Construction Board of Adjustment Minutes - 08/20/2001 Building Contractor License History
Where we started
1) $5000.00 bond
2) No Insurance
3) $50.00 License
New Ordinance Adopted 2/1/00
1) Bonds ranging from $10,000 to $100,000
2) Insurance ranging from $100,000 to $500,000
3) $50.00 License Fee
4) Contractor License required to pull permit on all commercial buildings
5) Homeowner who occupies residential property as permanent
residence may pull permit for that property without a Contractor License
6) Owner of residential rent property must have license to pull permit
Proposed Changes to be discussed
1) Determination of Contractor knowledge by a standard exam, prepared
and administered by a national code agency
2) Owner of Residential one and two family rental property would
be able to pull permit without a license
3) Owner or Maintenance person would be exempt from licensing
requirements on certain types of work
4) Implement reinspection fee of $25.00
Department of Community Development
City of Wichita Falls
MEMORANDUM
August 20, 2001
To: Honorable Mayor and City Council
Members Construction Board of Adjustment and Appeals
From: David A. Clark, Director of Community Development
Rich Shirey, Building and Code Administrator
Subject: Building Code/Contractor Licensing Issues
The following information has been prepared for consideration at the joint City
Council — Construction Board of Adjustment and Appeals meeting on August 28tn
2001, at the Multi Purpose Events Center.
BACKGROUND — CONTRACTOR LICENSING
In response to citizen concerns and after deliberation with the Construction
Specifications Institute, review by the Homebuilder's Association, discussions with
insurance and bonding people and others, the Construction Board of Adjustment
and Appeals (CBAA) recommended the adoption of an ordinance increasing
requirements for contractor licensing. On February 1, 2000, City Council
subsequently adopted Ordinance #11-2000, which prescribed more stringent
requirements for insurance and bonding levels. Ordinance #121-2000 adopted on
December 19, 2000, subsequently acknowledged the residential and commercial
contractors doing projects valued under $50,000 and reduced the insurance and
bonding levels for them. The purpose for these licensing requirements was to
provide additional protection for the general public~an( a source of financing for
completing code compliance work in difficult situations.
During this same time period, staff had given more attention to code compliance
issues, including the requirement for building permits
The value of a contractor's license issued by the City is a basic policy question. A
license is currently required to obtain a building permit, unless someone is a
homeowner occupant. The public often responds to advertising and promotion
that a contractor is "licensed and bonded" and expects that to mean something.
Plumbers and electricians can receive licenses after prescribed training and
subsequent testing, determined by the State or by local regulations. General
contractors, carpenters, residential contractors, etc. previously had a requirement
only to pay $50 and have a $5000 bond to obtain a license, providing no measure
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of competency. The Ordinances adopted in 2000 assured general liability
insurance and may have placed some burden on a bonding company to consider
the record and competence of the company prior to the issuance of the bond.
It is important to note that a homeowner occupant can get a permit for any
work at their residence without licensing requirements, this has always been
the case. if they hire a contractor to do work at their home, which would
require a permit, that contractor must be licensed.
POLICY QUESTION
Three principal policy questions evolve in this realm along with some subsets of
questions:
1. Should the City have licensing requirements (and if so should they be based on
a measure of competency)?
2. Should residential roe v
rya+ p p rty owners be exempt from licensing
requirements to do work on their own properties?
3. Should commercial property owners be exempt from licensing requirements to
do work on their own properties?
RECOMMENDATION
Staff is recommending a policy change, which we believe will satisfy many of the
concerns, but maintain an assurance of quality and safety for local citizens.
The determination of contractor knowledge could be accomplished by
utilization of a standardized exam, prepared and administered by a national
code agency. The examination would be required as a new license is sought
and would be designed to be current with the adopted codes of the City.
Contractors holding current licenses from the City would be exempted from
this exam.
This exemption would be in place as long as the license is kept current.
Bonding levels would remain as they are currently (see attached Ordinance
#121-2000). The required levels for general liability insurance coverage would
remain as they currently exist. An exemption is proposed, however, for owners
of certain rental properties.
It is recommended that an owner of detached one or two family dwellings and
multiple single family dwellings (not more than three stories in height-
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townhouses) that are rental properties be exempt from licensing requirements.
but still subject to the necessity to obtain appropriate permits. The owner of
such property may do construction and repair work to existing structures and to
related accessory structures, but may not build new residential structures
without a license. State law requires licensing for plumbing, mechanical, and
electrical work not covered by the scope of the maintenance allowances stated
below.
• An Owner or Maintenance Person will be exempt from the licensing �' V
requirements as long as the scope of the work is listed below. The work_
that is exempt from the licensing requirement may still require a perm fJand is
the responsibility of the employer or Owner. --
Definitions
Maintenance Work - means repair work and all other work required for the
continued normal performance of any property.
Maintenance Person -An employee, as opposed to an independent
contractor, who performs maintenance work.
Owner- Person or persons who own property and can provide proof of
ownership or legal authority (such as owner's agent).
Electrical
A maintenance person or owner who performs electrical maintenance work
includes the repair, maintenance and replacement of existing electrical
apparatus, existing lighting fixtures and existing plugs and switches.
This does not include changing of electrical service and the installation of new
breaker panels or wiring. Any person that erects, builds, or installs electrical not
already in existence may not be classed as maintenance worker. Such
maintenance person shall not engage in Electrical work for the general public.
Plumbing
A maintenance person or owner who performs plumbing maintenance work
including the repair, maintenance and replacement of existing potable water
piping, existing sanitary waste and vent piping, existing plumbing fixtures and
existing water heaters.
This does not include cutting into fuel gas plumbing systems and the
installation of gas fueled water heaters. A person who erects, builds, or installs
plumbing not already in existence may not be classified as a maintenance
man. Such maintenance person shall not engage in plumbing work for the
general public.
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Air Conditioning and Refrigeration
A maintenance person or owner who performs air conditioning and refrigeration
maintenance work including any work required for the continued normal
performance of an environmental air conditioning system, commercial
refrigeration system or equipment, or process cooling or heating system.
This does not include the installation of a total replacement of the system, any
new system or the installation or repair of boilers or pressure vessels that must
be installed pursuant to the rules and regulations under Chapter 755, health
and Safety Code. Such maintenance person shall not engage in air condition
or refrigeration work for the general public.
Building
A maintenance person or owner who performs construction maintenance work
including the repair, maintenance and replacement of sheet rock, doors, siding,
windows of any existing building.
Ordinance #56-2001 sets guidelines for roofing repair which can be
accomplished without a permit. Work beyond that will require a license.
This does not include any new construction, any structural change of existing
building, or repair of any load bearing or structural element of any building.
Such maintenance person shall not engage in construction work for the general
public.
• Failure to meet Code requirements would be treated as a violation of the City's
Building Codes and prosecuted accordingly.
• A reinspection charge of$25.00 should be established to cover costs of the
second or subsequent inspections when an inspection has been called for and
fails to meet Code requirements. This would encourage contractors to have
sufficient Code knowledge and have work be completed properly when the
initial inspection is requested.
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ORDINANCE NO. 121-2000
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, AMENDING CHAPTER 7, ARTICLE II, SECTION 7-
15 OF THE CODE OF ORDINANCES TO PROVIDE CERTAIN
CHANGES IN REGULATIONS FOR THE LICENSING AND
BONDING OF CONTRACTORS; FINDING AND DETERMINING
THAT THE MEETING AT WHICH THIS ORDINANCE WAS
PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the performance of building activities directly affects the health
and safety of the citizens of Wichita Falls; and
WHEREAS, the licensing and regulation of building contractors will further
promote the health and safety of the citizens of Wichita Falls.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. Chapter 7, Article II, Section 7-15(5) of the Wichita Falls Code
of Ordinances is hereby amended at Section 104.5.1(e) as follows:
°(e) No license shall be required for a building permit to be issued'
to a homeowner who occupies the property as his permanent
residence and acts as the general contractor for the work
performed. Any subcontractor who performs work on said
residence must meet all City and State licensing
requirements. This provision can only be used once every
two years unless the permit is issued on the same residence.
And adding new paragraph (h) to Section 104.5.1 as follows:
(h) No permit shall be issued for commercial construction unless
the applicant is licensed as a general contractor.
And amending Section 104.5.2 Bond and Insurance Requirements to read as
follows
Any person or persons, firm, corporation or association required to be
licensed per Sec. 104.5.1 and seeking to acquire any permit for the type of work
identified below, shall first furnish the building official with a compliance bond in.
the following amounts:
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General Liability
Contractor Bond Insurance
Roofing Contractor $25,000 $100,000
Siding Contractor $25,000 $100,000
Residential $50,000 $300,000
Residential/Commercial Remodel/
Renovation Under $50,000 $25,000 $100,000
General Contractor $100,000 $500,000
Sign Contractor $10,000 $100,000
Paving Contractor $10,000 $100,000
Paving/Street $10,000 $100,000
House Movers $10,000 $1*00,000
Demolition Contractor $10,000 $100,000
Excavation $10,000 $100,000
Irrigators $10,000 $100,000
And amending Definitions by replacing paragraph 2 in its entirety as follows:
2. Residential Contractor: Authorized to do residential home building and
remodeling.
And adding new paragraph 6 to Definitions as follows:
6. General Contractor. Contractor authorized to do commercial
construction and residential construction."
SECTION 2. Chapter 7, Article II, Section 7-15(8) of the Wichita Falls Code
of Ordinances is hereby amended by adding a new paragraph to Section 110,
Violations and Penalties, as follows
'Any Person found doing work without meeting the Licensing, Bond and
Liability Insurance requirements set forth in Sec. 104.5 shall be punished by a fine
not less than five hundred dollars ($500.00)."
SECTION 3. It is hereby officially found and determined that the meeting at
which this ordinance was passed was open to the public as required by law.
PASSED AND APPROVED this the 19th day of December 2000.
ATTEST:
MAYOR
City Clerk
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RELATED ISSUES
Enforcement
Some judgement is required in the enforcement of building codes and staff tries to
be fair, with special attention to life safety issues. If something was built at some
time and an aspect missed or interpreted differently, it does not necessarily follow
that more attention to code requirements will not be made in the future.
It is a policy to urge architects and developers to come in early in the process to
discuss projects, particularly those that might be unusual. This can cover a
multitude of review requirements. We also expect design professionals to be
aware of the Code requirements and will provide communication on any local
updates.
Building Codes
The process of considering the adoption of updated codes is underway. This
includes: the International Building Code 2000, as prepared by the International
Code Council; International Residential Code; the International Plumbing Code;
International Mechanical Code; International Gas Code; Intemational Property
Maintenance Code; the Life Safety Code, as prepared by the National Fire
Protection Association (NFPA) 101. It is important to note that the State of Texas
adopted the International Residential Code during its recently completed session.
It is anticipated that the State will eventually adopt the Plumbing, Mechanical, and
Gas codes. The 1999 National Electric Code is not proposed for any upcoming
change at this time.
Codes do not affect the licensing issues and are a separate topic.
The City has adopted and operates under the Standard Building Code (prepared
by the Southern Building Code Congress International — SBCCI), 1994 Edition and
Appendices A, C, D, G, H; the Standard Existing Buildings Code, 1988 Edition with
1991/1994 Revisions; the Standard Plumbing Code, 1994 Edition and Appendices
E,F,G,J; the Standard Mechanical Code, 1994 edition and Appendix A; and the
National Electrical Code, 1999.
In order for the local community to understand and then hopefully endorse the new
codes, staff has been working through the Council appointed CBAA to review
changes from the existing locally adopted codes. To do this representatives from
the local chapters of the American Institute of Architects (ALA), Construction
Specifications Institute (CSI), North Texas Home Builders Association, and the
North Texas Rental Property (Landlord's) Association have been included in the
discussion process.
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