HomeMy Public PortalAboutExhibit RC 27 - Resolution Approving Amendments to Operational Rules Regulations and ProceduresRESOLUTION OF THE RATE COMMISSION OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT APPROVING
AMENDMENTS TO THE OPERATIONAL RULES,
REGULATIONS AND PROCEDURES OF THE RATE
COMMISSION, AND AUTHORIZING THE ACTIONS OF
CERTAIN OFFICERS OF THE RATE COMMISSION
WHEREAS, the Board of Trustees ("Board") of the Metropolitan St. Louis Sewer
District ("District"), pursuant to § 7.040 of the Charter ("Plan"), approved by the voters of St.
Louis and St. Louis County at a special election on February 9, 1954, as amended at a general
election on November 7, 2000, has established the Rate Commission ("Rate Commission") to
review and make recommendations to the Board regarding proposed changes in wastewater
rates, stormwater rates, and tax rates; and
WHEREAS, upon receipt of a Rate Change Notice ("Rate Change Notice") from the
District and pursuant to § § 7.040, 7.280(b) of the Plan, the Rate Commission is to recommend
changes in a wastewater, stormwater, or tax rate to the Board necessary to pay (i) interest and
principal falling due on bonds issued to finance assets of the District, (ii) the costs of operation
and maintenance, and (iii) such amounts as may be required to cover emergencies and
anticipated delinquencies; and
WHEREAS, any change in a rate recommended to the Board by the Rate Commission
pursuant to § 7.270 of the Plan is to be accompanied by a statement of the Rate Commission that
the proposed rate change (i) is consistent with constitutional, statutory, or common law as
amended from time to time; (ii) enhances the District's ability to provide adequate sewer and
drainage systems and facilities, or related services; (iii) is consistent with and not in violation of
any covenant or provision relating to any outstanding bonds or indebtedness of the District; (iv)
does not impair the ability of the District to comply with applicable Federal or State laws or
regulations as amended from time to time; and (v) imposes a fair and reasonable burden on all
classes of ratepayers; and
WHEREAS, the Rate Commission pursuant to § 7.250 of the Plan is authorized to
promulgate such operational rules, regulations, and procedures which are not inconsistent with
Article 7 of the Plan; and
WHEREAS, in order to meet its obligations under the Plan and pursuant to § 7.280(e) of
the Plan, the Rate Commission adopted on August 16, 2001, Operational Rules, Regulations, and
Procedures as amended on March 21, 2002, April 16, 2003, March 2, 2007, January 18, 2008,
March 7, 2011, and March 4, 2015 (the "Operational Rules") to govern the activities of the Rate
Commission, which the Rate Commission now seeks to further amend; and
WHEREAS, certain proposed changes were presented to the Rate Commission at its
meeting on January 8, 2018 and discussed; and
WHEREAS, the Rate Commission finds and determines that those certain amendments to
the Operational Rules are feasible, necessary and in the public interest of the Rate Commission;
NOW, THEREFORE, the Rate Commission DOES HEREBY RESOLVE, DETERMINE
AND ORDER as follows:
Section 1. Preambles Incorporated. The Rate Commission hereby finds and
determines those matters set forth in the preambles hereof as fully and completely as if set out in
full in this Section 1.
Section 2. Amendments to Operational Rules. The Rate Commission hereby
approves and adopts the Operational Rules (attached hereto as Exhibit A and made a part hereof)
under and pursuant to the Plan, with the changes shown in redline.
Section 3. Actions of Officers Ratified and Authorized.
The officers of the Rate Commission shall be, and they hereby are, authorized and
directed to execute all documents and take such actions as they may deem necessary or advisable
in order to carry out and perform the purposes of the Operational Rules and this Resolution, and
the execution of such documents or taking of such action shall be conclusive evidence of such
necessity or advisability.
Section 4. Severability. It is hereby declared to be the intention of the Rate
Commission that each and every part, section and subsection of this Resolution shall be separate
and severable from each and every other part, section and subsection hereof, and that the Rate
Commission intends to adopt each said part, section and subsection separately and independently
of any other part, section and subsection. In the event that any part, section or subsection of this
Resolution shall be determined to be or to have been unlawful or unconstitutional, the remaining
parts, sections and subsections shall be and remain in full force and effect, unless the court
making such finding shall determine that the valid portions standing alone are incomplete and are
incapable of being executed in accordance with the intent of this Resolution.
Section 7. Governing Law. The laws of the State of Missouri shall govern this
Resolution.
Section 8. Effective Date. This Resolution shall become effective immediately upon
its passage.
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ADOPTED by the Rate Commission this 26th day of February, 2018.
ATTEST:
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THE RATE COMMISSION OF THE
METROPOLITAN ST. LOUIS SEWER
DISTRICT
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EXHIBIT A
OPERATIONAL RULES, REGULATIONS AND PROCEDURES OF THE
RATE COMMISSION OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT
Section 1 -Definitions
This section defines terms used in operational rules, regulations and procedures of the
Rate Commission of the Metropolitan St. Louis Sewer District.
(1) "Charter (Plan)" means the organizing plan and charter for the Metropolitan St. Louis
Sewer District, as approved by the voters of St. Louis and St. Louis County at a special election
on February 9, 1954 and amended by the voters on November 7, 2000.
(2) "MSD" or "District" means the Metropolitan St Louis Sewer District as established by
and described in the Charter (Plan).
(3) "MSD Staff' means any and all employees and agents of the of the District, including the
Executive Director, Director of Finance, Secretary -Treasurer and Internal Auditor, and any firm,
person, consultant or other third party hired by the District to perform work relating to a Rate
Change Notice.
(4) "Commission" means the Rate Commission of the Metropolitan St. Louis Sewer District
as established by Section 7.040 of the Charter (Plan).
(5) "Commission member" means a Rate Commission Delegate is as established and
described in Section 7.230 of the Charter (Plan).
(6) "Board" means the MSD Board of Trustees established pursuant to the Charter (Plan).
Section 2 — Organization of the Commission
This section establishes and describes the internal organization of the Commission,
including its elected officers, standing committees and the duties assigned to each.
(1) Officers of the Commission — At the fifth meeting of the Commission, and every
February of each odd calendar year thereafter, the Commission members shall, by a majority
vote, elect a Chair, Vice -Chair and Secretary from among the Commission's membership. Each
officer so elected shall serve a term of two years, beginning the first day of February and ending
on the 31st day of January of the second following year, and may be elected for additional terms
by a majority vote of the Commission. In the event that a vacancy occurs in the position of Chair,
Vice -Chair or Secretary prior to the expiration of the member's term of office in that position,
the Commission shall elect a member to fill the unexpired term of the position at the next
regularly scheduled meeting of the Commission. Officers shall serve until their successors
assume office.
(2) Duties of the Chair The Chair of the Commission shall:
(a) conduct all meetings of the Commission, including the setting of the agenda for
such meetings in consultation with the other Officers and, upon request, other members of the
Commission;
(b) serve as the presiding officer at any public hearing(s) held in connection with a
Rate Change Notice;
(c) coordinate the activities of the Commission's Standing Committees; and
(d) establish, subject to Commission approval, interim committees or task forces to
address specific matters that fall outside of the scope of the matters assigned to the Standing
Committees.
(e) convey to the public, in coordination with the Public Affairs Committee and its
Chair, the context in which the Commission was created, its mission, style of operation,
independence and other considerations that assist all parties in understanding the role of the
Commission; and
(f) serve as the primary point of contact for entities interacting with the Commission,
unless that rote has been delegated to another Officer or member of a Standing Committee.
(3)
Duties of the Vice -Chair the Vice -Chair of the Commission shall:
(a) perform the duties of the Chair of the Commission in the event of the Chair's
absence at any scheduled meeting or hearing;
(b) assist the Chair in the perfoiiiiance of any of the Chair's duties that the Chair may
delegate to the Vice -Chair; and
(c) serve as a liaison between the Commission and other appropriate entities.
(4) Duties of the Secretary - the Secretary of the Commission shall:
(a) perfoiiii the duties of the Chair of the Commission in the event both the Chair and
Vice -Chair are absent at any scheduled meeting or hearing;
(b) keep, or supervise the keeping, of the minutes or transcripts of all scheduled
meetings and hearings of the Commission, including the recording of all votes of the
Commission members;
(c) certify all reports, requests and other foiilial actions issued or taken by the
Commission.
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(5) Standing Committees - The Commission shall have three Standing Committees,
including a Technical Services Committee, a Public Affairs Committee, and a Finance
Committee, to assist the Commission in carrying out its assigned duties in an expeditious and
efficient manner Each Committee shall have a minimum of three Commission members and a
maximum of six Commission members. Upon the first meeting of each Committee after the bi-
annual election of officers of the Commission, each Committee shall elect a Chair for purposes
of conducting any meetings of the Committee.
(6) Duties of Technical Services Committee - the Technical Services Committee shall:
(a) develop and make recommendations to the full Commission regarding the
retention and supervision of any consulting firm or other provider of professional services
required to facilitate the work of that Committee;
(b) develop and make recommendations to the full Commission regarding the content
of discovery, information requests, or other recommended areas of investigation and inquiry that
the Technical Services Committee deteiuiines should be pursued by the Commission or its
agents in connection with a Proposed Rate Change;
(c) coordinate with appropriate entities and the Commission the implementation of
any other measure reasonably required to complete a timely anti thorough review of any
Proposed Rate Change; and
(d) assist the Commission in defining the matters before the Commission most in
need of legal review based on the Charter (Plan), federal, state, and local laws, and the powers of
the Commission.
(7) Duties of Public Affairs Committee - The Public Affairs Committee shall:
(a) develop and make recommendations to the full Commission regarding the
publication, timing, fouuat and location of the public hearing mandated by Section 7.280 of the
Charter (Plan) and any other public hearings scheduled by the Commission;
(b) develop and make recommendations to the full Commission regarding measures
for informing the general public of the purpose, operations and work product of the Commission
and for encouraging public awareness of, and participation in, the process for reviewing
Proposed Rate Changes;
(c) coordinate with appropriate entities and the Commission the implementation of
any other measure reasonably required to educate consumers of the District's Services regarding
Rate Change review process and the role they can play in that process; and
(d) develop and make recommendations to the full Commission regarding the
retention and supervision of any consulting firm or other provider of professional services
required to facilitate the work of that Committee.
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(8) Duties of Finance Committee - The Finance Committee shall:
(a) develop and make recommendations to the full Commission regarding the
amount, content and basis for the Commission's annual budget request to the Board as provided
by Section 7.260 of the Charter (Plan);
(b) develop and make recommendations to the full Commission regarding any
supplemental funding or resource requests that may be reasonably required outside of the annual
budget request to discharge the duties of the Commission and any other required authorization
that must be sought from the Board pursuant to law;
(c) review all bills incurred on behalf of the Commission prior to submission to the
Rate Commission for final approval;
(d) prepare and submit monthly financial reports and end of fiscal year report to the
Rate Commission; and
(e) coordinate with appropriate entities and the Commission the implementation of
any other administrative measure reasonably required to assist the Commission in the discharge
of its duties.
(9) Preservation of Decision -Making Authority and Member Participation Rights - The
assignment of specific tasks to a Standing Committee, interim committee or task force shall not
be construed as limiting in any manner the Commission's ultimate authority to review and decide
the business matters of the Commission or matters relating to Proposed Rate Changes or any
Commission member's right to fully participate in the determination of such matters.
Section 3 - Review of Proposed Rate Changes
This section establishes and describes the procedures, testimony requirements, discovery
practices and other procedural rules and regulations that will be followed in the
submission of Rate Change Notices and the review of Proposed Rate Changes by the
Commission.
(1) Meetings All meetings of the Commission, its Standing Committees and any interim
committees or task forces that may be established by the Commission shall be open to the public
and conducted in accordance with the provisions of Chapter 610 of the Revised Statutes of
Missouri (2000), as amended from time to time. A quorum to conduct a meeting of the
Commission, a Standing Committee or an interim committee or task force shall exist when a
majority of the members of such Commission, Committee or task force are present.
(2) Filing of Rate Change Notices -- Submission of Direct Testimony — Within three (3)
business days of the date it submits a Rate Change Notice, the District shall also submit to each
member of the Commission any and all direct testimony, accounting schedules, economic and
engineering analyses, legal memoranda, reports, memoranda, contracts for services and any other
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information or data ("Rate Setting Documents") that may be required to fully demonstrate and
explain:
(a) why the Proposed Rate Change set forth in the Rate Change Notice is necessary,
fair and reasonable;
(b) how the Proposed Rate Change will enhance the District' s ability to provide
adequate sewer and drainage systems and facilities, or related services;
(c) whether and to what extent the Proposed Rate Change is necessary to enable the
District to comply with any covenant or provision relating to any outstanding bonds or
indebtedness of the District, together with a specific quantification of the amount of the Proposed
Rate Change that is necessary for such purposes;
(d) whether and to what extent the Proposed Rate Change is necessary to enable the
District to comply with applicable federal or State laws or regulations as amended front time to
time, together with a specific quantification of the amount of the Proposed Rate Change that is
necessary for such purposes;
(e) why the burden imposed on each class of ratepayers by the Proposed Rate Change
is fair and reasonable, including whether and how cost of service considerations, cost causation
principles, customer impact data, economic development considerations, environmental effects
and other factors have or have not been factored into such determination;
(f) the measures taken by the District to ensure that the cost of constructing and
maintaining the District's facilities and providing related services are being incurred in a
reasonable and efficient manner, including copies of' internal or external audit reports that
address such matters;
(g) how, whether and to what extent the Proposed Rate Change will affect,
impact and comply with the Consent Decree effective April 27, 2012, by and between the
United States of America, the State of Missouri, the Missouri Coalition for the
Environment Foundation and the District;
(gh) the name, address, telephone number and email of each person submitting and
sponsoring such direct testimony.-;
(hi) if the Rate Setting Documents are voluminous in nature, such Documents may be
referenced and described in the District's direct testimony, provided that copies of such
Documents shall be made available to any Commission member upon request.
(3) Scheduling — Within twenty (20) days of the date a Rate Change Notice is filed, the
Commission shall meet to establish a procedural schedule for the submission of applications to
intervene, the submission of rebuttal and surrebuttal testimony, the holding of technical
conferences, a prehearing conference and a public hearing or hearings. The procedural schedule
established by the Commission shall be sufficient to permit the Commission to tender its Rate
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Commission Report within one hundred and twenty (120) days after receipt of the Rate Change
Notice. At such meeting, the Commission shall also select the consulting firm or other provider
of professional services that will assist it in its review of the Proposed Rate Change, unless such
arrangements have already been completed, and receive from the District an oral presentation
and responses to any questions by the Commission regarding the Proposed Rate Change.
(4) Applications to Intervene On or before the date established by the Commission for
such purpose, any person who would be affected by the Proposed Rate Change may submit an
application to intervene in the proceedings established by the Commission to consider the
Proposed Rate Change. Such application to intervene shall:
(a) provide the name, address, and telephone number of the person seeking to
intervene and any other person on whose behalf such intervention is sought;
(b) describe the person's interest in the Proposed Rate Change;
(c) specify whether or not the person intends to submit prepared written testimony;
and
(d) indicate whether or not the person is in agreement to respond to discovery
submitted in connection with such person's testimony.
(e) An Application to Intervene will be deemed granted unless rejected by the
Commission.
Neither the District nor any person or persons engaged by the Commission to review the
Proposed Rate Change shall be required to seek intervention in order to participate in the
proceedings established to review the Proposed Rate Change.
The Commission may establish a sample form to be used for Applications to Intervene
which meets these requirements. Applications to Intervene meeting the above requirements will
be accepted even if not submitted on the sample form.
(5) Discovery Procedures —
(a) The person or persons engaged by the Commission to review the Proposed Rate
Change or any person or persons permitted to intervene shall be permitted to request additional
information and answers from the District regarding any element of the Proposed Rate Change.
The person or persons engaged by the Commission to review the Proposed Rate Change as well
as the District may request additional information and answers from any person or persons who
has been permitted to intervene regarding any testimony submitted by such person. The District
may request additional information and answers from the person or persons engaged by the
Commission to review the Proposed Rate Change.
(b) Any request for information shall set forth each question in clear and concise
language, leaving an appropriate place below each question for an answer or objection to be
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inserted. The answers to the request for information shall be typewritten in the space provided.
In the event an answer is too lengthy to place in the space provided, it shall be attached as an
appendix and clearly identified.
(c) All such information and answers shall be provided within ten (10) days of the
date the request for such information and answers is received. All other discovery of the District,
the person or persons engaged by the Commission to review the Proposed Rate Change, and of
persons permitted to intervene shall be conducted in a series of three on -the -record technical
conferences held after each round of testimony during which time each individual person
submitting testimony in the immediately preceding round of testimony shall answer questions
propounded by the Commission, the District, the person or persons engaged by the Commission
to evaluate the Proposed Rate Change and any person who has been permitted to intervene.
(d) No person shall be required to answer questions for a total period of more than
three hours, with the time evenly divided among all participants desiring to ask questions.
(e) A transcript of such conferences shall be made and provided to the Commission
and the participants at a price equal to the cost of producing such transcripts.
(f) Any person who fails to answer relevant and otherwise proper questions regarding
their testimony, to make themselves available for questioning in the technical conferences, or to
provide other information properly requested pursuant to these discovery procedures shall be
subject to having their testimony disregarded by the Commission.
(6) Submission of Rebuttal Testimony - Any interested person who is permitted to
intervene and any person or persons engaged by the Commission to review the Proposed Rate
Change may submit prepared rebuttal testimony and schedules in accordance with the schedule
and in the manner established by the Commission. Such testimony shall include all information,
analysis and other supporting data explaining why the party rejects or disagrees with any element
of the Proposed Rate Change and supporting and explaining any alternative to the Proposed Rate
Change that the party wishes the Commission to consider.
(7) Submission of Surrebuttal Testimony - Any interested person who is pen lifted to
intervene, the District and any person or persons engaged by the Commission to review the
Proposed Rate Change may submit prepared surrebuttal testimony and schedules in accordance
with the schedule and in the manner established by the Commission. Such surrebuttal testimony
shall include all information, analysis and other supporting data explaining why the party rejects
or disagrees with the rebuttal testimony submitted by another person.
(8) Testimony and Discovery Responses to be Presented under Oath — Any testimony
or discovery response provided by any person permitted to intervene, the District, or any person
or persons engaged by the Commission to review the Proposed Rate Change shall be
accompanied by a notarized affidavit stating that the matters contained therein are true, correct
and complete to the best of that person's knowledge and belief and all persons answering
questions or presenting testimony during any technical conference shall do so under oath.
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(9) Prehearing Conference — Following the submission of testimony, a prehearing
conference shall be scheduled for the purpose of identifying any issues raised by the prepared
testimony previously submitted in connection with the Proposed Rate Change. The Commission,
the District, the Consultant, Legal Counsel and all persons submitting testimony may participate
in the prehearing conference. Within five (5) business days of the conclusion of the prehearing
conference, the participants shall submit to the Commission a prehearing conference report
describing the issues raised by the prepared testimony, together with a brief description of each
participant's position, if any, on each issue and the rationale therefore. In the event, the
participants are able to resolve any issue or issues raised in the prepared testimony, they shall
also include as part of the prehearing conference report a joint recommendation describing each
such issue, their recommended resolution of the issue, and the rationale therefore.
(10) Public Hearing - At a time or times designated by the Commission on -the -record public
hearings shall be held. The Commission may designate for which purposes a particular public
hearing is scheduled. At least one public hearing shall be held after the prehearing conference,
the purpose of which shall be to:
(a) permit ratepayers and taxpayers to testify regarding the Proposed Rate Change;
(b) permit management of the District and/or Board to testify regarding the Proposed
Rate Change;
(c) receive into evidence any prepared testimony previously submitted to the
Commission subject to any valid objections, together with the discovery responses and
transcripts of the technical conferences;
(d) permit the Commission members or those designated by the Commission to ask
questions regarding any issue addressed by the prepared testimony or any other element of the
Proposed Rate Change;
(e) permit closing statements by the District, the person or persons engaged by the
Commission to review the Proposed Rate Change and any person who has been permitted to
intervene.
(11) Preparation and Approval of Rate Commission Report — Upon completion of the
final Public Hearing, the Commission shall discuss the issues presented for the Commission's
resolution and, based on all of the information received into evidence and all of the relevant
criteria governing its rate determinations, vote on the amount of the Proposed Rate Change that
should be approved and how the Proposed Rate Change should be allocated to the District's
customer classes. A Report reflecting the vote of a majority of the Commission members on
each of these matters together with findings sufficient to explain why the Commission's
decisions are consistent with the criteria governing rates as set forth in Sections 7.040 and 7.270
of the Charter (Plan) shall be prepared and issued with the assistance of the person or persons
engaged by the Commission to review the Proposed Rate Change. Such person or person shall
also assist in the preparation of any minority report.
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(12) Amendments - These rules may be amended from time to time by a vote of two thirds of
the members of Commission at the next meeting following the meeting at which such
amendment or amendments were submitted to the Commission,
Section 4 — General Provisions regarding Meetings
This section establishes and describes the requirements relating to general
meetings of the Commission, including when meetings may be closed and the
date, times, and notice of meetings.
(1) Open Meeting Policy — All meetings of the Commission and meetings of Commission
Committees or any Commission task force, whether corporeal or by means of communication
equipment, shall be open to the public, except closed sessions as authorized by law. All
meetings shall be held at a place and time reasonably convenient and of sufficient size to
accommodate the anticipated members of the public. In addition, reasonable efforts shall be
made to make the meeting accessible to individuals with disabilities.
(2) Closed Meetings - The Commission reserves the right to sit in closed meetings on
matters which are authorized by Section 610.021, RSMo. The Commission may hold a meeting
closed to the public, or close a portion of the meeting to the public, upon a majority vote of the
members present, taken at a meeting open to the public for which notice has been given or as
stated in the public notice. The vote of each Commission member on the question of holding a
closed meeting and a reference to the specific exception which authorizes the closing of the
meeting to the public shall be recorded and entered into the minutes of the meeting.
(3) Dates, Times and Notice — The Commission will conduct monthly meetings at dates and
times determined by the Commission. Special meetings of the Commission may be called at any
time by the Chair. Public notice of the time, date, place, and a tentative agenda advising the
public of the matters to be considered for each meeting will be posted as provided in Section
610.020, RSMo.
(4) Participation by Telephone — Any member or members of the Commission may
participate in a meeting of the Commission or any Committee of the Commission by conference
telephone or similar communication equipment by means of which all persons participating in
the meeting can hear each other. Participation in such a meeting shall constitute attendance and
presence in person at the meeting of the members or members so participating.
(5) Quorum — A quorum for a meeting of the Commission, a Committee, or task force shall
exist when a majority of the members of such Commission, Committee, or task force are present.
(6) Meeting Conduct — Unless otherwise provided by law, the Charter, or the Operational
Rules, meetings of the Commission shall be conducted in accordance with the current edition of
Robert's Rules of Order.
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Adopted the 16th day of August, 2001.
Amended the 21 st day of March, 2002.
Amended the 16th day of April, 2003.
Amended the 2nd day of March, 2007.
Amended the 18th day of January, 2008.
Amended the 7th day of March, 2011.
Amended the 4th day of March, 2015.
Amended the 26th day of February, 2018.
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