Mike KehoeGovernor
The University Club
University of Missouri Campus
Columbia MO
Start Time: 9:31 a.m.
Since a quorum was not yet present, Chairman McNutt asked Tom Kolb for an update on the leak in his diesel tank. Mr. Kolb summarized the situation, indicating repairs to both ASTs that store ULSD were necessary because of corrosion, even though the tanks are only about seven years old.
Renee Slusher and Melvin Schebaum arrived at the meeting, making a quorum. Chairman McNutt called the meeting to order.
Trustees Present:
Don McNutt, Chairman
Jim Ford, Vice Chairman
Harry Bozoian
Tom Kolb
Danny Opie
Melvin Schebaum
Renee Slusher
Curtis Wall (for John Albert)
Absent:
Ski Mariea
Tom Pfeiffer
Staff Present:
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
H. Patrick Eriksen, Williams & Company Consulting
Diane James, Executive Assistant
Patrick J. Vuchetich, Williams & Company Consulting
David Walters, Williams & Company Consulting
Others Present:
Ken Koon, Tanks Section, Hazardous Waste Program, MDNR
David Lamb, Hazardous Waste Program, MDNR
Ron Leone, Executive Director, MPCA
Jack McManus, Chief Counsel, Agriculture and Environment Division, AGO
Mary Mulhearn, Attorney General’s Office
Heather Peters, Compliance/Enforcement Section,
Hazardous Waste Program, MDNR
Jane Taylor, Taylor & Mulder
Joanna Trachtenberg, Attorney General’s Office
Review and Approval of Minutes – July 24, 2013 Open Session Meeting
Tom Kolb moved to approve the minutes from the July 24, 2013 Board meeting. Jim Ford seconded. Motion carried.
Chairman McNutt reported that MDA had recently filed a final rule authorizing the sale of E15 and the MPCA has asked the Joint Committee on Administrative Rules to hold a hearing on the rule. Mr. Leone explained that MPCA’s position is that the decision to allow sale of E15 should be made by the state legislature, not by an agency issuing a rule, and that issues regarding equipment compatibility and consumer protection need to be addressed in the decision-making process.
[Harry Bozoian arrived at meeting.]
Monthly Reports
Chairman McNutt reviewed the monthly financial statements and activity reports provided in the meeting materials.
Actuarial Report
The Chairman then introduced Jane Taylor from Taylor & Mulder to present their actuarial analysis. Ms. Taylor reviewed their findings, noting that they project lower future liabilities than the previous actuary.
Melvin Schebaum inquired whether they had assumed a “rush” of claims prior to the 2020 sunset date; Ms. Taylor said they did not.
Ms. Taylor mentioned some features of “large-loss claims” and suggested her firm could do additional analyses of those, if desired. There also was discussion about how many remedial claims the Fund is liable for that have not yet been reported; Ms. Taylor said her firm had briefly reviewed the Trustees’ old “STIMS database,” but there would need to be additional research done to compare that data with DNR’s and PSTIF’s records in order to make a better estimate. Ms. Eighmey reminded the Board of the similar effort undertaken by Williams & Company some years ago and said she would review and discuss Taylor & Mulder’s ideas on whether the previous analysis can be refined or improved.
Harry Bozoian asked how the PSTIF cash balance is invested; Ms. Taylor responded that it is invested by the Missouri Treasurer according to statutory limitations. Tom Kolb asked what her overall view of the PSTIF is; she responded it is well-reserved and well-operated.
Ms. Eighmey noted it has been helpful to have a “new set of eyes” review all of PSTIF’s data.
Melvin Schebaum moved to accept the actuarial report. Renee Slusher seconded. Motion carried.
DNR Issues
Chairman McNutt briefly reviewed the summary related to DNR’s activities, noting none required any action, and invited questions or comments; there were none. He said he is pleased to hear the Department and PSTIF staff are working together on a plan to expedite cleanups and looks forward to that presentation.
EPA Issues
FY12 Fund Soundness Review – Chairman McNutt briefly reviewed the information provided in the Trustees’ notebooks; there were no questions.
New UST Rules – Chairman McNutt reported EPA’s schedule for issuing its new UST rules has been delayed until April 2014.
FY15 Funding Requests
Chairman McNutt reminded Trustees that the funding requests presented for their consideration are for the fiscal year that starts July 1, 2014. He asked the Trustees to take action on each request in the order presented in the meeting materials.
Department of Natural Resources – He then introduced David Lamb to present the DNR’s funding request for FY15. Mr. Lamb reviewed the information, noting that the list accompanying the Department’s letter had been revised to more clearly state which activities cannot be funded with PSTIF monies.
Jim Ford asked what can be done to expedite the filing of “remedial claims,” as discussed by the actuary. Mr. Lamb noted that the Department cannot compel these property owners to check for petroleum impact and – until a petroleum release is confirmed at the site – there is little anyone can do.
Don McNutt asked several questions about the figures, noting the Board had increased its financial support of the Department by $105,000 last year to offset a reduction in federal funds of $138,000, but since EPA is now going to provide $330,000 in additional funding for tanks work, it seems the Department should be able to reduce its dependence on the PSTIF by at least $112,000.
Mr. Lamb responded that approximately $205,000 of the new federal money is earmarked for hiring contractors to do field work at sites where there is no responsible party or the responsible party is financially unable to do the cleanup, and approximately $125,000 of the federal money will likely be used to pay for DNR staff work.
Mr. McNutt noted that in FY13, the Department spent $700,000 less than projected for tanks work and asked what happens to the federal money that is unspent. Mr. Lamb responded that it stays in the DNR’s account; he noted that some of the carryover is committed for projects that were begun in FY13 but will not be completed until FY14.
Chairman McNutt asked why some of the federal money that is carried over from the prior year cannot be used to reduce the Department’s request to the PSTIF Trustees; Mr. Lamb said the Department usually doesn’t have much federal money left at the end of the fiscal year and that staffing vacancies contributed to the unusually large unspent balance at the end of FY13. He reiterated that the Department believes its request to the Board for FY15 is reasonable.
Jim Ford moved to approve the Department’s funding request for FY15 of $1,059,765, plus fringe benefits and any COLA added by the Legislature and Governor, with the caveat that discussions be held during FY14 to revise the now-obsolete 1999 DNR/PSTIF MOU, so it can be updated prior to next year’s budget decision. Tom Kolb seconded. Motion carried.
Department of Revenue – Chairman McNutt noted the request is the same as in previous years and that the PSTIF funds the equivalent of one FTE to collect and deposit the transport load fee. Tom Kolb moved to approve the Department of Revenue’s funding request for FY15 of $28,378 for salary, expenses and equipment, plus fringe benefits and any COLA added by the Legislature. Curtis Wall seconded. Motion carried.
Attorney General’s Office – Because there is a change to the AGO’s request this year, the Chairman asked Ms. Eighmey to discuss this request. Ms. Eighmey reminded the Trustees that historically, the PSTIF has funded 0.5 FTE; she said the AGO is asking for funding to support 1.5 FTEs in FY15, due to supporting its efforts to recover funds from certain claimants; she also reported the AGO has agreed to enter into a MOU with the Trustees to clarify both parties mutual understanding about how the funds will be used.
Melvin Schebaum moved to approve the Attorney General’s Office funding request for FY15 for $79,360 for salaries, plus fringe benefits and any COLA added by the Legislature and Governor, contingent on completion of a mutually-agreeable MOU. Jim Ford seconded. In response to a question from Tom Kolb, Ms. Eighmey clarified that the additional staffing is being requested to investigate and possibly prosecute wrongdoing, not for defense of the lawsuit recently filed against the Trustees. Motion carried.
Office of Administration – Chairman McNutt said the request from OA would not be available until the first quarter of next year, so action to approve expenditures for “central state services” will be deferred.
PSTIF Board of Trustees – Chairman McNutt observed that the figures recommended by the Executive Director are equal to current year appropriations. Renee Slusher moved to request $192,943 for salaries, plus associated fringe benefits and any COLA enacted; $2,095,354 for expense and equipment; $20,000,000 for claims; and $70,000 for refunds of participation fees, for an estimated total of $22,358,297. Jim Ford seconded. Motion carried.
Administrative Issues
FY13 Audit – Chairman McNutt reported that the FY13 audit was underway and a report will be presented at the Trustees’ next meeting.
Report on National Tanks Conference for 2013 – Chairman McNutt said that he was pleased Missouri had such good representation at this conference. He thanked Danny Opie for his willingness to share his knowledge of the trucking industry and diesel exhaust fluid. Mr. Opie opined that the meeting was great and he was impressed with how well Missouri’s regulatory agency and fund compares to other states. He said he was pleased to observe that Ms. Eighmey is very well known at the national level.
Chairman McNutt asked Heather Peters if she would like to make any comments about the conference. Ms. Peters thanked the Board for supporting Missouri’s participation in the event and commented that Ms. Eighmey had done a fantastic job representing the Board on the conference planning committee for many years. She also thanked David Walters and Danny Opie for their presentations, which were well-received.
Ms. Eighmey added that Ms. Peters also did a great job with her presentation, and that the conference is the best opportunity to stay apprised of developments in our field.
Equipment Technicians’ Workshops – It was noted that plans are progressing for this collaborative effort among the three state agencies, Williams, and Rounds, and that the workshops will be held in December in four locations.
Billings – The Chairman then asked if Trustees had questions on any of the billings listed in the meeting materials; there were none.
2014 Board Meeting Dates – Chairman McNutt asked the Trustees to check the proposed meeting dates, noting that since there is one vacancy on the Board and one Trustees is trying to retire from the Board, it’s important for the others to attend as many meetings as possible. He asked if there is a preference for meeting in Columbia or Jefferson City; the consensus was that the proposed schedule and locations were satisfactory.
Chairman McNutt thanked those in attendance for coming and reminded them that the next Board Meeting is scheduled at the Governor Office Building in Jefferson City on November 20.
He then asked the Board to go into closed session to:
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. Tom Kolb seconded. A roll call vote was taken. Motion carried without dissent.
Chairman McNutt adjourned the open session meeting at 10:41 a.m.