JUNE 25, 2015 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT NAPERVILLE
NAPERVILLE, ILLINOIS

JUNE 25, 2015

John Polak, chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:07 a.m. A quorum was present. Roll call was taken with the following members present:

John Bredenkamp
Sung Kang
Daniel Kim
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 April 23, 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 7–0.

  OPERATIONAL ISSUES
 

A.

Legislative Update

 

Mr. Eriksen reported neither HB0209 (the Council’s bill to extend the Fund’s sunset date) nor HB3146 (which extends the Drycleaner Environmental Response Trust Fund Task Force two (2) years) were assigned to a committee for initial hearing during the legislative session that adjourned on May 31, 2015.  

Rep. Tryon’s two (2) “shell” bills, HB4064 and HB4067, which can be used during the legislative session to modify the Trust Fund Act, still reside in the Rules Committee.

Mr. Eriksen reported at this time he does not believe any legislation affecting the Drycleaner Trust Fund Act will be acted on before January 2016.
  B. Site Inspection Issues      
 

Mr. Eriksen referenced his Council memo on site inspection issues noting it was categorized into four sections; Report on Site Inspection Meeting with Illinois EPA; Report on 2014 Compliance Program Inspections; Communication of Site Inspection Issues to Insured Drycleaners; and NDI’s request to transfer their compliance program to a new entity and their incomplete 2014 site inspections.

Report on Site Inspection Meeting with IEPA – Mr. Eriksen reviewed in detail the background information, IEPA inspection issues and the Administrator’s Suggestions that were outlined in the Council memo. He summarized he has agreed to assist in providing classroom training to IEPA and Cook County inspectors. In addition, he will continue dialog with IEPA and Cook County with the goal of sharing data and possibly reducing the number and frequency of inspections by multiple agencies.

Report on 2014 Compliance Program Site Inspections – Mr. Eriksen reported staff has reviewed 71 of the calendar year 2014 site inspections submitted by the five Council approved compliance programs.  He noted as of June 16th, NDI had submitted only 13 of their required 87 inspections. Overall the site inspection quality has improved over the past year and he reviewed 11 inspection issues that apply to most of the compliance programs and these issues will be communicated to them in the near future.

Communication of Site Inspection Issues to Insured Drycleaners - Mr. Eriksen reviewed 4 issues involving site inspections by various governmental agencies that need to be communicated to the drycleaning industry. Issues included maintaining required paperwork on-site, completion of the Perc Operator Training course, performing monthly leak detection using a halogenated hydrocarbon detector or a PCE gas analyzer, and for Fund insured drycleaners, having a compliance program site inspection once every four years. He noted the compliance program will determine the year of the inspection. The Council conducted a general discussion on what action the Council should take if the drycleaner refuses the compliance program inspection for the year it is scheduled.

A motion was made by Mr. Lewicki and seconded by Mr. Bredenkamp to direct the compliance programs to cancel any drycleaner’s compliance program membership and inform the Council of the termination if the drycleaner refuses to have a compliance program site inspection in the year scheduled. The Council would then issue a 60 day cancellation notice for failure to comply with the Council’s underwriting requirements. The motion passed by a vote of 7–0.

NDI 2014 Site Inspections and Request to Transfer Compliance Program – Mr. Eriksen reviewed with the Council that NDI did not complete and submit 2014 site inspections within the required timeframe. He noted he denied NDI’s request to transfer their compliance program to a new entity due to no information being provided on the new entity and NDI’s failure to timely complete 2014 site inspections.

On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council voted 7-0 to place discussion of NDI’s compliance program on the next Council meeting agenda.
     
  C. Revision to Insurance Application      
 

Mr. Eriksen reviewed changes to the insurance application and related documents to reflect the Council’s requirement that all drycleaner operators at facilities insured by the Council complete the Environmental Best Management Practices for Perc Drycleaners (Perc Operator Training).

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the Council approved the insurance application and related document revisions by a vote of 7-0.
     
  D. Strategic Planning Session Topics      
 

Mr. Eriksen noted the Council has tentatively scheduled Thursday, August 27, 2014, as the date of their annual strategic planning meeting. The annual strategic planning session provides the Council an opportunity to review the previous year’s activities as well as plan for the current fiscal year activities. Tentative planning topics as outlined in the Council packet memo were reviewed. Mr. Eriksen asked the Council members if they had any modifications to the proposed agenda topics. It was a consensus of the Council members that the proposed agenda topics were okay as listed in the Council memo.

  APPROVAL OF PROGRAM BILLINGS
 

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

 

1. Williams & Company Consulting, Inc                               $64,933.00
Standard flat fee billing for April 2015, licensing, underwriting, claims processing and site inspections.

  2. Williams & Company Consulting, Inc                               $51,776.00
Standard flat fee billing for May 2015, licensing, underwriting, claims processing and site inspections.
  3. John J McCarthy                                                                      $4,175.00
Professional Legal services for the period of April 12, 2015 through June 13, 2015.
  4. Hinshaw & Culbertson                                                          $1,905.25
Professional Legal Services for the month of April 2015 regarding Diversey Cleaner administrative law judge hearing.
  5. Hinshaw & Culbertson                                                          $3,091.97
Professional Legal Services for the month of May 2015 regarding Diversey Cleaner administrative law judge hearing.
 

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the Council approved the bills as presented by a vote of 7–0.

  REVIEW OF MONTHLY ACTIVITY REPORT AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for May 31, 2015 noting 859 licenses were in effect at the end of the month which exceeded the fiscal year projection of 850. That compared to 894 licensed as of May 31, 2014. 490 active dry-cleaning facilities had pollution liability insurance coverage with the Fund compared to 518 as of May 31, 2014. Open claims totaled 187, with estimated reserves of $20.7 million compared to 203 open claims with estimated reserves of $23.8 million as of May 31, 2014.

The May 31, 2015 financial statements reflect a fund balance of $1,029,721. Year-to-date claim payments total $2,275,698.
  CLAIM PAYMENTS IN EXCESS OF $75,000
 

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

 

A.

Yorktown Cleaners, Woodbridge, IL; Claim #50519, Site #000164

   

Dr. So noted the Administrator is requesting budget approval of $11,250 for a pilot test at the site. Active remediation is required. The pilot study is to determine a realistic oxidant dosing level for the cleanup. The consultant is proposing the injection of potassium permanganate at a minimum of 4 injection points to determine if it is economically feasable to use permanganate at this site or if an alternative remedial action is more appropriate.  

After discussion by the Council, on a motion by Lewicki a second by Mr. Young Kim, the Council approved the $11,250 in pilot project costs by a vote of 7-0.
  OTHER ISSUES AS PRESENTED
 

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

Mr. McCarthy reported on the recent Administrative Law Judge (ALJ) decision for Diversey Cleaners. The ALJ has referred the appeal back to the Council for further discussion and action. The ALJ’s primary concern was the lack of documented reasons of why the Council denied the drycleaner’s request for Council waiver of the 60 day timeframe to appeal the cancellation of the insurance coverage. Mr. Eriksen stated the new appeal hearing would be scheduled for the July 23, 2015 meeting.

Per Mr. Kang’s request at the April 23, 2015 Council meeting, Mr. Eriksen distributed a listing of 19 released claims that are not currently moving ahead with cleanup.
  PUBLIC COMMENT PERIOD
 

Mr. Polak asked if there were any comments from the public. Mr. Richared Kim (ESM Compliance Program) made general comments regarding inspections conducted by Illinois EPA, Cook County and the City of Chicago. He stressed communication on inspection issues between governmental agencies was important to minimize confursion for the drycleaners.

  CLOSED SESSION
 

Mr. Eriksen noted there no issues for discussion in Closed Session. 

There being no further business, on a motion by Mr. Lewicki and a second by Mr. Young Kim, the Council meeting adjourned at 11:39 a.m.

Respectfully submitted,

H Patrick Eriksen

Program Administrator
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