Local Development Finance Authority

CITY OF STERLING HEIGHTS Special Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 6633 18 Mile Road, Sterling Heights 586-884-9322 VELOCITY BUILDING June 23, 2020 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF February 11, 2020 Special Meeting APPROVAL OF MINUTES OF March 13, 2020 Special Meeting APPROVAL OF MINUTES OF May 19, 2020 Special Meeting APPROVAL OF MINUTES OF June 16, 2020 Regular Meeting NEW BUSINESS 1. To approve the Lease Agreement between Keihin North America, Inc. and the Local Development Finance Authority (LDFA). 2. To award a construction contract to Progressive Irrigation Inc. for Landscaping and Irrigation Improvements in the amount of $108,322.45, and authorize the Local Development Finance Authority Chairperson to sign all required documents on behalf of the Board. 3. Presentation from Issue Media Group for media/marketing services. 4. RFP for Entrepreneurial Services OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE SPECIAL MEETING February 11, 2020 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 Velocity Building Phil Hunsberger called the meeting to order at 8:00 a.m. Pledge of Allegiance Members present at roll call: David Corba, Phil Hunsberger, Laurel Johnson, John Lettang, Steve Pomaville, Camille Silda, Howard Sizemore, Jill Tomyn, Corey Venetis Members absent: Stephanie Eagen, Robert Ljucovic, Fred Molnar, Jim Ruma Also in attendance: Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights; Mike Viazanko, Building Official – City of Sterling Heights; Hannah Tadros - City of Sterling Heights; Larry Herriman, Executive Director – Macomb OU Incubator, Keith Potter – Ibex Insurance Agency; George Hartmann – Hartmann Architects; Chad Johnson – FH Martin; Fred Reger – FH Martin Motion to Approve the Agenda Moved by Silda, supported by Lettang, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of November 19, 2019 Regular Meeting Moved by Lettang, supported by Tomyn, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve the renewal insurance premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA). Mr. Keith Potter presented the renewal insurance premium. There were no changes from the previous year with the exception of depreciation, therefore reducing the premium amount. Moved by Lettang, supported by Pomaville to approve the renewal insurance premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Renewal Agreement between Defense Center Executive Group, LLC and the Local Development Finance Authority (LDFA). Ms. Quell presented a Lease Renewal Agreement for the time period of January 1, 2020 thru October 31, 2020 between Defense Center Executive Group, LLC and the Local Development Finance Authority (LDFA) for spaces #1-A, #1-B and #1-G consisting of approximately 77, 77, 560 square feet at a rate of $900.00/month. The renewal period was adjusted to coincide with the fiscal year of the MEDC. Moved by Silda, supported by Johnson to approve the Lease Renewal Agreement between Defense Center Group, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To award Velocity Work Space Renovation project to F.H. Martin in the amount of $466,700.00. Mr. Hartmann presented the bids from the RFP for the Velocity Work Space Renovation. A meeting was held on February 4, 2020, with Mr. Hartmann, Ms. Quell and Mr. Viazanko to review the bids and make a recommendation. F.H. Martin was the low qualified bidder at $466,700 for the project according to the plans and specifications and can meet the schedule established for the project. Moved by Pomaville, supported by Corba to award Velocity Work Space Renovation project to F.H. Martin in the amount of $466,700.00. Ayes: All Nays: None Motion carried. To approve Budget Adjustment FY 2019/2020 for Work Space Renovation to $600,000. Ms. Quell presented that the LDFA Board approved, on September 5, 2019, “Funding not to exceed $400,000 for the Velocity Work Space Renovation project.” Based on the low qualified bid from F.H. Martin in the amount of $466,700, it is requested that the do not exceed amount for the project be $600,000 to allow for furniture, architect fees, and unanticipated costs. A Budget Adjustment for FY 2019/2020 is requested of the LDFA Board. Moved by Pomaville, supported by Venetis to approve Budget Adjustment FY 2019/2020 for Work Space Renovation to $600,000. Ayes: All Nays: None Motion carried. To approve the 2020/2021 Budget Proposal for the Local Development Finance Authority (LDFA). Ms. Quell presented the 2020/2021 Budget Proposal, with supporting documentation, for the Local Development Finance Authority. This proposal will be presented to and approved by City Council and then presented to the LDFA Board in June for adoption. Moved by Venetis, supported by Pomaville to approve the 2020/2021 Budget Proposal for the Local Development Finance Authority (LDFA). Update – Oakland University Mr. Herriman presented an update on the activities of Oakland University. Old Business Board Members Report Public Comment None Adjournment Moved by Lettang, supported by Johnson to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:01 am. Kq  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE SPECIAL MEETING March 13, 2020 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 Velocity Building Phil Hunsberger called the meeting to order at 8:02 a.m. Pledge of Allegiance Members present at roll call: David Corba, Phil Hunsberger, John Lettang, Steve Pomaville, Jim Ruma, Howard Sizemore, Jill Tomyn, Corey Venetis Members absent: Stephanie Eagen, Ellanore Evans, Laurel Johnson, Robert Ljucovic, Fred Molnar, Camille Silda Also in attendance: Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; Marc Kaszubski, City Attorney – O’Reilly Rancilio PC; Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights Open Meeting up to Public Participation – no public in attendance Vote to go into Closed Session Moved by Ruma, supported by Venetis, to go into Closed Session. Ayes: All Nays: None Motion carried. Kq Minutes Approved 6/23/2020 John Lettang Secretary  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE SPECIAL MEETING May 19, 2020 – 8:00 a.m. Videoconference and Teleconference 586-884-9322 Phil Hunsberger called the meeting to order at 8:01 a.m. Pledge of Allegiance Members present at roll call: David Corba, Phil Hunsberger, Laurel Johnson, John Lettang, Fred Molnar, Steve Pomaville, Camille Silda, Howard Sizemore, Jill Tomyn, Corey Venetis Members absent: Stephanie Eagen, Ellanore Evans, Robert Ljucovic, Jim Ruma Also in attendance: Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; Marc Kaszubski, City Attorney – O’Reilly Rancilio PC; Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights Open Meeting up to Public Participation – no public in attendance Motion to Approve the Agenda Moved by Lettang, supported by Pomaville, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Vote to go into Closed Session Moved by Johnson, supported by Lettang, to go into Closed Session. Ayes: All Nays: None Motion carried. Kq  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING June 16, 2020 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 Velocity Building Phil Hunsberger called the meeting to order at 8:01 a.m. Pledge of Allegiance Members present at roll call: David Corba, Phil Hunsberger, Laurel Johnson, John Lettang, Steve Pomaville, Camille Silda, Howard Sizemore, Jill Tomyn, Corey Venetis Members absent: Stephanie Eagen, Ellanore Evans, Robert Ljucovic, Fred Molnar, Jim Ruma Also in attendance: Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; Marc Kaszubski, City Attorney – O’Reilly Rancilio PC; Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights; Dr. David Stone, Associate Vice President-Research – Oakland University; Larry Herriman, Executive Director – Macomb OU Incubator Motion to Approve the Agenda Moved by Venetis, supported by Lettang, to approve the agenda as presented. Ayes: All Nays: None Motion carried. To consider termination of Program Services Agreement between the Sterling Heights Local Development Finance Authority and Oakland University dated November 15, 2018, and authorize issuance of an RFP for entrepreneurial services. Mr. Bonner explained Local Development Finance Authority; a Development Plan and Tax Increment Finance Plan and how the financing works including eligible expenditures. Mr. Bonner discussed the structure of Velocity and other SmartZones State-Wide. He said, through an RFP, the LDFA would seek proposals for a new service provider. The proposals would be narrowed down to the top three finalists plus Oakland University would be a finalist automatically if they chose to submit. Mr. Herriman introduced representatives from: NuBox, Coliant/Powerlet, Giddeon Tech Labs, Keihin North America, Leadership Macomb and SBDC to speak about their relationship with Macomb OU-Incubator. Mr. Herriman said Macomb OU-Incubator has established connections and works to assist in funding. He also spoke of Macomb OU-Incubator’s relationship with clients. Dr. Stone spoke of changing providers in the midst of the COVID crisis and Macomb OU-Incubator accomplishments. Mr. Sizemore asked the speakers if their companies were in Macomb County. They responded yes. Ms. Johnson inquired why terminate before the new service provider is determined. Mr. Bonner stated that there is a 60-day notification and it coincides with the new fiscal year which avoids pro-rating. Mr. Corba asked if the RFP will follow guidelines. Mr. Bonner stated that the City’s purchasing director will be posting the RFP and providing the eligible candidates. Once the candidates are reviewed, finalists will be chosen to present to the LDFA Board. A review of the RFP will be at the next LDFA meeting. Mr. Hunsberger said the LDFA Board will vote: To terminate the Program Services Agreement between the Sterling Heights Local Development Finance Authority and Oakland University dated November 15, 2018, and authorize issuance of an RFP for entrepreneurial services. David Corba – yes Phil Hunsberger – yes Laurel Johnson – yes John Lettang – yes Steve Pomaville – yes Camille Silda – no vote; request to recuse Howard Sizemore – yes Jill Tomyn – yes Corey Venetis - yes Ayes: All Nays: None Motion carried. Old Business Public Comment None Adjournment Moved by Lettang, supported by Pomaville to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:28 am. Kq  LDFA Business Sterling Heights, Michigan 6/23/20 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between Keihin North America, Inc. and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist, Velocity Executive Summary Attached for LDFA review is a Month-to-Month Lease Agreement commencing on July 1, 2020 for space #2-E consisting of 907 square feet at a rental rate of $1209.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Agreement between Keihin North America, Inc. and the Local Development Finance Authority (LDFA).  City Clerk's Use Business of the LDFA Item No: Sterling Heights, Michigan Meeting: 06/23/19 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To award a construction contract to Progressive Irrigation Inc. for LDFA Landscape and Irrigation Improvements Submitted By: City Development Department Contact Person/Telephone: Jason Castor, City Development Director (586) 446-2386 Executive Summary: On December 3, 2015 the Local Development Finance Authority (LDFA) awarded a contract to Hubbell, Roth & Clark engineering consultants to complete an Improvement Plan for the LDFA/SMARTZONE district. The Improvement Plan recommends a number of improvements for the LDFA District. The first phase of improvements were awarded in 2017. These improvements included monument signs and wayfinding signs installed at Sterling Enterprise Park near 17 Mile Road and Van Dyke, at the Velocity Entrance at 18 Mile Road, and monument only signs installed at 18.5 Mile Road at Mound and Van Dyke. Phase II of this project was to complete intersection improvements at two prominent business intersections within the LDFA district. The locations were Center Drive and Sterling Ponds Drive and were highlighted within the Improvement Plan for signage. The LDFA board awarded the sign work only to Johnson Sign Co. at the September 5, 2019 LDFA Meeting. Johnson Sign Company completed the sign work last year. If you recall during this meeting we split the award for the sign work and site work, which included landscaping and irrigation, due to the high cost of the landscaping items. The site work provides aesthetic improvements to the boulevard islands complementing the newly installed signs. Site work includes landscaping treatments, irrigation, up lighting and a flag pole to complement the proposed signage. On Friday, May 22, 2020 at 2:30 p.m., bids were received for the site work component of this project. Three bids were received ranging from $108,322.45 to $257,220.00. The low bid, submitted by Progressive Irrigation Inc., located at 4584 Clawson Tank Drive, Clarkston, MI 48346. Bids were reviewed by the City’s consultant engineer Hubbell Roth & Clark, and their recommendation for bid award is attached. Recommendation is being made to award the bid to the low bidder, Progressive Irrigation Inc., 4584 Clawson Tank Drive, Clarkston, MI 48346, for the bid amount of $108,322.45. Suggested Action: MOVED BY: SECONDED BY: 1. RESOLVED, to award a construction contract to Progressive Irrigation Inc. for Landscaping and Irrigations Improvements in the amount of $108,322.45., and authorize the Local Development Finance Authority Chairperson to sign all required documents on behalf of the Board. 1  MAILING: PO Box 824 Bloomfield Hills, MI 48303-0824 SHIPPING: 555 Hulet Drive Bloomfield Hills, MI 48302-0360 PHONE: 248-454-6300 WEBSITE: hrcengr.com June 9, 2020 City of Sterling Heights 40555 Utica Road Sterling Heights Michigan 48313 Attn: Jason Castor, City Developer Director Re: LDFA Landscape and Irrigation Improvements HRC Job No. 20180678 Dear Mr. Castor: Enclosed herewith is a Bid Tabulation of the three (3) bids received on Friday, May 22, 2020 for the LDFA Landscape and Irrigation Improvements Project. The low bid for the project of $ 108,322.45 was submitted by Progressive Irrigation Inc., located at 4584 Clawson Tank Drive, Clarkston, MI 48346 The low bid is competitive to the bids submitted by the other bidders and conforms to the requirements of the Specifications and reflects the value of the work. Therefore, we recommend award of the Contract to Progressive Irrigation, Inc., in the amount of $ 108,322.45, when the necessary financial arrangements have been made. If you have any questions or require any additional information, please contact the undersigned. Very truly yours, HUBBELL, ROTH & CLARK, INC. Sal Conigliaro, P.E. Senior Associate SC/jk Pc: HRC; M. MacDonald, File Enclosures: Bid Tabulation Delhi Township Detroit Grand Rapids Howell Jackson Kalamazoo Lansing 2101 Aurelius Rd. 535 Griswold St. 1925 Breton Road SE 105 W. Grand River 401 S. Mechanic St. 834 King Highway 215 S. Washington SQ Suite 2A Buhl Building, Ste 1650 Suite 100 Howell, MI 48843 Suite B Suite 107 Suite D Holt, MI 48842 Detroit, MI 48226 Grand Rapids, MI 49506 517-552-9199 Jackson, MI 49201 Kalamazoo, MI 49001 Lansing, MI 48933 517-694-7760 313-965-3330 616-454-4286 517-292-1295 269-665-2005 517-292-1488 \\hrc-engr\General\Projdocs\201806\20180678\05_Constr\04_Design\Final\Bidding\Bid_Docs\Letter_Recommendation_20200608.docx  CITY OF STERLING HEIGHTS BID TABULATION - MAY 21, 2020 ITB-SH20-033: LDFA LANDSCAPING IRRIGATION IMPROVEMENTS Anglin Civil Marine City Nursery Progressive Irrigation Section I: Center Drive Quantity Unit Unit Price Total Cost Unit Price Total Cost Unit Price Total Cost Site Clearing 1 LS $ 18,000.00 $ 18,000.00 $ 5,000.00 $ 5,000.00 $ 700.00 $ 700.00 Planting Bed Mix, 8 inch 25 CY 60.00 1,500.00 100.00 2,500.00 41.00 1,025.00 Shredded Hardwood Bark Mulch 15 CY 61.20 918.00 65.00 975.00 23.75 356.25 Vinca Minor “Mytrle” 40 Flats 76.80 3,072.00 100.00 4,000.00 56.50 2,260.00 J.SA. Tamariscifolia (Spreading Juniper) 180 EA 57.60 10,368.00 55.00 9,900.00 41.04 7,387.20 Steel Edging 245 LF 10.80 2,646.00 10.00 2,450.00 5.71 1,398.95 Cobble Stone on Filter Fabric, (6” – 10” Stone) 15 CY 222.00 3,330.00 300.00 4,500.00 131.00 1,965.00 Automated Irrigation System, Complete 1 IS 20,400.00 20,400.00 9,350.00 9,350.00 11,527.80 11,527.80 1-1/2” Water Tap and Water Meter 1 LS 18,000.00 18,000.00 3,850.00 3,850.00 2,500.00 2,500.00 Irrigation Controller Cabinet with Concrete Pad 1 EA 12,000.00 12,000.00 2,750.00 2,750.00 3,775.00 3,775.00 Conduit, Schedule 40, 2 inch (As-Needed) 50 LF 246.00 12,300.00 21.00 1,050.00 19.50 975.00 2-#12+ 1-#12 Grd. (As-Needed) 50 LF 24.00 1,200.00 5.00 250.00 12.25 612.50 Soil Erosion & Sedimentation Control 1 LS 1,800.00 1,800.00 1,000.00 1,000.00 875.00 875.00 Traffic Maintenance 1 LS 4,200.00 4,200.00 1,000.00 1,000.00 1,200.00 1,200.00 Restoration–3-inch Topsoil, Seed, Fertilizer 200 SYD 4.80 960.00 6.50 1,300.00 3.50 700.00 Reimbursed Permit Fee 1 DFR 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 Sub-Total Section I $112,194.00 $ 51,375.00 $38,757.70* Section II: Sterling Ponds Blvd. Quantity Unit Unit Price Total Cost Unit Price Total Cost Unit Price Total Cost Site Clearing 1 LS $ 18,000.00 $ 18,000.00 $ 7,500.00 $ 7,500.00 $1,680.00 $ 1,680.00 Planting Bed Mix, 8 inch 60 CY 60.00 3,600.00 100.00 6,000.00 41.00 2,460.00 Shredded Hardwood Bark Mulch 25 CY 61.20 1,530.00 65.00 1,625.00 23.75 593.75 Vinca Minor “Mytrle” 40 Flats 76.80 3,072.00 100.00 4,000.00 56.50 2,260.00 J.SA. Tamariscifolia (Spreading Juniper) 300 EA 57.60 17,280.00 55.00 16,500.00 41.04 12,312.00 Salvia N. "May Night" 260 EA 24.00 6,240.00 17.00 4,420.00 14.28 3,712.80 Hemerocallis "Happy Returns" (Daylily) 300 EA 24.00 7,200.00 17.00 5,100.00 14.98 4,494.00 Steel Edging 250 LF 10.80 2,700.00 10.00 2,500.00 5.71 1,427.50 Steel Edging Salvaged 200 LF 8.40 1,680.00 8.00 1,600.00 - - Cobble Stone on Filter Fabric, (6”- 10” Stone) 22 CY 222.00 4,884.00 300.00 6,600.00 131.00 2,882.00 Flood Lights, Complete 2 EA 1,440.00 2,880.00 500.00 1,000.00 780.00 1,560.00 Automated Irrigation System, Complete 1 LS 19,200.00 19,200.00 9,900.00 9,900.00 15,346.00 15,346.00 1-1/2” Water Tap and Water Meter 1 LS 18,000.00 18,000.00 3,850.00 3,850.00 2,500.00 2,500.00 Irrigation Controller Cabinet with Concrete Pad 1 EA 12,000.00 12,000.00 2,750.00 2,750.00 3,775.00 3,775.00 Conduit, Schedule 40, 2 inch (As-Needed) 50 LF 246.00 12,300.00 21.00 1,050.00 19.50 975.00 2-#12+ 1-#12 Grd. (As-Needed) 50 LF 24.00 1,200.00 5.00 250.00 12.25 612.50 Soil Erosion & Sedimentation Control 1 IS 1,800.00 1,800.00 1,000.00 1,000.00 875.00 875.00 Flagpole Complete 1 IS 4,800.00 4,800.00 8,200.00 8,200.00 8,699.20 8,699.20 Traffic Maintenance 1 IS 4,200.00 4,200.00 1,000.00 1,000.00 1,200.00 1,200.00 Restoration–3-inch Topsoil, Seed, Fertilizer 200 SYD 4.80 960.00 6.50 1,300.00 3.50 700.00 Reimbursed Permit Fee 1 DLR 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 Sub-Total Section II $145,026.00 $ 87,645.00 $ 69,564.75 Total Amount of Bid $257,220.00 $ 139,020.00 $ 108,322.45 * Price ajusted by Purchasing O:\ITB\Community Development\LDFA Landscape Irrigation\Bid Tabulation ITB-SH20-038