HomeMy Public PortalAboutExhibit HBA 124 - Motion of Intervener Home Builders Association Supporting EvidenceExhibit HBA 124
Wastewater and Stormwater Rate Change Proceeding — 2015
First Discovery Request of Intervenors Home Builder Association
of St. Louis & Eastern Missouri
BEFORE THE RATE COMMISSION OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT
For Consideration of a Wastewater
And Stormwater Rate Change Proposal
By the Commission of the Metropolitan
St, Louis Sewer District
MOTION OF INTERVENORS HOME BUILDERS ASSOCIATION OF ST.
LOUIS & EASTERN MISSOURI FOR LEAVE TO FILE SUPPLEMENTAL
SUPPORTING EVIDENCE
Intervenor Home Builders Association of St. Louis and Eastern Missouri
("HBA") respectfully requests that the Rate Commission of the Metropolitan St. Louis
Sewer District ("Rate Commission") allow the introduction of the attached Affidavit of
Emily Schwartze Post and ancillary documents as supplemental supporting evidence
illustrating alternatives to the Proposed Rate Change regarding the structure of the
proposed stormwater service and funding structure. The grounds for this request are as
follows:
1. The Stormwater Rate Change Proposal submitted by the Metropolitan St.
Louis Sewer District (the "District"), proposes to assess a District -wide SW tax to replace
the current SW O&M Tax and flat rate charges, with the proposed District -wide tax rate
being $0.10 per $100 of assessed property value. See Section 5.4, Proposed Funding
Methods, p. 5-9, MSD Ex. 1.
2. The Rate Change Proposal submitted by the District included a 2014
Stormwater Utility Survey conducted by Black & Veatch which stated that "stormwater
credit serves a key role in enhancing the perception of 'user fees' by affording the
customers opportunities to reduce the magnitude of the user fees commensurate with
[the] extent of onsite stormwater management." See 2014 Stormwater Utility Survey, p.
17, MSD Ex. 84-G. The 2014 Stormwater Utility Survey also indicated that forty-four
percent (44%) of districts surveyed have a stormwater credit program. See Figure 38,
2014 Stormwater Utility Survey, p. 18, MSD Ex. 84-G.
3. Despite the key role stormwater credits serve according to the 2014
Stormwater Utility Survey, Brian Hoelscher testified during the Technical Conference
held on April 8, 2015, that the District had not considered a credit program. See
Transcript of First Technical Conference April 8, 2015, p. 17, MSD Ex. 96.
4. On April 30, 2015, the HBA filed its First Discovery Request directed to
the District in an attempt to solicit additional information regarding the District's
rationale for not considering alternatives to the Proposed Stormwater Rate Change
Proposal, including stormwater credit programs. See First Discovery Request of
Intervenors Home Builders Association. to MSD April 30, 2015, MSD Ex. 100.
5. On May 13, 2015, the District filed its Response to the HBA's First
Discovery Request directed to the District which reiterated the District's position that the
ad valorem property tax included as part of the Proposed Stormwater Rate Change
Proposal is fair and equitable. The District's Response also stated that the District had not
examined a potential credit program and that the District's rate consultant, Raftelis
Financial Consultants (RFC) was unaware of any system funded through property taxes
that utilizes a credit program. See MSD Response to First Discovery Request of
Intervenor HBA, MSD Ex. 100A.
6. The idea that a credit program cannot be introduced in systems funded
through property taxes is a red herring as the fair and equitable requirement applies
irrespective of the funding methodology contemplated. Under the Proposed Stormwater
Rate Change Proposal, the District is effectively proposing a methodology that would
charge some customers twice, once directly through payment of the ad valorem tax itself,
and once indirectly through costs associated with the operation and management of
BMPs. Given that the ultimate purpose of the stormwater tax is to promote water quality
in the St. Louis region, it would appear irrational to reject outright a credit program that
would incentivize rate payers to install improvements that reduce stormwater runoff and
increase the quality of runoff.
6. Recognizing the key role stormwater credit programs serve in enhancing
customer perception and encouraging "green practices" aimed at reducing stormwater
runoff and improving the quality of runoff, the HBA respectfully requests leave to file the
attached Affidavit and documents illustrating the importance and feasibility of
implementing credit -based stormwater programs.
Respectfully submitted,
SmithAmundsen, LLC
By: /s/ John Bradford Goss
John Bradford Goss, #36266
Nicholas L. Burkhart, #65816
120 S. Central Avenue, Suite 700
St. Louis, MO 63105
314.719.3702 — Telephone
314.719.3703 — Facsimile
bgoss@salawus.com
nburkhart@salavvus.com
Dated: June 11, 2015 ATTORNEYS FOR HBA OFST. LOUIS
AND EASTERN MISSO URI
CERTIFICATE OF SERVICE
The undersigned certifies that a copy of the foregoing was sent by electronic
transmission to the following on this 15th day of June, 2015.
Ms. Janice Fenton
Office Associate Senior
Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103
ifenton@stlmsd.com
Ms. Susan Myers
General Counsel
Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103
smvers@stlmsd.com
Mr. John Fox Arnold
Lashly & Baer, P.C.
714 Locust Street
St. Louis, MO 63101
jfarnold{a lashlybaer.com
Ms. Lisa O. Stump
Lashly & Baer, P.C.
714 Locust Street
St. Louis, MO 63101
lostump@lashlybaer.com
Ms. Diana M. Vuylsteke
Mr. Brandon W. Neuschafer
Bryan Cave LLP
211 N. Broadway, Suite 3600
St. Louis, MO 63102
dmvuylsteke@bryancave.com
bwneuschafer(d bryancave.com
AFFIDAVIT OF EMILY SCHWARTZE POST
COMES NOW Emily Schwartze Post and being first duly sworn upon her oath,
deposes and says that if called to testify she could and would state based on personal
knowledge that:
1. I am over the age of twenty -on (21) years of age.
2. I am competent and authorized to make this Affidavit and testify as to the
matters herein,
3. I am the Assistant Staff Vice President for Public Policy for the Home
Builders Association of St. Louis & Eastem Missouri.
4: In addition, 1 serve as the Staff Liaison to the Environmental Affairs
Committee and Staff Liaison to the Utility Relations Committee, as well as Staff Liaison
to the City of St. Louis Board of Trustees and St. Louis County Board of Trustees.
5. As the Assistant Staff Vice President for Public Policy, Staff Liaison to
the Environmental Affairs Committee and Staff Liaison to the Utility Relations
Committee, 1 am responsible for the periodic review and analysis of laws, regulations,
policies, and issues affecting the home building industry in Missouri and throughout the
United States.
6. One of the primary concerns of home builders and developers in recent
years has been the impact of increasingly stringent laws and regulations related to
environmental protection and clean water.
7. As a result these concerns, 1 have performed extensive research on issues
related to stormwater management, including the impact of the Clean Water Act and the
National Pollutant Discharge Elimination System (NP:DES) permit program, and the
effective implementation of Best Management Practices (BMPs).
8. I have also researched numerous stormwater incentive programs that have
been implemented by various local utilities to incentivize customers to take an active role
in reducing stormwater runoff and improving the quality of stormwater rtmof. .
9. Illustrative of the credit programs l have reviewed are those implemented
by Lynchburg, VA, Richmond, VA, Minneapolis, MN, Seattle, WA, Washington, D.C.,
Baltimore, MD, Fernandina, FL
10. From the developer or home builder point of view, credits provide an
incentive to implement better site design practices to help reduce the volume of
stormwater runoff, minimize the pollutant loads from a site, and allow projects to not
only meet, but exceed stormwater and water quality requirements. While it is true that the
application of credits in this context directly translates into cost savings to the developer
thereby encouraging improved site design and improved water quality, it is also true that
utilities receive a secondary benefit through reduced impacts on existing systems.
11. From the individual customer point of view, I would agree with the
findings in the Black & Veatch 2014 Stormwater Utility Survey that "stormwater
credit[s] serves a key role in enhancing the perception of `user fees' by affording the
customers opportunities to reduce the magnitude of the user fees commensurate with
[the] extent of onsite stormwater management." In this context, stormwater credits not
only provide a positive image for the utility, but also encourage individual property
owners to take an active role in reducing the quantity of stormwater runoff and improving
the quality of runoff.
12. By encouraging developers and individual property owners to exceed
current regulations and take an active role in stormwater management, the District is
likely to see several benefits, including: (i) reductions in runoff volume reducing the
amount of runoff requiring treatment; (ii) increases in the quality of runoff allowing the
District to more easily meet water quality standard requirements; (iii) reducing the need
for drainage infrastructure thereby reducing costs; and (iv) potentially increasing tax
revenues by encouraging rain gardens and similar BMPs that often appeal to many home
owners and can increase property values.
FURTHER AFFIANT SAITH NOT.
hume
Emily S e Post f
STATE OF MISSOURI )
ss
COUNTY OF ST. LOUIS )
Now on this 16 day of June, 2015, personally appeared before me Emily Schwartze
Post and executed the foregoing.
My commission expires:
—,�oaki— — —
KRISTEN FULLER r
Notary Public • Notary Seal h.
4, State of Missouri, St Louls County
Commission 91459572E
t My Commission Expires Mar 20.201E
STORMWATER UTILITY
CITY OF FERNANDINA BEACH, FL
1
Purpose
• To fund stormwater related
activities within the City.
• To improve the public health,
safety and welfare by providing for
the safe and efficient capture and
conveyance of stormwater runoff
and the correction of stormwater
problems.
• To encourage and facilitate urban
water resources best management
techniques.
2
PR
Majo r Capital improvements P roj ects
C-2BIC-9 Beech Street from South 9th Street to east of Citrona Street.
$4,190,900.00
• C-3 Fir Street from South 17th Street to the west end.
$4,114,800.00
C-13 Lining and/or sealing the existing drainage system in the downtown area.
$2,741,600.00
0Q4) C-10 First Avenue Area between Sadler Road and Simmons Road.
$1,772,400,00
C-1 North Fletcher Ave (Dolphin to VV. 9th Street)
$928,000.00
• C-6 Fir Street Area between South 5th Street to the west side of the RR tracks.
$910,200.00
C-5 North 15th and Franklin Street
• C-2A South 9th Street Area between Beech Street and Fir Street
3
$836,000.00
$687,200.00
C-7 North Flekher Area between (AteJle St and Kimberly
12-4 N�rili 15,h Sine (North of Leon Street)
C-5 North 151h end Franklin Street
C-I3 Lining andllor :waling the
erlatinz drain:me system.
C-1.131 Freud] Drain — Iflvi,ilou Street at Beech Street
C-11A Frtnrh Drain - 1813 Highland Drive
11French hrRin - ROO Stanley Drive
Fernandina Reich
C-1 North Fletcher Ave (Dolphin to W.9411 Street)
C4 Motu Beach Park Area by Dolphin Street
C-2.11/C-9 Beth Street from South 9th
ruel li. gut or Caroni' Stmt./
C-I9 Rrei Awruue Areic h.Iween Saulter Rd ood
fiimrnan9 Rd
C-2A Sonth 4th Street Area bett.te¢u Beech Street bed Fir Street
C-IC Elm Street Area between Uivklwi Street Ind South 13th Street
C-3 Fir Street from S. ith 1/th Street to the west end
C-11 it French Drain - FItn Street at South 11th Street
C-112 Gum Sircee Ares tour South nth Street
C-6 Fir Si AJ-CA between South 5th
St Wegt wlde of the RR clucks
"
I ) e f i n i r . o n s
I m p e r v i o u s A r e a
A . . s u r f a c e t h a t i s r e s i s t a n t t o
i n f i l t r a t i o n b y w a t e r , i n c l u d i n g
r o o f s , d r i v e w a y s p a r k i n g l o t s ,
s i d e w a l k s , t e n n i s c o u r t s , p o o l
d e c k s a n d c o n c r e t e p a t i o s .
S w i m m i n g p o o l s , w o o d d e c k s a n d
b o a r d w a l k s a r e n o t c o n s i d e r e d
i m p e r v i o u s .
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