April 5, 2012 Meeting Minutes

  MINUTES
 

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

WYNDHAM HOTEL LISLE/CHICAGO
LISLE, ILLINOIS

APRIL 5, 2012

John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:08 a.m. A quorum was present. Roll call was taken with the following members present:

John Bredenkamp
Young B. Kim
Charles Kwon
Jerry Lewicki
John Polak

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

Juho So, Program Administrator's Office

Dorcee Lauen, Program Administrator’s Office
Yong Kim, Program Administrator’s Office
Randy Jackson, Program Administrator’s Office

PRELIMINARY BUSINESS

The minutes from the March 7, 2012 Council meeting were reviewed. On a motion by Mr. Bredenkamp and a second by Mr. Kwon, the minutes were approved by a vote of  5-0.

  OPERATIONAL ISSUES
  A.

Legislation Update:

   

Mr. Eriksen reviewed with the Council the following bills:

HB4526: EPA-Perchloroethylene Ban – This is Illinois EPA’s revised perc ban bill and is similar to last year’s SB1617, except that the date for phasing out the use of perc  at a drycleaning facility was removed. The bill was passed by the House of Representatives on March 26, 2012 by a vote of 99-10. Various interest groups have concerns about the bill and it may be amended before moving forward in the Senate.

HB4150: EPA-Perchloroethylene Ban - This bill is identical to last year’s SB1617. Illinois EPA did not request the bill nor are they supporting it. It was not heard by the Environmental Health Committee and is considered “dead” for this legislative session.           

HB4488: This bill, introduced by Rep. Michael Tyron, would amend the Drycleaner Environmental Response Trust Fund Act by adding a new paragraph under the insurance account of the Act and would allow an owner or operator who has their insurance coverage cease for reasons other than submittal of a claim on that account or the existence of an emergency or emergency action to reenroll in the insurance program, provided the owner/operator pays the annual premium calculated using the same risk basis as on the date the owner/operator was last covered under the account. The bill was passed out of the Environment and Energy Committee on February 29, 2012.  As currently written, this bill has no impact on the Fund. It did not pass the House by the March 30th funnel deadline and is considered “dead” for this legislative session.

Mr. Eriksen noted three (3) “shell” bills sponsored by Rep. Tryon are also “dead” for the legislative session.

  B. Transfer of Remedial Benefits Where Current Remedial Claimant Cannot be Located:
   

The Council’s current policies and procedures regarding transfer of remedial claim benefits states the remedial claim benefits can be transferred from the original claimant to a new responsible party, provided both parties execute a Council approved form noting the new responsible party agrees to comply with all of the eligibility requirements for obtaining and maintaining remedial benefits from the Fund. Failure to follow such requirements results in revocation of the remedial benefits.

In February 2012, Mr. Sang Kun Son of Dun Rite Cleaners contacted the Fund requesting to have assignment and assumption of remedial benefits for this drycleaning facility, located in Mt. Prospect, IL, transferred from the previous drycleaner owner/claimant, Mr. Yong Jae Kim. Mr. Son has indicated that Mr. Kim cannot be located. He has checked with the environmental consultant and the real estate owner and has not been able to come up with an address and/or telephone number to contact Mr. Kim.

This is the first time the Fund has had an instance where a new owner/operator at the facility wishes to assume the remedial program benefits from the previous owner/operator and has not been able to locate the claimant to obtain the necessary signature to transfer the remedial program benefits. 

It is estimated that the remaining cleanup to be conducted at the facility will cost approximately $140,000. Active remediation at the facility will be required as the level of soil contamination exceeds the Csat limits and it will also be necessary to reduce the migration of the contamination through groundwater.

The issue for Council consideration is does the Council wish to transfer the remedial benefits from Mr. Yong Jae Kim to Mr. Sang Kun Son without Mr. Kim’s written authorization? The Council discussed the issue at length. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the transfer of remedial benefits without Mr.  Kim’s signature by a vote of 5-0. They directed the Administrator to bring similar cases to them for their review and decision making on a case-by-case basis.
  APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted there were two (2) invoices before the Council for their review and action. The invoice of John J. McCarthy was included in the Council packet and the second invoice, Williams & Company’s March 2012 invoice, was a carry in for today’s meeting.

  1. John J. McCarthy   $1,488.75
    Professional legal services to the Council for the period of February 26, 2012 through March 24, 2012.
  2. Williams & Company Consulting, Inc $77,008.00
    Standard flat fee billing for March 2012, licensing, underwriting, claims processing and site inspections.

On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved the bills as presented by a vote of 5-0.

  REVIEW OF ACTIVITY REPORT AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed with the Council the February 29, 2012 monthly activity report, noting that 792 licenses were in force at the end of February 2012. As of April 1, 2012, there were 899 licenses issued with 49 pending additional information, totaling 948. The total licenses issued/in process is comparable to April 1, 2011 data, when there was a total of 966 that were either licensed or pending additional information, for a net difference of 22. The Administrator has received notification from 53 drycleaners that were licensed in 2011, that they will not be renewing their license in 2012 inasmuch as they are no longer doing drycleaning at the facility. That compares to 47 drycleaners that were licensed for 2010 that documented they would not need to renew their license for 2011.

Five hundred twenty-eight (528) drycleaning facilities were insured with the Fund as of February 29, 2012; claims total 259, and estimated reserves to complete the cleanup at these facilities is $28.7 million.

The Fund balance as of February 29, 2012 is $2,831,501; year-to-date remedial claim payments total $1,593,400.
CLAIM PAYMENTS IN EXCESS OF $75,000

Mr. Eriksen noted there were four (4) claim payment requests included in the Council packet in excess of $75,000 requiring Council review and action. Mr. Eriksen noted Dr. So had two (2) additional claim payment memorandums which he distributed to Council members prior to the meeting.

  A.

Family Pride Cleaners, Cary, IL; Claim #50168; Site #0001191:

   

Mr. Jackson reviewed background information with the Council noting full-scale remediation is needed at this facility. The initial release of funding on this claim was used to address the soil contamination at the facility. Such soil remediation has been successfully completed. The remaining focus is on remediating the groundwater at the site and the adjoining property to the south of the site. The Administrator is aware the remaining funding available for the site will not fully remediate all impacted groundwater. The claimant was contacted in February 2012 and was asked what amount of monies they would be able to contribute to any remedial effort after Trust Fund monies have been exhausted. They responded they were unable to contribute any additional monies to address the remaining remedial activities for this site.

The Administrator is requesting the proposed groundwater remedial effort for this facility be approved as the proposed remediation should reduce contaminants of concern to below the remedial objectives on the site and adjacent property to the south and that in doing so, a limited NFR can be provided for those properties.

Mr. Jackson stated the Administrator was requesting $62,500 in approval for groundwater remediation.

On a motion by Mr. Lewicki and a second by Mr. Kim, the Council approved the budget request by a vote of 5-0.

  B.

Burling Professional Cleaners, Bradley, IL; Claim #50102;
Site #0002085:

   

Mr. Jackson reviewed background information with the Council noting that review by IEPA of the required Tier 3 modeling may take up to six (6) months to complete. In order to keep the remedial activities moving at the site, the consultant has requested that costs to prepare the RAP be approved without IEPA approval of the FSI/ROR.  The Administrator agrees with this approach and is requesting $6,000 in remedial action plan preparation costs.

On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council, by a vote of 5-0, approved $6,000 for preparation of a remedial action plan.

  C.

M & K Cleaners, Chicago, IL; Claim #50013, Site #0001356:

   

Dr. So reviewed background information with the Council stating this is a facility where very little site investigation work has been done due to the low priority ranking score and the fact that it did not appear enough money would be available to complete the cleanup due to the maximum remedial benefit cap of $160,000 when the claim was filed in 2000. As a result, only $16,277 has been spent for site investigation activities.

The Administrator is requesting the contamination be further delineated, as this site would appear to be a good candidate for a pilot test for the Pure Enviro Management bioremediation. The Administrator is not asking for money to conduct the pilot test but is looking for up to $70,770 in site investigation costs to further delineate the contamination to determine whether it would be a good site for the pilot project.

On a motion by Mr. Bredenkamp and a second by Mr. Kwon, the Council approved the budget request of $70,770 by a vote of 5-0.
  D. I-All Cleaners, Carol Stream, IL; Claim #50827, Site #0001999
   

Dr. So reviewed background information with the Council noting this facility has not been released for funding as it has a low priority ranking score of 60. However, IEPA is requesting completion of a Right To Know (RTK) notification process as required by state statute. The Administrator is asking for approval of immediate funding of $10,000 to complete the Right To Know (RTK) notification process as required by IEPA. This money would be taken from the previously approved $600,000 of RBCA closure funding for fiscal year 2012.

After discussion by the Council, on a motion by Mr. Kim and a second by Mr. Lewicki, the Council voted 5-0 to approve the $10,000 budget request to complete the Right To Know (RTK) notification requirements.

In addition, after discussion by the Council, on a motion by Mr. Bredenkamp and a second by Mr. Kwon, the Council voted 5-0 to authorize the remaining $367,720 of fiscal year 2012 RBCA closure funding to be also used for Right To Know (RTK) notification projects.
  E.

Christies Cleaners, Oak Lawn, IL; Claim #50135, Site #0001097:

   

Dr. So reviewed background information with the Council noting that active remediation is required at the facility due to the high level of contamination both in soil and groundwater. The Administrator is asking for $40,000 in site investigation costs to further delineate the contamination at the facility.

On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the budget request of $40,000 was approved by a vote of 5-0.
  F.

Christies Cleaners, Oak Lawn, IL; Claim #50135, Site #0001097:

   

Dr. So reviewed background information with the Council stating that $35,000 is being requested to close the monitoring wells at the facility and restore the interior and exterior surfaces that were impacted by the remediation.

The environmental consultant informed Dr. So it will take another 2-3 months for the Illinois EPA to respond to the recent No Further Remediation (NFR) letter request and the claimant wishes to restore the exterior parking surface as soon as possible.

After discussion by the Council, on a motion by Mr. Kim and a second by Mr. Lewicki, by a vote of 5-0, the Council approved the $35,000 to close the monitoring wells, restore the existing surfaces and cover contingency costs, including Right To Know (RTK) notification.

  OTHER ISSUES AS PRESENTED
 

Mr. Eriksen stated the next Council meeting is tentatively scheduled for Wednesday, May 16, 2012. There are no items for Closed Session.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked if there were any comments from the public. There were none.

  AUDIT OF COMPLIANCE PROGRAMS
 

Mr. Polak stated the balance of the meeting would be spent conducting the audit of the five (5) Council approved compliance programs.

On a motion by Mr. Polak and a second by Mr. Lewicki, the Council meeting adjourned at 12:55 p.m.

   
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