HomeMy WebLinkAbout08.a.1) General Manager Written Announcements (including Caffe Classico update)3. a - 1)
Board Meeting of December 20, 2012
Written Announcements:
Staff Updates
a) Promotion and Retirement
Dulce Petagara was promoted to Environmental Compliance Inspector I effective
December 10, 2012.
Wesley Adams, Assistant Engineer in the Capital Projects Division, retired on
December 14, 2012 after 13 years of service.
Source Control
b) Caffe Classico Foods Compliance Status
An update on source control issues involving Caffe Classico Foods in Concord is
attached.
Central Contra Costa Sanitary District
December 14, 2012
TO: HONORABLE BOARD OF DIRECTORS
VIA: ANN FARRELL, GENERAL MANAGER
DANEA GEMMEDNVIRONMENTAL SERVICES DIVISION
MANAGER 1 L—
E39
FROM: TIM POTTER, ENVIRONMENTAL COMPLIANCE SUPERINTENDENT
SUBJECT: CAFFE CLASSICO FOODS COMPLIANCE STATUS
Caffe Classico Foods is a food manufacturer producing gelato and sorbet products from
a facility located in the District's service area in North Concord. The District has issued
Class III Industrial User (IU) Permits to Caffe Classico Foods since 2005. Violations of
Title 10 of the District Code (Source Control Ordinance) through 2009 prompted the
District to process a formal enforcement action against Caffe Classico Foods that was
resolved in early 2010. According to the data reported, Caffe Classico Foods operated
in substantial compliance until September 2011. In September 2011, the CEO and
CFO of Caffe Classico Foods requested a meeting with the District where they
disclosed that they recently discovered the operations manager had been manipulating
the monitoring data to report the facility was in compliance with District standards when
it was likely not in compliance.
The District evaluated enforcement response options available and decided to initiate a
special study period for Caffe Classico Foods to properly characterize the process
wastewater discharge. Data generated during this period demonstrated that Caffe
Classico Foods' process discharge did violate the District's Local Discharge Limit (LDL)
for Oil & Grease - animal /vegetable (O &G). The 2012 Class III IU Permit issued to Caffe
Classico Foods includes:
Compliance Schedule element to propose an upgraded pretreatment system that
would enable the facility to discharge in compliance with the O &G LDL (6/30/12).
Compliance Schedule element to complete the installation of the upgraded
system (11/31/12).
Continued enhanced monitoring for O &G, Biochemical Oxygen Demand (BOD),
and Total Suspended Solids (TSS). BOD and TSS are used to calculate the
Sewer Service Charges.
N: \ENVRSRV\Source Control \Potter \Caffe Classcio Memo to the Board 12- 14- 12.doc
Caffe Classico Foods Compliance Status
December 14, 2012
Page 2of2
Caffe Classico Foods met the 6/30/12 Compliance Schedule deadline but failed to meet
the 11/30/12 deadline. The District issued Notices of Violation (NOVs) for all violations
that were documented during the special study period and under the Compliance
Schedule of the Class III IU Permit.
The District initiated a formal enforcement action against Caffe Classico Foods for
failing to meet the significant Compliance Schedule element to complete installation of
the upgraded pretreatment system. All recorded violations since the 2010 enforcement
action are included in the current case. The letter initiating the formal enforcement
action is enclosed. District staff will work with Caffe Classico Foods to expeditiously
resolve this enforcement action.
Also, as noted in the attached letter, we have recently discovered that Caffe Classico
Foods did not pay the appropriate amount of capacity fees when they began operation.
We are in the process of determining what an appropriate amount would be for their
current operation and will be pursuing the fees owed. We will keep the Board informed
on both of these pending actions with Caffe Classico Foods.
TP /AEF /DSG:sdh
Enclosure
N: \ENVRSRV\Source Control \Potter \Caffe Classcio Memo to the Board 12- 14- 12.doc
Central Contra
b FILE COPY
Sanitary District
Fax no. 925 -372 -7635
Express ANN E. FARRELL
Via Federal Ex
p General Manager
December 11, 2012
KENTON L. ALM
Counsel for the District
(610) 808 -2000
Larry Leser, CEO
ELAINE R. BOEHME
Caffe Classico Foods
Secretary ottheDlstrtct
2500 Annalisa Drive
Concord, CA 94520
Dear Mr. Leser:
SETTLEMENT OF DISTRICT CODE VIOLATIONS
Central Contra Costa Sanitary District (District) Source Control Section has issued Class III
Industrial User (IU) Permits that establish operating requirements for the Caffe Classico Foods
(Caffe Classico) facility located at 2500 Annalisa Drive in Concord, which include compliance
sampling and submittal of Periodic Compliance Reports (PCRs). In January 2010, a formal
enforcement action that involved multiple violations of the District's Source Control Ordinance was
settled. Recorded data generated after the 2010 enforcement action identified that Caffe Classico
was operating in substantial compliance through most of 2011. In September 2011, Caffe Classico's
CEO and CFO requested a meeting with the District where they identified that they recently
discovered the operations manager had been modifying the operational practices to document
compliance with the District's Local Discharge Limits (LDLs) when the process discharges were
probably not in compliance.
After considering enforcement response options available, the District decided to work with Caffe
Classico to conduct enhanced monitoring to:
• Accurately determine the composition of the process wastewater discharged from the facility;
and
• Provide the necessary data to design an upgraded pretreatment system to enable Caffe
Classico to comply with the District's LDLs.
During this special study period to obtain accurate monitoring data, the District informed Caffe
Classico that:
• All violations of District Code and LDLs would be cited using Notice of Violations (NOVs),
and
• The District would refrain from escalating the enforcement response unless Caffe Classico
failed to comply with the standards set for the special study period and Compliance
Schedule in the Class III IU Permit to design and install an upgraded pretreatment system.
The current Class III IU Permit contains two Compliance Schedule elements related to upgrading
the pretreatment system that require:
• Submittal of plans for an upgraded pretreatment system by 6/30/12, and
• Complete installation of the upgraded pretreatment system by 11/30/12.
® RecYc ed hper
Caffe Classico Foods
December 11, 2012
Page 2
Caffe Classico met the 6/30/12 deadline to submit the plans but failed to meet the 11/30/12 deadline
to complete installation of the upgraded pretreatment system. Caffe Classico requested a four (4)
month extension to the Compliance Schedule requirement to complete installation of the upgraded
pretreatment system. The District did not grant this extension since Caffe Classico did not commit to
pursuing completion of the upgraded pretreatment system installation after 6/30/12 (e.g. no-permits
obtained, equipment not ordered). The District is initiating formal enforcement for failing to meet the
Compliance Schedule deadline which includes all cited violations since resolution of the 2010 formal
enforcement action.
The table below summarizes the violations of the Source Control Ordinance recorded for Caffe
Classico Foods since January 2010.
CCCSD
Number of
Description of violation
Ordinance
Citations
Section
10.08.070
72
Pollutant limit violation:
• Oil and Grease (O &G) - animal /vegetable (3/31/11)
(NOTE: The pH
. pH (9/30/11)
violations prior to
. O &G - animal /vegetable (9/30/11)
9/20/12 were
. pH (3 events from 9/7/11 to 10112/11)
cited under
. O &G - animal /vegetable (10/12/11)
section
. O &G - animal /vegetable (10/25/11)
10.08.040 which
. O &G - animal /vegetable (11/22/11)
has the same
pH (51 events from 10/12/11 to 4/6/12)
penalty
assessment;
. O &G - animal /vegetable (1/20112)
they are included
• O &G - animal /vegetable (3/5/12)
under section
• O &G - animal /vegetable (3/7/12)
10.08.070 which
• O &G - animal /vegetable (3/14/12)
could have been
• O &G - animal /vegetable (5/31/12)
cited as well.)
• O &G - animal /vegetable (6/28/12)
• O &G - animal /vegetable (7/31/12)
O &G - animal /vegetable (8/31/12)
• O &G - animal /vegetable (9/20/12)
• pH (9/20/12)
• O &G - animal /vegetable (10/26/12)
• O &G - animal/vegetable (11129/12)
10.12.040.0
54
Failure to notify District of pH discharge violations (51 events)
for the period from 10/12/11 to 4/6/12; Failure to conduct pH
meter calibration (7/1/12 and 10/1/12); Failure to meet
Compliance Schedule to complete installation of upgraded
pretreatment system 12/1/12
10.12.050
2
Failure to conduct compliance resampling within 30 days of
becoming aware of a LDL violation (5/8/11); Failure to submit
required pH strips with PCR 11/10/12
10.16.090
1
Failure to notify District of O &G discharge violation 4/10/11
Caffe Classico Foods
December 11, 2012
Page 3
The violations referenced in the above table resulted in the issuance of six (6) Notices of Violation
(NOV) on:
• June 2, 2011 (NOV #3211)
• October 28, 2011 (NOV #3213)
• January 25, 2012 (NOV #3272)
• May 31, 2012 (NOV #3275)
• December 6, 2012 (NOV #3327)
• December 11, 2012 (NOV #3328)
A pH limit excursion was recorded on 2/22/10 which prompted a Warning Notice (WN) to be issued
on 2/25/10. The condition cited in this WN is not included in the calculation of penalties.
District staff worked with Caffe Classico to achieve compliance after the September 2011
notification. However, the failure of Caffe Classico Foods to meet the significant Compliance
Schedule element on 11/30/12 prompts the District to pursue formal enforcement through the
assessment of Administrative Civil Penalties as allowed in Section 10. 16.065 of District Code. The
administrative penalty available to the District through such an action varies depending on the type
of violation (e.g. late report, discharge limit violation) and range from $2,000 to $5,000 for each
violation referenced above. The total penalties that could be assessed for these violations are
$529,000 (72 violations X $5,000; 55 violations X $3,000; 2 violations X $2,000).
The pursuit of a formal administrative enforcement action may involve significant resources by both
parties involved in the action. In an attempt to direct the District's and Caffe Classico's resources in
a manner that achieves compliance while minimizing the time spent on the enforcement action itself,
the District proposes a settlement to this case. The District's proposed settlement includes the
payment of a $75,000 penalty to the District and the following corrective actions:
• Review and update the Standard Operating Procedures (SOPs) required to comply with the
District's discharge limits and the Class III IU Permit conditions. Submit the updated
operating procedures to the District by January 31, 2013.
• Evaluate the existing pH control and monitoring system and the SOPs for facility personnel to
respond to alarm conditions for pH excursions to ensure the facility maintains compliance
with the District's pH LDL. Submit a summary report of this evaluation and any planned
changes to the District by January 31, 2013.
• Upgrade the pretreatment system to ensure the O &G LDL can be met for current and
potential expanded operations. Complete the installation of the upgraded pretreatment
system by April 15, 2013.
• Conduct training of all employees on elements of the Class III IU Permit and their roles and
responsibility to ensure Caffe Classico operates in compliance with the permit conditions.
Complete this training for all existing employees and submit documentation of the training to
the District by February 28, 2013.
In addition to the penalties described above, District records indicate that Caffe Classico's failure to
obtain building permits from Contra Costa County during the facility's operation has resulted in the
appropriate Capacity Fees not being paid to the District. We are working to determine the amount of
Capacity Fees owed and if any parties (e.g, prior business owner, property owner) may bear some
liability for these fees.
NAENVRSRV\Source ControltFormal Enforcement\Cases \Caffe Classico \SettlementLetterl2- 12.doc
Caffe Classico Foods
December 11, 2012
Page 4
The District proposes to schedule an informal conference to resolve this case. In order for this
settlement process to proceed expeditiously, Source Control Section staff will contact you within five
(5) days to set up the informal settlement conference. This meeting and resolution of the case
should be completed prior to January 11, 2013, unless a mutually agreeable extension is agreed
upon. As previously noted, the District can seek penalties up to $524,000 should we need to
proceed with an Administrative Complaint for Civil Penalties.
Enclosed with this letter is an authorization and waiver form that we will require you to complete if
we can reach a settlement during the informal conference. Payment of the penalty associated with
this action will be due and payable within 30 days of the date on the signed authorization and waiver
form. The District will submit an invoice to Caffe Classico Foods once the signed form is received.
Also enclosed is an Enforcement Chronology for your review to understand the evidence that the
District is using to pursue this action. In addition, you may review the District's evidence supporting
these charges during regular business hours at the District's office at 5019 Imhoff Place, Martinez,
California. Please call Tim Potter at 925 - 229 -7380 or by email (tpotter @centralsan.org) if you have
any questions about this letter, you want to review the file or to set up the conference identified
above. If Tim Potter is not available, contact Jeremy Talarico at 925- 229 -7387
otalarico @centraisan.org).
Sincerely,
QW, --J�
Danea Gemmell
Environmental Services Division Manager
DG /JM2/TP /mvp
Enclosures
cc: K. Alm
A. Farrell
T. Potter
Stacey Grassini, CCC Deputy District Attorney
NAENVRSRV\Source ControhFormal Enforcement \Cases\Caffe Classlco lSet0ementLetterl2- 12.doc
AUTHORIZATION OF CIVIL PENALTIES AND WAIVER OF APPEALS
I have reviewed and understand the District's proposed settlement dated December 11, 2012 for
violations of the CCCSD Source Control Ordinance (Title 10) that occurred at the Caffe Classico
Foods facility. By signing this authorization and waiver form, I accept the terms of the proposed
settlement including the imposition of civil penalties equal to $75,000 and the required corrective
actions in the District's letter dated December 11, 2012.
I stipulate that I waive all rights to a hearing, appeal, or any other review in this matter, including
but not limited to, filing action in the Superior Court of California. By accepting the proposed
settlement, I understand that I am resolving the enforcement action taken by the District for all
violations noted,in the original proposed settlement letter date December 11, 2012.
Acknowledged and Accepted:
Signature Date
Print Name
Title
Facility Name
Please submit completed form to:
Danea Gemmell
Environmental Services Division Manager
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553
CCCSD ENFORCEMENT CHRONOLOGY:
Caffe Classico Foods
2500 Annalisa Drive
Concord, CA 94520
DATE
DOCUMENT
ACTIONS /FINDINGS
2/23/10
E -mail from Caffe
E -mail from Andrew Branagh to J. Talarico
Classico Foods
notifying of pH discharge limit violation on
2/22/10, which was corrected the same day, and
corrective actions taken.
2/25/10
Warning Notice 2761
. WN by Fed Ex for discharge of prohibited
substance or characteristic with the pH being
above 11.5.
3/16/10
CCCSD Inspection
. Annual inspection by J. Talarico and witnessed
Report
IU self - sampling event. Verified pH alarm had
been installed.
3131/11
CCCSD Inspection
. Annual inspection by J. Talarico and witnessed
Report
IU self - sampling event.
4/27/11
Periodic Compliance
• PCR submitted by Caffe Classico Foods with
Report (PCR)
the wrong set of analytical results.
(maintained in file)
6/2/11
Analytical Results
. Caffe Classico Foods provided the analytical
(maintained in file, see
results from the 3/31/11 sampling event that
attached Enforcement
were omitted from the PCR submitted 4/27/11.
Chronology Sampling
Summary)
Notice of Violation 3211
. NOV by Fed Ex for specific pollutant limit
violation for oil & grease on 3/31/11 sampling
event, failure to notify the District within 24
hours of becoming aware of this violation, and
failure to perform re- sampling for oil & grease
within 30 days of becoming aware of the
violation.
6/17/11
Response to NOV 3211
Sample results submitted for re- sampling
(Analytical results
performed 6/7/11 documenting a return to
maintained in file)
compliance, and letter identifying corrective
actions taken in response to the three violations
cited.
9/30/11
CCCSD Inspection
. J. Talarico witnessed IU self - sampling event,
Report
and split those samples with the IU.
Analytical Results
• CCCSD analytical results reporting an oil &
grease violation in the split sample.
Page 1 of 5
DATE
DOCUMENT
ACTIONS /FINDINGS
10/12/11
CCCSD Inspection
• J. Talarico witnessed IU compliance sampling
Report
event and collected concurrent samples. Caffe
Classico Foods provided written notification of
oil & grease violation from 9/30/11 sampling
event and pH violation that occurred 9/30/12.
10/25/11
CCCSD Inspection
a J. Talarico witnessed IU compliance sampling
Report
event
10/27111
E -mail from Caltest
a E -mail from Caltest to CCCSD Laboratory
Analytical Laboratory
notified that the oil & grease sample collected
10/12/11 could not be analyzed due to the solids
content.
10/28/11
Notice of Violation 3213
a NOV by Fed Ex for discharge of prohibited
substance or characteristic with the pH being
below 5.5, and specific pollutant limit violations
for oil & grease on 9/30/11 split sampling event.
11/15/11
PCR (maintained in file,
a PCR included analytical results from 9/30/11,
corrective actions
10/12/11, and 10/25/11 sampling events, and
attached)
corrective actions taken in response to NOV
3213.
11/22/11
CCCSD Inspection
a J. Talarico witnessed IU compliance sampling
Report
event.
1/5/12
Analytical Results
a Caffe Classico Foods submitted analytical
(maintained in file,
results from 11/22/11 sampling event,
cover letter attached)
documenting an oil & grease violation.
Response to NOV 3213
a Letter submitted listing corrective actions taken
and future procedures to be implemented.
Sample results for the re- sampling required by
the NOV were previously submitted with the
PCR.
1/20/12
CCCSD Inspection
a J. Talarico witnessed IU compliance sampling
Report
event.
1125/12
Notice of Violation 3272
a NOV by Fed Ex for discharge of prohibited
substance or characteristic with the pH being
below 5.5 during 3 separate time periods on the
pH strip chart for the period 9/7/11- 10/12/11,
and specific pollutant limit violations for oil &
grease on three sampling events: 10/12/11,
10/25/11, 11/22/11.
2/2/12
Analytical Results
Caffe Classico Foods submitted analytical
(maintained in file,
results from 1/20/12 sampling event,
cover letter attached)
documenting an oil & grease violation.
Page 2 of 5
DATE
DOCUMENT
ACTIONSIFINDINGS
3/5/12
CCCSD Inspection
a J. Talarico performed unannounced sampling at
Report
Caffe Classico Foods for oil & grease, BOD,
TSS, and TDS.
Analytical Results
. CCCSD analytical results reporting an oil &
grease violation in the sample.
3
CCCSD Inspection
. Annual inspection by J. Talarico and witnessed
Report
IU self - sampling event.
3/14/12
CCCSD Inspection
. J. Talarico performed unannounced sampling at
Report
Caffe Classico Foods for oil & grease, BOD,
TSS, TDS, and COD.
Analytical Results
. CCCSD analytical results reporting an oil &
grease violation in the sample.
4/17/12
CCCSD Inspection
. J. Talarico hand delivered permit renewal to
Report
Larry Leser at Caffe Classico Foods. Permit
maintained in file.
4/24/12
PCR (maintained in file,
. PCR included analytical results from 3/7/12
corrective actions
sampling event, and corrective actions taken.
attached)
5/31/12
CCCSD Inspection
. J. Talarico witnessed IU self- sampling event
Report
and issued-NOV 3275
Notice of Violation 3275
. NOV for 51 pH discharge limit violations (see
Table 1) noted in PCR submitted April 2012;
failure to notify CCCSD of pH discharge limit
violations, for specific pollutant limit violations
for oil & grease on four sampling events:
1/20/12, 3/5/12, 3 17/12, and 3/14/12.
6/11/12
Analytical Results
• Caffe Classico Foods submitted analytical
(maintained in file, see
results from 5/31/12 sampling event,
attached Enforcement
documenting an oil & grease violation.
Chronology Sampling
Summary)
6/28/12
CCCSD Inspection
J. Talarico witnessed IU self - sampling event.
Report
6/29/12
Pretreatment Plans
. Caffe Classico Foods submitted plans for a new
(maintained in file)
pretreatment system to be installed.
7/9/12
Analytical Results
o Caffe Classico Foods submitted analytical
(maintained in file, see
results from 6/28/12 sampling event,
attached Enforcement
documenting an oil & grease violation.
Chronology Sampling
Summary)
7/31/12
CCCSD Inspection
o J. Talarico witnessed IU self - sampling event.
Report
Page 3 of 5
DATE I DOCUMENT I ACTIONS /FINDINGS
S/31/1Z
CCCSD Inspection
Report
. J. Talarico witnessed IU self - sampling event.
Analytical Results
. Caffe Classico Foods submitted analytical
results from 8/31/12 sampling event,
(maintained in file, see
results from 7/31/12 sampling event,
documenting an oil & grease violation.
attached Enforcement
documenting an oil & grease violation.
Chronology Sampling
Summary)
Summary)
CCCSD Inspection
9/20/12
CCCSD Inspection
. J. Talarico witnessed IU self - sampling event.
date for installing pretreatment equipment.
Report
PCR (maintained in file,
11/29/12
Analytical Results
. Caffe Classico Foods submitted analytical
(maintained in file, see
results from 8/31/12 sampling event,
attached Enforcement
documenting an oil & grease violation.
Chronology Sampling
Summary)
10/26/12
CCCSD Inspection
J. Talarico witnessed I self- sampling event.
Report
date for installing pretreatment equipment.
11/9/12
PCR (maintained in file,
a PCR included analytical results from 9/20/12
corrective actions
sampling event documenting oil & grease and
attached)
pH violations, and corrective actions taken.
11/19/12
Letter from Caffe
. Caffe Classico Foods letter to T. Potter
Classico Foods
requesting an extension to the due date for
requesting extension
installing pretreatment equipment.
11/27/12
E -mail from Caffe
• E -mail from Lary Leser to J. Talarico with
Classico Foods
supplemental information to the extension
request.
11/29/12
CCCSD Inspection
Report
. J. Talarico witnessed IU self - sampling event.
Analytical Results
(maintained in file, see
. Caffe Classico Foods submitted analytical
results from 10/26/12 sampling event,
attached Enforcement
documenting an oil & grease violation.
Chronology Sampling
Summary)
Letter from CCCSD to
Caffe Classico Foods
. Letter from CCCSD to Caffe Classico Foods
denying their request for an extension to the due
date for installing pretreatment equipment.
12/3/12
CCCSD Inspection
Report
. J. Talarico went to the facility and observed that
I pretreatment equipment had not been installed.
Page 4 of 5
DATE
DOCUMENT
ACTIONS /FINDINGS
12/6/12
Notice of Violation 3327
NOV by Fed Ex for failure to meet permit
with Supplemental
condition of installing pretreatment equipment,
failure to meet permit condition of calibrating the
pH meter twice during the last reporting period,
for specific pollutant limit violation for pH on the
9/20/12 sampling event, and for specific
pollutant limit violations for oil & grease on six
sampling events: 5131/12, 6/28/12, 7/31/12,
8/31/12, 9/20/12, and 10/26/12.
12/7/12
Analytical Results
. Caffe Classico Foods submitted analytical
(maintained in file, see
results from 11/29/12 sampling event,
attached Enforcement
documenting an oil & grease violation.
Chronology Sampling
Summary)
12/11/12
Notice of Violation 3328
NOV by Fed Ex for specific pollutant limit
violation for oil & grease on 11 /26/12 sampling
event.
Attachment 1: Enforcement Chronology Sampling Summary
Page 5 of 5
Attachment 1:
Enforcement Chronology Sampling Summary
Sampled By:
Sample .
Date
Oil &
Grease
(mg /L)
BOD*
(mg /L)
TSS*
(mg /L)
Caffe Classico
3/31/2011
470
6900
1080
Caffe Classico
6/7/2011
290
5400
1160
Caffe Classico
Split
9/30/2011
1400
4600
2090
CCCSD Split
9/3012011
460
1920
2103
Caffe Classico
Concurrent
10/12/2011
12000
N/A
N/A
CCCSD
Concurrent
10/12/2011
**
N/A
N/A
Caffe Classico
10/25/2011
12000
N/A
N/A
Caffe Classico
11/22/2011
4600
N/A
N/A
Caffe Classico
1/20/2012
4700
30000
6600
CCCSD
3/5/2012
420
* **
***
Caffe Classico
3/7/2012
1300
7100
1090
CCCSD
3/14/2012
6800
16290
5730
CCCSD****
3/14/2012
N/A
15000
N/A
Caffe Classico
5/31/2012
3300
11000
5420
Caffe Classico
6/28/2012
3600
8600
4960
Caffe Classico
7/31/2012
6200
29000
42900
Caffe Classico
8/31/2012
45000
21000
20600
Caffe Classico
9/20/2012
1000
2600
1160
Caffe Classico
1 10/26/2012
5901
43001
2120
Caffe Classico
1 11/29/20121
9501
52001
765
* = Data for billing purposes only.
** = Caltest Analytical Laboratory unable to analyze sample.
See 10/27/2011 e-mail.
*"* = Sample interference yielded no data.
"*** = McCampbell BOD analysis for comparison to CCCSD analysis.
N/A = Sample not collected for the specified constituent.