STATE OF INDIANA

COUNTY OF MARION

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SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

TOWN OF CLOVERDALE,

Respondent.

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Case No. 2002-12423-W




 

 

AMENDED AGREED ORDER

 

Complainant and Respondent desire to settle and compromise this action without hearing or adjudication of any issue of fact or law, and consent to the entry of the following Findings of Fact and Order.  Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein.  The Respondent's entry into this Agreed Order shall not constitute a waiver of any defense, legal or equitable, which Respondent may have in any future administrative or judicial proceeding, except a proceeding to enforce this Order.

I.  FINDINGS OF FACT

 

1.                  Complainant is the Commissioner (“Complainant”) of the Indiana Department of Environmental Management (“IDEM”), a department of the State of Indiana created by Indiana Code (“IC”) 13-13-1-1.

 

2.         Respondent is the Town of Cloverdale (“Respondent”), which owns and operates a Publicly Owned Treatment Works that includes a wastewater treatment plant (WWTP), located on North West Street, Cloverdale, in Putnam County, Indiana.  The Respondent is authorized by NPDES Permit No. IN 0022616 (the Permit) to discharge treated wastewater to receiving waters named Rabbit Run, in accordance with effluent limitations, monitoring requirements, and other conditions set forth in the Permit.

 

3.         IDEM has jurisdiction over the parties and the subject matter of this action.

 

4.         Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation on May 16, 2003 via Certified Mail to:

 

Mr. John Davis

Town Council President

Town of Cloverdale

154 South Main Street

P.O. Box 222

Cloverdale, Indiana  46120

 

5.       IDEM approved and adopted as the Department’s Final Order, Agreed Order, Case No. 2002-12423-W, with the Respondent on June 16, 2004. The Agreed Order included an outline of the Respondent’s violations of 327 IAC 2, 327 IAC 3, 327 IAC 5, IC 13-18-4-5, IC 13-30-2-1, and the Permit that had occurred, a outline of the correction actions contained in a Compliance Plan that the Respondent was to complete, and an assessment of a civil penalty.

 

6.       In accordance with provisions of the Agreed Order, the Respondent paid the civil penalty and initiated the corrective actions necessary to achieve and maintain compliance with the terms and conditions of the Permit required by Item 3 of the Order.  The Respondent completed the Collection System Improvements, the Lift Station Improvements, and the Phase I WWTP Improvements outlined in the Compliance Plan.

On September 15, 2006, IDEM approved the Phase II WWTP Improvements outlined in the Compliance Plan, which required the Respondent to commence construction of the wastewater treatment plant improvements in December of 2006 and to complete construction in December of 2007.  The bids for the construction of the Phase II WWTP Improvements were higher than expected, causing the Respondent to obtain additional financing and to re-evaluate its improvement plan, which delayed the start of construction.  However, the Respondent signed contracts for the Phase II WWTP Improvements on March 7, 2007, and Notice to Proceed was issued on March 17, 2007.  The delay in initiating construction resulted in delaying the target date for completion of construction until March 16, 2008.

 

7.         The Respondent has submitted reports of bypasses of sewage from bypass location outfall 102 and/or overflows of sewage from manholes or lift stations that occurred during 48 days in 2005, during 62 days in 2006, and during 24 days from January 1 through April 14, 2007, in violation of 327 IAC 5-2-8(1) and Part II.A.1 of the Permit and in violation of 327 IAC 5-2-8(11) and Part II.B.2 of the Permit.

 

8.         Pursuant to 327 IAC 2-1-6(a) and Part I.A.2 of the Permit, all waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil, or scum attributable to municipal, industrial, agricultural, and other land use practices, or other discharges:

 

a.         that will settle to form putrescent or otherwise objectionable deposits;

 

b.         that are in amounts sufficient to be unsightly or deleterious;

 

c.         that produce color, visible oil sheen, odor, or other conditions in such degree as to create a nuisance;

 

d.         which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants, or humans; and

 

e.         which are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such degree as to create a nuisance, be unsightly, or otherwise impair the designated uses.

 

An inspection conducted by IDEM staff on March 14, 2007, indicated that the receiving stream below the outfall of the Respondent's WWTP contained sewage sludge, in violation of 327 IAC 2-1-6(a) and Part I.A.2 of the Permit.

 

9.         On May 2, 2007, the Respondent's representatives met with IDEM staff and discussed the possibility of proceeding with some new facilities that would need a connection to the Respondent's sewer collection system and would need construction permits pursuant to 327 IAC 3-2-1 from IDEM.  The Respondent's representatives considered these facilities important for the continued growth of its community and the failure to proceed with these projects would be a hardship for the Town of Cloverdale.  The Respondent indicated that it would like to proceed with applications for construction permits for these projects prior to the completion of the Respondent's Phase II WWTP improvements.  In order to proceed with these construction permit applications, the Respondent would need to obtain variances from its capacity certification requirements from IDEM.

IDEM agreed to issue variances from the capacity certification as long as the Respondent enters into an Agreed Order that requires the Respondent to develop and submit storm water inflow and infiltration (I&I) removal projects to IDEM for approval.  Then following completion of each approved storm water I&I removal project, IDEM would approve credits for the Respondent to apply for variances from the required capacity certifications for new connections into the Respondent's sanitary sewer projects.  The credits would be granted allowing one gallon of new sewer connection into the sanitary sewer system for every 5 gallons of storm water removed.

 

10.       In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

 

II.  ORDER

 

1.               This Agreed Order shall be effective (“Effective Date”) when it is approved by Complainant or Complainant’s delegate, and has been received by Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.               Respondent shall comply with 327 IAC 5-2-8(1) and Part II.A.1 of the Permit, 327 IAC 5-2-8(11) and Pat II.B.2 of the Permit, Part I.A.1 of the Permit, Part I.B.2 of the Permit, Part I.B.3 of the Permit, 327 IAC 2-1-6(a) and Part I.A.2 of the Permit, IC 13-18-4-5, IC 13-30-2-1(1), 327 IAC 5-2-8(8) and Part II.B.1 of the Permit, and 327 IAC 3-2-1.

 

3.         Respondent shall complete its Phase II WWTP Improvements referenced in Findings of Fact Paragraph 6 by March 16, 2008.  Within 10 days of completion of the Phase II WWTP Improvements, the Respondent shall submit written notification of completion of the improvements.

 

4.         Beginning 30 days after the completion of the Phase II WWTP Improvements, the Respondent shall be subject to the stipulated penalties provided for in Order Paragraph 15 for the discharge from any portion of the collection system, the discharge from any bypass point, or the failure to comply with any term or condition contained in the Permit, including any effluent limitation.

 

5.         Beginning 30 days after the completion of the Phase II WWTP Improvements, the Respondent shall demonstrate for a period of six consecutive months ("Compliance Demonstration"), the following:

 

A.        continuous compliance with the effluent limitations contained in the Permit;

B.        that discharges from any portion of the collection system, including any manhole or lift station, do not occur; and

C.        that no unpermitted bypasses from the wastewater treatment plant occur, including from SSO Outfall 102 at the WWTP Headworks.

 

In the event that the Respondent fails to make the Compliance Demonstration, the Respondent shall, within 60 days of becoming aware that the Compliance Demonstration cannot be achieved, develop and submit to IDEM, for approval, a plan (“action plan”) that identifies the corrective actions that the Respondent will take to eliminate discharges from the collection system, eliminate discharges from any wastewater treatment plant bypass point, and achieve and maintain continuous compliance with the terms and conditions of the Permit, including the effluent limitations.  The action plan shall include an implementation and completion schedule, including specific milestone dates.

 

6.         The action plan required pursuant to Order Paragraph 5 shall be subject to the approval of IDEM.  If IDEM deems the action plan to be inadequate, a revised action plan shall be submitted within 15 days of receipt of notice from IDEM of the inadequacies thereof.  If, after submission of the first revised action plan, IDEM still finds the action plan to be inadequate, then IDEM will request further modification of the action plan as necessary to meet IDEM’s requirements, and require re-submittal of the action plan by a specific date.  If the subsequently submitted second revised action plan does not meet IDEM’s approval, IDEM will suggest specific modifications to be made to the action plan and require re-submittal by a specific date.  If, by the specified date, the Respondent does not submit a third revised action plan that incorporates the IDEM-suggested modifications or submit an alternative adequate action plan (as determined by IDEM), the IDEM-suggested modifications will be deemed incorporated into the action plan.

 

7.         The approved action plan shall be incorporated into the Agreed Order and shall be deemed an enforceable part thereof.  The Respondent, upon receipt of written approval from IDEM, shall immediately implement the approved action plan and adhere to the milestone dates contained therein.  Failure to achieve compliance at the conclusion of work under the action plan will subject Respondent to additional enforcement action.

 

8.         The Respondent shall notify IDEM, in writing, within 10 days of completion of each task contained in the approved action plan.  The notification shall include a description of the task completed and the date it was completed.

 

9.         At any time during the construction of the Phase II WWTP Improvements, or during the development and implementation of the action plan if required, the Respondent may submit inflow and infiltration (I&I) reduction projects, such as removal of illegal storm water connections or sewer rehabilitation projects, intended to reduce the total wastewater transported to the WWTP.

 

To the extent that these I&I reduction projects are designed and engineered to reduce the total flow transported to the WWTP, as determined by IDEM, then upon approval and completion of each project, IDEM will give written approval to the Respondent to apply for construction permits for new sanitary sewer connections and/or to submit capacity certifications for construction permit applications for other parties for new sanitary sewer connections.  The new sanitary sewer connections would be approved at design flow ratios of one gallon of new sewer connection allowed for each 5 gallons of total flow to the WWTP that the projects are designed and engineered to remove.

 

10.       The Respondent shall not issue a capacity certification pursuant to 327 IAC 3-6-7 and 327 IAC 3-6-4, and shall not cause or allow the construction of any sanitary sewer without written approval by IDEM.

 

11.       Beginning on the Effective Date of this Agreed Order and continuing until the completion of the Phase II WWTP Improvements provided for by Paragraph 3 above, and the action plan provided for by Paragraphs 5, 6 and 7, the Respondent shall, at all times, operate its POTW (including the collection system and lift stations) as efficiently and effectively as possible, and shall be subject to stipulated penalties for its failure to comply with the overflow monitoring requirements, overflow response requirements, and overflow reporting requirements of the Permit and 327 IAC 2-6.1.

 

12.       The Respondent shall ensure that the influent flow meter and the effluent flow meter are properly maintained and operational at all times. The Respondent shall utilize the existing final effluent flow meter and the new raw influent flow meter, respectively, to obtain the effluent flow and the influent flow values that are reported on the applicable MRO form.

 

In the event that either the influent or effluent flow meter becomes inoperable, the Respondent shall notify the IDEM case manager verbally within 3 calendar days and in writing within 7 calendar days after it has knowledge of this event.  Such notification shall describe the anticipated length of downtime, the cause(s) of the down time, the measures taken or to be taken by the Respondent to minimize the downtime, and the timetable for bringing the meter(s) operational as quickly as possible.

 

13.       The Respondent shall prevent sludge, including any sludge removed during the cleaning and rehabilitation of any of the wastewater treatment tanks, from being released to the environment or waters of the state, and shall lawfully dispose of all sludge, as required by Part II.B.4 of the Permit.  Additionally, the Respondent shall maintain detailed records pertaining to the sludge disposal, including but not necessarily limited to, landfill approval and disposal records, land application records, sludge disposal volumes, payment receipts, and hauling records.

 

14.       All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

 

Terry Ressler, Enforcement Case Manager

Indiana Department of Environmental Management

Office of Enforcement – Mail Code 60-02

100 North Senate Avenue

Indianapolis, IN  46204-2251

 

15.       In the event the following terms and conditions are violated, unless the violation is determined Force Majeure, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:

 

Order Paragraph Number

Violation

Penalty Amount

3

Failure to complete the Phase II WWTP Improvements by March 16, 2008.

$500 per each week

4

Discharge from the collection system, discharge from any bypass point, or failure to comply with any term or condition contained in the Permit.

$500 per violation

5

Failure to submit an action plan within 60 days of becoming aware that the Compliance Demonstration cannot be achieved.

$500 per each week

6

Failure to timely submit a revised action plan if required.

$500 per each week

7

Failure to timely implement the approved action plan, or failure to comply with any milestone dates contained in the approved action plan.

$500 per each week late

8

Failure to timely submit written notification of completion of each action plan task.

$250 per violation

10

For issuing a construction permit, issuing a capacity certification, or causing or allowing the construction of any sanitary sewer without written approval by IDEM.

$500 per violation

11

Failure to comply with the overflow monitoring requirements, overflow response requirements, and overflow reporting requirements of the Permit and 327 IAC 2-6.1

$500 per violation

12

Failure to ensure the influent and effluent flow meters are properly maintained and operated, or failure to timely submit notifications to IDEM if a flow meter becomes inoperable and bring the meter operational as quickly as possible.

$500 per violation

13

For causing the discharge of sludge into the environment or waters of the state, or for failure to maintain records pertaining to the sludge disposal as required.

$500 per violation

 

16.       Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that Complainant has determined a stipulated penalty is due.  Assessment and payment of stipulated penalties shall not preclude Complainant from seeking any additional relief against Respondent for violation of this Agreed Order.  In lieu of any of the stipulated penalties set out above, Complainant may seek any other remedies or sanctions available by virtue of Respondent’s violation of this Agreed Order or Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

 

17.       Stipulated penalties are payable by check to the “Environmental Management Special Fund.”  Checks shall include the Case Number of this action and shall be mailed to:

 

Indiana Department of Environmental Management

Cashier – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

18.       “Force Majeure”, for purposes of this Agreed Order, is defined as any event arising from causes totally beyond the control and without fault of the Respondent that delays or prevents the performance of any obligation under this Agreed Order despite Respondent’s best efforts to fulfill the obligation.  The requirement that the Respondent exercise “best efforts to fulfill the obligation” includes using best efforts to anticipate any potential force majeure event and best efforts to address the effects of any potential force majeure event (1) as it is occurring and (2) following the potential force majeure event, such that the delay is minimized to the greatest extent possible.  “Force Majeure” does not include changed business or economic conditions, financial inability to complete the work required by this Agreed Order, or increases in costs to perform the work.

 

The Respondent shall notify IDEM by calling the case manager within three (3) calendar days and by writing no later than seven (7) calendar days after it has knowledge of any event which the Respondent contends is a force majeure.  Such notification shall describe the anticipated length of the delay, the cause or causes of the delay, the measures taken or to be taken by the Respondent to minimize the delay, and the timetable by which these measures will be implemented.  The Respondent shall include with any notice all available documentation supporting its claim that the delay was attributable to a force majeure.  Failure to comply with the above requirements shall preclude Respondent from asserting any claim of force majeure for that event.  The Respondent shall have the burden of demonstrating that the event is a force majeure.  The decision of whether an event is a force majeure shall be made by IDEM.

 

If a delay is attributable to a force majeure, IDEM shall extend, in writing, the time period for performance under this Agreed Order, by the amount of time that is directly attributable to the event constituting the force majeure.

 

19.       This Agreed Order shall apply to and be binding upon Respondent and its successors and assigns. Respondent’s signatories to this Agreed Order certify that they are fully authorized to execute this Agreed Order and legally bind the party they represent.  No change in ownership, corporate, or partnership status of Respondent shall in any way alter its status or responsibilities under this Agreed Order.

 

20.       In the event that any terms of this Agreed Order are found to be invalid, the remaining terms shall remain in full force and effect and shall be construed and enforced as if this Agreed Order did not contain the invalid terms.

 

21.       The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred.  Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

 

22.       This Agreed Order is not and shall not be interpreted to be a permit or a modification of an existing permit.  This Agreed Order, and IDEM’s review or approval of any submittal made by Respondent pursuant to this Agreed Order, shall not in any way relieve Respondent of its obligation to comply with the requirements of its applicable permit or any applicable Federal or State law or regulation.

 

23.       Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that Respondent’s compliance with any aspect of this Agreed Order will result in compliance with the provisions of any permit, order, or any applicable Federal or State law or regulation.  Additionally, IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of Respondent’s efforts to comply with this Agreed Order.

 

24.       Nothing in this Agreed Order shall prevent or limit IDEM’s rights to obtain penalties or injunctive relief under any applicable Federal or State law or regulation, except that IDEM may not, and hereby waives its right to, seek additional civil penalties for the same violations specified in the NOV.

 

25.       Nothing in this Agreed Order shall prevent IDEM (or anyone acting on its behalf) from communicating with the EPA or any other agency or entity about any matters relating to this enforcement action.  IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of such communications with the EPA or any other agency or entity.

 

26.       This Agreed Order shall remain in effect until Respondent complies with the terms of Order Paragraph Nos. 3 through 17 and IDEM issues a Resolution of Case letter.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

Mark W. Stanifer, Chief

 

Printed:

 

 

Water Enforcement Section

 

Title:

 

 

Office of Enforcement

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

COUNSEL FOR COMPLAINANT:

 

COUNSEL FOR RESPONDENT:

For the Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

 

 

 

 

 

Deputy Attorney General

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2007.

 

 

For The Commissioner:

 

 

 

Signed on June 18, 2007

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement