Conservation voltage reduction (CVR) uses Volt-VAR optimization (VVO) methods to reduce customer power demand by controlling feeder's voltage control devices. The objective of this paper is to present a VVO approach that controls system's legacy voltage control devices and coordinates their operation with smart inverter control. An optimal power flow (OPF) formulation is proposed by developing linear and nonlinear power flow approximations for a three-phase unbalanced electric power distribution system. A bi-level VVO approach is proposed, where Level 1 optimizes the control of legacy devices and smart inverters using a linear approximate three-phase power flow. In Level 2, the control parameters for smart inverters are adjusted to obtain an optimal and feasible solution by solving the approximate nonlinear OPF model. Level 1 is modeled as a mixed integer linear program (MILP) while Level 2 as a nonlinear program with linear objective and quadratic constraints. The proposed approach is validated using 13-bus and 123-bus three-phase IEEE test feeders and a 329-bus three-phase PNNL taxonomy feeder. The results demonstrate the applicability of the framework in achieving the CVR objective. It is demonstrated that the proposed coordinated control approach help us to reduce the feeder's power demand by reducing the bus voltages; the proposed approach maintains an average feeder voltage of 0.96 p.u. A higher energy saving is reported during the minimum load conditions. The results and approximation steps are thoroughly validated using OpenDSS.