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 July 25, 2023 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA CONSENT AGENDA A. June 20, 2023 Regular Meeting Minutes B. To approve a budget of $12,000, renewing the contract for Tedesco Cleaning Services (42752 Mound Road, Sterling Heights, MI 48314) – Cleaning Services for the 2023/24 fiscal year. C. To approve a budget of $25,000 to support the three-year contract, 1/24/22 – 1/24/25, with Windstream Enterprise (PO Box 9001013, Louisville, KY 40290- 1013) - Internet Services for 2023/24 fiscal year. D. To approve a budget of $39,500 for Nordicom Technologies (43155 Main Street, Suite 2208, Novi, MI 48375 – $36,000 for Managed Network Infrastructure and $3500 for licenses for 2023/24 fiscal year. E. To approve a budget of $9000 for Network Connections (42211 Garfield Road, Suite 332, Clinton Township, MI 48038) for hosted VoIP services for 2023/24 fiscal year. F. To accept the proposal by Mando Construction (75 Lafayette Street, Suite 100, Mt. Clemens, MI 48043) in the amount of $34,000.00 – remove/replace ceiling tiles inside suites on North wing. NEW BUSINESS 1. To Approve the Lease Agreement between Chenoweth Logistics and the Local Development Finance Authority (LDFA).  2. To Consider Multi-year Consulting Agreement between the City of Sterling Heights Local Development Finance Authority and Hoyden Creative Group, LLC (4257 North Rollin Hwy, Addison, MI 49220), a marketing and branding firm that will provide consulting services to Velocity. 3. Services Update – April Boyle OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING JUNE 20, 2023 – 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 7:59 a.m. Pledge of Allegiance Members present at roll call: Josephine Attisha, Dr. Michael Balsamo, Geoffrey Clark, Phil Hunsberger, Laurel Johnson, Vickie Malinowski, Steve Pomaville, Vicky Rowinski, Howard Sizemore Members absent: Susan Andrzejewski, Ellanore Evans, Dominic Patrus, Amy Rencher, Jeanne Schabath-Lewis Also in attendance: Kathryn Quell, Management Services Specialist – City of Sterling Heights; Jason Castor, City Development Director – City of Sterling Heights; Luke Bonner, Senior Economic Development Advisor - CEO Bonner Advisory Group; April Boyle, Senior Advisor for Entrepreneurship and Innovation Motion to Approve the Agenda Moved by Johnson, supported by Balsamo, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the CONSENT AGENDA as presented Moved by Pomaville, supported by Rowinski, to approve the Consent Agenda as presented. A. To approve the minutes of the Special Meeting of May 18, 2023. B. To approve the proposal by Clinton Valley Products, LLC (19015 E. 14 Mile Road, Clinton Township, MI 48035) for glass work in the amount of $15,300.00 C. To approve a budget amendment to allocate $25,000 for City of Sterling Heights Facilities Maintenance support of the Velocity Building. Ayes: All Nays: None Motion carried. New Business Update – Luke Bonner, Senior Economic Development Advisor – CEO Bonner Advisory Group Mr. Bonner updated the Board regarding sponsorship of the Robotics Hackathon in the amount of $2500. He also provided an update for the branding of the Sterling Innovation District and shared the ad included in Site Selection Magazine, creating more awareness of the branding. Update – April Boyle, Senior Advisor for Entrepreneurship and Innovation Ms. Boyle provided information in regards to recent events and activity since the last LDFA meeting in May. Ms. Boyle had a discusion regarding agenda items and policy. Old Business Public Comment None Adjournment Moved by Johnson, supported by Sizemore to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:48am  Business of the Local Development Finance Meeting: 7/25/23 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Consider Multi-year Consulting Agreement between the City of Sterling Heights Local Development Finance Authority and Hoyden, a marketing and branding firm that will provide consulting services to Velocity. Submitted By: Office of Economic Development Contact Person/Telephone: April Boyle, Senior Advisor for Entrepreneurship and Innovation Administration (initial as applicable) Attachments City Clerk Resolution Minutes Finance & Budget Director Ordinance Plan/Map City Attorney (as to legal form) Contract x Other City Manager  Check box if this agenda item requires billing/revenue collection (fees, etc.) by Treasury Office Executive Summary: Velocity has partnered with marketing firms in the past that share the overall mission, goals, and success of the Sterling Heights SmartZone. Currently Hoyden provides 30 hours of service monthly relating to PR and Marketing for a monthly total of $3600 and an annual cost of $43,000. The current contract continues to push against allocated number of hours. It is for this reason we are requesting an increase of 10 hours a month to the contract. In addition, Hoyden Creative has provided a proposal that includes options to extend the contract at the cost noted if mutually agreed upon by the City and Hoyden Creative. Velocity Center will continue to need support with ongoing PR, marketing, social media and communications for a Monthly Retainer equaling $57,600 annually with option to renew. The Proposed 10 additional hours will help us with a stronger push on inbound and outbound campaigns and will include the following: -Video work -New social ad placements (TikTok, possibly Instagram) -Increased content creation/PR for SEO optimization -Optimization and monitoring of Google Ads (now that everything is set up And continue: • Miscellaneous print and web graphic design services. • Content and copywriting for print and web. • Social media strategy, content development, management, and reporting. • Website updates and management. • Monthly email newsletter design and development. • Monthly strategic planning meetings. • Brand strategy and account management: strategic consulting, managing projects, meetings, research, etc. • If requested, digital advertising: Create, manage, and report on digital and retargeting ads. This contract will be paid from Marketing 867.070.716 826.002. The new 23/24 Hoyden contract is for $57,600 an increase of $14,600 from FY22/23 $3,600 monthly- $43,200 annually. Hourly rate lock: $120 and been approved by City leadership and Finance Department. Suggested Action: To approve the contract amount of $57,600 with Hoyden, authorize the Chair to execute up to 2-year extension under the same terms and approve the budget adjustment of $14,600 MOVED BY: SECONDED BY:  Prepared for: City of Sterling Heights Annual Retainer (Multi-Year) Quote #414 | Date: Tue, Jun 06, 2023 Monthly Outsourced Marketing Program Annual retainer agreement that includes strategic branding and marketing consultation, meetings, account management, and project management as well as a combination of creative services that may include: Graphic design Social media Content development Website updates Email newsletters Public relations Digital advertising Event support Photography/video Writing Total $4,800.00 Details Allotted hours for services are a minimum of 40 hours monthly and a minimum of 480 annually. Invoices will be sent on the 25th of each month for the retainer work that will be completed in the upcoming month. A maximum of 5 unused hours may be rolled over each month per quarter. Any unused hours expire at the end of the annual contract. Contract will be terminated after 2 months of non-payment. If a project/task request is estimated to exceed the number of allotted hours in a month or falls outside the scope of the identified strategy, we will work together to determine what tasks can be put on hold the following month to make up the overage.  Hours will be reviewed annually and may increase with approval by both parties. Terms & Conditions This Agreement is entered into on Wed, Jul 12, 2023 between City of Sterling Heights ("the Client") and Hoyden Creative Group, LLC ("the Contractor"). WHEREAS, the Client and Contractor agree that Contractor shall provide services and materials pursuant to the terms of this Agreement, related to the annual retainer agreement for brand strategy and marketing services. NOW THEREFORE, the parties do hereby agree: 1. Duties. The Contractor agrees to perform all necessary and related actions in connection with the above-referenced provision of materials and services. 2. Term. This engagement shall commence upon execution of this Agreement and shall continue in full force and effect for twelve months with the option to renew annually for two additional years. Upon annual renewal of the contract, an additional $5/hr will be added to the monthly hourly rate. 3. Fees. As compensation for the provision of materials and services rendered pursuant to this Agreement, the Client shall pay the Contractor 4,800.00 monthly for services and expenses incurred by Contractor. Fees and expenses will first be deducted from the Retainer fee, if applicable, and the monthly amount plus any additional fees or expenses shall be billed as follows: The Contractor shall submit invoices on the 25th of each month for the work to be completed in the upcoming month, which will be due upon receipt. The Client shall pay a late fee of 1% per annum for each payment not made within 30 days of receipt. If payment is not received within 14 days of the invoice, Contractor will cease work until the invoice is paid in full. Client agrees that it will supply Contractor with all necessary purchase order numbers and other internal information required for invoice processing before the project begins. Work requested outside of the contracted hours will be billed at $175 per hour. 4. Media Buying. On all media purchased by Hoyden Creative, we shall bill the client commission as follows: 20 percent (the “Commission Rate”) of the total ad spend amount. Digital advertising is not included in the monthly retainer fee and will be billed separately in arrears if requested. 5. Expenses. Client shall be responsible for out-of-pocket expenses which are incurred in connection with the performance of the duties hereunder and that are not listed in the proposal. 6. Confidentiality. The Contractor acknowledges that during the engagement it may have access to and become acquainted with various information owned or used by the Client in connection with its operation including, without limitation, the Client's business and processes, intellectual property, methods, client information, accounts, and procedures. The Contractor agrees that it or its employees will not disclose any of the aforesaid, directly or indirectly, or use any of them in any manner, either during the term of this Agreement or at any time thereafter, except as required in the course of this engagement with the Client. 7. Copyright and trademark. Client warrants that everything it gives Contractor to include in the project is legally owned or licensed to Client. 8. Indemnification. Client agrees to indemnify and hold Contractor harmless from any and all claims brought by any third-party relating to services and material provided by Client to Contractor including all demands, liabilities, losses, costs, and attorney's fees. 9. Limitation of liability for errors. In no event shall Contractor be liable to the Client or any third party for any damages, including any lost profits, lost savings, or other incidental, consequential, or special damages arising out of social media operation, errors, or omissions by Contractor. 10. Termination. Either party may terminate this Agreement at any time by 90 days' written notice to the other party. 11. Independent Contractor. This Agreement shall not render the Contractor an employee, partner, agent of, or joint venture with the Client for any purpose. The Contractor is and will remain an independent contractor in his relationship to the Client. The Client shall not be responsible for withholding taxes with respect to the Contractor's compensation hereunder. The Contractor shall have no claim against the Client hereunder or otherwise for vacation pay, sick leave, retirement benefits, social security, worker's compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind.  12. Successors and Assigns. All of the provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, if any, successors, and assigns. 13. Choice of Law. This agreement and all transactions contemplated hereby, shall be governed by, construed, and enforced in accordance with the laws of the State of Michigan. The parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in Lenawee County, State of Michigan. In the event that litigation results from or arises out of this Agreement or the performance thereof, the Client agrees to reimburse the Contractor for reasonable attorney's fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the Contractor may be entitled. 14. Waiver. Waiver by one party hereto of breach of any provision of this Agreement by the other shall not operate or be construed as a continuing waiver. 15. Assignment. The Contractor shall not assign any of its rights under this Agreement, or delegate the performance of any of his duties hereunder, without the prior written consent of the Client. 16. Modification or Amendment. No amendment, change, or modification of this Agreement shall be valid unless in writing signed by the parties hereto. 17. Entire Understanding. This document and any exhibit attached constitute the entire understanding and agreement of the parties, and any and all prior agreements, understandings, and representations are hereby terminated and canceled in their entirety and are of no further force and effect. 18. Unenforceability of Provisions. If any provision of this Agreement, or any portion thereof, is held to be invalid and unenforceable, then the remainder of this Agreement shall nevertheless remain in full force and effect. NOW THEREFORE, the undersigned have executed this Agreement as of Wed, Jul 12, 2023 PROVIDER CLIENT Hoyden Creative Group LLC City of Sterling Heights Paige Fuoco Accounts Payable Signature:__________________________________ Signature: YEAR IN REVIEW Year in Review Marketing Materials Social Media Web Design Web Traffic Ads Emails Public Relations Business Spotlights WEIVER NI RAEY Marketing Materials 45 New Materials Created 4 Presentations YTICOLEV  Social Media WEIVER NI RAEY YTICOLEV AFTER BEFORE Web Design WEIVER NI RAEY YTICOLEV  Website WEIVER NI RAEY 10/1/22-5/31/23 compared to previous period *note that new G4 Analytics will not pull data from any earlier date YTICOLEV WEIVER NI RAEY Ads 38 12+ Social Media Ad Campaigns Other External Ad Placements YTICOLEV WEIVER NI RAEY Emails 16Campaigns 2,649 Emails delivered 38%Open rate 5% YTICOLEV Click rate WEIVER NI RAEY Public Relations 13 Articles Earned 4 Press Campaigns YTICOLEV  Business Spotlights WEIVER NI RAEY YTICOLEV