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MINUTES |
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DRYCLEANER
ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS
HOLIDAY
INN SELECT - NAPERVILLE
NAPERVILLE, ILLINOIS
DECEMBER 1, 2010 |
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John Polak, Chairperson, called the Drycleaner Environmental Response Trust Fund Council of Illinois meeting to order at 10:10 a.m. A quorum was present. Roll call was taken with the following members present: |
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John Bredenkamp
Young B. Kim
Paul Kwak
Charles Kwon
Jerry Lewicki
John Polak
Also present
were:
H. Patrick Eriksen, Program Administrator's Office
John McCarthy, Program Counsel
Dr. Juho So, Program Administrator's Office
Yong Kim, Program Administrator's Office |
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PRELIMINARY
BUSINESS |
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The minutes from the October 13, 2010 Council meeting were reviewed. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the minutes were approved by a vote of 6-0. |
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OPERATIONAL ISSUES |
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A. |
Update on Clean Technology for Commercial Clothes Cleaning Task Force Meeting:: |
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Mr. Eriksen reported the Clean Technology Task Force for Commercial Clothes Cleaning had their fourth meeting on November 30, 2010. The primary focus of the meeting was review and discussion of a concepts paper drafted by the Illinois Environmental Protection Agency (IEPA) to phase out the use of perchloroethylene (perc) by drycleaners in Illinois.
Highlights of the concept paper were:
1) Perc could no longer be used at drycleaning facilities after January 1, 2030.
2) Third generation perc drycleaning machines currently in use could be used for the remainder of their useful life. They could not be relocated or sold to be used in another drycleaning facility.
3) Fourth and fifth generation perc drycleaning machines can be purchased and used until January 1, 2030.
4) A review of economically viable alternative drycleaning solvents will be performed in 2015, 2021 and 2028.
A draft of the proposed legislative report will be circulated to task force members by December 9th, with their final comments due by December 14th. Based on this report, legislation will be drafted and reviewed by the task force for introduction to the legislature in the 2011 legislative session. |
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B. |
Update on State Coalition for Remediation of Drycleaners Meeting: |
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Dr. Juho So and Mr. Eriksen updated the Council as to key topics covered at the annual State Coalition for Remediation of Drycleaners meeting held in Orlando, Florida on November 15-19, 2010. Illinois still leads the 13 states with cleanup programs in the number of contaminated drycleaning facilities that have received No Further Remediation (NFR) and No Further Action (NFA) letters. Regarding remedial technologies, Dr. So did a presentation on utilizing chemical oxidation via gravity feeding which was well received by the group. A panel discussion was held discussing program revenue trends. States continue to experience revenue shortfalls due to the declining number of drycleaners in the industry and the reduced volume usage of drycleaning solvents. The meeting concluded with a day-long tour of Cape Canaveral, where the group had the opportunity to observe several remedial systems in action addressing TCE soil and groundwater contamination at the Air Force base. |
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C. |
Potential Meeting Dates for Calendar Year 2011: |
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Mr. Eriksen reviewed with the Council the following possible meeting dates for calendar year 2011:
| January 12th |
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Wednesday |
| February 23rd |
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Wednesday |
| April 6th |
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Wednesday |
| May 18th |
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Wednesday |
| June 29th |
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Wednesday |
| August 24th |
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Wednesday (Strategic Planning) |
| October 5th |
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Wednesday |
| November 30th |
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Wednesday |
The Council members in attendance noted that at this time they had no conflicts with the scheduled meeting dates for 2011.
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D. |
Illinois Department of Revenue GenTax System: |
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Mr. Eriksen reviewed with the Council that the Illinois Department of Revenue (IDOR) will be moving away from using the Illinois Business Tax ID number (IBT) to record annual license fee payments beginning in mid-2011. Every drycleaner will get a unique “GenTax” number issued in 2011 for each drycleaning facility they operate.
Staff worked with IDOR staff to determine if it would be possible to combine the new GenTax license with the Drycleaning Trust Fund license but it is deemed not feasible due to license size issues. Mr. Eriksen stated that as he gets more information as to a firm implementation date and the registration process, he will communicate that to the Council and the drycleaning industry. |
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APPROVAL OF PROGRAM BILLINGS |
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Mr. Eriksen noted there were three (3) bills included in the Council packet for the Council's review and action. |
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1. Williams & Company Consulting, Inc $48,747.00
Standard flat fee billing for October 2010, licensing, underwriting, claims processing and site inspections. |
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2. John J. McCarthy $2,090.00
Professional legal services to the Council for the period of October 2, 2010 through November 22, 2010. |
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3. Williams & Company Consulting, Inc $54,371.00
Standard flat fee billing for November 2010, licensing, underwriting, claims processing and site inspections. |
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On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved the bills as presented by a vote of 6-0. |
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REVIEW OF ACTIVITY REPORT AND FINANCIAL STATEMENTS |
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Mr. Eriksen noted as of October 31, 2010, there were 1,133 drycleaning facilities licensed with the Fund; 561 drycleaning facilities currently had pollution liability insurance coverage through the Fund; open remedial claims total 278 with estimated reserves to complete cleanup at those facilities of $31.6 million. Since the program’s inception, approximately $26 million has been reimbursed to drycleaners for cleaning up historical drycleaning solvent contamination at their facility.
The October 31, 2010, financial statements reflected a Fund balance of $3,059,896 and year-to-date remedial program benefits paid total $884,767. |
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CLAIM PAYMENTS IN EXCESS OF $75,000 |
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Mr. Eriksen noted there were four (4) claims for review by the Council. |
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A. |
Burling Professonal Cleaners, Bradley, IL - Claim #50102, Site #0002085: |
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Dr. So reviewed background information with the Council noting the facility has been fully released for funding and substantial site investigation work has been conducted at the drycleaning facility. Bedrock contamination is widespread at the site due to bedrock occurring at only 3 ft. below ground surface.
In order to complete a remedial objectives report, additional soil borings and monitoring wells are required to provide delineation of the soil and groundwater contamination. To accomplish this, nested wells are proposed to be installed at varying depths between 20 and 40 feet in down-gradient locations from the source area of contamination to provide horizontal delineation of the contamination. The estimated cost including a 15% contingency to develop and sample these bedrock wells is $43,350.
On a motion by Mr. Bredenkamp and a second by Mr. Kwak, the Council approved the additional site investigation costs of $43,350 by a vote of 6-0. |
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B. |
Russell's Dry Cleaners, Naperville, IL - Claim #50115, Site #0002072: |
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Dr. So reviewed background information with the Council noting the facility has been released for immediate funding. Site characterization activities have been concluded at the facility and soil contamination has been determined to exceed the Csat level, thus requiring remediation. The Administrator is requesting approval of $5,500 to have the environmental consultants prepare a Remedial Action Plan (RAP) to address the contamination at the drycleaning facility.
On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved $5,500 in RAP costs by a vote of 6-0. |
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C. |
One Hour Crystal Cleaners, Crystal Lake, IL - Claim #50173, Site #0001427: |
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Dr. So reviewed background information with the Council noting the Administrator is requesting budget approval for remedial action activities at the facility. The site has been released for full funding. Active remediation is required at the facility due to the high level of soil contamination along with some offsite contamination discovered during previous site investigation activities. Issuance of a limited groundwater ordinance was approved by the Village of Crystal Lake in October 2008 and it was submitted to the Illinois Environmental Protection Agency (IEPA) for final approval. As of mid-November, IEPA has not acted on the ordinance request.
The Administrator is requesting total budget approval of $168,500 for in-situ chemical oxidation via gravity feeding, confirmatory site investigation and IEPA correspondence costs and $50,000 of contingency costs for additional treatment if needed in the hot spot area.
On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved $168,500 of remedial action costs by a vote of 6-0. |
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D. |
Star Cleaners, Chicago, IL - Claim #50518, Site #0001911: |
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Dr. So noted the current program administrative rules require the release of funding for a facility be based on the facility’s priority ranking score; however, the Council has authority to make exceptions to the priority ranking criteria and release funding for a facility due to site specific environmental issues and concerns. The Administrator is requesting the Council review the following issues for this facility:
1. Release of full funding for the facility. The priority ranking score is 78.
2. Waiver of proof of financial ability to pay cleanup costs in excess of the $300,000 remedial benefit.
3. Waiver of the bidding process to meet Illinois EPA’s request for immediate cleanup at the facility.
Dr. So noted active remediation is required at the facility due to the high level of contamination both in soil and groundwater and located both on and off-site. The Administrator received a letter from IEPA on October 9, 2010 regarding contamination at the facility. IEPA is concerned about the high level of soil contamination within the proximity of residential and commercial properties to the facility and has requested removal of free product as soon as possible and full delineation of the contamination plume.
The Council has previously made exceptions to the prioritization policy where conditions exist that were deemed an immediate threat to human health and public safety. Mr. Eriksen noted it is his opinion this facility falls within that classification based upon IEPA’s concern of the high level of contamination, i.e., 58,000 ppm and the contamination’s proximity to residential properties. IEPA’s concern was expressed in their November 9 letter to the Administrator.
After additional discussion by the Council, the following actions were taken regarding this claim:
1. On a motion by Mr. Lewicki and a second by Mr. Bredenkamp, the Council released the facility for full funding by a vote of 6-0.
2. On a motion by Mr. Bredenkamp and a second by Mr. Kwon, the Council agreed to not require the remedial claimant to provide proof of financial ability to pay any potential cleanup costs in excess of the $300,000 maximum remedial benefits. The motion passed by a vote of 6-0.
3. On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council approved waiver of the three (3) bid requirement for additional site investigation and remedial activities to expedite the cleanup process. The motion passed by a vote of 6-0. |
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OTHER ISSUES AS PRESENTED |
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Mr. Eriksen noted the Office of the Auditor General has requested completion of a survey regarding Council activities. It is due by December 6, 2010. In addition, new procurement communication information is being developed to avoid any ethics issues with the procurement process. Mr. Eriksen stated once he has received and reviewed additional information, he would communicate that information with the Council.
The next Council meeting is tentatively scheduled for Wednesday, January 12, 2011. |
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PUBLIC
COMMENT PERIOD |
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Mr. Sung Do Kang, representing the National Drycleaners Institute (NDI), stated some drycleaners could benefit by attempting to recover monies from old insurance policies associated with their drycleaning facility. He also indicated several drycleaners have not started their cleanup because of their low prioritization ranking, yet have advanced monies to their environmental consultant to cover the remedial program deductible. He also referenced an instance where the drycleaner has been billed twice by two (2) different companies to dispose of hazardous waste. Mr. Kang indicated that at this time he was not able to share any additional information regarding the advanced payment of the deductible or the double billing of hazardous waste with the Council.
Mr. Peter Marberry addressed the Council arguing that the Council should be proactive in seeking cost recovery from old insurance policies on drycleaners that are receiving remedial program benefits from the Fund. He further accused the Council of protecting consultants and insurance companies rather than helping the drycleaner industry in dealing with their financial issues. Mr. Polak responded the Council has reviewed the issues regarding cost recovery from insurance policies and has an informal opinion from the Attorney General’s Office noting the Council has no standing to seek cost recovery from insurance companies on behalf of the drycleaning industry or from solvent distributors. |
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CLOSED SESSION |
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On a motion by Mr. Bredenkamp and a second by Mr. Kim, the Council voted 6-0 to go into Closed Session at 12:18 p.m. to discuss matters of potential litigation.
On a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council voted of 6-0 to come out of Closed Session at 12:44 p.m.
Mr. Kwon left the meeting at 12:45 p.m.
1) Regarding Playfield Cleaners, on a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council voted to reduce the license late payment fees for 2010 to $300. The motion passed by a vote of 5-0.
2) Regarding Carillon Cleaners, on a motion by Mr. Bredenkamp and a second by Mr. Lewicki, the Council voted to reduce the 2010 license late payment fees to $300 and allow the payment of the 2010 license fees over 5 months at $300 per month beginning January 1, 20110. The motion passed by a vote of 5-0 There being no further business, on a motion by Mr. Lewicki and a second by Mr. Kim, by a vote of 5-0, the Council meeting adjourned at 12:50 p.m. |
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