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09-19 Resolution No. 09-19 RESOLUTION AUTHORIZING EXECUTION OF AN E-ELGIN INCENTIVE AGREEMENT WITH CSI TECHNOLOGIES, INC. (1 Douglas Avenue) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson,City Clerk,be and are hereby authorized and directed to execute an e-Elgin Incentive Agreement on behalf of the City of Elgin with CSI Technologies, Inc. for the property located at 1 Douglas Avenue, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: February 11, 2009 Adopted: February 11, 2009 Omnibus Vote: Yeas: 5 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk CITY OF ELGIN e-Elgin Incentive Agreement THIS AGREEMENT is made and entered into this lb — day of TAAA/Aey , 2009, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") , and CSI Technologies, Inc. , an Illinois Corporation, (hereinafter referred to as "Tenant") . WHEREAS, the City has established an e-elgin Incentive Program (hereinafter referred to as "Program") , whereby the owners of buildings and/or businesses located within a designated area of the corporate limits of the City (herein referred to as the "Target Area") are eligible to apply for grants related to certain technology infrastructure improvements, moving expenses and advertising costs, subject to the criteria for the Program and as set forth herein; and, WHEREAS ,the 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, the Tenant owns at least 50% of the building located within the Target Area, or is the owner of a technology- based business that is a tenant of a building located within the Target Area,_ and the Tenant desires to participate in the :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 i.s hereby acknowledged,' the parties hereto hereby agree as follows: Section 1 . The City shall pay to the Tenant the sum of $3 , 792 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 CSI Technologies, Inc. , who shall provide the City with a full release upon receipt . • • 1 Section 2 . Eligible Costs shall include labor, material and equipment costs, and such other costs as may be reasonably neces's`ary for the execution and completion of the improvements hereby provided for (hereinafter referred to as the "Work") designated in the Tenant' s application for participation in the Program dated August 6 and December 9, 2008 and the application' s supporting documentation, said documents being attached to and incorporated into this Agreement as "Exhibit B. " Section 3 . No Work shall be undertaken or shall be considered to constitute the basis for an Eligible Cost until the Tenant' s Proposal for such Work has been submitted to and approved in writing by the City' s Director of Economic Development and Business Services. Such proposals shall include, but not be limited to, a date certain by which the Work shall be completed. All work shall be completed within 180 days from the date of the Agreement, unless Tenant obtains the written consent of the City' s Director of Economic Development and Business Services. • Section 4 . The City Staff 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 be required by law or by the City. Any and all portions of the Work that do not conform to the plans for the Work, the terms of this Agreement, or the Program guidelines, as determined by the City in its sole discretion, shall be made to conform to the plans for the Work, the terms of this Agreement and the Program guidelines upon written notice of the existence of such nonconforming portions. Section 5. Upon completion of the Work, and upon, final inspection and written approval by the City Staff and such other final . inspections and approvals as may be required bylaw, the Tenant 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 ].abor --(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. The City shall pay the Tenant in accordance with Section 1 herein within thirty (30) days of the Tenant' s compliance with the provisions of Section 5 herein. In no event shall the amount paid the Tenant exceed the amount specified in this Agreement nor shall the City pay the Tenant an amount greater than the City' s proportionate share of the Cost specified in an invoice submitted by a contractor for any approved work set 2 forth in Exhibit A. Section 7 . In the event the Tenant fails to complete the Work in accordance with the terms of this Agreement, or otherwise breaches the terms of this Agreement, the City may terminate this Agreement upon written notice of breach and termination to the Tenant, and any and all financial or other obligations on the part of the City shall cease and become null and void. Section 8 . Upon completion and approval of the Work, and for a period of three (3) years, the Tenant shall properly maintain the Work in its finished form, without alteration or change thereto, and shall not enter into any Agreement, or take any other steps to alter, change or remove such Work without prior Written approval from the City Director of Economic Development and Business Services in his sole discretion. Section 9 . Nothing herein is intended to limit, restrict or prohibit the Tenant from undertaking any other Work in or about the subject property which is unrelated to the improvements provided for in this Agreement. ' Section 10. This Agreement shall be binding upon the Tenant, Tenant' s successors and permitted assigns for a period of three (3) years from and after the date of completion and approval of the Work. The Tenant shall provide subsequent Tenant (s) of Structure with a copy of this Agreement. This Agreement shall run with the land underlying Structure. Section 11. If the Tenant does not own the underlying property' for which the Work is being done, the Tenant warrantS and represents to City that the Tenant has a lease at the location for which the work is proposed for a term' of at least three (3) years. The Tenant 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. A copy of said written authorization is attached hereto as Exhibit B. Section 12 . To the fullest extent permitted by law, the Tenant agrees to indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits, judgments, costs, attorney's fees, damages or other relief arising out of or resulting from or through or -alleged to arise out of any reckless or negligent acts or omissions of the Tenant' s officers, employees or agents as a result.'of or in the performance of this Agreement . In the event of any action. against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal • counsel of the City' s choosing. The terms of this Section 12 shall survive any termination or expiration of this Agreement. Section 13 . This Agreement is not intended and 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 . . Tenant' s Name: CSI Technologies, Inc. Address: 1 Douglas Avenue, City: Elgin State: IL Zip Code: 60120 Telephone Number: (847) 836-3000 Property Location of Structure: 1 Douglas Avenue, Elgin, Illinois. Ownership Interest : Tenant Contact Person: Robert Aleksick Owner's Name: Kurt Kresmerry Address: 1141 E. Main St. Suite 100 City: East Dundee State: IL Zip Code: 60118 Telephone Number: (847) 428-1000 Property Location: 1 Douglas Avenue Ownership Interest : Owner Owner' s Name: • Address : City: State: Zip Code: Telephone Number: Property Location: Ownership Interest : • . Section 17 . The City of Elgin e-Elgin Incentive Guidelines dated March 27, 2000, as such guidelines may be amended from time to time by the City, are hereby incorporated into this Agreement as if fully set forth herein. Section 18 . This agreement shall be binding on the parties hereto and their respective successors and permitted assigns. This Agreement and the obligations herein may not be assigned by the Tenant without the express written consent of the City, which consent may be withheld at the sole discretion of the City. Section 19. No official, director, officer, agent or employee of the City shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement . In ".the event of any conflict between the terms of such e- Elgin Incentive Guidelines and the terms of this Agreement, the terms of the e-Elgin Incentive Guidelines shall control . IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date f ' appearing above. T T 1lb CITY 21; . tep■ amiK CSI Technologies, Inc. 0 Folari , City Manager l2O? 'ER 7 ,-LL ks►c ATTEST Diane Robertson, City erk • n , �� 1 BENSON ELECTRICAL CONTRACTING, INC. 371 Prairk Shtaf,Sulk A Crystal lake,IL 60014 II15/455-2260 fax:815/455-2356 PROPOSAL JOB# 08-019 DATE: November 3,2008 Proposal Sohmhtrd To: Work To Be Performed At: CSI Copy Room Ann: Kelly 1 Douglas Place Elgin.IL 60123 847-836-3001 Fax We hereby submit specifications and estimates for electrical work to include the following: ee Add box below existing receptacle that is 10' above finished floor. New box to be 15"above finished floor and connect cubicle. :. Add(3)circuits to copy room using existing receptacle location. Run conduit to panel and install breakers. - Total: $1,015.00 FAX TRA LTTAL I of Pages j fi FROM. 24/c.l Exclusions to the above: BE t'SOH E Trt .,, 1) Premium time. //j- PHONE.(815)4555-22:0 2) Labor rates after 06/01/2009. FAA (315)4=--:-:.c5 3) Products and Services nor listed above. ;its "�'� t .4--� Payment to be made as follows: Net due upon completion. Alt material is guaranteed to be as specified. All work to be completed in a professional manner according to standard practices. Any alteration or deviation from above specifications involving extra costs milt be executed only upon written orders,and will become an extra charge over and above the estintatc. All agitations contingent upon strokes,accidents,or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by Worker's Compensation insurance. BENSON ELECTRICAL CO ' C , INC. • Authorized Signature - Note: This proposal may be withdrawn if not accepted within 30 days. Acceptance of Proposal - The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Date of Acceptance Signature 09/19/2008 12:36 18154552356 BENSON LLEC1RICAL C PAGE 01/01 rj:// BENSON ELECTRICAL CONTRACTING, INC. 371 Ptak%Street Sate A Crystal Lake,IL 60014 815/455.2260 Fax 815/455-2366 ligliTL:=17L-1 r • PROPOSAL JOB# 08-019 DATE: September 19,2008 Proposal Swboitied Tot Work 7o 8e Prformed CSI Relocate Floor Boxes • Attn: Kelly 1 Douglas Place Elgin,IL 60123 847-836-3001 Fax We hereby submit specifications and estimates for electrical work to include the following: 4 Add center#Ioor box approximately 10'south from existing location + Add south floor box approx 6' south from existing location. T&M not to exceed 81450.00 RAX TRANagnx #of Exclusions to the above: BENSON ELECTRICAL 1) Premium time. OATE 2) Low voltage wiring. PFIO 3) Saw cutting or patching floor. FA`' — ... __FAX I (815)455.935E 4) Labor rates after 06/01/2008. e t eG 5) Products and Services not baled above. Payment to be made as follows: Net dtte upon completion. All material is guaranteed to be as ipeeiticd. All work to be completed in a professional manner according to standard practices. Any alteration or deviation from above specifications involving extra east will be executed only upon written orders,and will become en extra charge over and above the estimate. All agreements contingent upon erlkes,accidents.or delays beyond our contn,I. Owner to easy firm tornado and other necessary Insurance. Our workers are lhtly covered by Worker's Compensation Inwrwtoe. BENSON ELECTRICAL Co + C 1 INC. Authorized Signature air Note:This proposal may be withdrawn if not accepted within 30 days. Acceptance of Proposal - The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Date of Acceptance Signature - r • M • , Proposal CCSI NETWORKING, INC Date Propose 2135 Whitman Dr 81132008 720 Glendale Heights,IL 60139 630-776-6556 &p To CSI Technologies.Inc • 1051 E.Main St Suite 215 East Dundee.IL 60118 (847)-836-3000 Terms Project Due on 1st CSI Technologies.Inc Description Quantity Rate Amount Equipment Rack 2 Post Relay Rack 7 Feet 1 289.00 289.00T Ladder Rack for Support 1 190.00 190.00T Cable Management 3 99.00 297.00T Top Mounting Hardware 1 95.00 95.00T Disconnect existing cables.Move existing patch panels in to new 16 95.00 1,520.00 • rack,InsW lation of rack Equipment installation into rackinstallation on moulting hardware and cable management Patch Panel Cable Misc cable lengths to fit in the cable management 50 5.00 250.007 Sales Tax 8.75% 98.09 • • • • Thank you for your business Total 52,739.09 - r in avrIP IN SYNC SYSTEMS, INC. Date: September 26, 2008 Proposal# P0908-024 Russ/Diven CSI Technologies 1051 E. Main St., Ste.215 East Dundee, IL 60118 PROPOSAL • Wiring for the.Move Qty. Des®ptin 16 CAT 5 Wire Runs Q CAT 5 Re-use and Pull To Another Area $2,380 plus shipping and tax In Sync Systems,Inc. is not responsible for any problems with telephone carriers. Additional charges will apply if extra time or labor is required due to no dial tone at customer site or related issues.Any additional wiring or programming requested beyond this proposal will be billed on a time and material basis, at$105/hour per technician plus materials(with your prior approval). Additional charge for wire molding needed as determined by techician. If applicable: installation price based upon all conduit being property installed by others,.induding pull strings where appropriate. The cable quoted is suitable for applications other than that used in air handling ducts or plenum ceilings, unless conduit is provided. This equipment completely installed and maintained free of charge for one year,except where damage is due to negligence or acts of God. This price valid for thirty(30) days. Sales tax to be added for material only, if applicable. All fees, permits and bonds will be furnished by others. PAYMENT TERMS: 50%down with order, 50%upon receipt of equipment and completion , or approved lease . Please check method of payment. We accept Mastercard,Visa, and American Express; additional fees apply. IN SYNC SYSTE Mike Splits I , Accepted By rm.-- Date?/��° # Please read - conditions on the back of t page. �4""''''[[ 545 Dakota Street Unit A Crystal Lake,IL 60012 Telephone:(815)-459-.1773 Fax:(815)459-2689 .o. a1 mlrr%rfllr January 8,2009 TO: Mayor and Members of the City Council rgoink Growth and Diversified Tax Base FROM: Olufemi Folarin,City Manager Raymond H. Moller,Director of Economic Development&Business Services SUBJECT: a-Elgin Incentive Application from CSI Technologies, Inc., 1 Douglas Avenue . g • PURPOSE • The purpose of this memorandum is to provide the Mayor and members of tle, City Council with information regarding an application from CSI Technologies, Inc. to participate in the e-Elgin Incentive Program. RECOMMENDATION It is recommended that the Mayor and members of the City Council approve the application of CSI Technologies, Inc. for participation in the a-Elgin Incentive Program in the amount of$3,792. • BACKGROUND In April, 2000, the City Council approved the e-Elgin Incentive Program. Assistance may be provided within the following areas: 1. Capital Costs 2. Line Service Fees • 3. Advertising Downtown commercial property owners and downtown business owners may qualify for up to 50% of capital costs, but not to exceed a total expenditure of $60,000 ($30,000 maximum City contribution), in funding for technology infrastructure improvements that include: installation of or upgrade to new Category 5 or better wiring; backup power generators for technology equipment; high-speed Internet access capabilities, including necessary hardware; or other technology infrastructure improvements approved by the review team and City Council. Eligible expenses do not include computer equipment, but could include routers for Digital Subscriber Service(DSL). W a e-Elgin Incentive Application from CSI Technologies,Inc. January 8,2009 • Page 2 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. 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 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. CSI Technologies Inc. (CSI) provides consulting services to electric utility companies. Their staff of 25 includes 15 degreed professionals,primarily mechanical engineers. CSI is growing rapidly and planed to hire an additional nine employees in 2008 and an additiopal 20 employees oyer the next three years. CST received the following quotes for the technology work proposed under the e-Elgin application. Service Performed Quote A Price Quote B Price Wiring for server room Benson cubicles/printers N.IL Telecom $7,680.00 Electrical $1,015.00 Wiring to accommodate cubicles Benson in main room Electrical $1,450.00 CCSI Cabling Networking $2,739.09 In Sync CAT 5 Systems .$2,380.00 Repair floor post Lukasik wiring DW Loftus $550.00 Builders $500.00 Total $8,230.00 $8,084.09 r a e-Elgin Incentive Application from CSI Technologies, Inc. January. 8, 2009 Page 3 All items listed under Quote B are eligible for funding with the exception of the floor repair. Eligible expenses total $7,584. The e-Elgin Grant funds these improvements at 50%of the total expenditure. In this instance, CSI Technologies,Inc. is eligible to receive a reimbursement of$3,792. FINANCIAL IMPACT The cost of the proposed assistance for CSI Technologies totals $3,792. There is $727,460 budgeted in the Riverboat Fund, account number 276-0000-791.80-27 project number 17711W,Economic Development Incentives. Currently, $171,850.49 is available to fund expenses related to the project. LEGAL IMPACT An e-Elgin Incentive Agreement will be required. ALTERNATIVES 1. The City Council may choose to fund the proposed e-Elgin Incentive application submitted by CSI Technologies, Inc. 2. The City Council may choose not to fund the proposed e-Elgin Incentive application submitted by CSI Technologies, Inc. Respectfully submitted for Council consideration. RH Attachment s4 t January 8, 2009 NORTHWEST TO: Mayor and Members of the City Council , — FROM: Olufemi Folarin, City Manager Raymond H. Moller, Director of Economic Development & Business Services SUBJECT: e-Elgin Incentive Application from CSI Technologies, Inc. PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding an application from CSI Technologies, Inc. to participate in the e-Elgin Incentive Program. RECOMMENDATION It is recommended that the Mayor and members of the City Council approve the application of CSI Technologies, Inc. for participation in the e-Elgin Incentive Program in the amount of$3,792. BACKGROUND In April, 2000, the City Council approved the e-Elgin Incentive Program. Assistance may be provided within the following areas: I. Capital Costs 2. Line Service Fees 3. Advertising Downtown commercial property owners and downtown business owners may qualify for up to 50% of capital costs, but not to exceed a total expenditure of $60,000 ($30,000 maximum City contribution), in funding for technology infrastructure improvements that include: installation of or upgrade to new Category 5 or better wiring; backup power generators for technology equipment; high-speed Internet access capabilities, including necessary hardware; or other technology infrastructure improvements approved by the review team and City Council. Eligible expenses do not include computer equipment, but could include routers for Digital Subscriber Service (DSL). e-Elgin Incentive Application from CSI Technologies, Inc. January 8, 2009 Page 2 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. 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 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. CSI Technologies Inc. (CSI) provides consulting services to electric utility companies. Their staff of 25 includes 15 degreed professionals, primarily mechanical engineers. CSI is growing rapidly and planned to hire an additional nine employees in 2008 and an additional 20 employees over the next three years. CSI received the following quotes for the technology work proposed under the e-Elgin application. Service Performed Quote A Price Quote B Price Wiring for server room Benson cubicles/printers N.IL Telecom $7,680.00 Electrical $1,015.00 Wiring to accommodate cubicles Benson in main room Electrical $1,450.00 CCSI Cabling Networking $2,739.09 In Sync CAT 5 Systems $2,380.00 Repair floor post Lukasik wiring DW Loftus $550.00 Builders $500.00 Total $8,230.00 $8,084.09 All items listed under Quote B are eligible for funding with the exception of the floor repair. Eligible expenses total $7,584. The e-Elgin Grant funds these improvements at 50%of the total expenditure. In this instance, CSI Technologies, Inc. is eligible to receive a reimbursement of$3,792. e-Elgin Incentive Application from CSI Technologies, Inc. January 8, 2009 Page 3 FINANCIAL IMPACT The cost of the proposed assistance for CSI Technologies totals $3,792. There is $727,460 budgeted in the Riverboat Fund, account number 276-0000-791.80-27 project number 17711W, Economic Development Incentives. Currently, $171,850.49 is available to fund expenses related to the project. LEGAL IMPACT An e-Elgin Incentive Agreement will be required. ALTERNATIVES 1. The City Council may choose to fund the proposed e-Elgin Incentive application submitted by CSI Technologies, Inc. 2. The City Council may choose not to fund the proposed e-Elgin Incentive application submitted by CSI Technologies, Inc. Respectfully submitted for Council consideration. RH Attachment O F E(C, �� City of Elgin Memorandum t . Date: February 16, 2009 To: Ray Moller, Economic Development and Business Services Director From: Jennifer Quinton, Deputy City Clerk Subject: Resolution No. 09-19, Regarding the e-Elgin Incentive agreement CSI Technologies, Inc. (1 Douglas Avenue) Enclosed please find the above referenced agreement. Please distribute to the appropriate parties and if needed, retain a copy for your records. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you.