November 9, 2018 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL OF ILLINOIS

COURTYARD CHICAGO SCHAUMBURG/WOODFIELD MALL HOTEL
SCHAUMBURG, ILLINOIS

NOVEMBER 9, 2018

  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 (via telephonic conference)
Robert Dunham
Jemma Jones
Sung Do Kang
Daniel Kim
Young B. Kim
John Polak (via telephonic conference)

Also present were:

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

  PRELIMINARY BUSINESS
 

The minutes from the August 17, 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 7-0.

  APPEALS CANCELLATION OF INSURANCE COVERAGE/LOSS REMEDIAL BENEFITS

A. Bethel Cleaners, 316 West Rollins Beach Road, Round Lake Beach, IL Site #0001822

Mr. Eriksen reviewed background information with the council noting Mr. Kwon has operated the facility since July 1994. The policy expired on August 1, 2018 for failure to renew coverage. The facility does not have a remedial claim.

Mr. Kwon addressed the council stating he just forgot to renew the coverage when due noting he was only a few days late in attempting to renew the coverage. He is requesting the council reinstate his insurance coverage without a lapse in coverage.

After discussion by the council, on a motion by Mr. Polak and a second by Mr. Young Kim, the council voted 7- 0 if Mr. Kwon reapplied for insurance coverage it would be issued with a new retroactive date, i.e. with a lapse in coverage..

 

B. Willow Cleaners, 2701 Shermer Road, Northbrook, IL. Site #0001982

Mr. Eriksen reviewed background information with the council noting Ms. Shin has operated the facility since December 1996. The policy was cancelled on August 28, 2018 for failure to provide the inspection/repair logs. The requested logs were received on September 17, 2018. The facility has received remedial benefits and is required to maintain pollution liability insurance coverage.

Dr. So translated on behalf of Ms. Shin. She stated she thought she only needed to provide a current compliance program certificate and did not provide the inspection/repairs logs by the date requested. NDI had previously helped her with the paperwork but now she is doing it on her own.

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

C. Prehop Cleaners, 1280 South Finley Road, Lombard, IL. Site #0001823

Mr. Eriksen reviewed background information with the council noting Mr. Kim has operated the facility since November 2017. The policy was cancelled on August 6, 2018 for failure to provide a current compliance program certificate. The requested compliance program certificate was received on September 21, 2018. The facility had an open remedial claim and is required to maintain pollution liability insurance coverage.

Dr. So translated on behalf of Mr. Kim. He stated this was his first time renewing the insurance coverage and he thought the Perc Operator Training certificate was the same as the compliance program certificate. Once he understood the difference, he provided the fund a current compliance program certificate

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

OPRATIONAL ISSUES

A. Legislative Update

Mr. Eriksen reviewed his memo and noted the only update to it was the filing of SB3632 on November 7, 2018 by Senator Martinez. SB3632 is a mirror image of Senator Murphy's SB2443, which extends the sunset date and the remedial program financial responsibility requirement to January 1, 2030. The bill exempts the Fund from sweeps, administrative charge-backs, and any other fiscal maneuver that would transfer money out of the Fund to any other state fund.

Mr. Kang distributed and reviewed with the council two handouts. Mr. Eriksen read out loud Mr. Kang's summary sheet of financial data and legislative issues. Mr. Eriksen reviewed claim information previously presented at the August 17, 2018 council meeting. Dr. So provided a history of the remedial claims closed over the past 20 years and the status of the remaining open remedial claims.

A general discussion of the estimated remaining cleanup costs ensued. Mr. Eriksen reviewed current financial data noting at current revenue levels, approximately $1 million is available for cleanup annually.

Mr. Polak requested further discussion on this topic be tabled until the next meeting. Mr. Dunham requested a list of the 151 open remedial claims and a list of the claims closed. A general discussion regarding timing of introducing new legislation ensued. Mr. Kang stated he wants to get the industry associations together to discuss possible legislation. Mr. Eriksen emphasized the need for a unified position by the drycleaning industry to maximize the potential to successfully pass new legislation.

B. Legal Representation

Mr. Eriksen noted at the conclusion of the August 17, 2018 council meeting, the council was at a standstill on the issue of legal representation. Two issues have arisen since that council meeting requiring the need for legal counsel. He summarized his discussion with the Attorney General's office regarding provision of day-to-day legal counsel.

Mr. Eriksen referenced the biography, resume and cover letter of Ms. Emily Masalski. Ms. Masalski has extensive environmental experience and has worked with various governmental agencies at the state, local and federal levels.

General discussion ensued on the need for legal counsel and the annual hours of support needed.

Mr. Bredenkamp made a motion to hire Ms. Masalski. Mr. Polak and Mr. Bredenkamp voiced their opinion they did not prefer to switch legal counsel at this time but if a change is needed to get the necessary council votes to hire legal counsel, they support the hiring of Ms. Masalski. Mr. Polak seconded the motion. On a roll call vote the motion passed by a vote of 4-3 with Mr. Polak, Mr. Bredenkamp, Mr. Dunham and Mr. Daniel Kim voting in favor of the motion and Mr. Kang, Ms. Jones, and Mr. Young Kim voting against the motion.

Mr. Bredenkamp excused himself from the meeting at 11:36 a.m. Mr. Polak recessed the meeting for a brief break and reconvened the meeting at 11:45 a.m.

C. Draft Compliance Program Rules

The governor's office provided questions and comments on the draft rules to the administrator on October 9, 2018. Mr. Eriksen cited a couple of questions raised by the governor's office requiring discussion with legal counsel.

After a brief discussion it was the consensus of the council to defer further action on the draft rules until it is determined if legislation will be enacted to extend the Fund's sunset date. The council agreed to revisit this issue at the scheduled March 8, 2019 council meeting.

D. Potential Meeting Dates for Calendar Year 2019

Mr. Eriksen reviewed potential meeting dates. It was the preference of the council to move from Fridays to Wednesdays. Mr. Eriksen will revise the schedule and email it to the council for their review and comment.

APPROVAL OF PROGRAM BILLINGS
 

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

1. Williams & Company Consulting, Inc. $ 51,786.00*

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

2. Williams & Company Consulting, Inc. $ 44,852.00*

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

3. Williams & Company Consulting, Inc. $ 48,792.00*

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

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

  REVIEW OF MONTHLY ACTIVITY REPORTS AND FINANCIAL STATEMENTS

Mr. Eriksen reviewed the monthly activity report for October 31, 2018 noting 754 licenses were in effect at the end of the month. Three hundred eighty (380) active dry-cleaning facilities had pollution liability insurance coverage with the Fund. Open claims totaled 151, with estimated reserves of $16.4 million.

The September 30, 2018 financial statements reflect a fund balance of $799,119. Year-to-date claim reimbursement requests approved for payment total $365,934.

  CLAIM PAYMENTS IN EXCESS OF $75,000

Mr. Eriksen noted there were three (3) claim payment requests for Council review

  1. Russell's Dry Cleaners, Naperville, IL; Claim #50155, Site #0002072
 

Dr. So reviewed background information on the facility noting the budget request is for costs relating to installation of a vapor barrier at the site. The administrator requested budget approval of $44,000.

On a motion by Mr. Dunham and a second by Mr. Kang, the council approved the administrator's budget request of $44,000 by a vote of 6-0.

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

Dr. So reviewed background information on the facility noting the budget request is for costs relating to soil gas sampling, reporting and groundwater ordinance notification. The administrator requested budget approval of $12,500..

On a motion by Mr. Young Kim and a second by Mr. Kang, the council approved the administrator's budget request of $12,500 by a vote of 6-0.

  3. Fabricare Chicago, Inc., Chicago, IL; Claim #50331, Site #0001742:
 

Dr. So reviewed background information on the facility noting the budget request is for costs relating to installation of a building control technology (BCT), site restoration and NFR letter request. The administrator requested budget approval of $48,000.

On a motion by Mr. Young Kim and a second by Mr. Kang, the council approved the administrator's budget request of $48,000 by a vote of 6-0.

 

OTHER ISSUES
The next council meeting is scheduled for January 16, 2019.

 

PUBLIC COMMENT PERIOD

Mr. Polak asked for public comment. There was none.

 

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 6-0 to go into closed session at 12:15 p.m. to discuss matters of potential litigation.

The Council adjourned from closed session at 12:25 p.m. On a motion by Mr. Kang and a second by Mr. Polak, the Council voted 6 - 0 to reduce the 2012 through 2017 license late payment penalty for Joy 1 Hour Cleaners from $9,990 to $6,300 with the reduced late fees being paid in monthly installments over 12 months.

There being no further business, on a motion by Mr. Dunham and a second by Mr. Polak, the Council meeting adjourned at 12:28 p.m.

Respectively submitted,


H. Patrick Eriksen
Administrator
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