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The
meeting was called to order by Chairman Bart Creech at 9:37
a.m.
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| Trustees
Present: |
Absent: |
William "Bart" Creech III, Chairman
Bob Abernathy, Vice Chairman
Gary Collins
James Ford
Ron Hooker
Robert Jackson
Don McNutt
Dan Schuette (Designee for Steve Mahfood) |
Judy Baker
Neal Gibbons, Sr.
Joyce Murphy |
| Staff
Present: |
|
Carol
R. Eighmey, Executive Director
Tim Duggan, Assistant Attorney General
Terry M. Nichols, Administrative Assistant |
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Approval
of Minutes
Ron Hooker asked for a correction to the name "Curtis Wall," then
moved that the corrected minutes from the November 28, 2001, meeting
be approved. Don McNutt seconded the motion, which carried.
Monthly
Reports
Information from the Division of Weights and Measures was distributed.
Chairman Creech asked if there were any questions about the monthly
reports. Bob Jackson asked why the Attorney General's Office and Department
of Revenue have spent more than projected for the first six months
of the fiscal year; Ms. Eighmey said she assumed those agencies had
spent the bulk of their PSTIF money in the first six months of the
fiscal year, rather than spreading it evenly over twelve months as
the budget shows. There were no other questions.
Summary
of Database
Ms. Eighmey reported the computer consultant hired by the Board had
finished all assigned work, and summarized the achievements and improvements
of the last two years. She reminded Trustees of the database problems
discussed in the past, and noted substantial progress had been made.
She indicated PSTIF, the Department of Natural Resources (DNR) and
the Department of Agriculture are now using a uniform numbering system
for identifying tank sites. She indicated when the actuary is hired,
she hopes it will be possible to use the databases to make more accurate
projections, as a result of the efforts.
There
was discussion about the various databases and the work done by the
computer consultant. It was noted that the universe of properties
regulated by DNR is different from the universe of properties regulated
by Department of Agriculture, and both are different from the universe
of properties that are either insured by PSTIF or have made a claim,
and all three agencies have somewhat different needs.
"Hold
Claims"
Ms. Eighmey introduced Tom Kolb, Chairman, and Robin Melton, Vice-Chairman
of the Advisory Committee. Mr. Kolb reported on the Committee's meeting
held by conference call on January 11, during which the Committee
discussed the situation involving "hold claims." He noted there were
219 claims on hold as of December 31, and it is estimated about $7-$8
million will be required to clean up these sites. He noted the Board
had increased the transport load fee from $25 to $40, and that the
increased revenues will not be received until March, although he expressed
his opinion that the quantity of petroleum being used in the state
has decreased as a result of the economy slowdown. He noted there
have been proposals to utilize some of the money in PSTIF to balance
the general revenue budget, and until it is known whether that will
occur, and how much money may be used, the Committee thought the Board
should exercise caution about making new funding commitments. He then
presented the recommendation from the Committee, which was (a) to
tentatively announce a plan to release funding for all 219 hold claims
on April 1, with the understanding that the Board would finalize the
decision at its March meeting, and (b) to place all new remedial claims
received after 12/31/01 on hold until at least September.
There
were a number of questions from the Trustees. Chairman Creech asked
how quickly the $7-$8 million would be spent; Pat Vuchetich estimated
over about two years. Dan Schuette asked why the Committee recommended
waiting to finalize the decision until March; Tom Kolb responded that
by then the Board would have the latest cash flow projections in hand,
and would also know what actions the Governor or Office of Administration
might take regarding using PSTIF funds for other purposes.
Bob
Abernathy asked how many of the 219 property owners had spent money
and were waiting for claim payments; Tom Kolb said only about $200,000
in invoices had been submitted, by about 10 property owners. Jim Ford
asked if there was any way to set priorities among the 219; Ms. Eighmey
said there was not. Gary Collins asked why fuel usage was down and
how much; Mr. Kolb and Ron Hooker noted consumers are not spending
as much and estimated usage is down about 10%. Bob Abernathy then
moved that the Board release funding immediately for all 219 claims
which were on hold as of 12/31/01, and put new remedial claims on
hold. Dan Schuette seconded the motion. There was further discussion.
Some Trustees expressed concern about the uncertainty of the Fund's
future financial situation; others noted they did not think releasing
the claims two months earlier than recommended would make much difference.
After further discussion, Messrs. Abernathy and Schuette amended their
motion to clarify that the claims be released on February 1, 2002.
Motion carried.
Rule
Amendments
Ms. Eighmey reviewed the proposed amendments in the Trustees' notebooks.
She noted two are routine, implementing changes in the statute made
by HB453, and highlighted the other two, which are more substantive.
She explained one amendment will create more parity between AST and
UST owners; it allows AST owners to obtain continued liability protection
after taking a tank out of use. The other rule creates, for the first
time, a deadline for submitting invoices.
Dan
Schuette asked why the reference to DNR requirements was being deleted
from 4.020. Ms. Eighmey reviewed the history of the wording and noted
that the proposed change brings the rule into conformity with the
current situation.
Bob
Abernathy moved that the proposed orders of rulemaking be approved;
Bob Jackson seconded. Motion carried.
Proposed
Legislation
The Board reviewed HB1149; Tim Duggan indicated the bill was ambiguous
but the apparent intention is to transfer the authority to hear appeals
from the PSTIF Board of Trustees to a new Environmental Hearing Commission.
Gary Collins asked who was sponsoring the bill; Ms. Eighmey responded
Senator Steelman and Representative Hegeman are the sponsors, and
one of the authors and primary proponents is David Shorr, former DNR
Director.
Bob Jackson
said he was opposed to the bill, as it seems to undermine the role
and value of the PSTIF Board of Trustees. Jim Ford concurred. There
was further discussion. Chairman Creech asked if the Board's opposition
should be communicated by the DNR lobbyist; Dan Schuette and Carol
Eighmey agreed that DNR's lobbyist has responsibility for communicating
the Department's position on the bill, and it would better for the
Board's Executive Director to communicate its views. Ms. Eighmey offered
to try and get PSTIF excluded from the bill; the Board agreed with
that course of action.
Regarding
the bill drafted by DNR, Ms. Eighmey and Mr. Duggan noted they are
still reviewing the language.
Proposed
revisions to the Sunshine Law were briefly reviewed, as was a proposed
clarification of the Geologist Registration Act.
Update
on Risk-Based Corrective Action
Ed Galbraith announced a contract had been awarded the previous week
to The Ram Group, headed by Atul Salhotra, to assist the department
in an effort to revise its guidance documents for tank site cleanups.
He assured the Board that a stakeholders group, to include PSTIF,
MPCA and others, will be heavily involved in the process.
Bob Jackson
mentioned the need to have community representatives involved in the
process to assure that any concerns about environmental justice are
addressed. Mr. Galbraith agreed that was important, and pointed out
that RBCA does not compromise the department's commitment to protection
of human health and the environment. Don McNutt asked if RBCA is an
option or is mandated. Mr. Galbraith indicated the department is required
by law to use a risk-based approach to cleanups, but he expects the
guidance documents to contain a series of options which may be used
in cleaning up a site. Ms. Eighmey noted that the PSTIF Board of Trustees
will have some significant decisions to make; for example, if one
cleanup option is risk-based and costs less, and another option is
not risk-based and costs more, will the Fund pay for the higher-cost
alternative?
Bob Jackson
asked how long RBCA has been in use; Mr. Galbraith responded it has
been promoted since the early 1990's and widely accepted since the
mid-90's.
Administrative
Issues
Trustees were informed that the State Auditor's Office had reviewed
the Fund's largest payments as part of its year-end opinion on the
state's financial statements, and found no problems. Ms. Eighmey reminded
Trustees that the RFP had been issued to obtain audit services for
FY01 and FY02.
Trustees
were invited to attend the PACE Show in St. Louis.
Chairman
Creech asked if there were any questions about any of the billings;
there were none.
Don McNutt
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. Bob Jackson seconded
the motion, which 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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