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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
James Ford
Ron Hooker
Tom Kolb
Don McNutt
Joyce Murphy
Dan Schuette (Designee for Steve Mahfood) |
William "Bart" Creech III
Gary O'Neal |
| 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
H. Patrick Eriksen, Williams & Company Consulting
Ray Lentz, Operations Manager
David Pate, Claims Manager |
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Claim
61162 Appeal - Rhodes 101, Cape Girardeau
Trustees reviewed the summary in their notebooks; Carol Eighmey explained
that the appeal was not filed timely, but said that recent conversation
with the policyholder and review of the facts led her to recommend
that an additional $4,000 payment be made. Chairman Abernathy directed
the Board to discuss the appeal and make its decision in closed session.
Approval
of Minutes
Don McNutt moved that the minutes from the January 28, 2004 meeting
be approved. Judy Baker seconded the motion, which carried.
Monthly
Reports
Financial reports and activity reports were reviewed. Ms. Eighmey
directed the Trustees' attention to recent correspondence concerning
the audit and the format of information prepared for use by the Office
of Administration in the Missouri Consolidated Annual Financial Report,
including the presentation of fixed assets. Ms. Murphy said she was
not familiar with the details, but it appears the issue is being worked
out. Ms. Eighmey noted she had not had any conversation with DNR about
the issue.
Dan Schuette
moved that the Board release funding for the Hold claims; Jim Ford
seconded. Motion carried.
Ms. Eighmey
noted trends of PSTIF insureds indicate the typical policyholder owns
fewer sites than five years ago, indicating there are more Fund participants
who own only one site. She observed that in its early years, the Fund
could reach the majority of its policyholders via communications with
the Petroleum Marketers Association and the Missouri Oil Council,
but that is no longer true. Discussion followed, during which it was
noted that more proactive efforts at training and communicating with
tank owners may be in order. Trustees encouraged staff of the PSTIF,
DNR and Department of Agriculture to be aware of the trend.
DNR
Report - First Half FY04
Trustees reviewed the mid-year report; there were no questions.
Cash
Flow Projections
Pat Eriksen presented the semi-annual cash flow projections; a copy
of his presentation is attached. Among the points he emphasized was
that the underlying assumptions include changes resulting from the
recently-issued RBCA Guidance, such as the following: increased site
characterization costs, reduced excavation costs, and reduced groundwater
monitoring costs. He emphasized that the projected impacts of RBCA
are preliminary and that after 18-24 months' implementation and experience,
better projections will be possible. It was clarified that transport
load fee revenues will cease at the sunset date of the program, December
31, 2010, and that at that time the Fund will need to have sufficient
cash reserves to pay for completion of all ongoing cleanups. Carol
Eighmey reminded the Board that an actuarial study will be commissioned
later in the calendar year.
Report
on RBCA
The summary memorandum in the Trustees' notebooks was reviewed. Chairman
Abernathy asked when remediation activities will pick up; Ms. Eighmey
said many cleanups that have been stalled should be completed relatively
quickly under the new Guidance, and said she had challenged Fund staff
to get 150 claims closed by Christmas, and another 150 by Memorial
Day 2005. She noted that accomplishing this will require additional
efforts to educate and inform the environmental consultants who do
work for tank owners.
John
Balkenbush added further explanation, acknowledging that there had
been some shortcomings in the Stakeholder process but emphasizing
the Department's commitment to get the Guidance issued and work with
stakeholders to implement it successfully. He said the Department
is still open to making further improvements in the Guidance, and
that a committee had been formed to further evaluate the approach
to the indoor inhalation exposure pathway.
Legislative
Report
Chairman Abernathy called attention to the list of bills under consideration
by the General Assembly. Carol Eighmey indicated that some version
of the bill amending the Sunshine Law will likely pass this year.
Trustees
asked several questions, focusing on whether the PSTIF is still susceptible
to a "sweep" to help alleviate the budget problems. Ms. Eighmey encouraged
continued efforts to educate legislators on why the PSTIF must have
cash reserves for its long-term liabilities.
Jim Ford
also asked whether SB718 will affect the PSTIF; Ms. Eighmey responded
that it does not appear to impact the Fund's operations.
Report
on Inspections
It was reported that the inspections being done by the Board's contractor,
Rounds & Associates, are underway.
Judy
Baker reported that the Budget Committee had met to finalize a recommendation
for the Board's consideration regarding funding for DNR and whether
to utilize the Department to conduct PSTIF's inspections in FY05.
She said the Committee was encouraged by progress made in discussions
with the DNR regarding coordinated inspections, and believed cost
savings could be achieved. She presented the Committee's recommendation
that the Board approve a budget of $1,841,328 for DNR for FY05. Jim
Ford seconded.
A brief
discussion followed. Dan Schuette re-emphasized points he made in
a recent communication to the Budget Committee, in which the Department
had requested an amount equal to the FY03 budget. Chairman Abernathy
noted that a year's experience will provide a better basis for future
budgeting.
Carol
Eighmey asked whether the Committee intended for her to complete negotiations
with DNR and develop a written document that outlines what the Board
and the Department are agreeing to relative to inspections. Ms. Baker
affirmed that was the Committee's desires. Jim Ford agreed, and noted
that a lot of issues had been resolved, including plans for better
information-sharing.
The motion
carried, with Dan Schuette voting against it.
Administrative
Issues
Ms. Eighmey asked the Board to postpone the recommended appointment
of Doug Potts to the Advisory Committee. She thanked the Board for
the opportunity to attend the National UST/LUST Conference and briefly
summarized some of the information gleaned from the meeting.
Trustees
were reminded to file their Financial Disclosure Reports with the
Ethics Commission by April 30.
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. 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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