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Chairman McNutt called the meeting to order. |
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| Trustees Present: |
Absent: |
Don McNutt, Chairman
Jim Ford, Vice Chairman
Harry Bozoian
Mark A. Kaiser (Renee Slusher)
Tom Kolb
Ski Mariea
Melvin Schebaum
Bruce Work |
John Albert
Danny Opie
Tom Pfeiffer |
| Staff Present: |
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Bob Clarke, PSTF Claims Manager, Williams & Company Consulting, Inc.
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
Dan Henry, Williams & Company Consulting, Inc.
Shelly Whitney (for Diane James), Williams & Company Consulting, Inc. |
| Others Present: |
Keith Gast, Department of Revenue
Ken Koon, Chief, Tanks Section, Hazardous Waste Program, DNR
Ron Leone, Executive Director, MPCA
Dwayne Maples, Department of Revenue
Jack McManus, Attorney General’s Office
Heather Peters, Compliance/Enforcement Section, Hazardous Waste Prgm, DNR
Bruce Wylie, American Council of Engineering Companies (ACEC) of Missouri
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Review and Approval of Minutes – March 16, 2011 -Open Session Meeting
Tom Kolbmoved that the minutes from the March 16, 2011 Board meeting be approved. Mark Kaiser seconded. Motion carried.
Monthly Reports
Chairman McNutt asked if there were any questions about the April financial statements; there were none.
There was a discussion about large-loss claims; it was noted many of these claim files have been open for 15-20 years. Ms. Eighmey noted that, in an effort to expedite completion of the cleanups and minimize costs, Williams & Company had recommended and she had approved payment of remaining benefits on three large-loss claims where cleanup costs will exceed
$1 million. Trustees questioned whether doing so poses any risk to the PSTIF; Mr. Duggan responded that he does not think it does. It was noted that the DNR can and should compel the claimants to complete their cleanups. Mr. Bozoian suggested that, in the future, before similar payouts are made, claimants should be asked to sign an agreement to verify their understanding of their obligation to use the funds to complete cleanup; Ms. Eighmey agreed to work with Mr. Duggan to develop such a document if similar payments are recommended in the future.
Approve FY12 Central Services Cost Allocation Plan (CSCAP)
Ski Mariea moved that the Board approve expenditure of up to $143,544 for central services in FY12. Harry Bozoian seconded. Motion carried.
Legislative Report
Ms. Eighmey reviewed the summary provided in Trustees’ notebooks. She noted HB135 had not been signed by the Governor, but she is not aware of any opposition to the bill and expects it will be signed. She noted it contains language giving the PSTIF Board responsibility for deciding whether to implement an UST operator training program and, if implemented, for funding it. She said there will be a considerable amount of work involved in gathering ideas and input and making that decision, then implementing a program if the Board decides to do so. She said Heather Peters has agreed to serve as DNR’s liaison and will be working with her on the issue.
Chairman McNutt asked how many states have already implemented an UST operator training program; Ms. Eighmey estimated 25-27 states. She noted Kansas was one of the first states to do so, and has been offering training to its UST operators for quite some time, but there are still a sizeable number of operators who have not attended their training classes. She noted one of the most significant issues the Board will have to decide is what the consequence will be for operators who do not comply with the training requirement, noting that most other states do not enforce their UST requirements as effectively as does Missouri. Mr. Ford asked what the timeframe is for a company to get their personnel trained; Ms. Eighmey said that will have to be decided. Mr. Work asked if the training requirement would apply to all employees or only certain ones. Ms. Eighmey said the EPA guidelines establish three categories of employees who must be trained, but that many states have only two categories; she noted this is also a decision the Board would have to make, and noted there are several service providers who are already offering training, delivered in various formats.
Ms. Eighmey noted that HB135 also contains the technical correction to the statute that the Department of Revenue said was needed to clarify its authority to compel payment of the transport load fee. She thanked Ron Leone for working to assure that language was included in the bill.
Transport Load Fee Collections - Department of Revenue
Chairman McNutt introduced Keith Gast and Dwayne Maples from the Department of Revenue. Mr. Gast discussed the procedures used by his office for collecting the transport load fee for the Board, noting that not much has changed in recent years. He said fees are voluntarily paid monthly; if payment is not received from a licensed supplier or distributor, his agency sends out a bill based on their estimate of the amount due.
He noted all suppliers are required to post a bond, and if a bill is not paid within thirty days, the Department of Revenue makes a claim against that bond. If the bond is insufficient to cover the liability, then a lien is placed against any property the supplier owns in all Missouri counties and the City of St. Louis. Should a payer declare bankruptcy, the Department of Revenue makes a claim with the bankruptcy court. Payment plans are sometimes negotiated with delinquent payers, and the Department of Revenue sometimes uses a collection agency to assist with collection efforts.
Mr. Work inquired how the PSTIF is informed of unpaid fees. Mr. Gast said his office prepares a list at the end of each fiscal year, which is made available to the PSTIF and its auditor.
Mr. Bozoian asked how the Department knows that the payers are paying the correct amount. Mr. Gast explained that his office collects data from all points in the petroleum distribution process and conducts various analyses to try and make sure the applicable fees and taxes are being paid on all fuel. He acknowledged that it is impossible to check every gallon and every payer every month, but expressed confidence in the effectiveness of his agency’s oversight. Mr. Kolb agreed, noting the Department of Revenue does a very good job in this area. In response to a question from Mr. Kolb, Mr. Gast noted he had been working for the Department of Revenue for 23 years.
Ms. Eighmey asked how many payers there are; Mr. Gast responded that about 750 petroleum reports are received each month. He said there are 117 suppliers, 377 distributors and 21 terminals in the state.
Mr. Schebaum asked how ethanol-blended and biodiesel fuel is tracked; Mr. Gast said it is much more difficult to know whether the correct fees and taxes are being paid on those types of fuels, since the suppliers do not file reports with Department of Revenue, which means his agency cannot do the same kind of reconciliations they do on petroleum products.
In closing, Mr. Gast clarified that Missouri taxes/fees only are paid on fuels sold in Missouri; if fuel is transported to other states and sold there, the other states’ taxes/fees are owed. Mr. Kolb noted that since Missouri’s fees/taxes are lower than the surrounding states, tax evasion and fraud is less likely. Chairman McNutt thanked Mssrs. Gast and Maples for attending the meeting and presenting information to the Trustees.
Inspections Cycle
Chairman McNutt directed Trustees’ attention to the information in their notebooks about inspections and asked Ms. Eighmey to review it. Using a power point presentation, Ms. Eighmey explained why a change to Missouri’s inspection contract needs to be considered. She noted that the U.S. EPA is now interpreting “once every three years” to mean “no more than 1095 days” between inspections. She reviewed various options for modifying Missouri’s inspection cycle and contract, summarized the discussion she’d had with the DNR and the PSTIF Advisory Committee on the subject, and provided estimates on the fiscal impact of various approaches.
Chairman McNutt noted that the Trustees would discuss the issue further in closed session, since it involved possible changes to its contract with Rounds and Associates.
Update on Rules
DNR’s UST Operating Rules – Ms. Eighmey spoke positively about the proposed rule changes, noting some of them – though they may cost some money and may not be entirely well-received by all owners/operators – will reduce the PSTIF’s risks. She said she intends to submit comments in support of the rule changes to the Hazardous Waste Management Commission, unless the PSTIF Board objects. Trustees agreed this would be appropriate.
Trustees briefly reviewed the synopsis provided in their notebooks on other rulemakings.
Administrative Issues
Chairman McNutt invited questions or comments about the information provided.
Mark Kaiser moved to engage Kerper and Bowron LLC for another biannual actuarial study. Melvin Schebaum seconded. Motion carried.
Chairman McNutt asked if there were any questions regarding the billing information provided; there were none.
Chairman McNutt reminded all present that the next Board Meeting would be in Columbia on July 20, 2011, at The University Club on MU’s campus.
Melvin Schebaum 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. Mark Kaiser seconded. Motion carried.
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