01-8 Resolution No. 01-8
RESOLUTION
AUTHORIZING EXECUTION OF AN E-ELGIN INCENTIVE PROGRAM AGREEMENT
WITH JAMES M. BOBORCI OF RULE 29 INC .
(25 S . Grove Avenue)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to execute an
e-elgin Incentive Program Agreement on behalf of the City of Elgin
with James M. Boborci of Rule 29 Inc . for the property located at
25 S . Grove Avenue, a copy of which is attached hereto and made a
part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: January 10, 2001
Adopted: January 10, 2001
Omnibus Vote : Yeas 4 Nays 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
CITY OF ELGIN
e-elgin Incentive Program
THIS AGREEMENT is made and entered into this 3t day of
October, 2000, by and between the City of Elgin, Illinois, a
municipal corporation (hereinafter referred to as "City" ) , and
James M. Boborci, (hereinafter referred to as "Owner" ) .
WHEREAS, City has established an e-elgin Incentive Program
(hereinafter referred to as " Program" ) for application within a
certain area of the corporate limits of the City designated by City
as appropriate for such application (hereinafter referred to as
`Target Area" ) : and
WHEREAS, Program is administered and funded by the City for
purposes of promoting opportunities to further both economic growth
and community development by taking advantage of the shift in the
national economy toward e-commerce, the Internet and advances in
telecommunication areas; and
WHEREAS, pursuant to the Program, City has developed a program
to offer assistance to property and business owners for expenses
related to technology infrastructure improvements, moving expenses,
advertising costs and infrastructure capital costs, a maximum of
$5, 000 for installation fees, and $2 , 500 for advertising expenses,
pursuant to the criteria of the Program and as set forth herein;
and
WHEREAS, Owner owns at least, 50% of the building, or is the
tenant of a business related building (s) located within the project
area, and owner desires to participate in Program pursuant to the
terms and provisions of this Agreement .
NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows :
Section 1 . City shall pay to Owner/Tenant the sum of $825 . 00
for improvements approved pursuant to the provisions of this
Agreement (hereinafter referred to as " eligible Costs" )
for the Structure referred to at Section 16 herein (hereinafter
referred to as " Structure" ) .
All parties hereto agree that all payments from the City provided
for herein shall be made to James M. Boborci, who shall provide the
City with a full release upon receipt .
Section 2 . Eligible costs shall include labor, material and
equipment costs, and such other costs as may be reasonably
necessary for the execution and completion of the Improvements
hereby provided for (hereinafter referred to as the "Work" ) , as
designated from the proposal approved by the City pursuant to the
provisions of Section 3 herein, as identified in Exhibit A,
attached hereto and made part hereof this Agreement .
Section 3 . No Work shall be undertaken or shall be considered
to constitute the basis for an Eligible Cost until the Proposal for
such Work has been submitted to and approved in writing by the
Project Review Team, consisting of the City' s Director of Economic
Development and Business Services and the Technology Action Team.
Such proposals shall include, but not be limited to, a date certain
by which the Work shall be completed. All work relating to the
exterior Improvements to the Structure shall be completed within
180 days from the date of the Agreement, unless Owner obtains the
written consent of the Project Review Team.
Section 4 . The Project Review Team shall be permitted access
to Structure to periodically review the progress of the Work. Such
review shall not be in lieu of any other inspections which may
otherwise by required by law or by City. Any and all portions of
the work which do not, in the sole discretion of the Project Review
Team, conform to the Plans or other applicable terms of this
Agreement, shall be made to conform to the Plans and other
applicable Terms of this Agreement upon written notice of the
existence of such non-conforming portions .
Section 5 . Upon completion of the Work, and upon final
inspection and written approval by the Project Review Team and such
other final inspections and approvals as may be required by law,
Owner shall submit to City: ( 1) an executed, notarized itemized
contractor statement reflecting the total cost of the Work and each
portion thereof, including, but not limited to, the cost of labor
(whether provided by any contractor or subcontractor) , materials
and equipment; (2) copies of all bids, contracts and invoices
submitted, executed or incurred pursuant to the Work; and (3)
reasonable proof of payment of all costs incurred pursuant to the
Work.
Section 6 . City shall pay Owner in accordance with Section 1
herein within thirty (30) days of owner' s compliance with the
provisions of Section 5 herein.
2
In no event shall the amount paid Owner exceed the amount specified
in this Agreement nor shall the Citi pay the Owner an amount
greater than the cost specified in an invoice submitted by a
contractor for any approved work set forth in Exhibit A.
Section 7 . In the event Owner fails to complete the Work in
accordance with the terms of this Agreement, or otherwise breaches
the terms of this Agreement, City may terminate this Agreement upon
written notice of breach and termination to Owner, and any and all
financial or other obligations on the part of City shall cease and
become null and void.
Section 8 . Upon completion of the Work, and for a period of
five ( 5) years thereafter, Owner shall properly maintain the Work
in its finished form, without alteration or .change thereto, and
shall not enter into any agreement , of take any other steps to
alter, change or remove such Work without prior written approval
from this Project Review Team in its sole discretion .
Section 9 . Nothing herein is intended to limit, restrict or
prohibit the Owner from undertaking any other work in or about the
subject premises which is unrelated to the improvement provided for
in this Agreement .
Section 10 . This Agreement shall be binding upon City and its
successors, and upon Owner, Owner' s successors and assigns for a
period of five (5) years from and after the date of completion and
approval of the work. Owner shall provide subsequent Owner (s) of
Structure with a copy of this Agreement . This Agreement shall run
with the land underlying Structure .
Section 11 . If Owner does not own the underlying property for
which work is being done, Owner warrants and represents to City
that Owner has a lease at the location for which the work is
proposed for a term of at least, three (3) years . Owner further
warrants and represents that he has received authorization from all
owners of the property for which work is to be done to accept funds
under this program and to undertake the work. Further, such
owner (s) of the property for which work is to be done hereby
acknowledges that he is aware of this Agreement and authorized the
work which is to be made to the Structure . Said owner (s) of the
property for which improvements are to be made further acknowledge
that, as owner of the property, he is a party to this Agreement and
is bound by the provisions of this Agreement specifically, but not
limited to, the provisions of Section 6 of this Agreement . Each
"Owner" signature hereto hereby warrants and represents that there
are no other entities having an ownership interest in the
Structure, which have not executed this Agreement .
3
Section 12 . Each Owner and Tenant hereby holds harmless and
indemnifies City from and against any and all causes of action,
suits, claims for damages, and any and all other liability, which
may arise out of in connection with Owner' s or Owner' s agents,
employees and assigns' negligent performance of any of the terms of
this Agreement .
Section 13 . This Agreement shall not be construed to create
a partnership, joint venture or employment relationship between the
parties hereto.
Section 14 . This Agreement shall be subject to and governed
by the laws of the State of Illinois . The parties hereto hereby
agree that venue for any and all actions which may be brought by
each and either of them to enforce the provisions of this Agreement
shall be in the Circuit Court of Kane County, Illinois .
Section 15 . The terms of this Agreement shall be severable .
In the event that any of the terms or provisions of this Agreement
are deemed to be void or otherwise unenforceable for any reason,
the remainder of this Agreement shall remain in full force and
effect .
Section 16 . Owner' s Name : James M. Boborci
Address : 512 Colonial Court
City: Algonquin State : IL Zip Code : 60102
. Telephone Number : (847) 458-2965
. Property Location of Structure : 25 S . Grove
Elgin, Illinois .
Ownership Interest : Owner
Contact Person: James M. Boborci
Owner' s Name :
Address :
City: State : Zip Code :
Telephone Number:
Property Location:
Ownership Interest : Owner :
Owner' s Name :
Address :
City: State : Zip Code :
Telephone Number:
Property Location:
Ownership Interest : Tenant :
Owner' s Name :
Address :
City: State : Zip Code :
Telephone Number:
Property Location:
Ownership Interest :
4
Section 17 . The City of Elgin Neighborhood Business
Improvement Grant Program Guidelines dated February 4 , 1999, as
such guidelines may be amended from time to o time by the City, are
hereby incorporated into this Agreement .
IN WITNESS WHEREOF, the parties .hereto have executed this
Agreement on the date first appearing above .
OWNER CITY 7.GIN
By : �,_/(21c.„-- / b
am M. Boborci J.ceA. Parker, City Manager
OWN '/ ATTEST :
Dolonna Mecum, City Clerk
OWNER
OWNER
OWNER
•
www.dslnetworks.com 577 Second Street
44111111114 San Francisco, CA 94107
(415) 356-3715
DSLne-vvor<sM (415) 356-3820 -f ax
September 28, 2000
James Boborci, Rule 29 Inc.
25 South Grove Ave
Suite 500
Elgin, Illinois 60123
Subject: Digital Subscriber Line
James,
Thank you for allowing us to offer you Internet Service.
Please review the following services and pricing for each service.
Once you have determined which speed will fit your company's needs we will then
proceed with the installation that will take approximately 45 days in the Illinois / Chicago
land area. We will use Rhythms Networks as they have proven to be a reliable company
for your area.
Speed Description Monthly Price _ Installation Price
RHY 384/384 $ 279.00 $ 825.00
—� RHY 512/512 $ 329.00 $ 825.00
RHY 768/768 $ 379.00 $ 825.00
RHY 1100/1100 $ 409.00 , $ 825.00
Monthly pricing is subject to local Telephone Co taxes, fees and charges. Please review
our contract carefully prior to signing.
Orders can not be placed until Service Agreement and Contracts have been initialed,
signed and faxed to our office.
Thank you.
Jeff Snipes,
DSL Networks
(415) 356-3800
( of f�
City of Elgin
Agenda Item No.
�rn44 �l
E
L ' ,t
G
October 12, 2000 1
A
N r ;
NEIGHBORHOOD VITALITY
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: e-elgin Incentive Grant/Rule 29 Creative
25 South Grove Avenue
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the City Council an application from Rule 29 Creative to
participate in the e-elgin Incentive Program.
BACKGROUND
In April of 2000, the Mayor and City Council approved the e-elgin
Incentive Program. Assistance was provided for within the
following areas:
1 . Capital Costs
2 . Line Service Fees
3 . Advertising
Downtown commercial property owners and downtown business owners
can qualify for up to 50% of capital costs not to exceed a total
expenditure of $60, 000 ($30, 000 maximum City contribution) in
funding for technology infrastructure improvements that include
installation of new Category 5 or better wiring, upgrade to
Category 5 or better wiring, backup power generators for technology
equipment, or high-speed Internet access capabilities, including
necessary hardware or other technology infrastructure improvements
approved by the Technology Action Team and City Council. Eligible
expenses do not include computer equipment, but could include
routers for Digital Subscriber Service (DSL) service.
High-tech businesses relocating to downtown Elgin and downtown-
based technology companies that are growing and planning to remain
in downtown Elgin are eligible for a 100% rebate of the service and
installation fees associated with relocation costs for DSL and T-1
service, with a not-to-exceed limit of $5, 000 .
,, ,
em e-elgin Incentive Grant, Marketplace Media
October 11, 2000
Page 2
Downtown commercial property owners and downtown businesses are
eligible for up to $2, 500 annually in co-op advertising funds when
they promote e-elgin in their ads. This grant will pay for 25% of
advertising placement costs, up to $2, 500 annually. To qualify,
ads must bear the e-elgin logo and tag line as provided by the
Technology Action Team and ads must appear in newspapers and
magazines of general distribution. Participation in the
advertising assistance shall be reviewed on an annual basis by the
program administrator.
The proposal from Rule 29 Creative contains the following costs :
Capital Costs and Service Fees - $825 . 00. A total of $825 . 00 is
eligible for funding under the e-elgin program. The award of a
grant to Rule 29 Creative would be the second under the e-elgin
Incentive Program.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Technology Action Team.
rw INANCIAL IMPACT
The total incentive would equal $825. 00. Expenses related to the
e-elgin Incentive Program would be funded through account number
276-0000-791. 80-27 . A budget adjustment will be necessary.
LEGAL IMPACT
An agreement will be required.
ALTERNATIVES
1 . Fund the proposed e-elgin Incentive application.
2 . Do not fund the proposed e-elgin Incentive application.
RECOMMENDATION
Staff recommends the approval of application by Rule 29 Creative
for participation in the e-elgin Incentive Program in the amount of
$825 . 00 .
•ectfully submitted,
ew
i. - J . C2A-IL,.____
Joyce A. Parker
City Manager .
RHM: sp
October 11, 2000
MEMORANDUM
To: Ray Moller
From: Deputy Chief James Burn
Subject: e-elgin Incentive Program Application
The Technology Action Team,Infrastructure sub-committee,has examined the application for
funding under the e-elgin Incentive Program filed by Rule 29 Creative. The application is in
keeping with the intentions of the grant and we recommend that you proceed to the City Council
for$825 in incentive money to cover the costs of installing a DSL high-speed circuit in their
business. The company president,Jim Boborci, has indicated that this incentive will assist him
in his decision to re-locate in downtown Elgin.
In keeping with the provisions of the grant, the lowest estimate of$825, provided by DSL
Networks is recommended. Based upon this recommendation,Mr. Boborci has indicated that he
will sign a lease for space at 25 S. Grove,Elgin.
e-elgin Incentive
Application Form
1 . Applicant JAMES M. 3osoa.ct
(Name)
Home Address 511 CGIONiAL CT.
(Home Address)
AIGONQUIN TL 601 O l. P 1- /ci-MCS-
(City) (State) (Zip) (Phone)
2 . Building or establishment for which the rebate is sought :
,ZS S. Gamic. Ave •
(Street Address)
Applicant is: . Owner Tenant
If tenant, what is term of lease? S YX.
3 . Proposed use of program:
New Category 5 or better wiring
Upgrade to Category 5 wiring or better
Backup Generator
Highspeed Internet access hardware
Moving Expenses
Advertising
Other Technology Infrastructure (please specify)_
rft 4 . Cost Elements
A. Capital Costs $ 000
r
B. Service Fees $ 3S-0 - `'1 O O mo.
5 . Statement of Understanding.
B. The applicant (undersigned) agrees to comply with the
guidelines and procedures of the e-elgin Incentives
Program and the conceptual design and outline
specifications as agreed to by the applicant and the
application review team.
C. The applicant understands that the applicant must
submit detailed cost documentation, copies of any
permits, bids, contracts and invoices and contractor' s
final waivers of lien upon completion of the approved
improvements.
Applicant Signature • �
If the applicant is her than the owner, the following line must
be completed:
I certify that I, the owner of the property at
do authorize the applicant to apply for a rebate
under the e-elgin Incentive Program and undertake the approved
improvements.
Date
(Owners Signature)
FOR OFFICE USE ONLY
Date Application Received:
Application Fee Paid: Yes No
If yes, Check Cash
Application I .D. Number:
Rebate Approved: Date
Total Estimated Project Cost
Percent Applied for Rebate
Total Amount of Rebate
Rebate Denied: Date
!�► Reason
(Program Coordinator)
•
• •
1110 North Main (Rte. 31)
Algonquin, IL 60102
;2) Internet Services Phone: 847/854-4799x231
Connecting with Care Fax: 847/854-0970
http://www.dls.net
Anthony @dls.net
October 2,2000
Rule 29
25 South Grove Ave#500
Elgin,IL 60123
This high speed HDSL Internet connectivity proposal is designed to meet core requirement—
sufficient, reliable bandwidth priced at flat rate.
Basic definition for demand:
• Network configuration with HDSL facility vs. ISDN connection eliminates per-minute charges
(message units)from local Telephone Company,while providing faster and scalable services.
• HDSL facility vs. Digital Subscriber Line allows for scalable, reliable connection.
Reasons to select DLS Internet Services as your provider.
• DLS Internet is competent in providing high reliability and redundant failsafe access, utilizing
our 100 Mbps connection to GTE Internet Working and redundant DS3 connection to Savvis
Communications.
• DLS Internet has an online emergency generator in the event of power failure.
• DLS Internet will guarantee bandwidth to the client.
• Client will not be committed to a lengthy Telephone company contract.
Proposed Connectivity:
DLS Internet Services will install a dedicated scalable HDSL Internet Connection. Please see the
following table for pricing of each available speed. Client may move up at any time into faster
'speeds. DLS Internet will provide a configured router that will be set up for HDSL facility;
router will remain the property of DLS Internet Services.
1110 North Main (Rte. 31)
, Internet Services Algonquin, IL 60102
Phone: 847/854-4799 x231
Connecting with Care Fax: 847/854-0970
r.. http://www.dis.net
Anthony @dls.net
Non-recurring installation fee(s)
Description Cost
DLS Internet Services installation fee of HDSL Facility. Note: Internal wiring will be $1,000.00
the responsbility of the client if it is required. Install price is the same for all
speeds.
Available speeds and monthly fee
All speeds include 1 Static IP.
Description Cost
HDSL 1.5 Mbps includes Telephone charges(Telco tax additional) $450.00
768 Kbps indudes Telephone charges(Telco tax additional) $395.00
rk —7 512 Kbps includes Telephone charges(Telco tax additional) $360.00
384 Kbps includes Telephone charges(Telco tax additional $335.00
Optional Services:
Description Monthly cost Setup
Router Firewall enabled(NAT/Configuration) N/A Waived
Two Year contract required.
Not to be used for resale.
Second Street
www.dslnetworks.com 577 577 Francisco, CA 94107
(Pak .6117111t (415) 356-3715
DSLnelwo kT- • (415) 356-3820 fax
September 28,2000
James Boborci,Rule 29 Inc.
25 South Grove Ave
Suite 500
Elgin, Illinois 60123
Subject: Digital Subscriber Line
James,
Thank you for allowing us to offer you Internet Service.
Please review the following services and pricing for each service.
Once you have determined which speed will fit your company's needs we will then
proceed with the installation that will take approximately 45 days in the Illinois/Chicago
land area. We will use Rhythms Networks as they have proven to be a reliable company
for your area.
Speed Description Monthly Price Installation Price
RHY 384/384 $ 279.00 $ 825.00
r RHY 512/512 $329.00 $ 825.00
RHY 768/768 $379.00 $ 825.00
RHY 1100/1100 $409.00 $ 825.00
Monthly pricing is subject to local Telephone Co taxes,fees and charges. Please review
our contract carefully prior to signing.
Orders can not be placed until Service Agreement and Contracts have been initialed,
signed and faxed to our office.
Thank you.
Jeff Snipes,
DSL Networks
(415)356-3800