December 13, 2012 Meeting Minutes

  MINUTES
 

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT/NAPERVILLE
NAPERVILLE, ILLINOIS

DECEMBER 13, 2012

John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 1:01 p.m. A quorum was present. Roll call was taken with the following members present:

John Bredenkamp
Young B. Kim
Paul Kwak
Jerry Lewicki
Dae Kim
John Polak
(via telephonic conference)

Also present were:
H. Patrick Eriksen, Program Administrator's Office
John J. McCarthy, Program Counsel
Yong Kim, Program Administrator’s Office

PRELIMINARY BUSINESS

The minutes from the August 30, 2012 Council meeting were reviewed. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the minutes were approved by a vote of 6-0.

  APPEAL OF CIVIL PENALTIES FOR DELIVERING SOLVENT TO UNLICENSED DRYCLEANERS -
H.H. COLEMAN COMPANY, ST. CHARLES, MO
  A.

Holiday Cleaners, Edwardsville, IL – Site #0002650:

   

The drycleaning facility license for 2011 was issued on May 3, 2011. As part of the license renewal process, the licensee provided a copy of an invoice from H.H. Coleman showing a solvent delivery was made on April 1, 2011. A letter from Mr. Brockling stated Holiday Cleaners is a COD account and solvent was not delivered on April 1, 2011. His letter stated his office staff did not credit out the invoice and rebill everything, but created a short bill of lading for the solvent delivery which Mr. Brockling represented was made on May 13, 2011. Mr. Eriksen noted the short bill of lading was dated May 13, 2012.

Mr. Brockling addressed the Council and distributed additional information to them, including statements from the drycleaner and from H.H. Coleman’s delivery truck driver that the solvent delivery in question was made on May 13, 2011.

After discussion between Council members and Mr. Brockling, on a motion by Mr. Lewicki and a second by Mr. Kim, the Council voted 5-0-1 to deny waiver of the $5,000 civil penalty. Mr. Bredenkamp abstained.

  B.

American Cleaners, Glen Carbon, IL – Site #0002945

   

The 2011 license for this facility was issued on February 2, 2011. As part of the renewal process, the licensee provided a copy of an invoice from H.H. Coleman showing the solvent was delivered on January 31, 2011. A letter from Mr. Brockling stated that a paperwork error was created for this account and the delivery date listed on the original order was January 10, 2011, but the solvent was not delivered on that date. A short bill of lading was created when the solvent was delivered on February 11, 2011. Mr. Eriksen noted the signature on the straight bill of lading listing the delivery date of February 11, 2011 does not match the signature on the pick ticket, which reflects a delivery date of January 10, 2011.

Mr. Brockling addressed the Council and distributed additional information to the Council members which included statements from the drycleaner and from H.H. Coleman’s delivery truck driver that stated the solvent was not delivered prior to the drycleaning facility being licensed by the Fund. Additional discussion between the Council and Mr. Brockling ensued.

On a motion by Mr. Lewicki and a second by Mr. Kim, the Council voted 5-0-1 to deny waiver of the $5,000 civil penalty. Mr. Bredenkamp abstained.

  C.

Dry Clean City, Bloomington, IL – Site #0002619:

   

The 2011 drycleaner license for this facility was issued on May 6, 2011. As part of the renewal process, the licensee provided the Fund an H.H. Coleman invoice that showed the solvent was delivered on January 18, 2011. Mr. Brockling’s letter to the Fund stated this facility was a COD account. Mr. Brockling provided a copy of H.H. Coleman’s daily sales register, noting the entry for this January sale had been voided out. His letter stated only one (1) delivery of solvent was made to this facility in 2011 and that was on July 31, 2011.

Mr. Brockling provided additional documents to the Council members.

After discussion between Mr. Brockling and the Council members, on a motion by Mr. Lewicki and a second by Mr. Kim, the Council voted 5-0-1 to deny waiver of the $5,000 civil penalty. Mr. Bredenkamp abstained.
  D.

Country Squire, Champaign, IL – Site #0001136

   

The drycleaning facility was licensed for 2011 on January 11, 2011. As part of the renewal process, the licensee provided a pick ticket listing the solvent delivery date as January 3, 2011. Mr. Brockling provided to the Council a copy of H.H. Coleman’s invoice, which reflected a delivery date of January 13, 2011 and the delivery driver’s log showing the various cities where he had made deliveries on January 13, 2011, which included Champaign.

After additional discussion between Mr. Brockling and the Council members, on a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council voted 5-0-1, to waive the $5,000 civil penalty. Mr. Bredenkamp abstained.
  E. Byrds Cleaners, Charleston, IL – Site #0001701
   

The calendar year 2011 license was issued on January 19, 2011. As part of the renewal process, the licensee provided the Fund a copy of a pick ticket showing the solvent delivery date of January 17, 2011. Mr. Brockling provided a copy of the H.H. Coleman invoice showing the solvent was delivered on January 24, 2011. In addition, he also provided a copy of the delivery driver’s log showing the various communities where deliveries were made on January 24, 2011, which included Charleston.

After additional discussion between Mr. Brockling and the Council members, on a motion by Mr. Kim and a second by Mr. Lewicki, the Council voted 3-1-2 to deny waiver of the $5,000 civil penalty. Mr. Polak and Mr. Bredenkamp abstained.

Mr. Eriksen informed Mr. Brockling that a letter summarizing the Council's decisions would be sent to him in the near future.

  APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen stated there were three (3) invoices before the Council for their review and approval. They were as follows:

  1. Williams & Company Consulting, Inc $57,787.00
    Standard flat fee billing for November 2012, licensing, underwriting, claims processing and site inspections.  
  2. John J. McCarthy  $2,810.00
    Professional legal services to the Council for the period of October 26, 2012 through November 30, 2012.  
  3. Johnston, Greene, LLC $244.60
    Professional legal services as Administrative Law Judge for October 2012.  

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.

  REVIEW OF ACTIVITY REPORT AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the November 30, 2012 monthly activity report with the Council noting there were 1,012 licensed drycleaners; insurance policies issued by the Fund totaled 533; open remedial claims totaled 234, with estimated claim reserves of $26.8 million to complete cleanup at these drycleaning facilities.

The November 30, 2012 financial statements reflect a Fund balance of $2,414,352; year-to-date claim payments total $850,265.
 

CLAIM PAYMENTS IN EXCESS OF $75,000

  A.

Ravinia 1 Hour Cleaners, Highland Park, IL; Claim #50547, Site #0001832:

   

The Administrator is requesting $40,000 to complete confirmatory site investigation costs, well abandonment surface restoration costs and pay for the remaining IEPA fees. Active remediation was conducted at the facility from May 2011 through November 2012 and was deemed successful based upon the remedial action objectives report.

On a motion by Mr. Kim and a second by Mr. Lewicki, the Council voted 6-0 to approve the $40,000 remedial budget.

  B.

Choi Cleaners, Inc., Rockford, IL; Claim #50654, Site #0001093:

   

The Administrator is requesting $20,700 in additional costs for completing the remediation and groundwater monitoring. Active remediation has been conducted at the facility but offsite contamination in one (1) monitoring well has increased. At this time, it is not certain if the increased offsite groundwater contamination is an isolated anomaly incident, therefore the request for the additional offsite groundwater monitoring.

On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the $20,700 budget request by a vote of 6-0.

  C.

Biltmore Cleaners, Chicago, IL; Claim #50501, Site #0001908:

   

The Administrator is requesting budget approval of $140,000 of remediation costs. Active remediation is required at the facility due to the high level of contamination. Proposed remediation is in-situ chemical oxidation with gravity feeding and soil mixing. In addition, the Administrator is requesting the Council waive the two (2) bid requirement for environmental consulting services and IEPA site investigation report and RAP approval. The request is being made as the extent of contamination of the plume in the hot spot area is well defined and the environmental consultant has considerable experience in investigating the contamination at the facility.

On a motion by Mr. Lewicki and a second by Mr. Kim, the Council approved the $140,000 in remediation costs and waiver of the two (2) bid requirement for environmental consulting costs by a vote of 6-0.

  D.

Concord Custom Cleaners, Rockford, IL; Claim #50214, Site #0001120:

   

The Administrator is requesting budget approval for $18,000 in site investigation costs. Due to site conditions, Tier 3 modeling was done to show the contamination migration distance is acceptable. The funding requested is to conduct a sampling of all monitoring wells to verify current contaminate levels are stable followed by the preparation of a remedial action completion report (RACR) and drafting of a no further remediation (NFR) letter.

On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the $18,000 budget request by a vote of 6-0.
  E.

Princess Cleaners, Chicago, IL; Claim #50404,Site #0001471:

   

The Administrator is requesting immediate funding for $36,000 in remedial action and completion costs for the above referenced drycleaning facility. The budget was approved by the Council at their August 2010 Strategic Planning Session; however, it was not clear if the approved money was also “released” for funding.

On a motion by Mr. Kim and a second by Mr. Lewicki, the Council approved the immediate funding of $36,000 in remedial action costs by a vote of 6-0.

  F.

M & K Cleaners, Chicago, IL; Claim #50013, Site #0001356 - Approval & Release of Funding for Pilot Study:

   

Mr. Eriksen reviewed background information with the Council noting the Fund has been soliciting from the remedial consulting and vendor communities for innovative technologies to address drycleaning solvent contamination issues more efficiently and cost effectively.  As a part of such efforts, the Administrator selected approximately seven (7) facilities as candidates for a pilot study to test a new remediation method developed by Pure Environmental Management (PEM). Based on site investigations activities at two (2) facilities, PEM has chosen M & K Cleaners to conduct the pilot study. Specifically, the conditions of the proposed pilot study are as follows:

1. Remediate the facility to below the Tier I saturation limit (or Csat) for soil and solubility for groundwater of contamination of concern.
2. Remediate the adjacent properties 15 ft. from the property boundary to below the soil inhalation number.
3. Remediate the entire area as defined in the corrective action plan prepared by PEM dated 10/08/2012.
4. Remediate both on-site and off-site contamination within 14 months from the initiation of the pilot study.

In addition, PEM has indicated the technology utilized will have at least a  20 ft. radius of influence from each injection well as outlined in the corrective action plan.

PEM will receive payment for the pilot study only upon meeting the full requirements with respect to both the remediation objectives of chemical of concerns and remedial time frame. No partial payment will be made until the requirements are fully met.

PEM will execute remediation based on the cost proposal, which includes all miscellaneous costs for disposal, utility, permits, etc. The pilot study is proposed to be completed for $198,640, which represents the full amount requested by PEM. In addition, the Administrator is asking for approval of $20,000 of contingency costs. These contingency costs would be used for soil disposal, any additional site investigation, consulting time, etc.

Mr. Eriksen indicated he would be working with Mr. McCarthy to draft a document to be executed by the claimant, M & K Cleaners, PEM and the Fund, which defines the requirements reviewed by Mr. Eriksen.

On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved the pilot study and contingency costs in the amount of $208,640 by a vote of 6-0.

  G.

Offset of License Fee and Late Fees Against Claim Payment Request:

   

The Administrator received a claim reimbursement request seeking reimbursement for $10,450 in remedial action expenses incurred during the period of time in which the drycleaning facility was not licensed but still had insurance coverage. Subsequently, the facility became a drop store and the insurance automatically cancelled in accordance with the insurance policy.

The reimbursement request was returned as the facility was not licensed at the time the reimbursement request was received. These activities took place during the summer of 2007. The consultant recently contacted the Administrator inquiring if there was any way in which they could be reimbursed from the Fund for the remedial action costs they incurred in 2007. A review of the claims policies and procedures notes “the Fund can offset the claim payment by the license fees or insurance premium owed.” The Administrator interprets this to mean the claim payment request can be reduced by the amount of the license fee owed along with late fees. In this case, the license fees would be $1,500. The late fees cannot be calculated since the license fee has not been paid.

Mr. Eriksen noted there are two (2) issues for Council consideration:

1. Does the Council wish to reimburse the consultant for work performed when the drycleaning facility was not licensed and offset the reimbursement request by the amount of the license fee, which is $1,500 and the late fees?
2. If the Council agrees to offset the claim payment request by the license and late fees, what date should be used to calculate the late fees? It is the Administrator’s recommendation that the date the claim reimbursement request was received by the Administrator be used as the date the “license fee was paid.” 

After discussion by the Council, on a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council voted to offset the $1,500 license fee against the reimbursement request and calculate the late fees based upon the date the initial reimbursement request was received. The motion passed by a vote of 6-0.

  OTHER ISSUES AS PRESENTED
 

Mr. Eriksen noted the next meeting is tentatively scheduled for Wednesday, January 23, 2013.

  PUBLIC COMMENT PERIOD
 

Ms. Heidi Kang, representing the National Drycleaner Institute (NDI), stated they had a brief video presentation dealing with the audit of NDI records in April 2012 by the Council. Inasmuch as Council members had time constraints, Mr. Polak requested the issue be placed on the next Council agenda. Mr. Eriksen commented he had issued a letter in the previous week responding to their November letter of questions and concerns.

There being no further business, on a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council voted 6-0 to adjourn the meeting at 3:30 p.m.

   
  Back to Top