February 12, 2019 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL OF ILLINOIS

COURTYARD CHICAGO SCHAUMBURG/WOODFIELD MALL HOTEL
SCHAUMBURG, ILLINOIS

FEBRUARY 12, 2019

  John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 1:10 p.m. A quorum was present. Roll call was taken with the following members present:
 

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

Also present were:

H. Patrick Eriksen, Program Administrator's Office
Emily Masalki, Legal Counsel
Dr. Juho So, Program Administrator's Office
Yong Kim, Program Administrator's Office

  PRELIMINARY BUSINESS
 

The minutes from the November 9, 2018 Council meeting were reviewed. Mr. Young Kim commented the minutes did not reflect Council approval for Mr. Kang to meet with the drycleaning industry on behalf of the Council to discuss possible legislative changes to the Fund. Mr. Eriksen stated the Council did not give Mr. Kang such authorization. After additional discussion, on a motion by Mr. Dunham and a second by Mr. Young Kim, the minutes were approved by a vote of 6-0.

  OPERATIONAL ISSUES

A. Legeslative Update

Mr. Eriksen noted two bills have been introduced to extend the Fund's sunset date. SB171 introduced by Senator Martinez extends the license fees and solvent taxes 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. Senator Murphy's SB1247 appears to be identical to SB171.

Mr. Kang distributed two handouts to the Council members containing information he compiled from his January industry meetings. The handouts summarized the views of numerous drycleaners, solvent distributors, the Illinois Dry Cleaners Association (IDA), and the National Drycleaner Institute (NDI). Mr. Polak asked Mr. Kang if the survey results included the opinions of the Korean American Drycleaner Association (KADA) and the Illinois Professional Drycleaners and Launders (IPDL). Mr. Kang responded they were invited to the meetings but they did not attend.

Mr. Steve In, representing KADA, commented Mr. Kang's survey does not include their members' opinions.

Mr. Dunham believes it is up to the Council to determine what the industry wants in terms of the future direction of the Fund and supported Mr. Kang's initiative in trying to determine what the industry wants. Mr. Polak responded it would be more transparent for the Council to invite the industry associations to a meeting and discuss the issues directly with them.

Mr. In commented KADA supports the extension of the sunset date as reflected in SB171 and SB1247.

Mr. Jeremy Chu, representing IDA, addressed the Council stating the industry needs to be open to all ideas to complete the remaining cleanups. IDA is supportive of a 10 year program extension provided changes are made to reduce cleanup and program costs.

A discussion ensued regarding whether the industry can unite to support legislation to extend the Fund's sunset date and whether a single Council member can represent the Council's position on proposed legislation. Ms. Masalski interjected the Council needs to determine their next step in collecting industry opinion on the proposed legislation in a transparent manner.

Mr. Jae Yoon, representing KADA, reconfirmed that KADA supports the existing senate bills and further legislative changes are not needed at this time.

Mr. Kang noted 73 claimants are no longer active drycleaners and are not paying into the Fund. Mr. Eriksen briefly summarized the cleanup status of these 73 drycleaning sites.

Mr. Polak made a motion that the Council solicit input from the three (3) industry associations (i.e. KADA, IPDL, and IDA) as to whether they support or oppose SB171 and SB1247, and whether they would like additional legislative changes. The motion was seconded by Mr. Daniel Kim. After additional discussion, by a roll call vote, the motion passed 6-0. Mr. Eriksen stated he would send a letter to KADA, IPDL, and IDA and request that each association provide their responses by the end of February 2019. Any comments received from KADA, IPDL, and IDA would be shared at the March 2019 Council meeting.

 

B. Solvent Classification - Clerane 180 Solvent

A solvent distributor has requested the Council classify a new solvent for licensing and taxing purposes. The safety data sheet (SDS, formerly MSDS) reflects the solvents primary ingredient is petroleum.

After general discussion by the Council, on a motion by Mr. Young Kim and a second by Mr. Daniel Kim, the Council approved the classification of Clerane 180 Solvent as a hydrocarbon solvent by a vote of 6-0.

C. Request for Appointment of special Assistant Attorey General for Administrative Hearings

Mr. Eriksen reviewed in recent years the Attorney General's Office had requested the Council recommend an individual to be appointed as a Special Assistant Attorney General (SPAAG) for Council related administrative hearings. He noted 106 appeals of the Council's decertification of the NDI Compliance Program in 2015 had been deferred until the completion of NDI's appeal. NDI's appeal was completed in September of 2018.

Ms. Masalski has previously served as a SPAAG for several other state agencies.

On a motion by Mr. Polak and a second by Mr. Kang, the Council voted 6-0 to request Ms. Masalski be appointed a SPAAG to represent the Council in administrative hearings for FY19.

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. $ 48,129.00*

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

2. Williams & Company Consulting, Inc. $ 55,016.00*

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

3. Williams & Company Consulting, Inc. $ 80,673.00*

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

On a motion by Mr. Young Kim and a second by Mr. Kang, 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 January 31, 2019 noting 428 licenses were in effect at the end of the month and 480 were licensed as of February 10, 2019. Three hundred seventy four (374) active dry-cleaning facilities have pollution liability insurance coverage with the Fund. Open claims totaled 146, with estimated reserves of $16.1 million.

The January 31, 2019 financial statements reflect a fund balance of $1,489,894. Year-to-date claim reimbursement requests approved for payment total $679,713.

  CLAIM PAYMENTS IN EXCESS OF $75,000

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

  1. Kustom Kleen Cleaners, Arlington Heights, IL; Claim #50158, Site #0001297:
 

Dr. So reviewed background information on the facility noting the budget request is for costs relating to a KMNO3 injection. The administrator requested budget approval of $37,500 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 $37,500 and waiver of the two bid requirement by a vote of 6-0.

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

Dr. So reviewed background information on the facility noting the budget request is for costs relating to a KMNO3 injection. The administrator requested budget approval of $37,500 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 $37,500 and waiver of the two bid requirement by a vote of 6-0

  3. Burchard Clothes Care, Park Ridge, IL; Claim #50136, Site #0002181:
 

Dr. So reviewed background information on the facility noting the budget request is for costs relating to soil, soil vapor and groundwater sampling. The administrator requested budget approval of $22,500.

On a motion by Mr. Dunham and a second by Mr. Young Kim, the Council approved the administrator's budget request of $22,500 by a vote of 6-0.

 

OTHER ISSUES
The next Council meeting is scheduled for Tuesday, March 5, 2019 beginning at 1 p.m.

 

PUBLIC COMMENT PERIOD
Mr. Polak asked for public comment. Jeremy Chu asked several questions regarding the monthly Activity Report statistics. Mr. Eriksen responded to the questions

Mr. Young Kim commented Bethel Cleaners in Rolling Meadows was required to conduct a new Phase II environmental assessment prior to the Fund issuing new insurance coverage. Mr. Eriksen stated he did not believe that to be the case but would research the issue.

 

PUBLIC COMMENT PERIOD

There were no issues for Closed Session.

Three being no further business, on a motion by Mr. Dunham and a second by Mr. Young Kim, the Council meeting adjoured at 3:14 p.m.

Respectively submitted,


H. Patrick Eriksen
Administrator
  Back to Top