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HomeMy Public PortalAboutExhibit MSD 80 - Transcript of the June 29, 2018 Public Hearing 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 1 1 2 3 4 5 6 7 8 MEETING OF THE RATE COMMISSION OF THE METROPOLITAN 9 ST. LOUIS SEWER DISTRICT 10 11 2018 STORMWATER RATE CHANGE PROCEEDINGS 12 13 JUNE 29, 2018 14 2350 MARKET STREET, ROOM 109 15 ST. LOUIS, MISSOURI 63103 16 17 18 19 20 21 22 23 24 25 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 2 1 INDEX 2 3 Public Comment Page 26 4 Procedural Matters Page 46 5 Closing Statements Page 68 6 Questions of Rate Commissioners Page 104 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 3 1 MEETING OF THE RATE COMMISSION OF THE 2 METROPOLITAN ST. LOUIS SEWER DISTRICT, 2018 3 STORMWATER RATE CHANGE PROCEEDINGS, taken on the 4 29th day of June, 2018, between the hours of 9:00 5 a.m. and 11:45 a.m. of that day, at the Metropolitan 6 St. Louis Sewer District, 2350 Market Street, Room 7 109, St. Louis, Missouri 63103, before AMANDA N. 8 FARRAR, a Certified Court Reporter of the State of 9 Missouri. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 4 1 APPEARANCES 2 3 The Commissioners: 4 Leonard Toenjes, Chair 5 Russell Hawes, Vice Chair 6 Mark Schoedel, Secretary 7 Paul Brockmann 8 Gerald Beckmann Brad Goss 9 John Stein Steve Mahfood 10 Paul Ziegler Mickey Croyle 11 12 For the Metropolitan St. Louis Sewer District: 13 Ms. Susan Myers 14 15 For the Rate Commission: 16 Ms. Lisa O. Stump Mr. Brian J. Malone 17 18 For Missouri Industrial Energy Consumers: 19 Mr. Brandon Neuschafer 20 21 The Court Reporter: 22 MS. AMANDA N. FARRAR, CCR Alaris Litigation Services 23 711 North Eleventh Street St. Louis, Missouri 63101 24 (314)644-2191 25 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 5 1 P R O C E E D I N G S 2 (The hearing commenced at 9:00 a.m.) 3 COMMISSIONER TOENJES: Good morning. 4 Being 9 o'clock on June 29th, 2018, we will start 5 this public hearing for the rate commission for our 6 2018 stormwater rate change proceeding. 7 I will ask Mr. Schoedel to take the role 8 to begin our session this morning. 9 COMMISSIONER SCHOEDEL: Thank you. 10 Jerry Beckmann? 11 COMMISSIONER BECKMANN: Present. 12 COMMISSIONER SCHOEDEL: Paul Brockmann? 13 COMMISSIONER BROCKMANN: Present. 14 COMMISSIONER SCHOEDEL: Don Bresnan? 15 Mickey Croyle? 16 COMMISSIONER CROYLE: Present. 17 COMMISSIONER SCHOEDEL: Brad Goss? 18 Russell Hawes? 19 COMMISSIONER HAWES: Present. 20 COMMISSIONER SCHOEDEL: Kennard Jones? 21 Chan Mahanta? 22 Steven Mahfood? 23 COMMISSIONER MAHFOOD: Present. 24 COMMISSIONER SCHOEDEL: Lloyd Palans? 25 Tom Ratzki? 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 6 1 Mark Schoedel. 2 John Stein? 3 COMMISSIONER STEIN: Present. 4 COMMISSIONER SCHOEDEL: Leonard Toenjes? 5 COMMISSIONER TOENJES: Present. 6 COMMISSIONER SCHOEDEL: Paul Ziegler? 7 COMMISSIONER ZIEGLER: Present. 8 COMMISSIONER SCHOEDEL: Thank you. 9 COMMISSIONER TOENJES: Thank you all. 10 My name is Leonard Toenjes, and I will be the 11 chair -- I am the chair of the rate commission of 12 the Metropolitan St. Louis Sewer District and will 13 serve as chair of this proceeding. Present are the 14 rate commissioners who just identified themselves as 15 a part of the roll call. 16 The charter plan of the district was 17 approved by the voters of St. Louis and St. Louis 18 County at a special election on February 9th, 1954, 19 and amended at a general election on November 7th, 20 2000. The amendment to the charter plan established 21 the rate commission to review and make 22 recommendations to the district regarding changes in 23 wastewater rates, stormwater rates, and tax rates 24 proposed by the district. 25 Upon receipt of a rate change notice 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 7 1 from the district, the rate commission is to 2 recommend to the board of trustees changes in the 3 wastewater, stormwater or tax rate necessary to pay 4 interest and principal falling due on bonds issued 5 to finance assets of the district, the cost of 6 operation and maintenance, and such amounts as may 7 be required to cover emergencies and anticipated 8 delinquencies. 9 Further, any change in a rate 10 recommended to the board of trustees by the rate 11 commission is to be accompanied by a statement that 12 the proposed rate change is consistent with 13 constitutional, statutory, or common law as amended 14 from time to time; enhances the district's ability 15 to provide adequate sewer and drainage systems at 16 facilities or related services; is consistent with 17 and not in violation of any covenant or provision 18 relating to any outstanding bonds or indebtedness of 19 the district; does not impair the ability of the 20 district to comply with applicable federal or state 21 laws or regulations as amended from time to time; 22 and imposes a fair and reasonable burden on all 23 classes of ratepayers. 24 The rate commission received a rate 25 change notice from the district on February 26th, 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 8 1 2018. Under procedural rules adopted by the rate 2 commission, any person affected by the rate change 3 proposal had an opportunity to submit an application 4 to intervene in these proceedings. An application 5 to intervene was filed by the Missouri Industrial 6 Energy Consumers. 7 The rate commission originally had until 8 June 26th, 2018, to issue its report on the proposed 9 rate change notice to the board of trustees of the 10 district. The rate commission requested an 11 additional 45 days to issue its report, and on 12 May 1st, 2018, the district's board of trustees 13 granted the rate commission's request. The rate 14 commission must now issue its report on or before 15 August 10th, 2018. 16 Since February 26th, 2018, the rate 17 commission has received testimony from MSD staff, 18 the intervenor and the rate consultant. The parties 19 have also engaged in discovery requests. Technical 20 conferences were held on April 4th, 2018; May 17th, 21 2018, and June 7th, 2018, where the participants and 22 the rate commission were given an opportunity to ask 23 questions of those submitting testimony. 24 A prehearing conference for the purpose 25 of identifying any issues raised by the rate setting 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 9 1 documents and the prepared testimony previously 2 submitted was conducted on the record on June 21st, 3 2018. Each participant in the prehearing conference 4 submitted on or before June 28th, 2018, a prehearing 5 conference report describing the issues raised by 6 the rate setting documents and the prepared 7 testimony together with a brief description of each 8 participants' position, if any, on each issue and 9 the rationale therefore. 10 Ratepayers who do not wish to intervene 11 are permitted to participate in on-the-record public 12 hearing sessions conducted in several sessions 13 beginning on May 20 -- May 8th, 2018, and concluding 14 today. The rate commission's operational rules 15 provide that this public hearing session will be 16 held on the record to permit ratepayers and 17 taxpayers to testify regarding the proposed rate 18 change; receive into evidence any prepared testimony 19 previously submitted to the commission subject to 20 any valid objections, together with discovery 21 responses and transcripts of the technical 22 conferences; permit the commission members to ask 23 questions regarding any issue addressed by the 24 prepared testimony or any other element of the 25 proposed rate change; and permit closing arguments 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 10 1 by the district, the intervenors, and legal counsel 2 for the rate commission. 3 Before proceeding to other aspects of 4 this public hearing, we will begin with a public 5 comment period. Those wishing to speak should have 6 signed in on the sheet provided there at the door 7 and will be called in the order of the names listed 8 thereon. Each ratepayer should identify themselves 9 and any organizations represented by such ratepayer. 10 Are there members of the public present 11 who wish to comment? 12 Seeing several. Is the sheet back 13 there? Could you bring that forward, please. 14 Thank you. We will -- prior to the 15 public comments, we will have the district briefly 16 summarize the rate change proposal and then we will 17 move on to the public comment period. 18 Mr. Hoelscher, please proceed. 19 MR. HOELSCHER: Thank you, Mr. Chairman. 20 Thank you public who are in attendance 21 and those rate commissioners who haven't seen this 22 presentation before. I'm going to do a couple 23 things. One, I'm going to give you an overview of 24 MSD overall, give you a presentation on the existing 25 stormwater funding that exists within MSD, talk 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 11 1 about -- and then talk about the stormwater rate 2 proposal. 3 Those of you who have specific problems, 4 we will also -- we have some MSD personnel here 5 regarding specific issues. After this 6 presentation's done and the public comment's done 7 and we close, if you'd like to talk with those 8 individuals, they're here to have discussions with 9 you as well. 10 So, first of all, a quick overview of 11 MSD. We are a government utility created under 12 provisions of the State Constitution and have a 13 voter-approved charter. Our governance consists of 14 six board members, three from the city, three from 15 the county. We are two utilities in one. We are a 16 wastewater utility with a separate set of revenues 17 and a separate set of requirements, as well as a 18 stormwater utility. We collect separate revenues 19 and those revenues are not mixed. Those collected 20 for wastewater are spent for wastewater. Those 21 collected for stormwater are collected for 22 stormwater. 520 square mile area, 1.3 million 23 customers, 88 different municipalities exist within 24 MSD's boundaries. On the wastewater side, seven 25 treatment plants are treating approximately 350 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 12 1 million gallons per day of sewage, and just about 2 10,000 miles of storm sewers, which makes us the 3 fourth largest sewer system in the United States. 4 Current status of stormwater funding, 5 most recently we've had something called Proposition 6 S in April 2016. What that addressed was the 7 ability for MSD to have a district-wide fund in 8 order to operate and maintain the storm sewers. 9 Prior to the passage of Proposition S, MSD owned and 10 operated as funded the public storm sewer system 11 within I-270 and east of Lindbergh. West of 12 Lindbergh and west of I-270 MSD became responsible 13 for the public stormwater system in 1989, but was 14 not given any funding. With the passage of 15 Proposition S, for the first time MSD actually has a 16 revenue source to operate and maintain the public 17 storm sewer system. And again, the public storm 18 sewer system being storm sewers, inlets, manholes 19 and fully paved concrete channels. 20 Current status of funding. If you look 21 on the upper left-hand corner, MSD currently 22 collects two sources of revenue for stormwater. One 23 is a 2 cent per 100 dollar valuation property tax, 24 so a charge of .0188. That 2-cent tax is to take 25 care of the regulatory side of our stormwater 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 13 1 services and that is addressing pollutants that are 2 transmitted to local creeks and streams during 3 rainfall events. That tax has been in place, 4 designated specifically for that purpose, since 1979 5 prior to the Hancock Amendment, and it has proved 6 sufficient for us to address our stormwater 7 regulatory issues. 8 We also currently have the stormwater 9 tax, that is the 10-cent property tax that was 10 passed with Proposition S. Again, for the first 11 time MSD actually has a revenue to operate and 12 maintain the public storm sewer system that it owns. 13 With the passage of Proposition S, there were 23 14 other sources of stormwater revenue that were 15 restricted by geographic areas that were either 16 eliminated or set to zero. When we did that, it 17 resulted in a pot of $67 million. This map is the 18 one we used during Proposition S and is still on our 19 website. MSD went through its list of stormwater 20 issues regarding erosion and flooding, took the 21 prioritized projects, and we're going to use that 22 $67 million to work down that list. 23 If you look on our website, that map is 24 there. Within each one of those dots is a number. 25 That number refers to a project on spreadsheet. And 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 14 1 if you go to that, you'll see on that spreadsheet 2 where the project is, what the problem is, what the 3 resolution is, how much we're spending and when it 4 will get done. We have about 30 percent of those 5 projects constructed, another 30 or 40 percent that 6 are under design, and another 30 or so will be 7 addressed in the near future. 8 So, that 67 million, again, is 9 addressing district-wide erosion and flooding. The 10 kick is once that $67 million is spent, there are no 11 other revenues. The pot becomes empty. 12 This rate proposal is to see if the 13 voting public would like for MSD to continue 14 providing erosion and flooding control projects 15 throughout the district. That's the purpose of this 16 rate proposal. 17 Just a graphic de -- well, a graphic 18 example of some of the problems. There's localized 19 flooding. Oftentimes that reveals itself of 20 localized flooding in backyards where stormwater's 21 not getting away, where stormwater's causing issues. 22 Regional flooding. Not just like the Meramec that 23 we've had the problems twice over the last 30 24 months, but areas such as River Des Peres or Fishpot 25 Creek or some of the other smaller creeks, smaller 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 15 1 creeks in the area that have a little flooding. 2 And then erosion. In this example you 3 happen to see what's next to a street where we have 4 erosion that's threatening homes, threatening 5 garages, threatening roadways. 6 A lot of the solutions to these problems 7 are being proposed are to try and find engineering 8 solutions. You'll find that a lot of the options 9 that we're considering are actually purchasing 10 properties and getting folks out of these dangerous 11 situations. 12 How big does the pot look? MSD, as part 13 of its regulatory service, collects all kinds of 14 stormwater problems throughout the district. This 15 is a map that's depicted of the issues that we have 16 been made aware of by either the public or the 17 individual municipalities. There's about 500. At 18 the time we did this count, there's about 500. 19 Totals about 562 million. These are preliminary 20 estimates of the entire program, about what the size 21 is. There is no funding to start addressing these 22 issues. The dots you see out there, they range from 23 a lot of things. There are issues where there is 24 erosion that is up to the back door of a house all 25 the way down to folks who are dissatisfied with 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 16 1 after a storm water sits in their backyard too long. 2 There's just a whole range of problems, but that 3 gives you a sense of about the size of the issue. 4 What MSD's proposing is to fund a $30 5 million per year capital stormwater program. The 6 way to do this is to charge based on impervious 7 area. Kind of in a condensed way, the average 8 charge proposed for a single family home is $2.25 9 per month, or $27 per year to fund this program. 10 Tax-exempt entities will be subject to the 11 stormwater capital rate as well. Again, it's meant 12 to address unfunded stormwater issues, which are 13 flooding and erosion issues. Based on what we know, 14 we can get the program done in about 30 years. That 15 is a guess. Stormwater problems go up and they go 16 down. Sometimes there are problems and by the time 17 you get to them, they're not problems anymore and 18 new problems exist. So, it's kind of a moving 19 target. It's a guess we can get it done in about 20 that time. 21 Creeks and streams as they are now will 22 continue to remain private, and the floodplain 23 management responsibilities, those individuals who 24 are located in the floodplains, have homes there, 25 the floodplain managers are currently individual 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 17 1 municipalities in the county. That responsibility 2 will remain with them. 3 Again, we're going to base this on 4 impervious rate -- impervious area. What's an 5 impervious area? That's things such as rooftops, 6 concrete, driveways, sidewalks, any place where the 7 water hits the ground, hits a hard surface, doesn't 8 soak in, and run off. We're going to base your 9 charge on how much of that you have on each 10 property. The amount of that extra runoff, that 11 immediate runoff that comes off those impervious 12 areas is the biggest driver we have in generating 13 the water that causes the issues that we're trying 14 to address. We believe it's a fair way to 15 distribute the revenue contributions to address 16 these areas -- to address these problems. It's a 17 method that's commonly used throughout the United 18 States. 19 And again, as I mentioned, all public 20 and private properties as well as not-for-profit are 21 proposed to pay for this rate. 22 I'm not going to go through this in 23 detail, but if you remember ten years ago MSD went 24 through the process of putting forward stormwater 25 revenue through an impervious rate, not a voted-on 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 18 1 charge, but an impervious rate. We based it on what 2 we knew throughout the country, what we knew on past 3 Supreme Court rulings in the State of Missouri. 4 Ultimately, the Supreme Court decided that the 5 problem with the rate we were proposing is they felt 6 that folks should be able to vote on that rate. 7 Therefore, it was overturned and we're where we're 8 at today. One of the things that did come out of 9 both the ruling as well as some of the proceedings 10 from this rate commission, they felt impervious area 11 was a fair way to distribute the cost of these 12 programs. You're seeing that in this proposal 13 today. 14 We're going to base this on something 15 called ERU or equivalent residential units. It's 16 the average amount of square footage on the average 17 residential property. In MSD's boundaries, that 18 happens to be 2,600 square feet. How did we come up 19 with the proposed rate? We took the total amount of 20 impervious area or the number of ERUs, depending how 21 we calculated it, divided by what we -- the 22 recommended program of about $30 million per year 23 and that's how we came up with the charge. Again, 24 in general, the charge is $2.25 per month for the 25 average property owner. Now, there are variations 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 19 1 to that. I'm going to go down this chart and give 2 you a little more detail about how much MSD is 3 proposing individual groups pay towards this issue. 4 Single family residential customers we 5 calculate on a four-tier system. That will depend 6 on how much impervious area they have on their 7 property. We're going to do it based on four 8 different tiers. It's a common practice that's used 9 for residential properties throughout the county, 10 and it's going to be basically the amount of 11 impervious area. 12 So, if you see under tiers, we'll have 13 something called tier one. If your property has 14 between 200 and 2,000 square feet of impervious area 15 on your residential property, you'll be asked to pay 16 a $1.42 a month. That represents about one quarter 17 of the residential properties in MSD's boundaries. 18 If you're in tier two, which is 2,001 to 19 3,600 square feet, you will be asked to pay $2.25 20 per month or about $27 per year. Half of MSD's 21 residential customers fall in that tier two bucket. 22 Then for some of the larger properties 23 that have more impervious area residential between 24 3,601 and 6,000 square feet will be asked under the 25 proposal to pay $3.74 per month; and if you're a 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 20 1 residential customer with 6,000 square feet or more 2 of impervious area, you'll be asked to pay $6.84 per 3 month. 4 Now, those are for residential 5 customers. Multi-family, commercial customers and 6 other nonresidential customers are going to be 7 charged based on ERUs, equivalent residential units 8 and, again, the average residential unit has 2,600 9 square feet. So, we're going to bill nonresidential 10 properties on the number of ERUs that are on their 11 property. 12 Here's an example. The commercial 13 customer has 10,000 square feet of impervious area. 14 Take that 10,000, divide it by 2,600, which is one 15 ERU. You come up with about 3.85 ERUs. MSD rounds 16 that up to 4, charges you 4 times $2.25 per month, 17 which is the cost of an ERU. That commercial 18 property would then be paying $9 per month for this 19 rate. 20 The rates would start to be collected in 21 January 2020, if it passes. The first full fiscal 22 year that we would collect revenues would be 23 starting July 1, 2021. 24 Under this scenario, single family 25 residential units will be paying about $14 million 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 21 1 towards the $30 million a year pot. Nonresidential 2 customers will be paying about $16 million towards 3 the $30 million pot, and it's simply a function of 4 where the impervious area happens to exist. 5 Frequency of billing will depend. For 6 those who currently are MSD wastewater customers, 7 that charge will simply be added to your monthly 8 bill. We do have customers who are not wastewater 9 customers and a good example would be a very large 10 parking lot that doesn't have wastewater service. 11 Larger nonresidential areas that have at least 20 12 ERUs of impervious area, our plan is to also bill 13 them once a month. It will be the only bill they 14 get from MSD and that's for stormwater service and 15 not wastewater. And then, finally, all other 16 customers who don't receive an MSD wastewater bill 17 and have a low amount of impervious area, we're 18 going to bill them on a quarterly basis. We do have 19 residential customers who aren't wastewater 20 customers. They would be paying typically $2.25 per 21 month. It's not cost effective for MSD to send a 22 monthly bill to collect $2.25 per month. So, those 23 folks we plan on billing quarterly for $7.75 for 24 every three months. 25 There are -- forgot to change it. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 22 1 There are incentive programs if you take 2 your impervious area and change it to pervious. 3 Simply, it won't count as impervious area. So, 4 green roofs and engineered pervious pavement are not 5 billable areas. The example we saw ten years ago 6 when we started the impervious rate is somebody, for 7 instance, taking their back concrete patio, they 8 want to replace it, and they replace it with 9 pervious blocks or pavers that allow water to soak 10 into the ground. That will change it from an 11 impervious area to a pervious area. For a 12 residential customer, if they do enough of that to 13 lower them a tier, it will impact their rates. 14 For a commercial customer, for every 15 2,600 square foot block of impervious area that they 16 do something like that to, they would then have 17 their rate reduced by $2.25 per month. 18 We do have properties that run off 19 directly to large rivers, Missouri, Mississippi, and 20 Meramec that MSD has no responsibility for and 21 there's other equivalent situations. They will 22 receive a 70 percent credit on their stormwater 23 bill. That comes from the fact that 30 percent of 24 the impervious area in the district exists on things 25 like public roads, public streets, public sidewalks 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 23 1 that are in the public right-of-way. Those 2 impervious areas are not being measured because they 3 also serve as stormwater conveyance facilities, but 4 there do need -- we need to capture that revenue -- 5 that capture somewhere. So, everybody will be 6 expected to at least pay 30 percent on the rate. 7 That's the largest credit that anybody will be able 8 to get. 9 Best management practices. For 10 residential customers who have taken 500 square feet 11 of their impervious area and bring it to a treated 12 area or a rain guard that meets our current 13 standards for rain guards, which is about a one-year 14 store, we can offer an upfront incentive payment of 15 $135 towards the cost of putting that in place. 16 That presents a savings to the typical residential 17 customer of five years of stormwater rate. 18 Commercial customers, if they take the 19 impervious area, instead of removing an ERU, for 20 every ERU that they instead let remain but run it 21 off to an area such as a rain guard, we'll allow 22 them a 50 percent credit on the impervious area that 23 is going to a rain guard. 24 There's also a low-impact development, 25 which could result in a 35 percent credit. This 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 24 1 applies when the impervious area on a residential 2 property is less than 15 percent of the total parcel 3 area and the minimum size of at least 3 acres. 4 There's an environmentally sensitive development 5 design standard that exists throughout the country. 6 That combination reduces the amount of runoff coming 7 off of impervious areas. We're going to take 8 advantage of that and folks in that situation can 9 apply for a 35 percent credit. 10 What does the timeline look like? 11 MSD -- I'm repeating some of the things that 12 Chairman Toenjes just said. 13 We submitted a proposal to the rate 14 commission on February 26th, 2018. The rate 15 commission has 165 days to do this review. 16 Technical meetings were held, as the Chairman 17 indicated. If you go to MSD's website at 18 stlmsd.com, you will find a full record of every 19 testimony, every transcript, every exhibit that's 20 been submitted, as well as the rate proposal itself, 21 in case you're interested. Public hearings, this 22 being the last one. 23 Under the current schedule, the rate 24 commission is scheduled to deliver our board of 25 trustees a recommendation by August 10th. Between 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 25 1 August and the end of the calendar year our board is 2 scheduled to review the recommendation from the rate 3 commission and basically consider the same factors 4 that the rate commission considered to decide 5 ultimately what MSD's proposed rate to the public 6 will look like. 7 Assuming we move forward, right now the 8 earliest chance for a public vote is in April 2019. 9 There could be one of two results. Assuming it 10 stays somewhat the way I've directed to you, in 11 April 2019 the public could vote yes and if they do, 12 MSD will start collecting that revenue in 13 January 2020. We'll start the process of putting a 14 $30 million per year program in place. If the 15 public vote no -- votes no, MSD will not provide the 16 service. 17 And, Mr. Chairman, we do have some 18 information. Again, the rate commission proceedings 19 are on the website. I would offer again, after this 20 public presentation's done, if some individuals 21 would like to talk about individual things with any 22 of our staff, we can leave this room. You don't 23 want to disrupt the public proceedings. We can have 24 that discussion after you're done with anything 25 you'd like to speak with the rate commission about. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 26 1 Mr. Chairman, that completes the 2 presentation. 3 COMMISSIONER TOENJES: Thank you, 4 Mr. Hoelscher. I appreciate that. 5 We will move forward, then, with the 6 public comment in the order of signing in. So, the 7 first person to sign up is Ryan Thomas. 8 Ryan, thank you for being here today and 9 we look forward to hearing your comments. 10 MR. THOMAS: Sure. Could I spin this 11 around to face the commission? 12 COMMISSIONER TOENJES: You may turn it 13 any direction you care to. 14 MR. THOMAS: Okay. Thank you, 15 commissioners. My name's Ryan Thomas. I'm the city 16 administrator for the City of Wildwood. Appreciate 17 hearing the presentation. Stormwater issues are 18 quite prevalent in Wildwood, as I'm sure they are 19 throughout the MSD district. We frequently hear 20 from our residences about various local flooding and 21 erosion issues, and I think it's a very good thing 22 that MSD is looking at options to address not only 23 the wastewater, but continuing to see how it can 24 fund stormwater projects. 25 I only have a couple of comments related 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 27 1 to what I've seen thus far. Of course, you have the 2 map identifying the roughly 500 projects that have 3 been identified. I do know from hearing from our 4 residents that there are a number of other projects 5 that don't appear on that map, and I've already 6 started the process of trying to put together a list 7 to provide to the staff to make sure that those 8 other locations are considered. 9 And related to that, this is maybe more 10 of a question. The funds are, obviously, going to 11 be collected district-wide and then prioritized, as 12 I understand, on a cost to benefit analysis. The 13 question would be is how to fairly distribute that 14 regionally because I guess the potential exists that 15 funding will be collected throughout the district, 16 but maybe more of the projects occur in one area 17 where some bigger identified problems exist. The 18 question would be is: Has anything been considered 19 as to, perhaps, looking at each watershed separately 20 and the funds that are collected in each watershed 21 than be devoted to projects in those watersheds? 22 That would be a way to, I think, potentially ensure 23 that some -- any of the fees that are paid by 24 people, they have some assurance that it's going to 25 return to projects in their area. I'm sure 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 28 1 everyone -- I'm new to really seeing all this 2 information. It may have been something that's been 3 considered already, but I just thought I'd throw 4 that out as something to keep in mind. Certainly as 5 this moves forward to the next step or the final 6 step of requesting voter approval, I think the 7 voters will want to see how is this going to help 8 our area versus the entire district. 9 So, appreciate everything you're doing 10 here and, as I said, I'll continue to identify 11 projects for your staff and hope that if this moves 12 forward, we'll be able to see some projects occur in 13 our part of the county. So, unless there's 14 questions for me, that's all I have. 15 COMMISSIONER TOENJES: Any questions for 16 Mr. Thomas? 17 Yes, Mr. Schoedel. 18 COMMISSIONER SCHOEDEL: Has the City of 19 Wildwood ever considered doing their own, some type 20 of fee structure to help alleviate some of their 21 individual projects and erosion and flooding issues 22 within the City of Wildwood? 23 MR. THOMAS: The city has undertaken 24 some projects itself as it pertains to city 25 infrastructure. It has mostly involved major creek 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 29 1 erosion impacting roadways potentially from damage. 2 We've completed a number of projects with existing 3 city funding where it protects public 4 infrastructure. As it pertains to private 5 properties, we do not have a revenue source as a 6 city. We had about nine years ago put on our ballet 7 the parks and stormwater sales tax and it did not 8 pass. It was very close, and it's something that we 9 are also considering maybe again in the future both 10 for the purposes of parks and stormwater. So, 11 currently no, but potentially we may pursue 12 something at the city level as well. 13 COMMISSIONER SCHOEDEL: Thank you. 14 COMMISSIONER TOENJES: Yes, Commissioner 15 Stein. 16 COMMISSIONER STEIN: Mr. Thomas, do you 17 feel the City of Wildwood has adequate procedures in 18 place for permitting planning and zoning to reduce 19 the number of potential problems in the future? 20 MR. THOMAS: I believe that we do. We 21 have, I believe, some of the most restrictive 22 environmental ordinances related to development. 23 And certainly any proposal that comes forward we're 24 working collectively with the MSD engineering staff 25 on reviewing projects and finding opportunities for 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 30 1 low-impact development methods and best management 2 practices for stormwater. So, I believe we do, and 3 we share with MSD in trying to do everything we can 4 to prevent future stormwater issues from escalating. 5 COMMISSIONER TOENJES: Further comments, 6 questions? 7 Commissioner Goss. 8 COMMISSIONER GOSS: Yes. Has the City 9 of Wildwood participated in any shared funding 10 programs with other agencies to address problems in 11 the city? 12 MR. THOMAS: Yes, we have. Some of the 13 projects that I mentioned that deal with protection 14 of public infrastructure, we've leveraged city 15 funding with some grant programs and I believe one 16 of those many years ago was actually through MSD, if 17 I'm not mistaken, but I know we worked with the Army 18 Corps of Engineers and the Department of Natural 19 Resources on some projects as well. 20 COMMISSIONER GOSS: Can you describe 21 those grant programs in anymore detail in terms of 22 the amount of funding, who initiated the grant 23 program? Was it something that was just available 24 and Wildwood pursued it, or did somebody reach 25 out -- did an agency reach out to Wildwood about 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 31 1 that program? 2 MR. THOMAS: It's been a number of years 3 since we've had a project such as that. As I 4 recall, some of the projects the city initiated and 5 then there were others that the Army Corps of 6 Engineers had initiated, and then I believe MSD was 7 involved in identifying opportunities like that as 8 well. Of course, a lot of times, as you-all are 9 probably aware, MSD will end up completing the 10 stormwater project because it's protecting your 11 wastewater infrastructure, which ends up addressing 12 two issues through the need to prevent sanitary 13 sewer line from getting washed out from creek 14 erosion. That's a common example, I think, that's 15 been seen. 16 COMMISSIONER GOSS: Has the city 17 participated in other grant funded -- shared funding 18 programs outside of the stormwater context? For 19 example, road building or road maintenance. 20 MR. THOMAS: Absolutely. They're mostly 21 in the area of transportation through the programs 22 that East-West Gateway manages, surface 23 transportation program, the congestion mitigation 24 and air quality program, the transportation -- used 25 to be called transportation enhancements program for 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 32 1 pedestrian, bicycle-type projects. So, there seems 2 to be a lot of funding out there for transportation 3 related projects with outside funding through 4 federal grants that the city's been very involved 5 with. The municipal parks grant is another that 6 we've taken advantage of for municipal parks 7 project. 8 COMMISSIONER GOSS: Have you given any 9 thought to how a shared funding program with MSD 10 could work in the context of this stormwater rate 11 when it's being proposed? 12 MR. THOMAS: Well, I haven't thought of 13 it until you just mentioned it, but certainly 14 similar to these other programs, if MSD were to have 15 this, this, this new funding it could potentially 16 consider offering a similar type grant program where 17 maybe there's a competitive process with 18 municipalities submitting project proposals where 19 the city provides a local match to support the 20 project as well. That would, obviously, extend the 21 funding further. That's just off the top of my 22 head. I hadn't thought about that until a couple 23 minutes ago. 24 COMMISSIONER GOSS: And do you believe 25 that the City of Wildwood would want to participate 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 33 1 in such a shared funding program, if it were 2 available? 3 MR. THOMAS: I think we would, yes. 4 COMMISSIONER GOSS: And do you have any 5 opinion as to whether that kind of shared funding 6 program would maximize the funds available for 7 stormwater control that's being proposed? 8 MR. THOMAS: I think it definitely 9 would. I think that's a very, very good idea to 10 consider related to this. 11 COMMISSIONER GOSS: Thank you. 12 MR. THOMAS: Sure. 13 COMMISSIONER TOENJES: Yes, Commissioner 14 Schoedel. 15 COMMISSIONER SCHOEDEL: Just to clarify, 16 you've done a lot of research, your city has done 17 research and found grants for transportation and 18 parks. In that research did you ever find any kind 19 of grants out there specifically for stormwater? 20 MR. THOMAS: Specifically for 21 stormwater, it seems compared to the transportation 22 area there's, there's not as much. I think with 23 transportation projects there can at times be a 24 stormwater element to it, but strictly stormwater 25 grant programs I've not seen a lot other than some 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 34 1 of the work with the other agencies like the Army 2 Corps of Engineers who typically initiate and manage 3 stormwater projects as well. 4 COMMISSIONER SCHOEDEL: Thank you. 5 MR. THOMAS: Sure. 6 COMMISSIONER TOENJES: Yes, Commissioner 7 Brockmann. 8 COMMISSIONER BROCKMANN: Does your 9 municipality charge a parks and stormwater tax? 10 MR. THOMAS: It does not. We placed it 11 on the November 2008 ballot and I think it was 12 defeated about 52 to 48 percent, but we've 13 considered pursuing that again at some point in the 14 future. 15 COMMISSIONER TOENJES: Any further 16 questions or comments? 17 One of the points that we take into 18 consideration in our five points is to impose a rate 19 that is fair and reasonable on all classes of 20 ratepayers. So, I appreciate you bringing this up 21 and it's certainly something that we will have on 22 the record as we move forward. Thank you so much 23 for taking your time to be here this morning. 24 MR. THOMAS: Appreciate it. 25 COMMISSIONER TOENJES: Thank you. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 35 1 The next person who is signed up to 2 provide some comments is Laverne Mitchom. 3 MS. MITCHOM: Good morning. 4 COMMISSIONER TOENJES: Good morning. 5 MS. MITCHOM: I'm Laverne Mitchom and I 6 am a former council member for the City of Ferguson. 7 I'm here to present a letter from citizens in 8 Ferguson who are experiencing severe soil erosion. 9 Our town has experienced serious land 10 and property issues with no assistance from MSD, and 11 at times has not been treated very well, considering 12 that Ferguson was the city that organized meetings 13 to bring about a vote to create St. Louis 14 Metropolitan Sewer District with four other 15 additional communities. MSD accepted all the funds, 16 but did not make any improvements for years. It is 17 amazing the way this city has been treated after 18 being instrumental in the acceptance of MSD as the 19 sewer district. 20 If MSD wants another yes vote from the 21 voters, they need to determine how to help residents 22 that are losing their homes and land, in many cases 23 their life savings, because stormwater sheds were 24 not maintained in Ferguson. A home is an investment 25 you made to hopefully live in after you retire. In 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 36 1 local subdivisions there has been no upkeep and 2 other subdivisions received multiple repairs. 3 Residents do not understand the choices or favors 4 that are happening. 5 MSD is an entity that should keep 6 activities at arm's length, and all residents and 7 subdivisions in the area should be treated equally. 8 Possibly asking voters what they would 9 like to see corrected as a brainstorming meeting 10 would improve how people see and perceive MSD. 11 Choosing high-visibility places to repair can cause 12 more harm than goodwill because many residents see 13 the same areas being repaired multiple times. 14 Many voters have very negative opinions 15 of MSD. Big adjustments needs to be made to improve 16 relations between MSD and the voters prior to 17 bringing a tax increase to the voters. 18 This letter is signed by residents who 19 have lived in Ferguson maybe 40 years, some 20, 30 20 years. I have signed this letter. My husband and 21 I, we've only been in Ferguson 12 years, but Kathy 22 Larue, who has been in the City of Ferguson for 40 23 years, has a lot of historical, detailed information 24 and she actually experienced her daughter and 25 son-in-law having to move because the erosion got so 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 37 1 bad they had to leave their home. So, this is 2 signed by Kathy Larue, Paul Larue, Clyde Mitchom, 3 Jerry Wright, and Laverne Mitchom, and I have 4 attached several citizens who attended the recent 5 town hall on June 20th in Ferguson. 6 COMMISSIONER TOENJES: That's wonderful. 7 Thank you very much. 8 Do any of the rate commissioners have 9 any questions for Ms. Mitchom? 10 Yes, Commissioner Goss. 11 COMMISSIONER GOSS: Ms. Mitchom, thank 12 you for coming today. We've talked about a credit 13 program being available for residents and that was 14 mentioned in the testimony that you heard earlier 15 and that's been something that's been the subject of 16 a lot of debate with various witnesses who have 17 appeared before this commission. Do you believe 18 that a stormwater credit program as part of this 19 rate would help to improve the relationships of MSD 20 with the residents of the district, in particular 21 the residents of Ferguson? 22 MS. MITCHOM: Okay. When you say 23 credit, is that along with the proposal to tax the 24 citizens? 25 COMMISSIONER GOSS: Yes, ma'am. As part 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 38 1 of the rate proposal folks who undertake projects in 2 their property to address stormwater issues would be 3 eligible for a credit against the cost of those 4 projects. 5 MS. MITCHOM: If it would directly help 6 us in terms of the soil erosion, because many of the 7 citizens in Ferguson they believe that we're having 8 soil erosion due to the maintenance of the 9 stormwater and wastewater. But if we were given 10 that and it would directly help with our soil 11 erosion problem, they may -- you know, they possibly 12 would want to do that, but we want direct help with 13 what's going on with our property eroding away. 14 COMMISSIONER GOSS: Do you know if the 15 City of Ferguson has passed a stormwater and parks 16 tax? 17 MS. MITCHOM: I don't think they have. 18 I have Councilwoman Ella Jones here and we were 19 talking on our way here and we were listening to the 20 person who was just before me. No, we do not. And 21 she shook her head, no, we don't. We do not. 22 COMMISSIONER GOSS: Do you know if 23 that's something the City of Ferguson would consider 24 placing on a ballot and trying to adopt? 25 MS. MITCHOM: Well, right now, as most 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 39 1 of you all know, much of what's going on in Ferguson 2 right now there isn't a lot of money to do a lot of 3 things, but that would be something that could 4 possibly, you know, be a suggestion and I'm not sure 5 if, you know, it would be passed, but that's 6 something we could look at. 7 COMMISSIONER GOSS: Do you think the 8 City of Ferguson would be more likely to pass such a 9 measure if the money generated by that measure could 10 be used to match funds available from MSD? 11 MS. MITCHOM: Yes. And it would be used 12 to help us with soil erosion? 13 COMMISSIONER GOSS: Yes, ma'am. 14 MS. MITCHOM: Yeah, I think so. 15 COMMISSIONER GOSS: Thank you, ma'am. 16 COMMISSIONER TOENJES: Any other 17 questions for Ms. Mitchom? 18 Thank you so much for being here this 19 morning. It's extremely helpful for us -- 20 MS. STUMP: Mr. Chair. 21 COMMISSIONER TOENJES: Yes. 22 MS. STUMP: I'm sorry. Lisa 23 interrupting you. 24 COMMISSIONER TOENJES: Yes, Lisa. 25 MS. STUMP: Can we get that letter put 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 40 1 in as an exhibit? 2 MS. MITCHOM: I'm sorry. I move to 3 submit this letter. 4 COMMISSIONER TOENJES: You could give it 5 to Ms. Stump and then it will become part of the 6 official record. Thank you so much. 7 Elaine Laura. Thank you, Ms. Laura. 8 Thank you for being here this morning. Please 9 proceed. 10 MS. LAURA: You're welcome. 11 Thank you everyone for this opportunity 12 to speak. My heartstrings are crossed that I do not 13 become too emotional during this portion. I'm just 14 an average Joe, retired teacher, 30 years with 15 University City. 16 I'm happy to report that I am a 17 homeowner and my taxes are current. My parents left 18 me two pieces of property. I'm current on those 19 taxes also. Unfortunately, I receive three MSD 20 bills every month and it's difficult. 21 You said that you were going to look at 22 how MSD and this tax rate proposal will affect 23 people. I'm a member of the north side. My 24 parents' properties are in the north side of 25 St. Louis. The average household income in the 21st 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 41 1 ward is a little less than $15,000 a year. My 2 monthly bill on the property in the 21st ward is $56 3 and some change. Once last year I got behind. MSD 4 called me every morning. I was afraid. 5 He talked about Wildwood and not wanting 6 to share the funds with and I felt the north side. 7 In the fourth ward where our homestead, where I grew 8 up, the average income is $13,000. We are affected 9 by LRA properties. 10 I can't get a loan on my parents' home 11 to make any type of improvements. I'm on fixed 12 income. My monthly bill on the homestead is $62 and 13 some change. MSD always puts change on that bill. 14 The average income household in that ward is even 15 less. 16 I think MSD has done a fine job with the 17 stormwater projects where you take vacant land 18 supposedly a homeowner has decided, but where I see 19 them in the fourth ward there's no homeowner there. 20 MSD has placed some plants and made stormwater 21 capabilities there. But I can't say that I support 22 this tax. I think that MSD lacks diversity. I am 23 concerned about where these projects will take 24 place. I look at this board and I don't feel 25 anybody lives like me up here. I don't think you 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 42 1 represent the area. I don't feel as though you've 2 made enough effort to find grants that will enable 3 this project. I don't think you have addressed 4 urban sprawl. Why should people move to areas that 5 are prone to flooding? 6 I don't think it's fair. I'm trapped. 7 No, I'm not trapped. I want to live on the north 8 side. I'm a taxpayer, but I need support. I did 9 try for the citizen's rate reduction, but because I 10 worked 30 years and I only live in one place I'm not 11 eligible for the deduction in my rates that MSD 12 offers. I can't get any support on my family's 13 homestead through that program. I guess I should be 14 happy that I'm not that poor. Thank you. 15 Any questions? 16 COMMISSIONER TOENJES: Any questions or 17 comments? 18 Ms. Laura, I will say that I also live 19 in University City and I'm current on my taxes, and 20 I appreciate you being here this morning to present 21 your perspective on what we're doing. Certainly we 22 will not ignore your comments and take it into 23 serious consideration as we move forward. 24 MS. LAURA: Thank you. 25 COMMISSIONER TOENJES: Our next member 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 43 1 of the public is Ella Jones. 2 MS. JONES: Mr. Chairman, I have nothing 3 to add. Laverne Mitchom said it all. Thank you. 4 COMMISSIONER TOENJES: Thank you so much 5 for being here. 6 Are there any other members of the 7 public who arrived subsequent to this? 8 Thank you. For those of you who are 9 here from the public, each and every one of you, 10 thanks so much for being here today and providing 11 your testimony. I'm going to suggest that we will 12 take a brief break until 10:10 and then we will 13 continue our meeting. Stand adjourned until 10:10. 14 (A short break was taken.) 15 COMMISSIONER TOENJES: We will now 16 resume our meeting. We'll go back into session. 17 Our public comment being over. Are there any other 18 comments on the public comments? 19 During the break a couple of folks had a 20 couple of questions and I wanted to allow people to 21 make their comments prior to moving on to procedural 22 matters. 23 COMMISSIONER GOSS: Mr. Chairman, I 24 think you were going to address the composition of 25 the rate commission and respond to the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 44 1 representative nature of the commission I believe. 2 COMMISSIONER TOENJES: Yes. Thank you, 3 Mr. Goss. 4 Ms. Myers or Ms. Stump, do you have a 5 list of the agencies who have appointed people to 6 the rate commission. 7 MS. MYERS: I think it's in the rate 8 proposal. 9 COMMISSIONER TOENJES: I'd like for you 10 to bring up -- Mr. Malone, do you have those? 11 MR. MALONE: Yes. I believe -- 12 COMMISSIONER TOENJES: Would you, 13 please, remind us all all the agencies who we have 14 reached out to to appoint people to the rate 15 commission? 16 MR. MALONE: Sure, Mr. Chairman. The 17 2018 rate commission is composed of delegates from 18 the following organizations: The Associated General 19 Contractors, the St. Louis County Municipal League, 20 Lutheran Senior Services, St. Louis Council of 21 Construction Consumers, Greater St. Louis Labor 22 Council, Missouri Botanical Garden, the League of 23 Women Voters of Metro St. Louis, the Home Builders 24 Association, the Mound City Bar Association, North 25 County Incorporated, the Missouri Coalition for the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 45 1 Environment, the City of Ladue, the Engineers' Club 2 of St. Louis, the Missouri Industrial Energy 3 Consumers, and Education Plus. 4 COMMISSIONER TOENJES: Thank you. 5 And, Mr. Hoelscher, were there other 6 organizations who applied to be on the rate 7 commission? Because, as I understand it, each year 8 when there are openings on the rate commission, 9 anyone or any agency in the region can apply and ask 10 to have a representative on the rate commission, 11 that it's an open selection process. Am I correct? 12 MR. HOELSCHER: Yeah. There is a public 13 solicitation through a lot of different media 14 sources. In the past for the positions that are 15 available, and I won't go through the staging, but 16 for the 15 positions we'll have anywhere from 18 or 17 19 to 15 different organizations proposed for those 18 15 spots. A lot of it has to do with the timing and 19 who's coming off. In this particular case for this 20 last selection, we actually had 15. We had the 21 exact number to fill those spots. So, this year 22 there were not any others who had expressed a desire 23 to participate. 24 COMMISSIONER TOENJES: Thank you. I 25 think it's important that -- and as we were talking 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 46 1 about during the break, it is imperative to everyone 2 on the rate commission and certainly imperative to 3 the district that this commission is as 4 representative of the region and of all members and 5 people in the region as we can possibly make. 6 MR. HOELSCHER: I will just add, 7 Mr. Chairman. Matter of fact, it is a charter 8 requirement that the board takes very seriously in 9 selecting those organizations. 10 COMMISSIONER TOENJES: Thank you, 11 Mr. Hoelscher. 12 Is there someone on the telephone? I 13 guess not. 14 There was another question that was 15 discussed and this is maybe before we go on in the 16 procedural matters. Well, we'll hold that till we 17 get to the questions of the rate commissioners. 18 Are there any procedural matters at this 19 point? 20 MS. STUMP: Mr. Chairman. 21 COMMISSIONER TOENJES: Yes, Ms. Stump. 22 MS. STUMP: Yes. After the last 23 meeting, several of the commissioners had asked that 24 the district provide an update on the consent 25 decree, and I understand that Mr. Hoelscher is 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 47 1 prepared to do so at this time. 2 MR. HOELSCHER: Yes, I am. 3 That's what I get for trying to follow 4 along. So, I'm going to do exactly what a presenter 5 should not do. 6 You all have a one page chart in front 7 of you that I'm going to refer to later. I would 8 ask that you not pay attention to that as I discuss 9 the preamble to using this chart. So, I know that's 10 exactly backwards of the way I was trained, but I 11 trust we can get there. 12 We were asked to give an update on the 13 last consent decree amendment that MSD had proposed 14 to EPA and the Department of Justice. By 15 circumstance, within the last week that amendment 16 was actually approved by the federal judge and is 17 currently in place. Procedurally we do have to have 18 an adjustment of our long-term control plan, which 19 is part of the consent decree with the State of 20 Missouri, but we've had pre-discussions. We're in 21 the process of doing that. We don't see that being 22 a problem with the changes. So, I'm going to give 23 you as much as I can right now and let you know in 24 the future what additional information you'll get on 25 the impact of that. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 48 1 So, I want to, first of all, go over 2 just what MSD's considerations were during the 3 negotiation of the consent decree and that's going 4 to be important to understand the context. When we 5 were negotiating our consent decree, there were two 6 classes of expenditures that we had to keep in mind. 7 One, were those expenditures required to meet the 8 consent decree? There were also a significant 9 number of expenditures that were not part of the 10 consent decree. Operation and maintenance. 11 Treatment plants in most consent decrees are a large 12 part of the consent decree. MSD did not have a 13 major component regarding treatment plants. Another 14 one of those had to do with the solids handling 15 facilities at MSD. These are things that are not in 16 the consent decree. And that's the collection and 17 treatment and disposal of what we call biosolids and 18 I think what everybody else may think of as sludge. 19 At Bissell treatment plant and at Lemay 20 treatment plant we use a final stage of incineration 21 to incinerate the sludge and then dispose of the ash 22 through landfill. When we went through the consent 23 decree, we knew for operational purposes that those 24 incinerators, that sludge handling facilities at 25 Lemay and Bissell treatment plant were starting to 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 49 1 reach end of life. They were original to the 2 original plants that went in place in the 70s and 3 80s. We had originally scheduled that project to 4 start, general numbers here, in 2026 at a cost of 5 about $360 million. That was in our financial plan. 6 It's not something that the EPA or Department of 7 Justice saw, but it's something that we knew as a 8 future expenditure that we had to consider with 9 regard to affordability to our future rates. 10 The current system met and still meets 11 current regulatory standards for the incinerators 12 that we have in place, but after we signed the 13 consent decree there was a -- thank you. There was 14 a change in regulations. Our sewer sludge 15 incinerators were not falling under a specific part 16 of federal legislation when we signed the consent 17 decree. They did after we signed the consent 18 decree, and that change that was significant to us 19 was not that we change technologies or rehab or 20 replace the units when we felt it was necessary, but 21 additional requirement was put in place that once, 22 for our particular incinerators, once we did repairs 23 totaling at least 50 percent of the cost of the 24 original installation cost of the facilities, we had 25 to replace the incinerators with new technology. It 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 50 1 was a new provision that we fell -- that fell 2 under -- that we hit. 3 So, when we first evaluated that after 4 we signed the consent decree, the feeling was that 5 we probably could still maintain our schedule of 6 starting that $360 expenditure in 2026, that we be 7 able to operate and maintain the incinerator 8 facilities as they were. Now, understand when this 9 rule went into place, MSD was very close to having 10 already spent 50 percent on repair costs on those 11 incinerators. 12 Practically couple years after we took a 13 look at this, it became apparent that we could not 14 wait till 2026 to replace the incinerators. We 15 believe that we now need to start those incinerators 16 in 2021 at a cost of $360 million. So, if you think 17 what our overall financial evaluation would be, 18 we've now moved a $360 expenditure up five years. 19 As I said, the solids handling 20 facilities were not part of the consent decree, but 21 we did have a condition in the consent decree that 22 if there were regulatory changes after we signed it 23 that would impact MSD, that gave us the right and 24 the opening to go to EPA and Department of Justice 25 and request an amendment to the consent decree to 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 51 1 address those changes. And I will tell you not just 2 that change, but also the obvious impact, potential 3 impact on rates and affordability were a 4 consideration which EPA, Department of Justice, and 5 the Coalition for the Environment also recognized 6 that were an issue at hand. 7 So, as I mention, MSD went through the 8 process of getting that change approved. It has 9 been approved. It wasn't just the moving up of the 10 incineration project from 2026 to 2021, but it 11 included the delaying of some other part -- other 12 projects that were in the consent decree. 13 So, what I'm going to do now is now I 14 would like you to take a look at the chart. I want 15 to give you just a practical explanation of what 16 changes at a very high level were coming out of 17 MSD's capital program associated with the consent 18 decree. 19 If you take a look at the chart, these 20 are the lists of the CSO control activities. It's 21 the combined sewer overflow component of our consent 22 decree to address overflows in the combined sewer 23 areas. Under the River Des Peres storage tunnel, 24 the second through fifth lines you see arrows that 25 go from 16 years to 29 years, somewhere in that 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 52 1 area. Those four projects we proposed delaying 2 approximately five years, the start of those. What 3 you end up doing is instead of those tunnels 4 starting in 2021, they now start somewhere around 5 2026. I'm being very general here, but the idea was 6 to move things back so that we could afford the 7 incinerator project. 8 If you look under the River Des Peres 9 tributaries tunnel, that's the second blue area, 10 there's three construction projects that are in the 11 out-years. Same way there. Those were moved back 12 approximately five years for affordability reasons. 13 And then the upper River Des Peres 14 tunnel, storage tunnel. Those also were moved back 15 approximately five years. So, the consequences of 16 moving things back approximately five years also 17 extended the consent decree five years. 18 So, you will find MSD saying that now 19 instead of a final completion date of approximately 20 23 years for our consent decree, we now have a 21 completion date of approximately 28 years from the 22 date we started the consent decree. 23 One other item I would like to note, if 24 you look under the fourth blue block that says River 25 Des Peres CSO controls, you see a line that starts 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 53 1 in the middle of the six- to ten-year block and goes 2 to the end. One of the other items we proposed in 3 the consent decree change was to put a green 4 infrastructure program into the discharges that go 5 into River Des Peres similar to the $100 million 6 program that we're doing in the Bissell watershed. 7 This is the green infrastructure program and rain 8 guards that you see going, going in place. It 9 serves a slightly different purpose in the Bissell 10 watershed. Our $100 million program in the original 11 consent decree actually was in lieu of about a 12 $2 billion gray infrastructure, took care of all of 13 our discharge issues out of the combined sewer 14 system. This $20 million has a slightly different 15 purpose. The most immediate benefit we're looking 16 at is we know we will further enhance the retarding 17 of CSO volumes into River Des Peres by building this 18 green infrastructure. Simply holding stormwater 19 back so there's less overflow volume. As is 20 possible, we also, if we can identify them, reduce 21 the cost of gray infrastructure that's already 22 planned. So, this isn't replacing gray 23 infrastructure. It might have a benefit, but its 24 primary use is to further reduce the volume of CSO 25 overflows. For a lot of reasons it was an important 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 54 1 component of the program we put in place that I 2 believe result in all parties involved agreeing with 3 this program. 4 So, the formal -- the practical results 5 as much as I can give you on the cost side, we are 6 going to be presenting a wastewater rate proposal to 7 the rate commission. Right now we're scheduled to 8 do that in February 2019 for our rates from 2021 9 through 2024. It will be as soon as we're done with 10 this stormwater proposal. 11 Back on the last wastewater proposal, if 12 those who were on the committee at the time recall, 13 we were projecting and this is currently set that 14 the average customer in 2020 would be paying $60 per 15 month for wastewater service, and we were projecting 16 with no change and based on the current parameters 17 that with a reasonable borrowing of money in the 18 program that by 2024 the cost for the average MSD 19 customer for wastewater would go to $90. That is a 20 formal document that we submitted at the last 21 wastewater proceedings. 22 We have been analyzing, as we always do, 23 continuously in the program. Some things have 24 happened since you've seen that document. One is 25 this change, which will have a significant positive 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 55 1 impact on rates. MSD has been able to reduce its 2 operation and maintenance costs through a cost 3 savings initiative as beyond those that we 4 originally anticipated in the wastewater proposal 5 for 2017 through 2020. We continue to be able to 6 complete the capital improvement program at a 7 reduced cost compared to estimates. And also I will 8 tell you our finance team has done a great job of 9 really reducing the amount of finance costs for us 10 to be able to do this program. 11 So, you add all four of those together 12 and the result is an answer to what detail I'm sure 13 Mr. Stein will find not completely satisfying, but I 14 will give you everything I possibly can. So, again, 15 the projection was that we go to $90 per month by 16 2024. That's about 50 percent increase over four 17 years. 18 One of the statements that is in the 19 ruling by the judge is that with this change we will 20 definitely be able to keep all increases in the 21 single digits. And I am hopeful, but I won't know 22 and you won't know until we submit the rate 23 proposal, we're hopeful that for the next four-year 24 period the rate increases can be left put in the low 25 single digits for the next four years. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 56 1 So, instead of having -- if you do the 2 average, instead of the proposal where we thought 3 this was going to go at 50 percent over the next 4 four years, which without doing the math, is about 5 12 1/2 percent per year, if I'm getting that right. 6 We're talking about we might be able to get, for 7 instance, as low as a 20 percent increase over the 8 next four years, which would be something under 9 5 percent per year. I don't have all the details. 10 The details and any kind of commit we're going to 11 make to you, that's going to come later. We're 12 right now on the process of getting started with 13 preparing wastewater proposal. You will see a full 14 detail of what we propose through '21 through '24. 15 You will see the savings that result in '21 through 16 '24, plus the projected savings in rates beyond 17 2024. We plan on submitting that and we suspect it 18 will be a big part of the presentation to help, 19 again, explain the detailed changes when we on 20 schedule present a wastewater proposal to you in 21 February 2019. 22 Mr. Chairman, that's the information I 23 have available. 24 Oh, yeah. I guess -- I'm sorry. You're 25 right. One other thing. The actual amendment, the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 57 1 document that the judge submitted and signed off on, 2 it is listed as Exhibit 66. I think I said that at 3 the beginning. If you want to actually read the 4 legal technical document, it is Exhibit 66 in these 5 proceedings. 6 COMMISSIONER TOENJES: Thank you, 7 Mr. Hoelscher. 8 Questions or comments? 9 Mr. Mahfood. 10 COMMISSIONER MAHFOOD: Brian, in this 11 entire process, you know, kind of kept up with it 12 being part of the review process in the Coalition 13 for the Environment, approving the consent decree 14 change that you, that you proposed, which I think 15 rests on its merits and it's the right thing to do. 16 Questions have come up about shifting of resources, 17 and I'm sure you've heard this already. There's a 18 fear by some folks that complete projects in the 19 southern part of the district were taking away from 20 work in northern part of the district, and it may 21 have to do with people's perceptions, which you kind 22 of addressed between Bissell and the Lemay projects, 23 but there's a sense that we're going to be shifting 24 resources that might not have come out earlier in 25 the consent decree. Can you address that for me the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 58 1 best you can? 2 MR. HOELSCHER: Yeah, and I think in the 3 context what we talked about. One, you need to 4 remember this is a wastewater rate, and for a lot of 5 individuals it is sometimes difficult -- for some of 6 the staff sometimes it's difficult to differentiate 7 between wastewater and stormwater. For instance, I 8 think what was mentioned as an example is a lot of 9 the work we're doing in the north city of St. Louis 10 helping to demo buildings, helping to move people 11 out of flooded areas and that type of work. While 12 it may seem like a stormwater activity on the 13 surface, it's actually a wastewater activity to 14 prevent stormwater from getting in the system. 15 So, that being said, if you take a look 16 at the chart, you see the major change being the 17 movement of the tunneling work that we're doing. 18 Tunnels cause disruption and while it's very, very 19 important, there's very few people in their 20 day-to-day lives who are impacted by increased CSO 21 volumes. It is a water quality issue. It is 22 important. It does have to do with the ultimate 23 water quality in the River Des Peres and the 24 Mississippi River, but it isn't an issue having to 25 do with erosion in folk's backyards or basement 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 59 1 backups or any of those things. These changes won't 2 impact those type of day-to-day impacts that most of 3 our folks see. 4 On the positive side, on the 5 incineration there is, obviously, the incineration 6 has a discharge and while we are meeting current 7 regulations, this change over five years in advance 8 of the incinerators will result -- is this the topic 9 you want me to get to as well? 10 COMMISSIONER MAHFOOD: Yeah. 11 MR. HOELSCHER: So, the permit changes 12 result in about a ten times reduction in the 13 discharges coming out of the systems by permit and 14 then actual operation about 400 to 500 or four to 15 five times reduction in the actual pollutants that 16 discharge from the incinerators from where they're 17 at now. 18 So, I would say practically individuals 19 will not notice in their day-to-day lives a change 20 in service levels going down. Those folks who are 21 concerned or worried about the -- even though we're 22 meeting permit, the level of discharges that come 23 from the incinerators, and these are two 24 incinerators. One's in downtown St. Louis off of 25 Bissell -- off of Grand, and the other one's just at 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 60 1 the very south end of the city next to the River 2 City Casino. That's where these two incinerators 3 are. They will see a significant change in air 4 quality coming out of the incinerators. 5 Again, just to summate, there isn't 6 anything in this change that our regular customers 7 on a day-to-day will see something being delayed 8 that would benefit their day-to-day lives, and I 9 think that's the best way I can state it. 10 COMMISSIONER MAHFOOD: Can I follow up? 11 COMMISSIONER TOENJES: Please. 12 COMMISSIONER MAHFOOD: Brian, that's 13 great, because I wanted to get that out and get 14 everybody informed. 15 I think the other issue that I'm -- that 16 I have been hearing more has to do with community 17 work and probably green infrastructure type projects 18 that are going on that -- I can't give you any 19 detail. In some ways I'm letting you know that 20 there are folks out there that don't know any better 21 and we're trying to explain better to them what 22 these changes are in the consent decree and how 23 they'll benefit the St. Louis area, but there's a 24 fear by people that work in the community and 25 especially piggybacking and working on the green 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 61 1 infrastructure projects we have in place that those 2 projects would be shifted from the north side to the 3 south side by this change in the consent decree, 4 that emphasis will change. So, there's that fear. 5 MR. HOELSCHER: Okay. So, let me convey 6 that one specifically. There will be no negative 7 impact on the current green infrastructure or city 8 shed work that's going on now within the combined 9 area. A lot of it focused in the north part of the 10 city. 11 What you will see on a positive side, 12 especially for those who are interested in green 13 infrastructure, is the addition of $20 million of 14 additional green infrastructure to the River Des 15 Peres watershed that did not exist before in order 16 for us to be able to make this change. We are able 17 legally to really start addressing that through, 18 you'll see the same thing, grant programs, district 19 projects. That initiative will start as soon as we 20 get a formal approval from Missouri Department of 21 Natural Resources of our long-term control plan 22 change, which is part of the consent decree change. 23 So, if you're a green infrastructure 24 buff, this is nothing but a plus. 25 COMMISSIONER TOENJES: Any further 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 62 1 questions? 2 Yes, Mr. Stein. 3 MR. HOELSCHER: Oh, no. 4 COMMISSIONER STEIN: You knew you 5 weren't going to get away that easy. 6 MR. HOELSCHER: No. 7 COMMISSIONER STEIN: Brian, this is just 8 an engineering question. With respect to the 9 incinerators, are you looking at replacing them, 10 retrofitting them, or going with an entirely new 11 technology? 12 MR. HOELSCHER: So, since this is public 13 or will be soon, I'll make it public. What it 14 requires, for those who are technical, we currently 15 have a multiple hearth incineration system at both 16 locations. We will go to fluidized-bed 17 incinerators. One at Bissell. One at Lemay. 18 Similar to what we do now. The only difference will 19 be the discharges will be much cleaner from those 20 stacks. And I guess one more technical step 21 forward, our plan is to do it as a design-build 22 project as opposed to a design-bid-build project. 23 COMMISSIONER TOENJES: Any further 24 questions about that particular issue? 25 COMMISSIONER GOSS: Mr. Chairman. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 63 1 COMMISSIONER TOENJES: Yes, Mr. Goss. 2 COMMISSIONER GOSS: I just want to 3 clarify. The exhibit that you gave us, that's the 4 new proposed schedule, right? 5 MR. HOELSCHER: That's the new proposed 6 schedule that will go to the state as a proposed -- 7 we will be entering it as an exhibit as well. It's 8 going to the state as part of the proposed long-term 9 control plan change. 10 COMMISSIONER GOSS: Thank you. 11 COMMISSIONER TOENJES: Mr. Schoedel. 12 COMMISSIONER SCHOEDEL: In our last 13 discussion that we had there was concern about how 14 the next rate increase might impact our discussion 15 on the current stormwater rate increase. What you 16 just shared, it appears that that will extend out 17 the work and the benefit to the ratepayers. Is that 18 a true statement? 19 MR. HOELSCHER: That's true. We're 20 talking about, easy way to think of it, $4.7 billion 21 in 2010 dollars. We've added $20 million to that, 22 but do the same work. Instead of 23 years, we now 23 have 28 years. So, that can do nothing but help 24 bring rates lower. 25 COMMISSIONER SCHOEDEL: Thank you. Then 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 64 1 the other question related somewhat to our public 2 hearing today. The perception that north St. Louis, 3 specifically Ferguson today, does not get the 4 attention that south St. Louis might get. Some of 5 these changes help that work within north county 6 versus south county because it seems like some of 7 these projects that you're delaying are related more 8 to south county; is that correct? 9 MR. HOELSCHER: So, with regard to the 10 rate, the rate what I've just presented here on the 11 consent decree change, that has no impact on that 12 issue. As far as what work gets done in north 13 county, I think you've seen the maps, I would put to 14 you the $67 million package. It is district-wide. 15 In our minds we are giving as much attention to 16 everybody throughout the district regardless of 17 where they're located. This change will have no 18 impact on any of the issues that were brought up 19 today. 20 COMMISSIONER SCHOEDEL: With the 21 projects that would be potentially prioritized, if 22 we approve this and if the voters approve this, the 23 current projects priority, are those -- I haven't 24 had a chance to review that. Are they well 25 distributed through the overall district, including 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 65 1 north county versus south county? 2 MR. HOELSCHER: In general, yes. The 3 $67 million map, and I'm just referring to it 4 because it's what's out in public, that's somewhat 5 representative of the distribution you'll see on 6 future ongoing programs. 7 COMMISSIONER SCHOEDEL: Okay. 8 COMMISSIONER TOENJES: Any further 9 questions concerning this change in the consent 10 decree? 11 Thank you, Mr. Hoelscher. Thank you for 12 the update. 13 MR. HOELSCHER: Thank you. 14 COMMISSIONER TOENJES: Any other 15 procedural or evidentiary aspects of the public 16 hearing that we need to get into right now? 17 MS. MYERS: I have one item. 18 COMMISSIONER TOENJES: Yes, Ms. Myers. 19 MS. MYERS: The exhibit that Brian just 20 spoke to -- the exhibit that Brian just spoke to, we 21 ask that that be entered into the record. It's 22 Exhibit MSD 73. 23 COMMISSIONER TOENJES: That being Figure 24 1, the LTCP program implementation schedule? 25 MS. MYERS: Yes. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 66 1 COMMISSIONER TOENJES: Thank you. 2 All right. We will move forward then. 3 Who is here on behalf of -- 4 MS. STUMP: I'm sorry. 5 COMMISSIONER TOENJES: Yes, Ms. Stump. 6 Please. 7 MS. STUMP: I didn't know where you were 8 going on the script. So, that's why. 9 COMMISSIONER TOENJES: Unfortunately, 10 I'm following it. 11 MS. STUMP: Can we go back to submit the 12 whole list of the exhibits? 13 COMMISSIONER TOENJES: Yes, we may. 14 MS. STUMP: On June 27th -- oh, you want 15 me to just go ahead? 16 COMMISSIONER TOENJES: Starting on the 17 top of the page. 18 MS. STUMP: On June 27th the district 19 transmitted a proposed list of exhibits to the 20 participants. 21 COMMISSIONER TOENJES: You're jumping a 22 page ahead, but I'm happy to do that. I'm fine now. 23 All right. 24 I was -- hang on one second. 25 MS. STUMP: See, I had figured you just 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 67 1 skipped the introductions earlier because you went 2 to the procedural matters. 3 COMMISSIONER TOENJES: I didn't skip 4 anything. 5 On June 27th, 2018, the district -- 6 actually, let's just say the district transmitted a 7 proposed list of exhibits to the participants. Is 8 the district prepared to present that list to the 9 members of the rate commission? 10 MS. MYERS: Yes, we are, with the 11 inclusion of Exhibit 73 that we just spoke about. 12 COMMISSIONER TOENJES: Thank you. 13 Does any other participant wish to add 14 any additional exhibits? 15 MS. STUMP: Mr. Chair, could we, please, 16 add the letter that was submitted today from the 17 ratepayer from Ferguson? 18 COMMISSIONER TOENJES: Ferguson. 19 MS. STUMP: I don't know if maybe 20 Ms. Benton can go ahead and give it a number. 21 MS. BENTON: It will be RC 74. 22 COMMISSIONER TOENJES: RC 74. 23 Are there any other additional exhibits 24 to add? 25 MS. MYERS: So, that updated exhibit 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 68 1 list will be posted this afternoon after this 2 meeting. 3 COMMISSIONER TOENJES: Thank you, 4 Ms. Myers. 5 So, all the documents identified on the 6 exhibit list are now admitted into evidence in this 7 rate change proceeding. 8 The district, the intervenor, and legal 9 counsel to the rate commission shall each present 10 closing statements. After each closing statement, 11 the members of the rate commission will have the 12 opportunity to ask questions. 13 Ms. Myers, are you ready to present on 14 behalf of the district the closing statement. 15 MS. MYERS: I am. Thank you. 16 COMMISSIONER TOENJES: Please proceed. 17 MS. MYERS: Good morning, commission. 18 As you're all aware, I'm Susan Myers. I'm the MSD 19 general counsel. On behalf of the district, I'd 20 like to thank each and every one of you for 21 participating in this rate setting process. 22 As we discussed at the beginning of this 23 process, the task before you is to determine if the 24 district's rate change proposal submitted on 25 February 26th, 2018, complies with the five criteria 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 69 1 outlined in the MSD charter, specifically if the 2 rate proposal is fair and reasonable on all classes 3 of ratepayers. 4 As you have heard throughout these 5 proceedings, this proposal is for an impervious area 6 based stormwater capital rate to fund capital 7 improvements needed primarily to mitigate flooding 8 and erosion throughout the district. This proposal 9 is based upon the wants and the needs of our 10 customers. 11 Upon acceptance by the MSD board of 12 trustees, the stormwater capital rate will be taken 13 to the public for a vote. The public will decide if 14 they want MSD to have a revenue source to fund 15 additional district-wide stormwater services in the 16 form of capital improvements to mitigate the impact 17 of flooding and erosion. 18 The record that has been built over the 19 last few months contains a lot of testimony and 20 evidence from both the district and your own 21 technical experts that support the fact that the 22 district's proposal is fair and reasonable on all 23 classes of ratepayers. 24 So, I'm not going to rehash all the 25 topics that we have discussed throughout the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 70 1 technical conferences and again at the prehearing 2 conference. You can find all those details in the 3 prehearing conference reports submitted by all the 4 parties. 5 I would like to ask you to remember a 6 few things as you proceed with deliberation. The 7 current rate proposal before you proposes a new 8 stormwater capital rate to be used to address 9 flooding and erosion control issues throughout the 10 district. This is the final piece of the three 11 piece stormwater funding puzzle. MSD already 12 collects a 2-cent property tax to address regulatory 13 needs and a 10-cent property tax to address the 14 operation and maintenance of the MSD public storm 15 sewer infrastructure. 16 The MSD charter does not require a rate 17 structure to be the most fair and reasonable rate 18 structure. What it does require is that the rate 19 structure being used be fair and reasonable on all 20 classes of ratepayers. I'd like to expand on that 21 just a little bit. Of course, there are a lot of 22 different methods of developing a rate structure. 23 You've heard the communities around the county 24 develop and modify structures to work best for them. 25 The proposal before you is just that. MSD has 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 71 1 developed a CIRP program that works for its 2 particular circumstances and is consistent with 3 industry standards. With funding this program can 4 meet the needs of our customers. 5 It is MSD's opinion that the rate 6 proposal is legal and a detailed legal analysis to 7 support our opinion has been provided on the record. 8 It is also the district's opinion that the record 9 created from the rate commission proceeding supports 10 the fact that this proposal before you meets all the 11 criteria outlined in the charter and does impose a 12 fair and reasonable burden on all classes of 13 ratepayers. 14 So, again, I would like to thank you for 15 your time and your dedication to this process. I 16 know it's probably more than what some of you had 17 expected, but we really do appreciate it. And this 18 concludes my opening remarks. Thank you. 19 COMMISSIONER TOENJES: Questions from 20 the rate commissioners for Ms. Myers. Any questions 21 for MSD or the staff. 22 COMMISSIONER BROCKMANN: I have several 23 questions. What is the average MSD bill for a 24 ratepayer excluding water usage? 25 MR. HOELSCHER: Excluding wastewater 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 72 1 usage? 2 COMMISSIONER BROCKMANN: No. 3 Excluding -- most of our -- some of our bills like 4 in the county, you add on a charge for water usage 5 to your MSD bill, correct? 6 MR. HOELSCHER: No. We have a charge 7 for wastewater usage. 8 COMMISSIONER BROCKMANN: Overall MSD 9 bill, the monthly bill that each customer gets, 10 what's the average bill in municipality? 11 MR. HOELSCHER: I can give you a general 12 number. It's right now about $48 per customer. It 13 goes up to -- as previously approved, about 50 -- am 14 I getting this wrong? Yeah, this is 2020. So, that 15 would be summer '18. 16 So, right now it's about $48 per 17 customer. These are previously approved amounts. 18 In August it will jump to $54 per customer, and then 19 next summer it goes to -- as the final amount that 20 was approved by this rate commission, it goes to 21 about $60 per customer, and based on that 2020 22 amount the actual impact comparatively is on page 23 3-4 of our rate proposal for comparison purposes. 24 And it shows as of fiscal 2020 we project the MSD 25 customer average rate will be $66.75 with $6.31 of 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 73 1 that being stormwater. 2 COMMISSIONER BROCKMANN: Without going 3 through all kinds of charts that you just 4 referenced, which is great, we've heard testimony 5 earlier about a monthly bill. Several of us here 6 talked amongst ourselves about what our monthly 7 bills are. There's no comparison between the two 8 numbers. So, what causes the variation between 9 customers with MSD. 10 MR. HOELSCHER: So, if you are not 11 served as a residential customer by the City of 12 St. Louis, you're served by Missouri-American or 13 Kirkwood Water and I think I've named the two that 14 provide service, your bill is based on your average 15 winter usage. We're trying to identify the average 16 amount of potable water that goes down the sewer 17 system. We don't want to count washing cars. We 18 don't want to count filling swimming pools. We 19 don't want to count watering yards. So, MSD will 20 take a winter quarter reading from those who have 21 metered service and we will apply that charge 22 starting in August, the following August, and we'll 23 charge that consistent rate for a full year for the 24 average residential customer. 25 If you are serviced by the City of 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 74 1 St. Louis and you do not have a meter as a 2 residential customer, which constitutes most of the 3 residential customers in the City of St. Louis, 4 their potable water measurement is done by 5 attribute. They assume that a certain -- a bedroom 6 generates a certain amount of flow and a kitchen a 7 certain amount of flow and a dining room a certain 8 amount of flow. These are attributes used to 9 develop the city water bill. MSD uses that data in 10 order to generate its cost for the individuals who 11 are located in the City of St. Louis. 12 There are individual residents who have 13 the option of putting a -- all of them have the 14 option of actually having their service metered. 15 There's a lot of issues with that, as I understand 16 from the city, having to do with additional plumbing 17 changes and those types of things that have to be 18 made. 19 But in essence in both cases we're using 20 what potable water data is available from the 21 individual water providers as the basis for our 22 charge. So, that's -- and so, as things -- as 23 either rate changes or if you are being serviced by 24 Missouri-American or Kirkwood, as your winter water 25 usage changes that will change the total volume and, 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 75 1 obviously, any rate changes would have an impact on 2 that as well. 3 COMMISSIONER BROCKMANN: So, Brian, you 4 mentioned that the city is determined on attributes. 5 When was this process last evaluated as far as 6 updated or accuracy or...? 7 MR. HOELSCHER: We reevaluate -- I'm 8 going to answer part and then I'm going to turn the 9 other part over to Susan Myers. 10 So, I won't turn this over to Ms. Myers. 11 I will give you -- that evaluation, we actually 12 redid that as part of the previous wastewater rate 13 proposal. We took the volumes that we were 14 assigning. I'm getting a little technical here. 15 The city actually assigns a dollar cost to 16 individual attributes. MSD assigns a flow cost to 17 individual attributes. We review those as a part of 18 the last wastewater proposal and I think as we 19 indicated, it resulted in the city residential 20 customers having, prior to a rate increase, a 21 10 percent reduction in their bill and then we went 22 for -- and after that we went forward with the rate 23 increases that were approved from 2017 through 2020. 24 COMMISSIONER BROCKMANN: Okay. 25 Switching to another subject. Do you have a list 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 76 1 that you're aware of of how many municipalities have 2 implemented the parks and stormwater tax? 3 MR. HOELSCHER: We don't have that 4 information. 5 COMMISSIONER BROCKMANN: And is that tax 6 only allowed by a certain class of the city, or is 7 it unincorporated areas can do the same or they 8 don't have that ability to do that? 9 MR. HOELSCHER: So, whether there's a 10 difference in the class of city, I'm not sure. My 11 understanding is I think just about all 12 municipalities are able to do it. And as far as the 13 unincorporated area, that would be covered by 14 St. Louis County. So, my understanding, not knowing 15 for sure, is I think every municipal entity within 16 the district's boundaries have the right to raise 17 its parks and stormwater tax. 18 COMMISSIONER BROCKMANN: Just for my 19 information, maybe for your own, we probably ought 20 to know that in the future, how many municipalities 21 have that capability, what the dollar amount might 22 be, and then as you and I discussed offline, they're 23 not obligated to spend a certain percentage of that 24 on stormwater or parks. I suspect that more are 25 spending it on parks than stormwater. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 77 1 MR. HOELSCHER: That's what we have 2 heard from the individual municipalities, yes. 3 COMMISSIONER BROCKMANN: But there's no 4 assemblage of this documentation or information? 5 MR. HOELSCHER: Yeah. The only way we 6 would do that is we would have to poll the 7 individual municipalities to see if they currently 8 collect that or not. 9 COMMISSIONER BROCKMANN: Talking about 10 pervious versus impervious. There was a issue 11 raised about compacted soil, what that value might 12 be. Just from my personal experience, there's a 13 huge difference between pervious versus impervious, 14 and by that I mean certainly a roof, a concrete 15 driveway, asphalt roads, those are impervious 16 surfaces, but when it comes to the pervious surfaces 17 there's a wide range of what in reality is pervious. 18 So, for example, I put in -- I don't 19 know the square footage number, but huge amount of 20 square footage of what the manufacturer would say is 21 a product, it's a aggregate ground up rubber tire 22 and it's a sidewalk and they claim it's a pervious 23 product, the end result is a pervious sidewalk. 24 However, when you lay that down and you put soil 25 right next to it, within a year the soil and the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 78 1 dirt just goes into that sidewalk. That sidewalk is 2 no more a pervious sidewalk. It's an impervious 3 piece, and the values go back and forth. So, to 4 give credit to somebody for that sidewalk and say 5 it's a pervious sidewalk, it's not a pervious 6 sidewalk at the end of the day. It's an impervious 7 surface. 8 The same with brick pavers. Maybe we're 9 not clear, but brick pavers you're only getting the 10 perviousness between the joints between the pavers. 11 The bricks themselves are not pervious, and it's 12 very easy for the joints between the bricks to 13 become dirty and clogged up and the whole thing 14 becomes an impervious surface, but yet you're going 15 to give credit for those sorts of applications where 16 a brick paver are allowed to be impervious -- I 17 mean, pervious. It's easy to get the terms mixed 18 up. 19 The same for pavements and driveways. 20 What my experience has been, I have put in asphalt 21 that's a pervious pavement asphalt, but you have to 22 be careful because if you have adjoining impervious 23 assault, the surface water runs off of that to the 24 pervious asphalt, it gets clogged up right away. 25 So, you lost that effectiveness right away. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 79 1 So, how are you going to balance all of 2 this in your evaluations? 3 MR. HOELSCHER: So, I think our proposal 4 indicates that on a regular basis we will go by 5 aerial photography. We will make a determination on 6 what we can determine by aerial photography and then 7 if an individual resident believes that we have 8 miscalculated or mischaracterized some of their 9 area, they can ask us to come out and see. And the 10 typical example has been we'll go out and ten years 11 ago we would take a bucket of water and pour it on 12 and say, hey, where does it go, does it disappear, 13 does it run off as a simple test. 14 I think you're bringing up, it's touched 15 in the rest of this proposal, what is the right way 16 for an entity to do this. I would put to you type 17 of grass, tree cover, slope the ground. There's all 18 kinds of things that affect imperviousness of an 19 area. I think as part of the discussion here is 20 finding the right place that is fair and equitable 21 and reasonable to use as the basis of your charge. 22 I think we all agree you don't want MSD to collect 23 $2.25 a month to do the program and spend $2 a month 24 monitoring the parameters with which you're 25 collecting this. That just doesn't make any sense. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 80 1 What MSD has done is looking both at its 2 particular situation and all the other possible 3 options that are available and what we're trying to 4 accomplish. Basically, what I've described is that 5 is the degree to which we will do impervious 6 calculation versus pervious calculation. We think 7 that's the right type, it's the right level of 8 detail, that that is fair and reasonable to our 9 customers. 10 COMMISSIONER BROCKMANN: Okay. 11 COMMISSIONER TOENJES: Ms. Stump, you 12 had a comment earlier concerning the local parks. 13 MS. STUMP: Oh, I was just going to note 14 that I believe the statute does apply to all cities, 15 and we could -- I mean, we're closing -- if we close 16 the public hearing today, we will not be able to 17 submit more evidence, but we could certainly send an 18 email to the rate commission with information that 19 at least you would have as background. It just 20 wouldn't be a part of the proceeding. But the other 21 option may be to contact, the Municipal League might 22 have an idea as to how many of the municipalities 23 have this tax and we could do that. 24 COMMISSIONER GOSS: Mr. Chairman. 25 COMMISSIONER TOENJES: Yes. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 81 1 COMMISSIONER GOSS: I just sent to you a 2 chronological history of local sales tax in 3 St. Louis County, which was prepared by Tim 4 Fischesser, executive director of St. Louis County 5 Municipal League, dated November of 2011, and in 6 that paper he noted there are 49 municipalities in 7 St. Louis County that had adopted the storm water 8 tax. So, obviously, Municipal League is a source of 9 that information. I don't know if we can enter that 10 article into the record or not, but, Ms. Stump, you 11 could -- and whether it's useful or not I don't 12 know, but that certainly is a source of information. 13 MS. STUMP: I mean, can you send it, 14 Brad, to Brian? 15 COMMISSIONER GOSS: Yeah. 16 MS. STUMP: And, Susan and Brandon, do 17 you have those? Or we can forward it on to them and 18 maybe we can just all take a quick look and if no 19 one has an objection, we could add it as an exhibit. 20 COMMISSIONER SCHOEDEL: Clarification. 21 Is that a stormwater and parks tax or just a 22 stormwater tax? 23 COMMISSIONER GOSS: Well, the statute 24 provides it as a stormwater and parks tax. That's 25 the way the statute reads. So, when they adopt it, 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 82 1 they always adopt it that way. 2 MS. STUMP: So, before we finish today, 3 perhaps we can all take a quick look at it and then 4 if we don't have an objection, we could have the 5 district assign it a number and submit it. 6 COMMISSIONER TOENJES: Mr. Goss, thank 7 you very much. I'm looking at it right now and I 8 think that it would be worthwhile for us to have it. 9 COMMISSIONER GOSS: And, Mr. Chairman, 10 if you could do the forwarding, that would be 11 helpful because the emails aren't coming up in my 12 phone. Thank you. 13 COMMISSIONER TOENJES: Ms. Stump, I'll 14 send it to you. 15 MS. STUMP: Perfect. 16 COMMISSIONER TOENJES: You should have 17 it. 18 COMMISSIONER BROCKMANN: I've got one 19 more question. 20 COMMISSIONER TOENJES: Mr. Brockmann and 21 then Mr. Schoedel. 22 COMMISSIONER BROCKMANN: Brian, you've 23 been very adamant all along about the fairness of 24 the projects are considered district-wide, but today 25 we heard a suggestion about maybe the priorities 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 83 1 ought to be on watersheds. Can you respond to that, 2 please? 3 MR. HOELSCHER: This is somewhat similar 4 to a topic that was kind of thought about a little 5 bit I think in previous stormwater and wastewater 6 hearing. MSD does consist of watersheds. I will 7 start with the first watershed as our entire 8 district is in the Mississippi watershed. There are 9 below that five other watersheds, which are also 10 divided by watersheds. MSD has taken the approach 11 that within our municipal boundaries, just like any 12 other folks with municipal boundaries, we're 13 providing a service to everyone. And I don't see a 14 place where MSD is going to try and put one entity, 15 whether it's municipalities, sub-watershed, other 16 watershed, differentiate where it does its 17 expenditures. We weren't going to do that under the 18 stormwater impervious rate. We definitely have not 19 done that under the wastewater program, whether it's 20 CD compliant or not CD compliance issues, and MSD 21 believes that the appropriate thing to do is to use 22 the systems we have described in this proposal and 23 we will go down the list and we will provide the 24 ones that are the highest priority throughout our 25 entire district, and we believe that's the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 84 1 appropriate way to proceed. 2 COMMISSIONER BROCKMANN: Thank you. 3 MR. HOELSCHER: Now, I will indicate -- 4 let me do this for a little bit. MSD has worked 5 with entities. Mr. Thomas indicated earlier, for 6 instance, MSD is constantly looking for outside 7 sources of funding. I believe one of the grants he 8 was referring to is probably when the state issued 9 stormwater grant moneys. They haven't done that for 10 over ten years now. They would distribute that 11 money to MSD. MSD would then distribute that money 12 to the local municipalities. I think that was the 13 grant program probably that Mr. Thomas was talking 14 about. So, we'll continue doing that. We'll 15 continue looking for funds. 16 There are areas up in north city we're 17 in cooperation with initiatives they've had. We've 18 actually gone to the state legislature for focused 19 funding on specific issues and supported their 20 cause, and we will continue to do that as well. But 21 with regard to the rates and revenues that we 22 collect district-wide from everybody to solve a 23 district-wide problem, we're considering the 24 priority on a district-wide basis. 25 COMMISSIONER TOENJES: Mr. Schoedel. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 85 1 COMMISSIONER SCHOEDEL: One question, 2 and it's kind of a follow-up for Mr. Brockmann's 3 question. MSD wastewater rates specifically in the 4 city, is there any evidence that shows the addition 5 of that meter will reduce their rates? And this is 6 really in reference to the public hearing earlier 7 today and the one lady who was very emphatic about 8 her high MSD rates. 9 MR. HOELSCHER: So, I have heard -- and 10 this is all just hearing things. There are 11 individuals, retired couples who live in very large 12 houses with an awful lot of rooms that they believe 13 they are paying too much. There are homes, very 14 small homes with a lot of people living in, which if 15 you think about would probably generate huge water 16 usage and they're probably paying something that if 17 they were metered, they would actually pay more than 18 the attribute calculation. 19 Again, we are locked into -- I just 20 don't know another way to do it. We are locked into 21 a court approved way of billing for wastewater in 22 the non-metered areas. Again, the one thing we've 23 done, we do take evaluation about people's habits. 24 Matter of fact, prior to this next wastewater 25 proposal, we'll do the same thing again to find out 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 86 1 if there should be a reduction or an increase in the 2 per attribute cost of the city property owners. You 3 will see that as part of the rate proposal again. 4 We will continue to do that every four years, but we 5 are locked in. I don't know a way to do the system 6 other than that attribute system. 7 COMMISSIONER SCHOEDEL: Thank you. I 8 know there was a little bit of rabbit trail on 9 wastewater, but it was brought up earlier. 10 Mr. Chairman, my next question is more 11 about maybe procedural. There's been several 12 discussions about increasing the incentive program. 13 Is that something to be done here or within our 14 session later? With representatives from MSD here, 15 we may need some input from them. 16 COMMISSIONER TOENJES: I would -- I was 17 going to ask Ms. Stump to recap that and present us 18 with the proper way to get that on the record. 19 MS. STUMP: I think -- and for the 20 district, some of the rate commissioners have some 21 thoughts on incentive programs and I was encouraging 22 them not to have a conversation in email about it. 23 So, I think that if you want input from the district 24 and the parties, we should bring that up today. If 25 it's something that you just want to discuss amongst 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 87 1 yourselves, you can wait until you start your 2 deliberations. Regardless, since all of the parties 3 have thoughts on the incentive programs, perhaps it 4 would be worthwhile to finish the closing statements 5 and then at the end there's a spot for any questions 6 and maybe that would be the appropriate time to talk 7 about the incentive program, if you want input from 8 the district or the intervenor. 9 COMMISSIONER SCHOEDEL: My opinion is 10 I'd like to get their input and we can certainly 11 wait till the end. 12 Commissioners, your thoughts? Because 13 there's been a lot of discussion about the incentive 14 program and increasing it, making it more impactful. 15 COMMISSIONER MAHFOOD: My only comment 16 is that we get it out on the table and, so, whatever 17 the procedure. 18 COMMISSIONER TOENJES: If you're ready 19 to talk about it now, go ahead. 20 COMMISSIONER MAHFOOD: Fire away? 21 COMMISSIONER TOENJES: Yes, sir. Yes, 22 Mr. Mahfood, the floor is yours. 23 And I do want to compliment Ms. Stump 24 for acting quickly to make sure that the email 25 discussion that was started was stopped before it 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 88 1 got too far just to make sure that the intervenor 2 and the district was comfortable that there were not 3 any behind-the-scenes type of dialogue going on. 4 So, with that, Mr. Mahfood, the floor is 5 yours. 6 COMMISSIONER MAHFOOD: Thank you, 7 Mr. Chairman. Just a couple of things at this 8 point. I'm still a strong believer in the fact that 9 incentives can change the dynamic in the St. Louis 10 area in regards to how we look at pervious and 11 impervious surfaces, how we plan for development and 12 how we move forward. So, I know we've got a -- I 13 believe that the linkage, the financial linkage 14 between the proposed rate increase and the 15 incentives is a -- has been well explained, and I 16 don't disagree with that the rates we're proposing 17 are low. To be able to have an impact I think your 18 rates would have to be higher and I'm not proposing 19 that. 20 However, I really have a concern, and I 21 think Commissioner Brockmann brought it up, about 22 ongoing incentives, ongoing projects, and how we 23 make sure that the incentives that we're spending 24 money on get done and are maintained, and not just 25 because of its relationship to the -- to the rates, 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 89 1 but also to the reduction in stormwater, which will 2 have a water quality and other impacts in the 3 St. Louis area. 4 And at this point, being enrolled in 5 this incentive in the credit program and the ongoing 6 maintenance, that's a concern to me that we're -- 7 that we're not going to be able to do that and, 8 again, I understand why, but commitment of resources 9 to projects that could have an impact on reducing 10 impervious surfaces I think needs to be given a 11 priority and needs to be made sure that we're -- 12 that we're carrying out those functions and doing 13 the best that we can regardless of cost in this rate 14 structure. 15 The other part is the possibility of 16 developing a grant program, and maybe this is where 17 shared funding comes in. That wouldn't be done out 18 of the rate we're proposing here, but a shared 19 funding proposal where we're able to give grant 20 programs to private property owners to do the 21 correct thing when it comes to installing pervious 22 versus impervious surfaces. You know, I think that 23 needs to be at a minimum in the record that we're 24 supportive of that kind of work and that we're 25 supportive of enabling private property owners to do 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 90 1 some of the things that we think need to be done 2 that will benefit all of us. 3 I'm not going to go on -- I could go on 4 and on and address this subject, and I know we've 5 kind of beaten it to death in some respects, but I 6 wanted to make sure and get this back out on the 7 table because I think it's an important one for 8 discussion. 9 COMMISSIONER TOENJES: Thank you, 10 Mr. Mahfood. 11 Are there any other? 12 Yes, Mr. Goss. 13 COMMISSIONER GOSS: I would echo 14 Mr. Mahfood's comments. 15 And one other thought that I had as we 16 were listening to the dialogue today is if the 17 district is considering the grant program or 18 incentive program involving municipalities, one of 19 the criteria for participating in that program could 20 be that the municipality has passed a parks and 21 stormwater tax, which gives those municipalities an 22 incentive to do so and, thus, would lead to more 23 funds being directed to solve this problem that we 24 do have in our region. So, I suggest that's a 25 possibility for the criteria of such a grant 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 91 1 program. 2 I also have mentioned previously that 3 our organization is hopeful that homeowners 4 associations would be included in any such grant 5 program through an aggregation kind of concept or 6 other concept that allows these individual owner 7 credits to be used by the homeowners association 8 because the individual owners stormwater problems 9 are really being addressed through common stormwater 10 detention basins in the association. I'd like that 11 on the record as well. 12 COMMISSIONER TOENJES: So done. Thank 13 you. 14 Further comments? Mr. Mahfood. 15 COMMISSIONER MAHFOOD: I like that idea 16 and Commissioner Goss has brought up the concept of 17 tieing together the incentivizing the grant program 18 and the passage of a stormwater and parks ordinance 19 at the local level. I think it could be a real 20 effective tool and not impact this rate, but at the 21 same time complement the activities that the 22 district is doing and, yet, also provide for local 23 communities to address these problems as they -- as 24 they come up. 25 COMMISSIONER TOENJES: Further comments? 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 92 1 Any other questions for MSD staff? 2 COMMISSIONER GOSS: Mr. Chairman, I did 3 have one question of Mr. Hoelscher. 4 And Brian, I apologize. I think you 5 covered this many weeks ago in your testimony, but I 6 wanted to clarify on the ERU in the calculation of 7 that square footage, does that include driveways and 8 sidewalks in the calculation of that? 9 MR. HOELSCHER: It would include 10 impervious driveways and sidewalks that were within 11 the property. One designation, I think we're always 12 letting people know if it's in the public 13 right-of-way, it doesn't count. It's what's within 14 the property limits. 15 COMMISSIONER GOSS: And that was my 16 recollection. 17 And then it would also include 18 non-livable spaces of a home such as a garage; is 19 that correct? 20 MR. HOELSCHER: Yeah. Think of this, 21 it's an aerial view. So, it's a footprint of what 22 we see -- what the rain would see as it's coming 23 down. So, yes, it would include rooftops, garage 24 rooftops. 25 COMMISSIONER GOSS: And if the garage 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 93 1 were a detached garage, would it also be included? 2 MR. HOELSCHER: It would be the 3 footprint of the detached garage as you look at the 4 aerial view, yes. 5 COMMISSIONER GOSS: Thank you. 6 COMMISSIONER TOENJES: Any further 7 questions for the MSD staff? 8 Thank you, Brian. Thank you, Ms. Myers. 9 Missouri Industrial Energy Consumers, 10 are you ready to present your closing statement, 11 Mr. Neuschafer? 12 MR. NEUSCHAFER: Yes, I am. 13 COMMISSIONER TOENJES: Please proceed. 14 MR. NEUSCHAFER: Thank you. 15 And thank you to all the commissioners 16 for your time and your thoughtful consideration of 17 the record and the proposal here. 18 Like Ms. Myers, I'm not going to rehash 19 the things that I told you last week and the things 20 that I told you yesterday and in the papers that we 21 filed, but I do want to clarify a few things from 22 some of the papers that were filed yesterday, some 23 statements made by counsel for the rate commission 24 and by MSD. Excuse me. 25 One thing is that -- the first thing. I 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 94 1 have three things I want to clarify. The first is 2 that MSD commented several times in the report that 3 they filed yesterday. Excuse me. MSD commented 4 that MIEC did not review the binders. There was a 5 group of 50-some binders that MSD has made 6 available, and I want to clarify that MIEC did 7 review these binders. In fact, after the 8 surrebuttal testimony where Ms. Lyons presented her 9 report and responded to questions we requested from 10 the rate commission which binders Ms. Lyons reviewed 11 because we wanted to review the exact same binders 12 that she reviewed. I participated in that review. 13 A representative of our consultant participated in 14 that review. MSD assisted in that review. So, I'm 15 a little surprised at the statements that MIEC did 16 not review the binders because we did receive 17 support from MSD when we reviewed those binders. We 18 looked at the exact same ones that Ms. Lyons 19 indicated that she looked at. It didn't change our 20 testimony at all. In fact, it supported our 21 testimony, our review of those binders. 22 One other thing to note -- and this is 23 all in the paper that we filed yesterday, but I 24 wanted to make it clear to the rate commission, is 25 that when we were reviewing those binders MSD 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 95 1 identified to us that there had actually been some 2 additional analyses on some projects since the 3 binders had been prepared. These are analyses that 4 have been performed at some point in time over the 5 last few years because the binders ended at about 6 2010. We looked at some of those additional updated 7 analyses and we have some reference to some of the 8 information that we discovered in our report that 9 was filed yesterday. I'd note that nowhere in her 10 testimony did Ms. Lyons ever indicate that she 11 became aware of them or reviewed any of these 12 additional analyses, which calls into question her 13 testimony and also calls into question the fairness 14 and reasonableness of the program that's been 15 proposed. 16 Putting aside where and when anyone 17 reviewed the binders, I think it's important to note 18 that our position has been based on MSD's own 19 statements and the record that has been introduced 20 by MSD, the age of the reports, the age of the 21 information that has been introduced into the record 22 and upon which they based their engineering and cost 23 estimates, and their own statements about the amount 24 of time that has gone into preparing those 25 estimates. It's important that we reviewed the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 96 1 binders. It's important that everyone else has 2 taken a look at those, but it's MSD's own statements 3 that call into question the fairness and 4 reasonableness of the engineering and cost analysis 5 that has supported this program. 6 The second point that I wanted to 7 make -- and these are clarifications of our 8 position. MSD suggested in its paper, at least this 9 is how I read the report, that MIEC opposed the 10 prioritization system that's been created by MSD. 11 I'd like to be clear that we've taken no position 12 about the prioritization system. We're not saying 13 that there's anything wrong with the prioritization 14 system. Yes, we've asked questions because we like 15 to understand the prioritization system ourselves, 16 but our issue is not with how MSD prioritizes the 17 projects or the score card that they use or the 18 factors that go into completing that score card. 19 That's not MIEC's issue. 20 MIEC's issue concerns whether this 21 program should be undertaken in the first instance 22 or whether there is some subset of projects here 23 that are of such low priority that they shouldn't be 24 undertaken. That's MIEC's concern. We'll leave the 25 prioritization score card to others. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 97 1 The final point that we want to make 2 clear on the record, and this came from the report 3 that was filed by the rate commission and counsel 4 and the rate commission's rate consultant. This is 5 with respect to -- and I apologize. This is kind of 6 a technical legal issue here, but with respect to 7 the authority under Missouri Statute Section 8 204.700. The rate commission counsel's report 9 suggests that MIEC supports MSD's position with 10 respect to this statute. Again, I want to make it 11 clear that we've taken no position with respect to 12 whether MSD is accurately interpreting or applying 13 the law on this circumstance. I don't -- I don't 14 want to leave the record out there suggesting that 15 we have either endorsed or not endorsed MSD's 16 position. We simply have not taken an issue -- or 17 made any opinion with respect to that issue. 18 So, I appreciate you indulging me and 19 letting me clarify a few of the statements that we 20 found needed to be clarified. I think our position 21 has been made very clear with respect to how we view 22 the proposal and that's really all that I have to 23 say at this point in time. I'm happy to answer any 24 questions. 25 COMMISSIONER TOENJES: Thank you, 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 98 1 Mr. Neuschafer. Appreciate those clarifications. 2 Anyone have questions for 3 Mr. Neuschafer. 4 MR. NEUSCHAFER: Actually, Mr. Chair. 5 COMMISSIONER TOENJES: Yes. 6 MR. NEUSCHAFER: I'm sorry. There was 7 one more thing that I wanted to mention. This is 8 procedural. I assume that the transcript of today's 9 proceeding will also be included in the official 10 record? 11 MS. STUMP: That is correct. 12 MR. NEUSCHAFER: Okay. Sorry to 13 interrupt in case anyone has questions. 14 COMMISSIONER TOENJES: No, that's fine. 15 Anyone else have any questions for 16 Mr. Neuschafer, comments? 17 MS. STUMP: Mr. Chair, can I ask a 18 question of him? 19 COMMISSIONER TOENJES: Please. 20 MS. STUMP: Brandon, I just wanted to 21 clarify. So, after the Section 204.70 discussion, 22 the statement in our report is that the intervenor 23 MIEC supports the use of impervious area charges as 24 fair and reasonable without regard to the legal 25 issues. Is that -- I mean, is the first part of 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 99 1 that correct? 2 MR. NEUSCHAFER: Well, I think what we 3 have said is an impervious area charge can be fair 4 and reasonable. I don't -- I really just didn't 5 want to leave any impression that we were taking the 6 position one way or the other with respect to the 7 legal issues surrounding 204.700. 8 MS. STUMP: Thank you. 9 COMMISSIONER TOENJES: Further questions 10 for Mr. Neuschafer? 11 Mr. Neuschafer, thank you, and thanks to 12 MIEC for your interest in this process and the 13 information you provided to us. Appreciate it. 14 Ms. Stump, is legal counsel ready to 15 present its closing statement? 16 MS. STUMP: I am. Thank you. 17 COMMISSIONER TOENJES: Please proceed. 18 MS. STUMP: And again, let me reiterate 19 what my colleagues have said about thanking you all 20 for the time and the commitment that you all have 21 put in, and certainly from my standpoint this rate 22 commission has helped me do my job a lot of the time 23 with the questioning. So, I appreciate your 24 interest and your involvement. 25 And I, again, like the other parties, 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 100 1 summarized most of the issues when we last met, plus 2 we filed the prehearing conference report yesterday 3 summarizing the issues. So, I will try to keep from 4 being repetitive, but I do want to point out a few 5 things and I want to talk a little bit more in the 6 context of what your obligations and authority as 7 the rate commission are as you head into 8 deliberations and finally drafting a rate 9 recommendation report. 10 So, the rate commission is to determine 11 whether the rate change proposal or any alternative 12 proposal meets the criteria for recommendations 13 contained in Section 7.040 and 7.270 of the charter 14 plan. And as you all know, we believe that there 15 are really eight different factors you have to 16 consider. There's three criteria and five factors 17 under the two different sections of the proposal. 18 In the prehearing conference report I 19 have discussed the issues, all of the issues, but 20 not necessarily in the context of the criteria or 21 factor that they affect. Certainly all of the 22 issues we discussed in the proceedings will affect 23 whether the rate recommendation to the board of 24 trustees results in rates that impose a fair and 25 reasonable burden on all classes of ratepayers, but 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 101 1 just be aware as we go into the process some of the 2 issues will affect some of the other criteria and 3 factors, too. 4 For example, the first criteria under 5 Section 7.040 provides that the report of the rate 6 commission must consider whether the proposed 7 changes provide the funds necessary to pay interest 8 and principal falling due on bonds issued to finance 9 assets of the district. Well, as we all know, the 10 district has not proposed any bonds. So, this is 11 not an issue under their rate proposal. However, 12 MIEC has suggested that the rate commission at least 13 consider a rate where there would be some debt 14 issuance. So, we don't know how much, but debt 15 could be a part of what you end up discussing. In 16 which case, then we would ask does the rate 17 commission wish to consider a proposed stormwater 18 capital rate that provides for the issuance of 19 additional debt beyond that in the district's rate 20 change proposal and, if so, how much? So, that will 21 be one of the factors that will have to be 22 considered. 23 Another example is under Section 7.270 24 of the charter, which provides that the report of 25 the rate commission must consider whether the rate 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 102 1 change proposal is consistent with constitutional, 2 statutory, or common law as amended from time to 3 time. We will be asking the rate commission does 4 the rate commission wish to consider as a part of 5 its report on whether the charges are consistent 6 with the law, a statement regarding the imposition 7 of the stormwater capital rate on governmental and 8 nonprofit property owners. We'll also ask you 9 whether you want to consider a statement related to 10 the effect in that footnote. And similarly, we'll 11 ask you if you want to consider a statement 12 regarding the applicability of Section 204.700 of 13 the Missouri Statutes. 14 But as is apparent from the discussions 15 throughout the proceedings and especially today, 16 most of your deliberation and discussion will go 17 towards the fifth factor, which is the report of the 18 rate commission must consider whether the proposed 19 changes impose a fair and reasonable burden on all 20 classes of ratepayers. Again, the use of debt will 21 come up in this discussion because if you use debt, 22 it may affect the amount of the rate, as well as all 23 the issues related to the size of the CIRP. We will 24 ask you does the rate commission wish to consider 25 whether the proposed CIRP results in rates that 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 103 1 impose a fair and reasonable burden on all classes 2 of ratepayers. And even under this part there's 3 several subissues. 4 For example, do you wish to consider 5 whether the district completed sufficient planning 6 in the CIRP to justify the proposed rate change? Do 7 you wish to consider whether the size of the CIRP is 8 appropriate? Does the rate commission wish to 9 consider whether the CIRP should include 10 improvements on private property? And then, 11 finally, does the rate commission wish to consider 12 whether contributions from private parties or groups 13 or cost sharing should change the prioritization 14 used in the CIRP? And these will all be discussions 15 that will go towards deciding whether the proposed 16 CIRP results in rates that impose a fair and 17 reasonable burden on all classes of ratepayers. 18 Other discussion and issue topics that 19 will come up under fair and reasonable rates would 20 be does the rate commission wish to consider 21 applying the proposed rate change to all classes of 22 property, including nonprofits and governmental, 23 results in rates that impose a fair and reasonable 24 burden on all classes of ratepayers? And does the 25 rate commission wish to consider whether the 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 104 1 district's proposed incentive systems results in 2 rates that impose a fair and reasonable burden on 3 all classes of ratepayers? 4 So, these are the types of things that 5 you will be considering. There will be -- it's your 6 decision. You may have other issues that we haven't 7 discussed that are important to you that you learned 8 from the record, and certainly we will include those 9 in all discussions. I know that the reports were 10 just filed yesterday, but I just want to urge you to 11 read them all prior to beginning your deliberations. 12 You all have a very big job ahead of you, but that's 13 why you -- that's why you're in the position that 14 you're in. 15 COMMISSIONER TOENJES: Thank you, 16 Ms. Stump. 17 Questions for Ms. Stump? 18 Mr. Mahfood. 19 COMMISSIONER MAHFOOD: Lisa, it seems 20 like criteria five is the -- is the crux of the 21 issues. Is that fair? 22 MS. STUMP: I believe that's correct. 23 And I do think that some of them -- you will have a 24 discussion under some of the other factors and 25 criteria, and some of them will be repeated maybe. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 105 1 Like, for instance, the debt issue. If you decide 2 that you -- that considering debt is appropriate, 3 that's going to play into some of the other factors 4 also. I'll be honest. In my mind I'm toying -- you 5 know, usually we've always started at the beginning 6 when rate commissions done deliberations before, but 7 in my mind I'm thinking about proposing to you maybe 8 starting with the fifth factor because it does 9 affect so many of the other ones if you decide. So, 10 I don't know. We'll find out on the 10th. 11 COMMISSIONER TOENJES: Figure that out 12 during our first meeting? 13 MS. STUMP: Yes. 14 COMMISSIONER GOSS: Yeah, Mr. Chairman. 15 I would like to talk to our counsel separately, and 16 I want to know when is the appropriate time for us 17 to obtain certain legal guidance from our counsel, 18 and I don't know if that's at the next meeting or if 19 it would be appropriate to have that discussion at 20 the close of this meeting but in private with our 21 counsel. 22 COMMISSIONER TOENJES: Would you like to 23 take a five-minute recess and have that discussion 24 now? 25 COMMISSIONER GOSS: Well, I think -- 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 106 1 COMMISSIONER TOENJES: Would that...? 2 COMMISSIONER GOSS: I think it's a 3 conversation that needs to happen amongst the 4 commission members. 5 MS. STUMP: You are authorized to go 6 into closed session for any of the reasons justified 7 under the Sunshine Law which one is to receive on 8 legal matters. So, it's up to you all whether -- I 9 guess without knowing exactly what you want to 10 discuss, if you want -- I mean, whether to do it 11 today or to do it at the beginning of the meeting on 12 the 10th I think would also be fine because then we 13 would have time to provide you the feedback that you 14 need, but you can do either. 15 COMMISSIONER GOSS: I consider the 16 conversation about the topics with you and what I 17 want to talk about to be privileged, and I also want 18 to give you time to be able to be fully prepared on 19 the 10th so that we would be -- have that 20 information in advance to be guided. However, 21 that's just my desire, and the rest of the 22 commission might say, well, we really don't desire 23 that, Mr. Goss. And so, I want to have that 24 conversation with my commission members. 25 COMMISSIONER TOENJES: Well, I would 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 107 1 suggest, Mr. Goss, since it's one for all and all 2 for one, I would think that I suggest that we do go 3 into executive session and have that brief 4 five-minute conversation or ten-minute conversation 5 with all the rate commissioners and Ms. Stump now so 6 that no different than any other dialogue that we 7 can be included and stay as cohesive as possible. 8 MR. HOELSCHER: Mr. Chair, I hate to do 9 this. Based on our experience with this and 10 application of state law, I think we'd like for you 11 to hear from Ms. Myers from the Sunshine Law and the 12 guidance we've gotten from the state about holding 13 non-advertised closed sessions and look for your 14 indulgence if we could express that issue, if that's 15 possible. 16 MS. STUMP: I mean, that's up -- I don't 17 mind hearing her -- I don't mind hearing -- 18 COMMISSIONER TOENJES: Go ahead. 19 MS. STUMP: -- her opinion. I may 20 disagree with it, but... 21 MS. MYERS: Well, it's our opinion that 22 when you're holding a public meeting, if you plan to 23 have a closed session at that public meeting, it 24 needs to be part of the agenda, which needs to be 25 posted within 24 hours before the meeting. So, I 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 108 1 mean, it would be my opinion that it's not 2 appropriate to have a closed session meeting at this 3 particular meeting today. 4 MS. STUMP: I disagree. I feel that 5 when you're in a -- my understanding, when you're in 6 a public session, even though you're not planning on 7 going into closed session, you always have the 8 authority to do so in the instances that you need 9 to, but I'm concerned that Ms. Myers has now raised 10 the issue, and I don't know if it's something that 11 we really want to get into an argument about. So, 12 perhaps -- I would maybe suggest that Mr. Goss and I 13 have a conversation, even though it's not -- 14 obviously not the feelings of the whole commission, 15 but certainly I know in my view what some of the 16 legal issues are and I think I know some of what 17 he's indicated. We probably have prepared those, 18 but I would suggest maybe perhaps that Mr. Goss and 19 I have a conversation and that we do schedule and 20 notice a closed session at the beginning on 21 July 10th, but we can discuss ahead of time to 22 ensure that I am, in fact, researching the issues 23 that you believe should be researched. And I would 24 also suggest that if there are other issues, I can 25 summarize those in an email to you all and if there 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 109 1 are other issues, you can let me know and we can be 2 prepared on the 10th. 3 COMMISSIONER GOSS: That would be 4 satisfactory with me, Mr. Chairman. 5 COMMISSIONER TOENJES: Do any of the 6 commissioners have any objection to that approach? 7 Thank you, Ms. Stump. And thank you, 8 Ms. Myers. We will proceed accordingly. 9 Any other questions for Ms. Stump at 10 this point? 11 Prior to closing this public hearing, 12 several of the exhibits were received at 4:55 last 13 night. So, they did meet the letter of the law. We 14 received the residential incentive program, the MSD 15 prehearing conference report, and MIEC's prehearing 16 conference report. I know that those are three, and 17 perhaps our pre-conference report were all received 18 late last evening or late afternoon. My question 19 is: Would the rate commissioners like to review 20 those and have further discussion and allow further 21 questioning of the district and MIEC and our team 22 here as part of the next meeting on the 10th, or 23 should we consider those as entered into evidence 24 and close the public hearing sessions and begin our 25 deliberations? The question is: Do you want to ask 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 110 1 any more questions? Do you want more time to review 2 those and ask questions subsequent to today or not? 3 COMMISSIONER SCHOEDEL: Clarification. 4 In the past we've only had one other rate commission 5 process. During our deliberations I believe we've 6 been able to get additional information if we come 7 up with that during our discussion. Is that true or 8 not true? 9 MS. STUMP: The district has not 10 participated in the discussions in your 11 deliberations during your meetings. I believe there 12 have been times -- they're usually present and I 13 believe there have been times where your discussion 14 has gone in a direction where you ask for additional 15 information where they've provided it, but not the 16 ability to talk back and forth with Brian, for 17 example, is usually not a part of the deliberation 18 process. 19 COMMISSIONER SCHOEDEL: But we can get 20 that information through you, if needed? 21 MS. STUMP: Correct. I don't know if we 22 ever actually make it a part of the -- but, you 23 know, we can make it -- I was thinking in the past 24 we've made it an addendum to the report rather than 25 a part of the exhibits, but if there's a certain 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 111 1 thing you need, yes. 2 COMMISSIONER SCHOEDEL: Are those 3 deliberations public? 4 MS. STUMP: They are public except for 5 when we go into closed session, but as a general 6 basis, yes, they're public. 7 COMMISSIONER GOSS: Any of those 8 exhibits, though, or supplemental information would 9 not be part of the record; isn't that correct? 10 MS. STUMP: We will be closing the 11 record today, yes, and I can't -- 12 COMMISSIONER GOSS: So, if you wanted 13 those to be part of the record, that would not be 14 accomplished, if that was important to you? 15 MS. STUMP: I mean, honestly, if you all 16 are -- it's your decision, but if you all are 17 thinking about things, then to me there's a little 18 bit of a hesitation there and there are still 19 questions and it doesn't -- we want to make sure the 20 record's correct and we want to do this right. So, 21 I think if there's any hesitation, then perhaps you 22 just continue this public hearing and provide a 23 little bit of time on the 10th to wrap everything 24 up, but, again, it's your decision. 25 COMMISSIONER TOENJES: So, I will ask 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 112 1 the rate commissioners present, would you care to 2 conclude or close our rate change proceedings and 3 begin deliberations, or would you like to leave our 4 rate change proceedings open until July the 10th? 5 COMMISSIONER SCHOEDEL: Are you asking 6 for a motion to carry? 7 COMMISSIONER TOENJES: Yes, sir. 8 COMMISSIONER GOSS: So moved. 9 COMMISSIONER TOENJES: State your 10 motion. 11 COMMISSIONER GOSS: So, I would continue 12 the hearing until July 10th and then to allow us to 13 adequately consider the exhibits that were received 14 very late last night and to be able to ask questions 15 and also considering the other exhibits that we need 16 to place into the record. And my understanding with 17 that is that we can then close the hearing and 18 proceed with our deliberations so that we can do 19 both on that same date. Is that correct, 20 Mr. Chairman? 21 COMMISSIONER TOENJES: Yes, Mr. Goss. 22 COMMISSIONER GOSS: So, that is the 23 motion I would make. 24 COMMISSIONER ZIEGLER: Second. 25 COMMISSIONER TOENJES: There's a motion 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 113 1 made by Mr. Goss, seconded by Mr. Ziegler that we 2 will leave our proceedings open until July the 10th, 3 we will endeavor to close those on July the 10th and 4 then proceed with our deliberations, and that's the 5 motion and the second. Any discussion on the 6 motion? 7 COMMISSIONER BROCKMANN: Mr. Chairman. 8 COMMISSIONER TOENJES: Yes. 9 COMMISSIONER BROCKMANN: Does that 10 obligate us to notify the public of this change in 11 procedure from what's been posted in the schedule? 12 MS. STUMP: No, because what we're 13 technically doing is continuing this public hearing. 14 So, we don't have to, like, re-notice as far as the 15 paper is concerned. There will be a public notice 16 of this meeting like there is of all your meetings. 17 So, it will identify what's going to occur on the 18 10th, but we don't have to worry about the 19 advertisement and all the public from that 20 standpoint. 21 COMMISSIONER TOENJES: Since we've 22 already expected the public hearing. 23 COMMISSIONER SCHOEDEL: Will that 24 include a portion of closed sessions, then, as well 25 for the 10th? 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 114 1 MS. STUMP: Well, that was going to be 2 my question. I mean, it sounds like what you all 3 are thinking is -- tell me if I'm wrong. You would 4 start on the 10th with continuing this public 5 hearing, which would essentially provide you to ask 6 additional questions of all the parties, we would 7 finalize the exhibit -- any additional exhibits, 8 submit that into evidence, close the public hearing, 9 close the proceedings, then you would vote to go 10 into closed session to have discussions with me, and 11 then after that, assuming there's still time, you 12 would start your deliberations. 13 COMMISSIONER GOSS: Yeah, that's the way 14 I understand it. I make one other suggestion going 15 forward that we add to every agenda the possibility 16 of going into closed session for legal matters and 17 just routinely make that part of our procedures. I 18 erroneously thought that was part of our agenda. 19 I'm used to that being part of every kind of 20 governing body's agenda when I appear before them. 21 COMMISSIONER TOENJES: 100 percent 22 agree, yes. 23 So, there's a motion made and seconded. 24 Is there further discussion on the motion? 25 All in favor signify by saying Aye. 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 115 1 (All commission members present 2 responded by saying aye.) 3 COMMISSIONER TOENJES: Opposed? 4 Abstained? 5 Hearing none. The motion carries. 6 So, we will not adjourn this meeting, 7 but we will take a recess until Tuesday morning, 8 July the 10th at 8 a.m. when we will continue this 9 public hearing and begin our deliberations 10 immediately following that. Adjourned. 11 MS. STUMP: Yes. I would just note, and 12 you'll know from Janis, that the deliberation 13 meetings remember all start at 8:00. 14 COMMISSIONER TOENJES: Yes. So, this 15 meeting will start at 8:00. 16 Meeting adjourned. 17 (The hearing concluded at 11:43 a.m.) 18 19 20 21 22 23 24 25 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 116 1 CERTIFICATE OF REPORTER 2 3 I, Amanda N. Farrar, a Certified Court 4 Reporter for the State of Missouri, do hereby 5 certify that the foregoing hearing was taken by me 6 to the best of my ability and thereafter reduced to 7 typewriting by me; that I am neither counsel for, 8 related to, nor employed by any of the parties to 9 the action in which this hearing was taken, and 10 further that I am not a relative or employee of any 11 attorney or counsel employed by the parties thereto, 12 nor financially or otherwise interested in the 13 outcome of the action. 14 15 16 ________________________ 17 Certified Court Reporter 18 19 20 21 22 23 24 25 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES A a.m 3:5,5 5:2 115:8,17 ability 7:14,19 12:7 76:8 110:16 116:6 able 18:6 23:7 28:12 50:7 55:1,5,10,20 56:6 61:16,16 76:12 80:16 88:17 89:7,19 106:18 110:6 112:14 Absolutely 31:20 Abstained 115:4 acceptance 35:18 69:11 accepted 35:15 accompanied 7:11 accomplish 80:4 accomplished 111:14 accuracy 75:6 accurately 97:12 acres 24:3 acting 87:24 action 116:9,13 activities 36:6 51:20 91:21 activity 58:12,13 actual 56:25 59:14,15 72:22 adamant 82:23 add 43:3 46:6 55:11 67:13,16 67:24 72:4 81:19 114:15 added 21:7 63:21 addendum 110:24 addition 61:13 85:4 additional 8:11 35:15 47:24 49:21 61:14 67:14,23 69:15 74:16 95:2,6,12 101:19 110:6,14 114:6,7 address 13:6 16:12 17:14,15 17:16 26:22 30:10 38:2 43:24 51:1,22 57:25 70:8,12 70:13 90:4 91:23 addressed 9:23 12:6 14:7 42:3 57:22 91:9 addressing 13:1 14:9 15:21 31:11 61:17 adequate 7:15 29:17 adequately 112:13 adjoining 78:22 adjourn 115:6 adjourned 43:13 115:10,16 adjustment 47:18 adjustments 36:15 administrator 26:16 admitted 68:6 adopt 38:24 81:25 82:1 adopted 8:1 81:7 advance 59:7 106:20 advantage 24:8 32:6 advertisement 113:19 aerial 79:5,6 92:21 93:4 affect 40:22 79:18 100:21 100:22 101:2 102:22 105:9 afford 52:6 affordability 49:9 51:3 52:12 afraid 41:4 afternoon 68:1 109:18 age 95:20,20 agencies 30:10 34:1 44:5,13 agency 30:25 45:9 agenda 107:24 114:15,18,20 aggregate 77:21 aggregation 91:5 ago 17:23 22:5 29:6 30:16 32:23 79:11 92:5 agree 79:22 114:22 agreeing 54:2 ahead 66:15,22 67:20 87:19 104:12 107:18 108:21 air 31:24 60:3 Alaris 4:22 alleviate 28:20 allow 22:9 23:21 43:20 109:20 112:12 allowed 76:6 78:16 allows 91:6 alternative 100:11 Amanda 3:7 4:22 116:3 amazing 35:17 amended 6:19 7:13,21 102:2 amendment 6:20 13:5 47:13,15 50:25 56:25 amount 17:10 18:16,19 19:10 21:17 24:6 30:22 55:9 72:19,22 73:16 74:6,7,8 76:21 77:19 95:23 102:22 amounts 7:6 72:17 analyses 95:2,3 95:7,12 analysis 27:12 71:6 96:4 analyzing 54:22 answer 55:12 75:8 97:23 anticipated 7:7 55:4 anybody 23:7 41:25 anymore 16:17 30:21 apologize 92:4 97:5 apparent 50:13 102:14 appear 27:5 114:20 APPEARANC... 4:1 appeared 37:17 appears 63:16 applicability 102:12 applicable 7:20 application 8:3 8:4 107:10 applications 78:15 applied 45:6 applies 24:1 apply 24:9 45:9 73:21 80:14 applying 97:12 103:21 appoint 44:14 appointed 44:5 appreciate 26:4,16 28:9 34:20,24 42:20 71:17 97:18 98:1 99:13,23 approach 83:10 109:6 appropriate 83:21 84:1 87:6 103:8 105:2,16,19 108:2 approval 28:6 61:20 approve 64:22 64:22 approved 6:17 47:16 51:8,9 72:13,17,20 75:23 85:21 approving 57:13 approximately 11:25 52:2,12 52:15,16,19,21 April 8:20 12:6 25:8,11 area 11:22 15:1 16:7 17:4,5 18:10,20 19:6 19:11,14,23 20:2,13 21:4 21:12,17 22:2 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 22:3,11,11,15 22:24 23:11,12 23:19,21,22 24:1,3 27:16 27:25 28:8 31:21 33:22 36:7 42:1 52:1 52:9 60:23 61:9 69:5 76:13 79:9,19 88:10 89:3 98:23 99:3 areas 13:15 14:24 17:12,16 21:11 22:5 23:2 24:7 36:13 42:4 51:23 58:11 76:7 84:16 85:22 argument 108:11 arguments 9:25 arm's 36:6 Army 30:17 31:5 34:1 arrived 43:7 arrows 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Builders 44:23 building 31:19 53:17 buildings 58:10 built 69:18 burden 7:22 71:12 100:25 102:19 103:1,17 103:24 104:2 C C 5:1 calculate 19:5 calculated 18:21 calculation 80:6,6 85:18 92:6,8 calendar 25:1 call 6:15 48:17 96:3 called 10:7 12:5 18:15 19:13 31:25 41:4 calls 95:12,13 capabilities 41:21 capability 76:21 capital 16:5,11 51:17 55:6 69:6,6,12,16 70:8 101:18 102:7 capture 23:4,5 card 96:17,18 96:25 care 12:25 26:13 53:12 112:1 careful 78:22 carries 115:5 carry 112:6 carrying 89:12 cars 73:17 case 24:21 45:19 98:13 101:16 cases 35:22 74:19 Casino 60:2 cause 36:11 58:18 84:20 causes 17:13 73:8 causing 14:21 CCR 4:22 CD 83:20,20 cent 12:23 certain 74:5,6,7 74:7 76:6,23 105:17 110:25 certainly 28:4 29:23 32:13 34:21 42:21 46:2 77:14 80:17 81:12 87:10 99:21 100:21 104:8 108:15 CERTIFICATE 116:1 Certified 3:8 116:3,17 certify 116:5 chair 4:4,5 6:11 6:11,13 39:20 67:15 98:4,17 107:8 Chairman 10:19 24:12,16 25:17 26:1 43:2,23 44:16 46:7,20 56:22 62:25 80:24 82:9 86:10 88:7 92:2 105:14 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73:25 74:3,9 74:11,16 75:4 75:15,19 76:6 76:10 84:16 85:4 86:2 city's 32:4 claim 77:22 Clarification 81:20 110:3 clarifications 96:7 98:1 clarified 97:20 clarify 33:15 63:3 92:6 93:21 94:1,6 97:19 98:21 class 76:6,10 classes 7:23 34:19 48:6 69:2,23 70:20 71:12 100:25 102:20 103:1 103:17,21,24 104:3 cleaner 62:19 clear 78:9 94:24 96:11 97:2,11,21 clogged 78:13 78:24 close 11:7 29:8 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 50:9 80:15 105:20 109:24 112:2,17 113:3 114:8,9 closed 106:6 107:13,23 108:2,7,20 111:5 113:24 114:10,16 closing 2:5 9:25 68:10,10 68:14 80:15 87:4 93:10 99:15 109:11 111:10 Club 45:1 Clyde 37:2 Coalition 44:25 51:5 57:12 cohesive 107:7 colleagues 99:19 collect 11:18 20:22 21:22 77:8 79:22 84:22 collected 11:19 11:21,21 20:20 27:11,15,20 collecting 25:12 79:25 collection 48:16 collectively 29:24 collects 12:22 15:13 70:12 combination 24:6 combined 51:21 51:22 53:13 61:8 come 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completely 55:13 completes 26:1 completing 31:9 96:18 completion 52:19,21 compliance 83:20 compliant 83:20 complies 68:25 compliment 87:23 comply 7:20 component 48:13 51:21 54:1 composed 44:17 composition 43:24 concept 91:5,6 91:16 concern 63:13 88:20 89:6 96:24 concerned 41:23 59:21 108:9 113:15 concerning 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 65:9 80:12 concerns 96:20 conclude 112:2 concluded 115:17 concludes 71:18 concluding 9:13 concrete 12:19 17:6 22:7 77:14 condensed 16:7 condition 50:21 conducted 9:2 9:12 conference 8:24 9:3,5 70:2,3 100:2 100:18 109:15 109:16 conferences 8:20 9:22 70:1 congestion 31:23 consent 46:24 47:13,19 48:3 48:5,8,10,11,12 48:16,22 49:13,16,17 50:4,20,21,25 51:12,17,21 52:17,20,22 53:3,11 57:13 57:25 60:22 61:3,22 64:11 65:9 consequences 52:15 consider 25:3 32:16 33:10 38:23 49:8 100:16 101:6 101:13,17,25 102:4,9,11,18 102:24 103:4 103:7,9,11,20 103:25 106:15 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47:17 54:13 62:14 77:7 customer 20:1 20:13 22:12,14 23:17 54:14,19 72:9,12,17,18 72:21,25 73:11 73:24 74:2 customers 11:23 19:4,21 20:5,5 20:6 21:2,6,8 21:9,16,19,20 23:10,18 60:6 69:10 71:4 73:9 74:3 75:20 80:9 D D 5:1 damage 29:1 dangerous 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 15:10 data 74:9,20 date 52:19,21 52:22 112:19 dated 81:5 daughter 36:24 day 3:4,5 12:1 78:6 day-to-day 58:20 59:2,19 60:7,8 days 8:11 24:15 de 14:17 deal 30:13 death 90:5 debate 37:16 debt 101:13,14 101:19 102:20 102:21 105:1,2 decide 25:4 69:13 105:1,9 decided 18:4 41:18 deciding 103:15 decision 104:6 111:16,24 decree 46:25 47:13,19 48:3 48:5,8,10,12 48:16,23 49:13,17,18 50:4,20,21,25 51:12,18,22 52:17,20,22 53:3,11 57:13 57:25 60:22 61:3,22 64:11 65:10 decrees 48:11 dedication 71:15 deduction 42:11 defeated 34:12 definitely 33:8 55:20 83:18 degree 80:5 delayed 60:7 delaying 51:11 52:1 64:7 delegates 44:17 deliberation 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district-wide 12:7 14:9 27:11 64:14 69:15 82:24 84:22 84:23,24 diversity 41:22 divide 20:14 divided 18:21 83:10 document 54:20,24 57:1 57:4 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES documentation 77:4 documents 9:1 9:6 68:5 doing 28:9,19 42:21 47:21 52:3 53:6 56:4 58:9,17 84:14 89:12 91:22 113:13 dollar 12:23 75:15 76:21 dollars 63:21 Don 5:14 door 10:6 15:24 dots 13:24 15:22 downtown 59:24 drafting 100:8 drainage 7:15 driver 17:12 driveway 77:15 driveways 17:6 78:19 92:7,10 due 7:4 38:8 101:8 dynamic 88:9 E E 5:1,1 earlier 37:14 57:24 67:1 73:5 80:12 84:5 85:6 86:9 earliest 25:8 east 12:11 East-West 31:22 easy 62:5 63:20 78:12 78:17 echo 90:13 Education 45:3 effect 102:10 effective 21:21 91:20 effectiveness 78:25 effort 42:2 eight 100:15 either 13:15 15:16 74:23 97:15 106:14 Elaine 40:7 election 6:18,19 element 9:24 33:24 Eleventh 4:23 eligible 38:3 42:11 eliminated 13:16 Ella 38:18 43:1 email 80:18 86:22 87:24 108:25 emails 82:11 emergencies 7:7 emotional 40:13 emphasis 61:4 emphatic 85:7 employed 116:8 116:11 employee 116:10 empty 14:11 enable 42:2 enabling 89:25 encouraging 86:21 endeavor 113:3 ended 95:5 endorsed 97:15 97:15 ends 31:11 Energy 4:18 8:6 45:2 93:9 engaged 8:19 engineered 22:4 engineering 15:7 29:24 62:8 95:22 96:4 Engineers 30:18 31:6 34:2 Engineers'45:1 enhance 53:16 enhancements 31:25 enhances 7:14 enrolled 89:4 ensure 27:22 108:22 enter 81:9 entered 65:21 109:23 entering 63:7 entire 15:20 28:8 57:11 83:7,25 entirely 62:10 entities 16:10 84:5 entity 36:5 76:15 79:16 83:14 Environment 45:1 51:5 57:13 environmental 29:22 environmenta... 24:4 EPA 47:14 49:6 50:24 51:4 equally 36:7 equitable 79:20 equivalent 18:15 20:7 22:21 eroding 38:13 erosion 13:20 14:9,14 15:2,4 15:24 16:13 26:21 28:21 29:1 31:14 35:8 36:25 38:6,8,11 39:12 58:25 69:8,17 70:9 erroneously 114:18 ERU 18:15 20:15 20:17 23:19 23:20 92:6 ERUs 18:20 20:7,10,15 21:12 escalating 30:4 especially 60:25 61:12 102:15 essence 74:19 essentially 114:5 established 6:20 estimates 15:20 55:7 95:23,25 evaluated 50:3 75:5 evaluation 50:17 75:11 85:23 evaluations 79:2 evening 109:18 events 13:3 everybody 23:5 48:18 60:14 64:16 84:22 evidence 9:18 68:6 69:20 80:17 85:4 109:23 114:8 evidentiary 65:15 exact 45:21 94:11,18 exactly 47:4,10 106:9 example 14:18 15:2 20:12 21:9 22:5 31:14,19 58:8 77:18 79:10 101:4,23 103:4 110:17 excluding 71:24 71:25 72:3 Excuse 93:24 94:3 executive 81:4 107:3 exhibit 24:19 40:1 57:2,4 63:3,7 65:19 65:20,22 67:11,25 68:6 81:19 114:7 exhibits 66:12 66:19 67:7,14 67:23 109:12 110:25 111:8 112:13,15 114:7 exist 11:23 16:18 21:4 27:17 61:15 existing 10:24 29:2 exists 10:25 22:24 24:5 27:14 expand 70:20 expected 23:6 71:17 113:22 expenditure 49:8 50:6,18 expenditures 48:6,7,9 83:17 experience 77:12 78:20 107:9 experienced 35:9 36:24 experiencing 35:8 experts 69:21 explain 56:19 60:21 explained 88:15 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES explanation 51:15 express 107:14 expressed 45:22 extend 32:20 63:16 extended 52:17 extra 17:10 extremely 39:19 F face 26:11 facilities 7:16 23:3 48:15,24 49:24 50:8 50:20 fact 22:23 46:7 69:21 71:10 85:24 88:8 94:7,20 108:22 factor 100:21 102:17 105:8 factors 25:3 96:18 100:15 100:16 101:3 101:21 104:24 105:3 fair 7:22 17:14 18:11 34:19 42:6 69:2,22 70:17,19 71:12 79:20 80:8 98:24 99:3 100:24 102:19 103:1,16,19,23 104:2,21 fairly 27:13 fairness 82:23 95:13 96:3 fall 19:21 falling 7:4 49:15 101:8 family 16:8 19:4 20:24 family's 42:12 far 27:1 64:12 75:5 76:12 88:1 113:14 Farrar 3:8 4:22 116:3 favor 114:25 favors 36:3 fear 57:18 60:24 61:4 February 6:18 7:25 8:16 24:14 54:8 56:21 68:25 federal 7:20 32:4 47:16 49:16 fee 28:20 feedback 106:13 feel 29:17 41:24 42:1 108:4 feeling 50:4 feelings 108:14 fees 27:23 feet 18:18 19:14 19:19,24 20:1 20:9,13 23:10 fell 50:1,1 felt 18:5,10 41:6 49:20 Ferguson 35:6 35:8,12,24 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59:3,20 60:20 83:12 follow 47:3 60:10 follow-up 85:2 following 44:18 66:10 73:22 115:10 foot 22:15 footage 18:16 77:19,20 92:7 footnote 102:10 footprint 92:21 93:3 foregoing 116:5 forgot 21:25 form 69:16 formal 54:4,20 61:20 former 35:6 forth 78:3 110:16 forward 10:13 17:24 25:7 26:5,9 28:5 28:12 29:23 34:22 42:23 62:21 66:2 75:22 81:17 88:12 114:15 forwarding 82:10 found 33:17 97:20 four 19:7 35:14 52:1 55:11,16 55:25 56:4,8 59:14 86:4 four-tier 19:5 four-year 55:23 fourth 12:3 41:7 41:19 52:24 Frequency 21:5 frequently 26:19 front 47:6 full 20:21 24:18 56:13 73:23 fully 12:19 106:18 function 21:3 functions 89:12 fund 12:7 16:4,9 26:24 69:6,14 funded 12:10 31:17 funding 10:25 12:4,14,20 15:21 27:15 29:3 30:9,15 30:22 31:17 32:2,3,9,15,21 33:1,5 70:11 71:3 84:7,19 89:17,19 funds 27:10,20 33:6 35:15 39:10 41:6 84:15 90:23 101:7 further 7:9 30:5 32:21 34:15 53:16,24 61:25 62:23 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 65:8 91:14,25 93:6 99:9 109:20,20 114:24 116:10 future 14:7 29:9 29:19 30:4 34:14 47:24 49:8,9 65:6 76:20 G G 5:1 gallons 12:1 garage 92:18 92:23,25 93:1 93:3 garages 15:5 Garden 44:22 Gateway 31:22 general 6:19 18:24 44:18 49:4 52:5 65:2 68:19 72:11 111:5 generate 74:10 85:15 generated 39:9 generates 74:6 generating 17:12 geographic 13:15 Gerald 4:8 getting 14:21 15:10 31:13 51:8 56:5,12 58:14 72:14 75:14 78:9 give 10:23,24 19:1 40:4 47:12,22 51:15 54:5 55:14 60:18 67:20 72:11 75:11 78:4,15 89:19 106:18 given 8:22 12:14 32:8 38:9 89:10 gives 16:3 90:21 giving 64:15 go 14:1 16:15,15 17:22 19:1 24:17 43:16 45:15 46:15 48:1 50:24 51:25 53:4 54:19 55:15 56:3 62:16 63:6 66:11,15 67:20 78:3 79:4,10,12 83:23 87:19 90:3,3 96:18 101:1 102:16 103:15 106:5 107:2,18 111:5 114:9 goes 53:1 72:13 72:19,20 73:16 78:1 going 10:22,23 13:21 17:3,8 17:22 18:14 19:1,7,10 20:6 20:9 21:18 23:23 24:7 27:10,24 28:7 38:13 39:1 40:21 43:11,24 47:4,7,22 48:3 51:13 53:8,8 54:6 56:3,10,11 57:23 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legislation 49:16 legislature 84:18 Lemay 48:19,25 57:22 62:17 length 36:6 Leonard 4:4 6:4 6:10 let's 67:6 letter 35:7 36:18,20 39:25 40:3 67:16 109:13 letting 60:19 92:12 97:19 level 29:12 51:16 59:22 80:7 91:19 levels 59:20 leveraged 30:14 lieu 53:11 life 35:23 49:1 limits 92:14 Lindbergh 12:11 12:12 line 31:13 52:25 lines 51:24 linkage 88:13,13 Lisa 4:16 39:22 39:24 104:19 list 13:19,22 27:6 44:5 66:12,19 67:7 67:8 68:1,6 75:25 83:23 listed 10:7 57:2 listening 38:19 90:16 lists 51:20 Litigation 4:22 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES little 15:1 19:2 41:1 70:21 75:14 83:4 84:4 86:8 94:15 100:5 111:17,23 live 35:25 42:7 42:10,18 85:11 lived 36:19 lives 41:25 58:20 59:19 60:8 living 85:14 Lloyd 5:24 loan 41:10 local 13:2 26:20 32:19 36:1 80:12 81:2 84:12 91:19,22 localized 14:18 14:20 located 16:24 64:17 74:11 locations 27:8 62:16 locked 85:19 85:20 86:5 long 16:1 long-term 47:18 61:21 63:8 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109:15 mile 11:22 miles 12:2 million 11:22 12:1 13:17,22 14:8,10 15:19 16:5 18:22 20:25 21:1,2,3 25:14 49:5 50:16 53:5,10 53:14 61:13 63:21 64:14 65:3 mind 28:4 48:6 105:4,7 107:17 107:17 minds 64:15 minimum 24:3 89:23 minutes 32:23 miscalculated 79:8 mischaracteri ... 79:8 Mississippi 22:19 58:24 83:8 Missouri 1:15 3:7,9 4:18,23 8:5 18:3 22:19 44:22,25 45:2 47:20 61:20 93:9 97:7 102:13 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 116:4 Missouri-Ame... 73:12 74:24 mistaken 30:17 Mitchom 35:2,3 35:5,5 37:2,3 37:9,11,22 38:5,17,25 39:11,14,17 40:2 43:3 mitigate 69:7,16 mitigation 31:23 mixed 11:19 78:17 modify 70:24 money 39:2,9 54:17 84:11,11 88:24 moneys 84:9 monitoring 79:24 month 16:9 18:24 19:16,20 19:25 20:3,16 20:18 21:13,21 21:22 22:17 40:20 54:15 55:15 79:23 79:23 monthly 21:7,22 41:2,12 72:9 73:5,6 months 14:24 21:24 69:19 morning 5:3,8 34:23 35:3,4 39:19 40:8 41:4 42:20 68:17 115:7 motion 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Myers 4:13 44:4 44:7 65:17,18 65:19,25 67:10,25 68:4 68:13,15,17,18 71:20 75:9,10 93:8,18 107:11 107:21 108:9 109:8 N N 3:7 4:22 5:1 116:3 name 6:10 name's 26:15 named 73:13 names 10:7 Natural 30:18 61:21 nature 44:1 near 14:7 necessarily 100:20 necessary 7:3 49:20 101:7 need 23:4,4 31:12 35:21 42:8 50:15 58:3 65:16 86:15 90:1 106:14 108:8 111:1 112:15 needed 69:7 97:20 110:20 needs 36:15 69:9 70:13 71:4 89:10,11 89:23 106:3 107:24,24 negative 36:14 61:6 negotiating 48:5 negotiation 48:3 neither 116:7 Neuschafer 4:19 93:11,12 93:14 98:1,3,4 98:6,12,16 99:2,10,11 new 16:18 28:1 32:15 49:25 50:1 62:10 63:4,5 70:7 night 109:13 112:14 nine 29:6 non-advertised 107:13 non-livable 92:18 non-metered 85:22 nonprofit 102:8 nonprofits 103:22 nonresidential 20:6,9 21:1,11 north 4:23 40:23,24 41:6 42:7 44:24 58:9 61:2,9 64:2,5,12 65:1 84:16 northern 57:20 not-for-profit 17:20 note 52:23 80:13 94:22 95:9,17 115:11 noted 81:6 notice 6:25 7:25 8:9 59:19 108:20 113:15 notify 113:10 November 6:19 34:11 81:5 number 13:24 13:25 18:20 20:10 27:4 29:2,19 31:2 45:21 48:9 67:20 72:12 77:19 82:5 numbers 49:4 73:8 O O 4:16 5:1 o'clock 5:4 objection 81:19 82:4 109:6 objections 9:20 obligate 113:10 obligated 76:23 obligations 100:6 obtain 105:17 obvious 51:2 obviously 27:10 32:20 59:5 75:1 81:8 108:14 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES occur 27:16 28:12 113:17 offer 23:14 25:19 offering 32:16 offers 42:12 official 40:6 98:9 offline 76:22 Oftentimes 14:19 oh 56:24 62:3 66:14 80:13 Okay 26:14 37:22 61:5 65:7 75:24 80:10 98:12 on-the-record 9:11 once 14:10 21:13 41:3 49:21,22 one's 59:24,25 one-year 23:13 ones 83:24 94:18 105:9 ongoing 65:6 88:22,22 89:5 open 45:11 112:4 113:2 opening 50:24 71:18 openings 45:8 operate 12:8,16 13:11 50:7 operated 12:10 operation 7:6 48:10 55:2 59:14 70:14 operational 9:14 48:23 opinion 33:5 71:5,7,8 87:9 97:17 107:19 107:21 108:1 opinions 36:14 opportunities 29:25 31:7 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27:6 32:17 45:11 47:21 51:8 56:12 57:11,12 68:21,23 71:15 75:5 99:12 101:1 110:5,18 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES product 77:21 77:23 program 15:20 16:5,9,14 18:22 25:14 30:23 31:1,23 31:24,25 32:9 32:16 33:1,6 37:13,18 42:13 51:17 53:4,6,7 53:10 54:1,3 54:18,23 55:6 55:10 65:24 71:1,3 79:23 83:19 84:13 86:12 87:7,14 89:5,16 90:17 90:18,19 91:1,5 91:17 95:14 96:5,21 109:14 programs 18:12 22:1 30:10,15 30:21 31:18,21 32:14 33:25 61:18 65:6 86:21 87:3 89:20 project 13:25 14:2 31:3,10 32:7,18,20 42:3 49:3 51:10 52:7 62:22,22 72:24 projected 56:16 projecting 54:13,15 projection 55:15 projects 13:21 14:5,14 26:24 27:2,4,16,21 27:25 28:11,12 28:21,24 29:2 29:25 30:13 30:19 31:4 32:1,3 33:23 34:3 38:1,4 41:17,23 51:12 52:1,10 57:18 57:22 60:17 61:1,2,19 64:7 64:21,23 82:24 88:22 89:9 95:2 96:17,22 prone 42:5 proper 86:18 properties 15:10 17:20 19:9,17 19:22 20:10 22:18 29:5 40:24 41:9 property 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quickly 87:24 quite 26:18 R R 5:1 rabbit 86:8 rain 23:12,13,21 23:23 53:7 92:22 rainfall 13:3 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES raise 76:16 raised 8:25 9:5 77:11 108:9 range 15:22 16:2 77:17 rate 1:8,11 2:6 3:1,3 4:15 5:5 5:6 6:11,14,21 6:25 7:1,3,9,10 7:12,24,24 8:1 8:2,7,9,10,13 8:13,16,18,22 8:25 9:6,14,17 9:25 10:2,16 10:21 11:1 14:12 14:16 16:11 17:4 17:21,25 18:1,5 18:6,10,19 20:19 22:6,17 23:6,17 24:13 24:14,20,23 25:2,4,5,18 25:25 32:10 34:18 37:8,19 38:1 40:22 42:9 43:25 44:6,7,14,17 45:6,8,10 46:2,17 54:6,7 55:22,24 58:4 63:14,15 64:10,10 67:9 68:7,9,11,21 68:24 69:2,6 69:12 70:7,8 70:16,17,18,22 71:5,9,20 72:20,23,25 73:23 74:23 75:1,12,20,22 80:18 83:18 86:3,20 88:14 89:13,18 91:20 93:23 94:10 94:24 97:3,4 97:4,8 99:21 100:7,8,10,11 100:23 101:5 101:11,12,13,16 101:18,19,25 101:25 102:3,4 102:7,18,22 102:24 103:6 103:8,11,20,21 103:25 105:6 107:5 109:19 110:4 112:1,2,4 ratepayer 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60:3,7 61:11,18 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 65:5 66:25 77:7 79:9 83:13 86:3 92:22,22 seeing 10:12 18:12 28:1 seen 10:21 27:1 31:15 33:25 54:24 64:13 selecting 46:9 selection 45:11 45:20 send 21:21 80:17 81:13 82:14 Senior 44:20 sense 16:3 57:23 79:25 sensitive 24:4 sent 81:1 separate 11:16 11:17,18 separately 27:19 105:15 serious 35:9 42:23 seriously 46:8 serve 6:13 23:3 served 73:11,12 serves 53:9 service 15:13 21:10,14 25:16 54:15 59:20 73:14,21 74:14 83:13 serviced 73:25 74:23 services 4:22 7:16 13:1 44:20 69:15 session 5:8 9:15 43:16 86:14 106:6 107:3,23 108:2,6,7,20 111:5 114:10,16 sessions 9:12 9:12 107:13 109:24 113:24 set 11:16,17 13:16 54:13 setting 8:25 9:6 68:21 seven 11:24 severe 35:8 sewage 12:1 sewer 1:9 3:2,6 4:12 6:12 7:15 12:3,10,17,18 13:12 31:13 35:14,19 49:14 51:21,22 53:13 70:15 73:16 sewers 12:2,8 12:18 share 30:3 41:6 shared 30:9 31:17 32:9 33:1,5 63:16 89:17,18 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STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 73:22 105:8 starts 52:25 state 3:8 7:20 11:12 18:3 47:19 60:9 63:6,8 84:8,18 107:10,12 112:9 116:4 statement 7:11 63:18 68:10,14 93:10 98:22 99:15 102:6,9 102:11 statements 2:5 55:18 68:10 87:4 93:23 94:15 95:19 95:23 96:2 97:19 States 12:3 17:18 status 12:4,20 statute 80:14 81:23,25 97:7 97:10 Statutes 102:13 statutory 7:13 102:2 stay 107:7 stays 25:10 Stein 4:9 6:2,3 29:15,16 55:13 62:2,4,7 step 28:5,6 62:20 Steve 4:9 Steven 5:22 stlmsd.com 24:18 stopped 87:25 storage 51:23 52:14 store 23:14 storm 12:2,8,10 12:17,17,18 13:12 16:1 70:14 81:7 stormwater 1:11 3:3 5:6 6:23 7:3 10:25 11:1 11:18,21,22 12:4,13,22,25 13:6,8,14,19 15:14 16:5,11,12 16:15 17:24 21:14 22:22 23:3,17 26:17 26:24 29:7,10 30:2,4 31:10 31:18 32:10 33:7,19,21,24 33:24 34:3,9 35:23 37:18 38:2,9,15 41:17,20 53:18 54:10 58:7,12 58:14 63:15 69:6,12,15 70:8,11 73:1 76:2,17,24,25 81:21,22,24 83:5,18 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support 32:19 41:21 42:8,12 69:21 71:7 94:17 supported 84:19 94:20 96:5 supportive 89:24,25 supports 71:9 97:9 98:23 supposedly 41:18 Supreme 18:3,4 sure 26:10,18 27:7,25 33:12 34:5 39:4 44:16 55:12 57:17 76:10,15 87:24 88:1,23 89:11 90:6 111:19 surface 17:7 31:22 58:13 78:7,14,23 surfaces 77:16 77:16 88:11 89:10,22 surprised 94:15 surrebuttal 94:8 surrounding 99:7 Susan 4:13 68:18 75:9 81:16 suspect 56:17 76:24 swimming 73:18 Switching 75:25 system 12:3,10 12:13,17,18 13:12 19:5 49:10 53:14 58:14 62:15 73:17 86:5,6 96:10,12,14,15 systems 7:15 59:13 83:22 104:1 T table 87:16 90:7 take 5:7 12:24 20:14 22:1 23:18 24:7 34:17 41:17,23 42:22 43:12 51:14,19 58:15 73:20 79:11 81:18 82:3 85:23 105:23 115:7 taken 3:3 23:10 32:6 43:14 69:12 83:10 96:2,11 97:11 97:16 116:5,9 takes 46:8 talk 10:25 11:1,7 25:21 87:6,19 100:5 105:15 106:17 110:16 talked 37:12 41:5 58:3 73:6 talking 38:19 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 45:25 56:6 63:20 77:9 84:13 target 16:19 task 68:23 tax 6:23 7:3 12:23,24 13:3 13:9,9 29:7 34:9 36:17 37:23 38:16 40:22 41:22 70:12,13 76:2 76:5,17 80:23 81:2,8,21,22 81:24 90:21 Tax-exempt 16:10 taxes 40:17,19 42:19 taxpayer 42:8 taxpayers 9:17 teacher 40:14 team 55:8 109:21 technical 8:19 9:21 24:16 57:4 62:14,20 69:21 70:1 75:14 97:6 technically 113:13 technologies 49:19 technology 49:25 62:11 telephone 46:12 tell 51:1 55:8 114:3 ten 17:23 22:5 59:12 79:10 84:10 ten-minute 107:4 ten-year 53:1 terms 30:21 38:6 78:17 test 79:13 testify 9:17 testimony 8:17 8:23 9:1,7,18 9:24 24:19 37:14 43:11 69:19 73:4 92:5 94:8,20 94:21 95:10,13 thank 5:9 6:8,9 10:14,19,20 26:3,8,14 29:13 33:11 34:4,22,25 37:7,11 39:15 39:18 40:6,7,8 40:11 42:14,24 43:3,4,8 44:2 45:4,24 46:10 49:13 57:6 63:10,25 65:11 65:11,13 66:1 67:12 68:3,15 68:20 71:14,18 82:6,12 84:2 86:7 88:6 90:9 91:12 93:5,8,8,14,15 97:25 99:8,11 99:16 104:15 109:7,7 thanking 99:19 thanks 43:10 99:11 thereon 10:8 thereto 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7:21 12:15 13:11 15:18 16:16,20 34:23 47:1 54:12 71:15 87:6 91:21 93:16 95:4,24 97:23 99:20 99:22 102:2,3 105:16 106:13 106:18 108:21 110:1 111:23 114:11 timeline 24:10 times 20:16 31:8 33:23 35:11 36:13 59:12,15 94:2 110:12,13 timing 45:18 tire 77:21 today 9:14 18:8 18:13 26:8 37:12 43:10 64:2,3,19 67:16 80:16 82:2,24 85:7 86:24 90:16 102:15 106:11 108:3 110:2 111:11 today's 98:8 Toenjes 4:4 5:3 6:4,5,9,10 24:12 26:3,12 28:15 29:14 30:5 33:13 34:6,15,25 35:4 37:6 39:16,21,24 40:4 42:16,25 43:4,15 44:2,9 44:12 45:4,24 46:10,21 57:6 60:11 61:25 62:23 63:1,11 65:8,14,18,23 66:1,5,9,13,16 66:21 67:3,12 67:18,22 68:3 68:16 71:19 80:11,25 82:6 82:13,16,20 84:25 86:16 87:18,21 90:9 91:12,25 93:6 93:13 97:25 98:5,14,19 99:9,17 104:15 105:11,22 106:1,25 107:18 109:5 111:25 112:7,9 112:21,25 113:8 113:21 114:21 115:3,14 told 93:19,20 Tom 5:25 tool 91:20 top 32:21 66:17 2018 STORMWATER RATE CHANGE PROCEEDINGS 6/29/2018 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES topic 59:8 83:4 topics 69:25 103:18 106:16 total 18:19 24:2 74:25 totaling 49:23 Totals 15:19 touched 79:14 town 35:9 37:5 toying 105:4 trail 86:8 trained 47:10 transcript 24:19 98:8 transcripts 9:21 transmitted 13:2 66:19 67:6 transportation 31:21,23,24 31:25 32:2 33:17,21,23 trapped 42:6,7 treated 23:11 35:11,17 36:7 treating 11:25 treatment 11:25 48:11,13,17,19 48:20,25 tree 79:17 tributaries 52:9 true 63:18,19 110:7,8 trust 47:11 trustees 7:2,10 8:9,12 24:25 69:12 100:24 try 15:7 42:9 83:14 100:3 trying 17:13 27:6 30:3 38:24 47:3 60:21 73:15 80:3 Tuesday 115:7 tunnel 51:23 52:9,14,14 tunneling 58:17 tunnels 52:3 58:18 turn 26:12 75:8 75:10 twice 14:23 two 11:15 12:22 19:18,21 25:9 31:12 40:18 48:5 59:23 60:2 73:7,13 100:17 type 28:19 32:16 41:11 58:11 59:2 60:17 79:16 80:7 88:3 types 74:17 104:4 typewriting 116:7 typical 23:16 79:10 typically 21:20 34:2 U ultimate 58:22 ultimately 18:4 25:5 understand 27:12 36:3 45:7 46:25 48:4 50:8 74:15 89:8 96:15 114:14 understanding 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