Michael L. ParsonGovernor
The University Club
University of Missouri Campus
Columbia MO
Start Time: 9:31 a.m.
Chairman McNutt called the meeting to order. He introduced Curtis Wall as the Department of Agriculture’s designee for this meeting, since John Albert could not attend.
Trustees Present:
Don McNutt, Chairman
Jim Ford, Vice Chairman
Harry Bozoian
Ski Mariea
Danny Opie
Melvin Schebaum
Renee Slusher
Curtis Wall (for John Albert)
Absent:
Tom Kolb
Tom Pfeiffer
Staff Present:
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
Dan Henry, Williams & Company Consulting, Inc.
Diane James, Executive Assistant
Pat Vuchetich, Williams and Company Consulting
David Walters, Williams & Company Consulting
Others Present:
Ken Koon, Tanks Section, Hazardous Waste Program, MDNR
Ron Leone, Executive Director, MPCA
Jack McManus, Chief Counsel, Agriculture and Environment Division, AGO
Mary Mulhearn, Attorney General’s Office
David Pate, Midwest Environmental Consultants
Heather Peters, Compliance/Enforcement Section,
Hazardous Waste Program, MDNR
Joanna Trachtenberg, Attorney General’s Office
Approval of Minutes – March 20, 2013 Open Session Meeting
Jim Ford moved to approve the minutes from the March 20, 2013 Board meeting. Ski Mariea seconded. Motion carried.
Monthly Reports
Chairman McNutt asked if there were any questions regarding the financial statements, monthly activity reports or large-loss claims included in Trustees’ meeting notebooks. It was noted that claim payments will likely not reach the projected amount for FY13.
Jim Ford asked for and received a short explanation of the large-loss claim from 1987 described in the notebook; Ms. Eighmey identified it as the Blue Harbor claim and provided additional details.
Legislative Report
Chairman McNutt asked Ms. Eighmey to review this report.
Ms. Eighmey summarized the outcome of the 2013 legislative session, noting that although several bills were introduced that would have impacted the PSTIF, it appears none of them passed.
(Melvin Schebaum arrived at the meeting.)
Ms. Eighmey also reported that the budget bills enacted by the Legislature contained the Board-approved appropriations authorizing the AGO, Department of Revenue, and DNR to spend money from the PSTIF, as well as the Board’s own appropriations.
Chairman McNutt invited Ron Leone to comment. Mr. Leone confirmed that Ms. Eighmey’s summary was on point and that the session was uneventful in terms of any bills being passed that affected the PSTIF, which is partly due to everyone’s ongoing diligence in watching legislative activity and conversing with legislators. He commented that Ms. Eighmey is well respected in the Capitol.
(Harry Bozoian arrived at the meeting.)
Accelerating Cleanups
Chairman McNutt invited Ms. Eighmey to review the memorandum in the Trustees’ notebooks; she noted several recent developments provide an opportunity for the DNR and the PSTIF to work together to accelerate the pace of cleanups, and that she intends to make this a priority over the next several months.
Chairman McNutt asked Harry Bozoian if he or any of his staff had anything to add; they did not.
Overview of Future Rulemakings Affecting UST Owners
Chairman McNutt noted EPA had proposed several new UST rules in 2011, and it is anticipated tank owners will learn in December what additional requirements EPA has decided to impose on them.
He said the PSTIF and MPCA had also been informed that, as a result of EPA’s pressure, DNR plans to change its rules so new USTs will have to be completely double-walled. He commented that the Board appreciates the lead time the Department of Natural Resources is giving tank owners in order to plan for this and that he hopes EPA will accept the DNR’s plan and schedule.
It was noted that, in addition to the new EPA requirements and the new DNR rule requiring double-wall USTs, owners and operators also will be required to implement the new Operator Training rule in the next couple of years. In addition, tank owners in the St. Louis area are dealing with costs and regulatory actions related to the decommissioning of Stage II equipment. And finally, every retailer in the state is dealing with issues related to ethanol, and the MDA may promulgate a rule regarding the sale of E15.
There was discussion about these issues; the need for all government agencies to collaborate and be aware of how UST owners/operators are impacted by various agencies’ actions was emphasized.
Update – DNR Issues
Chairman McNutt briefly reviewed the various DNR issues summarized in the meeting materials.
Administrative Issues
Claims Management – Chairman McNutt complimented David Walters on the claims summaries being provided to some companies with numerous claims. Ski Mariea asked why the report was prepared; Ms. Eighmey responded that when multiple adjusters handle claims for the same company, there may be a lack of consistency or coordination, and that Williams has designated one contact person to coordinate with some of these companies. She said some companies also appreciate the help it provides them in managing their claims.
Report on Advisory Committee Meeting – Chairman McNutt asked if there were any questions on the information regarding the Committee’s recent meeting; there were none.
EPA Fund Soundness Review – It was noted EPA has never finalized the FY12 review.
FY14 Inspections – Chairman McNutt expressed appreciation to OA and DNR for their assistance in renewing the inspections contract with Rounds and Associates.
Billings – Chairman McNutt invited questions on the billings listed in the meeting materials; there were none.
National Tanks Conference – Chairman McNutt thanked Danny Opie for his willingness to speak on Diesel Exhaust Fluid at the National Tanks Conference in Denver and asked the Board to approve his out-of-state travel expenses. Jim Ford moved to approve payment of Mr. Opie’s travel expenses. Ski Mariea seconded. Motion carried.
Claim Appeal – Former Piasa Pantry #3 – Claim 51157
Chairman McNutt noted the claim appeal was purposely put last on the agenda because the appellant and his consultant had to travel some distance to attend the Board meeting. He then introduced Bill Schrimpf from Piasa and Joe Truesdale, his consultant from CSD, and invited them to join the Trustees at the table.
Joe Truesdale briefly summarized Piasa’s claim appeal. Pat Vuchetich then explained Williams’ decision to disallow certain costs.
(Jack McManus arrived at the meeting.)
The Trustees asked several questions regarding Piasa’s failure to request pre-approval of costs. Mr. Truesdale noted Piasa had originally used a different consultant on the project and that his firm was hired shortly after the DNR’s 2004 RBCA Guidance was issued.
There was discussion about the fact that CSD did submit a cost estimate for its first phase of work at the site in 2005, but no cost estimates were submitted for subsequent work. Mr. Schrimpf commented that at the time, he didn’t understand the different roles of the DNR and the PSTIF. Trustees queried Mr. Truesdale about delays in submitting plans and reports, even to the DNR.
It was clarified that the disallowed costs involved work done in 2008-2011, and that costs for a corrective action plan were pre-approved by the PSTIF in February 2012; corrective action is now underway and all parties anticipate that these corrective action costs will be reimbursed by the PSTIF.
Chairman McNutt thanked Mssrs. Schrimpf and Truesdale for making the trip to explain their appeal. He told them the Trustees would go into closed session to discuss the matter and they would receive a letter communicating the Board’s decision in the next few days.
Chairman McNutt reminded those present that the next Board Meeting would be at this same location on July 24.
Chairman McNutt then noted that the Board needed to go into closed session to:
- Discuss and vote on the claim appeal;
- Discuss and vote on contracts related to an actuarial study, the annual audit, and the operator training program; and
- Hear confidential communications from legal counsel and staff related to ongoing lawsuits, third-party claims, and subrogation demands.
Jim Ford moved that the Board go into closed session to discuss the matters identified by the Chairman, as authorized by Section 610.021, RSMo. Curtis Wall seconded. A roll call vote was taken. Motion carried without dissent.