July 23, 2014 Meeting Minutes

  MINUTES
 

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT NAPERVILLE
NAPERVILLE, ILLINOIS

July 23, 2014

John Polak, chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:05 a.m. A quorum was present. Roll call was taken with the following members present:

John Bredenkamp (via telephonic conference)
Sung Do Kang
Daniel Kim
Young B. Kim
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
PRELIMINARY BUSINESS

The minutes from the June 18, 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 6–0.

  APPROVAL OF PROGRAM BILLINGS
 

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

 

1. Williams & Company Consulting, Inc         $77,883.00
Standard flat fee billing for June 2014, licensing, underwriting, claims processing and site inspections.

 

2. John J. McCarthy                                       $1,280.00
Professional legal services to the Council for the period of June 5, 2014 through June 30, 2014.

 

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the Council approved the bills as presented by a vote of 6–0.

  REVIEW OF MONTHLY ACTIVITY REPORT AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for June 30, 2014 noting 914 licenses were in effect at the end of the month. 513 active dry-cleaning facilities had pollution liability insurance coverage with the fund and open claims totaled 197, with estimated reserves of $23.5 million. The format of the report has been streamlined to remove data on partially released claims that have been fully funded.

The June 30, 2014 financial statements reflect a fund balance of $1,745,815. Year-to-date claim payments total $2,674,788. These statements have not been finalized for year-end adjustments. Finalized statements will be included in the August 2014 Strategic Planning packet.

  CLAIM PAYMENTS IN EXCESS OF $75,000
 

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

 

A.

P & J Cleaners, Oak Park, IL; Claim #50377, Site #0001436.

   

Dr. So noted the Administrator is requesting budget approval of $15,275 to conduct site investigation activities at an adjacent property that had previously refused to allow access and testing of their property. IEPA had requested testing of the offsite property.

After discussion by the Council, on a motion by Mr. Lewicki and a second by Mr. Young Kim, the Council approved the $15,275 in additional site investigation funding by a vote of 6-0.

 

B.

Ravinia Vogue Cleaners, Highland Park, IL; Claim #50312, Site #0002257.

   

Dr. So reviewed background information noting this site requires installation of a vapor intrusion barrier and concrete floor. This claim was previously reviewed by the Council at the March 2014 meeting. The detail cost componts were reviewed with the Council. Mr. Eriksen asked David Kay, the environmental consultant for the project if the claimant was going to seek offsite access to the adjacent property and did IEPA require offsite testing in order to receive an NFR for this site? Mr. Kay responded, “no”, offsite testing is not necessary and they do not plan to seek offsite access. Mr. Eriksen stated cleanup of any offsite contamination would most likely result in the remedial benefit cap being exceeded. Mr. Young Kim stated concern the equipment removal and relocation cost is still to high. After discussion by the Council, Mr. Kay agreed to seek another bid and not sign a contract for the equipment portion of the project until the Council had reviewed the additional bid being sought. The budget request is $240,000 including a contingency of approximately $40,000.

After discussion by the Council, on a motion by Mr. Young Kim and a second by Mr. Lewicki, the Council approved the budget request of $240,000 by a vote of 6-0, subject to Mr. Kay getting an additional bid for the removal/reinstallation of the drycleaning equipment and submitting it to the Council for their review and approval.

  C.

Norman’s Cleaners, Orland Park, IL; Claim #50788, Site #0001884.

   

Dr. So noted this claim has not been released for funding. The property was obtained by the Village of Orland Park and the drycleaning facility has been razed. Active remediation is required at the facility and the proposed remedial method is a combination of over-excavation and offsite disposal of contaminated soil and in-situ chemical oxidation. The projected cost is $236,953 of which only $216,102 is eligible for Fund reimbursement due to the remedial cap. Mr. Eriksen stated although the $300,000 cap will be exceeded, funds have not been released and remediation (including payment of all remedial costs) of the site will be complete by the time funds are available for this site from the Council. Thus proof of how to pay costs in excess of the remedial cap is not required.

After discussion by the Council, on a motion by Mr. Lewicki and a second by Mr. Daniel Kim, the Council approved the budget request of $236,953 by a vote of 6-0.  
  D. Lion II Cleaners, Chicago, IL; Claim #50841, Site #0001914.
   

Dr. So noted active remediation is needed at the facility due to the high level of soil contamination. The proposed remedial method is chemical oxidation through gravitiy feeding using chemical oxidant retention ponds (CORPs). This technology has been successful in cleaning drycleaning sites with similar levels of contamination. The budget request is $177,500 including $20,000 of contingency costs. Mr. Young Kim inquired what the contingency costs were for? Dr. So replied it was primarily for soil disposal costs and until the CORPs are constructed the volume of soil to be removed and disposed of is only an estimate.

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 $177,500 by a vote of 6-0.

  OTHER ISSUES AS PRESENTED
 

Mr. Eriksen stated the annual strategic plannning meeting is scheduled for Thursday, August 28th and will begin at 9:30 am.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked if there were any comments from the public. Mr. Chang Lee of the Korean American Drycleaner Association of Illinois (KADA) addressed the Council stating KADA has visited approximately 600 drycleaners who are happy with the Council’s decision of August 21, 2013 to eliminate the annual CEU requirement to maintain Fund issued pollution liability insurance coverage. He stated drycleaners are happy they no longer have this burdern. In addition he mentioned Cook County has been conducting tougher site inspections which offsets the reduced number of annual compliance program inspections.

  CLOSED SESSION
 

Mr. Eriksen noted that there are no issues for closed session.

There being no further business, on a motion by Mr. Lewicki and second by Mr. Kang, the Council voted 6-0 to adjourn the meeting at 10:55 a.m.

Respectfully submitted,

 

H Patrick Eriksen

Program Administrator
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