ORCAA Board of Directors
OLYMPIC REGION CLEAN AIR AGENCY
2940 B Limited Lane NW
Olympia, Washington 98502
MEETING
June 13, 2007
Members present:
Bob Beerbower, Grays Harbor County (Chair)
Ann Burgman, City of Lacey
Clay Harwood, Pacific County
Grant Munro, City of Port Angeles (Vice Chair)
Bob Macleod, Thurston County
Ross Gallagher, Mason County
Jeff Kingsbury, City of Olympia
Phil Johnson, Jefferson County
Members absent:
Mike Doherty, Clallam CountyBob Macleod, Thurston County
Legal Counsel: Fred Gentry, Bean & Gentry
Staff Present:
Richard Stedman, Executive Director, Robert Moody, Compliance Supervisor; Mark Goodin, Professional Engineer; Lynn Harding, Administrative Services Manager; Stephanie Sears, Air Quality Specialist; and Debbie Moody, Recorder
The meeting was called to order at 10:00 am.
There were no additions or omissions to the Agenda. Burgman moved approval of the Agenda. Johnson seconded the motion and it carried unanimously. Burgman moved approval of the Consent Agenda. Johnson seconded the motion and it carried unanimously.
PUBLIC COMMENT
Soil Key Concerns
Steve Roark stated he would be speaking for the group. Roark wanted to alert the Board that since the April meeting, the odors coming from Soil Key have gotten worse. Roark stated this is their third year having to deal with these odors, with little relief. Roark asked what action will be taken to hold Soil Key accountable. Roark did note that the neighbors are appreciative of the hard work ORCAA has been doing. We were advised that Soil Key were required to utilize Reasonably Availably Control Technology (RACT) by mid-June and if that has occurred, it is not working. We know that numerous Notices of Violations (NOV) have been issued to Soil Key, yet we see no results. None of us are able to go outside for any length of time. We feel we have been patient. We have just learned that Soil Key is the second largest composter in the state, and we believe they are largest importer of bio-solids as well. They continue to grow. We continue to be told to be patient and we continue to suffer the consequences. To date, to our knowledge they have paid a $1,000.00 fine.
Roark stated we are here today to ask ORCAA to step up their coordination with Thurston County. Thurston County issued a composting permit to Soil Key in 2006. They also issued a special use permit in 1998. If you were to read these documents, you would see that Soil Key is not in compliance with either of these documents. We are quite shocked at the disinterest the County seems to have with this source. We are asking that you engage the County so we can get some action taken. Roark noted the neighbors have filed three code violation investigation reports with the County and we have never heard back from them. Burgman asked if any of the neighbors have visited the County meetings. Roark stated they have not yet, but intend to. Roark stated we would like to see ORCAA working with the County. The County permits expire soon and we are assuming they need to coordinate with ORCAA.
Roark stated they would also like to know how many NOVs have been issued and the status of them. We would also like to know what the strategy and timeline ORCAA is working with to stop the odors from Soil Key. All we are seeing at Soil Key is business as usual. We feel their intentions are clear, they do not intend to do anything.
Kingsbury asked staff how many NOVs have been issued and, is it true they have paid a $1,000 fine. R.Moody stated there are about a dozen NOVs out currently. Stedman noted we issue an NOV and then we have to wait 30 days before we can assess a penalty. As we issue the NOVs the penalties do ramp up and he is definitely at the maximum amount at this point which is $10,000. Soil Key has requested time to do improvements at the site and has asked that we mitigate some of the penalties in order to allow him to put that money towards those improvements. We seem to be at an impasse. He has stated he will not do any improvements unless we mitigate the penalties. We have attached requirements for those improvements and noted we won’t mitigate until they are met. We do not foresee any mitigation at this point. Stedman stated he had a conversation with the County this morning and they are prepared to issue an NOV for exceeding the limitations allowed by the conditional use permit.
Stedman stated our next step is to issue a Regulatory Order which will instruct him to process using RACT which would severely limit the amount of compost he can process on site. Please note, Stedman stated, he can appeal any action we take. If he violates, and continues to violate, the Order, we will be seeking an injunction (similar to what happened with Ocean Protein). Stedman stated nothing happens immediately. We will continue to do our job. Kingsbury asked how long we are waiting to file the injunction. Stedman explained the first step is to issue the Regulatory Order, which should go out in the next few days. Stedman noted the Order will specify that they cannot accept any more waste. However, they currently have a lot of material on site and it isn’t just going away. It needs to be allowed to compost. If it was composting correctly, it wouldn’t be that odorous, however they are pushing the product through too quickly and it isn’t composting. We anticipate he will fight the NOVs and the Order and we’ll be tied up at Pollution Control Hearings Board.
Burgman asked if Soil Key is indeed in violation of his conditional use permit. Stedman stated he did not know the answer. Macleod stated the NOV (from Thurston County) is being issued today, reducing the volume of materials to be processed. In addition, Macleod continued, our attorney and staff will be meeting this afternoon to decide the next steps. Beerbower asked at what point can he be shut down. Macleod noted he can appeal the process, which won’t resolve it, but will prolong the conditions. The County is on top of this, Macleod noted, unfortunately this person likes to push the envelope and has pushed up his volume far above what is allowed.
Stedman added that we are working diligently to make sure that we document everything. We want to have an air-tight case when we get to PCHB. Stedman stated we have been stepping up our enforcement. Kingsbury, addressing the neighbors of Soil Key, stated it appears you are in for another summer of terror. We recognize that this is a major problem, Kingsbury noted, and we aren’t happy about, but we are doing our best to work through the process as fast as we can.
Harwood asked if the business’ odors were this bad when they first opened. Jack Heyl, noting he ran cows out in the area from 1984 to early 2000. The original turf farm had a bit of a musty smell, but nothing like what we have now. When Soil Key empties his barn, it is still steaming. Harwood asked if he has introduced something new to make it worse. Mr. Fields stated we met with ORCAA and John Libby of Thurston County last week. It was our impression that Libby was unaware of the complaints that have been filed at the County. Macleod noted he had not been aware of the complaints until just last week as well.
Munro stated it appears the Board is supportive of ORCAA being aggressive with action and staff is moving in that direction. Is there anything more we can do, working with the County to make sure that everything is moving in the same direction. Stedman stated we do need to get together with the County to make sure the restriction and the NOV are familiar with what we are presenting in our Order. There is definitely a need for increased communication. Stedman stated we did contact the Fremont Dock Company, the actual owners of the property. We have informed them all future NOVs will be sent to them as well. Macleod did add that he felt ORCAA and the County are on the same page and will be moving forward.
Gallagher felt there needs to be a significant dollar amount to get the attention. It has to be significant enough that it is more than just the cost of doing business.
Beerbower noted we have been through this before. Staff put in a lot of time and documented as much as they could so that when they did get to the point where we could ask for an injunction. The Board’s opinion is to move forward and deal with it as quick as we can.
The Board assured them staff would keep them advised of progress. Stedman stated a newsletter, regarding this issue, will be sent out by the end of the week.
Roark felt the hammer for them is the County permit. If the permit is not reissued, does that in fact shut him down? Macleod stated that would be correct. Fields stated one comment that was made by Chuck Spoerer, which will give you an idea of our frustration, was when ORCAA asked when the process is complete and ready to move from the building to curing pile. His answer to staff was when he the next truck shows up with a delivery. To us, this just shows that he really doesn’t know what he is doing. The trucks are not on a specified delivery. They could show up ten days after a delivery or two days. If the truck shows up, he moves the piles. Then we are subject to the horrible odors.
Beerbower thanked the group for coming in.
PUBLIC HEARING
Beerbower opened the public hearing at 10:41 a.m.
ORCAA Fiscal Year 2008 Budget
Stedman explained a copy of the Budget is in the packets. Stedman briefly went over the budget.
Stedman noted not much has changed since the last meeting, although the contributions from Ecology and EPA did go down a bit. Stedman pointed out the revenue and expenditures for the year. Stedman explained our new Registration and NSR fees will move us closer to 100% cost recovery in those programs. We have budgeted approximately $300,000 for the school bus projects. Stedman noted the increase in payroll includes a 3.35% COLA for staff and the benefit increases, along with .5 FTE being added to staff. Stedman stated we are in good shape with this budget and we will be bringing our reserve down just a bit.
Munro questioned the salary increase as well as the administrative increase. Munro did note that he knows ORCAA runs a tight ship, but these seem to be substantial increases. Stedman stated we don’t have a lot of control over benefit increases. We have done some research and it appears we continue to get a very good deal on our benefits program. Stedman wanted to also note that we budget conservatively, and that is reflected in the numbers.
Lynn Harding, Administrative Services Manager, pointed out that under the administrative costs, legal fees have increased as well as, we have contracted out to have our database re-designed.
Stedman wanted to make sure that the Board understands that we are using some of our reserves, per Board direction to offset some of our expenditures. This just reiterates one of the reasons for fee increases in our programs. Gallagher asked what percentage of the budget is carried over each year. Stedman explained it changes every year, depending on how much of our reserves we spend. The school bus fund makes it more confusing as there is usually a large sum that carries over each year, Stedman noted.
Stedman wanted to also let the Board know that Catholic Community Services is still saying they will be leaving when their lease is up (2009). We are contemplating taking over that space. Regardless of what we end up doing, we will need to do some major improvements on that side of the building. Johnson stated the $16,000 under leasehold improvements currently wouldn’t cover the improvements. Stedman agreed, so we will be building that line item up in anticipation for 2009.
Beerbower asked if there were any further comments or questions. Hearing none, Beerbower closed the public hearing at 11:04 am.
Kingsbury moved approval of the FY08 budget. Johnson seconded the motion and it carried unanimously.
DIRECTOR’S REPORT
Personnel – Introduce New Staff member
Stedman introduced our newest staff member, Stephanie Sears. She comes from upstate New York and is joining us as an Air Quality Specialist. The Board welcomed Stephanie.
Compliance Update
Robert Moody briefly went over the compliance reports. R.Moody noted with the approval of the budget, we will be contacting a potential hire this afternoon. We hope to have full staffing by the first of July. As for open burning issues, R.Moody continued, the legislature did approve a $2 million subsidy to Ecology to be used as grants for the communities that were affected by the January 1, 2007 burn ban. We have identified our priorities, but it is imperative that the cities respond to Ecology to let them know they want money. They will accept grant applications July 2nd. R.Moody noted he has contacted a few people to let them know this money is available and he will be working with Dan Nelson to get the word out.
Stedman wanted to recognize R.Moody for his dedication. We have limited staff and he has been doing his part to keep things running smooth in the compliance section.
ORCAA Permit Actions
Mark Goodin briefly discussed the current permits. Sierra Pacific Industries Lumber Mill has sent in an application regarding an increase in the quantity of lumber they can dry, as well as increase the dry kiln temperature. Goodin noted if anyone ever has a question regarding permitting, please contact him directly.
School Bus Retrofit Update
Dan Nelson stated Tacoma Rail’s retrofit is complete on all four engines. We are currently trying to negotiate with Puget Sound Clean Air and Tacoma PUD, to host a public event. Most likely it will be held at the Port of Tacoma facility. We will be working with several school districts to get the crank case ventilation filters, which is the next stage of retrofits. We have the parts and now the districts have requested we wait for the buses to be idle for the summer.
Nelson stated Stedman has taken the lead on possible retrofits for the Port of Olympia.
Macleod asked if staff has been in contact with Port of Olympia regarding the proposed freight handling out in Maytown. When word got out, Macleod stated, it grew quite a negative crowd. The concerns are with regards to how unhealthy and noisy this type of operation is. Stedman stated he had just recently heard about this issue. Apparently, Stedman stated, the plan is to store containers on the property and the trucks will come in to pick up and drop off. We do not have any regulatory authority for this type of operation as it is all mobile sources.
Gallagher asked if staff had contacted Simpson Timber regarding retrofits. Stedman explained we have not contacted them as the funds are to be used for public entities only.
Federal Legislature
Stedman stated there is a lot going on currently, with regards to air issues. A few months ago, we had gotten word the Supreme Court decided CO2 can be regulated as a green house gas, and in fact should be. A couple of legislators are trying to pre-empt the authority of any state or the federal government to regulate green house gases. Stedman explained he would like to get a letter to Representative Jay Inslee, who is on the Committee for House Energy and Commerce, stating we are not in support of this. The Board agreed to allow staff to write a letter in support of the autonomy of states to regulate green house gases.
UNFINISHED BUSINESS
ORCAA Climate Change Principles
Stedman explained he has been looking at what has been established by other agencies. We are hoping to have something for the Board next meeting. We want to be able to touch on what global warming is and why we are concerned. We will then want to talk about what we can do at the local level. Munro stated he didn’t like what Clallam County did—they put together a ‘feel good do nothing’ resolution. Munro encouraged ORCAA to be specific about what we will be doing. Stedman agreed.
Distribution of ORCAA Regulations, Business Rules, etc.
Stedman stated we have copies of our latest Regulations ready to hand out. Stedman noted for those that don’t already have an ORCAA binder (includes Regulations, Business Rules, WACs and RCWs) please feel free to take one.
NEW BUSINESS
Accounting Policy and Procedure
Stedman explained with the passing of our bill, we have a proposed new Policy and Procedure for processing our own warrants. Specifically, Stedman noted, it authorizes the Executive Director and the Professional Engineer to give approval of warrants to the Administrative Services Manager to pre-audit, approve and certify all accounts payable and payroll claims against the Agency. Harding noted each department manager will have managerial accountability for expenses in their section, and we think that is important. Harding noted the managers are currently doing this, but the new policy makes it a bit stricter.
Stedman stated we are hoping to switch payroll over at the first of the year. Harding noted for non-payroll, we are hoping to begin our internal program October 1, 2007. We will most likely have a final document prepared for adoption at the next meeting.
Outdoor Burning Penalty Worksheet
Stedman reminded the Board that we had increased the maximum daily penalty from $10,000 per violation per day to $14,915 per violation per day. As part of that process, we needed to update our civil penalty worksheets and we have started with the Outdoor Burning Penalty Worksheet. Stedman stated one other reason we decided to update our worksheet has to do with the recent burning incident that was done by the Olympia fireman. After all was said and done, regardless of how horrific the fire was, we could only fine him $3,500, which he promptly paid. Our new worksheet takes into consideration the more egregious violations.
R.Moody briefly went over the new worksheet. R.Moody handed out pictures of current burn violations. Each picture showed the current penalty and the proposed penalty that would be assessed for the particular violation. R.Moody explained the current structure doesn’t have any consideration for the ‘bad burners’ and we didn’t quite have the teeth to get their attention. We have restructured the worksheet in such a way, R.Moody continued, so that for an egregious case we can reach the maximum penalty on a first violation. R.Moody did note that counsel has reviewed the worksheet as well. Stedman added that just because they reach the maximum penalty does not mean that we won’t be willing to work with them to mitigate the penalty.
Kingsbury moved approval of the new Outdoor Burning Penalty Worksheet. Harwood seconded the motion and it carried unanimously.
FY 2007 Preliminary Budget Status Report
Stedman noted this had been discussed during the FY08 budget hearing.
Employee Service Recognition Awards
Stedman wanted to recognize staff that has been with ORCAA for 15 years. Stedman recognized Debbie Moody, Robert Moody, and Mark Goodin.
Kingsbury wanted to assure Stedman that he is absolutely satisfied that staff is doing their job with regards to the Soil Key issue. Beerbower noted they did a tremendous job with similar issues in Grays Harbor County as well.
The meeting adjourned at 11:52 a.m.
PRESENTED BY
Richard A. Stedman, Executive Director
APPROVED BY:
The Majority of the Board
APPROVED and SIGNED this 11th day of July 2007