Meeting Minutes 7-8-2024

August 19, 2024 Carla Lankster

MINUTES OF REGULAR MEETING OF BOARD OF TRUSTEES

HOLIDAY SHORES SANITARY DISTRICT

Monday, July 8, 2024

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 meetings.

Richard Hayes, President and Trustee called the meeting to order. Trustees Brennan Murphy and Jeff Hebenstreit were present. Carla Lankster, District Clerk was present. Rob Clarkson, General Manager, was not able to attend, due to an emergency. Attorney, Erin Phillips was in attendance. There were also four members of the Holiday Shores community present for a discussion in Open Forum.

OPEN FORUM

Mr. Alex Carlton of lot 454 submitted a pool credit request for the month of June. Mr. Hebenstreit made a motion to approve the pool sewer credit in the amount of $33.93. Mr. Murphy seconded the motion and all Trustees voted “Aye”.

Mr. Matt Baumgartner of lot 546 submitted a pool credit request for the month of June. Mr. Hebenstreit made a motion to approve the pool sewer credit in the amount of $90.36. Mr. Murphy seconded the motion and all Trustees voted “Aye”.

Mr. Matt Weissenborn of lot 220 submitted a pool and leak credit request for the month of June, in the amount of $189.80. Mr. Hebenstreit mentioned that we have allowed a 25% credit for the water for a leak. However, since it cannot be determined what portion is the pool overflow leak and what is the pool filling, we cannot apply it in this situation. Mr. Hebenstreit made a motion to approve the pool Sewer credit in the amount of $189.80. Mr. Murphy seconded the motion, and all Trustees voted “Aye”.

Mr. Jeff Hebenstreit of lot 484 submitted a sewer credit request for a leak in his water service line that was detected on Friday, March 29, and was repaired in the first week of April. The request is for a sewer credit for 8,797 gallons in the amount of $67.21 and the 25% water credit, allowed for outside leaks, in the amount of $19.79. Mr. Murphy made a motion to approve a sewer credit in the amount of $67.21, and a water credit in the amount of $19.79. Mr. Hayes seconded the motion, and Mr. Hebenstreit abstained. Two voted “Aye”, and one vote “Abstained”.

Mr. Hebenstreit asked to have something on the agenda for the August meeting, that customers would not have to attend the meeting for a pool credit request. However, if there is something unusual, such as lawn watering or a leak, they should attend to explain the situation. Also, include a minimum dollar amount and a minimum number of gallons for the request to be considered. A possible amount could be $20.00-$30.00, and/or 3,000 or 4,000 gallons.

APPROVAL OF MINUTES

The minutes of June 10, 2024 regular meeting were submitted for approval, with the Manager’s Report for Operations attached. Mr. Murphy made a motion to approve the minutes for the June 10, 2024 meeting. Mr. Hayes seconded the motion and Mr. Hebenstreit abstained, due to not being in attendance for the meeting. Two voted “Aye”, and one vote “Abstained”.

FINANCIAL

The Summary of Accounts and Statement of Revenues and Expenses were reviewed for the month-end balances on June, 2024. The Water Plant loan was paid on May 31, 2024, because it was due Sunday, June 2, 2024. This is the Summary for the Fiscal Year-end, June 30, 2024. No Motion necessary.

DISBURSEMENTS

The June 2024 Accounts Payable disbursements were reviewed for approval. Mr. Hebenstreit made a motion to approve the June 2024 disbursements. Mr. Murphy seconded the motion and all Trustees voted “Aye”.

Unsell, Schattnik and Phillips submitted an invoice for legal fees from April 26, 2024 through June 21, 2024. Mr. Hebenstreit made a motion to approve the invoice for legal fees. Mr. Murphy seconded the motion, and all Trustees voted “Aye”. Mr. Hebenstreit requested that we consider increasing the legal budget for FY 2024-2025, due to requesting Ms. Phillips’ presence at more of the upcoming meetings.

Mr. Hayes signed invoices over $500.00. The invoices include the previously approved invoice for annual maintenance for the Asyst software, an invoice from Michael Schaefer for mowing at the lagoon, the IEPA water tower loan due 7/31/2024, and two adjustment invoices from Cincinnati Insurance for an addition.

The Audit Engagement letter was submitted from Scheffel Boyle, including the expected cost of the FY 2023-2024 audit, which is a 7% increase over FY 2022-2023 audit and a cost involving disclosures for the new cloud software that has been contracted beginning in the upcoming fiscal year 2024-2025. Mr. Hebenstreit made a motion to approve the Scheffel Boyle Engagement letter. Mr. Murphy seconded the motion, and all Trustees voted “Aye”. Mr. Hayes, President signed the letter.

APPROVAL OF APPLICATIONS Water/Sewer applications for June 2024 were submitted for approval. There were 10 property transfers and 1 new sewer only connection. Mr. Murphy made a motion to approve the June 2024 Applications. Mr. Hebenstreit seconded the motion and all Trustees voted “Aye”.

OTHER

Mr. Hebenstreit requested an Action Item list for Rob Clarkson, for items that need to be accomplished. Note on these Minutes that this list is approved by the Trustees to be written up by Ms. Lankster from this meeting discussion, and share with Mr. Clarkson and the Trustees.

UNFINISHED BUSINESS

Ms. Erin Phillips started this discussion of some questions that were brought up at the June meeting and to be addressed at this meeting, however some of items are issues that are continuing to go on with the IEPA. Ms. Phillips also is bringing forth a structure and limitation to future questions and time limits.

Jennifer Halverson, lot 1829 is in attendance at this meeting and had several questions at the June meeting:

Question: The IEPA has no record of the Class A test being taken by two employees in December 2023.
- Response: Ms. Phillips stated that both employees did take the test in December 2023 and there were results. Ms. Phillips is recommending, in the future, we will not disclose test scores, only if the employee passed or did not pass the test. Also, the IEPA is not showing one employee taking the test in February 2024. There was not a test taken in February, 2024. Mr. Hebenstreit is requesting that the Trustees will be provided with the test results in the future.
Question: The Class A test can be taken up to four times a year. Are they taking the test that often?
- Response: Another employee has recently taken the test in June, but has not received results. Mr. Hebenstreit is requesting that if the employee does not pass the test in June, he will take the test four times this year in August, October and December. Mr. Hebenstreit made a motion to approve that the Class A test be taken four times a year, until they receive a passing result. So, that would be August, October and December, pending the results of the June test for Joe. Mr. Murphy seconded the motion, and all Trustees voted “Aye”.
Question: What position is showing a job description including the Class A Certification? Is the Class A position listed on the website?
- Response: There is an item, later in the Unfinished business, for a contract to be approved and signed. Therefore, this will be addressed later in the meeting. Ms. Phillips also discussed that she will be meeting with the Attorney General’s office to discuss issues with the IEPA and clarify what is required to be on the website. Mr. Hebenstreit also has requested that Mr. Clarkson check the IEPA website to see who is listed as the Class A Operator. Mr. Hebenstreit checked it and there are two people listed, one of which has not been an employee for many years. He wants this to be on the action item list for Rob to make sure this is corrected. Ms. Phillips stated that the burden does fall on HSSD to make sure the information on the IEPA website is correct. We should make a request to the IEPA and document it, then follow up if it is not corrected.
Question: Why is there only a URL to the website published in the Holiday Times and not the complete CCR report this year? There was a violation listed on the report, so, was a notification of the violation sent to the community?
- Response: Mr. Clarkson is not in attendance and would have more information on this item. However, there was a deadline for the publication of the CCR report. Therefore, the IEPA will notify HSSD if there was a problem with the publication. Mr. Hebenstreit feels this is one of the most important reports of the year. He feels the Board should see this report in the future, before it is published. Ms. Lankster stated that the report is created by the IEPA from the lab results for water testing sent to Pace Analytical. We do not create the report. Mr. Hebenstreit wants the entire report published in the Holiday Times, in the future, after the Board reviews it. He wants it on the August Agenda for discussion.
Question: The Cross Connection survey included the material line survey. It does not list lead as an option, so will the material line survey be mailed again?
- Response: More investigation is needed.

Julie Romano, lot 1065 had several questions at the June meeting, but not in attendance tonight:

Question: Studying for Class A testing is being done on work time. The test has been taken multiple times, and have not passed, and should the District be paying for this? Did they take the test in December 2023 and February 2024?
- Response: Mr. Hebenstreit is OK with studying and the test be done on work time, but also on personal time. He indicated he believes in continuous learning as part of the job. The rest of the questions were previously discussed.
Question: Why was the CCR report not published in full, in the Holiday Times, as in previous years? Why is there only a URL for the website, and there was a violation listed?
- Response: This was previously discussed and Mr. Clarkson would have more information at the next meeting.
Question: Why was the question regarding the material line survey added to the Cross Connection Control Survey? Why did it not include all types of possible service lines? The Survey was not submitted by the due date in April, and no extension was filed. Will there be fines?
- Response: Ms. Phillips said this should discussed at the next meeting, when Mr. Clarkson is able to attend, in unfinished business.
Question: According to Illinois 65ILCS 5/8/10.5, the HSSD website is required to have certain postings that are not included. A related Public Notice 98-0738 was also noted, regarding the posting of financial information and the previous year’s audit report on the website. Also, the IEPA noted that the Class A operator should be listed on the website.
- Response: Ms. Phillips is still questioning what is required on the HSSD website and what is to be on the IEPA website, in some cases. Ms. Lankster also stated that HSSD does not have an IT employee on staff, they are outsourced. Nobody is on staff qualified to do IT work. Ms. Phillips in reply stated this is one of the questions she will ask the AG office, what is required by the IEPA under various circumstances.
Question: What kind of penalties for violations could we be assessed? Is there exposure to penalties?
- Response: Ms. Erin Phillips answered at the June meeting, that we are not the IEPA, so we would not have that information. We do not assess the penalties. This will be on the August agenda.

Patty Davenport, lot 1815.

Question: Ms. Davenport asked why a job description was requested prior to the June 10th meeting, and was not provided?
- Response: Erin Phillips asked her if this was in a FOIA request or was it brought up at the previous meeting? Ms. Phillips responded at this meeting, if this was a FOIA request, it was reviewed by her office for completeness, and everything that was available was provided in that FOIA Request.

The contract for Mr. James C. White to be the Class A contracted employee for HSSD was presented for approval. Mr. Hebenstreit had a question of cancellation when someone on staff passes the Class A test, and it is listed as a 30-day written notice. Mr. Hebenstreit made a motion to approve the contract. Mr. Murphy seconded the motion and all Trustees voted “Aye”. President, Mr. Hayes signed the contract.

The Budget Adjustments for the Fiscal Year 2023-2024 were submitted for approval. Mr. Hebenstreit made a motion to approve the FY 2023-2024 line-item Budget Adjustments. Mr. Murphy seconded the motion, and all Trustees voted “Aye”.

It was requested at the June meeting that a letter be typed up to Holishor Association regarding notification of digging. This is tabled to the August meeting.

There is a webinar that we signed up for with Central Square. It is available for us to watch for free information on Grant Opportunities. Mr. Hebenstreit said this a great idea, and we should take the time to watch it. He also stated that he previously asked Rob to come up with a list of grants that have been reviewed to present at the meetings, and what grants are available and which are not available for HSSD to apply for. He wants this on the Action Item list for Rob, and that it should be posted on the website and updated with any new information.

Another Action Item should be for Joe to put in the effort to study and pass the Class A Test. This should be a priority.

Electronic Availability of Ordinances. Ms. Phillips mentioned a service from Muni-Code in which they would create files to create electronic files. We would probably start with the Ordinances and Resolutions, but she is not aware of the cost. However, we must get permission from the state of Illinois to shred any files. We do have permission to shred some items now, that have not been done yet.

Mr. Hebenstreit discussed the bill that was sent to Holishor Association for the Sewer Main By-pass. In the last Holishor Board meeting minutes, and they have denied payment again. The HSSD Trustees have decided to not pursue this any further. Mr. Hebenstreit noted that this should be included on the next Agenda for an official vote.

NEW BUSINESS

The Tax Levy Ordinance No. 2024-2025T was presented for approval. Ms. Lankster noticed an amount that was incorrect. In section two, at the beginning of the paragraph, the amount is from the 2023-2024 ordinance. The amount is listed as “The sum of $223,799 shall be and is hereby levied…for FY 2024-2025”. This amount should be $234,967. Ms. Lankster will correct this amount and will sign the first page. Mr. Hebenstreit made a motion to approve with that correction, Ordinance No. 2024-2025T. Mr. Murphy seconded the motion, and all Trustees voted “Aye”. Mr. Hayes signed page 2 of the Ordinance and he signed the Truth in Taxation certificate of Compliance that HSSD is not requesting more than a 5% increase over the previous year’s Tax Levy request.

An Ordinance No. 07082024 was presented for approval. The ordinance is regarding remote, electronic attendance by a Trustee, if unable to attend in person, due to work, illness or other specific allowed reasons. At least two of the three Trustees must be in attendance, in person, for this ordinance to be valid for the third Trustee. Mr. Murphy made a motion to approve Ordinance No. 07082024. Mr. Hebenstreit seconded the motion and all Trustees voted “Aye”.

There was a short discussion of the preliminary budget for fiscal year 2024-2025. Ms. Lankster will be making some adjustments to the budget that was presented at the May 2024 meeting, after more calculations. An updated budget will be presented at the August 2024 meeting.

Mr. Hebenstreit attended the AWWA Conference, and has suggestions and Action Items for Rob.

He saw an alternative to the Locator that Schulte Supply gave us a bid on. He wants Rob do some research and comparison. Then provide a recommendation on which one would be his choice to proceed with.
The Department of Homeland Security will do a free cyber security assessment for our vulnerability. Jeff wants Rob to contact them for information and sign up.
The EPA is conducting assessments for Polyfluoroalkyl substances (PFAS), AKA Forever chemicals. The EPA will be putting regulations in place over the next few years, which may lead to necessary upgrades to the water plant to remove the substances. The information from EPA implies that small water systems may be included in the study, with expenses for the testing covered by the EPA. Mr. Hebenstreit requested Rob to see about participating in the water assessment that would be covered by the EPA.
There is free training for Disaster Management from FEMA/DHS. They will come to our area for training in both water and sewer. We should research and sign up for the training.
There is a natural bio-degradable product that would be an alternative to the Cherry Lift-off we have been using in the main lift station. It is a de-greaser, protects the pumps and an odor eliminator. We should review this product for consideration, and make a recommendation to the board to pursue further.
Water Operator.org has training available for Joe and Rob, that they could take advantage of.
The AWWA Show will be in Denver next year. Mr. Hebenstreit recommended that HSSD send a staff member to the conference, likely Joe or Rob. It would probably cost about $1,500.00.

Mr. Hebenstreit has an idea for Fall or Spring to have an Open House to show the community the process for both water and sewer. We could have it set up at the office. However, Ms. Phillips did mention that if all three Trustees would be in attendance, it would have to be an Open, posted meeting.

OPERATIONS REPORT

The report was discussed briefly, but since Rob is not in attendance, this can be tabled for the August meeting.

A quote from Schulte Supply was submitted for an AML Pro Series locator, with GPS subsurface, for locating unmarked water and sewer lines. This item will be tabled until the August meeting, after Rob gets a quote for the item found at the AWWA Conference.

Other Open Forum

Mr. Anthony Harrell of lot 560 joined the meeting, in progress, and he did have a question, before we adjourn to Executive Session. He had a comment regarding the odor neutralizer that was mentioned earlier in the meeting. He has been in the Water/Wastewater industry for 28 years, and he is familiar with the product. Many industries alleviate odors with misters around the facility that kicks on when the pump comes on, by using an actuator. He was on Holishor Board, and they tried to apply for grants, and found that the median income is too high in Holiday Shores. Mr. Harrell also thinks HSSD should publish the full CCR Report in the Holiday Times, so people can look at it and see the quality of our water, because we have great water here. Mr. Harrell excused himself prior to the executive session.

Jeff said The Water consumption report average is down to 3,500 gallons per month from 3,600 at the fiscal year end. We should change the gallons to reflect the change for the budget calculations.

ADJOURN TO EXECUTIVE SESSION

Adjourn to executive session, pursuant to Statute 5ILCS 120/2 (C)(1), to discuss employee compensation and other personnel issues, and pursuant to Statute 5ILCS 120/2 (C)(11), to discuss possible litigation. Mr. Hayes made a motion to adjourn to Executive session. Mr. Murphy seconded the motion and all Trustees voted “Aye”.

BACK IN REGULAR MEETING FROM THE EXECUTIVE SESSION

Ms. Lankster excused herself during the executive session, prior to the discussion of the annual pay increases. There were several items voted on in regular session, decided during the executive session.

The On-call pay is to be increased, as discussed, effective 7/1/2024. Mr. Hebenstreit made a motion to increase On-call pay. Mr. Murphy seconded the motion and all Trustees voted “Aye”.

The Holiday overtime rate will be increased, as discussed, effective 7/1/2024. Mr. Murphy made a motion to increase Holiday overtime. Mr. Hebenstreit seconded the motion and all Trustees voted “Aye”.

As discussed, Rob Clarkson will meet with the Trustees prior to hiring an employee to discuss who he plans to hire and why he feels that person is the best choice. Mr. Murphy made a motion for a discussion with the Trustees prior to hiring a new employee. Mr. Hebenstreit seconded the motion, and all Trustees voted “Aye”.

Mr. Hebenstreit made a proposal for the pay raises, effective 7/1/2024. Mr. Hebenstreit made a motion to approve the pay raises as discussed. Mr. Murphy seconded the motion, and all Trustees voted “Aye”.

ADJOURNMENT OF REGULAR MEETING

Mr. Hayes made a motion to adjourn the regular meeting. Mr. Murphy seconded the motion and all Trustees voted “Aye”.

Respectfully submitted, Carla Lankster, District Clerk