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HomeMy Public PortalAboutExhibit MSD 116 - Transcript of May 16, 2015 Public Hearing PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 1 1 METROPOLITAN ST. LOUIS SEWER DISTRICT 2 PUBLIC HEARING 3 MAY 16, 2015 4 5 TESSON FERRY BRANCH LIBRARY 6 9920 LIN FERRY DRIVE 7 ST. LOUIS, MISSOURI 8 9 10 (Hearing start time, 10:02 a.m.) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 2 1 I N D E X 2 PAGE 3 Introduction by Mr. Schneider 5 4 Presentation by Mr. Hoelscher 9 5 Public Hearing Session 6 Beverly Thomas Kapedy 41 7 Fran Ammel 41 8 Sharon Bertram 46 9 Joseph Haberstroh 50 10 John Judd 53, 60 11 D. McArthy 58 12 Conclusion 60 13 14 15 16 (No exhibits marked.) 17 18 19 PUBLIC HEARING FOR THE METROPOLITAN ST. LOUIS 20 SEWER DISTRICT, produced and examined on May 16, 21 2015, between the hours of 10:02 in the forenoon and 22 11:09 in the forenoon of that day, at the Tesson 23 Ferry Branch Library, 9920 Lin Ferry Drive, St. 24 Louis, Missouri, before Suzanne M. Zes, a Certified 25 Court Reporter of the State of Missouri. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 3 1 A P P E A R A N C E S 2 For the MSD Rate Commission: 3 Eric Schneider 4 St. Louis Regional Chamber 5 Nancy Bowser 6 League of Women Voters of St. Louis 7 Mark Schoedel Lutheran Senior Services 8 Russell Hawes 9 St. Louis County Municipal League 10 11 Also Present: 12 Brian Hoelscher Executive Director 13 Lance LeComb 14 Manager of Public Information & Spokesperson 15 16 17 18 The Court Reporter: 19 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 PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 4 1 P R O C E E D I N G S 2 MR. SCHNEIDER: We'll get started. Good 3 morning, my name is Eric Schneider. I am a member 4 of the Metropolitan Sewer District Rate Commission. 5 I'll be presiding over this public hearing this 6 morning. 7 With me today are the following MSD Rate 8 Commission members: Nancy Bowser, Russell Hawes, and 9 Mark Schoedel. 10 The Charter Plan of the District was amended 11 at a general election on November 7th, 2000, and 12 established the Rate Commission to review and make 13 recommendations to the District regarding changes in 14 wastewater rates, stormwater rates and tax rates 15 proposed by the District. 16 The Charter Plan requires the MSD Board of 17 Trustees to select organizations to ensure a fair 18 representation of all users of the District's 19 services on the Rate Commission. The Rate 20 Commission representative organizations are to 21 represent commercial-industrial users, residential 22 users and other organizations interested in the 23 operation of the District including organizations 24 focusing on environmental issues, labor issues, 25 socio-economic issues, community-neighborhood PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 5 1 organizations and other nonprofit organizations. 2 The MSD Rate Commission currently consists of 15 3 members from organizations and institutions 4 throughout St. Louis City and County. 5 I'll take a break here, I didn't introduce my 6 organization. I'm with the St. Louis Regional 7 Chamber. Nancy, could you introduce the 8 organization you represent? 9 MS. BOWSER: I represent the League of 10 Women Voters. 11 MR. SCHNEIDER: Russell? 12 MR. HAWES: The League of 13 Municipalities. 14 MR. SCHOEDEL: I represent Lutheran 15 Senior Services advocating for seniors. 16 MR. SCHNEIDER: Thank you very much. 17 Again, there's 15 -- there's 15 total members from 18 organizations and institutions across St. Louis City 19 and St. Louis County. 20 On February 26th, 2015, the Rate Commission 21 received a Rate Change Notice proposing changes to 22 the District's wastewater rates and stormwater 23 revenues. The Rate Commission adopted Operational 24 Rules and a Procedural Schedule to govern the 25 proceedings on March 4th, 2015. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 6 1 Under the current Procedural Schedule adopted 2 by the Rate Commission, the MSD Rate Commission has 3 until June 26, 2015 to review and make a 4 recommendation to the MSD Board of Trustees as to 5 whether the proposed rates should be approved, not 6 approved or modified with suggested changes and then 7 approved. The Commission has, however, requested an 8 extension from the MSD Board of Trustees until 9 August 10th, 2015, which has not yet been acted 10 upon. 11 The MSD Rate Commission has engaged legal 12 counsel and a rate consultant independent of those 13 used by the MSD staff. 14 Under procedural rules adopted by the Rate 15 Commission, as amended, any person affected by the 16 Rate Change Proposal had an opportunity to submit an 17 application to intervene in these proceedings. 18 Applications to intervene have been filed by the 19 Home Builders Association of St. Louis and Missouri 20 Industrial Energy Consumers. These applications 21 have been granted. 22 Since February 26th, 2015, the MSD Rate 23 Commission has received testimony from MSD staff. 24 The parties have also engaged in discovery requests. 25 Additional testimony from the Intervenors and the PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 7 1 Rate Consultant will be filed. 2 A Prehearing Conference for the purpose of 3 identifying any issues raised by the Rate Setting 4 Documents and the prepared testimony previously 5 submitted will be conducted on the record. All 6 persons submitting testimony may participate in the 7 Prehearing Conference and each participant in the 8 Prehearing Conference shall submit a Prehearing 9 Conference Report describing the issues raised by 10 the Rate Setting Documents and the prepared 11 testimony, together with a brief description of such 12 participant's position, if any, on any issue and the 13 rationale therefor. 14 Ratepayers who do not wish to intervene are 15 permitted to participate in these on-the-record 16 public hearings conducted in nine sessions beginning 17 on May 11, 2015 and concluding on June 9, 2015. 18 The Rate Commission published a Public Notice 19 regarding these proceedings in the St. Louis 20 Post-Dispatch and in the St. Louis American. These 21 Notices contained the time, dates and locations of 22 each of the conferences and hearings. 23 The Public Hearing Session today is for the 24 purpose of permitting the District to present its 25 Wastewater and Stormwater Rate Change Proposal and PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 8 1 to permit any ratepayer an opportunity to comment. 2 We will begin with a presentation by the District, 3 followed by a public comment period. 4 Those wishing to speak should sign in on the 5 sheet provided and they will be called on in the 6 order of the names list thereon. Each of the 7 ratepayers should identify themselves and any 8 organizations represented by such ratepayer. 9 So, again, a couple housekeeping items: 10 If you wish to present testimony please sign 11 in on the clipboard on the back table back there. 12 Again, there's a clipboard right there. Speakers 13 will be recognized in the order of which they sign 14 up. 15 Each ratepayer may have a maximum of ten 16 minutes to speak regarding the proposed rate change. 17 As the presiding officer, I can limit or expand the 18 time should I deem it necessary. Restrooms are 19 located out the door and to the right. 20 Are there any other questions regarding the 21 procedures of this public hearing? 22 Okay. Seeing none, is the District ready to 23 proceed? 24 MR. HOELSCHER: Yes, we are. 25 MR. SCHNEIDER: I will turn it over to PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 9 1 Brian Hoelscher, executive director of MSD. 2 MR. HOELSCHER: Thank you, 3 Mr. Schneider. Again, I'm Brian Hoelscher. I'm the 4 executive director of MSD. This morning we're going 5 to present to you the proposed Rate Proposal that 6 MSD has submitted to the Rate Commission for their 7 consideration. 8 After my presentation the Rate Commission 9 will open the floor for comments. The purpose -- 10 one of the main purposes of this is to receive 11 public comments regarding our Rate Proposal. As 12 Mr. Schneider indicated, there will be an 13 opportunity for you to speak if you wish. 14 At the end of all the proceedings, after this 15 formal public hearing is closed, MSD staff is here, 16 if you have other questions for MSD outside of this 17 Rate Proposal or comments, we have staff here that 18 we can take your questions, either answer them or 19 research them and get back to you. So we'll be 20 available for that after this is done. 21 What you're going to see here is a summation 22 of MSD's Rate Proposal. This is not the entire Rate 23 Proposal. If you go on our website you will see a 24 pretty massive document that contains all of the 25 back-up information for everything I'm going to go PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 10 1 over here. 2 If you have a copy of the presentation, on 3 occasion you will see references at the bottom of 4 the page with regard to appendices or page numbers 5 or tables. Those are references to information 6 that's actually in the Rate Proposal and if you went 7 on our website and looked at the Rate Proposal you'd 8 see all the back-up information for the numbers I'm 9 going to present and information I'll present to you 10 today. 11 To get started, there are two drivers to what 12 MSD is going to -- why they are requesting a change 13 in rates. One is on wastewater. MSD signed a 14 Consent Decree based on a lawsuit from the EPA and 15 the Department of Justice and there are wastewater 16 capital improvement projects, as well as operation 17 and maintenance activities, that we have to comply 18 with in order to meet the requirements of that 19 Consent Decree. That is the driver for the rates. 20 That document indicates activities we have to 21 perform, as well as time frames in which they have 22 to be completed. 23 On the stormwater side, the main purpose for 24 the proposed change, you will hear MSD recommending 25 an elimination of some taxes and the institution -- PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 11 1 the voters to consider a 10-cent-wide District storm 2 tax. The reason for that is approximately one half 3 of our public storm sewer system that MSD is 4 responsible for, inlets, manholes, storm sewers and 5 paved channels, do not have a funding source to 6 provide operation and maintenance. That's primarily 7 the area outside of 270. 8 Also, individuals out there are not paying 9 anything for the operation and maintenance of the 10 system that serves all the local streets here within 11 our municipal boundaries, within the District 12 boundaries. You will find that we're asking the 13 voters to consider to rectify that situation. 14 To start the presentation, you need to 15 remember MSD is two utilities. We provide a 16 wastewater service. We collect used water from 17 sinks, drains, toilets, washing machines. They go 18 down the pipes, go to our treatment plants, we treat 19 them in accordance with state and federal 20 regulations and then discharge them to the local 21 rivers, mostly the Mississippi River, the Missouri 22 River and the Meramec River. 23 MSD's customers pay for this service on a 24 monthly wastewater bill that you receive from MSD. 25 That bill pays for those particular services. The PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 12 1 money collected there can only be used for those 2 services. They can't be used for anything else. 3 We are also a stormwater utility. Any of the 4 rain that does not naturally flow to creeks and 5 streams in the areas or doesn't soak into the 6 ground, MSD has facilities, storm sewer facilities 7 in order to capture that stormwater. Again, that's 8 the manholes, inlets, storm sewers. Mostly you see 9 those along streets as you drive the St. Louis 10 County and St. Louis City area. There's a big 11 portion of that. So we run that system. 12 Also, we are required to address the impacts 13 on local creeks and streams of pollutants that are 14 in stormwater runoff that impact the water quality 15 of those creeks and streams. 16 That stormwater service is a small fee on the 17 monthly bill but a majority, a huge majority of the 18 revenues for those services are on your annual 19 property tax bill. Everybody -- depending on where 20 you live everybody pays something different. We'll 21 review that as part of the proposal but property 22 taxes primarily are what pay for the stormwater 23 services. And, again, those taxes can be used for 24 stormwater. They cannot be used for any of our 25 wastewater issues. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 13 1 Quick review about MSD's Rate Commission 2 again. It was established in 2000 to provide public 3 input on how MSD sets its rates. As described, 4 there are 15 organizations on MSD's Rate Commission. 5 They review all the proposal changes that MSD staff 6 submits to them. Their recommendations will go 7 before our Board of Trustees. They will conduct a 8 similar review of the Rate Commission's 9 recommendations and then the Board of Trustees will 10 make a judgment, a decision as to how to move 11 forward. 12 What we're proposing. This will set the tax 13 rates and the wastewater rates for July 1, 2016 to 14 June 30th, 2020. With wastewater we want to start 15 with where we are currently. Previously the Rate 16 Commission met and our board has approved wastewater 17 rates through June 30th, 2016. Under that proposal 18 we have identified approximately $971 million worth 19 of capital work that needed to be started during 20 that four-year period. Right now it appears we will 21 appropriate $890 million of that work. 22 The capital program within that four years is 23 on time. We have completed all the work required by 24 the Consent Decree and we're also on budget or under 25 budget. Some of it has to do with us -- some PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 14 1 optimization of some of the plans and that also has 2 to do with some of the prices we're getting and it 3 has driven some of the costs down. 4 On the operation and maintenance, again, same 5 message, we're on time and under budget. We 6 requested a revenue need of $716 million. It 7 appears we will be spending $700 million on the 8 operation and maintenance of the wastewater system 9 by June 30th, 2016. 10 Some of those wastewater accomplishments, in 11 addition to the operation and maintenance of the 12 large treatment plants, pump stations, good 13 inspection of 62,000 manholes, rehabilitation of 14 6600 wastewater manholes, inspection of 1900 miles 15 of sewers. 16 And based on an analysis of two very similar 17 storms that happened in the northern part of our 18 District, somewhere around the airport, it appears 19 that the activities over the past four to five years 20 has resulted in a 66 percent reduction in the amount 21 of overflows we have coming out of the system, as 22 well as a 66 percent reduction in the number of 23 basement backups we have in the system. So we are 24 seeing good results from the work we've been doing 25 so far. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 15 1 What MSD is proposing, through MSD Project 2 Clear to address the regulatory requirements in the 3 Consent Decree, one is to get the rain out. The 4 main focus of the Consent Decree for the wastewater 5 is the fact that our system overflows, be it to the 6 environment or to basements in the area. 7 The main reason for that problem is that 8 stormwater, either that's not supposed to be there 9 or too much is getting in the system, is using up 10 the capacity and causing overflows in the system 11 that cause overflows or basement backups. 12 The cheapest way to resolve this issue is to 13 get the rain out, don't let the stormwater go in the 14 system in the first place. The problem resolving is 15 a wet weather issue. If it is not raining, and 16 let's assume there's not problems in the system such 17 as somebody flushing grease down the system to block 18 it or a line collapses or something like that, if 19 it's not raining, all the wastewater you put down 20 the system goes through the pipes, gets treated by 21 the plants and gets properly discharged after 22 treatment. 23 There are no problems with our system under 24 dry weather. The problem is wet weather. And the 25 best solution is to get the rain out as much as we PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 16 1 possibly can. It is four to five times cheaper to 2 do that than to make the system bigger. 3 Repair and maintenance. Start a regular 4 repair and maintenance schedule on the sewer systems 5 to make sure they continue operating for another 6 hundred and seventy years since that's the age of 7 the oldest sewers we have and make sure it continues 8 to rehab them, make sure it continues to function 9 and in some cases building system improvements where 10 needed in order to provide a little bit of 11 additional capacity. 12 We want to do this in a financially 13 responsible manner and maintain the stability of the 14 District. We've done this, you'll see in our 15 proposal, we have taken what the key parameters are 16 to maintain a AA bond rating. And for this four 17 years, as well as an 8-year potential projection, 18 we're proposing a Rate Proposal that will make sure 19 MSD maintain -- or that we believe will help MSD 20 maintain a AA bond rating. Currently MSD has a AAA 21 bond rating from S&P and AA1 and AA plus from 22 Moody's and Fitch. 23 Next page is what the main cost components 24 are within the next four-year proposal. We are 25 proposing the start of $1.5 billion worth of capital PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 17 1 work in the next four years. It's broken out into 2 years as you see here. 2017 to 2020 culminating in 3 the start of approximately $1.5 billion worth of 4 work. 5 We're estimating an operation and maintenance 6 cost of $736 million during that four-year period 7 and we're also having to pay for $477 million of 8 debt service. Some of that debt service is from 9 past bond issues that were previously authorized by 10 the voters. You will find in here we will be asking 11 the voters to consider the authorization of an 12 additional $900 million worth of bonding authority. 13 We have put in the cost of that debt service into 14 our Rate Proposal also. 15 On the additional use of debt we're proposing 16 to fund those next four years at $1.5 billion 17 through two funding sources. One is $415 million of 18 cash financing. That's taking the rate you pay us 19 directly and taking that cash and spending it on the 20 capital program. 21 The rest is bond financing of $1.5 billion. 22 That consists of $200 million of bonding authority 23 that will be left after this four-year cycle, as 24 well as a request for the ratepayers to allow an 25 additional $900 million of bonding authority. That PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 18 1 would bring the total debt authorized by the voters, 2 if they approve that, to $2.62 billion. 3 In all cases the revenues from bond sales and 4 borrowed monies is all spent on capital work. It is 5 not used on our operating budget to pay for 6 materials, equipment or personnel. It's just used 7 on projects. 8 What you will see and what you'll get out of 9 that proposal, there will be about 600 projects that 10 will be started of all kinds. 230 of those will be 11 construction projects. We anticipate it will remove 12 39 of the overflow points located in the sanitary 13 sewer system that have to be removed according to 14 the Consent Decree. We will start the design of 24 15 miles of storage and conveyance tunnels. There are 16 locations where getting the water out on the front 17 end, keeping stormwater from entering the system is 18 not the best answer. 19 Some cases, as the systems overflow, we will 20 intercept those flows, store them in large storage 21 facilities, such as underground tunnels, and then 22 when the storm has passed we will feed those flows 23 to the treatment plant and make sure they're treated 24 before they enter the environment. 25 Page 11 is a map of the projects. So every PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 19 1 blue dot is one of the projects we plan on proposing 2 over the next four years. I know it's difficult to 3 read, especially with the documents you have in 4 front of you, but within that map, within that dot 5 is a number. That number references a project. 6 Each project has a description of what it's going to 7 do, what it's going to resolve, what the cost is and 8 when the work will be done. 9 In our Rate Proposal you can see that map, 10 you have the numbers and in the Rate Proposal there 11 is a spreadsheet of all those projects. What we've 12 provided here today, it's on the wastewater side if 13 you noticed, we have a copy of the map over here on 14 the board. We also have a copy of that spreadsheet. 15 So if you are interested today in looking at 16 one of those projects and seeing exactly when it 17 will get done and how much it costs, you can do 18 that. All that information is also in our Rate 19 Proposal that's on the website. 20 And, as I mentioned before, if you look at 21 the bottom, Appendix 7.2.2, that's at the bottom, 22 that's a reference to the appendix page that's in 23 our Rate Proposal. So if you want to go online and 24 look at our Rate Proposal you can see all the 25 details behind that information. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 20 1 We also have proposed wastewater operational 2 costs. Again, besides just the operation and 3 maintenance of all the treatment plants and pump 4 stations we plan on inspecting 60,000 manholes, 5 rehabilitating 6,000 manholes, inspecting 1600 miles 6 of sewer, cleaning 3800 miles of sewer and the 7 rehabilitation of approximately 360 miles of sewer. 8 So, bottom line, what is the cost impact, 9 proposed cost impact to our ratepayers? There are 10 two options and which option we move forward with 11 will be up to the voters in 2016 to tell us which 12 way to fund this program. 13 If you look on the left-hand column under 14 Option A, assuming funding by cash and debt, MSD 15 will ask the voters to consider an authorization of 16 an additional $900 million of bonding authority. 17 That will be used to start the $1.5 billion worth of 18 capital work over this next four-year period that's 19 required by our Consent Decree. And you'll see the 20 average single-family sewer bill. That's the impact 21 for the average family in St. Louis' -- in our 22 service area. 23 Fiscal 16, those costs are already set in the 24 previous cycle. The average customer will pay 25 $40.72 per month. Over the next three years we're PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 21 1 proposing an increase of approximately 10 percent 2 per year to get to $62 per month in 2020. 3 Where does that put us with everybody else? 4 Sanitary sewer rates throughout the country are 5 between 15 and $135 a month depending on where you 6 live and the higher ones are obviously driven by 7 Consent Decrees in cities that entered into with the 8 federal government. 9 On the right-hand side is Option B, funded by 10 cash. The voters will have the option of deciding 11 not to authorize additional bonding authority. So a 12 zero use of additional bonds we still have to start 13 the $1.5 billion worth of capital work that is 14 required by the Consent Decree and the Department of 15 Justice and EPA. 16 You see what happens to the average 17 single-family sewer bill. Again, Fiscal 16 still 18 $40.72. 17 looks the same under both scenarios 19 because we're primarily using the $200 million of 20 remaining bonding authority, culminating in Fiscal 21 20 with an average monthly rate of $96 per month. 22 Stormwater service. There's two ways. Also, 23 one, I need to explain to you what the current 24 service looks like for stormwater in the area and 25 what we're proposing. So this chart is a PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 22 1 description of what the current stormwater services 2 are. 3 I will start at the bottom on the pink area, 4 which is primarily outside 270, 255. If you live in 5 that area you pay MSD a 24 cent per month charge on 6 your wastewater bill, as well as a property tax of 7 approximately 2 percent per year on your annual 8 property tax bill. 9 With that, the area receives -- allows us to 10 comply with state and federal requirements regarding 11 stormwater in the area, it allows us to collect 12 stormwater issues and do some preplanning and make 13 sure we take those into consideration when there's 14 redevelopment, also allows us to do some emergency 15 response if necessary. 16 Those emergencies consist of the type where 17 erosion in a creek is ready to require -- permit a 18 home to fall into a creek because the erosion has 19 approached the home. 20 We do not maintain the public storm sewers in 21 the area. There are no revenues for that and we do 22 not do any stormwater projects. There are no 23 revenues for that either in that red area. 24 If you live in the yellow area shown on the 25 map you pay the 24 cent per month fee on your PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 23 1 wastewater bill for stormwater, you pay a 2 cent 2 property tax on your property tax bill, you also pay 3 a 7 cent property tax on your property tax bill to 4 MSD. 5 For that we can do all the regulatory work 6 that's shown in the pink. In addition, we are able 7 to pretty well operate and maintain the public storm 8 sewer systems throughout the area: the inlets, 9 manholes, storm sewers, and paved channels that are 10 in those areas. 11 One thing there is no funding for is funding 12 for stormwater projects to solve issues such as 13 erosion or flooding. There is no funding for that 14 and no work is done in that way. 15 If you live in the green area that's shown 16 here you pay a 24 cent per month fee, 2 cent 17 property tax, 7 cent property tax and, depending on 18 where in that green area you live, up to another 10 19 cent property tax. 20 With that, you receive all the regulatory 21 work as I described in the pink area, we maintain 22 the public storm sewer system and there are funds to 23 do projects to resolve stormwater issues such as 24 flooding or erosion. 25 Yes, sir? PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 24 1 MR. McARTHY: You're talking property 2 tax in those percentages? Those are percentages 3 based on the value of your home, so if your home 4 goes up your fee collection will actually go up? 5 MR. HOELSCHER: Correct, and if they go 6 down it goes down. Yeah, those are property taxes, 7 just like all your other property taxes on your 8 property tax bill. 9 So that's how things are set up. You can see 10 here, depending on where you live in the District, 11 you pay a different amount for stormwater service 12 and that's directly related to the amount of 13 stormwater service you receive. 14 What is the average cost per customer? We've 15 taken the average home throughout our District, 16 we've kind of put that into numbers. So if you live 17 in the pink area you're paying the 24 cent fee and 2 18 cent tax and just get the regulatory work done, no 19 operation and maintenance of the stormwater system, 20 no projects. The average customer on their property 21 tax bill pays an annual cost to MSD of $8 per year 22 for that service. 23 If you live in the yellow area and pay the 24 24 cent fee, the 2 cent property tax and the 7 cent 25 property tax, we're doing the regulatory work and PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 25 1 operate and maintain the storm sewers themselves. 2 The average customer on their annual property tax 3 bill is paying us $26 per year for that service. 4 If you live in the green area you're paying 5 us the 24 cent fee, 2 cent tax, 7 cent tax and up to 6 another 10 cent tax. The cost for the average 7 person there is $53 per year on their annual 8 property tax bill and for that they get all the 9 services we provide: regulatory services, 10 maintaining the public storm sewer system, and we do 11 projects within the green area to resolve flooding 12 and erosion problems. 13 The next slide is kind of a description of 14 the main issue that MSD feels it wants to resolve in 15 this Rate Proposal. We have mentioned the 2 cent 16 property tax and you've seen in the pink area the 17 idea of doing all the regulatory work having to do 18 with stormwater quality and the other issues with 19 stormwater. 20 That 2 cent tax, as you saw, is collected 21 District-wide. Most of the costs that come out are 22 plan review and permitting. We review plans, we 23 make sure they're going to meet the regulatory 24 requirements that we have laid down, make sure that 25 new development doesn't cause flooding downstream, PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 26 1 make sure we address water quality issues, the 2 sampling and tracking of all the water quality of 3 all the local creeks and streams throughout the area 4 and, again, some emergency response. That's paid 5 for out of the 2 cent tax and we're able to do that 6 District-wide. 7 What that looks like in that previous red 8 area, what we've done on this next slide is taken 9 the yellow and green area and we actually grayed it 10 out. So what you see is what was the red area. 11 This is kind of representation of what that 2 cent 12 tax takes care of. 13 If you take a look, all the little blue lines 14 are creeks located throughout that area. There's 15 1154 miles of creeks in that red area that MSD is 16 responsible for the impact of stormwater runoff on 17 those creeks and streams. 18 Also, each green dot, 2,638 of them, 19 represent a best management practice or rain garden. 20 These can be basins to resolve volume. These can be 21 rain gardens to take care of stormwater quality. 22 MSD permits these, polices that they're taken care 23 of properly by the property owners and make sure 24 that everything is functioning accordingly, as well 25 as pays for the checking of anybody who might need PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 27 1 to add facilities. All that is paid for with the 2 2 cent tax, that we're able to do that service in the 3 outer part of the District. 4 The next slide is a representation of what 5 MSD feels it needs to get funding provided for. 6 Again, in that red area every one of those black 7 lines is a public storm sewer system owned by MSD: 8 inlets, manholes, stormwater sewers, paved concrete 9 channels. It represents 1,363 miles of storm sewer, 10 approximately one half of the storm sewer system 11 that MSD owns. 12 Operation and maintenance of that system is 13 not currently funded. If an inlet gets busted or 14 broken we cannot address it. If an inlet -- if a 15 storm sewer's joint fails and we have sinkholes in 16 somebody's backyard or the street, we cannot address 17 it by fixing the sewer. If the discharge of the 18 sewer causes some kind of erosion issue in a 19 backyard, creek or stream, we cannot address that. 20 There are no monies. 21 Again, only in the case of severe safety 22 issues would we go out and spend a few dollars in 23 order to resolve those. We're looking to resolve 24 the funding of that. 25 So two things happen with the proposed tax. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 28 1 One, we have a funding source for that and the other 2 piece is if there are individuals, as you saw 3 previously, who live in those areas, they're not 4 paying for the use District-wide of the public storm 5 sewer system. If you drive on a local street in 6 West County, North County, South County, Mid-County, 7 the City, MSD is providing a service by pulling the 8 stormwater off those streets and disposing it so the 9 streets can work properly. Folks who live in that 10 area and use that service are not paying for that 11 service currently. 12 What we propose to change. We are proposing 13 a 10 cent District-wide property tax to correct that 14 deficiency and I'll go down the details of what 15 happens to all those previous taxes. If that goes 16 through we'll have operation and maintenance costs 17 of approximately $91 million over the next four 18 years to operate and maintain the public storm sewer 19 system and allows us to do $100 million of capital 20 projects starting this year and going through 2020. 21 And, for the first time, capital projects to address 22 stormwater issues such as erosion and flooding can 23 occur District-wide. 24 Again, what are the changes? As I described 25 earlier, it's the maintenance of the public storm PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 29 1 sewer system and also provides a start for something 2 we never had in the past, the ability to resolve 3 stormwater issues throughout the entire District. 4 Slide 23, what are we proposing? In Fiscal 5 Year 2016 right now we believe our operation and 6 maintenance costs for the public storm sewer system 7 will be about $16 million. By taking over and 8 actually operating and maintaining the system in the 9 area outside 270 we're anticipating that our costs 10 will go up to about $24 million per year or 11 $23 million per year as you see on the chart. 12 That's approximately a 50 percent increase and 13 that's to provide full operation and maintenance. 14 So we're increasing our prices. The cost 15 will increase 50 percent but we're doubling the 16 amount of resources, the amount of facilities that 17 we'll have to operate and maintain. There's a 18 benefit from taking over that size facility. It 19 doesn't come at a one to one cost. 20 We'll also be able to do stormwater projects 21 District-wide for the first time. I'm going to kind 22 of go through these and help describe what they are 23 and what they look like. 24 This is the same map that you saw on the 25 wastewater side kind of with the circles, the same PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 30 1 thing, there's a number inside those circles. It 2 describes a problem -- on the spreadsheet it 3 describes the problems, what the solutions are, what 4 the costs are and when it's going to get done. We 5 have a copy of that map over here. 6 There's also a spreadsheet. If you look up 7 that number you'll be able to see where is this 8 project, what it's resolving, what the cost is. We 9 do have a copy of that spreadsheet here. You can 10 look at that today or, if afterwards, if you like, 11 you can take a look at those issues online through 12 the Rate Proposal. 13 Yes, ma'am? 14 MS. BERTRAM: Is there someplace where 15 there's like a street overlay? Because I see myself 16 as either being a green or a yellow down there by 17 270. I want to know what color I am, so I know what 18 to... 19 MR. HOELSCHER: Yeah, I think if you 20 would ask us that afterwards you will find that 21 these boundaries follow watersheds. They don't 22 follow municipal boundaries. For that reason, for 23 us to look at that, we can take your information 24 afterwards and either get you the question 25 immediately or get right back to you to let you know PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 31 1 which area you're in. 2 MS. BERTRAM: Okay. Because I would 3 like that. Thank you. 4 MR. HOELSCHER: Sure. We can do that. 5 So what do these projects consist of? If 6 you're in the green area we will complete over 7 that -- through 2020, 64 projects valued at 8 approximately $25 million. Most of these projects 9 would be done anyway. 10 Folks who live in that green area are 11 currently paying that extra tax. Now, there are 21 12 separate taxing areas within that green area. 13 Whatever we collect in a taxing area we can only 14 spend in that taxing area. 15 These projects are a little bit more than 16 what we do otherwise because some of that green 17 revenue -- revenue from the 10 cent property tax was 18 going towards O&M of the public storm sewer system. 19 But kind of either way, under either proposal, we 20 will do pretty much those projects throughout the 21 green area. 22 In the yellow area we're anticipating 47 23 projects at a cost of seventeen and a half million 24 dollars. We have never been able to do projects 25 there. This 10 cent property tax resolves an PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 32 1 accounting issue with the various funds we have in 2 taxing districts and what the use of those funds 3 are. This 10 cent tax will clear that up. 4 Of those 47 projects, dollar-wise, about half 5 of them are done in the city. The other half are 6 done in near northwest and South County and they 7 will resolve, again, stormwater flooding issues and 8 stormwater erosion issues. 9 In the red area there are 60 projects for 10 $7.5 million. Again, we've never done projects in 11 the area primarily outside of 270. This new revenue 12 would allow us to do that. Those monies come from 13 the difference between the tax we're asking for and 14 what the first year of operation and maintenance for 15 the public system. We will be proposing a 16 10-cent-wide District property tax. Right now we 17 anticipate about 8.8 cents of that having to be used 18 for operation and maintenance of the public storm 19 sewer system. 20 That will eventually erode over time with 21 inflation but we want to use those extra dollars to 22 try and solve stormwater problems in an area, the 23 red area you see here, where we haven't been able to 24 address any stormwater issues and allow us to do 25 some stormwater projects to at least start to PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 33 1 resolve some of those issues. 2 So here is summation of what would happen to 3 all the various revenue sources. If you live in the 4 green area you're paying between a 5 and 10 cent 5 tax, again, depending on which one of those 21 6 taxing Districts within that green area. MSD will 7 propose to set those taxes to zero and stop 8 collecting them. 9 I mentioned the 7 cent property tax being 10 paid by the those folks in the yellow and green 11 area. This 10 cent -- proposed 10 cent property tax 12 would replace that 7 cent property tax and it would 13 go away. It would no longer exist. 14 District-wide we are collecting a 2 cent 15 property tax for regulatory issues to MSD. We will 16 be leaving that in place and we will -- that 17 currently funds almost exactly our current 18 requirements for District-wide stormwater regulatory 19 services, so we're not proposing -- not recommending 20 or not presenting any changes to that tax. 21 And then proposing a 10 cent District-wide 22 property tax in order to resolve and provide the 23 program you saw that I just presented. Also, the 24 24 cent per month charge on our wastewater customer's 25 bills for stormwater, that also will be replaced by PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 34 1 the 10 cent tax. 2 So what does that mean to the individual 3 property owner? Again, getting down to dollars, 4 we've broken it down by the three colored areas we 5 have. 6 If you live in the green area, right now the 7 average property value is $184,500. Right now you 8 are paying us an average of $62 per year on your 9 property tax bill for all the stormwater services. 10 If this proposal goes in place the average property 11 tax bill will reduce by $20 per year resulting in an 12 average property tax bill to MSD on your property 13 tax of approximately $42 per year. 14 For your overall property tax bill in that 15 area that's approximately a decrease of one half of 16 one percent of your overall property tax bill. MSD 17 is a very small portion of the property taxes that 18 are paid on an annual basis, so it doesn't have a 19 whole lot of impact on your overall bill. 20 If you live in the yellow area, currently the 21 property values in that area are approximately -- 22 are averaging $70,800 per property. The average 23 person in that area is paying MSD $12.50 per year on 24 your property tax bill for the stormwater services 25 in the yellow area. This proposal would result in PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 35 1 an increase for the average person of $3.60, 2 resulting in an average annual property tax bill to 3 MSD of $16.10 per year on your property tax. 4 For the average property tax bill, again, 5 we're a small portion of it, that would be an 6 increase of approximately .3 percent to your 7 property tax bill or for every thousand dollars of 8 property tax an additional three dollars. 9 Finally, if you live in the red area, and as 10 I discussed before this is where we're proposing to 11 now start providing services if we get a revenue 12 source, the average property value in that red area 13 is $266,700. Currently the average person in that 14 area is paying MSD $10.50 per year on their property 15 tax bill for stormwater services. This proposal 16 would raise that approximately $50 per year 17 resulting in the average annual property tax bill of 18 $60.60 per year for stormwater. 19 Change in the overall property tax bill for 20 those in the red area is an increase of 1.2 percent 21 or approximately $10 for every thousand dollars of 22 current taxes paid. 23 What is the overall impact to the customer? 24 You go on to Slide 30, two columns, the left-hand 25 side is assuming that the voters authorize PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 36 1 additional bonding authority. The right-hand column 2 is if they do not. On the left-hand side, again, 3 under the current rates and these will be in place 4 in Fiscal 16, the average single-family customer 5 right now pays MSD $522 per year for all the 6 services we provide, that's wastewater and 7 stormwater. 8 With the increases we're proposing that would 9 go up to $771 per year for all the wastewater and 10 stormwater services that MSD provides. 11 The right-hand column is assuming the 12 residents do not authorize additional bonding 13 authority for MSD. If they do, again, Fiscal 16 14 there's the average annual cost for the customer is 15 $522 per year, that would then go up to about $1200 16 per year, per customer, for all the services we 17 provide in 2020. 18 The next page, MSD does offer a low income 19 program, customer assistance program. If you 20 qualify for that program your cost for MSD services 21 is approximately half of other individuals. If you 22 compare this chart to the one I previously showed 23 you, therefore, see the average annual costs are 24 about half of what the costs are for somebody who 25 does not qualify for the customer assistance PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 37 1 program. 2 What we would be expecting in the future. 3 Again, MSD's staff submitted a Rate Proposal to the 4 Rate Commission on February 26, 2015 to consider. 5 There will be a wastewater increase under the past 6 decision that will occur on July 1, 2015, bringing 7 rates up to that final number I showed for Fiscal 8 16. 9 The Rate Commission's recommendations are due 10 to our Board of Trustees on August 10, 2015. Our 11 Board of Trustees will then spend October through 12 December considering the recommendations from the 13 Rate Commission and then they will decide how to 14 move forward. 15 Before I talk about what those votes look 16 like, again, the Rate Commission is here to accept 17 formal comments today. There are other ways to 18 submit formal comments to the Commission. You can 19 email Janice Fenton at stlmsd.com, as we have shown 20 here, or if you want to mail comments we'll make 21 sure those comments get to the Rate Commission as 22 well. 23 So what will we be asking the ratepayers to 24 consider because both of these proposals require a 25 vote? For the wastewater side MSD will be asking PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 38 1 the public whether or not they want to authorize an 2 additional $900 million of additional bonding 3 authority to pay for the capital program. 4 If you say yes, MSD will issue an additional 5 $900 million of bonds and you end up with rates 6 going up to $60 per month in 2020. If the public 7 decides not to authorize additional bonding 8 authority, costs will go up per month for the 9 average person to about $96 per month in 2020. 10 It's the same decision as if you buy a car or 11 buy a house. If you do authorize additional bonding 12 it will keep rates lower now but for every dollar 13 you borrow you will have to pay three dollars back 14 later. 15 If you don't authorize bonding, rates will go 16 up much faster now but you will have paid for 17 everything and as the program peaks in 2023 or 2024, 18 the costs start going down. Those costs, your 19 annual costs, can go down much quicker if you don't 20 borrow the monies. It's a decision for the voters 21 to decide and we will proceed whichever way the 22 voters tell us to move forward. 23 Yes, sir? 24 MR. McARTHY: How long are the bonds 25 issued for? PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 39 1 MR. HOELSCHER: Right now our policy 2 requires an average of 30-year bonds. 3 Traditionally, what we've been looking at, we will 4 issue up to 30-year, 35-year bonds on the open 5 market. We also have the option of borrowing money 6 through the sale of bonds from the State of Missouri 7 through the state revolving fund. Those have 8 20-year maturities but they have much reduced 9 interest rates. And so we will do whatever is more 10 cost-effective for the District to move forward. 11 The second thing we'll ask folks to vote on 12 is stormwater. The proposal in front of the voters 13 will be whether or not to implement a 10 cent 14 District-wide property tax. If you vote yes, you 15 will have the scenario I presented before, thus 16 being able to do O&M work on the storm system 17 District-wide, the changes in stormwater costs 18 between the green, yellow and red area and we would 19 then move forward with those services. 20 If the voters vote no, we will maintain the 21 current stormwater service levels that we're 22 currently providing. Those votes, again, will occur 23 in 2016. Exactly when they will occur has yet to be 24 determined. Whether we would vote on them on the 25 same day is yet to be determined. But when they do PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 40 1 come around and the vote is up, MSD will go out and 2 we will not advocate but we will provide the same 3 information to everybody to let them know what the 4 results are of a yes vote and what the result is of 5 a no vote, so they can make as educated of a vote as 6 possible. 7 That ends MSD's presentation. As the Rate 8 Commission previously mentioned, they will open the 9 floor for any public comment that you wish to make 10 to the Rate Commission and I'll turn the meeting 11 back over to Mr. Schneider. 12 MR. SCHNEIDER: Okay. So now we're open 13 up for public comment. I will -- we have the 14 sign-in sheet here, so we'll take the public comment 15 in order of people who signed in. I apologize if I 16 mispronounce any names here but I'll just read them 17 off to see if you have a comment. You can come 18 forward or just stand I guess. I don't think you 19 need to come forward as long as we can hear you. 20 Beverly Thomas Kapedy? Do you have a 21 comment? 22 MS. KAPEDY: No. 23 MR. SCHNEIDER: Fran Jammel? 24 MS. AMMEL: Ammel. 25 MR. SCHNEIDER: Could you stand? Do you PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 41 1 mind standing? 2 MS. AMMEL: I live along Sappington 3 Creek where the erosion is awful. I think unless 4 you live in an area where you have stormwater 5 erosion people don't understand the impact on the 6 personal property of the residents. We have to buy 7 flood insurance because of it. 8 And I'm just wondering how you're going to 9 get people who don't have that kind of impact on 10 their personal property to understand why this 11 personal property tax is important for everybody 12 because if my property goes down in value so is 13 everybody else's property. 14 I think if I had to sell my house right now 15 it would be hard to do to get a good price because, 16 one, you can see the erosion in my yard. Two, they 17 know nobody is doing anything about it. Thirty 18 years ago I was told that in the next 20 years that 19 problem would be fixed and it's worse than ever. 20 And I'm still being told by MSD, because 21 they're doing sewer through my backyard now, that 22 there's still no money for that, the plans are there 23 but nothing is going to be done about it in the very 24 near future. 25 How are you going to tell the general public PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 42 1 how important this is for everybody? Because, you 2 know, my property value I'm sure is not what it 3 should be. You know, if I had to sell my house and 4 people know I have to pay flood insurance of upwards 5 a hundred dollars a month because of this problem, 6 it's going to impact more than just me. It's going 7 to impact my neighbors and the general area that I 8 live in. 9 MR. HOELSCHER: Mr. Schneider, if you'd 10 like, I can go over the past communication MSD has 11 done and will do specifically around this Rate 12 Commission if that would be worthwhile. 13 MR. SCHNEIDER: Yeah, sure. 14 MR. HOELSCHER: And I think it had to do 15 with informing people what this issue is. 16 MS. AMMEL: Well, the people that it 17 doesn't directly impact. 18 MR. HOELSCHER: Yes, correct. The issue 19 does impact everybody, I will tell you that. We 20 started with communications with the local municipal 21 governments about two years ago. While not 22 everybody's problem is the same, one of the biggest 23 issues in that red area you saw, which do they have 24 stormwater problems, inlets are not being fixed, 25 sinkholes are still remaining, erosion is happening PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 43 1 at the end of storm sewers, so while it looks 2 different there is a problem everywhere but it is an 3 issue of who really feels the impact. 4 So we started communications with the 5 government officials about a year and a half ago. 6 MSD did that. Prior to the start, right after we 7 submitted the Rate Proposal, we had a series of 8 meetings like this throughout the entire District to 9 help people understand what it was we were 10 proposing. 11 MS. AMMEL: But look how many people are 12 here. 13 MR. HOELSCHER: Yes. Yeah, that is 14 difficult. You have these Rate Commission hearings. 15 Our board meetings are public. We will go out -- 16 and in the vein of what you asked, people start 17 actually having interest as a whole when something 18 is going to show up on a ballot. MSD will provide 19 communications at that time as well to help explain 20 to everybody what's going on. 21 Probably a lot more than we have in the past 22 you will find us on TV. You will find us on the 23 radio, written press, social media. I think some of 24 you may have seen the billboards that we've taken 25 out for these meetings. And, I agree, you can see PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 44 1 by the attendance sometimes it's hard to reach 2 people. We're doing everything we can under every 3 possible source to try and get to people and help 4 them understand what this issue is. 5 MS. AMMEL: Well, I'm here because it 6 directly affects me but, typical of most people, if 7 it doesn't directly affect them, why bother? So 8 that's why maybe all of us are here but there aren't 9 very many people that think it's an issue at this 10 point. 11 And I guess another question is I've read 12 where there are grants for things along the 13 stormwater creeks to work in conjunction with 14 Missouri Botanical Gardens. What can I do? And 15 I've asked someone from MSD from the creek 16 maintenance to come out and talk to me. I had that 17 phone call a week or so ago and he was supposed to 18 get back to me last week to set up a time. I want 19 to know what I can do, myself, to prevent further 20 erosion until you guys can do something. 21 He never called me back, so I've yet to meet 22 with anybody but I would very much like for someone 23 to come out and look at my problem and tell me can I 24 do anything as a property owner. I've been told 25 it's going to take approval of the Army Corps of PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 45 1 Engineers and two other entities to get approval to 2 do anything but I need to know what I can do until 3 you guys can do something. 4 MR. HOELSCHER: I apologize it has taken 5 so long to get back. After the meeting if John -- 6 is Mr. Sprague here -- he's our director of 7 operations, give him your name and number. We'll 8 make sure we get back with you. That is one of the 9 things we want to do, is while there isn't funding, 10 under that 2 cent fund we are able to go out and 11 tell folks here's some of the things you can do on 12 your own and we'll make sure we get back to you for 13 that. 14 MR. SCHNEIDER: Thank you for your 15 comments. Next on the list is Sharon Bertram. Any 16 comments? 17 MS. BERTRAM: Well, thank you for having 18 this meeting and I'm glad that all of us are here 19 that are here. It is truly sad that there aren't 20 more people to attend these meetings. And, you 21 know, just by chance I found this in the local South 22 County paper and, you know, it's like where is the 23 publicity about this? It needs to be out in 24 newspaper and I know people don't read whatever but, 25 I mean, this is important stuff. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 46 1 Okay. And so my eyes perked up when I saw, 2 oh, as of 2015 July 1, single-family homepayer will 3 pay $40.72. Yikes. That's a big increase. So now 4 I understand that that's part of the previous 5 increase. Okay. But that really isn't stated quite 6 effectively enough in this. It's really not, to me, 7 it's not. It kind of all got lumped together. 8 And then I read that in two more years my 9 rate is going to go up $20. Five dollars a year. 10 Okay, that's a big increase. Laclede Gas is getting 11 $7 more each month from me. Ameren asked for 10. 12 They're only getting $7 more a month. You know, and 13 granted it's all good stuff, we need the work, but, 14 you know, can't you get together and talk about 15 this? I mean, if I was just on social security I 16 would be apoplectic and be having anxiety attacks. 17 You can't do this to people. It just seems 18 suddenly. You know, like $5 a year is not bad but 19 now I find out I'm going to be paying $13 more each 20 month next month right away. 21 I just think something has got to be -- can't 22 you -- can't those Ameren, you, Laclede Gas, get 23 together and talk about it? I mean, good grief, 24 that's 12, 19, almost a $30 increase each month that 25 is either present or coming, you know, next month. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 47 1 I mean that's a lot of money for people on fixed 2 incomes and I don't -- you know, I think a lot of 3 this board-people stuff, I don't think you realize 4 what that does to people in the trenches. You know, 5 that's a couple cans of soup each month. That might 6 be a meal that people would divide in half. 7 Perhaps you might want to go to church 8 meetings, civic meetings, you know, to try to get 9 this word out because I think this is really 10 important stuff. And, you know, I'm understanding a 11 lot more now than I did previously. So I think what 12 I'm understanding is like I'm paying something each 13 month for stormwater and wastewater, also, I'm 14 paying on my property tax bill that I get each year. 15 Okay, so I got that new understanding today. Thank 16 you. 17 Also, when is this bond issue going to be put 18 on the ballot? 19 MR. HOELSCHER: Yeah, I think I 20 indicated there will be an election sometime in 21 Calendar 2016. We have to wait for the whole entire 22 process to end. Exactly what date it will be, we 23 don't know now, but there will be a lot of community 24 education on the part of MSD and lot of advertising 25 as to when that's put on the ballot. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 48 1 MR. SCHNEIDER: Mr. Hoelscher, wouldn't 2 it be fair to say it would be probably more in the 3 April/June time frame? 4 MR. HOELSCHER: Yeah, true. Probably 5 April is the first time, April 2016. 6 MS. BERTRAM: Please don't put it on in 7 August when, you know, maybe 11 percent of people 8 vote. I think it has to be much more of a fair 9 representation. 10 MR. SCHNEIDER: Right now this is the 11 Rate Commission process, we review the Rate Proposal 12 and then it goes to the Board of Trustees. As 13 Mr. Hoelscher said, that's kind of a January/March 14 time frame for the Board of Trustees. 15 MS. BERTRAM: That sounds sensible. And 16 I've been active in working -- well, either with or 17 against Ameren in the wastewater or the -- what they 18 put into the river from the Meramec plant and so 19 when you said the water is treated with chemicals 20 and put into the Mississippi, I certainly hope that 21 the chemicals you're using to treat the wastewater 22 are, you know, positive, good chemicals that aren't 23 destroying our river water as opposed to what Ameren 24 is doing with coal ash. 25 MR. HOELSCHER: I will let you know PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 49 1 we're governed by EPA on what we can discharge. 2 What we discharge is cleaner than the Mississippi 3 River we discharge into. 4 MS. BERTRAM: Glad to hear that. Thank 5 you. I just urge -- you know, it's all good stuff, 6 we know we got to take cake of the water and that 7 but, you know, big increases just cause panic among 8 people. Luckily I have a pension in addition to my 9 social security but it's still a lot of money, still 10 a lot to think of. 11 And, you know, I think emphasizing that, you 12 know, the $15 increase or whatever is a result of 13 the previous -- you know, it's the end of the 14 previous year, couple years of upgrading, okay, so 15 it's not connected to the new proposal that you're 16 talking about. Thank you. 17 MR. SCHNEIDER: Thank you for your 18 comment. Thank you very much. 19 Joseph Haberstroh? 20 MR. HABERSTROH: Yeah, I would like to 21 know, you know, right to her, we're seeing all of 22 this for the residents, what about all the 23 businesses and stuff? We never hear, what are they 24 paying? These apartment complexes, the malls, the 25 runoff, the schools, everything, those pay a decent PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 50 1 thing. Some of them with their taxing fund. 2 Churches, everybody, what are they paying? What 3 percentage are you getting from them? Why are we so 4 high? 5 You say it's going to go up, I got two of my 6 bills, mine is $48 right now. I have no stormwater 7 sewers around my home or anything. That's getting 8 expensive. Every month you come in, you know, you 9 go, "God, sewer, $48. Do I use that much?" 10 You see the water company, less than a penny 11 per gallon, you know, a cent for eight gallons or 12 so. I mean, you don't inform the people what are 13 the other places paying, what's all happening with 14 this money. Why are we proposed to do it all? You 15 know, they say there's a million people in St. Louis 16 County, what about the businesses? 17 MR. HOELSCHER: I think if you look on 18 our Rate Proposal -- for this presentation purposes, 19 since most of the folks attending are residents, we 20 have given you the residential number. Businesses, 21 factories, all of those folks have an equivalent 22 increase and in some cases more because of the type 23 of waste they discharge. So while we're referencing 24 individuals, if you look into the Rate Proposal we 25 give the average increases which will be identical PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 51 1 for businesses as well. 2 And I think, just so you understand, we gave 3 average costs. If your current bill is $48 per 4 month for wastewater that's based on the amount of 5 potable water you use during the winter. So we're 6 basing that on how much water you're actually using 7 that then would go down the sewer. 8 MR. HABERSTROH: And I understand that 9 but then all of sudden they start saying you're 10 using GPS now to measure our roofs, our driveways 11 and everything. I want to tear my asphalt up and 12 put all gravel where it runs into the ground, tape 13 my roof up, you know, get rid of my gutters. 14 The City for years has been running water 15 into the sewer system, now they can't. You're 16 changing. No more. They have to put lift stations 17 from the basement to the sewage out in the street. 18 Why are we paying? You're saying it's the 19 wastewater, you know, potable. I'm being charged on 20 that then. What's the cost? Why do you rate 21 something on what they have? My house, each one, on 22 potable water, why do you measure at that time? Put 23 a meter on my house, is what you need to do, and 24 charge me by the meter like the water company does 25 then. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 52 1 MR. HOELSCHER: And that's what we do 2 with your -- 3 MR. HABERSTROH: But you're using their 4 meter. 5 MR. HOELSCHER: We're using their winter 6 water -- 7 MR. HABERSTROH: And their winter water 8 and everything. 9 MR. HOELSCHER: Yeah, and for the 10 average residential customer whatever potable water 11 goes in, goes down the sewer system. And we use the 12 winter quarter so that we're not picking up things 13 such as washing cars, filling swimming pools, 14 watering the grass during the summer. We pick a 15 time period that's accepted throughout the country, 16 that you use the winter usage -- 17 MR. HABERSTROH: So I got a lot of boys 18 and I'm flushing the toilet a lot and -- 19 MR. HOELSCHER: And that is just for 20 wastewater on that monthly bill. 21 MR. SCHNEIDER: Okay. Again, thank you 22 for your comment. 23 John Judd? 24 MR. JUDD: Yes. Hi. First, I would 25 like to ask a question, if you could shed any light PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 53 1 on it. If you go right up here to Tesson Ferry, 2 take a left on Musick, there's a street called Meath 3 and I'm speaking on behalf of friends over there. 4 And in back of them must be some kind of 5 tributary that leads into Gravois Creek but -- and 6 maybe this lady in front of me can shed some light 7 on this too. So the question is all these folks are 8 coming to me and they're saying, "Why are we being 9 charged like we're in a floodplain?" 10 And I would like someone here to try to shed 11 some light on that subject if they can for me 12 because their houses are way up here on Meath and 13 the creek is way, way back there and these folks are 14 on limited income and they're being charged for 15 being in a floodplain when, I mean, a 500-year flood 16 isn't going to cause them any problems but I know 17 that their homeowner insurance is charging them. 18 But I would like to ask if anybody here can 19 shed any light on how something like that -- 20 MS. AMMEL: It never used to be. I've 21 been there 30 some-odd years. It was never a 22 floodplain and all of a sudden it is if you finance 23 your house you have to have flood insurance. I'm 24 paying my house down as fast as I can so I don't 25 have to pay it. I'm never going to flood. I'm PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 54 1 confident, the way that creek flows. It's never 2 come into my yard. Never. Ever. And it flows like 3 a small river down there. 4 But I think it's all political and it's a 5 good way for the government to say, okay, all you 6 guys are in a flood zone now and you have to pay 7 this money to FEMA. I'd really love for somebody to 8 come out and do an independent evaluation on that 9 creek for everybody that lives along there because 10 we all have the same complaint about that. 11 MR. HOELSCHER: I think two things. 12 One, and this is difficult, MSD does not own or 13 maintain creeks to start. Except for a major part 14 of River Des Peres, they are owned by either the 15 property owners or the subdivisions or something 16 like that. 17 With regard to the floodplain area, that 18 is -- that whole issue is managed by the floodplain 19 managers, which are the individual municipalities or 20 the counties. So the issues you're addressing are 21 issues that are managed and addressed by them. It 22 is not managed by MSD. 23 So after the meeting, if you want, we can 24 even take information and try to get you to the 25 right person, depending on where you live, in the PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 55 1 county or in the individual municipality, whoever 2 has taken over floodplain management and we can get 3 to you the individuals to talk to in those 4 government entities. 5 MR. JUDD: Okay. Thank you. 6 MR. HOELSCHER: Rich -- and the 7 gentleman to talk to is the gentleman here in the 8 green jacket. 9 MR. JUDD: Okay. The second question is 10 Mattese Creek crosses Theiss, goes under Theiss and 11 runs along Theiss and goes back under Theiss and it 12 looks like somebody is going to be working on 13 something over there. So I guess I'll have to get 14 with someone and ask specifically if MSD is going to 15 be doing work on that. And, again, you said you 16 don't have anything to do with creeks? 17 MR. HOELSCHER: Well, we mentioned we 18 can go -- we don't necessarily own creeks but we 19 can, if allowed, collect funds to help resolve some 20 of the stormwater issues even though they're not 21 ours. The issue you're just mentioning about what's 22 going on there, the same gentleman in the green 23 jacket, Mr. Unverferth, he can take your information 24 and whether it's MSD or somebody else, we probably 25 at least have some permitting authority and we can PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 56 1 probably shed light on who's doing the work. 2 MR. JUDD: Okay. And I also wanted to 3 ask, a couple years ago you were shedding some light 4 on how you could get one of these barrels to collect 5 your stormwater, are you still in that communication 6 process of how you can get one of these barrels? 7 MR. HOELSCHER: We're not selling rain 8 barrels now but I would ask that you talk to the 9 gentleman in the green jacket again -- or I'm sorry, 10 Rich. Where are we talking about? Are you in 11 the -- well, you've told me along Sappington Creek. 12 MR. JUDD: Well, I don't know. I might 13 be red but I'll get with you after. 14 MR. HOELSCHER: Mention to us what your 15 issue is because there's potentially a lot of other 16 things going on with downspouts from the roofs and 17 I'll even ask you to get with me or Rich and we'll 18 just kind of look to see what your situation is. 19 We're not selling rain barrels anymore right 20 now. They are, in fact, commercially available for 21 almost less than -- 22 MR. LeCOMB: Yeah, we couldn't beat the 23 cost anymore. We sold them at our cost and we 24 couldn't beat the big box stores anymore. 25 MR. HOELSCHER: So they actually are PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 57 1 able to sell them for cheaper than what we were able 2 to sell them for. So they're still available 3 commercially but I think with regard to the whole 4 issue of your downspouts we would want to talk to 5 you in case there's other parts of the program that 6 might impact you in the future. 7 MR. JUDD: Okay. Thank you. 8 MR. SCHNEIDER: Thank you for your 9 comments. 10 D. McArthy? 11 MR. McARTHY: I think you already 12 answered it. They're based on -- our bills are 13 based on water usage? 14 MR. HOELSCHER: Right, the monthly 15 wastewater bill is, yes. 16 MR. McARTHY: Is there a calculation 17 that you use based on that to figure the bill? Like 18 if I go to St. Louis County for my tax bill they can 19 give me a formula that they use, using their 20 assessment. Do you have that and, if so, is it 21 available on the website -- 22 MR. HOELSCHER: Yeah, and I think -- 23 MR. McARTHY: -- so a person could 24 actually kind of figure out because I own rental 25 property in addition to my own home. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 58 1 MR. HOELSCHER: I think the person to 2 talk to on that -- Theresa, raise your hand if you 3 would -- Theresa Bellville, she's our assistant 4 director of finance. She's right here. If you talk 5 to her afterwards she can show you where you go and 6 how we do the calculations. They all derive from 7 your usage and the rates per usage that come out of 8 this Rate Commission process and she can describe 9 that to you. 10 MR. McARTHY: Okay. The other thing is 11 I own rental property in Arnold, which is connected 12 to you guys now. They proposed a rate freeze. 13 MR. HOELSCHER: I think our relationship 14 with the City of Arnold, who is outside of our 15 District, we do have an agreement with them to treat 16 their wastewater and that is solely our -- that's 17 solely our interaction with the City of Arnold. 18 They are an independent entity so we are contracted 19 to treat their wastewater and they pay us a cost to 20 do that. But as far as the operation of the system 21 itself -- 22 MR. McARTHY: Is it a contracted price? 23 MR. HOELSCHER: That we have with 24 Arnold? 25 MR. McARTHY: Yes, sir. PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 59 1 MR. HOELSCHER: Yeah, it's our cost plus 2 10 percent for management costs and they are billed 3 that monthly. 4 MS. MYERS: It's based on flow. 5 MR. McARTHY: I was going to say I know 6 what the City of Arnold is charging for sewers. 7 MR. HOELSCHER: Well, so what we charge 8 them is we have a meter at their pipe that goes into 9 our plant at the -- near the Meramec and then we 10 meter that and we charge them our actual cost per -- 11 MR. McARTHY: Do you have any other 12 situations like Arnold? 13 MR. HOELSCHER: Arnold is the only one. 14 MR. McARTHY: That's pretty much it. 15 MR. SCHNEIDER: Good. Thank you for 16 your comments. That is the people who signed-in to 17 the clipboard. Are there any others who have 18 comments? 19 MR. JUDD: Yeah, one more. When it 20 comes to a vote, do you just need a simple majority 21 District-wide? 22 MR. SCHNEIDER: I believe that's the 23 case, simple majority. Any other comments for 24 the -- do the Rate Commissioners have any comments? 25 Okay. Well, seeing none, I would like to PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 60 1 thank you all for coming out today and learning more 2 about the Rate Proposal and I thank Mr. Hoelscher 3 and the staff of MSD for this rate hearing. 4 The next public hearing will be conducted on 5 May 19, 2015 at 6 p.m. at the Carondelet Park Rec 6 Complex, so spread the word out. There's one, two, 7 three, there's four more public hearings that are 8 going on in the community all the way up June 9th, 9 so check the MSD website. Is it stlmsd.com? 10 MR. HOELSCHER: As well as there are 11 flyers we're handing out that have those dates on it 12 as well, if you pick one of those up on the back 13 table. 14 MR. SCHNEIDER: Again, thank you very 15 much for your time. Thank you very much Rate 16 Commissioners for being here. We're adjourned. 17 - - - - - 18 (Hearing concluded at 11:09 a.m.) 19 20 21 22 23 24 25 PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Page 61 1 CERTIFICATE OF REPORTER 2 I, Suzanne Zes, within and for the State 3 of Missouri, do hereby certify that the witness 4 whose testimony appears in the foregoing deposition 5 was duly sworn by me; the testimony of said witness 6 was taken by me to the best of my ability and 7 thereafter reduced to typewriting under my 8 direction; that I am neither counsel for, related 9 to, nor employed by any of the parties to the action 10 in which this deposition was taken, and further that 11 I am not a relative or employee of any attorney or 12 counsel employed by the parties thereto, nor 13 financially or otherwise interested in the outcome 14 of the action. 15 16 ______________________________ 17 Certified Court Reporter 18 19 20 21 22 23 24 25 PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES A AA 16:16,20,21 AAA 16:20 AA1 16:21 ability 29:2 61:6 able 23:6 26:5 27:2 29:20 30:7 31:24 32:23 39:16 45:10 57:1,1 accept 37:16 accepted 52:15 accomplishme... 14:10 accounting 32:1 acted 6:9 action 61:9,14 active 48:16 activities 10:17 10:20 14:19 actual 59:10 add 27:1 addition 14:11 23:6 49:8 57:25 additional 6:25 16:11 17:12,15 17:25 20:16 21:11,12 35:8 36:1,12 38:2,2 38:4,7,11 address 12:12 15:2 26:1 27:14 27:16,19 28:21 32:24 addressed 54:21 addressing 54:20 adjourned 60:16 adopted 5:23 6:1 6:14 advertising 47:24 advocate 40:2 advocating 5:15 affect 44:7 age 16:6 ago 41:18 42:21 43:5 44:17 56:3 agree 43:25 agreement 58:15 airport 14:18 allow 17:24 32:12,24 allowed 55:19 allows 22:9,11,14 28:19 amended 4:10 6:15 Ameren 46:11,22 48:17,23 American 7:20 Ammel 2:7 40:24 40:24 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50:14 58:12 proposing 5:21 13:12 15:1 16:18,25 17:15 19:1 21:1,25 28:12 29:4 32:15 33:19,21 35:10 36:8 43:10 provide 11:6,15 13:2 16:10 25:9 29:13 33:22 36:6,17 40:2 43:18 provided 8:5 19:12 27:5 provides 29:1 36:10 providing 28:7 35:11 39:22 public 1:2 2:5,19 3:14 4:5 7:16 7:18,23 8:3,21 9:11,15 11:3 13:2 22:20 23:7 23:22 25:10 27:7 28:4,18,25 29:6 31:18 32:15,18 38:1,6 40:9,13,14 41:25 43:15 60:4,7 publicity 45:23 published 7:18 pulling 28:7 pump 14:12 20:3 purpose 7:2,24 9:9 10:23 purposes 9:10 50:18 put 15:19 17:13 21:3 24:16 47:17,25 48:6 48:18,20 51:12 51:16,22 p.m 60:5 PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES Q qualify 36:20,25 quality 12:14 25:18 26:1,2,21 quarter 52:12 question 30:24 44:11 52:25 53:7 55:9 questions 8:20 9:16,18 Quick 13:1 quicker 38:19 quite 46:5 R R 3:1 4:1 radio 43:23 rain 12:4 15:3,13 15:25 26:19,21 56:7,19 raining 15:15,19 raise 35:16 58:2 raised 7:3,9 rate 3:2 4:4,7,12 4:19,19 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resulted 14:20 resulting 34:11 35:2,17 results 14:24 40:4 revenue 14:6 31:17,17 32:11 33:3 35:11 revenues 5:23 12:18 18:3 22:21,23 review 4:12 6:3 12:21 13:1,5,8 25:22,22 48:11 revolving 39:7 Rich 55:6 56:10 56:17 rid 51:13 right 8:12,19 13:20 29:5 30:25 32:16 34:6,7 36:5 39:1 41:14 43:6 46:20 48:10 49:21 50:6 53:1 54:25 56:19 57:14 58:4 right-hand 21:9 36:1,11 river 11:21,22,22 48:18,23 49:3 54:3,14 rivers 11:21 roof 51:13 roofs 51:10 56:16 rules 5:24 6:14 run 12:11 running 51:14 runoff 12:14 26:16 49:25 runs 51:12 55:11 Russell 3:8 4:8 5:11 S S 3:1 4:1 sad 45:19 safety 27:21 PUBLIC HEARING 5/16/2015 www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334 MIDWEST LITIGATION SERVICES sale 39:6 sales 18:3 sampling 26:2 sanitary 18:12 21:4 Sappington 41:2 56:11 saw 25:20 28:2 29:24 33:23 42:23 46:1 saying 51:9,18 53:8 scenario 39:15 scenarios 21:18 schedule 5:24 6:1 16:4 Schneider 2:3 3:3 4:2,3 5:11 5:16 8:25 9:3 9:12 40:11,12 40:23,25 42:9 42:13 45:14 48:1,10 49:17 52:21 57:8 59:15,22 60:14 Schoedel 3:7 4:9 5:14 schools 49:25 second 39:11 55:9 security 46:15 49:9 see 9:21,23 10:3 10:8 12:8 16:14 17:2 18:8 19:9 19:24 20:19 21:16 24:9 26:10 29:11 30:7,15 32:23 36:23 40:17 41:16 43:25 50:10 56:18 seeing 8:22 14:24 19:16 49:21 59:25 seen 25:16 43:24 select 4:17 sell 41:14 42:3 57:1,2 selling 56:7,19 Senior 3:7 5:15 seniors 5:15 sensible 48:15 separate 31:12 series 43:7 serves 11:10 service 11:16,23 12:16 17:8,8,13 20:22 21:22,24 24:11,13,22 25:3 27:2 28:7 28:10,11 39:21 services 3:7,21 4:19 5:15 11:25 12:2,18,23 22:1 25:9,9 33:19 34:9,24 35:11 35:15 36:6,10 36:16,20 39:19 Session 2:5 7:23 sessions 7:16 set 13:12 20:23 24:9 33:7 44:18 sets 13:3 Setting 7:3,10 seventeen 31:23 seventy 16:6 severe 27:21 sewage 51:17 sewer 1:1 2:20 4:4 11:3 12:6 16:4 18:13 20:6 20:6,7,20 21:4 21:17 23:8,22 25:10 27:7,9,10 27:17,18 28:5 28:18 29:1,6 31:18 32:19 41:21 50:9 51:7 51:15 52:11 sewers 11:4 12:8 14:15 16:7 22:20 23:9 25:1 27:8 43:1 50:7 59:6 sewer's 27:15 Sharon 2:8 45:15 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26:3,17 street 3:22 27:16 28:5 30:15 51:17 53:2 streets 11:10 12:9 28:8,9 stuff 45:25 46:13 47:3,10 49:5,23 subdivisions 54:15 subject 53:11 submit 6:16 7:8 37:18 submits 13:6 submitted 7:5 9:6 37:3 43:7 submitting 7:6 sudden 51:9 53:22 suddenly 46:18 suggested 6:6 summation 9:21 33:2 summer 52:14 supposed 15:8 44:17 sure 16:5,7,8,18 18:23 22:13 25:23,24 26:1 26:23 31:4 37:21 42:2,13 45:8,12 Suzanne 2:24 3:20 61:2 swimming 52:13 sworn 61:5 system 11:3,10 12:11 14:8,21 14:23 15:5,9,10 15:14,16,17,20 15:23 16:2,9 18:13,17 23:22 24:19 25:10 27:7,10,12 28:5 28:19 29:1,6,8 31:18 32:15,19 39:16 51:15 52:11 58:20 systems 16:4 18:19 23:8 S&P 16:21 T table 8:11 60:13 tables 10:5 take 5:5 9:18 22:13 26:13,21 30:11,23 40:14 44:25 49:6 53:2 54:24 55:23 taken 16:15 24:15 26:8,22 43:24 45:4 55:2 61:6,10 takes 26:12 talk 37:15 44:16 46:14,23 55:3,7 56:8 57:4 58:2 58:4 talking 24:1 49:16 56:10 tape 51:12 tax 4:14 11:2 12:19 13:12 22:6,8 23:2,2,3 23:3,17,17,19 24:2,8,18,21,24 24:25 25:2,5,5 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