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Home My Public Portal AboutExhibit MSD 63A - MSD's Response to Fifth Discovery Request of the Rate CommissionExhibit MSD 63A BEFORE THE RATE COMMISSION OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT MSD'S RESPONSE TO FIFTH DISCOVERY REQUEST OF THE RATE COMMISSION The Metropolitan St. Louis Sewer District Response ISSUE: STORMWATER RATE CHANGE PROCEEDING WITNESS: THE METROPOLITAN ST. LOUIS SEWER DISTRICT SPONSORING PARTY: RATE COMMISSION DATE PREPARED: JUNE 14, 2018 Lashly & Baer, P.C. 714 Locust Street St. Louis, Missouri 63101 Exhibit MSD 63A BEFORE THE RATE COMMISSION OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT For Consideration of a ) Stormwater Rate Change Proposal by ) The Rate Commission of The Metropolitan ) St. Louis Sewer District ) JUKE 14, 2018 FIFTH DISCOVERY REQUEST OF THE RATE COMMISSION The Metropolitan St. Louis Sewer District Pursuant to § 7.280 and § 7.290 of the Charter Plan of The Metropolitan St. Louis Sewer District (the "Charter Plan"), Operational Rule 3(5) and Procedural Schedule § 17 and § 18 of the Rate Commission of The Metropolitan St. Louis Sewer District ("Rate Commission"), The Metropolitan St. Louis Sewer District ("District") hereby responds to the June 11, 2018 Fifth Discovery Request of The Rate Commission for additional information and answers regarding the Rate Change Notice dated February 26, 2018 (the "Rate Change Notice"). Exhibit MSD 63A BEFORE THE RATE COMMISSION OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT For Consideration of a ) Stormwater Rate Change Proposal by ) The Rate Commission of The Metropolitan ) St. Louis. Sewer District ) FIFTH DISCOVERY REQUEST OF THE RATE COMMISSION Pursuant to §§ 7.280 and 7.290 of the Charter Plan of the Metropolitan St. Louis Sewer District (the "Charter Plan"), Operational Rule 3(5) and Procedural Schedule §§ 1, 17 and 18 of the Rate Commission of the Metropolitan St. Louis Sewer District ("Rate Commission"), the Rate Commission requests additional information and answers from the Metropolitan St. Louis Sewer District ("District") regarding the Rate Change Proposal dated February 26, 2018 (the "Rate Change Proposal"). The District is requested to amend or supplement the responses to this Discovery Request, if the District obtains information upon the basis of which (a) the District knows that a response was incorrect when made, or (b) the District knows that the response, though correct when made, is no longer correct. The following Discovery Requests are deemed continuing so as to require the District to serve timely supplemental answers if the District obtains further information pertinent thereto between the time the answers are served and the time of the Prehearing Conference. 3 Exhibit MSD 63A FIFTH DISCOVERY REQUEST 1. Has the District compiled data quantifying/categorizing calls received from ratepayers regarding flooding/erosion issues? If so, please provide such data for 2012-2017. RESPONSE: Yes, see summarized data provided below: SERVICE REQUEST CLASSIFICATION 2017 2016 2015 2014 2013 2012 EROSION 84 107 106 66 65 61 FLOODING 280 194 883 499 287 248 2. Please produce the EPA affordability guidelines for residential ratepayers which the District reviewed as referenced in Marion Gee's surrebuttal testimony (Exhibit MSD 55). RESPONSE: Please see Exhibit MSD 63B "EPA CSO Guidance for Financial Capability Assessment and Schedule (page 19) ". 3. Did the District consult any affordability guidelines/regulations regarding non- residential ratepayers? Please produce any guidelines/regulations regarding non-residential ratepayers relied upon or which the District consulted in preparing the Stormwater Capital Rate. RESPONSE: The District did not consult any affordability guidelines/regulations regarding non-residential ratepayers that relate to the Stormwater Capital Rate. The District previously provided the Rate Commission a spreadsheet (Exhibit MSD 37C) that contained the projected charges for non-residential ratepayers with the average monthly bill equaling $32.97 when the full rate of $2.25 is charged in FY 2022. Throughout the United States municipal water and wastewater utilities have typically examined affordability from the perspective of residential customers. We are not aware of a reasonable approach to examining non-residential affordability that could be applied Districtwide. 4. Please list the titles of the watershed binders associated with Exhibit MSD 37F which were made available to the Rate Commission by the District. RESPONSE: The District has provided a listing of watershed binders associated with Exhibit MSD 37F as Exhibit MSD 63C. 5. With regard to the projects listed in CIRP-2 (Exhibit MSD 30L), has the District pursued grant funding for any of these projects? If the answer is yes, please list any grants for which the District has applied or for which it intends to apply. If the answer is no, please explain why not. 4 Exhibit MSD 63A RESPONSE: No, the District has not pursued grant funding for any of these projects. Typically, grant programs do not fully fund a project but instead only fund a percentage of the work; for example providing a 50% reimbursement. It is premature to apply for grant funding because until the Stormwater Capital Rate is in place, there is no funding available to ensure that a project would proceed or to provide the local match needed if a grant were awarded The State of Missouri previously administered a Stormwater Grant Program which reimbursed 50% of the cost for eligible projects. $10 million was made available annually statewide for this grant program. However, the State has not funded this program in many years. Requesting a restart of this program by the State is an annual legislative priority for the District. The District does regularly seek financial assistance when available. Other grant and funding opportunities which the District pursues, when appropriate, include: • EPA Grants. On occasion, the District receives EPA grants to support the wastewater program. Although historically a major source of assistance, there are currently very few opportunities for funding, especially with the existing ban on congressional earmarks in federal legislation. • Corps of Engineers. Past federal legislation has authorized the Corps to perform work on the combined sewer system in St. Louis City and County. The District annually seeks funding from the Corps to perform this work The Corps also has other programs that the District regularly evaluates for potential assistance. • State Revolving Fund (SRF). A low interest loan program administered by the State of Missouri that allows debt financing of the wastewater program at a lower borrowing cost than possible with revenue bonds. • Water Infrastructure Finance and Innovation Act (WIFIA). Authorized EPA to provide low interest loans for approximately half the cost of eligible wastewater projects. • The Federal Emergency Management Agency (FEMA)/State Emergency Management Agency (SEMA). These agencies can at times have grant funding available for items such as mitigation or remediation. • State 319 Water Quality grants. The District partners with other stakeholders, such as the Missouri Botanical Gardens, in seeking funding and providing in kind services for water quality education and improvement efforts. 5 Exhibit MSD 63A Respectfully submitted, Susan M. Myers, General Coe1 THE METROPOLITAN ST. LOUIS SEWER DISTRICT 2350 Market Street St. Louis, Missouri 63103 smyers@stlmsd.com Tel: (314) 768-6366 Fax: (314) 768-6279 6 Exhibit MSD 63A CERTIFICATE OF SERVICE The undersigned certifies that a copy of the foregoing was sent by electronic transmission to Lisa O. Stump, Lashly & Baer, P.C., Brian J. Malone, Lashly & Baer, P.C. and Brandon W. Neuschafer, Brian Cave, LLP, on this 14th day of June, 2018. Lisa O. Stump, Esq. Brian J. Malone, Esq. Lashly & Baer, P.C. 714 Locust Street St. Louis, MO 63101 lostump�u'�,lashlybaer. com Brandon W. Neuschafer Bryan Cave, LLP 211 N. Broadway, Suite 3600 St. Louis, MO 63102 bwneuschafer@bcIplaw. com Susan M. Myers, General Counsel THE METROPOLITAN ST. LOUIS SEWER DISTRICT 2350 Market Street St. Louis, Missouri 63103 smvers@stlmsd,com Tel: (314) 768-6366 Fax: (314) 768-6279 7