HomeMy Public PortalAboutExhibit MSD 134 - Transcript of June 26, 2015 Prehearing Conference PRE-HEARING CONFERENCE 6/26/2015
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6 THE METROPOLITAN ST. LOUIS SEWER DISTRICT
7 CAPITAL IMPROVEMENT & REPLACEMENT PROGRAM
8 PRE-HEARING CONFERENCE
9 JUNE 26, 2015
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1 I N D E X
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Roll Call. . . . . . . . . . . . . .
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1 A P P E A R A N C E S
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Commissioners:
3 Steven Chodes
George Tomazi
4 Mark Schoedel
Mike O'Connell, III
5 Russell Hawes
Leonard Toenjes
6 Eric Schneider
John L. Stein
7 Nancy Bowser
Paul Brockmann
8 Chan Mahanta
Steve Mahfood
9 Kennard Jones
10 Representing Metropolitan Sewer District:
11 Susan Myers
12 Representing Rate Commission:
13 John Fox Arnold
Lisa O. Stump
14 Lashly & Baer
714 Locust Street
15 St. Louis, MO 63101
16 Representing Missouri Industrial Energy
Consumers (MIEC):
17 Brandon Neuschafer
Bryan Cave, LLP
18 One Metropolitan Square
St. Louis, MO 63102
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Representing Homebuilders' Association:
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Brad Goss
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Court Reporter:
22 Jeanne M. Pedrotty, CCR/CSR
Missouri CCR #618
23 Illinois CSR #084-003893
Midwest Litigation Services
24 711 North Eleventh Street
St. Louis, Missouri 63101
25 (314) 644-2191
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1 (Starting time of the hearing: 7:57)
2 MR. TOENJES: Let's go ahead and call the
3 meeting to order for the Metropolitan St. Louis Sewer
4 District Rate Commission. Let's start with the role
5 call, Mr. Schneider. Just a roll call of who is
6 present.
7 MR. SCHNEIDER: Ms. Bowser? Mr. Brockmann?
8 MR. BROCKMANN: Here.
9 MR. SCHNEIDER: Mr. Hawes.
10 MR. HAWES: Here.
11 MR. SCHNEIDER: Mr. Chodes?
12 MR. CHODES: Here.
13 MR. SCHNEIDER: Ms. Kelling? Mr. Stein?
14 MR. STEIN: Present.
15 MR. SCHNEIDER: Mr. Schneider, present.
16 Mr. Toenjes?
17 MR. TOENJES: Present.
18 MR. SCHNEIDER: Mr. Tomazi?
19 MR. TOMAZI: Here.
20 MR. SCHNEIDER: Mr. O'Connell?
21 MR. O'CONNELL: Here.
22 MR. SCHNEIDER: Mr. Schoedel? Mr. Jones?
23 MR. JONES: Here.
24 MR. SCHNEIDER: Mr. Mahfood? Mr. Williams?
25 Mr. Mahanta? We have a quorum.
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1 MR. TOENJES: Thank you, Mr. Schneider.
2 The Chair would entertain a motion to go into closed
3 session to discussion legal matters pursuant to
4 Missouri Revised Statute number 621.021 (1).
5 UNIDENTIFIED SPEAKER: So moved.
6 UNIDENTIFIED SPEAKER: Second.
7 MR. TOENJES: Any discussion on the motion?
8 I'd like to take a roll call vote.
9 MR. SCHNEIDER: Ms. Bowser? Mr. Brockmann?
10 MR. BROCKMANN: Yes.
11 MR. SCHNEIDER: Mr. Hawes?
12 MR. HAWES: Yes.
13 MR. SCHNEIDER: Mr. Chodes?
14 MR. CHODES: Yes.
15 MR. SCHNEIDER: Mr. Stein?
16 MR. STEIN: Yes.
17 MR. SCHNEIDER: Mr. Schneider, yes. Mr.
18 Toenjes?
19 MR. TOENJES: Yes.
20 MR. SCHNEIDER: Mr. Tomazi?
21 MR. TOMAZI: Yes.
22 MR. SCHNEIDER: Mr. O'Connell.
23 MR. O'CONNELL: Yes.
24 MR. SCHNEIDER: Mr. Jones.
25 MR. JONES: Yes.
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1 MR. TOENJES: Okay. We will now go into
2 closed session.
3 (Whereupon, closed session was entered at
4 8:01.)
5 MR. TOENJES: Good morning. My name is
6 Leonard Toenjes, and I am the Chairman of the Rate
7 Commission of Metropolitan St. Louis Sewer District
8 and I will serve as Chair of this proceeding. I would
9 like for each rate commissioner to announce their name
10 as being present, starting at my far left.
11 MR. CHODES: Steve Chodes.
12 MR. JONES: Kennard Jones.
13 MR. STEIN: John Stein.
14 MR. TOMAZI: George Tomazi.
15 MR. HAWES: Russ Hawes.
16 MR. SCHNEIDER: Eric Schneider.
17 MR. BROCKMANN: Paul Brockmann.
18 MS. BOWSER: Nanacy Bowser.
19 MR. MAHANTA: Chan Mahanta.
20 MR. MAHFOOD: Steve Mahfood.
21 MR. TOENJES: Thank you. These are all
22 delegates of the Rate Commission. The charter plan of
23 the District was approved by the voters of St. Louis
24 City and St. Louis County at a special election on
25 February 9th, 1954, and amended at a general election
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1 on November 7th, 2000. The amendment to the charter
2 plan established the Rate Commission to review and
3 make recommendations to the District regarding changes
4 in waste water rates, storm water rates, and tax rates
5 proposed by the District. Upon receipt of a rate
6 change notice from the District, the Rate Commission
7 is to recommend to the Board of Trustees changes in
8 waste water, storm water, or tax rate necessary to
9 one, pay interest and principal falling due on bonds
10 issued to financed assets of the District. Two, the
11 cost of operation and maintenance. And three, such
12 amounts as may be required to cover emergencies and
13 anticipated delinquencies.
14 Further, any change in a rate recommended
15 to the Board of Trustees by the Rate Commission is to
16 be accompanied by a statement that the proposed rate
17 change, one, is consistent with constitutional,
18 statutory, or common law as amended from time to time.
19 Two, enhance the District's ability to provide
20 adequate sewer and drainage systems in facilities or
21 related services. Three, is consistent with and not
22 in violation of any covenant or provision relating to
23 any outstanding bonds or indebtedness of the District.
24 Four, does not impair the ability of the District to
25 comply with the applicable federal and state laws or
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1 regulations as amended from time to time. And five,
2 impose as fair and reasonable burden on all classes of
3 rate payers.
4 The Rate Commission received a rate change
5 notice from the District on February 26th, 2015. Under
6 the procedural schedule adopted by the Rate
7 Commission, any person affected by the rate change
8 proposal had an opportunity to submit an application
9 to intervene in these proceedings. Applications to
10 intervene have been filed by the Home Builders
11 Association of St. Louis and Eastern Missouri and
12 Missouri Industrial Energy Consumers. These
13 applications have been granted. The Rate Commission
14 originally had until June 26, 2015, to issue its
15 report on the proposed rate change notice to the Board
16 of Trustees of the District. The Rate Commission
17 requested an additional 45 days to issue its report.
18 And on May 14th, 2015, the District's Board of
19 Trustees granted the Rate Commission's request. The
20 Rate Commission must now issue its report on or before
21 August 10th, 2015.
22 Since February 26, 2015, the MSD Rate
23 Commission has received testimony from MSD staff, the
24 interveners, and the rate consultants. The parties
25 have also engaged in discovery requests. Technical
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1 conferences were held on April 8th, 2015, May 20th,
2 2015, and June 17th, 2015, where the participants and
3 Rate Commission were given an opportunity to ask
4 questions of those submitting testimony. The charter
5 plan of the Metropolitan St. Louis Sewer District and
6 operational rules and procedural schedule of Rate
7 Commission of the Metropolitan St. Louis Sewer
8 District provides for pre-hearing conference to
9 identify, define, resolve, or settle the issues raised
10 by the prepared testimony, and to ensure orderly and
11 expeditious proceeding. Each intervener may
12 participate in the pre-hearing conference conducted on
13 the record to permit counsel for the District, each of
14 the interveners, and the Rate Commission to briefly
15 describe the participant's position, if any, on each
16 of the criteria and factors identified in the charter
17 plan.
18 In the event participants are able to
19 resolve or settle any issue or issues raised in the
20 prepared testimony, such participants shall also
21 include as part of the pre-hearing conference report,
22 a joint recommendation describing each such issue, the
23 recommended resolution of the issue, and the rationale
24 therefore. The Rate Commission is interested in the
25 views of the participants on the extent to which the
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1 District's rate change proposal and any alternative
2 proposed by the participants meets or fails to meet
3 the criteria or factors for recommendations contained
4 in the charter plan.
5 To that end, and without requiring any
6 participant to act in a particular manner, each
7 participant is requested to make an oral presentation
8 of the participants respective position. The parties
9 may also submit a short written summary of the
10 presentation, if desired. The Commission's procedural
11 schedule as amended provides that each participant in
12 the pre-hearing conference shall submit on or before
13 July 8th, 2015, a pre-hearing conference report
14 describing the issues raised by the prepared testimony
15 together with a brief description of such
16 participant's position, if any, on each issue and the
17 rationale therefore.
18 The Rate Commission has established a
19 public hearing session for the participants to be held
20 on July 10th, 2015 at nine a.m. at the District's
21 offices. The purpose of this public hearing session
22 will include, number one, permitting rate payers to
23 testify. Number two, receiving into evidence any
24 prepared testimony submitted to the Commission subject
25 to any valid objections together with discovery
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1 requests -- I'm sorry -- together with discovery
2 responses and transcripts of the technical
3 conferences. Number three, permitting the Commission
4 members to ask questions regarding any issues
5 addressed by the prepared testimony or any other
6 elements of the proposed rate change. And four,
7 permitting closing statement by the District, the
8 interveners, and legal counsel of the Rate Commission.
9 In preparation for the July 10, 2015 hearing, the
10 District will distribute a current list of exhibits to
11 all parties by July 8th, 2015.
12 Are there any procedural matters at this
13 time, Mr. Arnold?
14 MR. ARNOLD: Mr. Chairman and members of
15 the Commission, I'm very embarrassed. When we were
16 last together, we spoke about the date by which
17 additional materials should be filed. And I very
18 carefully wrote down Wednesday. I was incorrect. The
19 date on which things should have been filed was
20 Monday. Nevertheless, on Wednesday, without knowing
21 my error, I filed with the District three exhibits;
22 some materials from the U.S. Census Bureau in the city
23 and county of St. Louis and Mr. Standard's testimony
24 in the 2011 proceeding. Ms. Myers very generously
25 directed them to assign exhibit numbers and they are
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1 now contained in the exhibit list. But with
2 apologies, and unless there is an objection, I request
3 that they be considered part of the record.
4 MR. TOENJES: Are there any objections from
5 the District.
6 MS. MYERS: No, there is not.
7 MR. TOENJES: Any objection from
8 interveners?
9 MR. NEUSCHAFER: No.
10 MR. GOSS: No.
11 MR. ARNOLD: Thank you, Mr. Chairman.
12 MR. TOENJES: Don't let it happen again.
13 There being no further procedural matters, Ms. Myers,
14 would you like to address the Rate Commission on
15 behalf of the District?
16 MS. MYERS: I would. Thank you.
17 MR. TOENJES: Please proceed.
18 MS. MYERS: Tim is going to hand out a copy
19 of my statement that I'm going to make. I'll give him
20 a chance to do that and I'll get started.
21 Good morning. My name is Susan Myers, and
22 I am the general counsel for the Metropolitan St.
23 Louis Sewer District. I will provide the District a
24 summary statement regarding proceedings to date. The
25 District's rate change proposal submitted on February
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1 26th, 2015, complies with all the required criteria
2 contained in section 7.270 of the MSD charter. This
3 has previously been demonstrated by testimony of the
4 District's witnesses and exhibits. There seems to be
5 little or no disagreement regarding criteria one
6 through four for both the storm water rate change and
7 the waste water rate change proposal. With that in
8 mind, I will address those criteria briefly and then
9 discuss criteria five in more detail.
10 Section 7.270 paragraph one of the charter
11 requires the proposed rate change to be consistent
12 with constitutional, statutory, or common law as
13 amended from time to time. The proposed storm water
14 rate change complies with this criterion and will be
15 taken to the voters to be voted on in FY2016. The
16 proposed waste water rate change complies with this
17 criterion and will follow the methodology approved by
18 the Missouri courts and procedures outlined in the MSD
19 charter. Section 7.270 paragraph two of the charter
20 states, "Will the proposed rate change enhance the
21 District's ability to provide adequate sewer and drain
22 and system and facility or related services?" Based
23 on the rate change proposal submitted by the District
24 and witness testimony, the answer to this question is
25 yes.
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1 The main driver for MSD's rate proposal for
2 storm water is to provide a funding source via ten
3 cent ad valorem property tax for operation and
4 maintenance of public storm water system
5 district-wide. Any minimal funds that may be
6 available after accounting for O and M of the public
7 storm water system district-wide will be used for
8 capital projects to address storm water problems not
9 involving the infrastructure. Such as storm water
10 flooding or erosion. MSD's rate change proposal for
11 waste water is to provide a funding source financed
12 with a combination of cash financing and debt to
13 support the capital improvement and replacement
14 program, which will move the District's waste water
15 system towards environmental compliance. Section
16 7.270 paragraph three of the charter states, "Is the
17 proposed rate change consistent with and not in
18 violation of any covenant or provision relating to any
19 outstanding bonds or indebtedness of the District?"
20 The answer is "Yes."
21 Regarding the rate change proposal for
22 storm water, the district is not proposing the use of
23 bonds or other indebtedness. Therefore, the proposed
24 rate change will not violate any covenants or
25 provisions of the existing bonds or indebtedness. The
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1 rate change proposal for waste water is consistent
2 with all outstanding bonds and indebtedness and will
3 not cause the District to violate any of those
4 provisions or covenants. Section 7.270 paragraph four
5 states, "The proposed the rate change must not impair
6 the ability of the District to comply with applicable
7 federal or state laws or regulations as amended from
8 time to time." The District's rate change proposal
9 for both storm water and waste water will not impair,
10 but rather will support the District's ability to
11 comply with federal and state laws and regulations.
12 The rate change proposal for waste water specifically
13 provides for the ability for the District to meet the
14 requirement outlined in the consent decree. The hot
15 topic during these rate proceedings has been does
16 MSD's rate change impose a fair and reasonable burden
17 on all classes of rate payers. MSD has determined
18 that it does. In section 7.270 paragraph five of the
19 charter, it states, "Does the proposed rate change
20 impose a fair and reasonable burden on all classes of
21 rate payers?" In my discussion below, I will address
22 how MSD's storm water rate change proposal meets the
23 criteria of this section, the disagreement between the
24 parties and MSD's position regarding the storm water
25 funding structure being proposed. Then I will discuss
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1 how MSD's waste water rate change proposal meets
2 section 7.270 paragraph five of the charter.
3 As discussed in Brian Hoelscher's and
4 William Stannard's testimony, numerous discovery
5 responses, and supplemental information provided by
6 the District, the District has shown that the proposed
7 rate change consisting of a District-wide ten cent ad
8 valorem property tax to be used for operation and
9 maintenance of the public storm water system imposes a
10 fair and reasonable burden on all classes of rate
11 payers. Because of the proposal being made by some of
12 the interveners involved in this case, the discussion
13 of fair and reasonable has not centered on just
14 whether MSD's proposal is fair and reasonable as MSD
15 feels it has proven, but invariably has resulted in a
16 comparison between MSD's storm water proposal of ten
17 cent ad valorem property tax and the use of a voted on
18 impervious fee. MSD feels that discussion is
19 important in deciding what is fair and reasonable.
20 Specifically for the rate change proposal for storm
21 water, MSD believes that the use of a voted on
22 impervious fee would result in up to a 40 percent
23 increase in cost to MSD customers for the same level
24 of service and fewer customers participating in the
25 funding of the program due to current statutes and
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1 possible future state legislation when compared to the
2 propose ten cent ad valorem tax for the same level of
3 services. This was for the District and should be for
4 the Rate Commission an important consideration in
5 determining a fair and reasonable burden. It appears
6 from the testimony and information provided during
7 these proceedings that there is a lack of
8 understanding of the proposal placed before the Rate
9 Commission for consideration.
10 Using the following information for
11 illustration purposes, MSD believes that the best
12 method to clear up any misunderstanding is to, again,
13 address each of the four statements made in both of
14 the supplemental supporting evidence provided with
15 Exhibit HBA 124 and the memorandum of considerations
16 filed as HBA Exhibit 124C. In statement number one,
17 the HBA states, "Reductions in runoff volume reduce
18 the amount of runoff requiring treatment." This is
19 not accurate. MSD does not currently treat storm
20 water runoff as part of our operation and maintenance
21 the public storm water system responsibility.
22 Therefore, we do not incur any cost for that activity.
23 By allowing a credit for this reason, cost for the
24 operation and maintenance of the public storm water
25 system would simply require other customers to pay the
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1 difference with no change in operational cost to the
2 District.
3 In statement number two, the HBA states
4 that, "Increases in the quality of runoff allow the
5 District to more easily meet water quality standard
6 requirements." This is an accurate statement,
7 although, the rate proposal being considered by the
8 Rate Commission is only for operation and maintenance
9 of the public storm water system. Water quality issue
10 related to the storm water program are currently fully
11 funded by an existing two cent ad valorem property
12 tax. No proposed change in the rate or structure of
13 this two cent tax is being considered, and, therefore,
14 has not been presented to the Rate Commission for
15 consideration.
16 In statement three, the HBA states that,
17 "Reducing the need for drainage infrastructure by
18 reducing the cost to the District." This statement
19 seems to imply that a reduction in storm water
20 involving a reduction cost for O and M of public storm
21 water system because MSD's public storm water system
22 works almost exclusively on gravity and because MSD
23 does not treat storm water, reduction in flow does not
24 reduce the District's cost to operate and maintain the
25 infrastructure. Developers are required to provide
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1 detention as part of their development to ensure that
2 they do not increase peak flows above existing
3 conditions to protect downstream property and streams.
4 They are also required to install best management
5 practices to mitigate the pollutant load caused by
6 these developments. However, again, allowing a credit
7 when there is no change in cost to the District for
8 the operation and maintenance of the public storm
9 water system would just transfer cost to other
10 customers with no change in operational cost to the
11 District.
12 In statement number four, the HBA claims
13 that the District could benefit from potentially
14 increasing tax revenues by encouraging best management
15 practice that in turn increase property values. MSD
16 has seen no evidence that this is the case. We have
17 experienced instances where property owners find green
18 infrastructure a plus and other occasions where
19 property owners find green infrastructure a detriment
20 to their property.
21 After a lengthy court battle over the
22 impervious storm water fee implemented in 2008, the
23 District is faced with an immediate need of getting a
24 storm water funding source in place. Upon evaluation
25 of the current funding source, it was determined that
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1 the regulatory requirement or water quality issue
2 related to the storm water program are currently fully
3 funded by the existing two cent ad valorem property
4 tax. And capital work can continue in those areas of
5 the District that currently have OMCI funds. So the
6 operation and maintenance of the infrastructure
7 District-wide is what needs immediate funding.
8 Therefore, the rate change proposal for storm water
9 before you today is primarily for the operation and
10 maintenance of the public storm water system
11 District-wide.
12 During these proceedings there has been a
13 lot of confusion about why the District did not
14 propose an impervious fee similar to that implemented
15 in 2008, and why we did not propose a storm water
16 credit like we did in 2008. To try and clarify, I
17 will simply reiterate what has been provided many
18 times before in these proceedings. The storm water
19 tax being proposed is for operation and maintenance of
20 the infrastructure. The previous impervious fee was
21 funding for all storm water services which included
22 operation and maintenance , capital work, and
23 regulatory requirement. As stated previously, the
24 regulatory requirements for water quality issues
25 related to storm water programs are currently fully
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1 funded by the existing two cent ad valorem property
2 tax, which at this time we are not proposing to
3 change. Capital work in certain areas of the District
4 will be funded with remaining OMCI funds. If in the
5 future there are additional regulatory requirements
6 placed on the District or our customers decide they
7 want to fund additional capital work District-wide,
8 then we will come back to the Rate Commission with a
9 proposal to meet those needs, but for now we are
10 proposing to fund operation and maintenance of the
11 infrastructure District-wide with an ad valorem tax.
12 When funding operation and maintenance there
13 is no equitable reason to apply a credit program. If
14 we did, it would simply cause our customers to pay the
15 difference for those receiving a credit with no
16 reduction in the operation and maintenance cost of the
17 public storm water system. For the proposed waste
18 water rate change, the District has shown that the
19 proposed rate change imposes fair and reasonable
20 burden on all classes of rate payers. MSD has
21 retained the same general methodology used in the
22 past. This rate structure has been in place since
23 1993 and has been upheld by the Missouri courts and
24 has been approved as fair and equitable in all prior
25 rate recommendation records and Board of Trustees
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1 determinations.
2 During these rate proceedings, there have
3 been disagreements on several issues that affect
4 revenue requirement and cost allegation regarding the
5 proposed waste water rate change. I will summarize
6 the District's position on each of these issues.
7 Issue number one, revenues do tie to rates and cost of
8 service. It is common for utilities to perform cost
9 of service analysis every three to five years to
10 ensure their charges are equitable and apply uniform
11 percentage increases in between those years to meet
12 annual revenue needs. In the same manner, the
13 District's total revenue requirement for the test year
14 of FY2017 as presented in the financial plans, are
15 used to calculate fair and equitable rates according
16 to cost of service principals. The cost of service
17 process ensures that each customer class will be
18 charged an equitable portion of the total system cost.
19 It should be noted that rather than applying a
20 straight, across the board increase to each of the
21 components of the FY2017 rate schedule, as proposed by
22 the interveners, the District recognizes that future
23 years' cost related to compliance and the industrial
24 surcharge program would not increase at the same rate
25 as the overall revenue requirement, which is more
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1 driven by the capital cost associated with financing
2 of the CIRP. Since a compliance charge and extra
3 strength surcharge are primarily related to operation
4 and maintenance expense, the proposed rates for these
5 two facets of the rate schedule have been increased at
6 the same rate as operation and maintenance expense.
7 Issue two, economic assumptions used in the
8 waste water rate analysis. The District had made
9 reasonable assumptions related to the future of
10 economic conditions and markets in the service area.
11 These assumptions were made while relying on existing
12 data, analytical data, and indices to make reasonable
13 predictions, which by the very nature of economic
14 forecast are uncertain. The District's assumptions
15 are supported by data and serve as the foundation
16 which allows the District to meet its known and
17 anticipated needs for the next four years. The
18 assumptions advanced thus far by interveners failed to
19 take into account the risk associated with the present
20 state of the economy and volatility of financial
21 markets.
22 As provided in testimony regarding the
23 interveners' proposed assumptions from the previous
24 rate case, if MSD had adopted these assumptions, it
25 would have underfunded the required CIRP in a broad
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1 view given that no person can precisely predict future
2 economic trends. It is likely that some mixture of
3 conservative and optimistic economic assumptions, as
4 discussed during these proceedings, will represent
5 reality.
6 If in the aggregate, MSD collects revenue
7 in excess of its forecast, the District will move
8 forward and expedite the federal consent decree
9 compliance related work or continue the stated program
10 with reduced use of debt, which would then allow
11 additional debt to be available for other projects in
12 future years. On the other hand, if the assumptions
13 provide to have overstated availability of revenues in
14 the aggregate, the District may have revenue
15 shortfalls leading to inability to meet regulatory
16 requirements and subjecting the District to stipulated
17 penalties, fines, and other possible legal action.
18 Overall, the rate payer is better served if the
19 capital program is slightly over-funded as opposed to
20 underfunded.
21 Economic assumptions; waste hauler
22 revenues. During the previous rate period the
23 District experienced a decrease in hauled waste
24 revenue due to the opening of a private waste hauling
25 station within the St. Louis area and Bridgeton
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1 landfill discharging directly to MSD's collection
2 system. In fiscal year 2013 through fiscal year 2014,
3 Bridgeton landfill hauled waste made up of -- the
4 Bridgeton landfill hauled waste made up approximately
5 30 to 88 percent of MSD hauled waste revenue.
6 Currently, during fiscal year 2015, the Bridgeton
7 landfill has put into place a leachate pre-treatment
8 facility and pumping facility and this pumping flows
9 directly to the District's collection system tributary
10 to the Bissell waste water treatment plant. Taking
11 all of this into account, the District feels its
12 projection for hauled waste revenue is appropriate.
13 Economic assumption utility expense escalator
14 and user volume. The intervener states that MSD's
15 utilities expense annual escalation factor should
16 generally coincide with outlooks by utilities' cost
17 the services they will provide. They state Ameren
18 Missouri projected growth in its cost of service is
19 largely tied to its rate-based investments which
20 Ameren projects to grow at a CAGR of 2.0 percent
21 through 2014 through 2019. However, the three percent
22 utilities expense escalation factor increases every
23 other year as proposed by the interveners' assumes
24 utilities cost will rise even more slowly than Ameren
25 is projecting its rate base to rise.
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1 Data shows that the rates charged by Ameren
2 to MSD have increased by a much more significant
3 amount and average of more than four percent per year
4 or approximately double the rate of growth of Ameren's
5 rate base. There have been six Ameren Missouri rate
6 increases since the beginning of 2007, and the average
7 rate hike has exceeded six percent per occurrence. As
8 indicated in MSD's testimony, one cannot assume one
9 percent decline in sewer volumes would equate to a one
10 percent reduction in electricity usage. There are a
11 number of factors including infiltration and inflow,
12 electricity rate structure, and consent decree project
13 work that impact the relationship between MSD
14 customers' volume and electricity usage. MSD has
15 considered all of these factors when it assumed a
16 utility expense annual escalation factor of 5.5
17 percent. While electricity is the largest utility
18 cost for MSD, we also expect other utility costs will
19 also increase more than projected by the intervener.
20 In conclusion, the District continues to believe that
21 its recommendation of 5.5 percent annual utility
22 expense escalation factor is reasonable.
23 We also believe that the District's
24 proposal is better supported by the outlooks and
25 expectations of the utilities in question than the
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1 alternative proposed by the interveners. Economic
2 assumptions, positive economic forecast versus change
3 in accounts or billed usage. The District does not
4 fine a correlation between positive economic forecast
5 and changes in accounts or billed usage. The
6 interveners are making the same assumption argument in
7 2015 that they made in 2011 regarding a positive
8 economic outlook as a reason to hold customer and
9 sales forecasts constant.
10 The data provided in this rate change
11 proposal makes it clear that customer accounts and
12 volume sales declined from fiscal year 2011 to fiscal
13 year 2014, despite the positive economic outlook. Had
14 the Rate Commission followed the intervener's
15 recommendation in 2011 to keep customer and sales
16 projection at the 2011 level. The District would have
17 secured a $7.3 million greater deficit than what's
18 actually experienced using the District's proposed
19 usage levels. The assumptions made by the District
20 using historical data and other factors from previous
21 rate case have proven to be much more accurate than
22 those recommended by the interveners. It is important
23 to realize that while the number of housing permits
24 increased year over year. In some instances, MSD
25 experienced declines in both the number of customers
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1 and build volumes for those same years. This
2 indicates no direct correlation exists between housing
3 starts and MSD customers and volume movements over
4 that time period.
5 Economic assumption; usage per customer.
6 As part of this rate proposal, the District has
7 provided appropriate assumptions for the future billed
8 volume and water usage. The assumptions are based on
9 two factors first, it is well-documented that
10 national water consumption rates are decreasing. And
11 secondly, water conservation efforts for both
12 residential and nonresidential users is a major factor
13 which contributes to a steady decline in billed volume
14 for water usage at water and waste water utilities
15 nationwide. The Rate Commission should appropriately
16 consider this trend and adopt the assumption provided
17 by the District in its rate change proposal. The
18 intervener claim that MSD is significantly overstating
19 the decline in unmetered waste water volumes and
20 encourage Rate Commission to carefully consider the
21 accuracy of MSD's volume projections. A significant
22 amount of data was developed and was provided by the
23 District in appendix 7.1.3 of the rate change proposal
24 to support our volume projections.
25 The methodology presented provides
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1 evaluation of the per fixture water usage volume
2 figures and results in proposed nine percent decrease
3 in the per fixture water usage volumes. This supports
4 the District's proposal.
5 Economic assumptions, bad debt, and late
6 charge revenues. The interveners recommend that the
7 District reduce forecasted bad debt provision from one
8 and a half percent of user charge to one percent of
9 user charge based upon the District's historical
10 average being one percent. The District's assumption
11 of 1.5 percent is based upon the fact that the
12 District made a one time credit adjustment. The
13 District also recognizes that through more robust
14 collection effort, the bad debt provision as
15 percentage of sewer service charge revenue is trending
16 downward. It is for this reason that the District
17 uses 1.5 percent in the rate modelling calculation
18 rather than a higher historical average. The
19 intervener's assumption is the District's projected
20 related charges should increase in accordance with the
21 increase in projected customer bills. The District's
22 assumption is based upon the general expectation that
23 late charges and bad debt provision as a percentage of
24 sewer service charges will move in the same direction.
25 This will not always hold true. However, it is not
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1 logical to expect the bad debt provision as a
2 percentage of sewer service charges would decline, an
3 indication of improved collection efforts while
4 projecting late charges to increase, an indication of
5 declining collection results, at a rate of nearly 11
6 percent each year. Therefore, the two adjustments
7 recommended by the intervener related to bad debt
8 provision and late charges are contradictory.
9 Issue number three, avoiding a negative
10 credit rating. The rate proposal effect on the
11 District's bond rating and ability to maintain a
12 target of AA credit rating are of great concern to the
13 District. The District's position is that larger
14 amount of debt as supported by at least one of the in
15 interveners could increase the District's cost of
16 funding and/or restrict the District's access to
17 funding. This could translate to tens of millions of
18 dollars of extra debt service cost for the District
19 rate payers or threaten the District's capital plan
20 time line. Based on the positions taken by the credit
21 rating agency in the past, the District's experience
22 with rating agency actions, and consultation with
23 MSD's financial advisor, we believe that reductions to
24 the proposed revenue and/or increases in future debt
25 service cost could reasonably lead to lower credit
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1 ratings. We have specifically chosen a mix of
2 debt/PAYGO financing and cash balance target that we
3 believe is consistent with maintenance of current
4 ratings. This concludes the District's official
5 summary statement. A copy of our statement will be
6 filed as Exhibit MSD 131 later today. Thank you.
7 MR. TOENJES: Thank you. Are there
8 questions from any of the rate commissioners for Ms.
9 Myers?
10 MR. BROCKMANN: On Page 3 of your testimony
11 in the first paragraph you say that storm water -- MSD
12 believes use of the impervious fee resulted in 40
13 percent increase in cost to users to same level, et
14 cetera. Can you give me some numbers to back that up?
15 MS. MYERS: I'll let Brian answer that.
16 MR. HOELSCHER: We had details in some
17 previous ones, but the numbers come from assured tax
18 deductibility for many of our customers on property
19 taxes from their bill. That's how it translates to
20 reduced cost to our customers. The cost of
21 maintaining our basis was the current pervious system
22 we proposed eight years ago. The cost of maintaining
23 primarily a lot of responding to customer issues and
24 questions regarding how that charge worked out for
25 them. So we submit annual cost of that of about a
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1 million dollars per year. And right now, under the
2 current state legislation which restricts us from
3 collecting monies from residential customers -- let's
4 see, residential customers who are not waste water
5 customers and whose storm water doesn't go through the
6 public storm sewer system does not allow us to collect
7 a fee. Right now that's about one percent of the
8 anticipated folks that we would collect from. So that
9 cost would have been translated or made up for by the
10 rest of the paying customers. And I think we do make
11 a statement that we have every reason to believe there
12 is no reason that kind of logic could not be extended
13 by the state legislature and potential fewer customers
14 having participated in that. If you add those up,
15 that's where you come up with the 40 percent. It's 30
16 to 35 percent for tax deductibility on state and
17 federal tax, the cost of maintaining the system which
18 is about five percent, and right now one percent of
19 the customer base who would participate in the tax but
20 not participate in voted on impervious. We did have
21 those detailed in previous testimony.
22 MR. TOENJES: Does that answer your
23 question, Mr. Brockmann.
24 MR. BROCKMANN: Yes.
25 MR. JONES: The five percent annual
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1 utilities expense escalation. That's an estimate or
2 outlook with regard to utilities expense. With regard
3 to utilities expense, MSD is estimating a 5.5 percent
4 increase. It's a two-part question. Is there any
5 recommendation for over or underestimation? For
6 instance, if you underestimate that increase do you
7 have a way to recover? And if you overestimate it,
8 either way is there a pass-thru between MSD and the
9 customer if you don't hit it on the mark? And have
10 you all considered simply passing through that cost
11 rather than even having to estimate what the cost
12 might be.
13 MR. HOELSCHER: Answering the second
14 question first. No, we cannot considered actually
15 passing on electrical cost as a specific line item on
16 our bill. We have not done that. With regard to the
17 first item, the way the process is set up, we will go
18 through four years of revenues and expenses, and as
19 you have done this year, and as the benefit was this
20 year, if there are additional monies left out of the
21 operating budget, revenues above our expenses, that
22 money goes into the pool that is the test year. So
23 the rate payers benefit from that in the future four
24 years. If there is ten million dollars left, that ten
25 million dollars gets available to fund service over
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1 the next four years. We don't have stockholders. We
2 don't have profit margins. The money just simply
3 rolls over. And that is same with capital expense. I
4 think that's what, as you see, as trying to explain if
5 the revenues collected for capital expense while we
6 try to take advantage of prices and do these cheaper,
7 if available. Any of those revenues left over don't
8 get spent, anything else, they are in the pot for the
9 next four year period, and rate payers benefit from
10 decrease expenses because of the balance that starts
11 at the start of rate process.
12 MR. JONES: That raises another question.
13 When you say "do things cheaper" has MSD researched
14 any alternatives to electric needs like solar energy,
15 using storm water runoff to power facilities, anything
16 like that?
17 MR. HOELSCHER: I'll have John Sprenger,
18 Director of Operations. The answer is yes, not for us
19 directly, but everything we do. I think John can give
20 you some ideas that we looked at in the past and we're
21 looking at in the future.
22 MR. SPRENGER: John Sprenger, director of
23 operation. We've looked at -- I'll start with one of
24 the impeding factors to using alternative sources of
25 energy than just the electric company is Missouri has
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1 cheap energy. Our average relative to the rest of the
2 country -- Our average kilowatt hour is roughly six to
3 seven cents. So there is no alternative energy
4 generation that we looked at that can provide energy
5 any cheaper than the electric company can provide to
6 us. And we look at solar, and because we run pumps
7 24/7 solar is more expensive, and the intermittent
8 nature doesn't provide us any advantage. We also
9 looked at running cost recovery -- looking at cost
10 recovery turbines like on discharge from treatment
11 plants, but by the time you put implement cost, the
12 operations and maintenance, it turns out to be cost
13 prohibitive. So we have looked at a number of
14 alternatives, and we haven't found them to be viable.
15 MR. JONES: Thank you.
16 MR. HOELSCHER: I'll add one other item we
17 are currently researching. There is always question
18 what we do with our solid waste. And there are
19 currently potentially regulatory changes occurring in
20 the country that will not allow the use of the fly ash
21 that's currently used in production of concrete. We
22 create ash off our incineration process and we
23 reviewed that in the past to see if there is
24 commercial use that's financially viable in the past,
25 but with that current change in the regulation we are
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1 talking with some groups in cooperation with the city
2 of St. Louis, is there possibly a better use or better
3 way to dispose of ash that comes from incineration
4 that would save our cost on operating expense. It's
5 an example of something we're doing right now that
6 we're kind of insidiously reviewing that issue for
7 lower operating cost.
8 MR. SPRENGER: You know, I discussed
9 alternative energy uses. It doesn't mean we haven't
10 put an effort in the last number of years to be more
11 energy efficient in the District. Ameren has put a
12 number of credits and rebates in place. I'll cite a
13 number of examples. We almost in all our locations
14 put variable speed driver controllers for our motors.
15 Which variable speed drive is an efficient way to
16 allow to vary the speed of electric motors in a very
17 efficient fashion. So you're matching flows with
18 motor speed and operating efficiently. We've taken
19 advantage of rebates and put variable speed drives in.
20 We switched out lighting in most of our plants to more
21 energy efficient T8 fluorescent lighting instead of
22 the older T12, which our plants were built with. We
23 used Ameren energy credits in all those locations for
24 taking advantage of that. We've done a number of
25 different energy efficiency initiatives in that case.
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1 Also putting in -- even in this building in our
2 conference rooms, automatic on/off lights, electronic
3 controllers, HVAC. So we've done a number of normal
4 things that any place would do to get energy efficient
5 and take advantage of energy credits where we can.
6 MR. TOENJES: Does that answer your
7 question, Mr. Jones.
8 MR. JONES: Thank you.
9 MR. TOMAZI: I have a few question, Ms.
10 Myers. On the top of Page 3, you indicate in your
11 testimony that the District-wide ten percent ad
12 valorem property tax imposes fair and reasonable
13 burden on all, and I underline "all", classes of
14 taxpayers. Does that include or exclude nonprofits
15 such as schools, hospitals, churches, et cetera.
16 MR. HOELSCHER: He is not here, I think
17 Bill Stannard would answer that, but I guess I'll let
18 you know I think our current assumption is based on
19 the last Supreme Court ruling is that those entities
20 would not participate in the funding of storm water
21 under either scenario; either voted on impervious fee
22 or property tax. And that's based on our risk
23 analysis of the decision that came from the Missouri
24 Supreme Court on evaluating previous impervious rate.
25 MR. TOMAZI: From a legal perspective, your
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1 indication is that, including those nonprofits would
2 in fact still impose a fair and reasonable burden on
3 all of the rate payers; is that correct?
4 MS. MYERS: Yes, it is.
5 MR. TOMAZI: Jumping down a little bit
6 further on Page 3, you indicate that use of an
7 impervious fee would result in up to a 40 percent
8 increase in the cost of MSD customers for the same
9 level, and fewer customers participating in the
10 funding of the program, et cetera, et cetera. As I
11 recall, you instituted an impervious program about
12 four years ago and it lasted until about six months
13 more or less -- until, I guess, the state passed a law
14 and you couldn't do it. Well, in fact, I guess until
15 the case was filed is that 40 percent is a reasonable
16 number considering fact that you already, in fact,
17 done this once before.
18 MR. TOMAZI: I'll go in a little more depth
19 to, I think, the answer I answered to Mr. Brockmann, I
20 think. Let's think back to what we imposed for
21 impervious eight years ago where the specific service
22 we talked about are talking about now was about 30
23 percent of the revenue what we projected back then for
24 impervious fee. So, there were then still those costs
25 per year to maintain impervious system. Quite
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1 honestly, responding to customer service component of
2 that billing to the customers was more than we
3 expected, but you add all that together that's where
4 we come up with the million dollars per year to run
5 the system. Running a million dollar system to
6 generate less than 25 million dollars of revenue is
7 different than a cost of a system of million dollars
8 per year to generate what ultimately would have been
9 80 million dollars a year for much different storm
10 water services. So that's five percent of that 40
11 percent number. I agree it didn't come up eight years
12 ago; the idea if you do storm water by a property tax
13 it is tax deductible as opposed to imposing impervious
14 fee. That is not an issue I recall coming up eight
15 years ago. It is now, and we feel it's significant
16 and it's an important thing to consider. You mention
17 state laws, there is the decision by the Supreme Court
18 about implementing impervious fees without a vote.
19 And some doubt as to what that means. But the other
20 part was after we implemented impervious fees, almost
21 nine months later is when state legislation started
22 going in place to take those individuals who we
23 thought would be in that paying pool and start
24 eliminating them by legislation. If they met certain
25 parameters, they don't have to pay the impervious fee.
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1 It was originally -- we made the quote somewhere -- it
2 was House Bill 661 resulted in state statute that
3 eliminated over 3500 customers who originally in the
4 proposal did not have to pay. So we're adding all
5 those together and we compare those impacts to what we
6 believe is a reasonable assumption of what would
7 happen to voted on impervious fee. If you add those
8 together like I kind of broke down, you end up with
9 total cost to our customer base of 40 percent more to
10 fund the same storm water services if you're using
11 voted-on impervious fee than if you use a property
12 tax. And I think -- if you don't mind, I'll go on.
13 We make a lot of our things here. As Susan described,
14 we are specifically going after a small component of
15 when compared to the services we planned eight years
16 ago. We're going after just operation and maintenance
17 of the public storm sewer system. Especially that
18 portions that located mostly outside of 270 that has
19 no funding to operate and maintain. Hopefully, all
20 that together answers the question you asked.
21 MR. TOMAZI: It's getting close. As I
22 recall, I didn't put it up in front of me, if you
23 divided the storm water situation into three major
24 components; yellow, red, and blue or something like
25 this. And there was a different ad valorem tax
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1 proposed for two of those Districts and one of them
2 you eliminated it all together; is that right?
3 MR. HOELSCHER: When you see yellow, red,
4 green map, you are seeing the results of various
5 individual taxing burdens that are based on residents
6 of different levels and covering different geographic
7 areas currently. So, if you're in the area, if you
8 recall the map which is red, which is outside 270,
9 there is a two cent District-wide tax that everybody
10 is paying for regulatory issues. So everybody is
11 still paying that. The difference in what everybody
12 is paying right now is because there are then other
13 taxes that are layered in more discreet areas of the
14 District that both is increase services and thus
15 increase the cost they pay. So what we're proposing
16 to change when it's all said and done, everybody would
17 pay two-cent property tax for storm water rate issue
18 and everybody would pay ten-cent property tax for
19 primarily the operation and maintenance of public
20 storm sewer system District-wide. And we have
21 mentioned we want to make sure there is a provision
22 that the additional dollars in O and M, we had
23 something designated to use. The rest of the
24 expenditures that you see in there are just the
25 spend-down of balances and current taxes that we put
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1 in place. The seven-cent tax goes away. This
2 basically replace a seven-cent tax that currently pays
3 operation and maintenance for some operation and
4 maintenance inside 270. Without public input for
5 existing O and M tax, we are going to set at zero and
6 allow that for the rate proposal. So that's why you
7 see the changes how everybody is impacted. We are
8 taking what's in place and what's been in place since
9 and prior to 1980, and trying to find a way to level
10 that all out.
11 MR. TOMAZI: But that which is already in
12 place is not going to change; is that correct?
13 MR. HOELSCHER: There is a 24-cent per
14 month charge to all waste water customers that goes --
15 that will go away, and seven-cent property tax for all
16 property within the original District boundary is
17 yellow and green area inside the map -- inside 270.
18 Those will be replaced by the ten-cent District-wide
19 property tax. That is the change we're proposing.
20 And two-cent tax would stay in place for now as we are
21 proposing the OMCI tax, the green area. We're not
22 proposing any change in structure. We are going to
23 set it as zero, and we informed all the cities what
24 we're going to do, and we won't be collecting the tax.
25 We are going to allow the District-wide tax to run for
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1 the next four years.
2 MR. TOMAZI: In your testimony, Ms. Myers,
3 you indicated the proposed tax credits, credit
4 program, has sort of suggested or inferred by the
5 Homebuilders Association, would result in some costs
6 being shifted to other folks. I guess my question is
7 more along the fair and reasonable line. Would it be
8 -- is it fair and reasonable based upon your legal
9 assessment of our mission, that providing the
10 residential rates for new construction favors one
11 group of rate payers over another, or should such a
12 credit program in order to be, if you will, legal or
13 based upon our criteria, would it have to be offered
14 to all rate payers -- not just residential, but all
15 rate payers.
16 MS. MYERS: So you're asking me what would
17 make the credit program fair and reasonable?
18 MR. TOMAZI: Right.
19 MS. MYERS: In our proposal, I'd rather
20 answer that that our -- we feel like the proposed ad
21 valorem tax that we are recommending without a credit
22 program is more fair and reasonable to all of the --
23 all of our customers. So we don't get into the fact
24 of whether who we would allow a credit to and who we
25 would not -- whether that affects the fair and
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1 reasonableness of it. Bill Stannard in his testimony
2 has testified to the fair and reasonable necessary of
3 the proposed storm water funding source that we have
4 proposed.
5 MR. TOMAZI: That didn't quite fully answer
6 my question to my understanding.
7 MS. MYERS: Okay.
8 MR. TOMAZI: The question, again, is if a
9 credit was extended to new home buyers, would that be
10 fair and reasonable prima facia, or would it have to
11 be extended to all rate payers. This is just --
12 MR. HOELSCHER: I will tell you the
13 District's position is a credit program for what we're
14 proposing -- the way we are proposing it would not be
15 fair and reasonable with what we're proposing. As far
16 as I'll extend that to other proposals we make in the
17 future for other types of services and other ways to
18 pay for those, a credit program may be. But for what
19 we're proposing, I think it's safe to say we don't
20 feel a credit program would be fair and reasonable.
21 MR. TOMAZI: Thank you.
22 MR. SCHNEIDER: Mr. Schneider?
23 MR. SCHNEIDER: You mention discussion
24 between impervious charges and ad valorem tax.
25 Previously, the District made impervious service fee.
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1 What year was that proposal done?
2 MS. MYERS: I believe it was brought to the
3 Rate Commission in 2007.
4 MR. HOELSCHER: It's for 2008 to 2012 rate
5 cycle, so we brought it in 2007.
6 MR. SCHNEIDER: Will the District be
7 willing to provide an exhibit for this Rate Commission
8 proposed rate change proposal for 2008 to 2012
9 proposal as an exhibit?
10 MS. MYERS: Certainly, it's already been
11 supplied as an exhibit. I'll find out an exhibit
12 number for you. It's Exhibit MSD number 6.
13 MR. SCHNEIDER: Thank you.
14 MS. MYERS: I'm sorry. It's Exhibits 5 and
15 6.
16 MR. SCHNEIDER: Okay. I'll find that.
17 MR. TOENJES: All right. Mr. Mahfood?
18 MR. MAHFOOD: When talking about the whole
19 discussion between the impervious fee and what's being
20 proposed, one of the things looking at this and
21 looking out into the future, the ad valorem tax
22 approach, which is tried and proven, that's one that
23 doesn't go back and reopen the Court case and take us
24 back into that, but it doesn't provide any kind of a
25 foundation for kind of training the public or moving
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1 the public towards a different attitude about storm
2 water unless it's accompanied by a fairly arduous
3 educational side. And that's why I speak for the
4 other commissioners that's why things like credits and
5 incentives, although maybe not quantifiably
6 justifiable in the short term and in this rate, it
7 would seem to have the ability to kind of train people
8 and move them in the direction that would be very
9 valuable for the District later on as you're trying to
10 comply with more regulations and more onerous kinds of
11 things. I don't know. I know that's more of a softer
12 question, but does that ever come into the thinking?
13 MR. HOELSCHER: That's a good opinion on
14 our strategic thinking that's all in the back of our
15 mind. I think rates is just one way to try to change
16 folks opinions. I will tell you right now in the
17 whole area of storm water impact or rain water run you
18 have impact on other ones in our world that's kind of
19 are dividing we take care of waste water rates every
20 where else we take care of storm water revenue. If
21 you use the example in the combined sewer system,
22 right now at no time types of benefits we are seeing
23 just yesterday was at the opening of the first roof
24 garden, roof farm in St. Louis. It's over 1335
25 Convention Center place, and that came through a grant
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1 program, that comes out of a 100 million dollar green
2 program for combined sewer areas. We have seen a lot
3 of benefits from offering grants as well as doing our
4 own work where we're installing green infrastructure
5 throughout the city in order to reduce storm water
6 that's coming no and resulting in overflows in the
7 presiding sewer system. So we're seeing the combined
8 area a lot of progress and a lot of results from
9 offering those types of factors. Now, where we're at
10 on funding and where we're at on regulatory
11 perspective, we don't really have the ability for a
12 lot of reasons to do that in separate sewer area, but
13 that hasn't kept us from teaming with primarily
14 Botanical Garden and other areas where we're using
15 OMCI money for storm water issue. We are having them
16 assist, sometimes via grants or something like that,
17 where folks -- one of the biggest things about this
18 is putting -- you want to put it in places where
19 people want it. You don't want to put it in places
20 where people don't want it, and don't want to maintain
21 it. Working with Deer Creek Water shed group. That's
22 primarily. We're taking our storm water issues take
23 are mostly erosion and flooding issues with the money
24 in the grown areas we're depending those through our
25 assistance to outside funding to put green
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1 infrastructure as part we're not using our funds to do
2 that we're making sure we say revenue neutral, but in
3 teaming with other folks where we're putting examples
4 out there and identify those who really find this
5 important. And I will tell you we don't have any
6 evidence we haven't submitted anything like that. We
7 are seeing a lot of positive impact from various, we
8 have steering committee groups that our capital
9 program to see what's going on with green
10 infrastructure and how folks are talking about it and
11 how it's funded, and more importantly how our
12 particular piece of what green infrastructure means,
13 and start matching up with our needs. I mention roof
14 farm, and got plenty of rain today. They are taking
15 care of heat island issues. They are taking care of
16 distribution of natural foods throughout area for
17 folks who don't have access to that either by donation
18 or by purchase. So we're finding that operating with
19 all those types of folks is a real benefit. One Of
20 the concerns, I guess, one of the items we brought up
21 when we were talking about impervious rate and let's
22 go outside credits. Let's talk about impervious
23 service. You would never -- the easiest way to
24 eliminate your impervious service, so let's say you
25 want to take a driveway, rip it out, and put a
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1 pervious driveway in. That's a 100 percent credit for
2 impervious area. There is no way it would be a
3 financial driver for folks to do that unless they are
4 oriented to do it because a reduction in cost the
5 individual owner would in no way ever come close to
6 seeing the benefit of that. So I would put it to you,
7 -- our experience has been, yeah, that is one tool and
8 it is something at an appropriate time we would not be
9 opposed to. Let's say you start addressing water
10 quality issue of storm water runoff in the services,
11 those might be a component. Might be in the proposal
12 in 2007, but specifically for all the reasons we've
13 outlined in the testimony and document we submitted
14 where this particular piece of the funding, and those
15 particular issues that we're trying to address, which
16 we think of most immediate ones, this isn't the time
17 to have that discussion for this particular piece.
18 But we will continue all the similar past activities.
19 If that's good enough soft answer.
20 MR. MAHFOOD: That's good. I wanted to hear
21 your thinking and how it's working. Thank you.
22 MR. TOENJES: Mr. Mahanta?
23 MR. MAHANTA: Brian, I'm going to build on
24 what Steve touched upon, and I have a similar interest
25 on that. It is commendable that you are doing the
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1 things you have been doing in that regard. But how
2 can we extend that to bigger areas or larger area of
3 your responsibility, not just areas where, the yellow
4 area is sort of combining storm and waste is combined
5 because it's positive thing and we would like to see
6 some efforts as far as to extend it farther. I don't
7 know how we are going to do that, but that's something
8 I would like to see, too. Now, come back on Page 3,
9 that 40 percent increase in cost, can you give us a
10 handle on the magnitude of, let's say, that you are --
11 our commission decides to recommend that that the
12 impervious area is considered and it's obviously going
13 to cost you extra to keep the same amount of money
14 because of expense for administering all that. What
15 would be the order of magnitude increase that you will
16 have to earn or obtain to get the same amount.
17 MR. HOELSCHER: The second part I would
18 like to comment on first thing, but on the second item
19 in doing quick math in my head, so you can't hold me
20 to this. We're looking at about $25 million of
21 revenue that we want to collect under proposed tax
22 assuming what we've laid out is accurate we would be
23 asking rate payers to pay $35 million a year for some
24 areas or about ten million dollars more per year using
25 impervious rate. We feel that's significant, and as
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1 we stated, a significant enough difference -- enough
2 of an extra amount it really needs to be considered
3 when you consider what is fair and reasonable versus
4 alternative that are all ton landfill. So it's about
5 $10 million. On the first item, MSD right now has not
6 attempted to do anything beyond current regulatory
7 requirement. If can you imagine, we get a lot of push
8 back about doing anything extra. We're being real
9 creative when we work with Deer creek Water Shed
10 that's within the green areas that's doing some things
11 with green infrastructure right now the current plan
12 we have in place, the program that the two cent tax is
13 funding is meeting storm water quality requirements.
14 MSD has not asked to do something to go beyond current
15 regulatory requirement. My opinion is it's not the
16 right time to ask people if they want to pay more than
17 what is the minimum regulatory requirement. All those
18 things we have to get some programs in place that will
19 do that, get people thinking about things. And very
20 specifically to that and I think in our testimony we
21 discussed this briefly about -- when the issue of
22 integrated planning came up, one of the arguments we
23 made in discussions with primarily MDNR and what we
24 need to do with our storm water program is that one of
25 the biggest, most immediate impacts on the quality of
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1 local creeks and streams is proper execution of the
2 waste water program, the consent decree, the overflows
3 from the system, basement backups, those types of
4 things. We are seeing benefits of those in storm
5 water quality. We are seeing benefits in the creek
6 water quality from one program we have in place right
7 now to police and govern runoff on storm water. So
8 right now we're in a place where, and we've had folks
9 check up. They want to make sure we weren't over
10 reaching. We went through pretty arduous process.
11 Folks claim we were going past that. We're very
12 cognizant at this point if you think we're asking
13 folks to pay, not for us to pay -- not for us to
14 propose to do something what is beyond the regulatory
15 minimum. You need to do it in smart way and we need
16 to keep the future in mind and I think a lot of things
17 that are coming out of efforts to combine sewer
18 system, not just the city. There is 20 square miles
19 adjacent to that and some of the efforts as we do
20 storm water projects, I will tell you, for instance,
21 every time there is a development or storm water out
22 in the red area or green area, the first things our
23 folks talk is hey, you got may be a volume issue here.
24 Some green alternative take a look at information on
25 our web site, take a look at other source we have as
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1 ways to resolve, make it green solution rather than
2 having big detention basis to hold water back, let's
3 think of the water quality a little bit. I don't
4 disagree that we eventually have got to think about
5 it, but I right now MSD isn't in a place to recommend
6 that. That goes beyond the regulatory requirement and
7 cost associated to that.
8 MR. TOENJES: Any of the other rate
9 commissioners have any questions for Ms. Myers or the
10 District at this point. I have one question -- two
11 questions. And maybe this is nothing your prepared to
12 answer right now, but you mentioned House bill 661,
13 and the changes that had in the folks that would be
14 subject to an impervious fee. Could you briefly
15 describe what House Bill 661 did and how that changed
16 from 2007 and 8 rate case to where we are today?
17 MR. HOELSCHER: So after the 2007 rate case
18 that we implemented the impervious fee structure that
19 went through the Rate Commission process, there was a
20 -- we view the situation as outcry -- however, you
21 connect these. From individuals who have always been
22 paying a storm water ad valorem property tax to us,
23 our property tax -- the two cent property tax being
24 such a small part of the property tax. Many of them
25 didn't realize they were paying that. And the
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1 legislature response while we were implementing the
2 impervious fee was that any residential, this is HB.
3 661, which has a resulted in status that's referenced,
4 anybody who is a residential customer who doesn't
5 receive waste water service from MSD and whose runoff
6 does not enter part of the public storm system manhole
7 inlet pipe, does not have to pay a fee. The language
8 in that was they don't have to pay any fee rates or
9 taxes. So when that went in place and this is while
10 we're implementing it, we took those folks off the
11 rolls back when we had the original impervious rate
12 prior to the Ford action that caused us to stop
13 collecting that. That is still on the box. I think
14 we have testified in either Ms. Myers' testimony or
15 someone else, we feel there is constitutional
16 authority for us to -- regardless of that legislation
17 that allows us to collect property taxes because of
18 some constitutional guarantees, but it is pretty
19 obvious that any kind of fee, rate, however a Court or
20 somebody would interpret that, what we would have the
21 same impact that we wouldn't collect from those. I'm
22 saying at least 3500. It's like 3630 customers who
23 stopped paying the impervious fee after the rate case
24 when the courts -- our reaction to the court was to
25 stop the impervious fee and go back to taxes. We did
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1 put them back on the tax rolls and they had to pay
2 property tax since then. So that is the last that's
3 in place. And now I'm just imaging, I don't know if
4 it's long leap for some legislature to believe that
5 even though in our testimony we found we think it's
6 important for those to use the public sewer system
7 whether there is one on the street or not to
8 participate with that infrastructure within the
9 boundaries. They can do that with folks that do
10 receive waste water service from and maybe all the
11 runoff on the back of their property to the creek or
12 somewhere else. So when we talk about over extending
13 that, based on our experience and discussions with
14 certain individuals and legislators you might see
15 something like that come in the future. We think this
16 issue is important enough for this particular piece
17 that we want to fund MSD, another reason to avoid
18 doing any kind of impervious fee -- if I answered
19 your question.
20 MR. TOENJES: The final legislation that's
21 passed is that part of the record?
22 MR. HOELSCHER: It is part of the record
23 and it is in one of our surveys, but at that time we
24 mention HB 661 and go and mention exact statute, give
25 the exact statutes that's currently in Missouri
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1 statute.
2 MR. TOENJES: My last question has to do
3 with you talked about the difference in service levels
4 of storm water between prior rate case and this case.
5 And it's primarily capital improvements.
6 MR. HOELSCHER: It was -- in general it was
7 about 30 percent O and M, ten percent storm water
8 regulatory, and about 60 percent capital. That was
9 the scope of the previous proposal.
10 MR. TOENJES: Any other questions of the
11 rate commissioners for Ms Myers? Ms. Bowser?
12 MS. BOWSER: You're saying that the Court
13 case leads you to believe that the impervious fee
14 would be challenged again, am I correct.
15 MS. MYERS: What we're saying is that in
16 our opinion the Supreme Court did not give real clear
17 direction. What they did give us direction on was the
18 impervious fee that we were trying to implement at the
19 time it needed to be voted on. We don't feel that
20 they went as far to say that that actual fee was a
21 tax.
22 MS. BOWSER: But the impression you feel at
23 this time an ad valorem tax will not be challenged or
24 less likely to be challenged?
25 MS. MYERS: Correct.
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1 MS. BOWSER: Is there a specific part of
2 the constitution that you are citing to make that
3 determination?
4 MS. MYERS: Yes, in one of my testimonies
5 or on maybe a discovery request, I went through what
6 we feel gives you authority to tax it has to do with
7 our charter. It has to do with the constitution, and
8 has to do with tax laws. And I believe one of the
9 rate commission's discovery request. I don't remember
10 which one.
11 MS. BOWSER: Thank you.
12 MR. TOENJES: Any further questions for Ms.
13 Myers? Thank you very much. Mr. Neuschafer, would
14 you like to address the Rate Commission on behalf of
15 Missouri Industrial Energy Consumers?
16 MR. NEUSCHAFER: I would.
17 MR. TOENJES: Please proceed.
18 MR. NEUSCHAFER: Thank you for the
19 opportunity to represent MIEC on the rate change
20 proposal. As you're aware I represent the Missouri
21 Industrial Energy Consumers, which is a group of large
22 industrial energy consumers of MSD waste water and
23 storm water service who will be impacted by the rate
24 change proposal. We appreciate the significant amount
25 of work put into this process by all parties and
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1 recognize it's not always been an easy process. It's
2 also one that is filed with a lot of data and
3 information. However, we strongly believe that it has
4 been and continues to be a beneficial process for both
5 MSD and its customers. For example, in the last two
6 rate cases, the Rate Commission has consistently
7 recommended five to ten percent less than those
8 proposed by MSD. But you recall MSD reports its on
9 track and even below budget for meeting its obligation
10 under the consent decree. The net result is that
11 because of the careful review of MSD rate change
12 proposals, the Rate Commission has been able to reduce
13 the rate impact on consumers while still allowing MSD
14 to meet its operational needs and legal obligation.
15 We believe there is similar and significant
16 opportunities here to scrutinize the rate change
17 proposal in a manner that accomplishes the same dual
18 goals of reducing rate impact on consumers while still
19 providing the revenue necessary for MSD to meet its
20 operational needs and legal obligations.
21 In summary, MIEC has four main points.
22 Each will be outlined in more detail in pre-hearing
23 conference report to be filed by MIEC and which have
24 been discussed in the rebuttal testimony and discovery
25 responses filed by MIEC. First, MIEC believes MSD has
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1 understated its forecasted revenue. MSD has taken
2 aggressive approach to projections about shrinking
3 customer base and waste water volumes and at the same
4 time has understated future revenue from other
5 service. This means MSD has requested a rate that is
6 higher than needed. The ultimate impact of
7 understating forecasted revenue is unnecessarily
8 increased rates imposed upon the customers.
9 Second, MSD has overstated concerns to O
10 and M, namely utility cost projections. If one uses
11 forecast based on utilities only projections and not
12 just based on historical rates, we see an opportunity
13 to further reduce the rate burden on users.
14 Third, MIEC supports MSD's efforts to fund
15 a significant portion of the capital improvement and
16 replacement program through the use of bonds and
17 proceeds from state revolving funds although we
18 believe there an ample opportunity to modify the bond
19 proposal to increase the amount of bonds issued and/or
20 extend the life the bonds issued.
21 Fourth, MIEC agrees that the storm water
22 rate increase proposed by MSD is not equitable and
23 balanced approach to charge customers for storm water
24 services. Putting these in terms of the charter plan
25 factor that the Rate Commission must consider, we
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1 think these points are directly related to, one, the
2 District's ability to provide adequate sewer and
3 drainage systems and facility or related services; the
4 District's ability to comply with applicable federal
5 or state laws or regulations, and most significantly
6 whether the proposed rates impose a fair and
7 reasonable burden on all classes of rate payers.
8 I first want to dive into the
9 understatement of revenue in a bit more detail. As I
10 mentioned, MSD has understated forecasted revenue from
11 other sources. The first of these sources is waste
12 hauler user fees. MSD projects a decline in revenue
13 from waste hauler permits down to $670,000. However,
14 in its annual report for year ending in June 2014, MSD
15 indicated that quote licenses, permits, and other fees
16 increased 3.8 million or 140.3 percent due primarily
17 to increase in waste haul permits. This suggests that
18 recent data shows decrease in waste haul permit fees
19 is not likely. The total amount MSD projects to
20 collect over the four year course of rate proposal is
21 essentially equal to the same amount projected to be
22 collected in 2015 alone and only about 60 percent of
23 the amount collected in 2014. Accordingly, MIEC
24 recommends adjustment to other revenue associate with
25 waste hauler permits that approximately double MSD's
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1 projections. And returns the revenue projects to
2 level more consistent with data over the last five
3 years.
4 With respect to bad debt, MSD has increased
5 it's bad debt provision from historical one percent to
6 1.5 percent. However, actual collections from fiscal
7 year '10 through '14 show that bad debt provision has
8 actually declined to one percent. Additionally, MSD
9 indicates that it has made investments in a program to
10 recover bad debt, which have been successful, and thus
11 customers should see the benefit of these investments
12 in recovering bad debt. MSD's projection has the
13 effect of significantly increasing its bad debt
14 provision, which is regarded as a negative against
15 other revenue. The net effect of modifying this
16 projection as proposed by MIEC is increases in other
17 revenue of approximately $2 million per year on
18 average. With respect to late charges or late penalty
19 fees, late payment charges are based on penalty
20 applied to unpaid bills. It's a logical conclusion
21 that as MSD rates increase, the dollar amount of
22 unpaid bills will increase a similar amount and late
23 payment charges will increase in line with the rate
24 increase, correcting MSD's projection of late charge
25 penalty revenues will increase over other revenue
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1 sources about three and a half million dollars per
2 year on average during the forecast period. MIEC also
3 believes MSD's projection understated the number of
4 customers and volume of waste water treated. With
5 respect to the number of customers, we point the Rate
6 Commission to several factors, first the number of
7 connection permits issued annually is on the rise. In
8 2010 this number was 763. In 2014, it was 1764, an
9 increase of one thousands permits. MSD has attempted
10 to explain this increase away, but has provided no
11 real data showing this is anything other than two and
12 a half times increase in the number of permits issued
13 in four years. Taking into account the intervening
14 year, the data clearly shows the number of connection
15 permits is on the rise. Add into this, MSD data
16 indicating that the rate of decline in total number of
17 customers has slowed even to the point that total
18 number of customers actually increased in 2014, which
19 is the same year that MSD issued over 1700 new
20 connection permits. We believe that this data shows
21 that MIEC will at worst maintain flat level of
22 customers and, in fact, may be entering a period of
23 customer growth. This is consist with the Moody
24 analytical report that we have previously provided,
25 which indicates the number of new single family
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1 housing permits is expected to more than double in
2 each of 2016 through 2019 over 2014 numbers. While
3 the geography covered by that report includes part of
4 southern Illinois, the vast majority of the population
5 and thus the expected housing construction is within
6 MSD coverage area.
7 Next MIEC does not disagree with MSD's
8 assumption of a modest decrease over time in waste
9 water volume received from metered users. However,
10 MSD's projection of volume received from unmetered
11 customers present an anomalous one time decrease in
12 unmetered volume in fiscal year -- in fiscal year '17
13 over fiscal year '16, an almost ten percent decrease
14 in one year. MSD's projections appear to be based on
15 assumptions without corresponding verification and
16 costs of other operating data that the volume used by
17 unmetered customers will decline in fiscal year '17
18 relative to fiscal year '16. However, considering
19 certain facts, the notion that this decrease will
20 occur is refuted. First, the level of pumped volume
21 as reported by MSD in its annual reports for fiscal
22 year '12 through '14 has not actually declined.
23 Second, MSD's projection for reduced volume sales to
24 unmetered customers is inconsistent with the St. Louis
25 Water District projections for water sales. Third,
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1 MSD has not accounted for any expense offsets for
2 inputs like electricity cost or chemicals. Fourth,
3 there does not appear to have been any tests of actual
4 volume treatment, volume flow in the water treatment
5 process or water collection process. Operational data
6 to support the assumption is simply not there. And
7 finally, as discussed previously, the number of
8 customers may actually been increasing.
9 I want to turn to the next major point,
10 which is that MSD has overstated its future O and M
11 costs. MSD has proposed a five percent increase --
12 approximately five percent increase in utility cost
13 where MIEC proposed three percent increase every other
14 year. MIEC's number is based on future projections by
15 the utilities themselves. Ameren's own projections
16 are for two percent growth per year during the term of
17 rate proposal, an amount very similar to MIEC's
18 proposed three percent increase every other year
19 during the term of rate proposal. MSD, on the other
20 hand, appears to have based its projection solely on
21 historical costs. A critical factor though is that
22 these historical costs occurred during a period of
23 significant capital expenditures by Ameren, which
24 period is winding down. As such, MIEC asserts that
25 the utilities' own projections are a much better
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1 predictor of MSD's anticipated utility cost than past
2 cost.
3 So for its recommendation, MIEC has
4 proposed the following; in its last rate case, MSD
5 increased internal PAYGO from $20 million to $40
6 million. Now, MSD seeks an increase of up to $70
7 million to $114 million during the forecast period
8 fiscal year '17 through fiscal year '20. MSD's
9 proposal to more than triple internal PAYGO funding
10 will create unnecessary price pressures on its
11 customers. Starting in fiscal '20 MIEC recommends
12 that the amount of PAYGO funding be limited to $100
13 million per year and additional debt should be used to
14 fund the peak of MSD's capital program. We
15 acknowledge soon after fiscal year '20 the amount of
16 PAYGO funding is going to be by the need to meet that
17 service coverage requirement and target level of days
18 of cash on hand.
19 Taking all the above into account, MIEC has
20 proposed waste water rates that are approximately ten
21 percent lower than the rates sought by MSD. This
22 proposal is outlined in Mr. Gorman's rebuttal
23 testimony, and will again be outlined in MIEC's pre-
24 hearing conference report. Such reduction is
25 consistent with prior analyses of recommendations from
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1 the Rate Commission on MSD's proposal, given MSD's
2 otherwise conservative revenue forecast will still
3 provide MSD necessary operational flexability to meet
4 its obligations. At the same time it will help
5 protect MSD's customers from the hardships and burdens
6 of utilities cost that increase at unnecessary and
7 unjustifiably high rate.
8 I would like to take a moment to respond
9 one point made by Ms. Myers in her presentation. It's
10 on page 7 of her written statement. She indicated
11 that if MSD collects revenue in excess of its
12 forecasted, the District will move forward and
13 expedite the consent decree compliance related work or
14 continue other work. And while that's fine, I would
15 like to note that this doesn't take into account the
16 impact on consumers of unnecessarily high rates at
17 this point in time. Instead, what that does is create
18 new base line for the next rate case. Rather than
19 giving consumers the benefit of having lower rates
20 than necessary for the next four year period, it
21 increases their current rates, create new baseline
22 which will serve as a base line for the next rate case
23 presumably will lead to increase rates at that point
24 in time. So the goal might be admirable, but we can't
25 disregard the impact that will have on rate payers in
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1 the interim.
2 Although, most of our testimony has been
3 focused on waste water, we do -- I do want to make a
4 comment on storm water, but we will largely reserve
5 our comments on storm water for the testimony that's
6 already been introduced for pre-hearing conference
7 reporter. I do want to point out MIEC believes the
8 significant changes to storm water rates proposed by
9 MSD do not present a fair or reasonable burden on all
10 class of rate payers as evidenced by the testimony
11 introduced by the Rate Commission by the intervener
12 Home Builders Association and as supported by MSD's
13 own consulting firm a uniform tax based on property
14 value has no relation to cost causation and is not
15 equitable. MIEC recommends that the current storm
16 water rate system be retained. Although, we also
17 recognize even a rate system based on user fees
18 impervious area is more fair and equitable than MSD's
19 proposal which is linked solely to property values.
20 That concludes our prepared statement. As
21 I indicated, we will provide a pre-hearing conference
22 report, which will contain significantly more detail
23 than the brief statement we have provided today.
24 MR. TOENJES: I would ask any of the Rate
25 Commission if they have any questions for Mr.
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1 Neuschafer at this time. Hearing none, thank you, Mr.
2 Neuschafer.
3 MR. NEUSCHAFER: Thank you.
4 MR. TOENJES: Mr. Goss, would you like to
5 address the Rate Commission on behalf of the Home
6 Builders Association?
7 MR. GOSS: I would, Mr. Chairman. Prior to
8 making our statement, I would ask also the
9 Commission's indulgence, as Mr. Arnold just asked for
10 their indulgence a little earlier. We were also
11 confused on the dead line, and we did submit two EPA
12 publications this week. The EPA funding storm water
13 program and EPA publication reducing storm water cost
14 through low impact development strategies and
15 practice. And ask if those could be admitted as
16 exhibits into the record as well.
17 MS. MYERS: Yes, I would like to object.
18 HBA provided information on Monday, which was the dead
19 line that the Rate Commission had given everyone to
20 submit supplemental information. So when the District
21 received HBA's additional information late yesterday
22 after we reached out to the Rate Commission's legal
23 counsel for guidance and had not gotten a response
24 back from them. So those two documents have got put
25 in the record as exhibits and I would object to them
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1 being added now at this late date. Since the
2 Commission extended the date for supplemental
3 information to begin with to June 22, which was last
4 Monday. And all the other parties seemed to comply
5 with that date. Well, John asked for forgiveness. And
6 I would just object at this point.
7 MR. TOENJES: Mr. Arnold, Ms. Stump, any
8 comments?
9 MR. ARNOLD: Mr. Chairman, members of the
10 commission, I have no objection to admitting the
11 information which Mr. Goss has described. I am
12 informed on that decision by my service for the very
13 stock exchanges and FINRA and NASD, the one way you
14 can get your award overturned is by not permitting a
15 party to fully present their case. So I would suggest
16 to the Commission that this information be admitted.
17 And if Ms. Myers on behalf of the District wants to
18 respond, she may be permitted to do so.
19 MR. TOENJES: Mr. Neuschafer, any comments.
20 MR. NEUSCHAFER: No objection.
21 MR. TOENJES: Well, based on that, as
22 Chair, I think to be full and transparent in our
23 hearing, we will admit those and assign exhibit
24 numbers to those two. So, Mr. Goss, proceed.
25 MR. GOSS: Yes, sir. Thank you.
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1 MS. MYERS: Can I ask a question? Did the
2 Rate Commission's counsel offer for us to be able to
3 respond to that?
4 MR. TOENJES: Yes.
5 MS. MYERS: What are the parameters on that
6 response?
7 MR. TOENJES: I would suggest and I will
8 open this for discussion that since our next public
9 hearing session is scheduled for July 10th, that I
10 would recommend that any response be received prior to
11 July 10.
12 MS. MYERS: And is that the District is the
13 only one that has the ability to respond or is all of
14 the parties have the ability to respond?
15 MR. TOENJES: All of the parties.
16 MR. GOSS: Mr. Chairman, just to clarify
17 all, we're doing is submitting two publications from
18 the Environmental Protection Agency that one dates
19 from 2007 and one dates from 2009 relating to storm
20 water program and strategies for funding. I'm not
21 quite sure what the response would be other than this
22 is what the EPA has put forward.
23 MR. HOELSCHER: The response would have to
24 be the proper application of that information and not
25 just throwing it out without context. We feel it's
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1 appropriate for to us be able to respond.
2 MR. TOENJES: Okay. July 10 prior to 9
3 a.m. on July ten. Proceed, Mr. Goss.
4 MR. GOSS: Thank you, Mr. Toenjes, members
5 of the commission. The Home Builders Association of
6 St. Louis and Eastern Missouri thanks you for your
7 service and appreciates the opportunity to be able to
8 present testimony into evidence in connection with
9 these proceedings. We have intervened in this 2015
10 rate change proceeding not to make the District's
11 already difficult task more difficult, but to assist
12 in ensuring that the funding methodology satisfies the
13 charter requirement. In particular, there are two
14 requirement we think are really at issue with this
15 rate. One is the fairness and equitable nature of the
16 rate. And second is the ability of this rate to
17 enhance the ability of the District to provide
18 enhanced sewer and drainage systems and facility
19 related service to the rate payers of St. Louis. We
20 believe that the proposed ad valorem property tax is
21 deficient in these two areas, and we have approached
22 this rate looking at two primary concerns. The first
23 concern is over arching issue whether ad valorem
24 property tax can be implemented in a manner that's
25 fair and equitable when there is seemingly no nexus
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1 between property value and storm water service
2 provided by the District. The same concern was in
3 fact articulated by the District in its -- during the
4 Zweig case. That is 2013 Missouri Supreme Court case
5 in which the District defined use of funding
6 methodology based on impervious area. At that time
7 the District insisted that quote "a tax based on the
8 assessed valuation of a property has no relation to
9 storm water services" close quote. In the two years
10 since the Zweig decision, the District has seemingly
11 done a 180 degree change in its position as it's now
12 arguing property based tax is fair and equitable, but
13 that there is a nexus between property value and
14 proposed tax because the tax is directed solely to the
15 operation and maintenance of public storm water
16 system. The District's new position is at odds with
17 its previous position, and with that of the United
18 States Environmental Protection Agency. The EPA has
19 consistently taken a position that the cost of storm
20 water service and management bears no relationship to
21 the assessed value of the property and, therefore, the
22 method is not equitable. In addition, the District
23 provided the Commission with testimony from William
24 Stannard. Mr. Stannard has testified that the use of
25 property tax funding cost of storm water system is a
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1 common method used by cities and counties throughout
2 the United states, and alternative methods based on
3 impervious ground would be cost prohibitive. Mr.
4 Stannard's position are at odds with both the Black
5 and Veatch 2014 storm water utility survey produced by
6 the District and MSD 84G and opinions of George
7 Ratellus, the founder of the company. Mr. Stannard
8 works for and encourages the Commission to review the
9 Black and Veatch study that provides that only four
10 percent of utilities used ad valorem tax to funds
11 storm water. Hardly what I would call a common
12 methodology. I also encourage the Commission to
13 review the expert from water and waste water financing
14 pricing authored by George Ratellus that provides many
15 of the technical barriers to implementing storm water
16 has far and away making it more cost effective to
17 implement funding methods, for example, of cost
18 effective method. The commission can review the
19 funding storm water program published by the EPA
20 experts, from Mr. Ratellus's book and EPA publication
21 has have been provided by HBA for you review in
22 Exhibit HBA 124C.
23 We've also submitted as part of our
24 testimony a response to this notion that there would
25 be 40 percent increase in the fees for rate payers if
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1 the inpervious surface were used for the calculation.
2 And in fact, that overstates and misstates what would
3 occur, in our opinion, given that what that
4 calculation is based important is individual
5 calculations of each parcel of property to determine
6 what the impervious surface is for each parcel of
7 property. That, in fact, is not what most District
8 use in order to determine what the impervious surface
9 really is and what the fee should be. Instead the
10 most common method used by utilities is calculation
11 single family home is a uniform flat fee structure
12 often referred to as equivalent residential unit or
13 equivalent service unit method. Under this method,
14 representative sample parcel is reviewed to determine
15 if this parcel with the average amount being used
16 residentially. Unless utilities charge flat rate
17 defined as based multi or one equivalent residential
18 unit alternative, some utilities have established a
19 tiered structure so they have served tiered rates
20 based on equivalent residential units. So the number
21 of utilities that are using an individual calculation
22 is very small, perhaps six percent of the utilities
23 that were surveyed. And if you use an individual
24 calculation of every parcel out there in this District
25 your costs are going to be very high to administer if
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1 you use the equivalent residential unit, which is what
2 most utilities use, that's not the case. Most
3 utilities don't have ad valorem tax rate system for
4 storm water. They use imperious surface. If this
5 were so cost prohibitive, how are these other
6 utilities able to implement that kind of system. It
7 simply doesn't add up. And the reason they are able
8 to implement it is they use different methodology that
9 in fact works.
10 The second concern that the HBA has is
11 addressed in these proceedings has been lack of storm
12 water credit program and storm water rate change
13 proposal. HBA introduced item of continued storm
14 water credit program into the storm water proposal in
15 an effort to address the HBA's first concern. In
16 other words, credit program would provide possible
17 means implementing ad valorem property tax in matter
18 that's fair and more equitable. However, we also
19 introduced that credit because we believe the credit
20 system will enhance the District's ability to provide
21 adequate sewer and drain and system and facility or
22 relate service which is another one of the criteria
23 that the Rate Commission should examine under the
24 charter. Under the current proposed structure,
25 property owners are being charged twice for storm
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1 water management once through ad valorem property tax
2 and once through maintain better management practice
3 on their property. For those property owners who have
4 installed some form of O and M such as rain guarding
5 or retention basins. HBA has illustrated various
6 options for storm water credit programs and
7 illustrating infact these storm water credit programs
8 work. And this in fact enhances the management of
9 storm water in those various areas. Storm water
10 credit progrmas are not a new concept to the District
11 and could offer several equitable and practical
12 advances over current structure. The District agreed
13 credit programs in past rate proposals and currently
14 offers a form of offsetting the cost of ENP
15 installation on small scale through MSD project clear
16 rainscaping small grants program.
17 None the less the District has responded to
18 HBA's suggestion by arguing essentially two points.
19 The first being BMP have no relation to impose talks
20 because water quality issues related to storm are
21 currently funded by regulatory tax. And second credit
22 program associated with installation of BMP to factor
23 costs to other customers because BMP address quality
24 and quantity of storm water runoff with no effect on
25 the District's operation and maintenance cost. Given
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1 what we experience in last two weeks and articles that
2 have appeared in the Post Dispatch of MSD responding
3 to various problems in the area of customers and
4 addressing various problems with storm water over
5 flow. The idea that those costs are being paid for
6 from operation and maintenance belies belief. There
7 is impact on operation and maintenance by storm water
8 impact. I think we all know that, and by implementing
9 these kinds of credit programs to better address storm
10 water volume and reduce volume, we believe that will
11 also better reduce cost overall for the District.
12 It's true the primary BMP is reduce storm water runoff
13 and improve water quality while I hope the commission
14 wil encourage them to take an active role in reducing
15 storm water runoff and check check concerning that the
16 District is mandated to address those under EPA
17 consent decree. Existing storm water system thereby
18 reducing cost of storm water management. Storm water
19 credit guides produced by HBA along with publications
20 by the EPA will illustrate the connection between BMP
21 From reduce operation and maintenance cost while the
22 District continues to rely on and to discourage
23 inclusion of storm water credit program under storm
24 water rate change proposal. HBA encourages the
25 commission to review evidence as submitted, which is
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1 benefits of such program creating fair and equitable
2 rate structure and and applicable such programs in
3 cost effectiveness while enhancing the services that
4 the District will prop with respect to storm water
5 management. That concludes our prepared remarks. We
6 will be submitted more detailed remarks into evidence
7 at the final pre-hearing conference.
8 MR. TOENJES: Thank you, Mr. Goss.
9 Questions from any of the Rate Commission?
10 MR. SCHNEIDER: Mr. Goss, you mention tax
11 credits may be a way to the equitability projection
12 you submitted as part of 124C a small grants program.
13 MSD small grants is similar, do you feel that's a
14 similar way to make more equitable, I would say, the
15 storm water usage fees and stuff?
16 MR. GOSS: I do think that's one way to do
17 that. We're not mandating any particular credit
18 program, but we do think that is an interesting
19 approach. We also like the idea of using third party
20 administrator to implement the credit programs is an
21 interesting program and can again help reduce cost for
22 the District and rate payers.
23 MR. TOENJES: Other questions for Mr. Goss?
24 Mr. Brockmann?
25 MR. BROCKMANN: Mr. Goss, do you feel the
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1 requirement that MSD imposes -- imposes is not the
2 right word -- requires new construction sites
3 specifically residential to exceed storm water
4 requirements -- not exceed -- exceed the runoff
5 requirement that presently exist on undeveloped land.
6 A. Yes. That's one of the developers are
7 mandated to restore the property to its
8 pre-development condition. There are three things
9 that developers are required to do. They are required
10 to provide stream protection, water quality, and to
11 reduce the storm water runoff to its pre-development
12 condition. That's in MS4 permit.
13 MR. BROCKMANN: But what you just was to
14 not exceed. You said to meet existing storm water
15 runoff.
16 A. No pre-existing. We have to bring it back
17 to where it was before prior to development. So it's
18 not simply what MSD has said in their testimony is
19 that we only address peak flows. That's not accurate.
20 We're doing volume reduction. And so again for that
21 reason that would be a basis because we're improving
22 the condition to provide for that credit, but I'm not
23 limiting the idea of the credit to simply something
24 that a residential home builder or developer would be
25 providing. It seems this credit should be to your
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1 question earlier, available to any customer,
2 homeowners association, goes in and puts in BMP and
3 storm water controls. We should be encouraging that.
4 I tried to drive through green trails subdivision last
5 night coming back from some friends house, I couldn't
6 get through it. It was flooded. The idea that we
7 would encourage that subdivision to go in and put in
8 BMP and controls through a credit program, I think is
9 good thing. I think it would help this District and
10 help us over all. I think that's something that would
11 enhance our ability to provide storm water services to
12 the overall area.
13 MR. BROCKMANN: Let me just say do you
14 feel MSD is asking you to exceed the pre-existing
15 condition requirement for runoff?
16 A. Yes, I do.
17 MR. BROCKMANN: And I guess I feel --not
18 addressing that, but all the rain that's happening
19 these last couple days, what they call storm events,
20 and whether that piece of property was improved or not
21 improved storm events exceed normal runoff conditions.
22 So all the talk that we have been having and
23 everything like that where excessive rain, whether the
24 property was developed or had best management practice
25 or not; correct?
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1 A. I'm not sure I understand the question. I
2 apologize.
3 Q. Are you familiar with storm events, five
4 year storm, 100 year storm?
5 A. Yes I am.
6 Q. So my point is a pre-existing piece of
7 property that was not developed and has natural runoff
8 is also applicable to storm events, so you have
9 five-year storm or 100-year storm, there is going to
10 be flooding off that property whether you came in and
11 developed it and put best management practices in
12 place or not; correct?
13 A. There could be. Yes.
14 MR. SCHNEIDER: I want to go back to your
15 testimony, because I'm not sure I heard it correct.
16 Did you say US EPA said in a document that impervious
17 fees were better than ad valorem tax?
18 MR. GOSS: Yes.
19 MR. SCHNEIDER: Are you referring to
20 document -- funding storm water programs document that
21 you submitted, where did you find that statement?
22 MR. GOSS: That's part of one of the
23 documents we've already submitted. I will get you the
24 reference to that.
25 MR. SCHNEIDER: I'm looking at Exhibit 124C
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1 that you submitted EPA funding storm water documents
2 and that document talks about funding alternatives. So
3 my question is was it in that document or another one.
4 MR. GOSS: I believe it is in that document
5 but I want to verify that. I don't want to tell you.
6 MR. SCHNEIDER: If you can tell us where in
7 the document it is, that would be helpful also. Thank
8 you.
9 MR. TOMAZI: I read through all 6 or 7 of
10 the supporting documents that you provided on
11 residential credits or residential incentive in
12 various communities. And five of the 6 the best I can
13 recall all dealt with impervious area matter. They
14 did not go into the level of detail in terms of
15 calculating actual runoff from every property but they
16 typical classify into three different levels and then
17 put a charge or an equivalent runoff unit on
18 particular property size in an amount. That probably
19 is an easier way to put together a program as compared
20 to the one that the District put together a number of
21 years ago which went down to calculation of individual
22 runoffs from individual properties. And from an
23 engineering standpoint, I liked that one. I question
24 whether any of these other incentives that have been
25 offered at any of the exhibits that you provided have
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1 been challenged by people in Court as to whether or
2 not they were fair or an appropriate based upon there
3 actual or their perceived amount of runoff?
4 A. I'm not aware of any challenges to those
5 programs.
6
7
8
9
10
11
12
13
14
15
16
17
18
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1 CERTIFICATE OF REPORTER
2 STATE OF MISSOURI )
3 ) ss.
4 CITY OF ST. LOUIS )
5 I, Jeanne M. Pedrotty, a Certified Court Reporter (MO)
6 and Certified Shorthand Reporter (IL), do hereby
7 certify that the witness whose testimony appears in
8 the foregoing deposition was duly sworn by me; that
9 the testimony of said witness was taken by me to the
10 best of my ability and thereafter reduced to
11 typewriting under my direction; that I am neither
12 counsel for, related to, nor employed by any of the
13 parties to the action in which this deposition was
14 taken, and further that I am not a relative or
15 employee of any attorney or counsel employed by the
16 parties thereto, nor financially or otherwise
17 interested in the outcome of the action.
18
19 ____________________________
20 Jeanne M. Pedrotty
21
22
23
24
25
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A
AA 30:12
ability 7:19,24
13:21 15:6,10
15:13 30:11
46:7 47:11 60:2
60:4 70:13,14
71:16,17 75:20
80:11 84:10
able 9:18 58:12
70:2 71:1,7
75:6,7
access 30:16
48:17
accompanied
7:16 46:2
accomplishes
58:17
account 23:19
25:11 62:13
65:19 66:15
accounted 64:1
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27:11
accuracy 28:21
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18:6 27:21
50:22 79:19
acknowledge
65:15
act 10:6
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54:12 84:13,17
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active 77:14
activities 49:18
activity 17:22
actual 56:20 61:6
64:3 82:15 83:3
ad 14:3 16:7,17
17:2 18:11 20:3
21:1,11 37:11
40:25 43:20
44:24 45:21
53:22 56:23
71:20,23 73:10
75:3,17 76:1
81:17
add 32:14 35:16
39:3 40:7 62:15
75:7
added 69:1
adding 40:4
addition 72:22
additional 8:17
11:17 21:5,7
24:11 33:20
41:22 65:13
68:21
Additionally
61:8
address 12:14
13:8 14:8 15:21
17:13 49:15
57:14 68:5
75:15 76:23
77:9,16 79:19
addressed 11:5
75:11
addressing 49:9
77:4 80:18
adequate 7:20
13:21 60:2
75:21
adjacent 52:19
adjustment
29:12 60:24
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administer 74:25
administering
50:14
administrator
78:20
admirable 66:24
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69:16
admitting 69:10
adopt 28:16
adopted 8:6
23:24
advanced 23:18
advances 76:12
advantage 34:6
35:8 36:19,24
37:5
advisor 30:23
affect 22:3
agency 30:21,22
70:18 72:18
aggregate 24:6
24:14
aggressive 59:2
ago 31:22 38:12
38:21 39:12,15
40:16 82:21
agree 39:11
agreed 76:12
agrees 59:21
ahead 4:2
allegation 22:4
allow 18:4 24:10
32:6 35:20
36:16 42:6,25
43:24
allowing 17:23
19:6 58:13
allows 23:16
54:17
alternative 10:1
27:1 34:24 35:3
36:9 51:4 52:24
73:2 74:18
alternatives
34:14 35:14
82:2
amended 6:25
7:18 8:1 10:11
13:13 15:7
amendment 7:1
Ameren 25:17,20
25:24 26:1,5
36:11,23 64:23
Ameren's 26:4
64:15
amount 17:18
26:3 28:22
30:14 50:13,16
51:2 57:24
59:19 60:19,21
60:23 61:21,22
64:17 65:12,15
74:15 82:18
83:3
amounts 7:12
ample 59:18
analyses 65:25
analysis 22:9
23:8 37:23
analytical 23:12
62:24
and/or 30:16,24
59:19
announce 6:9
annual 22:12
25:15 26:16,21
31:25 32:25
60:14 63:21
annually 62:7
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answer 13:24
14:20 31:15
32:22 34:18
37:6,17 38:19
43:20 44:5
49:19 53:12
answered 38:19
55:18
Answering 33:13
answers 40:20
anticipated 7:13
23:17 32:8 65:1
anybody 54:4
apologies 12:2
apologize 81:2
appear 63:14
64:3
appeared 77:2
appears 17:5
64:20 84:7
appendix 28:23
applicable 7:25
15:6 60:4 78:2
81:8
application 8:8
70:24
applications 8:9
8:13
applied 61:20
apply 21:13
22:10
applying 22:19
appreciate 57:24
appreciates 71:7
approach 45:22
59:2,23 78:19
approached
71:21
appropriate
25:12 28:7 49:8
71:1 83:2
appropriately
28:15
approved 6:23
13:17 21:24
approximately
25:4 26:4 60:25
61:17 64:12
65:20
April 9:1
arching 71:23
arduous 46:2
52:10
area 23:10 24:25
41:7 42:17,21
46:17 47:8,12
48:16 49:2 50:2
50:4,12 52:22
52:22 63:6
67:18 72:6 77:3
80:12 82:13
areas 20:4 21:3
41:7,13 47:2,14
47:24 50:2,3,24
51:10 71:21
76:9
arguing 72:12
76:18
argument 27:6
arguments 51:22
Arnold 3:13
11:13,14 12:11
68:9 69:7,9
articles 77:1
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articulated 72:3
ash 35:20,22 36:3
asked 40:20
51:14 68:9 69:5
asking 43:16
50:23 52:12
80:14
asserts 64:24
assessed 72:8,21
assessment 43:9
assets 7:10
assign 11:25
69:23
assist 47:16
71:11
assistance 47:25
associate 60:24
associated 23:1
23:19 53:7
76:22
association 3:19
8:11 43:5 67:12
68:6 71:5 80:2
assume 26:8
assumed 26:15
assumes 25:23
assuming 50:22
assumption
25:13 27:6 28:5
28:16 29:10,19
29:22 37:18
40:6 63:8 64:6
assumptions
23:7,9,11,14,18
23:23,24 24:3
24:12,21 27:2
27:19 28:7,8
29:5 63:15
assured 31:17
attempted 51:6
62:9
attitude 46:1
attorney 84:15
August 8:21
authored 73:14
authority 54:16
57:6
automatic 37:2
availability
24:13
available 14:6
24:11 33:25
34:7 80:1
average 26:3,6
29:10,18 35:1,2
61:18 62:2
74:15
avoid 55:17
avoiding 30:9
award 69:14
aware 57:20 83:4
a.m 10:20 71:3
B
back 21:8 31:14
38:20,23 45:23
45:24 46:14
50:8 51:8 53:2
54:11,25 55:1
55:11 68:24
79:16 80:5
81:14
backups 52:3
bad 29:5,7,14,23
30:1,7 61:4,5,7
61:10,12,13
Baer 3:14
balance 31:2
34:10
balanced 59:23
balances 41:25
barriers 73:15
base 25:25 26:5
32:19 40:9 59:3
66:18,22
based 13:22 28:8
29:9,11,22
30:20 37:18,22
41:5 43:8,13
55:13 59:11,12
61:19 63:14
64:14,20 67:13
67:17 69:21
72:6,7,12 73:2
74:4,17,20 83:2
baseline 66:21
basement 52:3
basically 42:2
basins 76:5
basis 31:21 53:2
79:21
battle 19:21
bears 72:20
beginning 26:6
behalf 12:15
57:14 68:5
69:17
belief 77:6
belies 77:6
believe 26:20,23
30:23 31:3
32:11 40:6 45:2
55:4 56:13 57:8
58:3,15 59:18
62:20 71:20
75:19 77:10
82:4
believes 16:21
17:11 31:12
58:25 62:3 67:7
beneficial 58:4
benefit 19:13
33:19,23 34:9
48:19 49:6
61:11 66:19
benefits 46:22
47:3 52:4,5
78:1
best 17:11 19:4
19:14 80:24
81:11 82:12
84:10
better 24:18
26:24 36:2,2
64:25 76:2 77:9
77:11 81:17
beyond 51:6,14
52:14 53:6
big 53:2
bigger 50:2
biggest 47:17
51:25
bill 31:19 33:16
37:17 40:2 44:1
53:12,15
billed 27:3,5 28:7
28:13
billing 39:2
bills 29:21 61:20
61:22
Bissell 25:10
bit 38:5 53:3 60:9
Black 73:4,9
blue 40:24
BMP 76:19,22,23
77:12,20 80:2,8
board 7:7,15
8:15,18 21:25
22:20
bond 30:11 59:18
bonds 7:9,23
14:19,23,25
15:2 59:16,19
59:20
book 73:20
Botanical 47:14
boundaries 55:9
boundary 42:16
Bowser 3:7 4:7
5:9 6:18,18
56:11,12,22
57:1,11
box 54:13
Brad 3:20
Brandon 3:17
Brian 16:3 31:15
49:23
Bridgeton 24:25
25:3,4,6
brief 10:15 67:23
briefly 9:14 13:8
51:21 53:14
bring 79:16
broad 23:25
Brockmann 3:7
4:7,8 5:9,10
6:17,17 31:10
32:23,24 38:19
78:24,25 79:13
80:13,17
broke 40:8
brought 45:2,5
48:20
Bryan 3:17
budget 33:21
58:9
build 28:1 49:23
builder 79:24
Builders 8:10
67:12 68:6 71:5
building 37:1
built 36:22
burden 8:2 15:16
15:20 16:10
17:5 21:20
37:13 38:2
59:13 60:7 67:9
burdens 41:5
66:5
Bureau 11:22
buyers 44:9
C
C 3:1
CAGR 25:20
calculate 22:15
calculating 82:15
calculation 29:17
74:1,4,10,21,24
82:21
calculations 74:5
call 2:2 4:2,5,5
5:8 73:11 80:19
capital 1:7 14:8
14:13 20:4,22
21:3,7 23:1
24:19 30:19
34:3,5 48:8
56:5,8 59:15
64:23 65:14
care 46:19,20
48:15,15
careful 58:11
carefully 11:18
28:20
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case 16:12 19:16
23:24 27:21
36:25 38:15
45:23 53:16,17
54:23 56:4,4,13
65:4 66:18,22
69:15 72:4,4
75:2
cases 58:6
cash 14:12 31:2
65:18
causation 67:14
cause 15:3 21:14
caused 19:5
54:12
Cave 3:17
CCR 3:22
CCR/CSR 3:22
Census 11:22
cent 14:3 16:7,17
17:2 18:11,13
20:3 21:1 41:9
51:12 53:23
Center 46:25
centered 16:13
cents 35:3
certain 21:3
39:24 55:14
63:19
Certainly 45:10
CERTIFICATE
84:1
Certified 84:5,6
certify 84:7
cetera 31:14
37:15 38:10,10
Chair 5:2 6:8
69:22
Chairman 6:6
11:14 12:11
68:7 69:9 70:16
challenged 56:14
56:23,24 83:1
challenges 83:4
Chan 3:8 6:19
chance 12:20
change 7:6,14,17
8:4,7,15 10:1
11:6 12:25 13:6
13:7,11,14,16
13:20,23 14:10
14:17,21,24
15:1,5,8,12,16
15:19,22 16:1,7
16:20 18:1,12
19:7,10 20:8
21:3,18,19 22:5
27:2,10 28:17
28:23 35:25
41:16 42:12,19
42:22 45:8
46:15 57:19,24
58:11,16 71:10
72:11 75:12
77:24
changed 53:15
changes 7:3,7
27:5 35:19 42:7
53:13 67:8
charge 23:2 29:6
29:8,9,15 31:24
42:14 59:23
61:24 74:16
82:17
charged 22:18
26:1 75:25
charges 22:10
29:20,23,24
30:2,4,8 44:24
61:18,19,23
charter 6:22 7:1
9:4,16 10:4
13:2,10,19,19
14:16 15:19
16:2 57:7 59:24
71:13 75:24
cheap 35:1
cheaper 34:6,13
35:5
check 52:9 77:15
77:15
chemicals 64:2
Chodes 3:3 4:11
4:12 5:13,14
6:11,11
chosen 31:1
churches 37:15
CIRP 23:2,25
cite 36:12
cities 42:23 73:1
citing 57:2
city 6:24 11:22
36:1 47:5 52:18
84:4
claim 28:18
52:11
claims 19:12
clarify 20:16
70:16
class 22:17 67:10
classes 8:2 15:17
15:20 16:10
21:20 37:13
60:7
classify 82:16
clear 17:12 27:11
56:16 76:15
clearly 62:14
close 40:21 49:5
72:9
closed 5:2 6:2,3
closing 11:7
cognizant 52:12
coincide 25:16
collect 32:6,8
50:21 54:17,21
60:20
collected 34:5
60:22,23
collecting 32:3
42:24 54:13
collection 25:1,9
29:14 30:3,5
64:5
collections 61:6
collects 24:6
66:11
combination
14:12
combine 52:17
combined 46:21
47:2,7 50:4
combining 50:4
come 21:8 31:17
32:15 39:4,11
46:12 49:5 50:8
55:15
comes 36:3 47:1
coming 39:14
47:6 52:17 80:5
commendable
49:25
comment 50:18
67:4
comments 67:5
69:8,19
commercial
35:24
commission 3:12
4:4 6:7,22 7:2,6
7:15 8:4,7,13
8:16,20,23 9:3
9:7,14,24 10:18
10:24 11:3,8,15
12:14 17:4,9
18:8,14 21:8
27:14 28:15,20
45:3,7 50:11
53:19 57:14
58:6,12 59:25
62:6 66:1 67:11
67:25 68:5,19
69:2,10,16 71:5
72:23 73:8,12
73:18 75:23
77:13,25 78:9
commissioner
6:9
commissioners
3:2 31:8 46:4
53:9 56:11
commission's
8:19 10:10 57:9
68:9,22 70:2
committee 48:8
common 7:18
13:12 22:8 73:1
73:11 74:10
communities
82:12
company 34:25
35:5 73:7
compare 40:5
compared 17:1
40:15 82:19
comparison
16:16
compliance
14:15 22:23
23:2 24:9 66:13
complies 13:1,14
13:16
comply 7:25 15:6
15:11 46:10
60:4 69:4
component 39:1
40:14 49:11
components
22:21 40:24
concept 76:10
concern 30:12
71:23 72:2
75:10,15
concerning 77:15
concerns 48:20
59:9 71:22
concludes 31:4
67:20 78:5
conclusion 26:20
61:20
concrete 35:21
condition 79:8
79:12,22 80:15
conditions 19:3
23:10 80:21
conducted 9:12
conference 1:8
9:8,12,21 10:12
10:13 37:2
58:23 65:24
67:6,21 78:7
conferences 9:1
11:3
confused 68:11
confusion 20:13
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connect 53:21
connection 62:7
62:14,20 71:8
77:20
consent 15:14
24:8 26:12 52:2
58:10 66:13
77:17
conservation
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conservative
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consider 28:16
28:20 39:16
51:3 59:25
consideration
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considerations
17:15
considered 12:3
18:7,13 26:15
33:10,14 50:12
51:2
considering
38:16 63:18
consist 62:23
consistent 7:17
7:21 13:11
14:17 15:1 31:3
61:2 65:25
consistently 58:6
72:19
consisting 16:7
constant 27:9
constitution 57:2
57:7
constitutional
7:17 13:12
54:15,18
construction
43:10 63:5 79:2
consultants 8:24
consultation
30:22
consulting 67:13
consumers 3:16
8:12 57:15,21
57:22 58:13,18
66:16,19
consumption
28:10
contain 67:22
contained 10:3
12:1 13:2
context 70:25
continue 20:4
24:9 49:18
66:14
continued 75:13
continues 26:20
58:4 77:22
contradictory
30:8
contributes
28:13
controllers 36:14
37:3
controls 80:3,8
Convention
46:25
cooperation 36:1
copy 12:18 31:5
correct 38:3
42:12 56:14,25
80:25 81:12,15
correcting 61:24
correlation 27:4
28:2
corresponding
63:15
cost 7:11 16:23
17:22,23 18:1
18:18,20,24
19:7,9,10 21:16
22:4,7,8,16,16
22:18,23 23:1
25:16,18,24
26:18 30:15,18
30:25 31:13,20
31:20,22,25
32:9,17 33:10
33:11,15 35:9,9
35:11,12 36:4,7
38:8 39:7 40:9
41:15 49:4 50:9
50:13 53:7
59:10 64:2,12
65:1,2 66:6
67:14 68:13
72:19,25 73:3
73:16,17 75:5
76:14,25 77:11
77:18,21 78:3
78:21
costs 26:18 38:24
43:5 63:16
64:11,21,22
74:25 76:23
77:5
counsel 9:13 11:8
12:22 68:23
70:2 84:12,15
counties 73:1
country 35:2,20
county 6:24
11:23
couple 80:19
course 60:20
court 3:21 19:21
37:19,24 39:17
45:23 54:19,24
56:12,16 72:4
83:1 84:5
courts 13:18
21:23 54:24
covenant 7:22
14:18
covenants 14:24
15:4
cover 7:12
coverage 63:6
65:17
covered 63:3
covering 41:6
create 35:22
65:10 66:17,21
creating 78:1
creative 51:9
credit 17:23 19:6
20:16 21:13,15
29:12 30:10,12
30:20,25 43:3
43:12,17,21,24
44:9,13,18,20
49:1 75:12,14
75:16,19,19
76:6,7,10,13,21
77:9,19,23
78:17,20 79:22
79:23,25 80:8
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37:5 43:3 46:4
48:22 78:11
82:11
creek 47:21 51:9
52:5 55:11
creeks 52:1
criteria 9:16 10:3
13:1,5,8,9
15:23 43:13
75:22
criterion 13:14
13:17
critical 64:21
CSR 3:23
current 11:10
16:25 19:25
31:3,21 32:2
35:25 37:18
41:25 51:6,11
51:14 66:21
67:15 75:24
76:12
currently 17:19
18:10 20:2,5,25
25:6 35:17,19
35:21 41:7 42:2
55:25 76:13,21
customer 22:17
27:8,11,15 28:5
29:21 31:23
32:19 33:9 39:1
40:9 54:4 59:3
62:23 80:1
customers 16:23
16:24 17:25
19:10 21:6,14
26:14 27:25
28:3 31:18,20
32:3,4,5,10,13
38:8,9 39:2
40:3 42:14
43:23 54:22
58:5 59:8,23
61:11 62:4,5,17
62:18,22 63:11
63:17,24 64:8
65:11 66:5
76:23 77:3
cycle 45:5
D
D 2:1
data 23:12,12,15
26:1 27:10,20
28:22 58:2
60:18 61:2
62:11,14,15,20
63:16 64:5
date 11:16,19
12:24 69:1,2,5
dates 70:18,19
days 8:17 65:17
80:19
dead 68:11,18
dealt 82:13
debt 14:12 24:10
24:11 29:5,7,14
29:23 30:1,7,14
30:18,24 61:4,5
61:7,10,12,13
65:13
debt/PAYGO
31:2
decide 21:6
decides 50:11
deciding 16:19
decision 37:23
39:17 69:12
72:10
decline 26:9
28:13,19 30:2
60:12 62:16
63:17
declined 27:12
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61:8 63:22
declines 27:25
declining 30:5
decrease 24:23
29:2 34:10
60:18 63:8,11
63:13,19
decreasing 28:10
decree 15:14
24:8 26:12 52:2
58:10 66:13
77:17
deductibility
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deductible 39:13
Deer 47:21 51:9
deficient 71:21
deficit 27:17
define 9:9
defined 72:5
74:17
degree 72:11
delegates 6:22
delinquencies
7:13
demonstrated
13:3
depending 47:24
deposition 84:8
84:13
depth 38:18
describe 9:15
53:15
described 40:13
69:11
describing 9:22
10:14
description
10:15
designated 41:23
desired 10:10
despite 27:13
detail 13:9 58:22
60:9 67:22
82:14
detailed 32:21
78:6
details 31:16
detention 19:1
53:2
determination
57:3
determinations
22:1
determine 74:5,8
74:14
determined
15:17 19:25
determining 17:5
detriment 19:19
developed 28:22
80:24 81:7,11
developer 79:24
developers 18:25
79:6,9
development
19:1 52:21
68:14 79:17
developments
19:6
difference 18:1
21:15 41:11
51:1 56:3
different 36:25
39:7,9 40:25
41:6,6 46:1
75:8 82:16
difficult 71:11,11
direct 28:2
directed 11:25
72:14
direction 29:24
46:8 56:17,17
84:11
directly 25:1,9
34:19 60:1
director 34:18,22
disagree 53:4
63:7
disagreement
13:5 15:23
disagreements
22:3
discharge 35:10
discharging 25:1
discourage 77:22
discovery 8:25
10:25 11:1 16:4
57:5,9 58:24
discreet 41:13
discuss 13:9
15:25
discussed 16:3
24:4 36:8 51:21
58:24 64:7
discussion 5:3,7
15:21 16:12,18
44:23 45:19
49:17 70:8
discussions 51:23
55:13
Dispatch 77:2
dispose 36:3
disregard 66:25
distribute 11:10
distribution
48:16
district 1:6 3:10
4:4 6:7,23 7:3,5
7:6,10,23,24
8:5,16 9:5,8,13
11:7,10,21 12:5
12:15,23,23
13:23 14:19,22
15:3,6,13 16:6
16:6 17:3 18:2
18:5,18 19:7,11
19:13,23 20:5
20:13 21:3,6,18
22:22 23:8,16
24:7,14,16,23
25:11 26:20
27:3,16,19 28:6
28:17,23 29:7
29:12,13,16
30:13,18 36:11
41:14 42:16
44:25 45:6 46:9
53:10 63:25
66:12 68:20
69:17 70:12
71:17 72:2,3,5
72:7,10,22 73:6
74:7,24 76:10
76:12,17 77:11
77:16,22 78:4
78:22 80:9
82:20
Districts 41:1
District's 7:19
8:18 10:1,20
12:25 13:4,21
14:14 15:8,10
18:24 22:6,13
23:14 25:9
26:23 27:18
29:4,9,10,19,21
30:11,13,15,16
30:19,21 31:4
44:13 60:2,4
71:10 72:16
75:20 76:25
district-wide
14:5,7 16:7
20:7,11 21:7,11
37:11 41:9,20
42:18,25
dive 60:8
divided 40:23
dividing 46:19
document 49:13
81:16,20,20
82:2,3,4,7
documents 68:24
81:23 82:1,10
doing 36:5 47:3
49:25 50:1,19
51:8,10 55:18
70:17 79:20
dollar 39:5 47:1
61:21
dollars 30:18
32:1 33:24,25
39:4,6,7,9
41:22 50:24
62:1
donation 48:17
double 26:4
60:25 63:1
doubt 39:19
downstream
19:3
downward 29:16
drain 13:21
75:21
drainage 7:20
18:17 60:3
71:18
drive 36:15 80:4
driven 23:1
driver 14:1 36:14
49:3
drives 36:19
driveway 48:25
49:1
dual 58:17
due 7:9 16:25
24:24 60:16
duly 84:8
E
E 2:1 3:1,1
earlier 68:10
80:1
earn 50:16
easier 82:19
easiest 48:23
easily 18:5
Eastern 8:11
71:6
easy 58:1
economic 23:7,10
23:13 24:2,3,21
25:13 27:1,2,4
27:8,13 28:5
29:5
economy 23:20
educational 46:3
effect 30:10
61:13,15 76:24
effective 73:16
73:18
effectiveness
78:3
efficiency 36:25
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efficient 36:11,15
36:17,21 37:4
efficiently 36:18
effort 29:14
36:10 75:15
efforts 28:11
30:3 50:6 52:17
52:19 59:14
eight 31:22 38:21
39:11,14 40:15
either 33:8 37:21
37:21 48:17
54:14
election 6:24,25
electric 34:14,25
35:5 36:16
electrical 33:15
electricity 26:10
26:12,14,17
64:2
electronic 37:2
elements 11:6
Eleventh 3:24
eliminate 48:24
eliminated 40:3
41:2
eliminating
39:24
embarrassed
11:15
emergencies 7:12
employed 84:12
84:15
employee 84:15
encourage 28:20
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family 62:25
74:11
far 6:10 23:18
44:15 50:6
56:20 73:16
farm 46:24 48:14
farther 50:6
fashion 36:17
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February 6:25
8:5,22 12:25
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32:17 60:4
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great 30:12
greater 27:17
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indicate 37:10
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43:3 60:15
66:10 67:21
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insidiously 36:6
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installed 76:4
installing 47:4
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instances 19:17
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long 55:4
look 35:6 52:24
52:25
looked 34:20,23
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looking 34:21
35:9 45:20,21
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50:20 71:22
81:25
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miles 52:18
million 27:17
32:1 33:24,25
39:4,5,6,7,9
47:1 50:20,23
50:24 51:5
60:16 61:17
62:1 65:5,6,7,7
65:13
millions 30:17
mind 13:8 40:12
46:15 52:16
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minimum 51:17
52:15
mission 43:9
Missouri 3:16,22
3:24 5:4 8:11
8:12 13:18
21:23 25:18
26:5 34:25
37:23 55:25
57:15,20 71:6
72:4 84:2
misstates 74:2
misunderstand...
17:12
mitigate 19:5
mix 31:1
mixture 24:2
MO 3:15,18 84:5
modelling 29:17
modest 63:8
modify 59:18
modifying 61:15
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Monday 11:20
68:18 69:4
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34:2 47:15,23
50:13
monies 32:3
33:20
month 42:14
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39:21
Moody 62:23
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12:21
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move 14:14 24:7
29:24 46:8
66:12
moved 5:5
movements 28:3
moving 45:25
MSD 8:22,23
13:2,18 15:17
16:14,18,21,23
17:11,19 18:22
19:15 21:20
23:24 24:6 25:5
26:2,13,14,18
27:24 28:3,18
31:6,11 33:3,8
34:13 38:8
45:12 51:5,14
53:5 54:5 55:17
57:22 58:5,8,8
58:11,13,19,25
59:1,5,9,22
60:10,12,14,19
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62:15,19 63:6
63:21 64:1,10
64:11,19 65:4,6
65:21 66:3,11
67:9 73:6 76:15
77:2 78:13 79:1
79:18 80:14
MSD's 14:1,10
15:16,22,24
16:1,14,16
18:21 25:1,14
26:8 28:21
30:23 59:14
60:25 61:12,24
62:3 63:7,10,14
63:23 65:1,8,14
66:1,1,5 67:12
67:18
MS4 79:12
multi 74:17
Myers 3:11 11:24
12:6,13,16,18
12:21 31:9,15
37:10 38:4 43:2
43:16,19 44:7
45:2,10,14 53:9
54:14 56:11,15
56:25 57:4,13
66:9 68:17
69:17 70:1,5,12
N
N 2:1 3:1
name 6:5,9 12:21
Nanacy 6:18
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national 28:10
nationwide 28:15
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81:7
nature 23:13
35:8 71:15
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necessary 7:8
44:2 58:19 66:3
66:20
need 18:17 19:23
51:24 52:15,15
65:16
needed 56:19
59:6
needs 20:7 21:9
22:12 23:17
34:14 48:13
51:2 58:14,20
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61:14
neither 84:11
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57:18 68:1,2,3
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Nevertheless
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62:19,25 66:18
66:21 72:16
76:10 79:2
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72:13
night 80:5
nine 10:20 29:2
39:21
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38:1
nonresidential
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normal 37:3
80:21
North 3:24
note 66:15
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notice 7:6 8:5,15
notion 63:19
73:24
November 7:1
number 5:4
10:22,23 11:3
17:16 18:3
19:12 22:7
26:11 27:23,25
30:9 35:13
36:10,12,13,24
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39:11 45:12,12
62:3,5,6,8,12
62:14,16,18,25
64:7,14 74:20
82:20
numbers 11:25
31:14,17 63:2
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42:5 56:7 59:9
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object 68:17,25
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objection 12:2,7
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58:14
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66:4
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occurring 35:19
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82:25
offering 47:3,9
offers 76:14
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45:16 71:2
older 36:22
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42:21 47:15
once 38:17 76:1,2
onerous 46:10
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on/off 37:2
open 70:8
opening 24:24
46:23
operate 18:24
40:19
operating 33:21
36:4,7,18 48:18
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operation 7:11
14:3 16:8 17:20
17:24 18:8 19:8
20:6,9,19,22
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23:3,6 34:23
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42:3,3 72:15
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18:1 19:10
58:14,20 64:5
66:3
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35:12
opinion 46:13
51:15 56:16
74:3
opinions 46:16
73:6
opportunities
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opportunity 8:8
9:3 57:19 59:12
59:18 71:7
opposed 24:19
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optimistic 24:3
options 76:6
oral 10:7
order 4:3 43:12
47:5 50:15 74:8
orderly 9:10
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originally 8:14
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15:14 49:13
58:22 65:22,23
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33:2
outlooks 25:16
26:24
outside 40:18
41:8 47:25
48:22
outstanding 7:23
14:19 15:2
overall 22:25
24:18 77:11
80:12
overestimate
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52:2
overstated 24:13
59:9 64:10
overstates 74:2
overstating
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overturned
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over-funded
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owner 49:5
owners 19:17,19
75:25 76:3
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4:20,21 5:22,23
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38:6 50:8 66:10
paid 77:5
paragraph 13:10
13:19 14:16
15:4,18 16:2
31:11
parameters
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parcel 74:5,6,14
74:15,24
part 9:21 12:3
17:20 19:1 28:6
39:20 48:1
50:17 53:24
54:6 55:21,22
57:1 63:3 73:23
78:12 81:22
participant 10:6
10:7,11
participants 9:2
9:18,20,25 10:2
10:8,19
participant's
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participate 9:12
32:19,20 37:20
55:8
participated
32:14
participating
16:24 38:9
particular 10:6
48:12 49:14,15
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Paul 3:7 6:17
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55:1
payer 24:18
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33:23 34:9 38:3
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Pedrotty 3:22
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29:15,23 30:2
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28:4 34:9 62:2
62:22 64:22,24
65:7 66:20
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49:17 55:16
80:20 81:6
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51:12,18 52:6,8
53:5 54:9 55:3
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53:10 62:5,17
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76:18
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59:15
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Post 77:2
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78:5
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4:17 6:10 23:19
63:11 67:9
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presentation
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presented 18:14
22:14 28:25
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54:18
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23:23 24:22
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32:21 37:24
56:9 72:17
previously 13:3
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pre-hearing 1:8
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10:13 58:22
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pre-treatment
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price 65:10
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primarily 20:9
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54:12 56:4
65:25 68:7
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9:6 10:10 11:12
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procedures
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71:10
proceedings 8:9
12:24 15:15
17:7 20:12,18
22:2 24:4 71:9
75:11
proceeds 59:17
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75:16 76:16,22
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38:23 60:21
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27:16 61:12,16
61:24 62:3
63:10,23 64:20
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projections
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59:10,11 61:1
63:14,25 64:14
64:15,25
projects 14:8
24:11 25:20
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16:8,17 18:11
19:3,15,17,19
19:20 20:3 21:1
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39:12 40:11
41:17,18 42:15
42:16,19 53:22
53:23,23,24
54:17 55:2,11
67:13,19 71:20
71:24 72:1,8,12
72:13,21,25
74:5,7 75:17,25
76:1,3,3 79:7
80:20,24 81:7
81:10 82:15,18
proposal 8:8
10:1 12:25 13:7
13:23 14:1,10
14:21 15:1,8,12
15:22 16:1,11
16:14,16,20
17:8 18:7 20:8
21:9 26:24
27:11 28:6,17
28:23 29:4
30:10 40:4 42:6
43:19 45:1,8,9
49:11 56:9
57:20,24 58:17
59:19 60:20
64:17,19 65:9
65:22 66:1
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proposed 7:5,16
8:15 10:2 11:6
13:11,13,16,20
14:17,23 15:5
15:19,25 16:6
18:12 20:19
21:17,19 22:5
22:21 23:4,23
25:23 27:1,18
29:2 30:24
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43:20 44:3,4
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58:8 59:22 60:6
61:16 64:11,13
64:18 65:4,20
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72:14 75:24
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21:2,10 41:15
42:19,21,22
44:14,14,15,19
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72:18 79:10
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14:2,11 18:25
24:13 25:17
35:4,5,8 45:7
45:24 60:2 66:3
67:21 71:17
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29:23 30:1,8
41:21 61:5,7,14
provisions 14:25
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17:21,24 18:9
18:20,21 19:8
20:10 21:17
32:6 40:17
41:19 42:4
45:25 46:1 54:6
55:6 70:8 72:15
publication
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published 73:19
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purpose 10:21
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36:10,11,14,19
40:22 41:25
47:18,19,25
48:25 49:6 55:1
57:25 68:24
70:22 80:7
81:11 82:17,19
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puts 80:2
putting 37:1
47:18 48:3
59:24
Q
quality 18:4,5,9
20:1,24 49:10
51:13,25 52:5,6
53:3 76:20,23
77:13 79:10
quantifiably 46:5
quantity 76:24
question 13:24
26:25 32:23
33:4,14 34:12
35:17 37:7,9
40:20 43:6 44:6
44:8 46:12
53:10 55:19
56:2 70:1 80:1
81:1 82:3,23
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11:4 31:8,24
53:9,11 56:10
57:12 67:25
78:9,23
quick 50:19
quite 38:25 44:5
70:21
quorum 4:25
quote 40:1 60:15
72:7,9
R
R 3:1
rain 46:17 48:14
76:4 80:18,23
rainscaping
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raised 9:9,19
10:14
raises 34:12
rate 3:12 4:4 6:6
6:9,22 7:2,5,6,8
7:14,15,16 8:3
8:4,4,6,7,13,15
8:16,19,20,22
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9:24 10:1,18,22
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13:6,7,11,14,16
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Ratellus 73:7,14
Ratellus's 73:20
rates 7:4,4,4 22:7
22:15 23:4 26:1
28:10 43:10
46:15,19 54:8
59:8,12 60:6
61:21 65:20,21
66:16,19,21,23
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rate-based 25:19
rating 30:10,11
30:12,21,22
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10:17
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56:16 62:11
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53:25
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51:2 71:14 74:9
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21:13 27:8
29:16 32:11,12
55:17 75:7
79:21
reasonable 8:2
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16:13,14,19
17:5 21:19 23:9
23:12 26:22
37:12 38:2,15
40:6 43:7,8,17
43:22 44:2,10
44:15,20 51:3
60:7 67:9
reasonableness
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49:12
rebates 36:12,19
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65:22
recall 38:11
39:14 40:22
41:8 58:8 82:13
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21:15
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67:17
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29:13
recommend 7:7
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70:10
recommendation
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33:5 65:3
recommendati...
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recommended
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30:7 58:7
recommending
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recommends
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67:15
record 9:13 12:3
55:21,22 68:16
68:25
records 21:25
recover 33:7
61:10
recovering 61:12
recovery 35:9,10
red 40:24 41:3,8
52:22
reduce 17:17
18:24 29:7 47:5
58:12 59:13
77:10,11,12,21
78:21 79:11
reduced 24:10
31:20 63:23
84:10
reducing 18:17
18:18 58:18
68:13 77:14,18
reduction 18:19
18:20,23 21:16
26:10 49:4
65:24 79:20
reductions 17:17
30:23
reference 81:24
referenced 54:3
referred 74:12
referring 81:19
refuted 63:20
regard 33:2,2,16
50:1
regarded 61:14
regarding 7:3
11:4 12:24 13:5
14:21 15:24
22:4 23:22 27:7
31:24
regardless 54:16
regulation 35:25
regulations 8:1
15:7,11 46:10
60:5
regulatory 20:1
20:23,24 21:5
24:15 35:19
41:10 47:10
51:6,15,17
52:14 53:6 56:8
76:21
reiterate 20:17
relate 75:22
related 7:21
13:22 18:10
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report 8:15,17,20
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62:24 63:3
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reported 63:21
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requirement
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51:15,17 53:6
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requirements
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requires 13:11
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requiring 10:5
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researched 34:13
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reserve 67:4
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69:18 70:3,13
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24:14,24 25:5
25:12 29:15
30:24 38:23
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shrinking 59:2
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significantly
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46:24 63:24
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survey 73:5
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Susan 3:11 12:21
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Trustees 7:7,15
8:16,19 21:25
try 20:16 34:6
46:15
trying 34:4 42:9
46:9 49:15
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twice 75:25
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underfunded
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understating
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UNIDENTIFI...
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75:1 82:17
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14:2,4,7,8,9,11
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17:20,21,24
18:5,9,9,10,19
18:21,21,23
19:9,22,24 20:1
20:2,8,10,15,18
20:21,24,25
21:17,18 22:5
23:8 25:10 28:8
28:10,11,14,14
28:14,19 29:1,3
31:11 32:4,5
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39:10,12 40:10
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42:14 44:3 46:2
46:17,17,19,20
47:5,15,21,22
49:9,10 51:9,13
51:24 52:2,5,6
52:7,20,21 53:2
53:3,22 54:5
55:10 56:4,7
57:22,23 59:3
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63:9,25,25 64:4
64:5 65:20 67:3
67:4,5,8,16
68:12,13 70:20
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73:5,11,13,13
73:15,19 75:4
75:12,12,14,14
76:1,6,7,9,9,20
76:24 77:4,7,10
77:12,13,15,17
77:18,18,23,24
78:4,15 79:3,10
79:11,14 80:3
80:11 81:20
82:1
way 33:7,8,17
36:3,15 42:9
44:14 46:15
48:23 49:2,5
52:15 69:13
78:11,14,16
82:19
PRE-HEARING CONFERENCE 6/26/2015
www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334
MIDWEST LITIGATION SERVICES
ways 44:17 53:1
web 52:25
Wednesday
11:18,20
week 68:12
weeks 77:1
well-document...
28:9
went 52:10 53:19
54:9 56:20 57:5
82:21
weren't 52:9
we're 34:20 36:5
36:6 40:4,16
41:15 42:19,21
42:24 44:13,15
44:19 47:4,7,9
47:10,14,22,24
48:1,2,3,18
49:15 50:20
51:8 52:8,11,12
54:10 56:15
70:17 78:17
79:20,21
we've 34:23
36:18,24 37:3
49:12 50:22
52:8 73:23
81:23
wil 77:14
William 16:4
72:23
Williams 4:24
willing 45:7
winding 64:24
witness 13:24
84:7,9
witnesses 13:4
word 79:2
words 75:16
work 20:4,22
21:3,7 24:9
26:13 47:4 51:9
57:25 66:13,14
76:8
worked 31:24
working 47:21
49:21
works 18:22 73:8
75:9
world 46:18
worst 62:21
wouldn't 54:21
written 10:9
66:10
wrote 11:18
X
X 2:1
Y
yeah 49:7
year 22:13 25:2,2
25:6,23 26:3
27:12,13,24,24
30:6 32:1 33:19
33:20,22 34:9
38:25 39:4,8,9
45:1 50:23,24
60:14,20 61:7
61:17 62:2,14
62:19 63:12,12
63:13,14,17,18
63:22 64:14,16
64:18 65:8,8,13
65:15 66:20
81:4,4
years 22:9,11,23
23:17 24:12
28:1 31:22
33:18,24 34:1
36:10 38:12,21
39:11,15 40:15
43:1 61:3 62:13
72:9 82:21
yellow 40:24
41:3 42:17 50:3
yesterday 46:23
68:21
Z
zero 42:5,23
Zweig 72:4,10
$
$10 51:5
$100 65:12
$114 65:7
$2 61:17
$20 65:5
$25 50:20
$35 50:23
$40 65:5
$670,000 60:13
$7.3 27:17
$70 65:6
#
#084-003893
3:23
#618 3:22
1
1 5:4
1.5 29:11,17 61:6
10 11:9 61:7
70:11 71:2
10th 8:21 10:20
70:9
100 47:1 49:1
81:4
100-year 81:9
11 30:5
12 63:22
124 17:15
124C 17:16 73:22
78:12 81:25
131 31:6
1335 46:24
14 61:7 63:22
14th 8:18
140.3 60:16
16 63:13,18
17 63:12,17 65:8
17th 9:2
1700 62:19
1764 62:8
180 72:11
1954 6:25
1980 42:9
1993 21:23
2
2.0 25:20
20 52:18 65:8,11
65:15
20th 9:1
2000 7:1
2007 26:6 45:3,5
49:12 53:16,17
70:19
2008 19:22 20:15
20:16 45:4,8
2009 70:19
2010 62:8
2011 11:24 27:7
27:12,15,16
2012 45:4,8
2013 25:2 72:4
2014 25:2,21
27:13 60:14,23
62:8,18 63:2
73:5
2015 1:9 8:5,14
8:18,21,22 9:1
9:2,2 10:13,20
11:9,11 13:1
25:6 27:7 60:22
71:9
2016 63:2
2019 25:21 63:2
22 69:3
24-cent 42:13
24/7 35:7
25 39:6
26 1:9 8:14,22
26th 8:5 13:1
270 40:18 41:8
42:4,17
3
3 31:10 37:10
38:6 50:8
3.8 60:16
30 25:5 32:15
38:22 56:7
314 3:25
35 32:16
3500 40:3 54:22
3630 54:22
4
40 16:22 31:12
32:15 38:7,15
39:10 40:9 50:9
73:25
45 8:17
5
5 45:14
5.5 26:16,21 33:3
6
6 45:12,15 82:9
82:12
60 56:8 60:22
621.021 5:4
63101 3:15,24
63102 3:18
644-2191 3:25
661 40:2 53:12
53:15 54:3
55:24
7
7 66:10 82:9
7th 7:1
7.1.3 28:23
7.270 13:2,10,19
14:16 15:4,18
16:2
7:57 4:1
711 3:24
714 3:14
763 62:8
8
8 53:16
8th 9:1 10:13
11:11
8:01 6:4
80 39:9
84G 73:6
88 25:5
9
9 71:2
PRE-HEARING CONFERENCE 6/26/2015
www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334
MIDWEST LITIGATION SERVICES
9th 6:25