Board Meeting - 10/13/2015

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 13, 2015. The meeting was held at the District Office located at 18021 Lincoln Street, Villa Park, California.

CALL TO ORDER: President Pharris called the meeting to order at 8:33 a.m.

ROLL CALL:

BOARD OF DIRECTORS MEMBERS PRESENT:

C.L. “Larry” Pharris, Jr. President

Frank Bryant Vice President

Robert F. (Woody) Rickerl Board Member

Jerry Haight Board Member

Richard A. Freschi Board Member

BOARD OF DIRECTORS MEMBERS ABSENT:

STAFF PRESENT:

Jerry Vilander General Manager

Ann Michel Director, Finance & Administration

Joel Kuperberg General Counsel, Rutan & Tucker

Laura Heflin Administrative Assistant

GUESTS PRESENT:

Adam Wood Curt Pringle & Associates

Dave Noyes Contract CEO, Irvine Lake

Diana Fascenelli Mayor, City of Villa Park

Brad Reese Resident, City of Villa Park

PUBLIC COMMENT

Mayor Fascenelli reported that residents should be receiving their newsletter for the City of Villa Park in the near future. Additionally, she recently completed a water tour with Larry Dick and a Director from Western MWD of Riverside. Mayor Fascenelli invited Board members to attend special training offered by the F.B.I. designed to identify emergency situations. A community development meeting will be held tomorrow night to discuss the Wanda greenbelt area. Sheriff Hutchens will be a guest speaker at the next City Council meeting.

Brad Reese complimented the Board of Directors and staff on the recent banked hour’s correspondence that was mailed to residents.

Director Rickerl asked about the public records request made by Kathleen Moran. Ann Michel responded that the information had not been picked up, but she had been notified. President Pharris remarked that her request should be very specific in order to provide her with the correct information.

Director Haight requested a Special Board Meeting be scheduled to discuss conservation issues, particularly banked hours being used retroactively.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of September 8, 2015. Director Freschi moved that the minutes of the September 8, 2015 meeting be approved as presented, Director Rickerl seconded the motion, and the motion was unanimously carried with Directors Bryant, Haight, Pharris, Freschi and Rickerl voting yes.

Consideration of Serrano Water District Board Meeting minutes of September 17, 2015. Director Freschi moved that the minutes of the September 17, 2015 meeting be approved as amended, Director Rickerl seconded the motion, and the motion was unanimously carried with Directors Bryant, Haight, Pharris, Freschi and Rickerl voting yes.

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 a recent meeting with Irvine Ranch Water District regarding reduced Lake levels, the seismic study status, and Smith Reservoir. Staff from WQTS has performed an analysis on the maximum peak demand. Less storage may be needed. Carollo is exploring bypass arrangements and potentially reducing the size of the reservoir. A monthly status report on this subject matter will provided going forward on the General Manager’s report.

STATUS OF DROUGHT RESPONSE AND WATER SUPPLY

General Manager Vilander reported that there was a 43.5% reduction in consumption for the month of September and approximately $80,000 was billed in penalties. General Manager Vilander described the policy relating to potential adjustments. Director Rickerl complimented the General Manager on his handling of the drought and conservation situation.

FINANCIAL REPORT

Following presentation of the financial report by Ann Michel, Director of Finance and Administration, it was moved (Director Haight), seconded (Director Rickerl), and unanimously carried with Directors Bryant, Rickerl, Pharris, Freschi and Haight voting yes to approve the disbursements in the amount of $306,182.70.

Director Haight requested that an amended budget be brought back to the November Board meeting. This budget should also reflect capital items including well 3 rehab as well as July and August at the prior rate and September through June and the new billing rate including one unit. Director Haight also stated that health insurance for retirees and office supplies need to be reviewed and revised to reflect correct numbers. Additionally, the budget should depict a 36% reduction in consumption. The Finance Committee will meet to discuss these items.

WATER REPORT

Ann Michel, Director of Finance and Administration, presented the water report. The water report was received and filed.

WELL #3 EMERGENCY INVESTIGATIVE EXPENDITURE BY SOUTHWEST PUMP AND DRILLING

Following discussion led by General Manager Vilander regarding expenditure to Southwest Pump and Drilling, it was moved (Director Freschi), seconded (Director Rickerl), and unanimously carried with Directors Bryant, Rickerl, Pharris, Freschi and Haight voting yes to approve payment to Southwest Pump and Drilling in the amount of $28,934.52.

WELL #3 EMERGENCY REPAIR - ISSUE P.O. TO GENERAL PUMP

Following discussion led by General Manager Vilander regarding expenditure to General Pump, it was moved (Director Bryant ), seconded (Director Rickerl), and unanimously carried with Directors Bryant, Rickerl,

Pharris, Freschi and Haight voting yes to approve payment to General Pump in the amount of $146,000 and allow for a 20% contingency ($29,200) in order to make emergency repairs to well #3.

SMITH RESERVOIR CLAIM

Following discussion led by General Manager Vilander, it was moved (Director Rickerl), seconded (Director Haight), and unanimously carried with Directors Bryant, Rickerl, Pharris, Freschi and Haight voting yes to approve ACWA/JPIA settlement in the amount of $98,581.89. Director Haight asked that Ann Michel research the possibility of pursuing the contractor involved.

CORRESPONDENCE

None.

DIRECTOR COMMENTS AND REPORTS

Director Rickerl requested that specific policies be developed for discussion at the November Board meeting from the Directors’ standpoint to include:

Election of officers.
Committee assignments.
Development of protocol for placing items upon the agenda.
Emergency Action - General Manager expenditure authority and is a Special Board meeting required.
Board meeting times. Potentially moving to the third week of the month and holding in the evening.

ATTORNEY’S REPORT

Attorney Kuperberg reported that in 2017 all retail agencies will be required to do a water loss audit and send it to the Department of Water Resources. Additionally, in 2020 the Urban Water Master Plan will have to include a seismic analysis of all major infrastructures.

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Significant exposure to litigation pursuant to paragraph (d)(2) of Government Code Section 54956.9: One potential case.

The meeting was recessed to the SWD Recreation, Inc. meeting at 10:25 a.m. The meeting was reconvened at 12:15 p.m., and it was announced that the two agencies would concurrently hold closed session. The Board of Directors reconvened the meeting at 12:30 p.m. into open session and announced that there was no reportable action.

ADJOURNMENT

The meeting was formally adjourned at 12:31 p.m. The next regularly scheduled meeting will be held on Tuesday, November 10, 2015 @ 8:30 a.m. at the District office.

Laura Heflin, Administrative Assistant