May 23, 2012 Meeting Minutes

The University Club
University of Missouri Campus
Columbia, Missouri
Start Time:  9:33 a.m.

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

Absent:
John Albert
Danny Opie

Staff Present:
Dan Atwill, Atwill and Montgomery
Tim Duggan, Assistant Attorney General
Carol R. Eighmey, Executive Director
Dan Henry, Williams & Company Consulting, Inc.
Diane James, Executive Assistant
Patrick J. Vuchetich, General Claims Mgr, Williams & Company Consulting, Inc.

Others Present:
Jack McManus, Chief Counsel, Agriculture and Environment Division, AGO
Heather Peters, Compliance/Enforcement Section,
Hazardous Waste Program, MDNR

Chairman McNutt called the meeting to order.  He recognized Bob Clarke for his work as Claims Manager for the past six years and announced that Mr. Clarke had recently retired.  He conveyed the Board’s appreciation and wished him well in his retirement.

Approval of Minutes – March 14, 2012 -Open Session Meeting
Jim Ford moved to approve the minutes from the March 14, 2012 Board meeting.  Renee Slusher seconded.  Motion carried.

Monthly Reports
Trustees reviewed the financial statements and monthly activity reports.  Chairman McNutt asked Trustees to take note of the graph provided on large-loss claims.  Ms. Eighmey pointed out that – of the 226 claims that have or are expected to cost more than $250,000 – 81% of the total loss has already been paid out; however, she noted none of the oldest of these claims have ever been closed.

Legislative Report
Chairman McNutt asked Ms. Eighmey to review the legislative report with Trustees.  Ms. Eighmey reported all appropriations bills had passed, and that most of the bills highlighted in the previous meeting did not pass.  She said two similar bills aimed at reducing the regulatory burden were enacted; both require periodic review of all regulations every five years, which – if signed by the Governor – will require the Board to review its regulations.  She also noted the bill authorizing Kansas City to establish a land bank passed and may facilitate cleanup of old abandoned gas stations in the City.

(Renee Slusher left the meeting to attend to another matter.)

Melvin Schebaum inquired whether the proposal to sweep money from the PSTIF progressed very far through the legislative process; Ms. Eighmey said that, surprisingly, it was never even voted out of committee, even though the committee chairman favored the idea.

Chairman McNutt asked if there were any other questions or comments from Trustees on the legislative report; there were none.

Approval – FY13 CSCAP Expenditure
Chairman McNutt reported that the Office of Administration had provided a figure for central state services for the fiscal year beginning July 1, 2012, and has requested approval from the Board for this expenditure.

Tom Kolb moved to approve OA’s CSCAP expenditure for $136,958 for FY13.  Ski Mariea seconded.  After brief discussion, motion carried.

Updates – EPAct Implementation
The Chairman asked if there were any questions or comments from Trustees on the memo regarding communications to/from EPA on Missouri’s implementation of the Federal Energy Act.  He noted the Trustees will be asked to make a decision at their July 25, 2012 meeting whether to create and fund an UST Operator Training program.

(Renee Slusher returned to the meeting.)

A brief discussion on operator training followed, including whether federal funding is available, how much flexibility EPA will allow states to implement the requirement, the fact that the Board will have to write regulations to implement the requirement if it decides at the July meeting to create and fund a program, and what tank owners/operators’ feedback has been.

(Jack McManus arrived at meeting during this discussion.)

DNR RBCA Rules and Guidance
Chairman McNutt noted that Ms. Eighmey had summarized a recent request made by MPCA to the Hazardous Waste Management Commission (HWMC) regarding RBCA and that she is recommending the PSTIF Trustees send a letter to the Commission supporting MPCA’s request.

Ms. Eighmey credited Chairman McNutt with the substantial time and energy he has contributed to try and find a productive path forward on this issue.

Harry Bozoian thanked Mr. McNutt for his efforts, but recommended that the Board not send a letter at this point, noting that “high level officials” are giving attention to the issue and suggesting that more time be allowed for resolution before the Board sends formal correspondence.

Tom Kolb observed that the Board has been waiting a long time for resolution of the issue and suggested a letter from the Board might be helpful.

Chairman McNutt expressed support for the idea of a subset of the PSTIF Trustees meeting with a subset of the Hazardous Waste Management Commission.

Mr. Bozoian complimented Mr. McNutt’s efforts on this subject and said he thought everyone’s views were being adequately expressed.  Tom Pfeiffer asked whether the HWMC had responded to Mr. Leone’s request; Ms. Eighmey replied that it had not.

Melvin Schebaum asked what the relevance of the “sunset date” in the rules is.  Mr. Bozoian responded that, while it is understandable that owners/operators want to know what the cleanup requirements will be after 12/31/12, he believes everyone will simply agree to continue operating under the same rules and requirements after the sunset date passes.  Tim Duggan commented that if the HWMC were to eliminate the “sunset date” from its rules, as requested by MPCA, it would provide more predictability and stability for tank owners.  Mr. Bozoian expressed the hope that some resolution of the issue will be reached before 12/31/12.

Jim Ford expressed support for a meeting of some PSTIF Trustees and some HWMC Commissioners.  Mr. McNutt volunteered to participate in such a meeting.

Ultimately, it was agreed that, for the time being, the PSTIF Board would not send a letter and would continue to let Chairman McNutt engage in dialogue on the subject and keep the Board informed of developments.

Administrative Issues
Chairman McNutt reviewed the information in Trustees’ notebooks on the FY13 Inspectionsand the National Tanks Conference.  He invited questions; there were none.

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

Chairman McNutt reminded those present that the next Board Meeting is scheduled at The University Club on MU’s campus on July 25.

Jim Ford moved that the Board go into closed session to discuss and vote on matters related to legal actions, causes of action, litigation, and/or personnel issues pursuant to Section 610.021, RSMo.  Tom Kolb seconded.  A roll call vote was taken.  Motion carried unanimously.