1. finance
2. accounting and auditing

MEETING OF THE
DOWNTOWN DEVELOPMENT AUTHORITY
Wednesday, April 9, 2003 - 8:30 a.m.
Room 601, City Hall
AGENDA
1.
Call to order
2.
Approval of minutes of March 12, 2003 annual meeting (enclosed)
3.
Comments from audience regarding agenda items
4.
DDA financial reports for March 2003 (enclosed)
5.
Contract for professional auditing services (enclosed)
6.
Design services contract for DASH West parking lot (enclosed)
7.
Reconstruction of Louis Street and improvements to Monroe Avenue (enclosed)
8.
Blueprints for Michigan Downtown 2003 (enclosed)
9.
Information Item:
a.
2003 Townie Awards – Reader Poll Results (enclosed)
10.
Public Comment
11.
Adjournment
Note:
The City of Grand Rapids Tax Increment Finance Authority
will meet immediately following the DDA meeting April 9, 2003 in Room 601, City Hall.
www.ci.grand-rapids.mi.us
“City Government”
“DDA E-Packet Agenda”
MEETING OF THE DOWNTOWN DEVELOPMENT AUTHORITY
March 12, 2003
1.
Call to Order – The meeting was called to order at 8:30 a.m. by Chairman Verne
Barry
2.
Attendance
Present: Verne Barry, Dave Cassard, John Canepa, Kayem Dunn, John Logie,
Paul Mayhue, Jeff Steinport, Tom Wesholski, Student Members: Brendon Mika
and Adam Laursen.
Absent: Casey Wondergem.
Others Present: Jay Fowler (Executive Director), Richard Wendt (Special
Counsel), Karen Mendez (Recording Secretary), Bill Cole, Pamela Ritsema, Jana
Wallace (City staff), Benyam Adafre and Tena Kebede (Gojo Restaurant).
3.
Approval of Minutes
Chair Verne Barry asked for a motion for approval of the minutes of the annual
DDA meeting of February 12, 2003.
Motion: Paul Mayhue, supported by Dave Cassard, moved approval of the
minutes of the February 12, 2003 meeting of the DDA as presented. Motion
carried.
4.
Comments from Audience Regarding Agenda Items – None
5.
DDA Financial Reports for February, 2003
Jana Wallace presented the February, 2003 DDA financial reports. She stated
that Statement B shows a payment in the amount of $34,969 for the Dead Sea
Scrolls Exhibition support. It is anticipated that the full $100,000 support that the
DDA approved for this exhibition will be expended. Statement C shows payment
was made from the Local Tax Increment Fund for the two west side land options
related to the Seward Avenue extension project. Ms. Wallace pointed out that
Statement C shows the Unrestricted Fund budget vs. actual is carrying a deficit
of $51,891. This is due to the fact that when the budget was created there was
no parking agreement in place.
Ms. Wallace then asked for approval of the February, 2003 Statement E
Summary of Paid Invoices.
Motion: Tom Wesholski, supported by John Canepa, moved approval of the
February, 2003 Financial Reports, including the invoices paid per Statement E,
as presented. Motion carried.
Downtown Development Authority
March 12, 2003 – Page 2
6.
Snowmelt System Improvements
Mr. Fowler stated two snowmelt systems were installed in 1996 and 2000 as part
of Phase I and Phase II of the Monroe Center reconstruction project. The
systems have operated well, and for the past two winters the cost of operating
the systems has been paid for by the adjacent property owners via the DID
assessment, and by the City. On two occasions over the past several months,
two of the underground vaults have flooded, causing equipment damage. There
are sump pumps in the vaults, but they failed to operate correctly. The City
Engineer’s Office recommends the installation of a series of alarms in the vaults
to warn of rising water or other systems failures. The City Engineer’s Office also
recommends system improvements that will minimize future operating and
maintenance costs. Mr. Fowler recommends the DDA authorize the requested
$12,000 to implement the snowmelt system improvements.
Mr. Barry asked if someone will be available to monitor the alarms 24 hours a
day, 7 days a week. Mr. Fowler responded that the City Public Works Office as
well as a private mechanical contractor will both monitor the alarms, and they will
be monitored 24 hours a day, 7 days a week.
Mr. Barry said it is his understanding that the energy use improvements should
save approximately $10,000 in the first year of operation. Mr. Fowler verified this
is correct.
Mayor Logie stated he believes the alarms are a good idea, since the sump
pumps that were intended to prevent flooding have apparently failed.
Mr. Cassard reminded the group that Mr. Fowler is the City’s DID representative,
and that the DID Board has included the snowmelt systems maintenance costs in
the budget it is currently considering for adoption. Mr. Fowler stated the City
Commission approved a three-year maintenance contract on March 11th.
Mr. Mayhue asked if there is only one alarm. Mr. Cole stated there will be alarms
located both in the vault containing the snowmelt heat pumps and in a second
vault containing the electrical transformer.
Mr. Wesholski asked why the DDA is being requested to provide these funds.
Mayor Logie explained the snowmelt system belongs to the DDA, since they
financed the system construction.
Motion: John Canepa, supported by Kayem Dunn, moved to authorize
expenditures for snowmelt system improvement in an amount not to exceed
$12,000, and to authorize the Executive Director to sign an agreement for the
improvements, subject to review and approval of legal counsel. Motion carried.
Downtown Development Authority
March 12, 2003 – Page 3
7.
Development of DASH West Parking
Mr. Fowler reminded the Board on January 28, 2003 the DDA approved
purchase of two parcels of land north of Lake Michigan Drive and east of Seward
Avenue NW, commonly known as the DeVries parcel and the Catholic
Secondary Schools parcel. The closing for these parcels is scheduled to take
place in mid-May. The Parking System Director has requested the City
Engineer’s Office begin design and construction of a surface parking lot on the
DeVries parcel, since parking will be needed in summer/fall of 2003 to meet
expected demand. The City Engineer’s Office requests permission to proceed
with certain advance technical investigations, including topographical surveys
and geotechnical studies. Mr. Cole explained soil borings are necessary to
determine the condition of the soil in the area. The estimate for the advanced
technical investigations of the parcel is $20,000. He stated that he intends to
approach the DDA at its regular April Board meeting with recommendations for
the design phase of the land, so construction work can begin on the parcel in
July or August, 2003.
Mayor Logie asked if we have a term sheet signed for this parcel. Mr. Wendt
responded that we do have a signed option agreement.
Mayor Logie stated he supports this request, since he knows how much leadtime is required to develop a surface parking lot of this type. He feels it makes
good sense to begin preliminary work now.
Ms. Ritsema stated she has already received requests for 330 parking spaces at
the location.
Mayor Logie stated it is important to provide the necessary parking and it is
important to start generating revenue as soon as possible.
Mr. Cassard stated he feels the additional parking is vital for the success of
downtown, and important not only for visitors but for office workers looking for a
lower-cost parking alternative.
Ms. Dunn asked when the ramp at the northeast corner of Ottawa and Louis will
be completed. Ms. Ritsema responded it will be completed in early August,
2003.
Mr. Wesholski asked for verification that there is nothing to prevent the City
Engineer’s Office from performing this testing on the land. Mr. Wendt responded
no.
Mr. Mayhue asked if $20,000 would be enough to cover the cost or if more could
become necessary if soil problems are found.
Downtown Development Authority
March 12, 2003 – Page 4
Mayor Logie stated the only thing the DDA is authorizing is $20,000 worth of
testing. Mr. Barry agreed, stating the $20,000 worth of testing will determine the
cost of the entire project.
Mr. Fowler stated the design contract will be for the entire parking area, with
construction on the DeVries parcel being the first phase, and the Catholic
Secondary Schools parcel being the second phase.
Motion: Dave Cassard, supported by Tom Wesholski, moved to authorize the
City Engineer’s Office to proceed with advance technical investigations on the
parcel of land north of Lake Michigan Drive and east of Seward Avenue NW, in
an amount not to exceed $20,000, and to solicit one or more proposals for
preliminary and final design services for development of surface parking on the
DeVries parcel and Catholic Secondary Schools parcel for consideration by the
DDA. Motion carried.
8.
Public Hearing – Liquor License Request – 85 Monroe Center NW
Chair Verne Barry declared the public hearing open at 8:50 a.m. Mr. Fowler
explained that the Gojo Restaurant is located at 85 Monroe Center in a storefront
that was once part of the building that housed Fox Jewelers. Mr. Fowler asked
the representatives of the restaurant if they would say a few words. Mr. Benyam
Adafre introduced himself and his wife, Ms. Tena Kebede. They are the owners
of the Gojo Restaurant and have been open for three years, serving Ethiopian
foods. Customers have been requesting they serve beer and wine at their
establishment, which is why they are seeking a Class C liquor license.
Mayor Logie commented that this public hearing is a requirement of the process
of application for a Class C liquor license. He is in favor of the request, and
believes it is important to be supportive of small businesses along Monroe
Center. He reminded the Board that he has commented in the past that in 1991
there were 76 empty storefronts along Monroe Center, and there are now 11
empty. Progress has been made, but this is traditionally a difficult area to run a
business.
There being no further comments, the Chair closed the public hearing at 8:52
a.m.
DOWNTOWN DEVELOPMENT AUTHORITY
OF THE CITY OF GRAND RAP IDS
RESOLUTION SUPPORTING ISSUANCE OF A LIQUOR LICENSE
FOR A BUSINESS LOCATED IN THE DEVELOPMENT DISTRICT
Board member Steinport, supported by Board member Dunn,moved the adoption of the
following resolution:
Downtown Development Authority
March 12, 2003 – Page 5
WHEREAS, the Downtown Development Authority of the City of Grand Rapids was
created by the City Commission on October 16, 1979, and operates pursuant to the authority of
Act 197 of 1975, and has a population of less than 50,000 persons in the district; and
WHEREAS, the State of Michigan has provided for up to fifty (50) new liquor licenses,
across the state, for persons with businesses located in development districts, without respect to
the order in which the requests are received; and
WHEREAS, the Downtown Development Authority of the City of Grand Rapids has
received a request for such a license from a person who plans to operate a business at 85
Monroe Center, NW in the Downtown Development Authority District;
WHEREAS, on March 12, 2003, the Downtown Development Authority of the City of
Grand Rapids has held a public hearing to consider public comment on the request, and
WHEREAS, pursuant to Section 17k(1)(e) of the Liquor Control Act, Act 440 of the Public
Acts of 1996, the Downtown Development Authority has made the following findings:
1. That the Gojo Ethiopian Restaurant, located at 85 Monroe Center, NW, is within the Grand
Rapids Downtown Development Authority Development District.
2. That issuance of a liquor license to the Gojo Ethiopian Restaurant would prevent further
deterioration within the development district by supporting the expansion of an existing
business.
3. That issuance of a liquor license to the Gojo Ethiopian Restaurant would promote economic
growth within the development district by:
A.
Contributing to the mix of dining and drinking locations in the district by
supporting an existing unique ethnic restaurant.
B.
Promoting the competitiveness and vitality of downtown Grand Rapids as an
dining and entertainment district by improving the dining choices within the
district
C.
Facilitating private investment in new facilities and building improvements.
D.
Facilitating the creation and retention of several full and part-time jobs in the
district.
Downtown Development Authority
March 12, 2003 – Page 6
RESOLVED, that the Downtown Development Authority of the City of Grand Rapids
finds in favor of issuance of a liquor license to Benyam Adafre and Tena Kebede dba Gojo
Ethiopian Restaurant at 85 Monroe Center, NW, because this action will prevent further
deterioration within the district and promote economic growth within the district.
YEAS: Board members
Barry, Cassard, Canepa, Dunn, Logie, Mayhue,
Steinport, Wesholski.
NAYS: Board members
None.
ABSTAIN:
None.
ABSENT:
Wondergem.
RESOLUTION DECLARED ADOPTED.
9.
Wayfinding Sign Update
Mr. Fowler reported a meeting took place yesterday, March 11, to kick off the
Wayfinding project. The meeting was with representatives of various
organizations that will be listed on the signs, and Mr. Fowler felt it was a
successful meeting. The project is on track and signs should be in place by the
end of this year.
10.
Information Items
Mr. Barry stated the information item provided is an interesting article regarding
attracting “creative” workers to the city.
11.
Adjournment
The DDA Board meeting was adjourned at 8:55 a.m.
/klm
DATE:
April 3, 2003
TO:
Jay Fowler
DDA Executive Director
FROM:
Jana M. Wallace
Fiscal Services Analyst
SUBJECT: March 2003 Financial Statements
Attached are the Downtown Development Authority financial statements for the period ending
March 31, 2003.
These statements include the following:
Statement A: Balance Sheet
Statement B: Statement of FY03 Revenues and Expenses
Statement C: Comparison of FY03 Annual Budget vs Actual
Statement D: Statement of Current Project Expenses
Statement E: Summary of Paid Invoices
Please call me at 456-4514 if you have any questions.
Attachments
cc:
Assistant City Manager – Fiscal Services
STATEMENT A
DOWNTOWN DEVELOPMENT AUTHORITY
Balance Sheet
March 31, 2003
ASSETS
Unrestricted
Pooled cash and investments
$
1,673,085
Investments held by trustee
Taxes and accounts receivable
Special assessment receivable
Loans receivable
General fixed assets
Future tax increment revenues anticipated
TOTAL ASSETS $
1,673,085
Debt
Increment
$
1,519,459
5,412,589
(74)
53,115,720
$
60,047,694
Local Tax
Increment
$
18,376,575
27,842
4,000,000
83,151,308
1,840,561
$ 107,396,286
$
2,440,000
50,675,720
53,115,720
$
1,840,561
4,002,433
5,842,994
$
2,440,000
1,840,561
4,002,433
50,675,720
58,958,714
$
83,151,308
27,548
18,374,436
101,553,292
$
83,151,308
1,673,085
27,548
18,374,436
6,931,974
110,158,351
$ 107,396,286
$
169,117,065
$
$
TOTAL
21,569,119
5,412,589
(74)
27,842
4,000,000
83,151,308
54,956,281
169,117,065
LIABILITIES AND FUND EQUITY
Liabilities
Due to primary government
$
Accounts payable
Contracts payable
Deferred revenue
Bonds payable
TOTAL LIABILITIES
-
Fund balance / equity:
Investments in general fixed assets
$
Unrestricted reserve
Reserve for encumbrances
Reserve for authorized projects
Reserve for bond indenture
TOTAL FUND EQUITY
1,673,085
1,673,085
$
6,931,974
6,931,974
TOTAL LIABILITIES & FUND EQUITY
1,673,085
$
60,047,694
ddastmts-mar03.xls jmw 04032003
$
STATEMENT B
DOWNTOWN DEVELOPMENT AUTHORITY
Statement of Revenues and Expenses
July 1, 2002 - March 31, 2003
REVENUES
Unrestricted
Taxes - Assessment
$
Transit Millage Tax Increment
Interest on Investments
23,692
Restricted Contribution - Monroe Center
State Grant - Ionia Avenue Phase I
State Grant - Ionia Avenue Phase II
Campau Restoration - Property Owners
Property Rental - Parking Lots
74,586
Rentals - Other
2,500
Interest / Penalties
From / (To) Fund Balance
TOTAL REVENUES
100,778
EXPENSES
Supplies
Project Contractual Services
Administrative Contractual Services
Planning Services
Professional Development
Local Business Expense
Memberships
Heartside District and Park Support
Dead Sea Scrolls Exhibition Support
Areaway Removal Incentive Program
Building Re-use Incentive Program
Streetscape Improvement Incentive
DID Maintenance Equipment Grant
Published Notices
Asset Maintenance Services
Insurance Premiums
Property Rental - Parking Lots
Sub-total - Other services
392
1,924
42,593
110,898
155,807
Land Acquisition
Signage Purchases and Installation
Shuttle Purchase
Construction in Progress
Sub-total - Minor Capital
-
Debt Service - Principal
Debt Service - Interest
Sub-total - Debt Service
-
Wages and Benefits
-
TOTAL EXPENSES
EXCESS / (DEFICIT)
Debt
Increment
$
5,348,608
70,910
5,419,518
(55,029)
TOTAL
8,248,395
144,278
331,226
250,000
161,358
434,655
74,586
2,500
1,766
9,648,764
21
22,618
53,947
6,682
50
395
74,495
20,201
132,771
498
311,678
21
22,618
54,339
6,682
50
395
1,924
74,495
20,201
132,771
498
42,593
110,898
467,485
-
73,389
80,000
187,722
341,111
73,389
80,000
187,722
341,111
574,706
54,408
629,114
1,124,706
1,516,986
2,641,692
23,042
23,042
1,304,945
3,473,330
2,012,578
$
$
-
550,000
1,462,578
2,012,578
155,807
$
Local Tax
Increment
$
2,899,787
144,278
236,624
250,000
161,358
434,655
1,766
4,128,468
3,406,940
$
2,823,523
$
6,175,434
STATEMENT C
DOWNTOWN DEVELOPMENT AUTHORITY
Comparision of Annual Budget vs Actual
July 1, 2002 - March 31, 2003
Unrestricted
Budget
Actual
Taxes - Assessment
$
$
Transit Millage Tax Increment
Interest on Investments
36,360
23,692
Restricted Contribution - Monroe Center
State Grant - Ionia Avenue Phase I
State Grant - Ionia Avenue Phase II
Campau Restoration - Property Owners
Property Rental - Parking Lots
240,000
74,586
Rentals - Other
4,467
2,500
Interest / Penalties
From / (To) Fund Balance
(230,827)
TOTAL REVENUES
50,000
100,778
REVENUES
Debt Increment
Budget
Actual
$ 4,651,636 $ 5,348,608
179,907
70,910
4,831,543
5,419,518
Local Tax Increment
Budget
Actual
$ 2,760,785 $ 2,899,787
145,360
144,278
410,238
236,624
250,000
161,358
461,320
434,655
30,000
1,000
1,766
4,110,602
7,919,305
4,128,468
EXPENSES
Supplies
Project Contractual Services
Administrative Contractual Services
Planning Services
Professional Development
Local Business Expense
Memberships
Heartside District and Park Support
Dead Sea Scrolls Exhibition Support
Areaway Removal Incentive Program
Building Re-use Incentive Program
Streetscape Improvement Incentive
DID Maintenance Equipment Grant
Published Notices
Asset Maintenance Services
Insurance Premiums
Property Rental - Parking Lots
Sub-total - Other services
50,000
50,000
Land Acquisition
Signage Purchases and Installation
Shuttle Purchase
Construction in Progress
Sub-total Minor Capital
-
-
Debt Service - Principal
Debt Service - Interest
Sub-total Debt Service
-
-
Wages and Benefits
-
-
TOTAL EXPENSES
50,000
EXCESS / (DEFICIT)
$
-
392
1,924
42,593
110,898
155,807
155,807
$ (55,029) $
-
-
500
450,000
120,250
42,658
400
135,000
100,000
100,000
200,000
100,000
800
1,249,608
21
22,618
53,947
6,682
50
395
74,495
20,201
132,771
498
311,678
-
-
926,000
475,000
80,000
4,425,568
5,906,568
73,389
80,000
187,722
341,111
613,400
109,275
722,675
574,706
54,408
629,114
40,454
23,042
7,919,305
1,304,945
1,985,000
2,846,543
4,831,543
4,831,543
-
550,000
1,462,578
2,012,578
2,012,578
$ 3,406,940
$
-
$ 2,823,523
ddastmts-mar03.xls jmw 04032003
STATEMENT D
DOWNTOWN DEVELOPMENT AUTHORITY
Statement of Current Project Expenses
March 2003
PROJECT
CODE
70C416
70C515
70C501
70C522
70C510
70C412
70C514
70C536
70C528
70C535
70C532
70C511
70C504
70C546
70C508
70C519
70C513
70C518
70C545
70M538
70M530
70C541
70C523
70C543
70C521
70C540
70C542
70C539
70C533
70C502
70M526
70C531
70C516
70M547
70C544
70M534
70C537
PROJECT TITLE
Monroe Center - Monroe to Ottawa
Grand Center Expansion
Support for District Development
Pedestrian Streetscape Improvements
Building Re-use Incentive Program (BRIP)
Voices and Visions Program
S-Curve Related Work
Ionia Avenue 3 - Bartlett to Wealthy
Parking and Transportation Program
Ionia Avenue 2 - Cherry to Bartlett
Grandville Avenue - Weston to Oakes
Infrastructure Reserve
Wayfinding Program / Trailblazing Signs
Land Acquisition for Parking
Downtown Lighting & Signal Improvements
Louis Campau Promenade Phase 2
Ionia Off Ramp
Areaway Fill Program
Louis Street - Ottawa to Fulton
Streetscape Improvement Incentive Program
Public Transit Millage Improvements
Pearl Street - Monroe to Waters Building
Shuttle Bus Replacements
Cherry Street 2 - Commerce to Division
Grandville Avenue - Oakes to Cherry
Louis / Ottawa Parking Ramp Walkway
Lyon Street - Monroe to Ottawa Avenue
Downtown Alliance Equipment Storage
Re-locate Power Lines South of Fulton
River Edge - South of Fulton
Heartside Park Support
Cherry Street - Ionia to Commerce
Commemorative Repairs
Dead Sea Scrolls Exhibition Support
Louis Campau Promenade - Restore Phase 1
Heartside Main Street Phases 1 and 2
Ionia Avenue 4 - Goodrich to Wealthy
TOTAL
Project
Budget
$ 7,150,000
5,000,534
2,000,000
1,950,000
1,705,447
1,500,000
1,426,315
1,344,377
1,200,000
1,163,670
1,100,000
1,078,897
934,242
926,000
924,992
600,000
565,022
545,942
500,000
500,000
419,568
350,000
280,000
271,000
250,000
230,000
183,000
179,000
160,000
158,086
150,000
116,500
100,000
100,000
100,000
38,500
5,623
$ 35,201,092
Month
$
82,771
2,259
3,268
10,736
20,201
15
18,460
1,921
39,526
$
179,157
EXPENSES
Fiscal Year
$
326
132,771
3,650
8,033
3,348
78,236
20,201
15
80,000
73,930
1,934
31,422
74,495
$
508,361
All Years
$ 7,104,968
534
368
2,500
1,110,037
772,466
1,128,924
10,123
90,000
815,948
328,897
62,590
78,236
63,927
575
522,716
63,868
35,000
289,532
80,000
134,942
7,994
6,606
84,003
74,495
2,600
36,561
5,623
$ 12,914,033
Available
Budget
$
45,032
5,000,000
1,999,632
1,947,500
595,410
727,534
297,391
1,334,254
1,110,000
347,722
1,100,000
750,000
871,652
847,764
861,065
599,425
42,306
482,074
500,000
465,000
419,568
60,468
200,000
271,000
250,000
230,000
48,058
179,000
160,000
150,092
150,000
109,894
15,997
25,505
97,400
1,939
$ 22,292,682
STATEMENT E
DOWNTOWN DEVELOPMENT AUTHORITY
Summary of Paid Invoices
March 2003
Source
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Unrest
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Local
Unrest
Local
Local
Local
Local
Debt
Local
Local
Local
Local
Local
Local
Local
Vendor
Huizen Property LLC
C.M. Anthony LLC
SecurAlarm Systems Inc
Diversco Construction
Wise Business Center LLC
Control Screening LLC
Defoe Family Trust
City of Grand Rapids - Planning
Bazen Electric Company
Dickinson Wright
Metrolume Inc
Dickinson Wright
Law Weathers & Richardson
Jeffrey Corbin Design
Grand Rapids - General Admin
STS Consultants Ltd
Law Weathers & Richardson
Law Weathers & Richardson
Williams & Works
Dickinson Wright
Dickinson Wright
Dickinson Wright
Dickinson Wright
Control Screening LLC
Dickinson Wright
Dickinson Wright
Law Weathers & Richardson
Williams & Works
Dickinson Wright
Dickinson Wright
Dickinson Wright
Law Weathers & Richardson
Dickinson Wright
Fifth Third Bank
Dickinson Wright
The Herald Co
Dickinson Wright
Dickinson Wright
Dickinson Wright
City of Grand Rapids - IT
City of Grand Rapids - Streets
Local - Local Tax Increment
Purpose / Project
Building Re-use Incentive Program
Building Re-use Incentive Program
Dead Sea Scrolls Exhibition
Lyon Street - Monroe to Division
Areaway Removal Incentive Program
Dead Sea Scrolls Exhibition
Areaway Removal Incentive Program
Administration
Dead Sea Scrolls Exhibition
Land Acquisition
Dead Sea Scrolls Exhibition
Administration
Land Acquisition
Wayfinding Program
Project & Fixed Asset Maintenance
Ionia - Bartlett to Wealthy
Land Acquisition
Land Acquisition
Cherry St - Ionia to Commerce
Administration
Administration
Administration
Administration
Dead Sea Scrolls Exhibition
Administration
Administration
Cherry St - Ionia to Commerce
Cherry St - Ionia to Commerce
Unrestricted Revenue
Land Acquisition
Administration
Land Acquisition
Land Acquisition
1993 City County Bldg Auth bonds
Administration
Administration
Land Acquisition
Administration
Administration
Administration
Pearl St - Monroe to Waters Bldg
Unrest = Unrestricted Fund
Description
Partial support for rehabilitation
Partial support for rehabilitation
Progress Pmt 1 - install security system
Progress payment no. 5
212 - 216 Grandville Ave areaway removed
Rental of walk-thru metal detectors
114 Monroe Center areaway removed
Staff services from 7/1/2002 - 12/31/2002
Electrical services for exhibition security
Legal services re: Seward / YMCA project
Neon for exhibition
Legal services re: Wurzburg/Mutual Home
Legal services re: DeVries prop purchase
Design and professional fees
Support services - 01/01 - 03/31/03
Soil borings
Legal services re: DeVries prop purchase
Legal services re: DeVries prop purchase
Engineering services
Legal services re: administrative matters
Legal services re: ITP options
Legal services re: parking oper agreement
Legal services re: potential bond refunding
Handwand metal detector
Legal services re: administrative matters
Legal services re: administrative matters
Legal services re Cherry Street appraisal
Surveying and drafting
$
Legal services re: billboard lease agreement
Legal services re: Seward / YMCA project
Legal services re: Wurzburg/Mutual Home
Legal services re: DeVries prop purchase
Legal services re: Seward / YMCA project
Paying agent fee
Legal services re: Dash South Lot / ITP
Legal notice re liquor license public hearings
Legal services re: Seward / YMCA project
Legal services re: parking oper agreement
Legal services re: Dash South Lot / ITP
Telephone services - February 2002
Electrical meter installation
TOTAL MARCH 2003 PAYMENTS
Debt = Debt Increment Fund
$
Amount
60,000.00
22,771.01
19,800.00
18,460.34
13,009.00
9,800.00
7,192.00
6,682.00
5,243.60
4,103.80
4,050.00
3,404.50
3,289.80
3,268.04
3,164.00
2,258.80
1,307.90
964.30
926.50
854.00
798.00
714.00
658.00
632.75
602.00
560.00
531.45
463.50
392.00
392.00
350.00
327.40
280.60
225.00
154.00
102.60
70.00
42.00
42.00
32.00
15.18
197,934.07
DATE:
April 3, 2003
TO:
Verne Barry, Chair
Downtown Development Authority
FROM:
Jana Wallace
Administrative Analyst – Fiscal Services
SUBJECT:
REQUEST FOR PROPOSALS TO PROVIDE AUDIT SERVICES
ANNUAL FINANCIAL REPORT
On February 7, 2003, a Request for Proposal (RFP) was mailed to fifteen accounting firms.
This RFP solicited qualifications and quotations for governmental auditing services to be
rendered to the City and eight related Authorities/Systems, including the Downtown
Development Authority. Proposals were received from four respondents. The proposals were
opened and read on February 25th at 4:00 p.m. A bid tabulation, covering the City and each of
the units which comprise the total “reporting entity”, is attached as general information.
The RFP included a description of the factors which would be utilized in considering and
making a recommendation for the Audit Services Contract. Factors included qualification,
professional personnel, and price, as well as the awarded firm’s ability to efficiently complete
the City’s audit concurrently with those of the related Authorities/Systems. A copy of the
criteria is attached immediately following this correspondence.
Following opening of the bid proposals and tabulation of financial quotations contained therein,
staff met to review and compare each proposal. On the basis of the proposals submitted, it is
the opinion of staff that the submission of BDO Seidman, LLP contains best bid for the
Authority. The firm of PricewaterhouseCoopers, LLP previously held the audit services
contract. For purposes of comparison, these contracts were last bid in 1999 at which time the
City entered into a contract for a total three-year, not to exceed amount of $333,000. The
currently bid total fee of $290,095 represents an overall reduction of 13% when compared to
the prior three-year bid price.
On the basis of the proposals submitted, it is my opinion that the submission of BDO Seidman,
LLP, contains the best bid for the Authority. It is recommended that award of an Audit
Services Contract be given to the firm of BDO Seidman, LLP. The attached resolution
authorizes execution of such a contract.
Attachments
/klm
CITY OF GRAND RAPIDS, MICHIGAN
TABULATION OF AUDIT SERVICE BIDS
THREE YEAR CONTRACT - FISCAL YEARS ENDING 2003 TO 2005
FEBRUARY 25, 2003
ENTITY
2.3 A (1-3)
City of Grand Rapids
2.3 B
Grand Rapids Building Authority
2.3 C
BDO
HUNGERFORD,
PLANTE
PRICEWATER-
SEIDMAN
ALDRIN
MORAN
HOUSECOOPERS
241,652
$ 298,240
13,050
13,560
6,790
8,700
City/County Building Authority
11,470
8,172
6,790
8,700
2.3 D
Downtown Development Authority
13,050
11,567
6,620
8,700
2.3 E
Monroe North TIFA
10,950
7,370
5,400
6,600
2.3 F
General Retirement System
13,050
15,446
17,280
20,400
2.3 G
Police/Fire Retirement System
13,050
15,308
17,280
20,400
2.3 H
Brownfield Redevelopment Authority
10,650
6,525
5,400
6,600
2.3 I
Smart Zone LDFA
13,050
6,525
5,400
8,200
$ 369,200
$
398,000
$
$
2,300
2.3A (4)
Due Diligence (1st yr./each)
Late bid:
The Rehmann Group
Declined to bid:
Crowe,Chizek
Hoffman, Steensma
DeLong & Brower PC
Deloitte & Touche
Adamy & Company PC
No response:
DeHoek & Roy PLLC
Coda & Morgan PC CPA's
Beene Garter LLP
Prangley Marks LLP
Ferris Busscher & Zwiers PC
$ 191,775
$
$ 290,095
$
326,125
$
$
680
2,000
1,750
$
309,700
Section 4.0
CRITERIA FOR SELECTION
All quotations received will be evaluated by the City of Grand Rapids for the purpose of
selecting the auditor with whom a contract(s) may be approved. The following factors will
be considered in making the selection:
4.1
Qualification This criteria includes the ability of the contractor to meet the terms of
the RFP, and the quality, relevancy, and recency of similar assignments completed
or undertaken by the contractor.
4.2
Professional Personnel This criteria refers to the competence of professional
personnel who would be assigned to the job by the contractor. Qualifications of
professional personnel will be measured by education and experience, with
particular emphasis on experience on similar projects to that described in the RFP.
Emphasis will be placed upon the qualifications of the personnel. The City
reserves the right to personally interview any or all personnel identified in the
proposal.
4.3
Price Price is not the only qualification for awarding this contract for professional
services. The City's judgment of the auditors’ experience and other qualifications
will also be relevant. Recognizing that each individual board or commission will
require separate contracts, a table has been prepared (following several pages) to
set hourly billing rates and estimated staff hours, by fiscal year. The suggested
"Audit Program Classifications" may be revised in your proposal if required to
correspond to your own individual billing practices.
AGREEMENT TO PROVIDE AUDIT SERVICES
THIS AGREEMENT, made this _____ day of _______, 2003 by and between THE
CITY OF GRAND RAPIDS DOWNTOWN DEVELOPMENT AUTHORITY, a Michigan
Municipal Corporation, 300 Monroe Avenue, N.W., Grand Rapids, Michigan, hereinafter
referred to as the "Authority," and BDO Seidman, LLP, registered to practice in the State of
Michigan as Certified Public Accountants, 99 Monroe NW, Suite 800, Grand Rapids,
Michigan 49503-2698, hereinafter referred to as the "Auditor."
WITNESSETH:
WHEREAS, Act 2, Public Acts of 1968, Sec. 5(1), as amended, requires local units of
government to have an annual audit of its financial records, accounts and procedures.
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
1.
The Auditor shall conduct an examination of the financial records, accounts
and procedures of all funds, financial operations, and agencies under the
administration and control of the Authority for each of the fiscal years ending
June 30, 2003 through June 30, 2005 inclusive.
2.
The Auditor's examination shall meet the requirements of Act 2, P.A. 1968,
as amended, the Bulletin for Audits of Local Units of Government in
Michigan, and be in accordance with generally accepted auditing standards,
as set forth by the American Institute of Certified Public Accounts, for the
purpose of expressing an appropriate opinion on the examination of the
financial statements.
3.
The examination shall begin as soon after the signing of this contract as
shall be convenient to the Auditor and shall be completed with the Auditor's
opinion and letter of recommendations issued not later than November 30th
of each year or, as mutually agreed by the parties, to extend for up to an
additional thirty (30) days beyond this date.
4.
The Authority shall complete and balance all accounts and prepare financial
statements and schedules for all funds, operations and agencies to be
examined by the Auditor, and shall provide the Auditor with space deemed
adequate by the Auditor for the efficient conduct of the examination. The
Authority shall provide the Auditor, for his use and retention, with copies of
these financial statements and schedules and shall provide the Auditor with
trial balances of the various funds, operations and agencies in a form
acceptable to the Auditor. The Auditor shall be responsible for the typing
and proofing of the financial reports. The Authority will provide the auditor
with a reasonable number of printed financial reports.
1
5.
The Authority agrees that the working papers of the Auditor will be made
available to authorized representatives of the State Treasurer upon formal
request by the State Treasurer or his deputy.
6.
The Authority agrees to pay the Auditor, for services rendered, based on a
standard hourly billing for each auditor classification. It is expressly
understood and agreed that in no event shall the total compensation and
reimbursement, if any, to be paid hereunder exceed the maximum sum of
$13,050 for all of the services required based on the following annual
apportionment:
General
Audit Requirements
Audit Period
For the year ending June 30, 2003
$4,250
For the year ending June 30, 2004
$4,350
For the year ending June 30, 2005
$4,450
Should unusual conditions arise whereby the services of the Auditor are
deemed necessary beyond the extent of the work required in the preceding
sections, such unusual conditions shall be referred to the Authority who shall
instruct said Auditor concerning such additional services.
7.
The Authority authorizes the Auditor to immediately disclose any and all
findings of suspected fraud and/or embezzlement to the Deputy State
Treasurer in charge of the Local Audit Division of the State Department of
Treasury, although the ordinary examination is not specifically designed to
detect fraud or other defalcations.
8.
The audit report and all other reports made by the Auditor shall be submitted
to the trustees of the Authority by sending copies thereof to them at their
respective individual office addresses.
9.
The Auditor will review with the Authority or its representative the audit
schedule identifying the records to be audited and the procedures to be
followed.
10.
All recommendations concerning accounting principles, systems, procedures
and methods shall be discussed with the Authority or its representative prior
to the issuance of the audit report.
11.
The "Proposal to Serve as Independent Certified Public Accountants," dated
February 25, 2003 is incorporated by reference as part of this basic
agreement.
2
12.
Either party to this Agreement may terminate the Agreement by written
notice to the other party on or before January 1st of the fiscal year for which
the next audit is to be performed.
13.
The Auditor agrees to hold the Authority harmless from any and all physical
injury to the person or damage to the property of, or any loss or expense
incurred by, any employee of the Authority which arises out of or pursuant to
the Auditor's performance under this Agreement. The Auditor shall also hold
the Authority harmless from any claims by the Auditor's employees arising
out of, or pursuant to, the Auditor's and/or employees performance under
this Agreement. The Auditor agrees to hold the Authority harmless for any
injuries to persons, or any injury, loss, expense, or damage to property
caused by the Auditor's employees.
14.
The Auditor agrees not to discriminate against any employee or applicant for
employment, to be employed in the performance of such Agreement, with
respect to her/his hire, tenure, terms conditions or privileges of employment,
or any matter directly or indirectly related to employment, because of her/his
race, color, religion, national origin, age, sex, height, weight or marital status.
Breach of this covenant may be regarded as material breach of the
Agreement as provided for in Act 453 of the Public Acts of 1976, as
amended, entitled "Michigan Civil Rights Act." The Auditor further agrees to
take affirmative action in hiring, training, and promoting minority group
persons and women to bring about reasonable representative integration of
its employees. For the purposes of this Agreement, a "minority group
person" is defined as any person of Native American, Asian American,
Hispanic or Black descent. The Auditor further agrees to review and
examine with the City relevant employment data and other information
pertaining to its hiring practices. The Auditor further agrees that it will
require similar covenants from any sub-contractor under this Agreement.
3
IN WITNESS WHEREOF, the respective parties have caused this Agreement to be
executed pursuant to the authority of the respective parties.
WITNESSETH:
CITY OF GRAND RAPIDS
DOWNTOWN DEVELOPMENT AUTHORITY,
a Michigan Municipal Corporation
By________________________________
Chair
Attest______________________________
Secretary
BDO SEIDMAN, LLP
By_________________________________
4
DATE:
March 26, 2003
TO:
Jay Fowler, Executive Director
Downtown Development Authority
FROM:
Bill Cole, P.E.
City Engineer
SUBJECT:
Engineering Services for DASH 9 Parking Lot
At the March 12, 2003 Downtown Development Authority (DDA) meeting, due to the
aggressive construction schedule for the above-captioned project, the DDA authorized the City
Engineer’s Office to proceed with certain advance technical investigations of the site, including
topographical surveys and geotechnical studies, at an estimated cost of $20,000. Concurrent
with this technical investigations work, Engineering staff negotiated scope of work and costs
for preliminary design and final design engineering services with Walker Parking Consultants
(Walker). Walker is currently under term contract with the City for various types of parking and
parking-related engineering services.
In an effort to expedite the preliminary design phase services, the City’s Parking Services
Department authorized $12,000 for Walker to provide an initial concept/functional parking
plan, which is typically part of the preliminary design phase services. It is requested that
the DDA reimburse the City’s Parking Services Department the aforesaid costs for the initial
concept/functional parking plan and approve an agreement with Walker for professional
engineering services in connection with this project, and authorize the Executive Director of
the DDA to execute the same after approval by the DDA’s legal counsel. Also, it is requested
that the DDA authorize Walker to proceed with the preliminary and final design phase services
for this project at an estimated cost of $63,250 with total expenditures not to exceed $76,000,
which covers the costs of the aforesaid professional engineering services, an allowance for
costs incurred to date as reimbursement to the City’s Parking Services Department for the
initial concept/functional parking plan, administration, and contingencies. Further, it is
requested that staff (City Engineer’s Office and the Executive Director of the DDA) be
authorized to negotiate changes in the scope of services and to execute change orders for
the same, provided that such change orders are within the total authorized not-to-exceed
expenditures as referenced above. It is anticipated that the construction phase services to be
provided by Walker will be presented to the DDA for consideration concurrently with the award
of the construction contract for this project. As the Executive Director pointed out in his March
6, 2003 letter to the DDA regarding this project, there is a slight risk that the DDA will choose
not to proceed with the acquisition of the property and the construction of the project due to
unknown financial, environmental, or other conditions; however, there are no known conditions
at this time.
BC/DH/ADK/dv
cc:
Eric DeLong
Pat Bush
t:\cd03\dda\Dash 9 lot
Pam Ritsema
Barbara Singleton
040903
Greg Krcmarik
Chuck Henderson
#03019
DATE:
March 27, 2003
TO:
Downtown Development Authority
FROM:
Jay Fowler
DDA Executive Director
SUBJECT: Reconstruction of Louis Street and Improvements to Monroe Ave.
Attached is a request from the City Engineer requesting approval of the DDA’s share of a
multifaceted construction project. This one project accomplishes three goals contained within
the DDA’s current year priority plan.
1. The reconstruction of Louis Street, from Ottawa to Fulton with full streetscape
improvement.
2. The replacement of several blocks of old “Metro-module” street light and traffic signal poles
with new decorative facilities.
3. The extension of the “smart street” to complete an important upgrade to downtown
telecommunication facilities.
I recommend approval of this request. The amount requested can be accommodated within
our current priority plan, using three categories of funds: Louis Street, lighting and signal
improvements, and miscellaneous infrastructure improvements.
DATE:
March 28, 2003
TO:
Jay Fowler, Executive Director
Downtown Development Authority
FROM:
Bill Cole, P.E.
City Engineer
SUBJECT:
Reconstruction of Louis Street from Ottawa Avenue to Fulton Street
and Monroe Avenue from Fulton Street to Pearl Street, and Street
Lighting and Telecommunications in Louis Street from Monroe
Avenue to Ottawa Avenue and in Ionia Avenue from Fulton Street
to Louis Street
The above-captioned project generally consists of the reconstruction of Louis Street including
the replacement of the watermain and sanitary sewer and the installation of street
lighting/telecommunication ducts. The project also includes the resurfacing of Monroe Avenue
including the replacement of traffic signals and street lighting, and the installation of street
lighting/telecommunication ducts. Additionally, the project includes installation of street
lighting/telecommunication ducts in Ionia Avenue, and drainage/areaway improvements at
Police Headquarters at 1 Monroe Center (Louis Street side).
Bids were received on March 18, 2003 by the City Engineer’s Office for this project. The
Consultant Engineer’s (Fishbeck, Thompson, Carr & Huber, Inc. - FTCH) estimate is
$1,544,841.75 and Dykema Excavating, Inc. (Dykema) submitted the low bid of $1,225,369.10.
Dykema’s bid did not meet the MBE participation goal, however, it did meet the WBE goal.
Dykema submitted a request for waiver in regards to MBE participation. The City’s Equal
Opportunity Department (EOD) has reviewed Dykema’s request for waiver and denied the
same. Dykema has a right to appeal EOD’s decision to the Community Relations Commission,
as well as to the City Commission. Diversco Construction Company, Inc. (Diversco) submitted
the second low bid of $1,294,530.98. Diversco’s bid did meet the MBE and WBE participation
goals. At the time of the preparation of this letter, Dykema’s appeal process and a
determination by the City Commission as to award of contract has not yet been finalized.
However, based on the scope of work, the overall cost participation by the DDA would not
vary significantly for either the Dykema or Diversco bid.
Pending the City Commission’s final decision as to the successful bidder, the total project
costs will be approximately $2.1 million, which includes the costs of the construction contract,
public information program, street lighting/traffic signals/signs force account work, FTCH’s
construction engineering/inspection phase services, the DDA’s share of FTCH’s design
engineering phase services, testing, administration, and an approximate twelve percent
allowance for contingencies. FTCH’s services are being provided pursuant to its term contract
with the City. The DDA’s estimated share of costs is $1,010,000, and the remaining project
costs will be financed by the Grand Rapids Building Authority, Water System Fund, Sewer
System Fund, and Street Fund. The portion of the project costs financed by the DDA includes
a portion of the reconstruction of Louis Street, a portion of the street lighting/ telecommunications ducts, and the replacement of the metro module traffic signals and street lights with
ornamental traffic signals and street lights.
The award of the construction contract by the City Commission is contingent upon the
concurrence by the DDA of said award of contract and authorization of its share of project
costs. It is requested that the DDA concur in the award of the contract to the contractor
(Dykema or Diversco) that the City subsequently selects and authorize its share of costs
estimated in the amount of $1,010,000 for the various project costs as referenced above. Also,
as the project proceeds through construction, it is requested that staff (City Engineer’s Office
and the Executive Director of the DDA) be authorized to negotiate changes in the scope of
work in connection with this project and to execute the necessary change orders for the same,
provided that such change orders are within the total authorized not-to-exceed expenditures
as referenced above.
BC/RDV/dv
Attachment
cc:
Eric DeLong
Ingrid Scott-Weekley
Alex Thomas
James Jackson
Pam Ritsema
Pat Bush
Don Spencer
Corky Overmyer
t:\cd03\dda\louis estimate memo
040903
#01023
DATE:
March 27, 2003
TO:
Downtown Development Authority
FROM:
Jay Fowler
DDA Executive Director
SUBJECT: Downtown Planning Process
Attached is a request from the City’s Business Advocate, Susan Shannon requesting that the
DDA provide the financial support necessary for participation in a new downtown planning
process. I believe that this is an appropriate time for the DDA to take the lead in preparing a
new action plan for downtown, for the following reasons:
1. It has been ten years since the completion of Voices & Visions, our current master plan for
downtown. Due to changes in markets, development patterns and cultural preferences,
most master plan documents need to be updated within five to ten years of their completion
to remain relevant.
2. Many of the projects recommended by Voices & Visions have been completed or are now
nearing completion. This process will help the DDA identify new projects that will
strengthen Downtown as a regional center.
3. The process will include the opportunity to get input from the community and to generate
new ideas and enthusiasm.
4. The Michigan Economic Development Corporation has created a matching grant program
for this process. The firm selected by the State to prepare the blueprint is well known for its
success in preparing a market-driven, action oriented plans for downtown improvement.
I recommend approval of this request. The amount request can be accommodated within our
current priority plan. This new program offered by the State of Michigan will allow the DDA to
accomplish this work while leveraging additional resources. If our grant request is successful,
we will return to the DDA at a future meeting to review the full extent of the work plan. If our
grant application is not successful, I would expect to return to the DDA with an alternative
proposal to undertake a new planning initiative.
DATE:
March 27, 2003
TO:
Jay Fowler, Executive Director
Downtown Development Authority
FROM:
Susan Shannon, Business Advocate
Economic Development Office
SUBJECT:
Blueprints for Michigan Downtown
The Michigan Economic Development Corporation has initiated a program called “Blueprints
for Michigan’s Downtowns 2003.” They have hired a firm Hyatt Palma, which specializes in the
economic enhancement of downtowns to create action strategies for ten Michigan
communities. As you recall, the DDA sponsored an Economic Summit with Hyatt Palma in
1998, which was attended by business leaders, property owners and government officials.
The result of the summit, including a list of recommendations, is summarized in the attached
report.
The State is seeking competitive applications from interested communities to be selected as
one of the ten downtowns provided these grants. A 50% match is required.
I believe the services of Hyatt Palma would help us address several needs for the continued
growth and revitalization of downtown, such as:
1.
2.
An Office Market Analysis to identify an appropriate office market. This is of
particular concern to BOMA, which has formed a committee to research new
office markets for Grand Rapids.
A Marketing Plan, which among other things could help us organize and promote
a downtown entertainment district.
The result of this effort would be a five to ten year strategic business plan for downtown, which
would outline a specific actions to guide implementation of these strategies.
I would like to present this opportunity to the Downtown Development Authority and request
their participation and financial support for the matching portion ($32,500) of the “Blueprints for
Michigan’s Downtowns” grant.
SS/saw
Shan:Memo:Blueprints for Mich Downtown
Attachment
MEETING OF THE
CITY OF GRAND RAPIDS
TAX INCREMENT FINANCE AUTHORITY
Wednesday, April 9, 2003 - 9:00 a.m.
(or immediately following DDA meeting)
Room 601, City Hall
AGENDA
1.
Call to Order
2.
Approval of Minutes of April 10, 2002 (enclosed)
3.
Comments from Audience Regarding Agenda Items
4.
Election of Officers
5.
TIFA financial reports for March 2003 (enclosed)
6.
Contract for professional auditing services (enclosed)
7.
TIFA staffing (enclosed)
8.
Request from Monroe North Business Association (enclosed)
9.
Public Comment
10.
Adjournment
Meeting of the Tax Increment Financing Authority
April 10, 2002
1.
Call to Order - The meeting was called to order at 8:56 a.m. by Chairman Verne Barry.
2.
Attendance
Present: Verne Barry, John Canepa, David Cassard, Kayem Dunn, Howard Hansen, John Logie, Jeff
Steinport, Tom Wesholski, Casey Wondergem
Others Present: Richard Wendt (Special Counsel), Robert J. White (City staff), Karen Mendez
(Recording Secretary)
3.
Approval of Minutes
Motion: Tom Wesholski, supported by John Canepa, moved approval of the minutes of the
September 12, 2001 meeting of the TIFA as presented. Motion carried.
4.
Comments from Audience Regarding Agenda Items - None
5.
Election of Officers
Mayor Logie suggested the officers of the Tax Increment Financing Authority refle ct the leadership
of the Downtown Development Authority.
Motion: Tom Wesholski, supported by Kayem Dunn, moved to elect Verne Barry as Chairperson
and David Cassard as Vice-Chairperson of the TIFA.. Motion carried unanimously.
7.
Financial Statements for the Year Ended June 30, 2001
Mr. White presented the financial statements for the year ended June 30, 2001, which he explained
are the unqualified opinion from the auditors. The TIFA is carrying a debt of $1.4 million, which is
related to floodwall improvements. Tax increments will pay this debt.
Motion: Dave Cassard, supported by Casey Wondergem, moved to accept the financial statements
for the year ended June 30, 2001 as presented. Motion carried.
8.
Audit Services Contract – Request for Extension of Services
Mr. White explained the TIFA had a three-year contract with PricewaterhouseCoopers to perform
audit services. He recommends the TIFA extend this contract for a one-year period. Mr. White
believes the rate proposed by PricewaterhouseCoopers is a reasonable one.
Motion: Tom Wesholski, supported by Mayor Logie, moved to authorize the Chairman to execute
the agreement, as presented by PricewaterhouseCoopers, to extend the current audit services
agreement for a one-year period. Motion carried.
8.
Comments
Mr. Barry mentioned there was a very complimentary article in the magazine Metropolis regarding
the Maya Lin-designed Rosa Parks Circle park. Mayor Logie commented he is in possession of the
magazine article and is in the process of having copies made.
TIFA Meeting April 10, 2002
Page 1 of 2
9.
Information
Mr. Wendt informed the group that earlier this year the TIFA was named as a defendant, along with
the City of Grand Rapids and the City Commission, in a lawsuit. The lawsuit is related to a Freedom
of Information Act request filed by Mr. William Tingley of the Local Area Watch group, with
regards to the Berkey & Gay building. Mr. Wendt believes the lawsuit is without merit and that the
TIFA is not an appropriate party to the suit.
10.
Adjournment - The meeting was adjourned at 9:04 a.m.
TIFA Meeting April 10, 2002
Page 2 of 2
DATE:
April 2, 2003
TO:
Jay Fowler
Monroe North Tax Increment Financing Authority Executive Director
FROM:
Jana M. Wallace
Fiscal Services Analyst
SUBJECT: March 2003 Financial Statements
Attached are the Monroe North Tax Increment Financing Authority financial statements for the
period ending March 31, 2003.
These statements include the following:
Statement A: Balance Sheet
Statement B: Statement of FY03 Revenues and Expenses
Statement C: Revenue and Expenditure Details
Please call me at 456-4514 if you have any questions.
Attachments
cc:
Assistant City Manager – Fiscal Services
STATEMENT A
MONROE NORTH
TAX INCREMENT FINANCING AUTHORITY
Balance Sheet
March 31, 2003
ASSETS
Pooled cash and investments
$
Taxes receivable
General fixed assets
Future tax increment revenues anticipated
TOTAL ASSETS $
744,335
(32,119)
3,754,196
1,353,000
5,819,412
LIABILITIES AND FUND EQUITY
Liabilities
Contracts payable
TOTAL LIABILITIES $
1,353,000
1,353,000
Fund balance / equity:
Investments in general fixed assets
$
Reserve for encumbrances
Reserve for authorized projects
TOTAL FUND EQUITY $
3,754,196
1,689,673
(977,457)
4,466,412
TOTAL LIABILITIES & FUND EQUITY
5,819,412
$
Note 1: Encumbrance established by Office of the Comptroller for
property tax payment reimbursements related to the Berkey and Gay
development agreement with 940 Monroe LLC. Reimbursements
shall not exceed $1,750,000 and are limited to the calendar years
beginning 2000 and ending 2011.
mntifmthlystmts.xls jmw 04022003
1
STATEMENT B
MONROE NORTH
TAX INCREMENT FINANCING AUTHORITY
Statement of Revenues and Expenses
July 1, 2002 - March 31, 2003
REVENUES
Taxes - Assessment
Interest on Investments
$
TOTAL REVENUES $
311,562
9,060
320,622
EXPENSES
Contractual Services
$
Development Agreement - 940 Monroe LLC
Debt Service - Principal
Debt Service - Interest
TOTAL EXPENSES $
3,858
60,327
48,600
65,865
178,650
EXCESS / (DEFICIT)
141,972
$
STATEMENT C
MONROE NORTH TAX INCREMENT FINANCING AUTHORITY
Revenue and Expenditure Details
July 1, 2002 - March 31, 2003
Source
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Interest on investments
Vendor
County of Kent - Drain Commission
County of Kent - Drain Commission
County of Kent - Drain Commission
County of Kent - Drain Commission
Dickinson Wright
940 Monroe LLC
REVENUES
Description
Amount
2002 Summer Captured Taxes - real property
$ 183,647.14
2002 Summer Captured Taxes - personal property
45,175.14
2002 Winter Captured Taxes - real property
92,182.65
2002 Winter Captured Taxes - personal property
22,675.90
TIFA's share of refunded taxes due to order changes - Autodie real property
(11,704.70)
TIFA's share of refunded taxes due to order changes - Grand X-Ray personal
(896.79)
TIFA's share of refunded taxes due to order changes - Autodie Summer 2002 real
(12,994.44)
TIFA's share of refunded taxes due to order changes - Autodie Winter 2002 real
(6,522.63)
SUB- TOTAL PROPERTY TAX REVENUE $ 311,562.27
Funds invested by City Treasurer
9,060.06
TOTAL REVENUES $ 320,622.33
EXPENDITURES
Purpose / Project
Floodwalls Project - Phase 1
Floodwalls Project - Phase 2
Floodwalls Project - Phase 1
Floodwalls Project - Phase 2
Administration
Berkey & Gay Redevelopment
Description
Amount
Series 1997 - principal payment
$ 35,400.00
Series 2000 - principal payment
13,200.00
Series 1997 - interest payment
43,642.94
Series 2000 - interest payment
22,222.34
Local Area Watch litigation
3,858.10
2000/01/02 property tax reimbursements
60,326.59
TOTAL EXPENDITURES $ 178,649.97
DATE:
April 3, 2003
TO:
Verne Barry, Chair
Monroe North Tax Increment Financing Authority
FROM:
Jana Wallace
Administrative Analyst – Fiscal Services
SUBJECT:
REQUEST FOR PROPOSALS TO PROVIDE AUDIT SERVICES
ANNUAL FINANCIAL REPORT
On February 7, 2003, a Request for Proposal (RFP) was mailed to fifteen accounting firms.
This RFP solicited qualifications and quotations for governmental auditing services to be
rendered to the City and eight related Authorities/Systems, including the Monroe North Tax
Increment Financing Authority. Proposals were received from four respondents. The
proposals were opened and read on February 25th at 4:00 p.m. A bid tabulation, covering the
City and each of the units which comprise the total “reporting entity”, is attached as general
information.
The RFP included a description of the factors which would be utilized in considering and
making a recommendation for the Audit Services Contract. Factors included qualification,
professional personnel, and price, as well as the awarded firm’s ability to efficiently complete
the City’s audit concurrently with those of the related Authorities/Systems. A copy of the
criteria is attached immediately following this correspondence.
Following opening of the bid proposals and tabulation of financial quotations contained therein,
staff met to review and compare each proposal. On the basis of the proposals submitted, it is
the opinion of staff that the submission of BDO Seidman, LLP contains best bid for the
Authority. The firm of PricewaterhouseCoopers, LLP previously held the audit services
contract. For purposes of comparison, these contracts were last bid in 1999 at which time the
City entered into a contract for a total three-year, not to exceed amount of $333,000. The
currently bid total fee of $290,095 represents an overall reduction of 13% when compared to
the prior three-year bid price.
On the basis of the proposals submitted, it is my opinion that the submission of BDO Seidman,
LLP, contains the best bid for the Authority. It is recommended that award of an Audit
Services Contract be given to the firm of BDO Seidman, LLP. The attached resolution
authorizes execution of such a contract.
Attachments
/klm
CITY OF GRAND RAPIDS, MICHIGAN
TABULATION OF AUDIT SERVICE BIDS
THREE YEAR CONTRACT - FISCAL YEARS ENDING 2003 TO 2005
FEBRUARY 25, 2003
ENTITY
2.3 A (1-3)
City of Grand Rapids
2.3 B
Grand Rapids Building Authority
2.3 C
BDO
HUNGERFORD,
PLANTE
PRICEWATER-
SEIDMAN
ALDRIN
MORAN
HOUSECOOPERS
241,652
$ 298,240
13,050
13,560
6,790
8,700
City/County Building Authority
11,470
8,172
6,790
8,700
2.3 D
Downtown Development Authority
13,050
11,567
6,620
8,700
2.3 E
Monroe North TIFA
10,950
7,370
5,400
6,600
2.3 F
General Retirement System
13,050
15,446
17,280
20,400
2.3 G
Police/Fire Retirement System
13,050
15,308
17,280
20,400
2.3 H
Brownfield Redevelopment Authority
10,650
6,525
5,400
6,600
2.3 I
Smart Zone LDFA
13,050
6,525
5,400
8,200
$ 369,200
$
398,000
$
$
2,300
2.3A (4)
Due Diligence (1st yr./each)
Late bid:
The Rehmann Group
Declined to bid:
Crowe,Chizek
Hoffman, Steensma
DeLong & Brower PC
Deloitte & Touche
Adamy & Company PC
No response:
DeHoek & Roy PLLC
Coda & Morgan PC CPA's
Beene Garter LLP
Prangley Marks LLP
Ferris Busscher & Zwiers PC
$ 191,775
$
$ 290,095
$
326,125
$
$
680
2,000
1,750
$
309,700
Section 4.0
CRITERIA FOR SELECTION
All quotations received will be evaluated by the City of Grand Rapids for the purpose of
selecting the auditor with whom a contract(s) may be approved. The following factors will
be considered in making the selection:
4.1
Qualification This criteria includes the ability of the contractor to meet the terms of
the RFP, and the quality, relevancy, and recency of similar assignments completed
or undertaken by the contractor.
4.2
Professional Personnel This criteria refers to the competence of professional
personnel who would be assigned to the job by the contractor. Qualifications of
professional personnel will be measured by education and experience, with
particular emphasis on experience on similar projects to that described in the RFP.
Emphasis will be placed upon the qualifications of the personnel. The City
reserves the right to personally interview any or all personnel identified in the
proposal.
4.3
Price Price is not the only qualification for awarding this contract for professional
services. The City's judgment of the auditors’ experience and other qualifications
will also be relevant. Recognizing that each individual board or commission will
require separate contracts, a table has been prepared (following several pages) to
set hourly billing rates and estimated staff hours, by fiscal year. The suggested
"Audit Program Classifications" may be revised in your proposal if required to
correspond to your own individual billing practices.
AGREEMENT TO PROVIDE AUDIT SERVICES
THIS AGREEMENT, made this _____ day of _______, 2003 by and between THE
CITY OF GRAND RAPIDS MONROE NORTH TAX INCREMENT FINANCING
AUTHORITY, a Michigan Municipal Corporation, 300 Monroe Avenue, N.W., Grand
Rapids, Michigan, hereinafter referred to as the "Authority," and BDO Seidman, LLP,
registered to practice in the State of Michigan as Certified Public Accountants, 99 Monroe
NW, Suite 800, Grand Rapids, Michigan 49503-2698, hereinafter referred to as the
"Auditor."
WITNESSETH:
WHEREAS, Act 2, Public Acts of 1968, Sec. 5(1), as amended, requires local units of
government to have an annual audit of its financial records, accounts and procedures.
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
1.
The Auditor shall conduct an examination of the financial records, accounts
and procedures of all funds, financial operations, and agencies under the
administration and control of the Authority for each of the fiscal years ending
June 30, 2003 through June 30, 2005 inclusive.
2.
The Auditor's examination shall meet the requirements of Act 2, P.A. 1968,
as amended, the Bulletin for Audits of Local Units of Government in
Michigan, and be in accordance with generally accepted auditing standards,
as set forth by the American Institute of Certified Public Accounts, for the
purpose of expressing an appropriate opinion on the examination of the
financial statements.
3.
The examination shall begin as soon after the signing of this contract as
shall be convenient to the Auditor and shall be completed with the Auditor's
opinion and letter of recommendations issued not later than November 30th
of each year or, as mutually agreed by the parties, to extend for up to an
additional thirty (30) days beyond this date.
4.
The Authority shall complete and balance all accounts and prepare financial
statements and schedules for all funds, operations and agencies to be
examined by the Auditor, and shall provide the Auditor with space deemed
adequate by the Auditor for the efficient conduct of the examination. The
Authority shall provide the Auditor, for his use and retention, with copies of
these financial statements and schedules and shall provide the Auditor with
trial balances of the various funds, operations and agencies in a form
acceptable to the Auditor. The Auditor shall be responsible for the typing
and proofing of the financial reports. The Authority will provide the auditor
with a reasonable number of printed financial reports.
1
5.
The Authority agrees that the working papers of the Auditor will be made
available to authorized representatives of the State Treasurer upon formal
request by the State Treasurer or his deputy.
6.
The Authority agrees to pay the Auditor, for services rendered, based on a
standard hourly billing for each auditor classification. It is expressly
understood and agreed that in no event shall the total compensation and
reimbursement, if any, to be paid hereunder exceed the maximum sum of
$10,950 for all of the services required based on the following annual
apportionment:
General
Audit Requirements
Audit Period
For the year ending June 30, 2003
$3,550
For the year ending June 30, 2004
$3,650
For the year ending June 30, 2005
$3,750
Should unusual conditions arise whereby the services of the Auditor are
deemed necessary beyond the extent of the work required in the preceding
sections, such unusual conditions shall be referred to the Authority who shall
instruct said Auditor concerning such additional services.
7.
The Authority authorizes the Auditor to immediately disclose any and all
findings of suspected fraud and/or embezzlement to the Deputy State
Treasurer in charge of the Local Audit Division of the State Department of
Treasury, although the ordinary examination is not specifically designed to
detect fraud or other defalcations.
8.
The audit report and all other reports made by the Auditor shall be submitted
to the trustees of the Authority by sending copies thereof to them at their
respective individual office addresses.
9.
The Auditor will review with the Authority or its representative the audit
schedule identifying the records to be audited and the procedures to be
followed.
10.
All recommendations concerning accounting principles, systems, procedures
and methods shall be discussed with the Authority or its representative prior
to the issuance of the audit report.
11.
The "Proposal to Serve as Independent Certified Public Accountants," dated
February 25, 2003 is incorporated by reference as part of this basic
agreement.
2
12.
Either party to this Agreement may terminate the Agreement by written
notice to the other party on or before January 1st of the fiscal year for which
the next audit is to be performed.
13.
The Auditor agrees to hold the Authority harmless from any and all physical
injury to the person or damage to the property of, or any loss or expense
incurred by, any employee of the Authority which arises out of or pursuant to
the Auditor's performance under this Agreement. The Auditor shall also hold
the Authority harmless from any claims by the Auditor's employees arising
out of, or pursuant to, the Auditor's and/or employees performance under
this Agreement. The Auditor agrees to hold the Authority harmless for any
injuries to persons, or any injury, loss, expense, or damage to property
caused by the Auditor's employees.
14.
The Auditor agrees not to discriminate against any employee or applicant for
employment, to be employed in the performance of such Agreement, with
respect to her/his hire, tenure, terms conditions or privileges of employment,
or any matter directly or indirectly related to employment, because of her/his
race, color, religion, national origin, age, sex, height, weight or marital status.
Breach of this covenant may be regarded as material breach of the
Agreement as provided for in Act 453 of the Public Acts of 1976, as
amended, entitled "Michigan Civil Rights Act." The Auditor further agrees to
take affirmative action in hiring, training, and promoting minority group
persons and women to bring about reasonable representative integration of
its employees. For the purposes of this Agreement, a "minority group
person" is defined as any person of Native American, Asian American,
Hispanic or Black descent. The Auditor further agrees to review and
examine with the City relevant employment data and other information
pertaining to its hiring practices. The Auditor further agrees that it will
require similar covenants from any sub-contractor under this Agreement.
3
IN WITNESS WHEREOF, the respective parties have caused this Agreement to be
executed pursuant to the authority of the respective parties.
WITNESSETH:
CITY OF GRAND RAPIDS
MONROE NORTH TAX INCREMENT
FINANCING AUTHORITY,
a Michigan Municipal Corporation
By________________________________
Chair
Attest______________________________
Secretary
BDO SEIDMAN, LLP
By_________________________________
4
DATE:
March 31, 2003
TO:
Tax Increment Financing Authority (TIFA)
FROM:
Kurt F. Kimball
City Manager
SUBJECT:
MONROE NORTH TIFA ADMINISTRATIVE SUPPORT
Administrative support for the Monroe North TIFA had been provided by Jim Knack until his
retirement from the City and then by Steve Pierpoint, who has also retired. Although this group
is not very active at this time, an administrative structure should be in place to carry out the
work of the Authority in between its meetings.
In accordance with the rules of procedure of the Authority and its adopted policy on progress
payments, it is my recommendation that Jay Fowler, Assistant Planning Director, be appointed
by the Authority as Secretary and City Representative to the TIFA.
KK/nlm