NPDES Phase II Update. Challenges Facing MS4 s In This Tough. Kane County Campbell House
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1 2008 NPDES Phase II Workshop for MS4 s NPDES Phase II Update & Challenges Facing MS4 s In This Tough Economic Climate November 19, 2008 Kane County Campbell House 2007 Lennar Corporation All Rights Reserved 1
2 HARD ECONOMIC TIMES How Developers are (or aren t) Weathering the Storm Brad Holcomb Division Environmental Manager Lennar-Chicago 2007 Lennar Corporation All Rights Reserved 2
3 Consent Decrees Court approved settlement agreements Wal-Mart: $1,000, $3,100, Home Depot 2007-$1 $1,300, Homebuilders $4,300, Agreements include: EPA approved training Weekly inspections Reporting to EPA and DOJ Stipulated penalties Company wide stormwater management teams $ Millions over and above voluntary cost of compliance Criminal rights are still reserved 2007 Lennar Corporation All Rights Reserved 3
4 High Production Builders USEPA & Department of Justice Homebuilders on EPA current priority it list for enforcement EPA & DOJ settled with Centex, KB, Pulte, & MDC-Richmond American Violations for items such as: Non existent or in adequate sediment and erosion controls Failure to obtain NPDES permits Inadequate SWPPPs Incorrect installation of BMPs Failure to inspect BMPs Failure to maintain BMPs $4.3 million in fines 2007 Lennar Corporation All Rights Reserved 4
5 Settlement Similar to Wal-Mart & Home Depot Consent Decrees Conditions Include: Site stormwater compliance representative for each community Division & national stormwater compliance representatives Required to have authority to manage stormwater operations Regularly update list of all open communities to EPA INCLUDE JVS WHERE THEY ARE MANAGING PARTNERS Provide overview of stormwater program to trades, Compliance expectations, and Consequences for non compliance Pre-construction inspections 2007 Lennar Corporation All Rights Reserved 5
6 Consent Decrees Conditions Continued Must use EPA approved: SWPPP content, inspection forms, audit forms Training for construction related associates Quarterly, Division i i Compliance Rep must: Audit every community Submit results to national representative & EPA Self report and certify violations Provide Dos and Don'ts to trades and their employees EPA Approved Stipulated Penalties 2007 Lennar Corporation All Rights Reserved 6
7 Stipulated Penalties Pre agreed to fines for violations of the consent decree Missed inspections, failure to install BMPs or complete repairs in timely manner, failure to report to EPA and DOJ From $100+ per day per violation to $500, per reporting period Most range in the $ to $2, per day per violation range More economical to comply with the current permit! 2007 Lennar Corporation All Rights Reserved 7
8 Cutting Costs While Staying in Compliance SWPPP Trade Partner Fees All Trade partners had to re-bid services and reduce fees Consultant fees reduced by almost half. BMP installer pricing reduced. More closely monitor BMP installation Per Lot Pricing Set BMP installation/ maintenance cost for each unit. Anything over that cost will be extra work order and will be scrutinized Lennar Corporation All Rights Reserved 8
9 Cutting Costs While Staying in Compliance THE SWPPP Use BMP s as they are designed versus whatever is cheapest May cost more initially but will be cheaper in the long run with reduced maintenance costs. Update the SWPPP as needed Change BMP s that t continuously fail ESC plan should match what is in the field 2007 Lennar Corporation All Rights Reserved 9
10 Cutting Costs While Staying in Compliance Control the Trade Partners It is in all of our trade partners contracts that they must comply with all stormwater regulations. All sign contractor certifications stating they will comply with the SWPPP Majority of our BMP maintenance costs were the result of trade partner damage. Trades will be back-charged for damaging g BMP s Means more responsibility for site managers Will have to closely monitor trades partner activity 2007 Lennar Corporation All Rights Reserved 10
11 Trade Partner Compliance 2007 Lennar Corporation All Rights Reserved 11
12 Trade Partner Compliance 2007 Lennar Corporation All Rights Reserved 12
13 Trade Partner Compliance 2007 Lennar Corporation All Rights Reserved 13
14 Trade Partner Compliance 2007 Lennar Corporation All Rights Reserved 14
15 Trade Partner Compliance 2007 Lennar Corporation All Rights Reserved 15
16 Trade Partner Compliance 2007 Lennar Corporation All Rights Reserved 16
17 Questions? 2007 Lennar Corporation All Rights Reserved 17
Therefore, having understood the above information, I am signing this certification as contractor to the aforementioned NPDES general permit.
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