|
Chairman
Abernathy called the meeting to order at 9:35 a.m. Trustees
Present:
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| Trustees
Present: |
Absent: |
Robert L. Abernathy, Chairman
Judy Baker, Vice Chairman
William "Bart" Creech III
James Ford
Ron Hooker
Robert Jackson
Tom Kolb
Don McNutt
Gary O'Neal
Dan Schuette (Designee for Steve Mahfood) |
Joyce Murphy |
| Staff
Present: |
|
Carol
R. Eighmey, Executive Director
Tim Duggan, Assistant Attorney General
Terry M. Nichols, Administrative Assistant
H. Patrick Eriksen, Williams & Company Consulting
Pat Vuchetich, General Claims Manager
Ray Lentz, Operations Manager
David Pate, Claims Manager
Dan Henry, Claims Adjuster |
|
Claim
Appeal - Former Metz Baking, Claim 50114
Ms. Eighmey highlighted the information and recommendation in the
Trustees' notebook. Bart Creech moved that the Board accept the recommendation
to pay an additional $5,336.25; Bob Jackson seconded the motion. Motion
carried.
Claim
Appeal - DJ's Convenience, Claim 52255
Dominic Whitley, consultant for the owner, was introduced and explained
the appeal. He noted that observations during the tank removal project
indicated all the excavated soil was contaminated, but confirmed that
laboratory analytical results did not indicate that contamination
had been present in the soil at levels requiring cleanup. He suggested
the lab results may have been faulty due to improper preparation and
packing of the soil samples. He noted the PSTIF had paid for additional
sampling and analysis from the site in an effort to determine whether
any contamination remained.
(Judy
Baker joined the meeting after Mr. Whitley's initial remarks.)
Tom Kolb
asked whether more soil was removed than had been originally planned
and pre-approved by the PSTIF; Mr. Whitley indicated it had. There
was discussion about whether the contamination at the site had resulted
from the operation of uninsured tanks, or from operation of tanks
removed prior to December 31, 1997.
Dan Henry
and Pat Vuchetich then explained the payment decision made by Williams
& Company, indicating the dispute concerned a top layer of soil which
overlay contaminated soil. Mr. Henry noted there were no laboratory
results indicating this top layer of soil was contaminated; thus,
payment for hauling the soil to the landfill had been disallowed.
Approval
of Minutes
Bart Creech moved that the minutes from the October 29, 2003 meeting
be approved. Judy Baker seconded the motion, which carried.
Monthly
Reports
It was noted the PSTIF is currently insuring more sites than ever
before. There was brief discussion about the difficulty of predicting
large loss claims, and about observations on trends in the Trustees'
notebook.
Dan Schuette
moved that the Board approve funding for the four new remedial claims;
Bart Creech seconded the motion. Motion carried.
Presentation
on Thermoplastic Piping
Pat Vuchetich presented slides and information on thermoplastic piping,
noting concerns that the piping may be deteriorating while in use.
He discussed problems observed in other states, and reported that
of 330 insured sites inspected by Williams & Company in 2003, three
had been found where there are indications of possible piping failure.
Mr. Vuchetich
recommended that an informational mailing be sent to the Fund's policyholders,
alerting them to the possible problems. He also recommended that the
Board undertake an inspection effort to check the piping at the 438
insured sites with this type of underground pipe, documenting the
current state of the piping with dated photos. Finally, he recommended
that if further problems develop, the Board may need to consider longer
term actions, such as investigating options for financing assistance
for owners who may have to replace piping prematurely.
Discussion
followed. Mr. Vuchetich and Ms. Eighmey noted they have no examples
of catastrophic releases occurring from weakened or deteriorated plastic
piping, but that regulators and insurers across the country are concerned
that releases may occur at sites where piping has deteriorated.
It was
suggested that PSTIF staff confer with staff from the Departments
of Natural Resources and Agriculture, as well as MPCA, regarding an
informational flyer and/or mailing. Ms. Eighmey agreed to do so. Mr.
Kolb estimated piping replacement costs could run as high as $30,000
per location. Mr. McNutt noted the MPCA may be interested in taking
some action on the issue. It was agreed more information on the issue
should be assembled over time.
Report
on Private Insurance from Advisory Committee
The report prepared by the Advisory Committee was briefly reviewed.
Bart Creech moved that the Board accept the report; Jim Ford seconded.
After brief discussion, the motion carried.
Administrative
Issues
It was reported that the federal energy bill, which contained provisions
affecting USTs, had not passed.
Bart
Creech moved that the Board appoint Brad Ellis to replace Tom Klug
on the Advisory Committee. Ron Hooker seconded the motion, which passed
after a brief discussion.
Trustees
were invited to attend the MPCA's annual trade show, PACE, in St.
Louis on February 20-21.
Bart
Creech moved that the Board go into closed session to discuss and
vote on matters related to legal actions, causes of action, litigation
and/or personnel issues pursuant to Section 610.021, RSMo. Jim Ford
seconded, and the motion carried.
If
such action is approved a majority vote of a quorum of the Board,
the Board of Trustees of the Petroleum Storage Tank Insurance Fund
may go into closed session at this meeting to discuss legal, confidential
or privileged matters pursuant to Section 610.021, RSMo.
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