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Chairman
Abernathy called the meeting to order at 9:30 a.m. Ed Galbraith
introduced the new DNR Tanks Section Chief, John Balkenbush.
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| Trustees
Present: |
Absent: |
Robert L. Abernathy, Chairman
Judy Baker, Vice Chairman
William "Bart" Creech III
James Ford
Robert Jackson
Tom Kolb
Ron Hooker
Don McNutt |
Joyce Murphy
Gary O'Neal
Dan Schuette (Designee for Steve Mahfood) |
| Staff
Present: |
|
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 Handy Stop #304, Claim 40886
Mr. James Kelley was introduced; he explained that he represents two
parties - the trustee of Hudson Oil and a creditor of the trust who
has a lien on the property. He briefly reviewed the history of the
site's operation, noting that the bankruptcy trust did not have funds
to remove the tanks and that the trustee was in ill health at the
time the fourth waiver should have been requested from DNR. He asked
the Board to reinstate coverage back to the date of cancellation and
noted the bankruptcy trust would pay the back premiums.
Ron Hooker
asked if the tanks had ever been upgraded; it was noted they had not.
He asked why DNR granted three extensions but not a fourth, noting
there was little risk of release after the tanks were emptied and
taken out of service.
There
was discussion about the bankruptcy proceeding; Mr. Kelly clarified
that it had begun in the 1980's. Trustees questioned him about the
creditors' claims; he reported Fauser Oil has a deed of trust for
$340,000 and Amcon has a claim for about $128,000. Mr. Kelley stated
there is an offer to buy the property for $370,000 if it is eligible
for PSTIF benefits, or $220,000 if it is not. It was noted there is
some contamination on the property, but no one has a reliable estimate
of the costs of cleanup.
Claim
Appeal - Former Marchem Property, Claim 51308
Carol Eighmey presented the facts surrounding this appeal, noting
several unusual circumstances. She indicated the property owner is
William Brown, but all communications about the claim appeal had been
with his son, David Brown, who lives on the east coast. She summarized
the history of the tanks at the site, noting they were used by a plastics
coating company, Marchem, until 1980 or 1981, when the tanks were
emptied and the property sold to Mr. Brown. She noted St. Louis County
subsequently removed the tanks during a road-widening project, but
failed to file a proper closure report with DNR.
She noted
that records provided by Marchem provide conflicting information as
to what was stored in the tanks, indicating that various chemicals,
gasoline, mineral spirits and petroleum oil were stored. She
noted that costs to clean up a release of gasoline, mineral spirits
or petroleum oil would be eligible, but that Mr. Brown has inadequate
information to demonstrate whether such a release occurred. She recommended
that the Board pend the claim appeal and send a letter to the DNR,
asking it to compel Marchem, as the legal owner/operator of the tanks,
to do whatever cleanup is required, and noting that Marchem could
then make a claim with PSTIF. A memo from David Brown was distributed;
copy attached hereto.
Chairman
Abernathy then recognized Fred Hutson, who stated that DNR staff desired
to discuss the matter in closed session with the Board, due to it
being an enforcement matter.
Approval
of Minutes
Bart Creech moved that the minutes from the May 23, 2003 meeting be
approved. Bob Jackson seconded; motion carried.
Monthly
Reports
Chairman Abernathy noted the June 30 financial statements are still
in draft form, pending final year-end adjustments.
Bart
Creech moved that the Board release funding for the eight new remedial
claims received since May 1. Judy Baker seconded the motion, which
carried.
Approval
of Audit Report
Approval of Audit Report Judy Baker moved that the audit report provided
at the previous meeting by KPMG for FY01 and FY02 be approved. Bart
Creech seconded the motion, which carried.
FY04
Budget
Ms. Eighmey reviewed the final FY04 appropriations by the Legislature,
noting all of the Board's requests were approved as submitted. Questions
were raised about the transfers by Office of Administration for financial
support of the statewide officeholders; it was noted this is a new
practice and that the expenses have not been approved by the Board.
Trustees expressed various opinions about whether further action should
be taken on this issue.
Revised
DNR Work Plan for FY03
Chairman Abernathy invited review of the revised work plan provided
in the notebooks; there were no questions.
Recommendation
from Advisory Committee - Regulation Changes to Implement Extended
Reporting Period for USTs
Ms. Eighmey reported the chairman of the Advisory Committee was unable
to attend the Board meeting, so she summarized the proposed amendments
to PSTIF regulations.
Trustees
asked several questions about cost, additional exposure, coordination
with private insurers, and the effects of the Fund's sunset date.
Chairman
Abernathy then recognized Fred Hutson, who expressed support for the
overall concept but noted an objection to some of the definitions
proposed. Ms. Eighmey noted that comments regarding the proposed rule
changes could be made during the public comment period, and urged
the Board to adopt the Committee's recommendation and initiate the
rulemaking process.
Bart
Creech moved that the recommendation be tabled until such time as
further discussion with DNR could occur. Don McNutt seconded. After
further discussion, the motion carried.
Update
on RBCA
Ms. Eighmey noted she is optimistic that risk-based corrective action
standards will be implemented in the near future, and announced that
training seminars are scheduled for the first week in December and
the last week of February 2004.
She expressed
appreciation for the Board's financial support of the "pilot projects,"
noting they had been very beneficial in seeing how the new RBCA policies
will apply to tank sites. It was noted that several of DNR's tank
regulations will likely need to be amended, and that the PSTIF Advisory
Committee will be involved in that process.
Chairman
Abernathy asked if tank owners will have a choice whether to do a
"dig and haul" or a risk assessment. Ms. Eighmey replied that excavation
will always be an option for cleaning up contaminated soil, but the
new RBCA guidelines will allow for site-specific cleanup standards
to be used.
Administrative
Issues
Bart Creech moved that the Board appoint John Balkenbush to replace
Ed Galbraith on the PSTIF Advisory Committee. Ron Hooker seconded
the motion, which carried.
Bart
Creech moved that the contract with KPMG be renewed for another year
to perform an audit of the FY03 PSTIF financial statements. Bob Jackson
seconded. Discussion followed about previous performance problems;
Ms. Eighmey said she was confident those problems had been resolved.
Motion carried.
It was
noted that the Board's committee to review responses to the RFP for
third-party administration services will meet on July 29. Also, responses
to the RFP for inspection services are due on July 25, and will be
reviewed by the same committee.
Ms. Eighmey
gave a brief verbal report on the Fund Administrators' Conference
she attended in June.
Jim
Ford asked whether the Board's Budget Committee needed to be reconstituted
to meet with DNR to discuss the FY05 work plan and appropriation.
Fred Hutson agreed that would be constructive. Chairman Abernathy
reappointed Don McNutt, Jim Ford, and Judy Baker, who had served on
the committee last year.
Carol
Eighmey alerted the Board that an October Board meeting is likely;
it was tentatively scheduled for October 29.
Chairman
Abernathy inquired whether there were any questions about the billings
contained in the notebook; there were none.
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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