PUBLIC COMMENT
CITIZEN’S COMMENTS
CONTRACTOR LICENSING DRAFT ORDINANCE
January 31, 2005
Torres called the meeting to order at 7:00 p.m. and began with introductions. Staff present was: Monica Cardin, Melissa Mitchell, Tim Pinnick, Victor Torres and Barry Walthall. Fifty-seven people were present.
Torres requested that those making comment step up to the podium and sign in.
Torres advised the objective of the meeting is to gain public comment regarding the Contractor Licensing DRAFT Ordinance. He briefly provided background regarding the development of the ordinance. He noted that the ordinance does not contain implementation information. The proposed implementation date is July 1, 2005.
Torres reviewed the Power Point presentation handout.
Public Comment
Jim Slough stated he has difficulty supporting the proposed ordinance because of the specifics dealing with homeowners as contractors, which prevents homeowners from acting as the general contractor. His livelihood is at risk. Slough commented that he has owned up to 25 properties at one time, and has worked on each one as a general contractor. He asked if he could pull permits as the owner. He noted his property rents are directly related to the upkeep of the property. He stated that hiring someone else is not going to attribute to his ability to make affordable housing. Slough currently has an active permit and is planning on working on three other projects. He stated that provisions need to be made for people like him.
Torres stated he received a call regarding the same question. He stated that the way the ordinance is written, a landlord performing certain work may have to be a licensed contractor. He noted that the City of Wichita and Johnson County share the same view that a landlord would need to be licensed if performing worked such as constructing, remodeling or repairing a structure. He noted that Slough’s concerns would become a part of the meeting minutes.
Mark E. Lehmann, business management, commented on the landlord/property manager issue of becoming a licensed contractor. He stated that there are several landlords that qualify as contractors and there are those that should not. He stated that the full-time status may be a problem, but those that qualify as contractors should be afforded a license and provisions included in the ordinance. The applications should be examined on a case by case basis. Landlords need to work on their own properties.
Ron Durflinger, builder, asked for written clarification regarding the insurance requirement, Section 5-1207. He stated that Johnson County also requires builders to have workman’s compensation insurance, if the builder has employees.
Torres noted the insurance section.
Durflinger also asked for a clearer definition of “experience,” Section 5-1215, part b. Torres stated there are different experience requirements for each class type. For example, if the person wanted to be a framing contractor, the City would require him to have at least five years of experience being a framer.
Durflinger stated Johnson County also looks at the number of permits pulled on an annual basis or accepts recommendations from a building official, architect, or engineer, who is qualified to state that the individual can do the job. He stated that it would be a benefit if “experience” was better defined. He also inquired about changing reciprocity to include other cities and not just states.
Torres stated that staff would make the change regarding reciprocity.
Durflinger inquired about Section 5-1218, and how many licenses a person is required to get if he is the primary stockholder of more than one company. He asked if whether one license would be issued for all three companies or would each company be required to have a license. Torres stated that each company would require a separate license.
Durflinger further clarified by asking if each company is required to have a license and pay the fee. Torres stated each company has to have a license and would pay the fee.
There followed a brief discussion regarding qualifying parties.
Torres stated the intent of Section 5-1218 is to identify and license the qualifying party of each company. Essentially, if one has multiple companies, one needs to have multiple licenses.
Durflinger further explained that it means there needs to be a connection between the qualifying member, the company and the license. Companies would have to have an individual license, but the person could be the qualifying member for several companies.
Durflinger stated that a better explanation of the intent in regards to serious and repeated violations in Section 5-1220 is needed. Torres stated staff will review the section.
Brian Blevins, Central Plains Construction, stated that he was licensed in Wichita for 17 years, but then quit a few years ago. He tested on the UBC and CABO. Wichita’s liability insurance requirements were $300,000 for Class A, B and C and he does not see the reason behind the $1,000,000 liability insurance requirement. He wanted to express his concerns and noted his insurance companies require him to be very specific for the type of work he does. He also asked that if there was a code violation, would staff put an immediate stop work order on the site, like the City of Wichita does. Torres stated the code enforcement of violations is not in the Contractor Licensing DRAFT Ordinance. The Department does have that authority based on other codes the City adopted and will stop work in the case of a public safety violation.
Blevins asked when the International codes would be available. Torres stated that the Code Review Committee recommended the International codes be adopted to the City Commission, who in turn directed the individual boards to review the international codes. The boards are still in the review process.
Jonathan Groene, J. Groene Construction, asked for clarification regarding how the Department would verify the completion of the continuing education requirement.
Torres stated that staff expects to receive a list of local contractors that attend each session. The continuing education is offered through Johnson County, which holds its sessions at the Overland Park Convention Center. Everyone has to pre-register for it, sign in for the morning session and sign in for the afternoon session. At the end of the day, they distribute a certificate of completion to the attendees. As for verifying the work experience, an affidavit would be submitted with the contractor license application verifying where the person worked. If it is a local contractor, staff can also verify work experience from the building permit software. There are a variety of tools staff will use to verify experience. If staff has questions, they will contact the applicant.
Groene inquired about the fee. Torres stated that the annual license fee will be $200, the City will then send $135 to Johnson County for 8-hours of continuing education per contractor and retains $65 for processing the application. The contractor will have to pay the fee every year.
Groene questioned if a person has a remodeling company, would he need to get two licenses. Torres stated that a company may license as either a Class A, B or C; the company can perform work in the Class E as well. A Class A, B, or C license holder will be able to perform the work of a Class E, framing or concrete without obtaining a separate license.
Groene asked staff to distinguish the types, Sections 5-1208 through 5-1212; especially non-structural remodeling, Section 5-1209. Torres stated that a Class A license holder can construct, remodel, repair or demolish any structure. A Class B license holder, may construct, remodel, repair or demolish any structure not exceeding three stories in height and non-structural remodeling such as building a partition wall, a non-load bearing wall. Torres described the remaining Class types and permitted work.
Groene stated it needed to be clarified more.
Rod Laing, builder, stated that he owns several different corporations, which he builds under several of them. He asked if each company would have to pay $200 and attend several different continuing education classes to meet the requirement. Torres stated that only eight hours are required and rather than pay $200 for each license, one license would be $200 and the others would be $65. Every company needs a license.
Tim Bailey expressed concerns regarding homeowners as contractors. He believes the loophole is unfair. He asked for clarification regarding whether or not the property owner who has another company, would be required to have two contractor licenses to work on their properties.
Bailey asked that if company Y, the building company, could do work for company X, the property management company. He also asked if he would also be required to carry a framing and concrete license. Torres stated that under Class A, B and C, the license holder will be permitted to perform framing and concrete work can be completed without an additional license. An individual may obtain a separate framing or concrete license.
Doug Garber, builder, asked for consideration in regards to being qualified if an individual is a Class C contractor, but the individual wants to get into some property and build conventional four-plexes but is not qualified to do that. Torres stated that as a Class C contractor, the individual would not be able to do that. Likewise, he stated that a residential contractor would not be able to work in Class A, but would have to do work in whichever option is available to him.
Lehmann asked why the Codes Enforcement Division considers a four-plex a commercial building. Walthall stated that the building code is broken down into one or two dwelling situations. It deals with structures differently. The Code exempts one or two dwelling structures from requiring designed drawings. As the residential structures get larger, the Code starts requiring design drawings, architectural and structural details. Typically, the light-frame construction methods do not apply to larger residential structures.
Frank Smith stated he is a landlord, currently has a Plumbing contractor license, and does work on his own properties. He questioned whether he would need both Class C and D licenses and whether the insurance he carries now would qualify for both classes. Torres stated that the insurance requirement for a Class C license is requires a $1,000,000 policy and the Class D requires a $500,000 general liability policy. The Class C insurance requirement will cover both license types.
Smith inquired about the education requirement and the number of hours per year. Torres reiterated that it is eight hours per year.
Torres noted that once the City implements this ordinance, the Department will post a Frequently Asked Questions section to the webpage.
Laing commented he has attended two education classes by Johnson County. He left the classes feeling like he learned something new. Johnson County hires experts in all the fields and they have many different fields one can take classes in. He stated that it was a very worthwhile experience and is excited that Johnson County is letting the City of Lawrence attend the program.
John Joyce inquired whether the City of Lawrence needed to be a certificate of insurance holder or if the City would just accept a letter showing that the contractor is insured. Torres stated the City needs to be added as a “certificate holder.”
Ron Benedick questioned whether the City would require the continuing education class before the contractor receives the first license. Torres stated no, but that it would be required during the first full year the program is in effect. The license will be renewed annually. The tentative date for implementation is July 1, 2005 and the Department expects to work with the contractors for the program year. The license will be effective from January to December 31 and it will be renewed in December. The continuing education credit will need to be completed within the first full year. There will be no prorating after the initial implementation period.
Torres announced another public comment meeting will be held in February and staff will notify the public. He asked that if something was still not clear, to please contact the Department.
Torres closed the Public Comment meeting at 8:10 p.m.