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HomeMy Public PortalAboutExhibit MSD 61 Transcript August 16, 2011 Public Hearing2 3 4 5 6 METROPOLITAN ST. LOUIS SEWER DISTRICT 7 8 9 PUBLIC HEARING 10 11 AUGUST 16, 2011 12 13 (Hearing start time, 7:00.) 14 15 16 17 18 19 20 21 22 23 24 25 2 1 INDEX 2 PAGE 3 Introduction by Mr. Schneider 5 4 Presentation by Mr. Theerman 9 5 Public Hearing Session 20 6 Conclusion 47 7 8 9 10 (No Exhibits Marked) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 PUBLIC HEARING FOR METROPOLITAN ST. LOUIS SEWER 2 DISTRICT, produced and examined on AUGUST 16, 2011, 3 between the hours of 7:00 in the evening and 8:03 in 4 the evening of that day, at The Engineers Club of St. 5 Louis, 4359 Lindell Boulevard, St. Louis, Missouri 6 63108, before Suzanne Zes, Certified Court Reporter. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 APPEARANCES 2 For the MSD Rate Commission: Eric Schneider 3 Regional Chamber & Growth Association 4 Leonard Toenjes 5 Associated General Contractors 6 Glenn Koenen 7 West County Chamber of Commerce 8 Ralph Wafer 9 Missouri Coalition for the Environment 10 Ida Casey 11 St. Philip's Lutheran Church 12 13 Also present: 14 Jeff Theerman 15 Karl Tyminski 16 Pam Bells 17 Lance LeComb 18 19 The Court Reporter: 20 Suzanne Zes 21 Midwest Litigation Services 22 711 North Eleventh Street 23 St. Louis, MO 63101 24 314.644.2191 25 314.644.1334 Fax 5 1 MR. SCHNEIDER: Good evening, we'll get 2 started in the interest of time. My name is Eric 3 Schneider, I am a member of the Metropolitan St. Louis 4 Sewer District Rate Commission and I will be presiding 5 over the public hearing this evening. With me tonight 6 are my fellow MSD Rate Commissioners. The chairman 7 Leonard Toenjes, Ida Casey and Glenn Koenen and we 8 might be joined by a few other commissioners later on. 9 The charter plan of the District was amended at a 10 general election in November 2000 and established the 11 Rate Commission to review and make recommendations to 12 the District regarding changes in wastewater rates, 13 stormwater rates and tax rates proposed by the 14 District. The charter plan requires the MSD Board of 15 Trustees to select organizations to ensure a fair 16 representation of all users of the District services 17 on the Rate Commission. The Rate Commission 18 representative organizations represent commericial and 19 industrial users, residential users and other 20 organizations interested in the operation of the 21 District, including organizations focusing on 22 environmental issues, labor issues, socioeconomic 23 issues, community neighborhood organizations and other 24 nonprofit organizations. The MSD Rate Commission 25 currently consists of 14 members from organizations 6 1 and institutions throughout St. Louis City and County. 2 On May 10, 2011, the Rate Commission received a rate 3 change notice proposing changes in the District's 4 wastewater rates. The Rate Commission adopted 5 operational rules and a procedural schedule to govern 6 the proceedings on May 17th, 2011 and amended its 7 procedural schedule on July 8th, 2011. Under the 8 procedural schedule adopted by the Rate Commission as 9 amended, the MSD Rate Commission has until October 10 21st, 2011, to review and make recommendations to the 11 MSD Board of Trustees as to whether the proposed rates 12 should be approved, not approved or modified with 13 suggested changes and then approved. The MSD Rate 14 Commission has engaged legal counsel and a rate 15 consultant independent of those used by MSD staff. 16 Under procedural rules adopted by the Rate Commission 17 as amended, any person effected by the rate change 18 proposal has an opportunity to submit an application 19 to intervene in these proceedings. Applications to 20 intervene have been filed by Barnes Jewish Hospital, 21 Covidien, Missouri Industrial Energy Consumers, Robert 22 A. Miller, AARP and Consumer Councils of Missouri. 23 These applications have been granted. Since May 10th, 24 2011, the MSD Rate Commission has received testimony 25 from MSD staff, the intervenors and the rate 7 1 consultants. The parties have also engaged in 2 discovery requests. Technical conferences were held 3 on June 13th and August 11th, 2011 and are planned for 4 September 6th, 2011, where the participants and the 5 Rate Commission are given an opportunity to ask 6 questions of those submitting testimony. A prehearing 7 conference for the purpose of identifying any issues 8 raised by the rate setting documents and the prepared 9 testimony previously submitted, will be conducted on 10 the record on September 15th, 2011. All persons 11 submitting testimony may participate in the prehearing 12 conference and each participant in the prehearing 13 conference shall submit on or before September 22th, 14 2011, a prehearing conference report describing the 15 issues raised by the rate setting documents and the 16 prepared testimony. Together with a brief description 17 of such participant's position, if any, on each issue 18 and the rational therefore. Rate payers who do not 19 wish to intervene are permitted to participate in 20 these on the record public hearings conducted in six 21 sessions beginning on August 16th, 2011 and concluding 22 on September 26th, 2011. The Rate Commission 23 published a public notice regarding these proceedings 24 in the St. Louis Post Dispatch on May 20th, 23th and 25 24th of 2011 and on July 20th, 21st and 22nd of 2011. 8 1 And in the St. Louis American on May 26th, 2011 and 2 July 21st, 2011. These notices contain the time, 3 dates and locations of each of the conferences and 4 hearings. 5 The public hearing session tonight is for the 6 purpose of permitting the District to present its 7 wastewater rate change proposal and to permit any rate 8 payer an opportunity to comment. We will begin with a 9 presentation by the District and then followed by a 10 public comment period. Those wishing to speak should 11 sign in on the sheets provided on the table back there 12 and will be called out in the order of the names 13 listed thereon. Each rate payer shall identify 14 themselves and any organizations represented by the 15 rate payers. So again, I just want to repeat, the 16 clipboard, Pam is the clipboard back there, I think, 17 right? 18 MS. PAM BELL: Yes. Anyone wishing to speak 19 needs to complete a blue card and turn it in. 20 MR. SCHNEIDER: Okay. So you got the blue 21 card and you got the clipboard to fill out. The 22 speakers will again be recognized in the order they 23 sign up. And we are also -- each rate payer will have 24 a maximum of ten minutes to speak regarding the 25 proposed rate change and as the presiding officer I 9 1 can limit or expand the time. And I also want to 2 mention we are here to hear about the rate case 3 specifically. There is MSD staff if you have issues 4 regarding MSD outside the rate case, they can address 5 that outside of this public hearing session. Also the 6 restrooms are located outside there if you need them. 7 I'd ask you in the interest of decorum here, to 8 silence all your telecommunication devices and kind of 9 keep your conversations to a whisper. And I think 10 that concludes my comments here. I'd ask the Rate 11 Commissioner because of the presentation maybe we can 12 leave the table and come back for the public hearing 13 and I will turnover to Jeff Theerman for some 14 comments. 15 MR. THEERMAN: Thank you, Mr. Schneider. My 16 name is Jeff Theerman, I am the District's executive 17 director. I am going to give you a brief presentation 18 about the rate proposal that we submitted to the Rate 19 Commission. There are paper copies of this 20 presentation out on the table if anyone missed that, 21 that they can take along with them. 22 First of all, a little bit about the District. We 23 are really two utilities in one. We are a stormwater 24 utility and a wastewater utility. We serve 525 square 25 miles of St. Louis City and about eight -tenths of St. 10 1 Louis County. Our customers number about 1.4 million, 2 there are 428,000 wastewater accounts. We are the 3 cobbling together of 79 different, separate sewer 4 systems. These sewer systems were built and operated 5 by municipalities and by private sewer companies up 6 until we acquired them after 1956. The District was 7 originally -- the servicer was originally the city and 8 the county out to roughly Lindbergh and then in 1970 9 we annexed the west part of St. Louis County out to 10 roughly Highway 109. We're the fourth largest sewer 11 system in the United States behind New York, Chicago 12 and L.A. And while we have roughly the same number of 13 miles of pipe in the ground as Los Angeles, we only 14 have about a third of the customer base to pay for it 15 The reason there is, so much infrastructure here is, 16 again, 79 different sewer systems. If you were to lay 17 that out today in a modern fashion, it could be done 18 much more efficiently. That and the fact that it is a 19 very large service area. We have about 6,700 miles of 20 sewers in the ground that handle wastewater, 1,928 21 miles are combined sewers, that is the way sewers were 22 built in the 1800s. Sewage and stormwater flow in one 23 set of pipes. During dry weather that flow is all 24 wastewater and it flows to treatment plants for 25 complete treatment but during wet weather because 11 1 stormwater and wastewater together in one system, 2 there are overflows that occur into the Mississippi 3 River and the River Des Peres and some tributaries. 4 There are 4,700 miles of sanitary sewer. This is a 5 more contemporary design of wastewater systems. 6 Stormwater and wastewater in two different systems. 7 This system also has overflow problems, not because it 8 was originally designed to have stormwater included, 9 but because the condition of the system is allowing 10 rain water to get in that shouldn't be there, taking 11 up the capacity of the system and causing overflows. 12 We operate seven treatment plants and on a dry 13 weather day we treat about 370 million gallons of 14 wastewater through our treatment plants before it's 15 discharged into area streams. There is also 2,900, 16 almost 3,000 miles of stormwater sewers that are not 17 part of the wastewater system that are handled as a 18 separate utility. Our rate change proposal that we 19 submitted in May, is a wastewater rate change only. 20 And sometimes it is kind of hard to see what is waste 21 -- where wastewater ends and where stormwater starts 22 but I'm going to attempt to do that tonight. There 23 are no changes in our stormwater rates in this 24 proposal because our stormwater rates are presently 25 being litigated. So what we're talking about is 12 1 solely the rates for providing wastewater services in 2 the St. Louis City and County. We have a plan that is 3 four years in duration. It would raise rates July 1st 4 of 2012 and then each year after that through 5 June 30th of 2016, or four consecutive rate increases. 6 Our current rate for the average single family bill is 7 $28.73 a month. Everyone will see a different number, 8 the bills are based on winter quarter water 9 consumption. We get the water data from your water 10 service provider and that, in turn sets the bill for 11 wastewater. We use winter quarter to try and avoid 12 taking into account irrigation or car washes, that 13 sort of thing. So what you get billed for in the 14 winter quarter by your water provider ends up 15 impacting your MSD bill down the road. The drivers 16 that are making this rate change necessary are listed 17 here on the slide and it is primarily regulatory 18 requirements and I am going to go into that in great 19 detail. Also to try and keep rates manageable, our 20 proposal includes the use of a significant amount of 21 revenue bonds or debt financing. And that debt 22 financing has to then be paid back with interest. We 23 have lost some customer base here in St. Louis City 24 and County. There is declining water usage through 25 conservation, as well as reduced water consumption 13 1 because of economic conditions. And so all of these 2 play a part in our rate proposal and are all being 3 considered by the Rate Commission. 4 Our proposal includes significant amount of 5 capital investment. We are proposing a little over a 6 billion dollars of capital improvements over those 7 four years. About 945 million of that would be debt 8 financed or we would sell revenue bonds and then use 9 the money from the proceeds to fund projects and pay 10 those bonds off over time. All proceeds of the debt 11 financing would be for capital improvements, so we are 12 not using debt to finance day-to-day operations of the 13 District. Our day-to-day operations over those four 14 consecutive years will be $634 million, that is our 15 estimate. That is what it takes to run the day-to-day 16 business of MSD, including providing wastewater 17 services to those 1.4 million customers. And then 18 because we have already issued debt to the tune of 19 just under $700 million and we are proposing to issue 20 additional debt for these capital improvements, there 21 is debt service. So you see a four year number for 22 debt service of $359 million. The regulatory 23 requirements we face are the primary purpose for these 24 steep rate increases. 25 MSD in 2007 was sued by EPA in the State of 14 1 Missouri for violations or alleged violations of the 2 Clean Water Act. We have negotiated with the EPA over 3 the last four years to reach a settlement agreement 4 called a Consent Decree. And that Consent Decree is 5 now public and is available for public comment. I am 6 going to tell you just a little bit about the features 7 of the Consent Decree or the settlement. It has a 23 8 year schedule. We estimate that the cost of 9 compliance will be $4.7 billion in today's dollars. 10 It will deal with sanitary sewer overflow elimination, 11 that's the overflow from that separated system where 12 stormwater is getting in through imperfections in the 13 system, through people's downspouts, through 14 foundation drains and causing overflows when we have 15 rain events. We also have a combined sewer overflow 16 abatement program included in this to the tune of 17 about $2 million but instead of trying to separate 18 those sewers in the city and in the near county that 19 are combined, we'll build storage facilities to hold 20 there until the rain subsides and we can take that 21 water through complete treatment. It's a much more 22 cost effective approach to combine sewer overflow 23 abatement. There are sewer system maintenance repair 24 activities aimed at getting after the combined sewer 25 issues, the separate sewer issues and also the 15 1 basement backups that are a chronic problem for many 2 of our customers. There's -- and so reduction of 3 basement backups is a key part of the agreement. Then 4 there is asset reinvestment. One of the reasons we 5 are in the condition we are in as a utility and 6 infrastructure, we have underinvested in our sewer 7 infrastructure over decades. And so we are going to 8 have to get about the business of investing in it, so 9 that we don't get done with 23 years of capital 10 improvement and find ourselves still in the very same 11 place we are today. Outside of the EPA settlement 12 agreement, there is also other enviromental regulatory 13 drivers for the rate increase. We are being required 14 to add disinfection at our treatment plants, so that 15 the water leaving our plants after it's been treated 16 is free of bacteria. And so those disinfection 17 requirements are coming into play for all of the 18 plants and there are costs associated with the 19 operations of those facilities once they are 20 completed. You may have comments to make about the 21 Consent Decree and right now prior to September 9 of 22 this year, you can make comments to the Department of 23 Justice about that Decree. If you would like to see 24 the Decree in total, you can go to our website and it 25 is shown there on the slide and there is a link to the 16 1 Department of Justice website. You can get a copy of 2 the entire Decree, the appendices to it and there is 3 instructions for making comments to the Department of 4 Justice. If you make comments tonight, they'll be 5 valuable comments for the Rate Commission but they 6 will not be comments that are forwarded to the 7 Department of Justice. You need to do that through 8 this other approach. 9 One thing to keep in mind, is this is not a 10 problem that is unique to the City of St. Louis or the 11 urban core, this is a problem that exists throughout 12 the separate and combined sewer systems throughout all 13 of MSD. This is a map that is not intended to be an 14 eye test but it is intended and if you have your 15 handout it's a little easier to look at. The green 16 dots on the map, in the green area, are combined sewer 17 overflows, there are about 199 of them. And that 18 combined sewer system on an average year will 19 discharge about 13 billion gallons of a combination of 20 wastewater and stormwater into area rivers. The red 21 dots on the slide are sanitary sewer overflows. Those 22 are overflows that occur in the separate sanitary 23 system. All the red dots need to be eliminated, all 24 the green dots need be abated. We need to build 25 facilities to reduce the impact and the number of 17 1 times those overflows are active. 2 Here's a picture of what the capital improvement 3 replacement program looks like over those four years. 4 These are big numbers, an average of about a quarter 5 billion dollars a year in capital investment to get at 6 these issues. Our operating costs are relatively 7 stable, our staff is relatively stable. You see our 8 day-to-day operating cost shown here, you'll see in 9 some years a little higher than what is normal 10 inflation in terms of increases. Those are related to 11 regulatory requirements that are having to do with our 12 in-house staff, which are pushing up our operating 13 cost. But we are trying our best to keep our 14 operating day-to-day cost manageable because dollars 15 we save in the day-to-day operation of the District 16 are then available for capital improvements. This is 17 a snapshot of what rates are looking like nationally. 18 The blue bars are MSD rates and their monthly 19 residential bills and then the red line is the 20 National Association of Clean Water Agencies' survey 21 data from utilities around the nation. And you can 22 see that buying large utilities are going up and 23 they're starting to go up steeper and steeper, due to 24 primarily regulatory drivers and the need to reinvest 25 in infrastructure and St. Louis is not an unusual 18 1 circumstance. The fact that we were sued by EPA and 2 are entering into Consent Decree is not unique to St. 3 Louis. It is an artifact or a cause by EPA's 4 enforcement activities dealing with these overflow 5 problems because they are not permissible in the Clean 6 Water Act. 7 Here is the rate picture. Here in our fiscal year 8 2012, which just started last month we have a $28.73 9 bill for the average residential customer. And the 10 rate proposal we have given the Rate Commission has 11 these rate changes about $20 over the four year period 12 increase in the average residential rate. There's 13 lots of ways to finance capital programs, this gives 14 you sort of two ends of the spectrum. On the left, is 15 the program we presented to the Rate Commission. It 16 is largely debt financed. $945 million of additional 17 bonds, a billion dollar program for four years and you 18 see the escalation of rates over each of those years. 19 At the other end of the spectrum is to not borrow 20 money and to cash finance the program. There are an 21 infinite number of possibilities in between, so this 22 is just meant to show you the -- sort of the opposite 23 ends of the spectrum. The cash finance approach you 24 immediately need a rate increase where residential 25 rates go to $37.35 to cash finance a quarter billion 19 1 dollars of capital improvements each and every year. 2 And you see in the years after that, the increases are 3 very small because you have already reached that 4 threshold and it is sort of an inflationary climb 5 after that. The right side was not our right 6 proposal. We felt that although it is cheaper in the 7 long haul because there is not interest payments, it 8 is too arduous for our customers around our community 9 to stand a rate increase like that. There is also the 10 issue of when we build sewers. We are building an 11 asset that has a life of 75 to 100 years, so the use 12 of debt to pay that off is an appropriate approach for 13 funding the capital improvements. 14 Just some mention of next steps before I sit 15 back down. Our Rate Commission will be giving a rate 16 report to our board in October. That, of course, will 17 be based on the public hearings and the testimony and 18 their decision process. Our board will review the 19 proposal through November to December and the earliest 20 they can introduce a rate proposal or rate case, a new 21 rate if you will, is in December 2011. Assuming bonds 22 are authorized, we would anticipate a bond 23 authorization election sometime in the spring. And 24 then after that election we would know whether it's a 25 bond funded approach or not, depending on the voters 20 1 approval or disapproval and the board would then 2 finalize the rate plan with the first rate change, 3 assuming our plan is accepted in July of 2012. And 4 that concludes the presentation on the rate proposal 5 that we've made and I guess I will hand it back over 6 to Mr. Schneider. 7 MR. SCHNEIDER: Thank you, Mr. Theerman. I 8 will start, if I can call the commissioner's up, we 9 will start the public hearing. I'll call the first 10 person -- since this is being recorded and is a public 11 hearing, I am going to ask the people to come and 12 speak here at the podium and then if you haven't 13 filled out a card and you still want to speak, just 14 fill out the card, come to the podium and hand it to 15 me when you're done. So I'm going to call the first 16 person on our list today, Ms. Vivian Perry. 17 MS. PERRY: Thank you. My question, most of 18 my questions were answered earlier by the gentlemen 19 that spoke after you. My one question is, in 2007 20 there were two house bills passed with a mandate of 21 that included like $15 billion, am I right? It was in 22 the newspaper, I read it, I have got a copy of it. I 23 -- my understanding was that part of that $15 billion 24 was to deal with the wastewater problem. Was I wrong, 25 I mean, what happened to the 15 billion or did we get 21 1 the 15 billion or did we go to court about the 15 2 billion? 3 MR. SCHNEIDER: There is MSD staff that are 4 prepared to answer that question. 5 MS. PERRY: Okay. Well, that is my 6 question, that is what I would like to know. I do 7 have a copy of the article here. 8 MR. TOENJES: If you have the article that 9 would be great. I will make a comment on it then let 10 Jeff make a comment on it. I am Len Toenjes. I am 11 the chairman of the Rate Commission and I will like 12 for Jeff to make a comment on it but those -- the 13 bills that you replied that you talk about there, are 14 federal funding bills. Those federal dollars are 15 allocated to the states and my understanding is those 16 states go into what's called a state revolving loan 17 program. That, in essence, those dollars -- the $15 18 billion that were appropriated by the federal 19 legislature, go to the states. The states then have a 20 state revolving loan program that MSD or Kansas City 21 or other districts can tap into as part of this 22 borrowing program. That those are not grants but 23 those are funds that are allocated for borrowing at a 24 low interest rate back to the districts. I see Jeff 25 nodding his head but I don't know if you care to 22 1 elaborate on how much of that 15 billion ended up in 2 Missouri and how it ties into this rate case. 3 MR. TYMINSKI: Hey Jeff, can I help you out 4 on this one? 5 MR. THEERMAN: Sure. 6 MR. TYMINSKI: Okay. My name is Karl 7 Tyminski, I am the treasurer at MSD. I am involved 8 with the state revolving loan fund program. On an 9 annual basis the Congress does -- does authorize about 10 the amount you say each year for clean water revolving 11 loan funds. The State of Missouri gets a very good 12 share of that, relative to other states. We get about 13 3, 4 percent of the total. Of that total then that is 14 redistributed through the communities throughout the 15 State based on needs of projects. MSD, the State of 16 Missouri gets roughly about $30 million a year from 17 that program. Of that 30 million, MSD is building the 18 Missouri River Wastewater Plant, the expansion of the 19 Missouri River plant and the weather expansion at the 20 Lemay plant. They are both about a $100 million 21 projects but we have funded those through that loan 22 program. That loan program subsidizes the interest 23 you pay, we pay about 30 percent of the going rate. 24 It's worth -- if we get a loan of $100 million dollars 25 the interest is worth about the same amount to this 23 1 community. So they're the two facilities we did. One 2 is at the foot of the River Des Peres, the other is 3 out on the Missouri River in Creve Couer. They are 4 the two big projects that we got. 5 MS. PERRY: So the one at the River Des 6 Peres, would that handle the problem we just had with 7 the fish kill last week? 8 MR. THEERMAN: I will take that one. 9 MR. TYMINSKI: I will let Jeff take that 10 one. 11 MR. THEERMAN: She asked about a fish kill 12 in the River Des Peres last week. We believe that 13 fish kill is related to backwater from the Mississippi 14 River because the Mississippi River is in flood. And 15 during these really hot summer days and that backwater 16 condition, the oxygen gets depleted in the River Des 17 Peres and you end up with a fish kill. So they are 18 not directly related. But As Karl said, we utilize 19 SRF or state revolving fund money a lot, we are the 20 primary user of it here in the State of Missouri and 21 part of our proposal, part of that debt, would be 22 state revolving fund money at low interest. Does that 23 answer your question? 24 MS. PERRY: Yes. 25 MR. SCHNEIDER: Thank you, Mr. Theerman. 24 1 The next speaker, Mahlon and Patricia Hewitt? 2 MR. HEWITT: I didn't have any comment. 3 MR. SCHNEIDER: Okay. Karen Franz -Cohen? 4 MS. FRANZ-COHEN: Good evening, I am a 5 property owner in the city and having heard about 6 this, the main thing I would like to say is I would 7 like the bonds to be financed for as a long period as 8 possible because I want the rate to stay as near to 9 what it is now as possible. And I -- my family cannot 10 take that kind of financial hit. We have a four 11 family and so that is two sewer bills for me. So, if 12 they go to $47, that is a $100 a month. So, that is a 13 bit too much. So, I appreciate that. And then I 14 wanted to know if the materials and the labor to do 15 all this work is going to be purchased locally and I 16 would like to put in a vote for that. 17 MR. SCHNEIDER: Jeff, you want to answer the 18 local question? 19 MR. THEERMAN: I think maybe I'll just hang 20 around this microphone here. We believe a lot of this 21 program, perhaps not all, but a good deal of this 22 program can be built locally with local materials and 23 local contractors and engineering companies and it is 24 our intention to try to do that. There are some 25 components of the program with respect to some very 25 1 large tunnel construction, where the contracting 2 community just isn't there to do that construction 3 locally, so we may have to go outside of St. Louis for 4 the construction of that. But to the extent we can, 5 we want to keep it local and there is adequate 6 capacity in St. Louis from a construction perspective, 7 an engineering perspective to do this program. We are 8 confident of that. 9 MR. TOENJES: I would just like to make one 10 comment on that. My role on the Rate Commission is to 11 represent the commercial construction community here 12 in St. Louis. So, it is certainly important to me 13 that as many of our local contactors and trade workers 14 get those jobs as possible. So thank you for your 15 comment. 16 MR. SCHNEIDER: Actually, maybe we should 17 introduce each of our organizations on the Rate 18 Commission. Again, I am Eric Schneider, I represent 19 the St. Louis Regional Chamber & Growth Association. 20 Glenn, you want to start? 21 MR. KOENEN: I am Glenn Koenen, I am with 22 the West St. Louis County Chamber of Commerce. And my 23 day job is running Circle of Concern in Valley Park. 24 MS. CASEY: Good evening, my name is Ida 25 Casey. I represent the St. Philip's Lutheran Church. 26 1 MR. TOENJES: My name is Len Toenjes. I 2 represent the Associated General Contractors of St. 3 Louis. 4 MR. WAFER: Hi, I am Ralph Wafer and I 5 represent the Missouri Coalition for the Environment. 6 MR. SCHNEIDER: Thank you. So our next 7 person to testify is Joan Bray from the Consumer 8 Council of Missouri. 9 MS. BRAY: I was just introduced, I am Joan 10 Bray, I am chair of the board of the Consumers Council 11 of Missouri. We reform to educate and empower 12 consumers state wide and to advocate for their 13 interest both in legislation and in rule making 14 procedures. We work in three areas, utilities, 15 personal finance and health insurance. CCM has been 16 granted intervention in status for this case and we 17 are appreciative of that. And what we do want to say 18 is that no one in the region would deny the need for 19 this work. We absolutely go along with that and so we 20 know that rate increases do have to come but they are 21 coming at a very bad time. Over the past three years 22 during the recession people have suffered 23 tremendously. The middle class and poor people have 24 particularly been hit hard and too many people are 25 unemployed, too many people have lost their homes, too 27 1 many people are having to share space like they never 2 did before. And everyone has seen a huge escalation 3 in their utility bills. We know that Ameren in this 4 past five years have increased their rates by 41 5 percent. So what the Consumers Council is asking MSD 6 and this Rate Commission, is to be very specific about 7 what the work that has to been done and the money 8 needed to do that. We prefer that you go year -by -year 9 telling us what projects are going to be done and what 10 it is actually going to cost especially after the 11 first year of experience. Big numbers saying, well, 12 we have all this work to do and these are big numbers, 13 we have a high discomfort with that. So we would 14 prefer that the rates be phased in as gently as 15 possible and for the real amounts, not some estimates 16 for which we are not quite clear how they are done. 17 So we want you to be very sensitive to the individual 18 rate payers and how this hits them in these very 19 difficult economic times. Thank you. 20 MR. SCHNEIDER: Next testimony from Kat 21 Hogan Smith. Here you go. 22 MS. LOGAN SMITH: I am Kathleen Logan Smith, 23 I am the executive director of the Missouri Coalition 24 for the Environment and I am glad everyone is here 25 today. I just wanted to say that this is an 28 1 opportunity to make a historic investment in St. 2 Louis, the likes of which haven't been made in about a 3 hundred years. And it is an opportunity to for us to 4 step up to the plate and put people to work in our 5 community for about 23 years. And we have an 6 opportunity to return our waters to some health. And 7 some of the stories that I hear that affect me are the 8 stories about people remembering the day when they 9 swam the Maylene (ph) Creek or when they could catch 10 fish in Deer Creek, when the streams were healthy 11 enough to support the kind of life that God put there 12 in the beginning of time. And that we have degraded 13 our system over the last couple of hundred years in a 14 way that is very unnatural and that it's nice to see 15 us taking a step in a direction that is where the rest 16 of the world is going in the 21st century. It's no 17 longer okay for us to dump sewage into the waters that 18 we use and ultimately another community does drink 19 that water too. So we have to keep in mind that to be 20 responsible for our waste system is to start with 21 ourselves. And there is a lot of opportunities in the 22 next five or ten years for all of us to contribute to 23 the solution and not just to push if off on to MSD. 24 We have opportunities to partner with MSD and with our 25 neighbors and our communities to help keep the 29 1 wastewater and keep the runoff out of the system and 2 make a big dent, possibly even in our own bills. So I 3 want to encourage everyone to support this proposal. 4 We are going to have to make sure that they meet the 5 goals, they meet the deadlines and they meet the price 6 points that they have agreed to and it's going to be 7 up to us as citizens and Rate Commissioners and the 8 board of MSD to hold them accountable to those 9 achievements. And 23 years from now we will have 10 something we can be proud of and our grandchildren can 11 join us in celebrating the clean water that we have 12 given to them. 13 MR. SCHNEIDER: Again, if have you a card 14 and you want to testify just raise your hand. You can 15 also submit comments in writing to MSD staff here. 16 And you can also do it via the website stlmsd.com. 17 Next speaker is John Bordeaux. 18 MR. BORDEAUX: Hello. I remember back when 19 we had a rate increase almost ten years ago. And then 20 immediately it was upped again and I felt that MSD has 21 been playing for years a shell game with the community 22 and not actually telling us exactly what we should be 23 looking forward to from you and the waste that is 24 taken place at MSD. And at this point, based on the 25 comments that so many people have said about we all 30 1 want better things for our community, but at the same 2 time we don't want to be taken advantage of. And I 3 feel we have been taken advantage of. And as Rate 4 Commissioners I think that you should look into that 5 and see that that can't happen any kind of ways. 6 MR. TOENJES: I will just speak to that for 7 one second. Part of the Rate Commission process is 8 that the Rate Commission hires and independent rate 9 consultant so the numbers that were presented by the 10 MSD staff here tonight, part of our duty as 11 representing you all here in one way or other, is that 12 our private rate consultant takes all those numbers 13 and peels them all away and gives us an independent 14 analysis to look for those sort of things that you're 15 talking about, if there are wastes, if there are 16 inaccurate estimates, if there are -- if there is 17 anything there that doesn't pass the smell test. So I 18 do appreciate your comments, thank you. 19 MR. SCHNEIDER: Mildred Griffin, did you 20 want to make a comment? 21 MS. GRIFFIN: No, my question has been 22 answered already. Thank you. 23 MR. SCHNEIDER: Dan O'Neal, would you like 24 to make a comment? 25 MR. O'NEAL: No. 31 1 MR. SCHNEIDER: I have come to the end of 2 the list of the blue cards. Does anybody else have a 3 comment? Okay, thank you. Barbara Murphy. 4 MS. MURPHY: Good evening. I am not 5 associated with anyone important, I am just a 6 day-to-day person who lives and resides in the City of 7 St. Louis and have done so my entire life. And my 8 memory is not so good about rate increases but I have 9 three questions. Your rate request I am sure is well 10 needed or deserved of your consideration but behind 11 the increases for Laclede gas, Ameren, the 12 telecommunication's industry, et cetera, the financial 13 situation of this city, the lack of jobs in this city, 14 the fact that families are falling in on each other in 15 this city, you got generations again living in the 16 same house, not because they love each other but 17 because they have to. And I'm not sure if I can 18 afford another rate increase of any type from anybody. 19 It is just getting to be too much and this might be a 20 trend I noticed in the last four years. I retired in 21 2007 with a nice healthy bankroll and then the stock 22 market hit in 2008 and I was devastated. And I went 23 -- I wanted to go back to work, ha, they see the gray 24 hair which is covered up right now and they don't want 25 to hire anybody and I have qualifications. But my 32 1 point is, I might be forced to give up my home, okay. 2 Not because I can't pay the mortgage, but it's going 3 to be the mortgage plus the fees, plus the rates, plus 4 the taxes and it will just be too much. And that will 5 be killing the goose that lays the golden egg. You 6 will a lot of empty houses with a wonderful sewer 7 system. The next question is -- then I have question 8 about the water, the winter water usage. I call 9 because when I got the notice of the meeting, I 10 started going over my bills and I have been paying $41 11 a month for my sewer bill, in addition to my storm 12 bill that is included in my property tax, for the last 13 ten years. And my question is $41, it's just me. I 14 can't -- excuse me, use the bathroom that much. Why 15 is it $41? And that tells me over the next four years 16 it might go up to $81, $85, that is scary to me. In 17 addition to everything else that will be going up. So 18 I wonder is there any type of adjustment for the 19 winter water use and can I get somebody to investigate 20 and see why my bill is so high. Then the last thing, 21 you probably will get your rate increase, you will 22 probably get your bond issue increase, you will 23 probably get those. I am serious, I have seen it 24 happen over and over again because we always say, we 25 don't like it but we'll take -- we'll bite the bullet 33 1 because this is for the greater good of the City of 2 St. Louis and we will make that sacrifice. That is 3 how we feel in this city. We our supportive, we are 4 good people here. But my question is, what happens in 5 2017, when this money goes away, are they going to 6 drop back down, are they going to come back again and 7 ask for more, will inflation hit us even harder, that 8 is my question. And I am just afraid. 9 MR. SCHNEIDER: Mr. Theerman, I heard kind 10 of three questions. One, could you tell how they 11 calculate the water usage rates for your bills and 12 second, if you could talk about the low income program 13 that MSD has. And the third thing is whatever happens 14 after the rates set in. 15 MR. THEERMAN: Okay. Earlier I mentioned 16 that winter quarter water consumption is what is used 17 to calculate the bill. What I should have followed 18 that with is, if you're a city customer of the city 19 water division, your residential use is probably not 20 metered. There are very few residential water meters 21 in the City of St. Louis. And so the city uses a 22 methodology that is basically counting rooms, baths, 23 number of rooms in the home and they arrive at your 24 use that way. Which if you're a single person in a 25 large home, is a lot different than if you're the 34 1 opposite, many people in a smaller home. That is all 2 they have right now for doing that and we use that 3 methodology in our rate setting. The city water 4 division will read meters if the meters get installed. 5 So the homeowner has the ability to have a water meter 6 added and then sort of right size their usage and 7 therefore their bills, so that is one thing. 8 MS. LOGAN SMITH: What does that cost? 9 MR. THEERMAN: Kat, a water meter is not 10 very expensive but what it takes to get it installed 11 in the plumbing depends on the situation in the home. 12 So I would be guessing, a couple hundred bucks is 13 probably all it takes to get a water meter. But it 14 could be thousands of dollars if you're having to do 15 other plumbing code work in the home. So that is why 16 you're seeing your bill stay flat for years and years 17 and years. Some of you that are served by Missouri 18 American would have a different experience. Your 19 water bills, your sewer bills would rise and fall each 20 year because your water use is adjusting. Low income 21 assistance, MSD for over ten years has had a low 22 income assistance program and for those customers that 23 qualify, the bill can be cut by 50 percent. And all 24 it takes is an application. If anyone here wants to 25 investigate that, there is information on the front 35 1 table and also Jan Zimmerman our Director of Finances 2 in the back of the room and she would be glad to help 3 answering any questions anyone may have. 4 MR. SCHNEIDER: And what happens in 2017 is 5 the final question. 6 MR. THEERMAN: Oh, yeah, 2017. The short 7 answer is more of the same. We are going to be trying 8 to build $4.7 billion of improvements over 23 years. 9 We believe the rates will climb up into the 80's by 10 the end of the decade and then start to level off and 11 you'll have more inflationary style rate changes, you 12 know, beyond that, but the unfortunate reality is that 13 $47 is not the end of the line in our opinion. 14 MR. SCHNEIDER: Our next testimony is from 15 Leonard Lang. 16 MR. LANG: Yes, I was going to follow up. I 17 think you answered my question pretty much but the 4 18 plus, the 4 billion plus project is going to be skewed 19 towards the end of the 10 year term or 12 year term 20 for the life of the proposal, right? We are spending 21 a billion plus or minus, in the first four years and 22 at least three billion to go into the last seven 23 years, if I am reading the numbers. 24 MR. THEERMAN: It's a 23 year schedule, so 25 the horizon is longer. 36 1 MR. LANG: Okay, 23, not going until 2023. 2 MR. THEERMAN: And of course, we are talking 3 about current dollars, so as time goes on -- 4 MR. LANG: Numbers will get bigger. 5 MR. THEERMAN: The numbers are going to get 6 bigger. 7 MR. SCHNEIDER: Next one is Joe Gudiswitz. 8 MR. GUDISWITZ: Joe Gudiswitz. I guess the 9 first question is -- I guess what's the driver for the 10 lawsuit because I'm not familiar as far as the water 11 quality issue that started -- that started everything 12 rolling. And I guess my worry is particular -- well, 13 two worries, one is will what we are doing, will it 14 really help our water quality issue because we are a 15 system that's -- River Des Peres and other 16 subsidiaries they're not natural channels to start 17 with, so we still have overland flow and other things 18 that are contaminants to the area. And when we talked 19 about the environment just before and thinking that we 20 still have non -natural channels systems and the big 21 first flush, I'm just wondering if what we are doing 22 is really getting at the problem. And then I guess 23 the other question is, if St. Louis City and County 24 are having these rate increases, the surrounding areas 25 where are they also going to also have similar rate 37 1 increases, St. Charles, Franklin County, further out 2 and essentially are we going to be at a competitive 3 disadvantage as far as residents pricing ourselves for 4 myself saying, well, I'm going to move over to 5 Franklin County in five, ten years because things just 6 keep on going up in the city. 7 MR. THEERMAN: On the slide, the green area 8 again is combined and outside of that is a separated 9 area. All those red dots are constructed sanitary 10 sewer overflows and they are all illegal. They were 11 put in as the lesser of two evils. They allow 12 overflows to occur instead of basement backups and so 13 the Clean Water Act says all those red dots have to 14 go. And the green area, all the green dots are 15 combined sewer overflows, now they're not illegal but 16 they have to be abated. And all 199 of those 17 discharge an average of 30 to 50 times a year with 18 rain events. And our program that has been approved, 19 has those discharging down around four times a year 20 with the exception of those that are along the 21 Mississippi River. The Mississippi River CSOs are 22 being addressed in a different matter with green 23 infrastructure work we're doing in the north side of 24 the City of St. Louis to try and reduce the amount of 25 water that is reaching our combined system and 38 1 therefore into the river. So your question is really, 2 what kind of benefit do we get? Well, our program is 3 designed to try and get the greatest benefit in the 4 urban streams. That is where people are close to the 5 overflows. People's backyards, the streams of 6 discharge in the River Des Peres that flow through the 7 parks, the River Des Peres itself, both down where 8 it's a big industrial channel but also up north where 9 it's more of a creek. The Maylene Creek and all the 10 unnamed streams in between. So that's why you see the 11 majority of our work occurring away from the 12 Mississippi River because everything we do to improve 13 water quality in the region, ultimately helps the 14 Mississippi, it all flows there eventually. So hard 15 to quantify benefit because you're right in 16 characterizing, there is more to the equation than 17 sewer overflows, there are a whole lot of stormwater 18 impacts that are going on and that's a different topic 19 for a different day. But MSD is intimately involved 20 in trying to deal with stormwater pollution, as well 21 as wastewater pollution. So that's sort of the 22 picture of the way the program is. The red dots are 23 illegal, the green dots have to be abated, there is no 24 way around that. Competitive damage, you can tick off 25 any major city in the country that is entering into a 39 1 Consent Decree or that already has one. You start 2 talking about our neighboring municipalities in the 3 region and nearby counties, systems aren't as old, 4 probably doing a very similar thing to what we have 5 done, under invested in their systems. Over time if 6 they don't choose to invest they will end up being in 7 a very similar place as we are. So hard to say 8 competitive advantage, hard to say what exactly that 9 turns into. There are some advantages to an MSD scale 10 utility. We have a very large economy scale, our 11 treatment plans our efficient as any plant in the 12 country in terms of cost to operate. So the reason 13 are rates have been low for a long time and we have 14 been able to get by with what we have done is because 15 of scale, we are big and we are able to achieve good 16 economies that way but there is a lot of pipe there to 17 fix too. 18 MR. SCHNEIDER: Does anybody else wish to 19 testify or have a comment on this specific rate 20 proposal tonight? 21 UNIDENTIFIED SPEAKER: Actually, yeah. I 22 would like to know why, why has it been under invested 23 for all these years? You keep telling us that, but 24 why? 25 MR. SCHNEIDER: Did you hear the question? 40 1 MR. THEERMAN: Yeah, it's the infrastructure 2 story you here about virtually all infrastructure. 3 Roads, highways, bridges, water, sewer, as a nation, 4 not just here in St. Louis, we have lived on borrowed 5 time. Rates should have been -- rates should have 6 been increased in the 70s and 80s and 90s. There is a 7 lot of reasons why they weren't. I mean, it's always 8 hard to raise rates. There are impediments to raising 9 rates in state law. So I mean, and these are all 10 things we value as Missourians, it should be hard to 11 raise rates but it does have an impact. If rates 12 aren't raised, an infrastructure investment isn't 13 made. It is not any different than other forms of 14 infrastructure. I think the real difference about 15 sewers and water mains for that matter, is it's buried 16 and it is easy not to think about it. When you're 17 driving on a bad road you know it. When your sewer 18 system is falling apart under your feet it's not as 19 obvious. 20 MS. BORDEAUX: Good evening. I don't know 21 that much -- 22 MR. SCHNEIDER: Could you state your name, 23 please? 24 MS. BORDEAUX: I'm sorry, Delores Bordeaux 25 and I'm a homeowner just a couple of blocks over. I 41 1 don't know that much about the technology involved 2 with the things that need to be improved and the 3 infrastructure that needs be updated but other than -- 4 and I heard NPR yesterday and I don't know if it was 5 you that was speaking, I think so, about the green 6 technology that might be used at this point. The only 7 thing I heard were the gardens to filter the water 8 primarily in North St. Louis and I was wondering with 9 this project, what other green technology or efforts 10 to strengthen the environment in the process are being 11 undertaken? 12 MR. THEERMAN: Our settlement agreement with 13 EPA includes a pilot project that we are currently 14 doing in the north side of the city. And that project 15 includes elimination of impervious area, more green 16 space, green techniques like rain gardens, planter 17 boxes that hold water rather than letting the 18 downspouts just flush directly to the system, 19 vegetated swales, porous pavement, these are all green 20 techniques and the list is quite long. Other areas of 21 the country are doing really interesting things with 22 reducing pavement widths and having more planting 23 areas to catch rainwater. There's really a very long 24 list. You can see some of those techniques on our 25 website. There is a lot of green on the web and lots 42 1 of websites. After the pilot program, our settlement 2 agreement has $100 million of green infrastructure 3 that will go in the combined area, that green area and 4 predominately in the north side. There are -- there 5 are what we believe, that the north side of St. Louis 6 is going to see a lot of change in the next 20 to 30 7 years. There is a lot of vacant land that is 8 presently owned by the city. There are opportunities 9 for that to redevelop into something really terrific. 10 (loud noise from mic followed by laughter) I hope that 11 wasn't a comment about my statement. And that is part 12 of the reason the $100 million leveraging in that part 13 of the combined system was something the public talked 14 to us about. We -- this combined sewer program, which 15 is sort of half of the program, went through a lot of 16 public comment about two years ago in its development. 17 And we asked the public to help us weigh options and 18 that green alternative on the north side is part of 19 it. That doesn't mean we are not doing green other 20 places, you get outside of that green area and you're 21 in that separate area, there are two systems there. 22 And the stormwater part is not part of this proposal 23 but stormwater work is being done with lots of green 24 alternatives in the county and we are playing a role 25 in that too. We are certainly not the only one, we 43 1 are partnering with others to try and find green 2 alternatives throughout the whole region. 3 MS. SYREN: My name is Mary Syren. I wanted 4 to ask you about this green initiative. You mentioned 5 pots, you know, they're collecting rainwater, where is 6 the money coming from to institute that? 7 MR. THEERMAN: The green infrastructure 8 program in the combined area because it will help 9 reduce overflows, is funded out of the wastewater rate 10 and that's because it is a lesser and hopefully more 11 effective approach to the combined sewer overflow 12 issue, which is a wastewater issue. When you get 13 outside of that combined area, the green 14 infrastructure alternatives that MSD would fund would 15 come out of the stormwater rate. And presently our 16 stormwater rate is being litigated, so it's really 17 been trimmed back to very bare bones stormwater work 18 outside that area. A lot of green infrastructure goes 19 in with private investment. MSD is also a regulator. 20 We permit new development and when we do that we are 21 seeking green infrastructure alternatives to be 22 considered in how the stormwater is managed on a new 23 development site as well. So green infrastructure is 24 not solely a public major, a lot of it is private, 25 both to construct and own and operate. 44 1 MR. SCHNEIDER: Is there any other comments, 2 you had one, is there anybody that has not spoken that 3 would like to testify? 4 UNIDENTIFIED SPEAKER: Where are you getting 5 with the city, we had projects when I worked for the 6 city where plumbing division literally would not let 7 us not hook up a gutter system to the stormwater 8 system and they wouldn't give us a pass on our final 9 inspection on the houses, so did that get resolved 10 yet? 11 MR. THEERMAN: The city has an ordinance 12 that prohibits the disconnection of downspouts from 13 the sewer system and that ordinance is a public safety 14 ordinance that is really designed to try and prevent 15 downspouts from spilling onto sidewalks and then that 16 freezing in the pavement in the winter. We work with 17 the city to try and get variances where there is a 18 green space for that downspout to discharge to. And 19 they are working with us on that. We have gotten it 20 all done yet but we are able to work with them on a 21 case -by -case basis. The disconnection of downspouts 22 in the combined area isn't as important as the 23 disconnection of downspouts in the separate area. 24 That separate area again, in many cases in those near 25 urban or those near suburban communities was plumbed 45 1 like it was a combined system. So you have downspouts 2 connected to the sanitary line that is not supposed to 3 be a combined sewer. So we are going to have to have 4 a program of getting those downspouts off to try and 5 get water out of the sewer system to try and stop 6 overflows but we are doing it in both respects. In 7 the county in the nongreen area, if you will, we will 8 be working with people to get them disconnected so 9 they're not adding extra water. In the city, 10 case -by -case, we are working with customers and with 11 the city codes to try and get disconnection to occur. 12 I'm not surprised it's a real common -- it's an 13 ordinance that they enforce and it's appropriate in 14 many places. They got a lot of areas where you really 15 don't have a green space to discharge to but where it 16 makes sense the city has been willing to work with us 17 on. 18 UNIDENTIFIED SPEAKER: We have developments 19 where there are plenty of green space to absorb the 20 water and they didn't. 21 MR. THEERMAN: I don't want to criticize the 22 city because there are times when we are permitting 23 and we are hardheaded too, so I -- 24 UNIDENTIFIED SPEAKER: I believe you were 25 addressing the question that I had, you're talking 46 1 about downspouts from new constructions into the drain 2 system, right, and as I understand you, the answer to 3 that is not in yet? 4 MR. THEERMAN: Yeah, I think that is 5 accurate. I mean, right now the ordinance still 6 exists, you have to plumb downspouts to the sewer 7 system in the city. And they stand by that ordinance, 8 we work with them on a case -by -case basis to try to 9 get variances where they make sense. You know, over 10 the long haul I'm not sure where it is going to end 11 up. I think there is a willingness to work together 12 and to try and find solutions though. 13 MR. SCHNEIDER: Anybody else have any 14 comments regarding this rate proposal? 15 MS. WISE: Thank you, good evening. My name 16 is Erva Wise and I want you to look around at the room 17 and see all of these senior citizens and we are on the 18 fixed income. Everybody is in our pocketbooks for 19 everything. We can't get our 2 percent cost of 20 living, everything is sky high and I want some of 21 these officials to take notice. You got your 22 youngsters, they going to work, they don't want to 23 work and we have worked. They going to take our 24 Medicare and try to do everything to us. Where is the 25 solution to helping us -- 23 years from now I will 47 1 probably be dead. I will be close to 90 years old, 2 you know, so a lot of us in here will never even see 3 this project. So I want you all to take into 4 consideration we have been to the meetings, all the 5 meetings that you have held and we are constantly 6 talking, you all are constantly talking about raises. 7 Everybody wants to get in our pocketbooks. You can't 8 get in our pocketbooks if we got lint at the bottom of 9 them. So I want you all to think about some of the 10 things that you're putting the senior citizens 11 through. Thank you. 12 MR. SCHNEIDER: Anybody else that has not 13 spoken that would like to testify? Does the Rate 14 Commissioners have anything they would like to add? 15 MR. TOENJES: I would just like to say, 16 again, my name is Len Toenjes. I'm chairman of the 17 Rate Commission. We hit -- this is the third rate 18 case I have had the opportunity to represent you all. 19 I heard who will do the work, what is this going to 20 mean to me, when did we get behind on our investment, 21 why do we need a rate increase and how will we address 22 ways to make sure that every dollar is used carefully. 23 I think that the 15 member Rate Commission does a good 24 job of representing the community. I also think it is 25 tremendous -- I guess I would personally like to thank 48 1 each of you for taking time out of your evening and 2 your week to come here and express yourselves because 3 your concerns are all extremely important to us and 4 extremely important to everybody on the Rate 5 Commission. We have had these hearings where two 6 people show up and we are out of here in five minutes. 7 So I think it's tremendous to see the turn out 8 tonight. On behalf of the entire Rate Commission, I 9 would just like to thank all of you for being here 10 tonight. 11 MR. SCHNEIDER: The next public hearing will 12 be conducted on Thursday, August 18th, 2011, at 6:00 13 p.m. at the City of Chesterfield City Hall at 690 14 Chesterfield Parkway West in Chesterfield. The 15 remaining public hearings are all on the MSD website. 16 I do encourage you to go on that, stlmsd.com. You can 17 submit comments regarding the Rate Commission via the 18 website. All of the documents that the Rate 19 Commission is reviewing is also on that website. So 20 if you go into the about us section on the Rate 21 Commission you can find all the documents the Rate 22 Commission is looking at, in addition to the capital 23 plan that is being proposed as a part of this Rate 24 Commission. I just want to thank Mr. Theerman and the 25 MSD staff. Raise your hand, the MSD staff is in the 49 1 room. If you have any questions, they're all here to 2 answer further questions here. So with that, I will 3 conclude the public hearing for tonight and thank you 4 for taking the time. 5 (Hearing concluded at 8:03 p.m.) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 50 CERTIFICATE OF REPORTER 2 3 I, Suzanne M. Zes, Certified Court Reporter, 4 Notary Public within and for the State of Missouri, do 5 hereby certify that the witness whose testimony 6 appears in the foregoing deposition was duly sworn by 7 me; the testimony of said witness was taken by me to 8 the best of my ability and thereafter reduced to 9 typewriting under my direction; that I am neither 10 counsel for, related to, nor employed by any of the 11 parties to the action in which this deposition was 12 taken, and further that I am not a relative or 13 employee of any attorney or counsel employed by the 14 parties thereto, nor financially or otherwise 15 interested in the outcome of the action. 16 17 18 Certified Court Reporter 19 20 21 22 23 24 25