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FINAL COMMISSION MEETING MINUTES June 26, 2018

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FINAL COMMISSION MEETING MINUTES June 26, 2018 FINAL COMMISSION MEETING MINUTES June 26, 2018 No. Topic Page 1. Consent Agenda 3-4 a. Approval of Minutes 3 b. Contract Awards 3-4 c. Task Orders 4 d. Contract Change Orders 4 e. Sole Source 4 2. Financial Policy 5 3. Virginia Investment Pool Trust Fund Participation 6-7 Resolution 4. Procurement Policy 8 5. Hampton Trunk Sewer Extension Divisions I & J 9-10 Relocation Phase II Memorandum of Understanding Amendment and Task Order 6. Old Dominion University Research Foundation 11 Surface Chlorophyll A Distributions in the Lower James River Estuary Agreement 7. Nansemond Treatment Plant Land Acquisition – Land Stabilization 12-13 Additional Appropriation and Task Order 8. Kecoughtan Road, Hampton 14 Disposition of Easement to the City of Hampton 9. Newport News Transportation Center 15-16 600 Severn Road, Newport News, VA Easement Acquisition Appropriation and Easement Acquisition Agreement 10. Virginia Initiative Plant SWIFT Land Acquisition 17 Initial Appropriation Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 1 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 No. Topic Page 11. Ethics Policy 18 12. Commission Governance Guidelines 19 13. Election of Officers 20 14. Unfinished Business 21 15. New Business 21 16. Commissioner Comments 21 17. Public Comments Not Related to Agenda 21 18. Informational Items 22 a. Management Reports 22 b. Strategic Planning Metrics Summary 22 c. Effluent Summary 22 d. Air Summary 22 e. Emergency Declaration – Williamsburg Treatment Plant 22 Emergency Generator Attachments (12) Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 2 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 Present for Name Title Item Nos. Elofson, Frederick N. Commission Chair 1-18 Lynch, Maurice P. Commission Vice-Chair 1-18 Glenn, Michael E. Commissioner 1-18 Lakdawala, Vishnu K. Commissioner 1-18 Levenston, Jr., Willie Commissioner 1-18 Rodriguez, Stephen C. Commissioner 1-18 Taraski, Elizabeth Commissioner 1-18 Templeman, Ann Commissioner 1-18 Commissioner Stephen Rodriguez requested approval to participate in today’s meeting starting at 10 a.m. due to a scheduling conflict. Roll call vote to allow remote participation: Ayes: 8 Nays: 0 The Commission watched a video of the SWIFT Ribbon Cutting ceremony prior to the start of the agenda. 1. CONSENT AGENDA Action: Approve the items listed in the Consent Agenda. Moved: Vishnu Lakdawala Ayes: 8 Seconded: Willie Levenston Nays: 0 Brief: a. Approval of minutes from previous meeting. b. Contract Awards 1. Condition Assessment Services $5,000,000 2. Construction Inspection Services $5,000,000 3. Employee Uniform and Personal Apparel Purchase Contract $1,099,040 Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 3 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 4. Environmental Services $5,000,000 5. Interceptor System Projects $5,000,000 6. Nansemond Treatment Plant Solids Handling Locker Room $226,293 Renovation c. Task Orders 1. Atlantic Treatment Plant Influent Screen Expansion $444,845 d. Change Orders 1. Manhole Rehabilitation Project $95,470 2. Sewerage System Improvements Division C, Phase II $312,608 Replacement e. Sole Source 1. ASCO Power Services, Inc. / ASCO Power Technologies® Generator Control System Parts and Service 2. Landia, Inc. Landia Mixer, Replacement Parts and Service 3. Sherwood-Logan & Associates, Inc. Xylem YSI Ammonia Probes Item(s) Removed for Discussion: None Attachment #1: Consent Agenda Public Comment: None Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 4 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 In anticipation of Commissioner Rodriguez’s departure prior to the end of the meeting, Chair Elofson recommended items 12 - 13 be heard at this time. 2. FINANCIAL POLICY Action: Approve the revised Financial Policy. Moved: Ann Templeman Ayes: 8 Seconded: Willie Levenston Nays: 0 Brief: HRSD’s financial operations are guided by its Financial Policy (Policy). The Policy was originally adopted in 2009 and most recently revised in 2017. It is the primary document that places parameters and defines management discretion and philosophies relative to the financial aspects of HRSD. The Policy covers areas such as reserves; budgetary principles and control; key financial metrics, internal controls and audits; debt affordability; and risk, debt, derivative and investment management. The driver for this revision is to allow investments in the VML/VACo Virginia Investment Pool Trust Fund (VIP) (see agenda item 3) and to modify the 1-3 year benchmark to be consistent with the VIP benchmark. Summary of Changes: • Added VIP funds as allowable investments and modified the 1-3 year benchmark to the Merrill Lynch 1-3 Year U.S. Corporate & Government Index • Allow the Operating Liquidity Strategy to be used for Self-Liquidity on debt financings • Eliminate the current ratings on the Local Government Investment Pool (LGIP) to avoid having to modify the policy if it is downgraded Discussion Summary: VML is a non-profit organization created by cities and counties, which allows a lower fee structure. Attachment #2: Financial Policy Public Comment: None Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 5 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 3. VIRGINIA INVESTMENT POOL (VIP) TRUST FUND PARTICIPATION RESOLUTION Action: Approve the terms and conditions of the resolution authorizing participation in the Virginia Investment Pool Trust Fund for the purpose of investing funds belonging to HRSD in certain authorized investments in accordance with sections 2.2-4501 et seq. and 15.2-1300 of the Virginia code and authorize the Treasurer to execute the Trust Joinder Agreement, substantially as presented, together with such changes, modifications and deletions as the Treasurer may deem necessary. Moved: Maurice Lynch Ayes: 8 Seconded: Vishnu Lakdawala Nays: 0 Description: VML/VACo Finance was established in 2003 by the Virginia Municipal League (VML) and Virginia Association of Counties (VACo) as a non-profit entity to address many of the financial needs of Cities, Counties, Towns, School Divisions, and Authorities in the Commonwealth of Virginia. VML/VACo pools the resources of local governments in order to provide superior financial services at lower cost. They offer two fixed income investments managed by Public Trust Advisors (PTA): VIP Stable NAV Liquidity Pool (“VIP Liquidity Pool”) and VIP 1-3 Year High-Quality Bond Fund (“VIP 1-3 Year Fund”). The VIP Liquidity Pool is a highly liquid fund that is similar to the Commonwealth’s Local Government Investment Pool (LGIP), which is where HRSD currently invests a portion of its operating funds. The VIP Liquidity Pool has outperformed the LGIP 91% of the time since its inception in November 2016, which would have increased our investment income by over $25,000 in the last year. In addition, both funds are governed by a Board of Trustees that is elected by local government and authority participants, unlike the LGIP which is managed by Commonwealth’s Treasury office. The VIP 1-3 Year Fund has a similar performance to HRSD’s 1-3 Year portfolio, which is currently managed by PFM, but the management and custodial fees would be slightly lower. The three largest participants in the VIP are Arlington County, City of Virginia Beach and the Northern Virginia Transportation Authority. Staff performed a due diligence site visit with PTA and were impressed by their operation and compliance procedures. PTA manages over $30 billion in assets including state and local governments in Colorado, Michigan, New York, Texas, Florida, Indiana, Louisiana and Virginia. Also, attending the site visit and providing strong references were two VIP board members: the Washington County Treasurer and Arlington County Treasurer. Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 6 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 Approval of the Financial Policy edits, which lists these funds as approved investments, is required to transfer HRSD’s funds. The Resolution and Trust Joinder Agreement were both reviewed by legal counsel. Attachment #3: Resolution Public Comment: None Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 7 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 4. PROCUREMENT POLICY Action: Approve the revised policy. Moved: Vishnu Lakdawala Ayes: 8 Seconded: Elizabeth Taraski Nays: 0 Brief: The attached Procurement Policy has been revised to reflect the changes in the Virginia Public Procurement Act (VPPA) related to competitive negotiations for professional services. Appendix B was updated to reflect the current name for the state SWaM site. The VPPA requires local governing bodies to adopt specific policies defining local procedures for specific portions of the VPPA. Those requirements are met with this revision with the various appendices. Attachment #4: Procurement Policy Public Comment: None Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 8 of 22 FINAL COMMISSION MEETING MINUTES June 26, 2018 5. HAMPTON TRUNK SEWER EXTENSION DIVISIONS I & J RELOCATION PHASE II MEMORANDUM OF UNDERSTANDING AMENDMENT AND TASK ORDER Actions: a. Approve the terms and conditions of FIRST AMENDMENT to the Memorandum of Understanding (MOU) between HRSD and Hampton University for relocation of the HRSD force main on the Hampton University campus and authorize the General Manager to execute same, substantially as presented together with such changes, modifications and deletions
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