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 November 22, 2022 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA CONSENT AGENDA A. September 20, 2022 Regular Meeting Minutes B. To approve the International Landing Zone (ILZ) Lease Agreement between Noxmat GmbH and the Local Development Finance Authority (LDFA). C. To Approve the Lease Agreement between LivePicture and the Local Development Finance Authority (LDFA). D. To Approve the Lease Agreement between National Advanced Mobility Consortium and the Local Development Finance Authority (LDFA). NEW BUSINESS 1. To approve the Renewal Insurance Premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA). 2. Update – April Boyle, Senior Advisor for Entrepreneurship and Innovation OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING September 20, 2022 – 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: Josephine Attisha, Dr. Michael Balsamo, Phil Hunsberger, Laurel Johnson, Dominic Patrus, Vicky Rowinski, Howard Sizemore, Jill Tomyn Members absent: Ellanore Evans, Bill Holbrook, Josh Hundt, John Lettang, Steve Pomaville, Jeanne Schabath-Lewis Also in attendance: Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights; Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; April Boyle, Senior Advisor for Entrepreneurship and Innovation; Rachele Downs, EIR - Downs Diversity Initiatives Motion to Approve the Agenda Moved by Balsamo, supported by Patrus, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the CONSENT AGENDA as presented Moved by Balsamo, supported by Johnson, to approve the Consent Agenda as presented. A. To approve the minutes of the Regular Meeting of August 16, 2022. B. To approve the Shared Workspace Agreement between David Trupiano (LecturePanda, LLC) and the Local Development Finance Authority (LDFA). The Agreement is month- to-month at a rate of $100/month. C. To approve the Shared Workspace Agreement between Matthew Chartier (EyeWyre Software Studios) and the Local Development Finance Authority (LDFA). The Agreement is for the time period of 9/6/22 – 10/15/22 at a flat rate of $264.00. D. To approve authority for Kathryn Quell, Local Development Finance Authority (LDFA) liaison, to sign Lease Agreements for the shared Co-Working space on behalf of the LDFA Board. Ayes: All Nays: None Motion carried. New Business To Consider the Proposal for Velocity AV Upgrades between the City of Sterling Heights Local Development Finance Authority (LDFA) and CCS Presentation Systems – MI, 24660 Dequindre Road, Warren MI 48091 in the amount of $105,473.09. Ms. Quell stated that CCS Presentation Systems performed an extensive evaluation of the seven conference spaces at Velocity. The proposal allows for maximum use of each of the spaces based on how each space is utilized. Enhancements include two-way video conferencing, microphones/speakers for presentations, interactive monitors and wireless connection. Ms. Quell stated that the proposal will bring Velocity to the level of technology necessary to support the tenants and programming of the building. Ms. Quell introduced Matthew Vazana, Vice President of CCS Presentation Systems. Mr. Vazana provided a detailed explanation of the technology for each of the spaces in the proposal. Moved by Balsamo, supported by Patrus, to approve the Proposal for Velocity AV Upgrades between the City of Sterling Heights Local Development Finance Authority (LDFA) and CCS Presentation Systems – MI, 24660 Dequindre Road, Warren MI 48091 in the amount of $105,473.09. Ayes: All Nays: None Motion carried. To Approve a Budget Adjustment to fund the AV Upgrades as proposed by CCS Presentation Systems at Velocity. Ms. Quell stated that currently $88,000 is budgeted for AV Upgrades to Velocity. Ms. Quell is requesting Board approval to approve $20,000 from the LDFA fund balance to fully fund the CCS Presentation Systems proposal in the amount of $105,473.09. Moved by Balsamo, supported by Patrus, to approve the Budget Amendment allocating $20,000 from the LDFA fund balance for Velocity AV Upgrades between the City of Sterling Heights Local Development Finance Authority (LDFA) and CCS Presentation Systems – MI, 24660 Dequindre Road, Warren MI 48091 in the amount of $105,473.09. Ayes: All Nays: None Motion carried. To Consider the Facilities Maintenance Independent Contractor Agreement between the City of Sterling Heights Local Development Finance Authority (LDFA) and Helen Tsouroullis in the amount of $15,000. Ms. Quell stated that the facilities maintenance position, at Velocity, has been vacant since January 2022 and it is essential to have a dedicated facilities maintenance person to service the building. Ms. Quell is requesting approval of the contract with Helen Tsouroullis. The contract has been reviewed by the City Attorney. Moved by Balsamo, supported by Tomyn, to approve the Facilities Maintenance Independent Contractor Agreement between the City of Sterling Heights Local Development Finance Authority (LDFA) and Helen Tsouroullis in the amount of $15,000. Ayes: All Nays: None Motion carried. To Consider the License Agreement Peerspectives System between the City of Sterling Heights Local Development Finance Authority (LDFA) and The Edward Lowe Foundation in the amount of $800.00. Ms. Quell stated that April Boyle requests approval of the License Agreement for the Peerspectives System through The Edward Lowe Foundation. Ms. Quell said that the agreement, reviewed by the City Attorney, contains an Indemnification Clause and therefore, requires Board Approval. Moved by Balsamo, supported by Patrus, to approve the License Agreement Peerspectives Systems between the City of Sterling Heights Local Development Finance Authority (LDFA) and The Edward Lowe Foundation in the amount of $800.00. Ayes: All Nays: None Motion carried. Update – April Boyle, Senior Advisor for Entrepreneurship and Innovation Ms. Boyle provided information to the LDFA Board regarding: EIR activity for August 2022, Senior Advisor action items completed since the last meeting, introduction of Mr. Dennis Dela Cruz - Yseali follow and MEDC service provider meeting. Presentation – Luke Bonner, Senior Economic Development Advisor regarding Sterling Innovation District Old Business Public Comment None Adjournment Moved by Balsamo, supported by Rowinski to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:52am  LDFA Business Sterling Heights, Michigan 11/22/22 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the International Landing Zone (ILZ) Lease Agreement between Noxmat GmbH and the Local Development Fiannce Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a 6-month Lease Agreement at $0.00 supported by the International Landing Zone (ILZ) program through Macomb County Department of Planning and Economic Development. The ILZ program assists international companies to network and have a US mailing address at the Velocity building with a goal of establishing a business location in the United States. Noxmat GmbH is a German company specializing in industrial heating technology for ventilation, commercial refrigeration, and air conditioning. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: To approve the International Landing Zone (ILZ) Lease Agreement between Noxmat GmbH and theLocal Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 11/22/22 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between LivePicture and the Local Development Fiannce Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a month-to-month Lease Agreement between LivePicture and the Local Development Finance Authority. The Agreement is in the amount of $243.00 per month for space #2-J consisting of 182 square feet. LivePicture is a technology company specializing in display systems, digital technology and branding. LivePicture previously occupied space #2-C consisting of 593 square feet. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: To approve the Lease Agreement between LivePicture and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 11/22/22 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between National Advanced Mobility Consortium and the Local Development Fiannce Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a one-year Lease Agreement between National Advanced Mobility Consortium and the Local Development Finance Authority. The Agreement is for a rate of $1,000.00 per month for space #1-A consisting of 714 square feet. National Advanced Mobility Consortium facilitates an alliance with defense contractors and business with the Government. NAMC previously occupied space #1-E consisting of 370 square feet. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: To approve the Lease Agreement between National Advanced Mobility Consortium and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 11/22/22 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Renewal Insurance Premium between the Michigan Municipal Risk Management Authority and the Local Development Fiannce Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a December 15, 2022 thru December 15, 2023 renewal insurance premium. Note the cost is $12,903, however the LDFA is recovering $2194 back in Net Asset Distributions and Loss Fund Distributions, for a net cost of $10,709.00. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Renewal Insurance Premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA).  Community: Sterling Heights LDFA Renewal period: Dec 15, 2022 to Dec 15, 2023 Reasons for Premium Change 2021 2022 % Change Ratable Expenditures: FT employees 0 0 0.0% PT employees 0 0 0.0% Seasonal PT 0 0 0.0% Property Values: $7,745,169 $8,201,320 5.9% EDP $1,000,000 $1,000,000 0.0% SOTB/PIO 151,900 $151,900 0.0% UAV/Drone: N/A N/A Coverages Does not Include: Sewer, Auto Liability/Physical Damange $5M, Pool w/ $1,000 Property deductible Other: 2021-22: -1.1% 2020-21: 0.4% 2019-20: -17.3% 2018-19: 4.1% 2017-18: 2.3% 2016-17: 2.2% 2015-16: 16.9% 2014-15: 7.5% 2013-14: -2.3% Total Contribution Property Totals Last Year $12,470 $7,745,169 This Year $12,903 $8,201,320 Total Change $433 $456,151 % Change (+ -) 3.5% 5.9% Notes: No RAP Grants Net Asset Distribution Loss Fund Distribution Total 2012 MMRMA Distribution: $889 $889 KD 2013 MMRMA Distribution: $518 $518 KD 2014 MMRMA Distribution: $2,384 $2,384 KD 2015 MMRMA Distribution: $3,065 $347 $3,412 KE 2016 MMRMA Distribution: $1,771 $170 $1,941 KE 2017 MMRMA Distribution: $1,610 $222 $1,832 KE 2018 MMRMA Distribution: $2,176 $336 $2,512 MR 2019 MMRMA Distribution: $2,489 $387 $2,876 MR 2020 MMRMA Distribution: $4,063 $298 $4,361 MR 2021 MMRMA Distribution: $3,030 $226 $3,256 MR 2022 MMRMA Distribution: $4,223 $208 $4,431 MR $26,218 $2,194 $28,412  MICHIGAN MUNICIPAL RISK MANAGEMENT AUTHORITY COVERAGE PROPOSAL Member: Sterling Heights LDFA Proposal No: Q000013766 Date of Original Membership: December 15, 2010 Proposal Effective Dates: December 15, 2022 To December 15, 2023 Member Representative: Jeff Bahorski Telephone #: (586) 446-2313 Regional Risk Manager: Ibex Insurance Agency Telephone #: (248) 538-0470 A. Introduction The Michigan Municipal Risk Management Authority (hereinafter "MMRMA") is created by authority granted by the laws of the State of Michigan to provide risk financing and risk management services to eligible Michigan local governments. MMRMA is a separate legal and administrative entity as permitted by Michigan laws. Sterling Heights LDFA (hereinafter "Member") is eligible to be a Member of MMRMA. Sterling Heights LDFA agrees to be a Member of MMRMA and to avail itself of the benefits of membership. Sterling Heights LDFA is aware of and agrees that it will be bound by all of the provisions of the Joint Powers Agreement, Coverage Documents, MMRMA rules, regulations, and administrative procedures. This Coverage Proposal summarizes certain obligations of MMRMA and the Member. Except for specific coverage limits, attached addenda, and the Member's Self Insured Retention (SIR) and deductibles contained in this Coverage Proposal, the provisions of the Joint Powers Agreement, Coverage Documents, reinsurance agreements, MMRMA rules, regulations, and administrative procedures shall prevail in any dispute. The Member agrees that any dispute between the Member and MMRMA will be resolved in the manner stated in the Joint Powers Agreement and MMRMA rules. B. Member Obligation - Deductibles and Self Insured Retentions Sterling Heights LDFA is responsible to pay all costs, including damages, indemnification, and allocated loss adjustment expenses for each occurrence that is within the Member's Self Insured Retention (hereinafter the "SIR"). Sterling Heights LDFA's SIR and deductibles are as follows: 12/15/22 To 12/15/23 Page 1 of 7 Sterling Heights LDFA  Table I Member Deductibles and Self Insured Retentions COVERAGE DEDUCTIBLE SELF INSURED RETENTION Liability N/A State Pool Member N/A Vehicle Physical Damage N/A Fire/EMS Replacement Cost N/A N/A Property and Crime $1,000 Per Occurrence N/A Sewage System Overflow N/A N/A The member must satisfy all deductibles before any payments are made from the Member's SIR or by MMRMA. The Sterling Heights LDFA is afforded all coverages provided by MMRMA, except as listed below: 1. Liability for Owned or Leased Motor Vehicles 2. Motor Vehicle Physical Damage 3. Sewage System Overflow 4. Specialized Emergency Response Expense Recovery Coverage All costs including damages and allocated loss adjustment expenses are on an occurrence basis and must be paid first from the Member's SIR. The Member's SIR and deductibles must be satisfied fully before MMRMA will be responsible for any payments. The most MMRMA will pay is the difference between the Member's SIR and the Limits of Coverage stated in the Coverage Overview. Sterling Heights LDFA agrees to maintain the Required Minimum Balance as defined in the Member Financial Responsibilities section of the MMRMA Governance Manual. The Member agrees to abide by all MMRMA rules, regulations, and administrative procedures pertaining to the Member's SIR. C. MMRMA Obligations - Payments and Limits of Coverage After the Member's SIR and deductibles have been satisfied, MMRMA will be responsible for paying all remaining costs, including damages, indemnification, and allocated loss adjustment expenses to the Limits of Coverage stated in Table II. The Limits of Coverage include the Member's SIR payments. The most MMRMA will pay, under any circumstances, which includes payments from the Member's SIR, per occurrence, is shown in the Limits of Coverage column in Table II. The Limits of Coverage includes allocated loss adjustment expenses. 12/15/22 To 12/15/23 Page 2 of 7 Sterling Heights LDFA  Table II Limits of Coverage Limits of Coverage Per Occurrence Annual Aggregate Liability and Motor Vehicle Physical Damage Member All Members Member All Members 1 Liability 5,000,000 N/A N/A N/A 2 Judicial Tenure N/A N/A N/A N/A 3 Sewage System Overflows 0 N/A 0 N/A 4 Volunteer Medical Payments 25,000 N/A N/A N/A 5 First Aid 2,000 N/A N/A N/A 6 Vehicle Physical Damage 0 N/A N/A N/A 7 Uninsured/Underinsured Motorist Coverage 0 N/A N/A N/A (per person) Uninsured/Underinsured Motorist Coverage 0 N/A N/A N/A (per occurrence) 8 Michigan No-Fault 0 N/A N/A N/A 9 Terrorism 5,000,000 N/A N/A 5,000,000 Limits of Coverage Per Occurrence Annual Aggregate Property and Crime Member All Members Member All Members 1 Buildings and Personal Property 9,201,320 350,000,000 N/A N/A 2 Personal Property in Transit 2,000,000 N/A N/A N/A 3 Unreported Property 5,000,000 N/A N/A N/A 4 Member's Newly Acquired or Constructed Property 10,000,000 N/A N/A N/A 5 Fine Arts 2,000,000 N/A N/A N/A 6 Debris Removal (25% of Insured direct loss plus) 25,000 N/A N/A N/A 7 Money and Securities 1,000,000 N/A N/A N/A 8 Accounts Receivable 2,000,000 N/A N/A N/A 9 Fire Protection Vehicles, Emergency Vehicles, and 10,000,000 5,000,000 N/A N/A Mobile Equipment (Per Unit) 10 Fire and Emergency Vehicle Rental (12 week limit) 2,000 per week N/A N/A N/A 11 Structures Other Than a Building 15,000,000 N/A N/A N/A 12 Dam/Dam Structures/Lake Level Controls 0 N/A N/A N/A 13 Transformers 0 N/A N/A N/A 14 Storm or Sanitary Sewer Back-Up 1,000,000 N/A N/A N/A 15 Marine Property 1,000,000 N/A N/A N/A 16 Other Covered Property 10,000 N/A N/A N/A 17 Income and Extra Expense 5,000,000 N/A N/A N/A 18 Blanket Employee Fidelity 1,000,000 N/A N/A N/A 19 Faithful Performance Per Statute N/A N/A N/A 20 Earthquake 5,000,000 N/A 5,000,000 100,000,000 21 Flood 5,000,000 N/A 5,000,000 100,000,000 22 Terrorism 50,000,000 50,000,000 N/A N/A 12/15/22 To 12/15/23 Page 3 of 7 Sterling Heights LDFA  Table III Network and Information Security Liability, Media Injury Liability, Network Security Loss, Breach Mitigation Expense, PCI Assessments, Social Engineering Loss, Reward Coverage, Telecommunications Fraud Reimbursement. Limits of Coverage Per Deductible Per Occurrence/Claim Occurrence/Claim Retroactive Date $2,000,000 Coverage A Each Claim Nework and Included in limit above Information Security $25,000 Each Claim 7/1/2013 Liability: Each Claim Regulatory Fines: Included in limit above Coverage B Each Claim $25,000 Each Claim 7/1/2013 Media Injury Liability Included in limit above Coverage C Each Unauthorized Access $25,000 Each Unauthorized Network Security Loss Included in limit above Access Occurrence Network Security Each Business Interruption Retention Period of Business Interruption Loss 72 hours of Business Loss: Included in limit above Interruptoin Loss Coverage D Each Unintentional Data Each Unintentional Breach Mitigation Compromise $25,000 Occurrence Data Compromise Expense: Included in limit above Coverage E Each Payment Card Breach $1,000,000 Occ./$1,000,000 Each Payment Card $25,000 Occurrence Agg. Breach PCI Assessments: Included in limit above Coverage F Each Social Engineering Each Social Incident $25,000 Engineering Incident Occurrence Social Engineering $100,000 Occ./$100,000 Agg Loss: Included in limit above Coverage G Maximum of 50% of the Covered Claim or Loss; up Not Applicable Occurrence Reward Coverage to $25,000 Included in Limit above Coverage H $25,000 Included in limit above Not Applicable Occurrence Telecommunications Fraud Reimbursement Annual Aggregate Limit of Liability 12/15/22 To 12/15/23 Page 4 of 7 Sterling Heights LDFA  Annual Aggregate Limit of Liability Member Aggregate All Members Aggregate $2,000,000 $17,500,000 The total liability of MMRMA shall not exceed $2,000,000 per Member Aggregate Limit of Liability for coverages A, B, C, D, E, F, G, and H, in any Coverage Period. The total Liability of MMRMA and MCCRMA shall not exceed $17,500,000 for All Members Combined Aggregate Limit of Liability for coverages A, B, C, D, E, F, G, and H, in any Coverage Period. 12/15/22 To 12/15/23 Page 5 of 7 Sterling Heights LDFA  Table IV Specialized Emergency Response Expense Recovery Coverage Limits of Coverage Specialized Emergency Response Limits of Coverage per Occurrence Annual Aggregate Expense Recovery Member All Members Member All Members N/A N/A N/A N/A Table V Specialized Emergency Response Expense Recovery Coverage Deductibles Specialized Emergency Response Deductible per Occurrence Expense Recovery Member N/A 12/15/22 To 12/15/23 Page 6 of 7 Sterling Heights LDFA D. Contribution for MMRMA Participation Sterling Heights LDFA Period: December 15, To December 15, 2023 2022 Coverages per Member Coverage Overview: $12,903 TOTAL ANNUAL CONTRIBUTIONS: $12,903 E. List of Addenda This document is for the purpose of quotation only and does not bind coverage in the Michigan Municipal Risk Management Authority, unless accepted and signed by both the authorized Member Representative and MMRMA Representative below. Accepted By: Proposal No: Sterling Heights LDFA Q000013766 MMRMA Member Representative MMRMA Representative 11-11-2022 Date Date 12/15/22 To 12/15/23 Page 7 of 7 Sterling Heights LDFA  MICHIGAN MUNICIPAL RISK MANAGEMENT AUTHORITY Member: Sterling Heights LDFA QUOTE NUMBER Q000013766 QUOTE PROPERTY LIST REPORT EFFECTIVE DATES 12/15/2022 To 12/15/2023 Location Address Location Description 1. 6633 18 Mile, Sterling Heights, MI 48311 Incubator/Office Building Description Building Value Contents Value Total Value Office Building $8,172,389 $28,931 $8,201,320 Location Totals $8,172,389 $28,931 $8,201,320 Grand Totals Building Value Contents Value Total Value $8,172,389 $28,931 $8,201,320 Page 1 of 1  BLANKET FAITHFUL PERFORMANCE BOND CERTIFICATE OF PROTECTION KNOW ALL MEN BY THESE PRESENTS: This certificate is issued as a matter of information only and confers no rights upon the certificate holder unless amended below. This certifies that Sterling Heights LDFA as a member of this Authority has Blanket Faithful Performance Bond Protection in the amount of One Million Dollars ($ 1,000,000.00 ). Blanket Faithful Performance Description of Protection Fidelity (1) The Scope of Loss Fund Protection includes loss caused to the member by conversion to personal use or through the failure of any of the employees, acting alone or in collusion with others, to perform faithfully his duties or to account properly for all monies and property received by virtue of his position or employment during the period of membership in the Authority, the amount of indemnity of each of such employees being the amount indicated on the Limits of Liability. Section 2 General Agreement-Loss Under Prior Bond (1) If the protection of this provision is substituted for any prior coverage carried by the member which prior bond is terminated, cancelled or allowed to expire as of the time of such substitution, the member agrees that such agreement applies to loss sustained by, or caused to, the member, as the case may be, prior to or during the bond period, provided that such loss is discovered after the beginning of the period of membership and that such loss would have been recoverable by the member under such prior bond except for the fact that the time within which to bring suit, action or proceeding of any kind thereunder had expired, and provided further: (a) The indemnity afforded by this agreement shall be a part of and not in addition to the limit afforded above; (b) Such loss would have been covered under such insuring agreement had such insuring agreement with its agreements, conditions and limitations as of the time of such substitutions been in force when the acts or defaults causing such loss were committed; (c) Recovery under this agreement on account of such loss shall in no event exceed the amount which would have been recoverable under such insuring agreement in the amount for which it is written as of the time of such substitution, had such insuring agreement been in force when such acts or defaults were committed, or the amount which would have been recoverable under such prior bond had such prior bond continued in force until the discovery of such loss if the latter amount be smaller.  Section 3 Definitions (1) “Employee” means person while in the employ of the member during the period of membership. Section 4 Conditions (1) In case a loss is alleged to have been caused to the member through acts or defaults by an employee and the member shall be unable to designate the specific employee causing such loss, the member shall nevertheless have the benefit of this provision provided that the evidence submitted reasonably establishes that the loss was in fact caused by an employee through such acts or defaults and provided, further, that regardless of the number of such employees concerned or implicated in such loss, the aggregate liability for any such loss shall not exceed the limit of liability. (2) The limit of liability shall not be cumulative from year to year. (3) This provision shall be deemed to be cancelled as to any employee: (a) Immediately upon discovery by the member of any act on the part of such employee which would constitute a liability under this provision covering such employee; or (b) Upon the death, resignation or removal of such employee; or (c) Upon termination of membership in the Authority. Should the member indicated below withdraw from the Authority prior to the expiration date shown, the Authority shall notify the certificate holder in writing thirty (30) days in advance of such withdrawal, but failure to mail such notice shall impose no obligation or liability of any kind upon the Authority. Certificate Holder: Member: Sterling Heights LDFA Sterling Heights LDFA PO Box 8009 PO Box 8009 Sterling Heights, MI 48311-8009 Sterling Heights, MI 48311-8009 Expiration Date of Membership Continuous Until Cancelled Date Issued: December 15, 2022 Authorized Representative  DATA BREACH COVERAGE DOCUMENT REVISIONS - SUMMARY EFFECTIVE 7/1/22 MMRMA’s new data breach reinsurance program was successfully completed effective July 1, 2022. MMRMA formed a new partnership with Berkley Insurance Company, to develop a restructured reinsurance program effective July 1, 2022. This was accomplished due to MMRMA’s existing relationship with Berkley on our casualty reinsurance program and our reputation in the pooling community. Following is a summary of the noteworthy revisions to the document and Member Limits. Revised Member Limits 1. Member Limits The member limit is $2,000,000 per occurrence with a member annual aggregate of $2,000,000. 2. Program (all member) Aggregate Annual aggregate limit of $17,500,000. Data Breach and Privacy Liability Coverage Document The Data Breach and Privacy Liability Coverage Document provides for several comprehensive types of coverage to address the various emerging exposures faced by members. Since the expiring document was written in 2016, updates were also necessary given the rapidly evolving nature of cyber risk. Other revisions include editorial changes and coverage clarifications. Kindly refer to the Data Breach and Privacy Liability Coverage Document for specific coverage wording. Subjects of Coverage - Unchanged The coverage document continues to provide the following Subjects of Coverage. • Coverage A – Network and Information Security Liability – Claims Made and Reported Coverage o 3rd party coverage – losses resulting from: ▪ unauthorized access ▪ potential unauthorized access ▪ social engineering incident ▪ unintentional data compromise Data Breach Coverage Document Update November 1, 2022 Page 2 • Coverage B – Media Injury Liability – Claims Made and Reported Coverage o 3rd party coverage – losses resulting from: ▪ libel, slander, defamation ▪ invasion of privacy ▪ infringement of copyright, trade name, etc. • Coverage C – Network Security Loss – Occurrence Coverage o 1st party (member) – losses resulting from: ▪ unauthorized or potential unauthorized access ▪ business interruption • Coverage D – Breach Mitigation Expense – Occurrence Coverage o 1st party (member) – losses resulting from: ▪ unintentional data compromise ▪ reimburse expenses incurred by member for: • public relations professional • notifications to comply with security breach law • data security expert • credit monitoring services • Coverage E – PCI Assessments – Occurrence Coverage o 1st party (member) – losses resulting from: ▪ payment card breach ▪ reimburse expenses incurred by member for: • fraudulent charges • replace credit/debit cards • fines, fees, penalties, etc. • Coverage F – Social Engineering Loss – Occurrence Coverage o 1st party (member) – losses resulting from: ▪ fraudulent or deceptive communications ▪ reimburse expenses incurred by member for: • money, securities, bonds, etc. • misdirection of funds in escrow or trust • theft of funds • Coverage G – Reward Coverage – Occurrence Coverage o 1st party (member) – losses resulting from: ▪ reimburse expenses incurred by member for: • payment subject to 50% of the covered claim offered for information leading to arrest and conviction • Coverage H – Telecommunications and Fraud Reimbursement – Occurrence Coverage o 1st party (member) – losses resulting from: ▪ unauthorized or fraudulent gaining of access to outgoing telephone service ▪ reimburse expenses incurred by member for: • fraudulent telephone charges Raymond Williams Jr. Underwriting Practice Leader November 1, 2022 Data Breach Coverage Document Update November 1, 2022 Page 3 New Subject of Coverage – Extortion The expiring coverage document provided coverage for ransomware attacks (which is the primary extortion exposure) under Coverage C. Given the importance of this coverage, a separate Subject of Coverage was added: • Coverage I – Extortion o 1st party (member) – losses resulting from a credible threat or demand by ransomware or other method threatening loss or injury, including: ▪ System restoration ▪ Forensic expense ▪ Extra Expenses ▪ Money, security, bonds, etc. ▪ Extortion demand The addition of this Subject of Coverage also prompted the need to include definitions concerning extortion: • Extortion Demand • Extortion Loss Exploited Software Vulnerability The document includes certain additional coverage exclusions regarding your software vulnerability. The first exclusion applies to an incident related to a software vulnerability that is listed as a Common Vulnerability and Exposure with a CVSS Severity rating of 9.0 or greater in the National Vulnerability Database operated by the National Institute of Standards and Technology. These are potential nationwide or worldwide events. The reinsurers believe that covering such widespread events would threaten the solvency of the insurers and reinsurers. These events are considered uninsurable. The second exclusion involves an incident related to a software vulnerability where a patch, fix, or mitigation technique was available to you and you failed to apply such patch, fix or mitigation technique within ninety (90) days of it becoming available. This exclusion can be avoided with sound cyber best practices and risk control. Voluntary Shutdowns A member’s voluntary shutdown of their systems can trigger business interruption coverage. However, the voluntary shutdown must be associated with unauthorized access or credible potential unauthorized access only. Further, you must secure prior approval from MMRMA for such shutdowns. However, under certain circumstances approval can be deferred to no later than the end of the next business day after the shutdown occurs. Raymond Williams Jr. Underwriting Practice Leader November 1, 2022 Job Description – Community Manager The Community Manager is responsible for engaging and connecting incubator and coworking tenants and visitors with resources to grow their businesses. The Community Manager leads initiatives designed to build a strong and vibrant entrepreneurial community at Velocity Center. This includes building and leveraging partnerships across the entrepreneurial ecosystem and specifically connecting early stage tech companies with the many MEDC programs and resources. The Community Manager reports directly to the Velocity Center Managing Director. Position Responsibilities ● Attracting, vetting and on-boarding new incubator and co-working tenants ● Managing the tenant software for tracking, shared space reservations, and resource matching ● Communicating with potential, current and alumni tenants through the website, social media and newsletters ● Creating on-going tenant events to encourage collaboration, experience sharing, and resource introductions ● In collaboration with the Building Operations Manager, ensuring the environment is welcoming to tenants and visitors ● Providing an overview of the Michigan statewide tech ecosystem ● Connecting entrepreneurs with local SmartZone business development activities ● Connecting companies to the various MSF funded entrepreneurial resources available to tech companies across the state ● Supporting the start-up companies’ applications to MSF funded entrepreneurial programs such as the Business Accelerator Fund, First Capital Fund and the Preseed Fund ● Supporting the start-up companies’ applications to federal funding agencies and programs such as the SBIR/STTR program ● Support start-up companies through other SmartZone specific services or expertise ● Other related duties, as assigned or required. Minimum Qualifications ● Bachelor’s degree in business or a related field from an accredited college or university ● A minimum of three (3) to seven (5) years of related professional experience ● Demonstrated community building and community engagement skills ● Excellent verbal and written communication skills that may include public speaking and presentations ● Excellent organizational skills and attention to detail  ● Excellent time management experience with proven ability to meet deadlines; ● Strong analytical and problem solving skills ● Proficient with Microsoft Office Suite or related software The above statements are intended to describe the general nature and level of work being performed by the Community Manager. These statements are not exhaustive and should not be construed as a complete listing of all job duties required of the Community Manager. As an equal opportunity employer, the City of Sterling Heights prohibits and condemns discrimination and harassment of any kind based on race, color, sex, religion, disability, sexual orientation, pregnancy, national origin, genetic information, or any other characteristic protected by law. The City of Sterling Heights is dedicated to providing a safe and inclusive workplace. We are committed to the promotion of diversity, equity, and inclusion in all areas of employment. We value each employee and appreciate the unique qualities every employee possesses. We will continue these efforts as we plan and prepare for a prosperous future.  Velocity Center Recruitment Process October 2022 ● Create or review and update job description ● Identify if position will be contract or staff position ● Identify salary range based on current salaries and market conditions ● Post job description casting as wide a net as possible for 2-4 weeks ○ Velocity Center website ○ Velocity Center social media ○ Share with ecosystem partners to post ○ Share with LDFA Board, City Council and City of Sterling Heights admin team ● Resumes with cover letter are sent to info@Velocity-Center.com ● Resumes are initially reviewed by Senior Advisor for Entrepreneurship and Innovation ● 30 minute phone interviews are scheduled with top 5-8 candidates ● Hiring Committee conducts personal interviews with 3-4 candidates ○ Hiring Committee may vary depending on the role ○ Will include Senior Advisor for Entrepreneurship and Innovation and 2-3 additional Velocity Center team members ● Hiring Committee identifies top 2 candidates ● Senior Advisor for Entrepreneurship and Innovation conducts reference checks (minimum 3 references per candidates) ● Hiring Committee determines top candidate and provides offer letter with proposed start date that is contingent on a successful background check ● If candidate accepts, background check is completed ● Start date is confirmed and contract submitted to LDFA for approval if contract employee ● Start date is confirmed and paperwork submitted to City of Sterling Heights if City employee Metrics as of September, 2022 Space as of September, 2022 Marketing as of September, 2022 Total Occupancy 70.70% Facebook # tenants 15 Followers 289 # of tenants at market rate 6 Following 153 # of tenants below market rate 2 LinkedIn # of pro bono tenants 3 Followers 359 # of coworking members 4 Website Rent collected $ 47,277 Velocity Center Website Visitors 0 # of space inquiries 0 Sterling Heights Bus. Dev. Website Visitors 314 Tenant Satisfaction N/A Media Coverage 4 Events for period Jul - Sep 2022 Impact for period Jul - Sep 2022 Velocity Center Events Companies Served New Current Number of events 2 EIR Clients 5 20 Number of attendees 24 Accelerator Clients 4 10 Community/Partner Events Incubator Clients 0 12 Number of events 6 Total Clients Served 28 Number of attendees 151 Number of new companies started 7 Tenant Events # referrals outsourced to ecosystem 8 Number of events 0 Hours of EIR coaching 20 Number of attendees 0 Attendee Satisfaction N/A END OF YEAR REVIEW November 22 2023  01 KEY ACCOMPLISHMENTS . MIVELOCITY.COM  KEY ACCOMPLISHMENTS + Strategic Plan complete and Advisory Council/Group established + Brand refresh and new website launched + Updated marketing collateral and branded materials + EIR program launched with X# of participants + Accelerator program launched with X# engaged + Partnerships re-established with MEDC, SBDC, MEDC, MI Works, Sterling MIVELOCITY.COM Heights Chamber, Macomb Economic Development, Macomb Community College, TechWeek, SCORE, MI Defense Center  KEY ACCOMPLISHMENTS CONTINUED + Sub-hub for MEDC ecosystem entrepreneurial resource database + Invited to participate in entrepreneurial/economic development round-tables and initiatives + Coworking, Incubator and International Landing Zone programs defined and relaunched + Grand opening November 15 + Quarterly Scorecard launched MIVELOCITY.COM + Technology assessment complete + SOPs and job descriptions in process  02 GOALS . YEARS 1-3 MIVELOCITY.COM  GOALS FOR YEAR ONE OF STRATEGIC PLAN 1 Shore up the ecosystem – define BSO partners, our lanes, shared goals and outcomes. Develop an asset map and community platform 2 that identifies and communicates entrepreneurial resources. 3 Exploratory programming to gather data and better understand market needs and gaps. MIVELOCITY.COM 4 Launch or expand 10+ companies.  GOALS FOR YEAR TWO OF STRATEGIC PLAN 1 Find and engage entrepreneurs through robust programming and support services. Deliver programming, services and support that 2 fills the building with tenants and visitors creating a vibrant and active entrepreneurial hub. 3 Launch or expand 20+ companies MIVELOCITY.COM  GOALS FOR YEAR THREE OF STRATEGIC PLAN 1 Building the investment ecosystem through crowd-sourced platforms, angel networks, venture capital, and grants. Recognized hub for robust programming, 2 education, and support services for tenants, clients and the community. 3 Launch or expand 30+ companies MIVELOCITY.COM  03 KEY INITIATIVES . MIVELOCITY.COM  KEY INITIATIVES . PROGRAMMING . STAFFING • Share vision of calendar • Add Community Manager contract • Macomb Industry 4.0 to do position Q1 2023 bi-monthly speaker series • Additional EIR resource • Monthly lunch and learn or fireside • Entrepreneur Intern: High School and chat with regroup or other partners Macomb Community College • Working with Start Garden (Grand students Rapids) to expand their pitch MIVELOCITY.COM competition to Macomb County (5X5) to launch fall 2023 and would initially be a quarterly event • Partnering with Sterling Heights Chamber on women’s networking breakfast beginning Nov 1, 2022  KEY INITIATIVES . FUNDING . TENANTS • Secure funding for pitch contest • Increasing the number of coworking and incubator tenants . BRAND AWARENESS MIVELOCITY.COM • Increased brand awareness through partnerships, community engagement, conferences, and thought leadership  CHALLENGES 1 2 3 Clarifying LDFA and City Ongoing support from of Sterling Heights Gaining visibility for City Council and roles, responsibilities, Velocity Center leadership team and support  QUESTIONS & ANSWERS ? What did you see as the successes and challenges for Velocity currently? ? How will you describe success for Velocity this coming year? MIVELOCITY.COM ? What are your expectations for April leading this team next year?  METRICS: SPACE 15 TOTAL TENANTS 70.70% TOTAL OCCUPANCY TENANTS AT MARKET RATE TENANTS BELOW MARKET RATE $ 47,277 TOTAL RENT COLLECTED MIVELOCITY.COM PRO BONO TENANTS ? 0 COWORKING MEMBERS SPACE INQUIRIES  METRICS: MARKETING 289 153 359 FOLLOWERS FOLLOWING FOLLOWERS 0 314 4 MIVELOCITY.COM VELOCITY WEBSITE STERLING HEIGHTS MEDIA VISITORS BUSINESS DEVELOPMENT COVERAGE WEBSITE VISITORS  METRICS: EVENTS COMMUNITY 2 VELOCITY EVENTS 6 + PARTNER EVENTS 0 TENANT EVENTS 24 ATTENDEES 151 ATTENDEES 0 ATTENDEES MIVELOCITY.COM  METRICS: IMPACT JULY-SEPTEMBER 2022 COMPANIES SERVED NEW CURRENT ENTREPRENEUR IN 5 20 RESIDENCE CLIENTS ACCELERATOR CLIENTS 4 10 MIVELOCITY.COM INCUBATOR CLIENTS 0 12  METRICS: IMPACT JULY-SEPTEMBER 2022 28 7 8 20 TOTAL CLIENTS NEW COMPANIES REFERRALS HOURS OF EIR SERVED STARTED OUTSOURCED TO COACHING ECOSYSTEM MIVELOCITY.COM