January 19, 2018 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT HOTEL
NAPERVILLE, ILLINOIS

January 19, 2018

  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 (via telephonic conference)
Robert Dunham
Sung D. Kang
Dae Kim
Daniel Kim
Young B. Kim
John Polak (via telephonic conference

Also present were:

H. Patrick Eriksen, Program Administrator’s Office
John J. McCarthy, Legal Counsel
Yong Kim, Program Administrator’s Office

  PRELIMINARY BUSINES
 

The minutes from the December 6, 2017 council meeting were reviewed. On a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, the minutes were approved by a vote of 7-0.

Mr. Polak stated since Mr. Dong Lee was in transit to the meeting for his appeal, he would move to the next agenda item, decertification hearing of the ESM Compliance Program. .

  DECERTIFICATION OF THE ESM COMPLIANCE PROGRAM
 

Mr. Polak introduced the issue and referenced background information provided in the council packet.

Mr. Richard Kim, administrator/owner of the ESM Compliance Program, addressed the council noting his failure to timely complete the required site inspections for calendar year 2015 was due to numerous personal issues, including the passing of his father in November 2015. He completed all of the required inspections by March 1, 2016.

Mr. Polak asked if he is current on his 2017 inspections. Mr. Eriksen replied that he had submitted all but 1 of the scheduled 2017 inspections and had until January 31, 2018 to submit the 1 remaining inspection. Mr. Dae Kim asked if the council decertifies ESM today, what would be the impact to the six (6) drycleaners who received the late 2015 inspection. Mr. Eriksen responded if the council took the same position as they did with NDI, there would be no impact on the 6 drycleaners as the late inspections were completed by an approved inspector. With NDI, the council accepted all late inspections conducted by an approved inspector but disallowed all inspections not completed by an approved inspector. Mr. Daniel Kim voiced his opinion it could result in the same issues that surrounded the NDI decertification and does not view the extra 2 months ESM took to complete 6 inspections as a major mistake.

Mr. Bredenkamp made a motion not to decertify the ESM Compliance Program. The motion was seconded by Mr. Daniel Kim. Mr. Kang stated he received the summary of compliance program violations, which was requested by Mr. Dunham Friday evening January 12th, this past Wednesday and did not have time to study it. He would like to table action on this issue until the next meeting so he has time to study the compliance program violation summary. Mr. Bredenkamp called for the question. On a roll call vote the motion failed by a vote of 3-3-1, with Mr. Bredenkamp, Mr. Daniel Kim and Mr. Polak voting yes; Mr. Dunham, Mr. Kang and Mr. Young Kim voted no; Mr. Dae Kim abstained.

A lively discussion ensued regarding how to address the future of the ESM Compliance Program. Mr. Kang stated he needed more time to study the issue before he was prepared to make a decision on the ESM Compliance Program. Mr. Kang made a motion to table this issue until the next meeting. The motion was seconded by Mr. Young Kim. On a roll call vote, the motion passed by a vote of 4-2-1, with Mr. Dunham, Mr. Kang, Mr. Dae Kim and Mr. Young Kim voting yes; Mr. Bredenkamp and Mr. Polak voted no; Mr. Daniel Kim abstained.

APPEAL – CANCELLATION OF INSURANCE COVERAGE
  B. One Hour Cleaners, Lombard, IL. Site #0001668
 

Mr. Eriksen reviewed background information noting the policy cancelled on April 17, 2017 for failure to timely renew the facility's 2017 license. The 2017 license fee was paid on March 30, 2017 and the required licensing information was received on May 5, 2017 and the facility license was renewed. Mr. Dong Lee, drycleaning facility owner, reapplied for insurance coverage and new coverage was issued on July 19, 2017. On July 9, 2017, Mr. Lee requested the council waive the 60 day notice period for appealing the April 18, 2017 insurance cancellation.

On a motion by Mr. Dunham and a second by Mr. Daniel Kim, the council voted 7-0 to waive the 60 day notice period for appealing the insurance cancellation.

Mr. Jae Yoon translated on behalf of Mr. Dong Lee. Mr. Lee stated it was a mistake on his part and he apologized for his error.

After discussion, on a motion by Mr. Kang and a second by Mr. Dunham, the council voted 7- 0 to reinstate the insurance coverage without a lapse in coverage.

  OPPERATIONAL ISSUES
  A. Compliance Program Issues
 

1. Review of Current Policies and Procedures

Included in the council packet were the current policies and procedures and the draft regulations previously approved by the council. Mr. Eriksen noted prior to the start of the meeting, Mr. Kang had distributed a summary sheet of proposed changes and revised policies and procedures reflecting his proposed changes.

Mr. Polak stated since he and Mr. Bredenkamp did not have the material Mr. Kang distributed to review, he would make a motion to table further discussion of this topic until the next meeting. The motion was seconded by Mr. Bredenkamp and on a roll call vote, passed by a vote of 7-0.

Mr. Kang asked why the current draft compliance program rules had not been filed with JCAR. Mr. Eriksen responded the governor's office had requested to review the draft rules and despite numerous contacts, had not completed their review. A lengthy discussion of this rule filing process ensued.

2. Mr. Tae Jung's August 23, 2017 Email to the council

Mr. Eriksen noted Mr. Jung had emailed the council members he was unable to attend this meeting but he would have a representative at the meeting.

Mr. Kang made a motion to table discussion until the next meeting since Mr. Jung was not present. Mr. Dae Kim seconded the motion and it passed by a vote of 7-0.

  B. Legislative Update
 

Mr. Eriksen reported Senator Koehler held an informational meeting December 11, 2017 to discuss Amendment 001 to SB1648 with industry representatives, council members, legislators and representatives of the Illinois EPA. The meeting focused on expectations and interests of the parties participating in the meeting.

Senator Koehler is forming a subcommittee to study the bill and at this time all members have not been appointed nor any hearing dates set.

  C. Policy Issue – Adding Real Estate Owner to Cleanup Reimbursement Warrant
 

Mr. Eriksen reviewed background information on the issue. David Kay of Laicon, Inc. is requesting the council allow the substitution of the real estate owner for the environmental consultant as the second payee on the cleanup reimbursement warrant in limited situations where the remedial claim has not been released for funding by the council and the real estate owner provides the financing to conduct the cleanup.

Mr. Kay addressed the council and outlined in detail the issue. He acknowledged the remedial program claimant must still participate in the cleanup process including reviewing and approving all reimbursement requests. Invoices for remedial activities must be invoiced to the remedial program claimant and not to the real estate owner.

After general discussion, on a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, the council approved by a roll call vote of 6-0, Laicon's request to substitute the real estate owner for the environmental consultant on the reimbursement warrant subject to the criteria outlined in the council packet memo. Mr. Young Kim briefly left the meeting prior to the vote.

APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted there were four (3) bills before the council for their review and approval. They were:

1. Williams & Company Consulting, Inc. $ 10,514.00*

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

2. Williams & Company Consulting, Inc. $ 43,768.00*

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

3. John J. McCarthy $ 2,560.00

Professional legal services to the council for the period of November 22, 2017 through January 5, 2018

On a motion by Mr. Bredenkamp and a second by Mr. Dunham, 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 December 31, 2017 noting 809 licenses were in effect at the end of the month compared to 855 as of December 31, 2017. Four hundred sixteen (416) active dry-cleaning facilities had pollution liability insurance coverage with the fund. Open claims totaled 160, with estimated reserves of $17.8 million. The November 2017 report was included in the council packet.

The December 31, 2017 financial statements reflect a fund balance of $1,644,986. The November 2017 financial statements were included in the council packet.

  CLAIM PAYMENTS IN EXCESS OF $75,000
 

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

1. Concord Custom Cleaners #802, Springfield, IL; Claim #50631, Site #0001122:

Mr. Eriksen reviewed background information on the facility noting the budget request is for costs relating to an additional chemical oxidant injection, four bi-annual groundwater monitoring events, and related reporting. The administrator requested budget approval of $61,000.

On a motion by Mr. Bredenkamp and a second by Mr. Kang, the council approved the administrator's budget request of $61,000 by a vote of 7-0.

2. PJ Cleaners, Maywood, IL; Claim #50084, Site #0001887:

Mr. Eriksen reviewed background information on the facility noting the budget request is for two additional ISCO events and soil and groundwater confirmation sampling. The administrator requested budget approval of $72,250 and waiver of the two bid requirement.

On a motion by Mr. Young Kim and a second by Mr. Dae Kim, the council approved the administrator's budget request of $72,250 and waiver of the two bid requirement by a vote of 7-0.

3. Imperial Cleaners, Schaumburg, IL; Claim #50218, Site #0002477:

Mr. Eriksen reviewed background information on the facility noting the budget request is for construction and implementation of a chemical oxidant remedial system, confirmatory site investigation costs to evaluate the effectiveness of the remedial system and installation of a building control technology. The administrator requested budget approval of $202,650 and waiver of the two bid requirement.

On a motion by Mr. Young Kim and a second by Mr. Dunham, the council approved the administrator's budget request of $202,650 and waiver of the two bid requirement by a vote of 7-0.

4. Norwood Cleaners, Chicago, IL; Claim #50871, Site #0001921:

Mr. Eriksen reviewed background information on the facility noting the budget request is for construction and implementation of a chemical oxidant remedial system, confirmatory site investigation costs to evaluate the effectiveness of the remedial system and installation of a building control technology. The administrator requested budget approval of $203,250 and waiver of the two bid requirement.

On a motion by Mr. Young Kim and a second by Mr. Dunham, the council approved the administrator's budget request of $203,250 and waiver of the two bid requirement by a vote of 7-0.

  OTHER ISSUES
 

The council tentatively scheduled the next council meeting for Friday, March 9, 2018.

Mr. Eriksen commented the Korean American Drycleaners Association and the Illinois Professional Drycleaners and Launderers have requested council meeting videos be posted on YouTube for viewing by interested drycleaners and members of the public. By consensus, the council declined to place this topic on a future meeting agenda.

Mr. Eriksen reported Mr. Ted Jung's December 9, 2017 email to the council wishing to re-appeal the council's December 6, 2017 decision to deny payment of $100 to 4 drycleaners has been treated as an appeal of the council's decision and has been referred to the administrative law judge. Letters acknowledging the appeal have been sent to the 4 drycleaners.

NDI's appeal of Judge Flynn's decision upholding the Council's decision to decertify the NDI Compliance Program is scheduled for the initial filing in the First District Appellate Court on February 1, 2018.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked for public comment. Mr. Chang Lee of KADA presented several questions involving council member qualifications, involvement in drafting/supporting legislation, council member responsibilities, and understanding of council issues.

  CLOSED SESSION
 

Mr. Eriksen noted there was one issue for discussion in Closed Session. On a motion by Mr. Young Kim and a second by Mr. Kang, the council voted 7-0 to go into closed session at 12:00 p.m.

The Council adjourned from closed session at 12:13 p.m. On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the Council voted not to reduce the 2016 and 2017 license late payment penalties for Custom Cleaners of Carbondale. The motion passed 7-0.

There being no further business, on a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, the council meeting adjourned at 12:15 p.m.

Respectively submitted,




H. Patrick Eriksen,
Administrator

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