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HomeMy Public PortalAboutExhibit MSD 84 - Transcript of Public Hearing - May 14, 2019 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 1 1 IN THE COUNTY OF ST. LOUIS 2 STATE OF MISSOURI 3 4 5 6 7 8 9 10 11 MSD PUBLIC HEARING 12 13 14 15 16 17 MAY 14, 2019 18 19 20 21 22 23 Saint Louis County Library Grants View Branch 24 9700 Musick Road 25 Saint Louis, MO 63123 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 2 1 A P P E A R A N C E S 2 3 4 COMMISSIONERS: Mr. Paul Brockmann, Chairman 5 Mr. Don Bresnan Ms. Mickey Croyle 6 Mr. Lloyd Palans Mr. Paul Ziegler 7 8 FOR THE METROPOLITAN SEWER DISTRICT: 9 Mr. Brian Hoelscher MSD Executive Director and CEO 10 11 12 13 14 15 16 17 18 19 20 21 Court Reporter: 22 Georgia Beth Long, CSR, CCR Illinois CSR #084-004742 23 Missouri CCR #1401 Alaris Litigation Services 24 711 North Eleventh Street St. Louis, Missouri 63101 25 (314) 644-2191 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 3 1 MR. BROCKMANN: Good evening. I would like to 2 get started. First of all, I would like to commend all 3 of you for being here. It took quite a hearty soul to 4 make it through all the traffic and detours and 5 everything else. I commend you on that. 6 My name is Paul Brockmann. I'm a member of the 7 Metropolitan St. Louis Sewer District Rate Commission. 8 I will be presiding over the public hearing this 9 evening. 10 With me tonight are the following MSD Rate 11 Commission members: Mr. Don Bresnan, Ms. Mickey Croyle, 12 Mr. Lloyd Palans. 13 The Charter Plan of the District was amended at a 14 general election on November 7, 2000 and established the 15 Rate Commission to review and make recommendations to 16 the District regarding changes in wastewater rates, 17 stormwater rates, and tax rates proposed by the 18 District. 19 The Charter Plan requires the MSD Board of 20 Trustees to select organizations to ensure a fair 21 representation of all users of the District's services 22 on the Rate Commission. 23 The Rate Commission representative organizations 24 are to represent commercial-industrial users, 25 residential users, and other organizations interested in PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 4 1 the operations of the District, including organizations 2 focusing on environmental issues, labor issues, 3 socioeconomic issues, community neighborhood 4 organizations, and other nonprofit organizations. 5 The MSD Rate Commission currently consists of 15 6 members from organizations and institutions throughout 7 St. Louis City and County. 8 The Rate Commission received a rate change notice 9 from the District on March 4, 2019 under the District's 10 Charter Plan. 11 The Rate Commission must, on or before July 2, 12 2019, issue its report on the proposed rate change 13 notice to the Board of Trustees of the District; unless 14 the Board of Trustees, upon application of the Rate 15 Commission, extends the period of time for the issuance 16 of the Rate Commission report for an additional 45-day 17 period. 18 At its meeting on March 14, 2019, the Board of 19 Trustees approved the Rate Commission's request for an 20 extension. 21 Thus, the Rate Commission's report on the rate 22 change proposal must now be issued on or before August 23 16, 2019. 24 The MSD Rate Commission has engaged legal counsel 25 and a rate consultant independent of those used by MSD PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 5 1 staff. 2 Under procedural rules adopted by the Rate 3 Commission as amended, any person affected by the rate 4 change proposal had an opportunity to submit an 5 application to intervene in these proceedings. 6 An application to intervene has been filed by the 7 Missouri Industrial Energy Consumers. This application 8 has been granted. 9 Since March 4, 2019, the MSD Rate Commission has 10 received testimony from MSD staff, the rate consultant, 11 and interveners. 12 The parties have also engaged in discovery 13 requests. A prehearing conference for the purpose of 14 identifying any issues raised by the rate setting 15 documents and the prepared testimony previously 16 submitted will be conducted on the record. 17 All persons submitting testimony may participate 18 in the prehearing conference, and each participant in 19 the prehearing conference shall submit a prehearing 20 conference report, describing the issues raised by the 21 rate setting documents and prepared testimony, together 22 with a brief description of such participant's position, 23 if any, on each issue and the rationale thereon. 24 Ratepayers who do not wish to intervene are 25 permitted to participate in these on-the-record public PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 6 1 hearings conducted in six sessions, beginning this 2 evening. 3 The Rate Commission published a public notice 4 regarding these proceedings in the St. Louis 5 Post Dispatch and the St. Louis American. These notices 6 contained the time, dates, and location of each of the 7 conferences and hearings. 8 The public hearing session tonight is for the 9 purpose of permitting the District to present its 10 wastewater rate change proposal and to permit any 11 ratepayer an opportunity to comment. 12 We will begin with a presentation by the 13 District, followed by a public comment period. 14 The District will be presenting a lot of 15 information, so I would ask that you hold your questions 16 until the comment period, as perhaps many of your 17 initial questions will be answered by the end of their 18 presentation. 19 Those wishing to speak should sign in on the 20 sheet provided at the rear of room, and will be called 21 on in the in order of the names listed thereon. 22 Each ratepayer should identify themselves and any 23 organization represented by such ratepayer. 24 Before we begin, there are several housekeeping 25 rules. If you wish to present testimony or are PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 7 1 expecting to have questions or comments, please sign in 2 on the clipboard at the rear of room. 3 Speakers will be recognized in the order in which 4 they sign up. Each ratepayer may have a maximum of 10 5 minutes to speak regarding the proposed rate change. 6 As the presiding officer, I can limit or expand 7 the time, should I deem it necessary. 8 If you've not already done so, please silence 9 your cell phones. Exits in this room are located at the 10 rear at three locations. Restrooms are located at the 11 library entry from the parking lot. 12 Are there any questions regarding the procedure 13 for this evening? Brian? I'm sorry. 14 MS. REUMMLER: Are you going to differentiate 15 between when you want us to speak to sign up, or if we 16 signed up for questions? Because I have a question, 17 or -- 18 MR. BROCKMANN: You can sign up for either one. 19 If it's -- and the questions should be relevant to the 20 proposed rate change. 21 If you have a problem with your bill or things 22 like that, those are questions that -- we have MSD staff 23 here that can address those for you after the meeting 24 and be able to get back to you. 25 The comments and questions that we are looking PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 8 1 for this evening are specific to the proposed rate 2 change. Is the District ready to proceed? 3 MR. HOELSCHER: Yes, Mr. Chairman. Good evening. 4 Thank you for everybody for being here. My name is 5 Brian Hoelscher. I'm the CEO and Executive Director of 6 the Metropolitan St. Louis Sewer District. 7 We're here to present an overview of the 8 Wastewater Rate Proposal to provide wastewater funding 9 for MSD for fiscal years 2021 through 2024. 10 First, just some general information about MSD. 11 First of all, we are a government utility with municipal 12 boundaries. We were created under a provision of the 13 state constitution, based on the vote of the people in 14 the state. 15 We have a voter-approved charter. That charter 16 was approved by those residents who currently reside in 17 our service area. We have a three-member Board of 18 Trustees. Three of those members are appointed by the 19 Mayor of the City of St. Louis, three are appointed by 20 the County Executive. 21 Our service area is the City of St. Louis and 22 about 85 percent of St. Louis County, out to the middle 23 of Wildwood. 24 We bring in new areas within the county -- we 25 bring them in if they request annexation. There's areas PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 9 1 west of 109 that we do not serve. They have their 2 separate wastewater facilities. 3 Something to remember, and Chairman Brockmann 4 touched on this a little bit: We are two utilities; a 5 wastewater utility and a stormwater utility. Each of 6 those utilities have separate, non-mixable revenue 7 sources. 8 So the first thing I want to touch on is, we are 9 not going to be talking about stormwater. Last month, 10 we presented to the residents a proposal for the 11 District to provide District-wide stormwater service for 12 flooding and erosion. 13 The public decided they didn't want that service, 14 therefore MSD is not going to be providing it. So we're 15 done with the stormwater issue for now. There's no 16 place to go with that. 17 What we are going to talk about is the 18 wastewater, and the cost of the utility having to do 19 with wastewater, which is what goes down your sink, what 20 goes down your washing machines, those types of things; 21 Things that need to be treated by the plant before they 22 return to the environment. 23 Again, we have a 520-square mile service area. 24 It's all in the City of St. Louis and about 85 percent 25 of St. Louis County. There's about 1.3 million PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 10 1 customers, and we serve 88 different municipalities that 2 are located within our service area. 3 We have seven treatment plants. We treat 4 350 million gallons per day of wastewater. As far as 5 sewers, we have more than 4,700 miles of sanitary 6 sewers, More than 1,800 miles of combined sewers; where 7 stormwater and wastewater are both conveyed within the 8 same pipe, and 3,000 miles of storm sewers. 9 Based on the miles of pipe, the St. Louis area is 10 lucky enough to be the fourth largest 11 stormwater-wastewater utility in the country. 12 So wastewater rates. The primary part of our 13 rate, and the biggest thing you're paying for is a 14 capital program to address issues based on a consent 15 decree. That's a legal agreement with the Department of 16 Justice to bring our system up to meet clean water 17 standards. 18 In 2008, we were sued by the EPA and by the 19 Department of Justice. This is a tactic that they have 20 taken with every municipality located throughout the 21 United States, over 200 of those. 22 The goal was to make sure that each city who had 23 issues with regard to Clean Water Act issues, that they 24 had a court-enforceable document that gave a very 25 specific schedule as to when issues had to be addressed PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 11 1 in order to meet the Clean Water Act. 2 That's the primary purpose of the funding. Over 3 50 percent of the funds go to that capital program. 4 The other half are pretty equally divided between 5 operating expenses and paying debt service on bonds that 6 have been used in order fund these programs in the past. 7 You'll find the project is to fund a four-year, 8 $1.6 billion worth of new construction that will start 9 in the next four years. 10 It consists of over 300 projects in order to meet 11 regulatory requirements within our system. 12 Most of those are the consent decree, but there 13 are also other Clean Water Act and Clean Air Act 14 requirements that we have to meet by permit and meet 15 certain schedules. Over 99 percent of the projects we 16 are proposing are to meet those regulations. 17 What we are -- what MSD staff is proposing to the 18 Rate Commission, is requesting the folks in this room to 19 decide whether or not we should borrow additional 20 funds -- money, bonds in order to get the work done; or 21 whether you would like to pay for it as we go. In other 22 words, just pay cash. 23 We'll explain that later, but that's the one 24 piece that everybody gets to -- that folks will be asked 25 to vote on, at some point, as to what's the appropriate PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 12 1 way to fund these needed improvements. 2 Just an idea of where we're at in the program. 3 We'll eliminate 50 additional wastewater sewer 4 overflows. The wastewater system has pipes stuck into 5 them, so when enough water gets into them, they just 6 discharge a mix of rain water and raw sewage into creeks 7 and streams. 8 At some point, we had over 800 of those. Many of 9 those are legacy issues from when MSD was created in 10 1954 to solve this problem. 11 Once we get those 50 done, we'll be down to about 12 33. We have to be down to 33, according to the consent 13 decree agreement we have with the EPA and the Department 14 of Justice. 15 We'll build 16 miles of new wastewater sewers. 16 We'll inspect 54,000 of the sanitary manholes. 17 Oftentimes, those are the sources for stormwater 18 to leak into the wastewater system. It uses up capacity 19 and causes overflows. It causes basement back ups. 20 We'll inspect those sewers to make sure they're tight 21 and they're not allowing water to get in. 22 I mentioned we have some requirements that aren't 23 necessarily the consent decree, but relate to other 24 issues with regard to environmental requirements. 25 One of those is the Clean Air Act. We do have to PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 13 1 replace the incinerators at our Lemay and Bissell 2 treatment plants. We have to upgrade the technology. 3 They are currently meeting permit requirements, 4 but because of their age, by federal statute, we're 5 going to have to go in and replace those with upgraded 6 technologies. 7 That will result in the discharge from those 8 incinerators still meeting permit, but will actually 9 decrease the permit limits by about 10 times as to what 10 can be discharged out of the incinerators. 11 And finally, one of the bigger projects is 12 building a tunnel from our Fenton treatment plant, which 13 will be located at Fenton on the Meramec River. 14 Then we'll run that so that all the flows that 15 are currently going to the Fenton treatment plant will 16 get piped all the way down to the Meramec plant that's 17 located in Telegraph, near the Mississippi River. 18 There's a couple reasons for doing that. One, it 19 ends up being very, very cost-effective for us not to 20 have the Fenton treatment plant in place. It was an 21 interim facility until we finally got a regional plant 22 up and running in the Meramec watershed. 23 The other part is some of the sewer systems that 24 are feeding into the Fenton treatment plant, the plant 25 itself and some of the pipe and some of the I&I, which PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 14 1 is stormwater getting into the system, is causing 2 dangerous backups and overflows. This tunnel will allow 3 us to eliminate all of those regulatory issues. 4 Key issues for consideration. So MSD staff has 5 presented a presentation to our Rate Commission, and our 6 Rate Commission will present their recommendation to our 7 Board of Trustees. 8 There's five factors that staff considered in 9 putting this proposal together. The same five factors 10 are the ones that the Rate Commission will use to review 11 our proposal, and those same five factors will be the 12 conditions under which our Board of Trustees will review 13 any recommendations from the Rate Commission. 14 One, anything we put forward needs to be 15 consistent with constitutional, statutory, or common law 16 as amended from time to time. This is right out of our 17 charter. 18 It needs to enhance the District's ability to 19 provide adequate sewer and drainage systems and 20 facilities or related services. 21 It has to be consistent with and not in violation 22 of any covenants or provision related to any outstanding 23 bonds or indebtedness of the District. 24 It cannot impair the ability of the District to 25 comply with applicable federal or state laws or PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 15 1 regulations as amended from time to time. That's 2 obviously one that's really driving the capital program 3 that I just explained. 4 And finally -- and this is the biggest 5 responsibility of our Rate Commission -- making sure 6 that it imposes a fair and reasonable burden on all 7 classes of ratepayers. 8 So it's not just the individuals, but everybody 9 pays and gets a different level of service. They're 10 taxed with making sure that that's fair. 11 One of the things that I mentioned earlier, that 12 one of the key considerations is bonding versus just 13 paying for this for cash for the next four years. 14 It's kind of like buying a house. You buy a 15 house with cash; you pay a lot now. You save money by 16 not having to pay interest on your loans. 17 Or you can borrow money, pay for it over time. 18 It costs you less now, but in the end, you pay more 19 money. 20 So our rate proposal, and I'll go over both of 21 those in a minute, have both provisions in them for our 22 Rate Commission to take a look at. The decision as to 23 which one we use will ultimately be a decision of the 24 voters. 25 Affordability. How do the affordability issues PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 16 1 look? Is this affordable? Does our program for 2 low-income individuals, does that properly account for 3 those who may have trouble paying the rates? 4 Equitability; is everybody paying their fair 5 share? And there's some underlying rate assumptions in 6 our rate proposal. 7 We assume a certain amount of customer growth. 8 We assume what will happen with water usage. We are 9 making some assumptions on what inflation, under various 10 components of the budget, will look like for the next 11 four years. 12 Consent decree compliance is really a driver. So 13 far to date, since 2012, we have met every deadline as 14 required by the federal government and the Department of 15 Justice. We want to keep doing that. 16 And finally, taking a look at our customer 17 assistance program, which is the low-income program for 18 those in the District who would have trouble paying 19 these proposed rates. 20 This is the guts of the presentation on the money 21 side. You have a chart in your one-page handout that 22 somewhat simulates this. I'm going to go over this in a 23 little bit of detail. 24 So we're on the wastewater side of the proposal. 25 MSD bills wastewater volume based on your potable water PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 17 1 usage. We use it to try and match up what actually goes 2 down the drain. 3 For those of you -- and probably for most people 4 in this room -- you have metered water usage. If you 5 do, what MSD does is we get from the water provider your 6 water usage during the winter months, either November 7 through January, or December through February; just 8 depending on when we do the billing cycle. 9 We'll look at your water usage during the winter 10 months. That pretty much guarantees we won't include 11 water usage for washing cars or filling swimming pools, 12 or watering the grass. That doesn't go down the sewer, 13 and we don't want to count that. 14 So we use those. We'll calculate those. And 15 then when a new rate goes into effect in the summer, we 16 will use that utilization on the monthly basis for the 17 entire year. So your bill should look the same 18 throughout every month for the entire year. 19 There are some individuals who don't have metered 20 water service. Most of those folks are in the City of 21 St. Louis. 22 If they don't, their water is billed from the St. 23 Louis City water company, based on the attributes in 24 their homes. 25 It represents water usage, number of water PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 18 1 closets -- number of bathrooms -- number of kitchens, 2 those types of things. 3 There are flows associated with each one of those 4 attributes. That's the way people in the city are 5 billed for water usage. 6 MSD, on the residential side, will take that same 7 data, and we will assume that therefore, is the water 8 usage in the homes in the city. And that will generate 9 the monthly usage that we will bill for. 10 Matter of fact, we had this discussion earlier. 11 I'm going to go over what these rates are. I'm going to 12 show you a typical monthly rate. 13 That means it may not be yours. This is typical 14 throughout the District. Your monthly rate may be less; 15 your monthly rate may be more. 16 When I give you the dollar values, that would 17 mean just a typical customer. But besides the dollar 18 values, I'm also going to be giving you your percent 19 increase. 20 So one of the typical ones here is on the first 21 year, and I'll explain that. We're looking for about a 22 2 percent increase in the first year. 23 So if your bill is 50 dollars per month and your 24 increase is 2 percent, that means we're looking for your 25 bill to increase by about one dollar per month. PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 19 1 So pay attention to those percentages. These 2 numbers are based on typical customers and may not be 3 what you're looking for. 4 So we'll start with the light blue bars on here, 5 or you can take a look on your presentation sheet. 6 What MSD is proposing in the first year these 7 increases would go into effect is in the summer of 2020. 8 So we're about 14, 15 months away from that. 9 The first year of fiscal 2021, we're looking for 10 1.9 percent increase in your monthly wastewater bill for 11 the typical customer. That would bring the typical 12 customer's bill to $56.63. 13 And this is assuming the residents, the voters, 14 decide that we need to use bonding to help defer some of 15 the costs. 16 If you look under fiscal year 2022 on the light 17 bar, on that second year, we're looking for a 3.8 18 percent, or just under 4 percent increase, which would 19 change the monthly bill of the typical customer from 20 $56.63 to $58.78. 21 Fiscal year 2023, another 3.8 percent increase. 22 A typical customer would see an increase of -- I 23 apologize, that's my children. So where am I at here? 24 So fiscal year 2023. So it's a 3.8 percent 25 increase that will increase the typical customer from PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 20 1 fiscal year 2022 to $58.78 to $61.02. 2 And then the final year, another 3.8 percent 3 increase is what we're proposing, which would result, by 4 fiscal 2024, an average monthly rate for a typical 5 customer of $63.36. 6 That's assuming the voters approve bonds -- 7 approve bonding. And again, just like buying a home, 8 that makes your short-term costs less. 9 We've also included for you -- because this is 10 something we're going to ask the voters to decide -- 11 what the raises, or what the increased rates would look 12 like if the voters decide not to give us additional 13 bonding authorization and would like to pay for this 14 program in cash. 15 So if you look under fiscal year 2021, that's the 16 dark blue bar, you'll see we've got a 1.9 percent 17 increase again; starting point is at $56.63. 18 We always do our rate proposals, bonding or 19 nonbonding, to make sure the first year's rate is 20 identical, to make sure we have sufficient time to allow 21 the voters a chance to vote on whether or not they want 22 us to use any bonding to pay for the program. 23 Fiscal year 2022. If the voters decide not to 24 give MSD additional bonding authority, their rates will 25 increase. The average monthly rate will increase by PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 21 1 15.1 percent for the typical customer, from $56.63 to 2 $65.17. 3 Likewise, in fiscal 23, there would be a 4 17.1 percent increase. That would increase, if we do 5 not have bonding, the typical customer's monthly charge 6 from $65.17 to $76.30. 7 Finally, in fiscal year 2024, another 8 13.1 percent increase, resulting in an average monthly 9 bill for a typical customer of $86.29. 10 So on the cost, the direct impact to the rate 11 payers, that's the impact of one of these two scenarios 12 that we have recommended to our Rate Commission. 13 I want to talk about the cost savings, and some 14 benefits of some things we've done in the last four 15 years. 16 So the last four years, fiscal 17 through -- 2017 17 through 2020, which ends in about 14 months. MSD, while 18 we gave the rate proposal to the Rate Commission, we are 19 constantly looking for ways to try and save money. 20 If you look at our rate proposal, you'll find 21 we're constantly comparing ourselves to other wastewater 22 utilities. 23 We always rank very high in cost effectiveness 24 and delivery of service to individual items, which is 25 really driving the program, like it is almost every PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 22 1 other city throughout the United States, is the cost of 2 the capital work needed in order to be in compliance 3 with the consent decree and EPA relations. 4 So there's four things. I'm going to start kind 5 of from the bottom of this chart. First of all, the 6 financing. 7 The MSD secretary/treasurer and the finance 8 people did a very good job of making sure we found time 9 to sell bonds when we got really good interest rates. 10 We have refinancing options that we are looking 11 at. And in the end, what we ended up doing was, over 12 these past four years, saving about $27 million in 13 financing costs. 14 So where does that money go? It doesn't go to 15 bonuses, because we don't get bonuses. It doesn't go to 16 the dividends to our stockholders, because we don't have 17 stockholders. 18 We're a government entity. What it does, it goes 19 back into our general fund, and it's used during this 20 rate proposal to decrease rates, and using those 21 additional funds that we save. We don't waste them; 22 they come back to the ratepayer. 23 If you go up; the cost of the capital program. 24 The capital program from last year's program came in 7 25 percent below the proposal of $110 million. PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 23 1 Those monies go back in the general fund, and 2 they're used to lower rates during this next four-year 3 cycle. 4 Operation and maintenance expense. Primarily, 5 through the use of technology, using technology as much 6 as we can to reduce the costs to either inspect or TV 7 our sewers, or run our treatment plants, or run our pump 8 stations. 9 That's all at a savings of about $43 million over 10 the last four years. Those monies were also available 11 to decrease costs. 12 And then finally, the impact of the consent 13 decree. MSD originally signed a 23-year consent decree 14 for all this work. 15 Priced right now, overall, about $6 billion is to 16 be done by 2034. We got a five-year extension to that 17 consent decree, to 2039, which really helps with costs. 18 That's probably one of the biggest riders that 19 allows to us really keep these numbers pretty low. 20 In the previous four years, you've all 21 experienced double-digit increases per month; somewhere 22 in the neighborhood of 10 percent per year, just to keep 23 up with the program. 24 These cost-saving measures have allowed us to 25 really flatten that. We were predicting we may be at PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 24 1 about the 10 percent per year mark for these next four 2 years. 3 Those cost savings have been rolled into our 4 proposal, allowing us to offer something that's much 5 less than 10 percent per year for the average increase 6 for the typical wastewater customer. 7 What is our timeline? We submitted our rate 8 proposal to the Rate Commission on March 4. As Chairman 9 Brockmann had mentioned, there's testimony, it's like a 10 trial. 11 Everything's on the website. If you want to see 12 testimony, cross-examination, meeting minutes, 13 documents, exhibits, all those things, results of 14 discovery requests; those are all available on the 15 website. 16 That started March 4th, and these public meetings 17 are all a part of that overall process. 18 The Rate Commission has to get a recommendation, 19 what they think of staff's proposal, back to our Board 20 of Trustees by August 19, 2019. 21 Whether they agree with our proposal, think some 22 things should be changed; that proposal will go to our 23 Board of Trustees. 24 Our Board of Trustees will take a look at those 25 recommendations, and they'll kind of do what the Rate PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 25 1 Commission -- exactly what the Rate Commission is doing 2 to staff. 3 They'll take a look, measure against those five 4 factors I mentioned, and decide what they think of the 5 rate proposal that the Rate Commission is proposing to 6 the Board of Trustees. 7 However we do this, a rate increase then has to 8 go in effect July 1, 2020. The only thing we don't know 9 is under which scenario would that rate increase go in 10 place. 11 Is it under additional bonding, or is it just pay 12 for everything with cash? Because we always set the 13 first year that a rate proposal is in place under either 14 scenario, the increases being the same. 15 MSD has the option of, somewhere between spring 16 2020 and spring 2021, bringing this to the voters to 17 allow you to decide what's the best rate to propose. 18 If you've read the papers, there's a lot going on 19 in the area. We just want to make sure whatever we 20 decide, we'd go to you with a vote on this, we want to 21 make sure we have the ability to give you all the 22 information you need to be able make whatever decision 23 feels appropriate. 24 This is on our website. This is the list of Rate 25 Commission public hearings that the Rate Commission's PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 26 1 decided on. 2 You notice we're here, Tuesday, May 14, 6:00 p.m. 3 This is the first of six public meetings that the Rate 4 Commission is going to have. There's a list of the 5 other meetings that are listed on this slide. 6 Before I turn back over to Chairman Brockmann, I 7 think I do want MSD individuals -- employees, raise your 8 hands, if you would. 9 We had mentioned earlier that this is about the 10 Wastewater Rate Proposal. Some of you may have 11 questions or issues or problems regarding stormwater 12 that you want to let us know about. 13 Somebody may have questions about how we bill, or 14 what the bill is. You may have questions kind of about 15 normal service questions. The staff's here to answer 16 those questions after these proposals are done. 17 In some cases, we do have some directors of 18 departments here that might be able to answer the 19 question. 20 More than likely, they'll have to take your 21 question, get your contact information, and make sure 22 they get back to you with anything else that may come up 23 outside this Wastewater Rate Proposal. 24 Chairman Brockmann, that is the end of the 25 presentation. PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 27 1 MR. BROCKMANN: Thank you, Brian. At this time, 2 are there any questions from the Rate Commission? 3 Members of MSD? 4 Any public comments specifically to what Brian 5 has presented this evening? Questions you would like to 6 have other information about? Yes, sir. Can you give 7 us your name, please. 8 MR. WAMHOFF: William Wamhoff. I'm on there 9 already. 10 MR. BROCKMANN: Okay. 11 MR. WAMHOFF: So this may be a little redundant. 12 Who comprises the Rate Commission? 13 MR. BROCKMANN: The five of us, and there's 10 14 other members besides the five of us here. They're all 15 listed on the website. 16 MR. WAMHOFF: And you are appointed, or are you 17 employees of the MSD? 18 MR. BROCKMANN: We are not employees of MSD. We 19 are appointed by the MSD Board of Trustees. 20 MR. WAMHOFF: Uh-huh. So you're not really an 21 independent agency. 22 MR. ZIEGLER: Actually, I would say we are. We 23 all represent a different facet of the community. 24 I represent public entities, school districts in 25 particular. I run the cooperative of all the school PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 28 1 districts here in the St. Louis area, even St. Charles 2 and outside. 3 So obviously, we have an interest that, from the 4 school district's standpoint, if they're going raise 5 rates, that cuts into a set pool of money for our school 6 districts. 7 So obviously, we want to make sure that's fair to 8 everybody concerned, and everybody here has a little 9 different entity or group of entities that they 10 represent. 11 MR. WAMHOFF: Okay. So would you say that you 12 all are neutral when it comes to decisions on MSD rates? 13 MR. ZIEGLER: Absolutely. 14 MR. BROCKMANN: No. 15 MR. PALANS: We are not compensated -- 16 MR. WAMHOFF: He says yes and you say no. 17 MR. PALANS: We are not compensated for our 18 service. We spend -- every person here and every 19 commissioner who is not present invests quite a bit of 20 time in vetting the proposal that has been made before 21 you, the rate proposal. 22 As Mr. Hoelscher indicated, the rate proposal is 23 vetted through a series of discussions, more like 24 testimony, where the District provides a declaration of 25 their direct testimony, and each of our commissioners PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 29 1 are entitled to cross-examine each witness that the 2 District has with respect to that testimony. And so it 3 is a very thorough process. 4 In addition to the oral testimony under 5 cross-examination, there's a series of written questions 6 that are propounded and answers that are prepared in 7 response to those questions. 8 So if anybody would say that we are in any way 9 interested and not independent, that would be absolutely 10 incorrect. 11 MR. WAMHOFF: Just asking a question. 12 MR. PALANS: Okay. 13 MR. WAMHOFF: Okay. Because you know, public 14 service commission has no control over you, like Spire 15 and American Water. 16 And that really makes me feel kind of hinky, you 17 know. Because you're appointed by the Board of Trustees 18 of MSD. And I think other taxpayers in here, you know, 19 that have a brain would think the same way. 20 MR. ZIEGLER: I think -- I mean, is there a way 21 to get un-appointed? It has taken a lot more time than 22 I ever thought it would. 23 MR. WAMHOFF: What I'm saying is, you know, we've 24 been shafted so many times before. And just -- bills 25 just keep going up, and up, and up. PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 30 1 MR. BROCKMANN: And I'd like to point out that 2 was the reason why this Rate Commission was created by 3 the voters back in the year 2000; was to help give 4 another look into the rate proposals that MSD is 5 proposing. 6 And as Tom just mentioned, this is a copy of the 7 rate proposal. It is available -- it's not a thin book 8 by any means. 9 There's a lot of data in here, and this is just a 10 small piece. I don't exaggerate at all when I say the 11 stack of paper could easily be 3 feet high of all the 12 documents that have been circulated thus far, that we 13 have been expected to absorb and read and take into 14 consideration from all aspects of this rate proposal. 15 And there's good discussion that goes on. We 16 have an independent rate consultant, and we also have an 17 independent legal counsel, which gives advice to the 18 Rate Commission on the issues that we should look at. 19 And each one of the Rate Commission members is 20 allowed to question each one of the people that 21 testifies. And any of you are more than welcome to 22 attend any of these meetings where all of this occurs. 23 And they're posted on the website as well. 24 MR. WAMHOFF: I just got one other question. The 25 CEO mentioned that if this gets approved -- whether this PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 31 1 goes to bonding or not, we'll just leave that up in the 2 air right now. 3 If there's any excess money left over, you said 4 it would go back into a general fund; yes or no? Isn't 5 that what you stated? 6 MR. HOELSCHER: Sure. So I think -- and I'm 7 going to give you the long answer to make sure I'm 8 complete. 9 MR. WAMHOFF: Okay. 10 MR. HOELSCHER: What I'd showed was from 2017 to 11 what we anticipate being through the end of summer 2020. 12 We plan on having savings and not spending all the money 13 we collect. 14 We don't spend that money otherwise. Like I 15 said, there isn't anything else to spend it on. That 16 money collects in the balance of the accounts. It goes 17 into the general fund. 18 And when we do a rate proposal to this Rate 19 Commission, that money is an additional general fund 20 balance that is used to initially decrease rates even 21 further. The money goes back, in essence, goes back to 22 the ratepayers. 23 MR. WAMHOFF: Okay. So -- 24 MR. HOELSCHER: We don't spend it on anything 25 else. As a matter of fact, what else is important, I PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 32 1 would point you: The Rate Commission is so cognizant of 2 that, we got direction two rate proposals ago -- we were 3 getting some really good bids. We were actually 4 accelerating projects because we thought we were getting 5 good prices. 6 The Rate Commission directed us, no. We want you 7 to save that money, leave it in the pot, and we want it 8 to go to back to the voters, or to the ratepayers, for 9 decreased rates on the next four-year cycle. 10 So whatever money we saved the previous four 11 years, you're seeing that reducing rates. Whatever we 12 save and don't spend from what we're collecting over the 13 four years, the same thing will happen. 14 It's 2019. So in 2023, when we come back for the 15 next four years, that extra money will be used to 16 depress rates. 17 MR. WAMHOFF: When you prepared these figures 18 here, and prepared the costs, is this 100 percent, or 19 was there any money in your general fund, as you say, 20 that went towards the -- in consideration or not? 21 MR. HOELSCHER: So, the money in the general fund 22 was left over and went to providing cash towards the 23 program. 24 Therefore, the source of direct cash for the next 25 four years came from our general fund and not from PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 33 1 rates. 2 Therefore, we didn't have to ask for that 3 additional rate from ratepayers to pay for that part of 4 the program. 5 MR. WAMHOFF: Okay. 6 MR. HOELSCHER: Did I answer the question, I 7 believe? 8 MR. WAMHOFF: Any general amount? 9 MR. HOELSCHER: So I think the numbers I had 10 given, based on savings, I would say operational savings 11 I gave an amount of 43 million, 110 million, and 27 12 million. 13 So $170 million, not counting the work we got to 14 delay because of the change in the consent decree. 15 So operational issues and savings, we saw was 16 about 170 million. So when we came to the cash 17 requirement for this next four-year cycle, that 18 170 million wasn't spent by us. It came out of the 19 general fund and was used as the first infusion of cash 20 to pay for the PAYGO portion of what we're asking for. 21 So instead you having to pay for it through a 22 rate, it came right out of the general fund and 23 depressed rates by that amount of money. 24 MR. WAMHOFF: And Just one last question, sir. 25 When was the last time that MSD was audited, or has ever PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 34 1 been audited? And I noticed one of the board members up 2 there is smiling. 3 MR. HOELSCHER: So we are audited to ad nauseam. 4 We're audited on an annual basis, both our finances, we 5 also have an internal auditor who audits processes. 6 We just went through the process. They audited 7 eight, nine, or 10 of our processes. 8 Some of the most important things they audit: A 9 lot of this work gets done by outside contractors and 10 outside vendors, outside engineers. 11 They check overhead rates, they check billings, 12 They're making sure that everything is appropriate. 13 So we are audited multiple times every calendar 14 year; not just on the financial side, but also on the 15 process side. 16 MR. WAMHOFF: Okay. And by -- and by who? You 17 said one was your own auditor. Is the DOJ auditing you 18 or -- 19 MR. HOELSCHER: No. There are federal 20 regulators. The ones who do the audit, one on our Board 21 of Trustees -- the Board of Trustees have two other 22 employees besides myself. One's our secretary/treasurer 23 who handles our money; here's not here. 24 The other is an auditor. They've chosen to use 25 an outside auditors so that they -- that's the job of PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 35 1 the board, is to provide oversight over us. 2 They're hiring an auditor to audit the actions of 3 the staff, to make sure that those are appropriate. 4 That do an internal audit -- kind of what you 5 would think of a normal audit. It's just auditing the 6 finances, making sure everything is going right; we're 7 good on the financial side. 8 They also hire another auditor to audit 9 processes; making sure we're doing things as 10 cost-effectively as we can from a process perspective. 11 MR. WAMHOFF: And who hires this private auditor? 12 MR. HOELSCHER: It would be our Board of 13 Trustees. The folks who are providing oversight on the 14 staff. 15 MR. WAMHOFF: Okay. Which is -- 16 MR. HOELSCHER: No. The Board of Trustees are 17 the folks who appointed these folks. That's that 18 six-person body who is responsible for oversight of the 19 District and oversight of my -- basically my 20 performance. 21 MR. WAMHOFF: Okay. Thank you. 22 MR. HOELSCHER: Thank you. 23 MR. BROCKMANN: Other questions? 24 MS. ST. JOHN: I'm on the list. 25 MR. BROCKMANN: Okay. Go ahead. Your name, PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 36 1 please. 2 MS. ST. JOHN: Sharon St. John. 3 MR. BROCKMANN: Thank you. 4 MS. ST. JOHN: I had more than one question, but 5 most of it you did answer. On your little chart, it 6 said -- the first -- in 2020, it says 10.6 percent 7 change. 8 Does that mean that that's what you estimate, the 9 bills are going to go up 10.6 percent between now and 10 July of 2020? 11 MR. HOELSCHER: So that is true. So the current 12 rate proposal that has been reviewed by the Rate 13 Commission, reviewed by our Board of Trustees, goes 14 through billings through the summer of 2020. 15 So this summer, for most of you, August 2019, 16 those rate increases were 10 percent a year. You'll see 17 another 10 percent increase this summer. 18 That will occur while this rate proposal process 19 is going on. We've assumed that 10 percent increase 20 goes in place, that's what generates these monthly 21 bills, these average monthly bills. 22 That's the starting point. So what the Rate 23 Commission is looking at on your chart, what looks 24 like -- it shows FY2021, or FY21 through FY24. It's for 25 those four years. PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 37 1 And those would be billing increases that you 2 will see in the summer of 2020, with the last one being 3 in the summer of 2023. 4 MS. ST. JOHN: Thank you. 5 MR. BROCKMANN: Any other questions? Your name, 6 please? 7 MS. REUMMLER: Marilyn Ruemmler. I'm looking at 8 this again. I'm not quite sure I'm clear. Where's the 9 2 percent? Because you went 2 percent, 1.9 -- I 10 followed it all the way down except when you talk about 11 2 percent -- 12 MR. HOELSCHER: My mistake. I was rounding. I 13 do that sometimes in my job. So when I said I'm going 14 to start with fiscal year 2021, I think I used 2 percent 15 instead of 1.9 percent. I was rounding it up. 16 So the first year is 1.9 percent, FY21. You're 17 looking on this sheet. Then FY 2022 is 3.8 percent. 18 And then 3.8 percent for the two years after that. 19 MS. REUMMLER: I don't want to argue, but you 20 went 2 percent and 1.9. I just didn't -- 21 MR. HOELSCHER: When I was talking about it, I 22 think I made a mistake. I meant to say about 2 percent. 23 Going to 2 percent, the increases are 1.9, 3.8, 3.8, 24 3.8, for those four years. 25 MS. REUMMLER: I'm getting the idea here that PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 38 1 this rate increase is coming in. The only thing that we 2 get to vote on is whether or not we do a bond issue; is 3 that correct? 4 MR. HOELSCHER: Yes. 5 MS. REUMMLER: We don't have anything to say 6 about the actual rate increase. 7 MR. HOELSCHER: The work -- 8 MS. REUMMLER: It's just whether we finance it -- 9 MR. HOELSCHER: Right. Over 99 percent of what 10 we're doing is work that's required by the federal 11 government, either through regulation or through a 12 lawsuit. 13 We, right now, don't do anything else. All we 14 do -- our mission is to simply meet the requirements, 15 what we were put in place to do. 16 In 1954, the area was not able to provide clean 17 water and not able to provide compliance with federal -- 18 with environmental regulations. 19 MSD was voted in place by the residents of the 20 area in order to do that. And our mission, and the sole 21 place that we spend dollars on the wastewater side, is 22 to meet those regulatory requirements. 23 MS. REUMMLER: Okay. One other thing. If you 24 close the plant and you spend millions and millions of 25 dollars to take all the wastewater or the sewage from PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 39 1 that plant to a second plant, are you going to have to 2 build -- make that plant twice as big? 3 Do you have to build another plant? Are these 4 plants right now under capacity by 50 percent or what? 5 Can you explain that a little more? 6 MR. HOELSCHER: There's five major watersheds. 7 We don't have a map, I don't think, on this 8 presentation, but there's five major watersheds within 9 the District. 10 Four of them -- we have a regional plant. That's 11 the big watershed; everything goes to one plant. It's 12 very cost-effective way to operate. 13 When MSD expanded its boundaries west of 270 in 14 1977, we took over some of the temporary plants that 15 were located along the Meramec River. 16 Now we're in the process of consolidating those. 17 We have a brand new, ultimately full-sized plant in 18 Telegraph and 270. 19 There's something that was called the Bumgardner 20 Lagoon. We've taken it offline. The next plant up the 21 line is the Fenton treatment plant. 22 Ultimately, we're taking it off, not just to meet 23 regulations with regard to overflows; but ultimately, we 24 would have to upgrade that plant for treatment because 25 it's discharging to the Meramec River instead of the PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 40 1 Mississippi River. So that's one of the reasons we're 2 taking it offline. 3 So with regard to the Fenton plant, we take it 4 offline; we do have to spend money on that. We have to 5 spend money on the tunnel to go from the last lagoon we 6 took offline to the Fenton treatment plant. 7 And there is, it's turning out, potentially a 8 relatively small expansion to Meramec treatment plan in 9 order to accommodate those flows and discharge them to 10 the Mississippi River. 11 MS. REUMMLER: It will be interesting to learn if 12 you are going to have to expand the Meramec plant -- 13 MR. HOELSCHER: Yes. 14 MS. REUMMLER: -- in order to accommodate what's 15 coming from Fenton. 16 MR. HOELSCHER: And all of those increases were 17 built into our 30-year financial plan. We knew those 18 things were going to have to happen. 19 So anything we show here as far as expansion -- 20 they may not be happening in these next four years, but 21 we know they do have to be set up at some point and be 22 accounted for. We'll have to have them in the future. 23 MS. REUMMLER: Bottom line for all this is 24 regardless of what we ask, regardless of the answers, 25 the only thing we get to decide is whether or not we're PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 41 1 going to do bond issues. 2 MR. HOELSCHER: That is the question that will be 3 in front of you. Correct. 4 MS. REUMMLER: Okay. 5 MR. BROCKMANN: Bill, do you have any questions? 6 MR. KUHLMANN: I have a presentation. First of 7 all, I would like to say that I in no way impune the 8 integrity or the ability of the commission. I, first of 9 all, thank you for your service. 10 Second of all, Paul, I think you -- Brian, I 11 think you did a very nice presentation. I think it was 12 very in-depth, and it was good and very informative. 13 Your knowledge about it seems to be full. 14 My comments here are to MSD in general. It is my 15 opinion that MSD has not been a good steward of the 16 money collected from the taxpayers. 17 I believe that the -- I'll use for example the 18 recent tunnel project that was just bid. And we gave it 19 to the second bidder at an increase of $2.4 million, 20 when I know personally that the contractor that was low 21 is very high quality and is a very well-qualified, 22 bonded, tunnelling contractor. At one time I was 23 Vice-President of the other company. 24 MR. BROCKMANN: Okay. 25 MR. KUHLMANN: My feeling is, is that until PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 42 1 MSD -- not our rates and all this, but until MSD starts 2 cleaning up things -- and we wonder now, a lot of us, 3 what is the big cloud of Mr. Stenger and the county 4 going to do with MSD's integrity? 5 You're going to have a hard time passing anything 6 as long as this dark cloud hangs over there. 7 So my feeling is, is that MSD -- the presentation 8 of this information is very good. But I think it's 9 going to be a housecleaning or housekeeping of building 10 back the integrity of MSD. That's all I have to say. 11 MR. BROCKMANN: Thank you. 12 MS. CROYLE: Thank you. 13 MR. BROCKMANN: Any other questions or comments? 14 Any of those who haven't spoken? 15 MR. WAMHOFF: He don't want to hear from me 16 anymore. 17 MR. BROCKMANN: I would like to thank all of you 18 for your participation and coming this evening. And 19 again, it was challenging to get here. I really 20 appreciate it. 21 The next public hearing will be conducted on May 22 22, 2019, at 6:00 p.m. at the Manchester Parks 23 Recreation and Arts Center. 24 That meeting will happen to be an online 25 streaming meeting, so you will be able to logon and PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 43 1 you'll see the presentation again that Brian gave, as 2 well as the questions that will be asked by the 3 participants at that hearing. Thank you so much, and 4 have safe travel home. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES Page 44 1 CERTIFICATE OF REPORTER 2 STATE OF MISSOURI ) 3 ) ss. CITY OF ST. LOUIS ) 4 5 6 7 I, Georgia Beth Long, a Certified Shorthand Reporter, 8 Certified Court Reporter, do hereby certify that the 9 meeting aforementioned was held on the time and in the 10 place previously described. 11 12 IN WITNESS WHEREOF, I have hereunto set my hand and 13 seal. 14 15 16 17 18 19 ____________________________ 20 21 22 23 24 25 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES A ability 14:18,24 25:21 41:8 able 7:24 25:22 26:18 38:16,17 42:25 absolutely 28:13 29:9 absorb 30:13 accelerating 32:4 accommodate 40:9,14 account 16:2 accounted 40:22 accounts 31:16 Act 10:23 11:1,13 11:13 12:25 actions 35:2 actual 38:6 ad 34:3 addition 29:4 additional 4:16 11:19 12:3 20:12,24 22:21 25:11 31:19 33:3 address 7:23 10:14 addressed 10:25 adequate 14:19 adopted 5:2 advice 30:17 affordability 15:25,25 affordable 16:1 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bonuses 22:15 22:15 book 30:7 borrow 11:19 15:17 bottom 22:5 40:23 boundaries 8:12 39:13 brain 29:19 Branch 1:23 brand 39:17 Bresnan 2:5 3:11 Brian 2:9 7:13 8:5 27:1,4 41:10 43:1 brief 5:22 bring 8:24,25 10:16 19:11 bringing 25:16 Brockmann 2:4 3:1,6 7:18 9:3 24:9 26:6,24 27:1,10,13,18 28:14 30:1 35:23,25 36:3 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 37:5 41:5,24 42:11,13,17 budget 16:10 build 12:15 39:2 39:3 building 13:12 42:9 built 40:17 Bumgardner 39:19 burden 15:6 buy 15:14 buying 15:14 20:7 C C 2:1 calculate 17:14 calendar 34:13 called 6:20 39:19 capacity 12:18 39:4 capital 10:14 11:3 15:2 22:2 22:23,24 cars 17:11 cases 26:17 cash 11:22 15:13 15:15 20:14 25:12 32:22 32:24 33:16 33:19 causes 12:19,19 causing 14:1 CCR 2:22,23 cell 7:9 Center 42:23 CEO 2:9 8:5 30:25 certain 11:15 16:7 CERTIFICATE 44:1 Certified 44:7,8 certify 44:8 Chairman 2:4 8:3 9:3 24:8 26:6,24 challenging 42:19 chance 20:21 change 4:8,12 4:22 5:4 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direction 32:2 Director 2:9 8:5 directors 26:17 discharge 12:6 13:7 40:9 discharged 13:10 discharging 39:25 discovery 5:12 24:14 discussion 18:10 30:15 discussions 28:23 Dispatch 6:5 District 2:8 3:7 3:13,16,18 4:1 4:9,13 6:9,13 6:14 8:2,6 9:11 14:23,24 16:18 18:14 28:24 29:2 35:19 39:9 district's 3:21 4:9 14:18 28:4 District-wide 9:11 districts 27:24 28:1,6 divided 11:4 dividends 22:16 document 10:24 documents 5:15 5:21 24:13 30:12 doing 13:18 16:15 22:11 25:1 35:9 38:10 DOJ 34:17 dollar 18:16,17 18:25 dollars 18:23 38:21,25 Don 2:5 3:11 double-digit 23:21 down 9:19,20 12:11,12 13:16 17:2,12 37:10 drain 17:2 drainage 14:19 driver 16:12 driving 15:2 21:25 E E 2:1,1 earlier 15:11 18:10 26:9 easily 30:11 effect 17:15 19:7 25:8 effectiveness 21:23 eight 34:7 either 7:18 17:6 23:6 25:13 38:11 election 3:14 Eleventh 2:24 eliminate 12:3 14:3 employees 26:7 27:17,18 34:22 ended 22:11 ends 13:19 21:17 Energy 5:7 engaged 4:24 5:12 engineers 34:10 enhance 14:18 ensure 3:20 entire 17:17,18 entities 27:24 28:9 entitled 29:1 entity 22:18 28:9 entry 7:11 environment 9:22 environmental 4:2 12:24 38:18 EPA 10:18 12:13 22:3 equally 11:4 Equitability 16:4 erosion 9:12 essence 31:21 established 3:14 estimate 36:8 evening 3:1,9 6:2 7:13 8:1,3 27:5 42:18 everybody 8:4 11:24 15:8 16:4 28:8,8 Everything's 24:11 exactly 25:1 exaggerate 30:10 example 41:17 excess 31:3 Executive 2:9 8:5,20 exhibits 24:13 Exits 7:9 expand 7:6 40:12 expanded 39:13 expansion 40:8 40:19 expected 30:13 expecting 7:1 expense 23:4 expenses 11:5 experienced 23:21 explain 11:23 18:21 39:5 explained 15:3 extends 4:15 extension 4:20 23:16 extra 32:15 F facet 27:23 facilities 9:2 14:20 facility 13:21 fact 18:10 31:25 factors 14:8,9,11 25:4 fair 3:20 15:6,10 16:4 28:7 far 10:4 16:13 30:12 40:19 February 17:7 federal 13:4 14:25 16:14 34:19 38:10,17 feeding 13:24 feel 29:16 feeling 41:25 42:7 feels 25:23 feet 30:11 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION 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hires 35:11 hiring 35:2 Hoelscher 2:9 8:3,5 28:22 31:6,10,24 32:21 33:6,9 34:3,19 35:12 35:16,22 36:11 37:12,21 38:4 38:7,9 39:6 40:13,16 41:2 hold 6:15 home 20:7 43:4 homes 17:24 18:8 house 15:14,15 housecleaning 42:9 housekeeping 6:24 42:9 I I&I 13:25 idea 12:2 37:25 identical 20:20 identify 6:22 identifying 5:14 Illinois 2:22 impact 21:10,11 23:12 impair 14:24 important 31:25 34:8 imposes 15:6 improvements 12:1 impune 41:7 in-depth 41:12 incinerators 13:1 13:8,10 include 17:10 included 20:9 including 4:1 incorrect 29:10 increase 18:19 18:22,24,25 19:10,18,21,22 19:25,25 20:3 20:17,25,25 21:4,4,8 24:5 25:7,9 36:17 36:19 38:1,6 41:19 increased 20:11 increases 19:7 23:21 25:14 36:16 37:1,23 40:16 indebtedness 14:23 independent 4:25 27:21 29:9 30:16,17 indicated 28:22 individual 21:24 individuals 15:8 PUBLIC HEARING 5/14/2019 www.alaris.us Phone: 1.800.280.3376 Fax: 314.644.1334 ALARIS LITIGATION SERVICES 16:2 17:19 26:7 Industrial 5:7 inflation 16:9 information 6:15 8:10 25:22 26:21 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