Ohio Petroleum Underground Storage Tank Release Compensation Board
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Petroleum Underground Storage Tank Release Compensation Board P.O. Box 2280 Westerville, Ohio 43086-2280 Phone: (614) 752-8963 Fax: (614) 752-8397 www.petroboard.org AGENDA Petroleum UST Release Compensation Board September 11, 2019 – 10:00 a.m. I. Chairman’s Call to Order II. Approval of Minutes – June 13, 2018 Tab 1 III. Selection of 2020 Board Meeting Dates IV. BUSTR Report – Chief Verne Ord Tab 2 V. Financial Reports – Don Leasor A. May, June, and July Financials Tab 3 B. Fee Statement Statistics Tab 4 VI. Compliance and Fee Assessment Report – Madelin Esquivel Tab 5 VII. Claims Reports – Rick Trippel Tab 6 VIII. Finance Committee Report – Jim Rocco IX. Rules Committee Report A. Five-Year Rule Review X. New Business A. Appeal – Report and Recommendation Owner: Winner’s One Stop, LLC Tab 7 Claim # 21176-0001/09/29/15-A B. Hardship Applications Owner: Rohr’s Auto Service Tab 8A Claim # 15303-0001/06/24/14 Owner: Estate of Bob Jeffers Tab 8B Claim # 16065-0001/03/25/96 Owner: Red Stripe Associates Tab 8C Claim # 19924-0001/05/06/14 XI. Certificates of Coverage Ratification A. 2017 Certificates – Issued Tab 9 B. 2018 Certificates – Issued & Denied Tab 10 C. 2019 Certificates – Issued & Denied Tab 11 XII. Executive Session XIII. Confirm Next Meeting Date and Adjourn Memorandum To: The Petroleum Underground Storage Tank Release Compensation Board From: Chief -Verne Ord, BUSTR Re: BUSTR Report Date: September 11, 2019 PERSONNEL – Kelly Snedegar accepted the Records Management Officer position and started work on April 13, 2019. ADMINISTRATION – The responsible party search program for FY19 has been completed as scheduled. A total of 65 responsible party searches were completed by three contracted vendors. This program will be carried forward and part of the BUSTR FY20 curriculum. The ODSA’s Abandoned Gas Station Cleanup Fund Program is ongoing with 82 BUSTR facility releases involved, 103 grant applications received, 85 awards made with 18 applications currently under review. 20 property cleanups have been completed with $17,862,997 million of the allocated $25 million having been awarded. The LUST grant application for fiscal year FY20 received final approval by U.S. EPA with $1,989,809 being awarded. The UST grant for FY20/F21 received final approval by U.S. EPA with $1,600,454 being awarded as the total award for both fiscal years. TRAINING AND STAFF DEVELOPMENT – Commerce Human Resources and the Department of Administrative Services continue to provide various training and informational sessions for Commerce employees. All staff recently completed “Ethics” and “Securing Commerce” training through the ELM portal. TRAINING TO STAKEHOLDERS – On June 11, 2019 Steven Krichbaum gave a presentation to new and interested government employees at the Ohio Department of Agriculture. An overview of the latest UST operational compliance requirements was provided along with an overview of UST compliance program in Ohio. 51 individuals were in attendance for the training. Five Year Rule Review – The Five-Year Rule Review for OAC 1301:7-9-20 “Revolving Loan Fund” was filed with the Joint Committee on Agency Rule Review (JCARR) on July 3, 2019. The public hearing was conducted on Monday August 12, 2019 at the State Fire Academy. The rule was on the August 12, 2019 JCARR consent agenda. JCARR jurisdiction ends September 6, 2019. The rule is anticipated to be effective no later than September 30, 2019. 1 | Page ACTIVITY – OTTER Database IT Commerce worked with BUSTR to develop the new UST operational compliance statistics report that was used for the mid-year U.S. EPA LUST-4 reporting due on April 5, 2019. BUSTR is the first program in U.S. EPA Region 5 to report the new statistics. Click Scheduling No issues to report. BUSTR completed their third 3-year operational compliance inspection cycle with the new cycle commencing on April 22, 2019. Approximately 7,200 facilities have been inspected over the past 3 years. STATISTICS and/or COMMENTS - Release Prevention UST Operation Compliance Inspections The current 3-year inspection cycle ends May 1, 2022. For the week ending August 30, 2019 33 new inspections were performed for a total of 456 inspections. (1st year of 3-year inspection cycle). Corrective Action No Further Action Letters (NFA) The current grant cycle ends September 30, 2019. For the week ending August 30, 2019 19 NFA’s were generated, for a total of 405 NFA’s To - date target projection of total NFA’s is 552 Statistic Count as of 8/30/2019 Number of Registered Tanks 21,089 Number of Owners of Registered Facilities 3,508 Number of Registered Facilities 7,111 Number of Active Releases 2,165 Number of Active Closures 1,377 Number of Program No Further Actions 30,761 2 | Page MONTHLY INCOME FIGURES AS OF JULY 31, 2019 (CASH BASIS) Fiscal 2020 % Of FY 2020 July Total YTD Budget Budget Tank Revenue In house collections * 7,949,634.00 7,949,634.00 Net refunds paid (100.00) (100.00) AG collections 4,706.00 4,706.00 Collection costs paid by owner (478.62) (478.62) Total Tank Revenue 7,953,761.38 7,953,761.38 94.24% 8,440,000 Interest Income Interest Earned 66,305.52 66,305.52 9.21% 720,000 Unearned Gain/(Loss) on Investments (8,076.50) (8,076.50) Total Interest Income 58,229.02 58,229.02 Miscellaneous Income 0.00 0.00 0.00% 1,000 Total Income 8,011,990.40 8,011,990.40 87.46% 9,161,000 Claims Expense 546,351.38 546,351.38 6.07% 9,000,000 Operating Expenses Salaries 119,602.79 119,602.79 8.48% 1,410,700 Temp Services 0.00 0.00 0.00% 30,000 Rent 0.00 0.00 0.00% 155,000 Office Supplies 540.82 540.82 2.70% 20,000 Printing & Copying * 339.02 339.02 2.26% 15,000 Legal & Professional L&P services 28,055.55 28,055.55 Collection costs 2,128.31 2,128.31 Collection costs paid by owner (478.62) (478.62) Total L & P Expense 29,705.24 29,705.24 12.38% 240,000 Travel 262.08 262.08 4.37% 6,000 Employee Expenses 0.00 0.00 0.00% 1,000 Telephone 32.94 32.94 0.25% 13,000 Postage * 429.20 429.20 1.43% 30,000 Depreciation 2,104.90 2,104.90 6.52% 32,300 Total Operating Expenses 153,016.99 153,016.99 7.83% 1,953,000 Net Income (Cash method) 7,312,622.03 * Extremely cylical; occurs mainly during and as a result of the fee assessment period. Petroleum UST Release Compensation Board Balance Sheet As of 07/31/2019 Assets Current Assets 108 State Cash Balance 581,072.71 114 Treasury Notes 16,563,572.45 138 Unclaimed Monies Trust Account 157,568.11 140 Investments - Obligated 8,453,648.62 141 Reinvested Interest - Obligated 17,887.65 142 Investments - Unobligated 11,633,989.99 143 Reinvested Interest-Unobligated 22,169.22 Total Current Assets 37,429,908.75 Fixed Assets 160 Fixed Asset-Furniture 118,454.48 165 Fixed Asset-Data Processing 880,803.65 169 Accumulated Depreciation (919,627.18) Total Fixed Assets 79,630.95 Total Assets $37,509,539.70 Liabilities Current Liabilities Total Current Liabilities 0.00 Long Term Liabilities Total Long Term Liabilities 0.00 Total Liabilities $0.00 Equity Equity Accounts 283 Retained Earnings (Deficiency) 27,062,545.60 Current Year Income (Loss) 10,446,994.10 Total Equity 37,509,539.70 Total Liabilities and Equity $37,509,539.70 Printed: 09/03/2019 4:15 pmrpt0105 Page 1 of 1 Petroleum UST Release Compensation Board Income Statement For the Month Ended 07/31/2019 Operating Income Year To Date 301 Tank Fees 9,643,287.95 9,643,287.95 303 Investment Income 58,229.02 58,229.02 Total Operating Income 9,701,516.97 9,701,516.97 Operating Expenses 350 Claims Paid (675,539.70) (675,539.70 ) Total Operating Expenses (675,539.70) (675,539.70) Administrative Expenses 621 Salaries (57,532.13) (57,532.13 ) 668 Legal & Professional 1,035.79 1,035.79 669 Depreciation Expense 2,104.90 2,104.90 680 Telephone (68.38) (68.38 ) 681 Postage (15,477.61) (15,477.61 ) Total Administrative Expenses (69,937.43) (69,937.43) Net Income (Loss) $10,446,994.10 $10,446,994.10 Printed: 09/03/2019 4:15 pm rpt0106 Page 1 of 1 Petroleum UST Release Compensation Board Trial Balance Transaction Dates 07/01/2019 to 07/31/2019 Account Account Beginning Balance Transaction Ending Balance 108 State Cash Balance 1,640,556.63(1,059,483.92 ) 581,072.71 114 Treasury Notes 16,545,551.83 18,020.62 16,563,572.45 138 Unclaimed Monies Trust Account 70,518.36 87,049.75 157,568.11 140 Investments - Obligated 3,403,469.26 5,050,179.36 8,453,648.62 141 Reinvested Interest - Obligated 138,673.10(120,785.45 ) 17,887.65 142 Investments - Unobligated 14,934,698.65(3,300,708.66 ) 11,633,989.99 143 Reinvested Interest-Unobligated 244,048.20(221,878.98 ) 22,169.22 160 Fixed Asset-Furniture 118,454.48 0.00 118,454.48 165 Fixed Asset-Data Processing 880,803.65 0.00 880,803.65 169 Accumulated Depreciation (917,522.28) (2,104.90 ) (919,627.18 ) 171 Collateral on Lent Securities 11,159.24(11,159.24 ) 0.00 240 Accrued Benefits (Employer Contributi (23,740.42) 23,740.42 0.00 241 Accrued Salaries (53,248.96) 53,248.96 0.00 242 Accrued Vacation (77,313.58) 77,313.58 0.00 243 Compensated Absences (57,565.68) 57,565.68 0.00 250 Accounts Payable (22,220.06) 22,220.06 0.00 252 Claims Payable (1,086,361.11) 1,086,361.11 0.00 254 Accrued Liabilities (24,862.93) 24,862.93 0.00 255 Fees Received in Advance (6,720,265.00) 6,720,265.00 0.00 257 Tank Fee Refunds Payable (1,770,030.57) 1,770,030.57 0.00 265 Obligations Under Securities Lending (11,159.24) 11,159.24 0.00 266 Unclaimed Monies Payable (161,097.97) 161,097.97 0.00 283 Retained Earnings (Deficiency) (27,062,545.60) 0.00(27,062,545.60 ) 301 Tank Fees 0.00(9,643,287.95 ) (9,643,287.95 ) 303 Investment Income 0.00(58,229.02 ) (58,229.02 ) 350 Claims