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, June 12, 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

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

Jeremy Jungreis                       Legal Counsel

GUESTS PRESENT:

Katie Pringle                           Curt Pringle & Associates

Shari L. Freidenrich, CPA      County of Orange, Tax Collector

Gary Nguyen                          County of Orange, Tax Collector

Larry Walker                           County of Orange, Tax Collector

ORANGE COUNTY INVESTMENT POOL UPDATE – SHARI L. FREIDENRICH, CPA OFFICE OF THE TREASURER-TAX COLLECTOR, COUNTY OF ORANGE

Ms. Freidenrich presented and reviewed the investment policy statement, authorized pooled investments and limitations, account balances and various OCIP related items.  Ms. Freidenrich was thanked for her informative presentation following a question and answer session.

PUBLIC COMMENT

None.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of May 23, 2018.  Director Mills moved that the minutes of the May 23, 2018 meeting be approved as amended, Director Haight seconded the motion, and the motion was carried with Directors Bryant, Mills, Reese, and Haight voting yes.

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 recent meeting with Lisa Ohlund of East Orange County Water District and a separate meeting with staff from Irvine Ranch Water District.  Well #3 has an issue with the motor.  This may be covered under the warranty period.  Booster pump #3 at the treatment plant requires a completely new rebuild and will cost upwards of $30,000. 

It was then moved (Director Mills), seconded (Director Reese), and carried with Directors Reese, Mills, Haight, and Bryant voting yes to add an emergency item to the agenda entitled, “Approval for Booster Pump #3 from General Pump” as this occurred after the posting of the agenda.

APPROVAL FOR BOOSTER PUMP #3

Following discussion led by General Manager Vilander, it was moved (Director Mills), seconded (Director Haight), and carried with Directors Reese, Mills, Haight and Bryant voting yes to authorize the General Manager to issue a purchase order to General Pump in an amount not to exceed $50,000 to perform necessary repairs on booster pump #3. 

FINANCIAL REPORT

Business Manager Roggero presented the new reports for the Board of Director’s review including the summary and detailed reports.  These reports will be in the Board packet moving forward.  Director Haight requested that monthly and yearly comparison to the prior year’s budget be included. Business Manager Roggero reported that the data is being pulled directly from the system versus excel spreadsheets, thereby reducing the margin for error. It was moved (Director Mills), seconded (Director Haight), and carried with Directors Bryant, Reese, Mills and Haight voting yes to approve the disbursements in the amount of $665,707.96.

Director Haight asked that he be provided with a listing of those employees (and spouses, if applicable) who are receiving lifetime medical and the associated cost.  He also requested that those enrolled in Medicare Part B be identified.  Business Manager Roggero will provide Director Haight with this information. 

Directors Bryant and Mills remarked that they appreciated the clarity of the new reports.  Director Mills requested that the pages of the financials be numbered going forward and that notes be included if there is a large variance from the previous budget year. 

Business Manager Roggero reported that the reserve resolution will be updated.  Lengthy discussion ensued amongst the Board.  The Finance Committee will meet with staff to update the reserve resolution so that it accurately depicts current reserve goals and reflects the Board’s capital improvement objectives.

Director Reese requested that the cost associated with vehicle repair and maintenance be included on the vehicle repair log.

Business Manager Roggero reported that he will be going out to bid for a new maintenance truck that was budgeted for in this fiscal year.  The findings will be brought back to the Finance Committee for their approval.  Additionally, the new budget will be presented at the July Board meeting.

WATER REPORT

General Manager Vilander presented the water report.  It was moved (Director Mills), seconded (Director Haight), and carried with Directors Bryant, Reese, Haight and Mills voting yes to receive and file the water report.   Director Haight suggested that a flyer be inserted into the water bills summarizing the new legislation dealing with conservation.  General Manager Vilander responded that he would work with representatives from MWDOC to develop the information and meet with the Transparency Committee for their input.  General Manager Vilander also recommended that a newsletter be developed to address current items.  The newsletter will be presented to the Transparency Committee.

ANNUAL STATEMENT OF EMPLOYEE REIMBURSEMENT

Business Manager Roggero presented the annual statement of employee reimbursement for the Board of Directors review.

RESOLUTION NO. 2018-06-01 OF THE BOARD OF DIRECTORS OF THE SERRANO WATER DISTRICT DEPUTY TREASURER

Following discussion led by Attorney Jungreis, it was moved (Director Reese), seconded (Director Mills), and carried with Directors Bryant, Mills, Reese and Haight voting yes to adopt Resolution No. 2018-06-01 as presented.

REFINANCING OF EXISTING DEBT WITH CAPITAL ONE

Following discussion led by Business Manager Roggero, it was moved (Director Reese) and seconded (Director Haight) to authorize the Business Manager to pay off the 2006 Installment Sale Agreement with Capital One.  The motion subsequently failed. 

Following discussion led by Business Manager Roggero, it was moved (Director Mills), seconded (Director Reese), and carried with Directors Haight, Reese, Mills and Bryant voting yes to authorize the Business Manager to secure 8-year financing with Holman Capital “Option A” at the best prevailing rate on existing debt with Capital One.

CORRESPONDENCE

Correspondence was reviewed as agendized.

DIRECTORS COMMENTS AND REPORTS

None.

ATTORNEY’S REPORT

Attorney Jungreis summarized the content of SB-606 and AB-1668 including their provisions.  Director Mills recommended that the key points of the legislation be placed in the local newspaper.

It was announced at 10:35 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 10:45 a.m., and it was announced that there was no reportable action.

ADJOURNMENT

The meeting was formally adjourned at 10:46 a.m. The next regularly scheduled meeting will be held on Tuesday, July 10, 2018 @ 8:30 a.m. at the District office. 

Laura Heflin, Administrative Assistant