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, October 10, 2017.  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 8:31 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

Ann Michel                             Director, Finance & Administration

Laura Heflin                            Administrative Assistant

Jeremy Jungreis                       Legal Counsel

GUESTS PRESENT:

Katie Pringle                           Curt Pringle & Associates

Kassie Radermacher, C.P.A.  Auditor, White Nelson Diehl Evans LLP

Nitin Patel, C.P.A.                  Auditor, White Nelson Diehl Evans LLP

PUBLIC COMMENT

None.

WHITE NELSON DIEHL EVANS DRAFT AUDIT FYE 2016/2017

Nitin Patel, CPA and Kassie Radermacher, CPA for White Nelson Diehl Evans presented the draft audit for fiscal year ending 2016/17 for the District.  Auditor suggestions included that a purchasing policy be developed to include formal bidding procedures, types of quotes (written and verbal), the number of quotes or bids, and when the use of purchase orders are required.  Also, it was recommended that the General Manager review the payroll register for each pay period and document this review by his signature as there currently isn’t segregation of duties where the payroll function is concerned.   Additionally, a written capitalization policy should be developed.  The investment policy was last reviewed in 2013.  Staff remarked that the investment policy was reviewed and adopted at the last Board meeting.  The General Manager reported that he is already signing off on the payroll register and that the purchasing and capitalization policies are being developed and will be presented at the upcoming Board meetings.  Following discussion, it was moved (Director Haight), seconded (Director Mills), and carried with Directors Haight, Bryant, Reese and Mills voting yes to approve the audit as presented.  The Board of Directors thanked the auditors for their informative presentation.

Director Haight remarked that this audit did not include the compensation, budget and actual comparison.  Mr. Patel remarked that this was not a normally required item.  Director Haight questioned the reduction in power usage and what it was attributed to.  General Manager Vilander will contact Southern California Edison regarding the reduction in power usage.  Director Haight asked why the general, auto and public officials liability coverage amounts have changed.  Staff will research and report back to the Board of Directors.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of September 12, 2017.  Director Mills moved that the minutes of the September 12, 2017 meeting be approved as presented, Director Haight seconded the motion, and the motion was carried with Directors Bryant, Mills, Reese, and Haight voting yes.  Director Mills asked when the water study data will be available and General Manager Vilander remarked that it will be available at the November Board meeting.

GENERAL MANAGER REPORT

General Manager Vilander summarized the status of Board Committee and management matters as agendized for the month of September. Highlighted items included an update on the meeting with Attorney Kuperberg and the staff from Irvine Ranch Water District regarding the County of Orange.  Director Haight requested a copy of the plan to assess the spillway by GEI that was submitted to the Division of Safety of Dams by Irvine Ranch Water District.  General Manager Vilander will provide him with this information.  Director Mills asked for a map depicting the different flows.  Additionally, he asked that the lake level of 790 be depicted next to the current lake level on the General Manager report.  Director Mills also discussed the aging infrastructure. 

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 the motion was carried with Directors Bryant, Mills, Reese, and Haight voting yes to approve the disbursements in the amount of $390,089.68.  Open enrollment for health insurance is now through the end of October.

WATER REPORT

Ann Michel, Director of Finance and Administration, presented the water report.  It was moved (Director Mills), seconded (Director Haight), and the motion was carried with Directors Bryant, Mills, Reese, and Haight voting yes to receive and file the water report.  

DISTRICT POLICY FOR FACILITY USE FROM OUTSIDE ENTITIES FOR STORAGE OF MISCELLANEOUS ITEMS

Following discussion led by General Manager Vilander and review of corresponding license agreement, it was determined that this item will be tabled pending the development of additional information.  It was agreed that General Manager Vilander will ask Attorney Kuperberg to develop a waiver to be signed when entering and exiting the District yard at the front desk.  Director Mills will contact the Women’s League and the Rotary to discuss the above.

BOOSTER PUMP U2 EMERGENCY REPAIR

Following discussion and explanation relating to the urgent nature of the repair led by General Manager Vilander, it was moved (Director Mills), seconded (Director Reese), and the motion was carried with Directors Bryant, Mills, Reese, and Haight voting yes to approve purchase order in the amount of $45,445.46 retroactively.

CORRESPONDENCE

Correspondence was reviewed as agendized.  General Manager Vilander asked Katie Pringle to research the Municipal Service Reviews for LAFCO and provide insight.

DIRECTOR COMMENTS AND REPORTS

None.

ATTORNEY’S REPORT

None.

It was announced that it was not necessary 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 10:45 a.m. The next regularly scheduled meeting will be held on Tuesday, November 14, 2017 @ 8:30 a.m. at the District office.  

Laura Heflin, Administrative Assistant