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In
the absence of the Chairman, Vice Chairman Baker called the
meeting to order. Trustees Present:
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| Trustees
Present: |
Absent: |
Judy Baker, Vice Chairman
William "Bart" Creech III
James Ford
Ron Hooker
Tom Kolb
Don McNutt
Joyce Murphy
Gary O'Neal
Dan Schuette (Designee for Steve Mahfood) |
Robert L. Abernathy, Chairman
Robert Jackson |
| Staff
Present: |
|
Carol
R. Eighmey, Executive Director
Tim Duggan, Assistant Attorney General
Terry M. Nichols, Administrative Assistant
H. Patrick Eriksen, Williams & Company Consulting
Pat Vuchetich, General Claims Manager
Ray Lentz, Operations Manager
David Pate, Claims Manager |
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FY03
Audit
Carol Eighmey introduced Drew Blossom, KPMG KC, who presented the
draft audit report. He reviewed the financial statements and opinion
letter, noting there were no problems found and no recommended changes
in the Board's accounting methods. There was brief discussion about
the year-end adjustment in claim reserves, made in response to the
actuarial report.
Bart
Creech moved that the Board accept the audit report as presented;
Gary O'Neal seconded the motion. Motion carried. Ms. Eighmey thanked
staff and the auditor for completing all year-end adjustments in record
time, which will allow the Board to forward the audited financial
reports to the Office of Administration for use in preparation of
the Missouri Annual Consolidated Financial Report.
Claim
Appeal - Former Frog Hop Oil, Claim 61394
Vice Chairman Baker asked if there were any questions about the information
in the Trustees' notebooks; there were none.
Claim
Appeal - Gateway Amoco, Claims 61457 & 60120
Jim Morris and Bill Pruitt, representing Morris Oil, presented the
appeal. Messrs. Pruitt and Morris explained why they believed all
costs of cleanup should be considered part of one claim. There were
several questions from Trustees about the size and history of the
site, location of the tanks and dispensers, and timing of various
activities at the site. Mr. Pruitt passed around a copy of a report
provided by Morris' consultant, Sunbelt. Mr. Morris clarified that
his request was for the entire amount of the $10,000 deductible.
Approval
of Minutes
Bart Creech moved that the minutes from the July 23, 2003 meeting
be approved; Tom Kolb seconded. Motion carried.
Monthly
Reports
Trustees reviewed the monthly reports.
Dan Schuette
moved that the Board release funding for the 15 new remedial claims;
Jim Ford seconded. Motion carried.
Proposed
Rules to Implement Extended Reporting Period for USTs
Bart Creech moved that the Board publish the proposed regulations;
Ron Hooker seconded. Don McNutt asked for clarification of the procedures
for demonstrating compliance with leak detection rules when a property
is sold. Ms. Eighmey reviewed the procedures. Judy Baker asked for
explanation of why an owner would buy the ERP; Jim Ford and Carol
Eighmey explained various situations when it would be beneficial.
After discussion on these and other aspects of the proposed rules,
Vice Chairman called for a vote. Motion carried.
Cash
Flow Projection
Pat Eriksen made a detailed presentation which explained the assumptions
used in making the projection, compared actual experience with previous
projections, and discussed how large loss claims continue to impact
the projections. He noted the actuarial report commissioned by the
Board had suggested claim reserves for current claims might be underestimated
by as much as $78 million, and explained why he does not think that
is accurate. He explained that an additional liability of $25 million
had been used in the projections, based on discussions with the actuary
and the auditor. He distributed copies of his presentation; copy attached
hereto.
Mr. Eriksen
suggested that if the projections prove accurate, the Board and its
Advisory Committee should begin discussions of an increase in the
transport load fee in mid-2005.
FY05
Budget Requests
Jim Ford made a motion that the Board approve the request from the
Attorney General's Office for funding from the PSTIF to support ½
FTE; Bart Creech seconded. Motion carried.
Bart
Creech moved that the Board approve the request from the Department
of Revenue for funding from the PSTIF to support 1 FTE; Jim Ford seconded.
Motion carried.
Jim
Ford made a motion that the Board approve the recommended appropriations
requests for its operations for FY05; Bart Creech seconded. Motion
carried.
Administrative
Issues
Carol Eighmey reviewed the status of efforts to implement risk-based
corrective action. She noted she expects some complaints from contractors
and/or consultants who are unhappy with claims being closed.
Agenda
items for the upcoming Advisory Committee meeting were reviewed.
Ms. Eighmey
asked for approval to attend an out-of-state meeting of the State
Fund Administrators' Task Force. Gary O'Neal moved that the Board
approve the trip; Bart Creech seconded the motion. Motion carried.
Dan Schuette offered to sign any forms required to document the Board's
approval to expedite payment of expenses.
There
were no questions about recent billings. Bart Creech 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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