November 20, 2013 Meeting Minutes - Missouri Petroleum Storage Tank Insurance Fund
Michael L. ParsonGovernor

November 20, 2013 Meeting Minutes

Governor Office Building
Room 470

Jefferson City,
Start Time:  9:30 a.m.

Trustees Present:
Don McNutt, Chairman
Jim Ford, Vice Chairman
Tom Kolb
Ski Mariea
Danny Opie
Tom Pfeiffer
Melvin Schebaum
Renee Slusher

John Albert

Staff Present:
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
Dan Henry, Williams & Company Consulting
Diane James, Executive Assistant
Patrick J. Vuchetich, Williams & Company Consulting
David Walters, Williams & Company Consulting

Others Present:
Stacy Banks, Special Agent, Federal Bureau of Investigation
Jeffrey Blaylock, Ford, Parshall & Baker
Carey Bridges, Geological Survey Program, DGLS, MDNR
Lindsay Graves, Graves and Associates, CPA’s
Lynn Graves, Graves and Associates, CPA’s
Ken Koon, Tanks Section, Hazardous Waste Program, MDNR
Ron Leone, Executive Director, MPCA
Heather Peters, Compliance/Enforcement Section,
Hazardous Waste Program, MDNR
Ryan Rowden, Missouri Petroleum Council
Aaron Schmidt, Division of Environmental Quality, MDNR
Jason Smith, Environmental Works, Inc.

Chairman McNutt called the meeting to order.  Marty Miller was introduced as the DNR Director’s new designee on the Board and several people in the audience were introduced.

Review and Approval of Minutes – September 24, 2013 Open Session Meeting
Jim Ford moved to approve the minutes from the September 24, 2013 Board meeting.  Melvin Schebaum seconded.  Motion carried.

Monthly Reports
Chairman McNutt asked if there were any questions or comments from Trustees regarding the monthly financial statements, activity reports or large-loss claims information provided in the meeting materials; there were none.

Presentation of FY13 Audit
Ms. Eighmey introduced Lynn Graves from Graves and Associates, CPA’s, to present their audit of the Fund’s FY13 finances, noting their draft report was included in the Trustees’ meeting materials.  Mr. Graves summarized the report; a brief discussion followed, including conversation about the fraud that had been discovered in 2012.

Tom Kolb moved to accept the PSTIF FY13 financial audit.  Ski Mariea seconded.  Motion carried.

Fraud Case
Chairman McNutt asked Ms. Eighmey to report on the fraud case, whereupon she introduced Special Agent Stacy Banks from the FBI and summarized the basic facts, including how the problem was discovered, the subsequent investigation, and the outcome.  She emphasized that Ms. Banks, Paul Schlup from the Cole County Prosecuting Attorney’s office, and Larry Miller, Assistant District Attorney, all played key roles in obtaining a guilty plea and full restitution.  Commenting that it was an unpleasantness experience for the PSTIF, Ms. Eighmey nonetheless expressed satisfaction with the outcome and thanked everyone for their diligence and hard work.

Ms. Banks provided additional explanation of the case, noting she had never seen a case where the perpetrator’s assets were frozen so quickly and effectively as was done by Mr. Schlup.  She thanked the Fund staff and Williams’ staff for their prompt and thorough responses and assistance assembling the myriad of documents needed to document the fraud, noting that the Fund’s files are well-organized.

Review of FY13 UST Losses
Chairman McNutt then invited David Walters to make a presentation on UST leaks that occurred in FY13.  Mr. Walters did so, using a presentation filed with these minutes.

DNR Issues
RBCA Rules and Guidance – Chairman McNutt asked if there were any questions or comments on this subject.  Marty Miller mentioned that DNR staff had asked him to point out that there may still be some issues that were not resolved by the recent rulemaking.  Mr. McNutt affirmed that the Trustees had always acknowledged there should be an “open door” for discussion of any problems or concerns; he noted that the agreement was reached after painstaking involvement of many people and he believes there should not be much that remains undone.

Ms. Eighmey added that she and Aaron Schmidt are communicating regularly, which will provide an avenue for any new issues or concerns to be raised.

Backlog Plan – Chairman McNutt commented that he was glad to hear there has been progress on this plan and is looking forward to seeing that in January.

Air Pollution Rules – Chairman McNutt asked if there were any questions regarding their air pollution rules.  He commented that he was aware that Ron Leone will be hosting a meeting the following week and that because this has the potential to affect a lot of MPCA members in St. Louis, he expects more information will be provided at future meetings.

Administrative Issues
Equipment Workshops – Chairman McNutt commented that he hoped there would be good attendance at these workshops and expressed appreciation to the DNR and Department of Agriculture for cosponsoring these workshops with the PSTIF.

AGO/PSTIF MOU – Chairman McNutt said a draft copy had been distributed to the Trustees today.  Ms. Eighmey said she had hoped to have a final version by today’s meeting but did not receive the draft until recently; she has asked the AGO to add a commitment about regular reporting on the status of their work, which the AGO has agreed to do.  She committed to presenting a final version for approval at the January meeting.

Billings – The Chairman then asked if Trustees had questions on any of the billings listed in the meeting materials; there were none.

2014 Meeting Dates and Locations – Chairman McNutt asked Trustees to mark these dates on their calendars for 2014.

Chairman McNutt thanked those in attendance for coming and reminded them that the next Board Meeting is scheduled at The University Club/Alumni Center on MU’s Campus in Columbia on January 15.

He then asked the Board to go into closed session to:

  • Review and approve minutes from the September 24, 2013 closed session meeting;
  • Hear from counsel on various litigation matters, including a subrogation settlement and a recommendation regarding a third-party claim; and
  • Discuss and take action on a contract.

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.  Ski Mariea seconded.  A roll call vote was taken.  Motion carried without dissent.

Chairman McNutt then adjourned the open session at 10:55 a.m.


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