City of Lawrence

Neighborhood Resources Department

 

MEMORANDUM

 

TO:

Mike Wildgen, City Manager

 

THRU:

Debbie Van Saun, Assistant City Manager

 

FROM:

Victor Torres, Neighborhood Resources Director

 

DATE:

March 3, 2005

 

SUBJECT:  Contractor Licensing

 

Staff from the Neighborhood Resources Department and the Lawrence Homebuilders Association (LHBA) has been meeting over the last year to develop a contractor licensing program for City of Lawrence building contractors.  During December, 2004, over 750 notices were mailed to local contractors describing the proposed contractor licensing program as well as a draft ordinance.  Included in the development of this ordinance were two separate public meetings, held January 31 and February 16, 2005.  The draft ordinance and meeting minutes are provided via the department website at:    http://www.lawrenceneighres.org/.  The final draft of the contractor licensing ordinance includes relevant suggestions obtained from public meetings and other public comment received throughout the drafting process.

 

Background

The LHBA requested the City consider establishing regulations for contractor licensing of building contractors.  In a letter dated September 8, 2003, Bobbie Flory, LHBA Executive Director, describes items the regulations would include, specifically, an educational component, a grandfather clause for active builders, an insurance requirement, and a fee structure that would support the administration and educational requirements of the program. 

 

Licensing – current requirements

The City currently requires that trade contractors (electrical, mechanical, plumbing and journeyman) secure a license to work in Lawrence.  At this time, continuing education is not a requirement for licensing of trade contractors.  Approximately 1000 trade contractors and journeyman are now licensed to perform work in Lawrence.   There is no current requirement for building contractors to be licensed.  Staff identified approximately 200 building contractors from our mailing list that would be affected if licensing regulations are established for this group of contractors. 

 

 

 

 

Licensing – proposed requirements

Licensing for building contractors can be processed through the existing software the City has in place.  The proposed contractor licensing program includes licensing provisions for the following contractors:

 

§         CLASS A - GENERAL CONTRACTOR.

§         CLASS B - BUILDING CONTRACTOR. 

§         CLASS C - RESIDENTIAL CONTRACTOR. 

§         CLASS D - TRADE SPECIALTY CONTRACTOR. MECHANICAL, ELECTRICAL, PLUMBING, AND FIREPLACE

§         CLASS E - BUILDING SPECIALTY CONTRACTOR.  FRAMING, AND           CONCRETE

 

Trade Board review

Members of the trade boards have reviewed the draft ordinance and provided comments, with the exception of the Mechanical Board of Appeals.  This item has been scheduled for two meetings of this Board during February, however the Mechanical Board of Appeals did not have a quorum at either meeting.  A meeting is being rescheduled for this board next week to review the contractor licensing draft ordinance.  Comments and clarifications from other boards have been incorporated into the draft ordinance.  

 

Continuing Education

A requirement in the draft ordinance includes a continuing education provision as part of the licensing scheme.  Every contractor/qualifying party will be required to attend 8 hours per year of continuing education.  Staff contacted the Johnson County Licensing Program regarding the continuing education provided to the Johnson County contractors.  Jerry Mallory, Certified Building Official with the Johnson County Contractor Licensing Program indicated in a letter dated April 30, 2004, that City of Lawrence contractors could take advantage of their continuing education program for a cost of $135.00.  (Note - the cost for participating in the Johnson County continuing education program would be in addition to any licensing fee payable to the City of Lawrence.)  An agreement with Johnson County will need to be developed once the Licensing Program is approved. 

 

Insurance

As part of this process, the Administrative Services Department reviewed the insurance requirements for all trade contractors and has recommended that general liability insurance replace the current surety bond license requirement.  This recommendation is included in the trade licensing ordinance draft and building contractor licensing ordinance draft, resulting in uniform insurance requirements.   In addition to the general liability insurance, licensed building and trade contractors must procure and maintain workers’ compensation insurance, as required by law.               

 

Recommendation

Staff agrees with the LHBA proposal to establish a contractor licensing program for the building contractors described in this memorandum.  Staff also recommends that the insurance requirements for trade contractors and building contractors be changed to include general liability and workers’ compensation insurance.

 

 

Action Items

If appropriate, direct staff to place the above-referenced ordinances on an upcoming City Commission for approval.  Additionally, direct staff to pursue an agreement with the Johnson County Licensing Program to provide continuing education courses to Lawrence building contractors.