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Item 4GM E M O R A N D U M July 27, 2009 To: Shana Yelverton, City Manager From: Ken Baker, AICP, Director of Planning and Development Services Subject: ORDINANCE NO 961, Amending Chapter 5, Article IV "Contractor Registration Ordinance" of the Southlake City Code Action Requested: Consider first-reading approval of the proposed Ordinance No. 961 Background Information: Senate Bill 1354 passed in the latest session prohibits cities from charging Plumbing Contractors a registration fee. This necessitates changing the contractor Registration Ordinance. In consideration of the purpose of registration in light of the state and local responsibilities as outlined in the various laws we have determined our time and efforts are best spent dealing with the contractors not regulated by the state on an equal basis regardless of the specific trade. We can use the state listing to determine qualifications in the trade. We will continue registrations for non state regulated contractors. Financial Considerations: Some services previously provided for contractors have been deleted such as mailings and training sessions. Staff is proposing to review the permit fee schedule and will make up the revenue lost with the proposed changes coming in September. Citizen Input/ Board Review: None Legal Review: This ordinance has been submitted to the City Attorney. Alternatives: 1)Approve as presented. 2) Approve with modification. 3)Deny the request. Supporting Documents: The proposed ordinance amendment is attached. Staff Recommendation: Approve the ordinance as proposed. L:\Meetings\City Council\Archives\2009\2009-08-04\Packets\Item 4G.doc Page 1 ORDINANCE NO. 961 AN ORDINANCE AMENDING SOUTHLAKE CITY CODE, CHAPTER 5 ARTICLE IV, THE CONTRACTOR REGISTRATION REGULATIONS; PROVIDING A PENALTY CLAUSE; PROVIDING A CUMULATIVE CLAUSE; PROVIDING A SEVERIBILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN PAMPHLET FORM; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS the City of Southlake Texas the City is a home rule city acting under its power adopted by the electorate pursuant to Article XI Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS the City Council has determined that in order to protect its citizens and to assure that construction work in the City is performed to standards mandated by the City codes, it is necessary to require registration of all construction contractors; and WHEREAS the City Council has determined that the mandatory registration of construction contractors within the City will more effectively maintain lines of communication between City officials and the contractors and will allow the City officials an avenue to keep the contractors updated on changes in its laws and regulations applicable to construction work within the City; and WHEREAS the City Council deems that it is necessary to adopt these regulations to promote the health safety and welfare of the citizens of the City and the public in general. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE TEXAS Section 1. That Article IV of Chapter 5 of the Southlake City Code is amended to read as follows: ARTICLE IV. CONTRACTORS DIVISION 1. GENERALLY Secs. 5-106--5-120. Reserved. DIVISION 2. REGISTRATION L:\Meetings\City Council\Archives\2009\2009-08-04\Packets\Item 4G.doc Page 2 Subdivision I. In General Sec. 5-121. Title of article. This article shall be known as the contractor's registration ordinance. Sec. 5-122. Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: General Contractor means a person, firm, association, or corporation that performs or contracts work for hire within the city for which a permit is required including, but not limited to, work that is required or useful for the construction, repair, alteration, removal, or demolition of a structure, sign, street or of an appurtenance that connects to the city's water or sewer service. Trade contractor means a contractor or subcontractor who is licensed by the state including the following:  Electrical contractor means a contractor who performs work as defined in chapter 1305 of the Texas Occupations Code.  Irrigation contractor means a contractor who performs work as defined in chapter 1903 of the Texas Occupations Code.  Mechanical contractor means an air conditioning and refrigeration contractor as defined in chapter 1302 of the Texas Occupations Code.  Plumbing contractor means a contractor who performs work as defined in chapter 1301 of the Texas Occupations Code.  Water Well Driller and Pump Installer means a contractor who performs work as defined in chapter 1901 of the Texas Occupations Code. Cross References: Definitions generally, § 1-2. Secs. 5-123--5-140. Reserved. Subdivision II. Registration Sec. 5-141. Required; application form and contents. All general contractors shall register with the city building official before obtaining a permit to perform work within the city. This registration shall be valid for one year from the date of issuance. Application for registration and renewal must be on a form provided by the building official and contain the following information: (1) Full name of person seeking registration and any assumed name under which the person does business; (2) Permanent business or residential address; L:\Meetings\City Council\Archives\2009\2009-08-04\Packets\Item 4G.doc Page 3 (3) Business and residential telephone numbers; (4) Other information determined by the building official to be necessary or helpful to identify or locate the contractor. Sec. 5-142. Exceptions: A person exempt from contractor registration hereunder is not exempt from permit requirements. The following are not required to register as contractors: (1) A homeowner performing work on his or her homesteaded property. (2) A business proprietor requesting a permit for work not involving licensed trades at his place of business. Sec. 5-143. Fee. General contractors shall pay an annual registration fee. The fee shall be established by resolution of the city council, and must be paid, in full, in advance of registration. Sec. 5-144. Issuance of permits. The building official shall examine or cause to be examined applications for permits and amendments thereto within a reasonable time after filing. If the application or the construction documents do not conform to the requirements of pertinent laws, the building official shall reject such application in writing, stating the reasons. If the building official is satisfied that the proposed work conforms to the requirements of the code, laws and applicable ordinances, the building official shall issue a permit as soon as practicable. Such permit shall not be issued to a general contractor not currently registered with the city nor to a trade contractor not verified as currently valid on the state internet web site or by other means. Sec. 5-145. Suspension--Reasons. A contractor's registration may be suspended by the building official for any of the following reasons: (1) The contractor fails to request and obtain a final inspection approval prior to the expiration of the permit. (2) The contractor allows use or occupancy of the structure for which a permit was obtained without first obtaining the required authorization from the city. (3) The contractor has been found by the building official to have been grossly negligent in the performance of his work. Sec. 5-146. Same--Appeal; actions. A contractor whose registration has been suspended may appeal to the Building Board of Appeals (the board). In the case of an appeal to the Board, the action of the building official shall stand until the case is heard. After hearing the case, the board may take the following action: (1) Affirm the suspension; (2) Overrule the suspension and reinstate the registration of the contractor; (3) Affirm the suspension, but waive any or all of the reinstatement requirements set forth in section 5-147; or (4) Affirm the suspension and require conditions for reinstatement in addition to those set forth in section 5-147 including, but not limited to, prohibiting reinstatement for up to six months. L:\Meetings\City Council\Archives\2009\2009-08-04\Packets\Item 4G.doc Page 4 Sec. 5-147. Reinstatement. A contractor whose registration has been suspended may reapply for registration if: (1) All circumstances leading to the suspension have been corrected; (2) The contractor reapplies for registration; (3) The registration fee is paid; and (4) Any additional conditions set by the board pursuant to section 5-146 have been met. Secs. 5-148--5-164. Reserved. Section 2. Any person, firm or corporation who violates, disobeys, omits. neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Two Thousand Dollars ($ 2,000.00) for all violations involving zoning, fire safety or public health and sanitation, including dumping or refuse, and shall be fined not more than five hundred dollars ($500) for all other violations of this ordinance. Each day that a violation is permitted to exist shall constitute a separate offense. Section 3. This ordinance shall be cumulative of all provisions of ordinances of the City of Southlake, Texas, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. Section 4. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs, and sections of this ordinance are severable, and if any phrase, clause sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. Section 5. The City Secretary of the City of Southlake is hereby authorized to publish this ordinance in book or pamphlet form for general distribution among the public, and the operative provisions of this ordinance as so published shall be admissible in evidence in all courts without further proof than the production thereof. Section 6. The CitySecretary of the City of Southlake is hereby directed to publish in the official newspaper of the City of Southlake, the caption, penalty clause, publication clause and effective date of this ordinance one time within ten days after passage of this ordinance, as required by Section 3.13 of the Charter of the City of Southlake. Section 7. All rights and remedies of the City of Southlake are expressly saved as to any and all violations of the provisions of any ordinances affecting the regulation and control of the use, occupancy, maintenance, repair, design, construction and quality of materials for buildings and structures within the City which have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such L:\Meetings\City Council\Archives\2009\2009-08-04\Packets\Item 4G.doc Page 5 ordinances, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. Section 8. This ordinance shall be in full force and effect from and after its passage and publication as required by law and not prior to September 1, 2009 and it is so ordained. PASSED AND APPROVED ON FIRST READING THIS DAY OF , 2009. ______________________________ MAYOR ATTEST:_____________________ CITY SECRETARY PASSED AND APPROVED ON SECOND READING THIS DAY OF , 2009 ______________________________ MAYOR ATTEST:______________________ CITY SECRETARY APPROVED AS TO FORM AND LEGALITY: _________________________ City Attorney Date: ____________________ EFFECTIVE: Date: L:\Meetings\City Council\Archives\2009\2009-08-04\Packets\Item 4G.doc Page 6