TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 20, 2022
COMMITTEE ON JUDICIARY
Mr. Brian A. Perkovich, Executive Director
Title
Authority to settle Show Cause Complaint filed in Metropolitan Water Reclamation District of Greater Chicago v. City of Harvey, APA Holdings LLC, Fore Transportation, Inc., Crown Enterprises, Inc., and Universal Specialized, LLC, Case No. 22B-001
Body
Dear Sir:
APA Holdings LLC (“APA”) and Universal Specialized, LLC (“Universal”) are the owners of the property located at 250 E. 167th Street in Harvey, Illinois (the “Site”). Fore Transportation, Inc. (“Fore”), operates a trucking business on the Site and Crown Enterprises, Inc. (“Crown”) is the developer of the Site. On October 10, 2019, the District notified APA, Universal, Fore, Crown (collectively “APA”) and the City of Harvey (“Harvey”) that the development of the Site, which included conversion of over 0.5 acre of an existing aggregate parking area to impervious concrete pavement and installation of a fuel island at the Site (the “Development”), required a Watershed Management Permit as set forth in the Watershed Management Ordinance (“WMO”). The WMO further requires that Harvey, as the municipality where the development is located, and APA, as owner of the property, jointly sign the WMO permit application as the permittee and co-permittee of the Development, respectively.
In response to the District’s notification of the WMO requirements, APA performed extensive work on the Site to bring it into compliance with the WMO. On January 18, 2021, APA submitted a WMO permit application to Harvey for execution and submission to the District; however, Harvey refused to sign the permit application. On May 3, 2021, the District issued a Notice of Violation (“NOV”) alleging that the Development violated the WMO because it was undertaken without a WMO permit.
On March 31, 2022, the District filed a Show Cause Complaint, which was subsequently amended on May 18, 2022, against APA and Harvey based on the violations asserted in the NOV and requesting the imposition of civil penalties pursuant to Section 1204.8 of the WMO. On April 22, 2022, APA again submitted a WMO permit application to Harvey for execution; however, Harvey again refused to sign the permit application.
Following a pre-hearing conference held on June 8, 2022, and the scheduling of a Show Cause Hearing, APA, Harvey, and the District agreed to settle the matter. On September 14, 2022, after extensive negotiations by all parties, APA submitted to the District a WMO permit application executed by APA and Harvey. The District and APA then reached a proposed Settlement Agreement (“Agreement”) regarding the imposition of penalties for APA’s failure to obtain a WMO permit. Pursuant to the Agreement: (1) The District agrees to not assess penalties against Harvey; and (2) APA agrees to pay within 30 days of the execution of the Agreement the amount of $15,800 in full settlement of the civil penalties for its failure to obtain a WMO permit for the Development. This amount reflects penalties assessed at $100.00 per day from May 3, 2021, when the District issued the NOV, through April 22, 2022, when APA submitted a WMO permit application to Harvey for its signature as Permittee, less $100.00 per day during: (a) the 3 months in 2020 when Covid-related shutdowns halted work on preparing a WMO permit application; and (b) the period from January 18, 2021, when APA initially submitted the WMO permit application for Harvey’s signature as Permittee, through May 2, 2021. APA further agrees to complete the Development within 18 months of the District’s issuance of a WMO permit. The Hearing Officer will retain jurisdiction of the matter to consider any motion by any party for the purpose of enforcing the terms of the Agreement.
The District’s Engineering and Law Departments worked closely to effectuate settlement on terms and conditions acceptable to all parties, and the Engineering Department agrees with the final settlement and dismissal of the District’s Show Cause Complaint.
Accordingly, the General Counsel respectfully requests that the Board of Commissioners authorize a settlement of the Show Cause Complaint filed in Metropolitan Water Reclamation District of Greater Chicago v. City of Harvey, APA Holdings LLC, Fore Transportation, Inc., Crown Enterprises, Inc., and Universal Specialized, LLC, Case No. 22B-001, and to authorize the General Counsel to execute all other documents necessary in furtherance thereof.
Requested, Susan T. Morakalis, General Counsel, STM:JM:PS:nl
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Judiciary
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 20, 2022