TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 19, 2024
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. Chicago Magnesium Casting Company, Case No. 24B-001, and approve the Agreed Order of Settlement entered by the Board-appointed Hearing Officer
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Dear Sir:
Chicago Magnesium Casting Company (“Chicago Magnesium”) operates a metal finishing facility located at 14101 South Seeley Avenue in Blue Island, 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 May 2022 and October 2023, the District issued multiple Cease & Desist Orders (“C&Ds”) to Chicago Magnesium for Facility discharges that exceeded the DA’s limits for Zinc. On June 28, 2024, after Chicago Magnesium failed to achieve compliance, the District initiated enforcement proceedings requiring Chicago Magnesium to show cause before a Board of Commissioners (“Board”) appointed Hearing Officer for failing or refusing to comply with the C&Ds.
On July 24, 2024, 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 September 6, 2024, 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 Chicago Magnesium to:
1) Complete all necessary upgrades to its pretreatment system no later than September 30, 2024
2) Pay $12,000.00 in civil penalties to the District pursuant to Article VI, Section 5 of SWCO
3) Pay all outstanding Noncompliance Enforcement Charges assessed by the District pursuant to SWCO for issuing and administering the C&Ds
4) Reimburse the District up to a maximum of $3,000.00 for court reporter costs and hearing officer fees as allowed under Article VI, Section 5 of SWCO
The Monitoring and Research Department (“M&R”) and Law Department worked closely to effectuate settlement on terms and conditions favorable to the District. Chicago Magnesium has agreed to these terms, and M&R agrees with the final settlement and resolution 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. Chicago Magnesium Casting Company, Case No. 24B-001, and approve the Agreed Order of Settlement entered by the Board-appointed Hearing Officer.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:AOC
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 19, 2024
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