? 25 MR. OLSON: Hi. Yeah, I'm a resident of RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 30 1 Chesterfield. 2 MR. MAHFOOD: Okay. 3 MR. OLSON: And a couple questions. So I 4 guess the first one I had would be, so for erosion and the 5 stormwater-related services that were just outlined, was 6 there a time in the past or a geography within the service 7 area where erosion and stormwater services were funded and 8 provided by MSD? Because as I understood, outside of out 9 west or anywhere outside of 270 is an area that's never had 10 those services provided by MSD. Is that correct? 11 MR. HOELSCHER: So yeah, let me -- I want to 12 get to that blue map. That might be my best -- to make 13 sure I'm giving the reference appropriately. There we go. 14 So in 1954, when MSD was formed, the folks that voted were 15 somewhere -- this is not exact, but east of 270 and then 16 east of Lindbergh extended. This was MSD's original 17 boundaries. At the time that they were created in 1954, 18 there wasn't a Hancock Amendment. So all cities, all 19 organizations, everybody who had a revenue source, would go 20 through a public hearing process like you see here and 21 municipal councils and everybody else would go ahead and 22 decide what the appropriate tax rate was. 23 Big change was in 1980 when the Hancock 24 Amendment went in place. That basically means for any kind 25 of taxes a public hearing and then a vote of the public is RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 31 1 required. The reason that's important is that in 1989, 2 based on a vote of the people, MSD then took over 3 stormwater services in this area which were previously 4 provided by St. Louis County. 5 So at the time, there was a consideration of 6 going to an impervious area type rate. There was 7 consideration of other revenue sources. What's been 8 explained as a lack of political will resulted in MSD never 9 being provided funding in order to perform those services. 10 It's something we looked at as far as the timing of it. 11 There were court cases wrapped around the Hancock Amendment 12 about how our sanitary rate would look like, our wastewater 13 rate. Those got resolved. 14 Once those were resolved, we went through the 15 stormwater rate process to try to provide those services in 16 2008. That was a false start because of a decision by the 17 supreme court. And now's the time that we're providing 18 this. there was just never a revenue source. There was 19 one thought of. If you look back in our old charter 20 ordinances, you'll find where a proposal was put in front 21 of the board to charge impervious rates to provide this 22 service out in these areas. There was never any action. 23 It was decided -- there was never any action that was taken 24 on that. 25 MR. OLSON: Okay. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 32 1 MR. HOELSCHER: And so we sit where we are 2 right now. 3 MR. OLSON: So thanks for explaining that. 4 And then so for a resident with an issue that would be 5 addressed by this stormwater proposal then, if MSD's been 6 out to someone's property, is it already recorded? So 7 that's one question. And then like the second question 8 would be, you know, how do you kind of stay on MSD's 9 priority list with a project if funds become approved for 10 this type of work? 11 MR. HOELSCHER: You want me to go? 12 MR. MAHFOOD: Yeah, please go for it, yes. 13 MR. HOELSCHER: So right now the best way -- 14 there's a lot of ways to go. One, I would suggest you talk 15 to our staff here because they can get you -- if you 16 reported a problem before, it hasn't fallen off our radar. 17 MR. OLSON: Okay. 18 MR. HOELSCHER: We've been collecting issues. 19 And one of the other things we do provide, I mentioned that 20 two-cent tax. We do collect that out here. So we collect 21 stormwater problems also for a regulatory reason. As 22 people redevelop, we want to make sure they're not 23 increasing stormwater problems or providing other damage to 24 folks. So we've gathered that data anyway. 25 MR. OLSON: Okay. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 33 1 MR. HOELSCHER: So it stays on our list. We 2 get it from individuals who have an issue. A lot of times 3 a lot of municipalities will gather stormwater complaints. 4 They will forward it to MSD or they will develop their own 5 stormwater plans. Separate municipalities have the ability 6 to raise stormwater funds and some do their own stormwater 7 programs. We will coordinate with them. They will send us 8 their information. 9 It never goes away. The best suggestion I 10 have is if you have an issue, and we've got staff here, 11 call us any time. We'll make sure it gets on the list. 12 And once you're on the list, I will guarantee you it stays 13 on there. The one thing -- the one time I would suggest 14 you really think about calling us is if something changes, 15 something gets worse. Call us if something gets better 16 because that does happen as well. But let us know and 17 we'll track those. 18 And then kind of finishing off, how do you 19 know things happen? We will end up -- we're a little 20 hindered right now because there's no funding to do this. 21 So we're kind of doing it on just what we're gathering on 22 the regulatory side. We will put usually, once fully 23 funded, a five-year projection forward. We'll take the 24 projects that have the highest benefit/cost ratio. Those 25 will be the projects that go first -- RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 34 1 MR. OLSON: Okay. 2 MR. HOELSCHER: -- once we get the program. 3 So if you happen to live in this area where we did have a 4 program before -- like in here there was programs. If you 5 look at MSD's past capital programs, you will see that 6 there were a list of projects going out five years with any 7 special taxing districts so everybody knew when their 8 project would come up based on the priority basis. Same 9 thing will happen district-wide if we get this revenue. 10 MR. MAHFOOD: Does that -- does that make 11 sense? 12 MR. OLSON: It does, yes. Thank you. 13 MR. MAHFOOD: Next person here, and I 14 apologize, it looks like Verl Brennan. 15 MS. BRENNAN: Valerie. It's okay. Valerie. 16 MR. MAHFOOD: Valerie, I'm sorry. 17 MS. BRENNAN: Oh, that's fine. I write like a 18 chicken. 19 MR. MAHFOOD: Please go ahead. 20 MS. BRENNAN: So I didn't come in from the 21 beginning. So if my question has to do because I wasn't 22 here from the beginning, please excuse me. But from 23 sitting here, you're saying that, you know, once we pay our 24 property taxes every year where you have money allotted for 25 you, and that comes to 67 million, and that money's already RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 35 1 wiped out, right, so then if this new proposal becomes 2 effective it's going to bring another 30 million revenue in 3 addition a year to work on these projects, right? 4 But I thought there was somewhere in the slide 5 where you said that the work that needs money is like 6 560 million. I'm sorry, is my memory not good? Because 7 then I'm thinking, okay, so when you're talking 8 560 million, is that all those dots on that map or are 9 these new dots after the money is received going forward? 10 And how is 30 million a year going to offset 560 million 11 worth of projects? 12 MR. HOELSCHER: So were you here when this -- 13 when I explained this slide? 14 MS. BRENNAN: Yes, I was. And maybe I wasn't 15 paying thorough attention. 16 MR. HOELSCHER: Okay. 17 MS. BRENNAN: But I really -- are those 18 existing projects now? 19 MR. HOELSCHER: So I'm going to do this very 20 quickly. So there's a current tax that you pay of 2 cents 21 per hundred dollar valuation on your tax. It lets us pay 22 for regulatory services district-wide. 23 MS. BRENNAN: Okay. 24 MR. HOELSCHER: There is the 10-cent 25 stormwater tax that lets us operate and maintain the public RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 36 1 storm sewer system, inlets, manholes, storm sewers, paved 2 concrete channels. The other thing that's left is when 3 this process happened and we shut down a lot of other 4 funding sources that were being collected from various 5 people in different amounts, you're right, there was 6 $67,000,000 left. 7 MS. BRENNAN: Yes. That's Prop S, the 67. 8 MR. HOELSCHER: The 67 was what was left over. 9 Prop S is right here, this 10-cent tax. 10 MS. BRENNAN: Okay. 11 MR. HOELSCHER: So once that tax started 12 rolling in, these various other taxes to some degree, some 13 paid for some of the O & M that was being done in part of 14 the district. But once we had the district-wide tax for 15 that, we simply turned those to zero and said, okay, what's 16 the existing balance in those funds that we're no longer 17 using for O & M and other purposes, and that was the 18 $67 million. And so part of Prop S, we committed to use 19 that 67 million to do the project, all these dots you see 20 up here, for flooding and erosion. 21 MS. BRENNAN: So are all of those dots equal 22 to 67 million? 23 MR. HOELSCHER: Yes. 24 MS. BRENNAN: Okay. 25 MR. HOELSCHER: Right. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 37 1 MS. BRENNAN: Okay. So if this proposal is 2 awarded and you're taking in 30 million a year, then that 3 30 million is going to be for a new set of dots? 4 MR. HOELSCHER: Which are these dots that you 5 mentioned earlier. You had it right. I wanted to make 6 sure we got there. So you did a very good job. So it's 7 these 500 -- and these are the things we know of. These 8 are the problems we know of. I will tell you stormwater is 9 somewhat of a fickle creature. 10 Some of these problems are erosion where 11 people's garages could by essentially maybe falling into 12 creeks. Others of them may be the water encroaches up on 13 somebody's property a little bit and it's wet for 12 hours. 14 It's a whole range of things. But that is the total size 15 of the package. And you're right, that $30 million a year 16 program will be put towards addressing these problems. 17 MS. BRENNAN: So essentially it would take 20 18 years -- 19 MR. HOELSCHER: 25 to 30 years. 20 MS. BRENNAN: -- to put a dent in that $562 21 million. 22 MR. HOELSCHER: Well, if that number is right, 23 it would eliminate them, but yes. 24 MS. BRENNAN: Okay. 25 MR. HOELSCHER: And I think just to leave with RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 38 1 that too, I think it's somewhat -- there's a lot of things 2 going on in the district, redevelopment. Like I mentioned, 3 there's a lot of cities doing their own stormwater programs 4 that are in their particular cities. They have the ability 5 to collect taxes for that. So a lot of things change. 6 Sometimes there's stormwater problems we're not aware of 7 that become new. There's also a lot of items on this list 8 on an annual basis that go away because other things happen 9 such as redevelopment or work by individual municipalities, 10 and those things will drop off the list. So it's a very 11 dynamic list that changes the day after we present it. 12 MS. BRENNAN: In regards to stormwater, there 13 was something a couple years ago, and I'm not sure if it 14 was you or if it was Missouri American Water, about putting 15 grates on the property to collect the water. Was that MSD 16 or was that Missouri American Water? 17 MR. HOELSCHER: Grates on the -- 18 MS. BRENNAN: Yeah, about actually installing 19 grates at different locations on your property and actually 20 taking that collected water and then selling it. Maybe it 21 was Missouri American Water. 22 MR. HOELSCHER: Yeah, that doesn't sound like 23 a program we had. 24 MS. BRENNAN: Okay. Thank you for answering 25 my question. My last thing is, and please don't laugh at RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 39 1 me, can you elaborate on who the Rate Commission is and how 2 they become the Rate Commission? 3 MR. HOELSCHER: I'm going to sit down. 4 MR. MAHFOOD: I could read -- I could read you 5 everything that -- 6 MS. BRENNAN: Just a brief synopsis would be 7 fine. Are these appointed officials? 8 MR. MAHFOOD: The Rate Commission is made up 9 of 15 of us from varying backgrounds in St. Louis City and 10 County independent of the Metropolitan Sewer District 11 staff. We have our own legal counsel and we have our own 12 rate evaluators. And we are inside the process, but we are 13 independent. And we hold the hearings and meetings that we 14 hold in this process. We are an independent body. We are 15 all volunteers. And so we are not beholden to anybody but 16 the citizens of our district. So this is a very unique 17 process that takes place inside -- in there St.~Louis area. 18 MS. BRENNAN: So you are volunteers? 19 MR. MAHFOOD: There's not very many places in 20 our country where there's a process where an organization 21 like this independent is inside and able to question what's 22 going on. 23 MS. BRENNAN: So do you get invited to be a 24 volunteer? How does the process work? And who oversees it 25 and determines who's a good egg, an acceptable egg, or a RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 40 1 more acceptable egg, that kind of deal? You mean what I 2 mean? 3 MS. SEID: Yeah. There's all men up there. 4 You see that? 5 MS. BRENNAN: Oh, it's got nothing to do with 6 that. 7 MR. MAHFOOD: I'm with you. We represent 8 various kinds of organizations, everything from 9 environmental, business, unions. 10 MS. BRENNAN: So, I mean, on your resume, are 11 you engineers or lawyers, you know, environmental law, that 12 type of thing? I mean, what kind of background do you have 13 to be? Who like looks through this and allows you to 14 become part of the commission, I guess? 15 MR. MAHFOOD: Well, as I've seen this process 16 happen, and this is only my second time around with the 17 Rate Commission, what happens is the Metropolitan Sewer 18 District Board of Trustees has tried to pick out the right 19 organizations that are involved and represent large groups 20 of people. And those organizations would then step forward 21 and propose different people to be on the Rate Commission. 22 And if we seem to pass muster -- and I think all the 23 organizations and the people that are on the Rate 24 Commission are highly qualified from the perspective of 25 they are interested in what is going on. So you have RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 41 1 League of Women Voters, to the Home Builders Association, 2 to union representatives, to people representing homeowners 3 groups. 4 MS. BRENNAN: Okay. 5 MR. MAHFOOD: So you've got a wide range. And 6 on the website there's a complete -- there's a listing of 7 who we are and what we do and our backgrounds. 8 MS. BRENNAN: So on that website, I mean, if 9 you were interested in seeing if you knew someone that 10 would be a good addition to the board maybe on the Rate 11 Commission in the future, how would you go about 12 investigating that process or submitting a resume or 13 however people review your credentials for you to be part 14 of the group? 15 MR. MAHFOOD: I would say get on the website, 16 get us your name. I'm glad to -- if you have -- stay in 17 contact. I'm glad to take that, take your name. 18 MS. BRENNAN: I've always been curious as to 19 how various utility commissions and various other 20 commissions that decide what gets passed and what doesn't 21 get passed for public view or public comment. I'm just 22 curious as to what credentials these people have. Are they 23 appointed? Are they voted for? You know what I mean? 24 Those type of questions, that's all. 25 MR. MAHFOOD: We are all appointments. We are RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 42 1 not voted on. We know that. But everybody that is on the 2 commission takes very seriously the role that we're 3 playing. 4 MS. BRENNAN: And you don't draw any salaries? 5 It's strictly volunteer? No salaries are drawn? 6 MR. MAHFOOD: Right. We are all strictly -- 7 this is all on our own time. 8 MS. BRENNAN: Okay. 9 MR. MAHFOOD: And so I would really encourage 10 you to look up the -- look us up and get on the website. 11 MS. BRENNAN: Okay. 12 MR. MAHFOOD: And we have a Facebook page. 13 MS. BRENNAN: You will have your little 14 pictures there so I know who is who? 15 MR. MAHFOOD: We've got a Facebook page. Does 16 anybody else on the commission want to say something? 17 MR. BRESNAN: I'll give you the website here 18 if you want to see it. 19 MR. MAHANTA: To add to what you have already 20 explained, for example, I represent North County, 21 Incorporated. And it's a -- it's an organization that 22 represents a large part of North County. And they just 23 asked me -- I was involved in another activities of North 24 County and they needed somebody to represent them. They 25 asked me if I would be interested. And of course, my RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 43 1 background, for example, I'm a retired architect. And that 2 was my only qualification, so to say. But I'm also 3 involved in environmental services. And they felt that I 4 would do a good job of representing North County in this 5 Rate Commission. And that's how I got in there. I didn't 6 go seek the position. It just happened to be that I was 7 nominated. 8 MS. BRENNAN: Well, that's good. 9 MR. MAHFOOD: Anybody else want to say 10 anything? 11 MR. BRESNAN: My name is Don Bresnan. I 12 represent the St.~Louis Labor Council. I'm also the 13 present of the electrical workers union. Our interest is 14 as yours. We're consumers as well. We want to see that 15 things are fair and equal and balanced and we also want to 16 see that good jobs are provided as well. And we believe 17 they are the best to handle that. And I was appointed. I 18 was asked if I would like to be part of it. And I have -- 19 as you, I have a vested interest in the community. And I'm 20 well aware there's stormwater and erosion problems, so I 21 wanted to see a way that was equal and fair for everybody. 22 MS. BRENNAN: So do all -- if there's hearings 23 and everything, all of you will be at the hearings and you 24 will review all the information, you know, proposed? 25 MR. BRESNAN: Yes, ma'am. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 44 1 MS. BRENNAN: A lot of man-hours. 2 MR. BRESNAN: Yes, it is. 3 MS. BRENNAN: And then you have also counsel 4 to help you if you don't understand some of the different 5 ramifications that maybe presented? 6 MR. BRESNAN: We do have legal counsel as 7 well. 8 MR. MAHANTA: And technical counsel. 9 MR. BRESNAN: Technical counsel as well. 10 MS. BRENNAN: Thank you for answering my 11 questions. You know, I'm sure not all commissions are like 12 this, but I really always wanted to know, you know. So 13 thank you for -- 14 MR. BRESNAN: There are commissioners that 15 aren't here that represent Missouri Botanical Garden and, 16 again, different cross-sections of interests. 17 MS. BRENNAN: Thank you. I appreciate those 18 comments. 19 MR. MAHFOOD: Yeah, we're very -- we're a 20 varied group. I have one more, one more question. Mai? 21 MS. SEID: Yes, thank you. I know when I had 22 stormwater problems -- I lived in Maryland Heights when I 23 had my home and my soil was being eroded. And what 24 happened was MSD was not responsible for it, so the City of 25 Maryland Heights, we had to wait for a half a cent sales RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 45 1 tax to be added or collected, and then the project was done 2 by the City of Maryland Heights. Once we get this item 3 passed, how will you decide which projects are city-owned 4 and which projects are MSD-owned? 5 MR. MAHFOOD: Very good question. Brian? 6 MR. HOELSCHER: So the process will be exactly 7 the same as what we're already -- let me go to a different 8 map. As to the process we do -- again, this is kind of the 9 area of the district that was already collecting a special 10 tax for some of our individuals. So what the practice is, 11 we've seen in the past, municipalities can gather their 12 funds. 13 MS. SEID: Yes. 14 MR. HOELSCHER: As you said, they can do their 15 jobs. MSD is gathering funds. And based on, again, a 16 priority system, a benefit versus cost ratio priority, we 17 will have our programs. Now, for the municipalities that 18 have an active stormwater program -- and remember, we're 19 solving issues that MSD doesn't own the property, MSD 20 doesn't own the assets. These are problems that we're 21 trying to solve similar to what the City of Maryland 22 Heights did. For the cities that have stormwater plans, we 23 coordinate our activities with theirs. And as you can 24 imagine, different municipalities may have different 25 priorities than what MSD has district-wide. So we'll RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 46 1 coordinate those activities. 2 And without giving the name of it, an example 3 of an activity that may happen is a city may have a 4 stormwater project that they want to do, and part of that 5 project is on MSD's list to be funded. So instead of the 6 city paying for the entire improvement that they want to 7 get done, they will approach MSD. And if it's programmed 8 and it has the right priority, MSD will help them fund the 9 problem that the city develops, that the city goes ahead 10 and builds, so they won't use all of their funds. 11 So it will happen both ways. The cities will 12 be raising moneys for their priorities. MSD will be 13 raising money based on our priorities for a much larger 14 area. But there's constant communication right now and 15 coordination amongst the entities that have those kind of 16 resources to make sure if we can possibly coordinate our 17 activities and cost overall the ratepayers less money, we 18 do that to make sure the things get done. That's the way 19 it's working now in the areas we have those kind of funds, 20 that $67 million list. We'll continue doing that 21 throughout the district the same way. 22 MS. SEID: Okay. I was just concerned, double 23 taxation, you know. I'm paying tax for the City of 24 Maryland Heights to do stormwater stuff, and now I'm paying 25 tax for MSD. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 47 1 MR. HOELSCHER: So every city -- you know, 2 they may say -- it kind of probably depends, I would 3 suspect, on April. In April, if the vote is no, cities 4 will make one decision about what they want to do. If 5 people vote yes, you're right, we have cities that say we 6 no longer need the tax, cities that say our residents want 7 a faster and more stormwater program than this would offer. 8 And each city -- at least our experience in the past is 9 that each one would make a determination on their own. 10 MR. MAHFOOD: Did that answer your question, 11 Mai? 12 MS. SEID: Yes, thank you. 13 MR. MAHFOOD: I'm going to open this up. 14 That's the end of the formal sign-up sheet. So I know 15 you're wanting to ask a question, please. 16 MS. SHENKER: Yes. 17 MR. MAHFOOD: Could you identify yourself? 18 MS. SHENKER: My name is Diane. And I 19 believe -- I wasn't sure I heard correctly. You're the 20 CEO? 21 MR. HOELSCHER: Uh-huh. 22 MS. SHENKER: And your name is Brian? 23 MR. HOELSCHER: Brian Hoelscher. 24 MS. SHENKER: I'm wondering if I'm looking at 25 this correctly, and if you can tell me if I understand RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 48 1 correctly, if I can show this to you, if you wouldn't mind 2 looking at it. The way I'm reading it, this is what the 3 increase is going to be, which if you're paying, say, this 4 amount, it's going to be a 100 percent increase in what 5 you're going to pay monthly. Is that correct? 6 MR. HOELSCHER: No. 7 MS. SHENKER: This says fiscal year of 2020 8 and it's putting down all the charges. 9 MR. HOELSCHER: Okay. So -- and I'll explain 10 to everybody what I'm looking at the best I can. 11 MR. MAHFOOD: All right, good, Brian. One 12 thing at a time. 13 MR. HOELSCHER: So this is percent of total. 14 That's not percent of increase. So it's a percent of total 15 of what your overall bill is. 16 MS. SHENKER: It comes to 100 percent. 17 MR. HOELSCHER: Right. So 100 percent -- in 18 other words, this wastewater bill is 90.5 percent of your 19 overall monthly cost of MSD, not an increase of 95 percent. 20 MS. SHENKER: But what I'm saying is, you're 21 saying it's going to be this amount? 22 MR. HOELSCHER: So for the average customer, 23 if this passes, and we've added this $2.25 in, the total 24 cost per month for a customer in 2020 will be $66.75. 25 MS. SHENKER: What I'm telling you is that RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 49 1 some of the people I have talked to are paying $33. And 2 now if this goes through, they will be paying close to $67 3 a month. So when you talk about $2.25, you're talking 4 about statistics. I'm talking just about the everyday 5 person who has to end up paying for it. And a lot of times 6 that seems to get clouded over. And I mean, that's a lot 7 of money for somebody who's maybe living on -- 8 MR. HOELSCHER: If somebody's paying $33.75 a 9 month now, and the only increase was stormwater, their 10 rates would go up $2.25 a month, and it would go to $35 and 11 something. It's not going to go to $66. 12 MS. SHENKER: So why are they showing -- 13 MR. HOELSCHER: What they are showing is for 14 the average customer. They are showing that their 15 wastewater bill for the average customer in 2020 will be 16 $60.44. That's for the average customer. You're right, 17 everybody. There's some below, there's some above. 18 MS. SHENKER: But that's double. That's 19 100 percent. 20 MR. HOELSCHER: All right. $60.44 is the 21 average customer. There are people paying $20 a month. 22 They will keep paying $20 a month. There are people paying 23 $40 a month. They will keep paying $40 a month. 24 MS. SHENKER: But in fiscal year 2020, it's -- 25 MR. HOELSCHER: For the average customer, not RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 50 1 everybody. That bill is based on the amount of water 2 usage, portable water usage. 3 MS. SHENKER: Well, I just had a situation 4 happen which I read in the paper about the water company. 5 And it seems like some customers' meters stopped recording 6 water usage, so the utility used the previous year usage 7 for billing. The utility never disclosed a problem while 8 negotiating a rate. So I was with a group of people today, 9 and I said I was coming here and I mentioned this. She 10 says, you know what happened to me? We were gone for four 11 months. We were in Florida. We had somebody from the 12 water company come and ask us were we having a problem 13 because it was not reading what their normal reading was. 14 And in some of these articles that I have here in the 15 paper, they went ahead and added even though they hadn't 16 used it. They added it to their bill even though it was 17 not actually used. 18 So -- and then I think what it is is that I 19 read too much. And I find that a lot of people are not 20 reading what's going on in the newspaper. And I think a 21 lot of people are a little bit skeptical of what actually 22 is going to happen when they have to pay their bill. So I 23 just was curious whether I was reading that correctly. 24 MR. HOELSCHER: So I'm going to give you the 25 answer to your questions related to this. A lot of the RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 51 1 other stuff you've got has to do with how we bill 2 wastewater. And I'd suggest that after this meeting, after 3 the Rate Commission is done, we can answer that. 4 But on stormwater, assuming there is -- let me 5 get to the right page. Help me out, Lance. Where's the 6 one that's not the -- is it the next one? There you go, 7 okay. Assuming no change in your wastewater bill, okay -- 8 which you're right, is based on portable water. But 9 assuming there's no change, a customer's monthly rate will 10 go up by this amount. There's no doubling. There's no 11 tripling. It will go up by the dollar amount that's right 12 here for stormwater. What we're showing here is an 13 accurate representation if you are a residential customer 14 with this amount of impervious area, from your bill today 15 for stormwater, that's how much your bill will go up. 16 As far as what impact there is with -- because 17 wastewater -- because the document you showed me, 18 90.5 percent of somebody's bill there is a wastewater rate. 19 It doesn't have to do with the stormwater. And we can 20 explain the wastewater rate and what that chart means after 21 this meeting. We can explain the wastewater side. But 22 this is what this rate -- this is what the new cost per 23 month will be for all residents regardless of what their 24 current wastewater rate is. 25 MS. SHENKER: Thank you. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 52 1 MR. MAHFOOD: Yeah, I'm glad we had an 2 opportunity to talk about this because it might either 3 redirect our own efforts as we talk about average versus 4 median versus your bill and somebody else's bill. You 5 know, we're talking about -- here we're talking about just 6 the stormwater, stormwater rates, and not talking about the 7 rates for wastewater. And that's a combination that is -- 8 it's a combination of those. Yes, ma'am? 9 MS. ROBERTS: I had a couple just clarifying 10 questions. So you mentioned or just broke down the 11 different -- those regulatory tax amounts and the 10-cent 12 worth of Prop S. So if this is passed, that will be like a 13 third line that shows this impervious amount, or would that 14 be all just lumped together for the one stormwater amount? 15 MR. HOELSCHER: Okay. So I'm trying to get to 16 the screen because I want to show the numbers. So the 17 current stormwater services are a 2-cent property tax and a 18 10-cent property tax that shows up on your annual property 19 tax bill. That's the only time that payment's made. 20 The proposal we're putting forward, this new 21 service, would actually show up -- assuming most of you 22 have wastewater service from us, this will show up per 23 month on your monthly wastewater bill that you get from 24 MSD. So that's where it will be added on. And again, for 25 the average customer, or 50 percent, would be $2.25 a month RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 53 1 as an additional line item. If this passes, that will 2 start showing on July 2020. 3 MS. ROBERTS: Okay. Also, with the maps that 4 you showed, the two different maps, the one with the 5 current projects and the one with the prospective projects, 6 where can I find them -- what tab is it? What tab would I 7 look for those maps? 8 MR. HOELSCHER: So this map is on our website. 9 If you look under www.stl.msd, you look under rate 10 proposal -- 11 MR. LeCOMB: If you look on our website, 12 you'll see a section that says Proposition S. This map is 13 there at Proposition S. You can actually click through. 14 That shows all the additional work we've now been able to 15 do because of Proposition S. 16 Separately though, there's a Rate Commission 17 section to our website. And not only does it have this 18 presentation, a listing of the Rate Commission members, but 19 all the documents for the proceedings for the Rate 20 Commission as well. So if you go in there, across the top 21 of our website there will be a tab that says who we are. 22 Look for Proposition S and look for Rate Commission. They 23 are two separate headings, and you'll find that information 24 in those two headings. 25 MS. ROBERTS: Okay. And also, can we find RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 54 1 members of the Rate Commission on that? 2 MR. LeCOMB: That will be under Rate 3 Commission tab. 4 MS. ROBERTS: And just out of curiosity, I 5 know you said that in terms of the impervious or 6 calculating the impervious areas for individual households, 7 I know you said something about an aerial view or something 8 like that. How are you guys actually going to calculate 9 for each and every property? That seems to be quite 10 laborious, so -- 11 MR. HOELSCHER: Okay. So the way it's done -- 12 and quite honestly, even your local municipalities have 13 this information. We overfly the district on average once 14 every two years for a lot of reasons. And a lot of 15 entities share that data. From that aerial photography, 16 we're able to identify once you put the property lines on 17 what is impervious area. And just so you know, 18 mechanically the process, a lot of it's done electronically 19 with computer software that says, here's the impervious 20 areas. And a lot of it gets hand-checked by individuals. 21 There's still a chance something might be 22 wrong, not quite right. MSD will also have an appeal 23 process. If we lay something out or it doesn't make sense 24 to you, MSD can take a look at your appeal and we'll make 25 the corrections. But it's done by aerial photography. I RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 55 1 will guarantee you every municipality in the area, the USGS 2 and MoDOT and everybody else, has access to aerial 3 photography that's no more than two years old. It's just 4 useful for a whole lot of things. 5 MS. ROBERTS: Thank you. 6 MR. MAHFOOD: Yes, sir? 7 MR. ABELN: I do have a question. I represent 8 a homeowner's association in West County. We have 98 9 homes. The homeowners association owns a section of a 10 creek that's a wild creek. It's about a two-acre plot. 11 But 25 of our 98 homes back to this creek. If you have a 12 vote like this, I'm sure 25 of the 98 would vote for a tax 13 like this, and the balance would probably tend to vote no 14 because it's not going to help them a bit. How are you 15 guys -- I mean, that's just my own view of how this is 16 going to play when it comes to a vote. How are you going 17 to convince all of these people that see zero benefit to 18 themselves for passing a tax like this? 19 MR. HOELSCHER: So we've done -- and these are 20 some documents that are on the exhibits with the Rate 21 Commission. We've done some polling of individuals, how 22 important are stormwater problems, how much they feel is 23 appropriate to pay to help the stormwater problems in the 24 area. We're going to convey to folks -- I mean, this is me 25 speaking. I assume you don't, as an adjacent property RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 56 1 owner, want a property next to you to have erosion so that 2 the house is falling in the creek. That probably impacts 3 your property values. 4 So there's a lot of those types of things. 5 And it has to do with the health of the area and what this 6 will propose. That's something we have to talk about. 7 That's what we're going to present to folks. They are 8 going to have to, in the end, make their own decisions 9 about whether it's worthwhile. But based on the polling, 10 we believe what we are proposing, if we explain it 11 correctly, everybody can understand the issue and make 12 their own decision about whether or not it's worthwhile 13 providing this. 14 One thing I would present to you, just because 15 you mentioned it, if you live in a homeowners areas with 90 16 homes and some back up to an area with a creek, you may 17 want to look at your subdivision indentures. My guess is 18 every person in that subdivision is responsible for paying 19 into a pot to help maintain that channel, all 90. That's 20 part of the common ground. So that's just some advice you 21 may want to take a look at the indentures that were 22 developed. 23 MR. ABELN: I'm very familiar with the 24 indentures, and that's not the case. 25 MR. HOELSCHER: That's not? Okay, that is RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 57 1 different. That's a little unusual. But you're right, 2 that's an issue we'll have to sit and talk about. 3 MR. MAHFOOD: Do you have something you want 4 to say? 5 MR. LeCOMB: If this is approved and the time 6 comes, and my contact information is up there, and the 7 election does go forward, I will be the effort to go out 8 and educate the community. So if you'd like me to come and 9 talk to a neighborhood or whatever at that time, we'd be 10 more than happy to do it. To Brian's point, we present the 11 information. We can't advocate for a yes or no vote 12 because we are a government agency. But we're happy to 13 come out and have a conversation with any neighborhood or 14 any subdivision association and share the information we 15 have. 16 MR. ABELN: I think you've got an uphill climb 17 here, pretty steep climb to get this passed. That's my 18 personal opinion. I'm all for it. But the majority of the 19 people -- 20 MR. HOELSCHER: We're here to provide as much 21 education and information we can so that the folks who are 22 voting can make an informed decision. 23 MR. MAHFOOD: Any other -- any other 24 questions? And please -- the staff is going to be sticking 25 around here when we're done, if there's anything informally RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 58 1 you want to ask or any further clarification. They are not 2 going anywhere until they answer any of the questions, any 3 other additional questions that you may have. We also will 4 have a brief handout when you leave that just kind of 5 summarizes the key points that were presented here tonight. 6 No other questions out here. Any of the Rate 7 Commissioners have anything that they would want to add or 8 any other questions? 9 MR. MAHANTA: I just would like to thank all 10 of you, particularly those who have asked questions and 11 made comments. It is very helpful for us as Rate 12 Commissioners. 13 MS. SEID: I have a suggestion. If you could 14 have a slide that has a typical MSD bill now, and what 15 would be the addition to it if this passes, so that we can 16 get a better idea of what we're looking at. I always just 17 pay the total. I don't look at the details. So it's good 18 to know it's separated. 19 MR. MAHFOOD: I see a lot of heads shaking. 20 So that might be something we can add. 21 MS. SEID: That would be a good slide. 22 MS. SHENKER: But they don't want to show 23 that. 24 MR. MAHFOOD: Before we adjourn, I just wanted 25 to tell you, there are three public hearings remaining. RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 59 1 There's a May 30th. It's online. And you've got to get on 2 the website to check this out. We'll have an online public 3 hearing. On June 6 we will have one at 6:00 at the Forest 4 Park Visitor's Center. And then on June 29th, there will 5 be a final one at 9:00 a.m. at MSD's office. So those are 6 the three remaining public hearings. 7 If there are no additional questions, nothing 8 else or any other comments, I'm going to adjourn the 9 meeting at this time. Thank you very, very much for coming 10 out. 11 (Hearing concluded at 7:25 p.m.) 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 60 1 CERTIFICATE OF REPORTER 2 STATE OF MISSOURI ) ) ss. 3 CITY OF ST. LOUIS ) 4 I, Julie A. Johanning, CCR No. 835, do hereby 5 certify that the speakers whose statements appear in the 6 foregoing transcript were taken by me to the best of my 7 ability and thereafter reduced to typewriting under my 8 direction; that I am neither counsel for, related to, nor 9 employed by any of the parties to the action, and further 10 that I am not a relative or employee of any attorney or 11 counsel employed by the parties thereto, nor financially or 12 otherwise interested in the outcome of the action. 13 14 15 16 17 Certified Court Reporter 18 19 20 21 22 23 24 25 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES A a.m 59:5 Abeln 29:17,18 29:21 55:7 56:23 57:16 ability 33:5 38:4 60:7 able 11:15 39:21 53:14 54:16 acceptable 39:25 40:1 access 55:2 accessible 4:18 account 29:7 accurate 51:13 acres 25:1 action 12:19 31:22,23 60:9 60:12 active 45:18 activities 42:23 45:23 46:1,17 activity 46:3 add 12:11 22:1 42:19 58:7,20 added 22:8,9 45:1 48:23 50:15,16 52:24 addition 35:3 41:10 58:15 additional 29:16 53:1,14 58:3 59:7 address 15:1,22 16:22 17:7,20 28:21 addressed 12:21 32:5 addressing 13:23 16:9 18:10 37:16 adjacent 55:25 adjourn 58:24 59:8 adjusted 14:8 adopted 6:8,11 6:25 advice 56:20 advocate 57:11 aerial 19:14 54:7 54:15,25 55:2 affairs 27:13 affect 13:24 16:3,3 29:11 agency 57:12 ago 14:9 18:19 38:13 ahead 4:2 5:2 23:4 28:15 30:21 34:19 46:9 50:15 airports 17:19 Alaris 1:16 3:24 allotted 34:24 allowed 14:13,15 allows 14:1,9 40:13 amended 5:13 7:1 amendment 11:17 14:3 30:18,24 31:11 American 8:7 38:14,16,21 amount 14:18 15:2 17:11,15,16 18:14 20:1 21:4 23:9 25:6 48:4,21 50:1 51:10,11,14 52:13,14 amounts 36:5 52:11 Angeles 12:15 annual 38:8 52:18 answer 11:13,15 47:10 50:25 51:3 58:2 answered 8:21 27:17 answering 38:24 44:10 answers 28:1 anybody 4:8 9:15 39:15 42:16 43:9 anyway 32:24 apologize 34:14 appeal 54:22 54:24 appear 60:5 application 7:3 7:4,5,6 appointed 11:21 11:22 39:7 41:23 43:17 appointments 41:25 appreciate 4:9 27:20,23 44:17 approach 46:7 appropriate 27:24 30:22 55:23 appropriately 30:13 approved 6:15 11:18 26:12 32:9 57:5 April 12:20 26:13 47:3,3 architect 43:1 area 12:5,9,25 13:1 17:11,12,12 17:16 18:14 19:11,13 20:1,7 20:12,18 21:3 21:5,7 22:18 23:9,10,17,20 24:3,11,11 25:2 25:2,7 30:7,9 31:3,6 34:3 39:17 45:9 46:14 51:14 54:17 55:1,24 56:5,16 areas 14:16 18:10,12 31:22 46:19 54:6,20 56:15 articles 50:14 asked 20:21 21:13 42:23 42:25 43:18 58:10 asking 28:4 29:3 assets 13:1,4 45:20 association 41:1 55:8,9 57:14 assume 55:25 assuming 51:4,7 51:9 52:21 attendance 4:4 attention 35:15 attorney 60:10 August 6:18 26:7 available 25:22 average 19:10 19:12 20:13 21:4 22:24 48:22 49:14 49:15,16,21,25 52:3,25 54:13 awarded 37:2 aware 38:6 43:20 B back 23:13 24:15 31:19 55:11 56:16 background 5:2 10:25 40:12 43:1 backgrounds 5:9 39:9 41:7 bad 13:7 balance 11:4 36:16 55:13 balanced 43:15 banks 16:2 base 18:14 based 14:8 17:10 19:6,20 21:2 31:2 34:8 45:15 46:13 50:1 51:8 56:9 basically 30:24 basis 17:16 34:8 38:8 bear 24:6 began 8:4 beginning 34:21,22 beholden 39:15 believe 43:16 47:19 56:10 benefit 45:16 55:17 benefit/cost 33:24 best 24:9 30:12 32:13 33:9 43:17 48:10 60:6 better 33:15 58:16 big 16:23 30:23 bill 13:19,19 21:11 22:6,8,18,19 22:23 23:2,3 23:5,21 48:15 48:18 49:15 50:1,16,22 51:1 51:7,14,15,18 52:4,4,19,23 58:14 billed 21:1,2 22:4 billing 23:1,18 50:7 bills 22:22 bit 21:1 37:13 50:21 55:14 blacktop 18:7 blocked 15:19 blue 11:10 30:12 board 5:17 6:14 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 6:17,18,21 11:20,21 25:13 26:7,8 31:21 40:18 41:10 body 39:14 Botanical 44:15 boundaries 12:22 17:22 19:12 29:12 30:17 Brad 3:11 5:8 break 21:19 Brennan 34:14 34:15,17,20 35:14,17,23 36:7,10,21,24 37:1,17,20,24 38:12,18,24 39:6,18,23 40:5,10 41:4,8 41:18 42:4,8,11 42:13 43:8,22 44:1,3,10,17 Bresnan 3:14 5:8 42:17 43:11,11,25 44:2,6,9,14 Brian 3:18 10:22 27:25 28:15 45:5 47:22,23 48:11 Brian's 57:10 brief 7:22 39:6 58:4 bring 35:2 broke 52:10 build 16:22 Builders 41:1 buildings 20:23 builds 46:10 burden 24:6 business 40:9 C C 3:1 calculate 54:8 calculated 19:8 calculating 54:6 calculation 19:20 21:21,25 call 9:1 33:11,15 called 19:9 calling 33:14 capital 17:9 19:8 19:18 34:5 care 17:3 case 29:3 56:24 cases 18:8 31:11 CCR 1:16 3:23 60:4 cell 9:10 cent 13:16 44:25 Center 1:5 2:8 2:21 59:4 cents 24:22 35:20 CEO 3:18 10:23 47:20 CERTIFICATE 60:1 Certified 2:22 60:17 certify 60:5 chairing 4:23 Chairman 3:6 11:7 25:9,15 27:18 Chan 3:13 5:8 chance 26:13 54:21 change 6:6 7:2 8:14 11:9 30:23 38:5 51:7,9 changes 5:15 6:6 33:14 38:11 channel 56:19 channels 13:5 36:2 charge 24:21 31:21 charged 19:21 22:25 26:19 charges 48:8 chart 51:20 charter 5:12,17 11:18 31:19 check 59:2 Chesterfield 30:1 chicken 34:18 churches 17:18 cities 16:25 28:18 30:18 38:3,4 45:22 46:11 47:3,5,6 citizens 16:8 26:18 39:16 city 3:9 6:3 11:22 12:6 17:18 39:9 44:24 45:2,21 46:3,6,9,9,23 47:1,8 60:3 city-owned 45:3 clarification 58:1 clarifying 52:9 clear 10:16 16:19 19:22 28:25 29:13 click 53:13 climb 57:16,17 close 10:21 49:2 closed 11:13 clouded 49:6 Coalition 3:7 collect 12:1 16:23,25 23:3 32:20,20 38:5,15 collected 21:17 36:4 38:20 45:1 collecting 23:4 23:6 32:18 45:9 collection 21:15 23:2 combination 52:7,8 combine 28:4 come 4:5,6 9:14 10:20 11:3 12:12 16:24 19:19 29:22 34:8,20 50:12 57:8,13 comes 16:13 21:20 25:6 34:25 48:16 55:16 57:6 coming 8:11 15:11 16:19 50:9 59:9 command 14:20 commenced 4:1 comment 8:15 8:17,19 9:2 41:21 comments 4:24 11:8,9 27:8 44:18 58:11 59:8 commercial 20:25 21:6,10 21:12 24:18 commercial/i ... 5:21 commission 1:3 2:6,18 3:4 5:6 5:11,14,20,20 6:2,5,7,12,12 6:17,19,22 7:1 7:9 8:4 11:6,8 11:12 15:13 16:7 19:5 25:11,12 26:3,6,11 27:4 27:8,10,12 39:1,2,8 40:14 40:17,21,24 41:11 42:2,16 43:5 51:3 53:16,18,20 53:22 54:1,3 55:21 commissioners 44:14 58:7,12 commissions 41:19,20 44:11 committed 36:18 common 20:3 56:20 commonly 18:15 communication 46:14 community 1:5 2:8,20 5:25 43:19 57:8 compacted 18:8 18:8 company 50:4 50:12 complaints 33:3 complete 41:6 completed 15:5 completely 19:22 computer 54:19 concerned 7:25 46:22 concluded 59:11 concrete 13:5 17:14 18:7 23:13 36:2 conducted 7:15 8:3 conference 7:12,18,20 conferences 7:19 8:9 confused 26:25 confusing 10:15 consider 29:1 consideration 25:13 31:5,7 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES considered 6:19 considering 26:23 consists 6:2 constant 46:14 constitution 11:18 consultant 6:23 7:10 consumers 7:6 43:14 contact 8:8 27:12,15,17 41:17 57:6 contained 8:8 continue 15:14 16:9 46:20 continuous 16:15 contribution 17:17 18:13 20:4 conversation 57:13 convey 55:24 conveyance 24:5 convince 55:17 coordinate 33:7 45:23 46:1,16 coordination 46:15 corner 13:16 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identify 9:3 47:17 54:16 identifying 7:12 imagine 45:24 impact 24:24 51:16 RATE COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES impacted 18:11 impacts 56:2 impervious 17:11 17:12,15 18:6,9 18:12,14,20 19:11,13 20:1,7 20:12,18 21:3 21:4,7 22:18 23:9,10,12,17 23:20 24:3,11 25:1,7 31:6,21 51:14 52:13 54:5,6,17,19 impervious-b ... 19:6 implement 17:9 important 5:3 11:24 29:6 31:1 55:22 improvement 46:6 improvements 19:18 incentive 23:7 24:17 including 5:23 6:20 Incorporated 3:13 42:21 increase 48:3,4 48:14,19 49:9 increasing 32:23 indentures 56:17,21,24 independent 6:23 39:10,13 39:14,21 indicated 11:7 16:6 18:24 25:9,15 individual 18:3 38:9 54:6 individuals 22:5 33:2 45:10 54:20 55:21 industrial 7:6 20:25 informally 57:25 information 8:18 10:25 27:17 33:8 43:24 53:23 54:13 57:6,11 57:14,21 informed 57:22 infrastructure 24:12 initial 8:20 9:15 inlets 13:4 36:1 inside 14:25 39:12,17,21 installing 38:18 instance 16:20 21:6 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COMMISSION PUBLIC HEARING 5/22/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 50:25 54:14 54:14,18,20 55:4 56:4 58:19 lots 22:14 Louis 1:18 3:15 3:25 6:3 8:6,6 11:22 12:6,7 31:4 39:9,17 43:12 60:3 low 24:24 lower 23:11,17 lumped 52:14 M M 36:13,17 ma'am 9:16,24 10:7 28:2,9 43:25 52:8 Mahanta 3:13 5:8 42:19 44:8 58:9 Mahfood 3:6 4:2,13,15 5:6 9:19,23 10:4,7 10:11,13,19 25:9,15 27:19 28:9,11,14 29:14,20,23 30:2 32:12 34:10,13,16,19 39:4,8,19 40:7 40:15 41:5,15 41:25 42:6,9 42:12,15 43:9 44:19 45:5 47:10,13,17 48:11 52:1 55:6 57:3,23 58:19,24 Mai 28:12 44:20 47:11 maintain 13:2,6 14:10 35:25 56:19 maintenance 13:3,11 16:15 majority 11:4 57:18 man-hours 44:1 management 17:24 24:9 managers 18:3 18:5 manholes 13:5 36:1 map 14:20,22 30:12 35:8 45:8 53:8,12 maps 53:3,4,7 March 6:9 Maryland 1:5 2:8,20,21 28:13 44:22 44:25 45:2,21 46:24 matter 28:17 mayor 11:22 McKelvey 2:21 mean 40:1,2,10 40:12 41:8,23 49:6 55:15,24 means 30:24 51:20 measure 19:10 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