TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 2, 2022
COMMITTEE ON JUDICIARY
Mr. Brian A. Perkovich, Executive Director
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Authority to settle Show Cause Complaint filed in Metropolitan Water Reclamation District of Greater Chicago v. Belmont Sausage Company, Case No. 22B-002, and approve the Agreed Order of Settlement issued by the Board-appointed Hearing Officer
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Dear Sir:
Belmont Sausage Company (“Belmont Sausage”) is a manufacturer of various processed meats for private label and commercial markets at its facility located at 2201 Estes Avenue in Elk Grove Village, Illinois (“Facility”). The Facility discharges its process wastewater into a sewerage system tributary to the District’s water reclamation facilities pursuant to a Discharge Authorization (“DA”) issued by the District. The DA sets forth local limits taken from the Sewage & Waste Control Ordinance (“SWCO”) for various wastewater pollutants associated with the Facility’s industrial processes, including Fats, Oils and Greases, also known as FOG. Under the DA and the SWCO, the local limit for FOG is 250 mg/L, meaning no Facility discharge into the sewerage system can contain concentration levels of FOG greater than 250 mg/L at any one time. Nonetheless, sampling and testing of the Facility’s process wastewater conducted by both Belmont Sausage and the District from July 2017 to February 2022 resulted in the District issuing Cease & Desist Orders (“C&Ds”) to Belmont Sausage in forty-five instances due to FOG exceedances/violations. Belmont Sausage was assessed a Noncompliance Enforcement Charge (NCE) pursuant to the SWCO for each C&D in order to compensate the District for the time and resources expended while sampling and testing the Facility’s discharges.
On March 25, 2022, the District filed a Show Cause Complaint requesting Belmont Sausage to show cause before a Board of Commissioners appointed Hearing Officer for failing or refusing to comply with these C&Ds. On April 28, 2022, a Pre-Hearing Conference in the matter was held wherein Belmont Sausage reported that one of its grease traps was unable to adequately trap or pretreat the volume of process flow coming from the portion of the Facility that it serviced. To remedy the situation, Belmont Sausage stated that it will be installing a Lift Station that will transport the process flow from this outfall to another Facility outfall that is serviced by a new 48,000-gallon grease trap that is purportedly capable of handling and treating this additional process flow.
Based on these representations, and after extensive negotiations, the parties agreed to the terms and conditions of a settlement, including orders requiring Belmont Sausage to: 1) pay the District civil penalties in the amount of $46,000.00, comprising $1,000.00 for each FOG violation alleged in the District’s Show Cause Complaint, plus an additional $1,000.00 for a FOG violation that occurred after the date of filing of the Complaint; 2) reimburse the District of court reporter costs and hearing officer fees not to exceed a combined amount of $3,000.00, which is the maximum cost reimbursement allowed under the SWCO; and 3) exercise all due diligence in installing and operating the Lift Station, including obtaining all required local permits and authorizations.
The Monitoring and Research Department (“M&R”) and Law Department worked closely to effectuate settlement on terms and conditions favorable to the District. Belmont Sausage finds these terms acceptable, and M&R agrees with the final settlement and dismissal of the District’s Show Cause Complaint.
A proposed Agreed Order of Settlement (“Agreed Order”) has been signed by the parties and issued by the Hearing Officer, the terms of which are subject to the approval of the Board of Commissioners. Under the Agreed Order, additional civil penalties and administrative charges are to be assessed against Belmont Sausage in the event that the Facility has FOG violations prior to the Lift Station becoming operational or while it is being serviced. Also, for a period of three years, the District will have leave to reinstate this case to enforce the terms of the Agreed Order and to obtain additional civil penalties and seek revocation of the DA should FOG violations continue at the Facility after the Lift Station is in operation. A copy of the Agreed Order is attached.
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. Belmont Sausage Company, Case No. 22B-002, and approve the Agreed Order of Settlement issued by the Board-appointed Hearing Officer.
Requested, Susan T. Morakalis, General Counsel, STM:CMM
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 2, 2022
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