HomeMy Public PortalAboutMinutes, August 14-15th, 2023 Deliberations MeetingMINUTES OF THE MEETING OF THE RATE COMMISSION
OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT
The Members of the Rate Commission of the Metropolitan St. Louis Sewer District met on August
14, 2023, at 8:00 a.m. for deliberations at the District’s Administrative Offices at 2350 Market
Street, Room 109, in St. Louis, Missouri. Commissioners Muren, Clarke, Croyle, Goss, Jearls,
Mahfood, Palans, Perkins, and Stein in person. Commissioner Toenjes arrived at 8:45 a.m.
Commissioners Dotson, Faul, Moynihan, and Ziegler attended via videoconference.
Also present were Brian Hoelscher, Executive Director; and Susan Myers, General Counsel of the
Metropolitan St. Louis Sewer District (the “District”); Lisa O. Stump and Brian J. Malone of
Lashly & Baer, P.C., Counsel for the Rate Commission; and Pamela Lemoine of Bums &
McDonnell; and Anna White of Black & Veatch; Rate Consultants to the Rate Commission.
Agenda Item 1 - Call to Order
Chairman Mr. Toenjes called the meeting to order at 8:00 a.m. Secretary Clarke called the roll and
declared that a quorum was present.
Agenda Item 2 - Approval of Minutes
Draft minutes from the meeting of August 7, 2023 were circulated. Commissioner Stein made a
motion to approve the minutes. After the motion was seconded by Commissioner Croyle, a voice
vote was taken. All Commissioners present voted Aye. No Commissioners voted Nay. No
abstentions.
Agenda Item 3 - Deliberations
The Rate Commission began its deliberations regarding the Wastewater Rate Change Proposal.
Under Criteria I, Commissioner Goss made a motion to table, pending additional information from
MSD. After the motion was seconded, a roll call vote was taken. Commissioners Dotson, Goss,
Palans, and Stein voted Aye. Commissioners Barry, Clarke, Croyle, Faul, Jearls, Mahfood,
Moynihan, Muren, Perkins, Toenjes, and Ziegler voted Nay. The motion failed.
A vote was taken as to whether to include in the report a statement as to whether the Rate Change
Proposal provided an adequate debt/cash ratio. Upon a motion and second, a roll call vote was
taken. All Commissioners voted Aye. No Commissioners Voted Nay. There were no absences or
abstentions. The motion passed.
A vote was taken as to whether to include in the report a statement as to whether the Rate Change
Proposal provides an appropriate debt service coverage ratio. Upon a motion and second, a roll
call vote was taken. All Commissioners voted Aye. No Commissioners Voted Nay. There were no
absences or abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal provides the funds necessary to pay the principal and interest falling due on the
bonds issued to finance assets of the District. Commissioner Perkins made a motion to find that
the record supports such a finding. Commissioner Clarke seconded the motion. A roll call vote
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was taken. All Commissioners voted Aye. No Commissioners Voted Nay. There were no absences
or abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal provides the funds necessary to pay the costs of operation and maintenance.
Commissioner Muren made a motion to find that the record supports such a finding. Commissioner
Clarke seconded the motion. A roll call vote was taken. All Commissioners voted Aye. No
Commissioners Voted Nay. There were no absences or abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal provides the funds necessary to pay such amounts as may be required to cover
emergencies and unanticipated delinquencies. Commissioner Paul made a motion to find that the
record supports such a finding. Commissioner Jearls seconded the motion. A roll call vote was
taken. All Commissioners voted Aye. No Commissioners Voted Nay. There were no absences or
abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal is consistent with Constitutional, statutory, or common law, as amended from
time to time. Commissioner Perkins made a motion to find that the record supports such a finding.
Commissioner Goss seconded the motion. A roll call vote was taken. All Commissioners voted
Aye. No Commissioners Voted Nay. There were no absences or abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal enhances the District’s ability to provide adequate sewer and drainage systems
and facilities or related services. Commissioner Stein made a motion to find that the record
supports such a finding. Commissioner Goss seconded the motion. A roll call vote was taken. All
Commissioners voted Aye. No Commissioners Voted Nay. There were no absences or abstentions.
The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal is consistent with and not in violation of any covenant or provision relating to
any outstanding bonds or indebtedness of the District. Commissioner Perkins made a motion to
find that the record supports such a finding. Commissioner Clarke seconded the motion. A roll call
vote was taken. All Commissioners voted Aye. No Commissioners Voted Nay. There were no
absences or abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal will not impair the ability of the District to comply with applicable federal or
state laws or regulations, as amended from time to time. Commissioner Perkins made a motion to
find that the record supports such a finding. Commissioner Mahfood seconded the motion. A roll
call vote was taken. All Commissioners voted Aye. No Commissioners Voted Nay. There were no
absences or abstentions. The motion passed.
The Rate Commission considered whether to include a statement in the report as to whether the
cash/debt ratio and debt service coverage ratio considers the financial impact on all classes of
ratepayers. Commissioner Mahfood made a motion to include such a statement. The motion was
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seconded. A roll call vote was taken. All Commissioners voted Aye. No Commissioners Voted
Nay. There were no absences or abstentions. The motion passed.
The Rate Commission considered whether to include a statement in the report as to whether the
timing of the rate increase was appropriate. Commissioner Paul move that the report not include
such a statement. Commissioner Jearls seconded. A voice vote was taken. All members voted Aye.
No Commissioners Voted Nay. There were no absences or abstentions. The motion passed.
The Rate Commission considered whether to include a statement in the report as to whether the
infiltration/inflow allocation considers the financial impact on all classes of ratepayers in
determining a fair and reasonable burden. Commissioner Stein made a motion that the report
include a statement. A roll call vote was taken. Commissioners Barry, Croyle, Dotson, Goss, Jearls,
Mahfood, Palans, Stein, and Toenjes voted Aye. Commissioners Clarke, Paul, Moynihan, Muren,
Perkins, and Ziegler voted Nay. There were no absences or abstentions. The motion passed 9-6.
The Rate Commission considered whether to include statements on subpoints (a) through (e) under
factor five. A roll call vote was taken. Commissioners Clarke, Croyle, Dotson, Paul, Goss, Jearls,
Mahfood, Moynihan, Muren, Palans, Perkins, Stein, Toenjes, and Ziegler voted Aye.
Commissioner Barry voted Nay. There were no absences or abstentions. The motion passed 14-1.
The Rate Commission adjourned at 12:10 p.m. on August 14, 2023, and then reconvened on
August 15,2023 at 1:00 p.m.. Commissioners Toenjes, Muren, Clarke, Barry, Croyle, Goss, Jearls,
Mahfood, Palans, Perkins, and Stein were present in person. Commissioners Dotson, Paul, and
Ziegler appeared via videoconference. Commissioner Moynihan was absent.
Also present were Brian Hoelscher, Executive Director; and Susan Myers, General Counsel of the
Metropolitan St. Louis Sewer District (the “District”), and Marion Gee - Director of Finance of
the District; Lisa O. Stump and Brian J. Malone of Lashly & Baer, P.C., Counsel for the Rate
Commission; and Pamela Lemoine of Burns & McDonnell; and Anna White of Black & Veatch;
Rate Consultants to the Rate Commission.
The Rate Commission considered whether to include in its report a statement about phasing in the
extra strength surcharges. Commissioner Paul moved that the District include in its report a
statement accepting the District’s proposal not to phase-in the surcharge. Commissioner Perkins
seconded the motion. A roll call vote was taken. Commissioners Barry, Clarke, Croyle, Paul, Goss,
Jearls, Muren, Palans, Perkins, Toenjes, and Ziegler voted Aye. Commissioner Stein voted Nay.
Commissioners Dotson, Mahfood, and Moynihan were absent. There were no abstentions. The
motion passed 11-1.
The Rate Commission considered whether to include in its report a statement about adjusting the
debt service coverage ratio. Commissioner Clarke moved that the Commission include a statement
supporting the District’s proposed debt service coverage ratio. Commissioner Jearls seconded the
motion. A roll call vote was taken. Commissioners Barry, Clarke, Croyle, Paul, Jearls, Mahfood,
Muren, Palans, Perkins, and Ziegler voted aye. Commissioners Goss, Stein, and Toenjes voted
Nay. Commissioners Dotson and Moynihan were absent. There were no abstentions. The motion
passed 10-3.
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The Rate Commission considered whether the record supports a finding that the Wastewater Rate
Change Proposal considers the financial impact on all classes of ratepayers in determining a fair
and reasonable burden. Commissioner Perkins moved to include a statement that the record
supports such a finding. Commissioner Clarke seconded the motion. A roll call vote was taken.
Commissioners Barry, Clark, Croyle, Dotson, Paul, Goss, Jearls, Mahfood, Muren, Palans,
Perkins, Toenjes, and Ziegler voted aye. Commissioner Stein voted Nay. Commissioner Moynihan
was absent. There were no abstentions. The motion passed 13-1.
The Rate Commission moved to consideration of the stormwater Rate Change Proposal.
The Rate Commission considered whether the record supports a finding that the Stormwater Rate
Change Proposal provides the funds necessary to pay the principal and interest falling due on the
bonds issued to finance assets of the District. Commissioner Jearls made a motion to find that the
record supports such a finding. Commissioner Clarke seconded the motion. A roll call vote was
taken. All Commissioners present voted Aye. No Commissioners Voted Nay. Commissioner
Moynihan was absent. There were no abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Stormwater Rate
Change Proposal provides the funds necessary to pay the costs of operation and maintenance.
Commissioner Perkins made a motion to find that the record supports such a finding.
Commissioner Barry seconded the motion. A roll call vote was taken. All Commissioners present
voted Aye. No Commissioners Voted Nay. Commissioner Moynihan was absent. There were no
abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Stormwater Rate
Change Proposal provides the funds necessaiy to pay such amounts as may be required to cover
emergencies and anticipated delinquencies. A motion was made to find that the record supports
such a finding. The motion was seconded. A roll call vote was taken. All Commissioners present
voted Aye. No Commissioners Voted Nay. Commissioner Moynihan was absent. There were no
abstentions. The motion passed.
The Rate Commission skipped Criteria I, while it awaited further analysis.
The Rate Commission considered whether the record supports a finding that the Stormwater Rate
Change Proposal enhances the District’s ability to provide adequate sewer and drainage systems
and facilities or related services. Commissioner Clarke made a motion to find that the record
supports such a finding. Commissioner Perkins seconded the motion. A roll call vote was taken.
All Commissioners present voted Aye. No Commissioners Voted Nay. Commissioner Moynihan
was absent. There were no abstentions. The motion passed.
The Rate Commission considered whether the record supports a finding that the Stormwater Rate
Change Proposal is consistent with and not in violation of any covenant or provision relating to
any outstanding bonds or indebtedness of the District. Commissioner Perkins made a motion to
find that the record supports such a finding. The motion was seconded. A roll call vote was taken.
All Commissioners voted Aye. No Commissioners Voted Nay. Commissioner Moynihan was
absent. There were no abstentions. The motion passed.
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Commissioner Palans made a motion to postpone consideration Factor Four until the Commission
considers Factor One. A voice vote was taken. All Commissioners Present voted Aye. No
Commissioner voted nay. Commissioner Moynihan was absent. The motion passed.
Agenda Item 4 - Other Business
There was no other business.
Agenda Item 5 - Adjournment
There being no further business to come before the Rate Commission, Chairman Toenjes declared
that the meeting was adjourned at 3:45 p.m. The Rate Commission will reconvene for its
deliberations at 8:00 a.m. on August 21,2023.
Commissioner William Clarke
Secretary of the Rate Commission of the
Metropolitan St. Louis Sewer District
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