City Commission Packet 09-11-2012

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                 SEPTEMBER 11, 2012

  A. Approval of Minutes. CITY CLERK
  B. Certification of MERS Representatives. FINANCE
  C. Consumers Energy Streetlighting Contract. CITY MANAGER
  D. Authorization to Submit Bids to HUD for the Purchase of Homes Offered
     to Government Agencies. COMMUNITY & NEIGHBORHOOD SERVICES
  E. Next Michigan – Appointments to Next Michigan Board. PLANNING &
  A. Community & Neighborhood Services Department Consolidated
     Annual Performance Evaluation Report (CAPER 2011). COMMUNITY &
  A. Special Event Request – “City of the Dead” Tour at Evergreen
     Cemetery, October 26-27, 2012.      PLANNING & ECONOMIC
       B. Inspection Services Contract. CITY MANAGER
   Reminder: Individuals who would like to address the City Commission shall do the following:
   Fill out a request to speak form attached to the agenda or located in the back of the room.
    Submit the form to the City Clerk.
   Be recognized by the Chair.
   Step forward to the microphone.
   State name and address.
   Limit of 3 minutes to address the Commission.
   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Date:     September 11, 2012
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Cummings, City Clerk
RE:       Approval of Minutes

SUMMARY OF REQUEST: To approve minutes of the August 28th City
Commission Meeting.



STAFF RECOMMENDATION: Approval of the minutes.
                      AUGUST 28, 2012

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, August 28, 2012.
Mayor Gawron opened the meeting with a prayer from Vice Mayor Spataro
after which the Commission and public recited the Pledge of Allegiance to the
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Willie German, Sue Wierengo, Byron Turnquist, Lea Markowski,
and Eric Hood, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Cummings.
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the August 13th Commission
Worksession Meeting and the August 14th City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
     B. Watermain Purchase. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to purchase 8 inch watermain and
appurtenances from ETNA Supply. The watermain will be used to upgrade 718
feet of 6 inch watermain on Vulcan Street between Laketon and Larch using in-
house work force and equipment. Street repairs will be contracted out to
Asphalt Paving, Inc.
FINANCIAL IMPACT: Total cost $32,417.86.
BUDGET ACTION REQUIRED: None, included in 2012/2013 Budget.
STAFF RECOMMENDATION: Approve purchase from ETNA Supply and Asphalt
Paving, Inc.

      C. Purchase of 2221 Surfwood Drive.      COMMUNITY & NEIGHBORHOOD
SUMMARY OF REQUEST: To approve the purchase of 2221 Surfwood Drive,
Muskegon, MI 49441 (CITY OF MUSKEGON REVISED PLAT OF 1903 BLK 707 ELY 14
FT LOT 26 & ALL LOT 27) from the U.S. Department of Housing and Urban
Development for a bid price of up to $42,000.
After 2221 Surfwood is obtained, the City will renovate the property as a part of
its HOME funded Homebuyers Program.
FINANCIAL IMPACT: The funding used for the purchase has been identified in
our 2012 HOME budget and the rehabilitation will be completed through our
2013 HOME entitlement.
STAFF RECOMMENDATION: To approve the request to purchase the property.
      D. Liquor License Transfer Request for Downtown Muskegon, Inc., 1157
         Third Street. CITY CLERK
SUMMARY OF REQUEST:      The Liquor Control Commission is seeking local
recommendation on a request from Agid, LLC to transfer ownership of the
SDD/SDM license with Sunday Sales Permits located at 1157 Third Street from
Downtown Muskegon, Inc.
STAFF RECOMMENDATION: All departments are recommending approval.
      E. Liquor License Transfer Request for Frontier Liquor Shoppe, 631 W.
         Southern. CITY CLERK
SUMMARY OF REQUEST:        The Liquor Control Commission is seeking local
recommendation on a request from S & M Khamro, LLC to transfer ownership of
the SDD/SDM license with Sunday Sales Permits located at 631 W. Southern from
S & R Kado, LLC.
STAFF RECOMMENDATION: All departments are recommending approval.
Motion by Commissioner Turnquist, second by Commissioner Wierengo to
accept the Consent Agenda as presented.
ROLL VOTE: Ayes: Wierengo, Turnquist, Markwoski, Gawron, Hood, Spataro, and
            Nays: None

      A. “Development and Reimbursement Agreement” Between the City of
         Muskegon Brownfield Redevelopment Authority (BRA) and Parkland
         Muskegon LLC (Jon Rooks). PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Jon Rooks has modified his plans for the High Point Flats
project to include market-rate apartment units, which are more marketable in
the current economy. Both Mr. Rooks and the City staff have been coordinating
with the Michigan Economic Development Corporation (MEDC) to assist in
additional funding for the project to enable construction to begin this year. The
MEDC has agreed to provide loan funding to the project. There is a requirement
that the local municipality also participate in the project. The local participation
is proposed to be granting future BRA Tax Increment Finance (TIF) capture for
the High Point Flats property to Mr. Rooks. With approvals from the City and the
MEDC, the project is expected to begin within 30-90 days.
FINANCIAL IMPACT: Future BRA TIF capture will be directed to Mr. Rooks for
reimbursement of loans he is securing for redevelopment of the property.
STAFF RECOMMENDATION: To endorse the approval by the BRA for the
“Development and Reimbursement Agreement” between the City of Muskegon
BRA and Parkland Muskegon, LLC.
COMMITTEE RECOMMENDATION: The BRA will be meeting on August 27, 2012, to
review the “Agreement”.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to endorse
the Brownfield Redevelopment Authority’s recommendation and adopt the
“Development and Reimbursement Agreement” between the City of Muskegon
BRA and Parkland Muskegon, LLC.
ROLL VOTE: Ayes: Turnquist, Markowski, Gawron, Hood, Spataro, German, and
            Nays: None
      B. Designation of Voting Delegates for the Michigan Municipal League
         Annual Business Meeting. CITY CLERK
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official
representative to cast the vote of the municipality at the annual meeting; and, if
possible, to designate one other official to serve as alternate.

Motion by Vice Mayor Spataro, second by Commissioner Wierengo to appoint
the City Clerk as the voting delegate for the Michigan Municipal League Annual
Business Meeting.
ROLL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
            Nays: None
ANY OTHER BUSINESS: Vice Mayor Spataro commented on the County wanting
to use McLaughlin School as a Juvenile Detention Center and that he is against
this. Mayor Gawron also spoke against it.
PUBLIC PARTICIPATION: Public comments received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:11 p.m.

                                          Respectfully submitted,

                                          Ann Marie Cummings, MMC
                                          City Clerk

Date: September 11, 2012
To: Honorable Mayor and City Commissioners
From: Finance
RE: Certification of MERS Representatives

SUMMARY OF REQUEST: The MERS plan document provides that “the
governing body for each municipality shall certify the names of two (2) delegates to
the Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other delegate
shall be a member who is not an officer of the municipality, elected by the member
officer/employees of the municipality.”

The City’s employee units have agreed to a rotating system (based on date of joining
MERS) to select one official employee representative. This year the official
employee representative attending the MERS conference will be Steve Teunis
(Water Filtration Sup’t) from the non-union employee group.

It is recommended that Elizabeth Lewis (Ass’t Finance Director) be designated as the
City’s employer delegate.

FINANCIAL IMPACT: Registration for the MERS conference in Grand Rapids is
$200 per person. Additionally, mileage and related costs will be incurred.

STAFF RECOMMENDATION:                   Certification of Elizabeth Lewis and Steve
Teunis to be the City’s officer and employee delegates at the MERS annual meeting
in Grand Rapids October 3 – 5.


O:\FINANCE\PAUL\MyDocuments\AGENDA ITEM 2012 MERS Delegates.doc                        1
                         AGENDA ITEM NO. ___________________

                     CITY COMMISSION MEETING           September 11, 2012

TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       August 27, 2012

RE:         Consumers Energy Streetlighting Contract

To approve a new streetlighting contract with Consumers Energy.

The city has budgeted $745,000 for streetlighting.


To approve the contract and authorize the mayor and clerk to execute it.


      Commission Meeting Date:           September 11, 2012

Date:      September 4, 2012
To:        Honorable Mayor & City Commission
From:      Community and Neighborhood Services
RE:        Authorization to submit bids to HUD for the
           purchase of homes offered to Government

SUMMARY OF REQUEST: To offer bids to HUD via their website for
HUD homes available to government agencies. Specifically, homes
located in East Muskegon, Glenside, Campbell and Bluffton that can be
rehabilitated and sold to income eligible households through the City of
Muskegon Community and Neighborhood Services department
Homebuyers Program.
FINANCIAL IMPACT: Bid offers can be lower when eligible to
government agencies and non-profits.
STAFF RECOMMENDATION:                 To authorize the director of
Community and Neighborhood Services the ability to bid on homes
owned by HUD in the neighborhoods of Campbell, East Muskegon,
Glenside and Bluffton for the city’s Homebuyers Program 2013.
        Commission Meeting Date: September 11, 2012

Date:         September 5, 2012
To:           Honorable Mayor & City Commission
From:         Planning & Economic Development Department
RE:           Next Michigan- Appointments to Next Michigan

SUMMARY OF REQUEST: On August 22, 2012, the Michigan Strategic Fund (MSF)
Board of Directors approved the designation of the West Michigan Economic
Partnership (WMEP) as a Next Michigan Development Corporation. Each of the
seven units of government who are part of the designation (including the City of
Muskegon and Muskegon County) must appoint a board member and an alternate
board member. The WMEP board member will attend the meetings and vote on
matters that come before the Board. However, all meetings are open to the public
and any item affecting the City of Muskegon will first be brought to the City
Commission for approval (i.e., budget items that affect the City, incentives provided
to developers/businesses, the areas designated for incentives, etc.).

FINANCIAL IMPACT: None, at this time. However, the WMEP Board will develop a
budget, with funding coming from each entity and/or the property owners to be
included in the identified improvement areas.


STAFF RECOMMENDATION: To appoint Cathy Brubaker-Clarke, Director of
Community & Economic Development as the City of Muskegon WMEP Board
Member and Mike Franzak, Zoning Administrator as the City of Muskegon alternate

COMMITTEE RECOMMENDATION: This item will be reviewed at the Work Session
on September 10.

      August 22, 2012 

      Re:  Next Michigan Development Corporation 
      On Wednesday, August 22, 2012, the Michigan Strategic Fund (MSF) Board of Directors approved 
      the designation of the West Michigan Economic Partnership (WMEP) as the fifth and final Next 
      Michigan Development Corporation, as authorized by PA 275, 2010 (attached).  
      As one of seven local units of government in Kent or Muskegon Counties who sanctioned the 
      application to the MSF for this designation pursuant to an Inter‐local agreement, we should all be 
      proud of accomplishing this unique and innovative approach to the marketing and development of 
      real estate served by two or more modes of transportation. 
      The next step in the creation of the WMEP is the appointment of board members and an alternate 
      from each of the seven communities.  State law does not prescribe the qualifications of who will 
      represent your community; we recommend you adhere to your usual appointment process for the 
      appointment of the two representatives.  We respectfully request that the appointments be made 
      so that both representatives can participate in an orientation‐startup meeting scheduled for 
      Wednesday, September 26, 2012, 3:00 pm at Walker City Hall.  Both Ed Garner and I will be 
      available to attend any meetings scheduled to advance the appointment process.  Furthermore, we 
      request notification from you concerning the persons appointed so that they can receive a packet of 
      information for use during the September 26 orientation meeting.  Please contact Maulin Pont for 
      this purpose at  
      Muskegon Area First and The Right Place, Inc. are excited to advance this important regional 
      economic development initiative and to foster further work between and among the participating 
      units of government.  If you have any questions or need additional information, please feel free to 
      contact Ed or myself as soon as possible. 
      Ed Garner                                    Rick Chapla 
      President and CEO                            Vice President, Business Development 
      Muskegon Area First                          The Right Place, Inc      
      (231) 724‐3172                               (616) 771‐0328        
      Commission Meeting Date:         September 11, 2012

Date:     September 4, 2012
To:       Honorable Mayor & City Commission
From:     Community and Neighborhood Services
RE:       Request to conduct a Public Hearing of the
          Community & Neighborhood Services department
          Consolidated Annual Performance Evaluation
          Report (CAPER 2011)

SUMMARY OF REQUEST: To conduct a public hearing of the 2011
CAPER projects funded through CDBG and HOME entitlements to the
City of Muskegon Community and Neighborhood Services department.


STAFF RECOMMENDATION:             To submit the 2011 CAPER
including any public comments received during the 30 day comment
period ending September 28, 2012.
              City of Muskegon
        Community Development Block Grant
Consolidated Annual Performance and Evaluation
                   2011 Grant
                           First Program Year CAPER

Executive Summary

    A brief overview of our 2011 initiatives included projects funded by CDBG,
HOME and NSPI grant activities beginning July 1, 2011 through June 30, 2012.

CDBG Chart
Affirmative Action                $10,000                           Supplements Affirmative
                                                                    Action Staff
Code Enforcement                  $50,000                           1 of 3 Code Compliance
Facade                            $10,000                           $2,000 - $5,000 grants for
                                                                    Muskegon business owners
Fire Station Bond                 $157,870                          City Payments

Admin                             $140,000                          Supports CNS staff

Dangerous Building/Demolition     $50,000                           Curtails neighborhood blight

Youth Recreation                  $70,000                           Provide grants to local youth
                                                                    centered projects with an
                                                                    emphasis on self-building
Vinyl Siding                      $50,000                           Cover cost of vinyl siding
                                                                    eligible homes within city limits
Priority Housing Repair           200,000                           Offer housing repairs to low-
(Emergency Repair)                                                  income families
Service Delivery Housing          60,000                            Specific to the program
Repairs and Vinyl Siding                                            management
LOVE-Ramps                        3,500                             Assist eligible households with
                                                                    accessible entry ramps
LOVE – Utilities                  4,500                             To help families with rent and
                                                                    utility payments to avoid
                                                                    eviction and shut-offs
Senior Transit                    45,000                            Designed to transport seniors to
                                                                    dr. appointments, grocery stores
                                                                    and other miscellaneous
                                                                    activities otherwise not
Street Construction               $60,470                           Assist staff with the necessary
                                                                    oversight and reporting required
                                                                    to complete Getty Street
* At least $98,810.57 was received to cover the homeowner repairs initially designated for
our weatherization program
HOME Admin                         $28,433                             Support for staff working on
                                                                       HOME projects
CHDO Reserve                       $107,587                            Assist community housing
                                                                       development organizations with
                                                                       required funding to produce
                                                                       affordable housing units
CHDO Operating                     $10,000                             Staffing miscellaneous
                                                                       operating costs
Infill Housing                     $122,904                            Build new home for Home
                                                                       Buyer Program
Rental Rehab                       $30,000                             Provide assistance to landlords
                                                                       in the City of Muskegon for
                                                                       lead abatement and


       Midway into our MSHDA funded programs, we were able to complete three new
constructions and completely rehab five single family homes. All of them sold at
completion during the 2011 year.

        One of the year’s highlights was the Muskegon County and Interagency agreement
with the Fair Housing Agency of West Michigan. This agreement listed surveys, testing,
training and reports of our Muskegon Area Fair Housing behaviors and tendencies. Some
communities learned that fair housing choice appearance to be inconclusive to race and
gender but what did prove to be important was the need for education in our areas of

         As the year ended, our office was contacted by MSHDA for technical assistance
(TA) opportunities’. We agreed to accept TA for building a HOME Consortium and
Muskegon, Muskegon Heights, Norton Shores, Roosevelt Park and North Muskegon were
invited to attend a briefing about HOME funded projects. We perceived that HOME
activities can benefit residents in the county so we will proceed to expand the partnership
possibilities through a HOME Consortium.

General Questions

        Our annual activities proved to be successful but what we could not complete was a
HOME sponsored “Weatherization” program for seniors. The problem was simple: we
didn’t have a HOME coordinator and ultimately we returned HOME funds associated with
these activities and canceled the activities set up in IDIS.

        Any obstacles we faced in meeting the underserved needs could be addressed by
funding resources. We do not have a match requirement in our community so the biggest
challenge was the reduction of Muskegon’s 2011 grant allocation. With less, we can not
continue senior transit and ultimately there was a big debate about duplication of service.
In the end we lost a staple program but the city used its resources to allow senior
transportation services to extend through December 2012.
Managing the Process

        Community and Neighborhood Services works as the city’s liaison to comply with
planning requirements and programs. We received a monitoring visit from Detroit HUD to
review our HOME Program and activities associated with compliance issues. As a result
we reviewed policies, procedures, programs, statutes, regulations and review projects
invested with HOME dollars. The monetary allowed us to review our structure and to
enhance our coordination as we build a HOME Consortium. As the Lead Agency, we can
use the monitoring report to fill the gaps in our current process as we move forward with a
HOME Consortium in 2014.

Fair Housing


        The County of Muskegon’s application was approved as an eligible community for
a Lead Hazard Reduction Program through our local Public Health Muskegon County. As
before, the City of Muskegon has committed funding to rentals units within our city limits
that test hazardous for Lead Based Paint.

       -   We provided them with was referrals from our past Lead Grant.
       -   We publicized the program to every property owner that request rental
           assistance for rehabilitation.
       -   We accepted three applications for combined assistance for Lead based Paint

        The county will test; we will cover non-lead rehab cost @ a ratio of 50/50 and if
necessary fill the gap above the maximum grant threshold. We are committed to reducing
lead based hazards in rental units in the City of Muskegon and we have made every effort
to partner with the county to help our citizens.

Community Development

       Goals and objectives per Action Plan 2011 are to maintain affordable housing units
while stabilizing neighborhoods as priorities 1 and 2. Specifically,

Objective 1: To serve families direct through…
              Goal 1: Emergency repairs/50 households
              Goal 2: Vinyl siding; 10 homes
              Goal 3: Weatherizing/canceled (reauthorized into Emergency Repair)

       Objective 2: Increase house opportunities
              Goal: Construct one new home and rehab 1
*R=Repair F=Furnace E=Electric P/S=Plumbing/Sewer O=Other
We changed the program guidelines to include a larger range of struggling families with
housing repair issues. Critical changes a fee schedule for services to offset for families
with income between the 50-60% AMI. Another change included the increased number of
participating households above 50% AMI. In addition, we added a requirement for our
vinyl siding program to support our citizen district council suggestions to ask for part of
the investment made to their homes for incomes above 30% AMI.

        All in all, our intent was to improve programs and the process by which we carried
them out. Success was achieved because we adhered to our consolidated plan goals and
objectives which were detailed in the projects selected. We are proud to say that with
dwindling resources we were able to meet the needs and be consistent with program

        For all of our housing programs, we did not displace any homeowner. It is
necessary to state that our CDBG funded programs were limited to our entitlement
allocation and any additional resources were covered by (PI) Program Income received
from the CDBG programming.


         Affordable, decent and safe housing is critical to goal and objectives of planned
activities. The City of Muskegon’s HOMEBUYER

   ACTIVITIES                5 YR                   ANNUAL
                          PROJECTION               PROGRESS
Acquisition                    2                       0
New Construction               5                       2*
Rehabilitation                10                       2
Rental                        10                       4*
*CHDO Assisted

       Habitat – 2 new construction homes completed

       Community encompass – 3 rental units completed

       NSPI – 5 homes completed and sold:
                    Four rehabbed
                       One new construction

Types of Households Served
GENDER            MARRIED                  RACE                  INCOME               FAMILY SIZE
F                    NO                    BLK                   <50% AMI             3
F                    NO                    BLK                    50% AMI             5
F                    NO                    WHI                    50% AMI             1
F                    NO                    BLK                    52% AMI             2
M                    NO                    WHI                    50% AMI             1
M                    NO                    WHI                   <50% AMI             4
F                    NO                    BLK                                        3
F                    NO                    WHI                   51% AMI              3


        As the governmental entity for our Public Housing Agency, we continue to affirm
that their plan fits our consolidated plan supporting suitable living environments. The
Muskegon Housing Commission has updated their façade and brightened the building
entry with glass windows. The new entry creates light and improved accessibility for
residents and guests. The process of updating their building will be ongoing until 2014.


        Our action to further Fair Housing Choice in Muskegon was met when we entered
into a multiagency agreement with the Fair Housing of West Michigan. This agreement
entailed trainings for realtors, service agencies and public officials, all in an effort to help
eliminate barriers of housing discrimination. Many were new to the information shared but
all were made aware of the survey and testing process. Reports show that some things
occurred and were considered inconclusive. However, at least three cases are being


        In our Community, Muskegon is an active board member of the Continuum of Care
Coalition. Local agencies have proved to be equipped in serving households at risk of
becoming homeless.

Actions taken to deter homelessness
       - Staff training
       - Recruitment of landlords
       - Multi-agent programs for at risk families
       - Support groups
       - Improved housing opportunity facilities
       More funding for families in the area of rental assistance was accomplished.
       Previously cut off from any type of assistance, family could reapply fro rent
       subsidy dollars that were released for our area early spring 2012. These federal
       dollars will help to prevent eviction which leads to homelessness.


       People Living Below Poverty
       - Our commission members agreed to lend a local recipient additional dollars to
          help cover poverty families pay utilities and rent. The report showed,

              Level of
            Income per   Ethnic
               City      Group
           Low          W    DTE Gas
           Extreme      B    DTE Gas
           Extreme      B    DTE Gas
           Extreme      B      Rent
           Extreme      B      Rent
           Extreme      B      Rent
           Extreme      B      Rent
           Extreme      B    DTE Gas
           Extreme      B      Rent
           Extreme      B    DTE Gas
           Extreme      B      Rent
           Extreme      W    DTE Gas
           Extreme      B      Rent
           Very Low
           Very Low
           Extreme      B   Consumers
           Extreme      B      Rent
           Extreme      B      Water
           Extreme      B      Water
           Extreme      W      Water
          * Low: 60 – 80% Very Low: 30 – 50% Extremely Low 20% >

       We will continue to grant money for this special need.

        The City of Muskegon is home to a HOPWA funded agency who has submitted
plans that coincide with the City’s Consolidated Plane as a Housing priority fro affordable
housing units. The challenges are great but partnering with the Continuum of Care will
broaden the opportunities for housing choice. Financial assistance has been given to
identify clients but the improvement of local properties is a perceived benefit for any
persons facing eviction and struggling to afford a suitable place to live.

       Because the City of Muskegon does not receive HOPWA funding, our role is
       simple: We will assist to meet the needs of all of our citizens regardless of race,
       religion, color, national origin, age, familial status, marital status, sexual orientation
       or gender identity.
Emergency Shelter Grant

        NOT FUNDED directly but several Continuum of Care coalition members report
on the county’s funding. The needs of at-risk families have been served by the circle of
shelters, programs and community organizations receiving.
                               September 11, 2012

Date:             September 4, 2012
To:               Honorable Mayor and City Commissioners
From:             Cathy Brubaker-Clarke, Director of Community
                  & Economic Development
Re:               Special Event Request – “City of the Dead” tour
                  at Evergreen Cemetery, October 26-27, 2012

SUMMARY OF REQUEST: Harbor Unitarian Universalist Congregation is requesting
permission to hold their third annual historical tour/reenactment at Evergreen
Cemetery on October 26 and 27, 2012.




                             CITY OF MUSKEGON, MICHIGAN
This Agreement for Professional Services ("Agreement") is entered into by and between theCity of Muskegon,
a Michigan municipal corporation, 933 Terrance Street, Muskegon, MI 49440, ("City") and Safe Built of
Michigan, Inc., ("SAFEbuilt"), licensed to do business in the State of Michigan, whose address is 200 East Big
Beaver Road, Troy, Michigan 48083. City and SAFEbuilt are individually referred to as a"Party" and may be
collectively referenced as the "Parties."

                                   RECITALS AND REPRESENTATIONS
WHEREAS, the City has the responsibility under State laws and City Ordinance to adopt andenforce certain
building codes and other ordinances, conduct inspections, review building plans, andconduct other
professional services as described in this Agreement; and

WHEREAS, SAFEbuilt has represented to the City that is has substantial knowledge andexperience in the
interpretation and application of the City's adopted Code of Ordinances with regard tovarious building
construction, including but not limited to, theinspection of buildings to determine compliance with State laws
and City ordinances, whichinclude building codes, the review of building plans and other building code

WHEREAS, SAFEbuilt represents that SAFEbuilt has the skill, ability, and expertise to performthe services
described in this Agreement; and

WHEREAS, the City desires to engage SAFEbuilt to provide the services described in thisAgreement subject
to the terms and conditions of the Agreement.

NOW, THEREFORE, in consideration of the benefits and obligations of this Agreement, theParties mutually
agree as follows:


    1.1 References to "SAFEbuilt" shall include any employees of SAFEbuilt, itscontractors, subcontractors,
        independent contractors.


    2.1 Services. As directed by and under the supervision of the Director of Public Safety, or his/her designee,
        SAFEbuilt shall provide the City with the services described in Exhibit A(“Scope of Services").

    2.2 Building Official. City and SAFEbuilt agree to jointly hire the City’s Building Official. Although jointly
        employed, City and SAFEbuilt agree City has no obligation to compensate the Building official in any
        way and that all compensation, fringe benefits, including retirement programs and insurance, shall be
        provided by SAFEbuilt. The Building Official shall report to the Director of Public Safety, but SAFEbuilt
        shall be fully responsible for training, overseeing, and managing the Building Official.

    2.3 Incumbent Employees. SAFEbuilt is under no obligation to hire or retain current City of Muskegon
        employees. SAFEbuilt will hire the best candidate for the available positions. SAFEbuilt will interview
        all interested incumbent employees.

    2.4 Changes to Services. The City may request a change or changes in theServices. Any changes to
        Services that are mutually agreed upon between theCity and SAFEbuilt shall be made in writing which
        shall specifically designate anychanges in compensation for the Services and be made an amendment
        to theAgreement after approval by City Commission. To be effective, any changes must beapproved by
        City Commission, and signed by SAFEbuilt and the Mayor and City Clerk.

                                                     Page 1 of 45 

    3.1 Commencement of Services. Following execution of this Agreement by bothParties and on the Effective
        Date of November 01, 2012, SAFEbuilt shall be authorizedto commence performance of the Services
        subject to the requirements andlimitations on compensation as provided by this Section 3.0 and its
        subsections.Prior to November 01, 2012effective date, SAFEbuilt agrees to attend transition
        trainingprovided by the City at no charge to the City. The purpose of this transitionperiod is to allow
        SAFEbuilt to do what is necessary to become fully functional forthe performance of services under this
        Agreement by November 01, 2012. During thistransition period, SAFEbuilt may begin moving into a
        mutually acceptable space,to review with current staff procedure and policies; confer with the
        City'sInformation Technology Department to set up access to the City's BS&Asoftware; and to take
        other actions that are mutually acceptable to both Parties toassure a smooth transition.

    3.2 Compensation. SAFEbuilt shall receive 80% ofall adopted building department fees that are collected by
        the City each month except the following: rental property and associated fees; tele-communication
        outlets; housing warrant inspections fees; property maintenance code approval fees. The City shall
        retain the remaining 20%of thefees.

    3.3 Hourly Fees. Where a permit fee is not collected for the service performed or ifSAFEbuilt is required by
        the City to perform any service not included as part of itsScope of Services outlined in Exhibit A, the
        City shall be responsible for thehourly rate listed in Exhibit B. That hourly rate includes pay rate,
        overhead,profit, travel necessary to perform the task and all other costs to SAFEbuilt. Thishourly rate
        would also apply to any services for which a fee has been collectedbut the City has requested that
        services be performed by SAFEbuilt, when SAFEbuilt is required to perform any service not included as
        part of its Scope ofServices outlined in Exhibit A.

    3.4 Responsibility for Outstanding Permits. SAFEbuilt shall be responsible forreviewing all permits in the
        Building Department that have previously beensubmitted to the Building Department in which fees have
        already been paid. Forthose outstanding permits issued prior to November 01, 2012, SAFEbuilt shall
        berequired to complete all work on those permits and inspections at a cost not-toexceed$40.00 per
        permit, providing no other large commercial work comes inbetween now and then, in which permit fees
        exceed $5,000.00.

    3.5 Collection of Fees. The Building Department, through SAFEbuilt, shallcollect Building Department fees
        on behalf of the City.

                 3.5.1   No Reimbursable Expenses. No "reimbursable expenses" or other fee,cost, charge, or
                         fee for the value or expense of any materials, goods,travel, mileage, depreciation, or
                         other item related to the performance ofthe Services shall be paid by the City. Any
                         cost, charge, fee, or expenseincurred by SAFEbuilt in the performance of the Services
                         shall be deemeda non-reimbursable cost and shall be borne by SAFEbuilt and shall
                         not bebilled or invoiced to the City and shall not be paid by the City.

                 3.5.2   Free or Reduced Cost Services. The Parties recognize and understandthat the City is
                         or may be required by law to waive inspection fees on alimited number of projects
                         during a calendar year or may, at its discretion, waiveor reduce inspection fees for
                         certain projects that provide asubstantial and direct public benefit (e.g., City owned
                         buildings, inspectionrelated to court cases or following up services directed by a court
                         of law).The City shall notify SAFEbuilt of such circumstance(s) at the
                         earliestopportunity and the City may request SAFEbuilt to perform building
                         andinspection services at no cost or at a reduced cost.

                 3.5.3   Increases in Compensation or Addition of Reimbursable Expenses. Anyincreases or
                         modification of compensation or the addition of areimbursable expense(s) shall be
                         subject to written amendment of thisAgreement approved by City Commission and
                         executed by both Parties.
                                                    Page 2 of 45 
    3.6 Payment Processing. SAFEbuilt shall submit invoices and requests for paymentin a form acceptable to
        the City. Invoices shall be submitted by the 15thofeach month unless otherwise approved by this
        Agreement or in writing by theCity. All invoices shall contain sufficient information to account for all
        SAFEbuilttime (or other appropriate measure(s) of work effort for the Services during thestated period of
        the invoice. Invoices shall be given to the Director of Public Safetywith a computation of the
        feesreceived and a total amount on which the 80% payment request isbased. The City shall have thirty
        (30) days from receipt of the invoice to issuepayment to SAFEbuilt’s corporate offices at: SAFEbuilt;
        3755 Precision Drive, Suite 140; Loveland, CO 80538 unless there is a dispute as to the amount due
        and owning. Ifthere is a dispute, the parties shall use the procedures set out in paragraph 3.7.

    3.7 City's Dispute of Amount of Payment. The City may request additionalinformation from SAFEbuilt
        substantiating any and all compensation sought bySAFEbuilt before accepting the invoice. When
        additional information is requestedby the City, the City shall advise SAFEbuilt in writing, identifying the
        specificitem(s) that are in dispute and giving specific reasons for any request forinformation. The City
        shall pay SAFEbuilt within thirty (30) days of the receiptof an invoice for any undisputed charges or, if
        the City disputes an item or invoiceand additional information is requested, within thirty (30) days of
        acceptance ofthe item or invoice by the City following receipt of the information requested andresolution
        of the dispute. To the extent possible, undisputed charges within thesame invoice as disputed charges
        shall be timely paid in accordance with thisAgreement. Payment by the City shall be deemed made and
        completed uponhand delivery to SAFEbuilt or designee of SAFEbuilt or upon deposit of suchpayment in
        the U.S. Mail, postage pre-paid, addressed to SAFEbuilt.


    4.1 Reference to "SAFEbuilt" under this Section shall include SAFEbuilt employees,contractors,
        subcontractors, independent contractors, or anyone performingservices under this Agreement for

    4.2 The City shall supply SAFEbuilt with individual identification badges ("ID badges")for each SAFEbuilt
        employee. The City shall have the discretion to determine thetype, size and design for those ID badges.
        SAFEbuilt shall require that allemployees have their ID badges visible to the public at all time while
        performingservices under this Agreement. Lost ID badges shall be immediately reported tothe Director
        of Public Safety.

    4.3 SAFEbuilt shall provide to the City the work telephone numbers of all employees,including any mobile
        telephones that will be used while performing servicesunder this Agreement.

    4.4 The City shall provide copies and amendments of the City Code of Ordinances,Michigan State Building
        Codes, street maps or other relevant code books ormaterials to SAFEbuilt. These Code of Ordinances,
        Michigan State Codes, streetmaps and all other materials shall remain the property of the City and shall
        beturned into the City at the termination of this Agreement. SAFEbuilt shall becomefamiliar with those
        codes and any unusual applications of those codes to Cityissues. SAFEbuilt is obligated to affirmatively
        request from the City suchinformation that SAFEbuilt, based on SAFEbuilt's professional experience,
        shouldreasonably expect is available and which would be relevant to the performanceof the Services.

    4.5 SAFEbuilt shall perform the Services in accordance with this Agreementand shall promptly inform the
        City concerning ambiguities and uncertaintiesrelated to SAFEbuilt's performance that are not addressed
        by the Agreement.

    4.6 SAFEbuilt shall employ a sufficient number of employees sufficiently experiencedand knowledgeable to
        perform the Services in a timely and prompt manner andsuch employees shall at all times act in a
        professional, polite, and courteousmanner to all persons regardless of the circumstances.

                                                      Page 3 of 45 
    4.7 SAFEbuilt shall not allow employees, contractors, or subcontractors that areconvicted of specific crimes
        to do work in the City. Those crimes include,but are not limited to, fraud, theft, criminal sexual conduct,
        assaultive or violentbehavior, serious moral turpitude, gambling, prostitution, weapons violations,
        taxevasion, controlled substances, or excessive use of alcohol.

    4.8 SAFEbuilt shall promptly comply with any written City request for the City or anyof its duly authorized
        representatives to reasonably access and review anybooks, documents, and papers, other than
        SAFEbuilt’s financial records, that are pertinent to SAFEbuilt’s performance under this Agreement for
        the purpose of the City performingan audit, examination, or other reviewof the Services.

    4.9 SAFEbuilt shall comply with all applicable federal, state and local laws,ordinances, regulations, and

    4.10 SAFEbuilt shall be responsible at SAFEbuilt's expense for obtaining, and maintaining in a valid and
        effective status, all licenses and permits necessary to perform the Services unless specifically stated
        otherwise in this Agreement. SAFEbuilt shall supply copies to the City of appropriate licenses and
        permits for any individual performing services under this Agreement.

    4.11 If requested by the City, SAFEbuilt shall make the appropriate employees,contractors, subcontractors,
        agents and independent contractors available forcourt proceeding, as witnesses, expert witnesses or
        otherwise, instituted by orinvolving the City in either criminal or civil matters which involve
        servicesperformed under this Agreement, including but not limited to, appearances atpre-trials, bench
        trials, jury trial and at all other times requested by the City.

    4.12 SAFEbuilt shall make the appropriate employee, contractor, subcontractor, andindependent contractor
        available for consultation with the Director of Public Safety and theCity Attorney, or their designees, to
        discuss issues regarding litigation and/ormatters of interest to City Commission or the public.


    5.1 In performing the Services, SAFEbuilt shall use that degree of care, skill, and professionalism ordinarily
        exercised under similar circumstances by members of the same profession practicing or performing the
        substantially same or similar services in the State of Michigan. SAFEbuilt represents to the City that
        SAFEbuilt is, and its employees performing such Services are, properly licensed and/or registered
        within the State of Michigan-for the performance of the Services (if licensure and/or registration is
        required by applicable law) and that SAFEbuilt and employees possess the skills, knowledge, and
        abilities to competently, timely,and professionally perform the Services in accordance with this
        Agreement. In addition, more specific standards of SAFEbuilt performance are included within Exhibit

    5.2 In a timely manner, SAFEbuilt shall inform the Director of Public Safetyof all oralcomplaints and submit
        a copy of all written complaints it receives from thirdparties against any employee, contractor,
        subcontractor or independentcontractor of SAFEbuilt to the Director of Public Safetyand inform the
        Director of Public Safetyof any responses to the complaint or of any actions taken.

    5.3 The Parties mutually agree that SAFEbuilt's actions reflect on the reputation ofthe City. It is imperative
        to the City that SAFEbuilt treats the City and the publicwith the utmost fairness and respect. SAFEbuilt
        shall strictly comply with all theterms and conditions set out in this Agreement.


    6.1 The City of Muskegon and SAFEbuilt shall execute and adhere to the obligations of a rental lease as
        outlined in Exhibit D.

                                                      Page 4 of 45 

    7.1 The City is licensed to use BS&A software for its Building Department permitprograms. The City has
        obtained permission from BS&A to allow SAFEbuilt tohave access to the City's BS&Asoftware as long
        as that software is only usedby SAFEbuilt to perform the services under this Agreement for the City.
        SAFEbuilt acknowledges that the license to use the BS&Asoftwareterminates with the termination of this

    7.2 SAFEbuilt shall provide an original signed statement from each of its employeesacknowledging that
        he/she understands that the BS&A software is the soleproperty of BS&A and at no time may he/she
        download, copy, alter, or takeother prohibited actions regarding that software. SAFEbuilt is permitted to
        usestandard City software loaded on the City's computers leased under Section 7,for example,
        Microsoft Office and Outlook email. SAFEbuilt's right to use thesoftware applies only to work performed
        for the City and any rights to theuse of that software ceased upon their termination by SAFEbuilt and/or
        thetermination of the Agreement.

    7.3 SAFEbuilt agrees to defend, pay on behalf of, indemnify, and hold harmless theCity, its elected and
        appointed officials, employees, and volunteers against anyclaims, demands, suits or loss, and for any
        damages which may be asserted,claimed or recovered against or from the City, its elected and
        appointed officials,employees or volunteers by reason of any allegation of illegal use or misuse
        ofBS&Asoftware or a violation of the licensing agreement by SAFEbuilt.


    8.1 SAFEbuilt shall supply all of its own office supplies and materials, including, but notlimited to, postage,
        paper, envelopes, letterhead and business cards. Any inventory orsupplies not specifically set out in this
        Agreement as included in any lease, rental or useprovisions shall be the responsibility of SAFEbuilt. Any
        time SAFEbuilt uses the name"City of Muskegon" or the City logo on letterhead, documents, envelopes,
        businesscards, or other printed materials, it must also include a SAFEbuilt designation approvedby the


    9.1 Term. This Agreement shall be effective on the November 01, 2012, (the"Effective Date") and shall
        terminate onOctober 31, 2015. At the end of the three (3) year period, and upon mutual agreement of
        theparties as approved by City Commission, this Agreement may be renewed for up to atwo (2) year
        period. This Agreement may also be terminated as provided inparagraph 9.3.

    9.2 Continuing Services Required. SAFEbuilt shall perform the Services inaccordance with this Agreement
        commencing on the Effective Date until suchServices are terminated or suspended in accordance with
        this Agreement. SAFEbuilt shall not temporarily delay, postpone, or suspend the performance of
        theServices without the written consent of the City Commission, City Manager, or aperson expressly
        authorized in writing to direct SAFEbuilt's services.

    9.3 City Unilateral Termination. This Agreement may be terminated by the City forany or no reason upon
        written notice delivered to SAFEbuilt at least ninety (90)days prior to termination. In the event of the
        City's exercise of the right ofunilateral termination as provided by this paragraph:

                  9.3.1   Unless directed to continue performing work during the ninety (90) dayperiod prior to
                          termination or unless otherwise provided in any notice oftermination, SAFEbuilt shall
                          provide no further services in connection withthis Agreement after receipt of a notice of
                          termination; and

                  9.3.2   All finished or unfinished documents, data, studies and reports preparedby SAFEbuilt
                          pursuant to this Agreement shall be delivered by SAFEbuiltto the City and shall
                          become the property of the City; and
                                                      Page 5 of 45 
                  9.3.3   SAFEbuilt shall submit to the City a final accounting and final invoice ofcharges for all
                          outstanding and unpaid Services and reimbursableexpenses performed prior to
                          SAFEbuilt's receipt of notice of terminationand for any services authorized to be
                          performed by the notice oftermination as provided by Section 9.3. Such final
                          accounting and finalinvoice shall be delivered to the City within thirty (30) days of the
                          date oftermination; thereafter, no other invoice, bill, or other form of statement
                          ofcharges owing to SAFEbuilt shall be submitted to or accepted by the City.

    9.4 Termination for Non-Performance. Should a Party to this Agreement fail tomaterially perform in
        accordance with the terms and conditions of thisAgreement, this Agreement may be terminated by the
        performing Party if theperforming Party first provides written notice to the non-performing Party
        whichnotice shall specify the non-performance, provide both a demand to cure thenon-performance and
        reasonable time to cure the non-performance, and state adate upon which the Agreement shall be
        terminated if there is a failure to timelycure the non-performance. For purpose of this Section 9.4,
        "reasonable time"shall be not less than five (5) business days. In the event of a failure to timelycure a
        non-performance and upon the date of the resulting termination for nonperformance,SAFEbuilt prepare
        a final accounting and final invoice of chargesfor all performed but unpaid Services and authorized
        reimbursable expenses.Such final accounting and final invoice shall be delivered to the City within
        fifteen(15) days of the date of termination; thereafter, no other invoice, bill, or otherform of statement of
        charges owing to SAFEbuilt shall be submitted to oraccepted by the City. Provided that notice of non-
        performance is provided inaccordance with this Section 9.4, nothing in this Section 9 shall
        prevent,preclude, or limit any claim or action for default or breach of contract resultingfrom non-
        performance by a Party.

    9.5 Unilateral Suspension of Services. The City may suspend SAFEbuilt'sperformance of the Services at
        the City's discretion and for any reason bydelivery of written notice of suspension to SAFEbuilt which
        notice shall state aspecific date of suspension. Upon receipt of such notice of suspension, SafeBuilt
        shall immediately cease performance of the Services on the date ofsuspension except: (1) as may be
        specifically authorized by the notice ofsuspension (e.g., to secure the work area from damage due to
        weather or tocomplete a specific report or study); or (2) for the submission of an invoice forServices
        performed prior to the date of suspension in accordance with thisAgreement.

    9.6 Reinstatement of Services Following City's Unilateral Suspension. The City mayat its discretion direct
        SAFEbuilt to continue performance of the Servicesfollowing suspension. If such direction by the City is
        made within (30) days of thedate of suspension, SAFEbuilt shall recommence performance of the
        Services inaccordance with this Agreement. If such direction to recommence suspendedServices is
        made more than thirty-one (31) days following the date ofsuspension, SAFEbuilt may elect to: (1)
        provide written notice to the City thatsuch suspension is considered a unilateral termination of this
        Agreementpursuant to Section 9.3; or (2) recommence performance in accordance withthis Agreement;
        or (3) if suspension exceeded sixty (60) consecutive days,request from the City an equitable adjustment
        in compensation or a reasonablere-start fee and, if such request is rejected by the City, to provide
        written notice tothe City that such suspension and rejection of additional compensation isconsidered a
        unilateral termination of this Agreement pursuant to Section 9.3.Nothing in this Agreement shall
        preclude the Parties from executing a writtenamendment or agreement to suspend the Services upon
        terms and conditionsmutually acceptable to the Parties for any period of time.

    9.7 Delivery of Notice of Termination. Any notice of termination permitted by thisSection 9 and its
        subsections shall be deemed given as set out in Section 15.13of this Agreement titled "Notices".

10.0      INSURANCE
    10.1 Insurance Generally. SAFEbuilt shall obtain and shall continuously maintainduring the term of this
        Agreement insurance of the kind and in the amountsspecified as follows:

        The Contactor shall secure and maintain the following ("RequiredInsurance"):

                                                      Page 6 of 45 
           Worker's compensation insurance to cover obligations imposed byapplicable law for any employee
         engaged in the performance ofwork under this Agreement, and Employer's Liability insurancewith
         minimum limits of one hundred thousand dollars ($100,000)each accident, five hundred thousand
         dollar ($500,000) disease -policy limit, and one hundred thousand dollars ($100,000) disease- each
         employee. Evidence of qualified self-insured status maybe substituted for the worker's compensation
         requirements of thisparagraph.

            Commercial general liability insurance with minimum combinedsingle limits of one million dollars
         ($1,000,000) each occurrenceand two million dollars ($2,000,000) general aggregate. Thepolicy shall
         be applicable to all premises and operations. Thepolicy shall include coverage for bodily injury, broad
         form propertydamage (including completed operations), personal injury(including coverage for
         contractual and employee acts), blanketcontractual, independent Corporations, an Annual
         ContractAggregate Limit endorsement, and products and completedoperations. The policy shall
         contain a severability of interestprovision, and shall be endorsed to include the Municipalityincluding
         Architects and Engineers, all elected and appointedofficials, all employees and volunteers, boards,
         commissionsand/or authorities and their board members, employees, andvolunteers as additional
         insured. No additional insuredendorsement shall contain any exclusion for bodily injury orproperty
         damage arising from completed operations.

            Comprehensive Automobile Liability insurance with minimumcombined single limits for bodily injury
         and property damage of notless than of One Million Dollars ($1,000,000.00) each occurrencewith
         respect to each of SAFEbuilt's owned, hired and non-ownedvehicles assigned to or used in
         performance of the Services. Thepolicy shall contain a severability of interest’s provision.
         Suchinsurance coverage must extend to all levels of subcontractors.Such coverage must include all
         automotive equipment used in theperformance of the Agreement, both on the work site and off
         thework site, and such coverage shall include non-ownership andhired cars coverage. Such insurance
         shall be endorsed to namethe City as Certificate Holder and name the City, and its electedofficials,
         officers, employees and agents as additional insuredparties.

            Professional Liability (errors and omissions) Insurance with aminimum limit of coverage of One
         Million Dollars ($1,000,000) perclaim and annual aggregate. Such policy of insurance shall beobtained
         and maintained for one (1) year following completion ofall Services under this Agreement. Such policy
         of insurance shallbe endorsed to include the City as a Certificate Holder.

         The Required Insurance shall be procured and maintained withinsurers licensed and admitted in
         Michigan with an A- or betterrating as determined by Best's Key Rating Guide. All RequiredInsurance
         shall be continuously maintained to cover all liability,claims, demands, and other obligations assumed
         by SAFEbuilt.

    10.2 Additional Requirements for All Policies. In addition to specific requirementsimposed on insurance by
        this Section 10 and its subsections, insurance shallconform to all of the following:

                 10.2.1 Insurance carried or obtained by the City, its officers, or its employeesshall be in
                        excess of and not contributory insurance to that provided bySAFEbuilt; provided,
                        however, that the City shall not be obligated toobtain or maintain any insurance
                        whatsoever for any claim, damage, orpurpose arising from or related to this
                        Agreement and the Services. SAFEbuilt shall not be an insured party for any City-
                        obtained insurance policyor coverage.

                 10.2.2 SAFEbuilt shall be solely responsible for any deductible losses forRequired Insurance.

                 10.2.3 No policy of insurance shall contain any exclusion for bodily injury orproperty damage
                        arising from completed operations.

                                                    Page 7 of 45 
                  10.2.4 Every policy of insurance shall provide that the City will receive notice noless than
                         thirty (30) days prior to any cancellation, termination, or amaterial change in such

    10.3 Failure to Obtain or Maintain Insurance. SAFEbuilt's failure to obtain andcontinuously maintain
        policies of insurance in accordance with this Section 10 andits subsections shall not limit, prevent,
        preclude, excuse, or modify any liability,claims, demands, or other obligations of SAFEbuilt arising from
        performance ornon-performance of this Agreement. Failure on the part of SAFEbuilt to obtain andto
        continuously maintain policies providing the required coverage, conditions,restrictions, notices, and
        minimum limits shall constitute a material breach of thisAgreement upon which the City may
        immediately terminate this Agreement, or, atits discretion, the City may procure or renew any such
        policy or any extendedreporting period thereto and may pay any and all premiums in
        connectiontherewith, and all monies so paid by the City shall be repaid by SAFEbuilt to theCity
        immediately upon demand by the City, or at the City's sole discretion, the Citymay offset the cost of the
        premiums against any monies due to SAFEbuilt from theCity pursuant to this Agreement.

    10.4 Insurance Certificates. Prior to commencement of the Services, SAFEbuilt shallsubmit to the City
        certificates of insurance for all Required Insurance. Insurancelimits, term of insurance, insured parties,
        and other information sufficient todemonstrate conformance with this Section 10 and its subsections
        shall beindicated on each certificate of insurance. Certificates of insurance shall referenceSAFEbuilt /
        Building Inspection Services. The City may request and SAFEbuiltshall provide within ten (10) business
        days of such request a current certifiedcopy of any policy of Required Insurance and any endorsement
        of such policy.The City may, at its election, withhold payment for Services until the requestedinsurance
        policies are received and found to be in accordance with theAgreement.


    11.1 Any work product, materials, and documents produced by SAFEbuilt pursuant tothis Agreement shall
        be and remains property of the City and shall not be madesubject to any copyright unless authorized by
        the City. SAFEbuilt hereby assignsto the City the copyright to all works prepared, developed, or created
        pursuant tothe Services outlined in this Agreement, including the rights to: (1) reproduce thework; (2)
        prepare derivative works; (3) distribute copies to the public by sale,rental, lease, or lending; (4) perform
        the works publicly; and (5) to display thework publicly. SAFEbuilt waives its rights to claim authorship of
        the works, toprevent its name from being used in connection with the works, and to preventdistortion of
        the works.

         Other materials, methodology and proprietary work used or provided by SAFEbuilt to the City not
         specifically created and delivered pursuant to the Servicesoutlined in this Agreementmay be protected
         by a copyright held by SAFEbuiltand SAFEbuilt reserves all rights granted to it by any copyright. The
         City shallnot reproduce, sell, or otherwise make copies of any copyrighted material,subject to the
         following exceptions: (1) for exclusive use internally by City staffand/or employees; or (2) pursuant to a
         request under the Michigan Freedom ofInformation Act, MCl 15.231 et. seq., or any Federal open
         records act, to theextent that such statutes apply; or (3) pursuant to law, regulation, or court
         order.SAFEbuilt waives any right to prevent its name from being used in connectionwith the Services.

    11.2 SAFEbuilt will be provided with a copy of the City's Freedom of Information Act("FOIA") policy. The
        City is responsible for responses to FOIA requests and SAFEbuilt shall not directly respond to any third
        parties regarding any received FOIArequests. Upon receipt of a FOIA request, SAFEbuilt shall
        immediately give thatrequest to the CityClerk. SAFEbuilt shall provide specific information requested by
        the City forresponse to the FOIA request by the date and time requested by the City Clerk orin a specific
        format is so requested by the City Clerk.

    11.3 If SAFEbuilt receives a claim for damages, a Summons or Complaint, asubpoena or other document
        concerning a request for money damages, a threatof a law suit, or any court action proceeding,
        SAFEbuilt shall immediately handdeliver these documents to the City Clerk.
                                                      Page 8 of 45 

    12.1 SAFEbuilt shall perform the Services as an independent contractor and shall not bedeemed by virtue
        of this Agreement to have entered into any partnership, joint venture,employer/employee or other
        relationship with the City other than as a contracting partyand independent contractor. City and
        SAFEbuilt agree to jointly hire the City’s Building Official. Although jointly employed, City and SAFEbuilt
        agree City has no obligation to compensate the Building official in any way and that all compensation,
        fringe benefits, including retirement programs and insurance, shall be provided by SAFEbuilt. The
        Building Official shall report to the Director of Public Safety, but SAFEbuilt shall be fully responsible for
        training, overseeing, and managing the Building Official. The City shall not be obligated to secure, and
        shall notprovide, any insurance coverage or employment benefits of any kind or type to or forSAFEbuilt
        or SAFEbuilt's employees, sub-consultants, contractors, agents, orrepresentatives, including coverage
        or benefits related but not limited to: local, state, orfederal income or other tax contributions; insurance
        contributions (e.g., FICA); workers'compensation; disability, injury, or health; professional liability
        insurance, errors andomissions insurance; or retirement account contributions.


    13.1 SAFEbuilt shall refrain from providing services to other persons, firms, or entities thatwould create a
        conflict of interest for SAFEbuilt with regard to providing the Servicespursuant to this Agreement.
        SAFEbuilt shall not offer or provide anything of benefit toany City official or employee that would place
        the official or employee in a position ofviolating the public trust as provided under the City Charter, City
        Code of Ordinance,state or federal statute, case law or ethical principles.

14.0      REMEDIES

    14.1 In addition to any other remedies provided for in this Agreement, and withoutlimiting its remedies
        available at law, the City may exercise the following remedialactions if SAFEbuilt substantially fails to
        perform the duties and obligations of thisAgreement. Substantial failure to perform the duties and
        obligations of thisAgreement shall mean a significant, insufficient, incorrect, or improperperformance,
        activities or inactions by SAFEbuilt. The remedial actions include:

                  14.1.1 Suspend SAFEbuilt's performance pending necessary corrective action asspecified by
                         the City without SAFEbuilt's entitlement to an adjustment inany charge, fee, rate, price,
                         cost, or schedule; and/or

                  14.1.2 Withhold payment to SAFEbuilt until the necessary services or correctionsin
                         performance are satisfactorily completed; and/or

                  14.1.3 Deny payment for those services which have not been satisfactorilyperformed, and
                         which, due to circumstances caused by SAFEbuilt, cannotbe performed, or if
                         performed would be of no value to the City; and/or

                  14.1.4 Terminate this Agreement in accordance with this Agreement.

                  The foregoing remedies are cumulative and the City, in its sole discretion, may exerciseany or
                  all of the remedies individually or simultaneously.


                                                      Page 9 of 45 
    15.1 No Waiver of Rights. A waiver by any Party to this Agreement of the breach ofany term or provision of
        this Agreement shall not operate or be construed as awaiver of any subsequent breach by either Party.
        The City's approval oracceptance of, or payment for, services shall not be construed to operate as
        awaiver of any rights or benefits to be provided under this Agreement. Nocovenant or term of this
        Agreement shall be deemed to be waived by the Cityexcept in writing signed by the City Commission or
        by a person expressly authorizedto sign such waiver by resolution of the City Commission of the City
        and any writtenwaiver of a right shall not be construed to be a waiver of any other right or to be
        acontinuing waiver unless specifically stated.

    15.2 No Waiver of Governmental Immunity. Nothing in this Agreement shall beconstrued to waive, limit, or
        otherwise modify any governmental immunity thatmay be available by law to the City, its officials,
        employees, contractors, oragents, volunteers or any other person acting on behalf of the City and,
        inparticular, governmental immunity afforded or available pursuant to the MichiganGovernmental
        Immunity Act, MCL 691.1401, et. seq.

    15.3 Affirmative Action.SAFEbuilt will not discriminate against any employee orapplicant for employment
        because of race, color, religion, sex or national origin.SAFEbuilt will take affirmative action to ensure
        applicants are employed, andemployees are treated during employment without regard to their race,
        color,religion, sex or national origin. Such action shall include, but not be limited to thefollowing:
        employment, upgrading, demotion or transfer; recruitment orrecruitment advertising; layoff or
        termination; rates of payor other forms ofcompensation; and selection for training, including

    15.4 Binding Effect. The Parties agree that this Agreement, by its terms, shall bebinding upon the
        successors, heirs, legal representatives, and assigns.

    15.5 No Third Party Beneficiaries. Nothing contained in this Agreement is intended toor shall create a
        contractual relationship with, cause of action in favor of, or claimfor relief for, any third party, including
        any agent, Sub-consultant or subcontractorof SAFEbuilt. Absolutely no third party beneficiaries are
        intended bythis Agreement. Any third-party receiving a benefit from this Agreement is anincidental and
        unintended beneficiary only.

    15.6 Governing Law, Venue, and Enforcement. This Agreement shall be governed byand interpreted
        according to the law of the State of Michigan. Venue for anyaction arising under this Agreement shall be
        in the County of Muskegon. If there is any conflict between the language of this Agreement andany
        exhibit or attachment, the language of this Agreement shall govern.

    15.7 Survival of Terms and Conditions. The Parties understand and agree that allterms and conditions of
        the Agreement that require continued performance,compliance, or effect beyond the termination date of
        the Agreement shall survivesuch termination date and shall be enforceable in the event of a failure to
        performor comply.

    15.8 No Assignment. Neither Party shall assign all or part of the rights, duties,obligations, responsibilities,
        or benefits set forth in this Agreement to anotherparty or entity.

    15.9 Paragraph Captions. The captions of the paragraphs are set forth only for theconvenience and
        reference of the Parties and are not intended in any way todefine, limit or describe the scope or intent of
        this Agreement.

    15.10 Integration and Amendment. This Agreement represents the entire andintegrated agreement between
        the City and SAFEbuilt and supersedes all priornegotiations, representations, or agreements, either
        written or oral, unlessspecified herein. Any amendments to this must be in writing and be signed byboth
        the City and SAFEbuilt.

                                                      Page 10 of 45 
    15.11 Severability. Invalidation of any of the provisions of this Agreement or anyparagraph sentence, clause,
        phrase, or word herein or the application thereof inany given circumstance shall not affect the validity of
        any other provision of thisAgreement.

    15.12 Incorporation of Exhibits. Unless otherwise stated in this Agreement, exhibits,applications, or
        documents referenced in this Agreement shall be incorporatedinto this Agreement for all purposes. In
        the event of a conflict between anyincorporated exhibit and this Agreement, the provisions of this
        Agreement shallgovern and control.

    15.13 Notices. Unless otherwise specifically required by a provision of this Agreementany notice required or
        permitted by this Agreement shall be in writing and shallbe deemed to have been sufficiently given for
        all purposes if sent by certified mailor registered mail, postage and fees prepaid, addressed to the Party
        to whomsuch notice is to be given at the address set forth below or at such other addressas has been
        previously furnished in writing, to the other Party. Such notice shallbe deemed to have been given when
        deposited in the United States Mailproperly addressed to the intended recipient.

            If to the City:                                      If to SAFEbuilt:
                                                                 Mike McCurdie, President
            Director of Public Safety
                                                                 SAFEbuilt Corporate Offices
            City of Muskegon
                                                                 3755 Precision Drive, Suite 140
            PO Box 536 / 933 Terrance Street
                                                                 Loveland, CO 80538
            Muskegon, MI 49440

            With Copy to:                                        With Copy to:
            John C. Schrier                                      David Thomsen, Vice President
            Parmenter O-Toole Attorneys at Law                   SAFEbuilt Corporate Offices
            601 Terrace Street                                   3755 Precision Drive, Suite 140
            Muskegon, MI 49440                                   Loveland, CO 80538


    16.1 Indemnification and Hold Harmless. To the fullest extent permitted by law, SAFEbuilt agrees to
        defend, pay on behalf of, indemnify, and hold harmless the City its elected and appointed officials,
        employees and volunteers and othersworking on behalf of the City against any and all claims, demands,
        suits,or loss, including all costs connected therewith, and for any damages which maybe asserted,
        claimed or recovered against or from the City, its electedand appointed officials, employees, volunteers
        or others working on behalf of theCity, by reason of personal injury, including bodily injury or death
        and/orproperty damage, including loss of use thereof which arises out of or is in anyway connected or
        associated with this Agreement. The City shall indemnify SAFEbuilt from any claims against SAFEbuilt
        resulting from the gross negligence of theCity. At no time does the City waive its right to governmental

    16.2 Force Majeure. Neither SAFEbuilt nor the City shall be liable for any delay in, orfailure of performance
        of, any covenant or promise contained in this Agreement,nor shall any delay or failure constitute default
        or give rise to any liability fordamages if, and only to extent that, such delay or failure is caused by
        "forcemajeure." As used in this Agreement, "force majeure" means acts of God, acts ofthe public
        enemy, unusually severe weather, fires, floods, epidemics,quarantines, strikes, labor disputes and
        freight embargoes, to the extent suchevents were not the result of, or were not aggravated by, the acts
        or omissions ofthe non-performing or delayed party.

                                                     Page 11 of 45 
    16.3 Authority. The individuals executing this Agreement represent that they areexpressly authorized to
        enter into this Agreement on behalf of City andSAFEbuilt and bind their respective entities.

THIS AGREEMENT is executed and made effective as provided above.

City of Muskegon, MI                                    Safe Built Michigan, Inc.

_________________________________                       _________________________________
Signature                                               Signature

Name: ___________________________                       Name: ___________________________

Title: ____________________________                     Title: ____________________________

Date: _________/_________/_________                     Date: _________/_________/_________

ATTEST Signature

Name / Title

Date: _________/_________/_________

                                                   Page 12 of 45 
EXHIBIT A: Scope of Services
Administrative Services
     Provide onsite administrative staff
     Provide permit counter intake during City Hall business hours
     Inform applicant when submitting plans of what the maximum amount of time it will be to first comments
     and also the estimated time to first comments and/or completion
     Answer all application questions at the counter or over the phone and provide ongoing communication
     as needed
     Review and provide handouts at the counter
     Administer the City of Muskegon contractor registration program
     Provide input, tracking, and reporting using the City’s current system (BS&A) – or if requested
     SAFEbuilt’s building department software
     Implement performance measurements to ensure agreed upon service levels
     Provide scheduling support to inspection staff
     Prepare reports within mutually agreed upon timeframes and frequencies
     Follow up on complaints and provide resolution
     Provide a minimum of 2 community partner educational workshops per contract year. Such as small
     business, homeowner deckfinish, homeowner basement finish workshops
     Provide a minimum of 2 community partner scholarships at $500 each per contract year
     Provide emergency disaster response as it relates to building code – available via cell phone after hours

Building Department Services
      Monitor and enforce adopted building codes, related codes, and amendments
      Demonstrate experience and applied knowledge in the aspects of plan review and building and
      construction inspections related to historic structures
      Document areas of non-compliance using written records, electronic communications, photographs or
      other appropriate means
      Provide training for our inspectors on City of Muskegon ordinances and amendments
      Manage and pay for CEU training required to maintain Act 54 compliance
      Be available for meetings as requested – including representing the City at HBOA meetings as needed
      Go through existing records , provide clean up, and then make sure department is facilitating the proper
      retention of records in accordance with adopted retention schedules on an ongoing basis
      Work in partnership with the City of Muskegon staff to pursue the City providing building code
      compliance and consulting services to the local school districts, local community colleges and local
      colleges as allowed by all applicable regulations
      Work with the City Clerk to facilitate Freedom of Information Act (FOIA) requests
      Report directly to the position of Director of Public Safety

Plan Review Services
     Accept and perform plan review
     Work with the applicant on submittal requirements in order to ensure the process is not held up for
     minor issues
     Examine all commercial and residential projects including drawings, specifications, computations, and
     additional data
     Determine if plans conform to the required strengths, stresses, strains, loads, and stability of adopted
     building codes, local amendments, and all other pertinent laws and ordinances
     Perform the following reviews: building code, accessibility, mechanical, electrical, plumbing, use and
     occupancy classification, general building heights and areas, construction type, means of egress,
     accessibility, energy code, and foundation
     Be available for pre-submittal meetings in order to help facilitate the timeliness of reviews and the
     completeness of submittals
     Coordinate plan review tracking, reporting, and interaction with applicable departments
     Add resources as needed to keep reviews on schedule and provide needed expertise
     Review all revisions and be available for consultation after review is completed

                                                  Page 13 of 45 
Inspection Services
     Coordinate all inspection requests
     Offer the option of having the inspection performed in the morning or the afternoon – am/pm inspections
     Offer a two hour inspection window to homeowners along with a 30 minute call ahead notification
     Perform inspections of residential and nonresidential buildings to determine that construction activity
     complies with approved plans, applicable codes and ordinances
     Perform all inspections as per adopted building codes and local amendments including liquor license
     inspections and coordination with Fire Marshall as warranted
     Provide onsite inspection consultations to citizens and contractors
     Observe safety and security procedures and report potentially unsafe conditions
     Identify and document any areas of non-compliance and suggest alternate means
     Notify appropriate jurisdiction staff when we observe code violations
     Perform work associated with abatement of dangerous buildings as allowed by adopted ordinance and
     state law
     Process and deliver stop-work notices for non-conforming building activities – as approved by the
     Building Official
     Leave a copy of the inspection notice with appropriate site personnel – as approved by the Bldg. Official

Administrative Support/Permit Technician Services
     Provide a qualified team member to facilitate the permitting process from initial permit intake to final
     issuance of permit
     Determine and collect fees if desired by the City of Muskegon
     Provide inspection scheduling and tracking to ensure code compliance
     Provide customer service
     Process permits that require minimal or no plan review at time of submittal as approved by the Building
     Respond to citizen complaints and communicate effectively with citizens to minimize impact of building
     activities on the public and neighborhoods

Existing Open Permits
SAFEbuilt will appropriately close any permits that remain open at the time of service changeover.
SAFEbuilt will final open permits at a rate of $40.00 per permit – to be billed when closed.

SAFEbuilt Provides
SAFEbuilt would propose leasing office space from the City of Muskegon and will provide:
    Vehicles, vehicle maintenance, and insurance
    All hiring expenses
    Ongoing training and certification of employees
    Office supplies and business papers
    All office furniture and equipment –including copier and desk phones.
    Office computer hardware and software
    Cell phones and usage

City Provided Location & Equipment
City of Muskegon will:
      Provide the former Leisure Service for lease to SAFEbuilt at the rate of $1000 per month. This lease
      rate includes all utilities except for land lines for phone.
      Provide phone land lines and bill SAFEbuilt at actual cost with no markup these can be included in the
      lease for space at actual cost per line
      Allow SAFEbuilt to service other W. Michigan communities from the leased space within City Hall
      Negotiate in good faith with regard to selling and/or include in the lease for space; existing cubicle
      dividers, desks, file cabinets, shelves, tables, floor mats and wall document holders that are currently in
      the Leisure Services space
      Absorb costs associated with the electronic storage of department permit and inspection records –
      SAFEbuilt will facilitate the conversion and storage process

                                                    Page 14 of 45 
EXHIBIT B: Fee Schedule
SAFEbuilt does not utilize a company-wide fee schedule. A majority of our fees are based on an appropriate
percentage of the jurisdictions adopted fee schedule for services being provided by SAFEbuilt. SAFEbuilt
proposes services to be performed at the following rates. SAFEbuilt’s fees are all inclusive with no separate
billing for:

    •   Wages/Benefits
    •   Mileage/Vehicle Expense
    •   Materials
    •   Disbursement (copying, telephone rates, courier services)

Fee Schedule
SAFEbuilt will work to close all open permits at the rate of $40.00 per permit – billed monthly when closed

Building Department Related Fees – 80% of all adopted building department fees
Except the following:
 • Rental property and associated fees
 • Tele- communication outlets
 • Housing Warrant Inspection Fees
 • Property Maintenance code approval

Liquor License Inspection & Re-Inspection Fees – 80% of fee

Hourly Rate Fee - $70.00 (see Section 3.3)

Annual Volume Discount Incentive
SAFEbuilt will offer the following incentive program to the City of Muskegon. This program is designed to
encourage surrounding communities to share building department and related services with SAFEbuilt as the
provider. Discounts are given to all participating communities based on volume of activity for each fiscal year
(July 1st – June 30th). Activity and associated revenue will be evaluated yearly and the appropriate discount
will be applied to the following year’s fees.

    •   Annual Revenue of $ 0.00 - $ 500,000 - 0% Discount
    •   Annual Revenue of $ 500,000 - $ 750,000 – 2.5% Discount
    •   Annual Revenue of $750,000 - $1,000,000 – 5% Discount
    •   Annual Revenue of $ 1,000,000 – plus – 10% Discount

                                                   Page 15 of 45 
EXHIBIT C: Performance Standards
We use a number of performance measures to gauge the effectiveness of our systems and the efficiency of
our staff. The most visible of quantitative measures are the following:
Area            Performance Measurement              Goal                             Comments  
Overall         Customer Service Ratings            100%  SAFEbuilt will utilize customer service surveys to 
Department                                       satisfaction determine if department activity is satisfactory for 
                                                              the end user and to identify areas of strengths and 
                                                              areas that need improvement. 
Administrative  Percentage of walk‐ins              100%  A front counter log will be reviewed each month to 
Support         experiencing counter wait times               ensure that any customer requests or issues are 
                of less than 10 minutes                       handled quickly and effectively so as not to be an 
                                                              inconvenience.  The data will be compiled into a 
Administrative  Percentage of phone                 100%  Inquiries and complaints from walk‐in traffic, emails 
Support         inquiries/information                         and phone calls will be tracked and compiled into a 
                requests/complaints handled                   report. 
                within 24 hours 
 Plan Review  Residential (IRC) plan reviews –      100%  City of Muskegon permit software should capture 
                maximum time to first comment                 this information.  If not, SAFEbuilt will utilize its 
                is 5 business days.                           proprietary software to provide reporting. The 5 
                                                              business day’s time frame is a maximum time to 
                                                              comments.  All plans will be reviewed on an As Soon 
                                                              As Possible (ASAP) basis. Estimated time to 
                                                              completion will be communicated to applicant.  
 Plan Review  Multi‐family plan reviews             100%  City of Muskegon permit software should capture 
                maximum time to first                         this information.  If not, SAFEbuilt will utilize its 
                comments is 10 business days.                 proprietary software to provide reporting. The 10 
                Maximum time to  second                       and 5 business day’s time frames are a maximum 
                comments  is 5 business days                  time to comments.  All plans will be reviewed on an 
                                                              As Soon As Possible (ASAP) basis. Estimated time to 
                                                              completion will be communicated to applicant. 
 Plan Review  Small Commercial (<$5M in             100%  City of Muskegon permit software should capture 
                valuation) plan reviews first                 this information.  If not, SAFEbuilt will utilize its 
                comments within 10 business                   proprietary software to provide reporting. The 10 
                days/second comments 5                        and  5 business day’s time frames are  a maximum 
                business days                                 time to comments.  All plans will be reviewed on an 
                                                              As Soon As Possible (ASAP) basis. Estimated time to 
                                                              completion will be communicated to applicant. 
 Plan Review  Large Commercial (>$5M in             100%  City of Muskegon permit software should capture 
                valuation) plan reviews first                 this information.  If not, SAFEbuilt will utilize its 
                comments within 15 business                   proprietary software to provide reporting. The 15 
                days/second comments 10                       and 10 business day’s time frames are a maximum 
                business days                                 time to comments.  All plans will be reviewed on an 
                                                              As Soon As Possible (ASAP) basis. Estimated time to 
                                                              completion will be communicated to applicant. 
Building  and  All inspections performed            100%  City  of  Muskegon  permit  software  should  capture 
Trade           within 24 hours of request                    this  information.    If  not,  SAFEbuilt  will  utilize  its 
Inspections     unless otherwise requested by                 proprietary  software  to  provide  reporting.  The 
                applicant                                     maximum time to complete a scheduled inspection is 
                                                              24 hours – this does not include non business days or 
                                                              City holidays.
                                                             Page 16 of 45 

EXHIBIT D: Lease Agreement

                            CITY OF MUSKEGON



                        SAFEBUILT MICHIGAN, INC.



             Dated: November 01, 2012

             Premises in the City Hall Building
             City of Muskegon
             County of Muskegon
             State of Michigan

             Suite – (Former Leisure Services Space)

                                   Page 17 of 45 

THIS LEASE, made November 01, 2012, between the City of Muskegon, a Michigan municipality
(“Landlord” or “the City”) of 933 Terrace Street, Muskegon, Michigan, 49443, and SAFEbuilt
Michigan, Inc., a Michigan foreign profit corporation (“Tenant”);

                                      ARTICLE I

     1.01 DEFINITIONS:       As used herein the following terms and phrases shall have the
meanings indicated:

             A.     Commencement Date: November 01, 2012

             B.     Term: The period of November 01, 2012 through October 31, 2015 ending at
                    midnight of the last day.

             C.     Rent Commencement Date: November 01, 2012.

             D.     Demised Premises: Suite – (Former Leisure Services Space), which is N/A
                    square feet of office space, located on the second floor within the building
                    containing the City of Muskegon’s City Hall at 933 Terrace Street,
                    Muskegon, Michigan, 49443. See Exhibit A, 2nd floor plan of City Hall,
                    highlighting Demised Premises.

               E.    Common Areas: All areas, spaces and improvements which Landlord
makes available from time to time for the common use and benefit of Tenant, including, without
limitation, customer parking spaces, roads, walkways, promenades, sidewalks, landscaped and
planted areas, public rest rooms, and those portions of utility and sewer lines and systems and
fire protection and sprinkler alarm systems serving the common use and benefit of Tenant.

             F.    Landlord:   The City of Muskegon, the owner of the fee of the Demised

              G. Requirements: All laws, statutes, ordinances (including, but not limited to,
building codes and zoning regulations and ordinances), orders, rules, regulations and
requirements of all federal, state, county and municipal governments, and the appropriate
agencies, officers, departments, boards and commissions thereof, and the board of fire
underwriters and/or the fire insurance rating organization or similar organization performing the
same or similar functions, whether now or hereafter in force, applicable to the Building or any
part thereof and/or the Demised Premises or the use or manner of use of the Building or any
part thereof and/or the Demised Premises or the sidewalks and curbs adjacent thereto.

           H. The Building: The structure located at 933 Terrace Street, in which the
Demised Premises are located and in which City of Muskegon City Hall is located.

                                            Page 18 of 45 
                                    ARTICLE II
                            DEMISE AND CONSTRUCTION
       2.01 DEMISE. Upon and subject to the terms and conditions of this Lease, Landlord
hereby leases to Tenant, and Tenant hereby hires from Landlord, the Demised Premises, for
the Term. Tenant acknowledges that the dimensions, shape and location of the Demised
Premises as described herein are approximate. Notwithstanding the foregoing, Landlord
reserves exclusively to itself and Tenant shall have no right in and to (a) the use of the exterior
faces of all perimeter walls, (b) the use of the roof, (c) the use of the land, improvements and
space below the bottom of the lower floor slabs of the Demised Premises and above the
interior surface of the ceiling of the Demised Premises, and (d) the use of the improvements
and space above the highest ceiling of the Demised Premises. Landlord also reserves and
Tenant shall have no right in and to the air rights above Tenant's office space.

      2.02 CONSTRUCTION. Tenant shall accept the Demised Premises in their present
“AS IS” condition and Landlord shall have no work to perform whatsoever with respect to the
Demised Premises.

       2.03 FURNITURE. Landlord shall provide any cubicle dividers, desks, file cabinets,
shelves, tables, floor mates, and/or wall document holders that are existing in the Demised
Premises on the Commencement Date. The use of the existing property shall be included in the
Fixed Rent and be included as part of the Demised Premises. Landlord shall not provide any
additional office furniture or equipment.

       2.04 ACCEPTANCE OF DEMISED PREMISES. Tenant’s occupancy of Suite –
(Former Leisure Services Space)shall be conclusive evidence against Tenant as an admission
that every part of the Demised Premises is accepted "as is". Landlord shall have no
responsibility in any respect for damages to property of Tenant caused by water, flooding,
waves or fluids of any nature or origin whatsoever. Tenant hereby waives any and all benefits
or rights to which Tenant might become entitled by reason of any and all provisions of law that
permit a tenant to make repairs at the expense of a landlord or to terminate a lease by reason of
the condition of the Demised Premises.

                                       ARTICLE III
                             FIXED RENT AND SECURITY

       3.01 PAYMENT OF FIXED RENT. Commencing upon the Rent Commencement Date,
Tenant shall pay rent at the monthly rate of $1000.00, in advance of the first day of each month
during the Term, except that if the Rent Commencement Date is not the first day of a month,
Fixed Rent for the period commencing on the Rent Commencement Date and ending on the last
day of the month in which the Rent Commencement Date occurs shall be apportioned on the
basis of the number of days in said month as compared to 365 days and paid on the Rent
Commencement Date. The Fixed Rent shall be paid promptly when due, in lawful money of the
United States, without notice or demand and without deduction, abatement, counterclaim or
setoff of any amount or for any reason whatsoever, to Landlord at the address of Landlord set
forth at the head of this Lease or such other address as Landlord may designate or to such
other person as Landlord may designate.

                                             Page 19 of 45 
        3.02 LATE CHARGES AND RETURN CHECK CHARGES. If payment of any Fixed
Rent shall not have been paid by the date on which such amount was due and payable a late
charge equal to the greater of (i) FIFTY DOLLARS ($50.00) and (ii) one and one-half percent
(1-1/2%) per calendar month or any part thereof (or the then maximum lawful interest rate, if
less), from the date on which such amount was due, on the amount overdue shall, at the
Landlord's option, be payable as damages for Tenant's failure to make prompt payment. In
addition to any other penalties or remedies available to Landlord in the event of any late
payment by Tenant, if any check in payment of any Fixed Rent is returned to Landlord by
Tenant's bank by reason of insufficient funds, uncollected funds or otherwise, a return check
administrative charge of FIFTY DOLLARS ($50.00) shall be payable to Landlord by Tenant.
The late charges and return check administrative charges for any month shall be payable the
first day of the following month, and in default of payment of any such charges, Landlord shall
have (in addition to all other remedies) the same rights as provided in this Lease for
nonpayment of Rent. Landlord and Tenant agree that the foregoing late charges and return
check administrative charges represent a reasonable estimate of the costs which Landlord will
incur by reason of late payment by Tenant and returned checks, and are fair compensation to
Landlord for its loss suffered by such late payment or returned check. Nothing in this Section
contained and no acceptance of late charges by Landlord shall be deemed to extend or change
the time for payment of Fixed Rent.

       3.03 ACCORD AND SATISFACTION. No payment by Tenant or receipt by Landlord of
any lesser amount than the amount stipulated to be paid hereunder shall be deemed other than
on account of the earliest stipulated Fixed Rent nor shall any endorsement or statement on any
check or letter be deemed an accord and satisfaction, and Landlord may accept any check or
payment without prejudice to Landlord's right to recover the balance due or to pursue any other
remedy available to Landlord.

      3.04   SECURITY DEPOSIT: None required.

       3.05 TAXES AND OTHER GOVERNMENT CHARGES.Tenant shall pay, before any
penalty or interest attaches, to Landlord beginning on the Commencement Date, the amount of
general property taxes, special taxes, lessee-user taxes, special assessments, and other
governmental charges of any kind whatsoever levied or assessed against or with respect to the
Premises at any time during the Term of this Lease which are attributable to an increase in
taxable value of Landlord's property based upon Tenant’s lease. Tenant shall pay, before any
penalty or interest attaches, all personal property taxes levied or assessed against the personal
property of Tenant located upon the Demised Premises, and all personal property taxes levied
or assessed against any and all personal property included under the Fixed Rent, and shall,
upon written request, furnish to Landlord duplicate receipts thereof. Tenant shall pay, before
penalty or interest attaches, special assessments, income (including, any privilege or excise
taxes based on gross revenue), and all other taxes levied on Tenant's business.

                                 ARTICLE IV
                          COMMON AREAS AND PARKING

provisions of Section 7.04, Landlord will operate, manage, equip, light, repair and maintain, or
cause to be operated, managed, equipped, lighted, repaired and maintained, the Common
Areas for their intended purposes. Landlord reserves the right, at any time and from time to
                                            Page 20 of 45 
time to make changes, additions, alterations or improvements in and to such Common Areas
provided same shall not unreasonably block or interfere with Tenant's means of ingress or
egress to and from the Demised Premises.

        4.02 USE OF COMMON AREAS. Tenant and its licensees and their respective
officers, employees, agents, customers and invitees, shall have the non-exclusive right, in
common with Landlord and all others to whom Landlord has granted or may hereafter grant
such rights. Landlord reserves the right, at any time and from time to time, to close temporarily
all or any portions of the Common Areas for any of the following purposes when in Landlord's
reasonable judgment any such closing is necessary or desirable: to make repairs or changes
therein or to effect construction, repairs or changes, to prevent the acquisition of public rights in
such areas, to protect or preserve persons or property and Landlord may do such other acts in
and to the Common Areas as in its judgment may be desirable. While conducting business after
regular business hours on weeknights or weekends, Tenant may access the public restrooms.
Tenant’s clients may be permitted to use the public restrooms but are not permitted to enter any
other part of the City Hall building closed to the public after regular business hours on
weeknights and weekends.

       4.03 PARKING. Tenant and its officers, agents, and employees shall park their
vehicles only in areas from time to time designated by Landlord as the areas for such parking.
Tenant shall, upon written notice from Landlord, within five (5) days, furnish Landlord, or its
authorized agent, the State automobile license tag number assigned to its vehicle or vehicles
and the vehicles of all of its officers, agents and employees employed in the Demised Premises.
Landlord, after notice to Tenant that Tenant or any of its officers, agents or employees are not
parking in said designated parking areas or off-premises, as applicable, may, at its option, in
addition to any other remedies it may have, tow away such vehicles at Tenant's expense.

                                          ARTICLE V
                               UTILITIES AND SERVICES

        5.01 UTILITIES AND MECHANICAL MAINTENANCE. Landlord shall furnish heat,
electricity and water/sewer utilities serving Tenant and charges for said utilities shall be included
in the Fixed Rent. Tenant shall make all necessary arrangements for internet services and shall
be responsible for all associated charges for said utilities. The City of Muskegon will provide
phone land lines and bill SAFEbuilt Michigan, Inc. at actual cost with no markup. Separate
telephone and internet lines are required for Tenant that shall not be connected to the telephone
or internet systems used by City employees in the building.

       5.02 MAIL. Tenant shall not receive mail at any City office within City Hall. Tenant’s
mail shall be delivered directly to its suite or Tenant may maintain a post office box.

                                   ARTICLE VI

       6.01 PERMITTED USES. Tenant shall use the Demised Premises solely for the
purpose of conducting the business of SAFEbuilt Michigan, Inc. and Tenant shall not use or
permit or suffer the use of the Demised Premises for any other purpose whatsoever. The City of
                                              Page 21 of 45 
Muskegon will allow SAFEbuilt Michigan, Inc. to service other W. Michigan communities form
the leased space within City Hall. Tenant shall not advertise its services by stating it conducts
business in Muskegon City Hall or in any way suggest the City endorses Tenant’s services
because of this Lease agreement. Marketing brochures, business cards and all forms of
advertising may state the address of the building of the Demised Premises but may not refer to
“City Hall” so as to suggest a connection between SAFEbuilt Michigan, Inc. and the City beyond
that of Tenant and Landlord. Tenant acknowledges that Muskegon City Hall is open to the public
between the hours of 8:30 a.m. to 5:00 p.m. and for morning and evening meetings before or
after those hours on certain days. Tenant acknowledges that on most weekends and holidays,
City Hall is closed to the public. Tenant shall be provided with three (3) keys that open the outer
doors of City Hall. Those keys are to be accounted for at all times and are not to be reproduced
unless reproduced and replaced by the Landlord. Lost keys shall be immediately reported to the
Public Safety Director. Tenant shall be liable for any and all damage and expenses resulting
from the loss of any of the provided keys (including, but not limited to, necessary rekeying of any
and all City Hall locks). Tenant shall instruct its employees of the importance of locking all outer
doors to City Hall upon entering and leaving the building during hours when it is not open to the
public. Tenant waives any claim or cause of action regarding the nonavailability of the office
space during emergency periods when, due to electrical power outages, police or fire situations
or acts of nature that City Hall remains closed to Tenant.

        6.02 SIGNS. Tenant shall provide a suitable identification sign or signs of such size,
design and character as Landlord shall designate and/or approve, and Tenant shall install same
on the door to Suite – (Former Leisure Services Space). All costs of fabricating, constructing,
installing, operating, maintaining and removing any and all such identification signs shall be
borne by Tenant. Other than such permitted signs, Tenant shall not place or install, or permit or
suffer to be placed or installed, or maintain, any sign upon or outside of the Demised Premises
or in any part of the building unless approved by Landlord. Tenant shall not place, install or
maintain, or permit or suffer to be placed, installed or maintained, on the exterior of the Demised
Premises, any awning, canopy, banner, flag, pennant, aerial, antenna or the like, nor place or
maintain on the interior or exterior of the glass of the windows or the doors of the Demised
Premises any sign.

      6.03 COMPLIANCE WITH LAWS.                 Tenant shall comply with the certificate of
occupancy relating to the Demised Premises and with all Requirements. Without limiting the
generality of the foregoing, Tenant shall not engage in any activity on or about the Demised
Premises that violates any Requirement(s) pertaining to environmental laws or hazardous
substances and shall take all investigatory and/or remedial action required by any governmental
agency or applicable Requirements for cleanup and removal of any contamination involving any
hazardous substance created or caused, directly or indirectly, by Tenant.

       6.04 ACCESS TO PREMISES AND EXCAVATION. Landlord shall have the right to
enter upon and in the Demised Premises at all reasonable times to examine the same and to
make such repairs, alterations, improvements and additions in the Demised Premises as
Landlord may deem necessary, and Landlord shall be allowed to take all materials into and
upon the Demised Premises that may be required therefor without the same constituting an
eviction of Tenant, in whole or in part, and the Fixed Rent shall in no way abate while such
repairs, alterations, improvements or additions are being made by reason of loss or interruption
of the business of Tenant due to the prosecution of any such work; provided, however, Landlord
shall use reasonable efforts not to unreasonably interfere with or interrupt Tenant's business in
                                             Page 22 of 45 
the Demised Premises, but in no event shall Landlord be required to incur any additional
expense for work to be done during hours or days other than regular business hours and days.

        6.05 MECHANICS' LIENS. Nothing contained in this Lease shall be deemed,
construed or interpreted to imply any consent or agreement on the part of Landlord to subject
Landlord's interest or estate to any liability under any mechanic's or other lien law. If any
mechanic's or other lien or any notice of intention to file a lien is filed against the City, or the
Demised Premises, or any part thereof, for any work, labor, services or materials claimed to
have been performed or furnished for or on behalf of Tenant or anyone holding any part of the
Demised Premises through or under Tenant, Tenant shall cause the same to be canceled and
discharged of record by payment, bond or order of a court of competent jurisdiction within 20
days after the earlier to occur of (i) such lien or notice becoming of record or (ii) the giving of
notice by Landlord to Tenant. Landlord shall have the right to post any notices of non-
responsibility which Landlord may deem necessary for the protection of Landlord and Landlord's
interest in the Demised Premises from mechanics' liens or liens of a similar nature; and Tenant
shall, before the commencement of any work which might result in any such lien, give written
notice to Landlord of its intention to do so in sufficient time to enable the posting of such notices.

                                  ARTICLE VII

       7.01 ALTERATIONS BY TENANT. Tenant shall not make or cause to be made any
improvements, alterations, additions, changes, replacements or installations to the Demised
Premises, or make any holes or cuts in the walls, ceilings, roofs, or floors thereof, or change the
exterior color or architectural treatment of the Demised Premises, without on each occasion first
obtaining the consent of Landlord, and if such consent is granted, Tenant shall carry such
worker's compensation and general liability insurance and such other insurance as Landlord
may require, naming Landlord as an additional insured. In no event whatsoever shall Tenant
make any penetrations into the roof deck or the concrete slab or any fire wall without having
obtained Landlord's prior written consent, which consent, it is expressly understood and agreed
by Tenant may be given or withheld by Landlord in Landlord's sole and absolute discretion, and
which consent may be expressly conditioned upon Landlord, at Tenant's sole cost and expense,
performing such work on Tenant's behalf and/or overseeing the performance of such work by
Tenant to Landlord's satisfaction. Tenant shall submit to Landlord plans and specifications for
such work at the time Landlord's consent is sought. Any such improvements, alterations,
additions, changes, replacements or installations will be performed in a good and workmanlike
manner in accordance with the approved plans and specifications and in compliance with all
Requirements and shall be performed and completed by Tenant in an expeditious manner. The
cost of such improvements, alterations, additions, changes, replacements or installations shall
be paid in cash or its equivalent so that the Demised Premises shall at all times be free of liens
for work, labor, services or materials claimed to have been performed or furnished for or on
behalf of Tenant or anyone holding any part of the Demised Premises through or under Tenant.
All contractors and subcontractors performing work in or to the Demised Premises shall be
approved by Landlord prior to the performance of any such work.

        7.02 REPAIRS BY LANDLORD. Landlord shall make necessary structural repairs to
the Demised Premises (but excluding windows and window frames, doors, plate glass, store
fronts, showcases and signs) and shall keep in good condition and repair the foundations and
                                              Page 23 of 45 
roof of the Demised Premises and those portions of the utility systems that are for common use.
Landlord shall not be required to make any such repairs where same were caused or
occasioned by any act, omission or negligence of Tenant, or licensees of Tenant, or any of their
respective officers, employees, agents, customers, invitees or contractors. Landlord shall not
be required to commence any such repair until notice shall be received from Tenant specifying
the nature of the repair. The provisions of this Section shall not apply in the case of damage by
fire or other casualty or by eminent domain, in which event the obligations of the parties shall be
as provided in other Sections of this Lease. All costs and expenses incurred by Landlord
pursuant to the provisions of this Section shall be deemed to constitute Common Area costs.

       7.03 REPAIRS AND MAINTENANCE BY TENANT. Except for repairs required to be
performed by Landlord under Section 7.02, Tenant shall make all repairs and replacements to,
and shall keep clean, neat, safe, sanitary, in good order, repair and condition (including all
painting and decorating necessary to maintain at all times a clean and sightly appearance) and
free of vermin, the Demised Premises, including both inside and the outside, and any
equipment, facilities, fixtures and systems therein. In making repairs, Tenant shall use materials
equal in kind and quality to the original work. Tenant shall repaint and refurbish the Demised
Premises at reasonable periodic intervals to assure that the Demised Premises is kept in a first-
class and attractive condition through the Term. In cleaning the Demised Premises, Tenant shall
hire the same custodial service provided the Landlord has hired for the cleaning of the Common
Areas of The Building. Tenant shall purchase a level of custodial services sufficient to keep the
Demised Premises in an equivalent condition as the portion of The Building occupied by the
Landlord. The provisions of this Section shall not apply in the case of damage by fire or other
casualty or by eminent domain, in which event the obligations of the parties shall be as provided
in other Sections of this Lease. All alterations and repairs hereunder shall be subject to the
requirements and conditions set forth in Section 7.01 hereinbefore and shall be performed by
contractors approved by Landlord, and all such work shall conform to existing structures and
quality of the building.

        7.04 CHANGES BY LANDLORD. Landlord reserves the right, at any time and from
time to time, to increase, reduce or change the number, type, size, location, elevation, nature
and use of any of the Common Areas including, without limitation, the right to move and/or
remove same and to add additional stories thereon, provided same shall not unreasonably block
or interfere with Tenant's means of ingress or egress to and from the Demised Premises.

        7.05 LANDLORD'S CONSENT. In no event shall Landlord be required to consent to
any improvements, alterations, additions, changes, replacements or installations which, when
completed, will, in Landlord's judgment, be of such a character which will reduce the value,
rentability or usefulness of the Demised Premises or which will affect the facade, mechanical,
electrical or structural components of either the Demised Premises or the building or which
would reduce the Floor Space of the Demised Premises.

        7.06 FIRE OR CASUALTY; CONDEMNATION. In the event the Demised Premises are
totally destroyed by fire, wind, or other causes beyond the control of the Landlord, or are
condemned or otherwise taken by authority of local, state or federal government, then in any of
these events the lease Term shall cease and terminate as of the date of such destruction,
condemnation or taking. In the event of any loss or damage by fire or other casualty for which
the building or improvements on the Demised Premises may be insured, all amounts payable
upon any policy or policies of insurance shall be paid to Landlord. If the Demised Premises are
                                             Page 24 of 45 
damaged by fire, rain, wind or other such causes, so as to render the same partially untenable
or partially unfit for use, but are repairable within a reasonable time, then this Lease shall remain
in full force and effect, but Tenant’s rent shall be proportionately reduced until the Demised
Premises are repaired.

                                   ARTICLE VIII
                             INSURANCE AND INDEMNITY

        8.01 INSURANCE BY TENANT. A. Tenant shall maintain the following insurance at
Tenant's sole cost and expense: (a) commercial general public liability insurance covering the
Demised Premises and the conduct or operation of business therein, naming Landlord as
additional insured, with limits of not less than $1,000,000 combined single limit for bodily injury
or death and for property damage, including water damage and sprinkler leakage liability, (b) fire
and extended coverage insurance covering Tenant's stock in trade, fixtures, furniture,
furnishings, removable floor coverings, equipment, signs and all other property of Tenant in the
Demised Premises to the extent of one hundred (100%) percent of the full insurable value of the
property covered and not less than the amount sufficient to avoid the effect of the co-insurance
provisions of the applicable policy or policies, (c) comprehensive automobile liability insurance
including owned, non-owned and hired car coverage in an amount not less than $3,000,000
combined single limit per occurrence for bodily injury or death and for property damage, and (d)
any other insurance required for compliance with any Requirements. Tenant shall deliver to
Landlord and any additional insured specified by Landlord to Tenant such fully paid-for-policies
or certificates evidencing such coverage before the Commencement Date. Tenant shall procure
and pay for renewals of such insurance from time to time before the expiration thereof, and
Tenant shall deliver to Landlord and any additional insured such renewal policy or certificates
evidencing such renewal at least 30 days before the expiration of any existing policy. All such
policies shall be issued by companies of recognized responsibility licensed to do business in the
state in which the Demised Premises is located and having a general policy holder's rating of
not less than A, and financial ratings of not less than Class VIII as rated in the most current
"Best's" Insurance Reports, and all such policies shall contain a provision whereby the same
cannot be canceled or modified unless Landlord and any additional insured are given at least 30
days prior written notice by certified or registered mail of such cancellation or modification.

              B. Tenant shall require any contractor of Tenant performing work in, on or about
the Demised Premises to take out and keep in full force and effect, at no expense to Landlord
(a) commercial general public liability insurance in respect of the Demised Premises, and the
conduct of its work therein, naming Landlord as additional insured, with limits of not less than
$3,000,000 combined single limit for bodily injury or death and for property damage, including
water damage and sprinkler leakage legal liability; (b) workers' compensation or similar
insurance in form and amounts required by law (but in no event less than a combined single
limit of $1,000,000 per occurrence); and (c) comprehensive automobile liability insurance
including owned, non-owned and hired car coverage in an amount not less than $3,000,000
combined single limit per occurrence for bodily injury or death and for property damage.

              C. It is understood and agreed by naming Landlord as an additional insured,
coverage afforded is considered to be primary and any other insurance Landlord may have in
effect shall be considered secondary and/or excess. It is further understood and agreed that

                                              Page 25 of 45 
thirty (30) days advance written notice shall be given to Landlord of cancellation, non-renewal,
reduction and/or material change of any required insurance policy.

        8.02 INCREASE IN PREMIUMS. Tenant shall not do, permit or suffer to be done any
act, matter, thing or failure to act in respect of the Demised Premises or use or occupy the
Demised Premises or conduct or operate Tenant's business in any manner objectionable to
insurance companies whereby the fire insurance or any other insurance now in force or
hereafter to be placed on the Demised Premises or the building or any part thereof shall
become void or suspended or bring or keep anything upon the Demised Premises which shall
increase the rate of premiums of insurance on the Demised Premises or the building or any part
thereof or on the property located therein. If by reason of failure of Tenant to comply with the
foregoing provisions of this Section, any premiums in respect of insurance maintained by
Landlord shall be higher than those which would normally have been in effect, then Tenant shall
be liable to Landlord as hereinafter set forth. In case of a breach of this covenant, in addition to
all other rights and remedies of Landlord hereunder, Tenant shall (a) indemnify Landlord and
hold Landlord harmless from and against any loss which would have been covered by insurance
which shall have become void or suspended because of such breach by Tenant and (b) pay to
Landlord any and all increases of premiums on any insurance, including, without limitation, rent
insurance, resulting from any such breach. In addition to the foregoing, Tenant will, if Landlord
so requests, cease any action and/or remove any objects or improvements which have resulted
in increases in Landlord's insurance premiums.

        8.03 INDEMNIFICATION AND RELEASE.                   In the event legal proceedings are
threatened or filed against either party involving in any manner the performance of this Lease,
notification shall be given to the other party, including any knowledge or information which may
result in a claim against either of them, and cooperation shall take place between the parties
whenever any claim is filed against either party, involving in any manner the performance of this
Lease. Tenant shall defend and indemnify Landlord and shall hold Landlord harmless from and
against any and all injuries, losses, claims, actions, damages, liabilities and expenses (including
attorneys' fees and expenses) to persons or property arising from, related to or in connection
with the use or occupancy of the Demised Premises or the conduct or operation of business
therein or any default in the performance of any obligation of Tenant under this Lease. Landlord
shall not be liable or responsible for, and Tenant hereby releases Landlord from, all liability or
responsibility to Tenant or any person claiming by, through or under Tenant, by way of
subrogation or otherwise, for any loss or damage to any property in or around the Demised
Premises or to Tenant's business irrespective of the cause of such loss or damage, and Tenant
shall require its insurer(s) to include in all of Tenant's casualty insurance policies which could
give rise to a right of subrogation against Landlord a clause or endorsement whereby the
insurer(s) shall waive any rights of subrogation against Landlord. If Landlord shall, without fault
on its part, be made a party to any litigation commenced by or against Tenant, Tenant shall
indemnify and hold Landlord harmless from and against all costs, expenses and reasonable
attorneys' fees incurred or paid by Landlord in connection with such litigation.

                                      ARTICLE IX

       9.01 ASSIGNMENT OR SUBLETTING. Tenant shall not assign or sublet its rights under
this Lease.
                                             Page 26 of 45 
      9.02 RENEWAL. This Lease may be renegotiated for additional terms following the
completion of the current Term.

       9.03 DEFAULT AND REPOSSESSION. If the Demised Premises shall be deserted or
vacated, or if there shall be a default in the payment of rent or any part thereof for more than
seven days after written notice of such default by the Landlord, or if there shall be default in the
performance of any other covenant, agreement, condition, rule or regulation herein contained or
incorporated herein by reference for more than seven days after written notice of such default by
the Landlord, this Lease (if the Landlord so elects) shall thereupon become null and void, and
the Landlord shall have the right to reenter or repossess the Demised Premises, either by
summary proceedings, surrender, or otherwise, and dispossess and remove therefrom the
Tenant, or other occupants thereof, and their effects, without being liable to any prosecution
therefor. Tenant agrees to pay all expenses and damages incurred by Landlord as a result of
Tenant’s default, including Landlord’s reasonable attorney fees. If Tenant shall fail to perform
any of its obligations hereunder, Landlord may, if it so elects, and after five days' prior notice to
Tenant, cure such default at Tenant’s expense, and Tenant agrees to reimburse Landlord (as
additional rent) for all costs and expenses incurred as a result thereof upon demand.

       9.04 NULL AND VOID. This Lease runs with an Agreement for Professional Services,
entered into by and between the City of Muskegon and SAFEbuilt Michigan, Inc., and (if the
Landlord so elects) shall become null and void at the expiration or termination of the Agreement
for Professional Services. The Agreement for Professional Services runs with this Lease and (if
the Landlord so elects) shall become null and void at the expiration or termination of this Lease.

        9.05     OWNERSHIP OF IMPROVEMENTS AND PERSONAL PROPERTY.                          All
installations, alterations, additions, betterments and improvements upon the Demised Premises,
made by any party, shall become the property of Landlord when installed and shall remain upon
and be surrendered with the Demised Premises as a part thereof at the expiration or sooner
termination of the Term. Movable trade fixtures and other personal property which Tenant
installs at its own expense shall remain Tenant's property and may be removed at any time
provided Tenant promptly repairs any damage caused by such removal and provided further
that Tenant shall not then be in default under this Lease.

      9.06    END OF TERM. At the expiration or sooner termination of the Term, Tenant shall
quit and surrender to Landlord the Demised Premises, broom clean and in good order and
condition, ordinary wear and tear and damage by fire and any other insured casualty excepted.
At such expiration or sooner termination Tenant shall remove all property of Tenant and its
signage and at the option of Landlord, shall remove any or all alterations and other
improvements made by Tenant to the Demised Premises as designated by Landlord and Tenant
shall repair all damage to the Demised Premises caused by such removal and restore the
Demised Premises to the condition in which they were at the Commencement Date. Such
removal, repair and restoration shall be effected in accordance with the rules and regulations,
including construction rules and guidelines, of Landlord. It is agreed that any holding over by the
Tenant upon expiration of the Term of this Lease or any renewal or extension hereof, shall
operate as an extension of this Lease from month to month only.

Tenant shall and they hereby do waive trial by jury in any action, proceeding or counterclaim
                                              Page 27 of 45 
brought by either of the parties hereto against the other on any matters arising out of or in any
way connected with this Lease, the relationship of Landlord and Tenant, Tenant's use or
occupancy of the Demised Premises, and any emergency or other statutory remedy. Tenant
further agrees that it shall not interpose any counterclaim(s) in a summary proceeding or in any
action based on holdover or non-payment of Fixed Rent.

       9.08 NO WAIVER. The failure of Landlord to insist in any one or more cases upon the
strict performance or observation of any obligation of Tenant hereunder or to exercise any right
or option contained herein shall not be construed as a waiver or relinquishment for the future of
any such obligation of Tenant or any right or option of Landlord. Landlord's receipt and
acceptance of Fixed Rent, or Landlord's acceptance of performance of any other obligation by
Tenant, with knowledge of Tenant's breach of any provision of this Lease, shall not be deemed
a waiver of such breach. No consent, approval or waiver, express or implied, by Landlord or
Tenant to or of any breach of any covenant, agreement or obligation, of Landlord or Tenant shall
be construed as a consent or waiver to or of any other breach of the same or any other
covenant, agreement or obligation unless in each case in writing signed by Landlord or Tenant,
whichever the case may be. Landlord's failure during the Term to prepare and deliver to Tenant
any bill, statement or notice with respect to any item of Fixed Rent or any increases thereto by
operation of any provision of this Lease, shall not in any way cause Landlord to forfeit or
surrender its right to collect any item of Fixed Rent which may become due during the Term nor
shall such failure extend the date(s) on which any such items of Fixed Rent is due. In no event
shall Landlord be deemed to have any obligation to bill any item of Fixed Rent or any increases

      9.09    QUIET ENJOYMENT. Landlord covenants that Tenant, on paying the Fixed Rent
and performing all of Tenant's obligations under this Lease, shall peacefully and quietly have,
hold and enjoy the Demised Premises, the Common Areas and the appurtenances throughout
the Term without hindrance, ejection or molestation by any person lawfully claiming under
Landlord, subject to the terms and provisions of this Lease and to all mortgages and ground and
underlying leases of record to which this Lease may be or become subject and subordinate.
The parties acknowledge that as of the date of signing this Lease, the City is one of Tenant’s
clients and uses Tenant’s business services. Leasing space within the City Hall building is in no
way to be construed as entering into an employer-employee relationship.

      9.10    NOTICES. Any notice, demand, waiver, approval or consent hereunder shall be in
writing and shall be deemed duly served if mailed by registered or certified mail, postage
prepaid, in any post office station or letter box in the continental United States, return receipt
requested, or sent by reputable overnight carrier with delivery charges prepaid and proof of
delivery service to be provided, addressed:

     If to Tenant, to it at the address Tenant shall have last designated by notice to Landlord.

     If to Landlord, to it at 933 Terrace St., Muskegon, MI 49443; Attention: City Manager or
such other address as Landlord shall have last designated by notice to Tenant. With a copy to,
Parmenter O’Toole at 601 Terrace Street, Muskegon MI 49440; Attention: John Schrier.

                                            Page 28 of 45 
Such notice, demand, waiver, approval or consent shall be deemed served two (2) days after
mailing, or the next business day if sent by reputable overnight carrier.

       9.11 LEGAL EXPENSES. If a suit be brought for recovery of possession of the
Demised Premises, for the recovery of Fixed Rent, or because of the breach of any other
covenant, agreement or condition on the part of Tenant to be kept or performed, or a violation of
any rules and regulations promulgated pursuant to this Lease and a breach shall be established,
Tenant shall pay Landlord all expenses incurred in connection therewith, including appeals of
the above, including reasonable attorneys' fees and expenses. In case any such suit is settled
before judgment is entered therein, such costs, expenses and fees, including reasonable actual
attorney fees, shall nevertheless be recoverable by Landlord as part of said settlement.

    9.12     INTERPRETATION. Irrespective of the place of execution or performance, this
Lease shall be governed by and construed in accordance with the laws of the state of Michigan.

      9.13   LANDLORD'S RIGHTS. The taking of any action permitted hereunder by Landlord
shall not be construed or deemed to be a forcible or unlawful entry into or a detainer of the
Demised Premises, or an eviction, partial eviction or constructive eviction of Tenant from the
Demised Premises or any portion thereof and shall not relieve Tenant of its obligations under
this Lease.

      9.14    COMPLETE AGREEMENT.               There are no representations, agreements,
arrangements or understandings, oral or written, between the parties relating to the subject
matter of this Lease that are not fully expressed in this Lease. This Lease cannot be changed
or terminated orally or in any manner other than by a written agreement executed by both
parties. In making and executing this Lease, Tenant has relied solely on such investigations,
examinations and inspections as Tenant has chosen to make or has made and Tenant
acknowledges that Landlord has afforded Tenant the opportunity for full and complete
investigations, examinations and inspections.

      9.15    SEVERABILITY. Should any one or more of the provisions of this Lease be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions of this Lease shall not in any way be impaired or

     9.16    COUNTERPARTS. This Lease may be executed in any number of counterparts,
each of which shall be an original, but all of which shall together constitute but one Lease.

    9.17       TIME OF THE ESSENCE.           Time is of the essence of each term, covenant,
condition and obligation of this Lease.

      9.18 INDEPENDENT CONTRACTOR STATUS. Nothing in this Lease shall be deemed
to alter Tenant’s independent contractor status in relationship to Landlord. This Lease shall not
create an employee-employer relationship between Tenant and Landlord. At no time during the
Term of this Lease shall the City be the source of the majority of SAFEbuilt Michigan’s work.

                                            Page 29 of 45 
IN WITNESS WHEREOF, Landlord and Tenant have hereunto executed this Lease as of the
day and year first above written.

                                    City of Muskegon, a Michigan municipal corporation

                                    By: _____________________________________
                                    Stephen Gawron, Mayor

                                    By: _____________________________________
                                    Ann Cummings, City Clerk

                                    Safe Built Michigan, Inc., a Michigan foreign profit


                                    (Tenant's Federal Taxpayer Identification
                                    Number is - 27-1314735             )

                                       Page 30 of 45 
ATTACHMENT A: SAFEbuilt Proposal
Comprehensive Building Department Services Final Proposal
Submitted: June 06, 2012


Our Philosophy 
SAFEbuilt  knows  thatevery  public  agency  has  a  unique  culture  and  specific  requirements  or  preferencesfor  their 
building  department  services.   We  pride  ourselves  on  providing  customized  solutions  foreach  client.   The  quality 
and  training  of  our  staff,  our  robust  business  systems,  and  our  core  commitment  to  our  clients  ensure  that  you 
receive the highest levels of service and responsiveness in the industry.  

Our Purpose 
SAFEbuilt  was  founded  in  1992  for  the  sole  purpose  of  providing  building  department  services  to  local 
government.  We only work with public  agencies  to avoid any potential for conflict of interest.  The primary focus 
of  any  building  department  is  to  ensure  life  safety  for  the  residents  and  businesses  within  a  community.    That 
effort  requires  uniquely  skilled  individuals  with  technical  knowledge  and  a  desire  for  the  continuous  training 
needed  to  keep  up  with  the  ever‐changing  construction  industry.    We  have  outstanding  employees,  provide 
exceptional service to our clients, and participate in the communities we serve. 
SAFEbuilt’s success is built on two important factors – our organizational processes and our employees.  With over 
20  years  of  focus  on  the  provision  of  building  department  services  we  have  refined  our  systems  to  be  an  efficient 
and  effective  solution.    We  achieve  our  inspection  and  plan  review  goals  with  less  overhead  than  most  other 
building departments.Additionally, we are constantly looking for ways that we can improve.   
Our  employees  are  also  the  best  in  the  industry  and  a  key  reason  for  our  success.   In  addition  to  the  necessary 
technical  skills,  our  hiring  and  training  processes  ensure  our  team  members  have  the  skills  needed  to  work  well 
with  other  departments,  outside  agencies,  and  applicants  to  make  the  process  efficient  and  customer‐friendly.   It 
has  taken  years  to  develop  and  refine  our  hiring  practices  to  ensure  that  we  staff  our  organizations  with 
individuals  who  possess  a  unique  balance  of  technical  experience  and  customer  service  skills.   The  result  speaks 
for itself, with client satisfaction ratings that consistently exceed 98% based on SAFEbuilt’s annual client surveys. 

Shared­Services Model 
Leveraging  regional  relationships  is  a  recognized  cost‐saving  mechanism  for  municipalities.    SAFEbuilt’s  model 
offers municipalities the option to provide consistent code compliant delivery of building department services to a 
specific  geographic  area.  The  model  can  provide  significant  benefits  to  communities  including  fiscal  benefits  and 
access to greater resources and services. 
As  a  private  entity,  SAFEbuilt  is  able  to  provide  regional  services  through  direct  contracts  with  individual 
communities.   This  eliminates  the  need  for  intergovernmental  agreements  or  the  formation  of  regional  service‐
delivery  authorities.   A  SAFEbuilt  option  allows  communities  to  benefit  from  the  sharing  of  resources  but  allows 
each community to retain local control and allows for consistency in code interpretation and enforcement.  Unlike 
most  IGA’s  and  regional  service  authorities,  SAFEbuilt  will  integrate  the  building  department  into  each 
community’s development process to meet the unique need of each community. 
SAFEbuilt is proud to be an Allied Service Provider for the Michigan Townships Association and a Business Alliance 
Partner with the Michigan Municipal League. 

                                                            Page 31 of 45 


Transition Team 
We will assemble a Transition Team to work with you in developing the building department structure for the City 
of  Muskegon.  This  team  will  work  closely  with  staff  to  ensure  that  an  effective  structure  is  implemented  that 
maximizes  efficiency,  minimizes  the  impact  on  permit  holders  and  applicants  during  and  after  the  transition,  and 
meets  your  needs.  SAFEbuilt  requests  60  days  between  contract  completion  and  service  start  date  to  implement 
an effective transition of services.     

This team and their roles will be: 
        Matt Royer, Director of Operations – Matt will oversee the startup of the operation and have overall 
        project responsibility.   
        Steve Burns, Building Official –  Steve is an State of MI Act 54 registered Building Official will be the main 
        “technical” contact for the City of Muskegon during the transition. 
        Shawn Waterman, Project Manager – Shawn will assist in all aspects of the transition.  He will ensure that 
        effective processes are established and implemented. 
        Scott Martin, Business Development – Scott will be the City liaison, ensuring that the service offerings 
        meet the City’s needs. 

Transition Plan 
The  team  will  work  closely  with  the  City  of  Muskegon  to  understand  the  specific  requirements  and  determine  a 
reasonable  schedule  for  all  transitional  components.    We  will  develop  a  plan  that  will  be  used  to  communicate 
and  provide  transparency  into  the  startup  including  the  completion  of  inspections  on  outstanding  projects.   We 
will  work  diligently  with  all  stakeholders  to  establish  specific  milestones  and  deadlines  that  will  be  used  to  keep 
the  transition  and  integration  within  schedule.   This  is  a  critical  step  in  building  our  partnership  and  establishing 
credibility with the City of Muskegon and its’ citizens. 

The  SAFEbuilt  team  will  work  with  your  staff  to  understand  existing  processes  and  procedures.   A  complete  and 
thorough  evaluation  will  be  done  of  all  functions,  processes,  and  procedures  currently  in  place.   This  analysis  will 
be  compared  to  our  standard  operating  procedures  and  best  practices  will  be  implemented.   We  understand  that 
every  community  has  its  own  culture  and  expectations  and  therefore  must  have  a  unique  implementation  and 
phase‐in  plan.   Our  experience  with  these  transitions  over  the  years  has  allowed  us  to  identify  key  activities  for 
successful analysis and implementation of services.   

Our process transition/integration is broken out into 5 major phases: 
 1. Kick off – During this phase we establish clear roles, initial steps and expectations for the implementation.   
 2. Evaluation  and  Plan  Development  –  Meet  with  City  of  Muskegon  staff  to  understand  the  current  programs, 
     systems and processes.  Develop detailed implementation and work plans.  
 3. Implementation – Once our staff understands your functions we put our plan for the department into action.  
     Any process changes will be discussed fully with your staff prior to implementation. 
 4. Alignment  –  This  phase  is  ongoing  beyond  the  date  of  startup.    We  are  evaluating  everything  within  the 
     department to ensure the best programs, systems, processes and resources are deployed effectively.     
 5. Assessment – City of Muskegon staff and the phase‐in team will evaluate the startup and ongoing services.   

                                                            Page 32 of 45 

Transition Performance Metrics 
The  transition  team  will  utilize  our  standard  performance  metrics  and  work  with  the  City  of  Muskegon  staff  to 
align  these  with  local  expectations.    Constant  monitoring  occurs  during  the  transition  and  regularly  beyond  the 
transition  period  to  ensure  that  these  expectations  are  achieved.    We  will  establish  meaningful  performance 
metrics  during  the  transition  phase‐in.   While  monitoring  these  activities  we  make  appropriate  adjustments  and 
perform further evaluation of processes to ensure the most efficient and effective methods are utilized.   

SAFEbuilt  has  a  long  history  of  providing  municipal  services.   Compared  to  other  private  providers,  we  have  more 
experience  and  provide  higher  quality  services  to  municipal  clients.    Our  direct  experience  in  transitioning 
municipal  departments  from  in‐house,  county,  or  other  providers  to  our  model  has  refined  our  process  and 
workflows to minimize disruptions and maximize the efficiency and effectiveness start‐up operations.  We believe 
the City of Muskegon will find that working with the SAFEbuilt team is the best option as we will: 
    • Provide a highly qualified and motivated staff  
    • Have a demonstrated history of providing quality customer service  
    • Bring a depth of personnel resources for direct and auxiliary support 
    • Have experience with new technology to be implemented 
    • Offer a staffing and pricing model that naturally adjusts for variations in permit activity and the associated 
    • Offer an innovative program and understand that your needs come first 
    • Are dedicated to fulfilling the City of Muskegon mission 

Staffing Functions& Continuity 
SAFEbuilt  considers  the  hiring  of  staff  as  one  of  the  most  critical  elements  to  our  success.   If  available,  incumbent 
employees  will  be  considered  for  any  of  the  new‐hire  positions,  they  may  be  given  higher  preference  for  their 
previous  experience  in  City  of  Muskegon.   With  our  years  of  experience  we’ve  developed  a  rigorous  and  proven 
process for recruiting, screening, and hiring the best in the industry.  We have used that process to development a 
deep talent pool in the State of Michigan. 
It’s important that we hire a team of people that are not only experts in their field, but mesh well with other team 
members.    We  evaluate  all  prospective  team  members  based  on  several  key  traits,  whether  they  are  internal 
transfers,  incumbents,  or  from  outside  our  organization.    Among  these  key  traits  are  expertise  in  their  field, 
cultural  fit,  personality  and  willingness  to  be  high  performers  on  the  team.   We  look  for  alignment  with  the  team, 
alignment  with  the  city,  and  adherence  to  our  core  values  of  Integrity,  Service,  Improvement,  Respect,  and 
We  will  provide  superior  code  compliant  plan  check,  inspection,  and  administrative  services  to  the  City  of 
Muskegon.  Not only will we meet established metrics for the department, but we will manage the department to 
align with the goals and needs of the City of Muskegon.  Our staff will: 
      • Attend all required meetings 
      • Actively manage all department processes and systems, goals, etc. 
      • Provide educational materials to potential applicants and homeowners 
      • Organize and conduct homeowner, small business workshops and educational meetings 
      • Coordinate departmental activities with other departments and agencies 
      • Immediately respond to  any customer service issues 

                                                             Page 33 of 45 

We will remain firm to our service level commitments, but we are open to changes in scope or service levels.  The 
SAFEbuilt  team  decision‐makers  will  meet  with  you  on‐site  and  work  with  you  to  meet  community  needs.    Our 
purpose and intent is to constantly look for the most efficient and effective solutions for the City of Muskegon. 
We  will  provide  on‐site  staffing  with  personnel  central  to  maintaining  the  high  levels  of  customer  service 
SAFEbuilt expects and Muskegon deserves.  We will also float resources as required. 
On‐site  team  members  have  daily  decision‐making  authority  and  are  empowered  to  plan  and  schedule  work  as 
well  as  respond  quickly  to  situations  that  may  arise.    Team  members  will  report  to  the  designated  City  of 
Muskegon  representative  and  will  be  available  during  normal  business  hours.  Our  team  for  the  City  of Muskegon 
will fulfill the following functions and responsibilities: 
          Building Official– State of MI Act 54 registered Building Official will: 
               • Be co‐employed by the City of Muskegon and SAFEbuilt 
               • Provide assistance in the administration of the Building Department 
               • Attend City staff meetings upon request 
               • Be available for consultation in the planning process to highlight building code requirements that 
                    could affect projects 
               • Act as a team lead to SAFEbuilt’s inspector(s)  to ensure consistency  
               • Work with other staff and the contractors to develop remedies for code violations 
               • Provide back‐up for Building Department team members as needed 
          Plans Examiner(s) – State of MI Act 54 registered Plans Examiner(s) will: 
               • Attend City staff meetings upon request 
               • Be available for and conduct pre‐construction meetings  
               • Perform all building code plan review 
               • Be a resource for field personnel 
          Inspector(s) – State of MI Act 54 registered Inspector(s) will: 
               • Provide all code compliant building, plumbing, mechanical and electrical  inspections and record 
               • Work with other staff and the contractors to develop remedies for code violations 
          Administrative Support/Permit Technician  ‐ Qualified Administrative Support/Permit technician will: 
               • Facilitate the permitting process from initial intake to permit issuance 
               • Provide on‐site customer service – 8 hours each business day 
               • Provide inspection scheduling and tracking 
The  SAFEbuilt  team  has  a  focus  on  the  services  we  provide,  which  has  allowed us  to  develop  outstanding  systems 
over  the  years.  Our  experience  in  the  realm  of  building  department  services  enables  us  to  help  to  City  of 
Muskegon  predict  activity  through  the  review  of  permits,  plans  and  zoning  inquiries.    We  will  use  this  data  to 
make adjustments in staff levels, including adding support from our other offices during unusual peaks in demand. 
Prior to and during the transition process we work to thoroughly understand your operations.  We will modify our 
process  to  meet  your  needs.  Continuity  of  service  at  a  high  level  is  a  primary  goal.  We  plan  ahead  to  ensure  that 
the  development  community  will  have  ample  time  to  understand  any  proposed  changes  to  existing  procedures.  
We will also monitor all processes on an ongoing basis and recommend adjustments. 

                                                             Page 34 of 45 

We  provide  a  thorough  orientation  for  all  team  members.  This  orientation  is  designed  to  familiarize  staff 
withprocedures,  municipal  ordinances  and  other  unique  requirements  as  they  relate  to  Muskegon.  We  also 
provide  ongoing  technical  and  soft‐skills  training  to  ensure  that  our  staff  is  up‐to‐date  on  emerging  issues  in  their 
fields.    This  focus  on  continuous  training  minimizes  risk  while  improving  our  ability  to  respond  to  citizens  and 
developers with helpful insight. 
Upon  completion  of  agreement;  SAFEbuilt  will  immediately  begin  the  hiring  process  for  experienced,  qualified 
staff.    All  plan  review  and  inspections  services  will  be  provided  by  qualified  State  of  Michigan  Act  54  registered 
staff employed by SAFEbuilt. 
We  realize  that  providing  proper  levels  of  staffing  is  very  important  to  maintaining  high  customer  service  levels.    
Staffing  levels  and  personnel  will  be  determined  during  the  transition  process  after  evaluating  current  City  of 
Muskegon position descriptions and responsibilities.  We will staff in order to meet our agreed upon performance 
All  current  in‐house  building  department  employees  are  encouraged  to  apply  for  a  position  on  the  SAFEbuilt 
team.    SAFEbuilt  will  interview  all  current  personnel  that  would  like  to  be  considered  for  employment  with 
SAFEbuilt  if  they  meet  the  needs  of  the  City  of  Muskegon  and  fulfill  our  hiring  guidelines.   No  current  employees 
would  be  excluded  from  consideration;  existing  staff  have  been  hired  in  the  majority  of  our  transitions.  
Additionally, we maintain a talent pool of qualified applicants for positions such as these.   

                                                            Page 35 of 45 

SAFEbuilt  has  provided  customized  solutions  for  communities  across  the  country  since  1992.  In  order  to  continue 
providing  these  services  and  expanding  operations,  it  has  been  imperative  that  we  remain  competitive, 
innovative,  professional  and  flexible.  We  have  a  reputation  among  designers  and  contractors  in  the  building  and 
development  community  as  being  impartial  and  professional  in  our  conduct  but  thorough  in  requiring 
conformance  with  standards.    Our  previous  and  current  involvement  in  providing  building  department  services 
has  prepared  us  for  all  the  functions  required  by  the  City  of  Muskegon.    We  have  provided  the  full  scope  of 
department  administration,  code  compliant  inspections,  and  reviews  of  all  types  of  construction  plans  for  many 
cities.  We understand the importance of coordination with other departments and with exercising an appropriate 
level of professional judgment in resolving issues.  

Administrative Services 
As part of our administrative services SAFEbuilt will: 
      Provide onsite administrative staff 
      Provide permit counter intake during City Hall business hours  
      Inform  applicant  when  submitting  plans  of  what  the  maximum  amount  of  time  it  will  be  to  first  comments 
      and also the estimated time to first comments and/or completion 
      Answer  all  application  questions  at  the  counter  or  over  the  phone  and  provide  ongoing  communication  as 
      Review and provide handouts at the counter 
      Administer the City of Muskegon contractor registration program 
      Provide  input,  tracking,  and  reporting  using  the  City’s  current  system  (BS&A)  –  or  if  requested  SAFEbuilt’s 
      building department software 
      Implement performance measurements to ensure agreed upon service levels  
      Provide scheduling support to inspection staff 
      Prepare reports within mutually agreed upon timeframes and frequencies 
      Follow up on complaints and provide resolution 
      Provide  a  minimum  of  2  community  partner  educational  workshops  per  contract  year.  Such  as  small 
      business, homeowner desk finish, homeowner basement finish workshops 
      Provide  a minimum of 2 community partner scholarships at $500 each per contract year 
      Provide emergency disaster response as it relates to building code – available via cell phone after hours 

Building Department Services 
As part of our building department services SAFEbuilt will: 
      Monitor and enforce adopted building codes, related codes, and amendments 
      Demonstrate experience and applied knowledge in the aspects of plan review and building and construction 
      inspections related to historic structures 
      Document areas of non‐compliance using written records, electronic communications, photographs or 
      other appropriate means 
      Provide training for our inspectors on City of Muskegon ordinances and amendments 
      Manage and pay for CEU training required to maintain Act 54 compliance 
      Be available for meetings as requested – including representing the City at HBOA meetings as needed 
      Go through existing records , provide clean up, and  then make sure department is facilitating the proper 
      retention of records  in accordance with adopted retention schedules on an ongoing basis 

                                                          Page 36 of 45 
    Work in partnership with the City of Muskegon staff to pursue the City providing building code compliance 
    and consulting services to the local school districts, local community colleges and local colleges as allowed 
    by all applicable regulations 
    Work with the City Clerk to facilitate Freedom of Information Act (FOIA) requests 
    Report directly to the position of Director of Public Safety

                                                   Page 37 of 45 

Plan Review Services 
As part of our plan review services SAFEbuilt will: 
      Accept and perform plan review  
      Work with the applicant on submittal requirements in order to ensure the process is not held up for minor 
      Examine all commercial and residential projects including drawings, specifications, computations, and 
      additional data 
      Determine  if  plans  conform  to  the  required  strengths,  stresses,  strains,  loads,  and  stability  of  adopted 
      building codes, local amendments, and all other pertinent laws and ordinances 
      Perform  the  following  reviews:  building  code,  accessibility,  mechanical,  electrical,  plumbing,  use  and 
      occupancy  classification,  general  building  heights  and  areas,  construction  type,  means  of  egress, 
      accessibility, energy code,  and foundation  
      Be available for pre‐submittal meetings in order to help facilitate the timeliness of reviews and the 
      completeness of submittals 
      Coordinate plan review tracking, reporting, and interaction with applicable departments  
      Add resources as needed to keep reviews on schedule and provide needed expertise  
      Review all revisions and be available for consultation after review is completed 

Inspection Services 
As part of our inspection services SAFEbuilt will: 
      Coordinate all inspection requests 
      Offer the option of having the inspection performed in the morning or the afternoon – am/pm inspections 
      Offer a two hour inspection window to homeowners along with a 30 minute call ahead notification  
      Perform inspections before or after normal business hours as warranted – no additional charge above and 
      beyond what city already charges 
      Perform inspections of residential and nonresidential buildings to determine that construction activity 
      complies with approved plans, applicable codes and ordinances 
      Perform all inspections as per adopted building codes and local amendments including liquor license 
      inspections and coordination with Fire Marshall as warranted 
      Provide onsite inspection consultations to citizens and contractors 
      Observe safety and security procedures and report potentially unsafe conditions 
      Identify and document any areas of non‐compliance and suggest alternate means  
      Notify appropriate jurisdiction staff when we observe code violations 
      Perform work associated with abatement of dangerous buildings as allowed by adopted ordinance and state 
      Process and deliver stop‐work notices for non‐conforming building activities – as approved by the Building 
      Leave a copy of the inspection notice with appropriate site personnel – as approved by the Building Official 

Administrative Support/Permit Technician Services 
As part of our administrative support/permit technician services SAFEbuilt will: 
      Provide a qualified team member to facilitate the permitting process from initial permit intake to final 
      issuance of permit  
      Determine and collect fees if desired by the City of Muskegon 
      Provide inspection scheduling  and tracking to ensure code compliance  
      Provide customer service  
      Process permits that require minimal or no plan review at time of submittal on behalf of the Building Official 
      Respond to citizen complaints and communicate effectively with citizens to minimize impact of building 
      activities on the public and neighborhoods
                                                        Page 38 of 45 

Existing Open Permits 
SAFEbuilt  will  close  any  permits  that  remain  open  at  the  time  of  service  changeover.    We  would  suggest  that 
current  City  of  Muskegon  Building  Department  staff  close  as  many  open  permits  as  possible  before  SAFEbuilt’s 
start date in order to save on costs to the City.  SAFEbuilt will final open permits at a rate of $40.00 per permit – to 
be billed when closed. 

SAFEbuilt Provided Equipment 
SAFEbuilt would propose leasing office space from the City of Muskegon and will provide: 
     Vehicles, vehicle maintenance, and insurance 
         • SAFEbuilt will consider purchasing one or two of the vehicles currently owned by the City – 
              procedure to be negotiated  
     All employee salaries, a comprehensive benefits plan, and a retirement plan – possible exception of co‐
     employed building official position 
     All hiring expenses 
     Ongoing training and certification of employees 
     Office supplies and business papers 
     All office furniture and equipment –including copier and desk phones. 
     Office computer hardware and software 
     Cell phones and usage 

City Provided Location & Equipment 
City of Muskegon will: 
       Provide the former Leisure Service for lease to SAFEbuilt at the rate of $1000 per month. This lease rate 
       includes all utilities except for land lines for phone. 
       Provide phone land lines and bill SAFEbuilt at actual cost with no markup these can be included in the lease 
       for space at actual cost per line  
       Allow SAFEbuilt to service other W. Michigan communities from the leased space within City Hall  
       Negotiate in good faith with regard to selling  and/or include in the lease for space;  existing cubicle 
       dividers, desks, file cabinets, shelves, tables, floor mats and wall document holders that are currently in the 
       Leisure Services space 
       Absorb costs associated with the electronic storage of department permit and inspection records – 
      SAFEbuilt will facilitate the conversion and storage process 

                                                         Page 39 of 45 
We  use  a  number  of  performance  measures  to  gauge  the  effectiveness  of  our  systems  and  the  efficiency  of  our 
staff.  The most visible of quantitative measures are the following: 
Area            Performance Measurement              Goal                             Comments  
Overall         Customer Service Ratings            100%  SAFEbuilt will utilize customer service surveys to 
Department                                       satisfaction determine if department activity is satisfactory for 
                                                              the end user and to identify areas of strengths and 
                                                              areas that need improvement. 
Administrative  Percentage of walk‐ins              100%  A front counter log will be reviewed each month to 
Support         experiencing counter wait times               ensure that any customer requests or issues are 
                of less than 10 minutes                       handled quickly and effectively so as not to be an 
                                                              inconvenience.  The data will be compiled into a 
Administrative  Percentage of phone                 100%  Inquiries and complaints from walk‐in traffic, emails 
Support         inquiries/information                         and phone calls will be tracked and compiled into a 
                requests/complaints handled                   report. 
                within 24 hours 
 Plan Review  Residential (IRC) plan reviews –      100%  City of Muskegon permit software should capture 
                maximum time to first comment                 this information.  If not, SAFEbuilt will utilize its 
                is 5 business days.                           proprietary software to provide reporting. The 5 
                                                              business day’s time frame is a maximum time to 
                                                              comments.  All plans will be reviewed on an As Soon 
                                                              As Possible (ASAP) basis. Estimate times to 
                                                              completion will be communicated to applicant.  
 Plan Review  Multi‐family plan reviews             100%  City of Muskegon permit software should capture 
                maximum time to first                         this information.  If not, SAFEbuilt will utilize its 
                comments is 10 business days.                 proprietary software to provide reporting. The 10 
                Maximum time to  second                       and 5 business day’s time frames are a maximum 
                comments  is 5 business days                  time to comments.  All plans will be reviewed on an 
                                                              As Soon As Possible (ASAP) basis. Estimate times to 
                                                              completion will be communicated to applicant. 
 Plan Review  Small Commercial (<$5M in             100%  City of Muskegon permit software should capture 
                valuation) plan reviews first                 this information.  If not, SAFEbuilt will utilize its 
                comments within 10 business                   proprietary software to provide reporting. The 10 
                days/second comments 5                        and  5 business day’s time frames are  a maximum 
                business days                                 time to comments.  All plans will be reviewed on an 
                                                              As Soon As Possible (ASAP) basis. Estimate times to 
                                                              completion will be communicated to applicant. 
 Plan Review  Large Commercial (>$5M in             100%  City of Muskegon permit software should capture 
                valuation) plan reviews first                 this information.  If not, SAFEbuilt will utilize its 
                comments within 15 business                   proprietary software to provide reporting. The 15 
                days/second comments 10                       and 10 business day’s time frames are a maximum 
                business days                                 time to comments.  All plans will be reviewed on an 
                                                              As Soon As Possible (ASAP) basis. Estimate times to 
                                                              completion will be communicated to applicant. 
Building  and  All inspections performed            100%  City  of  Muskegon  permit  software  should  capture 
Trade           within 24 hours of request                    this  information.    If  not,  SAFEbuilt  will  utilize  its 
Inspections     unless otherwise requested by                 proprietary  software  to  provide  reporting.  The 
                applicant                                     maximum time to complete a scheduled inspection is 
                                                              24 hours – this does not include non business days. 
                                                             Page 40 of 45 

If  the  City  of  Muskegon  is  interested  in  utilizing  SAFEbuilt’s  permitting  software  system  we  suggest  that  the 
current  BS&A  system  is  maintained  for  the  initial  six  (6)  months  of  our  agreement.   This  will  allow  for  a  smoother 
more efficient transition of services. 
SAFEbuilt  has  experience  utilizing  the  BS&A  software  package  and  we  are  happy  to  use  either  our  system  or  the 
City’s current software.  If BS&A is preferred, all costs associated with the BS&A package will be paid by the City of 

SAFEbuilt’s Permitting Software 
Local  government  recognizes  the  importance  of  increasing  their  electronic  capabilities,  and  SAFEbuilt  can  help  in 
this  area.    As  a  company,  we  have  developed  a  building  department  software  package.    The  software  allows 
workflow  tracking  for  monitoring  a  permit’s  progress  through  the  entire  permit  lifecycle  with  separate  signoff 
capability  for  appropriate  internal  and  external  departments.    SAFEbuilt’s  permitting  system  also  offers  an 
additional module for contractor and business licensing.  Main features of our software include: 
         Application data tracking, customizable to match existing forms 
         Workflow tracking for monitoring a permit’s progress through the entire permit lifecycle 
         Owner, contractor, and address databases maintained in order to keep accurate records  
         Fee assessment and collection capabilities – including use tax and other City fee items  
         Separate signoff capability for appropriate departments, both internal and external 
         Document attachment capability for scanned items pertaining to specific permits 
         Web‐enabled thin‐client accessible with an internet connection 24/7/365 
         Online inspection scheduling, workflow tracking, plan review and inspection status details 
         Standard reporting as well as custom reports written to your specifications  
         Full offsite backup and storage 
         Training on SAFEbuilt’s software will be provided to the City of Muskegon  
         Tracking for contractor and business licensing that alerts user if appropriate licensing,  registration, or 
         insurance is not in place at permit issuance 

Contractor Registration 
If  the  City  of  Muskegon  elects  to  utilize  our  software,  SAFEbuilt  will  provide  a  module  to  help  facilitate  a 
registration  and  licensing  program  as  adopted  by  the  City.    This  customized  software  module  provides  tracking 
and reporting of services typically associated with these types of programs. 

                                                            Page 41 of 45 


Service  and  Improvement  are  two  of  our  core  values.  We  recognize  that  superior  customer  service  and 
continuous  improvement  are  vital  to  maintaining  long  term  relationships  with  our  municipal  client  partner.   We 
believe that providing exemplary customer service to the citizens, builders, developers and homeowners of City of 
Muskegon is our most important performance measurement.  Evaluating performance from the citizen, applicant, 
and customer perspective is a critical component of how our division’s success should be measured. 
To  pro‐actively  avoid  conflict  and  ensure  customer  satisfaction,  the  SAFEbuilt  team  takes  steps  to  monitor 
changes in the building and development environment and provide education and updates to our clients: citizens, 
builders,  developers,  architects  and  others.   We  provide  educational  materials  such  as  building  guides  for  public 
use.    Where  our  team  members  must  take  actions  to  enforce  your  ordinances,  they  will  provide  written 
explanations and cite relevant ordinance or state code sections.   
Additionally,  the  SAFEbuilt  team  will  provide  an  applicant  survey  available  to  the  general  public  to  better  gauge 
general  satisfaction  with  the  department.  The  survey  findings  will  be  compiled  in  a  quarterly  report  available  to 
the City of Muskegon and used as a tool in assessing customer satisfaction. 
Evaluating  our  performance  from  the  customer  perspective  is  a  critical  component  of  how  our  success  is 
measured.   We  survey  our  clients  twice  a  year  to  gather  their  feedback  and  suggestions  for  improvement.   In  our 
latest survey we received a client satisfaction rating of 100% 
The  primary  purpose  of  these  surveys  is  to  both  ensure  customer  satisfaction  through  excellent  customer  service 
and to identify areas of improvement in how services are delivered.  The survey results will identify strengths and 
weaknesses while providing insight as to how to make needed adjustments to improve service. We will be looking 
for process improvements in order to better serve customers.  
The  SAFEbuilt  team  will  facilitate  a  cooperative  work  environment  between  the  building  department  team, 
contractors, and applicants to increase compliance and improve the quality of design submittals, thereby reducing 
the number of reviews necessary for permitting.  SAFEbuilt will develop these resources for applicants:  
    • Informational handouts and building guides at the counter 
    • Handouts detailing customer satisfaction information 
    • Informational resources on your website 
    • Access to staff through cell phones during business hours 
SAFEbuilt views itself as a partner in the development process and puts the proper resources and services in place 
to make sure the building community has what it needs.  City of Muskegon will know that their community is 
receiving the best and latest services available to them. 

                                                           Page 42 of 45 

SAFEbuilt  does  not  utilize  a  company‐wide  fee  schedule.    A  majority  of  our  fees  are  based  on  an  appropriate 
percentage  of  the  jurisdictions  adopted  fee  schedule  for  services  being  provided  by  SAFEbuilt.      SAFEbuilt 
proposes services to be performed at the following rates. SAFEbuilt’s fees are all inclusive with no separate billing 
    •                                                 •
            Wages/Benefits                                Materials 
    •                                                 •
            Mileage/Vehicle Expense                       Disbursement  (copying, telephone rates, courier services) 

Fee Schedule 
SAFEbuilt will work to close all open permits at the rate of $40.00 per permit – billed monthly when closed 

Building Department Related Fees – 80% of all adopted building department fees 
Except the following: 
            Rental  property and associated fees 
            Tele‐ communication outlets 
    •       Housing Warrant Inspection Fees 
    •       Property Maintenance code approval 

Annual Volume Discount Incentive 
SAFEbuilt  will  offer  the  following  incentive  program  to  the  City  of  Muskegon.    This  program  is  designed  to 
encourage  surrounding  communities  to  share  building  department  and  related  services  with  SAFEbuilt  as  the 
provider.    Discounts  are  given  to  all  participating  communities  based  on  volume  of  activity  for  each  fiscal  year 
(July 1st – June 30th).  Activity and associated revenue will be evaluated yearly and the appropriate discount will be 
applied to the following year’s fees. 

    •       Annual Revenue of $ 0.00 ‐ $ 500,000 ‐ 0% Discount 
    •       Annual Revenue of $ 500,000 ‐ $ 750,000 – 2.5% Discount 
    •       Annual Revenue of $750,000 ‐ $1,000,000 – 5% Discount 
    •       Annual Revenue of $ 1,000,000 – plus – 10% Discount 

Invoice & Payment Structure 
It  is  our  standard  practice  to  invoice  monthly  and  our  terms  are  Net  30.    Our  billing  will  include  all  supporting 

SAFEbuilt  carries  the  full  complement  of  business  insurance  including  errors  and  omissions  (E&O),  property, 
liability,  auto  and  workers  compensation.  We  will  provide  certificates  of  insurance  that  name  the  City  of 
Muskegon as an additional insured at the following amounts: 

    •       Commercial General Liability:  Each Occurrence ‐ $1,000,000 / Damage to Rented Premises Each Occurrence 
            ‐ $1,000,000 / Personal Injury Each Occurrence ‐ $1,000,000 / General Aggregate ‐ $2,000,000 
    •       Automobile Liability:  Each Occurrence ‐ $1,000,000 
            Umbrella Liability:  Each Occurrence ‐ $5,000,000 / Aggregate ‐ $5,000,000 
    •       Professional Liability:  Per Claim ‐ $5,000,000 
    •       Workers Compensation:  Per State requirements 

                                                              Page 43 of 45 


Summary of Benefits 
    •   Providing the opportunity through SAFEbuilt for  you and your neighboring communities to benefit from a 
        shared services model while still maintaining local control 
    •   Percentage of fee billing means 
             no fixed costs 
             costs will never exceed revenue – never run at a deficit again 
             no more employee legacy costs in this department 
             you retain an appropriate portion of the fees to offset your administrative and building official costs 
    •   Proven processes and systems – we have the experience to handle any project. 
    •   Improved customer service 
    •   Permitting software package – should you want to make a change from current system 
    •   Added technology such as mobile computing  and resulting to improve the way services are provided 
    •   Community givebacks –  scholarships; homeowner educational workshops, volunteering 

In addition to the references listed below, please feel free to contact any of our current clients. 
      City of Troy, MI                                                
      Mark Miller 
      Assistant City Manager 
      Phone:  248‐524‐3351 
      City of Madison Heights, MI                                     
      Jack Williams 
      Building Official 
      Phone:  248‐583‐0831 
      City of Northglenn, CO                                          
      William Simmons 
      City Manager 
      Phone:  303‐450‐8709 

                                                       Page 44 of 45 

Current Clients 
Many  public  agencies  have  called  on  us  to  provide  full  building  department  services  or  supplement  their  own 
Aims Community College, CO                Federal Heights, CO                      Mountain Park, GA 
Aspen Public Schools, CO                  Front Range Community College            Navassa, NC 
Aspen, CO                                 Firestone, CO                            Nederland, CO 
Ault, CO                                  Forest Park, GA                          Newberry County, SC 
Auraria Higher Education, CO              Foxfield, CO                             Northglenn, CO 
Barnwell, SC                              Georgetown, SC                           Northeastern Junior College 
Belville, NC                              Gilcrest, CO                             Northwest, NC 
Beaufort, SC                              Grover, CO                               Nunn, CO 
Beaufort County, SC                       Hanahan, SC                              Peachtree City, GA 
Bennett, CO                               Hampton, GA                              Pierce, CO 
Boulder County Schools, CO                Hapeville, GA                            Pitkin County, CO 
Boulder County, CO                        Hartsville, SC                           Platteville, CO 
Breckenridge, CO                          Hayden, CO                               Powder Springs, GA 
Burlington, CO                            Hudson, CO                               Red Cliff, CO 
Castle Pines, CO                          Idaho Springs, CO                        Rio Blanco County, CO 
Castle Rock, CO                           Johns Creek, GA                          Riverdale, GA 
Caswell Beach, NC                         Johnstown, CO                            Saluda, SC 
Centennial, CO                            Jonesboro, GA                            Sandy Creek, NC 
Chamblee, GA                              Keenesburg, CO                           Senoia, GA 
Chattahoochee Hills, GA                   Kersey, CO                               Severance, CO 
Cheraw, SC                                Kiowa, CO                                Sharpsburg, GA 
Chester, SC                               Lake City, GA                            St. Vrain Valley Schools, CO 
Clarkston, GA                             Lake County, CO                          State of Colorado 
Coastal Carolina University, SC           Limon, CO                                State of South Carolina 
College of Charleston, SC                 Lithonia, GA                             Stone Mountain, GA 
Colorado Mesa University                  Lochbuie, CO                             Summit Public Schools, CO 
CO State University, CO                   Loveland, CO                             Timnath, CO 
Commerce City, CO                         Lyons, CO                                Troy, MI 
Craig, CO                                 Madison Heights, MI                      Tyrone, GA 
Decatur, GA                               Marlboro County, SC                      Union City, GA 
Department of Corrections                 Mead, CO                                 University of Northern CO 
Dept. Military & Veterans Affairs         Medical University of SC                 Vail, CO 
Dept. of Natural Resources                Meeker, CO                               WC School District, CO 
Eagle, CO                                 Midlands Technical College               Wellington, CO 
Eagle County School District              Milton, GA                               West Point‐KIA, GA 
Easley, SC                                Moffat County Schools, CO                Windsor, CO 
Edgewater, CO                             Morrison, CO                             Young Harris College, GA 
Elizabeth, CO                             Morrow, GA                                


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