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Chairman Abernathy called the meeting to order. He welcomed and introduced John Albert, who is the new designee on the Board representing the Department of Agriculture, replacing Ron Hooker. |
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| Trustees
Present: |
Absent: |
Robert L. Abernathy, Chairman
Judy Baker, Vice Chairman
John Albert
James Ford
Tom Kolb
Don McNutt
Danny Opie
Tom Pfeiffer
Joyce Murphy
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Gary O'Neal
Dan Schuette (Designee for Steve Mahfood) |
| 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
Dan Henry, Project Manager
Pat Rounds, Rounds & Associates |
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Claim Appeal – County Seat Motors, Claim 50339
Carol Eighmey reported that the attorney for the claimant had requested a postponement of the appeal since the tanks had recently been removed from the property and a closure report has been submitted to DNR.
Claim Appeal – Tri-County Truck Stop, Claim 80072
Jack Burst, Triangle Environmental, was introduced to present the appeal. He said the work at the site had taken longer than anticipated, and noted there were some cost savings from the original cost estimated. He noted there was a mistake in the original cost estimate, and stated that the Fund Administrator had agreed to increase the pre-approved amount for the project. He alleged that the payment decision was not a fair one, and suggested there needs to be an impartial party to review billing disputes.
Pat Vuchetich then explained the payment decision made by Williams & Company. He noted that the work was already underway when the consultant requested an increase in the pre-approved costs, and the response provided from his office simply indicated “reasonable” costs would be recognized. He noted the cost estimate anticipated $10,800 in costs for consulting time, and that $16,504.83 had been billed. He reviewed the other portions of the payment.
In response to questions from the Trustees and the Executive Director, Mr. Burst noted that he had no written contract with his client, who does not want to pay the additional expenses billed. Mr. Kolb noted the original cost estimate was $17,986, and the Fund Administrator's payment recognized costs of $19,936.
Approval
of Minutes
Judy Baker moved that the minutes from the May 26, 2004 Board meeting be approved; Tom Pfeiffer seconded the motion, which carried.
Monthly
Reports
Chairman Abernathy invited Trustees to review the monthly reports, and invited questions. Ms. Eighmey reported all issues had been worked out regarding the audit, and the Office of Administration had approved the renewal and extension of the contract with KPMG. She said KPMG would begin the FY04 audit in August and finish it in 60-90 days.
Judy Baker made a motion that funding for the five new remedial claims be released; Jim Ford seconded. Motion carried.
Report on Inspections – Rounds & Associates
Pat Rounds, president of Rounds & Associates, was introduced. He made a Power Point presentation summarizing the inspections conducted by his company for the Board during March – June; a copy of the presentation is retained in the Board's records.
Training, Education, and Information Plans – FY05
Ms. Eighmey asked Trustees to review the proposal in their notebooks for FY05. She summarized the plan, and noted the Board's appropriation for Expense and Equipment is sufficient to accommodate the planned expenses. She noted the initial Internet Forum for Consultants had been very successful, and emphasized the importance of continued training and education for consultants who are implementing the DNR's new Risk-Based Corrective Action guidelines. She requested Board approval of the plan.
Judy Baker moved that the Board approve the plan; Jim Ford seconded and noted that training of tank site operators to address some of the operating issues noted in Rounds' report would be prudent. Motion carried.
FY05 Budget
A list of all appropriations from the PSTIF made by the 2004 General Assembly was reviewed. Ms. Eighmey noted the appropriations simply provide authority to spend money, and do not necessarily reflect actual expenditures. She reviewed the figures to be used on the monthly Income Statements provided to the Board, and asked for approval of the figures. Don McNutt moved that the proposed budget be approved; Judy Baker seconded. Tom Pfeiffer noted the figure for OA needed to be reduced; Ms. Eighmey agreed, and explained that costs for retiree health care had previously been paid from the OA appropriation, but will now be paid from each agency's appropriation instead. With the correction, the motion was approved.
Photo Documentation – Williams & Company
Ray Lentz demonstrated new capabilities added to the PSTIF software which allow ready access to photographs taken by inspectors and claims adjusters. Ms. Eighmey complimented Williams & Company on the excellent software provided for PSTIF operations
Administrative
Issues
Trustees reviewed the information in their notebooks about a claim where a “Pay for Performance” contract had been successfully used to contain costs and define a timeframe for completion of corrective action.
Ms. Eighmey reported on the State Fund Administrators' Conference she attended in June.
Tom Pfeiffer questioned whether there had been another invoice, in addition to the one in the notebooks, from Rounds & Associates; Ms. Eighmey indicated a previous invoice had also been paid, and that the PSTIF had paid for 350 inspections.
Jim Ford 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. Judy Baker 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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