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September
30, 2003 Meeting Minutes
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MINUTES |
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DRYCLEANER
ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS
HOLIDAY
INN SELECT
NAPERVILLE, ILLINOIS
SEPTEMBER
30, 2003
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John
Polak, Chairperson, called the Drycleaner Environmental Response
Trust Fund Council of Illinois meeting to order at 12:13 p.m. A
quorum was present. Roll call was taken with the following members
present: |
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Augustine
Chung (via telephonic conference)
Andrew Chweh
David Gibson (via telephonic conference at 12:46 p.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
Juho So, Program Administrator's Office
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PRELIMINARY
BUSINESS |
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The minutes
from the July 24, 2003 Council meeting were reviewed. Mr. Kim
noted that the minutes reflect an increase in the perc solvent
tax from $3.50 per gallon to $10 per gallon in 2004 and he expressed
a concern of that large of increase based upon input received
from the public hearings. Dr. Chweh indicated that it was his
understanding that the Council was going to be looking at a package
of fee increases that involve increases in subsequent years. Mr.
Eriksen responded stating that the Council had initially approved
rates going out into the future but that in review with legal
counsel, it was determined that the Council could not set rates
to go into effect at some future date (e.g., July 1, 2006) but
could only set rates which go into effect now and at such time
that the Council wanted to adjust the rates, they would have to
go back through the notice and public hearing period prior to
making such adjustments.
Mr. Polak
noted that this is the major topic for Council discussion today.
On a motion
by Mr. Lewicki and a second by Mr. Chung, the minutes were approved
by a vote of 5-0.
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LICENSE LATE PAYMENT APPEAL |
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The license
late payment penalty appeal before the Council today is Norge
Cleaners, located at 6201 S. Kedzie Ave, Chicago, IL.
Mr. Eriksen
reviewed with the Council the background information included
in their Council packet. He noted that the Administrator's records
indicate that Ms. Linares took over operation of the facility
on April 5, 2000. The old facility was licensed at that time and
the license was timely renewed for calendar year 2001. The Administrator's
records indicate that the 2002 license fee was paid on March 16,
2002, at which time the late payment penalty of $370 was assessed.
Ms. Linares subsequently appealed the license late payment penalty
fee. The appeal was denied by the Administrator and it is before
the Council for their review and action. Mr. Eriksen noted that
enclosed for the Council's reference was the appeal correspondence
between the Fund and Ms. Linares.
Ms. Linares
addressed the Council stating that she was late in paying the
license fee for calendar year 2002 because she did not have the
funds to pay the fee when it was due. She stated she did not know
that there was a $5 per day late payment penalty for not paying
the license fee on a timely basis. She admitted she knew the fee
was due by December 31, 2001.
Mr. Polak
asked Ms. Linares if it would have made any difference to her
if she knew there was a license late payment penalty, i.e., would
the payment have become a priority. Ms. Linares replied that she
thought so. In the early going, there were tough times in the
business. She was behind on her bills but now things are running
more smoothly and she is aware of her responsibilities in terms
of the timeliness of payments to the Fund for licensing.
Mr. Polak
asked the Council members their thoughts on the issue. Mr. Lewicki
stated that as a drycleaner he has to pay his bills on time and
feels it is the responsibility of every drycleaner to pay their
bills on a timely basis. Mr. Kim had no comment. Mr. Chung noted
he had nothing further to add other than ignorance is not an excuse.
Dr. Chweh commented that if she did not understand the process,
it may not be right for the Council to assess the late payment
penalty. Mr. Polak sympathized with financial situation but felt
that there was no deviations or extenuating circumstances that
were different than many other appeals heard by the Council.
On a motion
by Mr. Polak and a second by Mr. Lewicki, the Council voted 5-0
to deny Ms. Linares' waiver of the license late payment penalty
in the amount of $370. Mr. Eriksen noted that she would be informed,
in writing, of the Council's decision and her right to appeal
the Council's decision to an Administrative Hearing Officer. Mr.
Polak noted that since Mr. Gibson was still unavailable for the
meeting, he would like to change the printed agenda order to deal
with some of the less substantive issues prior to discussion of
the adjustment of the drycleaning solvent taxes and annual license
fees.
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OPERATIONAL
ISSUES |
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G. |
Fiscal Year 2004 Appropriation Update |
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Mr. Eriksen
updated the Council on recent discussions with the Governor's
Office regarding the fiscal year 2004 appropriation error. They
confirmed that it would be necessary to have an amendment approved
by the legislature during the November 2003 veto session in order
to correct the appropriation reference error. Mr. Eriksen noted
that the error reduced the Fund's overall appropriation by approximately
$2.2 million. This will be a technical correction that should
not incur a great deal of discussion or debate by the legislature.
He referenced
that included in the Council packet was an article from the Chicago
Tribune noting there have been transfers from Special Use Funds
to the State's General Revenue Fund. He noted that the Illinois
Drycleaner Fund was not one of those designated to transfer monies
to the General Revenue Fund. He is hopeful that the efforts spent
by the Council and the Administrator in educating the Governor's
staff and staff of The Bureau of Management and Budget about the
workings and financial situation of the Fund that such a transfer
will not occur in the future.
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D.
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Payment of License Late Payment Penalties in Installments |
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Mr. Eriksen
reported that the Council previously adopted a policy and procedure
allowing for the payment of license late payment penalty fees
in 12 equal monthly installments when the total license late payment
penalty fees equal or exceed $1,000. This installment opportunity
has been utilized by 16 drycleaners over the past several years.
He noted recently
a drycleaner who had paid his 2001 license late payment penalty
fees totaling $1,310 in monthly installments did not pay the license
fees for his facility for 2002 and 2003 until June 13, 2003, incurring
late payment fees totaling $3,455 for those two years. The drycleaner
has inquired if he can pay the $3,455 in late payment penalty
fees via the installment method.
The issue
for the Council's consideration is does the Council wish to allow
drycleaners to use the installment method more than once in paying
their license late payment penalty fees or do they wish to allow
the drycleaners to only take advantage of the installment method
one time?
Mr. Lewicki
stated that he did not have an issue with the drycleaner utilizing
the installment method again as the license late payment fee is
a fairly substantial penalty for late payment. Mr. Polak indicated
he was somewhat surprised that someone would fall into this situation
a second time as he felt for the most part it was a one-time scenario
where people incurred the late payment fee because they were not
knowledgeable when the fee was due. He stated the penalty was
established as a deterrent for people to pay their license fees
late. Mr. Lewicki noted it is still costing this drycleaner three
to four times in license late payment fees over what his license
fee was, which is a sufficient penalty in and of itself. Mr. Chung
indicated he had no problem with drycleaners being able to use
the installment payment method more than once.
On a motion
by Mr. Lewicki and a second by Mr. Kim, the Council, by a vote
of 5-0, reaffirmed the existing policy whereby any drycleaner
who incurs a late payment penalty fee over $1,000 may pay the
late payment penalty fee in 12 equal monthly installments, with
no limitation as to how frequently they can utilize this installment
plan.
Mr. Polak
recessed the meeting for a short break at 12:40 p.m. Mr. David
Gibson joined the meeting via telephonic conference at 12:46 p.m.
Mr. John Polak reconvened the meeting at 12:49 p.m.
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A. |
Adjustment of Drycleaning Solvent Taxes and Annual License Fees |
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Mr. Polak
reviewed with the Council that they had taken action at their
July 24, 2003 Council meeting to increase both the solvent taxes
and the license fees effective January 1, 2004. The Council proposed
increases in solvent taxes and license fees were subject to public
hearings and written comments and he asked Mr. Eriksen to update
the Council on the results of those public hearings and written
comments.
Mr. Eriksen
noted that included in their Council packet is a summary of the
four (4) public hearings and copies of the written comments received
on the proposed increases to the solvent taxes and license fees.
He reported public hearings were held during the month at Fairview
Heights, Bloomington, Lincolnwood and Bolingbrook, with approximately
200 individuals in total attending these four (4) meetings. Written
comments were received from 10 individual drycleaners plus written
comments from the Korean/American Drycleaners Association of Chicagoland
(KADA). In addition to the two-page memorandum outlining their
position on the proposed increases, KADA submitted 369 petitions
opposing the increase in the chlorine-based solvent tax to $10
per gallon and supporting a $7 per gallon chlorine-based solvent
tax.
Mr. Eriksen
reviewed each public hearing with the Council, summarizing the
general sentiments of the various speakers at each meeting. Mr.
Eriksen summarized the key concerns expressed at the public hearings
and from the written comments as follows:
1) The drycleaning industry is in a down economic market cycle
and the increases are too high for the drycleaners to absorb at
this time;
2) The license fee increases are too high for the larger users
of solvent; that the license fees should be capped at a set amount
or the license fee should be the same for all drycleaners; and
3) The increase in the petroleum solvent tax as compared to the
increase in the chlorine-based tax is not equitable and that the
5 to 1 ratio is not applicable for a majority of the petroleum
drycleaners in the state.
Mr. Eriksen
stated he had received three (3) letters subsequent to the public
hearing cutoff date and today had received an additional letter
of protest from the KADA. KADA's letter reflected that site investigation
costs based on their survey are less than the Fund's projections.
Mr. Polak
stated that even if the Council utilized the savings numbers that
KADA identified through their own research, the Council would
still require a $10 per gallon solvent tax rate on chlorine-based
solvents to remain solvent. Mr. Kim stated that since neither
an increase in the chlorine-based solvent tax to $7 or $10 is
enough per the financial projection scenario as presented by the
Administrator at the July 24 meeting or per KADA's numbers, that
he recommends that the Council consider increasing the solvent
tax only to $7. Once the Council knows the exact number of claims,
they can adjust the fees accordingly.
Mr. Polak
noted that the Council, in establishing the proposed increased
rates, had tried to look at the equity among the drycleaners at
the beginning of the program and hopefully some equity at the
end of the program. He noted some of the larger volume users were
subsidizing various classes of drycleaners based upon the proposed
license fee schedule. The Council needs to look at a balanced
mechanism to keep the fees as equitable as possible, but noted
that this is a process that will need to be addressed on an annual
basis to ensure that the Fund is solvent.
He stated
it was his opinion that there should be no more than a tripling
of license fees where practical for all current licensees so that
a sense of fairness in terms of the classes of the fees being
paid on day one of the Fund would still exist after the proposed
increases went into effect.
Regarding
the solvent tax increase, Mr. Polak stated that the Council will
probably be looking at another increase a year or two from now
and a compromise rate of the proposed $10 per gallon rate and
the KADA request of $7, $8.50 may be reasonable at this time.
Mr. Kim did not agree that there should be a cap of the license
fees. He believes whoever uses more solvent should pay higher
license fees as they can better afford to do so. Mr. Polak stated
that he would not suggest a permanent cap but would support a
cap of the license fee at $4,500 for the calendar year 2004 license
fee which is due January 1, 2004. The Council should revisit the
cap issue again in the future. Mr. Polak went on to explain that
no one likes the size of the proposed increases but by capping
the license fees, it would provide the drycleaners additional
time to address their pricing structure in a way that is more
conducive to them financially.
Mr. Chung
stated that he believes that the current solvent tax rate on chlorine-based
solvent has been too low for quite some time and that the Council
has been talking about a potential increase for over three (3)
years and that a phase in period is not necessary. He recommends
that the Council stay with the proposed solvent tax increases
that they approved at the July 24, 2003 Council meeting. Mr. Polak
stated that based on the public comments received, that the proposed
increases in the license fees was not as significant an issue
to the drycleaners as the solvent tax was. The Council conducted
a general discussion noting that legislation had been pending
for almost two years at the time SB1000 was passed and the industry
has been provided notice that increases would need to take place
to keep the Fund solvent. Mr. Polak stated that the Council may
wish to stay with the proposed fees they approved at the July
24, 2003 meeting. Mr. Gibson commented that he understands that
in reality the Fund will need at least $10 per gallon chlorine-based
solvent tax but if a compromise is what is necessary at this time,
he could support a smaller increase at this time. Mr. Chung stated
that he could support a compromise next year, something maybe
higher than $10, such as $12, but feels the Council needs to stay
with the originally approved $10 at this time.
Mr. Lewicki
noted that the difference in the chlorine solvent tax proposal
of $10 compared to $8.50 per gallon is $150 on 100 gallons, which
is a minimal difference. He stated the difference between a license
fee of $8,500 and $4,500 is significant and he could support a
cap on the license fees but recommends staying with the $10 per
gallon solvent tax. Mr. Kim stated KADA and ISFA need more time
to do more studies, why make the decision today, why not allow
them more time to do research on costs and needs and bring their
research back to the Council at a later date? Dr. Chweh inquired
how KADA arrived at their $7 per gallon chlorine solvent tax.
What was their justification for that number? Without that information,
it is difficult to make a decision which would require additional
time to review and digest new information. Mr. Kim noted that
nothing had been received from KADA justifying their $7 number.
Mr. Polak reported that their numbers on site investigation costs
and remediation costs do not support a $7 per gallon tax on chlorine-based
solvent. Dr. Chweh asked Mr. Dae Kim of KADA if they had data
to support their $7 per gallon proposed tax on chlorine-based
solvents. He stated that they did not have data to support the
$7, this came from meetings that KADA held subsequent to the July
24th Council meeting in which their members expressed support
for an increase up to $7 per gallon. Mr. Polak indicated that
a waiting strategy to get more information does not help deal
with the projected financial deficit the Fund is facing. If KADA
has no data to support why the increase should only go to $7,
it would make sense that the Council stays with their $10 per
gallon increase. Dr. Chweh indicated that KADA's memo stated that
they had interviewed nine (9) environmental companies. Was the
$7 based on public input? Mr. Dae Kim replied that they were just
trying to show that there was uncertainty surrounding the proposed
increase.
Mr. Polak
made a motion, seconded by Mr. Lewicki, to cap the maximum license
fee at $4,500, with the intent that the license fee categories
be structured in a manner that, if possible, to not more than
triple the current license fee for any drycleaner that uses the
same amount of solvent during this year; that the solvent tax
on chlorine-based solvents be increased to $8.50 per gallon from
$3.50 per gallon and that the solvent tax on petroleum solvents
be increased from $ .35 per gallon to $1.75 per gallon, maintaining
the Council approved ratio of 5 to 1. The following was the roll
call vote:
Dr. Chweh no
Mr. Kim no
Mr. Gibson yes
Mr. Lewicki yes
Mr. Chung no
Mr. Polak yes
The motion
failed on a 3-3 vote. Mr. Polak stated that since there was not
a consensus on the capping of the license fees or a compromise
on the reduction in solvent taxes, that he would make a motion
to approve the Council's proposed increases that were unanimously
passed by the Council at the July 24, 2003 meeting in which the
solvent tax on perc would be set at $10 per gallon, petroleum
at $2 per gallon and the license fees schedule as approved at
the July 24, 2003 meeting. The motion was seconded by Mr. Chung.
The following was the roll call vote:
Dr. Chweh no
Mr. Chung yes
Mr. Kim no
Mr. Lewicki yes
Mr. Gibson no
Mr. Polak yes
The motion
failed on a vote of 3-3.
Mr. Gibson
stated that he felt that the cap on licensing was a good compromise
in trying to keep the license fees as equitable as possible, based
upon the initial legislative structure. He made a motion where
the solvent tax on chlorine-based solvents would be $10 per gallon,
petroleum would be $2 per gallon, green solvent would remain at
$1.75 per gallon and the license fee structure would be as previously
approved by the Council on July 24, 2003, except it would be capped
at $4,500 with the intent to adjust the other categories such
that any current licensee, if possible, would not have more than
a tripling of their license fee in 2004 if they use the exact
same amount of solvent in 2003 as they did in 2002. The motion
was seconded by Mr. Lewicki. The following was the roll call vote:
Dr. Chweh no
Mr. Chung yes
Mr. Kim no
Mr. Gibson yes
Mr. Lewicki yes
Mr. Polak yes
The motion
passed by a vote of 4-2. Mr. Eriksen clarified that because of
the new license fee categories of 50 gallon increments, it would
not be possible to limit all of the licensing fees to a tripling.
Mr. Chung
stated that he would have to be excusing himself from the meeting.
Mr. Chung excused himself from the meeting at 1:48 p.m. Dr. Chweh
left the meeting at 1:50 p.m.
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B. |
Compliance Program Audit |
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Mr. Eriksen
reviewed with the Council the draft of the compliance program
audits, noting that the Council had briefly reviewed the report
at their strategic planning meeting but had not taken any action
at that time. He noted in his summary that the documentation was
not consistent across all programs and that as he had summarized,
it would appear that the compliance programs expended considerable
efforts in the start up phase but have not matured as well as
might be expected with all but one or two. He noted it was the
Administrator's recommendation that the Council enforce the definitive
criteria it set forth as the standard a program must meet or lose
their certification. Documentation of facility inspections, continuing
education and employee training were the areas that were the most
severe in lack of documentation.
The Council
conducted a general discussion of the compliance programs, stating
that it may be necessary to develop a model compliance program
for the other compliance programs to follow. Mr. Parker stated
that there is general training that needs to be done for all the
compliance programs and the compliance programs may be able to
work together to come up with some improved suggestions for the
Council. He stated he would review this issue and provide some
suggestions for improving compliance programs to Mr. Eriksen in
the near future. Mr. John Lee, representing the Asian/American
Small Business Program, stated that he understood the operational
issues or concerns mentioned but felt that the Council could assist
more in helping track and remind the drycleaners about their continuing
education requirements. After additional discussion, the Council
directed the Administrator to look at more definitive criteria
in terms of the compliance program requirements that may strengthen
the Council approved compliance programs and submit them to the
Council at a later date for further discussion and consideration.
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C. |
Procedures
for Issuing Insurance Coverage for Uninsured Facilities Wishing
to Pay Back Insurance Premiums to June 30, 2000 and Facilities That
Had a Lapse in Continuous Insurance Coverage Since June 30, 2000
in Order for the Site to be Eligible for Remedial Benefits |
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Mr. Eriksen
noted that included in the most recent Council packet was a revised
memorandum on this topic. The revised memo clarified terminology
in the previous memo.
Mr. Eriksen
noted that there were five (5) separate issues outlined in his
memorandum. Mr. Eriksen reviewed each of the individual issues
and the Administrator's proposed response to the issue in detail
with the Council.
After general
discussion by the council, on a motion by Mr. Polak and a second
by Mr. Lewicki, by a vote of 4-0, the Council voted to accept
the Administrator's response on each of the five (5) individual
issues related to this topic as outlined in his September 8, 2003
memorandum to the Council.
Mr. Polak
then recessed the meeting at 2:30 p.m. for a break and reconvened
the meeting at 2:43 p.m.
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E. |
Definition of Petroleum Drycleaning Machine with a Reclaimer |
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Mr. Eriksen
reviewed with the Council that SB1000 created two (2) distinct
licensing categories for drycleaning machines using petroleum-based
solvents. The first category is for drycleaning machines using
petroleum solvents without a reclaimer and the second category
is for petroleum drycleaning machines with a reclaimer. He offered
the following definitions for Council review:
1) Petroleum
drycleaning machine without reclaimer
This would be a drycleaning machine that uses a transfer process
in which the garments are cleaned in one machine and then transferred
to a dryer that does not recapture the solvent remaining in the
garments. The dryer emits the solvent vapors directly into the
atmosphere.
2) Petroleum drycleaning machine with reclaimer
A petroleum drycleaning machine with a reclaimer would be classified
in one of the following three categories:
A transfer machine process in which the damp garments are
placed in a reclaiming dryer that utilizes a water cooling tower
to capture the solvent vapors during the drying cycle for reuse
in the drycleaning process. Mr. Eriksen noted that sources have
indicated that the transfer process in these reclaimers are 50-60%
efficient in reclaiming the solvent used in cleaning the garments.
An example of a reclaiming dryer would be a Hoyt-Petromiser.
The drycleaning machine process involves a transfer machine
in which the garments are dried in a reclaiming dryer that uses
a refrigeration unit similar to the refrigeration units on perc
drycleaning machines. These dryers are reported to reclaim 70-80%
of the drycleaning solvent in the garments.
A dry-to-dry drycleaning machine in which the clothes are
not removed from the drycleaning machine during the complete drycleaning
cycle and the solvent vapors from the drycleaning cycles are reclaimed
during the cool down cycle and are returned to the drycleaning
still.
Mr. Kim provided
the Council with a brief update on the history of the NESHAP regulations
dealing with air emissions and how they impact the solvent mileage
for each applicable drycleaning machine.
On a motion
by Mr. Lewicki and a second by Mr. Kim, the Council approved the
Administrator's proposed definitions for a petroleum drycleaning
machine without a reclaimer and petroleum drycleaning machine
with a reclaimer by a vote of 4-0.
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F. |
Update - United Cleaners Pilot Remedial Project |
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Mr. Eriksen
stated that Mr. J. Jaktar was present to give the Council an update
on the status of the United Cleaners in Lemont, IL, pilot project.
Mr. Jaktar
thanked the Council for their support of the pilot project and
their patience as the initial system was installed and subsequent
modifications were made to try to make the project successful.
He noted that the installation of the system began in September
2002 and after six weeks of testing, significant reductions in
the level of contamination occurred in the hot spot that had been
identified as the main area of the contamination plume. He noted
that as time passed there was a rebound effect and there remains
one hot spot that has a range of contamination from 150 to 400
ppm that the system was not able to effectively remediate. He
believes that the problems are associated with the soil type.
The soil at the facility is a very tight clay that just did not
seem to loosen up over the period of time that the system was
in operation. He reminded the Council that he has had good results
in conducting such remediation in silty clay soils. Based on the
current status at the site, the consultant will be removing the
remediation system as there is no further point to operate it
as it does not appear that it will be effective on the remaining
hot spot due to the tight clay soil. Mr. Polak asked Mr. Jaktar
if there has been anything that he learned that he could share
with the Council where the technology might be more successful
in the future at other sites. Mr. Jaktar replied that it would
probably be more successful at sites that did not have such a
tight clay soil. The system was moderately successful and that
80% of the contamination identified was removed. Unfortunately,
there still remains over 4,000 ppm of chlorinated solvent remaining
in the soil at the facility. Dr. So inquired what was the advantage
of a heated soil vapor extraction system over a regular soil vapor
extraction system. Mr. Jaktar replied that the cleanup period
is shorter using the heated soil vapor extraction versus the soil
vapor extraction.
Mr. Eriksen
noted that the remedial consultant for the facility is requesting
three (3) bids for additional technologies to complete remediation
of the facility.
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REVIEW
OF ACTIVITY REPORT AND FINANCIAL STATEMENTS |
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Mr. Eriksen
reviewed with the Council the August 2003 and July 2003 activity
reports, noting that current licenses in force at the end of August
were 1,418, with 847 licensed facilities participating in the
Fund's insurance program. The number of open remedial claims on
active facilities stands at 205, representing reserves of $12,717,478.
An additional 200 facilities have submitted and had their budget
approved for intrusive testing with the outstanding cost proposals
on these 200 sites at $888,050.
Mr. Eriksen
also reviewed the August 31, 2003 and July 31, 2003 financial
statements noting that year-to-date revenues exceed expenditures
by $36,942, leaving a Fund balance of $6,283,865 at the end of
August.
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OTHER
ISSUES AS PRESENTED |
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Mr. Polak
noted that he would have the Administrator check to see if November
6th or 7th would work for the next Council meeting. Mr. McCarthy
stated that he wanted to remind the Council members that the proposals
for the administration of the Fund are due by 11:00 a.m. on October
15, 2003. There were only two (2) potential bidders who showed
up for the mandatory pre-bidders conference on September 17, 2003,
at the Holiday Inn in Bolingbrook, IL. They were Williams & Company
Consulting, Inc., and Haynes, Theodore Accounting & Taxation.
He noted that upon receipt of the proposals that are submitted
in response to the RFP, he would forward them to the Council for
their review. He would like the Council to review and take action
on the proposals as soon as possible in as much as the Administrator's
contract expires on December 6, 2003.
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PUBLIC
COMMENT PERIOD |
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Mr. Chang
Lee addressed the Council regarding comments that he had made
at two (2) of the Council's public hearings. He stated he disagreed
with the Administrator's response to him regarding the issuance
of cancellation notices for the insurance policies. Mr. Eriksen
stated that if he provided the specifics on a site, he would follow
up on the cancellation notice issued for that specific site.
Mr. Augustine
Chung rejoined the Council meeting at 3:30 p.m. Mr. Gibson excused
himself from the meeting at 3:37 p.m.
Mr. Sung Do
Kang addressed the Council stating that he had requested much
information and many meetings with the chairman and the Administrator
to discuss the proposed increases. Mr. Polak noted that there
was only one meeting that was proposed that he could not attend.
Mr. Kang stated that he had received many comments from over 500
drycleaners opposed to an increase in the solvent tax on chlorine-based
solvents from $3.50 per gallon to $10 per gallon. He made reference
to Dr. Chweh's earlier comments regarding proof of why $7 is adequate.
He asked does the Council have proof that $10 is adequate? If
we knew all the facts, the program could run smoothly by setting
the necessary rate at this time. He referenced that the Council
did not consider all the facts in setting the proposed rates as
KADA has additional information that shows testing costs could
be reduced by $10,000 to $15,000 and that again, due to September
11, 2001 and the poor economy, $10 per gallon solvent tax on chlorine-based
solvents would have a negative impact on a large number of his
members. Mr. Kang stated it would be best for KADA to work with
the Council and the Fund administrator to look at ways to further
reduce expenditures and wanted the Council to understand that
much effort went in to collect data on the proposed site investigation
and clean up numbers. Mr. Polak agreed with Mr. Kang's comments
on Fund expenditures and requested that the Administrator respond
to KADA's letter regarding lower cleanup costs. Mr. Kim asked
if there was a cap on site investigation costs. Mr. Eriksen replied
no, that there was nothing in the statute or in previous Council
policy that restricted the number of dollars that could be spent
on testing.
There being
no further business, on a motion by Mr. Lewicki and a second by
Mr. Kim, the Council meeting adjourned at 4:10 p.m., on a vote
of 4-0.
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