July 11, 2018 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT HOTEL
NAPERVILLE, ILLINOIS

July 11, 2018

  John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:05 a.m. A quorum was present. Roll call was taken with the following members present:
 

John Bredenkamp
Robert Dunham
Daniel Kim
John Polak

Also present were:

H. Patrick Eriksen, Program Administrator's Office Dr. Juho So, Program Administrator's Office

  PRELIMINARY BUSINESS
 

The minutes from the January 19, 2018 council meeting were reviewed. On a motion by Mr. Bredenkamp and a second by Mr. Dunham, the minutes were approved by a vote of 4-0.

  APPEAL WAIVER OF INSURANCE PREMIUM

Ok Cleaners, Forest Park, IL. Site #0002249

Mr. Eriksen noted Mr. Byung Kim, the drycleaning facility owner/operator was not in attendance. Mr. Eriksen reviewed background information noting the facility ceased operating as a drycleaning facility on December 18, 2017. The facility was insured with the Trust Fund and the second $550 insurance premium installment was due as of December 16, 2017. Mr. Kim requested waiver of the $550 premium installment because the facility was no longer an active drycleaning facility.

Mr. Eriksen reminded the council on a previous appeal, the administrative law judge affirmed the section of the Trust Fund Act stating the insurance premium is fully earned upon issuance of the insurance policy.

On a motion by Mr. Polak and a second by Mr. Bredenkamp, the council voted 4-0 to deny the request to waive the second $550 insurance premium installment.

  APPEAL WAIVER OF LICENSE AND LATE PAYMENT PENALTY FEES

New Choice Cleaners, Wheaton, IL. Site #0001094

Mr. Eriksen noted Mr. Min, the drycleaning facility owner/operator was in attendance. Mr. Eriksen reviewed background information noting the administrator was notified via a letter received on November 10, 2017, indicating the facility ceased operating as a drycleaning facility on December 31, 2016. Enclosed with the letter was a copy of an invoice from Haiges Machinery, Inc. dated October 10, 2017 indicating they had purchased the drycleaning machine from Mr. Min.

Mr. Min addressed the council stating the drycleaning machine had not been operated since 2016. Mr. Richard Kim of the ESM Compliance Program and Dr. So assisted as interpreters for Mr. Min. He acknowledged he had kept solvent stored at the facility in 2017 but it was stored on a secondary containment pan. Mr. Min requested the council waive the 2017 license and license late payment penalty for 2017.

After a lengthy discussion, Mr. Kim made a motion to waive the license late payment penalty fees but affirmed Mr. Min owed the $1,500 license fee for 2017. The motion was seconded by Mr. Bredenkamp. On a roll call vote, the motion failed by a vote of 3-1, with Mr. Dunham voting against the motion.

After additional discussion, Mr. Dunham made a motion to waive the 2017 license fee and the late payment penalty. The motion died for lack of a second.

Mr. Dunham made a motion to reconsider the first motion, which was waiving the license late payment penalty fees and affirming the $1,500 license fee. Mr. Kim seconded the motion and it passed by a vote of 4-0.

  OPERATIONAL ISSUES
  A. Compliance Program Issues
 

1. Review of Current Policies and Procedures

Included in the council packet were the:

  • current policies and procedures
  • the draft regulations previously approved by the council
  • Mr. Kang's summary of proposed modifications to the policies and procedures and draft policies and procedures reflecting his proposed modifications
  • Mr. Kwon's April 2, 2018 letter requesting modification of the 25% annual inspection requirement
  • Mr. Parker's March 8, 2018 email and related correspondence.

Council discussion focused on the proposed modifications requested by Mr. Kang, Mr. Kwon and Mr. Parker. At the conclusion of the discussion it was the council's consensus the current policies and procedures do not require modification.

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

Mr. Polak noted Mr. Jung was not in attendance but he believed the issues raised in the Mr. Jung's email had been adequately addressed/discussed by the council.

3. 2017 Site Inspection Update

Due to council member time constraints, discussion was deferred to the next council meeting.

  B. Legislative Update
 

Mr. Eriksen briefly reported neither SB1648 nor SB2443 were acted on by the legislature during the spring session. The legislature's veto session is scheduled for six days in November.

Mr. Dunham commented he has spoken to Senator Pam Althoff and she is exploring revenue options including possibly moving this program to the state's LUST Program.

Discussion of the draft compliance program regulations ensued. On a motion by Mr. Polak and a second by Mr. Dunham, the council directed Mr. Eriksen to send the draft regulations one last time to the governor's office for review and comment. The motion passed by a vote of 4-0.

Due to council member time constraints, the council chairman moved off the agenda order to Item D Solvent Classification.

  C. Solvent Classification HC Boost and LIFT Cleaning Solvents
 

Mr. Eriksen reviewed the information in the council packet memo regarding these two solvents. According to each solvent's MSDS sheet, the main substance is a synthetic isopararffinic hydrocarbon.

On a motion by Mr. Bredenkamp and a second by Mr. Kim, by a vote of 4-0, the council classified both solvents for licensing and taxing purposes as a hydrocarbon solvent.

  D. Updated Financial Projections for the Period of July 1, 2017 to January 1, 2020
 

Due to council member time constraints, Mr. Eriksen commented updated financial projections would be prepared for the next council meeting.

  E. Review of Fiscal 2017 Audit Report
 

Mr. Eriksen noted the only finding is a repeat finding from the past ten audits and references the timeliness of council member appointments.

  F. Review of Revised Perc Operator Training
 

Mr. Eriksen gave a brief overview of the legislative requirement for the training.

Mr. Polak recessed the meeting at 11:40 a.m. The meeting resumed at 11:45 a.m.

Mr. Eriksen reviewed the new slides which discussed alternative drycleaning solvents, wet cleaning, and wet cleaning advantages and disadvantages. Mr. Bredenkamp made a motion for the administrator to send the changes to the Illinois EPA for their review and approval. The motion was seconded by Mr. Polak and passed by a vote of 4-0.

  G. Legal Representation
 

Mr. Eriksen reviewed the memo in the council packet highlighting Mr. McCarthy's legal fees for FY18 for the provision of legal services to the council. Mr. Eriksen noted Mr. McCarthy has requested his rates remain the same for FY19 which are $190 per hour for professional services and $100 per hour for travel time.

Mr. Polak made a motion for the council to enter into a one year contract for the provision of legal services at the rates of $190 per hour for professional services and $100 per hour for travel time for annual cost not to exceed $29,999. The motion was seconded by Mr. Bredenkamp. The motion failed on a vote of 3-1 with Mr. Dunham voting against the motion. Mr. Polak asked Mr. Dunham why he opposed contracting with Mr. McCarthy and he responded he believes this issue should be addressed at the next meeting by the full council. Mr. Polak reminded Mr. Dunham the council will be operating without legal counsel and directed the issue be placed on the next meeting's agenda.

  H. Appointment of Vice Chairperson
 

In accordance the council's bylaws, Mr. Polak made a motion to appoint Daniel Kim to the position of Vice Chairperson which was vacated in March by the resignation of Dae Kim. The motion was seconded by John Bredenkamp and passed by a vote of 4-0.

  I. Appointment of a SPAAG
 

Mr. Eriksen noted no action is needed on this issue as the council did not approve entering into a contract with Mr. McCarthy for legal counsel.

APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted there were eight (8) bills before the council for their review and approval. They were:

1. Williams & Company Consulting, Inc. $ 91,873.00*

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

2. John J. McCarthy $ 3,097.50

Professional legal services to the Council for the period of of May 30, 2017 through June 30, 2017.

3. Williams & Company Consulting, Inc. $ 75,985.00*

Standard flat fee billing for February 2018, licensing, underwriting, claims processing and site inspections.

4. Williams & Company Consulting, Inc. $ 63,905.00

Standard flat fee billing for March 2018, licensing, underwriting, claims processing and site inspections.

5. John J. McCarthy $   4,950.00

Professional legal services to the council for the period of February 21, 2018 through June 30, 2018.

6. Williams & Company Consulting, Inc. $ 49,880.00

Standard flat fee billing for April 2018, licensing, underwriting, claims processing and site inspections.

7. Williams & Company Consulting, Inc. $ 48,356.00

Standard flat fee billing for May 2018, licensing, underwriting, claims processing and site inspections.

8. Williams & Company Consulting, Inc. $ 69,539.00

Standard flat fee billing for June 2018, licensing, underwriting, claims processing and site inspections.

On a motion by Mr. Bredenkamp and a second by Mr. Kim, the bills were approved by a vote of 4-0.

*Approved by council on March 9, 2018 via email/telephone.

  CLAIM PAYMENTS IN EXCESS OF $75,000
 

Mr. Eriksen noted there were ten claim payment requests in excess of $75,000 requiring council review and action. Five were approved on March 9, 2018 by the two council members physically in attendance at that meeting and by two other council members via email and/or telephone.

Mr. Polak requested the administrator review the five claims that had not been reviewed in detail at the March 9, 2018 meeting.

1. P&J Cleaners, Oak Park, IL; Claim #50377, Site #0001436:

Dr. So reviewed background information on the facility noting the budget request is for costs relating to an additional chemical oxidant injection, installation of an SSDS system, reporting and closure activities. The administrator requested budget approval of $125,000.

On a motion by Mr. Bredenkamp and a second by Mr. Dunham, the council approved the administrator's budget request of $125,000 by a vote of 4-0.

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

Dr. So reviewed background information on the facility noting the budget request is for an ERD injection event, soil and groundwater confirmation sampling and closure reporting. The administrator requested budget approval of $65,000.

On a motion by Mr. Kim and a second by Mr. Dunham, the council approved the administrator's budget request of $65,000 by a vote of 4-0.

3. National Cleaners, Crest Hills, IL; Claim #50560, Site #0001787:

Dr. So reviewed background information on the facility noting the budget request is for construction and implementation of a chemical oxidant remedial system and confirmatory site investigation costs to evaluate the effectiveness of the remedial system. The administrator requested budget approval of $165,350 and waiver of the two bid requirement.

On a motion by Mr. Polak and a second by Mr. Bredenkamp, the council approved the administrator's budget request of $165,350 and waiver of the two bid requirement by a vote of 4-0.

4. Trim & Tidy Cleaners, Chicago, IL; Claim #50864, Site #0002610:

Dr. So reviewed background information on the facility noting the budget request is for post remedial confirmatory site investigation, installation of a remedial barrier to mitigate potential offsite migration of contamination, well closure and reporting. The administrator requested budget approval of $42,000.

On a motion by Mr. Dunham and a second by Mr. Bredenkamp, the council approved the administrator's budget request of $42,000 by a vote of 4-0.

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

Dr. So reviewed background information on the facility noting the budget request is for soil vapor sampling and related reporting. The administrator requested budget approval of $11,500.

On a motion by Mr. Polak and a second by Mr. Dunham, the council approved the administrator's budget request of $11,500 by a vote of 4-0.

The five claims approved by the council on March 9, 2018 are as follows:

  • Dun Rite Cleaners, Mount Prospect, IL; Claim #50511 - $183,950
  • Redwood Cleaners, Lincolnwood, IL; Claim #50387 - $193,750
  • M&K Cleaners, Chicago, IL; Claim #50013 - $276,225.50
  • Cicero Cleaners, Cicero, IL; Claim #50516 - $42,700
  • Modernway Cleaners, Midlothian, IL; Claim #50799 $37,000

On a motion by Mr. Polak and a second by Mr. Bredenkamp, the council reaffirmed the five budget requests listed above by a vote of 4-0.

  OTHER ISSUES
 

The council tentatively scheduled the next council meeting for Friday, August 17, 2018 and it will be the council's annual strategic planning meeting.

Mr. Eriksen reviewed the state's new travel policy which went into effect on April 1, 2018.

  REVIEW OF MONTHLY ACTIVITY REPORTS AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for June 30, 2018 noting 731 licenses were in effect at the end of the month compared to 752 as of June 30, 2017. Three hundred ninety six (396) active dry-cleaning facilities had pollution liability insurance coverage with the fund. Open claims totaled 151, with estimated reserves of $16.9 million. The January through June 2018 reports were included in the council packet.

The May 31, 2018 financial statements reflect a fund balance of $1,668,918. The financial statements for June 30, 2018 are not complete but claim payments for June totaled $584,630. The January through May 2018 financial statements were included in the council packet.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked for public comment. Ms. Sue Kratz asked if there was any movement on council member appointments by the governor's office. Mr. Eriksen replied hopefully soon.

  ETHICS AND SEXUAL HARASSMENT TRAINING
 

Mr. Eriksen reviewed with the council the 2018 Ethics Training material for Appointees to State of Illinois Boards. Special emphasis was placed on the topics of:

  • Official Misconduct, Bribery and Solicitation Misconduct
  • Conflicts of Prohibited Political Activities
  • Prohibited Offer or Promise
  • Ban on Gifts from Prohibited Sources
  • Additional Rules for Appointees

Mr. Eriksen reviewed with the council the 2018 Sexual Harassment Training for state employees under the jurisdiction of the governor.

  CLOSED SESSION
 

Mr. Eriksen noted there are two issues for discussion in Closed Session. On a motion by Mr. Polak and a second by Mr. Bredenkamp, the council voted 4-0 to go into closed session at 12:28 p.m.

The Council adjourned from closed session at 12:33 p.m.

On a motion by Mr. Bredenkamp and a second by Mr. Dunham, the Council voted 4-0 to reduce the 2017 and 2018 license late payment penalties for Dulles Cleaners, Elmhurst IL from $2,135 to $472.

On a motion by Mr. Dunham and a second by Mr. Bredenkamp, the Council voted 4-0 to reduce the 2017 license late payment penalty for Lee's Morris Cleaners, Morris, IL from $365 to $95.

There being no further business, on a motion by Mr. Bredenkamp and a second by Mr. Polak, the council meeting adjourned at 12:36 p.m.

Respectively submitted,

H. Patrick Eriksen
Administrator

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