HomeMy Public PortalAboutExhibit MSD 96 - Transcript of First Technical Conference April 8, 2015 TECHNICAL CONFERENCE 4/8/2015
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8 MEETING OF THE RATE COMMISSION
9 OF THE
10 METROPOLITAN ST. LOUIS SEWER DISTRICT
11 2015 WASTEWATER RATE CHANGE PROCEEDING
12 DIRECT TESTIMONY
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15 TECHNICAL CONFERENCE - DAY 1
16 APRIL 8, 2015
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Exhibit MSD 96
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1 I N D E X
2 WITNESSES: PG.
3 Mr. Brian Hoelscher 15
4 Ms. Susan Myers 36
5 Mr. Richard Unverferth 46
6 Mr. Jonathan Sprague 70
7 Mr. Tim Snoke 72
8 Ms. Bethany Pugh 84
9 Ms. Theresa Bellville 91
10 Mr. William Stannard 99
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1 A P P E A R A N C E
2 The Chairman: Mr. Russell Hawes
3 The Rate Commission: Ms. Annette Slack, Mr. Steve Mahfood,
4 Mr. George Tomazi, Ms. Nancy Bowser, Mr. Eric
5 Schneider, Mr. Paul Brockman, Mr. Mark Schoedel,
6 Mr. John Stein
7 For MSD: Ms. Susan Myers
8 For The Commission:
9 Ms. Lisa O. Stump, Mr. John Fox Arnold
10 Lashly & Baer, P.C.
11 714 Locust Street
12 St. Louis, Missouri 63101
13 (314) 621-2939
14 For Missouri Industrial Energy Consumers:
15 Mr. Brandon Neuschafer
16 (314) 259-2317
17 211 North Broadway, Suite 3600
18 St. Louis, MO 63102
19 Bryan Cave, LLP
20 For the Home Builder's Association:
21 Mr. Nicholas Burkhart
22 (314) 719-3784
23 120 South Central Avenue, Suite 700
24 St. Louis, MO 63105
25 Smith Amundsen
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1 MR. CHAIRMAN: I'd like to call the technical
2 conference of the Metropolitan St. Louis Rate Commission, Sewer
3 District Rate Commission to order. Do we have a roll call or
4 should I?
5 MS. STUMP: You can.
6 MR. CHAIRMAN: I will do it. Nancy Bowser.
7 MS. BOWSER: Here.
8 MR. CHAIRMAN: Paul Brockman.
9 MR. BROCKMAN: Here.
10 MR. CHAIRMAN: Steve Chodes. Lori Kelling, Jack
11 Stein.
12 MR. STEIN: Present.
13 MR. CHAIRMAN: Eric Schneider.
14 MR. SCHNEIDER: Present.
15 MR. CHAIRMAN: Leonard Toenjes. George Tomazi?
16 MR. TOMAZI: Here.
17 MR. CHAIRMAN: Mike O'Connell. Mark Schoedel.
18 MR. SCHOEDEL: Here.
19 MR. CHAIRMAN: Annette Slack. Steve Mahfood. Otis
20 Williams. Chan Mahanta.
21 We do not have a quorum at this time.
22 MS. STUMP: We don't need one for purposes of the
23 technical conference.
24 MR. CHAIRMAN: Very good, glad to know that, thank
25 you. All right, then I will open the technical conference by
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1 reading a statement. My name is Russell Hawes I am the vice
2 chairman of the Rate Commission with the Metropolitan St. Louis
3 Sewer District and will serve as chair of this proceeding.
4 Present are Nancy Bowser, Paul Brockman, myself, Jack Stein,
5 Eric Schneider, George Tomazi and Mark Schoedel, delegates of
6 the Rate commission.
7 The charter plan of the district was approved by the
8 voters of St. Louis and St. Louis County in special election on
9 February 9, 1954 and amended at the general election on
10 November 7, 2000. The amendment to the charter plan established
11 a Rate Commission to review and make recommendations to the
12 district regarding changes in wastewater rate, storm water rate
13 and tax rate proposed by the district.
14 The charter plan requires the Board of Trustees of the
15 district to select organizations to name delegates to the Rate
16 Commission to ensure a fair representation of all users of the
17 district's services. The Rate Commission representative
18 organizations are to represent commercial industrial users,
19 residential users, and other organizations interested in the
20 operation of the district, including organizations focusing on
21 environmental issues, labor issues, socioeconomic issues,
22 community neighborhood organizations, and other nonprofit
23 organizations.
24 The Rate Commission currently consists of
25 representatives of Associated General Contractors of St. Louis,
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1 St. Louis Regional Chamber and Growth Association, the Engineers
2 Club of St. Louis, the League of Women Voters, the Missouri
3 Botanical Garden, Education Plus, Missouri Industrial Energy
4 Consumers, Mound City Bar Association, St. Louis County
5 Municipal League, the St. Louis Council of Construction
6 Consumers, Lutheran Senior Services, West St. Louis County
7 Chamber of Commerce, North County Incorporated, Greater St.
8 Louis Labor Council, and Missouri Coalition for the Environment.
9 Upon receipt of a rate change notice from the
10 District, the Rate Commission is to recommend to the Board of
11 Trustees changes in wastewater, storm water or tax rates
12 necessary to pay interest and principal following due on bonds
13 issued to finance assets of the district, the costs of operation
14 and maintenance and such amounts as may be required to cover
15 emergencies anticipated delinquencies.
16 Further, any change in a rate recommended to the Board
17 of Trustees by the Rate Commission is to be accompanied by a
18 statement that the proposed rate change is, one, consistent with
19 statutory, constitutional, or common law as amended from time to
20 time. Two, enhances the district's ability to provide adequate
21 sewer and drainage systems and facilities or related services.
22 Three, is consistent with and not in violation of any covenant
23 or provision related to any outstanding bonds or indebtedness of
24 the District. Four, does not impair the ability of the District
25 to comply with applicable federal or state laws and regulations
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1 as amended from time to time, and five, proposes a fair, and
2 reasonable burden on all classes of rate payers.
3 The Rate Commission received the rate change notice
4 from the District on February 26, 2013. The Rate Commission
5 must, on or before, June 26, 2013, issue its report on the
6 proposed rate change notice to the Board of Trustees of the
7 district, and unless the Board of Trustees, upon application of
8 the Rate Commission, extends the period of time for the issuance
9 of the Rate Commission report for an additional 45-day period.
10 Under procedural rules adopted by the Rate Commission
11 on March 4, 2013, any person affected by the rate change
12 proposal had an opportunity to submit an application to
13 intervene in these proceedings. Applications to intervene have
14 been filed by the Home Builders' Association of St. Louis in
15 Eastern Missouri, and Missouri Industrial Energy Consumers.
16 These applications have been granted.
17 On February 26, 2015 the district submitted to the
18 Rate Commission the prepared direct testimony of Brian
19 Hoelscher, Susan Myers, Richard Unverferth, Jonathan Sprague,
20 Tim Snoke, Bethany Pugh, Theresa Bellville and William Stannard.
21 On March 17, 2015, the Rate Commission submitted it's
22 first discovery request to the district. On March 27, 2015 the
23 district filed it's responses. On March 30, 2015 the Rate
24 Commission submitted second discovery request for the district
25 the district responded to on April 7, 2015. On April 3, 2015,
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1 the Rate Commission submitted its third discovery request to the
2 district.
3 The technical conference will be held on the record
4 regarding the rate setting documents and the direct testimony
5 filed with the Rate Commission by the district. The purpose of
6 this technical conference is to provide the district with an
7 opportunity to answer questions propounded by members of the
8 Rate Commission, then by any intervener, and finally by Lashly
9 and Baer, legal counsel for the Rate Commission. Following this
10 technical conference, the interveners and Rate Commission
11 consultants may on or before April 17, 2015 submit prepared
12 rebuttal testimony and schedule. A technical conference will be
13 held on April 29 through May 1, 2015 regarding the rebuttal
14 testimony. At that technical conference, each person submitting
15 rebuttal testimony shall answer questions propounded by members
16 of the rate commission, the district, then the other interveners
17 and finally by our legal counsel. Following the technical
18 conference, the district, it's consultants, the interveners and
19 the Rate Commission consultants may on or before May 8, 2015
20 submit prepared surrebuttal testimony and schedule.
21 A technical conference will be held on the record May
22 20 through 22, 2015 regarding the surrebuttal testimony. At
23 that technical conference, each person submitting surrebuttal
24 testimony shall answer questions propounded by members of the
25 Rate Commission, then by the district, and the interveners and
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1 finally by our legal counsel.
2 Rate payers who do not wish to intervene will be
3 permitted to participate in a series of on the record public
4 hearings conducted in nine sessions beginning on May 11, 2015,
5 and concluded on June 9, 2015. Who is here on behalf of the
6 Metropolitan St. Louis Sewer District?
7 MS. MYERS: Susan Myers, general counsel.
8 MR. CHAIRMAN: Who is here on behalf of the Home
9 Builder's Association?
10 MR. BURKHART: Nick Burkhart.
11 MR. CHAIRMAN: Who is here on behalf of the Missouri
12 Industrial Electrical Energy Consumers?
13 MR. NEUSCHAFER: Brandon Neuschafer.
14 Also present is Pamela Lemoine of Black and Veatch,
15 consultant to the Rate Commission and John Fox Arnold and Lisa
16 Stump of Lashly and Baer, legal counsel to the Rate Commission.
17 Under the rate commission's operational rules, no
18 person shall be required to answer questions for a total period
19 of more than three hours, and the time shall be evenly divided
20 among all the participants desiring to ask questions. Following
21 questions by members of the rate commission, I will attempt to
22 allocate the time equally among the participants and our legal
23 consul. To the extent the district, one of the interveners or
24 legal counsel has not completed the questions at the expiration
25 of that person's allotted time and to the extent that time
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1 remains, such person will be permitted to propound additional
2 questions until the three hours has expired. Are there any
3 procedural matters?
4 MR. ARNOLD: Chairman?
5 MR. CHAIRMAN: Yes, sir.
6 MR. ARNOLD: John Arnold, Miss Myers has called to my
7 attention that the direct testimony filed by the district does
8 not include a document which is required by our operational
9 rules. She and I have discussed it, but the rules provide that
10 all testimony whether direct or in writing should be accompanied
11 by a notarized affidavit. The Commission has not required this
12 in it's prior proceedings, and I respectfully request that the
13 Commission waive the requirements of Section 3A requiring a
14 notarized affidavit.
15 MR. CHAIRMAN: Shall the Commission hear a motion to
16 that effect?
17 MR. BROCKMAN: So moved.
18 MS. BOWSER: Second.
19 MR. CHAIRMAN: All in favor?
20 RATE COMMISSION: Aye.
21 MR. CHAIRMAN: So done. Any other procedural matters
22 to come before us? There will be no further procedural matters.
23 Miss Myers, would you like to make an opening statement?
24 MS. MYERS: I would. Good afternoon. My name is
25 Susan Myers and I am the general counsel for the Metropolitan
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1 St. Louis Sewer District. I'd like to thank all of you for
2 serving on the Rate Commission in this rate setting process and
3 allowing me the opportunity to provide an opening statement on
4 behalf of the district.
5 For the record, I would like to provide a brief
6 summary of the district's history. MSD is the fourth largest
7 sewer district in the county based on miles of pipe. With
8 responsibility for over 6,300 miles of sanitary and combined
9 sewers and over 3,000 miles of storm water pipe. Although being
10 the fourth largest sewer district in the country, MSDs rate
11 payer base is approximately half the size of other comparable
12 entities. MSD was formed pursuant to the Missouri Constitution
13 in 1954 and began operation in 1956. Over time, MSD has
14 absorbed 79 public and privately owned sewer systems, thereby
15 providing consolidated regional sewer treatment to the St. Louis
16 community.
17 Based on miles of pipe, the district is over two times
18 as large as Kansas City. The large size of the MSD system will
19 require a massive multi-decade reinvestment effort to maintain
20 and improve the community's wastewater sewer infrastructure and
21 a uniform storm water tax rate throughout the district to
22 provide an appropriate uniform level of storm water service.
23 As most of you are aware, in June 2007 the United
24 States and the state of Missouri filed a civil action against
25 the district for alleged violations of the clean water act. The
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1 Missouri Coalition for the environment was allowed to intervene.
2 Following four years of negotiation, the consent decree was
3 lodged with the court on August 4, 2011. An extended public
4 comment period ended on October 10, 2011. On April 27, 2012,
5 the court entered the consent decree thus concluding the
6 litigation. The state of Missouri in spite of being involved in
7 these negotiations since 2007, chose not to sign the consent
8 decree. The court also entered an order on April 27, 2012 in
9 which the court realigned the state of Missouri as a defendant
10 and reaffirmed the 2009 decision by the 8th Circuit Court of
11 Appeals that the state had waived it's sovereign immunity.
12 The consent decree requires the district to spend
13 approximately $4.7 billion and $2,011 over a 23 year
14 implementation period. I'm happy to say today the consent
15 decree is available to the public and the district is in full
16 compliance with the consent decree. To date, the district has
17 implemented the consent decree on schedule and under budget.
18 The wastewater portion of our rate change proposal is based upon
19 the clear direction outlined in the consent decree in the form
20 of many improved plans, including the combined sewer overflow
21 long-term control plan, the sanitary sewer overflow master plan,
22 and the capacity management operations and maintenance plan and
23 reflects the capital project and related O and M needed over the
24 next four years to continue to comply with the consent decree.
25 The district has also taken advantage of many
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1 efficiencies while successfully completing the work required by
2 the consent decree. These are identified in detail in the
3 direct testimony of Rich Unverferth and John Sprague. On the
4 storm water side, everyone is probably aware of Zweig versus MSD
5 lawsuit that concluded with the Missouri Supreme Court ruling
6 that MSD impervious based fee needed to be voted on by the
7 people. Based upon that ruling, the rate change proposal
8 proposes the use of a district wide assessed value property tax
9 structure to replace the flat rate charge and the multi-layer
10 taxes we currently have in place.
11 Throughout these technical conferences, the following
12 should be kept in mind, the program outlined in the consent
13 decree is a continuation of MSD's current wastewater capital
14 program and has been underway for the past several decades. The
15 capital program is a reinvestment in the St. Louis community to
16 maintain and improve it's wastewater infrastructure.
17 The storm water portion of the proposal addresses
18 several service level inequalities, maintaining funding for
19 storm water regulatory requirements, using a funding method
20 currently being used for MSD storm water service, and allows for
21 a district wide tax that will facilitate additional storm water
22 capital work district wide.
23 The rate being proposed to the Rate Commission is the
24 same wastewater rate method approved by this commission in the
25 past four rate change proceedings, and the same storm water
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1 taxing structure that has been in place since the mid-1980's. It
2 is the district's opinion that the wastewater portion of the
3 rate change proposal imposes a fair and reasonable burden on all
4 classes of rate payers as the proposed rates were determined
5 using an industry accepted wastewater rate designed methodology,
6 a method that has been determined to be fair and equitable by
7 the Missouri Supreme Court in 1997.
8 The storm water addressed value property taxing
9 methodology has been used by MSD since the mid 1980s and is
10 allowed by the Missouri constitution and MSD's charter plan.
11 The district testimony today will provide a clarification
12 regarding the detailed aspects of the district's rate change
13 proposal, and demonstrate how the proposed rates are necessary
14 to MSD's future obligations, including compliance with consent
15 decree and storm water regulatory requirements.
16 The order of appearance of MSD's witnesses will be
17 Brian Hoelscher, MSD's executive director, myself MSD's general
18 counsel, Rich Unverferth, MSD's director of engineering, John
19 Sprague MSD's director of operations, Tim Snoke MSD's secretary
20 treasurer, Bethany Pugh of Public Financial Management serving
21 as the district's financial advisor, Theresa Bellville MSD's
22 assistant director of finance, and William Stannard of Raftelis
23 Financial Consultants, serving as the district's rate
24 consultant.
25 This concludes my opening remarks. I ask that my
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1 opening remarks be accepted by the Rate Commission as Exhibit
2 MSD 87, thank you.
3 MR. CHAIRMAN: Thank you, Miss Myers. Let the record
4 show that Miss Annette Slack and Steve Mahfood have joined the
5 proceedings, so we now have quorum officially.
6 Any other parties wishing to make an opening
7 statement?
8 MR. TOMAZI: Just two quick questions, Miss Myers, you
9 mentioned that the consent decree was $4.7 billion over a 23
10 year period, is that equal annual amount or does it tend to be
11 front end loaded?
12 MS. MYERS: I think you'll get a better feel for that
13 through the direct testimony from Rich Unverferth or so about
14 our capital program, so if we can defer that question I think he
15 can probably answer it better than I can.
16 MR. CHAIRMAN: Any other parties wishing to make an
17 opening statement? Hearing none, Miss Myers, are you ready to
18 present those persons for whom you have filed testimony?
19 MS. MYERS: Yes, we are. I'll call Brian Hoelscher.
20 MR. CHAIRMAN: Mr. Hoelscher, is the testimony you're
21 about to give the truth, the whole truth and nothing but the
22 truth?
23 MR. HOELSCHER: Yes, sir.
24 MR. CHAIRMAN: Does any member of the Rate Commission
25 have any questions, or I guess we'll let your testimony go
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1 and --
2 MS. STUMP: It's really just for the Rate Commission
3 and the other interveners and that to ask any additional
4 questions they have of Brian based upon his direct testimony or
5 the discovery responses that the district has provided.
6 Mr. Hawes, if members of the Rate Commission do not
7 have any questions at this time, you can go ahead and proceed
8 with asking the interveners if they have any questions.
9 MR. CHAIRMAN: All right. Mr. Burkhart, do you have
10 any questions of Mr. Hoelscher?
11 MR. BURKHART: Yes.
12 WILLIAM BURKHART, having been duly sworn,
13 testified as follows:
14 QUESTIONS BY MR. BURKHART:
15 Q. (By Mr. Burkhart) Mr. Hoelscher, in your direct
16 testimony you testified that the rate increase under the rate
17 change proposal are required to generate the revenue needed to
18 perform operation maintenance and construction activities
19 required to maintain compliance with the Clean Water Act and to
20 address the area storm water needs. Based on this purpose, in
21 assuming that the purposes for the rate increase address these
22 regulatory compliance issues, why does the Rate Commission
23 proposal not include some sort of credit program for new
24 construction that meets or exceeds the current MSD state or
25 federal regulations and requirements?
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1 A. If you can -- I'm not sure I understand your question,
2 if you can give me an example of that?
3 Q. Sure, in the event that a new construction project
4 installs a BMP or similar, I guess, system that meets or exceeds
5 MSDs rules and regulations in the engineering design standards,
6 has MSD first considered a credit program, and second if they
7 have considered a credit program, why have that you not accepted
8 that?
9 A. For our proposal, we have not considered credit
10 program. Developers who meet MSD requirements that feed down
11 from the state and federal requirements are similar to building
12 permit requirements, and there's no change in cost to services
13 that MSD has to provide, therefore we haven't provided any kind
14 of credit.
15 MR. BURKHART: Okay. I believe that's the only
16 question I have, thank you.
17 MR. CHAIRMAN: Thank you, Mr. Burkhart.
18 Mr. Neuschafer, do you have questions of Mr. Hoelscher?
19 MR. NEUSCHAFER: Not at this time.
20 MR. CHAIRMAN: Mr. Arnold, do you have questions of
21 Mr. Hoelscher on behalf of the Rate Commission?
22 MR. ARNOLD: The Commission, I do.
23 QUESTIONS BY MR. ARNOLD:
24 Q. (By Mr. Arnold) Mr. Hoeslcher, we've met a few times,
25 we've done this before?
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1 A. Yes, we have.
2 Q. So you understand that the role of counsel to the
3 commission is simply to assist the commission in the preparation
4 of it's report, and if I may, I'd like to try to clarify some
5 things that to which you have testified. If I put to you a
6 question that ought to be responded by someone on your staff,
7 please let me know.
8 A. Yes, sir.
9 Q. Do you have your testimony available?
10 A. Yes, I do.
11 Q. And rate proposal?
12 A. Yes, sir.
13 Q. All right. Question 7 page 2, line 6 and 7, you
14 indicate at the tail end of that paragraph, got it?
15 A. Yes, sir.
16 Q. That this is the first step to address storm water
17 needs, precisely, what is included in that step?
18 A. What we're proposing is if you look at the rates,
19 proposal is to maintain a two cent district wide tax that
20 currently meets our regulatory needs for storm water and a ten
21 cent tax to address all of our operational maintenance
22 activities district wide that are required to maintain and
23 operate the storm water system, plus some additional dollars to
24 start addressing district wide capital programs, the need to fix
25 capital issues on the storm water side.
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1 The reason I say the first step is that funding
2 mechanism we set up is not producing sufficient funds in the
3 long-term to address every possible storm water issue we know of
4 it. It does provide sufficient funding again for regulatory and
5 new issues and maintenance of the system as the public system
6 exists now, and just barely starts touching on providing a
7 capital fund for district wide storm water projects.
8 I suspect in the future, we are going to be asked to
9 consider possibly providing additional storm water services
10 beyond the funding or the scope of services that we're proposing
11 to provide here, and that's the reason I kind of refer to it as
12 a first step. I think you find our proposal is to raise
13 somewhere in the neighborhood of $26 to $27 million per year for
14 storm water activities, impervious area that we discussed, two
15 rate cycles again were proposing to raise upwards of $80 million
16 eventually per year. So we view this as a first step to take
17 care of the first major issue that MSD believes it has, and that
18 is unfunded public storm sewers in annexed area of the district.
19 Q. Now when you refer to the two cents, that's .01987?
20 A. I believe yes, with Hancock adjustment, I think it's
21 0.01987 I believe that's the tax we're asking to charge.
22 Q. Now you use the term impervious area, in your rate
23 proposal, you've defined ad valorem as any tax based on assessed
24 evaluation on property, how would you define an impervious area?
25 A. An impervious area is an area which does not allow
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1 water to soak into the area or to be, to act as a grass area or
2 natural surface, things such as concrete surfaces, asphalt
3 surfaces, rooftops, those types of things, those would be
4 impervious areas.
5 Q. Now with respect to storm water, when it rains, what
6 happens to rain in the natural environment, grass and dirt
7 hills, and whatever?
8 A. In general, it will go into the ground to the capacity
9 that the soil could do so, it would absorb some of that water,
10 the rest would flow over land until it reached some kind of
11 water course, an open ditch or stream and it will continuously
12 travel through that into other larger ditches and streams, and
13 in the St. Louis area, ultimately ending up in the Missouri
14 River.
15 Q. And so it would not enter the district storm water
16 facilities?
17 A. I think under that scenario, there would not be any
18 district public storm water in the facilities, that's correct.
19 Q. Question 11, page 3, lines 10 and 12, question was
20 whether or not the ad valorem taxes on real property is fair and
21 reasonable burden on all classes of taxpayers?
22 A. Yes.
23 Q. In your discovery response, I'm sorry, you don't have
24 that? Susan?
25 MS. MYERS: I have.
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1 Q. (By Mr. Arnold) Here's a stack of what I'm talking
2 about. When you try and describe fair and reasonable, and you
3 talk about cost, I refer your attention to page 4 in the
4 discovery response.
5 A. First discovery response?
6 Q. Yes, sir, these will all be the first.
7 A. Okay.
8 Q. You say three reasons, it's the most cost efficient
9 method to collect storm water revenues?
10 A. Yes, sir.
11 Q. Does the cost of collection have anything to do with
12 what you have to do to treat storm water?
13 A. No, but it does have to do with how much we have to
14 charge our rate payers and our taxpayers to provide that
15 service.
16 Q. And if the value of your house is greater than the
17 value of my house, but they're the same size, there will be a
18 differential in our storm water fee, tax, whatever, and yet it
19 has nothing to do with the role of the district in dealing with
20 storm water?
21 A. I guess I'm not sure I know what you mean by the role
22 of the district in dealing with storm water, I --
23 Q. I've described an impervious area for you, and an
24 impervious area for me of the same size but if the volume of
25 your property is different, we will pay a different rate for
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1 handling the same amount of storm water?
2 A. Correct.
3 Q. Is that fair?
4 A. I believe so, using that type of taxing methodology is
5 the kind that's been in place in the district for over 30 years,
6 as I mentioned in my testimony, many public entities have found
7 that the appropriate way is to collect taxes for services within
8 municipal boundaries.
9 Q. Storm water services?
10 A. Services to the public, not necessarily storm water
11 service, except in the case of MSD, I would have to check, I
12 believe there are some municipalities that also collect tax for
13 storm water, I would have to qualify for that.
14 Q. Well, I will give you that many governments that
15 provide storm water service pay for storm water service through
16 the general fund, my question is, if that's not the case, is ad
17 valorem tax fair and equitable, rather than using impervious
18 area?
19 A. For the particular services we are asking for, what
20 we're planning on paying for both regulatory and maintenance
21 storm sewer system, and considering all that in comparison with
22 the impervious area, to everything else within the impervious
23 area and what we anticipate may or may not, what impervious area
24 might mean both in collection mechanisms and in cost, I do
25 believe what we're proposing right now for these particular
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1 services that is it fair and equitable.
2 Q. All right. And I believe it's fair to say the
3 districts response to request number 10, turn the page to your
4 response.
5 A. Okay.
6 Q. That's the basis upon which you say that ad valorem
7 tax is equitable because it costs a lot of money to compute
8 impervious?
9 A. When compared to impervious, that's one of the things
10 that I believe cost effectiveness is a part of that, yes.
11 MR. ARNOLD: Mr. Chairman, at the will of this
12 commission, I can have Mr. Hoelscher read this into the record
13 or you can read it at bedtime, leave it up to how you all want
14 to handle at this time.
15 MR. CHAIRMAN: Just this section from Q11, his
16 response or?
17 MR. ARNOLD: That's correct.
18 MR. CHAIRMAN: All right, let's have him read it into
19 the record.
20 Q. (By Mr. Arnold) Mr. Hoelscher, would you please?
21 A. So it would be the answer to question 10, correct?
22 Q. Yes, sir.
23 A. I should read the question first, I think before, or
24 just read the answer?
25 Q. Why don't you read the question, thank you?
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1 A. Brian L. Hoelscher states in direct testimony in his
2 opinion the Storm Water Tax Change imposes a fair and reasonable
3 burden on all classes of tax payers for three reasons, one of
4 which is the ad valorem tax method is the most cost-efficient
5 method to collect storm water revenues, and avoids annual costs
6 included in methods like voted impervious area fee, see MSD
7 Exhibit 3A. Please, A, describe the analysis that was performed
8 to reach this conclusion, my answer was A the cost associated
9 with acquiring impervious surface data set that is suitable for
10 billing purposes, requires one, aerial orthophotography of the
11 district and two planimetric delineation of the footprints of
12 impervious surface areas using aerial orthophotography. This
13 process will be repeated every other year. In addition, MSD
14 will incur costs to maintain this information responding to
15 customer request concerning it, the ongoing costs are identified
16 in MSD Exhibit 84 J.
17 B, provide copies of any memorandum, report, work
18 paper, summary analysis or schedule that supports this
19 conclusion. B, this response to discovery request was provided
20 by analysis. The budget and actual costs for administering the
21 impervious fee are part of the operating budget process. And
22 question C, describe the rationale for such conclusions, answer
23 the cost of calculating a storm water tax based on simple
24 property value calculation and adding it to the bill is minimal
25 compared to the cost of acquiring, processing and administering
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1 an impervious area fee. Under the tax scenario, there are no
2 MSD costs associated generating the impervious area fee, nor are
3 there costs with resolving disputes based on disagreements with
4 area calculations or land ownership.
5 Q. Thank you, sir. A moment ago, we had a conversation
6 about the number of entities that would provide these kind of
7 services through tax, there are also a number of entities that
8 if in fact use the impervious area calculation; is that correct?
9 A. Yes, sir.
10 Q. And in response to discovery request number 8, you
11 provided, if you'd like to read it, a copy of the 2014 storm
12 water utility survey by Black and Veatch?
13 A. Yes.
14 Q. And the last line of your, the last sentence of your
15 response, I'll read it, if I may, according to the 2014 Black
16 and Veatch survey, 90 percent of the responders have a user fee
17 based on some form of parcel area such as gross and/or
18 impervious area?
19 A. Yes, sir.
20 Q. Now, to be fair, this is a survey, and not everyone
21 participated, is it fair to say that the better managed firms,
22 districts participate?
23 A. The only thing I know is what the firms who responded
24 or participated, I don't know all of that.
25 Q. And the district was one of them?
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1 A. I believe so, yes.
2 Q. As a matter of fact, you can correct me if I'm in
3 error, 90 percent of the respondents used only the impervious
4 area?
5 A. Some form of impervious area, yes.
6 Q. You add the other what do you call it, gross and/or
7 that was 7 percent, 90 percent just use impervious area; is that
8 correct?
9 A. Yes.
10 Q. Mr. Hoelscher, I'm going to ask, excuse me Susan, did
11 I give you, yeah, somebody needs to help me with exhibit number,
12 number to be declared later. Mr. Hoelscher, I represent to you
13 that this document Rate Commission exhibit whatever is an
14 extract of a charter plan and consists of article 3 the powers
15 of the district. Now, I'm going to ask that you read the
16 material which I've highlighted, and at the bottom near the
17 bottom of page 4, then all the way over to page 8, I'm going to
18 ask that you read the heading and only subparagraph 20?
19 A. Section 3.020 powers of the district. The district
20 established under the provisions of this plan shall have power,
21 number 20 to levy assess and collect taxes on all taxable
22 property within the district or subdistrict as the case may be,
23 providing that the rate of taxation and purposes of operation
24 and maintenance shall not exceed 10 cents on the 100 dollar
25 assessed valuation.
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1 Q. You already testified that the regulatory tax which
2 you've short handed as two cents, will be paying for regulatory
3 activities, and the 10 cents will be for operation and
4 maintenance?
5 A. Correct.
6 Q. And you or your colleagues have testified that you'll
7 seek voter approval for this ten cents?
8 A. Yes.
9 Q. Do you know assuming voter approval whether the
10 district will assess 10 cents rights away, or do 8 cents, wait a
11 year, do nine cents, do 10 cents is it going to be all or
12 incremental?
13 A. And again, exactly when that happens will be when the
14 vote happens and our time to file for tax when we do that we
15 plan on asking for a ten cent tax and at this point, assessing a
16 ten cent tax, how much is does it actually assess once we have
17 authority does require review and approval by our board of
18 trustees.
19 Q. Yes, sir, I understand that, and it's my understanding
20 that subject to approval of the district, you'll seek that
21 approval in 2016 to be implemented at the beginning of 2017, or
22 at the beginning of your fiscal year in 2016?
23 A. With the taxes that are collected at the end of 2016
24 or beginning of 2017, depending on when you pay your taxes.
25 Q. So you will collect in advance on the December 31,
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1 2016 moving into the following?
2 A. We'll actually collect the arrears, the dollars we
3 collect either December 2016 or January, 2017 those tax monies
4 will be for the fiscal year starting July, 2016 through
5 June 2017, so we collect it right about in the middle of the
6 fiscal year.
7 Q. All right. But the rate proposal for which you are
8 seeking approval is for 2017?
9 A. Our fiscal 2017 which starts July, 2016.
10 Q. Got it, thank you, sir. All right, got the rate
11 change handy, how about schedule 5-1 on page 5-1, middle of the
12 page, existing and proposed storm water charges?
13 A. I have it, yes.
14 Q. Are you the one who would respond to some very general
15 questions?
16 A. Fairly general, yes.
17 Q. 30,000 feet?
18 A. That's a good elevation.
19 Q. You and me. The regulatory tax which you've mentioned
20 is the .0197 and that will carry over, there's a storm water O
21 and M tax referred to, OMCI specific subdistrict tax referred
22 to, two sets of fixed monthly charges, and then the district
23 storm water tax proposed, it's my understanding that only on
24 this schedule, the table rather, only the regulatory tax which
25 has already been approved, would continue and you would impose
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1 the district wide storm water tax?
2 A. Yes, sir.
3 Q. Subject to voter approval?
4 A. Yes, sir.
5 Q. I call your attention again to the charter, where it
6 says this 10 cents, I'm sorry, you can only levy 10 cents for
7 operation?
8 A. Yes, sir.
9 Q. What if it costs more?
10 A. We would then either have to reduce services, or seek
11 a charter change, those would be our two options some time in
12 the future.
13 Q. What if the regulatory tax was insufficient?
14 A. We would have to ask for additional level of taxing
15 for the regulatory by a vote of the people. Well, now let me
16 say this, we would have to collect additional revenue somehow
17 for this proposal, we are looking for ad valorem property taxes,
18 future revenues to address issue, even if they are additional
19 cost to existing programs, I would put to you is probably wide
20 open in any kind of methodology, could be a voted on impervious
21 fee, could be any myriad of methods of collection, so my answer
22 was if we decide to use exactly the same method to collect
23 revenue, if we're going to do something else, we could assume or
24 consider many types of ways to collect.
25 Q. But any range of options would be subject to charter?
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1 A. And the specific section you read to me would be
2 subject to ad valorem taxes or operation and maintenance duties.
3 Q. Now, with permission of your counsel, I'm going to
4 shorthand some other provisions, section 14, which you've got
5 the preceding page?
6 A. Yes, sir.
7 Q. Section 14, tax anticipate notes, have you considered
8 any of those?
9 A. Not for storm water, future funding beyond this rate
10 proposal, or for the future funding meaning this rate.
11 Q. When you run out of dough?
12 A. When we run out of dough, those would be the options.
13 Q. Fifteen revenue bonds, if you're not doing at this
14 time?
15 A. Correct.
16 Q. And 21, special benefit assessments, any of those been
17 considered?
18 A. Not for this rate proposal, but they could all be
19 considered in the future.
20 Q. Has anyone suggested to you a method other than is
21 contained in the provisions to raise additional money, I guess
22 I'm asking, does the charter give you authority to do anything
23 else to raise additional funds?
24 A. I would say I may have to look through.
25 Q. Maybe Susan can answer the question, when it's your
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1 turn.
2 A. You may have covered all the methodologies that are
3 available to us.
4 Q. All right. Wonder if we could, for a minute, talk
5 about major capital improvements, and again, this is on the
6 storm water side, the OMCI funds, provide funds for capital
7 improvement, and we are collecting those now, you will collect
8 those until the voters approve the ten percent of the thousand?
9 A. Yes, sir. Again, subject on the annual basis to our
10 board of approval, we have changed those, we would continue in
11 general.
12 Q. And if I read the schedules correctly, you're raising
13 about 70 million dollars from the 10 cents, with the 10 cents
14 per $100 to contribute to capital?
15 A. That's over a multi-year period.
16 Q. I understand.
17 A. Yes, over a multi-year period, yes.
18 Q. Let's define multi-year?
19 A. Okay.
20 Q. Seven years, 17, 18, 19, 20?
21 A. I think we're collecting for the new 10 cent tax,
22 about seven and a half billion dollars, from the 10 sent tax.
23 Q. Okay, all right. So, only the OMCI and the funds for
24 which you just described would be available?
25 A. Correct.
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1 Q. Unless you issued revenue bonds to deal with storm
2 water?
3 A. Correct.
4 Q. And it's my understanding you've determined not to do
5 that?
6 A. Yes.
7 Q. All right. I'll let that go, one moment. Sir, may I
8 put a question or two about wastewater, before we've been
9 dealing primarily with storm water, page 441, indicates what the
10 financing plan would be if the voters did not approve the bonds
11 which are included in the wastewater proposal; is that correct?
12 A. Correct.
13 Q. And can you shorthand for me what the impact would be
14 not to rate payers, but to the district, in terms of money lost
15 or money to be recovered?
16 A. To the district, both scenarios would be equivalent,
17 we would collect the same amount of revenues under either
18 scenario, so there would be no impact one way or the other to
19 the district operations.
20 Q. Now, is there an impact to the rate payers?
21 A. Yeah, in general, again, in general, the last year of
22 the current rate cycle fiscal '16, the average resident pays
23 about $40 per month for wastewater, with the bonding that's
24 going to be proposed in four years in 2020 that we go up to
25 about $60 per month, without bonding in 2020 that would go up to
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1 about $96 per month.
2 Q. And the advantage of bonding is to spread the cost of
3 the new improvements over the life of the improvements which
4 might be twenty years rather than paying for it all in four
5 years?
6 A. Yes.
7 Q. And finally, has the district received any advice
8 whether or not section 20 that you read which says operation and
9 maintenance that, 10 cents, whether or not the 10 cents might be
10 raised to another figure if the funds were not used for
11 operation maintenance?
12 A. If we raised taxes solely for public operation of
13 maintenance in the public system, that's all we would spend it
14 for, our plan would be to raise the 10 sent tax to cover what
15 our operation and maintenance costs are with any additional
16 funding being eligible for capital improvement to the storm
17 water system.
18 Q. My question is, can you, has anyone advised the
19 district you can come back and raise an additional 5 cents if
20 you promise not to spend it on operation and maintenance?
21 A. No, I'm sorry, no one has advised us of that.
22 MR. ARNOLD: Thank you, sir, I have no further
23 questions.
24 MS. MYERS: Susan, I have an exhibit number for your
25 chart, the charter plan is exhibit Rate Commission 88, I will
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1 write that on.
2 MR. CHAIRMAN: All right. Does any member of the
3 Commission have any further questions?
4 MS. BOWSER: I have some questions about what happens
5 if there is any money in various subdistricts, it is collected
6 with the present tax?
7 MR. HOELSCHER: Yes, we currently collect that now.
8 MS. BOWSER: What would happen to that money would it
9 go into, if there is, as I said would it go into a general pool
10 for the entire district?
11 MR. HOELSCHER: We have a separate fund for each
12 subdistrict and any balances that are left would be left with
13 that subdistrict for the purposes collected.
14 MS. BOWSER: Thank you.
15 MR. HOELSCHER: By ordinance.
16 MR. STEIN: John Stein, Mr. Hoelscher, just a point of
17 clarification, the proposed 10 cent storm water levy is that O
18 and M or is it OMCI?
19 MR. HOELSCHER: The way we plan on proposing it to the
20 voters is that is to address district wide storm water operation
21 and maintenance for public storm water system on an annual
22 basis, any monies not needed for that would be used for district
23 wide capital improvement to the storm water system.
24 MR. STEIN: Thank you.
25 MR. TOMAZI: Yeah, somewhere in your testimony I
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1 thought you I -- I heard something about or elusion to the fact
2 that sometimes storm water does not actually get in your system
3 at all because it flows and goes to rivers like Mississippi and
4 Missouri, are you not in some fashion or another monitored by
5 the EPA or required to monitor for them in terms of the quality
6 of the water that is entering into those channels.
7 MR. HOELSCHER: Yeah, I had mentioned 0.197 property
8 tax, we use that as part of the areas storm water permit, which
9 is called an MS4 permit. MSD is tasked with reducing or
10 mitigating the impact of local creek and streams, that activity
11 right now is paid for through that approximately 2 cent property
12 tax, so we are taxed with doing that.
13 MR. TOMAZI: You are tasked with that?
14 MR. HOELSCHER: Yes, sir.
15 MR. CHAIRMAN: I have a question myself regarding the
16 impervious area versus the assessed value as a methodology for
17 collecting funds. Did you look at the nexus that has to be
18 reached between you know, the purpose of the improvement and
19 what drives that need?
20 MR. HOELSCHER: Yeah, some of the thoughts that we put
21 in again, if you consider the main driver being through a
22 property tax the maintenance of an infrastructure for storm
23 water, I would used today, everybody that drove here today, if
24 it's not raining, use -- benefitted from MSD's infrastructure,
25 we maintain the public storm water system on the roads, so with
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1 the specific prime reason for raising the tax being maintenance
2 of the infrastructure that people use, whether there's a storm
3 sewer in there front yard or not, that drove us. There was
4 another one of the factors that drove us is that this is an
5 equitable way to pay for the infrastructure. I went through a
6 lot of the discussions about the equitability of impervious
7 rater for water issues, but I think in this particular case, and
8 especially based on partly the decision of Missouri Supreme
9 Court and what that means to what it might look like if we
10 decide to vote on impervious rate as far as who would have to
11 pay it or who would not have to pay it, there's even state
12 legislation that came out of the impervious area where certain
13 people wouldn't have to pay the rates in our mind, even if we
14 voted on impervious rate, like 3,600 customers, because of state
15 legislation during the impervious area that prevented them from
16 doing that.
17 So considering all those things and the fact that
18 we're looking at maintenance of municipal boundaries of public
19 infrastructure, while I'm sure there are exceptions, I'm sure
20 probably everybody uses and benefits from, this is the
21 appropriate way for this particular piece to address. I do
22 agree there's some extra dollar for district wide storm water
23 that is relatively insignificant to our operation and
24 maintenance cost.
25 MR. CHAIRMAN: Thank you. Any further questions from
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1 the commission? Hearing none, do we have any other -- or Miss
2 Myers, do you have any further questions?
3 MS. MYERS: I do not.
4 MR. CHAIRMAN: Hearing none, we'll dismiss
5 Mr. Hoelscher. Thank you. Miss Myers, are you ready to present
6 another person for whom you filed district testimony?
7 MS. MYERS: Yes, I'll present myself.
8 MR. CHAIRMAN: Okay. Very good. That will work.
9 Is the testimony you're about to give the truth, the
10 whole truth, and nothing but the truth?
11 MS. MYERS: Yes, it is.
12 MR. CHAIRMAN: Thank you. Does any member of the Rate
13 Commission have any questions for Miss Myers? Mr. Burkhart, do
14 you have any questions?
15 MR. BURKHART: No.
16 MR. CHAIRMAN: Mr. Neuschafer, do you have any
17 questions?
18 MR. NEUSCHAFER: Yes.
19 MR. CHAIRMAN: Please, for the record you're
20 representing Missouri Industrial Electrical Consumers?
21 MR. NEUSCHAFER: That's correct.
22 SUSAN MYERS, having been duly sworn, testified as
23 follows:
24 QUESTIONS BY MR. NEUSCHAFER:
25 Q. (By Mr. Neuschafer ) Thank you. Miss Myers, I would
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1 like to just talk about the consent decree a little bit and some
2 of the obligations under the EPA.
3 You mentioned that there's a 23 year implementation
4 period, when does that period begin and end?
5 A. That period began when the consent decree was entered,
6 I mean the entry of the consent decree in 2012 started the
7 clock.
8 Q. Was there work that you knew would be required under
9 the consent decree that started before the consent decree was
10 actually entered?
11 A. Yes, the consent decree was actually just solidified
12 the work that MSD had been doing for a very long time, so it
13 solidified our capital program, consent decree.
14 Q. Okay, so the 2 years begins with the consent decree,
15 not at the beginning of the work that's required to comply with
16 the consent decree?
17 A. Correct, we consider the entry of the consent decree
18 to be when the clock started for the 23 years, and the schedules
19 within the consent decree are built around that.
20 Q. That was my next question, the 23 years is based on
21 schedules, agreed upon schedules, that are in the consent
22 decree?
23 A. Correct.
24 Q. Now a calculation on how long you think it's going to
25 complete certain projects?
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1 A. Correct, the scheduling that came out of the consent
2 decree have been approved by the regulators, so in essence, the
3 consent decree required certain schedules, and then they were
4 approved.
5 Q. Okay. You mentioned $4.7 billion cost, is that in
6 2010 dollars or 2011?
7 A. 2011.
8 Q. Okay. And that is over the 23 year implementation
9 period, but includes projects that started prior to the consent
10 decree being finalized?
11 A. No, I believe the $4.7 billion dollars was an estimate
12 of the work being required by the consent decree, which would be
13 the schedule that came out of the consent decree.
14 Q. So the schedule only reflected work that remained to
15 be completed?
16 A. The schedules reflected work that in the regulators
17 eyes needed to be done for us to be -- to come into compliance,
18 yes.
19 Q. How did the district arrive at $4.7 billion cost, can
20 you give me some background on that?
21 A. That's probably a better question for either Brian
22 Hoelscher or Rich Unverferth. Brian was director of engineering
23 at the time we negotiated the consent decree.
24 Q. We'll ask Rich.
25 A. Rich is the current director, so he knows also.
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1 Q. And so be clear though, the consent decree requires
2 specific projects, it doesn't require a specific dollar amount
3 of spending; is that correct?
4 A. It requires a certain dollar amount of spending on
5 certain things, such as green infrastructure and things like
6 that, but the schedules that we're talking about, the sanitary
7 sewer, master, overflow master plan and the combined sewer
8 overflow long-term control plan, those schedules are not driven
9 by amount of dollars to be spent, but by projects, yes.
10 Q. So I understand that schedules are memorialized as
11 part of the consent decree, is there an opportunity to work with
12 EPA and MDNR if necessary to modify those time periods if
13 necessary?
14 A. Yes, the consent decree provides the avenues to do
15 that.
16 Q. Okay. That's all memorialized in the consent decree?
17 A. Yes.
18 Q. We can look at that for specific terms?
19 A. Correct, there's different types of modifications that
20 are allowed through the consent decree.
21 Q. The consent decree also includes penalties, maybe
22 perhaps stipulated penalties for failure to complete projects on
23 time?
24 A. Yes, there's a whole section on tip late penalties,
25 and I don't have the consent decree with me, but there are
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1 different penalties for different types of noncompliance of the
2 consent decree.
3 Q. Would that include missing deadlines or -- that
4 includes missing deadlines?
5 A. Yes.
6 Q. Would that include repairs basically not operating to
7 design, you know, you complete the repairs, you did the work
8 that was anticipated, but for lack of the better terminology,
9 the repairs didn't work?
10 A. Yes.
11 Q. The -- you mentioned the CSO long-term control plan
12 and the SSO master plan, are those in the record, do you know?
13 A. I don't have the exhibit list with me.
14 Q. Nonetheless, we'll verify that.
15 A. They are public documents, and I believe they are
16 accessible on our MSD website.
17 MS. STUMP: Exhibits 47 and 48, 47A and B, sorry.
18 Q. (By Mr. Neuschafer) And those identify projects to be
19 completed, timelines to be completed?
20 A. Correct, the long-term control plan is the road map to
21 address our combined sewer overflow issues and the master plan
22 is the road map to address our sanitary sewer overflows.
23 Q. Right, I don't have these in front of me, so you may
24 not be able to answer the question, but these contain timelines
25 that are going to, and projects that are going to take the 23
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1 years to complete, or is it front end loaded, or something that
2 would be done within 10 years, or additional 13 years as needed
3 for other purposes?
4 A. Rich Unverferth will give you a better understanding,
5 but our capital program that Rich will be talking about is based
6 on those plans, or those schedules.
7 MR. NEUSCHAFER: Okay. That's all I've got.
8 MR. CHAIRMAN: Thank you, Mr. Arnold do you have any
9 questions of Miss Myers on behalf of the Rate Commission?
10 MR. ARNOLD: Yes, sir.
11 QUESTIONS BY MR. ARNOLD:
12 Q. (By Mr. Arnold) I want the record to show that in
13 addition to being admitted to the bar, Miss Myers is an
14 engineer, geological engineer. Do you have your testimony
15 available?
16 A. Yes.
17 Q. Question 6, you state that it was your opinion that
18 the wastewater proposal was consistent with law and in response,
19 you discuss the Keller case, Beatty case and the Missouri Growth
20 case. As we both know, when the court considered the storm
21 water proposal, from last time around, it undertook to review
22 what it's predecessor have done with respect to these three
23 cases, do it you consider the Zweig case in response to this
24 question?
25 A. I did not in response to this question because this
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1 question was about wastewater, and so, the history, the legal
2 history regarding the wastewater rate I felt was covered by the
3 basis that I have listed in my response.
4 Q. To be a little more specific then, in Zweig they took
5 the Keller criteria and not only examined them with respect to
6 wastewater, but commented generally on a utility, you consider
7 these ad hominems from the court?
8 A. We have not considered the Zweig decision in our
9 consideration of our wastewater rate.
10 Q. You've already dealt with my consent decree questions,
11 turning to storm water, I take it that you have not been asked
12 to provide the district with information on utility of either
13 tax anticipation notes or bonds or special assessments in order
14 to raise funds should the 10 cents be insufficient?
15 A. We have not, we have looked at what the, we feel the
16 charter allows us to do at this time, and that's what our
17 proposal is based on.
18 Q. Mr. Hoelscher told us that he would stop imposing the
19 O and R, OMCI and the flat rates upon voter approval of the 10
20 cents per hundred. Now, the storm water ad valorem levy was
21 adopted by the district in 1954, and that was pre-Hancock, so no
22 voter approval was required, I'm sorry, I'm taking this out of
23 the Zweig opinion. I've asked you for these ordinances, but
24 you've not had time to respond.
25 A. Use at your own risk then.
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1 Q. Yes, ma'am. The storm water surcharge levy visited in
2 1988 was by a vote of a people, those don't create for me any
3 difficulties, but the 23 separate subdistricts have levies
4 between 4 cents and 10 cents, and those likewise are going to
5 according to district, go away, with imposition of I'll call it
6 the flat ten percent, as has the district considered whether
7 those might be repealed simply by ordinance, or whether some
8 other mechanism might be required?
9 A. We have considered rolling the OMCI back to 0, by
10 ordinance.
11 Q. Okay. So you simply reduce the levy to 0, rather
12 than --
13 A. Correct.
14 Q. Okay.
15 A. Correct.
16 Q. Same thing with the subdistrict?
17 A. That is the subdistricts that I'm talking about.
18 Q. Okay. All right, and then do you believe there's any
19 position to the proposition that after you spend the 10 cent
20 thrown in, you can ask for another 5 cents for some other
21 reason, and not be in violation of 3.02020?
22 A. The way you're reading the chart now is we have the
23 ability to ask for the 10 cents.
24 Q. Now, I want to follow up on Commissioner Bowser's
25 questions, if I may. As I understood whether it was your
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1 response or Mr. Hoelscher response, the money raised in a
2 particular subdistrict may not be applied to activity outside of
3 that subdistrict; is that correct?
4 A. That's correct.
5 Q. And the district maintains separate accounts for each
6 of these subdistricts, so mechanically it's not too difficult to
7 make that work?
8 A. That's correct, and that is identified by ordinance.
9 Each subdistrict was set up by an individual ordinance, so you
10 know what area that subdistrict applies to.
11 Q. And just a moment ago, or perhaps it was Mr. Hoelscher
12 that was reference to, may I approach, to this amendment to the
13 statute, which affects the ability of the district to levy and
14 assessment or tax if the district does not provide sanitary
15 sewer services and if the storm water runoff does not flow or is
16 not otherwise conveyed to the sewer maintained by such district,
17 is the aim conjunctive or disjunctive, how do you read it?
18 A. We read this statute to say that if someone, if a
19 resident is not receiving MSD service for wastewater, then they
20 can not be assessed a fee, charge or a tax.
21 Q. I guess it was 2007, 2008, we spent a lot of time
22 worrying about levy districts, it will be either the regulatory
23 tax, the two cents or the overall 10 cents be levied on property
24 within levy districts?
25 A. That question is probably better answered by Rich
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1 Unverferth, so I'll defer to him if you don't mind.
2 Q. Thank you. Will tax be levied on governmental
3 property, the storm water 10 cents?
4 A. It would not be levied on tax exempt property.
5 Q. That would include governmental property and
6 not-for-profit?
7 A. Yes, I believe so.
8 MR. ARNOLD: Thank you. I have no further questions.
9 MR. CHAIRMAN: Thank you, Mr. Arnold. Does any member
10 of the Commission have any further questions for Miss Myers?
11 Hearing none, thank you very much, I appreciate it.
12 All right, call another witness please, Miss Myers.
13 Are you ready to present those persons for whom you have filed
14 district testimony?
15 MS. MYERS: Yes, the district would like to call Rich
16 Unverferth.
17 MR. CHAIRMAN: Mr. Unverferth, is the testimony you're
18 about to give the truth, the whole truth, and nothing but the
19 truth?
20 MR. UNVERFERTH: Yes.
21 MR. CHAIRMAN: Thank you. Does any member of the Rate
22 Commission have questions for Mr. Unverferth? All right,
23 Mr. Burkhart do you have any questions on behalf of the Home
24 Builders Association?
25 MR. BURKHART: We do not.
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1 MR. CHAIRMAN: Mr. Neuschafer, do you have any
2 questions on behalf of Missouri Industrial Energy Consumers?
3 MR. NEUSCHAFER: We do.
4 MR. CHAIRMAN: Please come forward.
5 RICHARD UNVERFERTH, having been duly sworn, testified
6 as follows:
7 QUESTIONS BY MR. NEUSCHAFER:
8 Q. (By Mr. Neuschafer) Thank you again. Mr. Unverferth,
9 your testimony indicates that the current rate plan reflects one
10 and a half billion dollar capital plan for 2017 through 2020?
11 A. That's correct.
12 Q. And as we've discussed earlier with Miss Myers, the
13 consent decree requires MSD to spend approximately $4.7 billion
14 over the 23 year implementation period?
15 A. Yes, that is correct.
16 Q. In the last rate proceeding that's effective for the
17 fiscal years '13 through '16, that contained a capital program
18 of approximately $1 billion?
19 A. Yes, slightly under 971, I think.
20 Q. So using some rounding, between the two rate
21 proceedings, we're at about $2 and a half billion of the $4.7
22 billion?
23 A. That would be correct.
24 Q. I asked Miss Myers the question earlier, she
25 graciously deferred to you, about how $4.7 billion was
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1 calculated, can you give us some background on how that number
2 was arrived at?
3 A. Generally, we were going through a planning effort at
4 the time of the negotiations and the schedules of the specific
5 work that has to be done to control sanitary sewer overflows and
6 the combined sewer overflows. The schedule to do those projects
7 really drove the length of the program, in other words, on the
8 sanitary sewer side, some of the projects took long-term
9 projects that would extend out over a long period of time, and
10 the combined sewer where the larger projects are, there was
11 going to be more upfront time in designing those, so really to
12 scheduled the project list for both the combined sewer and
13 sanitary drove the overall schedule, and then we had conceptual
14 cost estimates that are associated with them, that range over
15 the 23 years.
16 Q. Okay. And have those conceptual cost estimates been
17 included in your testimony as an exhibit to any testimony?
18 A. We've provided what I think we provided the four --
19 the 8 year outlook of the capital.
20 Q. Covering the first 8 years?
21 A. Well, actually would be 12 year, we have the '13
22 through '16 we provided the next four years, $1.5 billion that
23 we've asked for, and I do believe we include the following four
24 years, I can't tell you what it is.
25 Q. Taking us --
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1 A. First four --
2 Q. From '13 through '16, and next 8 years through '24?
3 A. Yes.
4 Q. So at the conclusion of the rate period, covered by
5 this proceeding, you've still got 15 years remaining,
6 approximately 15 years, and about half of the remaining capital
7 spent?
8 A. Correct.
9 Q. Excuse me, you've already answered some of these
10 questions, so I don't want to ask them multiple times, we talked
11 with -- I talked with Miss Myers just a bit about delays of
12 projects, there could obviously be stipulated penalties under
13 the consent decree, are there any other ramifications of delays?
14 A. The penalties are generally having to do with on the
15 sanitary side the removal of overflows, sanitary sewer overflows
16 based on what's set out in the consent decree. This happens to
17 be in 2020 through 85 percent of the sanitary sewer overflows
18 have to be removed on a combined sewer side, there's the
19 projects are laid out with specific dates for specific control
20 measures that have to be done over the 23 year period, and the
21 last 15 percent we mentioned 85 percent have to be out there in
22 remaining portion.
23 Q. Okay. So that the scheduled and the timing is based
24 on achievement of certain goals, like 85 percent reduction, not
25 project X has to be completed by 2017, project Y has to be
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1 completed by 2018?
2 A. On the sanitary sewer side, we have a schedule where
3 you will of projects that we proposed in order to remove the
4 overflows, and we provide a schedule of when those projects are
5 planned to be completed by, and of course the result of the
6 project is having the overflow removed, there's a little bit
7 different guidance on how the overflows in other words, 85
8 percent by a certain time.
9 Q. And so those -- the goals are part of the consent
10 decree, are the schedules the specific projects to reach the
11 goals, do you know if those have become part of the consent
12 decree as well?
13 A. The SSO, sanitary sewer overflow master plan was
14 submitted the end of 2013 and it was approved in July of 2014
15 and then became an enforcement part of the consent.
16 Q. So that was SSO master plan?
17 A. Yes.
18 Q. Was there a similar process for the CSO long-term
19 plan?
20 A. Yes, that's actually in the consent decree now,
21 there's an appendix in the consent decree there that says
22 specific control measures that have to be completed, and by when
23 they have to be completed.
24 Q. Okay. The SSO programs, can you describe the programs
25 included in the budget that's part of the fiscal year '17
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1 through '20 relative to those for fiscal years '13 through '16,
2 what types of projects?
3 A. They'll actually be very similar, in '13 through '16
4 there's probably more emphasis on actually designing the jobs,
5 and the next fiscal year will still be designing jobs, that will
6 probably be doing slightly more construction. There are several
7 different types, there's actually construction of release sewer
8 projects where actually building new sewers to replace the
9 sewers that lack capacity, there's what we call removal of
10 inflow and infiltration from the system. That's two components
11 of that, the district lining our sewers and doing a program to
12 eliminate flow or flows getting into our system, and then
13 there's a removal of illegal flows, inflow into the system from
14 downspouts from private connections in the sanitary. Those are
15 probably the three mayor components, although we do have as part
16 of the relief, there will be some storage, in other words, some
17 cases you don't have the ability to build a larger downstream
18 pipe, so we will divert that, store that and then go back into
19 the same system in order for us to treat.
20 Q. So can you give me an idea of the number of projects
21 maybe design you know versus construction phase, let's say for
22 you know, '16 verse '17, I don't know?
23 A. I don't know if it breaks that out, we just did our
24 budget presentation on '16 and there was about 100 projects in
25 fiscal year '16 on the sanitary sewer side, and I can't tell you
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1 exactly what the breakdown in design versus construction is, but
2 I know at least for the next, first couple years of the next
3 rate cycle, we are very similar to that, in '17 and '18.
4 As you go beyond that, then the sanitary sewer
5 overflow those projects we still have those projects, but we'll
6 be starting some of the larger combined sewer projects.
7 Q. You mentioned that you just went through the budget
8 proposals for '16, so of these approximately 100 projects on the
9 SSO side, what is the cost associated with it, for fiscal year
10 '16?
11 A. I think the total capital improvement budget is about
12 $300 million, and I think probably $200 or three quarters of
13 that is the sanitary, or the wastewater capital improvement
14 budget, but we do have some combined sewer work, I'd rather not
15 guess, but the majority of it is sanitary sewer overflow
16 projects.
17 Q. Okay. I believe it's page four of your testimony, you
18 discuss how you arrived at the estimated cost for the wastewater
19 programs; is that correct? Looks like question 11.
20 A. Yes.
21 Q. You indicate that the cost estimates are based on
22 historical district bid prices using conceptual and preliminary
23 design information, that's correct?
24 A. Correct.
25 Q. And that you estimate facility work based on technical
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1 expertise and consulting on similar projects?
2 A. Correct.
3 Q. Have you, so when you were preparing your estimates,
4 did you take into account for example changes in concrete
5 prices, relative to prices from historical bids?
6 A. Generally what we'll do, we monitor annually, we have
7 a full list of unit prices for the work the district performs,
8 and it's on a basis of how we pay for it, and what we do, every
9 year we analyze all the gamut of bid prices that we get for all
10 the bids on the previous year and we monitor any kind of
11 trending with that, all the way down to specific item, and we do
12 that over a period of time and we've generally run pretty
13 steady, and then during our annual review, if we see something
14 with that, we'll go ahead and make an adjustments to that unit
15 price, but the overall from a conceptual level we used what we
16 knew at the time.
17 Q. So I guess for using concrete as an example again, the
18 estimates, the budget estimates that you prepare are not
19 necessarily based on the market as it existed in February of
20 2015, but perhaps based on bids that you received or what you
21 were paying in, you would have used 2013 maybe?
22 A. Correct, and most of ours are based on installed
23 prices, not necessarily commodity itself. In other words, we
24 base on installed type so those costs aren't just material
25 costs, the material and the labor involved.
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1 Q. So the same, I guess the same approach in looking at
2 historical contracts and historical bids that would be the same
3 as far as any commodity like steel or gasoline or fuel prices?
4 A. Now, we will, if it's a project that involves that, we
5 look at that individually, by the basis of, like I said, under
6 engineering judgment, by basis of means when you get into
7 building construction things like that, that's not -- we utilize
8 our method for standard, most of the sewer construction when you
9 get into specialized construction such as building or true
10 construction, that's when you actually start looking at the
11 actual cost of some of the models.
12 Q. So would there be opportunities for estimated costs to
13 be reduced if prices such as commodities were analyzed more
14 closely based on current markets, as opposed to historical bids?
15 A. Yeah, we adjust what we put into our budget is based
16 on the latest estimate we have. We have conceptual which is we
17 have the project, this is what we intend to do, and then as we
18 define the problem, in other words, defined at a certain level,
19 we define the next level and we create a preliminary cost
20 estimate and then there's actually the engineering cost
21 estimate, that's going out to bid, and again, it's kind of the
22 morphing of it.
23 Q. In your estimates, have you taken into account other
24 economic factors, like the availability of contract workers or
25 contractors who can complete the projects that you need?
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1 A. Again, the bids that we're actually receiving back
2 actually kind of derive that. We do monitor it, and as of right
3 now, we're not seeing any escalation, I think if that's what
4 you're asking, I'm not sure.
5 Q. So I guess the concept would be there's a lot of work
6 that you're proposing to do in the coming years, and certainly,
7 to the extent that you're pulling bids from nationally based
8 contractors, this type of work is happening in a lot of areas
9 around the country, and wondering if there's been any analysis
10 of you know, the potential strain on contractors who are
11 qualified to do this work, or employees, their employees that
12 are qualified to do this work?
13 A. We have not done any additional analysis.
14 Q. Have you done any analysis on the district's ability
15 or needs associated with the increased capital expenditure?
16 A. When we put the program in place, the resources the
17 district supplemented resources both on the engineering and
18 construction management side, in order to do that, and
19 obviously, any new facilities that come in as part of it, are
20 part of the annual operation budget and are accommodated through
21 an annual budget process. But yes, that's taken into
22 consideration particularly on the operation side.
23 Q. Would you agree that the relative size of your program
24 planned for the four year period is you know, like a good 50 to
25 100 percent larger than what's been funded over the last years?
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1 A. Correct.
2 Q. So, I guess to some extent, asking the same question,
3 maybe a little more simple, do you need more personnel, do you
4 have the personnel to manage that?
5 A. We are confident that we have the staff supplement in
6 place in order to deliver that program, based on what we've
7 asked for.
8 Q. Has a full analysis been conducted?
9 A. Nothing other than us knowing what resources we have
10 in place to supplement our staff and resources in place from a
11 construction management side to manage that work.
12 Q. So to be clear, that is with respect to design and
13 construction management?
14 A. Correct.
15 Q. Okay. Do you have, are there adequate qualified
16 inspectors to make sure the programs are designed consistent
17 with design specifications and codes to ensure the plan
18 specifications are met?
19 A. Yes, we have the resources to properly inspect the
20 projects that will be under construction, and those are included
21 in the program.
22 Q. The current spent is I think around $250 million in
23 fiscal year '14 up to about $450 in fiscal calendar year '20?
24 A. Correct, it ramps up.
25 Q. There that's the spin, what's the number of projects?
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1 A. What you'll see, the peak of the number of projects
2 will be in the '16, '17 and '18, those are the sanitary sewer
3 overflow, you'll tend to see more projects as you get into '18,
4 '19 you'll see less projects, more large projects, that have
5 higher spend, those are the large tunnel projects that will be
6 underway the second half of this rate cycle, I don't know those
7 numbers off top of my head.
8 Q. Do you have a specific plan for identifying qualified
9 contractors?
10 A. We have an annual pre-qualification process with
11 regard to all of your contractors, with regard to their ability
12 to do deep sewer construction, five categories, with respect to
13 the deep sewer tunnel work, that would be -- we would ask for a
14 pre-qualification as part of the bid package, or the contractor
15 or the team of contractors that will do that work, that will be
16 part of the process.
17 Q. Okay. So that is, that's your pre-qualification
18 process for assuring that they can do the work, have the
19 capabilities to do the work?
20 A. Correct.
21 Q. I guess what sort of procedures or process do you have
22 in place to assure that you're getting a fair price for the
23 contract services?
24 A. I mean, that's where we have our consultants that have
25 provided us with the estimates of the work that are taking into
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1 account, other work that's not just going on in our area, but
2 across the nation, what people are paying. Now obviously,
3 conditions are different in every place but they're taking into
4 consideration what's happening around the country with regard,
5 particularly with the tunneling operations.
6 Q. So for the projects that are being completed pursuant
7 to the consent decree as part of this rate proposal, what's the
8 expected life of the investments, the equipment that you're
9 installing, the tunnels?
10 A. If you're looking at rule of thumb, obviously some of
11 those are assets in the ground today are providing sewer that
12 has lasted over 100 years, so if you're looking at rule of
13 thumb, sewer assets or collection systems assets such as pipes
14 or tunnels, you would hope that you're getting somewhere around
15 100 year life. When you're talking about facilities, such as
16 pump stations or treatment facilities, you're looking at
17 somewhere between 25 to 30 year life, again, they're different
18 components that have longer lives, and that's rule of thumb.
19 MR. NEUSCHAFER: Okay. I think I've got what I need,
20 thank you.
21 MR. CHAIRMAN: Mr. Arnold, do you have any questions
22 of Mr. --
23 MR. ARNOLD: Yes, sir, I do.
24 MR. CHAIRMAN: On behalf of the Rate Commission.
25 Q. (By Mr. Arnold) Mr. Unverferth, were you in the room
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1 when I spoke with Mr. Hoelscher?
2 A. Yes.
3 Q. And you know who I am?
4 A. Yes.
5 Q. Okay. Couple of questions on wastewater to follow up
6 with Mr. Neuschafer. In your direct testimony, questions four
7 and five you identified that $1.5 billion, and in question five,
8 you indicate that this activity was required to comply with
9 consent decree, but then on page 2 line 19 of your testimony you
10 refer to some asset management projects, what's an asset
11 management project?
12 A. Asset management is actually managing assets to get
13 the longest useful life of the asset.
14 Q. You got to fix it?
15 A. You got to fix it, in other words, if an asset lasts
16 100 years, and it's getting to be 100 years old, again, that's a
17 rule of thumb, at some point that asset is going to reach a life
18 where you have to extend it.
19 Q. So this is to maintain or extend useful life and
20 that's why you included asset management agreements in the
21 schedule, because they're not required by the consent decree?
22 A. Not required by the consent decree, but if that asset
23 fails, then we would be in violation, yes.
24 Q. All right. With respect to the storm water regulatory
25 service and this is what Mr. Hoelscher described as 2 cent tax
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1 that's the, as I understand it, the only source for this
2 regulatory service?
3 A. Correct.
4 Q. Okay. And in your testimony you used the term
5 co-permittee, and we asked you one, what is a co-permittee, and
6 two, how many of them are there, and in the discovery response,
7 you said essentially it's everybody within every municipality
8 within the district?
9 A. Of a certain size, it does not include, I don't know
10 the exact criteria off top of my head, we listed in discovery.
11 Q. Right.
12 A. Does not include all municipalities within the
13 boundaries, but does include the entire St. Louis County.
14 Q. Okay.
15 A. Within the district boundaries.
16 Q. The next question is, the levy, help me out a little
17 bit, in your direct testimony you refer to an agreement with the
18 levy district, then when we asked for agreements, the district
19 response was, there are no current agreements with levy
20 districts. So my question is, are there levy districts within
21 the district's boundaries?
22 A. Yes.
23 Q. Do you know who they are?
24 A. There are, I think there's seven separate levy
25 districts, I could provide the list, Chesterfield, Monarch,
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1 Earth City and I think there's two components of the Earth City.
2 There is the -- yeah, we could provide that, but there's seven
3 is what I know because of the previous agreements that we have.
4 Q. Okay. Now, will the district perform any operational
5 maintenance within the levy district for storm water?
6 A. Under the proposal, it's our intent that the levy
7 district have the authority and ability to provide operation and
8 maintenance within their levy districts as they exist today. It
9 is our intent is that we would allow them to continue to operate
10 and maintain the sewer, public sewer, and their levy district
11 asset.
12 Q. So they're going to operate and maintain not only the
13 infrastructure which you build, but infrastructure which they
14 build?
15 A. Correct.
16 Q. And the district will have no obligation?
17 A. Correct.
18 Q. Will the district perform any regulatory services
19 within the levy district?
20 A. Yes, the district is still responsible again to
21 perform the regulatory or oversee the regulatory services for
22 entire boundary, which include the levy district.
23 Q. How you going to get paid for that?
24 A. It's our intention that 2 cent tax or 0.197 tax is
25 currently being assessed and being paid for the levy district.
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1 Q. So that tax will be paid by property owners within the
2 levy district?
3 A. Correct.
4 Q. And the district has determined that will be
5 sufficient to provide for the regulatory requirements?
6 A. Within the next rate cycle.
7 Q. Will the district have any obligation for capital
8 improvements in the levy district?
9 A. Under this scenario, we would not.
10 Q. Now, on the storm water CIRP in your testimony was
11 question 25, page 9, line 22, you observe that you are required
12 to plan, design and construct?
13 A. I'm sorry, 25, sorry, I was in the wrong spot.
14 Q. There's no rush.
15 A. Okay.
16 Q. You're required to plan, design and construct within
17 annual revenue?
18 A. Correct.
19 Q. Are you also required to plan, design and construct
20 within the four year term of this rate proposal?
21 A. There will be projects that are planned and designed
22 within this rate period that will be actually product
23 constructed beyond this rate period.
24 Q. Does the capital request include the construction cost
25 of those projects?
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1 A. No, it would only include the design.
2 Q. Now, you spoke with Mr. Neuschafer about relative
3 size, and capacity with which the district has to deal with this
4 in a consent decree, this is a much more accelerated program
5 than one in which the district has been involved in the past; is
6 that correct?
7 A. Yes, it is.
8 Q. What if the funds from a 10 cents per 100 assessed
9 valuation is not sufficient year by year by year to plan, design
10 and construct storm water CIRP, do you delay or do you take
11 other steps?
12 A. Could you repeat the question, I didn't catch the very
13 first part.
14 Q. All right. What if the 10 percent per $100 is going
15 to operation phase, some of it is going to your capital
16 improvement, but it's insufficient to permit you to plan, design
17 and construct within the four year period?
18 A. We would simply design to the available funds that
19 we've outlined in the rate, still not sure if it's insufficient,
20 in other words, we don't design, plan, design or construct
21 anymore than the money that's available, I'm not sure --
22 Q. No, you're responsive to my question.
23 A. Okay.
24 MR. ARNOLD: Which is my last question.
25 MR. CHAIRMAN: All right, thank you Mr. Arnold.
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1 Questions from commission members? Mr. Schneider.
2 MR. SCHNEIDER: Mr. Unverferth, I'd like to call your
3 attention to your testimony on question 13, the question talks
4 about the budgeting process and that you were able to bring the
5 FY '13, '16 capital project under budget and under schedule; is
6 that correct?
7 MR. UNVERFERTH: Yes, that's correct.
8 MR. SCHNEIDER: How much were you under budget during
9 the FY '13 '16?
10 MR. UNVERFERTH: There was, the number of projects
11 that we had planned, I think the dollar amount that was
12 available for the rate commission was 971 for the capital
13 programs. We're projecting to be at about 6 percent less than
14 that, with the projects that we're doing, and we've still
15 completed the project that is we had planned during that time
16 period.
17 Now, granted there are projects that move back and
18 forth during that amount of the time that we were able to meet
19 all the requirements of the consent decree during that time with
20 the removal that we had planned.
21 MR. SCHNEIDER: Again, so that's 6 percent, $971
22 million dollars?
23 MR. UNVERFERTH: Yes, I don't have that sitting right
24 in front of me. That's a projected on the next fiscal years.
25 MR. SCHNEIDER: Then your answer went on to say if you
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1 were able to use some of the excess money for construction
2 improvements of the district incinerator facilities and then
3 number of contingency projects approve by the board of trustees.
4 Can you tell me the contingency projects, were they part of the
5 consent decree going forward?
6 MR. UNVERFERTH: Incinerator project was not, that was
7 another regulatory issue that came up during this rate cycle.
8 Any other projects that we brought up were part of the consent
9 decree, generally it's projects that are planned where we have
10 everything in place to move that project up, and likewise, you
11 know, you have some projects that get delayed to some extent.
12 MR. SCHNEIDER: Thank you the Commission, I have no
13 further questions.
14 MR. CHAIRMAN: George.
15 MR. TOMAZI: Yeah, I have two questions Miss Myers
16 skillfully ducked earlier, so I'll direct them to you. First
17 question about is the consent decree basically front end loaded,
18 in other words if 23 years is 60 percent would be expended
19 and/or committed say within the first ten years or approximately
20 what percentage.
21 MR. UNVERFERTH: Of the $4.7 billion and again,
22 without seeing how we've got it aligned, the majority of the
23 sanitary sewer overflow program is intended to be performed in
24 this first 8 to 10 years of a program. In other words, that's
25 based on our schedule agreed to get 85 percent. At that point,
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1 some of the larger combined sewer overflow program kicks in with
2 some of the larger CSO channels capture combined sewer overflow
3 and reduce runoff.
4 The largest in other words, where we see the largest
5 is in this next 8 years, I don't think there's a drastic drop
6 off, but it's a gradual drop off to the end of the program, end
7 of 23 years, so I don't know that I would consider front loaded,
8 we're at a peak right now. We're ramped up, we're at the peak
9 probably, so to say it's front loaded, you have a big peak at 8
10 years is kind of in the middle.
11 MR. TOMAZI: Of your foreseeable CIRP program,
12 approximately what percentage of that is driven by the consent
13 decree, 100 percent or 80 percent or?
14 MR. UNVERFERTH: If I was guessing, I'd say closer to
15 95 percent.
16 MR. TOMAZI: That's all I have.
17 MR. CHAIRMAN: I have a quick question for you, when
18 you complete a project, do you test the results of the impact of
19 the project upon it's completion, and if so, do you reprioritize
20 your other projects as a result?
21 MR. UNVERFERTH: Yes, we have the program particularly
22 with the sanitary sewer overflow program, with our emphasis on
23 getting the excess flow or the storm water flow out of the
24 sanitary system in order to get all the capacity we can just for
25 wastewater, there in some in particularly the private side, that
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1 we monitor them the results of getting that storm water out of
2 the system, and the results of that monitoring then, does two
3 things, one it would allow us then to say we no longer need the
4 overflow to protect anything or any other facility, so it allows
5 to us remove the overflow, but it can also tell us that we have
6 additional capacity in the system that would could prevent us
7 from having to build some larger relief sewer at some later
8 date. So in other words, getting the flow out that's why we
9 designed the program in that manner.
10 MR. CHAIRMAN: Do you foresee a scenario of where you
11 review and it didn't have the impact that you thought and you
12 may have to add projects and actually add to the cost of the
13 overall program?
14 MR. UNVERFERTH: Those projects are in there. We
15 couldn't not develop a plan for the EPA without those projects
16 in there. In other words, we make an assumption based on having
17 to do a relief project, and then if we get better results with
18 the removal, then we take the overflow out and we don't have to
19 do the additional project, but we had to plan that into the
20 program.
21 MR. CHAIRMAN: So to ascertain from that, the CIRP is
22 kind of a worst case scenario of projects and that's kind of one
23 of the ways you can come in under budget?
24 MR. UNVERFERTH: On the sanitary sewer overflow side,
25 if we're successful with the approach, there could be savings in
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1 there, I can't say for sure that there would be, but we have to
2 assume to a certain level of removal.
3 MR. CHAIRMAN: Thank you, any other questions? Mr.
4 Stein.
5 MR. STEIN: Mr. Unverferth, just a question looking
6 forward into the four year planning period, are there any
7 upcoming EPA regulations that could trigger some additional
8 capital expenditure above and beyond what you're doing as part
9 of the consent decree, improvements to treatment plans,
10 additional treatment et cetera that would cause you to --
11 MR. UNVERFERTH: The only one that's outstanding right
12 now is that they're looking at the ammonia criteria in receiving
13 waters for the state of Missouri. The district in order to
14 preempt that, we're taking a look at all of our treatment
15 facilities right now in the next fiscal year, in fiscal '16 to
16 look at our plan of what that new ammonia criteria and they're
17 also looking at future criteria for phosphorus and nitrogen.
18 Those could impact, that could impact all of our treatment
19 plans. We're taking a look at that right now to determine what
20 that impact really looks like, in other words we really need to
21 know what that number could be. Conceptually, it could be, you
22 know, millions of dollars, hundreds of millions of dollars in
23 order to get our treatment plants to meet this new criteria.
24 That's the only thing that sits there now, but what we're
25 hearing is that it wouldn't necessarily happen in this next rate
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1 cycle, the next rate cycle is when the criteria to be set forth,
2 and generally, you have one or two permit cycles which run on
3 five years in order to make those improvements. So more apt we
4 would know within the next four years what that looks like, and
5 how it would impact us going forward.
6 MR. STEIN: Thank you.
7 MR. CHAIRMAN: Any further questions from the
8 commission? Yes, sir. Mr. Arnold.
9 MR. ARNOLD: John Arnold, if I may with respect to
10 Commissioner's Stein question if I can refresh Mr. Unverferth's
11 memory, we put that question in the discovery request, and it's
12 number 18, and you just identified ammonia, but he also
13 identified three others that are potential.
14 MR. UNVERFERTH: Thank you very much, the district is,
15 as I mentioned earlier, we're performing some improvements on
16 our sanitary sewer incinerator that's impacting us in the
17 current rate cycle, I think to the tune of around $17 million
18 impact to the current rate cycle. There are new sludge
19 incinerator regulations that are out there, in other words
20 incinerators that we operate have been reclassified and next to
21 some other incinerators, which makes their discharge more
22 stringent, the regulations, but right now, we're able to stay
23 within those regulations by making improvements, and I kind of
24 use a description of a house. If you do so much work on an
25 incinerator or do so much work on your house, then you got to
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1 bring that up to the new regulations, and right now we're not at
2 that thresh hold. If something should come about, then we would
3 have to invest entirely into new incinerators, that's another
4 one, I apologize, I couldn't quite remember all of them.
5 And there are there's one other one I mentioned, if
6 you read there, there's other criteria that EPA is looking at
7 with regard to viruses, particularly with the recent outbreak of
8 Ebola, what impact, whether there's any of that that comes
9 through the treatment plants, things like that, those are things
10 being studied, we think they're farther out, but we know the
11 ammonia and the new criteria is a little closer in to where
12 we're at right now.
13 THE COMMISSIONER: Any questions? Miss Myers, do you
14 have any further questions?
15 MS. MYERS: I do not, no.
16 MR. CHAIRMAN: All right. Thank you, sir. Without
17 objection, if we could break maybe about 6 minutes, just recess.
18 (Whereupon, a break was taken)
19 (Back on the record)
20 MR. CHAIRMAN: I think we're ready to go here, we're
21 going to reconvene. Miss Myers, are you ready to present those
22 persons for whom you filed district testimony?
23 MS. MYERS: Yes. Our next witness is Jon Sprague.
24 MR. CHAIRMAN: Thank you, Mr. Sprague. Is this
25 testimony you're about to give the truth, the whole truth and
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1 nothing but the truth?
2 MR. SPRAGUE: Yes, it is.
3 MR. CHAIRMAN: Thank you. Does any member of the Rate
4 Commission have questions for Mr. Sprague at this point? Okay,
5 Mr. Burkhart, do you have any questions of Mr. Sprague on behalf
6 of the Homebuilder's Association?
7 MR. BURKHART: I do not.
8 MR. CHAIRMAN: Mr. Neuschafer, do you have any
9 questions on behalf of the Missouri Industrial Economic
10 Consumers?
11 MR. NEUSCHAFER: I do not.
12 MR. CHAIRMAN: Mr. Arnold, do you have questions on
13 behalf of the Rate Commission?
14 MR. ARNOLD: I should be very brief.
15 MR. CHAIRMAN: Very good.
16 JON SPRAUGE, having been duly sworn, testified as
17 follows:
18 QUESTIONS BY ARNOLD:
19 Q. (By Mr. Arnold) Hello again.
20 A. Hello.
21 Q. Good to see you. Question 12, in your direct
22 testimony, you refer to page 4 line 6, as you're discussing the
23 district as meeting service level expectations of the customers,
24 that there were some 2014 customer surveys?
25 A. Yes.
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1 Q. And page 6 line 20, you refer to a, I'm sorry?
2 A. I'm not sure that our numbers match up.
3 MS. MYERS: I think our pages might be lined a little
4 differently. If you can just reference the question, he can
5 find the like.
6 Q. (By Mr. Arnold) The question is you refer to customer
7 service surveys which indicated dissatisfaction with storm water
8 service in the red area?
9 A. Yes.
10 Q. Those two surveys, all of the surveys refer to in
11 those two, you're willing to share those with us?
12 A. Yes, I don't see why not.
13 Q. Then we shall make a discovery request for those
14 surveys. Thank you the Commission.
15 MR. CHAIRMAN: Thank you, Mr. Arnold. Does any member
16 of the Commission have any questions for this witness? Hearing
17 none, Miss Myers, do you have any further questions?
18 MS. MYERS: I do not.
19 MR. CHAIRMAN: Miss Myers, are you ready to present
20 the next person?
21 MS. MYERS: Yes, the districts next witness is Tim
22 Snoke.
23 MR. CHAIRMAN: Mr. Snoke, is the testimony you're about
24 to give the truth, the whole truth, and nothing but the truth?
25 MR. SNOKE: Yes, it is.
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1 MR. CHAIRMAN: Does any member of the Rate Commission
2 have a question at the time? Mr. Burkhart, do you have any
3 questions on behalf of the Home Builders Association?
4 MR. BURKHART: I do not.
5 MR. CHAIRMAN: Mr. Neuschafer, any questions on behalf
6 of the Missouri Industrial Energy Consumers?
7 MR. NEUSCHAFER: Nope.
8 MR. CHAIRMAN: Mr. Arnold, on behalf of the Rate
9 Commission, do you have any questions?
10 MR. ARNOLD: Yes, sir, I do.
11 MR. CHAIRMAN: Very good.
12 TIM SNOKE, having been duly sworn, testified as
13 follows:
14 QUESTIONS BY MR. ARNOLD:
15 Q. (By Mr. Arnold) Good afternoon, sir?
16 A. Good afternoon.
17 Q. Question 7?
18 A. Okay.
19 Q. Now I've got to tell you, I'm no good at math, but I
20 want to walk through these numbers in your testimony, if I may,
21 you're going the use $288 million additional debt under the
22 current $945 --
23 A. Correct.
24 Q. -- authorization. Okay, and then up to $800 million
25 of additional debt under the $900 million authorization you're
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1 seeking in this proposal?
2 A. Correct.
3 Q. And $360 million in cash or PAYGO?
4 A. Yes.
5 Q. My math, tells me that 19.8 percent would come from
6 the prior authorization, 55.2 percent from this authorization,
7 and 24.8 percent would be PAYGO, help me out, because everyone
8 keeps saying that this proposal is 70 percent debt and 30
9 percent cash?
10 A. So 70/30 total amount of debt that is, you know, what
11 I think is, no, it's not, it's not missing in here. So the
12 70/30 number comes I think from table 4.8, on page 416 of the
13 rate change proposal, this is the capital improvement and
14 placement program financing, so some of the numbers come out of
15 that table, but the 360 PAYGO approximately billion dollars of
16 debt, from the, this would be $918 million of new senior revenue
17 bonds, $100 million of the State Revolving Fund, also includes
18 the premium I think when we combine all those is how we came to
19 the 70/30, approximately, and I think that it was a little bit
20 different presentation in my question, but I think the numbers.
21 Q. The district's proposal is 70 percent debt, 30
22 percent --
23 A. Approximately 70/30.
24 Q. Okay. And the 70 percent debt is going to consist of
25 what I'll call senior debt, that's the revenue bond issue, and
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1 subordinate debt, which is from the State Revolving Fund?
2 A. Correct.
3 Q. Now, the district is requesting an additional 900, or
4 will request from the --
5 A. Voters.
6 Q. Voters, an additional $900 million dollars in bond
7 authorizations. As you may have guessed from my questions to
8 your colleagues, that seems a little aggressive, because this
9 will be a spend rate well over what's been going on in the past.
10 Now, we all understand that if you don't issue the bonds, you
11 don't start paying for them, it doesn't cost the rate payers
12 anything, so that if you have something left over for which
13 you've not issued bonds, the rate payer is not penalized, but it
14 does appear that the rate of spending bond proceeds will be
15 dramatically increased?
16 A. Well, I think the amount of bonds that we're
17 requesting is based on the size of the program, so the increase
18 in the size of the program is what will drive, would be driving
19 the bond funding, I think those should go pretty well in line.
20 Q. Well, it seems to me there are two drivers, there is
21 one driver what you're requested, required to do under the
22 consent decree, and what you can actually perform,
23 Mr. Unverferth has talked about what you can actually perform,
24 and the other driver really is the market, I'm going to talk
25 about the market in a minute, if I may, but I'm handing you and
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1 Miss Myers, you've already got your copy, if you want to look at
2 the folder in which I gave you.
3 MS. MYERS: Okay.
4 Q. (By Mr. Arnold) Let's take MSD Exhibit 48 which
5 purports to be a rating on the 213 B bond issue?
6 A. Okay.
7 Q. For which the district received a triple A rating.
8 Now, I want to call your attention to page 4 outlook, and I'd
9 like for you to read that first paragraph into the record for
10 me?
11 A. Sure. The stable outlook reflects Standard and Poor's
12 expectation that MAS will adjust rates as necessary to maintain
13 strong debt service coverage as it issues additional debt, as
14 well as to generate at least good net revenues to support its
15 large capital program. The strength of the district's service
16 area provides additional rating stability, as does the
17 district's ability to adjust rates as needed. While not
18 expected during the current two-year outlook period, we could
19 lower the rating if the district is not able to maintain at
20 least it's good financial position, particularly as it begins to
21 address its' capital needs with additional debt. Beyond the
22 outlook period, any trend of deteriorating finances could
23 pressure the rating.
24 Q. Did they reduce the rating?
25 A. They did not.
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1 Q. Exhibit 49, which is the again, this was the 2013
2 obligations, again a stable outlook. I'd like to call your
3 attention to the bottom of the first page, the top of the second
4 page which I've marked, I've wondered if you could read that
5 into the record?
6 A. Challenges, debt levels expected to double over the
7 next two decades due to capital improvements needed to address
8 CSOs, SSOs and other regulatory requirements and infrastructure
9 needs. Recent declines in debt service coverage. The
10 substantial rate increases instituted to finance the $1.01
11 billion in approved capital requirements could impair voter
12 support of future needed borrowing requests.
13 Q. Exhibit 50, which is the Fitch rating for the November
14 15, bond issue that was double A rating, stable outlook. On the
15 first page, we've got the paragraph escalating debt, would you
16 read that into the record please?
17 A. Absolutely. Leverage ratios currently are moderately
18 high with debt per customer at approximately $2,200, debt will
19 likely more than double over the next five years based on Fitch
20 estimates as a result of additional borrowing needs to address
21 regulatory requirements. Furthermore, debt amortization is
22 below average with principal payout at 29% and 67% in 10 to 20
23 years, respectively.
24 Q. If you would please, rating sensitivity at the bottom
25 of the page, if you could read into the record the first couple
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1 of lines at the top of page two?
2 A. Sure. Reduced flexibility, increased debt, long-term
3 projections which forecast debt levels and/or financial margins
4 inconsistent with the AA+ rating median levels would likely
5 result in negative rating action.
6 Q. Your proposal in this rate change, question 15, you
7 indicate the senior debt coverage would be 2.8 times the 2.5
8 times from fiscal year '17 through fiscal year '20, and the
9 total debt 1.8 times to 1.9 times, that's table 410.
10 A. Right.
11 Q. Is it your opinion as secretary treasurer that those
12 ratings in the face of concerns which the debt rating agencies
13 have reflected will permit you to get a double A rating this
14 time?
15 A. There are no guarantees, but I believe that the
16 proposal as set forth does give us a legitimate chance of
17 maintaining our current ratings.
18 Q. But if those ratings fall below 2.4 times to 2.9
19 times, senior debt, 1.6 to 1.8?
20 A. If they fall below those ratings, it increases the
21 likelihood that is more expensive to fund the capital programs.
22 Q. When you say more expensive, what you really mean the
23 rating will change and what happens?
24 A. When the rating changes, the cost to acquire debt goes
25 up.
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1 Q. The interest rate?
2 A. The interest rate goes up.
3 Q. Now, having painted this gloomy picture, I want to put
4 to you the question whether or not bonds should be included in
5 the storm water rate change, in part to permit 70 and half
6 million dollars over the four year period to be used to cover
7 any increase in operation or maintenance of other expenses?
8 A. We did not consider bonds on the storm water program,
9 any borrowing that we wanted to do to fund the storm water
10 program would require obviously revenue to support the debt
11 service on the bonds. We did not evaluate at what level, what
12 would be required for that. I think in part because the storm
13 water program as proposed is not a large dollar amount that
14 we've had in the past, and the district has supported the
15 current program and it's current spending level, so if we were
16 to anticipate any increase or large increase in spending, we
17 didn't even consider bonds, in the proposal for storm water,
18 wasn't part of the analysis.
19 Q. You've got 70 and a half million from the 10 cents per
20 hundred, and you've got somewhere in the neighborhood of $15 to
21 $16 million from the MCI that is either on now or will be
22 available in 2015 and 2016, and your proposal is to spend those
23 funds on pay as you go, you did not consider what $85 million
24 over four years would pay for, plus another 15 years, in terms
25 of funding beyond that?
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1 A. We did not consider it as part of this proposal.
2 Q. I may have one more question, yes. Your testimony of
3 question 12 and the answer or the question is municipal debt
4 financing or major capital improvements a practical way of
5 obtaining funds, would you read your response into the record?
6 A. My response was yes, historically the use of bonds to
7 finance municipal capital improvements has been an equitable,
8 cost justified and widely-used method of funding available to
9 governments worldwide. Utilizing a combination of bonding and
10 PAYGO provides several benefits, versus a PAYGO only approach.
11 A combined approach allows projects to be built and put into
12 service more quickly and/or with less significant rate impact.
13 Users of the project receive the public benefit sooner and the
14 actual users of the project pay for it's use. In a PAYGO only
15 approach, current and prior constituents pay for the entire
16 project, but future constituents receive benefit. A combined
17 approach is also considered to be the prudent financial practice
18 by rating agencies and within the business and finance
19 communities.
20 MR. ARNOLD: Thank you, sir, I have no further
21 questions.
22 MR. CHAIRMAN: Thank you, Mr. Arnold. Members of the
23 Commission any questions, Mr. Tomazi.
24 MR. TOMAZI: I'm a little bit concerned about where
25 we're going to get pushed to on our maximum bonding level to
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1 support all of this, so I think it's required in the consent
2 decree, in the executive summary and it's a number that's been
3 thrown about, in the executive summary we are given on the rate
4 proposal, page 3, item 6, you have 3.2, says the bond asked to
5 authorize $900 million of additional wastewater revenue bonds,
6 okay.
7 MR. SNOKE: Okay.
8 MR. TOMAZI: As part of the other information there
9 that was given to us, but was not necessarily a part of direct
10 testimony, is your adopted budget as of June 12, 2014?
11 MR. SNOKE: Okay.
12 MR. TOMAZI: In that adopted budget on page 37, it
13 says issued revenue bonds and estimated debt capacity, and they
14 estimated the total debt capacity of district revenue bonds
15 issued through fiscal '15 and it says estimated remaining debt
16 capacity is $462 million. I recognize that there's probably
17 some bonds that have probably been paid off in the interim, but
18 that seems like a big difference in those two numbers, could you
19 give us a brief explanation?
20 MR. SNOKE: Yeah, I was not with the district when
21 that number but calculated, so I have not even seen that
22 analysis. My guess is that number may have been calculated
23 based on the current revenue level there, so with increased
24 revenue, that capacity increases.
25 MR. TOMAZI: Well, actually what it's based on is
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1 January 2010 census district population of 1.3 million and debt
2 capacity for MSDs co-financial advisers of $1,400 per person,
3 and that comes up 1.820. So if I recognize this all took place
4 before you were here, but I think perhaps we ought to get some
5 kind of an explanation, I would certainly like one, why there's
6 such a big difference between those, I would expect some things
7 that have been paid off, and others, but I would like to
8 understand that.
9 MR. SNOKE: There has definitely been some amount paid
10 off, I can't speak to that number since I didn't calculate it.
11 MR. TOMAZI: I understand it, that's all I have.
12 MR. CHAIRMAN: Mr. Stein?
13 MR. STEIN: Mr. Snoke, I want the talk about the storm
14 water capital financing again. Am I correct that up to this
15 point in time there has been a certain element of cost sharing
16 with municipalities and maybe other agencies for storm water
17 capital improvements.
18 MR. CHAIRMAN: I'm not sure what kind of cost sharing
19 there might have been, Brian or rich would probably be the best
20 one to answer that.
21 MR. STEIN: Okay. My question would be just what the
22 districts policy is with respect to cost sharing, currently, and
23 how that might change going forward, if the 10 cent tax levy
24 were to be enacted?
25 MR. SNOKE: I'm sorry, I don't have that.
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1 MR. STEIN: Thank you.
2 MR. CHAIRMAN: Any further questions?
3 MR. NEUSCHAFER: The Commission, sorry to interject.
4 If the Rate Commission is done, can I ask for a minute to ask
5 just a couple of questions that have come up, based on what has
6 been discussed to date, three or four questions.
7 MR. CHAIRMAN: Yeah, I think that's fine. We've asked
8 our questions, so come on up.
9 MR. NEUSCHAFER: Thank you.
10 Q. (By Mr. Neuschafer) Thank you for allowing a few
11 questions here.
12 What are the interest rates for your senior SRF bonds?
13 A. Projected or currently?
14 Q. Both.
15 A. They range because they depend on market conditions at
16 the time of issuance, actually, you know the coupon rate on the
17 senior bond currently ranges from average of low fours to high
18 fives. That's on the senior debt, on the subordinate debt, they
19 range from roughly one and a half to almost two percent, that's
20 just the coupon on those bonds. There are additional costs are
21 sometimes or premiums that would serve to lower the cost on the
22 projects, we're assuming five to five and a half percent coupon
23 rates on the senior bonds. If you look at the proposal, there
24 are premiums built in those true interest costs would be lower
25 than that. On the subordinated bonds, I believe it's two to two
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1 and a half percent coupon rate is what we're projecting, those
2 are subsidized by the state.
3 Q. Did the district consider hedging any or all of it's
4 future interest rate exposure through forward rate agreements or
5 under contracts?
6 A. We have not, hedging in the municipal world is not a
7 widely accepted practice.
8 Q. What is the amortization period for the senior SRF?
9 A. A senior bond is 30 years, and the SRF bond is 20
10 years.
11 Q. Were you in the room earlier when I asked
12 Mr. Unverferth about the use of viable assets?
13 A. Yes.
14 Q. It's 100 years for pipes, maybe 25 to 30 years for
15 facilities. So to the extent that senior bonds are amortized
16 for 30 years or, if it happens less, would you agree that it
17 would be fair and equitable to use funding that's in line with
18 the life of the assets?
19 A. Potentially, there's additional costs, I believe our
20 policy currently limit us to 30 years as well, proposal was
21 prepared with our policies as well.
22 MR. NEUSCHAFER: Thank you. Miss Myers, do you have
23 any questions?
24 MS. MYERS: I do not have any questions.
25 MR. CHAIRMAN: Thank you, I appreciate your time.
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1 MS. MYERS: The district will call our next witness,
2 Bethany Pugh.
3 MR. CHAIRMAN: Miss Pugh, is the testimony you're
4 about to give the truth, the whole truth and nothing but the
5 truth?
6 MS. PUGH: Yes, it is.
7 MR. CHAIRMAN: Any questions from the Rate Commission
8 to start? Mr. Burkhart, do you have any questions on behalf of
9 the home builders association?
10 MR. BURKHART: I do not.
11 MR. CHAIRMAN: Mr. Neuschafer?
12 MR. NEUSCHAFER: Yes, on behalf of Missouri Industrial
13 Consumers.
14 BETHANY PUGH, having been duly sworn, testified as
15 follows:
16 QUESTIONS BY MR. NEUSCHAFER:
17 Q. (By Mr. Neuschafer) Thank you, Miss Pugh, beginning
18 on page 4 line 21 of your testimony, through page 5 line 2, you
19 discuss assumed interest rates and yield spreads to be added on
20 to current market rates commensurate with an AA rated utility
21 revenue for future SRF borrowing; is that right?
22 A. Correct.
23 Q. And you state that the additional spread range from
24 0.4 percent in fiscal year '16 to 1.25 percent to fiscal year
25 '20, correct?
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1 A. Correct.
2 Q. Can you describe how those yield spreads were
3 developed as well as what the yield spreads were assumed to be
4 for fiscal year '17 through '19?
5 A. And so the current year spread, those projections for
6 example, for debt issued this year was based upon our target
7 scale written based upon current market conditions and yields
8 for comparable rated and or comparable type of security, in this
9 case sewer revenue type credits or utility revenue type credits,
10 and then just in terms of the additional spread add on for
11 future years, that was an attempt to mitigate some of the
12 interest rate, whereas obviously the further you go out in terms
13 of your projections, the more likelihood that rate rises to
14 where you were today, so that's the rationale for the increased
15 cushion for the later projected bond issuances.
16 Q. Did you -- do you have the numbers which you assume
17 the yield spreads to be for '17 through '19?
18 A. Right, so for each of these scales, we literally have
19 a different interest rate yield for each maturity, so we're
20 talking for each series of bonds, 30 then we just add a cushion,
21 I believe it's straight line, 40 basis points for example, in
22 the early years across the scale. So the average true interest
23 cost probably be better indicator to what you're trying to get
24 out of what that looked like, and I think Tim talked about that.
25 Q. Were the same yields and yield spread used for future
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1 senior revenue bond issuances?
2 A. I'm not sure I understand the question.
3 Q. So, the yields and yield spreads that we just went
4 through, were those same yields yield spreads used for future
5 senior issuances?
6 A. Well, yes, because we assume the same kind of double A
7 credit rating, so the yields themselves were the same, and then
8 we added cushions to mitigate interest rate risk, does that
9 answer your question?
10 Q. I think so.
11 A. Okay.
12 MR. NEUSCHAFER: That's all I have. Thank you.
13 MR. CHAIRMAN: Mr. Arnold, any questions for Miss
14 Pugh?
15 MR. ARNOLD: If I may, sir.
16 Q. (By Mr. Arnold) In your testimony just a few moments
17 ago you talked about yield spreads going forward, did you or the
18 district take into account any potential action by the federal
19 reserve board with respect to ratings?
20 A. Well, that's the rationale for the cushion, so for
21 example, as referenced in response to what the gentleman was
22 just asking me about earlier years we assume 40 basis points.
23 Q. Forty basis points.
24 A. Right, and increments increasing to 125 basis points.
25 Q. I spoke with Mr. Snoke about the 3 ratings which the
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1 district received for the 2013 obligations, I think you
2 indicated that you started working with the district in 2012?
3 A. Myself personally, but PFM has worked for the district
4 for --
5 Q. Since you were a little girl, I'm sorry.
6 A. That's one way to say it, yes.
7 Q. Were you involved in the 2013 --
8 A. Yes, I was.
9 Q. And it's my understanding that Fitch downgraded the
10 district on account of the consent decree?
11 A. I think it was in 2011, if I'm not mistaken.
12 Q. All right. Now in addition to the ratings, of the
13 credit rating agencies provide guidelines for score cards as
14 someone would call them, and I'm going to hand you what purports
15 to be a Moodys Investor Service Rating methodology dated in
16 December of 2014, we at 89? Rate Commission 89? Yes. A lot of
17 paper, I would like to refer you to, I'll skip through this as
18 quickly as I can, there's a factor called system
19 characteristics, there's a factor called financial strength,
20 there's a factor called management, legal provisions, and we get
21 all the way back to appendix A I can't -- page 21, it's in the
22 left hand appendix A is municipal utility revenue bonds score
23 board, and they have a column for triple A, double A, A, triple
24 B, double B, B?
25 A. Correct.
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1 Q. It's my understanding that the district is seeking a
2 double A rating?
3 A. Maintenance of their current ratings, which two of the
4 three are double A.
5 Q. So if you would look at the double A column, going
6 through all these categories, we would expect that the
7 instruments which would create this obligation satisfy these
8 requirements?
9 A. Correct, but I do want to say that ratings are a mix
10 of quantitative and quality assessments, but these financial
11 plans and the revenue requirements were incorporated into the
12 proposal.
13 Q. But generally if you were within these guidelines, a
14 credit agency will give you a double A rating?
15 A. Generally, yes.
16 Q. Generally.
17 A. But they will take into account specific
18 consideration, so there's no guarantees, but generally, yes.
19 Q. Then I hand you what I will mark as Rate Commission
20 90, which is the Fitch Water and Sewer Medians, go through the
21 whole enterprise again, they become a bit more complicated, on
22 page 10, they identify the district as a double A with stable?
23 A. Correct.
24 Q. And then we get to the medians relative to rating
25 category, it's appendix F, which is page 15, same question, for
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1 the double A rating, the district would need to be within the
2 guidelines denominated in that column?
3 A. As a general.
4 Q. Right. Now, I've explained my difficulty with math,
5 on question 11, you were talking about a minimum of 550 days
6 cash on hand, and we have references to 45 days and 65 days in
7 other testimony, that's all part of the 550?
8 A. Correct.
9 Q. Okay. I believe the first revenue obligation issued
10 by the time the Rate Commission arrived was in April of 2004,
11 that, in any event, is the date of the master ordinance, all
12 right, since that time, the district has issued 14 supplemental
13 ordinances, not all new issues, some of them are funds, some of
14 them are mixed, but we get to in the rate change proposal, page
15 418, 4.4 and this is a chart of upstanding and projected debt
16 principal from 2015, through 2020, the last year of the current
17 rate change proposal, and the material in blue identifies the
18 existing indebtedness, the material in red, and these are all
19 columns, proposed indebtedness, and then there's this black line
20 which is the purported amortization of future revenue bond
21 issues determined by your firm, based on current market
22 conditions and certain assumptions, what does the black line
23 mean?
24 A. Well, on this graft the black line is based upon an
25 assumed authorization to do requested levels, if I'm answering
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1 your question correctly.
2 Q. I'm sorry, try it again, in addition to everything
3 else.
4 A. No worries. So, in the context of this graph, the
5 black line represents available bond authorizations, so in the
6 context of the requested increase in the authorization, assuming
7 that takes place in fiscal '17, this is the basis to which that
8 authorization will be utilized, given the current or proposed
9 debt issued in the schedule.
10 Q. Are you suggesting that this is a limitation on bond
11 authorization?
12 A. No, I think this is just attempting to reflect how
13 quickly the authorization if approved would be utilized. I'm
14 not sure I'm understanding your question.
15 Q. You answered my question.
16 A. Okay.
17 Q. So, and finally, the district did not ask your firm to
18 consider any debt amortization for the storm water funding?
19 A. Correct.
20 MR. ARNOLD: Thank you Miss Pugh.
21 MS. PUGH: Thank you.
22 MR. CHAIRMAN: Any questions from the Rate
23 Commissioners of this witness? Thank you, Miss Pugh.
24 MS. PUGH: Thank you.
25 MR. CHAIRMAN: Ms. Myers?
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1 MS. MYERS: No, I don't have any.
2 MR. CHAIRMAN: Very good, Ms. Myers?
3 MS. MYERS: The district would now like to call
4 Theresa Bellville.
5 MR. CHAIRMAN: Miss Bellville, is the testimony you're
6 about to give the truth, the whole truth and nothing but the
7 truth?
8 MS. Bellville: Yes, it is.
9 MR. CHAIRMAN: Any questions for the Rate Commission
10 at this time of Miss Bellville? Mr. Burkhart, do you have any
11 questions on behalf of the Home Builders Association?
12 MR. BURKHART: We do not.
13 MR. CHAIRMAN: Mr. Neuschafer, on behalf of Missouri
14 Industrial Energy Consumers?
15 MR. NEUSCHAFER: Yeah, just a few.
16 THERESA BELLVILLE, having been duly sworn, testified
17 as follows:
18 QUESTIONS BY MR. NEUSCHAFER:
19 Q. (By Mr. Neuschafer) Thank you, Miss Bellville for
20 your time. We understand from testimony today that during the
21 last rate case, MSD built in more projected capital expenditure
22 than it actually spent, is that your understanding? Was under
23 budget, in other words?
24 A. Yes.
25 Q. So, what is MSD's current cash position?
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1 A. I don't know that.
2 Q. Do you know about the projections for the end of
3 fiscal year '16 cash positions expected?
4 A. Our ending fund balance for FY '16 budget is
5 approximately $260 million.
6 Q. And can that be used to impact or I guess reduce the
7 impact of the rates that are being proposed?
8 A. Those balances were part of the rate proposal, and the
9 rate model.
10 Q. So looking forward, if the projections for the capital
11 projections expenditure are planned that we're discussing are
12 greater than the actual spend, in other words, if MSD comes in
13 under budget for the fiscal years '17 through '20, what happens
14 with that, with that amount MSD is under budget, what happens
15 with that?
16 A. It remains in a fund balance for future expenditures.
17 Q. We understand from the testimony earlier that some
18 portion of the savings, approximately 6 percent savings was used
19 for regulatory needs and the rest was used to accelerate
20 projects, am I correct there?
21 A. Yes.
22 Q. Are those the same types of projects to which future
23 savings would be applied, regulatory needs or accelerating
24 consent decree required projects?
25 A. If there's available cash then, Rich Unverferth the
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1 director, based on his projected needs, would then get his needs
2 and move them projects up or back. They provide us a budget
3 based on the available revenue.
4 Q. Is there anything requiring MSD to use a savings to
5 accelerate consent decree protects or on other consent decree
6 projects, or could those savings be used for any other project
7 MSD wishes?
8 A. Certain funds are restricted depending on where the
9 fund balance is, if it's within the waste water capital, than it
10 has to be spent on capital projects, I think that's the answer
11 to your question.
12 MR. NEUSCHAFER: That's all I got, thank you.
13 MR. CHAIRMAN: Mr. Arnold?
14 Q. (By Mr. Arnold) Thank you, the Commission. We've
15 done this before, haven't we?
16 A. No.
17 Q. We haven't? Do you know why I'm here?
18 A. Yes.
19 Q. In your testimony question 10, you refer to inflation
20 allowances?
21 A. Yes.
22 Q. And the page next to we'll call it 7.1, there's a
23 sheet that looks like this, inflation?
24 A. Yes.
25 Q. And if I could shorthand that and stop me if I'm
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1 misrepresenting anything, the district communicated with vice
2 president of federal reserve who in general suggested a two
3 percent inflation rate for goods and services, and referred to
4 the federal reserve bank, social security, and congressional
5 budget office sources, and the district chose to use the budget
6 and economic outlook 2014 to 2024 published by the CBA?
7 A. Correct.
8 Q. Is that correct?
9 A. Yes, that is correct.
10 Q. Did that information have a schedule related to the
11 St. Louis metropolitan area or did you simply -- I'm trying to
12 figure out what you used?
13 A. It had a schedule that was in the our -- not just
14 necessarily St. Louis, but in our area.
15 Q. Right, and sometimes defined differently, statistic
16 metropolitan area or urban zone, but is it fair to say that they
17 use that schedule as opposed to all urban consumers?
18 A. Correct.
19 MR. ARNOLD: 91?
20 MS. MYERS: Yes.
21 Q. (By Mr. Arnold) I've marked for identification
22 Exhibits 91A, B, C, D, E and F which are inflation reports from
23 the bureau of labor standards, which frankly are very close to
24 those which you described, so I'm not going to ask you any
25 questions on that.
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1 The next, however, I do have a question or two, the
2 assessed property valuation which would be the basis on which
3 the spill water levy was assessed, you have assumed in question
4 25 will increase by point 5 percent each year; is that correct?
5 A. Yes, that is correct.
6 Q. And you've done that for the years within the study
7 period, or for 2015, 2016, and the study period, I believe your
8 testimony is study period?
9 A. Study period.
10 Q. I'm introducing as Rate Commission Exhibit 92, a
11 business record affidavit of the St. Louis County collector of
12 revenue, and this one I do have a question or two about, ask you
13 to turn to the first page, and Miss Myers, I acknowledge that
14 this is one of 8 pages, and I'm only going to use the beginning,
15 if you want the rest of it, I will by happy to provide it, but
16 these three pages are the summaries of those other schedules.
17 Miss Bellville, could you please look at the grand
18 total column on the first page, and this is the assessment goal
19 for December 31, 2012, county general, which is the second
20 number, and that number is $22 billion, 573 thousand, 369, 879
21 dollars?
22 A. Yes.
23 Q. Now turn the page, tell me for county general whether
24 the number is the same, higher or lower?
25 A. It is lower.
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1 Q. All right. And that's the assessment role for
2 December 31, 2013, $21,906,804,629, all right. Now let's turn
3 the page and get to 2014, county general, the number is higher
4 than 2013, but lower than 2012; is that correct?
5 A. Yes, that is correct.
6 Q. So at least for these three years, year on year, going
7 from '12 to '13, '12 to '14, the assessments did not increase by
8 half a point?
9 A. That is correct.
10 Q. I'm going to offer you Rate Commission Exhibit 93,
11 which is the same record from the office of the assessor of the
12 City of St. Louis, and that summary is contained in one page,
13 the page following the, after the affidavit, and if you look at
14 total taxable real property, 2012 was $3,403,588,629 and 2013 is
15 lower $3,223,496,948, again in '14 made some progress but didn't
16 get back to 2012?
17 A. That's correct.
18 Q. So for the City of St. Louis, and County of St. Louis,
19 during this period, the inflation rate did not increase half a
20 point, from 2012, to 2013 or from 2013 to 2014?
21 A. That is correct.
22 Q. Now, not all of St. Louis County is in the district?
23 A. That is correct.
24 Q. So to the extent that there are some outlying areas
25 that could affect the county figure, I'm sorry, let me back up,
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1 the assessed rate of property in the county, may not be affected
2 as correctly, for the district as it is in this report, because
3 the property is not within the district?
4 A. That is correct.
5 Q. Your testimony question 30, which I have a page 8,
6 lines 21 and 23, it's the impact on customers?
7 A. Yes.
8 Q. Okay. Miss Bellville, you have described in your
9 response beginning at the bottom or beginning of your answer,
10 through your answer, the increases from the rates over the years
11 residential and nonresidential, and you say those are annual
12 increases, does the rate increase annually have to be paid every
13 month?
14 A. This is in reference to storm water, so taxes are paid
15 annually.
16 Q. So that the only increase for residents in your first
17 example is $3.60 annually?
18 A. That is correct.
19 Q. And then I want to try to deal with a question that we
20 got just a few moments ago, the district has debt amortization
21 obligation year by year by year, does the district have a
22 schedule of that debt amortization requirement for years beyond
23 2014, I'm sorry, between now and 2014?
24 A. We have debt amortization for all our bonds.
25 Q. Year by year?
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1 A. Yes.
2 Q. And go through 2014, and beyond?
3 A. I believe so, I think I would defer that to Tim Snook.
4 Q. You know what I'm going to ask you all for the
5 schedule, and not drag Mr. Snook back up to the table.
6 Now, the annual increases for residential go from
7 $3.60, some are $3.60, some are $19.75, and some were $50.08,
8 and those are annual expenditure?
9 A. Correct, but for the $19.75 that's actually an annual
10 fee.
11 Q. Thank you. So, has the district considered the impact
12 of this tax on low income property owners?
13 A. Yes, we did.
14 Q. And to what result?
15 A. It's in the page ES10 in the executive summary in the
16 rate change proposal, ES11, each category has an impact on the
17 low income customer.
18 MR. ARNOLD: Thank you, the Commission, I have no
19 further questions.
20 MR. CHAIRMAN: Thank you, Mr. Arnold. Questions from
21 members of the Commission? Miss Myers, do you have any
22 questions?
23 MS. MYERS: I do not.
24 MR. CHAIRMAN: Miss Bellville, thank you very much.
25 MS. MYERS: The district calls our last witness, Bill
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1 Stannard.
2 MR. CHAIRMAN: Mr. Stannard, is the testimony you're
3 about to give the truth, the whole truth and nothing but the
4 truth?
5 MR. STANNARD: It is.
6 MR. CHAIRMAN: Any questions from the Rate Commission?
7 Mr. Burkhart, do you have any questions on behalf of Home
8 Builders Association of Mr. Stannard?
9 MR. BURKHART: I do not.
10 MR. CHAIRMAN: Mr. Neuschafer?
11 MR. NEUSCHAFER: Yes.
12 WILLIAM STANNARD, having been duly sworn, testified as
13 follows:
14 QUESTIONS BY MR. NEUSCHAFER:
15 Q. (By Mr. Neuschafer) Thank you, Mr. Stannard. Page 6
16 of your testimony, you state that the proposed wastewater
17 revenue increase is about 10.75 percent annually from fiscal
18 years '18 and '20, in reviewing different rate options for MSD
19 did you explore other rate change scenarios?
20 A. No, we really focused on really two components, one is
21 the level of revenue that's needed on an annual basis relative
22 to the forecasted operation maintenance expense as well as the
23 capital financing plan for the CIRP that set forth the level of
24 annual revenues that we need to adjust and then the rate
25 schedule itself and the rate impacts we really focused on the
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1 same similar cost service methodology that had been accrued by
2 this Rate Commission in prior cases, and maintained that same
3 and similar methodology with some adjustments for some of the
4 assumptions and relative to the components of the units of
5 service, for the unmetered customers as well as the low inflow
6 in the system.
7 Q. So you didn't consider things like revenue increase
8 less than 0.75 percent or lower capital expenditure program,
9 period, or different projections, different levels of PAYGO
10 revenues, anything like that?
11 A. It's the entire financial planning process for the
12 rate change proposal was a collaborative approach with the staff
13 of MSD and other consultants, including PFM regarding the
14 capital financing component, but how we would finance those
15 capital improvements, so once the CRP was established and
16 determined this is the expenditure that will be necessary for
17 the district to undertake, then we examine the operating and
18 maintenance expenses and information with regard to again,
19 assumptions based on inflationary impact, on future expenses
20 during this period, we roll those things together and did not
21 adjust then assuming the lower levels of expenditure or CIRP
22 pushing out projects or accelerated projects.
23 Q. Okay. On page 7 of your testimony, you state that
24 wastewater sales during the forecast period were based on
25 projections made by the Vertex group?
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1 A. That's correct.
2 Q. And that you use their analysis to project the number
3 of customers and contribute volume over the years '17 through
4 '20?
5 A. Yes, we relied on the work that they had done to
6 examine changes and impacts of the local economy and how that
7 would affect changes in the number of customers, not just what
8 has it been over the last five years, following that same trend
9 line, but reflecting their analysis in the annual adjustments.
10 Q. Okay. One kind of a procedural question, you
11 reference in question 20 appendices 8.1.2 and 8.1.3 of the rate
12 change proposal, I believe those appendices and the actual rate
13 change proposal are 7.1.2 and 7.1.3, I've got them here, if you
14 can verify this is 7.1.2 right there, verify that those are the
15 two analysis that you referencing?
16 A. Yes, that is correct, that's incorrect.
17 Q. I just want to make sure we're talking about the same
18 thing.
19 A. Yes.
20 Q. Are these complete copies of the analysis that you
21 considered or of the Vertex analysis?
22 A. Yes, this is the result of the analysis that they
23 provided for us, that we analyzed in our -- in the creation of
24 the model.
25 Q. So these are your summaries?
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1 A. No, this is theirs.
2 Q. This is the Vertex analysis?
3 A. Yes.
4 Q. Was there more to these analysis, 7.1.2 and 7.1.3 than
5 what's provided here?
6 A. I'm not sure I can answer that, I'd have to confirm, I
7 wouldn't -- it's possible that there are underlying pieces of
8 information they -- they utilized, that go behind and feed into
9 these summaries, that I've not seen.
10 Q. Like supporting data?
11 A. Supporting documents, but we have to confirm that.
12 Q. Okay. We will request that, we can go through the
13 formal channels to do that.
14 On page 8 of your testimony, lines 12 through 15, your
15 state your past experience with the district and your experience
16 with other urban utilities throughout the United States and
17 general trends in wastewater flows throughout the United States,
18 based on that, you believe that MSD's forecast, those forecasts
19 are reasonable; is that correct?
20 A. The forecast and revenues appear reasonable to me
21 based on the trends that I've seen and experienced with other
22 clients throughout the United States.
23 Q. Can you identify your experience with other urban
24 utilities throughout the United States that you rely on to
25 support these conclusions?
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1 A. Philadelphia, Baltimore, Northeast Ohio Regional Sewer
2 District, the Denver Water, then a number of utilities out in
3 west, San Diego and some other of the districts that provide in
4 the district in southern California water and sewer districts.
5 Q. And is this based on your past provision of consulting
6 services, or what exactly is your connection to these urban
7 areas and their analysis?
8 A. Those particular urban areas are current clients of my
9 firm. In addition to that, we also perform a national water and
10 waste water rate survey in collaboration with the American Water
11 Works Association, and that is published every two years, and
12 that has about 300 some-odd participants throughout the United
13 States in various sizes of utilities, both water and wastewater,
14 and examining the information from that showing the declining
15 per capita water consumption that we experience nationwide in
16 the over the last 15 to 20 years, the changes that were
17 reflected in this analysis were consistent with the same kinds
18 of trends that we're seeing in other places.
19 Q. Do you have the national survey that you just
20 referenced, did you include that in any part of your record or
21 your testimony?
22 A. No, I didn't, and actually, the 2014 survey was just
23 published last couple weeks, it is available now.
24 Q. Okay. Page 9 of your testimony you outline some
25 escalator for inflation rates, various cost category?
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1 A. Yes, sir.
2 Q. And I'll show you your appendix 7.1.1, which is key
3 proposal assumptions related to inflation, have you seen that
4 before?
5 A. I've seen this document.
6 Q. So is the support for each of the line item expense
7 categories that you mentioned, is that included in this
8 analysis, or did you rely on additional information?
9 A. I'd say this process in this rate change proposal is
10 more collaborative with the district staffer than prior rate
11 change proposal there that have been sought by the district, in
12 this case the district staff took on the responsibility for
13 examining and gathering information with regard to potential
14 assumptions for inflation, and provided us that, the results of
15 that analysis, which was included in this appendix, and this is
16 the numbers that were provided as input into the model.
17 Q. So are you aware then that if the district staff
18 considered those escalators when they prepared this appendix
19 7.1.1?
20 A. That's my understanding.
21 Q. You discuss the class cost of service study which was
22 relied on to produce the district produced changes and rates?
23 A. Yes.
24 Q. Can you explain the cost rationale for changes and
25 extra strength surcharges as proposed in the filing?
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1 A. The cost that the district incurs for treatment of all
2 waste in terms of normal domestic waste, as well as high string
3 surcharges, those treatment plan costs were allocated to various
4 components, volume, capacity and then strength components of
5 biochemical oxygen demand and suspended solvents or total
6 suspended solvents, and based on the criteria and the results of
7 the changes in their cost structure, based on recent data, or to
8 the functionalization of the cost and how their costs are
9 incurred at the wastewater treatment plant, that impacted the
10 allocation of cost and then the units of service was based on
11 the total balance of pollutants that they are treating at the
12 treatment plant.
13 One change that we made in this rate change proposal
14 going forward was that in the past, the test year was the base
15 year for the rates, in the cost of service study, and then the
16 projected annual changes and revenue needed for the entire
17 system was applied across the board to the various components of
18 the rates, so in our case, about ten percent adjustment for the
19 surcharge element we determine that principal components of the
20 cost for surcharge, high string surcharge was operation
21 maintenance expenses with some capital components, those capital
22 costs with treatment plan capital costs that we don't have
23 substantial investments we need treatment plans at this point,
24 so we you reduce those annual changes on surcharges probably 3
25 percent per year after the test year.
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1 Q. So we talked a lot about treatment costs?
2 A. Yes.
3 Q. And so to be clear, the surcharge relates to changes
4 in treatment cost, not the collection cost?
5 A. That is correct, the surcharges are the costs incurred
6 by the district for removing the pollutants that are in the
7 wastewater discharge by domestic strength customers as well as
8 not residential and nonresidential customers, and high string
9 surcharge is applied to more significant dischargers industrial
10 dischargers, where it's prudent to sample and analyze the
11 strength of the waste that they're discharging.
12 Q. Okay. You also projected MSD storm water cost of
13 service, proposed rate changes; is that right?
14 A. That's correct.
15 Q. Are there any common costs between MSD wastewater and
16 storm water cost of service?
17 A. There are, when we talk about the cost of the district
18 operation, part of the process is to split those costs between
19 wastewater and storm water. Some administrative, engineering
20 general functions that are potentially provide service to both
21 wastewater and storm water, and there's within the operation
22 maintenance activities, there are -- an allocation has to be
23 made to distribute those costs between wastewater and storm
24 water.
25 Q. And so how are those costs distributed, how are they
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1 allocated?
2 A. Again, that's customers rely on district staff and are
3 provided detailed information with regard to the
4 functionalization of those costs and the split between
5 wastewater activities and storm water, but then on the
6 administrative and general portion, that is more of a higher
7 level adjustment, based on relative costs, then allocated
8 between the two, and overhead costs, in a sense.
9 Q. Okay. You're proposing to produce property tax rates
10 to boost revenues that pass through MSD through taxing
11 authorities?
12 A. The district would be -- it's a district tax, so, I
13 think I'm not exactly sure how that's reflected and recovered by
14 the taxing authority, but it is tax that would be the tax
15 proposed by the district of the placed on those tax bills, and
16 that they would, the taxing authority recover that money and be
17 transferred to the district.
18 Q. So are there customers that receive storm water
19 service but don't pay municipal property taxes?
20 A. There are.
21 Q. And so how does MSD attempt to cure the revenue
22 shortfall from those customers that receive services but don't
23 pay taxes?
24 A. When you think about the tax exempt property,
25 governmental entities, governmental properties, as well as tax
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1 exempt properties, churches, school, universities, they do not
2 pay tax, they do not -- they would not pay for those storm water
3 services, so under the taxing process, the standpoint of there's
4 not -- reflected in the determination of how much money we will
5 have available to provide operation and maintenance, regulatory
6 support, for the storm water activities, and that reflects the
7 taxing value of the property that would be taxed. So that --
8 not that we start off saying here's how much money we need,
9 here's how big the pie has to be, but here's a certain percent
10 that wouldn't pay at all, start off with how much can we collect
11 from this tax and is that adequate to fund these activities
12 during the rate period.
13 MR. NEUSCHAFER: Okay. That's everything for me,
14 thank you.
15 MR. CHAIRMAN: Mr. Arnold?
16 Q. (By Mr. Arnold) How are you this afternoon?
17 A. I'm well, thank you.
18 Q. The last three times we've done this, you've been at
19 my side, and now you're at Ms. Myers side. Why'd you go to the
20 dark side? Withdrawn.
21 MS. MYERS: That's on the record.
22 A. Remember we're all on the same side.
23 Q. (By Mr. Arnold) I understand, we're taking two sides
24 of the same side.
25 A. That's correct.
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1 Q. Mr. Stannard, question 17, do you believe the rate
2 change proposal meets these criteria, and you responded, yes,
3 well, the criteria start with question 11 on page 4, and that's
4 the first of the criteria consistent with constitutional
5 statutory common law, you say in the past legal counsel has
6 advised you not receive any specific legal advice with respect
7 to this proposal?
8 A. Only discussions with Miss Myers as part of the rate
9 change proposal and presentations at the meetings, and then in
10 my prior role by your side, we had also discussed the criteria
11 that were established in the charter, which included this
12 criteria as well, I guess includes you as legal counsel.
13 Q. Question 12, the ability to provide adequate sewer and
14 drainage systems and facilities, and your response, you do this
15 by examining the districts submittal as well as the testimony
16 filed in support of the rate change proposal, the rate
17 commissions rate consultant testimony, and advice as well as the
18 testimony provided by the interveners, most of that hasn't
19 happened yet?
20 A. And that is correct, as far as the process, we'll
21 start with the direct testimony and the rate change proposal
22 that we have submitted, the district has submitted, our review
23 of the CRP and operating budget, and the operations of the
24 district, but then the next steps we'll have some other
25 perspectives provided by the rate consultant and Rate Commission
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1 as well as interveners consultants.
2 Q. So if I ask you about questions 13, 14 and 15 I'd get
3 the same response, some of that hasn't happened yet?
4 A. I expect it to.
5 Q. Question 25, is the projection of expenses over the
6 period of rate change proposal, and we also had trouble finding
7 8.1.1, we -- we did find 7.1.1, I wanted to deal specifically
8 with two items one the general inflation rate and pension rate,
9 I believe you testified you received the information on which
10 you based this response from the district?
11 A. That is correct.
12 Q. So do you know whether -- what the rationale is for no
13 inflationary increase in the pension fund?
14 A. My recollection of our discussion about this is based
15 on their assessment of where their pension fund is, and what
16 contributions would be required in 2016, that if I'm not
17 expecting additional contributions to be necessary in the future
18 years, but.
19 Q. So they were anticipating that a combination of
20 current contributions and market activity would cover their
21 future expenses?
22 A. I did not get into that detail with them, they would
23 be able to answer that question.
24 Q. All right. Now, I thought I understood Mr. Hoelscher,
25 I got back to my desk and I don't, I want to talk about tax
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1 recovery. If the district submits a proposal to the voters in
2 2016, which is I understand the proposal, that can be voted on
3 and Ms. Myers, stop my if I'm incorrect, that can be voted on in
4 February, April, June, August, or November, those are the only
5 election days in Missouri, they can't do April, and they can't
6 do February, I don't know whether they can do June but they can
7 clearly do August or November. Now, it's my understanding that
8 the district proposes that the tax revenues be collected by the
9 respective assessors and collectors in the city and County of
10 St. Louis, is that your understanding?
11 A. That's my understanding.
12 Q. Those tax rates are set as of January 1, so that in
13 2016, the district will not have voted on, I'm sorry, the voters
14 will not have considered the proposed tax increase by the time
15 the assessor sets the books, or by the March or
16 April reassessment process, so that the levy could not be
17 collected until January 1 of 2017, I'm sorry would not be due
18 until January 1, 2017?
19 A. Which is at midpoint of the fiscal year ending
20 June 30, 2017.
21 Q. Okay.
22 A. So that would be the first payments would be, those
23 payments would be due at that point, during fiscal '17.
24 Q. Okay. So that the proposal which we have on fiscal
25 '17, assumes the collection of -- can't assume the collection of
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1 January 1, because they're not due until December 31, how have I
2 fallen off the track here?
3 A. May need to draw a flowchart, I'm not sure, we need to
4 look at that some more.
5 Q. I will pursue that a little further.
6 A. You're correct, payment due in December of 2017 would
7 be reflected in 2018, fiscal 2018, operations of the district.
8 Q. I think that's where we are, all right. And then
9 we're talking about tax recovery of the reserve for storm water
10 was 240 days, you said?
11 A. Yes.
12 Q. And that's because you don't expect people to pay
13 their taxes on time?
14 A. Well, and the timing they pay you know, twice per year
15 and the -- we start, it's not July 1, so we need to have some
16 reserve, so that we can get the end of the year, have some money
17 until the next tax payments are received.
18 Q. So the 240 is determined only by the collection of the
19 tax revenues?
20 A. Correct.
21 Q. And that's storm water, on wastewater, Miss Pugh
22 indicated that it was her judgment or her understanding that the
23 550 day minimum reserve level included both the 60 days, 45
24 days, to which reference was made by other witnesses?
25 A. Yes, and includes the working capital reserves.
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1 Q. I'm sorry, that's right, both working capital. Thank
2 you.
3 A. And then there's also a capital reserved, capital
4 expenditure too, to get us from year one.
5 Q. So the 60 days actual operating, and 45 is going from
6 the bond?
7 A. Yes.
8 Q. And they are overlapping, all right. Question 30,
9 wastewater financial plan, about halfway through, you've got it
10 on page 11 at line 14, based on this?
11 A. Yes.
12 Q. And the desire to provide a smooth method program or
13 rate increases over the Range Change Proposal period, it was
14 determined that an annual average revenue increase of
15 approximately 10 percent would be necessary to meet the
16 forecasted revenue requirements, we're talking about waste
17 water?
18 A. Yes.
19 Q. Okay. I ask you to take a look at Exhibit MSD 50
20 which is the Fitch rating, and I've highlighted, reduced
21 affordability, second to last page, and I wonder if you'd read
22 that into the record, that paragraph?
23 A. Reduced affordability, to support the additional
24 planned debt, the board approved annual rate increases averaging
25 9.8 percent for fiscals 2013 through 2016. The current average
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1 monthly wastewater bill of $31 after implementation of the
2 fiscal 2013 adjustment is considered affordable at 0.7 percent
3 of median household income, but the planned rate hikes will
4 reduce overall affordability.
5 Q. What will 10 percent do to MHI, median household
6 income?
7 A. Probably won't impact the median household income,
8 because that's depending upon income.
9 Q. I'm sorry, the rate upon?
10 A. Yes, median household income stays flat, then
11 the wastewater bill, monthly wastewater bill as percentage of
12 median household income will become a higher percentage.
13 Q. Right, do districts discuss it at all with you the use
14 of revenue bond funding for storm water capital?
15 A. We were looking at the storm water funding, we
16 discussed generally what was needed with regard to capital
17 improvements and at this point, during this rate period, that
18 didn't appear that that was an option that we wanted to examine,
19 so it was put to the side, so it was a very brief discussion.
20 Q. Did the district discuss with you at any time in
21 preparation for the rate change proposal, steps that might be
22 taken in the event that 10 cents per hundred and the two cents
23 were insufficient to meet the revenue requirements?
24 A. No.
25 MR. ARNOLD: May I have just a moment?
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1 MR. CHAIRMAN: Uh-huh.
2 MR. ARNOLD: Thank you the Commission, thank you
3 Mr. Stannard.
4 MR. STANNARD: You're welcome.
5 MR. CHAIRMAN: Members of the Commission, any
6 questions for Mr. Stannard.
7 MR. SCHNEIDER: I have one, Mr. Stannard, I'd like to
8 go back to question number 29, you mentioned the question
9 regarding the amount of reserve target, the whole 60 days for
10 the annual operating expenses, you said the bond covenant
11 required the district to maintain a minimum balance of 45 days
12 expense. In your experience working with other districts, is it
13 typical to maintain a balance over an existing bond covenant to
14 this degree?
15 MR. STANNARD: Yes, it is, and actually, many
16 utilities are trying to achieve a higher level of reserve funds
17 to mitigate their risk that they have, a little bit on
18 wastewater, a big chunk of our revenue in most wastewater
19 systems is dependent upon the volume of water consumed by
20 customers, so that can vary by a little bit. For the district,
21 we don't need quite as much because we have all the residential
22 customers within the system are flat, you pay a flat rate, that
23 doesn't vary in ranges in water consumption, so that helps
24 mitigate that risk. But the 60 days is not an unusually high
25 level of reserves, in fact, in any clients that do 90 or more
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1 days of -- of rating reserve, because of some of that
2 variability in the revenue stream.
3 MR. SCHNEIDER: Thank you.
4 MR. CHAIRMAN: Mr. Brockman.
5 MR. BROCKMAN: Yes, Mr. Stannard, can you provide me
6 again with what are the different impervious property taxes,
7 general revenue and what other methods are there?
8 MR. STANNARD: Yeah, when you think about ways storm
9 water years ago, before it became much more of a regulatory, an
10 environmental regulatory drive by the Environmental Protection
11 Agency, Clean Water Acts, most storm water system were part of
12 street departments of cities, and counties, so just because
13 they -- as there were street improvements made, they would take
14 care of storm drainage issues.
15 So in those instances, there's still a large
16 percentage of communities around the county that still by the
17 majority still use the general fund of the community to fund
18 storm water activities. The trend has been though with the need
19 to put more emphasis on both quantity of storm water runoff and
20 the quality of that run off, the impact on the environment to
21 move it to more of a utility type operation. So, how do we
22 recover those costs, and in the Black and Veatch survey which
23 provides a lot of information with regards to property based
24 rate structures. When I say impervious area is one of those
25 property based structures, looking at each parcel of property in
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1 it's system, and then examining how we should recover, how do we
2 recognize responsibility or benefit received, because of the
3 storm water system, so in some cases, they will use impervious
4 area, some cases they will take impervious area and put it on an
5 equivalent residential unit basis, so medial residential single
6 familiar residential would be a factor of one and then all
7 nonresidential parcels would be some multiple of one based on
8 their total area.
9 Another factor that sometimes is used is intensity of
10 development, which is the more than individual partial
11 information, something looking at the zoning of an area, so it's
12 an area that's zoned commercial, then that would have an
13 intention development factor, different than residential, or if
14 it was industrial, have a third intention for that component.
15 That basis is losing favor as we have better data available now
16 for things like determining impervious area.
17 There are still systems that use property taxes, New
18 Orleans sewage and water board funds their drainage operations
19 through an ad valorem tax, somewhat similar to MSD. They have
20 the state authority to assess taxes, and just approved a tax
21 rate increase, but you didn't have to take it to the voters,
22 board of trustees for New Orleans Sewage and Water Board could
23 determine that.
24 MR. BROCKMAN: So this is trend now days to go toward
25 impervious or property taxes?
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1 MR. STANNARD: The trend across the country is to move
2 towards using impervious area or partial based data.
3 MR. BROCKMAN: When people use impervious, do they
4 have independent agencies that determine the imperviousness for
5 the calculations for the charges, so for example, correct me if
6 I'm wrong, MSD was doing in the past rate proposal, MSD was
7 doing those calculations in-house and making those
8 determinations, but in other municipalities, do they have an
9 independent agency that's making that determination as far as
10 impervious or not?
11 MR. STANNARD: Those that do have, use impervious
12 area, generally do it within their own forces, and in-house,
13 where they have using GIS geographic information system data,
14 and proven in the data in the ability to use the data, has
15 helped utilities be able to train and employ their own forces if
16 not using outside parties to do that, but then they'll also have
17 a process. So if someone questions that calculation, there's a
18 process to confirm that determination or impervious area.
19 MR. BROCKMAN: Why not when you met with MSD staff
20 make recommendations, just go back to the way we've done it
21 before and just go to the voters for impervious?
22 MR. STANNARD: That was really a policy decision by
23 MSD, we did discuss what the options were, and there's even some
24 lack of clarity of whether if we went back to the voters, and
25 took an impervious area charge to the voter, and they approved
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1 it, if we'd even be able to apply that to taxes exempt
2 properties. So, the decision was made at that point, really not
3 off the table forever more, but that we just make this first
4 transition from the existing, varying subdistrict OMCI taxes to
5 a more overall general district tax along with the 2 cent tax or
6 0.197.
7 MR. BROCKMAN: So in the municipalities where they do
8 have the property tax, how they address the issue of exempt
9 parties such as governments or not-for-profits or things like
10 that?
11 MR. STANNARD: If they don't pay taxes, then they
12 don't pay things for -- they don't generate money for this
13 activity.
14 MR. BROCKMAN: One more question, did I understand
15 correct earlier that you were saying that levy districts will
16 still be assessed the 10 cents, people that are within the levy
17 districts?
18 MR. STANNARD: It's my understanding that properties,
19 tax paying properties within the levy district will pay the 2
20 cent tax.
21 MR. BROCKMAN: But not the ten?
22 MR. STANNARD: Not the 10 cent tax.
23 MR. BROCKMAN: Okay.
24 MR. STANNARD: Because they pay their own fees and
25 charges for that activity within the district.
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1 MR. CHAIRMAN: Mr. Schoedel.
2 MR. SCHOEDEL: Mr. Stannard, is it correct that you
3 helped develop the rate model for the last proposal?
4 MR. STANNARD: No, that was done by another firm, and
5 so we, the last rate proposal, I was the rate consultant to the
6 Rate Commission, then we proposed and were retained to create a
7 new model. The new model is different from the model that was
8 used in the past.
9 MR. SCHOEDEL: Were you able to get any of the
10 information that they used to develop their model?
11 MR. STANNARD: We did not get anymore information than
12 we had at the time of the last rate change proposal, which was
13 the hard copy printout of every worksheet, Excel and every form.
14 MR. SCHOEDEL: It's a very complex model, I was
15 curious if you learned anything from the last rate model to
16 determine did it impact or were you able to achieve it's results
17 and have you used any of that data to look at this rate model?
18 MR. STANNARD: Well, the general process for
19 establishing financial planning and cost of service, and then
20 rate design is pretty consistent. Certainly the process used
21 for the district and by the district is one that is supported by
22 national standards, only the wastewater industry as well as the
23 Environmental Protection Agency, so while the model itself and
24 certainly the last model was pretty complex, so more so complex
25 when you're not able to look at it on-line but just have to look
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Page 122
1 at pieces of paper, there's a flow of information there that
2 they give you from the beginning all the way through, with a
3 little bit of effort.
4 MR. SCHOEDEL: Thank you.
5 MR. CHAIRMAN: Any further questions from the
6 commission? Ms. Myers?
7 MS. MYERS: I don't have any.
8 MR. CHAIRMAN: All right, that I believe completes the
9 calling of the witnesses. Do we -- we have a meeting scheduled
10 to reconvene this technical conference at 9 a.m. tomorrow
11 morning, is there a need to do that.
12 MS. STUMP: No, I do not believe there's anything.
13 MR. CHAIRMAN: So we've completed the technical
14 conference and will be adjourned today.
15 MS. STUMP: Right. Just for your information though,
16 the next technical conference, the next time you will meet is
17 right now scheduled for April 29. Again, at that time, we have
18 three days scheduled, well the April 30 is scheduled from 9 to
19 noon and then May 1 is a if needed day, April 29 would be all
20 day, if needed.
21 MR. CHAIRMAN: Very good. Do we have a motion to
22 adjourn?
23 MR. SCHOEDEL: So moved.
24 MS. BOWSER: Second.
25 MR. CHAIRMAN: All in favor?
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Page 123
1 RATE COMMISSION: Aye.
2 MR. CHAIRMAN: Adjourned.
3 (Whereupon, the hearing adjourned at 5:06 p.m.)
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
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Page 124
1 CERTIFICATE OF REPORTER
2 I, ANGIE R. KELLY, an Illinois Certified Shorthand
3 Reporter (IL CSR# 084-004498) and Missouri Certified Court
4 Reporter (MO CCR# 1010) do hereby certify that the witness
5 whose testimony appears in the foregoing deposition
6 transcript was duly sworn by me; that the testimony of said
7 witness was taken by me to the best of my ability, and
8 thereafter reduced to typewriting under my direction; that
9 I am neither counsel for, related to, nor employed by any
10 of the parties to the action in which this deposition was
11 taken; and further, that I am not a relative or employee of
12 any attorney or counsel employed by the parties hereto; nor
13 financially or otherwise interested in the outcome of this
14 action.
15 IN WITNESS WHEREOF, I have hereunto set my hand and
16 seal this 10th day of April, 2015.
17
18
19
20 _________________________
21 Notary Public
22
23
24
25
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A
AA 78:4 85:20
ability 6:20,24
44:23 45:13
51:17 55:14
57:11 61:7
76:17 110:13
119:14 124:7
able 41:24 64:4
64:18 65:1
69:22 76:19
111:23 119:15
120:1 121:9,16
121:25
Absolutely 77:17
absorb 20:9
absorbed 11:14
accelerate 93:19
94:5
accelerated 63:4
101:22
accelerating
93:23
accepted 14:5
15:1 17:7 84:7
accessible 41:16
accommodated
55:20
accompanied
6:17 10:10
account 53:4
54:23 58:1
87:18 88:10
89:17
accounts 45:5
accrued 101:1
achieve 116:16
121:16
achievement
49:24
acknowledge
96:13
acquire 78:24
acquiring 24:9
24:25
act 11:25 16:19
20:1
action 11:24 78:5
87:18 124:10
124:14
activities 16:18
18:22 19:14
27:3 107:22
108:5 109:6,11
117:18
activity 35:10
45:2 59:8
111:20 120:13
120:25
Acts 117:11
actual 24:20
54:11 80:14
93:12 102:12
114:5
ad 19:23 20:20
22:16 23:6 24:4
29:17 30:2 43:7
43:20 118:19
add 26:6 67:12
67:12 86:10,20
added 85:19 87:8
adding 24:24
addition 24:13
42:13 88:12
91:2 104:9
additional 7:9
10:1 13:21 16:3
18:23 19:9
29:14,16,18
30:21,23 33:15
33:19 42:2
55:13 67:6,19
68:7,10 73:21
73:25 75:3,6
76:13,16,21
77:20 81:5
83:20 84:19
85:23 86:10
105:8 111:17
114:23
address 16:20,21
18:16,21 19:3
29:18 34:20
36:21 41:21,22
76:21 77:7,20
120:8
addressed 14:8
addresses 13:17
addressing 18:24
adequate 6:20
56:15 109:11
110:13
adjourn 122:22
adjourned
122:14 123:2,3
adjust 54:15
76:12,17
100:24 101:21
adjustment
19:20 106:18
108:7 115:2
adjustments
53:14 101:3
102:9
administering
24:20,25
administrative
107:19 108:6
admitted 42:13
adopted 7:10
43:21 81:10,12
advance 27:25
advantage 12:25
33:2
advice 33:7 110:6
110:17
advised 33:18,21
110:6
advisers 82:2
advisor 14:21
aerial 24:10,12
affect 97:25
102:7
affidavit 10:11
10:14 96:11
97:13
affordability
114:21,23
115:4
affordable 115:2
afternoon 10:24
73:15,16
109:16
agencies 78:12
80:18 82:16
88:13 119:4
agency 89:14
117:11 119:9
121:23
aggressive 75:8
ago 25:5 45:11
87:17 98:20
117:9
agree 36:22
55:23 84:16
agreed 38:21
65:25
agreement 60:17
agreements
59:20 60:18,19
61:3 84:4
ahead 16:7 53:14
aim 45:17
aligned 65:22
alleged 11:25
allocate 9:22
allocated 106:3
108:1,7
allocation 106:10
107:22
allotted 9:25
allow 19:25 61:9
67:3
allowances 94:20
allowed 12:1
14:10 40:20
allowing 11:3
83:10
allows 13:20
43:16 67:4
80:11
amended 5:9
6:19 7:1
amendment 5:10
45:12
American 104:10
ammonia 68:12
68:16 69:12
70:11
amortization
77:21 84:8
90:20 91:18
98:20,22,24
amortized 84:15
amount 15:10
22:1 32:17 40:2
40:4,9 64:11,18
74:10 75:16
79:13 82:9
93:14 116:9
amounts 6:14
Amundsen 3:25
analysis 24:7,18
24:20 55:9,13
55:14 56:8
79:18 81:22
102:2,9,15,20
102:21,22
103:2,4 104:7
104:17 105:8
105:15
analyze 53:9
107:10
analyzed 54:13
102:23
and/or 25:17
26:6 65:19 78:3
80:12
ANGIE 124:2
Annette 3:3 4:19
15:4
annexed 19:18
annual 15:10
24:5 31:9 34:21
53:13 55:20,21
57:10 62:17
98:11 99:6,8,9
100:21,24
102:9 106:16
106:24 114:14
114:24 116:10
annually 53:6
98:12,15,17
100:17
answer 8:7,15,24
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9:18 15:15
23:21,24 24:8
24:22 29:21
30:25 41:24
64:25 80:3
82:20 87:9
94:10 98:9,10
103:6 111:23
answered 45:25
49:9 91:15
answering 90:25
anticipate 22:23
30:7 79:16
anticipated 6:15
41:8
anticipating
111:19
anticipation
43:13
anymore 63:21
121:11
apologize 70:4
Appeals 12:11
appear 75:14
103:20 115:18
appearance
14:16
appears 124:5
appendices
102:11,12
appendix 50:21
88:21,22 89:25
105:2,15,18
applicable 6:25
application 7:7
7:12
applications 7:13
7:16
applied 45:2
93:23 106:17
107:9
applies 45:10
apply 120:1
appreciate 46:11
84:25
approach 45:12
54:1 67:25
80:10,11,15,17
101:12
appropriate
11:22 22:7
36:21
approval 27:7,9
27:17,20,21
28:8 29:3 31:10
43:19,22
approve 31:8
32:10 65:3
approved 5:7
13:24 28:25
39:2,4 50:14
77:11 91:13
114:24 118:20
119:25
approximately
11:11 12:13
35:11 47:13,18
49:6 52:8 65:19
66:12 74:15,19
74:23 77:18
93:5,18 114:15
April 1:16 7:25
7:25 8:11,13
12:4,8 90:10
112:4,5,16
122:17,18,19
124:16
apt 69:3
area 16:20 19:14
19:18,22,24,25
19:25 20:1,1,13
21:23,24 22:18
22:22,23,23
24:6 25:1,2,4,8
25:17,18 26:4,5
26:7 35:16
36:12,15 45:10
58:1 72:8 76:16
95:11,14,16
117:24 118:4,4
118:8,11,12,16
119:2,12,18,25
areas 20:4 24:12
35:8 55:8 97:24
104:7,8
Arnold 3:9 9:15
10:4,6,6 17:20
17:22,23,24
21:1 23:11,17
23:20 33:22
42:8,10,11,12
46:8,9 58:21,23
58:25 63:24,25
69:8,9,9 71:12
71:14,18,19
72:6,15 73:8,10
73:14,15 76:4
80:20,22 87:13
87:15,16 91:20
94:13,14 95:19
95:21 99:18,20
109:15,16,23
115:25 116:2
arrears 28:2
arrive 39:19
arrived 48:2
52:18 90:10
article 26:14
ascertain 67:21
asked 19:8 43:11
43:23 47:24
48:23 56:7 60:5
60:18 81:4 83:7
84:11
asking 16:8
19:21 22:19
27:15 30:22
55:4 56:2 87:22
aspects 14:12
asphalt 20:2
assess 26:21
27:10,16
118:20
assessed 13:8
19:23 26:25
35:16 45:20
61:25 63:8 96:2
96:3 98:1
120:16
assessing 27:15
assessment 45:14
96:18 97:1
111:15
assessments
30:16 43:13
89:10 97:7
assessor 97:11
112:15
assessors 112:9
asset 59:10,10,12
59:13,15,17,20
59:22 61:11
assets 6:13 58:11
58:13,13 59:12
84:12,18
assist 18:3
assistant 14:22
associated 5:25
24:8 25:2 48:14
52:9 55:15
association 3:20
6:1,4 7:14 9:9
46:24 71:6 73:3
85:9 92:11
100:8 104:11
assume 29:23
68:2 86:16 87:6
87:22 112:25
assumed 85:19
86:3 90:25 96:3
assumes 112:25
assuming 16:21
27:9 83:22 91:6
101:21
assumption
67:16
assumptions
90:22 101:4,19
105:3,14
assure 57:22
assuring 57:18
attempt 9:21
86:11 108:21
attempting 91:12
attention 10:7
21:3 29:5 64:3
76:8 77:3
attorney 124:12
August 12:3
112:4,7
authorities
108:11
authority 27:17
30:22 61:7
108:14,16
118:20
authorization
73:24,25 74:6,6
90:25 91:6,8,11
91:13
authorizations
75:7 91:5
authorize 81:5
availability
54:24
available 12:15
18:9 31:3,24
42:15 63:18,21
64:12 79:22
80:8 91:5 93:25
94:3 104:23
109:5 118:15
Avenue 3:23
avenues 40:14
average 32:22
77:22 83:17
86:22 114:14
114:25
averaging 114:24
avoids 24:5
aware 11:23 13:4
105:17
Aye 10:20 123:1
a.m 122:10
B
B 24:17,19 41:17
76:5 88:24,24
88:24 95:22
back 33:19 44:9
51:18 55:1
64:17 70:19
88:21 94:2
97:16,25 99:5
111:25 116:8
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119:20,24
background
39:20 48:1
Baer 3:10 8:9
9:16
balance 93:4,16
94:9 106:11
116:11,13
balances 34:12
93:8
Baltimore 104:1
bank 95:4
bar 6:4 42:13
barely 19:6
base 11:11 53:24
106:14
based 11:7,17
12:18 13:6,7
16:4,20 19:23
24:23 25:3,17
36:8 38:20 42:5
43:17 49:16,23
52:21,25 53:19
53:20,22 54:14
54:15 55:7 56:6
65:25 67:16
75:17 77:19
81:23,25 83:5
86:6,7 90:21,24
94:1,3 101:19
101:24 103:18
103:21 104:5
106:6,7,10
108:7 111:10
111:14 114:10
117:23,25
118:7 119:2
basically 41:6
65:17
basis 23:6 31:9
34:22 43:3 53:8
54:5,6 86:21
87:22,23,24
91:7 96:2
100:21 118:5
118:15
Beatty 42:19
bedtime 23:13
began 11:13 38:5
beginning 9:4
27:21,22,24
38:15 85:17
96:14 98:9,9
122:2
begins 38:14
76:20
behalf 9:5,8,11
11:4 17:21 42:9
46:23 47:2
58:24 71:5,9,13
73:3,5,8 85:8
85:12 92:11,13
100:7
believe 17:15
19:20,21 22:4
22:12,25 23:2
23:10 26:1
39:11 41:15
44:18 46:7
48:23 52:17
78:15 83:25
84:19 86:21
90:9 96:7 99:3
102:12 103:18
110:1 111:9
122:8,12
believes 19:17
Bellville 2:9 7:20
14:21 92:4,5,8
92:10,16,19
96:17 98:8
99:24
benefit 30:16
80:13,16 118:2
benefits 36:20
80:10
benefitted 35:24
best 82:19 124:7
Bethany 2:8 7:20
14:20 85:2,14
better 15:12,15
25:21 39:21
41:8 42:4 45:25
67:17 86:23
118:15
beyond 19:10
30:9 52:4 62:23
68:8 76:21
79:25 98:22
99:2
bid 52:22 53:9
54:21 57:14
bids 53:5,10,20
54:2,14 55:1,7
big 66:9 81:18
82:6 109:9
116:18
bill 24:24 99:25
115:1,11,11
billing 24:10
billion 12:13
15:9 31:22 39:5
39:11,19 47:10
47:13,18,21,22
47:25 48:22
59:7 65:21
74:15 77:11
96:20
bills 108:15
biochemical
106:5
bit 38:1 49:11
50:6 60:17
74:19 80:24
89:21 116:17
116:20 122:3
black 9:14 25:12
25:15 90:19,22
90:24 91:5
117:22
blue 90:17
BMP 17:4
board 5:14 6:10
6:16 7:6,7
27:17 31:10
65:3 87:19
88:23 106:17
114:24 118:18
118:22,22
bond 74:25 75:6
75:14,19 76:5
77:14 81:4
83:17 84:9,9
86:15 87:1
90:20 91:5,10
114:6 115:14
116:10,13
bonding 32:23
32:25 33:2 80:9
80:25
bonds 6:12,23
30:13 32:1,10
43:13 74:17
75:10,13,16
79:4,8,11,17
80:6 81:5,13,14
81:17 83:12,20
83:23,25 84:15
86:20 88:22
98:24
books 112:15
boost 108:10
borrowing 77:12
77:20 79:9
85:21
Botanical 6:3
bottom 26:16,17
77:3,24 98:9
boundaries 22:8
36:18 60:13,15
60:21
boundary 61:22
Bowser 3:4 4:6,7
5:4 10:18 34:4
34:8,14 122:24
Bowser's 44:24
Brandon 3:15
9:13
break 70:17,18
breakdown 52:1
breaks 51:23
Brian 2:3 7:18
14:17 15:19
16:4 24:1 39:21
39:22 82:19
brief 11:5 71:14
81:19 115:19
bring 64:4 70:1
Broadway 3:17
Brockman 3:5
4:8,9 5:4 10:17
117:4,5 118:24
119:3,19 120:7
120:14,21,23
brought 65:8
Bryan 3:19
budget 12:17
24:20,21 50:25
51:24 52:7,11
52:14 53:18
54:15 55:20,21
64:5,8 67:23
81:10,12 92:23
93:4,13,14 94:2
95:5,5 110:23
budgeting 64:4
build 51:17
61:13,14 67:7
builders 7:14
46:24 73:3 85:9
92:11 100:8
Builder's 3:20
9:9
building 17:11
51:8 54:7,9
built 38:19 80:11
83:24 92:21
burden 7:2 14:3
20:21 24:3
bureau 95:23
Burkhart 3:21
9:10,10 16:9,11
16:12,14,15
17:15,17 37:13
37:15 46:23,25
71:5,7 73:2,4
85:8,10 92:10
92:12 100:7,9
business 80:18
96:11
C
C 3:1 24:22
95:22
calculate 82:10
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calculated 48:1
81:21,22
calculating 24:23
calculation 24:24
25:8 38:24
119:17
calculations 25:4
119:5,7
calendar 56:23
California 104:4
call 4:1,3 15:19
26:6 29:5 44:5
46:12,15 51:9
64:2 74:25 76:8
77:2 85:1 88:14
92:3 94:22
called 10:6 35:9
88:18,19,20
calling 122:9
calls 99:25
capabilities
57:19
capacity 12:22
20:8 51:9 63:3
66:24 67:6
81:13,14,16,24
82:2 106:4
capita 104:15
capital 12:23
13:13,15,22
15:14 18:24,25
19:7 31:5,6,14
33:16 34:23
38:13 42:5
47:10,17 48:19
49:6 52:11,13
55:15 62:7,24
63:15 64:5,12
68:8 74:13
76:15,21 77:7
77:11 78:21
80:4,7 82:14,17
92:21 93:10
94:9,10 100:23
101:8,14,15
106:21,21,22
113:25 114:1,3
114:3 115:14
115:16
capture 66:2
cards 88:13
care 19:17
117:14
carry 28:20
case 22:11,16
26:22 36:7
42:19,19,20,23
67:22 86:9
92:21 105:12
106:18
cases 42:23 51:17
101:2 118:3,4
cash 74:3,9 90:6
92:25 93:3,25
catch 63:12
categories 57:12
89:6 105:7
category 89:25
99:16 104:25
cause 68:10
Cave 3:19
CBA 95:6
CCR 124:4
census 82:1
cent 18:19,21
27:15,16 31:21
34:17 35:11
44:19 59:25
61:24 82:23
120:5,20,22
Central 3:23
cents 19:19 26:24
27:2,3,7,10,10
27:11,11 29:6,6
31:13,13 33:9,9
33:19 43:14,20
44:4,4,20,23
45:23,23 46:3
63:8 79:19
115:22,22
120:16
certain 36:12
38:25 39:3 40:4
40:5 49:24 50:8
54:18 60:9 68:2
82:15 90:22
94:8 109:9
certainly 55:6
82:5 121:20,24
CERTIFICATE
124:1
Certified 124:2,3
certify 124:4
cetera 68:10
chair 5:3
chairman 3:2 4:1
4:6,8,10,13,15
4:17,19,24 5:2
9:8,11 10:4,5
10:15,19,21
15:3,16,20,24
16:9 17:17,20
23:11,15,18
34:2 35:15
36:25 37:4,8,12
37:16,19 42:8
46:9,17,21 47:1
47:4 58:21,24
63:25 65:14
66:17 67:10,21
68:3 69:7 70:16
70:20,24 71:3,8
71:12,15 72:15
72:19,23 73:1,5
73:8,11 80:22
82:12,18 83:2,7
84:25 85:3,7,11
87:13 91:22,25
92:2,5,9,13
94:13 99:20,24
100:2,6,10
109:15 116:1,5
117:4 121:1
122:5,8,13,21
122:25 123:2
Challenges 77:6
Chamber 6:1,7
Chan 4:20
chance 78:16
change 1:11 6:9
6:16,18 7:3,6
7:11 12:18 13:7
13:25 14:3,12
16:17 17:12
24:2 28:11
29:11 74:13
78:6,23 79:5
82:23 90:14,17
99:16 100:19
101:12 102:12
102:13 105:9
105:11 106:13
106:13 110:2,9
110:16,21
111:6 114:13
115:21 121:12
changed 31:10
changes 5:12
6:11 53:4 78:24
102:6,7 104:16
105:22,24
106:7,16,24
107:3,13
channels 35:6
66:2 103:13
characteristics
88:19
charge 13:9
19:21 21:14
45:20 119:25
charges 28:12,22
119:5 120:25
chart 33:25
44:22 90:15
charter 5:7,10,14
14:10 26:14
29:5,11,25
30:22 33:25
43:16 110:11
check 22:11
Chesterfield
60:25
Chodes 4:10
chose 12:7 95:5
chunk 116:18
churches 109:1
Circuit 12:10
CIRP 62:10
63:10 66:11
67:21 100:23
101:21
cities 117:12
city 6:4 11:18
61:1,1 97:12,18
112:9
civil 11:24
clarification
14:11 34:17
clarify 18:4
clarity 119:24
class 105:21
classes 7:2 14:4
20:21 24:3
clean 11:25 16:19
117:11
clear 12:19 40:1
56:12 107:3
clearly 112:7
clients 103:22
104:8 116:25
clock 38:7,18
close 95:23
closely 54:14
closer 66:14
70:11
Club 6:2
Coalition 6:8
12:1
codes 56:17
collaboration
104:10
collaborative
101:12 105:10
colleagues 27:6
75:8
collect 21:9 22:7
22:12 24:5
26:21 27:25
28:2,3,5 29:16
29:22,24 31:7
32:17 34:7
109:10
collected 27:23
34:5,13 112:8
112:17
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collecting 31:7
31:21 35:17
collection 21:11
22:24 29:21
58:13 107:4
112:25,25
113:18
collector 96:11
collectors 112:9
column 88:23
89:5 90:2 96:18
columns 90:19
combination
80:9 111:19
combine 74:18
combined 11:8
12:20 40:7
41:21 48:6,10
48:12 49:18
52:6,14 66:1,2
80:11,16
come 10:22 33:19
39:17 47:4
55:19 67:23
70:2 74:5,14
83:5,8
comes 70:8 74:12
82:3 93:12
coming 55:6
commensurate
85:20
comment 12:4
commented 43:6
Commerce 6:7
commercial 5:18
118:12
commission 1:8
3:3,8 4:2,3 5:2
5:6,11,16,17,24
6:10,17 7:3,4,8
7:9,10,18,21,24
8:1,5,8,9,10,16
8:19,25 9:15,16
9:21 10:11,13
10:15,20 11:2
13:23,24 15:1
15:24 16:2,6,22
17:21,22 18:3,3
23:12 26:13
33:25 34:3 37:1
37:13 42:9
46:10,22 58:24
64:1,12 65:12
69:8 71:4,13
72:14,16 73:1,9
80:23 83:3,4
85:7 88:16
89:19 90:10
92:9 94:14
96:10 97:10
99:18,21 100:6
101:2 110:25
116:2,5 121:6
122:6 123:1
Commissioner
44:24 70:13
Commissioners
91:23
Commissioner's
69:10
commissions
110:17
commission's
9:17
committed 65:19
commodities
54:13
commodity 53:23
54:3
common 6:19
107:15 110:5
communicated
95:1
communities
80:19 117:16
community 5:22
11:16 13:15
117:17
community's
11:20
comparable
11:11 86:8,8
compared 23:9
24:25
comparison
22:21
complete 38:25
40:22 41:7 42:1
54:25 66:18
102:20
completed 9:24
39:15 41:19,19
49:25 50:1,5,22
50:23 58:6
64:15 122:13
completes 122:8
completing 13:1
completion 66:19
complex 121:14
121:24,24
compliance
12:16 14:14
16:19,22 39:17
complicated
89:21
comply 6:25
12:24 38:15
59:8
component
101:14 118:14
components
51:10,15 58:18
61:1 100:20
101:4 106:4,4
106:17,19,21
compute 23:7
concept 55:5
conceptual 48:13
48:16 52:22
53:15 54:16
Conceptually
68:21
concerned 80:24
concerning 24:15
concerns 78:12
concluded 9:5
13:5
concludes 14:25
concluding 12:5
conclusion 24:8
24:19 49:4
conclusions
24:22 103:25
concrete 20:2
53:4,17
conditions 58:3
83:15 86:7
90:22
conducted 9:4
56:8
conference 1:15
4:2,23,25 8:3,6
8:10,12,14,18
8:21,23 122:10
122:14,16
conferences
13:11
confident 56:5
confirm 103:6,11
119:18
congressional
95:4
conjunctive
45:17
connection 104:6
connections
51:14
consent 12:2,5,7
12:12,14,16,17
12:19,24 13:2
13:12 14:14
15:9 38:1,5,6,9
38:9,11,13,14
38:16,17,19,21
39:1,3,9,12,13
39:23 40:1,11
40:14,16,20,21
40:25 41:2
43:10 47:13
49:13,16 50:9
50:11,15,20,21
58:7 59:9,21,22
63:4 64:19 65:5
65:8,17 66:12
68:9 75:22 81:1
88:10 93:24
94:5,5
consider 19:9
29:24 35:21
38:17 42:23
43:6 66:7 79:8
79:17,23 80:1
84:3 91:18
101:7
consideration
43:9 55:22 58:4
89:18
considered 17:6
17:7,9 30:7,17
30:19 42:20
43:8 44:6,9
80:17 99:11
102:21 105:18
112:14 115:2
considering
22:21 36:17
consist 74:24
consistent 6:18
6:22 42:18
56:16 104:17
110:4 121:20
consists 5:24
26:14
consolidated
11:15
constituents
80:15,16
constitution
11:12 14:10
constitutional
6:19 110:4
construct 62:12
62:16,19 63:10
63:17,20
constructed
62:23
construction 6:5
16:18,24 17:3
51:6,7,21 52:1
54:7,8,9,10
55:18 56:11,13
56:20 57:12
62:24 65:1
consul 9:23
consultant 9:15
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110:25 121:5
consultants 8:11
8:18,19 14:23
57:24 101:13
111:1
consulting 53:1
104:5
consumed
116:19
consumers 3:14
6:4,6 7:15 9:12
37:20 47:2
71:10 73:6
85:13 92:14
95:17
consumption
104:15 116:23
contain 41:24
contained 30:21
47:17 97:12
context 91:4,6
contingency 65:3
65:4
continuation
13:13
continue 12:24
28:25 31:10
61:9
continuously
20:11
contract 54:24
57:23
contractor 57:14
contractors 5:25
54:25 55:8,10
57:9,11,15
contracts 54:2
84:5
contribute 31:14
102:3
contributions
111:16,17,20
control 12:21
40:8 41:11,20
48:5 49:19
50:22
conversation
25:5
conveyed 45:16
copies 24:17
102:20
copy 25:11 76:1
121:13
correct 20:18
22:2 23:17,21
25:8 26:2,8
27:5 30:15
31:25 32:3,11
32:12 37:21
38:17,23 39:1
40:3,19 41:20
44:13,15 45:3,4
45:8 47:11,15
47:23 49:8
52:19,23,24
53:2,22 56:1,14
56:24 57:20
60:3 61:15,17
62:3,18 63:6
64:6,7 73:23
74:2 75:2 82:14
85:22,25 86:1
88:25 89:9,23
90:8 91:19
93:20 95:7,8,9
95:18 96:4,5
97:4,5,9,17,21
97:23 98:4,18
99:9 102:1,16
103:19 107:5
107:14 109:25
110:20 111:11
113:6,20 119:5
120:15 121:2
correctly 31:12
91:1 98:2
cost 17:12 21:3,8
21:11 22:24
23:10 24:8,23
24:25 29:19
33:2 36:24 39:5
39:19 48:14,16
52:9,18,21
54:11,19,20
62:24 67:12
75:11 78:24
80:8 82:15,18
82:22 83:21
86:23 101:1
104:25 105:21
105:24 106:1,7
106:8,10,15,20
107:4,4,12,16
107:17 121:19
costs 6:13 23:7
24:5,14,15,20
25:2,3 29:9
33:15 53:24,25
54:12 83:20,24
84:19 106:3,8
106:22,22
107:1,5,15,18
107:23,25
108:4,7,8
117:22
cost-efficient
24:4
Council 6:5,8
counsel 8:9,17
9:1,7,16,24
10:25 14:18
18:2 30:3 110:5
110:12 124:9
124:12
counties 117:12
country 11:10
55:9 58:4 119:1
county 5:8 6:4,6
6:7 11:7 60:13
96:11,19,23
97:3,18,22,25
98:1 112:9
117:16
couple 52:2 59:5
77:25 83:5
104:23
coupon 83:16,20
83:22 84:1
course 20:11
50:5
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12:10 13:5 14:7
36:9 42:20 43:7
124:3
covenant 6:22
116:10,13
cover 6:14 33:14
79:6 111:20
coverage 76:13
77:9 78:7
covered 31:2
43:2 49:4
Covering 48:20
co-financial 82:2
co-permittee
60:5,5
create 44:2 54:19
89:7 121:6
creation 102:23
credit 16:23 17:6
17:7,9,14 87:7
88:13 89:14
credits 86:9,9
creek 35:10
criteria 43:5
60:10 68:12,16
68:17,23 69:1
70:6,11 106:6
110:2,3,4,10,12
CRP 101:15
110:23
CSO 41:11 50:18
66:2
CSOs 77:8
CSR 124:3
cure 108:21
curious 121:15
current 13:13
16:24 32:22
39:25 47:9
54:14 56:22
60:19 69:17,18
73:22 76:18
78:17 79:15,15
80:15 81:23
85:20 86:5,7
89:3 90:16,21
91:8 92:25
104:8 111:20
114:25
currently 5:24
13:10,20 18:20
34:7 61:25
77:17 82:22
83:13,17 84:20
cushion 86:15,20
87:20
cushions 87:8
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71:24 72:6
77:18 99:17
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71:23 98:6
101:5 102:3,7
107:7,8 108:2
108:18,22
116:20,22
cycle 32:22 52:3
57:6 62:6 65:7
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D
D 2:1 95:22
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data 24:9 103:10
106:7 118:15
119:2,13,14,14
121:17
date 12:16 67:8
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dated 88:15
dates 49:19
day 1:15 113:23
122:19,20
124:16
days 90:5,6,6
112:5 113:10
113:23,24
114:5 116:9,11
116:24 117:1
118:24 122:18
deadlines 41:3,4
deal 32:1 63:3
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dealing 21:19,22
32:9
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77:6,9,15,18,18
77:21 78:2,3,7
78:9,12,19,24
79:10 80:3
81:13,14,15
82:1 83:18,18
86:6 90:15 91:9
91:18 98:20,22
98:24 114:24
decades 13:14
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96:19 97:2
113:1,6
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declines 77:9
declining 104:14
decree 12:2,5,8
12:12,15,16,17
12:19,24 13:2
13:13 14:15
15:9 38:1,5,6,9
38:9,11,13,14
38:16,17,19,22
39:2,3,10,12,13
39:23 40:1,11
40:14,16,20,21
40:25 41:2
43:10 47:13
49:13,16 50:10
50:12,20,21
58:7 59:9,21,22
63:4 64:19 65:5
65:9,17 66:13
68:9 75:22 81:2
88:10 93:24
94:5,5
deep 57:12,13
defendant 12:9
defer 15:14 46:1
99:3
deferred 47:25
define 19:24
31:18 54:18,19
defined 19:23
54:18 95:15
definitely 82:9
degree 116:14
delay 63:10
delayed 65:11
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delegates 5:5,15
delineation 24:11
delinquencies
6:15
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demonstrate
14:13
denominated
90:2
Denver 104:2
departments
117:12
depend 83:15
dependent
116:19
depending 27:24
94:8 115:8
deposition 124:5
124:10
derive 55:2
describe 21:2
24:7,22 50:24
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95:24 98:8
description
69:24
design 17:5 41:7
51:21 52:1,23
56:12,17 62:12
62:16,19 63:1,9
63:16,18,20,20
121:20
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designing 48:11
51:4,5
desire 114:12
desiring 9:20
desk 111:25
detail 13:2
111:22
detailed 14:12
108:3
deteriorating
76:22
determination
109:4 119:9,18
determinations
119:8
determine 68:19
106:19 118:23
119:4 121:16
determined 14:4
14:6 32:4 62:4
90:21 101:16
113:18 114:14
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118:16
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121:3,10
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Developers 17:10
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118:10,13
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82:6
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21:25 40:19
41:1,1 50:7
51:7 58:3,17
74:20 86:19
100:18 101:9,9
117:6 118:13
121:7
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21:18
differently 72:4
95:15
difficult 45:6
difficulties 44:3
difficulty 90:4
direct 1:12 7:18
8:4 10:7,10
13:3 15:13 16:4
16:15 24:1 59:6
60:17 65:16
71:21 81:9
110:21
direction 12:19
124:8
director 14:17,18
14:19,22 39:22
39:25 94:1
dirt 20:6
disagreements
25:3
discharge 69:21
107:7
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107:9,10
discharging
107:11
discovery 7:22
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20:23 21:4,5
24:19 25:10
60:6,10 69:11
72:13
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105:21 115:13
115:20 119:23
discussed 10:9
19:14 47:12
83:6 110:10
115:16
discussing 71:22
93:11
discussion
111:14 115:19
discussions 36:6
110:8
disjunctive 45:17
dismiss 37:4
disputes 25:3
dissatisfaction
72:7
distribute 107:23
distributed
107:25
district 1:10 4:3
5:3,7,12,13,15
5:20 6:10,13,24
6:24 7:4,7,17
7:22,23,24,25
8:2,5,6,16,18
8:25 9:6,23
10:7 11:1,4,7
11:10,17,21,25
12:12,15,16,25
13:8,21,22
14:11 16:5
18:19,22,24
19:7,18 20:15
20:18 21:19,22
22:5 24:11
25:25 26:15,19
26:19,22 27:10
27:20 28:22
29:1 32:14,16
32:19 33:7,19
34:10,20,22
36:22 37:6
39:19 43:12,21
44:5,6 45:5,13
45:14,16 46:14
46:15 51:11
52:22 53:7
55:17 60:8,15
60:18,18 61:4,5
61:7,10,16,18
61:19,20,22,25
62:2,4,7,8 63:3
63:5 65:2 68:13
69:14 70:22
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91:17 92:3 95:1
95:5 97:22 98:2
98:3,20,21
99:11,25
101:17 103:15
104:2,4 105:10
105:11,12,17
105:22 106:1
107:6,17 108:2
108:12,12,15
108:17 110:22
110:24 111:10
112:1,8,13
113:7 115:20
116:11,20
120:5,19,25
121:21,21
districts 23:3
25:22 45:22,24
60:20,20,25
61:8 72:21
82:22 104:3,4
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district's 5:17
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26:13 105:5
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41:15 103:11
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35:12 36:16
38:12 51:6,11
64:14 68:8
119:6,7
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36:22 40:2,4
47:10 64:11
79:13
dollars 18:23
28:2 31:13,22
39:6,11 40:9
64:22 68:22,22
74:15 75:6 79:6
96:21
domestic 106:2
107:7
double 77:6,14
77:19 78:13
87:6 88:23,24
89:2,4,5,14,22
90:1
dough 30:11,12
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downspouts
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downstream
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110:14 117:14
118:18
dramatically
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drastic 66:5
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117:10
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66:12
driver 35:21
75:21,24
drivers 75:20
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driving 75:18
drop 66:5,6
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36:4 48:7,13
ducked 65:16
due 6:12 77:7
112:17,23
113:1,6
duly 16:12 37:22
47:5 71:16
73:12 85:14
92:16 100:12
124:6
duties 30:2
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E 2:1 3:1,1 95:22
earlier 47:12,24
65:16 69:15
84:11 87:22
93:17 120:15
early 86:22
Earth 61:1,1
Eastern 7:15
Ebola 70:8
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71:9 95:6
economy 102:6
Education 6:3
effect 10:16
effective 47:16
effectiveness
23:10
efficiencies 13:1
efficient 21:8
effort 11:19 48:3
122:3
either 28:3 29:10
32:17 39:21
43:12 45:22
79:21
election 5:8,9
112:5
Electrical 9:12
37:20
element 82:15
106:19
elevation 28:18
eligible 33:16
eliminate 51:12
elusion 35:1
emergencies 6:15
emphasis 51:4
66:22 117:19
employ 119:15
employed 124:9
124:12
employee 124:11
employees 55:11
55:11
enacted 82:24
ended 12:4
Energy 3:14 6:3
7:15 9:12 47:2
73:6 92:14
enforcement
50:15
engineer 42:14
42:14
engineering
14:18 17:5
39:22 54:6,20
55:17 107:19
Engineers 6:1
enhances 6:20
ensure 5:16
56:17
enter 20:15
entered 12:5,8
38:5,10
entering 35:6
enterprise 89:21
entire 34:10
60:13 61:22
80:15 101:11
106:16
entirely 70:3
entities 11:12
22:6 25:6,7
108:25
entry 38:6,17
environment 6:8
12:1 20:6
117:20
environmental
5:21 117:10,10
121:23
EPA 35:5 38:2
40:12 67:15
68:7 70:6
equal 15:10
equally 9:22
equipment 58:8
equitability 36:6
equitable 14:6
22:17 23:1,7
36:5 80:7 84:17
equivalent 32:16
118:5
Eric 3:4 4:13 5:5
error 26:3
escalating 77:15
escalation 55:3
escalator 104:25
escalators 105:18
especially 36:8
essence 39:2
essentially 60:7
established 5:10
26:20 101:15
110:11
establishing
121:19
estimate 39:11
52:25 54:16,20
54:21
estimated 52:18
54:12 81:13,14
81:15
estimates 48:14
48:16 52:21
53:3,18,18
54:23 57:25
77:20
ES10 99:15
ES11 99:16
et 68:10
evaluate 79:11
evaluation 19:24
evenly 9:19
event 17:3 90:11
115:22
eventually 19:16
everybody 35:23
36:20 60:7
exact 60:10
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29:22 52:1
104:6 108:13
examine 101:17
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examined 43:5
examining
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110:15 118:1
example 17:2
53:4,17 86:6,21
87:21 98:17
119:5
exceed 26:24
exceeds 16:24
17:4
Excel 121:13
exceptions 36:19
excess 65:1 66:23
excuse 26:10
49:9
executive 14:17
81:2,3 99:15
exempt 46:4
108:24 109:1
120:1,8
exhibit 15:1 24:7
24:16 26:11,13
33:24,25 41:13
48:17 76:4 77:1
77:13 96:10
97:10 114:19
Exhibits 41:17
95:22
exist 61:8
existed 53:19
existing 28:12
29:19 90:18
116:13 120:4
exists 19:6
expect 82:6 89:6
111:4 113:12
expectation
76:12
expectations
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expected 58:8
76:18 77:6 93:3
expecting 111:17
expended 65:18
expenditure
55:15 68:8
92:21 93:11
99:8 101:8,16
101:21 114:4
expenditures
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expense 100:22
105:6 116:12
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101:18,19
106:21 111:5
111:21 116:10
expensive 78:21
78:22
experience
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104:15 116:12
experienced
103:21
expertise 53:1
expiration 9:24
expired 10:2
explain 105:24
explained 90:4
explanation
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explore 100:19
exposure 84:4
extend 48:9
59:18,19
extended 12:3
extends 7:8
extent 9:23,25
55:7 56:2 65:11
84:15 97:24
extra 36:22
105:25
extract 26:14
eyes 39:17
F
F 89:25 95:22
face 78:12
facilitate 13:21
facilities 6:21
20:16,18 55:19
58:15,16 65:2
68:15 84:15
110:14
facility 52:25
67:4
fact 25:8 26:2
35:1 36:17
116:25
factor 88:18,19
88:20 118:6,9
118:13
factors 36:4
54:24
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14:6 20:20 21:2
22:3,17 23:1,2
24:2 25:20,21
57:22 84:17
95:16
Fairly 28:16
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fallen 113:2
familiar 118:6
far 36:10 54:3
110:20 119:9
farther 70:10
fashion 35:4
favor 10:19
118:15 122:25
February 5:9 7:4
7:17 53:19
112:4,6
federal 6:25
16:25 17:11
87:18 95:2,4
fee 13:6 21:18
24:6,21 25:1,2
25:16 29:21
45:20 99:10
feed 17:10 103:8
feel 15:12 43:15
fees 120:24
feet 28:17
felt 43:2
Fifteen 30:13
figure 33:10
95:12 97:25
file 27:14
filed 7:14,23 8:5
10:7 11:24
15:18 37:6
46:13 70:22
110:16
filing 105:25
finalized 39:10
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33:7 91:17
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14:22 77:10
80:7,18 101:14
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financial 14:20
14:21,23 76:20
78:3 80:17
88:19 89:10
101:11 114:9
121:19
financially
124:13
financing 32:10
74:14 80:4
82:14 100:23
101:14
find 19:12 72:5
111:7
finding 111:6
fine 83:7
firm 90:21 91:17
104:9 121:4
firms 25:21,23
first 7:22 17:6
18:16 19:1,12
19:16,17 21:5,6
23:23 48:20
49:1 52:2 63:13
65:16,19,24
76:9 77:3,15,25
90:9 96:13,18
98:16 110:4
112:22 120:3
fiscal 27:22 28:4
28:6,9 32:22
47:17 50:25
51:1,5,25 52:9
56:23,23 64:24
68:15,15 78:8,8
81:15 85:24,24
86:4 91:7 93:3
93:13 100:17
112:19,23,24
113:7 115:2
fiscals 114:25
Fitch 77:13,19
88:9 89:20
114:20
five 7:1 57:12
59:7,7 69:3
77:19 83:22,22
102:8
fives 83:18
fix 18:24 59:14
59:15
fixed 28:22
flat 13:9 43:19
44:6 115:10
116:22,22
flexibility 78:2
flow 20:10 45:15
51:12 66:23,23
67:8 122:1
flowchart 113:3
flows 35:3 51:12
51:13 103:17
focused 100:20
100:25
focusing 5:20
folder 76:2
follow 44:24 59:5
following 6:12
8:9,17 9:20
12:2 13:11 28:1
48:23 97:13
102:8
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forth 64:18 69:1
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Forty 87:23
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found 22:6
four 6:24 12:2,24
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59:6 62:20
63:17 68:6 69:4
79:6,24 83:6
fours 83:17
fourth 11:6,10
Fox 3:9 9:15
frankly 95:23
front 15:11 36:3
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fuel 54:3
full 12:15 53:7
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functionalizati...
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functions 107:20
fund 19:7 22:16
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funded 55:25
funding 13:18,19
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funds 19:2 30:23
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further 6:16
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Furthermore
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future 14:14 19:8
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FY 64:5,9 93:4
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gamut 53:9
Garden 6:3
gasoline 54:3
gathering 105:13
general 5:9,25
9:7 10:25 14:17
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32:21,21 34:9
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generally 43:6
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115:16 119:12
generate 16:17
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geological 42:14
George 3:4 4:15
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getting 51:12
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59:16 66:23
67:1,8
girl 88:5
GIS 119:13
give 15:21 17:2
22:14 26:11
30:22 37:9
39:20 42:4
46:18 48:1
51:20 70:25
72:24 78:16
81:19 85:4
89:14 92:6
100:3 122:2
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glad 4:24
gloomy 79:3
go 15:25 16:7
20:8 32:7,24,25
34:9,9 44:5
51:18 52:4
53:14 70:20
75:19 79:23
86:12 89:20
99:2,6 103:8,12
109:19 116:8
118:24 119:20
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50:11
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79:2
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26:15,17 27:11
29:23 30:3
32:24 38:24
41:25,25 44:4
48:3,11 54:21
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61:12,23 63:14
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80:25 82:23
87:17 88:14
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96:14 97:6,10
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114:5
good 4:24 10:24
28:18 37:8
55:24 71:15,21
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goods 95:3
governmental
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108:25
governments
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granted 7:16
64:17
graph 91:4
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greater 6:7 21:16
93:12
green 40:5
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58:11
group 101:25
Growth 6:1
42:19
guarantees 78:15
89:18
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21:21 30:21
45:21 52:15
53:17 54:1 55:5
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110:12
guessed 75:7
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H
half 11:11 31:22
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Hancock 19:20
hand 88:14,22
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handed 27:2
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hereto 124:12
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high 77:18 83:17
106:2,20 107:8
116:24
higher 57:5
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highlighted
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history 11:6 43:1
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24:1 26:10,12
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Hoeslcher 17:24
hold 70:2
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Homebuilder's
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hope 58:14
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IL 124:3
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Illinois 124:2
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80:12 93:6,7
98:6 99:11,16
101:19 115:7
117:20 121:16
impacted 106:9
impacting 69:16
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impair 6:24
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impervious 13:6
19:14,22,24,25
20:4 21:23,24
22:17,22,22,23
23:8,9 24:6,9
24:12,21 25:1,2
25:8,18 26:3,5
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117:6,24 118:3
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implementation
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implemented
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impose 28:25
imposes 14:3
24:2
imposing 43:18
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improve 11:20
13:16
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improvement
31:7 33:16
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include 10:8
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24:6 32:11
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incorporated 6:7
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112:14 114:14
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75:15 78:2
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increases 77:10
78:20 81:24
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increasing 87:24
incremental
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increments 87:24
incur 24:14
incurred 106:9
107:5
incurs 106:1
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6:23 90:18,19
independent
119:4,9
indicate 18:14
52:21 59:8 78:7
indicated 72:7
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indicates 32:9
47:9
indicator 86:23
individual 45:9
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individually 54:5
industrial 3:14
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infrastructure
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insufficient
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Investor 88:15
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J 24:16
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7:19
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keeps 74:8
Keller 42:19 43:5
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KELLY 124:2
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kind 17:13 19:11
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knew 38:8 53:16
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19:3 21:21
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35:18 41:7,12
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L
L 24:1
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laid 49:19
land 20:10 25:4
large 11:18,18
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late 40:24
latest 54:16
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League 6:2,5
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legal 8:9,17 9:1
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Leverage 77:17
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likelihood 78:21
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litigation 12:6
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longer 58:18 67:3
longest 59:13
long-term 12:21
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looking 29:17
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lost 32:14
lot 23:7 36:6
45:21 55:5,8
88:16 107:1
117:23
Louis 1:10 3:12
3:18,24 4:2 5:2
5:8,8,25 6:1,2,4
6:5,6,8 7:14 9:6
11:1,15 13:15
20:13 60:13
95:11,14 96:11
97:12,18,18,22
112:10
low 83:17 99:12
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lower 76:19
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Lutheran 6:6
M
M 12:23 28:21
34:18
Mahanta 4:20
Mahfood 3:3
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main 35:21
maintain 11:19
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35:25 59:19
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76:19 116:11
116:13
maintained
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maintaining
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maintenance
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16:18 18:21
19:5 22:20
26:24 27:4 30:2
33:9,11,13,15
33:20 34:21
35:22 36:1,18
36:24 61:5,8
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100:22 101:18
106:21 107:22
109:5
major 19:17 31:5
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majority 52:15
65:22 117:17
making 69:23
119:7,9
manage 56:4,11
managed 25:21
management
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55:18 56:11,13
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managing 59:12
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62:5 88:13 94:2
96:15 104:3
107:20 109:5
110:13 114:12
117:5
provided 16:5
17:13 24:19
25:11 48:18,18
48:22 57:25
102:23 103:5
105:14,16
108:3 110:18
110:25
provides 40:14
76:16 80:10
117:23
providing 11:15
19:6,9 26:23
58:11
provision 6:23
104:5
provisions 26:20
30:4,21 88:20
prudent 80:17
107:10
public 9:3 11:14
12:3,15 14:20
19:5,18 20:18
22:6,10 33:12
33:13 34:21
35:25 36:18
41:15 61:10
80:13 124:21
published 95:6
104:11,23
Pugh 2:8 7:20
TECHNICAL CONFERENCE 4/8/2015
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MIDWEST LITIGATION SERVICES
14:20 85:2,3,6
85:14,17 87:14
91:20,21,23,24
113:21
pulling 55:7
pump 58:16
purported 90:20
purports 76:5
88:14
purpose 8:5
16:20 35:18
purposes 4:22
16:21 24:10
26:23 34:13
42:3
pursuant 11:12
58:6
pursue 113:5
pushed 80:25
pushing 101:22
put 18:5 29:19
32:8 35:20
54:15 55:16
69:11 79:3
80:11 115:19
117:19 118:4
P.C 3:10
p.m 123:3
Q
qualified 55:11
55:12 56:15
57:8
qualify 22:13
quality 35:5
89:10 117:20
quantitative
89:10
quantity 117:19
quarters 52:12
question 15:14
17:1,16 18:6,13
20:19,19 22:16
23:21,23,25
24:22 30:25
32:8 33:18
35:15 38:20
39:21 41:24
42:17,24,25
43:1 45:25
47:24 52:19
56:2 59:7 60:16
60:20 62:11
63:12,22,24
64:3,3 65:17
66:17 68:5
69:10,11 71:21
72:4,6 73:2,17
74:20 78:6 79:4
80:2,3,3 82:21
87:2,9 89:25
90:5 91:1,14,15
94:11,19 96:1,3
96:12 98:5,19
102:10,11
110:1,3,13
111:5,23 114:8
116:8,8 120:14
questions 8:7,15
8:24 9:18,20,21
9:24 10:2 15:8
15:25 16:4,7,8
16:10,14 17:18
17:20,23 28:15
33:23 34:3,4
36:25 37:2,13
37:14,17,24
42:9,11 43:10
44:25 46:8,10
46:22,23 47:2,7
49:10 58:21
59:5,6 64:1
65:13,15 68:3
69:7 70:13,14
71:4,5,9,12,18
72:16,17 73:3,5
73:9,14 75:7
80:21,23 83:2,5
83:6,8,11 84:23
84:24 85:7,8,16
87:13 91:22
92:9,11,18
95:25 99:19,20
99:22 100:6,7
100:14 111:2
116:6 119:17
122:5
quick 15:8 66:17
quickly 80:12
88:18 91:13
quite 70:4 116:21
quorum 4:21
15:5
Q11 23:15
R
R 3:1 43:19
124:2
Raftelis 14:22
rain 20:6
raining 35:24
rains 20:5
raise 19:12,15
30:21,23 33:14
33:19 43:14
raised 33:10,12
45:1
raising 31:12
36:1
ramifications
49:13
ramped 66:8
ramps 56:24
range 29:25
48:14 83:15,19
85:23 114:13
ranges 83:17
116:23
rate 1:8,11 3:3
4:2,3 5:2,6,11
5:12,12,13,15
5:17,24 6:9,10
6:16,17,18 7:2
7:3,3,4,6,8,9,10
7:11,18,21,23
8:1,4,5,8,9,10
8:16,19,25 9:2
9:15,16,17,21
10:20 11:2,2,10
11:21 12:18
13:7,9,23,23,24
13:25 14:3,4,5
14:12,23 15:1
15:24 16:2,6,16
16:16,21,22
17:21 18:11
19:15,22 21:14
21:25 26:13,23
28:7,10 30:9,10
30:18 32:14,20
32:22 33:25
36:10,14 37:12
42:9 43:2,9
46:21 47:9,16
47:20 49:4 52:3
57:6 58:7,24
62:6,20,22,23
63:19 64:12
65:7 68:25 69:1
69:17,18 71:3
71:13 73:1,8
74:13 75:9,11
75:13,14 77:10
78:6 79:1,2,5
80:12 81:3 83:4
83:16 84:1,4,4
85:7 86:12,13
86:19 87:8
88:16 89:19
90:10,14,17
91:22 92:9,21
93:8,9 95:3
96:10 97:10,19
98:1,12 99:16
100:6,18,19,24
100:25 101:2
101:12 102:11
102:12 104:10
105:9,10
106:13 107:13
109:12 110:1,8
110:16,16,17
110:21,25,25
111:6,8,8
114:13,24
115:3,9,17,21
116:22 117:24
118:21 119:6
121:3,5,5,6,12
121:15,17,20
123:1
rated 85:20 86:8
rater 36:7
rates 6:11 14:4
14:13 18:18
36:13 43:19
76:12,17 83:12
83:23 85:19,20
93:7 98:10
104:25 105:22
106:15,18
108:9 112:12
rating 76:5,7,16
76:19,23,24
77:13,14,24
78:4,5,12,13,23
78:24 80:18
87:7 88:13,15
89:2,14,24 90:1
114:20 117:1
ratings 78:12,17
78:18,20 87:19
87:25 88:12
89:3,9
rationale 24:22
86:14 87:20
105:24 111:12
ratios 77:17
reach 24:8 50:10
59:17
reached 20:10
35:18
read 23:12,13,18
23:23,24,25
25:11,15 26:15
26:18 30:1
31:12 33:8
45:17,18 70:6
76:9 77:4,16,25
80:5 114:21
reading 5:1
44:22
ready 15:17 37:5
46:13 70:20,21
72:19
TECHNICAL CONFERENCE 4/8/2015
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MIDWEST LITIGATION SERVICES
reaffirmed 12:10
real 20:20 97:14
realigned 12:9
really 16:2 48:7
48:11 68:20,20
75:24 78:22
100:20,20,25
119:22 120:2
reason 19:1,11
36:1 44:21
reasonable 7:2
14:3 20:21 21:2
24:2 103:19,20
reasons 21:8 24:3
reassessment
112:16
rebuttal 8:12,13
8:15
receipt 6:9
receive 80:13,16
108:18,22
110:6
received 7:3 33:7
53:20 76:7 88:1
111:9 113:17
118:2
receiving 45:19
55:1 68:12
recess 70:17
reclassified
69:20
recognize 81:16
82:3 118:2
recollection
111:14
recommend 6:10
recommendati...
5:11 119:20
recommended
6:16
reconvene 70:21
122:10
record 8:3,21 9:3
11:5 15:3 23:12
23:19 37:19
41:12 42:12
70:19 76:9 77:5
77:16,25 80:5
96:11 97:11
104:20 109:21
114:22
recover 108:16
117:22 118:1
recovered 32:15
108:13
recovery 112:1
113:9
red 72:8 90:18
reduce 29:10
44:11 66:3
76:24 93:6
106:24 115:4
reduced 54:13
78:2 114:20,23
124:8
reducing 35:9
reduction 49:24
refer 19:11,19
21:3 59:10
60:17 71:22
72:1,6,10 88:17
94:19
reference 45:12
72:4 98:14
102:11 113:24
referenced 87:21
104:20
references 90:6
referencing
102:15
referred 28:21
28:21 95:3
reflect 91:12
reflected 39:14
39:16 78:13
104:17 108:13
109:4 113:7
reflecting 102:9
reflects 12:23
47:9 76:11
109:6
refresh 69:10
regard 57:11,11
58:4 70:7
101:18 105:13
108:3 115:16
regarding 5:12
8:4,13,22 14:12
35:15 43:2
101:13 116:9
regards 117:23
regional 6:1
11:15 104:1
regulations 6:25
16:25 17:5 68:7
69:19,22,23
70:1
regulators 39:2
39:16
regulatory 13:19
14:15 16:22
18:20 19:4
22:20 27:1,2
28:19,24 29:13
29:15 45:22
59:24 60:2
61:18,21,21
62:5 65:7 77:8
77:21 93:19,23
109:5 117:9,10
reinvestment
11:19 13:15
related 6:21,23
12:23 95:10
105:3 124:9
relates 107:3
relative 51:1 53:5
55:23 63:2
89:24 100:21
101:4 108:7
124:11
relatively 36:23
release 51:7
relied 102:5
105:22
relief 51:16 67:7
67:17
rely 103:24 105:8
108:2
remained 39:14
remaining 49:5,6
49:22 81:15
remains 10:1
93:16
remarks 14:25
15:1
remember 70:4
109:22
removal 49:15
51:9,13 64:20
67:18 68:2
remove 50:3 67:5
removed 49:18
50:6
removing 107:6
repairs 41:6,7,9
repealed 44:7
repeat 63:12
repeated 24:13
replace 13:9 51:8
report 7:5,9 18:4
24:17 98:2
Reporter 124:1,3
124:4
reports 95:22
represent 5:18
26:12
representation
5:16
representative
5:17
representatives
5:25
representing
37:20
represents 91:5
reprioritize
66:19
request 7:22,24
8:1 10:12 23:3
24:15,19 25:10
62:24 69:11
72:13 75:4
103:12
requested 75:21
90:25 91:6
requesting 75:3
75:17
requests 77:12
require 11:19
27:17 40:2
79:10
required 6:14
9:18 10:8,11
13:1 16:17,19
18:22 35:5 38:8
38:15 39:3,12
43:22 44:8 59:8
59:21,22 62:11
62:16,19 75:21
79:12 81:1
93:24 111:16
116:11
requirement
98:22
requirements
10:13 13:19
14:15 16:25
17:10,11,12
62:5 64:19 77:8
77:11,21 89:8
89:11 114:16
115:23
requires 5:14
12:12 24:10
40:1,4 47:13
requiring 10:13
94:4
reserve 87:19
95:2,4 113:9,16
113:23 116:9
116:16 117:1
reserved 114:3
reserves 113:25
116:25
resident 32:22
45:19
residential 5:19
98:11 99:6
107:8 116:21
118:5,5,6,13
residents 98:16
resolving 25:3
resources 55:16
55:17 56:9,10
TECHNICAL CONFERENCE 4/8/2015
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MIDWEST LITIGATION SERVICES
56:19
respect 20:5
42:22 43:5
56:12 57:12
59:24 69:9
82:22 87:19
110:6
respectfully
10:12
respective 112:9
respectively
77:23
respond 28:14
43:24
responded 7:25
18:6 25:23
110:2
respondents 26:3
responders 25:16
responding
24:14
response 20:23
21:4,5 23:3,4
23:16 24:19
25:10,15 42:18
42:23,25 43:3
45:1,1 60:6,19
80:5,6 87:21
98:9 110:14
111:3,10
responses 7:23
16:5
responsibility
11:8 105:12
118:2
responsible
61:20
responsive 63:22
rest 20:10 93:19
96:15
restricted 94:8
result 50:5 66:20
77:20 78:5
99:14 102:22
results 66:18
67:1,2,17
105:14 106:6
121:16
retained 121:6
revenue 16:17
29:16,23 30:13
32:1 62:17
74:16,25 79:10
81:5,13,14,23
81:24 85:21
86:9,9 87:1
88:22 89:11
90:9,20 94:3
96:12 100:17
100:21 101:7
106:16 108:21
114:14,16
115:14,23
116:18 117:2,7
revenues 21:9
24:5 29:18
32:17 76:14
100:24 101:10
103:20 108:10
112:8 113:19
review 5:11
27:17 42:21
53:13 67:11
110:22
reviewing 100:18
Revolving 74:17
75:1
rich 13:3 14:18
15:13 39:22,24
39:25 42:4,5
45:25 46:15
82:19 93:25
Richard 2:5 7:19
47:5
right 4:25 16:9
18:13 22:25
23:2,18 28:5,7
28:10 31:4,23
32:7 34:2 35:11
41:23 44:18
46:12,22 55:2
59:24 60:11
63:14,25 64:23
66:8 68:11,15
68:19 69:22
70:1,12,16
78:10 85:21
86:18 87:24
88:12 90:4,12
95:15 97:1,2
102:14 107:13
111:24 113:8
114:1,8 115:13
122:8,15,17
rights 27:10
rises 86:13
risk 43:25 87:8
116:17,24
River 20:14
rivers 35:3
road 41:20,22
roads 35:25
role 18:2 21:19
21:21 97:1
110:10
roll 4:3 101:20
rolling 44:9
rooftops 20:3
room 58:25
84:11
roughly 83:19
rounding 47:20
rule 58:10,12,18
59:17
rules 7:10 9:17
10:9,9 17:5
ruling 13:5,7
run 30:11,12
53:12 69:2
117:20
runoff 45:15
66:3 117:19
rush 62:14
Russell 3:2 5:1
S
sales 101:24
sample 107:10
San 104:3
sanitary 11:8
12:21 40:6
41:22 45:14
48:5,8,13 49:15
49:15,17 50:2
50:13 51:14,25
52:4,13,15 57:2
65:23 66:22,24
67:24 69:16
satisfy 89:7
savings 67:25
93:18,18,23
94:4,6
saying 74:8
109:8 120:15
says 29:6 33:8
50:21 81:4,13
81:15
scale 86:7,22
scales 86:18
scenario 20:17
25:1 32:18 62:9
67:10,22
scenarios 32:16
100:19
schedule 8:12,20
12:17 24:18
28:11,24 39:13
39:14 48:6,13
50:2,4 59:21
64:5 65:25 91:9
95:10,13,17
98:22 99:5
100:25
scheduled 48:12
49:23 122:9,17
122:18,18
schedules 31:12
38:18,21,21
39:3,16 40:6,8
40:10 42:6 48:4
50:10 96:16
scheduling 39:1
Schneider 3:5
4:13,14 5:5
64:1,2,8,21,25
65:12 116:7
117:3
Schoedel 3:5
4:17,18 5:5
121:1,2,9,14
122:4,23
school 109:1
scope 19:10
score 88:13,22
seal 124:16
second 7:24
10:18 17:6 57:6
77:3 96:19
114:21 122:24
secretary 14:19
78:11
section 10:13
23:15 26:19
30:1,4,7 33:8
40:24
security 86:8
95:4
see 24:6 53:13
57:1,3,4 66:4
71:21 72:12
seeing 55:3 65:22
104:18
seek 27:7,20
29:10
seeking 28:8 74:1
89:1
seen 81:21 103:9
103:21 105:3,5
select 5:15
senior 6:6 74:16
74:25 78:7,19
83:12,17,18,23
84:8,9,15 87:1
87:5
sense 108:8
sensitivity 77:24
sent 31:22 33:14
sentence 25:14
separate 34:11
44:3 45:5 60:24
series 9:3 86:20
serve 5:3 83:21
service 11:22
13:18,20 21:15
22:11,15,15
TECHNICAL CONFERENCE 4/8/2015
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MIDWEST LITIGATION SERVICES
45:19 59:25
60:2 71:23 72:7
72:8 76:13,15
77:9 79:11
80:12 88:15
101:1,5 105:21
106:10,15
107:13,16,20
108:19 121:19
services 5:17 6:6
6:21 17:12 19:9
19:10 22:7,9,10
22:19 23:1 25:7
29:10 45:15
57:23 61:18,21
95:3 104:6
108:22 109:3
serving 11:2
14:20,23
sessions 9:4
set 19:2 24:9 45:9
49:16 69:1
78:16 100:23
112:12 124:15
sets 28:22 112:15
setting 8:4 11:2
seven 31:20,22
60:24 61:2
sewage 118:18,22
sewer 1:10 4:2
5:3 6:21 9:6
11:1,7,10,14,15
11:20 12:20,21
22:21 36:3 40:7
40:7 41:21,22
45:15,16 48:5,6
48:8,10,12
49:15,17,18
50:2,13 51:7,25
52:4,6,14,15
54:8 57:2,12,13
58:11,13 61:10
61:10 65:23
66:1,2,22 67:7
67:24 69:16
86:9 89:20
104:1,4 110:13
sewers 11:9
19:18 51:8,9,11
share 72:11
sharing 82:15,18
82:22
sheet 94:23
short 27:2
shortfall 108:22
shorthand 30:4
32:13 94:25
124:2
show 15:4 42:12
105:2
showing 104:14
side 13:4 18:25
31:6 48:8 49:15
49:18 50:2
51:25 52:9
55:18,22 56:11
66:25 67:24
109:19,19,20
109:22,24
110:10 115:19
sides 109:23
sign 12:7
significant 80:12
107:9
similar 17:4,11
50:18 51:3 52:3
53:1 101:1,3
118:19
simple 24:23
56:3
simply 18:3 44:7
44:11 63:18
95:11
single 118:5
sir 10:5 15:23
18:8,12,15 21:6
21:10 23:22
25:5,9,19 27:19
28:10 29:2,4,8
30:6 31:9 32:7
33:22 35:14
42:10 58:23
69:8 70:16
73:10,15 80:20
87:15 105:1
sits 68:24
sitting 64:23
size 11:11,18
21:17,24 55:23
60:9 63:3 75:17
75:18
sizes 104:13
skillfully 65:16
skip 88:17
Slack 3:3 4:19
15:4
slightly 47:19
51:6
sludge 69:18
Smith 3:25
smooth 114:12
Snoke 2:7 7:20
14:19 72:22,23
72:25 73:12
81:7,11,20 82:9
82:13,25 87:25
Snook 99:3,5
soak 20:1
social 95:4
socioeconomic
5:21
soil 20:9
solely 33:12
solidified 38:11
38:13
solvents 106:5,6
somebody 26:11
somewhat
118:19
some-odd 104:12
sooner 80:13
sorry 20:23 29:6
33:21 41:17
43:22 62:13,13
72:1 82:25 83:3
88:5 91:2 97:25
98:23 112:13
112:17 114:1
115:9
sort 16:23 57:21
sought 105:11
source 60:1
sources 95:5
South 3:23
southern 104:4
sovereign 12:11
speak 82:10
special 5:8 30:16
43:13
specialized 54:9
specific 28:21
30:1 36:1 40:2
40:2,18 43:4
48:4 49:19,19
50:10,22 53:11
57:8 89:17
110:6
specifically 111:7
specifications
56:17,18
spend 12:12
33:13,20 44:19
47:13 57:5 75:9
79:22 93:12
spending 40:3,4
75:14 79:15,16
spent 40:9 45:21
49:7 56:22
92:22 94:10
spill 96:3
spin 56:25
spite 12:6
split 107:18
108:4
spoke 59:1 63:2
87:25
spot 62:13
Sprague 2:6 7:19
13:3 14:19
70:23,24 71:2,4
71:5
SPRAUGE
71:16
spread 33:2
85:23 86:5,10
86:25
spreads 85:19
86:2,3,17 87:3
87:4,17
SRF 83:12 84:8,9
85:21
SSO 41:12 50:13
50:16,24 52:9
SSOs 77:8
St 1:10 3:12,18
3:24 4:2 5:2,8,8
5:25 6:1,2,4,5,6
6:7 7:14 9:6
11:1,15 13:15
20:13 60:13
95:11,14 96:11
97:12,18,18,22
112:10
stability 76:16
stable 76:11 77:2
77:14 89:22
stack 21:1
staff 18:6 56:5,10
101:12 105:12
105:17 108:2
119:19
staffer 105:10
standard 54:8
76:11
standards 17:5
95:23 121:22
standpoint 109:3
Stannard 2:10
7:20 14:22
100:1,2,5,8,12
100:15 110:1
116:3,4,6,7,15
117:5,8 119:1
119:11,22
120:11,18,22
120:24 121:2,4
121:11,18
start 18:24 54:10
75:11 85:8
109:8,10 110:3
110:21 113:15
started 38:6,9,18
39:9 88:2
starting 28:4
52:6
TECHNICAL CONFERENCE 4/8/2015
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MIDWEST LITIGATION SERVICES
starts 19:6 28:9
state 6:25 11:24
12:6,9,11 16:24
17:11 36:11,14
42:17 68:13
74:17 75:1 84:2
85:23 100:16
101:23 103:15
118:20
statement 5:1
6:18 10:23 11:3
15:7,17
states 11:24 24:1
103:16,17,22
103:24 104:13
stations 58:16
statistic 95:15
statute 45:13,18
statutory 6:19
110:5
stay 69:22
stays 115:10
steady 53:13
steel 54:3
Stein 3:6 4:11,12
5:4 34:16,16,24
68:4,5 69:6,10
82:12,13,21
83:1
step 18:16,17
19:1,12,16
steps 63:11
110:24 115:21
Steve 3:3 4:10,19
15:4
stipulated 40:22
49:12
stop 43:18 94:25
112:3
storage 51:16
store 51:18
storm 5:12 6:11
11:9,21,22 13:4
13:17,19,20,21
13:25 14:8,15
16:20 18:16,20
18:23,25 19:3,7
19:9,14,18 20:5
20:15,18 21:9
21:12,18,20,22
22:1,9,10,13,15
22:15,21 24:2,5
24:23 25:11
28:12,20,23
29:1 30:9 31:6
32:1,9 33:16
34:17,20,21,23
35:2,8,22,25
36:2,22 42:20
43:11,20 44:1
45:15 46:3
59:24 61:5
62:10 63:10
66:23 67:1 72:7
79:5,8,9,12,17
82:13,16 91:18
98:14 107:12
107:16,19,21
107:23 108:5
108:18 109:2,6
113:9,21
115:14,15
117:8,11,14,18
117:19 118:3
straight 86:21
strain 55:10
stream 20:11
117:2
streams 20:12
35:10
street 3:11
117:12,13
strength 76:15
88:19 105:25
106:4 107:7,11
string 106:2,20
107:8
stringent 69:22
strong 76:13
structure 13:9
14:1 106:7
structures
117:24,25
studied 70:10
study 96:6,7,8,9
105:21 106:15
Stump 3:9 4:5,22
9:16 16:2 41:17
122:12,15
subdistrict 26:22
28:21 34:12,13
44:16 45:2,3,9
45:10 120:4
subdistricts 34:5
44:3,17 45:6
subject 27:20
29:3,25 30:2
31:9
submit 7:12 8:11
8:20
submits 112:1
submittal 110:15
submitted 7:17
7:21,24 8:1
50:14 110:22
110:22
submitting 8:14
8:23
subordinate 75:1
83:18
subordinated
83:25
subparagraph
26:18
subsidized 84:2
substantial 77:10
106:23
successful 67:25
successfully 13:1
sufficient 19:2,4
62:5 63:9
suggested 30:20
95:2
suggesting 91:10
suitable 24:9
Suite 3:17,23
summaries 96:16
102:25 103:9
summary 11:6
24:18 81:2,3
97:12 99:15
supplement 56:5
56:10
supplemental
90:12
supplemented
55:17
support 76:14
77:12 79:10
81:1 103:25
105:6 109:6
110:16 114:23
supported 79:14
121:21
supporting
103:10,11
supports 24:18
Supreme 13:5
14:7 36:8
surcharge 44:1
106:19,20,20
107:3,9
surcharges
105:25 106:3
106:24 107:5
sure 17:1,3 21:21
36:19,19 55:4
56:16 63:19,21
68:1 72:2 76:11
78:2 82:18 87:2
91:14 102:17
103:6 108:13
113:3
surface 20:2 24:9
24:12
surfaces 20:2,3
surrebuttal 8:20
8:22,23
survey 25:12,16
25:20 104:10
104:19,22
117:22
surveys 71:24
72:7,10,10,14
Susan 2:4 3:7
7:19 9:7 10:25
20:24 26:10
30:25 33:24
37:22
suspect 19:8
suspended 106:5
106:6
sworn 16:12
37:22 47:5
71:16 73:12
85:14 92:16
100:12 124:6
system 11:18
17:4 18:23 19:5
19:5 22:21
33:13,17 34:21
34:23 35:2,25
51:10,12,13,19
66:24 67:2,6
88:18 101:6
106:17 116:22
117:11 118:1,3
119:13
systems 6:21
11:14 58:13
110:14 116:19
118:17
T
table 28:24 74:12
74:15 78:9 99:5
120:3
tail 18:14
take 19:16 41:25
43:11 53:4
63:10 67:18
76:4 87:18
89:17 114:19
117:13 118:4
118:21
taken 12:25
54:23 55:21
70:18 115:22
124:7,11
takes 91:7
talk 21:3 31:4
38:1 75:24
82:13 107:17
111:25
talked 49:10,11
TECHNICAL CONFERENCE 4/8/2015
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75:23 86:24
87:17 107:1
talking 21:1 40:6
42:5 44:17
58:15 86:20
90:5 102:17
113:9 114:16
talks 64:3
target 86:6 116:9
tasked 35:9,13
tax 5:13 6:11
11:21 13:8,21
18:19,21 19:21
19:23 21:18
22:12,17 23:7
24:2,3,4,23
25:1,7 27:1,14
27:15,16 28:3
28:19,21,21,23
28:24 29:1,13
30:7 31:21,22
33:14 34:6 35:8
35:12,22 36:1
43:13 45:14,20
45:23 46:2,4
59:25 61:24,24
62:1 82:23
99:12 108:9,12
108:14,14,15
108:24,25
109:2,11
111:25 112:8
112:12,14
113:9,17,19
118:19,20
120:5,5,8,19,20
120:22
taxable 26:21
97:14
taxation 26:23
taxed 35:12
109:7
taxes 13:10 20:20
22:7 26:21
27:23,24 29:17
30:2 33:12
98:14 108:19
108:23 113:13
117:6 118:17
118:20,25
120:1,4,11
taxing 14:1,8
22:4 29:14
108:10,14,16
109:3,7
taxpayers 20:21
21:14
team 57:15
technical 1:15
4:1,23,25 8:3,6
8:10,12,14,17
8:21,23 13:11
52:25 122:10
122:13,16
tell 48:24 51:25
65:4 67:5 73:19
96:23
tells 74:5
ten 18:20 27:7,15
27:16 31:8 44:6
65:19 106:18
120:21
tend 15:10 57:3
term 19:22 60:4
62:20
terminology 41:8
terms 32:14 35:5
40:18 79:24
86:10,12 106:2
test 66:18 106:14
106:25
testified 16:13,16
18:5 27:1,6
37:22 47:5
71:16 73:12
85:14 92:16
100:12 111:9
testimony 1:12
7:18 8:4,12,14
8:15,20,22,24
10:7,10 13:3
14:11 15:13,18
15:20,25 16:4
16:16 18:9 22:6
24:1 34:25 37:6
37:9 42:14
46:14,17 47:9
48:17,17 52:17
59:6,9 60:4,17
62:10 64:3
70:22,25 71:22
72:23 73:20
80:2 81:10 85:3
85:18 87:16
90:7 92:5,20
93:17 94:19
96:8 98:5 100:2
100:16 101:23
103:14 104:21
104:24 110:15
110:17,18,21
124:5,6
thank 4:24 11:1
15:2,3 17:16,17
23:25 25:5
28:10 33:22
34:14,24 36:25
37:5,12,25 42:8
46:2,8,9,11,21
47:8 58:20
63:25 65:12
68:3 69:6,14
70:16,24 71:3
72:14,15 80:20
80:22 83:1,9,10
84:22,25 85:17
87:12 91:20,21
91:23,24 92:19
94:12,14 99:11
99:18,20,24
100:15 109:14
109:17 114:1
116:2,2 117:3
122:4
theirs 103:1
Theresa 2:9 7:20
14:21 92:4,16
thing 25:23
44:16 68:24
102:18
things 18:5 20:2
20:3 23:9 36:17
40:5,5 54:7
67:3 70:9,9
82:6 101:7,20
118:16 120:9
120:12
think 15:12,14
19:12,20 20:17
23:23 31:21
36:7 38:24
47:19 48:18
52:11,12 55:3
56:22 58:19
60:24 61:1
64:11 66:5
69:17 70:10,20
72:3 74:11,12
74:18,19,20
75:16,19 79:12
81:1 82:4 83:7
86:24 87:10
88:1,11 91:12
94:10 99:3
108:13,24
113:8 117:8
third 8:1 118:14
thought 35:1
67:11 111:24
thoughts 35:20
thousand 31:8
96:20
three 6:22 9:19
10:2 21:8 24:3
42:22 51:15
52:12 69:13
83:6 89:4 96:16
97:6 109:18
122:18
thresh 70:2
thrown 44:20
81:3
thumb 58:10,13
58:18 59:17
Tim 2:7 7:20
14:19 72:21
73:12 86:24
99:3
time 4:21 6:19,20
7:1,1,8 9:19,22
9:25,25 11:13
16:7 17:19
23:14 27:14
29:11 30:14
38:12 39:23
40:12,23 42:21
43:16,24 45:21
48:4,9,11 50:8
53:12,16 64:15
64:18,19 73:2
78:14 82:15
83:16 84:25
90:10,12 92:10
92:20 112:14
113:13 115:20
121:12 122:16
122:17
timelines 41:19
41:24
times 11:17
17:24 49:10
78:7,8,9,9,18
78:19 109:18
timing 49:23
113:14
tip 40:24
today 12:14
14:11 35:23,23
58:11 61:8
86:14 92:20
122:14
Toenjes 4:15
told 43:18
Tomazi 3:4 4:15
4:16 5:5 15:8
34:25 35:13
65:15 66:11,16
80:23,24 81:8
81:12,25 82:11
tomorrow
122:10
top 57:7 60:10
77:3 78:1
total 9:18 52:11
74:10 78:9
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MIDWEST LITIGATION SERVICES
81:14 96:18
97:14 106:5,11
118:8
touching 19:6
track 113:2
train 119:15
transcript 124:6
transferred
108:17
transition 120:4
travel 20:12
treasurer 14:20
78:11
treat 21:12 51:19
treating 106:11
treatment 11:15
58:16 68:9,10
68:14,18,23
70:9 106:1,3,9
106:12,22,23
107:1,4
trend 76:22
102:8 117:18
118:24 119:1
trending 53:11
trends 103:17,21
104:18
trigger 68:7
triple 76:7 88:23
88:23
trouble 111:6
true 54:9 83:24
86:22
trustees 5:14
6:11,17 7:6,7
27:18 65:3
118:22
truth 15:21,21,22
37:9,10,10
46:18,18,19
70:25,25 71:1
72:24,24,24
85:4,4,5 92:6,6
92:7 100:3,3,4
try 18:4 21:2
91:2 98:19
trying 86:23
95:11 116:16
tune 69:17
tunnel 57:5,13
tunneling 58:5
tunnels 58:9,14
turn 23:3 31:1
96:13,23 97:2
turning 43:11
twenty 33:4
twice 113:14
two 6:20 11:17
15:8 18:19
19:14,19 24:11
27:2 28:22
29:11 32:8
45:23 47:20
51:10 60:6 61:1
65:15 67:2 69:2
72:10,11 75:20
77:7 78:1 81:18
83:19,25,25
89:3 95:2 96:1
96:12 100:20
102:15 104:11
108:8 109:23
111:8 115:22
two-year 76:18
type 22:4 53:24
55:8 86:8,9,9
117:21
types 20:3 29:24
40:19 41:1 51:2
51:7 93:22
typewriting
124:8
typical 116:13
U
Uh-huh 116:1
ultimately 20:13
underlying 103:7
understand 17:1
18:2 27:19
31:16 40:10
60:1 75:10 82:8
82:11 87:2
92:20 93:17
109:23 112:2
120:14
understanding
27:19 28:23
32:4 42:4 88:9
89:1 91:14
92:22 105:20
112:7,10,11
113:22 120:18
understood
44:25 111:24
undertake
101:17
undertook 42:21
underway 13:14
57:6
unfunded 19:18
uniform 11:21,22
unit 53:7,14
118:5
United 11:23
103:16,17,22
103:24 104:12
units 101:4
106:10
universities
109:1
unmetered 101:5
unusually 116:24
Unverferth 2:5
7:19 13:3 14:18
15:13 39:22
42:4 46:1,16,17
46:20,22 47:5,8
58:25 64:2,7,10
64:23 65:6,21
66:14,21 67:14
67:24 68:5,11
69:14 75:23
84:12 93:25
Unverferth's
69:10
upcoming 68:7
upfront 48:11
upstanding
90:15
upwards 19:15
urban 95:16,17
103:16,23
104:6,8
use 13:8 19:22
25:8 26:7 29:22
35:8,24 36:2
43:25 65:1
69:24 73:21
80:6,14 84:12
84:17 94:4 95:5
95:17 96:14
102:2 115:13
117:17 118:3
118:17 119:3
119:11,14
useful 59:13,19
user 25:16
users 5:16,18,19
80:13,14
uses 36:20
utilities 103:16
103:24 104:2
104:13 116:16
119:15
utility 25:12 43:6
43:12 85:20
86:9 88:22
117:21
utilize 54:7
utilized 91:8,13
103:8
Utilizing 80:9
V
valorem 19:23
20:20 22:17
23:6 24:4 29:17
30:2 43:20
118:19
valuation 26:25
63:9 96:2
value 13:8 14:8
21:16,17 24:24
35:16 109:7
variability 117:2
various 34:5
104:13,25
106:3,17
vary 116:20,23
varying 120:4
Veatch 9:14
25:12,16
117:22
verify 41:14
102:14,14
verse 51:22
versus 13:4 35:16
51:21 52:1
80:10
Vertex 101:25
102:21 103:2
viable 84:12
vice 5:1 95:1
view 19:16
violation 6:22
44:21 59:23
violations 11:25
viruses 70:7
visited 44:1
volume 21:24
102:3 106:4
116:19
vote 27:14 29:15
36:10 44:2
voted 13:6 24:6
29:20 36:14
112:2,3,13
voter 27:7,9 29:3
43:19,22 77:11
119:25
voters 5:8 6:2
31:8 32:10
34:20 75:5,6
112:1,13
118:21 119:21
119:24
W
wait 27:10
waive 10:13
waived 12:11
walk 73:20
want 23:13 42:12
44:24 49:10
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MIDWEST LITIGATION SERVICES
73:20 76:1,8
79:3 82:13 89:9
96:15 98:19
102:17 111:25
wanted 79:9
111:7 115:18
wasn't 79:18
waste 94:9
104:10 106:2,2
107:11 114:16
wastewater 1:11
5:12 6:11 11:20
12:18 13:13,16
13:24 14:2,5
32:8,11,23
42:18 43:1,2,6
43:9 45:19
52:13,18 59:5
66:25 81:5
100:16 101:24
103:17 104:13
106:9 107:7,15
107:19,21,23
108:5 113:21
114:9 115:1,11
115:11 116:18
116:18 121:22
water 5:12 6:11
11:9,21,22,25
13:4,17,19,20
13:21,25 14:8
14:15 16:19,20
18:16,20,23,25
19:3,7,9,14
20:1,5,9,11,15
20:18 21:9,12
21:18,20,22
22:1,9,10,13,15
22:15 24:2,5,23
25:12 28:12,20
28:23 29:1 30:9
31:6 32:2,9
33:17 34:17,20
34:21,23 35:2,6
35:8,23,25 36:7
36:22 42:21
43:11,20 44:1
45:15 46:3
59:24 61:5
62:10 63:10
66:23 67:1 72:7
79:5,8,9,13,17
82:14,16 89:20
91:18 94:9 96:3
98:14 104:2,4,9
104:10,10,13
104:15 107:12
107:16,19,21
107:24 108:5
108:18 109:2,6
113:9,21
114:17 115:14
115:15 116:19
116:23 117:9
117:11,11,18
117:19 118:3
118:18,22
waters 68:13
way 22:7 26:17
32:18 34:19
36:5,21 44:22
53:11 80:4 88:6
88:21 119:20
122:2
ways 29:24 67:23
117:8
website 41:16
weeks 104:23
welcome 116:4
went 36:5 52:7
64:25 87:3
119:24
west 6:6 104:3
we'll 15:25 28:2
37:4 39:24
41:14 52:5 53:6
53:14 94:22
110:20,24
we're 18:18
19:10,21 22:20
22:25 29:23
31:21 36:18
40:6 47:21 55:1
55:3 64:13,14
66:8,8,8 67:25
68:14,19,24
69:15,22 70:1
70:12,20,20
75:16 80:25
83:22 84:1
86:19 93:11
102:17 104:18
109:22,23
113:9 114:16
we've 17:24,25
32:8 47:12
48:18,23 53:12
56:6 63:19
64:14 65:22
77:15 79:14
83:7 94:14
109:18 119:20
122:13
WHEREOF
124:15
Why'd 109:19
wide 13:8,21,22
18:19,22,24
19:7 29:1,19
34:20,23 36:22
widely 84:7
widely-used 80:8
William 2:10
7:20 14:22
16:12 100:12
Williams 4:20
willing 72:11
wish 9:2
wishes 94:7
wishing 15:6,16
Withdrawn
109:20
witness 46:12
70:23 72:16,21
85:1 91:23
99:25 124:4,7
124:15
witnesses 2:2
14:16 113:24
122:9
Women 6:2
wonder 31:4
114:21
wondered 77:4
wondering 55:9
words 48:7 50:7
51:16 53:23
54:18 59:15
63:20 65:18,24
66:4 67:8,16
68:20 69:19
92:23 93:12
work 13:1,22
24:17 37:8 38:8
38:12,15 39:12
39:14,16 40:11
41:7,9 45:7
48:5 52:14,25
53:7 55:5,8,11
55:12 56:11
57:13,15,18,19
57:25 58:1
69:24,25 102:5
worked 88:3
workers 54:24
working 88:2
113:25 114:1
116:12
Works 104:11
worksheet
121:13
world 84:6
worldwide 80:9
worries 91:4
worrying 45:22
worst 67:22
wouldn't 36:13
68:25 103:7
109:10
write 34:1
writing 10:10
written 86:7
wrong 62:13
119:6
X
X 2:1 49:25
Y
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yard 36:3
yeah 26:11 32:21
34:25 35:7,20
54:15 61:2
65:15 81:20
83:7 92:15
117:8
year 12:13 15:10
19:13,16 24:13
27:11,22 28:4,6
32:21 38:3 39:8
47:14 48:19,21
49:20 50:25
51:5,25 52:9
53:9,10 55:24
56:23,23 58:15
58:17 62:20
63:9,9,9,17
68:6,15 78:8,8
79:6 85:24,24
86:4,5,6 90:16
93:3 96:4 97:6
97:6 98:21,21
98:21,25,25
106:14,15,25
106:25 112:19
113:14,16
114:4
years 12:2,24
22:5 31:20
32:24 33:4,5
38:14,18,20
42:1,2,2 47:17
48:15,20,22,24
49:2,5,6 51:1
52:2 55:6,25
58:12 59:16,16
64:24 65:18,19
65:24 66:5,7,10
69:3,4 77:19,23
79:24,24 84:9
84:10,14,14,16
84:20 86:11,22
87:22 93:13
96:6 97:6 98:10
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98:22 100:18
102:3,8 104:11
104:16 111:18
117:9
yield 85:19 86:2
86:3,17,19,25
87:3,4,17
yields 86:7,25
87:3,4,7
Z
zone 95:16
zoned 118:12
zoning 118:11
Zweig 13:4 42:23
43:4,8,23
$
$1 47:18
$1,400 82:2
$1.01 77:10
$1.5 48:22 59:7
$100 31:14 63:14
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$15 79:20
$16 79:21
$17 69:17
$19.75 99:7,9
$2 47:21
$2,011 12:13
$2,200 77:18
$200 52:12
$21,906,804,629
97:2
$22 96:20
$250 56:22
$26 19:13
$260 93:5
$27 19:13
$288 73:21
$3,223,496,948
97:15
$3,403,588,629
97:14
$3.60 98:17 99:7
99:7
$300 52:12
$31 115:1
$360 74:3
$4.7 12:13 15:9
39:5,11,19
47:13,21,25
65:21
$40 32:23
$450 56:23
$462 81:16
$50.08 99:7
$60 32:25
$80 19:15
$800 73:24
$85 79:23
$900 73:25 75:6
81:5
$918 74:16
$945 73:22
$96 33:1
$971 64:21
0
0 44:9,11
0.01987 19:21
0.197 35:7 61:24
120:6
0.4 85:24
0.7 115:2
0.75 101:8
0197 28:20
01987 19:19
084-004498
124:3
1
1 1:15 8:13
112:12,17,18
113:1,15
122:19
1.25 85:24
1.3 82:1
1.6 78:19
1.8 78:9,19
1.820 82:3
1.9 78:9
10 12:4 20:19
23:3,21 26:24
27:3,10,11 29:6
29:6 31:13,13
31:21,22 33:9,9
33:14 34:17
42:2 43:14,19
44:4,19,23
45:23 46:3 63:8
63:14 65:24
77:22 79:19
82:23 89:22
94:19 114:15
115:5,22
120:16,22
10th 124:16
10.75 100:17
100 26:24 51:24
52:8 55:25
58:12,15 59:16
59:16 63:8
66:13 84:14
1010 124:4
11 9:4 20:19
52:19 90:5
110:3 114:10
12 20:19 48:21
71:21 80:3
81:10 97:7,7
103:14 110:13
120 3:23
125 87:24
13 42:2 47:17
48:21 49:2 51:1
51:3 64:3,5,9
97:7 111:2
14 30:4,7 56:23
90:12 97:7,15
111:2 114:10
15 2:3 49:5,6,21
77:14 78:6
79:24 81:15
89:25 103:14
104:16 111:2
16 32:22 47:17
48:22 49:2 51:1
51:3,22,24,25
52:8,10 57:2
64:5,9 68:15
85:24 93:3,4
17 7:21 8:11
31:20 50:25
51:22 52:3 57:2
78:8 86:4,17
91:7 93:13
102:3 110:1
112:23,25
18 31:20 52:3
57:2,3 69:12
100:18
19 31:20 57:4
59:9 86:4,17
19.8 74:5
1954 5:9 11:13
43:21
1956 11:13
1980s 14:9
1988 44:2
1997 14:7
2
2 18:13 35:11
38:14 59:9,25
61:24 85:18
120:5,19
2.4 78:18
2.5 78:7
2.8 78:7
2.9 78:18
20 8:22 26:18,21
31:20 33:8 51:1
56:23 72:1
77:22 78:8 84:9
85:25 93:13
100:18 102:4
102:11 104:16
2000 5:10
2004 90:10
2007 11:23 12:7
45:21
2008 45:21
2009 12:10
2010 39:6 82:1
2011 12:3,4 39:6
39:7 88:11
2012 12:4,8 38:6
88:2 96:19 97:4
97:14,16,20
2013 7:4,5,11
50:14 53:21
77:1 88:1,7
97:2,4,14,20,20
114:25 115:2
2014 25:11,15
50:14 71:24
81:10 88:16
95:6 97:3,20
98:23,23 99:2
104:22
2015 1:11,16
7:17,21,22,23
7:25,25 8:11,13
8:19,22 9:4,5
53:20 79:22
90:16 96:7
124:16
2016 27:21,22,23
28:1,3,4,9
79:22 96:7
111:16 112:2
112:13 114:25
2017 27:21,24
28:3,5,8,9
47:10 49:25
112:17,18,20
113:6
2018 50:1 113:7
113:7
2020 32:24,25
47:10 49:17
90:16
2024 95:6
21 30:16 85:18
88:21 98:6
211 3:17
213 76:5
22 8:22 62:11
23 12:13 15:9
38:3,18,20 39:8
41:25 44:3
47:14 48:15
49:20 65:18
66:7 98:6
TECHNICAL CONFERENCE 4/8/2015
www.midwestlitigation.com Phone: 1.800.280.3376 Fax: 314.644.1334
MIDWEST LITIGATION SERVICES
24 49:2
24.8 74:7
240 113:10,18
25 58:17 62:11
62:13 84:14
96:4 111:5
259-2317 3:16
26 7:4,5,17
27 7:22 12:4,8
29 8:13 116:8
122:17,19
29%77:22
3
3 7:25 20:19
26:14 81:4
87:25 106:24
3A 10:13 24:7
3,000 11:9
3,600 36:14
3.020 26:19
3.02020 44:21
3.2 81:4
30 7:23 22:5
58:17 74:8,21
84:9,14,16,20
86:20 98:5
112:20 114:8
122:18
30,000 28:17
300 104:12
31 27:25 96:19
97:2 113:1
314 3:13,16,22
36 2:4
360 74:15
3600 3:17
369 96:20
37 81:12
4
4 7:11 12:3 21:3
26:17 44:4
71:22 76:8
85:18 110:3
4.4 90:15
4.8 74:12
40 86:21 87:22
410 78:9
416 74:12
418 90:15
441 32:9
45 90:6 113:23
114:5 116:11
45-day 7:9
46 2:5
47 41:17
47A 41:17
48 41:17 76:4
49 77:1
5
5 33:19 44:20
85:18 96:4
5-1 28:11,11
5:06 123:3
50 55:24 77:13
114:19
55.2 74:6
550 90:5,7
113:23
573 96:20
6
6 18:13 42:17
64:13,21 70:17
71:22 72:1 81:4
93:18 100:15
6,300 11:8
60 65:18 113:23
114:5 116:9,24
621-2939 3:13
63101 3:12
63102 3:18
63105 3:24
65 90:6
67%77:22
7
7 5:10 7:25 18:13
18:13 26:7
73:17 101:23
7.1 94:22
7.1.1 105:2,19
111:7
7.1.2 102:13,14
103:4
7.1.3 102:13
103:4
70 2:6 31:13 74:8
74:21,24 79:5
79:19
70/30 74:10,12
74:19,23
700 3:23
714 3:11
719-3784 3:22
72 2:7
79 11:14
8
8 1:16 8:19 25:10
26:17 27:10
48:19,20 49:2
65:24 66:5,9
96:14 98:5
103:14
8th 12:10
8.1.1 111:7
8.1.2 102:11
8.1.3 102:11
80 66:13
84 2:8 24:16
85 49:17,21,24
50:7 65:25
87 15:2
879 96:20
88 33:25
89 88:16,16
9
9 5:9 9:5 62:11
104:24 122:10
122:18
9.8 114:25
90 25:16 26:3,7
89:20 116:25
900 75:3
91 2:9 95:19
91A 95:22
92 96:10
93 97:10
95 66:15
971 47:19 64:12
99 2:10