An independent auditor has released its findings on MMSD operations and Veolia, the company that runs the MMSD's two wastewater treatment plants.
Whistleblowers allege Veolia employees and equipment have been treated poorly for years, which has has increased the risk of untreated sewage being dumped into waterways.
Local advocacy group Common Ground led the call for an investigation of both MMSD and Veolia, which has managed the plants for 18 years.
In response, the MMSD commission hired Sharon Peters’ Minnesota-based utility consulting firm to carry out an independent audit.
“To their credit, the auditors, as we understand it, talked to 33 different MMSD employees that are current employees that weren't our whistleblowers," said Common Ground's Bob Connolly before the audit was released. "They also talked to current Veolia employees, so they did their job.”
Peters shared her audit's findings with the MMSD commission Monday.
"Did Veolia comply with the contract? Partially," she said.
Peters told commissioners that Veolia has done some things right.
"Veolia met its regulatory permit obligations almost all the time," she said. "In 100 months between March of 2018 and June of 2026, there were only two weekly permit exceedances. Combined sewer overflows stayed within the permit limit every year."
But she says there have been shortfalls too. Including "many of the contract's stricter requirements, particularly staffing levels, timely corrective maintenance, accurate maintenance of records."
Peters also reviewed how strong MMSD's oversight of Veolia has been.
"Did MMSD oversee the contract appropriately? Partially," she said. "MMSD made permit compliance its highest priority, and that oversight was effective."
Peters' firm came up with 64 recommendations for MMSD to improve operations and oversight of the wastewater facilities.
MMSD commission chair Corey Zetts says she's still digesting the audit, but she sees it as a real opportunity for continuous improvement. Zetts' full statement on the audit is here.
Sunday morning, Veolia released its own report carried out by a “globally recognized engineering and scientific consulting firm. It asserts Veolia met its contract and environmental regulatory requirements over the last 10 years.
Veolia’s contract ends in 2028.
Recently, the MMSD commission selected Jacobs Engineering over Veolia to get the next 10-year contract to run the plants.
Veolia immediately filed a lawsuit alleging it wasn’t given a fair chance in the application process. That case is still pending.
Connolly says whoever runs the wastewater treatment plants must operate them at "peak efficiency."
“In other words, 100% of the water and the waste that comes into the plant has to be treated before it goes back into the lake. And you can't have these big overflows because the plants aren't running at peak efficiency. That's a scandal,” Connolly says.
