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Volume 12 Issue 4             

September 2000

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

Providing Positive Reinforcement to Motivate Employees to Improve

Many of us manage by exception, meaning that we focus on the few behaviors that don’t fit the main pattern. Therefore, since most people do right most of the time, we single out the inappropriate behavior for criticism rather than reward all of the good behavior. We provide more negative reinforcement than we do positive reinforcement.

As leaders, we have to get better at rewarding people for the appropriate behavior. For example, make a point of praising employees in public – a highly effective motivational technique. The vast majority of employees improve their job performance after being publicly complemented.

There are so many activities managers could positively reinforce that we need to time our reinforcers, even plan them, to have maximum impact. Reinforce appropriate behavior immediately after the action is complete. Tying the reinforcement to the activity endows the reinforcement with a higher value. And a random schedule of reinforcement produces greater impact. If workers know that every Friday the boss comes to the job site and every Friday the boss says, “You guys did great this week,” the predictability of this reinforcement causes it to lose value. A better approach is to produce a random schedule to reinforce different behaviors.

For example, if your employees receive a $200 bonus each year, that bonus quickly becomes part of their expected compensation. Thus, if the company suffers poor financial results one year and cannot afford to pay the bonus, your employees would be dissatisfied because they assumed the bonus to be part of their compensation; the bonus, in this case, would act as a demotivator. If, however, the dollar amount, the timing, and the activity rewarded were variable, the bonus would be a definite motivator.

Since reward isn’t always possible, punishment may have to be used occasionally to discourage undesirable behavior. But it’s very difficult to give good criticism or effective punishment. In fact, most punishment produces exactly the opposite result of what you’re trying to accomplish. Employees are demotivated and demoralized by punishment they perceive to be unfair.

When forced to reprimand employees, do it in private, not in public. And never ridicule the employee. A good technique for pointing out a deficiency is to sandwich the constructive criticism or punishment between two positive statements. For instance, the positive statement could be, “Your project is ahead of schedule at this point.” Then point out the problem, “However, your costs are not in line with our budget.” Then add the second positive statement or reinforcement, “So, let’s see if you can stay within budget, as you’ve done on all of your jobs in the past three months.”

Most leaders don’t like punishing and realize it doesn’t get good results. Yet managers continually focus on punishment rather than positive reinforcement because it’s much easier to punish the exception than it is to reward all of the positive activities. But effective leaders take the time to improve morale and quality by providing consistent positive reinforcement and feedback. When people are complemented, they try to repeat their good performance. Don’t assume that if everything is going well, you don’t need to compliment. On the contrary, it’s when things are going well that you need to comment, praise, and reward. Recognition of achievement is a powerful, positive motivator.

Providing positive reinforcement is an ongoing process. Learn to do it all the time, even when you’re doing something else. If you get into the habit of doing it constantly, it will pay off for you, for your employees, and for your company.

FMI Management Letter – June 2000

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

Office Happenings  by Karen Colver

Page 2

JAC Graduation Dinner

On Saturday, July 15, 2000 a graduation dinner was held at Carl’s Chophouse in Detroit, MI to honor the June Apprenticeship graduates. There were 26 graduates altogether. This was one of the largest graduating classes in the history of the Apprenticeship School.

The Roofers and Waterproofers Local 149/SMRCA Joint Apprenticeship School are proud to announce the June 2000 Apprentice of the year, Chris Parsons (below right) along with the June 2000 Runner–up Apprentice, Raymond Kehr (below left). 

Chris Parsons is employed by Schena Roofing and Sheet Metal Co., Inc. and Raymond Kehr is employed by C. Davis Roofing, Inc.

SMRCA 2001 Annual Golf Outing

NEW LOCATION

We are pleased to announce a new location for the 2001 SMRCA Annual Golf Outing. The new location sites are Twin Lakes Golf & Swim Club and Black Heath Golf Club. Both courses are located on Rochester Road in Oakland, MI. The courses and facilities have been investigated and are fairly new. The format will remain the same, a shotgun start at 11:00 am. The scheduled date is for Tuesday, May 22, 2001. So mark your calendars for this special outing!

MiRCA 35th Annual Convention

The MiRCA 35th Annual Convention was held at Boyne Highlands, Harbor Springs, Michigan on August 3-5, 2000. The group attendance was approximately 95 adults and 25 children. Everybody enjoyed themselves!

At this time I would like to take the opportunity to thank all the cocktail sponsors and prize donors. They are listed as follows:

ALCO-NVC, Inc.
Allied Building Products Corporation
Aluminum Supply Company, Inc.
Benson’s Oakland Wholesale, Inc.
GAF Materials Corporation
Garwood, Buda, Knight & Assoc., Inc.
Hoekstra Roofing Company
Johns Manville
Kawkawlin Roofing Company
Koppers Industries, Inc.
Lumbermen’s, Inc.
Marty Wildfong & Associates, Inc.
National Ladder & Scaffold Company
North Roofing Company
Oakland Metal Sales, Inc.
Phil Johnson Sales & Associates
R. K. Hydro-Vac., Inc.
Roofing Industry Promotion Fund
SMRCA
Triangle Design, Inc.
Trumbull Asphalt
Wimsatt Building Materials, Inc.

Without you the convention would not be a success!

Newest Arrival

Nicholas Christopher Schena was born on September 11, 2000. He weighed 7 lbs. 6.4 oz. The proud parents are Mike and Kim Schena and grandparents are George and Marie Schena (Schena Rfg. & S.M. Company).

SMRCA Night At the Races

The date for the SMRCA Night at the Races is Thursday, October 5, 2000. The SMRCA office recently sent a mailing regarding this event along with your registration form. The location for this event is the Hazel Park Harness Raceway. Seating for the event begins at 6:00 pm followed by dinner at 6:30 pm and the races begin at 7:30 pm. We encourage you to attend – it is always an exciting evening. Who knows, maybe you’ll leave with a pocket-full of money!!

SMRCA Membership Meeting

The SMRCA membership meeting is scheduled for Friday, October 20, 2000, at 11:30 am located at the Best Western/Sterling Inn in Sterling Heights, Michigan. Mr. Neil Zechman of the Michigan Unemployment Agency will be on hand to discuss the Wage Record Conversion effective October 1, 2000 as well as many other important issues. We feel this will be a very informative meeting for everyone. Please make every effort to attend. You will be receiving a mailing from the SMRCA office regarding this meeting along with a registration form. Hope to see you there!

Schedule of Events

2000
October 5 – SMRCA Night at the Races, Hazel Park Raceway
October 8-12 – SMACNA’s 57th Annual Convention, Waikoloa, Hawaii
October 25-27 – Roofing Contractors Association of Texas’s 25th Annual Conference and Trade Show, San Antonio, TX

2001
January 18-19 – Chicago Roofing Contractors Association’s Convention and Trade Show, Chicago, IL
February 14-17 – NRCA 2001 Annual Convention, San Francisco, CA
October 11-12 – MRCA 52nd Annual Convention and Trade Show, Nashville, TN

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

Roving1.gif (1287 bytes)Industry News          by Karen Colver                 Page 3

SMRCA Announces Scholarship Winners

Warren – The Southeastern Michigan Roofing Contractors Association (SMRCA) awarded six Scholarship Grants to college bound students at a July meeting held at the SMRCA office in Warren, MI. Commercial Roofing Contractors of Southeastern Michigan, through the SMRCA, along with the Roofers Union Local #149 annually award college scholarships to dependents of employees of member roofing contractors.

This years winners were Rachael Catherine Gilliam of Taylor, MI; Katie Hein of Sterling Heights, MI; Rachel Marie Zinser of Troy, MI; Karessa Marie Spudowski of New Baltimore, MI; Katherine Peoples of Royal Oak, MI and Daniel J. Zinser of Troy, MI. Their family members employing contractors are Schreiber Corporation in Detroit, MI; Dave Pomaville & Sons in Warren, MI; and Royal Roofing Company in Orion, MI.

Applicants were asked to submit an essay describing “How Important is the Roofing Industry?” to the joint Union/Contractor Scholarship Committee. Winners receive Scholarships in the amount of $600.00, contributed by the SMRCA, Local #149 and the Contractor Employer. The awards were presented by the SMRCA Governors of the Scholarship Committee.

Initiated over 15 years ago, the SMRCA/Local #149 Scholarship Program continues to promote continued education and to encourage industry dependents to attend college.

RIEI To Conduct Educational Courses Nationwide

Denver, Colorado – The Roofing Industry Educational Institute (RIEI) will be conducting a series of educational courses throughout the United States designed for individuals who want to enhance their knowledge of roof systems.

The courses available are as follows: Roofing Technology; Advanced Roofing Technology; Introduction to Roofing; Roof Inspection, Diagnosis and Repair; Roof Repair and Maintenance; Single-ply Roof Systems; Energy-efficient Roof Design; Roof Asset Management; Roofing Safety; Architectural and Low-slope Metal Roof Systems; Roofer—EMS (Engineered Management System); Spray Polyurethane Foam and Reroofing 2000.

For more information and course dates, those interested should contact Debbie Cangialosi, RIEI’s business manager, at (303) 703-9870, Ext. 22.

June Contracts Increase 3%

New construction contracts rose 3 percent in June, reports the F.W. Dodge Division of The McGraw-Hill Cos. In June, nonresidential building construction increased 14 percent. Amusement-related construction increased 133 percent. Warehouse, store, hotel, health-care facility, office, school and public building construction increased 23 percent, 22 percent, 18 percent, 9 percent, 8 percent, 5 percent and 1 percent, respectively. However, transportation terminal construction dropped 35 percent; manufacturing plant construction decreased 29 percent; and religious building construction fell 9 percent.

Residential building construction fell 8 percent in June. Single-family housing construction decreased 10 percent, and multifamily housing construction increased 2 percent. Residential construction activity decreased in all major U.S. regions—the Midwest and South Central dropped 11 percent; the Northeast fell 9 percent; the West decreased 5 percent; and the South Atlantic slipped 7 percent.

Total construction activity in June was 1 percent lower than the corresponding amount during 1999. Nonresidential building construction decreased 4 percent, and residential building construction increased 3 percent. The South Atlantic increased 5 percent, and the West advanced 2 percent. The Midwest, South Central and Northeast decreased 7 percent, 5 percent and 1 percent, respectively.

Professional Roofing – September 2000

Johns Manville and Carlisle Partner

Denver-based Johns Manville and Carlisle SynTec Inc., Carlisle, Pa., have announced a strategic alliance designed to extend the companies’ market shares in Canada.

According to the agreement’s terms, Johns Manville will provide sales and customer service support for Carlisle SynTec’s commercial roof membranes sold in Canada, and Carlisle SynTec will provide technical support for both companies.

In addition, Enercorp, Toronto, Ontario, Canada, an independent representative for Johns Manville, will represent Carlisle SynTec’s rubber and TPO roof systems.

Carlisle SynTec also has announced the expansion of its TPO manufacturing facility in Senatobia, Miss., that will accommodate additional warehouse and shipping needs. The expansion, which reportedly will triple the facility’s size, is slated for completion at the end of this year.

In addition, Johns Manville’s Roofing Systems Group has purchased a facility in Sulphur Springs, Texas. The facility will be used as a regional warehouse and distribution center and also will manufacture polyisocyanurate foam for the company’s insulation and sheathing products. The facility is scheduled to open during the first quarter of 2001.

Professional Roofing – September 2000

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

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OUT & ABOUT           by Heather hentges                   Page 4

JAC ROOFING SCHOOL DONORS

Platinum
Benson’s Oakland Wholesale, Inc.
Cant Products, Inc.*
David Chwalibog*
GAF Materials Corporation*
Johns Manville*
Lumbermen’s Inc.*
L.T. Ollesheimer & Son, Inc.*
North Coast Commercial Roofing
Systems, Inc.*
Siplast Roof Systems*
Tamko Roofing Products*
Triangle Design, Inc.*
Wimsatt Building Materials, Inc.*

Gold
M.W. Morss Roofing, Inc.*

Silver
JR Enterprises*
Newton & Crane, Inc.*
Roofing Consultants of Michigan*

*Denotes Charter Member

Donations for the JAC Training Center 2000 Program now total $22,350. We would like to thank all contributors that have donated money, materials or who have volunteered their valuable time to this worthwhile project. The JAC Training Center 2000 Program is still accepting donations. The SMRCA would like to thank-you for your continued support.

HAPPY ANNIVERSARY

Terry & Wally Kiciak (Tri-R Products, Inc.), August 14th.
Mary Jo & Ken Dietrich (T.F. Beck Co.), September 26th.
Karen & Gary Colver (SMRCA), October 3rd.
Tim & Robin Riha (DRIS), October 17th.
Kelly & Toni Conway (Tremco, Inc.), October 24th.

WELCOME LITTLE ONES

Owen Anthony Stanek was born on June 29, 2000. He weighed 9 lbs. 13 oz. The proud parents are Ryan and Gina Stanek and grandparents are Chuck and Dee Rosa (Schreiber Corporation).

Gabriela Patricia Rowe was born on August 16th. She weighed 7 lbs. 11 oz. The proud parents are Lawrence and Julie Rowe and grandparents are Larry & Beverly Rowe (National Ladder & Scaffold Co.).

BIRTHDAYS

HAPPY BIRTHDAY TO YOU . . .
HAPPY BIRTHDAY TO YOU . . .
HAPPY BIRTHDAY DEAR . . .

Belated birthday wishes to Marie Schena, Schena Roofing & Sheet
   Metal Co., Inc., July 31st.
Heather Hentges, SMRCA, September 21st.
Chris Dawson, Hunter Panels, September 28th.
Eric Schultz, October 3rd.
Larry Rowe, National Ladder & Scaffold Co., October 10th.
Terry Kiciak, Tri-R Products, Inc., October 13th.
Mervin “Smitty” Smith, October 13th.
Stacy Foley, Newton & Crane Co., October 20th.

PGA JUNIOR CHAMPIONSHIP

Congratulations to Patrick Casey, son of Dan and Dawn Casey of T.F. Beck Company. Patrick qualified for the Michigan PGA Junior Championship (12-13 years old) at Fieldstone Golf Club by shooting a 76. Patrick went on to win the Championship by shooting a 77 at Bedford Valley Country Club in Battle Creek, MI.

Apparently Patrick honed his game by hustling the likes of Bill Fisher, when Patrick was only 10 years old! Recently Patrick beat his father, Dan Casey, two out of three matches at the MiRCA Annual Convention.

GET WELL WISHES

We would like to extend our get well wishes to Gwen Traylor from Schreiber Corporation who has recently undergone back surgery.

We would also like to wish a speedy recovery to Patrick Casey who recently injured his knee while playing football.

OUR CONDOLENCES

We would like to extend our deepest sympathies to the family and friends of Erv Yankee. Erv passed away on Sunday, August 27, 2000 at his home. Erv was considered a legend in the roofing industry, he was involved with the roofing industry for over 40 years. The majority of his time was spent working at The Milbrand Roofing Company.

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

Hodge - Podge by Heather Hentges

Page 5

35th Annual MiRCA Convention

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This years convention was held at Boyne Highlands Resort in Harbor Springs, MI. As you can see by the surrounding pictures, everyone had a great time.

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The convention started on Thursday evening with the Welcome Reception, where everyone met for cocktails and hors’doeurves. Friday evening was an outdoor barbecue with a beautiful setting by the pond. We were entertained by karaoke. Saturday evening was the Sports Night. There were a lot of people dressed as their favorite sports heroes. Everyone also enjoyed playing games like: Michigan Darts, Nerf Basketball, Nerf Archery and the Golf Challenge. Tickets were collected for mastering the games and a drawing was held at the end of the night. The winners of the game drawings were: Sherry Stephenson – Stephenson & Sons, Inc., Tammy Gosciniak – L. T. Ollesheimer & Son, Inc., and Jody Smith – Lumbermen’s, Inc.. The best costume awards went to: Trisha Smith – Lumbermen’s, Inc. and Todd Sova – National Roofing & Sheet Metal.

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Friday afternoon the ladies had a “Ladies Golf Tournament”. The winners of the tournament were:

1st Place – Beth French, Wendy Sylvain, Trisha Smith & Diane Volz

2nd Place – Janet Emery, Tammy Gosciniak & Karen North

Jackie Sova, Kelly Sova, Amanda Childs & Dawn Casey

3rd Place – Linda Hoekstra, Marie Schena & Mary Stephenson

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While the adults were golfing and having fun, the children had a program of their own. They went on a scavenger hunt, hayride, made crafts and played outdoors. Friday evening the children made Mardi Gras masks for their Mardi Gras party. Saturday they played a nine hole round of putt-putt golf on the Executive Course. That evening they played carnival games. The children had an excellent time!

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This years convention was a blast! Mark your calendars for next years convention at Shanty Creek, Bellaire, MI on August 2-4, 2001. You don’t want to miss the exciting fun we have planned. See you all at next years convention!

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

Legal Forum by Mark Stasa

Page 6

Questions regarding the following question and answer articles should be directed to Mark J. Stasa at Kerr, Russell & Weber, P.L.C. (Attorney’s for SMRCA/RIPF). Your thoughts for future issues may be addressed to “Legal Forum” and be submitted to the SMRCA office. Please note that you should also consult your attorney concerning the application of the law to your specific situation.

Common Mistakes When Selling a Business

Selling a business can be one of the most important events in an owner’s lifetime. The sale of a family business allows its family members and other owners to realize the fruits of their labors and is a reward for years of hard work. Unfortunately, business owners typically make mistakes when they attempt to sell their company. The mistakes include:

Owners Stop Operating The Business

During the negotiation period, business owners tend to become overly distracted by the potential sale and ignore the normal day-to-day activities that are required to make their company successful. If this inattention to the business continues, the price of the business may be affected due to declining productivity and profitability.

Payment Of The Purchase Price

The phrase: “Cash is King” is the driving force in this section. Many purchasers attempt to structure a deferred payment of the purchase price over a number of years. This strategy should be avoided whenever possible because if the purchase price is received at closing, the selling is no longer reliant upon continuing operating risks and capital requirements of the business.

Payment Of Creditors

Sellers will typically become overwhelmed by the amount of money obtained from the sale and forget that creditors including banks and taxing authorities have to be considered when evaluating the transaction. Allocation of purchase price is a key factor that must be negotiated with the purchaser after consultation with the seller’s financial and legal advisors. Proper allocation of the purchase price will shift the sales proceed from the government’s pocket to the seller’s pocket.

Time Requirements (Before And After Closing)

Many sellers operate under an assumption that once the deal is “sealed” by hand shake, the closing will occur shortly thereafter. A due diligence review of corporate records is conducted by the purchaser and title and environmental reports must be obtained. This process usually takes 6-8 weeks. Purchasers also typically require a transition period where the owner also has to provide service for an additional 6-24 months subsequent to the sale.

Opportunity To Realize Optimal Value

Many owners fail to realize that in order to optimize the purchase price for the business, a competitive environment between potential purchasers must exist. The owner’s hopefully unique market niche will entice bidders to place a fair and equitable value on the business.

A strategic team of accountants, attorneys and other financial advisors are critical in order for an owner to properly sell the family business. An objective analysis minimizes and/or eliminates the five common mistakes referred to above resulting in a successful sale.

Pollution Prevention Week
September 18-24, 2000

Pollution prevention can be incorporated into many activities at work, such as:

1) Car pool, take mass transportation, bike or walk to work
2) Use reusable lunch containers and lunch bags
3) Copy on both sides of the paper to reduce paper use
4) Use recycled paper
5) Hold a “clean shop” tour
6) Recycle toner cartridges and printer materials
7) Install energy saving lights
8) Minimize water use by installing water saving toilets and faucets

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Inside This Issue

OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT
HODGE PODGE | LEGAL FORUM | EDUCATION

EDUCATION by Heather Hentges

Page 7

RIEI SEMINARS

The RIEI provides educational seminars that include cities from coast to coast. RIEI addresses a wide variety of seminar topics which are of interest to roofing contractors, consultants, specifiers, plant engineers, and anyone else with a professional interest in roofing design, construction and maintenance.

RIEI Schedule
September & October 2000

Advanced Roofing Technology

Sept. 12-13 Kansas City, MO
Oct. 31-Nov 1 Phoenix, AZ

This course is designed for those who want detailed information on roof calculation and design. It includes a review of the basics and extensive detail into wind uplift, drainage, tapered insulation design and expansion joint design. Anyone who is involved in roof design or construction, such as contractors, consultants, architects, manufacturer’s sales and technical service representatives will find this course valuable.

Architectural & Low Slope Metal Roofing Systems

Sept. 14-15 Kansas City, MO

Learn about the various types of Architectural and Low Slope Functions Metal Roofing Systems, including the properties of metal and coatings, substrate preparation, panel forming, use of accessories, detailing of terminations, penetrations and trim installation techniques, use in retrofitting and troubleshooting metal roofing systems.

Energy Efficient Roof Design

Oct. 23 Rockville, MD

This course will teach how to calculate insulation needs and how to pick compatible insulation and membrane systems. Understand how the energy codes relate to roof systems. Learn how to use tapered roof insulation to solve many problems as well as the strengths and weaknesses of roof insulation materials.

Introduction to Roofing

Oct. 2 Orlando, FL

Commercial roofing systems are not taught in college or most technical schools, yet no matter what roofing system is selected, certain requirements must always be met. This course serves as an orientation on roofing for those who don’t require the depth of the RIEI Roofing Technology course to meet specific job requirements.

OTHER SEMINARS

“How to Sell More Roofing Accounts Than You Ever Have Before...Guaranteed”

Introducing to you a list of prospects just for roofing contractors wanting to increase sales and profits instantly. The list is available through Corporate Marketing, Inc.. You can visit them at cmi.eas123.com for more information.

The Complete Guide To Wage & Hour Law

Oct. 19 Grand Rapids, MI
Oct. 20 Romulus, MI

An essential compliance course for payroll professionals who want to avoid wage and hour violations that result in steep penalties and costly litigation.

CAMTEC SEMINARS

Bidding Strategies for Profit
Sept. 27

Blueprint Reading I/Basic
Sept. 7 – Oct. 26

Blueprint Reading II/III Intermediate/Advanced
Sept. 6 – Oct. 25

Construction Industry Technician (C.I.T)
Sept. 6 – Oct. 25

Dale Carnegie Course
Sept. 11 – Dec 11

Estimating I/Basic
Sept. 19 – Nov. 7

Lien Law/Payment Bonds
Sept. 11

Power Industrial Truck Operator Training
Sept. 7

Project Management
Sept. 14

Residential Builders License Prep.
Sept. 19, 26 & Oct 3 & 10

Scaffolding
Sept. 14

Submit your next permit online at www.netclerk.com  Netclerk lets contractors submit and obtain permits ONLINE without having to make a visit to City Hall

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