March 12, 2015 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT NAPERVILLE
NAPERVILLE, ILLINOIS

March 12, 2015

John Polak, chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:03 a.m. A quorum was present. Roll call was taken with the following members present:

John Bredenkamp
Sung Kang (Arrived at 10:07 a.m.)
Young B. Kim
Paul Kwak
Jerry Lewicki
John Polak (via telephonic conference)

Also present were:

H. Patrick Eriksen, Program Administrator’s Office
John J. McCarthy, Program Counsel
Dr. Juho So, Program Administrator’s office
Yong Kim, Program Administrator’s office

PRELIMINARY BUSINESS

The minutes from the December 3, 2014 Council meeting were reviewed. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the minutes by a vote of 5–0.

The minutes from the January 22, 2015 Council meeting were reviewed. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the minutes by a vote of 5–0.
  TRANSFER OF REMEDIAL PROGRAM BENEFITS
 

The Council reviewed the request of Mr. In Han Hong, owner/operator of Nissi Cleaners, 4727 N. Harlem Ave, Niles, IL to transfer the remedial program benefits from Mr. Hee Jin Yoon to Mr. Hong without written approval by Mr. Yoon.  Mr. Yoon filed a remedial claim with the Fund on September 25, 2003 and represented he was the current owner/operator of the drycleaning facility.

Mr. Hong provided written documentation to substantiate he purchased the drycleaning facility in 2002. He stated Mr. Hong was his plant manager. The whereabouts of Mr. Hong are unknown.

After Council discussion, on a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved by a vote of 5-0 the transfer of remedial program benefits to Mr. Hong without written approval by Mr. Yoon.

Mr. Kang joined the meeting at 10:07 a.m.
  OPERATIONAL ISSUES
 

A.

Review of Semi-annual Financial Projections

 

Mr. Eriksen reviewed the current financial projections for the period of July 1, 2004 through the Fund’s sunset date of January 1, 2020 noting 3 minor adjustments that reduced the projected deficit by $71,500.  The projected deficit as of January 1, 2020 is $20.8 million.

  B. Legislative Update      
 

Mr. Eriksen reported Rep. Zalewski introduced HB0209 on January 15, 2015 on behalf of the Council.  The bill contains all of the legislative changes the Council approved at their August 28, 2014 strategic planning meeting.  The key provision of the bill is extending the program sunset date to June 30, 2030. The bill has not been assigned to a committee for debate at this time.

Rep Mike Tryon introduced HB3146 which extends the Drycleaner Environmental Response Trust Fund Task Force two (2) years to January 1, 2018. In addition, he also introduced two (2) “shell” bills, HB4064 and HB4067, which can be used during the legislative session to modify the Trust Fund Act.

Mr. Eriksen also referenced SB1804 (introduced by Senator Nybo) and HB3481 (introduced by Rep. Stewart). These are identical bills which would allow the Department of Revenue to adjust overpayments/underpayments of solvent taxes to the tax credit distributors receive for filing the required solvent tax return.

He will keep the Council updated on the status of these bills and any other legislation which is introduced during the legislative session that impacts the Fund or the drycleaning industry.

  C. Review of Fiscal Year 2014 Audit Report      

Mr. Eriksen noted the FY2014 audit report contained only one finding, which is a repeat from the past seven audits and references the timeliness of Council member appointments. These appointments are outside of the Council’s control but Mr. Eriksen commented he would be in contact with the governor’s office to discuss the expired appointments.

  APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted that there were ten bills before the Council for their review and approval. They were as follows:

 

1. Williams & Company Consulting, Inc                               $10,899.00
Standard flat fee billing for December 1 – 7, 2014, licensing, underwriting, claims processing and site inspections.

 

2. Williams & Company Consulting, Inc                               $49,392.00
Standard flat fee billing for December 8 –317, 2014, licensing, underwriting, claims processing and site inspections.

  3. John J McCarthy                                                                      $3,840.00
Professional Legal services for the period of November 19, 2014 through January 6, 2015.
  4. Hinshaw & Culbertson                                                          $1,295.63
Professional Legal Services for the month of November 2014 regarding HH Coleman administrative judge hearing.
  5. Sandra K Haines, CSR                                                          $130.00
Professional Legal Services for the month of October 2014 regarding HH Coleman administrative judge hearing.
  6. Williams & Company Consulting, Inc                             $90,910.00
Standard flat fee billing for January 2015, licensing, underwriting, claims processing and site inspections.
  7. Hinshaw & Culbertson                                                          $488.18
Professional Legal Services for the month of December 2014 regarding HH Coleman administrative judge hearing.
  8. Williams & Company Consulting, Inc                              $72,586.00
Standard flat fee billing for February 2015, licensing, underwriting, claims processing and site inspections.
  9. John J McCarthy                                                                      $5,030.00
Professional Legal services for the period of January 7, 2015 through February 28, 2015.
  10. Hinshaw & Culbertson                                                          $586.49
Professional Legal Services for the month of January 2015 regarding HH Coleman administrative judge hearing.
 

Mr. Eriksen commented bills one through five had been approved by the Council via email on January 24, 2015.  On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved the bills as presented by a vote of 6–0.

Mr. Lewicki inquired if all the administrative law judge appeals had been completed. Mr. McCarthy replied there is one pending involving Diversey Cleaners.  He noted the Council prevailed on all the HH Coleman appeals.  

  REVIEW OF MONTHLY ACTIVITY REPORT AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for February 28, 2015 noting 707 licenses were in effect at the end of the month. That compared to 706 licensed as of February 28, 2014. 493 active dry-cleaning facilities had pollution liability insurance coverage with the Fund and open claims totaled 193, with estimated reserves of $21.5 million.  The January 31, 2014 monthly activity report was also included in the council packet.

The February 28, 2015 financial statements reflect a fund balance of $1,702,941. Year-to-date claim payments total $1,553,441.
  CLAIM PAYMENTS IN EXCESS OF $75,000
 

Mr. Eriksen noted there were four claim payment requests for Council review and approval.

 

A.

Yorktown Cleaners, Woodridge, IL; Claim #50519, Site #0001664

   

Dr. So noted the Administrator is requesting budget approval of $12,500 for site investigation costs.  Recent site investigation activities indicated significant natural attenuation of the contamination. The additional investigation activities are to complete contamination delineation and revise the FSIR/ROR.

After discussion by the Council, on a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved the $12,500 in site investigation costs by a vote of 6-0.
 

B.

Jean-Mar Cleaners, Park Ridge, IL; Claim #50599, Site #0002535

   

Dr. So noted the Administrator is requesting budget approval of $35,750 to install a Building Control Technology (BCT) in the form of a sub-slab depressurization system. This installation will address the indoor air inhalation exposure route at the drycleaning facility and two adjacent businesses.

After discussion by the Council, on a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the $35,750 in remediation costs by a vote of 6-0.
  C. One Hour Cleaners, Mundelein, IL; Claim #50568, Site #0001424      
   

Dr. So reviewed background information noting this site requires an additional injection of chemical oxidant to address the remaining soil contamination that exceeds the cleanup requirement. The proposed cost is $27,500. He noted the cleanup should be completed without exceeding the remedial benefit cap of $300,000.

After discussion by the Council, on a motion by Mr. Lewicki and a second by Mr. Young Kim, the Council approved the budget request of $27,500 by a vote of 6-0.

  D. Speedy One Hour Cleaners, East St. Louis, IL; Claim #50820, Site #0002161      
   

Dr. So reviewed background information noting cleanup has been completed at this site but injection and monitoring wells need to be closed and a Building Control Technology installed to address the indoor air inhalation exposure route. The requested budget approval $29,439.08, which is the maximum remaining remedial benefit available for this site.

After discussion by the Council, on a motion by Mr. Young Kim and a second by Mr. Lewecki, the Council approved the budget request of $29,439.08 by a vote of 6-0.

  E. State Cleaners, Belleville, IL; Claim #50821, Site #0001885
   

Dr. So reviewed background information noting cleanup has been completed at this site but injection and monitoring wells need to be closed and a Building Control Technology installed to address the indoor air inhalation exposure route. The requested budget approval $31,996.26, which is the maximum remaining remedial benefit available for this site.

After discussion by the Council, on a motion by Mr. Young Kim and a second by Mr. Lewecki, the Council approved the budget request of $31,996.26 by a vote of 6-0.

  OTHER ISSUES AS PRESENTED
 

The next Council meeting is scheduled for Thursday, April 23, 2015.

Mr. Eriksen reported the House Appropriation hearing on the Council’s FY16 budget was held March 4th and the Senate Appropriation hearing is scheduled for March 13th.
  PUBLIC COMMENT PERIOD
 

Mr. Polak asked if there were any comments from the public. Ms Sue Kratz asked several general questions regarding the proposed legislation.

  CLOSED SESSION
 

Mr. Eriksen noted there were various issues for discussion in Closed Session.  On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council went into Closed Session at 10:53 a.m. to discuss matters of potential litigation.  The Council adjourned from Closed Session at 11:12 a.m.

On a motion by Mr. Lewicki and a second  by Mr/ Young Kim, the Council voted to settle outstanding license and late fees with Denny Han of Heights Drycleaners for a total of $1,000.  The motion passed by a vote of 6-0.

On a motion by Mr. Lewicki and a second by Mr. Young Kim, the Council voted to settle outstanding license late fees with Green Cleaners, for a total of $206.  The motion passed by a vote of 6-0.

On a motion by Mr. Lewicki and a second by Mr. Young Kim, the Council voted to settle outstanding license late fees with Olympic Cleaners, for a total of $756.  The motion passed by a vote of 6-0.

On a motion by Mr. Young Kim and a second by Mr. Lewicki, the Council voted to deny reducing the 2014 license late fees in the amount of $1,410 for Custom Cleaners of Cabondale.  The motion passed by a vote of 6-0.

On a motion by Mr. Young Kim and a second by Mr. Kang, the Council voted to settle outstanding license and late fees with George Apostolopopulos of Four Star Cleaners for a total of $10,000.  The motion passed by a vote of 6-0.

There being no further business, on a motion by Mr. Lewicki and a second by Mr. Kwak, the Council meeting adjourned at 11:16 a.m.

Respectfully submitted,

H Patrick Eriksen

Program Administrator
  Back to Top