MINUTES OF THE BOARD OF DIRECTORS OF SERRANO WATER DISTRICT

The Board of Directors of the Serrano Water District met in a regularly scheduled board meeting on Tuesday, April 10, 2018.  The meeting was held at the District Office located at 18021 Lincoln Street, Villa Park, California.

CALL TO ORDER:  President Bryant called the meeting to order at 8:30 a.m.

ROLL CALL:

BOARD OF DIRECTORS MEMBERS PRESENT:

Frank Bryant                           President

Greg Mills                               Vice President

Jerry Haight                            Board Member

Brad Reese                              Board Member

C.L. “Larry” Pharris, Jr.           Board Member

BOARD OF DIRECTORS MEMBERS ABSENT:

STAFF PRESENT:

Jerry Vilander                         General Manager

Ann Michel                             Director, Finance & Administration

Vittorio Roggero                     Business Manager

Laura Heflin                            Administrative Assistant

Joel Kuperberg                        Legal Counsel

Jeremy Jungreis                       Legal Counsel

GUESTS PRESENT:

Katie Pringle                           Curt Pringle & Associates

Bill Nelson                              Villa Park City Councilman

James Fisler                             Director, Mesa Water District

Bob Ooten                              Director, Costa Mesa Sanitary District

Fred Adjarian                          Director, El Toro Water District

Doug Davert                           Director, East Orange County Water District

John Lewis                              Lewis Consulting 

PUBLIC COMMENT

James Fisler introduced himself and stated that he was an experienced advocate with many years of experience and asked the Board of Directors vote for their vote to support his reelection to the LAFCO Alternate Special District seat.

Bob Ooten introduced himself and reported that he had over 25 years of experience with the Orange County Sanitation District as well as an extensive background in strategic planning.  He asked the Board of Directors for their vote for the LAFCO Alternate Special District seat.

Fred Adjarian introduced himself and spoke about his extensive experience with annexation, consolidation, and sphere of influence.  He asked the Board of Directors for their vote for the LAFCO Regular Special District seat.

Doug Davert introduced himself and stated that he was previously the Mayor and member of the Tustin City Council.  He is looking to be an advocate for local control.  He asked the Board of Directors for their vote for the LAFCO Regular Special District seat.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of March 13, 2018.  Director Mills moved that the minutes of the March 13, 2018 meeting be approved as submitted, Director Haight seconded the motion, and the motion was unanimously carried with Directors Bryant, Pharris, Mills, Reese, and Haight voting yes.

GENERAL MANAGER REPORT

General Manager Vilander introduced the new Business Manager, Vittorio Roggero, and he was welcomed warmly by the Board of Directors.  General Manager Vilander then summarized the status of Board Committee and management matters as agendized for the month of April.  Well 5 VFD is complete and fully operational but staff is still waiting on additional SCADA software which is expected in the next several months.  A ten to fifteen percent reduction is anticipated in electrical usage.  The Lockett project is near completion with the goal being to export water to Orange.  The quagga mussel control meeting was discussed, and Director Haight remarked for informational purposes that quagga mussels would not attach to Styrofoam.  Director Haight asked for the list of operating expenses that have increased since the last rate increase that was provided at the Finance Committee meeting.  Director Haight also recommended the use of a prior Board member in the capacity of a financial advisor which was not met with Board consensus.  It was also suggested that there may be a resident within the city that could be used as a financial advisor.  General Manager Vilander reported that Irvine Ranch Water District has conveyed that the approximate cost for the retrofit for the tower is between $10 and $13 million.  Following discussion, it was agreed that the Finance Committee will meet with other financial advisors, in addition to Fieldman, Rolapp & Associates, and bring advisor(s) back to the Board of Directors for a presentation.  It was then moved (Director Mills), seconded (Director Pharris), and unanimously carried to accept the General Manager report as presented.

FINANCIAL REPORT

Following presentation of the financial report by Ann Michel, Director of Finance and Administration, it was moved (Director Mills), seconded (Director Haight), and unanimously carried with Directors Bryant, Pharris, Haight, Reese and Mills voting yes to approve the disbursements in the amount of $545,395.08.  Director Haight requested that the cash report page be revised and presented to the Finance Committee to incorporate capital improvement projects.  Director Haight remarked that some District vehicles have high mileage and should be looked at.  General Manager Vilander responded that a new maintenance truck will be bought in the next couple of months to replace the truck with high mileage.  Director Reese questioned the cost and associated fees for the new copier and volunteered his assistance.  Additionally, Director Reese asked Attorney Kuperberg what his hourly rate was and Director Kuperberg responded that it was $275 an hour.  Legal fees have been increased recently due to potential litigation as well as historical presentations that are being presented at the request of the General Manager to assist newer Board members and staff.

WATER REPORT

Ann Michel, Director of Finance and Administration, presented the water report.  It was moved (Director Pharris), seconded (Director Mills), and unanimously carried with Directors Bryant, Pharris, Mills, Haight and Reese voting yes to receive and file the water report.   General Manager Vilander reported that a block of water in the amount of 900 AF will be purchased next month and reflected in the report.

CAPITAL IMPROVEMENTS

General Manager presented the potential upcoming capital improvement projects and associated approximate costs.

AMENDED BUDGET FY 2017/2018

Following discussion, it was moved (Director Haight), seconded (Director Reese), and unanimously carried with Directors Pharris, Haight, Reese, Mills and Bryant voting yes to adopt the amended budget as presented.  Director Haight questioned the calculations for the estimated year end variances. 

MERRILL LYNCH BANK ACCOUNT

Following discussion led by Ann Michel, it was moved (Director Haight), seconded (Director Reese), and unanimously carried with Directors Bryant, Mills, Pharris, Haight, and Reese voting yes to authorize staff to close the Merrill Lynch bank account and move the balance of $19,414.11 into the District’s savings account.

HISTORICAL OVERVIEW OF SERRANO WATER DISTRICT SANTIAGO RESERVOIR AND WATER RIGHTS

Attorney Kuperberg presented a very informative historical overview of Serrano Water District Santiago Reservoir and water rights.  Board members thanked him for his presentation.  Director Bryant requested a presentation on The Irvine Company and Irvine Ranch Water District easements as well as transfer of recreation rights with the County of Orange.

CORRESPONDENCE

Correspondence was reviewed as agendized.

DIRECTOR COMMENTS AND REPORTS

None.

ATTORNEY’S REPORT

None.

It was announced at 10:20 a.m. that the Board of Directors would be entering into closed session.

RECESS TO CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION

Potential initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9, one case.

CONFERENCE WITH REAL PROPERTY NEGOTIATORS

(Government Code Section 54956.8)

Property:   Lockett Tower site, located at 6112 E. Carver Lane, Orange, CA

Agency Negotiator:  Jerry Vilander

Negotiating Parties:  Crowne Castle

Under Negotiation:  Price and Terms

The meeting was reconvened into open session at 11:00 a.m., and it was announced that there was no reportable action.

ADJOURNMENT

The meeting was formally adjourned at 11:00 a.m. The next regularly scheduled meeting will be held on Tuesday, May 8, 2018 @ 8:30 a.m. at the District office.

Laura Heflin, Administrative Assistant