Board presses MSD for clearer addendum language as arbitration bills climb

Board members expressed frustration with the Metropolitan Sewage District’s (MSD) handling of an addendum meant to clarify how a proposed $3.19 rate should be calculated.

Danielle told the board the district sent an addendum in April intended to explain how the $3.19 rate is computed and to prevent additions—such as a vac truck charge—that were not in the original contract. Danielle said the district has paid roughly $6,167.50 in arbitration fees to date and had just received another bill for about $1,500. "Up until lunch today, we were at $6,167.50 we paid in arbitration, but I believe we just got a bill today for another 1,500," Danielle said.

Board members said MSD’s reply removed much of the language the district proposed, leaving only a few paragraphs, and that slow communication contributed to mounting costs. The chair described a prior MSD meeting that became contentious, saying the district walked out after material unrelated to the addendum was raised; the chair added, "I don't wanna give $50,000 to somebody else," emphasizing a desire to settle without prolonged arbitration.

Danielle said the addendum was intended not to change the negotiated $3.19 rate but to explain how that number is derived so both parties calculate it the same way. The board directed staff to send clarified language back to MSD and to press for a productive response ahead of the scheduled August arbitration date. Board members also noted $8,341.04 in penalties and late charges that have been billed by MSD and are being held in a separate account while negotiations proceed.

No formal settlement or agreement was reached at the meeting; board members directed staff and their counsel to continue negotiations and report back.