The Metropolitan Sewer District Board of Trustees approved a historic agreement on Oct. 10 to ensure job opportunities for local residents in the district’s $4.7 billion reconstruction efforts over the next 20 years.
The “community benefits agreement” outlines job training programs, minority participation goals, small business loan assistance, internships for public school students and hiring guidelines to help get unemployed skilled laborers back to work.
St. Louis is among several cities nationwide that have recently entered into legal settlements with the U.S. Environmental Protection Agency, requiring them to make multi-billion-dollar improvements to their water waste systems. However, St. Louis is the only city with a community benefits agreement that ensures unemployed, low-income minorities and women will be employed as part of that spending, said Adolphus Pruitt, president of the St. Louis City NAACP.
“It incorporates living-wage law requirements, first-source hiring and a strong MBE/WBE business support program that addresses the most significant impediment for minority- and women-owned businesses’ growth – bonding and access to capital,” Pruitt said.
The agreement’s guiding points came out of MSD’s ongoing stakeholders meetings, which the district has held for about two years.
The idea for the agreement came shortly after MSD’s settlement. In June 2007, the State of Missouri and EPA filed a lawsuit against MSD – in part, because untreated sewage was flowing into the Mississippi River. In August 2011, the EPA announced a settlement agreement that calls for MSD to spend $4.7 billion over the next 23 years to eradicate over 350 sewer overflows.
Twenty years of reconstruction can make a significant impact in St. Louis’ workforce, said MSD Executive Director Brian Hoelscher.
“We can get jobs started that result in careers,” Hoelscher said. “Our hope is that other entities will see this as a model. This would have more success if this is a St. Louis-area initiative, rather than just MSD.”
The sewer improvements will present more job opportunities, but they will also take a toll on local resident’s sewer bills.
In June 2012, St. Louis County and city residents voted 85 percent in favor of the $945 million bond issue, which will allow MSD to fix the system’s environmental hazards and raise sewer bills gradually. With the bond issue’s approval, residents will see their wastewater bills increase monthly from $28 to $43 by July 1, 2015.
Proponents of the community benefits agreement said the higher rates will adversely affect lower-income families. Creating employment opportunities among low-income families would be one way to indirectly take the pressure off the cost increase.
As part of the agreement’s First Source Hiring program, MSD must require general contractors, suppliers and other project vendors to commit by contract to hire people from the “target community” (local, unemployed, low-income, minorities and women).
With the downturn in the economy, apprenticeship programs have become almost obsolete in the construction industry – making it nearly impossible for young African Americans and minorities to obtain employment in these fields. As part of the agreement, MSD will provide $150,000 annually for job training for sewer-related occupations, which also could include pre-apprenticeship programs and other support services.
Access to capital is one of the biggest barriers for minority businesses in landing contracts with MSD. As part of the agreement, MSD will coordinate with governmental, private and community organizations to develop a low-interest working capital loan program to assist minority and women business enterprises.
The proposed agreement would also obligate MSD to establish an internship program at MSD facilities for public school students. The internship would be similar to a STEM program (science, technology, engineering and math) and give hiring preference to participants. An MSD-funded scholarship program would also be a part of this program.
Now with the approval of MSD’s trustees, the next step for the agreement is to meet with the “signatories” within 60 days. Signatories include people from community, labor and church-based groups who will be the driving force in implementing the agreement.
Hoelscher said about 23 people were involved in the agreement’s creation and will be some of the first signatories. However, anyone can participate in these discussions and become a signatory, he said.
“We want this to be an open process,” he said. “This is not going to be a closed shop. It’s not a members-only club. We are still going to hear residents’ concerns.”
