December 6, 2017 Meeting Minutes

 

MINUTES
DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL of ILLINOIS

CHICAGO MARRIOTT HOTEL
NAPERVILLE, ILLINOIS

DECEMBER 6, 2017

  Dae Kim, Vice-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:
 

John Bredenkamp
Robert Dunham
Sung D. Kang
Dae Kim
Daniel Kim
John Polak (joined meeting via telephonic conference at 10:33 a.m.)

Also present were:

H. Patrick Eriksen, Program Administrator’s Office
John J. McCarthy, Program Counsel
Yong Kim, Program Administrator’s Office

  PRELIMINARY BUSINESS
 

The minutes from the August, 2017 Council meeting were reviewed. On a motion by Mr. Bredenkamp and a second by Mr. Kang, the minutes were approved by a vote of 6-0.

  APPEALS
  A. Cancellation of Insurance Coverage
 

Mr. Eriksen noted three insurance cancellation appeals are scheduled for this meeting.

1. Image Cleaners, Mr. Prospect, IL.; Site #0001246

Mr. Eriksen reviewed background information noting the policy cancelled on April 18, 2017 for failure to timely renew the facility's 2017 license. The required licensing information was submitted and all license fees were paid by June 5, 2017 and the facility license was renewed. Mr. John Kim, drycleaning facility owner, reapplied for insurance coverage and new coverage was issued on July 19, 2017. On July 9, 2017, Mr. Kim requested the council waive the 60 day notice period for appealing the April 18, 2017 insurance cancellation.

On a motion by Mr. Bredenkamp and a second by Mr. Daniel Kim, the council voted 6-0 to waive the 60 day notice period for appealing the insurance cancellation.

Mr. Richard Kim translated on behalf of Mr. John Kim. Mr. Kim stated decreasing business kept him from timely renewing his license but he will not let this occur in the future.

John Polak joined the meeting at 10:33 a.m. and took over chairing the meeting.

After discussion, on a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, the council voted 7- 0 to reinstate the insurance coverage without a lapse in coverage.

2. One Hour Cleaners, Lombard, IL.; Site #0001668

Mr. Eriksen noted Mr. Dong Lee was not in attendance to discuss his appeal and he will contact Mr. Lee to reschedule the appeal for a future meeting.

3. Village 1 Hour Cleaners, Libertyville, IL.; Site #0001607

Mr. Eriksen reviewed background information noting the policy cancelled on August 23, 2017 for failure to submit required insurance renewal documents. The required documentation was received on September 9, 2017. Mr. Young Park, owner of the drycleaning facility, outlined in his appeal request recent major surgery and included 64 pages of medical records documenting his health issues.

Mr. Park's son translated on his behalf. Mr. Park explained in detail his recent major health issues and hospitalization, which effected his ability to timely submit the required insurance documentation.

After discussion, on a motion by Mr. Bredenkamp and a second by Mr. Kang, the council voted 7-0 to reinstate the insurance coverage without a lapse in coverage.

  B. B. Appeal for $100 Compensation – 2016 Compliance Program Inspection
 

Mr. Dae Kim requested before discussion of these appeals that the council review the Compliance Program Policies and Procedures, in particular the third party inspection requirement.

Council discussion focused on the inspection requirement frequency, the council's statutory authority to reimburse the drycleaner for a fee not paid to the council, and communication regarding site inspection frequency. Mr. Dae Kim commented these four inspection appeals are a result of communication issues. Regarding the inspection frequency issue, Mr. Eriksen commented the council addressed this issue in June 2015 when Ms. Heidi Park of the NDI Compliance Program informed the council drycleaners were refusing scheduled inspections. The council adopted the policy if a drycleaner refused a scheduled compliance program inspection, the compliance program was to notify the administrator who would issue a 60 day insurance cancellation notice for failure to comply with the insurance requirement. This policy change was communicated to all licensed drycleaners in a mailing in early July 2015.

Mr. Polak stated the key issue related to these appeals is whether the council has statutory authority to reimburse the requested $100 compensation. Mr. McCarthy replied the council does not have that authority.

Mr. Tae Jung of the Illinois Dry Cleaners Association, Inc. addressed the council noting he had been authorized by the four drycleaners who filed the compensation request to represent them before the council. His presentation focused on the issue that each of the four drycleaners had a compliance program inspection in 2014 and another inspection in 2016. Mr. Jeremy Yoo translated for Mr. Jung. Mr. Jung also commented he recently emailed to the council members that four other drycleaners are being told by their compliance program they need an inspection by December 31, 2017. Mr. Eriksen responded noting the council had decided in April of 2017 what 2014 and 2015 site inspections they would accept and that the NDI Compliance Program inspection of these four facilities were not accepted by the council. Ms. Bae of Plaza Cleaners, one of the four appellants, was in attendance and spoke briefly about having 2 compliance program inspections within the past several years.

Mr. Bredenkamp made a motion to deny the appeals requesting $100 compensation for the 2016 compliance program inspection. The motion was seconded by Mr. Daniel Kim. Additional discussion ensued regarding the issue of statutory authority. On a roll call vote, the motion passed by a vote of 5-0-2 with Mr. Bredenkamp, Mr. Dae Kim, Mr. Daniel Kim, Mr. Young Kim and Mr. Polak voting yes. Mr. Dunham and Mr. Kang abstained.

Mr. Polak asked if the council wished to add discussion of the compliance program policies and procedures on the next council meeting agenda. Mr. Daniel Kim responded he did not believe this discussion would be beneficial until the Illinois Senate makes a decision regarding SB1648. He noted the inspection and communication issues discussed today did not exist until after the NDI Compliance Program decertification.

Mr. Dae Kim made a motion for the council to revisit the Compliance Program Policies and Procedures at the next meeting. The motion was seconded by Mr. Young Kim. On a roll call vote, the motion passed by a vote of 4-3 with Mr. Kang, Mr. Dunham, Mr. Dae Kim and Mr. Young Kim voting yes. Mr. Bredenkamp, Mr. Daniel Kim and Mr. Polak voted no.

  C. C. Appeal of Denial of Insurance Benefits, Orland Cleaners, Orland Park, IL;
 

Mr. Eriksen noted this appeal is deferred until a future council meeting as he was notified on December 5, 2017 by the attorney for the appellant stating she had additional information for review by the administrator which may impact the initial decision.

  OPPERATIONAL ISSUES
  A. Legislative Update
 

Mr. Eriksen reported he has been informed Amendment 001 to SB1648 was a joint collaboration of the Illinois EPA, Representative Fortner and Senator Althoff. He commented a meeting with industry representatives and legislators is scheduled for Monday, December 11th. Mr. Kang, Mr. Dunham, Mr. Daniel Kim and Mr. Bredenkamp have been invited to attend the meeting.

  B. Insurance Program
 

Mr. Eriksen reviewed his memo with the council noting the items listed were identified for discussion at the last meeting. Mr. Polak commented since this was Mr. Kang's issue, he would let Mr. Kang lead the discussion. Mr. Kang replied the memo answered his questions.

  C. Compliance Program Issues
 

1. Report on Calendar Year 2016 and 2017 Inspections

Mr. Eriksen reviewed his memo summarizing non-compliance issues identified in the 2016 inspections and current 2017 inspection data.

The council recessed for a short break at 11:48 a.m. and reconvened at 11:55 a.m.

2. Circuit Court Decision on NDI Decertification Appeal

NDI has appealed Judge Flynn's decision to affirm the council's decertification decision. The Attorney General's Office is representing the council in this appeal and informed Mr. Eriksen NDI was to file their initial brief on January 5th, but NDI has requested an extension until February 1, 2018.

Mr. Dunham initiated discussion of compliance program certification requirements. It was noted these requirements would be reviewed at the next meeting as part of the review of the Compliance Program Policies and Procedures.

Mr. Steve In stated he could not stay until the Public Comment portion of the meeting but would like the council to consider recording and publishing their meetings on YouTube so drycleaners who are unable to attend the meetings could view council discussion and actions.

Discussion was held regarding the ESM Compliance Program's failure to meet council inspection requirements for 2015. This issue had previously been tabled until the council had a final court decision on the NDI decertification. Mr. Dunham made a motion to place decertification of the ESM Compliance Program on the next meeting's agenda. Mr. Young Kim seconded the motion. On a roll call vote, the motion passed by a vote of 4-3 with Mr. Kang, Mr. Dunham, Mr. Dae Kim and Mr. Young Kim voting yes. Mr. Bredenkamp, Mr. Daniel Kim and Mr. Polak voted no.

3. Mr. Tae Jung's August 23, 2017 Email to the council

Mr. Eriksen noted Mr. Kang had requested this issue be placed on the agenda for discussion. Mr. Kang made a motion to table discussion until the next meeting since Mr. Jung had left the meeting and was unavailable to participate in the discussion. Mr. Bredenkamp seconded the motion. On a roll call vote, the motion passed 7-0.

  D. Fund Solvency and Cash Flow Analysis
 

Mr. Eriksen reviewed his memo and Cash Flow Analysis – Fiscal Year 2018 worksheet noting there is limited money available to be released for new claims. The administrator's best estimate at this time is that 20% of the fully released remedial claims will not be completed and closed by the January 1, 2020 sunset date.

  E. Release of Funding for Additional Remedial Claims
 

Since the council's August 25, 2016 Strategic Planning Meeting, new information has been received on six (6) claims that increased their priority ranking score above 78. The council has previously released for full funding all claims with a priority ranking score of 78 or higher.

After general discussion, on a motion by Mr. Dae Kim and a second by Mr. Daniel Kim, the council voted 7-0 to release the six claims listed in the memo for full funding.

  F. Request for Appointment of Special Assistant Attorney General for Administrative Hearings for FY18
 

Mr. Eriksen noted the Attorney General has asked the council to provide a list of reappointment requests for a Special Assistant Attorney General to represent the council in "contested case hearings". Mr. McCarthy has previously served in this capacity for the council.

On a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, by a vote of 7-0, the council approved requesting the Attorney General appoint Mr. McCarthy as a Special Assistant Attorney General for FY18.

  G. Solvent Classification – Intense Cleaning Solvent
 

SEITZ manufactures and sells a new drycleaning solvent called "Intense". The solvent's MSDS sheet states the main substance is hydrocarbons.

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the council voted 7-0 to classify Intense as petroleum-based solvent for purposes of calculating the annual licensure fee and applicable solvent tax.

  H. Meeting Dates for Calendar Year 2018
 

By consensus the council adopted the following meeting dates for 2018

January 19th
March 9th
May 11th
June 29th
August 24th
October 19th
December 7th

APPROVAL OF PROGRAM BILLINGS
 

Mr. Eriksen noted there were four (4) bills before the council for their review and approval. They were:

1. Williams & Company Consulting, Inc. $ 57,266.00*

Standard flat fee billing for August 2017, licensing, underwriting, claims processing and site inspections.

2. John J. McCarthy $ 1,235.00*

Professional legal services to the Council for the period of of September 1, 2017 through October 10, 2017.

3. Williams & Company Consulting, Inc. $ 40,070.00*

Standard flat fee billing for September 2017, licensing, underwriting, claims processing and site inspections.

4. Williams & Company Consulting, Inc. $ 50,476.00

Standard flat fee billing for October 2017, licensing, underwriting, claims processing and site inspections.

5. Williams & Company Consulting, Inc. $ 47,994.00

Standard flat fee billing for November 2017, licensing, underwriting, claims processing and site inspections.

6. John J. McCarthy $ 1,990.00

Professional legal services to the council for the period of October 11, 2017 through November 21, 2017

* Bills were approved via email by council members in October 2017

On a motion by Mr. Dae Kim and a second by Mr. John Bredenkamp, the bills were approved by a vote of 7-0.

  REVIEW OF MONTHLY ACTIVITY REPORTS AND FINANCIAL STATEMENTS
 

Mr. Eriksen reviewed the monthly activity report for October 31, 2017 noting 803 licenses were in effect at the end of the month compared to 852 as of October 31, 2016. Four hundred twenty one (421) active dry-cleaning facilities had pollution liability insurance coverage with the Fund. Open claims totaled 160, with estimated reserves of $18.2 million. The September and August 2017 reports were included in the council packet.

The October 31, 2017 financial statements reflect a fund balance of $1,503,612. The September and August 2017 financial statements were included in the council packet.

  CLAIM PAYMENTS IN EXCESS OF $75,000
 

Mr. Eriksen noted there were five claim payment requests in excess of $75,000 requiring Council review and action.

1. Fabricare Chicago, Inc., Chicago, IL; Claim #50331, Site #0001742

Mr. Eriksen reviewed background information on the facility noting the budget request is for construction and implementation of a chemical oxidant remedial system and confirmatory site investigation costs to evaluate the effectiveness of the remedial system. The administrator requested budget approval of $179,000 and waiver of the two bid requirement.

On a motion by Mr. Young Kim and a second by Mr. Kang, the council approved the administrator's budget request of $179,000 and waiver of the two bid requirement by a vote of 7-0.

2. Lion II Cleaners, Chicago, IL; Claim #50841, Site #0001914:

Mr. Eriksen reviewed background information on the facility noting the budget request is for installation of an engineered barrier, site restoration costs, well closure and development of the remedial action completion report. The administrator requested budget approval of $59,300.

On a motion by Mr. Young Kim and a second by Mr. Kang, the council approved the administrator's budget request of $59,300 by a vote of 7-0.

3. Dun Rite Cleaners, Mt. Prospect, IL; Claim #50511, Site #0001893:

Mr. Eriksen reviewed background information on the facility noting the budget request is for additional site characterization including updated well survey, slug test and TOC analysis. The administrator requested budget approval of $19,470.

On a motion by Mr. Bredenkamp and a second by Mr. Young Kim, the council approved the administrator's budget request of $19,470 by a vote of 7-0.

4. Wilmette Tailor & Cleaners, Wilmette, IL; Claim #50128, Site #0001622:

Mr. Eriksen reviewed background information on the facility noting the budget request is for excavation and soil mixing using a chemical oxidant, installation of a building control technology, well closure, and completion of the RACR. The administrator requested budget approval of $165,000..

On a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, the council approved the administrator's budget request of $165,000 by a vote of 7-0.

5. Russell's Dry Cleaners, Bradley, IL; Claim #50155, Site #0002072:

Mr. Eriksen reviewed background information on the facility noting the budget request is for over excavation and disposal of contaminated soils and site restoration costs. The administrator requested budget approval of $44,727.

On a motion by Mr. Young Kim and a second by Mr. Dunham, the council approved the administrator's budget request of $44,727 by a vote of 7-0.

  OTHER ISSUES
 

The council tentatively scheduled the next council meeting for Friday, January 19, 2018

Mr. Eriksen commented he has not received a response from the Illinois EPA on revising the online perc training class.

  PUBLIC COMMENT PERIOD
 

Mr. Polak asked for public comment. There were none.

  ETHICS TRAINING
 

Mr. Eriksen reviewed in detail with the council the 2017 Ethics Training material for Appointees to State of Illinois Boards. Special emphasis was placed on the topics of:

  • Official Misconduct, Bribery and Solicitation Misconduct
  • Conflicts of Prohibited Political Activities
  • Prohibited Offer or Promise
  • Ban on Gifts from Prohibited Sources
  • Additional Rules for Appointees

  CLOSED SESSION
 

Mr. Eriksen noted there were no issues for discussion in Closed Session.

There being no further business, on a motion by Mr. Bredenkamp and a second by Mr. Dae Kim, the council meeting adjourned at 1:08 p.m.

Respectfully submitted,

H Patrick Eriksen
Administrator

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