ILLINOIS POLLUTION CONTROL BOARD

March 21, 1984

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY,

)

Complainant,

v.

)

 PCB 83—40

OAKBROOK UTILITY COMPANY,

 INC.,

)

an Illinois corporation,

Respondent.

JAMES

L.

 MORGAN, ASSISTANT ATTORNEY GENERAL, APPEARED ON BEHALF

OF THE COMPLAINANT.

~7YNN& GERTINETTI

 (MR. PHILIP

 D. WYNN, OF COUNSEL) APPEARED ON

BEHALF OF THE RESPONDENT.

OPINION AND ORDER OF THE BOARD

 (by W.

3.

Nega):

This matter comes before the Board on the March

18,

1983

Complaint brought by the Illinois Environmental Protection Agency

(Agency) which alleged that, on specified dates between October

10, 1977 and July 21,

 1982, the Respondent allowed discharges

from the outfall pipes of its lagoon system to contain excessive

levels oL~BOD

 and suspended solids in violation of 35

 Ill. Adm.

Code 304.104(k)

 and 304.120(c)

 (formerly Rules 401(c) and 404(c)

of Chapter 3:

 Water Pollution Regulations

 and Section 12(a) of

the Illinois Environmental Protection Act (Act).

On June 10,

 1983,

 the Agency filed a Motion for Leave to

File an Amended Complaint.

 The Amended Complaint was filed to

reflect the fact that, since the filing of the original Complaint,

 the Respondent had amended its Articles of Incorporation to

change its corporate name from Belim Utility Company to Oakbrook

Utility Company,

 Inc. (Oakbrook Utility).

A hearing was held on August

2,

 1983.

 The parties filed a

Stipulation and Proposal for Settlement on September

 1983.

On October 19,

 1983, the Board entered an Interim Order

which required more information as to the status of any pending

grant applications by the City of Carlinville for the proposed

wastewater connection.

57-167

—2--

On December

8,

 1983,

 the Agency submitted Supplemental

Information pertaining to the prospects for funding the proposed

replacement of the wastewater treatment system serving the Oak—

brook 5th and 6th Additions by connection to the City of Carlin—

ville1s sewer

 system.

The Respondent, Oakbrook Utility, is an Illinois corporation

duly authorized to transact business in Illinois and is a public

utility which is regulated by the Illinois Commerce Commission.

The Respondent operates wastewater treatment facilities which

serve the homes located in the 5th and 6th Additions of the

Oakhrook Subdivision near the intersection of State Highways

4

and 108 by the eastern edge of the City of Carlinville in Macou—

pin County,

 Illinois.

Oakbrook Utility’s wastewater treatment facilities, which

 currently serve

 136 homes

 (with tie—ins presently available for

10 additional

 lots), include

 a sewer system and 4 single—cell

lagoons for the collection and treatment of wastewater generated

by the Oakbrook 5th and 6th Additions.

 (Stip.

2).

 Wastewater

collected from the Oakbrook 5th Addition

 first flows into one

lagoon and effluent from the lagoon then

 is discharged via an

outfall pipe into an unnamed tributary of Macoupin Creek, an

Illinois water.

 The Oakbrook 6th Addition is divided into an

eastern section (designated as “6A”)

 and a western half

 (called

“6B”).

 Although wastewater collected from sections 6A and 6B

flows into separate lagoons, the flows from the two lagoons then

go into a common lagoon which discharges effluent via an outfall

pipe into the unnamed tributary of Macoupin Creek.

 (Stip.

 2—3).

At the hearing,

 two homeowners in the subdivision testified

as to their concerns that the customers of the utility might have

to bear the ultimate costs of the proposed wastewater intercon-

nection between the Oakbrook Taggert woods area and the City of

Carlinville which had an estimated project cost of $230,320.

(R.

16—23;

 see:

 Exhibits A and B).

 It is stipulated that the City

of Carlinville, which has a population of about 5,675 people, has

expressed

 a willingness to allow the connection of the Oakbrook

 5th and 6th Additions to the city’s wastewater treatment system.

(Stip,

4).

As indicated in its Interim Order of October 19,

 1983, the

Board

 also very concerned that the costs of the connection of

the Oakbrook 5th and 6th Additions to the City of Carlinville’s

wastewater treatment system may ultimately be passed along to the

relatively small number of the Respondent’s customers

 in the form

of a substantial rate increase.

In its submission of Supplemental Information

 filed on

December

8,

 1983,

 the Agency concluded that, although the City of

Carlinville received a State grant

 for supplemental facilities

57-168

—3—

planning

 from the Agency on September 22,

 1978, the prospects of

obtaining

 funding of the proposed replacement of the wastewater

treatment system serving Oakbrook 5th and 6th Additions by con-

nection to the City of Carlinville’s sewer system under the

State’s Anti-Pollution Fund and the Federal Construction Grants

Program

 ‘rare quite

 limited at the current time”.

The Agency has pointed out that, because of severe

 funding

constraints,

 State funding of the project “is not possible at the

present time”.

 Federal

 funding of the project might possibly be

considered if the City of Carlinville were the prospective grant

 recipient,

 but this would require city ownership of the con-

structed facilities.

 If ownership was transferred to the city,

the Federal government would probably assign a new and separate

priority number to the project “which would likely not allow

federal

funding

the

foreseeable

future”.

Nonetheless,

the

Agency

has

suggested

that

other

possible

funding

methods

might

feasible.

Funding

may

available

through

the

Environmental

Facilities

Financing

Authority

which

issues

20—year

bonds

persons

businesses

(rather

than

munic-

ipalities)

solely

for

the

purpose

pollution

prevention

and

compliance

 with

pollution

control

regulation

requirements.

Because

the

bond

and

trustee

costs

involved,

the

minimum

bond

amount

$100,000.

The

Small

Business

Administration

(SBA)

sometimes

guarantees

such

loans

the

borrower

qualifies

small

business

and

meets

other

SBA

 requirements.

 Once the loan

guaranteed

the

SBA,

the

bonds

generally

have

AAA

rating

based

their

Federal

backing.

Another

 possible

funding

source

suggested

the

Agency

the

 Farmers

Home

Administration

(FmHA),

The

FmHA

may

willing

guarantee

loan

through

its

Business

Industrial

Loan

Pro-

gram,

if

the

Respondent

obtains

loan

through

local

lender

and

qualifies

 under

FmHA

regulations.

Similarly,

Oakbrook

Utility

relinquishes

ownership

the

utility’s

facilities

to

 home-

owner’s not—for-profit corporation, the

 FinHA’s Water

 & Waste

Disposal Loan Program might provide a loan for the connection

project0

 Interest rates under the FmHA’s Water & Waste Disposal

Loan Program are closely related to current market fluctuations

and are presently available at a 10.25

 rate.

The Board encourages

the

Respondent

fully

investigate

all

possible

sources

funding

order

eliminate

minimize

any

undue

financial

burden

its

customers,

the

Agency

has

sug-

gested,

it

appears

that,

in

the

past,

the

Respondent’s

“recal-

citrance

 in its pursuit of such funding” has had a detrimental

effect on the prospects for receiving adequate financial aid,

It.

hoped

that,

the

future,

the

Respondent

will

fully

utilize

all

the

resources

its

disposal

and

properly

consider

all

the

available

options

for

financing

which

are

realistically

attain-

able.

57-189

—4—

The

Board

notes

that,

the

Oakbrook

Utility

asks

for

rate

increase

for

the

connection

project,

such

rate

increase

request

within

the

 purview

of,

and

subject

review

by,

the

Illinois

Commerce

Commission

after

appropriate

public

hearings

and

public

input.

The

Board

 assumes that such review by the

Illinois

Commerce

Conm~iissionwill

adequately

safeguard

and

protect

the

interests

the

Respondent’s

customers

that

fair

and

equitable

decision

reached.

The proposed settlement agreement provides that the Res-

pondent admits the violations alleged in the Complaint and agrees

tO:

(1)

 cease and desist from further violations;

 (2) follow a

specified compliance plan and schedule to facilitate connection

the

Respondent’s

sewer

system

the

City

Carlinville’s

wastewater treatment plant

 (including the development of the

necessary engineering plans

 and specifications, obtaining the

requisite Agency construction and operating permits, disposition

of the existing lagoon system,

 and operation and maintenance of

the present lagoon system until connection to the Carlinville

plant);

 (3) begin operation of the connection to the City of

Carlinville’s wastewater treatment plant no later than October

1,

1984;

 (4) meet the Z-~gency’sinterim effluent limitations and

monitoring requirements for BODç and suspended solids; and

(5)

pay a stipulated penalty of $2,000 in two installments into the

Environmental Protection Trust Fund for the purpose of con-

trolling water pollution in Illinois.

 (Stip.

 5—8).

In evaluating this enforcement action and proposed settle-

ment agreement,

the

Board has taken into consideration all the

facts and circumstances

ii!

 :light of the specific criteria delin—

eated

in

Section

 33(c)

of the Act and finds the settlement agree-

ment acceptable

 under 35 Ill.

 Adm. Code 103.180.

The Board finds

 that the Respondent,

 Oakbrook Utility Com-

pany,

 Inc., has violated 35

 Ill. Adm.

 Code 304.104(a)

and

304.120(c)

 formerly

 Rules

 401(c) and 404(c) of Chapter 3;

 Water

Pollution Regulations

 and Section 12(a) of the Illinois Environ-

mental Proteciton Act0

 The Respondent will be ordered to cease

and desist

 from further violations;

 follow the specified com-

pliance plan and schedule;

 meet the requisite interim effluent

limitations;

 and to pay the stipulated penalty of $2,000 in two

jnstal

iments

This

 Opinion

constitutes

the

Board’s

findings

fact

and

conclusions

law

 in this

matter,

ORDER

 the Order

of

the

Illinois

Pollution

Control

Board

that:

57-170

—5--

1.

 The Respondent, the Oakbrook Utility Company,

 Inc.,

has

violated 35

 Ill. Adm.

 Code 304.104(a)

 and 304.120(c)

 formerly

Rules 401(c)

 and 404(c)

 of Chapter

3:

 Water Pollution Regula-

tions

 and Section 12(a) of the Illinois Environmental Protection

Act.

2.

 The Respondent shall cease and desist from further

violations.

3.

Within

days

the

date

this

Order,

the

Res-

pondent shall, by certified check or money order payable to the

State of Ilinois and designated for deposit into the Environ-

mental Protection Trust Fund, pay the first installment of

$500

 (on the total stipulated penalty of $2,000) which is

to be sent to:

Illinois Environmental Protection Agency

Fiscal Services Division

2200 Churchill Road

Springfield,

 Illinois

62706

Within 365 days of the date of the Order,

 the Respondent

shall pay the second installment of $1,500

 (on the total

stipulated penalty of $2,000), which is to be paid

 in the same

manner and fashion as the first installment.

 Additionally,

within 30 days of the date of the Order, the Respondent shall

file with the Agency a waiver of any rights of recovery of these

monies,

 as per its stipulated agreement with the Agency.

4.

 The Respondent shall comply with all the terms and

conditions of the Stipulation and Proposal

 for Settlement

 filed

on September

9,

 1983, which is incorporated by reference as if

fully set forth herein.

ORDERED.

I,

Christan

Moffett,

Clerk

 of the Illinois Pollution

Control Board, hereby certify that the above Opinion and Order

was adopted on

the

2. /

~

 day ~

 1984 by a vote

of___________

0•~’

i/i_I-

Chr~stant.

Moffett,

C~rk

/

Illinois Pollution Conlrol Board

57-171