HomeMy Public PortalAboutExhibit L&B 20 Letter to MSD Board RC Review of Consent DecreeExhibit L&B 20
THE RATE COMMISSION OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT
July 8, 2011
Mr, Bob Berry
Chair, Board of Trustees
Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, Missouri 63103
Re: Rate Commission Review of Consent Decree
Dear Mr. Berry:
As you are aware, the Rate Commission of the Metropolitan St. Louis Sewer District (the "Rate
Commission") received from the Metropolitan St. Louis Sewer District (the "District") a Rate
Change Notice on May 10, 2011.
The Rate Commission is charged with recommending changes in rates to the Board of Trustees
that will be necessary to pay interest and principal falling due on bonds issued to finance assets
of the District, the costs of operation and maintenance, and such amounts as may be required to
cover emergencies and anticipated delinquencies. Charter Plan, § 7.045. In addition, any change
in a rate recommended by the Rate Commission must be accompanied by a statement that the
proposed Rate Change, and all portions thereof:
(1) is consistent with constitutional, statutoryor common law as amended from time
to time;
(2) enhances the District's ability to provide adequate sewer and drainage systems
and facilities or related services;
(3) is consistent with and not in violation of any covenant or provision relating to any
outstanding bonds or indebtedness of the District;
(4) 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
(5) imposes a fair and reasonable burden on all classes of ratepayers.
Charter Plan, § 7.270.
Mr. Bob Berry
July 8, 2011
Page 2
On June 11, 2007, the United States of America and the State of Missouri filed a civil action
against the District, alleging the District had been in violation of the Clean Water Act by
discharging untreated sewage from its collection system through combined sewer overflows and
constructed sanitary sewer overflows and in violation of conditions established in the National
Pollutant Discharge Elimination System permits issued to the District by the Missouri
Department of Natural Resources. The Coalition for the Environment intervened in this action in
2007. We are advised by District staff that the parties to the action have engaged in extensive
mediation of the matters at issue. According to our discovery requests, the representatives of the
District, the United States, and the Coalition have negotiated the terms and language of a
Consent Decree which would resolve all allegations of the Complaint. The State of Missouri has
decided not to sign the Consent Decree.
The District staff has provided copies of the Petition filed June 11, 2007, the Coalition for the
Environment's Motion to Intervene, a resolution to authorize the District to sign the Consent
Decree and the associated Detail Sheet. We have asked for a copy of the Consent Decree
through discovery directed to the District. The District has refused to provide a copy on the basis
of a confidentiality agreement among the parties.
Without viewing the Consent Decree, the Rate Commission's ability to determine whether the
Rate Change is consistent with requirements of the Charter Plan is severely impaired. In the
event the Consent Decree has not become a public document by August 19, 2011, we
respectfully request that the Board of Trustees direct its counsel to secure the consent of the
parties and the Court, or take any other necessary action, to permit the Rate Commission to
review the Consent Decree in camera no later than September 26, 2011.
Sincerely,
Leonard Toenjes
Chair, Rate Commis on
of the Metropolitan St. Louis Sewer District
cc: Mr. Jeffrey Theerman, Executive Director