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. CFC, Inc., d/b/a Columbus Vegetable Oils, Case No. 24B-002, and approve the Agreed Order of Settlement entered by the Board-appointed Hearing Officer
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Dear Sir:
CFC, Inc., d/b/a Columbus Vegetable Oils (“Columbus Vegetable”), operates as a large-scale processor and packager of commodity and exotic specialty cooking oils, non-food oils, shortenings, salad dressings, and food sauces at its facility located at 30 East Oakton Street in Des Plaines, Illinois (“Facility”). The Facility discharges process wastewater for conveyance and treatment by the District pursuant to the Sewage & Waste Control Ordinance (“SWCO”) of the District. SWCO prohibits the discharge of process wastewater with pollutant concentrations that exceed any SWCO effluent limits, including fats, oils, and greases (“FOG”) associated with the Facility’s industrial processes.
Based on sampling events occurring between January 2022 and December 2023, the District issued a Notice of Non-Compliance (“NON”), multiple Cease & Desist Orders (“C&Ds”) and amended C&Ds to Columbus Vegetable for Facility discharges that exceeded SWCO’s limits for FOG. On June 28, 2024, after Columbus Vegetable failed to achieve compliance, the District initiated enforcement proceedings requiring Columbus Vegetable to show cause before a Board of Commissioners (“Board”) appointed Hearing Officer for failing or refusing to comply with the NON, C&Ds, and amended C&Ds.
On August 21, 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 August 30, 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 Columbus Vegetable to:
1) Complete all necessary upgrades to its pretreatment system no later than March 14, 2025
2) Pay $28,000.00 in civil penalties to the District pursuant to Article VI, Section 5 of SWCO
3) 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. Columbus Vegetable 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. CFC, Inc., d/b/a Columbus Vegetable Oils, Case No. 24B-002, 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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