JUNE 23, 2016 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT NAPERVILLE
NAPERVILLE, ILLINOIS

JUNE 23, 2016

 

John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:06 a.m. A quorum was present. Roll call was taken with the following members present:

 

John Bredenkamp
Sung Do Kang
Daniel Kim
Young B. Kim
Paul Kwak
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 May 5, 2016 Council meeting were reviewed. On a motion by Mr. Bredenkamp and a second by Mr. Kwak, the minutes were approved by a vote of 6-0.

  OPERATIONAL ISSUES
  A. Legislative Update
 

Mr. Eriksen reported the Council still does not have an approved budget for FY16 or FY17. Based on discussions with the Governor's Office and legislative staff, it is uncertain when the budgets may be approved.

No legislation was passed during the current legislative session that significantly impacts the Fund.

  B. Strategic Planning Session Topics
 

Mr. Eriksen noted the Council has tentatively scheduled Thursday, August 25, 2016, 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 noted the lack of an appropriation for FY16 and FY17 coupled with the January 1, 2020 sunset date makes fund solvency a primary issue of concern.

He 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.

  C. Illinois Department of Revenue Modifications to DS-3 Form and License Fee Payment Processing Procedures
 

Mr. Eriksen reported the Illinois Department of Revenue (IDOR) has informed the Administrator's Office they are making the following changes to the DS-3 Form (licensing payment form) and their license fee payment processing procedures for calendar 2017 license renewals:

1. The DS-3 form is reduced from 3 copies to just the original form. IDOR will process the payment and DS-3 form in the same manner as they have in prior years. IDOR will place a green sticker on the DS-3 form and return it to the drycleaner. The drycleaner will send the green stickered DS-3 form along with their license renewal application, solvent log, solvent invoice(s) and waste manifest form(s) to the Fund for issuance of their drycleaner license.

2. IDOR will no longer "rocker" the dollar amount on the DS-3 form and initial it to confirm the license fee payment unless the amount entered on the form by the drycleaner differs from the actual fee submitted.

3. License fee payments will be sent to a new PO Box number. The new PO Box number will pre-printed on the DS-3 forms sent with the 2017 license renewal applications. Mail sent to the new PO Box number will be directed to the three IDOR employees that process drycleaner license fee payments.

He noted IDOR also agrees the most efficient method of processing the license fee payment is to have the Fund process both the license fee payment and the license renewal application. This requires a legislative change which the Council had previously requested.

APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted there were two (2) bills before the Council for their review and approval. They were:

1. Williams & Company Consulting, Inc.    $43,806.00

Standard flat fee billing for May 2016, licensing, underwriting, claims processing and site inspections.

2. John J. McCarthy                                  $2,560.00

Professional legal services to the Council for the period of April 23, 2016 through June 14, 2016.

Mr. Eriksen noted included in the Council packet was a detail listing of Mr. McCarthy's legal fees and expenses attributable to NDI's de-certification appeal. This information was requested by the Council at their May 5, 2016 meeting and totaled $11,143.16. Mr. Kang stated he believed the last 3 items detailed (totaling $570) pertain only to general issues he raised and do not relate to the NDI appeal. Mr. McCarthy responded ne would need to review his detail notes to confirm Mr. Kang's comment.

After a brief discussion of Mr. McCarthy's legal fees associated with the NDI appeal, the Council requested the Administrator prepare a listing of all fees incurred to date with the NDI appeal for review at the next Council meeting.

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the bills were approved by a vote of 6-0.

It was noted since the Council does not have an approved appropriation budget for FY16, these bills could not be paid at this time.

  REVIEW OF MONTHLY ACTIVITY REPORTS AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for May 31, 2016 noting 814 licenses were in effect at the end of the month compared to 859 as of May 31, 2015. Four hundred sixty one (461) active dry-cleaning facilities had pollution liability insurance coverage with the Fund. Open claims totaled 184, with estimated reserves of $20.3 million.

The May 31, 2016 financial statements reflect a fund balance of $1,521,181. Year-to-date claim reimbursement requests approved for payment total $1,001,866.

  CLAIM PAYMENTS IN EXCESS OF $75,000
 

Mr. Eriksen noted there were no claim payment requests for Council review and action.

  OTHER ISSUES
 

Mr. Eriksen noted the next meeting date is Thursday, August 25, 2016. This will be the Council's annual strategic planning meeting.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked if there were any comments from the public.

Mr. Tae-Soo Jung, owner/operator of Fox Valley Cleaners distributed a handout to the Council listing 3 questions regarding Mr. McCarthy's' contract with the Council and the cancelled April 1, 2016 NDI administrative hearing. The letter requested copies of specific documents. Mr. Eriksen stated he would treat the records request as a FOIA request.

Mr. Dae-Ho Yang, owner/operator of Alpha Cleaners distributed a handout to the Council listing five comments/questions regarding the Council's decision to not de-certify the ESM Compliance Program, the NDI Compliance Program de-certification, Mr. Polak's meeting participation via teleconference, the public comment period, and how to request copies of Council records. The letter requested copies of specific documents. Mr. Eriksen stated he would treat the records request as a FOIA request.

  CLOSED SESSION
 

Mr. Eriksen noted there were no issues for discussion in closed session.

There being no further business, on a motion by Mr. Bredenkamp and a second by Mr. Kwak, the Council meeting adjourned at 10:59 a.m.

Respectfully submitted,

H Patrick Eriksen
Program Administrator

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