| Chairman McNutt called the meeting to order. Randy Allen was introduced as the new designee representing the Commissioner of Administration on the Board. |
| Trustees Present: |
Absent: |
Don McNutt, New Chairman
James Ford, New Vice Chairman
Robert L. Abernathy
John Albert
Randy Allen
Tom Kolb
Tom Pfeiffer
Dan Schuette |
Gary O'Neal
Danny Opie
|
| Staff Present: |
|
Carol R. Eighmey, Executive Director
Diane Wallace, Executive Assistant
Tim Duggan, Assistant Attorney General
Pat Eriksen, Managing Partner, Williams & Company
Pat Vuchetich, General Claims Manager
Ray Lentz, Operations Manager
Dave Pate, Claims Manager |
Approval
of Minutes-January 26, 2005 Meeting
Dan Schuette suggested a wording change in the last sentence of the second paragraph on page 2: “We seek an appropriate balance to make sure all facilities are treated fairly and have an opportunity to correct noted problems.” Tom Pfeiffer moved that the minutes from the January 26, 2005 Board meeting be approved with this change. Bob Abernathy seconded. Motion carried.
Monthly Reports
Chairman McNutt invited Trustees to review the monthly reports. Dan Schuette moved that the Board release funding for eleven new remedial claims. Tom Pfeiffer seconded. Motion carried.
Dan Schuette asked for further explanation concerning the comment in the notebook about the 2,814 UST sites the Fund is liable for; it was noted this includes 2,727 sites where the owner/operator can make a claim, plus 87 sites where the former policyholder has purchased an “Extended Reporting Period” and can still file a claim. Carol Eighmey noted that a recent query of the database indicates the number of large loss claims is trending downward.
Expenditure maps were distributed to Trustees to show how much the Fund has paid for cleanups in each county; one map was for FY04 and one showed the cumulative amounts since the inception of the Fund.
DNR Report - First Half FY05
Ms. Eighmey shared her observations from these reports, and emphasized the encouraging trend of more claims being closed.
Proposal to Upgrade MEGA
Bill Duley from DNR's Geological Survey and Resource Assessment Division was introduced; he gave an overview of the software titled, “Missouri Environmental Geology Atlas” (MEGA) that they are proposing to upgrade. His cost estimate for student assistance to be paid by the Fund was $9,000. He reminded the Trustees that they had provided funding a few years ago to create this software product, and reported that MEGA has been very well received, used by staff and consultants extensively, and is provided to the public at a nominal cost.
Jim Ford moved that the Board approve expenditures of $9,000 to upgrade MEGA. John Albert seconded; motion carried.
Report and Recommendations from Advisory Committee
Robin Melton, Chairman of the PSTIF Advisory Committee, gave a report on the recent Advisory Committee meeting held on March 9, 2005. She indicated several important issues were discussed, and noted that the new Committee members participated enthusiastically. She said the Committee plans to meet quarterly in 2005.
Regarding the language in the UST Participation Agreement, she reported the Committee had considered a variety of changes, including lowering the deductible, increasing the “per occurrence” coverage, and changes to legal defense costs. She said the Committee's final recommendations were to leave most recommendations unchanged from the previous version presented to the Board, and noted that would make the UST Agreement more similar to the AST Participation Agreement. Tom Pfeiffer asked whether a definition of “annual aggregate” should be added; it was decided that could be addressed in the Board's regulations. Ms. Eighmey noted that the Committee will be reviewing and recommending some changes and additions to the Board's regulations in the near future.
Bob Abernathy moved that the revised UST Participation Agreement presented in the Trustees' notebooks be approved. Tom Kolb seconded; motion carried.
Report on RBCA Implementation
Trustees reviewed the report in their notebooks. Tom Pfeiffer asked if DNR could provide information at the next Board meeting on when they expect to achieve the items remaining on the “To Do” list; John Balkenbush agreed to do that. Dan Schuette commented that one reason some tasks seem to take a long time to accomplish is that the Department is trying to get consensus from affected parties before implementing changes or policy decisions; he noted that the issue involving “clean fill” must be addressed carefully, since there is a statutory definition of “clean fill” that must be adhered to.
Legislative Report
Trustees reviewed the report in their notebooks. It was noted that SB182, requiring transporters and bulk distributors of propane to have liability insurance, will likely pass. John Albert observed that HB508 would allow local regulation of fuel storage tanks, and could signal the beginning of a “patchwork quilt” of varying requirements across the state if many localities are allowed to enact their own requirements; he noted this would create a compliance challenge for tank owners.
Ms. Eighmey noted that SB225 is important to the Department of Natural Resources, since it involves reauthorization of and changes to hazardous waste fees that provide significant annual revenues to the Department. Ron Leone noted that the MPCA has opposed attempts to put new taxes or fees on the petroleum industry in that bill.
Jim Ford asked if SB150 was moving; Ms. Eighmey indicated it is not. Bob Abernathy commented that SJR9 seemed unlikely to pass; others indicated that resolution is not moving this year, but at one time Missouri's legislature operated that way.
Administrative
Issues
Report on UST/LUST Conference – Carol Eighmey gave a brief overview of the conference and thanked Trustees for the opportunity to attend. She noted it is the largest national meeting on USTs and cleanups and provides a forum for discussions with colleagues from other states on the issues of concern in Missouri. She noted that two Williams' employees and four DNR employees also attended the conference.
Actuarial Study -- Carol Eighmey reported that the study by Pinnacle Actuarial Consultants is underway and a draft report is due by April 15, 2005. The actuary will attend the May 25, 2005 Board meeting to present his findings.
FR Compliance – It was reported that the Attorney General's office had recently sent letters to approximately 169 UST owners/operators who are not in compliance with the requirement to have a “Financial Responsibility” mechanism; this has been a concern of the Board for some time.
Ethics Commission Reports -- Ms. Eighmey reminded Trustees of the requirement to file Personal Financial Disclosure Reports with the Missouri Ethics Commission by May 1.
Billings -- Chairman McNutt called the Trustees' attention to the recent bills in their notebooks.
Bob Abernathy 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. Tom Pfeiffer seconded. 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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