NC0047091_Enforcement_20131009

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• KBI, LLC
780 SOUTH LAKE AVENUE
SUITE 719
;PASADENA CA 91101
tATTN: MR LOGAN BOGGS nx)kir is._ (uI qI I3
,rrn7/rm r n /c

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NCDENR
SUR'=ACE VVATER PROTECTION
610 EAST CENTER AVE
SUITE 301
MOORESVILLE NC 28115

FILIL
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Resources
Water Quality Programs
Pat McCrory Thomas A, Reeder John E, Skvarla, 1H
Governor Director Secretary
October 91, 2013
C LLLWTIC ,11,I) MAIL 70 tO 0780 0000 5562 1989
RETURIN RECEIPT gEQUESTED
Mr, Logan Boggs
K-131, LLC
80 South, T,,,,ake Avenue, Suite 719
Pasadena, California 91101
SUBJECT: Notice of Violation and Assessment of Civil
Penalty for Violations of N,C. General Statute
143-215,1(a)(6) and NPDES Perntrit No. NCO047091
Silver Maples WWTP
Cabarrus County
Case No. LM-2013-0027
Dear "Cr. Boggs:
This letter transmits a Notice of Violation and assessment of civil penalty in the amount of
S373.91 ($225,00 civil penalty+ $148,91 enforcement costs) against KBI, Lf,('.
This assessment is based upon the, following facts- A review has been conducted of the self-
s
monitoring data reported for June 2013. This review has shown the suhiect facility to be in,
violation of the discharge limitations and monitoring requirements found in NPDES Pe nit No.
1 CO047091, The violations are summarized inAttachment A to this letter.
Based, upon the above facts, I conclude as a matter of Ia)A, that the KBI, LLC violated the terms,
conditions, or requirements of NPDES Permit No, NCO04709t and North Carolina General Statute
(GS) 143-215. I(a)(6) in the mariner and extent sho,,vet in Attachment A. A civil penalty may be
assessed in accordance with the maximums established by G.S. 143-215.6A(a)(2).
Based upon the above findings offact, and conclusions of law, and in accordance with authority
provided by the Secretary, of the Department of Environment and Natural Resources and the
Director of the Division of Water Resources, 1, Michael L. Parker, Water Quality Progranis
Regional Supervisorl'or the Mooresville Region, hereby make the following civil penalty
assessment of KBI, LLC:
Adhwresville Regional Off Ce
L,Xafion� 610 East Center Ave Suite 301 Niaorewhe NC 2,61 Vi title
Phope (7104� 6363-1699 ' Fax 7rAj663-6040 Customer Sennce: 1-877-623-6748 NoirthCarolbia
Inlemei: httpltporla� nodenr org,webAwq
Nahl-rallil
Fqt rj "rPporTUilqy A-chinr', Erpupf - ]!0% RacyrW. PPE"'

100M
$__75M
For -_ 2 of the two (2) violations of G.S. 143-215, 1 (a)(6)
and PDES Permit No. NCO047091, by discharging waste
into the Nvaters of the State in violation of the permit daily
triaxin-tum effluent linut: for fecal coliform,
For J_ of the one (1) failure to monitor for total nitrogen
in the second quarter of 2013 (April -June) in violation of
the terms of NPDES Permit No. M."47091.
50.00 For J_ ofthe one (]).failure to monitor for total phosphorus
in the second quarter of 2013 (April -June) in violation of the
terms of NPDES permit No. NCO047091 .
14K91
TOTAL CIVIL PENALTY
Enforcement costs
TOTAL AMOUNT OUE
Pursuant to G,S. 143-215.6A(c), in determining the amount of the penalty I have taken into
account the Findings of Fact and Conclusions of Law and the factors, set forth at G.S. 14313-
282.1 (b), which are;
(1) The degree and >extent of harm to the natural resources of the State, to the public health,
or to private property resulting from the violations;
(2) The duration and gravity of the violations;
(3) The effect on ground or surface water quantity or quality or on air quality;
(4) The cost of rectifying the damage;
(5) n.e amount of money saved by noncompliance;
(6) Whether the violations were committed willfully of intentionally-,
(7) The prior record of the violator in complying or failing to comply with programs over
which the Environmental Management Commission has regulatory authority; and
(8) The cost to the State of the enforcement procedures.
Within thirty days of receipt of this notice, you must do one of the following:
1. Submit payment of the penalty -
Payment should be made directly to the order of the Department of Environment and Natural
Resources (do not include wafiver fibrin), Payment of the penalty will not foreclose further
enforcement action for any continuing or new violation(s).
Please subrint payment to the attention of
Point Source Compliance/friforcernent Unit
Division of Water Resources

1617 Mail Service Center
Raleigh, North Carolina 27699-1617
2. Submit a written request for remission including a detailed justification for such
request:
Please be aware that a request for remission is limited to consideration (if the five factors listed
below as they may relate to the reasonableness of the amount of the penalty assessed.
requestingremission is not the proper procedure for contesting whether the violation(s) occurred
or the accuracy of any of the -factual statements contained in the civil penalty assessment
document. Because a remission request forecloses the option of an administrative hearing, such
a request must be accompanied by a waiver of your right to an administrative hearing and a
stipulation that no factual or legal issues are in dispute. Please prepare a detailed statement that
establishes why you believe the civil penalty should be remitted, and stahnait it to the Division of
Water Resources at the address listed below. In determiningxiiether a remission request will be
approved, the following factors shall be considered:
(1) whether one or more of the civil penalty assessment factors in G.S. 14313-292.1(�)
were wrongfully applied to the detriment of the petitioner;
(2) whether the violator promptly abated continuing environmental damage resulting
from the violation,
(3) whether the violation was inadvertent or a result of an accident,
(4) whether the violator had been assessed civil penalties for any previous violations;
or
(5) whether payment of the civil penalty will prevent payment for the remaining
necessary remedial actions.
Please note that all information presented in support of your request for remission must be
v
submitted in Writing, 'the Director of the Division of Water Resources xviI I review your
evidence and inform you of his decision in the matter of your -remission request, The response
will provide details regarding case status, directions for payment, and provision for further
appeal of the penalty to the E , nvironryiental Management Coninuss ion's Committee on Civil
Penalty Remissions (Committee)° Please be advised that the Committee cannot consider
information that was not part of the original remission request considered by the Director.
Therefore, it is very important that you prepare a complete and thorough statement in support of
Your request for remission.
In order to request remission, you must complete and submit the enclosed "Waiver of Right to an
Administrative Hearing and Stipulation of Facts" fonn within thirty (30) days of receipt of this
notice, 'The Division of Water Resources also requests that you complete and submit the
enclosed "Justification for Remission Reqluest," Both forms should be submitted to the
following address:
Point Source Compliance/Enforcement tTk'nit
Division of Water Resources

1617 Mail Service Center
Raleigh, North Carolina 27699-1617
OR
3. File a petition for an administrative hearing, with the Office of Administrative
Hearings:
If you wish to contest any statement in the attached assessment document you must file a,
petition for an administrative hearing. You may obtain, the petition flan from the Office of
Administrative ffearings. You must file the petition with the Office of Administrative Hearings
within thirty (30) days ofreccipt of this notice. A petition is considered filed �Nhen it is
received in the Office of Administrative Hearings during nortnal office hours. The Office of
Administrative Hearings accepts filings Monday through Friday between the hours of 8:00 a.m.
and 5:00 p.m., except for official state holidays. The petition may be filed by facsimile (fax) or
electronic inail, by an attached file (with restrictions) - provided the signed original, one (1) copy
and a filing fee (if a filing fee is required by NCGS § I 5013-1. ) is received in the Office of
Adininistrative Hearings within seven (7) business days following the faxed or electronic
transmission. You should contact the Office of Administrative Hearings with all questions
regarding the filing fee and/or the details of the filing process. The mailing address and
telephone and fax numbers for the Office of Administrative flearings are as follo,,vs:
Office of Administrative flearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Tel: [phone]
Fax: �919) 431-3 100
One (1) copy of the petition most also be semed on ENR as follows.,
Lacy Presnell, General Counsel
DENR
1601 Mail Service Center
Raleigh, NC 27699-1601,
Please indicate the case number (as found on page One of this letter) on the petition.
Failure to exercise one of the options above within thirty, (30) days of receipt of this notice, as
evidenced by an internal date/time received starnp (not a postmark), will, result in, this matter
being referred to the Attorney General's Office for collection of the penalty through a civil
action.
Please be advised that additional, penalties may be assessed for violations that occur after the
review period of this assessment. If the violations are of a contmuing.!,Aiture, not rq,1tAqd t,
_ni
qper�LAtQrj�qqd/or tnaLntenancc prolrle s iLd yo u anticipate retnedial con 5trucLion activitic s then
you iij, h try cp , J�dera. plyhtg for a, Sp f
m YAN- s-- — -jj�j --L py.-questions

about i n qthis cvil I -y
Lhe.Alat
pgga ly, assessment or -�egial 0rdgj b Con ejap—least�-e-0-11tact —er
Resources Water 7 3-1699.
��t�tion staff of the Mooresville RqgLlqnal Officp at_L
atc Michael L Parker
Regional Supervisor
Water Quality Programs
Mooresville Regional Office
Division of Water Resources
A,rl'ACH'MF,,N,TS
cc: Mooresville Regional office Compliance Filew/ attachments
Raleigh Compliance/Eriforcernent File w/ atlacbments
Central Files Nv/ attachments
MIP/ma

CASE NO. LNI-2013-0027
Outfall Date Parameter ReuortedPermit Limit
001 6/1/l 3 Fecal colzl`rm,
(Daily,maximum)
001 6/19/13 Fecal cc li form > 600 CFU/100 rnL 400 CFU/I 00 ml.
Daily maximum)
001 Qtr. ending 6/30/13 'Total nitrogen None Monitor once x/quai ter
1 Qtr. ceding, /30/ l "Total phosphorus None Monitor trace /quarter
KB I, LLC provided a response to :" OV— 13-[,M-0050 dated October 1„ 2013, wbich was
reviewed her Division staf. Mitigating factors Avere found to result in a reduced civil
penalty amount.

PF QTATT7 nV VI'AL)'rLI I- A t-N I Y I
UrXA I AWIN I UVEN V Il NMtN,L
AND NATURAL RESOURCES
COUNTY OF CABARRUS
r.N THE MATTER OF ASSESSMENTT WAIVER OF RIGHT TO AN
OF CIVIL PENALTY AGAINST ADMINISTRATIVE HEARING AND
III, LLC STIPULATION OFFACTS
PERMIT NO. NCO047091
FILE NO.I. - 01 -0027
Having been assessed civil penalties totaling S373.91. for violation(s)as set forth in the
assessment document of the Division of Water Resources dated October 9, 2013, the
undersigned, desiring to seek remission of the civil penalties, does hereby waive the right to an
administrative hearing in the above -stated matter and, does stipulate that the facts are as alleged
in the assessment document. The undersigned further understands that all evidence presented in
support of remission ofthis civil penalty MUSt be submitted to the Director of the Division of
Water Resources within 30 days of receipt of the notice ofassessment, No new evidence in
support of a remission request will be allowed after 30 da),s from the receipt of the notice of
assessment.
This the day of 2013
BY
ADDRESS

JUSTIFICATION FOR REMISS!QN RF , )IJEST
DNVR. Case Number: LM-2013-0027
Assessed Party: KBI, LLC
County: Cabs
Permit Number: NCO047091
AmountAssessed: $373.91
Please use this forni when requesting remission of this civil penalty. You must also complete the
"A
fast
,o For Remission, 141&ver an Administrative Ilea and
Fact,y," 1'()rm to request remission of this civil penalty. You should attach any documents that
you believe support your request and are necessary for the Director to consider in evaluating
your request for remission. Please be aware that a request for remission is limited to
consideration of the five factors listed below as they may relate to the reasonableness of the
apart tat of the civil penalty, assessed. Requesting remission is not the proper procedure for
contesting whether the violation(s) occurred or the accuracy of any of the factual statements
contained in the civil penalty assessment document. Pursuant to N.C.G,S. § 14313-2811(c),
remission of a civil penalty may be granted only when one or more, of the following five factors
applies. Please check each factor that you believe applies to your case and provide a detailed
explanation, including copies of supporting documents, as to why the factor applies (attach
additional pages as needed).
(a) one or more of the. LivjL_mriatjy assessment factors in iC.G.S. 14-313-2182. t b
Age�vtonfuel jMplick to the jetrjnjqpt._9f -the vessment,fit xors are istein ld _pqjWgw (the as,
the civil penalty assessment document);
(b) the viola r p 0 ironmental d to �o ptl y abated c i ' pmpn-gnq!�q�Lntirmingeny, a rna
violation 0 e, eaplain the stqps that you took to correct the violation and prevent 'future
occurrences);
(c) the violation was _min advert ' cut or a result of an accident (Le, explain the
violation was unavoidable or something you could not prevent or preparef6r);
(d) the violator had not been ass essed_tLiyjl perLaLties ('or aM, pp sous violations,
(e) pLymgnt of the civil the remanjing.-pecessary
remedial actions (i. e_ lain how payment of the civil penalty will prevent youftom performing
e)�p
the activities necessatj, to achieve compliance),
EXPLANATION: (use additional pages as necessor�y)

NORTH CAROLINA DIVISION OF WATER RESOURCES
Violator: K
Facility: Silver.1esNNA FP
County: Cabar
Case Number: LM-2 13-0027
Permit Number: NCO04709I,____.___
ASSESSMENT FACTORS
The degree and extent of harm to the natural resources of the State, to the public health, or
to private property resulting from the violation;
No harm has been documented. However, the discharge of fecal coliform in excess of the daily
maximum permit limit could cause human health concerns downstream of the facility. The
receiving stream is the Rocky River, a class C, in the Yadkin -Pee Dee River basin,
2) The duration and gravity of the violation;
The fecal coliform concentration was >600 CFU/100 mL on June 19th and June 26th, which
exceeded the daily maximum permit limit of 400 CFU/1 00 mL by 50%,
The NCO047091 permit requires that total nitrogen and total phosphorus be monitored once per
quarter and the permittee failed to monitor total nitrogen and total phosphorus during the second
quarter of 2013 (April -June), In addition total nitrogen and phosphorus were not monitored
during the last two quarters of 2012 (July -December) and the first quarter of 2013 (January -
March),
3) The effect on ground or surface water quantity or quality or on:it qualior;
The effect on the receiving stream is unknown. Fecal coliform is an indicator species for
possible pathogens and increased levels can signal human health hazards. Total nitrogen and
phosphorus are monitored to determine nutrient inputs to surface waters and also to develop
TMDLs if there is over -enrichment (eutrophication).
4) The cost of rectifying the damage; No damage has been documented,
5) The amount of mone-
y saved by, noncompliance;
The amount of money saved by noncompliance (monitoring violations) is equivalent to the cost
to complete total nitrogen and total phosphorus monitoring (—$75 for both analyses).
6) 'Whether the violation was committed willfuky or intentionally;
This is the fourth quarter (two in 2012 and two in 2013) in which the total nitrogen and total
phosphorus monitoring was not completed. The monitoring was last completed in June 2012.
ORC notes that permittee did not provide a copy of the permit requiring this monitoring. Notices
of violation have been issued to the permittee for the monitoring failures each quarter,

The prier record of the violator In complying or failing to comply with programs over
which the Environmental Management Commission has regulatory authority; and
There have been 14 previews CPAs for the Silver Maples WWTP during the life of the permit.
One CPA was issued in the past twelve months; LM-2013-0020 was issued for failing t
monitoring total nitrogen and Metal phosphorousduringthe first quarter of 2013 and failing t
meet the daily maximum and monthly average BOD permit limits in June 2013, This penalty
has been paid in full.
The east to the State of the enforcement procedures.
The cost to the Division of Water Resources is $148,91.
D e Michael L. Pryer, e ion l Supervisor
Water Quality Programs
Mooresville RegionalOffice
Division of Water Resources

PERMIT: NCO047091 FACILITY: K B I LLC Klarlander Bmlgs Investments LLC - Silver
COUNTY:
Cabarrus
REGION: Mooresville
Maples Community
Imil Violation
MONITORING
OUTFALL f
VIOLATION
UNIT OF
CALCULATED
REPORT
ppd
LOCATION
PARAMETER
DATE
FREQUENCY
MEASURE LIMIT
VALUE
% OVER LIMIT
VIOLATION TYPE
VIOLATION ACTION
06-2013
001
Effluent
Coliform, Fecal IMF, M-FC
Broth,44,5C
06119113
Weekly
#/100MI 400
60D
50
Daily Maximum Exceeded
None el"
06-2013
001
Effluent
Colifor44,m,
Broth,5C Fecal ME, M-FC
06126113
Wkly
Weekly
#1100MI 400
600
50
Daily Maximum Exceeded
None
Monitoring VioWtion
MONITORING
OUTFALL I
VIOLATION
UNIT OF
CALCULATED
REPORT
PPI
LOCATION
PARAMETER
DATE
FREQUENCY
MEASURE LIMIT
VALUE
% OVER LIMIT
VIOLATION TYPE
VIOLATION ACTION
06 -2013
001
Effluent
Nitrogen, Total (as N) -
Concentration
06/30/13
Quarterly
ring1l
Frequency ViolatIon
None k1 IJ",
06-2013
001
Effluent
Pho9phorus, Total (as P) -
06/30113
Quarterly
mg/i
Frequency Violation
None <
Concentration
Af &
X