Local Development Finance Authority

CITY OF STERLING HEIGHTS Special Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 40555 UTICA ROAD 586-884-9322 CITY COUNCIL CHAMBERS June 12, 2013 5:30 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF April 17, 2013 Regular Meeting NEW BUSINESS 1. Status report on negotiation for service agreement with Macomb-OU Incubator (Kasey Green) 2. Motion to approve the 2013/2014 Fiscal Year Budget 3. Motion to approve a Master Services Agreement (MSA) between Comcast Cable Communications Management LLC. and the Local Development Financing Authority (LDFA) OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING April 17, 2013 – 5:30 p.m. 40555 Utica Road, Sterling Heights, MI 48313 586-446-2489 City Council Chambers Victor Martin called the meeting to order at 5:35 p.m. Pledge of Allegiance Members present at roll call: Stephan Cassin, Casey Sobczak, David Corba, Lori Doughty, Stephanie Eagen, John Lettang, John Lamerato, Victor Martin, Paula Sorrell, Jill Tomyn, David Wilson, Orest Zachary Members absent: Richard Kincaid (excused) Also in attendance: Kasey Green, Economic Development Manager, Larry Herriman, Deputy Director Macomb OUIncubator, Al Khavari Terra Telesis Motion to Approve the Agenda Moved by Sobczak, supported by Wilson, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of March 26, 2013 Special Meeting Moved by Wilson, supported by Lettang, to approve the agenda as presented. Ayes: All Nays: None Motion carried. New Business To approve the lease agreement between Quality Field Tean and the Local Development Finance Authority (LDFA). Moved by Lettang, supported by Sobczak to approve lease agreement Ayes: All Nays: None Motion carried. To approve the lease modification agreement between Terra Telesis and the Local Development Finance Authority (LDFA), and authorize the LDFA Chairperson to execute the approved Agreement on behalf of the LDFA. Moved by Sobczak, supported by Wilson to approve lease agreement Ayes: All Nays: None Motion carried. Old Business None Board Members Report None Public Comment None Adjournment Moved by Sobczak supported by Zachary to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 5:45 pm TJ Minutes Approved 06/12/2013 John Lettang Secretary  LDFA Business Sterling Heights, Michigan 6/12/13 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Motion to approve the 2013/2014 Fiscal Year Budget for the operation of the Local Development Financing Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager 586-884-9327 Executive Summary Pursuant to Public Act 281 of 1986, also known as the Local Development Financing Act, a budget has been prepared for the operation of the authority for the ensuing fiscal year. Attached is the budget for your review and approval Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the 2013/2014 Fiscal Year Budget for the operation of the Local Development Financing Authority (LDFA)  LDFA SMARTZONE BUDGET FY 2013-2014 BEGINNING CASH BALANCE $35,000 2013/2014 Revenues - TIF Capture Account No. TIF PLAN SETS THAT THIS CANNOT EXCEED $500K 8740-7040-422000 TIF Capture SmartZone Capture - BAE $98,045 SmartZone Capture - Chrysler: Paint Shop $366,891 SmartZone Capture - Chrysler: Body shop $35,064 Total Revenue - TIF: $535,000 Revenues - Rent 8766-4040-667716 Rental Income SBTDC, paid by MCPED - Lab 1D + 1E ($500 per month through 12/31/13) $3,000 Kosch Catering - Kitchen ($700.83 per month through 9/1/15) $8,410 Kosch Catering - Lab 2A ($484.46 per month through 9/1/13) $968 BRAR Technology - Lab 1F ($395 per month through 11/30/13) $1,975 Terra-Telesis - Lab 2E ($1 per month through 8/31/13) $2 MangoTree Capital - Lab 2C ($544 per month through 5/31/14) $5,984 Coliant - Lab 2F ($687 per month through 8/31/13) $1,374 Metiss Group - Lab 3D ($806 per month through 11/30/13) $4,030 Golden Products & Services - Lab 3L ($185 per month through 12/31/13) $1,110 KTISIS - Lab 2B ($580 per month through 12/31/13) $3,480 Coupon Wallet - Lab 2I ($665 per month through 4/1/14) $5,985 LSI - Lab 3J ($675 per month through 3/31/14) $6,075 Vidorum/Quality Field Teim - Lab 2K ($185 per month through 4/30/14) $1,850 Total Revenue- Rental Income: $44,243 TOTAL REVENUE $579,243 Expenses - Building Expenses and Incubator Operation Account No. PER TIF PLAN, $285K MAX (PLUS RENTAL INCOME) 8770-0716-751000 Office Supplies, Copier, Postage, Printing, Keys, Fobs $2,500 8770-0716-806001 Legal Services - City Attorney $1,000 8770-0716-826000 Contracted Services Dumpster ($55 per month) $1,000 Lawn, Landscaping & Snow $35,000 Security & Fire Systems Monitoring - ($200 /mo) $2,400 Cleaning Service (Rugs $35/mo, Tedesco - $240/mo) $3,300 8770-0716-832000 Building Maintenance $22,500 8770-0716-913000 Property & Liability Insurance $11,400 8770-0716-921000 Electric $50,000 8770-0716-922000 Telephone and Internet $44,000 8770-0716-923000 Gas $40,000 8770-0716-925000 Water & Sanitary Sewer $12,000 87330000-390716 15% Fund Balance/Contingency $33,765 Total Expenses - Building & Incubator Operations: $258,865 Expenses - SmartZone Activities PER TIF PLAN, $215K MAX 87700716-963400 Velocity Capital Fund $102,000 87700716-805000 City of Sterling Heights Administative Services (personnel reimbursement) $82,000 8770-0716-880000 City of Sterling Heights Community Promotion (events, tradeshows, marketing) $5,000 8770-0716-902000 Publishing $1,000 Total Expenses - Smartzone Activities: $190,000 TOTAL EXPENSES $448,865 BALANCE $130,378  LDFA Business Sterling Heights, Michigan 6/12/13 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Motion to approve a Master Services Agreement (MSA) between Comcast Cable Communications Management LLC. and the Local Development Financing Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager 586-884-9327 Executive Summary Administration is recommending approval of the attached agreement with Comcast detailed in the Sales Order Form, for the provision of fiber internet to the Velocity Collaboration Center located at 6633 18 Mile Road. Under the terms provided, Comcast will provide fiber internet at 20 Mbps for 36 months at a rate of $1,269 per month. 20 Mbps is the minimum Comcast will provide for this service. The monthly cost of this service has been included in the budget and will be paid out of the allocation for internet services each billing cycle. An up front construction cost of $6,541 is also required to install this service. The cost of construction and installation will be paid out of the budgeted amounts for capital projects for the site. At this time, the Velocity Collaboration Center is serviced by AT&T for internet. AT&T provides 6 Mbps of internet via 4 T1 lines to the facility at a cost of $1,524 per month, which also includes phone service via IP Flex Lines. We are bound to this service under our contract with AT&T until August of 2015. Due to the increase in tenants at Velocity, additional bandwidth is required to meet demand. As Comcast and AT&T are the only possible providers to the site, a formal bid process was not required by the City processes. We have requested pricing information for increased bandwidth from AT&T. The feedback provided is that the available bandwidth via T1 lines caps out at 12 Mbps, which would increase our monthly cost to $3,494 per month. Upgrades to alternate service in order to provide more bandwidth from AT&T requires us to pay early termination charges to cancel our current contract, fund construction, and enter a new contract for AT&T Ethernet. Therefore, based on cost and service level, administration is recommending approval to utilize Comcast for additional bandwidth needs. There will be a period of duplicate service, during which time, it is expected that bandwidth from both providers will be used until the expiration of the AT&T contract. As additional bandwidth is needed, the fiber option with Comcast provides ease of scalability for future increases. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve a Master Services Agreement (MSA) between Comcast Cable Communications Management LLC., and the Local Development Financing Authority (LDFA)  For City of Sterling Heights LDFA Submitted by: Steve Mitchell Enterprise Account Executive Comcast Confidential Page 1 6/5/2013  June 5, 2013 CONFIDENTIAL THIS PROPOSAL IS VALID FOR 60 DAYS Why WE OWN OUR LAST MILE! We do not use any part of the local phone company’s network to deliver our service to you! State-of-the-Art Enterprise Customer Support! All our Ethernet/Fiber customers are handled by a separate CARE group that ONLY handles Enterprise customers! Web-Based Reporting with connectivity statistics for the previous day, 7 day, or 30 day period – can be viewed through a secured website. Comcast Confidential Page 2 6/5/2013  We terminate our network in your data room on equipment we provide! Our solution is scalable without adding additional equipment and/or fiber into your facility. Upgrading to a faster speed is done remotely! We deliver our services Layer 2 to you, allowing customer to have network control! Comcast is MEF Compliant and IPv6 enabled! INVESTMENT SUMMARY T he pr od uc ts list ed b e low are t he f o llow in g: E t h er net D e d ic at ed In t e rne t ( ED I) – Met ro Et he rn et D e d ica t ed F i be r Comcast Confidential Page 3 6/5/2013  Comcast EDI Quote M on t h l y Non Pr od uct T er m Ba ndw idth Recurring Recurring C o nst ru ct io n Charge Charge Cost EDI 3 ye a rs 2 0M bps $ 1 ,26 9 WA IVED $ 6 ,54 1 EDI 3 ye a rs 2 5M bps $ 1 ,38 6 WA IVED $ 4 ,72 8 EDI 3 ye a rs 3 0M bps $ 1 ,49 4 WA IVED $ 3 ,06 0 EDI 3 ye a rs 4 0M bps $ 1 ,65 3 WA IVED $ 643 *No EDI 3 ye a rs 5 0M bps $ 1 ,81 9 WA IVED C o nst ru ct io n Cost! I n c lu d e s : ======== - 20-5 0M bps F ib er c on ne ct i vit y - 14 Stat i c I P a dd res se s - $21 ,508 Co nst ru ct ion Pro ject – C o mca st t o pa y $ 14 ,967 , cu st omer re sp on s ib le fo r $ 6 ,54 1 - W A I V ED - $ 1 ,00 0 N R C Executive Summary Comcast Confidential Page 4 6/5/2013 I would like to take this opportunity to thank you for considering Comcast Business Services as a potential provider of your dedicated access connectivity. In choosing Comcast Business Services as your provider, you will have the assurance that your business will be partnered with a vendor that implements state of the art technology with world class customer support. Our experience as a company allows for us to provide reliable, scalable services. With our extensive cable experience and robust fiber optic network, we have progressed into the Metro Ethernet and Dedicated Internet Access market. Comcast Enterprise Metro Ethernet Solution includes the following Features and Benefits: • Flexibility to scale up to 1Gbps WITHOUT onsite visit or equipment swap • No Equipment Purchase Required: Comcast provides all necessary equipment, installation and maintenance for the termination and demarcation of the circuit • 24x7x365 dedicated technical support via the Network Operations Center – handles Enterprise Business Accounts Only! • A Proactive Managed Network with Service Level Agreements on availability • 100% Fiber Network • Capable of providing up to 10Gbps of bandwidth! Please let me know if you have any questions regarding our Metro Ethernet solution. I look forward to a successful business partnership. Best Regards, Steve Mitchell Enterprise Account Executive 248-808-6185 steve_mitchell@cable.comcast.com Comcast Confidential Page 5 6/5/2013  COMCAST ENTERPRISE SERVICES SALES ORDER FORM page 1 Account Name: City of Sterling Heights LDFA MSA ID#: MI-328233-smitc SO ID#: MI-328233-smitc-221118 CUSTOMER INFORMATION (for notices) Primary Contact: Kasey Green City: Sterling Heights Phone: (586) 884-9327 Title: Economic Development Manager State: MI Cell: Address 1: 6633 18 Mile Rd Zip: 48314 Fax: Address 2: Email: kgreen@sterling-heights.net SUMMARY OF CHARGES (Details on following pages) Service Term (Months): 36 SUMMARY OF SERVICE CHARGES* SUMMARY OF CUSTOM INSTALLATION FEES Total Metro Ethernet Monthly Recurring Charges: $ 1,269.00 Total Custom Installation Fee: $ 6,541.00 Total Trunk Services Monthly Recurring Charges: $ 0.00 Amortized Custom Installation Fee $ 0.00 Total Off-Net Monthly Recurring Charges: $ 0.00 Total Monthly Recurring Charges (all Services): $ 1,269.00 Total Metro Ethernet Standard Installation Fees*: $ 0.00 Total Trunk Services Standard Installation Fees: $ 0.00 Total Off-Net Standard Installation Fees: $ 0.00 Total Standard Installation Fees (all Services): $ 0.00 *Note: Charges identified in the Service Order are exclusive of maintenance and repair charges, and applicable federal, state, and local taxes, fees, surcharges and recoupments (however designated). Please refer to your Comcast Enterprise Services Master Services Agreement (MSA) for specific detail regarding such charges. Customer shall pay Comcast one hundred percent (100%) of the non-amortized Custom Installation Fee prior to the installation of Service. GENERAL COMMENTS AGREEMENT This Comcast Enterprise Services Sales Order Form ("Sales Order") shall be effective upon acceptance by Comcast. This Sales Order is made a part of the Comcast Enterprise Services Master Services Agreement, entered between Comcast and the undersigned and is subject to the Product Specific Attachment for the Service(s) ordered herein, located at http://business.comcast.com/enterprise-terms-of-service, (the "Agreement") . Unless otherwise indicated herein, capitalized words shall have the same meaning as in the Agreement. E911 NOTICE Comcast Business Class Trunking Service may have the E911 limitations specified below: • The National Emergency Number Association (NENA), a 911 industry organization that makes recommendations for standardized services relating to E911, has issued guidelines that state “The PBX owner is responsible for creating customer records, preferably in NENA standard format, that identify caller locations.” To facilitate Customer’s compliance with these guidelines and with associated state and local requirements related to provision of Automatic Location Information (ALI) for E911 services, Comcast offers two options: a. Comcast will send to the ALI database or Subscriber Location Database (SLDB) the main billing telephone number and the main address provided by Customer; or b. Customer may choose to sign up for up to 10 Emergency Location Information Numbers (ELINs) that Customer could assign to zones within Customer’s premises that would be separately identified to the E911 call taker. The location information, such as a specific floor, side of a building, or other identifying information, could assist emergency responders to more quickly reach the appropriate location. Customer is solely responsible for programming it’s PBX system to map each station to one of these numbers, and for updating the system as necessary to reflect moves or additions of stations within the premises. Comcast will send the assigned ELINs to the ALI or SLDB database, as is appropriate. • Many jurisdictions require businesses using multi-line telephone systems to program their systems to transmit specific location information for 911 calls. Customer bears sole responsibility to ensure that it identifies and complies with all such requirements. In any event, if Customer does not maintain E911 records in a timely and accurate manner, the E911 call taker may not receive proper location information, and emergency responders may be delayed or even prevented from timely reaching the caller’s location. • Battery Back Up - The Integrated Access Device (IAD) provided by Comcast is not equipped with battery backup. It is Customer’s responsibility to ensure adequate back-up power is provided to ensure service continuity during a power outage, as employees would otherwise be unable to use the Services, including dialing 9-1-1, when power is unavailable. • Calls using the Service, including calls to 911, may not be completed if there is a problem with network facilities, including network congestion, network/equipment/power failure, or another technical problem. • All questions should be directed to 1-800-391-3000. E911 Service, Private Branch Exchange, and Direct Inward Dial Service. By signing below, Customer acknowledges, agrees to and accepts the terms and conditions of this Sales Order. CUSTOMER USE ONLY (by authorized representative) COMCAST USE ONLY (by authorized representative) Signature: Signature: Sales Rep: Steve Mitchell Name: Name: Sales Rep E-Mail: steve_mitchell@cable.comcast.com Title: Title: Region: Heartland Date: Date: Division: Central  COMCAST ENTERPRISE SERVICES SALES ORDER FORM METRO ETHERNET SERVICES AND PRICING Account Name: City of Sterling Heights LDFA MSA ID#: MI-328233-smitc SO ID#: MI-328233-smitc-221118 Date: June 05, 2013 Service Term (Months): 36 page 2 Solution Charges Service Location Service Location Line Request Action Service(s) Description Tax Jurisdiction Monthly One-Time A* Z* City of Sterling 1 New Add EDI-NI-20 20 Mbps Interstate $ 567.00 $ 0.00 6633 18 MILE RD City of Sterling 2 New Add EDI-20 20 Mbps Interstate $ 702.00 $ 0.00 6633 18 MILE RD * Services Location Details attached Page 2 Total $ 1,269.00 $ 0.00  COMCAST ENTERPRISE SERVICES SALES ORDER FORM SERVICE LOCATION DETAIL INFORMATION June 05, Account Name: City of Sterling Heights LDFA MSA ID#: MI-328233-smitc SO ID#: MI-328233-smitc-221118 Date: 2013 page 3 Technical / Technica Location Extend to Inside Technical / Technical / Local Zip DeMarc Local l Contact Line Name / Site Address 1 Address 2 City State DeMarc Wiring Local Contact Contact Email Code Location Contact On Site ID (Yes/No) (Yes/No) Phone # Address Name (Yes/No) City of 6633 18 MILE STERLING kgreen@sterling- 1 MI 48314 1 Kasey Green (586)884-9322 No Sterling RD HEIGHTS heights.net  MSA ID#: MI-328233-smitc MSA Term: 60 months Account Name: City of Sterling Heights LDFA CUSTOMER INFORMATION Primary Contact: Kasey Green Primary Contact Address Information Title: Economic Development Manager Address 1: 6633 18 Mile Rd Phone: (586) 884-9327 Address 2: Cell: City: Sterling Heights Fax: State: MI Email: kgreen@sterling-heights.net Zip Code: 48314 This Master Service Agreement ("Agreement") sets forth the terms and conditions under which Comcast Cable Communications Management, LLC and its operating affiliates (“Comcast”) will provide communications and other services (“Services”) to the above Customer. The Agreement consists of this fully executed Master Service Agreement Cover Page (“Cover Page”), the Enterprise Services General Terms and Conditions (“General Terms and Conditions”), any written amendments to the Agreement executed by both parties ("Amendments"), the Product-Specific Attachment for the applicable Services (“PSA(s)”) and each Sales Order accepted hereunder (“Sales Orders”). In the event of any inconsistency among these documents, precedence will be as follows: (1) this Cover Page (2) General Terms and Conditions, (3) PSA(s), , and (4) Sales Orders. This Agreement shall be legally binding when signed by both parties and shall continue in effect until the expiration date of any Service Term specified in a Sales Order referencing the Agreement, unless terminated earlier in accordance with the Agreement. The Customer referenced above may submit Sales Orders to Comcast during the Term of this Agreement (“MSA Term”). After the expiration of the initial MSA Term, Comcast may continue to accept Sales Orders from Customer under the Agreement, or require the parties to execute a new MSA. The Agreement shall terminate in accordance with the General Terms and Conditions. The General Terms and Conditions and PSAs are located at http://business.comcast.com/enterprise-terms-of-service/index.aspx(or any successor URL).Use of the Services is also subject to the High-Speed Internet for Business Acceptable Use Policy (“AUP”) located at http://work.comcast. net/legal/aup.asp (or any successor URL), and the High-Speed Internet for Business Privacy Policy (Privacy Policy”) located at http://work.comcast.net/legal/privacy.asp (or any successor URL). Comcast may update the General Terms and Conditions, PSAs, AUP and Privacy Policy from time to time upon posting to the Comcast website. Services are only available to commercial customers in wired and serviceable areas in participating Comcast systems (and may not be transferred). Minimum Service Terms are required for most Services and early termination fees may apply. Service Terms are identified in each Sales Orders, and early termination fees are identified in the applicable Product Specific Attachments. BY SIGNING BELOW, CUSTOMER AGREES TO THE TERMS AND CONDITIONS OF THIS AGREEMENT. CUSTOMER SIGNATURE (by authorized representative) Signature: Name: Title: Date: COMCAST USE ONLY (by authorized representative) Signature: Sales Rep: Steve Mitchell Name: Sales Rep Email: steve_mitchell@cable.comcast.com Title: Region: Heartland Date: Division: Central