The City of St. Louis has announced today that MSD will conduct an operational efficiency review for the City Water Division. We were asked by the City about MSD’s ability to conduct such a review earlier in the week. After reviewing the scope of work provided by the City, we responded that we could perform many, if not most, of the activities.
At this point, the agreement between MSD and the City is verbal. We expect to finalize the form and details of the agreement in coming weeks. That finalization will include the specific activities MSD will perform. MSD will perform its review utilizing internal resources.
As a sewer utility, a natural question is, can MSD do the review of a drinking water utility? The simple answer is, “Yes, because the underlying challenges are not all that different.”
In the 21st century, utility performance is and will be about delivering service and maximizing efficiency within an ever increasing regulatory framework; and, at the same time, finding the funds to rebuild, improve, and invest in systems that are decades, if not hundreds, of years old. With that in mind, over the past 10 to 15 years, MSD has undergone numerous changes in its management and structure, all with a focus on efficiency, customer service, and regulatory compliance. Knowing we would one day be subject to a Consent Decree with the Environmental Protection Agency (EPA) to establish a schedule for future improvements, we systematically reviewed our operating structure and business processes so as to obtain the highest level of efficiency and value from every dollar paid to MSD by our customers.
Activities, awards, and achievements from the past 10 years:
- 2006, 2009, and 2012 Excellence in Management Award from the National Association of Clean Water Agencies that recognizes MSD’s implementation of programs that address management challenges faced by public utilities and utilization of the Ten Attributes of Effectively Managed Utilities.
- Reviews and awards from the American Society of Civil Engineers, the Missouri Society of Professional Engineers, and the American Council of Engineering Companies recognizing the integrity and exemplary nature of MSD’s consultant selection process.
- The Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for 26 consecutive years running.
- Bond ratings of AAA from Standard & Poor’s Ratings Service, Aa1 from Moody’s Investors Service, and AA from Fitch Ratings – amongst the top ratings in the sewer utility industry.
- Numerous Peak Performance Awards from the National Association of Clean Water Agencies that recognize outstanding compliance with National Pollutant Discharge Elimination System permit limits.
- A history of holding year-over-year operational budget growth to or below the rate of inflation.
- A renewed commitment to public communications, with a focus on customer service and operational transparency.
At the end of the day, City Water customers are also MSD customers. MSD has the skills and expertise to perform this work. Given those two facts, if MSD can partner with the City of St. Louis to better serve our shared customers, then we welcome the opportunity.