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CR 91-272 Contractor LicensesDecember 12, 1991 Proposed Action Staff recommends that the Council approve the following motion: Move that the Hopkins City Council adopt for first reading Ordinance #91 -702. This action will amend Section 440 of the Hopkins City Code regarding the licensing of contractors. Overview The Minnesota Legislature adopted a law in 1991 that requires residential contractors to be licensed by the State of Minnesota. Staff is recommending that Section 440 of the Hopkins City Code regarding the licensing of contractors be amended to exempt contractors who are licensed by the state. Staff is also recommending that Section 440 be amended to allow the owners of commercial structures to do some work on their own buildings without obtaining a contractor's license. Finally, staff is recommending that the Council authorize the collection of a surcharge on building permits to cover the of verifying licenses. Primary Issues to Consider What changes are being made to Secti Supporting Information o Ordinance #91 -702 C '/' y Clerk Ja ' s A. Genellie CONTRACTOR LICENSES Council Report 91 -272 Council Report #91 -272 Page Two Primary Issues to Consider o What changes are being made to Section 440? 1) Contractors who are licensed by the State would be exempt from being licensed by the City. Subd. 3. State license exemption. Contractors required to be licensed by the State of Minnesota are exempt from obtaining a city license under this section to perform work for which they are licensed by the State of Minnesota. A state licensed contractor must provide a copy of the state license to the City in order to obtain a permit from the City building inspector. This section will ensure that all contractors have either a state or City license. 2) Owners of commercial or a contractor's license building, the work did mechanical systems, and than $2,000.00. industrial buildings would not need if they were working on their own not involve plumbing, electrical or the total cost of the work was less Subd. 5. Owner rights and responsibility. An owner is not required to obtain a license under this section to personally perform any work in connection with the owner's residence or other dwelling and appurtenances including the right of the owner to engage the services of any aids or helpers ; -brit- the- -1 f-eee- -must -be -paid; - - The- work- -m us-t- - be -in. - eemplianee with- -the -- various - -t rl-c i- ng- - a-nd - -o- the-r- - -r-e- lev-ant - codee, - - and - - tie - - ewner - -is respensible- and - liable - €er- any - lasses- -er- liabilities- whie t -may- $x3.se- -er- -be eai sed- -by- -stele - eonstruction- -or - by- -the - violation- -of- - any- - requir- ement-s- - sunder applieable - statutes- and - provisions -e €- this -eerie: An owner of a commercial or industrial property is not required to obtain a contractor's license under this section in order to personally perform any general construction work not involving plumbing, mechanical, gas fitting. electrical, or fire suppression systems, when such work is in connection with the owner's building or appurtenance, including the right of the owner to engage the services of any aids or helpers. if the value of construction is less than $2,000.00 for any one project or $5.000.00 for any single year. The work must be in compliance with all relevant codes and the required permits must be obtained. The owner is responsible and liable for any losses or liabilities which may arise or be caused by such construction or by the violation of any requirements under applicable statutes and provisions of this code. Council Report #91 -272 Page Three 3) Authorize the charging of a surcharge on all permits to cover the costs of checking licenses. The surcharge would be $5.00. This charge is necessary because of the staff time necessary to verify whether a contractor has a license. Subd. 6. Building Permit Surcharge. A surcharge shall be placed on each building permit to cover the cost of license verification. The amount of the, surchar•e shall be established b resolution of the Cit Council. Alternatives: 1) Adopt Ordinance #91 -702 for first reading. This will begin the process of amending Section 440. Do not adopt Ordinance #91 -702 for first reading. This will result in no changes to the current ordinance. State licensed contractors would still be exempt from having to obtain a city license. 3) Instruct staff to make changes to the proposed ordinance. BE IT ORDAINED SECTION 1. subdivision to HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 91 -702 AN ORDINANCE AMENDING SECTION 440 OF THE HOPKINS CITY CODE IN REGARD TO CONTRACTORS LICENSES by the Council of the City of Hopkins as follows: That Section 440 be amended by adding a new Section 440.01 to read as follows: Subd. 3. State license exemption. Contractors required to be licensed by the State of Minnesota are exempt from obtaining a city license under this section to perform work for which they are licensed by the State of Minnesota. A state licensed contractor must provide a copy of the state license to the City in order to obtain a permit from the City building inspector. SECTION 2. That Section 440 be amended by amending Section 440.01, Subd. 5 to read as follows: Subd. 5. Owner rights and responsibility. An owner is not required to obtain a license under this section to personally perform any work in connection with the owner's residence or other dwelling and appurtenances including the right of the owner to engage the services of any aids or helpers ; - brut- the- �eq&ri -red f-eee- -must -be -paid:- - The- o 4 -mats -be -in. - eemp1ianee with- -the - - various - - ancb - at e-r- - - codes - and- - the- - ew ier- - is resp ens ib1e- end - 1iabl -e• - €er- $ny- -1-o-ases- -er- iab41ttiee -which -may - arise- -car- -be eaused.- by- -suer- eonstTue - on -or - by- -t-he - viola ion- -o-€ - any- - r- equ.ir rt-s- -under applieable- statutes- an.d- provisions -ef- this -eede- An owner of a commercial or industrial property is not required to obtain a contractor's license under this section in order to personally perform any general construction work not involving plumbing. mechanical, gas fitting, electrical, or fire suppression systems. when such work is in connection with the owner's building or appurtenance, including the right of the owner to engage the services of any aids or helpers. if the value of construction is less than $2,000.00 for any one project or $5.000.00 for any single year. The work must be in compliance with all relevant codes and the required permits must be obtained. The owner is responsible and liable for any losses or liabilities which may arise or be caused by such construction or by the violation of any requirements under applicable statutes and provisions of this code. SECTION 3. That Section 440 be amended by amending Section 440.01, Subd. 6 to read as follows: Subd. 6. Building Permit Surcharge. A surcharge shall be placed on each building permit to cover the cost of license verification. The amount of the surcharge shall be established by resolution of the City Council. First Reading: Second Reading: Date of Publication: December 17, 1991 January 7, 1992 January 15, 1992 Date Ordinance Takes Effect: February 4, 1992 Attest: City Clerk Mayor L Date of Change Order: November 22, 1991 Description of Change 1. Reposition the portion of the HDPE liner in the anchor trench to that shown on the attached 81/2" x 11" drawing. 2. Compact the Fine Filter Aggregate to 85% Standard Proctor Density. The 6 -inch layer of topsoil shall be installed uncompacted. 3. Salvage the soil materials and restore disturbed areas with seed and mulch as specified. 4. Perform this work along the entire length of the HDPE liner. Justification This change is intended to eliminate a possible means for methane gas migration around the HDPE liner. Pricing Data Attached is Serial Letter No. 39 from the Contractor with the proposed unit price of $13.40 per foot. The Engineer has reviewed this price and determined it is reasonable. The amount of this additional work was measured to be - 1496 feet, resulting in an amount of $26,746.40. 199 G1 12 /!0/9 t Attachments to this Supplement 1. Drawing -,1 page. SUPPLEMENT to CHANGE ORDER NO. 9 for 7TH STREET SOUTH LANDFILL GAS REMEDIATION CITY OF HOPKINS PROJECT NO. 90 -18 RCM PROJECT NO. 12079 Letter from Contractor 1 page. Page 1 of 1 1 Budget Projections: Expenditures: Operating $ Maintenance /Alleys Street Reconstruction Knollwood Debt (P &I) Depreciation TOTAL* 1992 69,000 $ 62,000 91,000 249,500 72,000 543,500 $ *Plus interest at 6% on annual negative Revenues: Current Rate 2.00 Cash Balances: End 1992 End 1993 End 1994 End 1995 End 1996 1992 - 2.65 $ (200,300) (163,800) (126,100) (87,200) (47,900) Five Year Interest Expense at 6 $ 46,000 1992 Budget Storm Sewer Fund 1993 250,000 75,000 cash balances Dependent on rate options below Rate Options (1) Notes: (1) Rate is per single family home or per one third REF 1994 65,000 $ 66,000 $ 62,000 _ 62,000 35,000 35,000 250,000 75,000 B 1992 - 2.25 1993 - 2.50 1994 2.75 1995 - 3.00 $ (272,400) (264,000) (214, 900) (76,000) 69,300 $ 65,000 1995 1996 67,000 $ 69,000 62,000 62,000 35,000 35,000 250,000 250,000 77,000 77,000 487,000 $ 488,000 $ 491,000 $ 493,000 1992 . - 2.50 1993 - 2.75 1995 - 3.00 (225,600) (173,200) (118,700) 26,000 175,800 $ 44,000 TOTAL MONTHLY UTILITY BILL Proposed Monthly Usage 1991 Rates 1992 Rates Increase 2,000 26.82 28.32 1.50 4,000 32.52 35.02 2.50 5,000 35.37 38.37 3.00 8,000 43.92 48.42 4.50 10,000 49.62 55.12 5.50 15,000 63.87 71.87 8.00 20,000 78.12 88.62 10.50 1991 1992 Rates: Refuse + Tax 19.12 19.12 Water 0.85/1000 gal 0.85 Sanitary Sewer 2.00/1000 gal 2.50 Storm Sewer 2.00 2.50 ATTEST: James A. Genellie, City Clerk CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 91 -155 STORM SEWER UTILITY RATE INCREASE WHEREAS, the City of Hopkins has established Ordinance No. 89 -640, City Code section 720 - Storm Sewer Drainage Utility effective September 5, 1989; and WHEREAS, the ordinance authorizes storm sewer utility drainage charge rates to be set forth by council resolution; NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby sets the service charge for the Storm Sewer Utility at the following rates to be paid to the City upon billing therefore as follows: Storm Charge Water REF Rate Drainage *Class Land Uses Rate Per REF Rate /Month 1 Single family & duplex residential 1/3 $7.50 $ 2.50 /unit 2 Multiple family residential 3 $7.50 22.50 /acre 3 Commercial institutional uses 5 $7.50 37.50 /acre 4 Public and private schools 1.25 $7.50 9.38 /acre 5 Churches 3 $7.50 22.50 /acre 6 Parks 0.25 $7.50 1.88 /acre 7 Golf courses 0.25 $7.50 1.88 /acre 8 Vacant improved and unimproved 0 $7.50 0 9 Industrial 5 $7.50 37.50 /acre *as established by Ordinance code section 720.05 The monthly storm water drainage fee is determined by multiplying the storm water drainage rate by the parcel's acreage for all classes except single family and duplex residential (Class 1). Single family and duplex residential is determined by the storm water drainage unit rate for each Class 1 parcel regardless of acreage. EFFECTIVE DATE: The provisions of this resolution shall take effect and be in force in connection with all billings rendered hereunder from and after March 1, 1992. Adopted by the City Council of the City of Hopkins this 17th day of December, 1991. By Nelson W. Berg, Mayor