Chairman McNutt called the meeting to order. |
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| Trustees Present: |
Absent: |
Don McNutt, Chairman
John Albert
Rich AuBuchon (arrived after meeting started)
Tom Kolb
Ski Mariea
Danny Opie
Tom Pfeiffer
Melvin Schebaum
Dan Schuette
Bruce Work |
Jim Ford, Vice Chairman
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| Staff Present: |
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Bob Clarke, Operations Manager, Williams & Company Consulting, Inc
Tim Duggan, Attorney General's Office
Carol R. Eighmey, Executive Director
Pat Eriksen, Managing Partner, Williams & Company Consulting, Inc
Dan Henry, Claims Coordinator Supervisor, Williams & Company Consulting, Inc
Pat Vuchetich, General Claims Manager, Williams & Company Consulting, Inc
Diane Wallace, Executive Assistant |
| Others Present: |
Lee Bowron, Kerper and Bowron
LaVerne Brondel, MDNR, Division of Administrative Support
Heath Clarkston, Gallagher Consultants
Rick Elgin, Midwest Environmental Consultants
Harry Gallagher, Gallagher Consultants
Kerry Kaullen, Department of Agriculture, Division of Weights and Measures
Ken Koon, MDNR, Tanks Section Chief
Ron Leone, Missouri Petroleum Marketers and Convenience Store Association
Sarah Madden, Attorney General’s Office
Mike Martin, MDNR, Division of Environmental Quality
Peter Price, MDNR, Division of Geology and Land Survey
David Westhoff, Westhoff Insurance Agency
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Claim Appeal – Westhoff Property, Claim 80361
Chairman McNutt introduced David Westhoff, who explained his claim appeal and showed trustees an old aerial photo which purportedly indicates there was a gas station operated on the property with one or more underground tanks. He and Mr. Elgin also suggested more recent photos show a depression in front of the building where they believe the former UST(s) were located. He asked the Board to pay costs for excavating and disposing of petroleum-impacted soil that was excavated when the aboveground storage tank system was removed from the property. Carol Eighmey clarified that the AST system had never been insured and operated after December 31, 1997, so the Fund cannot pay for cleanup of any contamination from the AST system. She said that if, however, the board can reasonably conclude that some or all of the contamination was from former USTs, those costs of cleanup can be paid, since the USTs were clearly taken out of use by the deadline.
(Rich AuBuchon arrived at meeting during discussion of Mr. Westhoff’s claim.)
There were some questions from the Trustees about where certain things were on the map. Tom Kolb asked who did the cleanup; Mr. Westhoff responded that it was done by Travis Maddox, who works for C.L. Richardson. He clarified that Midwest Environmental Consultants was brought into the project to write the closure report for submittal to DNR.
Approval of Minutes – July 18, 2007 Meeting
Tom Pfeiffer moved that the minutes from the July 18, 2007 Board meeting be approved. Ski Mariea seconded. Dan Schuette abstained since he did not attend this meeting. Motion carried.
Monthly Reports and Decision on Funding New Remedial Claims
Transport Load Fee Issue – Chairman McNutt invited Tim Duggan to comment on his efforts to get a federal agency to pay the transport load fee. Mr. Duggan said the issue involves the Department of Defense, (DOD), and relates to taxes and fees on aviation fuel that is shipped from one place to another. Tom Pfeiffer asked how long DOD has failed to pay; Mr. Duggan said it apparently has never paid taxes and fees on this fuel stream but that the Department of Revenue only recently discovered this. Tom Kolb asked whether the federal government has ever submitted a claim to the PSTIF; Ms. Eighmey responded in the affirmative.
Decision on Funding New “Remedial Claims” – Chairman McNutt invited questions or comments from the Trustees on the monthly reports.
Dan Schuette moved that the Board approve funding for the ten new remedial claims. Tom Pfeiffer seconded. Motion carried.
Actuarial Report
Chairman McNutt introduced Lee Bowron, Kerper and Bowron, to present his actuarial study. Mr. Bowron made a presentation, (a copy of which is on file at the offices of the PSTIF), summarizing his study. He explained two cash flow projections had been prepared – one assumes the Fund “sunsets” on December 31, 2010, as specified in current state law; the other assumes the Missouri Legislature extends the “sunset date” and the Trustees lower the transport load fee to $25.
Melvin Schebaum asked whether the first projection assumes an influx of claims in 2010 from insured tank owners; Mr. Bowron said it does not and agreed that such an influx is likely if the sunset date remains unchanged. Tom Kolb suggested that the current financial stress in the retail gasoline business also may generate an increase in claims. Mr. Bowron affirmed that the two main “drivers” creating new claims are closures and property sales. Tom Pfeiffer questioned a discrepancy in the text of the report concerning numbers of sites insured and claims filed; Mr. Bowron said the figures likely are accurate for different dates, but promised to check and correct the figures.
Report on UST Losses
Chairman McNutt invited Trustees to review the list of recent releases from insured UST systems. Ms. Eighmey gave a presentation summarizing the claims and showing pictures of the releases and some of the cleanups.
Budget Requests for FY09
Chairman McNutt said the Board needs to approve budget requests for FY09 and asked Ms. Eighmey to review the various requests.
PSTIF Board of Trustees – Ms. Eighmey recommended a voluntary reduction in the Board’s appropriation for claims and refunds, from $25,000,000 to $23,000,000, since the Board has not spent the entire $25 million in recent years. She noted the Legislature has historically enacted this as an “estimated” appropriation, which allows the Board to spend more than the appropriated figure if necessary.
In addition, she recommended that the Board submit a request for Personal Services and Expense and Equipment for FY09 equal to its FY08 appropriations. She then distributed a letter received the previous day from Doyle Childers, asking the Board to eliminate one FTE from its budget request.**
There was discussion about the Executive Director’s recommendation and Mr. Childers’ letter. Dan Schuette suggested that the Board had increased the number of FTEs in its budget in FY04; Ms. Eighmey stated that was incorrect, noting the Board’s appropriations requests had been unchanged for a number of years. It was noted that if the Board voluntarily reduces its budget for personnel, it may be difficult to get the Legislature to increase it in future years. Rich AuBuchon indicated the number of FTEs is not fixed by the budget bill and that the Board could hire additional staff as needed, as long as it does not spend more money than appropriated for Personal Services.
Tom Kolb made a motion that the Board submit its budget request with 2.0 FTEs, leaving the figure unchanged for Personal Services, and voluntarily reducing its request for claims/refunds from $25 million to $23 million. Tom Pfeiffer seconded. Voting in favor were: John Albert, Rich AuBuchon, Tom Kolb, Ski Mariea, Don McNutt, Danny Opie, Tom Pfeiffer, Melvin Schebaum, and Bruce Work. Dan Schuette voted against. Motion carried.
Department of Revenue – Tom Pfeiffer moved that the Board approve the request from the Department of Revenue totaling approximately $39,500, with the understanding that the Legislature and Governor may add a cost-of-living adjustment to the Personal Services figure. John Albert seconded. Motion carried.
Attorney General’s Office – Tom Kolb moved that the Board approve the request from the Attorney General’s Office totaling approximately $36,312, with the understanding that the Governor or Legislature may add a cost-of-living adjustment to the Personal Services figure. Dan Schuette seconded. Motion carried.
Office of Administration – Tom Pfeiffer moved that the Board approve the request from the Office of Administration for an estimated $135,822 to help pay for central state services. Ski Mariea seconded. Motion carried.
Department of Natural Resources – Dan Schuette moved that the Board approve the request from the Department of Natural Resources totaling $1,531,026, with the understanding that the Governor or Legislature may add a cost-of-living adjustment for the portion of the money used for salaries. Rich AuBuchon seconded. Discussion ensued, with some Trustees noting that the amount requested by the Department is a 28% increase over its FY08 funding levels. Dan Schuette explained that in FY08, none of the PSTIF funds were used to pay the Department’s overhead costs, (“cost allocation fund”), and that he was asking for additional funds for that purpose.
Ms. Eighmey reminded the Trustees that in recent years the Board had not specified how the Department was to spend its PSTIF appropriation, instead allowing the Department to decide what activities to fund and how much to use for salaries, expense and equipment, and overhead. She distributed a chart received from the Department the previous day; copy attached hereto.**
There were questions about the chart and the FY08 work plan; it was noted that the annual work plan provided by the Department to the Board typically lists all funding sources for tanks work and shows what portion is being funded by the PSTIF. Ms. Eighmey noted the handout does not accurately reflect the amount of money in the PSTIF’s records as the amount approved for FY08, and apologized that she had not had opportunity to discuss the handout with Mr. Schuette prior to the meeting.
There was further discussion about the Department’s request. It was noted that the DNR received an increase in General Revenue funding for FY08, freeing up about $300,000 in PSTIF funds that it had previously used for its EER program. It was also noted that the Department had recently announced receipt of increased federal funding for tanks work. Some Trustees said they were unclear why additional PSTIF funding was requested for FY09. Mr. Schuette suggested that additional information could be made available if the Board wished to refer the matter to a subcommittee for further study.
After discussion, Chairman McNutt called for a voice vote. The motion failed.
Melvin Schebaum then moved that the Board approve an appropriation for FY09 equal to the FY08 amount, with the understanding that the Governor or Legislature may add a cost-of-living adjustment to the Personal Services figure. Tom Kolb seconded. Rich AuBuchon suggested the Board increase the anticipated COLA to 4%; others clarified that the motion would allow for whatever percentage increase is enacted by the Legislature and signed by the Governor. Mr. Schuette again suggested the Board refer the matter to a subcommittee for further study. After discussion, Chairman McNutt called for a voice vote. The motion passed with Mr. Schuette voting against.
Administrative Issues
FY08 Inspections – Update – Chairman McNutt asked Trustees if there were any questions on the information provided. There were none.
RBCA and Cleanups – Update – Chairman McNutt commented that a report is expected at the next Board meeting.
EPAct Update – Chairman McNutt invited questions on the material provided in the Trustees’ notebooks. There were none.
Board Meeting Dates for 2008 – Chairman McNutt asked whether any trustees had comments or concerns about the proposed meeting dates for 2008; no one objected to the suggested dates.
Billings – Chairman McNutt noted the list of bills in the Trustees’ notebooks and invited review of any of the invoices, as desired.
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. John Albert seconded. Motion carried.
**For a copy of the information/presentation mentioned in these minutes, please contact the PSTIF Office. Please note, if the information/presentation is in electronic format, it will be sent to you as an email attachment per your request. However, as some information may be in hard copy only, please provide your mailing address at the time of your email request.
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