TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 2, 2023
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. American Kitchen Delights, Inc. and City of Harvey, Case No. 23B-001
Body
Dear Sir:
American Kitchen Delights, Inc. (“AKDI”) claims to own and is in possession of property located at 15240 and 15312 Dixie Highway in Harvey, Illinois (“Site”). On April 16, 2020, the District notified AKDI and the City of Harvey (“Harvey) that recent development activities on the Site, including grading and spreading of asphalt grindings across an area of the Site consisting of more than 0.5 acre (“Development”), required AKDI to obtain a Watershed Management Permit and meet other stormwater management requirements (e.g., stormwater detention, compensatory storage for floodplain impacts) under the District’s Watershed Management Ordinance (“WMO”).
On May 3, 2021, the District issued a Notice of Violation (“NOV”) alleging that the Development violated the WMO as specified in the District’s April 2020 notification to AKDI and Harvey.
On May 22, 2023, the District filed a Show Cause Complaint against AKDI and Harvey based on the violations asserted in the NOV and requesting the imposition of up to $1,000 per day in civil penalties pursuant to Section 1204.8 of the WMO. At a pre-hearing conference held on July 24, 2023, the District advised that, based on the available evidence, it was not pursuing relief against Harvey but named Harvey as a respondent because any WMO permit application that AKDI, as Co-permittee of the Development, might submit to resolve the violations would have to be signed by Harvey as Permittee.
In response to the Complaint, AKDI maintained, as it had previously, that it was engaged in litigation against Harvey and others involving, among other issues, which entity (or entities) holds title to the Site. One of those cases, which has been pending since early 2018, went to trial before the judge in mid-October 2023. AKDI also claimed, and continues to maintain, that another developer, acting as Harvey’s agent, carried out the Development.
Following the scheduling of a Show Cause Hearing before a Board-designated Hearing Officer, the District and AKDI reached a proposed Settlement Agreement (“Agreement”). Under the Agreement, AKDI agrees to (1) submit a complete WMO permit application for the Development within 6 months following Board approval of the Agreement; (2) construct the necessary stormwater facilities or restore the Site to its pre-Development condition within one year after applying for a permit; and (3) pay, within 30 days after Board approval of the Agreement, $20,000 in full settlement of the civil penalties for the violations set out in the Show Cause Complaint. If AKDI fails to timely meet the final compliance deadline, the Agreement provides that the District may file a lien against the Site.
The District’s Engineering and Law Departments worked closely to effectuate settlement on terms and conditions to bring the Site into compliance with the WMO, and the Engineering Department agrees with the final settlement.
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. American Kitchen Delights, Inc. and City of Harvey, Case No. 23B-001, and to authorize the General Counsel to execute all other documents necessary in furtherance thereof.
Requested, Susan T. Morakalis, General Counsel, STM:JTM:ATF:JMP:nl
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 2, 2023