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 July 8, 2015 12:00 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF May 20, 2015 Regular Meeting NEW BUSINESS 1. To approve the 3-year Master Service Agreement between ComLink and the Local Development Finance Authority (LDFA). 2. To award a bid for Velocity Park Lot Repairs, City Project #14-256 (Total Estimate Cost of $195,431.50). OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING May 20, 2015 – 8:00 a.m. 40555 Utica Road, Sterling Heights, MI 48313 586-884-9322 City Council Chambers Phil Hunsberger called the meeting to order at 8:03 a.m. Pledge of Allegiance Members present at roll call: Stephanie Eagen, Phillip Hunsberger, Richard Kincaid, John Lamerato, John Lettang, Victor Martin, Jill Tomyn, Orest Zachary Members absent: Stephen Cassin, David Corba, Lori Doughty, Laurel Johnson, Paula Sorrell, Also in attendance: Larry Herriman, Assistant Director, Macomb OU–INCubator, Jennifer Tisdale, CyberSecurity, Defense and Homeland Security Business Development Manager, MEDC, Luke Bonner, CEO, Bonner AG Motion to Approve the Agenda Moved by Martin, supported by Zachary, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of April 27, 2015 Special Meeting Moved by Martin, supported by Lamerato, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve the Lease Agreement Renewal between Mango Tree Capital, LLC and the Local Development Finance Authority (LDFA). Moved by Martin, supported by Lettang to approve the Lease Agreement Renewal between Mango Tree Capital, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Agreement Renewal between Clean Energy Innovations, LLC (dba LogiCoul Solutions) and the Local Development Finance Authority (LDFA). Moved by Lettang, supported by Martin to approve the Lease Agreement Renewal between Clean Energy Innovations, LLC (dba LogiCoul Solutions) and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Agreement Renewal Amendment between The Metiss Group and the Local Development Finance Authority (LDFA). Mr. Martin stated that the existing lease agreement currently provides for 30-day notification of termination should the landlord (LDFA) not provide a comfortable work environment to the tenant. Moved by Martin, supported by Zachary to deny the Lease Agreement Renewal Amendment between The Metiss Group and the Local Development Finance Authority (LDFA). Ayes: None Nays: All Motion denied. To approve the Sub-Lease Agreement between Macomb County Department of Planning and Economic Development, Vigurus Technologies and the Local Development Finance Authority (LDFA). Moved by Lettang, supported by Kincaid to approve the Sub-Lease Agreement between Macomb County Department of Planning and Economic Development, Vigurus Technologies and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Sub-Lease Agreement between Macomb County Department of Planning and Economic Development, Fluid Power House and the Local Development Finance Authority (LDFA). Moved by Lettang, supported by Eagen to approve the Sub-Lease Agreement between Macomb County Department of Planning and Economic Development, Fluid Power House and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Sub-Lease Agreement between Macomb County Department of Planning and Economic Development, NFC North America and the Local Development Finance Authority (LDFA). Moved by Lettang, supported by Zachary to approve the Sub-Lease Agreement between Macomb County Department of Planning and Economic Development, NFC North America and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the 3-year Master Service Agreement between ComLink and the Local Development Finance Authority (LDFA). Mr. Martin requested competitive bidding from AT&T and Comcast since we are already under contract with those providers. Ms. Quell stated that she will obtain pricing and report back. Moved by Martin, supported by Kincaid to postpone the 3-year Master Service Agreement between ComLink and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Hosted AltiGen Solution phone system by the Local Development Finance Authority (LDFA). Moved by Martin, supported by Lettang to approve the Hosted AltiGen Solution phone system by the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the purchase and installation of a projector screen and conference calling equipment by the Local Development Finance Authority (LDFA). Moved by Martin, supported by Kincaid to approve the purchase and installation of a projector screen and conference calling equipment by the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve $5,623.00 of funding to support the installation of the MERIT network for the Michigan Cyber Range at Velocity by the Local Development Finance Authority (LDFA). Moved by Martin, supported by Zachary to approve $5,623.00 of funding to support the installation of the MERIT network for the Michigan Cyber Range at Velocity by the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. Old Business Board Members Report None Public Comment None Adjournment Moved by Zachary, supported by Kincaid to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:55 am KQ  LDFA Business Sterling Heights, Michigan 7/8/15 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the 3-year Master Service Agreement between ComLink and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Economic Development Management Assistant Executive Summary Currently, the Velocity building is serviced by Comcast and AT&T with those contracts expiring 7/22/16 and 10/26/15, respectively. The proposal is to replace the AT&T service with ComLink, giving the facility increased bandwidth and a 29% cost savings. ComLink would bring the fiber to the building at zero cost. The contract would include: 1) Install the 50M fiber connection through ComLink 2) Splice 2M off the 50M connection and designate that independently for voice traffic. 3) Engineer that 2M connection to deliver a traditional PRI handoff to your phone system. 4) Move the analog/POTS lines from AT&T to ComLink A financial snapshot is included detailing the cost savings along with supporting documentation. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the 3-year Master Service Agreement between ComLink and the Local Development Finance Authority (LDFA). • The hosted PBX/Phones with Network Connections will replace the current AT&T phone lines and DID’s. Therefore, the current AT&T service will have to be replaced. • A robust fiber connection is the backbone for the Hosted PBX/Phones to ride over. We cannot implement the Hosted PBX/Phones without this. • The fiber installation typically takes 90-120 days. Based on the current AT&T contract, expiring September 2015, we need to get the fiber ordered very soon. • The Comlink fiber connection will deliver 50M of bandwidth for internet use (compared to the current 12M) and support the Hosted PBX/Phones. This is step one. Nothing else can happen before this. $0 cost. • Once the fiber is connected, it will be tested internally and verified that it is ready to support internet and Hosted PBX/Phones. Comcast • Velocity is 19 months into a 36 month agreement. The cost of the fiber installation was built into the high monthly fee of $1269.00/month. • In re-negotiating, Comcast is asking for another 36 month term. • Does not offer a Service Level Agreement (SLA) for support/outages. • As far as upgrading the current 30 Mbps fiber optic bandwidth: 100Mbps - $1,769/month – Increase of $500/month for 80Mbps 50Mbps - $1,369/month – Increse of $100/month for 30Mbps The construction to bring coax (to deliver POTs lines) would be well over $15,000, therefore Comcast recommended to seek another carrier. AT&T • For 50Mbps and 4 Pots the proposal is $1365.20/month (attached) Comlink • 50Mbps and 4 Analog lines $860/month.  • Provided addendum allowing Velocity to upgrade and/or migrate services within the Comlink product portfolio during the 36 month term, allowing flexibility change with technology. • Service Level Agreement (SLA) to address support issues/outages. With two providers, Comlink and Comcast, we would have a diverse fiber route. Comcast will be utilized as an internet source for guests and general browsing. The Hosted PBX/Phones will run over the more secure Comlink fiber connection. Steve Deon, the IT Manager for the City of Sterling Heights: “I would recommend cancelling the AT&T contract. I would agree to the contract with ComLink for the 50MB service. I would then replace the AT&T phone system with a vendor hosted IP phone solution. I would rely on the 50MB from Comlink for internet service and use the Comcast as secondary bandwidth overflow.” Comlink services the following departments for the City of Sterling Heights: Parks and Recreation, Police, Fire and DPW, and Library.