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Chairman
Creech called the meeting to order at 9:40 a.m. Trustees present:
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| Trustees
Present: |
Absent: |
William "Bart" Creech III, Chairman
Bob Abernathy, Vice Chairman
Judy Baker
James Ford
Neal Gibbons, Sr.
Robert Jackson
Don McNutt
Joyce Murphy
Dan Schuette (Designee for Steve Mahfood) |
Gary Collins
Ron Hooker |
| Staff
Present: |
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Carol
R. Eighmey, Executive Director
Tim Duggan, Assistant Attorney General
Terry M. Nichols, Administrative Assistant |
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Approval
of Minutes
Bob Jackson moved that the minutes from the March 20, 2002 open meeting
of the Board be approved. Don McNutt seconded the motion, which carried.
Bob Jackson
moved that the minutes from the March 26, 2002 conference call be
approved. Don McNutt seconded the motion, which carried.
Monthly
Reports
Chairman Creech asked if there were any questions about the financial
reports. Bob Jackson asked if the Prior Period Adjustment on the balance
sheet was related to the "sweep" of money from the Fund by the Legislature.
Ms. Eighmey said it was unrelated to that, and that she would ask
the accountant who prepared the statement to clarify the reason for
the adjustment. Dan Schuette asked what "DNR Fixed Assets" refers
to. Ms. Eighmey said that under new accounting rules applicable to
state governments, fixed assets must be presented on the balance sheet;
she said DNR was working with OA to develop that information and record
it in the SAM II system. Jim Ford asked if DNR purchases equipment
with PSTIF funds; Ms. Eighmey said yes. Dan Schuette asked how the
claim reserve for large loss claims is established. Ms. Eighmey said
the figure on the balance sheet is the sum of site-specific reserves
established and modified daily by staff.
Legislative
Report
Ms. Eighmey reviewed the report provided to Trustees, and reported
that no legislation affecting PSTIF passed, except the supplemental
appropriations bill for FY02 which took $210,998 from PSTIF to pay
for state services. Joyce Murphy reported no legal challenge to the
"fund sweeps" had been filed to date. Chairman Creech noted an amendment
had been proposed in the final two days of the session which would
have changed the deadlines in the PSTIF law and would have allowed
numerous additional claims to be eligible, including claims from site
owners who had previously failed to get insurance before they had
a leak. Ms. Eighmey said the proposal originated from a St. Louis
property owner, and also would have doubled the Fund's coverage to
$1 million for cleanup and $1 million for third-party damages. She
noted such a change would likely invite more third-party claims.
Actuarial
Study
The Trustees reviewed and discussed a draft Request for Proposals
to engage an actuary. Bob Abernathy moved that the Board authorize
the Executive Director to work with the Office of Administration's
Division of Purchasing to finalize and issue the RFP, with the understanding
that the Board will review proposals at its September meeting. Bob
Jackson seconded the motion, which carried.
RBCA
Update
Ed Galbraith, DNR Tanks Section Chief, reported that the Clean Water
Commission had withdrawn the proposed rule and directed staff to convene
a Stakeholders' Committee to redraft the rule. He noted the Commission
had asked for a report within four months. He said the consultant
hired by the Tanks Section was continuing to work on the survey of
other states' RBCA programs for tank sites, and expects to issue some
"white papers" on key issues in August or September. He noted that
same consultant may be used by the Department to facilitate the Stakeholders'
Committee meetings.
Judy
Baker asked if that meant implementation of RBCA would be delayed
until August. Mr. Galbraith indicated he is optimistic progress can
be made by then. Carol Eighmey asked when the Stakeholders' Committee
meeting would be scheduled, and emphasized the Fund's desire for expeditious
action had not waned.
Administrative
Issues
FY04 Budget Requests - Ms. Eighmey distributed the attached
memorandum containing a recommended timetable for negotiation of the
FY04 work plan and budget with DNR. She noted the schedule was developed
in conjunction with DNR staff in an effort to make the process smoother
this year and to complete it earlier. She noted the Board had used
a committee the previous year to review the details and make a recommendation
to the full Board, and suggested the same procedure be used this year.
Chairman
Creech re-appointed the same committee to do this: Judy Baker, Jim
Ford and Don McNutt.
Judy
Baker asked DNR staff if they could meet the deadlines in Ms. Eighmey's
memo; Dan Schuette said yes and noted the dates were suggested by
DNR staff. Ed Galbraith asked that the Board recognize the importance
of giving the committee their input early, so that the department
can reasonably expect the Board to adopt the committee's recommendation.
Dan Schuette confirmed that if discussions or negotiations are needed
in August, a three-person committee comprised of Ed Galbraith, Gary
Heimericks and he would represent the department in those negotiations.
Ms. Eighmey
noted that the proposed timetable will require moving the September
Board meeting up one week to September 18. The Board agreed to the
proposed plan.
Change
in Procedure for Outlawed Checks - The new procedure was reviewed
by the Board.
State
Fund Administrators' Conference - Ms. Eighmey noted she and several
staff plan to attend the annual conference on June 16-19.
July
Meeting - Trustees were reminded of the plans for the July meeting
and field trip.
Billings
- There were no questions.
Jim Ford
then 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. Neal Gibbons
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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