Meeting Minutes 3-13-2023

MINUTES OF REGULAR MEETING OF BOARD OF TRUSTEES

HOLIDAY SHORES SANITARY DISTRICT

Monday, March 13, 2023

The Board of Trustees of the Holiday Shores Sanitary District met on the above date in regular session pursuant to laws and rules of said Board of Trustees and in accordance with the terms of the notice of regular meeting.

Richard Hayes, President and Trustee called the meeting to order.  Trustees Brennan Murphy and Julie Romano were present.  Also present were Carla Lankster, District Clerk and Joe Urban, Operations.

OPEN FORUM

APPROVAL OF MINUTES

The minutes of February 13, 2023 regular meeting were submitted for approval.  Ms. Romano made a motion to approve the minutes for the February 13, 2023 regular meeting.  Mr. Murphy seconded the motion and all Trustees voted “Aye”.

FINANCIAL                                                                                                                                                                   

The Summary of Accounts and Statement of Revenues and Expenses were reviewed for the month-end balances on February 28, 2023.  Ms. Romano would like a report format for the Statement of Revenues and Expenses that would be easier to look at.  Then, if the total numbers do not look good, an explanation can be given on the details.  The report would come from the actual information, but only have about 3 or 4 totals.  The report from the Asyst software has many issues, and is hard to understand.

Ms. Romano started the conversation of the annual budget.  There needs to be some excel spreadsheet reports to analyze the revenues and expenses to come to better budget numbers.  The Asyst software reports are not enough and do not give good information.  The more accurate the numbers are, the better the flow into the budget numbers.  The trends have been towards consumers conserving to save money, including newer appliances, causing revenues to level out or even decreasing. 

DISBURSEMENTS

Accounts Payable disbursements were reviewed for February 2023.  Ms. Romano made a motion to approve the February 2023 disbursements.  Mr. Murphy seconded the motion and all Trustees voted “Aye”.

Certop, Inc. Invoice #03012023.06, dated 3/1/2023 for $5,000.00 was submitted for payment.  This invoice is for a contracted Class A Water Operator and is for the month of February 2023.  Mr. Murphy made a motion to approve Certop Inc. Invoice #03012023.06, for February 2023 Class A Water Operator services.  Ms. Romano seconded the motion and all Trustees voted “Aye”.

There was one invoice for Vadim Municipal over the amount of $500.00 for printing and mailing of the January 31, 2023 water and sewer bills, that needed Trustee signature this month. There was also one invoice for the pre-approved quarterly worker’s compensation insurance from Cincinnati Insurance in the amount of $2,321.00. The quarterly liability insurance invoice had not been received at the time of the meeting.  The invoices were signed by Mr. Hayes.

APPROVAL OF APPLICATIONS                                                                                                                                              The water and sewer applications for February 2023 were reviewed.  Mr. Murphy made a motion to approve the February 2023 applications.  Ms. Romano seconded the motion and all the Trustees voted “Aye”.

OTHER

UNFINISHED BUSINESS

Finalize and approve the one-year Workers’ Compensation and Liability/Auto/Umbrella insurance policies, renewing March 17, 2023.  There was a discussion and decision to renew the policy at the February meeting, with a few policy changes.  However, there was not a formal vote.  Ms. Romano made a motion to approve a one-year renewal of Worker’s Compensation and Liability insurance policies with Cincinnati Insurance.  Mr. Murphy seconded the motion and all Trustees voted “Aye”.

NEW BUSINESS

There has not been an increase to the water and sewer consumption rates in three years.  During that same period, costs have increased for materials and services, at a very fast pace.  Also, there has been a decline in household average, monthly water use, affecting total revenues.  There was a discussion of various necessary changes to rates and rate structures.  Some of the changes are included in the ordinances being approved at this meeting.  Ms. Romano has analyzed the District’s current revenues and expenses, and is recommending a rate increase of 24% as soon as possible for both water and sewer.  She has come to this percentage based on how much expenses have gone up in recent years.  Looking at the expenses based on an expected increase of 6 percent in the coming year, at least a 36 percent increase is actually needed on the rates. There will be additional analysis in the upcoming months to determine additional rate structure changes that will be necessary to meet the ongoing increases in costs.

Also included in the Rate amendments will be a change to Disconnection and Reconnection of service due to non-payment of a delinquent notice, by the due date.  The disconnection will be increased from $25.00 per occurrence to $50.00.  The reconnection fee will increase from $25.00 per occurrence to $100.00.  For after hours reconnection, there will be an additional $200.00 fee.

Amendment I to Ordinance 2006-02 is an ordinance to increase the water consumption rate by 24%, from $6.05 per one thousand gallons, to $7.50 per one thousand gallons.  This ordinance is also addressing an increase to the water disconnection and reconnection rates.  Ms. Romano made a motion to approve Amendment I to Ordinance 2006-02.  Mr. Murphy seconded the motion, and all Trustees voted “Aye”.

Amendment I to Ordinance 2006-04 is an ordinance to increase the sewer consumption rate by 24% from $3.74 per one thousand gallons, to $4.64 per one thousand gallons.  This ordinance also addresses disconnection and reconnection rates, and an increase in the cost of concrete for grinder pump tanks for new construction.  Mr. Murphy made a motion to approve Amendment I to Ordinance 2006-04.  Ms. Romano seconded the motion, and all Trustees voted “Aye”.

OPERATIONS

There were fewer grinder pump changes in the month of February.  HMG Engineering is on schedule to get the project plan to the IEPA, for the Wastewater/Lagoon project.

ADJOURN TO EXECUTIVE SESSION

Move to closed, executive meeting pursuant to Statute 5ILCS 120/2 (C)(1) and (C)(2), to discuss Employee Compensation schedules.  Ms. Romano made a motion to move to Executive Session.  Mr. Murphy seconded the motion and all Trustees voted “Aye”.

ADJOURNMENT OF REGULAR MEETING

Returning from the Executive session, Ms. Romano made a motion to adjourn the regular meeting.  Mr. Murphy seconded the motion and all Trustees voted “Aye”.

Respectfully submitted, Carla Lankster, District Clerk