APRIL 21, 2017 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

SHERATON HOTEL
LISLE, ILLINOIS

APRIL 21, 2017

 

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 (via telephonic conference)
Robert Dunham (arrived at 10:10 am)
Sung Do Kang
Dae Kim
Daeniel Kim
Young B. Kim
John Polak (via telephonic conference)

Also present were:

H. Patrick Eriksen, Program Administratorís Office
John J. McCarthy, Program Counsel
Dr. Juho So, Program Administratorís Office
Yong Kim, Program Administratorís Office

  PRELIMINARY BUSINESS
 

Mr. Polak welcomed Mr. Dae Kim and Mr. Dunham to the Council.

The minutes from the January 12, 2017 Council meeting were reviewed. On a motion by Mr. Bredenkamp and a second by Mr. Daniel Kim, the minutes were approved by a vote of 4-0-2. Mr. Kang and Mr. Dae Kim abstained.

  OPERATIONAL ISSUES
  A. Appointment of Vice Chairman
 

Mr. Polak noted Jerry Lewicki had been serving as Vice Chairperson of the Council and was recently replaced on the Council by Mr. Dunham. Mr. Polak, in accordance with the Councilís Bylaws, appointed Dae Kim as Vice Chairperson and requested Council approval of Mr. Kim.

On a motion by Mr. Bredenkamp and a second by Mr. Kang, Dae Kim was approved as Vice Chairperson by a vote of 7-0.

  B. Fund Solvency Update
 

Mr. Eriksen reviewed the three scenarios in the Council packet. Scenarios A and B were unchanged from the January 12, 2017 Council meeting. Scenario C was updated based on Council discussion at the January 12, 2017 meeting. The solvent tax on perc was increased from $10 per gallon to $25 per gallon to match the proposed percentage increase in the hydrocarbon solvent tax. License fees were reduced to remain at the current rates.

Mr. Eriksen shared with the Council he was asked at the House Appropriation hearing in March if extension of the Fund would be necessary to cleanup all remaining claims. He informed the committee an extension is necessary as there is not enough time remaining to physically complete the cleanups even if all needed monies were immediately available.

Mr. Daniel Kim commented he prefers Scenario C because the license fees remain unchanged. Mr. Dunham commented it appears extension of the Fundís sunset date is the only feasible option. A general discussion ensued of remedial benefits for drycleaning facilities that are no longer doing active drycleaning.

Mr. Kang made a motion to defer taking any action on fund solvency until the Councilís annual strategic planning meeting in August of 2017. The motion was seconded by Mr. Young Kim. Mr. Bredenkamp expressed concern delaying making a recommendation on this issue due to the approaching sunset date of January 1, 2020. On a roll call vote, the motion passed by a vote of 4-3. Mr. Polak, Mr. Bredenkamp and Mr. Daniel Kim voted against the motion.

  C. Legislative Update
 

Mr. Eriksen reported Representative Fortner filed HB2916, which is currently a shell bill. It resides in the Rules Committee. SB0009 creates the ďLaundry and Drycleaning Excise Tax Act.Ē This bill proposes a 6.25% excise tax on all laundry and drycleaning services.

  D. Review of Fiscal Year 2016 Audit Report
 

Mr. Eriksen reviewed the FY16 audit report noting the only finding was expiration of Council membersí terms. This is a repeat finding for the past nine years.

  E. Compliance Program Issues
 

Mr. Eriksen noted there are three separate issues for discussion.

The first relates to 2016 compliance program inspections. Mr. Eriksen discussed the status of the 33 drycleaners that sent the Council a letter in December of 2016 inquiring about the need for a compliance program site inspection in 2016.

Mr. Eriksen recommended the 16 facilities that were selected for inspection in 2016 but failed to have an inspection be given until December 31, 2017 to complete the compliance program inspection. He noted all drycleaners insured with the Fund as of January 1, 2014 must have at least one compliance program inspection completed by December 31, 2017.

Mr. Kang asked about the status of the draft compliance program rules. Mr. Eriksen responded it is currently being reviewed by the governorís office. Mr. Kang asked about AASBAís spreadsheet that was included in the Council packet. Mr. Eriksen stated it was provided as a source of informational material.

Mr. Kang asked Mr. McCarthy if he can share Council policy information with a drycleaner that inquires about the policy. Mr. McCarthy responded he could.

Mr. Dunham noted he had been involved with NDI in the capacity of a vice president. He asked about the quality of NDIís inspections prior to the decertification issues raised in prior years and the size of the NDI program. He asked these issues in light of what he believes is chaos resulting from the decertification. Mr. Dunham felt training would have been beneficial for NDI versus decertification.

Mr. Kang brought up the issue how a council member can put an item on the agenda. He noted he raised this issue in 2013 and 2014. Mr. McCarthy noted he has written to Mr. Kang about this issue on several occasions. Mr. McCarthy explained the issue should be brought up under ďother issuesĒ and determined by the council members if they want the issue on the next agenda. Mr. Kang wanted to know what rule exists that determines how a council member can add an item to the agenda. A general discussion ensued on this topic.

Mr. Bredenkamp made a motion to extend until December 31, 2017 the timeframe for the 16 drycleaning facilities identified by Mr. Eriksen to complete a compliance program site inspection.

Mr. Kang asked a series of questions regarding the four year site inspection requirement. Mr. Eriksen responded to Mr. Kangís questions and reviewed background information regarding the four year site inspection requirement. A lengthy discussion ensued regarding the application of this four year requirement.

Mr. Polak seconded Mr. Bredenkampís motion. On a roll call vote, the motion passed 5-2 with Mr. Kang and Mr. Young Kim voting in opposition.

The second issue is NDIís appeal of their compliance program de-certification by the Council on November 29, 2016. Mr. Chris Grant, of the Attorney Generalís office, is representing the Council in this appeal and provided background information for the new council members. The issue before the Council is whether the Council wants to refer the appeal to the administrative law judge or refer it to Judge Flynn in Cook County Circuit Court. Mr. Bredenkamp made a motion to refer the appeal to the administrative law judge. The motion was seconded by Mr. Daniel Kim, and on a roll call vote, was approved by a vote of 4-1-2. Mr., Dunham voted no and Mr. Kang and Mr. Dae Kim abstained.

The third issue is regarding ESM Compliance Program 2015 site inspection issues. Mr. Eriksen is requesting deferral, for the second time, action on this issue until NDIís appeal of the Councilís November 29, 2016 decertification decision is finished. On a motion by Mr. Bredenkamp and a second by Mr. Daniel Kim, on a roll call vote, the motion passed 7-0.

APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted there were four (4) bills before the Council for their review and approval. They were:

1. Williams & Company Consulting, Inc. $ 85,801.00

Standard flat fee billing for January 2017, licensing, underwriting, claims processing and site inspections.

2. John J. McCarthy $ 2,892.50

Professional legal services to the Council for the period of December 10, 2016 through February 28, 2017.

3. Williams & Company Consulting, Inc. $ 67,616.00

Standard flat fee billing for February 2017, licensing, underwriting, claims processing and site inspections.

4. Williams & Company Consulting, Inc. $ 50,637.00

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

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the bills were approved by a vote of 7-0.

  REVIEW OF MONTHLY ACTIVITY REPORTS AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for March 31, 2017 noting 709 licenses were in effect at the end of the month compared to 756 as of March 31, 2016. Four hundred forty three (443) active dry-cleaning facilities had pollution liability insurance coverage with the Fund. Open claims totaled 170, with estimated reserves of $18.4 million. The January and February 2017 reports were included in the council packet.

The March 31, 2017 financial statements reflected a fund balance of $2,030,302. Year-to-date claim reimbursement requests approved for payment total $874,740.

  CLAIM PAYMENTS IN EXCESS OF $75,000
 

Mr. Eriksen noted there were three claim payment requests in excess of $75,000 requiring Council review and action.

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

Dr. So reviewed background information on the facility noting the only remaining work at this facility is off-site soil gas sampling, removal and closure of monitoring wells and NFR correspondence and reporting. The Administrator requested budget approval of $26,500.

On a motion by Mr. Young Kim and a second by Mr. Daniel Kim, the Council approved the Administratorís budget request of $26,500 by a vote of 7-0.

2. B&B Dry Cleaners, Oak Lawn, IL; Claim #50395, Site #0002164:

Dr. So reviewed background information on the facility noting the budget request is to install a sub-slab depressurization system to address vapor intrusion risk. The Administrator requested budget approval of $12,600.

On a motion by Mr. Young Kim and a second by Mr. Bredenkamp, the Council approved the Administratorís budget request of $12,600 by a vote of 7-0.

3. Yorktown Cleaners, Woodridge, IL; Claim #50519, Site #0001664:

Dr. So reviewed background information on the facility noting the budget request is for a single enhanced reductive dechlorination injection and subsequent sampling to reduce the remaining areas of soil and groundwater contamination. The Administrator requested budget approval of $46,250.

On a motion by Mr. Kang and a second by Mr. Young Kim, the Council approved the Administratorís budget request of $46,250 by a vote of 7-0.

4. Lamar Cleaners, Evergreen Park, IL; Claim #50121, Site #0001303:

Dr. So reviewed background information on the facility noting the budget request is for soil gas sampling and installation of a building control technology to address the vapor intrusion pathway at the facility. The Administrator requested budget approval of $28,000

On a motion by Mr. Daniel Kim and a second by Mr. Kang, the Council approved the Administratorís budget request of $28,000 by a vote of 7-0.

5. Barry Regent Cleaners, Chicago, IL; Claim #50239, Site #0001037:

Dr. So reviewed background information on the facility noting the budget request is for persuflox injection, post injection sampling and development of the remedial action completion report. The Administrator requested budget approval of $72,750 and waiver of the two bid requirement.

On a motion by Mr. Young Kim and a second by Mr. Dunham, the Council approved the Administratorís budget request of $72,750 and waiver of the two bid requirement by a vote of 7-0.

6. Dun Rite Cleaners, Mt. Prospect, IL; Claim #50511, Site #0001893:

Dr. So reviewed background information on the facility noting the budget request is for additional site investigation work to further delineate the contamination plume. The Administrator requested budget approval of $18,410.

On a motion by Mr. Young Kim and a second by Mr. Dae Kim, the Council approved the Administratorís budget request of $18,410 by a vote of 7-0.

7. All Pro Cleaners, Chicago, IL; Claim #50130, Site #0001702:

Dr. So reviewed background information on the facility noting the budget request is for installation of engineered barrier and building control technology to address vapor intrusion pathway, site restoration costs and costs associated with the issuance of the NFR letter. The Administrator requested budget approval of $38,500.

On a motion by Mr. Young Kim and a second by Mr. Bredenkamp, the Council approved the Administratorís budget request of $38,500 by a vote of 7-0.

  OTHER ISSUES
 

Mr. Eriksen noted the next meeting date is tentatively scheduled for Thursday, May 4th, but is recommending the next meeting be scheduled for the week of June 5th. After a brief discussion, it was agreed the next meeting be scheduled for Wednesday, June 7th. Since several of the new Council members live in the northwest suburbs, it was suggested by Mr. Young Kim future meetings be held in the Schaumburg area. By consensus, the Council agreed to hold the June 7th meeting in Schaumburg.

Mr. Daniel Kim asked Mr. Eriksen his opinion if the final budget bill will include an excise tax on drycleaning services. Mr. Eriksen responded it is unknown at this time.

Mr. Kang made a motion to request John McCarthy research for the next Council meeting how a Council member can add items to the agenda for review and action by the Council. Mr. Kang requested regulatory or policy references supporting this research. Currently, a Council member can make a request during the discussion of ďother issuesĒ to add an item(s) to the next meetingís agenda. The request must be approved by a majority of the Council. The motion was seconded by Mr. Young Kim. The motion passed by a vote of 6-1 with Mr. Bredenkamp voting in opposition.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked for public comment. Ms. Sue Kratz, Executive Director of the Illinois Professional Launders and Drycleaners Association addressed for the benefit of the two new Council members, historical background information on the compliance program issues discussed today by the Council. Ms. Kratz specifically expressed her frustration that the Council is still dealing with issues involving the NDI Compliance Program approximately 2 years after the initial decertification decision.

  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. Dunham, the Council meeting adjourned at 12:25 p.m.

Respectfully submitted,

H Patrick Eriksen
Administrator

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