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Home My WebLink About07.a.3) Update on source control issues involving Caffé Classico Foods in Concord.I Q. 3) Central Contra Costa Sanitary District January 31, 2013 TO: BOARD OF DIRECTORS VIA: CURT SWANSON, PROVISIONAL GENERAL MANAGER DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MANAGER FROM: TIM POTTER, ENVIRONMENTAL COMPLIANCE SUPERINTENDENT (9- SUBJECT: SETTLEMENT OF CAFFE CLASSICO FOODS ENFORCEMENT ACTION Caffe Classico Foods is a food manufacturer producing gelato and sorbet products from a facility located on 2500 Annalisa Drive in Concord. Previous reports to the Board summarized Caffe Classico's compliance history for violations of Title 10 of the District Code (Source Control Ordinance) and the District's initiation of a formal enforcement action in December 2012. District staff conducted informal settlement meetings with Caffe Classico on January 2, 2013 and January 23, 2013. A negotiated settlement of the formal enforcement action was reached during the January 23, 2013 settlement meeting. The elements of this negotiated settlement were communicated to Caffe Classico in a letter dated January 29, 2013 (enclosed). If Caffe Classico signs the Authorization of Civil Penalties and Waiver of Appeals document, the formal enforcement action will be resolved and Caffe Classico will need to operate under the compliance schedule elements in the settlement agreement. In summary, the settlement agreement includes the following major elements: • Assessment of $75,000 Administrative Civil Penalty with the majority suspended pending Caffe Classico achieving and maintaining compliance by specified deadlines. • Caffe Classico achieving zero discharge of process wastewater by a specified deadline, or alternatively installing upgraded pretreatment equipment by a specified deadline with interim milestones. • Updating the Standard Operating Procedures, providing training to staff, and submitting appropriate documentation to the District by specified deadlines. Caffe Classico's responsibility for the outstanding capacity fee for the operations at the 2500 Annalisa Drive property is addressed in the settlement agreement. The final resolution of the outstanding capacity fee for this property will be addressed by engaging the property owner and will require formal approval of the resolution by the Board. Enclosure Central HAND DELIVERED January 29, 2013 Larry Leser, CEO Caffe Classico Foods 2500 Annalisa Drive Concord, CA 94520 Dear Mr. Leser. Sanitary District Fax no. 925- 372 -7835 CUR77S W. SWANSON Pmvislonal General Manager KENTON L ALM Counsel lorthe Dlstrld (510) 808 -2000 ELAINE R. BOEHME Secretary of me DlsWct SETTLEMENT OF ENFORCEMENT ACTION TO RESOLVE DISTRICT CODE VIOLATIONS In a letter dated December 11, 2012, Central Contra Costa Sanitary District (District) initiated a formal enforcement action against Caffe Classico Foods (Caffe Classico) for violations of the District's Source Control Ordinance (Title 10 of the District Code) documented at the manufacturing facility located at 2500 Annalisa Drive in Concord. The December 11, 2012 letter identified the violations documented from 2011 through 12/1 /12 and proposed settlement of the enforcement action through assessment of civil administrative penalties and completion of specified corrective actions within set compliance deadlines. The District and Caffe Classico met on January 2, 2013 and January 23, 2013 to negotiate settlement of the formal enforcement action. During the January 23, 2013 meeting, settlement was reached with Caffe Classico agreeing to the following elements: • Assessment of $75,000 administrative civil penalty with $65,000 suspended and payment of $10,000 in administrative civil penalties in two payments; the first $5,000 payment shall be made by 3/1/13 and the second $5,000 payment by 5/1/13. • Achieve zero discharge of process wastewater by 2/28/12 as the method to achieve compliance with the District's Local Discharge Limits. • Review and update the Standard Operating Procedures (SOPs) required to comply with the District's zero discharge standards. Submit the updated operating procedures to the District by 4/1/13. • Conduct training of all employees on elements of the Class III Zero Discharge 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 4/15/13. • Caffe Classico shall not be subject to assessment of any capacity fees including leased capacity fees. This settlement does not preclude the District from assessing applicable capacity fees from the property owner of 2500 Annalisa Drive in Concord. • If Caffe Classico discharges process wastewater to the sanitary sewer system after 2128/13 in violation of the Zero Discharge Permit, Caffe Classico shall pay the $65,000 suspended administrative civil penalty. Payment of this $65,000 shall be due 30 days after the Notice of Violation is issued. If Caffe Classico is unable to achieve zero discharge by 2/28/13, Caffe Classico agreed to the following settlement elements: Caffe Classics Foods January 29, 2013 Page 2 • Assessment of $75,000 administrative civil penalty with $60,000 suspended and payment of $15,000 in administrative civil penalties in three payments; the first $5,000 payment shall be made by 3/1/13, the second $5,000 payment by 5/1/13, and the third $5,000 payment by 6/1/13. • 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 March 1, 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 March 1, 2013. • Submit permit applications to all applicable permitting agencies (e.g. Contra Costa County Building Department, the District) to complete facility improvements to either achieve the zero discharge operations or upgrade the pretreatment system to ensure the O &G LDL can be met for current and potential expanded operations. Complete the application submittal by March 1, 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 March 1, 2013. • Caffe Classics shall be subject to assessment of a monthly leased capacity fee of $2,200 beginning from 2/1/13. The first payment shall be made by 3/1/13. Payment of the leased capacity fee shall not result in entitlement of capacity to the property. This settlement does not preclude the District from assessing applicable capacity fees from the property owner of 2500 Annalisa Drive in Concord. • If the facility improvements required to achieve zero discharge or upgrade the pretreatment system are not completed by 6/30/13, Caffe Classico shall pay the $60,000 suspended administrative civil penalty. Payment of this $60,000 shall be due by 7/15/13. The District may extend the 6/30/13 deadline if Caffe Classico takes all actions within its control to meet the deadline but the completion is prevented from occurring due to actions taken by other government agencies that Caffe Classico is not able to control. • This settlement shall encompass all Oil & Grease violations that occur between 12/2/12 through 6/30/13. Enclosed with this letter is an authorization and waiver form that must be signed and returned to the District by February 12, 2013 to complete the settlement agreement identified above and to resolve the enforcement action for the violations referenced in the December 11, 2012 letter and modified above. Payment of the penalty associated with this action will be due and payable according to the schedule identified above. Please call Tim Potter at 925 -229 -7380 or by email (tpotter @centralsan.org) if you have any questions about this letter. cerely, Danea Gemmell Environmental Services Division Manager DG/TP /mvp Enclosures cc: K. Alm, C. Swanson, T. Potter, Stacey Grassini, CCC Deputy District Attorney o. AUTHORIZATION OF CIVIL PENALTIES AND WAIVER OF APPEALS I have reviewed and understand the District's proposed settlement dated January 29, 2013 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 (with some of the penalty suspended and the remaining balance payable by the established payment schedule) and the required corrective actions in the District's letter dated January 29, 2013. 1 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 and modified to include Oil & Grease violations through June 30, 2013. 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