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, February 13, 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 7:30 a.m.

ROLL CALL:

BOARD OF DIRECTORS MEMBERS PRESENT:

Frank Bryant                           President

Greg Mills                               Vice President

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

Jerry Haight                            Board Member

Brad Reese                              Board Member

BOARD OF DIRECTORS MEMBERS ABSENT:

STAFF PRESENT:

Jerry Vilander                         General Manager

Ann Michel                             Director, Finance & Administration

Laura Heflin                            Administrative Assistant

Joel Kuperberg                         Legal Counsel

GUESTS PRESENT:

Katie Pringle                           Curt Pringle & Associates

Diana Fascenelli                      Villa Park City Council Woman

PUBLIC COMMENT

None.

The following items were moved out of sequence on the agenda to accommodate Director Reese’s schedule.

PROCUREMENT POLICY

Following discussion led by General Manager Vilander, it was moved (Director Haight), seconded (Director                Mills), and unanimously carried with Directors Reese, Bryant, Mills, Pharris and Haight voting yes to approve the procurement policy as amended to include the verbiage requiring the General manager to contact two members of the Board of Directors for prior approval for any amount exceeding $25,000.

DISTRICT POLICIES AND PROCEDURES REGARDING DIRECTOR COMPENSATION AND REIMBURSEMENT

Following discussion led by General Manager Vilander, it was moved (Director Mills), seconded (Director     Haight), and unanimously carried with Directors Reese, Bryant, Mills, Pharris and Haight voting yes to approve the District Policies and Procedures as amended to include verbiage that the Directors may receive reimbursement of expenses at social and ceremonial events where the Director is not speaking or presenting an award or resolution with the prior approval of the Board President and that this will not include per diem compensation.  Additionally, conference and seminar participation, and associated compensation and reimbursement of expenses, require prior approval by the Board President.

SPILLWAY CONDITION ASSESSMENT AND ADDITIONAL FIELD INVESTIGATION

Following discussion led by General Manager Vilander, it was moved (Director Pharris), seconded (Director      Mills), and unanimously carried with Directors Reese, Bryant, Mills, Pharris and Haight voting yes to give the General Manager the authority to move forward with the GEI consultants field study in the amount of $14,400.  Additionally, the Construction Committee will have the discretion to delay the award and ask the General Manager to bring the item back to the Board for discussion.

LEASING WATER STORAGE CAPACITY AT SANTIAGO RESERVOIR

Following discussion led by General Manager Vilander, the Board members commented that they thought it would be prudent for the Construction Committee to further explore this option in conjunction with the General Manager.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of January 9, 2018.  Director Pharris moved that the minutes of the January 9, 2018 meeting be approved as amended, Director Mills seconded the motion, and the motion was unanimously carried with Directors Bryant, Mills, Reese, Haight and Pharris voting yes.

GENERAL MANAGER REPORT

General Manager Vilander summarized the status of Board Committee and management matters as agendized for the month of February.  Highlighted items included discussion relating to the status of Ware Disposal, Well #5, and DiveCorr.

Director Reese left the meeting due to a conflict in schedule at this point.

FINANCIAL REPORT

Following presentation of the financial report by Ann Michel, Director of Finance and Administration, it was moved (Director Pharris), seconded (Director Mills), and carried with Directors Bryant, Pharris, Haight, and Mills voting yes to approve the disbursements in the amount of $289,972.74.  Director Haight discussed reserves and a potential rate decrease and made the suggestion that it may be prudent to retain the services of a financial consultant.  Attorney Kuperberg pointed out the potential pitfalls of a rate decrease including the negative impact on the District’s ability to secure loans.  Director Pharris reminded the Board that the Finance Committee is due to report back to the Board of Directors in May with recommended paydown on loans.  Director Pharris also commented that the Construction Committee will report back to the Board of Directors with a “deferred capital improvement list” including associated cost.  Additionally, the Construction Committee will investigate the possibility of building a new well to determine if it is a viable option.  Director Haight asked that a column depicting mileage for each vehicle as well as YTD maintenance cost be included on the gasoline log.

WATER REPORT

Ann Michel, Director of Finance and Administration, presented the water report.  It was moved (Director Mills), seconded (Director Haight), and unanimously carried with Directors Bryant, Pharris, Mills, Haight and Reese voting yes to receive and file the water report.   Director Pharris suggested that the District determine what items should be placed on the agenda at the next SWD/IRWD Ad-Hoc Committee meeting.

CORRESPONDENCE

Correspondence was reviewed as agendized.

DIRECTOR COMMENTS AND REPORTS

Director Mills remarked that the City of Villa Park is still discussing the possibility of incorporating the area behind Adams Ranch Road into the city’s boundaries and that new committees are still being formed.  Board members agreed that it was best to leave Board meetings on regularly scheduled days.

ATTORNEY’S REPORT

Attorney Kuperberg reminded staff that ethics training is on Thursday at 4:00 p.m. and that he will be unable to attend the next Board meeting.  Attorney Jungries will be attending in his absence.

It was announced that there wasn’t a need to enter into closed session.

RECESS TO CLOSED SESSION

Conference with real property negotiators (Government Code Section 54956.8)

Property: Santiago Reservoir (Irvine Lake), adjacent to 4621 Santiago Canyon Road, Silverado Canyon, CA  92676.

Agency Negotiator:  Jerry Vilander

Negotiating Parties:  County of Orange

Under Negotiation:  Price and terms

ADJOURNMENT

The meeting was formally adjourned at 9:30 a.m. The next regularly scheduled meeting will be held on Tuesday, March 13, 2018 @ 8:30 a.m. at the District office.
Laura Heflin, Administrative Assistant