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Chairman
Abernathy called the meeting to order and introduced two new
Trustees, Danny Opie and Tom Pfeiffer.
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| Trustees
Present: |
Absent: |
Robert L. Abernathy, Chairman
James Ford
Ron Hooker
Tom Kolb
Don McNutt
Danny Opie
Tom Pfeiffer
Dan Schuette (Designee for Steve Mahfood) |
Judy Baker
Joyce Murphy
Gary O'Neal |
| 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 - City of Grandview, Claim 60994
Larry Finley, city engineer, presented the City's appeal. He explained
that a site characterization had showed soils near the UST system
were contaminated, and the excavation was aimed at removing those
soils. He explained that there were five analytical samples of the
400 cubic yards of soil that was excavated and stockpiled; of those,
one was "clean," and the other four had levels of contamination that
prevented the soil from being put back into the ground at the site.
Pat Vuchetich
handed out a memo (attached hereto) and explained the payment decision
made by the Fund Administrator, noting that the dispute arose because
the soil was not contaminated enough to require remediation under
DNR's guidelines. He noted the project was done without notifying
the Fund, so no adjuster was on site during the work.
Trustees
asked several questions about the costs, the lab results, and the
decision to excavate.
Claim
Appeal - Former Coca Cola Plant, Claim 51024
Bryce Currie, Geotechnology, presented the appeal on behalf of Coca
Cola. He reviewed the history of the site, noting that action was
delayed waiting for Missouri's risk-based corrective action guidelines
to be issued and summarizing Coca Cola's decision to proceed with
the excavation and haul the soils to a disposal facility in Wisconsin.
Ms. Eighmey
reported on her recent conversations with counsel for Coca Cola, noting
she had supported Williams & Company's decision to deny the payment,
since Geotechnology's assessment indicated the remaining contamination
posed no risk. However, because the RBCA guidance was delayed and
Coca Cola could not get a "No Further Action" letter under DNR's old
guidelines without further action, she recommended an additional payment
of $60,578.24.
Danny
Opie questioned how the property is being used today; Mr. Currie responded
it is a warehouse.
Dan Schuette
moved that the Board pay the additional $60,578.24. Jim Ford seconded
the motion. After further discussion, the motion passed without opposition.
Approval
of Minutes
Tom Kolb moved that the minutes from the March 31, 2004 be approved.
Ron Hooker seconded the motion, which carried.
Monthly
Reports
Chairman Abernathy called Trustees' attention to the financial statements
and monthly activity reports in their notebooks. Dan Schuette moved
that the 12 new remedial claims be funded; Ron Hooker seconded the
motion. Motion carried.
Discussion
followed about the memorandum from Ed Galbraith summarizing efforts
to enforce the financial responsibility requirement. Tom Pfeiffer
asked what "referred to enforcement" means, and whether any of the
50 such owners had been fined or sued. Dan Schuette explained the
Department's policy of giving owners several opportunities to come
into compliance before such consequences, and promised to follow up
with a more detailed response.
Update
on RBCA
Carol Eighmey presented a series of slides which explain Missouri's
new risk-based corrective action guidelines for tank sites. She then
handed out copies of tables that compared the old guidelines for soil
cleanup to the new guidelines (copy attached hereto). John Balkenbush
emphasized that the new approach is more scientifically and fiscally
responsible, and said the Department will be drafting regulations
to implement pertinent portions of the new guidance document.
DNR
Organization Chart
Dan Schuette and John Balkenbush reviewed the organization chart for
the Department of Natural Resources, highlighting those parts of the
agency that are involved in tanks work.
Proposed
Agreement - EER Oversight Costs
Chairman Abernathy asked the Trustees to review a proposed agreement
distributed in their notebooks. Dan Schuette reminded Trustees what
the Department's environmental emergency response (EER) section does,
and reviewed prior discussions with the Board about the Department's
demands on insured tank owner's to repay the Department's response
costs. He noted that over the last several months, a proposed agreement
had been negotiated with the Executive Director which would assure
that PSTIF policyholders do not receive bills for such activities;
rather, the EER activities would be supported via the annual funding
provided by the PSTIF directly to the DNR.
Carol
Eighmey reminded Trustees of previous discussions on this subject,
and thanked Dan for his efforts to resolve the dispute.
Ron Leone
said he had no opinion on whether the Board should approve the agreement
or not, but pointed out that an interim legislative committee will
be meeting to discuss hazardous waste fees, and that their discussion
and decisions may require reconsideration of the agreement in future
years.
Dan Schuette
agreed. Dan Schuette moved that the Board approve the agreement as
proposed. Don McNutt seconded the motion, which passed.
Proposed
Agreement - DNR Inspections
Ms. Eighmey alerted Trustees that a report on the inspections done
by the Board's private contractor will be presented at the their July
meeting. She summarized discussions with DNR about inspection protocols,
and recommended approval of the proposed agreement, which would consolidate
PSTIF and DNR inspections.
Jim Ford
expressed reservations about the agreement, based on the cover memorandum
from Ed Galbraith; he noted he had been involved in some of the negotiations,
and asked if the Department intended to follow through with the commitments
made to him and the other members of the Board. Dan Schuette assured
him that the Department is committed to doing the inspections in a
more efficient and cost-effective manner, but is concerned about the
10% cut in funding imposed by the Board.
Further
discussion followed. Don McNutt objected to the phrase in the agreement
relating to the 10% cut, and suggested deleting that reference in
two places. Jim Ford moved that the agreement be approved with Don's
amendment. Don McNutt seconded. Dan Schuette suggested the Board make
the change and initial it, then forward it to the Department for review
and initials to denote acceptance of the Board's change. The motion
carried.
Legislative
Report
Chairman Abernathy called Trustees' attention to the report in their
notebooks. Carol Eighmey thanked Harry Gallagher, Ron Leone, Trustees
and others who helped educate and inform legislators on the impacts
of various bills on the PSTIF.
Administrative
Issues
Recent improvements in the Fund Administrator's procedures for making
payments electronically were reviewed.
Jim Ford
moved that the Board approve out-of-state travel for the Executive
Director to attend the State Fund Administrators' Conference in Rhode
Island in June. Tom Kolb seconded, and the motion carried.
Ms.
Eighmey highlighted the upcoming Brownfields Conference in St. Louis,
and asked for Board approval to endorse the conference. Don McNutt
moved that the PSTIF endorse the conference; Tom Pfeiffer seconded.
Motion carried.
Billings
were reviewed.
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. Ron Hooker 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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