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NEW MEMBER REWARDS

MORE THAN $2000 IN GOODS & SERVICES

IF YOU JOIN NCALC/DLI NOW

A PLANT ENVIRONMENTAL COMPLIANCE INSPECTION by Greg Icenhour, CED of Shield Engineering

A PLANT MAINTENACE CHECK-UP By Tri-State Laundry Equipment Co.

A SUPPLY INVENTORY MANAGEMENT SYSTEM from N.S. Farrington & Co.

A FULL REGISTRATION to CAROLINA CLEAN from NCALC

"QUALITY SHIRT FINISHING" IN PLANT TRAINING VIDEO OR DVD IN ENGLISH OR SPANISH from DLI

A STANFORD SPOTTING KIT from Fabritech

A 10% DISCOUNT ON SECONDARY CONTAINMENT TRAYS  from MCF Systems

THE OPPORTUNITY TO HAVE THE SERVICES OF AN NCALC MENTOR

Access to Scholarship for DLI Resident Courses

In order to qualify as a new member you or your cleaners cannot have been a member of NCALC/DLI in the past year and you must pay your annual dues in the correct dues category in full with your membership application.

memberapp.pdf

North Carolina Association

of Launderers & Cleaners

The Source of Official Information

for NCALC

Carolina Clean

August, 2012

Don't Miss the Boat!

Have you signed up for DLI’s Hanger Recycling Program? You do recycle/reuse hangers that your customers return to you - don’t you? OK, so you are throwing a few away that are in bad shape - but for the most part you are reusing/recycling hangers, so why haven’t you signed up? Hangers have been in the news lately. The National Media has been warning consumers that a 21% increase in tariffs on hangers from Vietnam will cause cleaners to increase their prices.

While this is a rather stupid assertion for the National Media to make, a 21% increase in the tariff is not a 21% increase in the total cost or selling price of the hanger, the cost of the hangers is only a small part of a cleaner’s total supply cost of 9% to 10% of sales, i.e. the 21% increase in the tariff on hangers would have less than 1% effect on a cleaner’s cost. Some cleaners may use this as a justification for a price increase - Who could blame them.

 

However, there is a second option. Take this opportunity to promote and advertise your environmental stewardship. Join the DLI Hanger Recycling Program. All that it takes to sign up is a TOLL FREE CALL to 800-632-2627 or a visit to the members only section of the DLI website www.dlionline.org. You can download a template for a press release for your local media and copy for hang tags and posters for your use to promote the Program.

On Friday, June 29th I got a call from Dave Beaty, our DLI District Director, who came up with the Hanger Recycling Program. He was going to be interviewed by WBT radio in Charlotte Saturday, June 30th at 7:30am and wanted to be sure he had all of the participating members in the Charlotte area so he could give them recognition. A couple of members in Charlotte were not on the list because although they were recycling hangers, had not officially joined the Program - They almost missed the boat - Don’t let it happen to you.

If you’re worried about the hangers you can’t reuse, we’re working on it. David Farrington is working on a solution that could be coupled with their Poly Recycling Program. In the meantime, several cleaners have indicated that the steel recycler in their area, the one who crushes cars, not only accepts wire hangers, but pays a few cents per pound for them.

You never know when the opportunity will arise to get some free publicity but if you’re not willing to blow your own horn, you can rest assured no one else is likely to.

NOT A MEMBER OF DLI/NCALC? COMPLETE AN APPLICATION AND MAIL IT TO THE NCALC OFFICE: NCALC; 1403-A Sunset Drive, Greensboro, NC 27408/

President's Message

There Will Always Be Things That Threaten Your Business. Anticipate Them

One thing my father frequently told me about running a business is, “there will always be things that pop up that will threaten your business, so don’t be surprised when they come, but anticipate their arrival and prepare your company for them”. What he was speaking of were things that are out of our control like recessions, new competition, government regulations, changes in styles, etc., all of which can adversely affect our business.

We’ve seen some of these issues in the past few years. The recession has been the biggest one. And while we are still trying to recover, there are announcements of trouble ahead as the economic outlook for growth in this country is bleak. Adversity can break you or make you better. So lets choose to get better.

In the mist of this we have a new Dry Cleaning chain opening on a national scale. What are we to do? This new competitor says it distinguishes itself by offering a clean, bright and fresh smelling store. In our industry, the perception is that dry cleaners don’t seem to care about the appearance of their stores. So let’s go out of our way to brighten up our stores. Give a great first impression. Don’t let a new company use that against you.

Market your strengths. Talk about any new equipment or system you are using. Advertise it to the masses. Tell your customers. If you haven’t changed anything in the past several years, I ask why? The world is constantly changing. It’s important to change with it or you will get left behind.

Embrace technology. Our future customers have already done this. They will be looking to do business with companies who reach out to them on the Internet where they are looking to shop. I have heard people say that they could care less about using the Internet. That’s a big problem. The focus should be on how the customer wants to be reached, not how we want to reach them.

Be a business that supports your community. Get involved with local charities. Connect with those people who have supported you. By doing so your business will become a vital part of the neighborhood. Help it grow and flourish.

Finally, remember that there are opportunities in every situation. Seek out your opportunities and prepare for your adversities. I have seen businesses thrive in the same locations where earlier businesses have failed. Why did they succeed when others didn’t?

Simply put, they connected with their customers by giving them what they want in the way they want it.

Larry Hill, President, NCALC

NCALC Committees

Trusteeship

Chairman: Marvin Thomas. Vice Chairman: Simon Vick. Clerk: Martin Young

Members: Marvin Thomas, Simon Vick, Martin Young, Gloria Cowell, Mary Wells, John Baker, Any other past presidents in attednace, Treasurer Jimmy Lee, Allied Trade Rep Kevin Lawson, Sgt at Arms: We Sessoms, Tom Gosslin

Governmental Affairs

Chairman: Chris Edwards. Vice Chairwoman: Rita Foley. Clerk: Rick Kane

Members: Mack Davis, MAry Wells, Rick Kane, Ken Farrington, Manfred Wentz, Danny Shaffer, John Kim, Pres-Elect Tom Volk, Bart Wiliams, Brett Allen

Member Services

Chairman: Bayard Crumpton. Vice Chairman: David Makepeace. Clerk: Alan Hargis

Members: Young Bang, Al Cardenas, David Makepeace, John Thomas, Rich Volk, Bill Whitfield, Alan Hargis, Brenda Honeycut, Bill Kincaid, Tim Vick, Kyle Crumpton, Sue Farrington, Fran Sadler

Membership

Chairman: Alan Cheatham. Vice Chairwoman: Edwina Johnston. Cler: Charisse Lassiter

District Directos Edwina Johnson, Patrick Cardens, Charisse Lassiter, Mark Sugg, Roger Routh, Cooki Patel, Tom Wilson; At large directors John Kim (Fayetteville), Wes Brusnon, David Knight, Bob Smart, Cathy Richardson

Technology

Chairman: Ben Royal. Vice Chairman: Patrick Cardenas. Clerk: Patrick Collins

Members: Patrick Cardenas, Rita Foley, Larry Hill, Chris Edwards, David Makepeace, Patrick Collins

There’s room for you on NCALC Committees. Get involved. Call Sto 336-549-5486.

Member Matters

Marie Davis is looking for “Blankets for the Homeless Project” she is working on with the Raleigh Women’s Club. If you have any leftover/unclaimed blankets she can have, call her at 919-219-0037.

Long-time NCALC member Ted Rogers, Ideal Cleaners in Elizabethtown, closed his plant for the last time April 7, 2012. Ted’s parents Chester and Lee Rogers started the business in mid-1940 on $350 borrowed money.Ted, who is 74, said “It just wasn’t profitable any more ... even the churchgoing crowd don’t dress up like they used to,” according to an article in the Fayetteville Observer.

Mrs. Hannah Cowell, Keith’s Mother and Gloria’s Mother In Law, is back at home in Pamlico County! At least she can say she was able to travel some this Summer. Miss Hannah went from Duke in Durham to Bayboro (Home), then to Charlottesville, VA for surgery. From Charlottesville to Greenville, NC for rehabilitation and then recently back to her favorite recliner in Bayboro! To be sure, cards are certainly welcome as Miss Hannah continues improve and return to her routine. Mrs. Hannah Cowell, PO Box 68, Bayboro, NC 28515

NCALC VP for Government Affairs Chris Edwards is convelescing at home following surgery. By all reports, he won’t be out of commission long. Cards, flowers, fruit baskets and whisky can be sent or delivered to 7051Blue Water Drive, Belews Creek, NC 27009.

Our heartfelt sympathy to Tony Pendola, NCALC’s friend in DENR Customer Service, who lost his father June 7.

Tom Gosselin Passes Away

NCALC lost another good friend when At-Large Director Tom Gosselin passed away after a 14-month battle with cancer. Tom was an industry icon, well known and respected worldwide.

He had been  honored at home and abroad during his 43 years at the helm of Kleen Laundry & Drycleaning Services in New Hampshire, for his 20 years of service including two terms as president and 15 years as Convention Chairman for the North East Fabricare Association, 20 years on the Board of Directors of the International Drycleaners Congress and was serving on the DLI Board when he sold his business.

Yet, when he and his wife Maureen relocated to Barnesville (near Asheville), he couldn’t help contacting Bill Sessoms whom he had met at meetings at DLI. In September, 2007, Tom attended NCALC’s Fall Board meeting and was granted Life Active Membership (designed for retired cleaners) and an at-large director position. He was re-elected in 2008, 2010, and 2012.

Tom and Maureen’s daughter Nicole Gosselin Rosen is employed by Martinizing Drycleaning in Mooresville.

Condolences will reach the family addressed to Ms. Maureen L. Gosselin, 2983 Garden Blvd., Naples, FL 34105.

Are You I-9 Compliant?

ICE Increases Audits

Immigration and Customs Enforcement (ICE) has been stepping up its audit of I-9 Forms as a way to check if employers have hired only employment eligible workers.  With the creation of an Employer Compliance Inspection Center in Crystal City, VA to accommodate I-9 inspection of larger employers, ICE agents can ship I-9s to that location for off-site inspection.  Formerly the burden of an ICE agent going through many I-9s one by one might has discouraged their inspection, but no longer with this facility dedicated to larger employers. 

The statistics of recent ICE  audits and resulting fines are daunting.  Since 2009, ICE has conducted over 7,500 audits and imposed over $80 million in fines nationally.  In 2011 alone, ICE conducted 2,740 audits and assessed over $7 million in fines. 

Signs of an Impending ICE Audit

How does an employer know if it is going to be audited by ICE?  It doesn’t, but certain industries tend to be scrutinized more frequently: those that have historically employed unauthorized workers such as the hospitality, food processing and agricultural sectors, and, for obvious security reasons, industries involving critical infrastructure and public safety.

Other events can trigger an ICE audit regardless of industry.  Examples are receipt of a “no-match” letter from the Social Security Administration advising that the name and social security number of an employer’s worker do not match, an EEOC or Department of Labor investigation, an anonymous tip or arrest of a worker by law enforcement in North Carolina.  All 100 North Carolina counties are now enrolled in the Secure Communities program which means that individuals arrested by local law enforcement are supposed to have their fingerprints run through two separate databases: the FBI’s criminal database and ICE’s IDENT database.  The IDENT database was started in 1994 for the collection and processing of biometric and limited biographic information for both local law enforcement and the Department of Homeland Security of which ICE forms a part.  From the fingerprint run through ICE IDENT, if an individual appears to be  in the US illegally, he or she will be placed in  deportation and removal proceedings.  That individual’s illegal employment in the US can obviously implicate the employer for whom he or she has been working.

Fines and Other Sanctions for I-9 Violations

Fines are not insignificant for I-9 violations.  By statute, they are:

•Paperwork violations: $110 to $1,100 per violation

•Knowing violation or “turning a blind eye” which is a constructively knowing violation: $375 - $3,200 per employee for first offense, $3,200 - $6,500 for second, and $4,300 - $16,000 for third or more

•A pattern or practice of knowingly hiring or continuing to employ unauthorized aliens: fines of $3,000 per employee and/or 6 months imprisonment

•Harboring definition (felony): While knowing or recklessly disregarding that a person came to, entered or remains in US illegally, an employer harbors, conceals or shields the employee from detection.  Maximum penalty is 10 years imprisonment and the greater of $250,000 or twice the gain.  Conspiracy to harbor carries same sanctions but does not require an overt act.  Attempting to harbor, even if unsuccessful, is also a felony.

•Harboring includes paying an independent contractor while knowing or recklessly disregarding the contractor’s employees are illegal.  No overt act is currently necessary to be harboring through a subcontractor.

•Money laundering (another felony) occurs if any money is used which is proceeds of an unlawful activity, such as harboring, attempting to harbor, aiding and abetting, or conspiracy to harbor.

•Civil asset forfeiture - anything used in commission of the above violations (cars, trucks, machinery) and gross proceeds of the violation and any property traceable to those proceeds.

•Debarment – a discretionary penalty.  Any company contracting with a federal agency is subject to Federal Acquisition Regulations, e.g. DOT and DOD contracts.  If debarred, the company is entered on the Excluded Parties List System.  Many states also will not award contracts to companies debarred from federal contracts.

Those actually fined are the company itself, and can include its owners, managers, supervisors and anyone involved in the hiring process.  Fines can be levied against personal assets.

Two recent examples of substantial fines and even imprisonment follow.  A Texas vegetation management company paid $2 million in settlement as part of a criminal non-prosecution agreement with ICE.  In this situation, ICE’s I-9 audit revealed invalid personal identification which the company accepted as part of the I-9 process, falsely attesting on the I-9 that the employees’ documents appeared genuine.  It is noteworthy that this company had ignored that “no-match letter” indicating that certain employees’ names and Social Security numbers did not match SSA records.

A second recent example provides the potentially devastating results in terms of  fines and imprisonment when there is a total failure to complete I-9s for workers that were, in addition, transported and/or harbored as part of a conspiracy to hire illegal workers.  If convicted, the field operations supervisor of  the company in question faces a maximum aggregate sentence of 100 years in prison, a fine of $5 million, a supervised release term of 60 years, and a special assessment of $2,000.  The company itself faces a total maximum fine of $10 million, a probation term of five years on each count, and a special assessment totaling $8,000.What Should an Employer Do? Some Good Rules

Have a clear and uniform I-9 policy that complies with law.  The Form I-9 is deceptively simple and forms a key part of an employer’s hiring process of any new employee.  Obviously, failure to take the I-9 process seriously, or using an external I-9 vendor whose I-9 compliance and storage program are flawed, can be seriously disruptive of a business once ICE shows up.

Within 3 days of the employee commencing work, the I-9 Form’s Section 1 is completed first by the newly hired employee and subsequently by the employer at Section 2.  The reverse side of the Form lists acceptable documents from which the employee makes a selection to prove both his or her identity and employment eligibility.  These documents are shown to the employer who must determine their authenticity and record certain information about the document in Section 2.

Following are a few helpful hints for your HR Department when going through the I-9 process with a new employee:

•Be sure to use the most recent I-9 Form, found at www.uscis.gov/files/form/i-9.pdf.

•Have a copy of the Handbook for Employers: Instructions for Completing Form I-9 on hand, found at www.uscis.gov/files/form/m-274.pdf,.  This handbook guidesyou through the process, provides examples of valid identification and employment authorization documents, and specifies the very important retention period requirements on page 23. 

•Keep I-9s separate from other personnel records as they contain private information such as social security numbers.

•Be consistent: If you copy documentation provided by one employee, you must do so for all.

•Retain I-9s on paper, microfilm, microfiche or electronically observing the following 2 bullets:

•If scanned into a securely stored environment, destroy the paper I-9.

•Electronic signature capability must allow signatories to acknowledge they read the attestation, affix the electronic signature at the time of the I-9 completion, create and preserve a record that verifies the identity of person signing, and produce a printed confirmation with time and date to person providing the signature.

•Have a signed agreement with all subcontractors that its workforce on your premises is legal, with certification by an immigration attorney that its I-9s are in order.  It is best practice to have an indemnification clause in the event of ICE prosecuting your company for the independent contractor’s personnel on your premises.

•Know your independent contractor(s) and its/their employment history.

•Train your managers to know difference between independent contractors and employees and not treat independent contractors’ employees like your employees.

Don’t Be “Too Careful”

Finally, be careful of over-documenting or asking employees who look and sound different for additional documents as part of the I-9 process.  The Office of Special Counsel for Immigration Related Unfair Employment Practices, Civil Rights Division of the Department of Justice has jurisdiction over employers with 4-14 employees and prosecutes intentional acts of discrimination.  The EEOC enforces Title VII of the Civil Rights Act of 1964 prohibiting national origin discrimination.  EEOC has jurisdiction over employers with 15 or more employees and Title VII covers both intentional and unintentional acts of discrimination.

Update on North Carolina’s Adoption of E-Verify

In June, 2011, North Carolina joined the ranks of an increasing number of states requiring the use of E-Verify.  E-Verify is a free internet-based system that allows employers to determine employment authorization by checking an employee’s documentation against Department of Homeland Security and Social Security Administration databases.  E-Verify applies to certain federal contractors, but also is being adopted by states such as North Carolina, regardless of federal contracts being involved.  North Carolina counties, cities and public universities have already been required to register and participate in E-Verify since October 1, 2011.  Private sector employers’ participation in E-Verify is phased in more slowly based upon the employer’s size:

•Employers with 500 or more employees will be required to participate by October 1, 2012;

•Employers with 100 or more employees will be required to participate by January 1, 2013; and

•Employers with 25 or more employees will be required to participate by July 1, 2013.

Conclusion

ICE has said publicly that I-9 compliance should be treated with the same seriousness as tax filings.  An IRS audit is therefore no less serious than an ICE audit.  Be pro-active by having  sound, consistently applied policies in place, maintain meticulous records with annual internal audits, and require the same standards of the independent contractors on your premises.  Finally, if you decide to use an external electronic I-9 provider, know its history, and be sure it will not expose your company to liability because of  any potential flaws in its program or because of security breaches.

About the author: Jennifer Parser is an Attorney in the Raleigh office of Poyner Spruill LLP.  She practices in the areas of immigration law, employment and international law.  Jennifer may be reached at jparser@poyners.com or (919) 783-2955.

DSCA Program Stakeholder Update

June 2012

During the March 20, 2012 Stakeholder Work Group meeting, it was proposed and agreed that the Stakeholder meeting schedule be modified from quarterly to once every six months. It was also agreed that the Program would continue to provide quarterly updates as a way of keeping the Stakeholder Group informed about the status of the Program between the semi-annual meetings. The following update covers the period for April – June 2012.

Meeting Minutes

The March 20, 2012 Stakeholder meeting minutes are includes as Attachment 1. Please e-mail Pete Doorn (peter.doorn@ncdenr.gov) with any comments or corrections.

Staffing News

Effective May 1st, 2012, Delonda Alexander was promoted to the DSCA Remediation Unit Supervisor. Delonda has been with DENR since 2000 and with the DSCA Program since 2002, and she brings to this position a wealth of experience as an environmental engineer, risk assessor, and DSCA project manager.

Also, effective July 1st, 2012, Patrick Watters, an environmental engineer who has been managing the Manufactured Gas Plant (MGP) Program, will begin working half-time as a DSCA project manager, and continue administering the MGP Program on a half-time basis. Patrick has been with DENR since 1990 and with Superfund and Hazardous Waste Sections in the Division of Waste Management since 1992.

Fund Statistics

A summary of the fund statistics for July 1, 2011 through March 31, 2012 is included as Attachment 2. Fund receipts for January-March 2012 were $2,376,668.05, representing a 2.7% increase over the previous quarter. The receipts during the January-March reporting period reflect the receipt of $72,493.11 in petitioner co-payments, as well as a 4.5% increase in the solvent tax received and a 16% decrease in interest received over the previous quarter.

Disbursements for January-March 2012 were $1,585,429.75, representing a 17% decrease from the previous quarter. The disbursements during the January-March reporting period reflect a 6% decrease in administrative costs resulting from vacant positions, and a 19% decrease in fees and contract payments. This decrease reflects fewer large-scale remedial actions during the reporting period along with the DSCA Program’s efforts to balance our expenditures with the incoming receipts.

Remediation Program

Closures

In the site statistics included in Attachment 2, it should be noted that since the March 20th meeting, three additional clean-up sites have been granted “No Further Action” (NFA) status, bringing the total number of closed sites to 26. The NFA letters were issued for Campbell Cleaners in Troutman (DSCA Site #49-0003), Ho Cleaners in Charlotte (DSCA Site #60-0025), and Plaza Cleaners in Charlotte (DSCA Site #60-0050). A complete list of closed DSCA clean-up sites can be found at http://portal.ncdenr.org/web/wm/dsca-closed-sites.

Site Work

BB&T, Durham (DSCA Site 32-0013): DSCA responded to comments received during the public comment period for the Remedial Action Plan (RAP), and the RAP was finalized on April 18, 2012. During May 2012, RAP preparation activities were completed, and on May 30 2012, removal of asphalt, building slabs, and footers was initiated. As of this update, the building materials and a limited area of soil has been excavated, tested, and removed from the site for proper disposal. DSCA is communicating regularly with local neighborhood community members and other interested parties. Updates on the remediation activities are available at http://portal.ncdenr.org/web/wm/dsca/bbt_updates.

Smitty’s Cleaners, Fayetteville (DSCA Site #26-0003): During the April-June 2012 period, DSCA and our state-lead contractors have been working with PWC (Fayetteville’s Public Water Commission) and the local residents to get easement agreements finalized for the waterline installation. Construction permits have been issued with construction expected to be underway during the Fall of 2012.

Risk Assessments

The Remediation Program has been developing procedures for utilizing a new risk assessment tool (a product developed by GSI Software), and in May 2012 the Program presented the risk assessment tool and procedures to the staff and state-lead contractors. The GSI product allows DSCA a greater degree of flexibility to update toxicity information and standards as new information becomes available.

Next Stakeholder Work Group Meeting

The next meeting is scheduled for 10:00 am on September 25, 2012, in the 5th Floor Board Room in the DENR Green Square Building located at 217 West Jones Street in Raleigh. Prior to the September meeting, an agenda will be provided.

March 20, 2012

DSCA Stakeholder Work Group

Meeting Minutes Page 1

Minutes

March 20, 2012

DRY-CLEANING SOLVENT CLEANUP ACT (DSCA) PROGRAM

STAKEHOLDER WORK GROUP MEETING

I. Welcome and Opening Remarks

Peter Doorn opened the meeting with general comments. Attendees introduced themselves and the sign in roster was circulated. The following individuals were present:

Mack Davis Retired

Laura Drey Homeowner

Christopher T. Edwards A Cleaner World

Rita Foley White Star Cleaners

Rob MacWilliams URS

Laura Powers Withers & Ravenel

Genna Olson ATC Associates

Mike Ranck URS

Brian Ray AECOM

Kathy Roush AMEC

Kevin Sommers ATC Associates

Jeff Tyburski Mid-Atlantic Associates

Katie Watkins AMEC

Christie Zawtocki Hart & Hickman

Peter Dollander BB&T

James Joyner Solutions – IES

Cathy Cralle Jones Law Offices of Bryan Brice, Jr.

Jack Butler NC Division of Waste Management – Superfund Section

Pete Doorn NC Division of Waste Management - DSCA Program

Delonda Alexander NC Division of Waste Management - DSCA Program

Dianne Thomas NC Division of Waste Management - DSCA Program

Billy Meyer NC Division of Waste Management - DSCA Program

Jay King NC Division of Waste Management - DSCA Program

Scott Stupak NC Division of Waste Management - DSCA Program

Mike Cunningham NC Division of Waste Management - DSCA Program

Nancy Dunn NC Attorney General’s Office

Tony Pendola NCDENR EAP

The minutes from the December 2011 meetings were approved by the group.

II. Staff Changes

Peter Doorn updated the group on the Remediation Branch Supervisor position. Interviews are complete and he is working with HR to move forward.

III. DSCA Fund Statistics

Peter Doorn handed out the DSCA Fund Statistics handout containing information through December 31, 2011. The fund balance appeared steady for this period, which is halfway through the fiscal year, and receipts have also remained steady. We are getting close to the administrative cap.

Site statistics were compiled through March 15, 2012. Twenty-three sites have been closed to date with two additional in the public comment period right now. There were 8 additional sites certified this quarter.

Annual petitioner site update letters went out at the beginning of the year.

IV. Alternative Solvents Update Study Group

Jack Butler provided an update on the Alternative Solvents Workgroup. There has been no activity due to funding and time availability.

V. Site Work

DSCA Site 26-0003, Smitty’s Cleaners, Fayetteville, Cumberland County – DSCA is working with Fayetteville’s PWC to install a water supply line and connect approximately 14 properties to municipal water. The permits have been issued for the waterline and work is projected to begin at the end of May-beginning of June. Chris Edwards asked if the money taken out of the DSCA Fund for the Bernard Allen Fund was used for this site. It was used for a waterline extension in Fayetteville but not for this site. Chris also asked if the money taken from the DSCA Fund for Green Square had been used up and whether or not we would receive any excess back. Jack and Peter will check into this.

DSCA Site 32-0013, BB&T, Durham, Durham County – A public meeting was held on March 5, 2012 in which the Remedial Action Plan was presented. Staff is working on addressing and answering the numerous comments and questions that were received.

VI. Compliance

Peter Doorn stated that there is one enforcement action headed out the door and that they are currently working on streamlining that process. Cathy Jones asked if this was a civil penalty assessment and Peter Doorn confirmed that it was.

VII. Other Issues

Peter Doorn proposed that our meeting frequency be changed to once every six months. There was a discussion and it was decided that meetings would be once every six months with a written update on the fund statistics, site statistics and compliance emailed out to the group quarterly.

Chris Edwards inquired about whether site updates and sample information was available on the web yet and what the status of that was. Scott Stupak answered that the Department is testing

the GWDSS right now and they are starting to install the software on staff computers. They are shooting for midsummer to begin loading information. He pointed out that we are currently using Google Maps for some site information and sample data. Chris Edwards suggested that a document similar to the one that was put together three years ago would be helpful for PR.

VIII. Next Work Group Meeting

The next stakeholder meeting is scheduled for Tuesday, September 25th at 10:00 am.

Receipts:            

      Receipts:

Solvent Tax Revenue:278,940

      Solvent Tax Revenue:10,538,520

Sales Tax Revenue:6,367,804

     Sales Tax Revenue:69,606,496

Petitioner Payments (fee/copay):92,541

     Petitioner Payments (fee/copay):1,044,202

Miscellaneous (file copying):45

     Miscellaneous (file copying):357

Rebate:-

     Rebate:28,794

Interest:81,765

     Interest: 7,392,912

Total Receipts:6,821,095

     Total Receipts:88,611,281

Disbursements:   

     Disbursements:

Dept. of Revenue Admin: -

     Dept. of Revenue Admin: 57,272

Reimbursements/Payments:-

     Reimbursements/Payments 1,905,567

Contracts:4,231,60 

     Contracts:53,949,615

Haz Waste Fees:223,511

     Haz Waste Fees:872,629

County Well Permit Fees:26,280

     County Well Permit Fees:145,650

Transfer to Inactive Haz Sites:

     Transfer to Inactive Haz Sites:400,000

Transfer to Green Square Proj:

     Transfer to Green Square Proj:1,291,035

Transfer - Budget Shortfall:-

     Transfer - Budget Shortfall:6,475,813

DENR Admin:1,036,933

     DENR Admin:9,266,848

Total Disbursements:5,518,332

     Total Disbursements:74,364,429

Fund Balance:14,246,852

Encumbered in Contracts:9,836,087

(as of 6/20/2012)

DSCA Site Statistics (through 6/26/12)

Identified Contaminated Dry-cleaning Sites:369

Sites Certified:293

Sites Determined Ineligible:22

Sites Not Certified:54

Sites Closed:26

Estimated Contaminated Sites:~1200

(contamination not yet identified)

Known Currently Operating Facilities705

(includes 62 facilities inspected for intermittent operations)

Are You Covered? Boiler and Systems Breakdowns

By Darrell W Wilson, CIC

Boiler & Machinery, Systems Breakdown Insurance coverage is a must have part of a Dry

Cleaner’s Insurance program. But are all policies created equally?? “NO”

Let’s start our discussion by defining what this coverage “is” by looking at some of the definitions of the “words” in the policy. (These are excerpts from an ISO Standardized Equipment Breakdown Coverage Form)

WHAT are the companies covering?

“Boilers and Vessels” means:

a. Boilers;

b. Steam piping;

c. Piping that is part of a closed loop used to conduct heat from a boiler;

d. Condensate tanks; and

e. Unfired vessels which, during normal usage, operate under vacuum or pressure, other than the weight of contents

  “Covered Equipment” means the following:

(1) Unless specified otherwise in the Declarations:

(a) Equipment that generates, transmits or utilizes energy, including electronic communications and data processing equipment; or

(b) Equipment which, during normal usage, operates under vacuum or pressure, other than the weight of its contents.

(2) Except as specifically provided for under Off Premises Property Damage, Service Interruption, Contingent Business Income and paragraph (2) of Perishable Goods, such equipment must be at a location described in the Declarations and must be owned or leased by you or operated under your control.

WHAT triggers a Claim?

Covered Cause of Loss – “Accident”

The Covered Cause of Loss for this Equipment Breakdown Coverage is an “accident.” Without an “accident,” there is no Equipment Breakdown Coverage.

a. “Accident” means a fortuitous event that causes direct physical damage to “covered equipment.” The event must be one of the following:

(1) Mechanical breakdown, including rupture or bursting caused by centrifugal force;

(2) Artificially generated electrical current, including electrical arcing, that damages electrical devices, appliances or wires;

(3) Explosion, other than combustion explosion, of steam boilers, steam piping, steam engines or steam turbines;

(4) An event inside steam boilers, steam pipes, steam engines or steam turbines that damages such equipment;

(5) An event inside hot water boilers or other water heating equipment that damages such equipment; or

(6) Bursting, cracking or splitting.

What is NOT an ACCIDENT?

b. None of the following is an “accident,” however caused and without regard to whether such condition or event is normal and expected or unusual and unexpected:

(1) Depletion, deterioration, rust, corrosion, erosion, settling or wear and tear;

(2) Any gradually developing condition;

(3) Any defect, programming error, programming limitation, computer virus, malicious code, loss of “data,” loss of access, loss of use, loss of functionality or other condition within or involving “data” or “media” of any kind;

(4) Contamination by a “hazardous substance”; or

(5) Misalignment, miscalibration, tripping off-line, or any condition which can be corrected by resetting, tightening, adjusting or cleaning, or by the performance of maintenance.

What can you expect the companies to pay?

a. Property Damage

We will pay for physical damage to “covered property” that is at a location indicated in the Declarations at the time of the “accident.”   THIS IS FOR THE BUILDING & CONTENTS WHEN THE BOILER EXPLODES WHICH IS EXCLUDED IN THE COMMERCIAL FIRE PROPERTY COVERAGE.

b. Off Premises Property Damage

If you have transportable “covered equipment” that, at the time of the “accident,” is within the Coverage Territory, but is not:

(1) At a location indicated in the Declarations; or

(2) At any other location owned or leased by you, we will pay for physical damage to such “covered equipment”

c. Business Income   (IS THIS IN YOUR POLICY?)

(1) We will pay your actual loss of “business income” during the “period of restoration” that results directly from the necessary total or partial interruption of your business.

(2) We will also pay any necessary expenses you incur during the “period of restoration” to reduce the amount of loss under this coverage. We will pay for such expenses to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage.

(3) We will consider the actual experience of your business before the “accident” and the probable experience you would have had without the “accident” in determining the amount of our payment.

d. Extra Expense

We will pay the reasonable and necessary “extra expense” to operate your business during the “period of restoration.”

k. Expediting Expenses

With respect to your damaged “covered property,” we will pay the reasonable extra cost to:

(1) Make temporary repairs

(2) Expedite permanent repairs or permanent replacement.

The above definitions and coverage’s are only a partial list and in no way represents the complete policy language. I have “Highlighted some of the most important areas” There are very few stand alone policies written and most of the Boiler & Machinery and/or Systems Breakdown are in included in a Package Policy and/or a Business Owners (BOP) Policy.

For a Dry Cleaner, there are several areas that need to be verified that are in your policy.

1) Will the Extra Expense/Expediting Expense pay to bring in temporary equipment while a replacement or repairs are being made to reduce the loss of customers?

2) What time period deductible is in the policy for loss of income to start paying? 0? To 72 hours?

3) Is your policy “specifically” designed for a Dry Cleaners with endorsements that actually pertain to your industry or is it a Business Owners Policy that also will insure Florists, Pet Groomers etc.

4) Does your Insurance Company have the Loss Control Programs and understand your business and have the people who are experts in YOUR needs.

Ask your agent to review your policy with you and ask the questions. A good agent will tell you that he may have to get back with you after a review of the forms and a conversation with the Company. Make sure that you surround yourself with an agent and a company that insure a lot of clients in your industry and have a knowledge of what you need. A good insurance program is the difference in staying in business at a time of a loss or closing the doors. 

Darrel Wilson, V. P of Property & Casualty of The Assurance Group, started in the Insurance business January 1, 1980, having grown up in the firm his father “Bill” started, Bill Wilson Insurance, in 1960. He has over 31 years experience in all lines of the industry and has held the “CIC” Certified Insurance Counselor designation for 25+ years. He merged Wilson Insurance Associates with The Assurance Group Family in July, 2011, and is in charge of growing the Property & Casualty, Group & Individual Medical division. 

Darrell has been an Associate Member and supporter of NCALC for many years, and assisted in the passage the Dry Cleaning Solvent Cleanup Act. He has been a speaker and regular sponsor at NCALC annual conventions and has handled the insurance needs of the many North Carolina launderers & cleaners for over 25 years.

Darrel is an authorized broker for NCALC’s endorsed insurance program, Irving Weber Associates (IWA).He can be contacted at 1-800-215-7630.

New and Renewing Members

Welcome New Member

Bill & Karen Morgal

Permac Machinery

1112 Associates Drive

Indian Trail, NC

1-800-287-0870

Thanks for Renewing

Allan Cheatham

Shallotte Cleabers

Shallotte, NC

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