January 19 , 2005 Meeting Minutes

	MINUTES
	DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND COUNCIL of ILLINOIS HOLIDAY INN SELECT NAPERVILLE, ILLINOIS JANUARY 19, 2005
	John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois telephonic meeting to order at 11:08 a.m. A quorum was present. Roll call was taken with the following members present:
	John Bredenkamp David Gibson (joined the meeting at 11:24 a.m.) Young B. Kim Jerry Lewicki John Polak Also present were: H. Patrick Eriksen, Program Administrator's Office John McCarthy, Program Counsel C. Michael Perkins, Program Administrator's Office
	PRELIMINARY BUSINESS
	The minutes from the December 15, 2004 Council meeting were reviewed. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the minutes were approved by a vote of 4-0.
	APPROVAL OF PROGRAM BILLINGS
	Mr. Eriksen noted that the following bills were before the Council for their review and action:
	1. Williams & Company Consulting, Inc $ 63,780.00 Standard flat fee billing for December 2004, licensing, underwriting, claims processing and site inspections.
	2. John J. McCarthy $ 2,235.00 Professional legal services to the Council for the period of December 8, 2004 through January 11, 2005.
	3. Williams & Company Consulting, Inc $ 64,412.00 Standard flat fee billing for November 2004, licensing, underwriting, claims processing and site inspections.
	On a motion by Mr. Bredenkampand a second by Mr. Lewicki, the bills were approved by a vote of 4-0.
	REVIEW OF ACTIVITY REPORT AND FINANCIAL STATEMENTS
	Mr. Eriksen reviewed the December 31, 2004 activity report with the Council, noting that there were 1,405 licenses and 882 insurance policies in effect. To date, over 700 drycleaners have either obtained budget approval to test their facility or have tested their facility for contamination. Estimated reserves on open active remedial claims totaled $24.5 million with outstanding cost approvals totaling $3.5 million. He noted that at some date in the future, depending upon the projected cash flow and the speed at which the drycleaners begin cleanup, it may be necessary to prioritize the claims. The Fund balance as of December 31, 2004 was $5,657,355. As of the end of December, only approximately 50% of the estimated 2005 license fees had been paid. Excess revenues for the fiscal year exceed expenditures by $555,773.
	REVIEW OF CLAIM BUDGETS IN EXCESS OF $75,000
	Mr. Eriksen noted that there were two (2) claims requiring Council review and action.
	1.	Plum Grove Cleaners in Oak Park , Illinois
		Mr. Perkins reviewed background information with the Council on the facility, noting that approximately 25 borings have been advanced and 14 of those borings converted to monitoring wells. It has been determined that both the soil and groundwater at the site are impacted by tetrachloroethene, trichloroethene and its respective daughter products, including vinyl chloride. Mr. Perkins noted that Illinois Environmental Protection Agency (IEPA) had issued a Notice of Violation on June 17, 2004 due to multiple requests of the owner of the adjacent restaurant property. The Notice of Violation focused on the following: •  Groundwater pollution occurred due to the release of PCE at the site. •  PCE has been released into the soil and caused pollution. Mr. Perkins reviewed the requested action associated with the violation. The environmental consultant has prepared two (2) remedial action plans, one for the facility and one for the adjacent restaurant, indicating that No Further Remediation (NFR) letters will be requested for both properties. NFR letters will be issued on the property provided that the existing exposure pathways can be excluded. The key issue is plugging the existing water supply wells and hooking up the drycleaning facility and the adjacent restaurant to the municipal water supply system. Mr. Perkins reviewed previous Council action regarding this facility and noted that the budget approval request submitted by the consultant is for a total of $51,990. The Administrator has added on an additional contingency cost of 20%, for a total request of $62,390. This includes the excavation of impacted soil at the restaurant site in the amount of $2,820, which the Administrator does not feel is necessary. The Administrator is requesting total budget approval of $59,000, including the contingency cost of $10,400. Discussion focused on the issue regarding the Notice of Violation and whether the Fund should reimburse for consulting time associated with the Notice of Violation. The Administrator's office indicated that the Notice of Violation involved eliminating the groundwater exposure pathway and that the violation could not be rectified in the given time period as the most feasible way to eliminate the exposure pathway was connection of the two (2) facilities to the municipal water well. That process took more than the 90 days allotted by IEPA to resolve the Notice of Violation. After additional discussion by the Council, on a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council approved the proposed budget of $62,390 by a vote of 5-0. Mr. Perkins indicated that the Administrator was only requesting a $59,000 budget approval. Mr. Lewicki made a motion to amend the budget authority to $59,000. It was seconded by Mr. Kim and approved by a vote of 5-0.
	2.	L-Nor Cleaners in Mt. Prospect, Illinois
		Mr. Perkins reviewed background information with the Council, noting that five (5) site investigations have been performed to date at this facility. Site investigations have encountered drycleaner solvent contamination over an increasingly larger area and had been performed to identify the horizontal and vertical extent of the drycleaner solvent impact to the soil and groundwater and identify the extended volume of soil impacted with drycleaner solvent at PCE concentrations above the 240 parts per million (ppm) Tier-1 Csat concentration. To date, a total of 42 borings have been advanced with 15 of the borings converted to 12 monitoring wells and three (3) temporary monitoring wells. Investigations have shown that the saturated soil was found to extend towards the Northwest Highway 's right-of-way. Additional site investigation will be necessary to delineate the extent of PCE soil contamination above the Csat concentration both onsite and within the Northwest Highway right-of-way for future remediation evaluation purposes. The Administrator is requesting additional budget approval totaling $33,590 for the additional site investigation, including offsite Csat delineation, preparation of the focused site investigation report and the remedial objectives report, disposal of contaminated soil borings and a 20% contingency of $5,590. On a motion by Mr. Lewicki and a second by Mr. Kim, the Council approved the budget estimate of $33,590 by a vote of 5-0.
	OTHER ISSUES AS PRESENTED
	Mr. Eriksen confirmed with the Council that the next tentative meeting date would be Wednesday, February 23, 2005. At that time, a representative of Illinois EPA would be in attendance to review the “green solvent” report, a copy which was enclosed for the Council's review. Mr. Eriksen stated that he had another issue for Council review and consideration. It involves the issue of collecting the second semi-annual insurance premium installment of $700 where the owner/operator can no longer be located. Mr. Eriksen referenced the situation exists where the Fund is processing the final remedial action reimbursement payment for a facility that is getting a No Further Remediation letter. The environmental consultant could not locate the drycleaner owner/operator and the Council has previously approved the Fund directly reimbursing the environmental consultant subject to documentation of efforts to contact the claimant and an indemnification letter to the Fund. Mr. Eriksen stated in this case, there is $700 due the Fund for the second semi-annual insurance premium. Should this premium be offset against the remedial payment that will be made directly to the environmental consultant? After discussion by the Council, on a motion by Mr. Polak and a second by Mr. Lewicki, the Council agreed that the $700 should not be taken from the environmental consultant's reimbursement request in as much as they had conducted the work and the amount owing was owed by the drycleaner not by the consultant. Mr. McCarthy concurred with this approach and it was approved by a vote of 5-0. Mr. Eriksen noted that Dr. Chweh had resigned his position with the Council, effective December 30, 2004.
	PUBLIC COMMENT PERIOD
	Mr. Peter Marberry addressed the Council requesting a copy of the “green solvent” report. In addition, he asked specific questions regarding the two (2) budget approvals and stated he found it hard to believe that the Fund was spending monies in excess of $100,000 and not removing any contamination from the facility. Mr. Eriksen reviewed that the site in question would be closing under Illinois EPA's TACO guidelines, which allows for the elimination of exposure pathways and leaves the contamination in place as long as the risk to human health and public safety is eliminated. Public comment focused on a budget line item totaling $3,000 for consulting time for meetings and correspondence with IEPA. Mr. Marberry demanded that the Administrator provide detailed costs of all site investigations done to date. Mr. Eriksen replied that the Administrator codes and captures reimbursement costs by invoice type. He will provide the Council this information at the next meeting. Mr. Polak stated the Council would review this information and determine if new or a different level of detail information is needed. Mr. Ken Sink addressed the Council stating that he felt it was a waste of Fund's money to do additional testing at the L-Nor site because if the contamination does extend under the Northwest Highway, chances are the contamination will not have to be cleaned up. Regarding the Plum Grove Cleaners, he felt the drycleaner should have to stand the cost of hooking up to the municipal water service as he was getting a “freebie” benefit from the Fund. Mr. Eriksen explained at length that it was most cost effective method to hook both of the facilities up to the municipal water wells as it was allowing for the elimination of an exposure pathway. The other alternative would be to remediate the contaminated drinking water wells, which would cost substantially more than the cost to hook both facilities up to municipal water wells. Ms. Sue Kratz, Executive Director of Land of Lincoln , stated that the Council needs to hold town hall meetings to inform the drycleaners of the current status of the Fund. Mr. Eriksen responded that he would be more than happy to participate in the town hall meetings but would request that drycleaners and their associations help solicit members to attend such meetings because most of the previous town hall meetings have been very poorly attended. Mr. Darrell Rickey requested that the Council look at some mechanism to help the drycleaners finance the $15,000 deductible that they will incur if they have to do both site investigation and remediation at their facility. There being no further business, the Council meeting adjourned at 12:39 p.m.
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