MINUTES OF THE BOARD OF DIRECTORS OF SERRANO WATER DISTRICT

The Board of Directors of the Serrano Water District met in a special board meeting on Tuesday, July 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 9:00 a.m.

ROLL CALL:

BOARD OF DIRECTORS MEMBERS PRESENT:

Frank Bryant                           President

Greg Mills                               Vice President

Jerry Haight                            Board Member

Brad Reese                              Board Member

BOARD OF DIRECTORS MEMBERS ABSENT:

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

STAFF PRESENT:

Jerry Vilander                         General Manager

Vittorio Roggero                     Business Manager

Laura Heflin                            Administrative Assistant

Joel Kuperberg                        Legal Counsel

Jeremy Jungreis                       Legal Counsel

GUESTS PRESENT:

Katie Pringle                           Curt Pringle & Associates

Diana Fascenelli                      Villa Park City Council Woman

Fred Alexander                       Villa Park Resident

MUNICIPAL WATER DISTRICT OF ORANGE COUNTY PRESENTATION BY JOE BERG – WATER CONSERVATION

This item was tabled due to time constraints.

PUBLIC COMMENT

Council Woman Fascenelli requested that communication be improved between the City of Villa Park and the Serrano Water District when crews are working on projects that may impact the city – in this instance the work being done on Valley.  General Manager Vilander responded that he would ensure that this takes place as it usually has in the past.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of June 12, 2018.  Director Mills moved that the minutes of the June 12, 2018 meeting be approved as submitted, Director Reese seconded the motion, and the motion was carried with Directors Bryant, Mills, Reese, and Haight voting yes.

The following items were moved out of sequence on the agenda due to time constraints.

FINANCIAL REPORT

Business Manager Roggero apologized for the delay in the Board members receiving their packages and explained the tight time frame for producing financials on certain months.  Following discussion, it was agreed that those meetings with less time to produce financials would be moved one week back.  Business Manager Roggero will determine which meetings will be impacted and will have Laura email the Board of Directors.  A Notice of Adjournment will be posted when this occurs.  It was noted that prior year actuals have been included in the financials per Board request and that net income is up 25% from the year-to-date budget.  Additionally, the District underspent in operating expense.

Business Manager Roggero informed the Board of Directors that he would be paying the annual prepayment to PERS for unfunded liability in the amount of $67,205.  The prepayment will save the District $2,400.

Business Manager Roggero presented the financials for the month of June.  It was moved (Director Mills), seconded (Director Reese), and carried with Directors Bryant, Reese, Mills and Haight voting yes to approve the disbursements in the amount of $463,281.10.

2018/2019 BUDGET

Business Manager Roggero presented the budget for 2018/2019.  Director Bryant and the Board remarked that they appreciated the comments that had been added to the budget.  Director Haight remarked that the Irvine Ranch Water District was budgeting a 2% COLA and 3% merit and the Orange County Water District was planning for a 2% COLA and 2.5% salary adjustment and that most agencies are budgeting for a maximum of 5%.  Director Haight stated that this area was being approved for budgeting purposes only at this time.

General Manager Vilander remarked that staff is budgeting for increased water sales this year in spite of the regulations that are coming down from the state.  Sales to the City of Orange are not subject to state regulations or small water suppliers. 

Following discussion, it was moved (Director Mills), seconded (Director Haight), and carried with Director Bryant, Reese, Haight and Mills voting yes to adopt the 2018/2019 budget as presented.

Council Woman Fascenelli remarked that it may be prudent for the District to hold a town hall meeting in October in an effort to bolster the District’s transparency efforts.

RESOLUTION NO. 2018-07-01 OF THE BOARD OF DIRECTORS OF THE SERRANO WATER DISTRICT ESTABLISHING AUTHORIZATION ON ACCOUNTS HELD WITH FARMERS AND MERCHANTS BANK OF LONG BEACH

Following discussion led by Business Manager Roggero, it was moved (Director Haight), seconded (Director      Mills), and carried with Director Bryant, Mills, Reese and Haight voting yes to adopt Resolution No. 2018-07-01 as presented.

RESOLUTION NO. 2018-07-02 OF THE BOARD OF DIRECTORS OF THE SERRANO WATER DISTRICT ESTABLISHING CERTAIN RESERVE GOALS AND ALLOCATING DISTRICT FUNDS TO DESIGNATED RESERVE ACCOUNTS

Following discussion led by Business Manager Roggero, it was moved (Director Haight), seconded (Director      Mills) and carried with Director Bryant, Mills, Reese, and Haight voting yes to adopt Resolution No. 2018-07-02 as presented.

WELL 3 MOTOR FAILURE EMERGENCY REPLACEMENT

Following presentation led by Business Manager Roggero, it was moved (Director Mills), seconded (Director      Haight), and carried with Director Bryant, Mills, Reese, and Haight voting yes to authorize the General Manager retrospectively to issue a purchase order in the amount of $34,876.55 for the emergency replacement of the motor at well 3.

WHITE NELSON DIEHL EVANS LLP AUDITING SERVICES FOR FISCAL YEAR ENDING JUNE 30, 2018

Business Manager Roggero notified the Board of Directors that staff was moving forward with engaging the services of White Nelson Diehl Evans LLP for the annual audit for the District for fiscal year ending June 30, 2018.

CORRESPONDENCE

Correspondence was reviewed as agendized.

DIRECTORS COMMENTS AND REPORTS

Director Haight requested that a list of contracts held by the District be placed on the website.  This was a follow up item.  Director Haight also requested that the District’s personnel manual be brought back to the Board of Directors for review and approval.  Additionally, Director Haight asked if retirees are checked on a regular basis to make sure that they obtain Medicare Part B when they reach 65 years old.  Business Manager Roggero reported that this has been checked and will be reviewed on a quarterly basis.

GENERAL MANAGER REPORT

General Manager Vilander summarized the status of Board Committee and management matters as agendized for the month of June.  Highlighted items included a discussion on the Poseidon desalination project in which it was determined that General Manager will send correspondence to the Orange County Water District stating the District is not in support of this project.  An additional meeting is set with Holman Capital. December is the next call window.  General Manager Vilander distributed the proposed revisions to OC LAFCO policies and procedures.

WATER REPORT

General Manager Vilander presented the water report.  It was moved (Director Mills), seconded (Director           Haight), and carried with Director Bryant, Reese, Haight and Mills voting yes to receive and file the water report.  

ATTORNEY’S REPORT

None.

It was announced that there wasn’t a need to enter 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

ADJOURNMENT

The meeting was formally adjourned at 10:15 a.m. The next regularly scheduled meeting will be held on Tuesday, August 14, 2018 @ 8:30 a.m. at the District office. 

Laura Heflin, Administrative Assistant