BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
LISA MADIGAN, Attorney General
of
the State of Illinois,
Complainant,
v.
FARMERS
&
TRADERS BANCSHARES,
INC., an Illinois corporation, and PEDRIANA
GUSTAFSON, INC., an Illinois corporation
Respondents.
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No. 08-98
(Enforcement-Water)
STIPULATION AND PROPOSAL FOR SETTLEMENT
Complainant, PEOPLE OF THE STATE OF ILLINOIS, by LISA MADIGAN, Attorney
General
of the State of Illinois, the Illinois Environmental Protection Agency ("Illinois EPA"),
and FARMERS
&
TRADERS BANCSHARES, INC., and PEDRIANA GUSTAFSON, INC.,
d/bla P G ARCHITECTURE ("Respondents"), have agreed to the making
of this Stipulation and
Proposal
for Settlement ("Stipulation") and submit it to the Illinois Pollution Control Board
("Board") for approval. This stipulation
of facts is made and agreed upon for purposes of
settlement only and as a factual basis for the Board's approval of this Stipulation and issuance of
relief. None of the facts stipulated herein shall be introduced into evidence in any other
proceeding regarding the violations
of the Illinois Environmental Protection Act ("Act"), 415
ILCS
5/1
et seq.
(2006), and the Board'sRegulations, alleged in the Complaint except as
otherwise provided herein.
It
is the intent of the parties to this Stipulation that it be a final
adjudication
of this matter.
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Electronic Filing - Received, Clerk's Office, July 14, 2008
I. STATEMENT OF FACTS
A.
Parties to the Stipulation
1.
On June 16, 2008, a Complaint was filed on behalf of the People of the State of
Illinois by Lisa Madigan, Attorney General of the State of Illinois, on her own motion and upon
the request
of the Illinois EPA, pursuant to Section 31 of the Act, 415 ILCS 5/31 (2006), against
the Respondents.
2.
The Illinois EPA is an administrative agency of the State of Illinois, created
pursuant to Section 4 of the Act, 415'ILCS 5/4 (2006).
3.
At all times relevant to the Complaint, Respondent Farmers & Traders
Bancshares, Inc. ("Farmers"), was and is an Illinois corporation that is authorized to transact
business in the State
of Illinois.
4.
At all times relevant to the Complaint, Respondent Pedriana Gustafson, Inc., ("PG
Architecture") was and is an Illinois corporation that is authorized to transact business in the
State
of Illinois.
5.
At all times relevant to the Complaint, Respondent Farmers owned an 8.26 acre
parcel
ofland located on the northeast comer of Illinois Route 23 and U.S. Route 30 in
Waterman, DeKalb County, Illinois ("Site").
6.
At all times relevant to the Complaint, Respondent PG Architecture conducted
construction activities on the Site on behalf
of Respondent Farmers.
7.
On March 21, 2007, the Illinois EPA inspected the Site.
8.
At this time, no erosion or sediment controls were in place on the eastern,
southern or western boundaries
of the Site. Access to the northern boundary of the property was
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Electronic Filing - Received, Clerk's Office, July 14, 2008
hampered by muddy conditions. A roadside ditch that formed the border between the Site and
U.S. Route 30 contained flowing water and was unprotected from siltation from the Site. Soils in
the vicinity
of the ditch were disturbed. A discharge pipe from the Site discharged to a small
drainage area, which then flowed to the roadside ditch. The roadside ditch in
tum flowed east to
a tributary
of the Somonauk Creek. Additionally, a complete storm water pollution prevention
plan ("SWPPP") and inspection reports were not available at the Site as required
by the terms of
the general National Pollutant Discharge Elimination System ("NPDES") permit for construction
site storm water discharges.
9.
From May 26,2006, to August 3, 2007, the Site was covered under the general
NPDES permit for construction site storm water discharges, numbered ILRIOF470.
B.
Allegations
of Non-Compliance
Complainant and the Illinois EPA contend that the Respondents have violated the
following provisions
of the Act and Board regulations:
Count
I:
Count II:
Count III:
Water Pollution, in violation
of Section 12(a) ofthe Act, 415 ILCS
5/12(a) (2006).
Water Pollution Hazard, in violation of Section 12(d) of the Act, 415
ILCS
5/12(d) (2006).
Failure to Comply with NPDES Permit, in violation of 12(f) of the Act,
415 ILCS 5/12(f) (2006), and Section 309.102(a)
of 35'111. Adm. Code.
c.
Admission of Violations
The Respondents admit to the violations alleged
in the Complaint filed in this matter and
referenced within Section I.B. herein.
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Electronic Filing - Received, Clerk's Office, July 14, 2008
D.
Compliance Activities to Date
1.
On September 13;2007, the Illinois EPA again inspected the site and confirmed
that construction and landscaping activities had been completed and sufficient erosion control
measures were in place at the Site.
II. APPLICABILITY
This Stipulation shall apply to and be binding upon the Complainant, the Illinois EPA
and the Respondents, and any officer, director, agent, or employee
of the Respondents, as well as
any successors or assigns
of the Respondents. The Respondents shall not raise as a defense to
any enforcement action taken pursuant to this Stipulation the failure
of any of their officers,
directors, agents, employees or successors or assigns to take such action as shall be required to
comply with the provisions
of this Stipulation. This Stipulation may be used against the
Respondents in any subsequent enforcement action or permit proceeding as
proof of a past
adjudication of violation of the Act and the Board Regulations for all violations alleged in the
Complaint in this matter, for purposes
of Sections 39 and 42 of the Act, 415 ILCS 5/39 and 42
(2006).
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Electronic Filing - Received, Clerk's Office, July 14, 2008
III. IMPACT ON THE PUBLIC RESULTING FROM ALLEGED NON-COMPLIANCE
Section 33(c)
of the Act, 415 ILCS 5/33(c)(2006), provides as follows:
In making its orders and determinations, the Board shall take into consideration
all the facts and circumstances bearing upon the reasonableness
of the emissions,
discharges, or deposits involved including, but not limited to:
1.
the character and degree of injury to, or interference with the protection of
the health, general welfare and physical property of the people;
2.
the social and economic value of the pollution source;
3.
the suitability or unsuitability ofthe pollution source to the area in which
it is located, including the question
of'priorityof location in the area
involved;
4.
the technical practicability and economic reasonableness of reducing or
eliminating the emissions, discharges or deposits resulting from such
pollution source; and
5.
any subsequent compliance.
In response to these factors, the parties
to this Stipulation state the following:
1.
The environment was threatened and the Illinois EPA's information gathering
responsibilities hindered by the Respondents' violations.
2.
There is social and economic benefit to the Site.
3.
Operation of the Site was suitable for the area in which it occurred.
4.
Installation of adequate erosion controls at the Site and compliance with the terms
of the NPDES general permit for storm water discharges was both technically practicable and
economically reasonable.
5.
Respondents have subsequently complied with the Act and the Board regulations.
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Electronic Filing - Received, Clerk's Office, July 14, 2008
IV. CONSIDERATION OF SECTION 42(h) FACTORS
Section 42(h)
of the Act, 415 ILCS 5/42(h)(2006), provides as follows:
In
determining the appropriate civil penalty to be imposed under ... this Section,
the Board is authorized to consider any matters
of record in mitigation or
aggravation of penalty, including but not limited to the following factors:
1.
the duration and gravity of the violation;
2.
the presence or absence of due diligence on the part of the respondent in
attempting to comply with requirements
of this Act and regulations
thereunder or to secure relief therefrom
as provided by this Act;
3.
any economic benefits accrued by the respondent because of delay in
compliance with requirements, in which case the economic benefits shall
be determined
by the lowest cost alternative for achieving compliance;
4.
the amount of monetary penalty which will serve to deter further
violations by the respondent and to otherwise aid in enhancing voluntary
compliance with this Act by the respondent and other persons similarly
subject to the Act;
5.
the number, proximity in time, and gravity of previously adjudicated
violations
of this Act by the respondent;
6.
whether the respondent voluntarily self-disclosed, in accordance with
subsection i
of this Section, the non-compliance to the Agency; and
7.
whether the respondent has agreed to undertake a "supplemental
environmental project," which means an environmentally beneficial
project that a respondent agrees to undertake in settlement
of an
enforcement action brought under this Act, but which the respondent is not
otherwise legally required to perform.
In
response to these factors, the parties to this Stipulation state as follows:
.1.
The Respondents violated terms
of the general NPDES permit for construction
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Electronic Filing - Received, Clerk's Office, July 14, 2008
site stonn water discharges from the Site. The violations began on or around March 21,2007,
and were subsequently individually resolved at various times before September 13, 2007.
2.
Respondents Farmers and PG Architecture were diligent in coming into
compliance with the Act and Board regulations, once the Illinois EPA notified them
of their
.noncompliance.
3.
Respondents Fanners and PG Architecture did not receive an economic benefit
from their noncompliance.
4.
Complainant and the Illinois EPA have detennined, based upon the specific facts
of this matter, that a penalty of Seven Thousand Five Hundred Dollars ($7,500.00), to be paid by
Respondent Fanners, and a penalty
of Seven Thousand Five Hundred Dollars ($7,500.00), to be
paid by Respondent PG Architecture, for a total penalty
of Fifteen Thousand Dollars
($15,000.00), will serve to deter further violations and aid in future voluntary compliance with
the Act and Board regulations.
5.
To Complainant's and the Illinois EPA's knowledge, Respondents Farmers and
PG Architecture have no previously adjudicated violations
of the Act.
6.
Self-disclosure is not at issue in this matter.
7.
The settlement of this matter does not include a supplemental environmental
project.
V.
TERMS OF SETTLEMENT
A.
Penalty Payment
1.
Respondent Fanners shall pay a civil penalty in the sum of Seven Thousand Five
Hundred Dollars ($7,500.00) within thirty (30) days from the date the Board adopts and accepts
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Electronic Filing - Received, Clerk's Office, July 14, 2008
this Stipulation, and;
2.
Respondent PG Architecture shall pay a civil penalty in the sum of Seven
Thousand Five Hundred Dollars ($7,500.00) within thirty (30) days from the date the Board
adopts and accepts this Stipulation.
B.
Interest and Default
1.
If the Respondents fail to make any payment required by this Stipulation on or
before the date upon which the payment is due, the Respondents shall be in default and the
remaining unpaid balance
of the penalty, plus any accrued interest, shall be due and owing
immediately. In the event
of default, the Complainant shall be entitled to reasonable costs'of
collection, including reasonable attorney's fees.
2.
Pursuant to Section 42(g) of the Act, interest shall accrue on any penalty amount
owed by the Respondents not paid within the time prescribed herein. Interest on unpaid penalties
shall begin
to accrue from the date such are due and continue to accrue to the date full payment
is received. Where partial payment is made on any penalty amount that is due, such partial
payment shall be first applied to any interest on unpaid penalties then owing.
C.
Payment Procedures
All payments required by this Stipulation shall be made by certified check or money
order payable to the Illinois EPA for deposit into the Environmental Protection Trust Fund
(UEPTF"). Payments shall besent by first class mail and delivered to:
Illinois Environmental Protection Agency
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Electronic Filing - Received, Clerk's Office, July 14, 2008
Fiscal Services
1021 North Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
The name, case number and the Respondents' federal tax identification number shall appear on
the face
of the certified check or money order. A copy ofthe certified check or money order and
any transmittal letter shall be sent to:
Vanessa Cordonnier
Assistant Attorney General
Illinois Attorney General's Office
69 W. Washington, Suite 1800
Chicago, Illinois 60602
D.
Future Compliance
1.
In addition to any other authority, the Illinois EPA, its employees and '
representatives, and the Attorney General, 'her employees and representatives, shall have the
right
of entry into and upon the Respondents' facility which is the subject of this Stipulation, at
all reasonable times for the purposes of conducting inspections and evaluating compliance status.
In conducting such inspections, the Illinois EPA, its employees and representatives, and the
Attorney General, her employees and representatives,
may take photographs, samples, and
collect information, as they deem necessary.
2.
This Stipulation in no way affects the responsibilities of the Respondents to
comply with any other federal, state
or local laws or regulations, including but not limited to the
Act and the Board Regulations.
3.
The Respondents shall cease and desist from future violations of the Act and
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Electronic Filing - Received, Clerk's Office, July 14, 2008
Board Regulations that were the subject matter of the Complaint.
E.
Release
from Liability
In consideration of the Respondents' payment of penalties totaling $15,000.00, its
commitment to cease and desist as contained in Section V.D.3 above, and upon the Board's
approval
of this Stipulation, the Complainant and the Illinois EPA release, waive and discharge
the Respondents from any further liability
or penalties for the violations of the Act and Board
Regulations that were the subject matter
of the Complaint herein. The release set forth above
does not extend to any matters other than those expressly specified in Complainant's Complaint
filed
on June 16,2008. The Complainant reserves, and this Stipulation is without prejudice to,
all rights of the State of Illinois against the Respondents with respect to all other matters,
including but not limited to, the following:
a.
criminal liability;
b.
liability for future violation
of state, federal, local, ai:ld common laws and/or
regulations;
c.
liability for natural resources damage arising out of the alleged violations; and
d.
liability or claims based on the Respondents' failure to satisfy the requirements of
this Stipulation.
Nothing in this Stipulation is intended as a waiver, discharge, release,
or covenant not to
sue for any claim
or cause of action, administrative or judicial, civil or criminal, past or future, in
law
or in equity, which the State of Illinois or the Illinois EPA may have against any person, as
defined
by Section 3.315 of the Act, 415 ILCS 5/3.315, or entity other than the Respondents.
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Electronic Filing - Received, Clerk's Office, July 14, 2008
F.
Enforcement and Modification of Stipulation
Upon the entry of the Board's Order approving and accepting this Stipulation, that Order
is a binding and enforceable order
ofthe Board and may be enforced as such through any and all
available means.
"G.
Execution of Stipulation
The undersigned representatives for each party to this Stipulation certify that they are
fully authorized
by the party whom they represent to enter into the terms and conditions of this
Stipulation and to legally bind them to it.
(THE REST OF THIS PAGE LEFT INTENTIONALLY BLANK)
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Electronic Filing - Received, Clerk's Office, July 14, 2008
WHEREFORE, the parties to this Stipulation request that the Board adopt and accept the
foregoing Stipulation and Proposal for Settlement as written.
PEOPLE OF THE STATE OF ILLINOIS,
LISA MADIGAN
Attorney General
State
of Illinois
MATTHEW J. DUNN, Chief
Environmental Enforcement/
Asbe
Litigation Division
BY:
. .
DATE:_-,J'-f-+Ir_O-+~-=O_b
_
I
1
FOR THE RESPONDENTS:
FARMERS
&
TRADERS BANCSHARES,
INC.
BY:
DATE:
-------------
PEDRIANA GUSTAFSON, INC.
BY:
DATE:
~----
12
THE ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
DOUGLAS P. SCOTT, Director
Illinois Environmental Protection Agency
Electronic Filing - Received, Clerk's Office, July 14, 2008
.' .
WHEREFORE, the parties to this Stipulation request that the Board adopt and accept the
foregoing Stipulation and Proposal for Settlement as written.
'",.
.'"
PEOPLE OF THE STATE OF ILLINOIS,
LISA MADIGAN
Attorney General
State
of Illinois
MATTHEW
1. DUNN, Chief
Environmental Enforcement!
Asbestos Litigation Division
BY:
ROSEMARIE CAZEAU,
Chief
Environmental Bureau
Assistant Attorney General
DATE:
_
FOR THE RESPONDENTS:
FARMERS
&
TRADERS BANCSHARES,
INC.
BY:
DATE:
-------==-~--=-----=-----
PEDRIANA
BY:
.....
DATE:
--'-01-JMJ--"-OO£.----_
12
THE ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY
DOUGLAS
P. SCOTT, Director
Illinois Environmental Protection Agency
BY:
--------------
ROBERT
A.
MESSINA
Chief Legal Counsel
DATE:
Electronic Filing - Received, Clerk's Office, July 14, 2008
