Approved Agreements and Contracts 2026/05/12 SafeBuilt Contract Amendment

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                                  mw MUSKEGON
                          Agenda Item Review Form
                          Muskegon City Commission

Commission Meeting Date: May 12, 2026                 Title: SafeBuilt Contract Amendment

Submitted by: Timothy Kozal, Public Safety             Department: Public Safety
Director


Brief Summary:
Approve two amendments to the SafeBuilt contract:


1. Liquor license fees and re-inspection fees to be deleted in their entirety.
2. Rental program fee schedule change.

Detailed Summary & Background:
1.Liquor License Fees: ‘Liquor License Inspection & Re-Inspection Fees,’ is hereby deleted in its
entirety


2. Rental Program fee schedule:

            e A 3% inflator will be implemented January 01, 2027 and every January Ist thereafter
              through December 31, 2029.




            e Arate-opener will be held to determine the rate for years beginning January 01, 2030
              and thereafter.




            e Rental Program Revenue Sharing shall be subject to a 50/50 split for all annual revenue
              in excess of $400,000. The City shall retain the first $400,000 in annual revenue.




Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Increase revenue

Is this a repeat item?:
Explain what change has been made fo justify bringing it back to Commission:



Amount Requested:                                      Budgeted Item:
n/a                                                     Yes            No          N/A      |X
                 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
                                                  2026-34(N)


         This First Amendment to the Professional Services Agreement (the “Agreement”) is effective May
12, 2026 by and between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street,
Muskegon, Michigan 49440 (“City”), and SAFEbuilt Michigan, LLC, wholly owned subsidiary of
SAFEbuilt, LLC, with an address at 444 North Cleveland, Suite 444, Loveland, CO 80537 (“SAFEbuilt”).
City and SAFEbuilt are individually referred to as a "Party" and may be collectively referenced as the
"Parties."


                                               AMENDMENT


    1.   Liquor License Fees. Section 2 of Exhibit B to the Agreement, titled ‘Liquor License Inspection
         & Re-Inspection Fees,’ is hereby deleted in its entirety.


    2.   Rental Program Fee Schedule. Section 6 of Exhibit B to the Agreement is hereby amended and
         replaced in its entirety to read as follows:


             e    A 3% inflator will be implemented January 01, 2027 and every January Ist thereafter
                  through December 31, 2029.


             e    Arate-opener will be held to determine the rate for years beginning January 01, 2030 and
                  thereafter.


             e     Rental Program Revenue Sharing shall be subject to a 50/50 split for all annual revenue in
                   excess of $400,000. The City shall retain the first $400,000 in annual revenue.


    3.   Full Force and Effect. The Agreement remains in full force and effect except as amended by this
         First Amendment.


    4,   Counterparts, Electronic Signatures. This Amendment may be executed in counterparts, and
         each set of duly delivered identical counterparts which includes all signatories, shall be deemed to
         be one original document. Electronic copies and/or electronic signatures shall be considered valid
         and enforceable.


This First Amendment is effective as of the Effective Date.




                                [SIGNATURE PAGE ON FOLLOWING PAGE]
                               [SIGNATURE PAGE]


CITY —                                 SAFEbuilt —


CITY OF MUSKEGON, a Michigan           SAFEbuilt Michigan, LLC, a Michigan
municipal corporation                  limited liability company



By: Apt sar.
Name: Ken Johnson
Title:
Date:
         Ma
                7"13-foad              2           A
                                       Title: Matthew eausiey
                                       Name:


aot.                                   Date:   _May 20, 2026
Name: Ann Marie Meisch
Title:   City   Clerk
Date:           a

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