Board Meeting - 1/9/2018

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, January 9, 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 8:32 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

COMMITTEE ASSIGNMENTS

Following discussion led by President Bryant, it was decided to leave Committee Assignments status quo for 2018.

PUBLIC COMMENT

None.

BOARD MINUTES

Consideration of Serrano Water District Board Meeting minutes of December 12, 2017. Director Pharris moved that the minutes of the December 12, 2017 meeting be approved as submitted, Director Haight 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 January. Highlighted items included discussion relating to emergency repairs, lead and copper testing that will occur at the drinking fountains at the schools in July and potential water tax bill to assist disadvantaged communities so that they may receive safe, potable water.

Director Mills questioned the regularity of pumps being balanced and General Manager Vilander replied that this is typically done during installation. Director Mills also asked about the schedule for ozone sensor calibration. General Manager Vilander responded that these are internally checked by staff.

Director Reese announced that he was happy to see the discount for Zylem. Director Reese remarked that the District is paying too much for disposal services through Ware Disposal. Director Bryant remarked that this is a work in progress that the General Manager is investigating. Director Reese stated that he felt that the fees charged by I.T. Problem Solver were exorbitant and that the District should go out to bid.

Director Haight stated that there was a discrepancy in the amounts depicted on the page provided by staff for salaries, the State Controller’s page, and the District’s website. He reported that he will be meeting with staff in order to obtain clarification.

Director Bryant reported that the Finance Committee had met and were considering the recommendation to the Board of Directors that the reserves be moved into investment accounts in $400,000 increments in order to obtain a more lucrative return. Director Haight asked about loans that may be paid down upon. Loans that do not have a pre-payment penalty include the treatment plant and well #5. The decision to pay down on these loans will be postponed to March or April.

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 unanimously carried with Directors Bryant, Pharris, Haight, Mills, and Reese voting yes to approve the disbursements in the amount of $718,893.15.

Director Reese and Director Haight remarked the amount for the employee raffle seemed excessive. It was determined that staff will review what was spent in prior years and report to the Finance Committee. This item will be brought to the Finance Committee for review prior to the next employee recognition event. The Farmers and Merchants credit card was reviewed at yesterday’s Finance Committee meeting.

Director Bryant asked staff to determine what the potential MWDOC and OCWD pass throughs were and what impact would it have had on the ratepayers.

Director Haight raised the possibility of holding another town hall meeting in May.

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.

CAPITALIZATION POLICY

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 approve the capitalization policy as presented.

CORRESPONDENCE

Correspondence was reviewed as agendized.

DIRECTOR COMMENTS AND REPORTS

Director Mills reported that Councilman Collacott approached him about the possibility of shared services. Board members commented that this is not a viable option for the District. Director Bryant remarked that he will be going on the Colorado water tour this Friday.

ATTORNEY’S REPORT

Attorney Kuperberg thanked the Board of Directors for a very enjoyable holiday dinner. He will be sending out correspondence to the Directors with an itemized amount for the Director, Employee and spouse for reporting purposes. Also, Attorney Kuperberg mentioned that the tours offered through MWDOC do not have a gift limit but need to be reported.

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 9:45 a.m. The next regularly scheduled meeting will be held on Tuesday, February 13, 2018 @ 8:30 a.m. at the District office.

Laura Heflin, Administrative Assistant