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Environmental Management Department recommending the Board consider the following:
1) Review the original case and settlement agreement (Attachment C and D) with American Gas owner and operator, Stefka Dmitrova; and
2) Approve and authorize the Chair to sign the new Settlement Agreement (B), prepared by County Counsel upon Environmental Management’s negotiation with American Gas for a reduced lump sum payment of fees owed.
FUNDING: Certified Unified Program Agency (CUPA) enforcement penalties are deposited into an account held specifically for such fees which fund the CUPA program for training and emergency response equipment.
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DISCUSSION / BACKGROUND
On June 12th, 2017, Environmental Management employee Matt Lewis, acting on behalf of CUPA’s Hazardous Materials Management Program, filed an Administrative Enforcement Order against respondent, Stefka Dmitrova, for violations pursuant to the authority of Health and Safety Code section 25404, at respondent’s business, American Gas Inc. Respondent filed a Notice of Defense and an Administrative hearing was held on December 7, 2017.
Prior inspections dating back to 2006 had delineated the same or similar violations, none of which had been sufficiently remedied and all of which were deemed to present a health and safety threat to the Environment and the Community. These violations fell within Health and Safety Codes 25299, 25299.7 and 25291 as well as California Code of Regulations Title 23.
Enforcement attempts were made prior to this Administrative Enforcement action via warnings and multiple agreements with the parties to make needed repairs and conduct necessary inspections. A former Administrative Enforcement Order was issued in April of 2016 following their non-compliance with said agreements. Respondent was found liable for $68,724 and the Department accepted a discounted penalty of $6,872 and $1,606 in Departmental costs. When the following inspection done by Matt Lewis in 2017 demonstrated no required issues had been remedied, this Administrative Enforcement Order was issued.
An order was made by the Administrative Law Judge on February 8th, 2018 ordering the respondents to pay CUPA a penalty fee of $30,000. An abstract of Judgment (Attachment C) was subsequently filed by County Counsel on May 22, 2018 and issued by the Court on May 23, 2018.
American Gas contacted Environmental Management this year to resolve this matter and negotiated a settlement of $25,000 ($5,000 discount) as they have received a Grant enabling them to make the necessary repairs to fix the health and safety hazards in the enforcement order.
Environmental Management is agreeable to this settlement arrangement and County Counsel has drafted an Agreement (Attachment B).
We request the Board’s approval to accept this Settlement Agreement and negotiated payment to close this matter and repay the CUPA program costs expended.
ALTERNATIVES
The Board may deny the acceptance of this Settlement Agreement, opting for other enforcement alternatives.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel reviewed negotiations and prepared the Settlement Offer (Attachment B).
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
N/A
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on two (2) original copies of the Settlement Agreement.
2) The Clerk of the Board will forward one (1) fully executed copy of the Settlement Agreement to the Environmental Management Department, for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Jeffrey Warren, Director