TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 13, 2023
COMMITTEE ON JUDICIARY
Mr. Brian A. Perkovich, Executive Director
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Authority to settle Show Cause proceedings in Metropolitan Water Reclamation District of Greater Chicago v. Cody Metal Finishing, Inc., Case No. 23B-002, and approve the Agreed Order of Settlement entered by the Board-appointed Hearing Officer
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Dear Sir:
Cody Metal Finishing, Inc. (“Cody Metal”) operates an electroplating and metal finishing facility located at 1620 North Throop Street in Chicago, Illinois (“Facility”). The Facility discharges process wastewater for conveyance and treatment by the District pursuant to a Discharge Authorization (“DA”) issued by the District. The DA prohibits the discharge of process wastewater with pollutant concentrations that exceed any of the Sewage & Waste Control Ordinance’s (“SWCO”) effluent limits, including local and federal limits, for various metals associated with the Facility’s industrial processes.
Based on sampling events occurring between January 2020 to November 2022, the District issued multiple Cease & Desist Orders (“C&Ds”) to Cody Metal for Facility discharges that exceeded the DA’s limits for Zinc. Accordingly, on May 15, 2023, the District initiated Show Cause proceedings requiring Cody Metal to show cause before a Board of Commissioners (“Board”) appointed Hearing Officer for failing or refusing to comply with those C&Ds.
On June 14, 2023, a Pre-Hearing Conference was held wherein the parties presented their respective positions on the case and discussed the basic terms and conditions of a potential settlement of the matter. On June 29, 2023, the assigned Hearing Officer approved the agreed upon terms of an Agreed Order of Settlement (“Agreed Order”) in lieu of proceeding to a Show Cause hearing. The Agreed Order requires Cody Metal to:
1) Complete all necessary upgrades to its pretreatment facilities within 90 days of the Board’s approval of the Agreed Order.
2) Pay $50,000.00 in civil penalties to the District pursuant to Article VI, Section 5 of the SWCO.
3) Pay all outstanding User Charges, Noncompliance Enforcement Charges, and Late Filing Fees assessed by the District.
The Monitoring and Research Department (“M&R”) and Law Department worked closely to effectuate settlement on terms and conditions favorable to the District. Cody Metal finds these terms acceptable, and M&R agrees with the final settlement and dismissal of the District’s Show Cause Complaint. The proposed Agreed Order has been signed and issued by the Hearing Officer, the terms of which are subject to Board approval.
Accordingly, the General Counsel respectfully requests that the Board of Commissioners authorize a settlement of the Show Cause proceedings in Metropolitan Water Reclamation District of Greater Chicago v. Cody Metal, Inc., Case No. 23B-002, and approve the Agreed Order of Settlement entered by the Board-appointed Hearing Officer.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:KHY
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 13, 2023
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