04-151Resolution No. 04-151
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
KURT KRESMERY AND MARC KRESMERY AND
R.R. DONNELLEY & SONS COMPANY FOR PARKING SPACES AT THE
SPRING STREET PARKING DECK
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that
Ed Schock, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to
execute an agreement on behalf of the City of Elgin with Kurt Kresmery and Marc Kresmery and
R.R. Donnelley & Sons Company for reserved parking spaces at the Spring Street Parking Deck, a
copy of which is attached hereto and made a part hereof by reference.
s/ Ed Schock
Ed Schock, Mayor
Presented: June 9, 2004
Adopted: June 9, 2004
Vote: Yeas: 5 Nays: 1
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
AGREEMENT
This agreement made and entered into this ,4/-r# day of
c�y !U C 2004, by and between the City OF ELGIN, an
Illinois municipal corporation, (hereinafter referred to as the
"City"), KURT KRESMERY and MARC KRESMERY (hereinafter referred to
as the "Kresmerys") and R.R. DONNELLEY & SONS COMPANY, a Delaware
corporation, (hereinafter referred to as "R.R. Donnelley").
WITNESSETH
WHEREAS, the Kresmerys are the owners of the property
commonly known as 168 E. Highland Avenue, Elgin, Illinois
(hereinafter referred to as the "Highland Lofts"); and
WHEREAS, R.R. Donnelley has committed to maintain its
Digital Colorgraphics Division at the Highland Lofts which involves
the lease of not less than 40,000 square feet of the Highland Lofts
building and the employment of approximately 110 full time
employees at such location; and
WHEREAS, in order to provide for the continued
development of the City including the development of the center
City area the City has agreed to provide certain development
assistance in the form of maintaining the availability of a
security system and reserved parking for R.R. Donnelley together
with access to the Spring Street parking facility; and
WHEREAS, the City providing development assistance to
R.R. Donnelley to maintain the location of its Digital
Colorgraphics Division at the Highland Lofts building will result
in continued employment opportunities in the Elgin center City area
and spur additional economic development in the center City; and
WHEREAS, the City of Elgin is a home rule unit authorized
to exercise any power and perform any function relating to its
government and affairs; and
WHEREAS, development initiatives resulting in maintaining
employment opportunities within the Elgin center City area are
matters within the government and affairs of the City of Elgin.
NOW, THEREFORE, for and in consideration of the mutual
promises and undertakings contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
1. That the foregoing recitals are incorporated in this
agreement in their entirety.
2. That to facilitate R.R. Donnelley's retaining its
Digital Colorgraphics Division at the Highland Lofts building the
City agrees to maintain at its sole cost during the term of this
agreement the existing CCTV security system and two-way audio
system for the City of Elgin Spring Street parking facility and the
existing monitoring equipment currently located at the Highland
Lofts building, such existing security system, two-way audio system
and associated monitoring equipment being described in Exhibit A
attached hereto (hereinafter referred to as the "Security System").
The City shall during the term of this agreement maintain at its
cost said Security System in good working order. Any maintenance
and repairs to the Security System shall be performed within a
reasonable time under the direction and supervision of the City.
In no event shall R.R. Donnelley or the Kresmerys perform any
repairs, maintenance or other work on the Security System without
`a
the advance written consent of the City. The City's installation
and maintenance of the Security System shall not unreasonably
interfere with R.R. Donnelley's business operations at the Highland
Lofts building. Notwithstanding anything to the contrary provided
herein, at the option of the City the recording equipment for the
Security System may be installed at a City facility as determined
by the City.
3. That the Kresmerys agree that they shall continue to
provide the existing space in the common area at the Highland Lofts
building for those aspects of the Security System, including but
not limited to monitoring equipment, installed at the Highland
Lofts building. It is further expressly agreed and understood that
all equipment of the Security System installed either at the Spring
Street parking facility or the Highland Lofts building, except one
R.R. Donnelley camera which shall at all times be and remain the
sole and exclusive property of R.R. Donnelley, shall at all times
be and remain the sole and exclusive property of the City of Elgin
and may be removed by the City of Elgin upon the expiration or
termination of this agreement. Any such removal of the Security
System shall not interfere with the business operations of R.R.
Donnelley and upon such removal the City shall to the extent as is
reasonably practicable return the monitoring space area in the
Highland Lofts building to the condition as existed prior to the
installation of the existing monitoring console. It is agreed and
understood that the Kresmerys shall have no liability for the
operation, maintenance or repair of the monitoring equipment or
3
other aspects of the Security System installed at the Highland
Lofts building.
4. That this agreement shall not be deemed or construed
to create an obligation on any party hereto to provide any
monitoring of the security system installed in the Spring Street
parking facility.
5. That during the term of this agreement the City shall
at its sole cost provide twenty (20) uncovered parking spaces in
the Spring Street parking facility designated for the use of
R.R. Donnelley employees from 11:00 p.m. on Sundays through
11:00 p.m. on Fridays. The location of said twenty (20) parking
spaces in the Spring Street parking facility are identified in
Exhibit B attached hereto. Promptly following the execution of
this agreement, the City shall erect signs in the area of said
designated parking spaces identifying the parking spaces being
reserved for the use of R.R. Donnelley employees from 11:00 p.m.
Sundays through 11:00 p.m. on Fridays.
6. That R.R. Donnelley shall at its cost issue its
employees stickers or placards identifying the cars of R.R.
Donnelley employees. Such stickers or placards shall be displayed
on the driver's side of the rear bumper or rear window of vehicles.
only those vehicles which display the R.R. Donnelley vehicle
parking sticker shall be authorized to use the twenty (20)
uncovered parking spaces during the time period of 11:00 p.m. on
Sundays through 11:00 p.m. on Fridays. The City shall enforce such
reserved parking through the City's normal parking enforcement
operations in the Spring Street parking facility. The City may, in
V
its sole discretion, adopt rules and regulations with respect to
the use of the Spring Street parking facility, provided that such
rules and regulations do not prohibit R.R. Donnelley employees from
using the designated twenty (20) parking spaces as provided in
Paragraph 5 of this agreement.
7. That the City shall provide ongoing maintenance of
the Spring Street parking facility during the term of this
agreement.
8. That during the term of this agreement the City will
authorize a 15 minute passenger loading zone on Highland Avenue,
and a loading zone on Division Street adjacent to the truck dock
constructed on the northwest corner of the subject property, such
loading zone on Division Street being shown and depicted on
Exhibit C attached hereto.
9. That the parties understand and agree that the
undertakings of the City as set forth herein are expressly
contingent upon R.R. Donnelley's maintaining operations at the
Highland Lofts building as described herein with at least ninety
(90) full time employees. In the event R.R. Donnelley fails to
maintain operations at the Highland Lofts building as described
herein, including, but not limited to, employing at least ninety
(90) full time employees as described herein, and maintain such
operations and employment levels at the Highland Lofts building
during the term of this agreement, the parties understand and agree
that the City may, after the City has given R.R. Donnelley advance
notice and R.R. Donnelley has not cured its failure within the 30 -
day period, as its sole remedy terminate this agreement and remove
5
all security equipment installed at the Highland Lofts building,
except the R.R. Donnelley camera, and terminate the designation of
the reserve parking spaces at the Spring Street parking facility,
and this agreement and have no further force or effect.
10. That this agreement shall not be deemed or construed
to create an employment, joint venture, partnership or other agency
relationship between the parties hereto.
11. That this agreement represents the entire agreement
between the parties hereto and any oral representations, promises,
terms or agreements not herein expressed shall be of no force and
effect.
12. That this agreement is not intended and shall not be
construed to provide or create any benefits or rights to any person
or entity not a party to this agreement.
13. That this agreement is not intended and shall not be
construed to limit, alter or otherwise effect the immunities
provided to the City and/or its officers and employees as set forth
in the Local Governmental and Governmental Employees Tort Immunity
Act at 745 ILCS 10/1-101 et seq., as amended.
14. That this agreement may not be assigned without the
express written consent of all parties hereto.
15. That this agreement is subject to and shall be
governed by the laws of the State of Illinois.
16. That the term of this agreement shall be for six (6)
years commencing upon the date and year first written above.
17. That all notices herein shall be in writing and shall
be served on the parties at the addresses following their
2
signatures.
The mailing of a
notice
by
registered
or certified
mail, return
receipt requested,
shall
be
sufficient
service when
the notice is mailed.
IN WITNESS WHEREOF, the parties have entered into and
executed this agreement on the date and year first written above.
CITY OF ELGIN, a municipal
By
Ed Schock, Mayor
Attest:
Dolonna Mecum, City Clerk
CITY OF ELGIN
150 Dexter Court
Elgin, IL 60120
Attn: City Manager
R.R. DONNELLEY & SONS COMPANY,
a Delawa e corpora on
By J J
Name
Title
R.R. DONNELLEY & SONS COMPANY
77 W. Wacker Drive
Chicago, IL 60601
Attn: Real Estate Administrator
kir
Kurt Kresmery
L
Marc Kresmery
KURT KRESMERY
MARC KRESMERY
c/o Kurt Kresmery
168 E. Highland Avenue
Elgin, Illinois 60120
F:\Legal Dept\Agreement\Development Agr-Donnelley-Kresmery-Highland-RM Amend-l.doc
Draft 3/16/04
7
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:ESD Construction, Inc ................................................
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.....
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CCTV SYSTEM PROJECT
ELGIN SPRING STREET
pARI LNG FACILITY
The following is a brief description of the installation of the base CCTV system. ESD
Construction (ESDC) will provide all necessary engineering, design, site inspection
services, construction, construction management, permit, taxes, and warranties to
completely implement the agreed upon scope of work. Also covered, through subcontractor
agreements, will be all required building trades including equipment, materials, tools,
testing,
consumables,freight, trairim-o All subcontractorf necessary equipment,
can provide full
time
erformance bondsfield supervision, siif t up
required by the owner.
ESDC's warranty obligations, one year or longer if an extended warranty is provided by a
through arrangement, with the subcontractor providing this
manufacturer, will be a pass
service to the parking facility through ESDC.
The following is brief overview of both the base CCTV system and two-way audio system
project description:
u 4o C TV SySferw.
L
• Furnish and install 16 new 113" 3.8 to 81nm variable focus and automatic IRIS control
camera assemblies at parking garage.
• Utilize existing conduit at parking garage where applicable.
Furnish and install new wiring and EMIT conduit with compression fittings where• .
existing conduit is not applicable.
ith head end multiplexer, time lapse recorder
• Furnish and install new video equipment w
and roof transmitter at parking garage. •
Furnish and install new video equipment at Highland Lofts Facility viewing station.
This video system will include roof video link receiver, 16 x 1 video multiplexer, two
(2) black and white monitors and necessary power receptacles, and all associated
conduit and wiring•_ o video cable and
Furnish and install new camera assemblies along with traveling typ
power in each of two (2) elevator cabs. ESDC will coordinate this installation with
Dover Elevator for compatibility.
clginpk&o'oc
:ESD Construction, Inc..................................................................................
Furnish and install two (2) new pan tilt and zoom camera assemblies with associated
equipment, positioned to video parking entrance and area leading. to Highland Loft
Facility and Chicago entrance. Camera assemblies will be equipped with vandal proof
environmental housings. These camera will also be equipped with wireless link
hardware to transmitter at the garage and receiver at Highland Lofts facilities.
Two Way Audio Svatems
• Installation of twelve (12) new callfaudio station assemblies at parking garage with five
(5) new stations located at transistor area of each parking level, utilizing h xistinble.
system i
conduit from Vikinlica
g n elevator lobbies at parking g app
• Provide necessary power and equipment to communicate two-way with the garage via
City furnished duplex phone and data line.
* Please note that we are currently investigating a microwavable (wireless) system.
However, this would require a license from the F.C.C. and approval for installation by
the City.
Encdneerina and Des'an
• The design will be pre-engineered to the satisfaction of the Owner. ESDC shall provide
the services of an experienced project engineer, design engineers, and drafters to
complete the technical engineering requirements for the scope of work. All engineering
will be performed under the direct supervision of an ESDC project manager. All
drawings will be certified by a professional engineer who is registered in the state of
Illinois.
Before starting the work herein described, ESDC shall and submit for approval a set of
working drawings and literature covering the entire Phase I scope of work.
Upon completion, ESDC shall provide construction manuals describing all material and
equipment provided. Manuals will also include appropriate operating and maintenance
instructions. '
Complete "as -built" drawings will likewise be provided in reduced size as part of these
manuals.
Project Management
ESDC shall not employ any Subcontractor, Engineer, Supplier or other individual or
entity against whom Owner may have reasonable objection. ESDC shall not be required
to employ any Subcontractor, Supplier or other individual or entity to furnish or
perform any of the work against whom ESDC has reasonable objection.
eginpkg.doc
ESD Construction, Inc ...............................................................
...................
ESDC shall be fully responsible to Owner for all acts and omissions of the
Subcontractors, Engineers, Suppliers and other individuals or entities performing or
furnishing any of the work under a direct or indirect contract with ESDC. Nothing in
the contract documents shall create for the benefit of any such Subcontractor, Supplier
or other individual or entity any contractual relationship between Owner and any such
Subcontractor, Supplier or other individual or entity, nor shall it create any obligation
on the part of Owner to pay or to see to the payment of any moneys due any such
Subcontractor, Supplier or other individual or entity except as may otherwise be
required by Laws and Regulations.
ESDC shall be solely responsible for scheduling and coordinating Subcontractors,
Suppliers and other individuals and entities performing or furnishing any of the Work
under a direct or indirect contract with ESDC. ESDC shall ogfumishing all ny of the Subcontractors,
Suppliers and such other individuals and entities performing
work to communicate with the Owner through ESDC.
ESDC shall supervise, inspect and direct the construction competently and efficiently,
devoting such attention thereto and applying such skills and expertise as may be
necessary to provide the construction in accordance with the contract documents.
ESDC shall be solely responsible for the means, methods, techniques, sequences and
procedures employed for the provision of construction. ESDC shall be responsible to
see that the completed construction complies accurately with the contract documents and
shall keep Owner advised as to the quality and progress of the construction.
Utilities and-ervice
• Owner shall be responsible for furnishing all utilities and services to complete the
agreed scope of work, within reason, free of charge. Electric and water services shall
be supplied at points convenient to Owner and all extensions required to respective
work areas shall be the complete responsibility of ESDC.
Start Un and Training
ESDC shall provide the services of a trained service engineer to put all equipment and
systems in proper operation, make necessary adjustments and to instruct and familiarize
operating personal with the proper operation and maintenance of the entire installation.
ESDC's services that are required as part of this specification shall be limited to the
service and engineering that is reasonably required to place the new system in
satisfactory operation. If it is discovered that any existing equipment or material
requires maintenance, repair or replacement to place it back in proper operating
condition, the cost of those required repairs, replacement of parts, or other material
charges shall be reviewed with Owner and added to the contract.
clginpkg.dot
ESD Construction, Inc ..................................................
................................
Permits
• ESDC shall secure all necessary construction permits from local building authorities.
Any permit fees associated with this work shall be paid by ESDC.
Warranty
All materials and equipment supplied shall be new and all workmanship shall be of first
quality. ESDC warrants that the equipment and systems sold hereunder shall perform
according to the project description herein. ESDC agrees to replace, restore or repair, at
its expense for a period one year after acceptance, all equipment and material which is
defective in material or workmanship. The time limit on the warranty of manufactured
equipment and material shall be in accordance with the manufacturer/s published and/or
standard warranty when such warranty extends beyond the warranty period indicated above.
Premium Time
• If the forces of ESDC or any of its subcontractors at the job site work overtime at the
Owner's written direction, then the Owner will reimburse the contractor for the
premium portion of overtime wages paid to such forces plus applicable Federal, State
and Local payroll taxes and other actual applicable costs in connection therewith. Such
charges and costs will be treated as changes in the Scope of Work as described in this
document. Such premium portion of overtime wages shall include 10 % for overhead
and 1090 for profit of ESDC or its subcontractors or any other costs or expenses. This
paragraph shall have no application to overtime work which ESDC is required to
perform because of failure to meet the contract schedule, or without limitation, because
of any other fault of ESDC.
• In the event the Owner desires to accelerate the schedule, the Owner will notify ESDC
in writing to such effect and ESDC shall require its forces and those of its
subcontractors to work such overtime hours as may be necessary and the Owner's only
obligation on account of such acceleration will be to reimburse ESDC for the premium
portion of overtime wages. ESDC shall keep accurate records of such overtime hours
and shall secure the Owner's approval of such records on a daily basis.
Taxes
All sales and use taxes are included.
,Iginpkg.do
ESD Construction,
Inc.................................................................................
Attachments
• Please review Attachment #1 for list of projects done by ESD (Design and Construction
Management).
• Please review Attachment M2 for ESD Construction Inc. Certificate of Liability
Insurance.
• Please review Attachment #3 for on-going service and preventative maintenance
agreement between Sbarlen Electric Company and Client.
• Shirlen Electric Company Project List - Attachment N4.
elginpk-,doc
M
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s
Spring Street Parking Facility
Level 4 down to Level 3
PZV OF 6�C
ti.
City of •
ia^
7Ep FES``
May 21, 2004
Item No. S
TO: Mayor and Members of the City Co
uncil ALIVE DOWNTOWN
FROM: David M. Dorgan, City ManagerRaymond H. Moller, Director of Development and Business Services
SUBJECT: Spring Street Deck Parking Agreement with R. R. Donnelly & Sons Company
PURPOSE
The purpose of this memorandum is to present to the Mayor and members of the City Council an
agreement with R.R. Donnelly & Sons to provide twenty (20) reserved and uncovered parking
spaces in the Spring Street parking deck.
RECOMMENDATION
It is recommended that the City Council approve the recommended reserved parking agreement
for R.R. Donnelly & Sons at the Spring Street Parking Deck.
BACKGROUND
On May 27, 1998, the City of Elgin entered into an agreement with R.R. Donnelly & Sons
Company, Mark Kresmery, and Kurt Kresmery that provided reserved parking for Donnelly at
the Spring Street parking deck. The agreement contained the following terms:
Donnelly
City
Kresmery
40,000sq.ft at 168 E.
City installs & maintains a CCTV
Provides space in the
Highland leased
security system & 2 -way audio system
common lobby for a
within deck
security system
monitoring station
150 employees
Provide 70 contiguous, undercover
Release option for 25
parking spaces for Donnelly to be
reserved spaces previously
reserved from l 1pm on Sundays
awarded by City
through 11 pm on Fridays
Construct/maintain
City has authority to review use of
security system monitor
spaces by Donnelly
station
Spring Street Parking Deck/R.R. Donnelly
May 21, 2004
Page 2
Donnelly
Citv
Kresmery
Seven year lease at 168 E.
City provides for loading zones on
Provide space for
Highland Ave.
Highland Avenue and Division Street
security station within
and 3 handicapped parking spaces on
the commercial area
110 employees
Division Street
The term of the building lease and parking agreement was for five years and it expired in May of
2003. A new seven year building lease with Donnelly was signed in the Spring of 2003. While
negotiating the new building lease extension, Donnelly requested that the terms of the initial
Spring Street Parking Deck Agreement be applied for an additional seven (7) years. Due to the
concerns raised by downtown merchants, staff negotiated an arrangement whereby Donnelly
would retain sixty (60) covered spaces, but the reserved spaces would be relocated to the upper
levels of the deck. This arrangement was approved by the city council at a COW meeting in the
spring of 2003, but was not acted upon at a regular council meeting. Staff was directed to attempt
to further reduce the reserved parking spaces granted to Donnelly. The proposal being presented
at this time is the result of staff efforts to respond to the request from city council.
The proposed agreement includes the following conditions:
Donnelly
city
Kresmery
Seven year lease at 168 E.
Maintain CCTV & audio system
Provide space for
Highland Ave.
within police department
security station within
the commercial area
110 employees
Provide 20 reserved &
uncovered parking spaces within
the deck from l Ipm on Sunday
through 11 pm on Friday
Continue to maintain security
Use of reserved spaces can be
system observation station
reviewed if employment levels
fall below 90 employees.
With the exception of the 20
reserved spaces, employees
parking within the deck are
subject to same parking
opportunities as any public user
of the facility.
In summary, the reserved spaces allotted to Donnelly will be reduced by fifty spaces, the spaces
will be moved to the upper, uncovered levels of the deck. With the exception of the twenty (20)
Spring Street Parking Deck/R.R. Donnelly
May 21, 2004
Page 3
reserved spaces, Donnelly employees will be subject to the same parking opportunities and
restrictions as any member of the general public who wishes to use the Spring Street Parking
Deck.
COMMUNITY GROUPSIINTERESTED PERSONS CONTACTED
None.
FINANCIAL IMPACT
The removal and relocation of the signage will be accomplished by existing Public Works
Department employees. There are sufficient funds budgeted and available in the General Fund,
Public Works, Regular Employees Earnings, account number 010-3321-753.01-01 to pay for the
sign relocation. The 2004 budget for this account is $441,810 and expenditures through May 11,
22004 equal approximately $136,486.
n �
� U \ LEGAL IMPACT
v V YYNone.
ALTERNATIVES
The Council may choose to enter into the revised reserved parking agreement.
2. The Council may choose to modify the proposed agreement to provide a different level of
reserved parking for Donnelly employees.
3. The Council may choose to provide no reserved parking for Donnelly employees.
Respectfully submitted for Council consideration.
Vu1 '4V