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Chairman
Abernathy called the meeting to order.
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| Trustees
Present: |
Absent: |
Robert L. Abernathy, Chairman
Judy Baker, Vice Chairman
William "Bart" Creech III
James Ford
Tom Kolb
Don McNutt
Joyce Murphy
Gary O'Neal
Dan Schuette (Designee for Steve Mahfood) |
Ron Hooker
Robert Jackson |
| Staff
Present: |
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Carol
R. Eighmey, Executive Director
Tim Duggan, Assistant Attorney General
Terry M. Nichols, Administrative Assistant
Pat Vuchetich, General Claims Manager
Ray Lentz, Operations Manager
David Pate, Claims Manager |
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Claim
Appeal - Former Sinclair #24052, Pleasant Valley, Claim 60180
Keith Drill, Wyrsch Hobbs & Mirakian, P.C., introduced other representatives
of Sinclair present at the meeting: Craig Anderson, David Stice, Stephen
Gile, Joe Mafuscio and Tony Polter, environmental consultant.
Mr. Drill
then reviewed the circumstances involving the claim appeal, noting
the tanks were removed in 1995 while Sinclair was insured by PSTIF.
He pointed out that at the time, the Tank Fund was being managed by
the Department of Natural Resources, and that the procedures used
followed the DNR Closure Guidance Manual. He noted that DNR had required
follow-up sampling, after the tank removal, to determine whether any
contamination remained onsite at levels of concern.
Mr. Drill
summarized the costs incurred by Sinclair, and explained Sinclair's
position that the PSTIF had only denied a portion of the costs. As
a basis for Sinclair's appeal, he said Sinclair acknowledged that
some of the soil hauled from the site was not contaminated, and that
the claim was only for that portion which was contaminated above action
levels. He briefly mentioned personnel problems at Sinclair had contributed
to the communications difficulties surrounding the claim. He assured
the Board that Sinclair had acted in good faith regarding its claim.
Trustees
asked several questions of Mr. Drill and the other Sinclair representatives.
Tim Duggan
then explained that the Executive Director had requested his review
of the claim file and the appeal, since it involved a question as
to whether the claim had been denied by the PSTIF. He distributed
several documents from the file, which are attached hereto, and verbally
reviewed them, including draft payment spreadsheets prepared by the
PSTIF adjuster that contradict Sinclair's claims. He noted that, though
the initial letter from the Fund cited a wrong figure, a subsequent
letter sent in January 2002 clearly denied the entire claim.
Claim
Appeal - Former Sinclair 24032, Columbia - Claim 60142
Mr. Drill explained that this claim appeal also involved removal of
tanks that were insured by the PSTIF. He acknowledged that Sinclair
had failed to appeal the payment decision in a timely manner, but
asked the Board to consider the facts of the case, noting that Sinclair's
consultant only removed soil that was contaminated.
Judy
Baker asked whether the Fund's payment check had been deposited by
Sinclair; Mr. Drill said he assumed it had, but could not say for
sure.
Claim
Appeal - Weston Depot, Claim 61748
Chairman Abernathy referred Trustees to the information provided in
their notebooks, noting staff had recommended an additional payment.
Bart Creech moved that the Board pay the amount recommended; Judy
Baker seconded the motion. Motion carried.
Approval
of Minutes
Bart Creech moved that the minutes from the December 3 meeting be
approved. Gary O'Neal seconded the motion; motion carried.
Monthly
Reports
Carol Eighmey reviewed statistics provided in the notebook about the
changing nature of the underground tank systems insured by the Fund;
Ms. Baker suggested that the Board's next actuarial report should
consider the impacts of this change.
Bart
Creech moved that the Board release funding for the seven new remedial
claims; Judy Baker seconded the motion. Motion carried.
Final
Orders of Rulemaking
Carol Eighmey asked for approval of the final orders of rulemaking
to implement the changes related to offering Extended Reporting Periods
to UST policyholders. She noted no comments had been received after
the proposed rule changes were published.
Bart
Creech moved that the Board approve the publication of the Final Orders
of Rulemaking; Judy Baker seconded the motion. Motion carried.
FY05
Budget Issues
Chairman Abernathy pointed out the information in the notebooks regarding
the Office of Administration's transfer of funds from PSTIF to help
pay for statewide offices and operations. He then announced that,
due to late developments, the discussion of DNR's budget would be
postponed.
Jim Ford
briefly reported on a meeting between himself and representatives
of the Department of Natural Resources and Governor's Office regarding
the cost of inspections; he reminded Mr. Schuette of his question
about whether OA was "double-dipping" from PSTIF for state services.
Ms. Eighmey suggested the only way that may be happening is if OA
is tapping DNR's Cost Allocation Fund, which contains some PSTIF dollars.
Legislative
Report
Trustees reviewed information in their notebooks regarding bills which
have been filed in the Missouri General Assembly. Ms. Eighmey noted
that changes to the Sunshine Law are also being considered.
RBCA
Update
Ms. Eighmey noted a written report had been provided in the Trustees'
notebooks, and said she has recently expressed concern to the Department
of Natural Resources that haste to issue the Guidance is hampering
communications and undermining the consensus process.
Administrative
Issues
Administrative Issues Ms. Eighmey reported that a constructive meeting
had been held with DNR, Department of Agriculture, and MPCA to discuss
concerns with thermoplastic piping. She said all parties had agreed
to print and distribute a flyer, informing tank owners of the potential
problems, and that each agency's state inspectors would be watching
for problems over the next six months. A follow-up meeting will be
held in June to review feedback from tank owners and inspections.
The upcoming
National UST/LUST Conference was noted; Gary O'Neal moved that the
Board approve out-of-state travel for the Executive Director to attend.
Bart Creech seconded; motion carried.
Trustees
were reminded of the requirement to file financial disclosure reports
with the Missouri Ethics Commission by April 30.
Chairman
Abernathy asked if there were any questions about the billings; none
were raised.
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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