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HomeMy WebLinkAboutBuilding Review Board - Minutes - 10/26/2000A regular meeting of the Building Review Board was held on Thursday, October 26, 2000, in the Council Chambers of the Fort Collins Municipal Building, at 300 LaPorte Avenue, Ft. Collins. BOARD MEMBERS PRESENT: Charles Fielder, Al Hauck, Susan Kreul-Froseth, Gene Little, Brad Massey, and John McCoy BOARD MEMBERS ABSENT: Thomas Hartmann STAFF MEMBERS PRESENT: Felix Lee, Director of Building & Zoning Delynn Coldiron, staff support to Board AGENDA: 1. ROLL CALL: The meeting was called to order by Chairperson Fielder and roll taken. 2. APPROVAL OF MINUTES: Board Member Hauck made a motion that the minutes from the July 27, 2000 meeting be approved as submitted. Board Member McCoy seconded the motion. The motion passed unanimously. 3. CONTRACTOR APPEAL — DAVID BALTZ, DB/A D & R FRAMING CONTRACTORS: Fielder reviewed the procedures that would be used for the hearing. Felix Lee provided information relative to this appeal. He stated that the appellant was requesting a blanket waiver from the exam requirements for all of the framing subcontractors that he intended to use on his Fort Collins project. Lee mentioned that the appellant's information noted that many of the crews he intends on using are not well versed in English and, while they may be very qualified to do the framing work, they do not have sufficient skill in the English language to pass a written exam. The information also explained that because the UBC book and the exam study guide are not available in Spanish it would be difficult, if not impossible, for the crews to . prepare for the exam. Lee added that, according to the appellant's information, the crews would fulfill all of the remaining licensing requirements, including providing proof of insurance, verification of experience, paying all applicable fees, etc., and would be working under the direct supervision of D & R. Building Review Board October 26, 2000 Page 2 Lee stated that one of the provisions of the proposed licensing changes allows licensed specialty trade contractors to utilize subcontractors who are not licensed provided that the work is continuously supervised by the licensed specialty trade contractor. He added that based on the current schedule, should the proposed revisions be approved by the Board and by City Council, these changes would take affect around the first of the year. As a side note, Lee mentioned that the department had done some work in attempting to meet the needs of individuals whose first language was not English. He stated that staff had, in the past, allowed interpreters to accompany examinees, and that staff is awaiting a Spanish copy of the UBC. Lee noted that tests are not yet available in languages other than English and that attempts to convert this information through translation software had been unsuccessful. Lee added that the City had two candidates who were able to eventually pass their exam with the help of an interpreter and had since obtained framing licenses. Appellant, David Baltz, addressed the Board. He stated that the background information that was presented was a fair assessment of the problem. He added that his company, too, has had difficulty with translation software, particularly with the building code since the associated vocabulary is not readily translated into other languages. Baltz mentioned that this issue is one of the difficulties his company has had in trying to assist ethnic crews with their paperwork. Baltz stated that his company requires an extensive amount of information from each crew, including proof of liability insurance, worker's compensation coverage for employees, and a registered trade name. Baltz stated that his company currently has two supervisors who acquired supervisor certificates from the City. He added that he has a third supervisor, who is bilingual, who is now studying for the exam and intends to attempt to get his certificate sometime in November. Baltz hoped that this person would be instrumental in assisting the ethnic crews in their preparation for exams, completing their paperwork, etc. Appellant mentioned that he was informed, by staff, that interpreters were allowed but, after exploring this option, was not able to find anyone who provided this type of service. He noted that because of the specialized nature of the translation that would be involved in the exam process, someone familiar with the building industry and the building code would be required which begs the question of which person actually ends up taking the exam — the applicant or the interpreter. Baltz concluded by stating that his application was initially submitted in September, which somewhat dated the information in his request since scheduling changes eliminated September's meeting and he was unaware of the proposed licensing changes that were being considered at the time the information was submitted. Based on this, Baltz stated that his request was now for a temporary exam waiver until such time that the proposed licensing changes were adopted. Board Member Hauck asked appellant if he had any jobs pending in Fort Collins that would be starting prior to the first of the year. Appellant confirmed this. Baltz mentioned that his company intends to utilize local crews and that they had been advertising in the Coloradoan. However, according to Baltz, he had had no one seriously inquire about the work. Massey asked if there was a UBC book available in Spanish. Lee answered that according to the ICBO literature, there is a UBC edition in Spanish, which the department has ordered, but has not yet been received. Massey asked about whether the study material was provided as a courtesy. Lee confirmed this. Massey asked appellant if the building plans were drafted in Spanish. Appellant answered that plans are not drafted in Spanish and that often times the information is conveyed through the blueprint pictures themselves. He added that the requirements and other pertinent information are Building Review Board • • October 26, 2000 Page 3 • mostly numerical which are not affected by language barriers. Appellant mentioned that most of the crew members have no trouble reading blueprints and company supervisors assist with the interpretation of framing notes, etc., which are not written in Spanish. Massey stated that the appellant's situation might be better suited for what is being proposed in the licensing revisions where more qualified supervisors are developed versus allowing each framing subcontractor in this case to obtain their own license which would give them the freedom to frame buildings outside of the supervision given to them by appellant's company and without the same level of input helping them translate information into Spanish, etc. Baltz answered that it was not his intent to unleash unqualified framers into the industry and clarified that his request is that these crews be licensed to work under his supervisors on their particular job sites and not necessarily out on someone else's job sites. He suggested that perhaps some kind of registration card could be issued to them, similar to the employee cards, in lieu of an actual license. McCoy asked appellant if his supervisors were employees of D & R. Baltz confirmed this. McCoy asked for clarification on whether the crews the appellant intended to hire would be employees or subcontractors. Baltz answered that they would be subcontractors. McCoy asked if appellant intended on using crews that he had used in other municipalities. Baltz answered that he intends to utilize local crews if at all possible due to the difficulty of getting workers to show up if they are required to travel long distances. He mentioned that in the interim, they would probably have to rely on several out-of-town crews until they had developed a local work force. Baltz reiterated that they have had no response from local contractors for their project. Hauck asked appellant if he understood that under current regulations the crew members could be hired by D & R as direct employees and would be allowed to work on the project. Baltz confirmed that he understood this and stated that projects become economically not viable at the point that the company has to pick up the cost of worker's compensation insurance, etc., for these crews versus hiring the crews as subcontractors where they are responsible for bearing their own costs. Hauck asked for clarification on why, if the subcontractors are providing their own worker's compensation protection, the net costs would not be the same whether they were working as employees or not. Baltz answered that worker's compensation rates are based on accident modifiers and for new contractors, who have no history, their rates are lower as long as they keep their accident rate down compared to what D & R would have to pay based on their history. Hauck stated that he is concerned with the large number of workers in the field that are working as piece workers, cash employees, etc., as a way to avoid the requirements of worker's compensation, since the people who end up losing in this situation, are the unprotected workers who get hurt and are no longer employed and/or employable due to an accident. Hauck added that this is one reason that he would have trouble supporting the appellant's request. Appellant mentioned that it is state law that employees must be covered by worker's compensation insurance. He added that D & R requires all of their subcontractors to have either their own worker's compensation policy or to provide payroll information for their employees so that their workers can be protected under D & R's worker's compensation policy. Massey mentioned that the Board heard and denied a similar case earlier this year where the appellant could not find sufficient workers due to the fact that there was so much work available that the subcontractors were unwilling to go through the process to obtain licenses. He stated that the issue in this case seemed to be whether or not the language barrier for ethnic crews was a legitimate reason for granting appellant's request. Massey noted that the City provides study materials as a courtesy and that all of the contracts, construction drawings, construction • specifications, etc., are written in English. It was his opinion that if someone was expected to read and build from plans that are written in English, then they should be able to pass a test written in English. He added that allowing an interpreter to assist an examinee was sufficient to try to accommodate the language barrier issue. Building Review Board October 26, 2000 Page 4 Kreul-Froseth asked if any efforts had been made to translate the exams into Spanish. Lee answered that staff had tried to do this unsuccessfully with translation software and that no one had been retained to actually translate the tests by hand. Baltz stated that there is no translation for much of the language that is involved in construction in general and, specifically the UBC. He added that it is a valid expectation that the workers who are here be at least functional in English, etc., however, noted that the reality of the situation is that the pace of construction is so high along the Front Range that finding qualified help is difficult. Baltz mentioned that when his company requests a framing inspection, the inspector will be dealing with staff from D & R, not the subcontractor crews who framed the structure. He added that D & R would be responsible for resolving any issues. Massey stated that he thought the City was moving in the right direction with the proposed licensing revisions where specialty contractors would be allowed to utilize non -licensed crews that were under the supervision of a qualified certificate holder. However, he did not feel that this was the issue of appellant's request but rather whether or not ethnic crews should be allowed a blanket exemption from the exam requirements due to the language barrier. He was not supportive of the request. Little stated that one of the issues that was discussed during the similar request that was heard earlier in the year was the fact that the City's requirements did not take into account the realities of labor shortages along the Front Range and prohibited contractors from submitting competitive bids. He added that the proposed licensing revisions attempt to address this issue. Little mentioned that he had no problem authorizing a temporary approval of appellant's request until the time that Council approved the proposed licensing changes based on D & R's demonstrated level of success with utilizing unlicensed framing crews. Massey asked if Little was suggesting temporary approval of actual framing licenses for D & R's subcrews or some kind of supervisory role that D & R would fulfill until the time that the new regulations were approved. Massey reiterated that D & R was requesting a waiver of the exam requirements so that each crew could obtain a license. He was concerned that if the appellant's request was granted, the license would enable these framing crews to work on projects outside of D & R with no interpretation of framing notes, plans, etc. Baltz stated that if the City were to grant these crews identification cards, similar to employee cards, the City would receive notification if the individuals were no longer working for D & R. Little stated that the direction the City is headed with regards to the framing license is that there will no longer be licensing or registration requirements for workers on a job site as long as they are being properly supervised by a qualified certificate holder of the licensed specialty contractor for whom they work. He added that we have to face the reality of the limited labor market that is available to get projects done. Little mentioned that D & R is asking for, on a temporary basis, a situation that fits the direction the City is headed based on the changes being proposed to the licensing ordinance. Massey agreed with the direction that the City was headed, but did not agree that this was what the appellant was requesting. Massey mentioned that should the Board grant some sort of temporary approval, a time limit should be considered in case the licensing revisions were rejected by City Council. Little stated that he thought the Board would have to revisit any waiver that was granted based on the direction the City was headed with the proposed licensing revisions should that happen. Massey stated that many applicants had come before the Board asking for waivers from the exam requirements and the Board had to make determinations on what constituted a valid hardship that would enable the Board to grant such a request. He added that designs and code requirements are very technical and that few untrained people would be able to pick up the UBC book and read and Building Review Board • • October 26, 2000 Page 5 understand it. Massey mentioned that just because someone had done something for 25 years, did not necessarily mean that that person was doing the work right. He noted as an example that the exiting requirements set out in the 1994 code were completely reversed in the 1997 code. The fact that someone had been doing work for 25 years would not make any difference if they had not kept up to date on applicable codes. Hauck mentioned that he would not be supporting appellant's request. It was his opinion that a waiver should be granted when there is an undue hardship placed on an individual. He stated that all of the individuals who are building in Fort Collins are required to meet the same requirements, and, therefore, the hardship noted is not specific to only one contractor. To grant a waiver for one contractor, according to Hauck, in the face of having turned down similar requests for other contractors, is not appropriate. Hauck noted that there are currently two alternatives available for framing contractors and it was his feeling that since the City is in the midst of considering additional alternatives, he would be opposed at this time to granting the requested waiver. Fielder stated that one other issue that had been discussed at the similar request heard earlier by the Board was the fact that two supervisors would be responsible for 100+ workers. He added that there was nothing in place to keep this from happening on this project should the requested waiver be approved. Baltz stated that his company can runup to 300 total crews at various times when they are in full production in the summer and that he has ten supervisors, each of which are responsible for up to 35 crews. He added that D & R has a proven track record of keeping the quality of construction at an appropriate level while operating in this manner. He also mentioned that although many of the workers would not be able to quote egress requirements, this is really not necessary since the requirements are set out on the blueprints. ishad reiterated that at the time he submitted his original request, he was not aware that the City had pending licensing changes. In hindsight, according to Baltz, he felt he should have withdrawn his original information and resubmitted information that more accurately reflected their actual request. He stated that his company was not seeking to get around the City's requirements to have workers licensed. The true issue, according to Baltz, was to help the citizens of Fort Collins in utilizing a very scarce resource, qualified and licensed workers, in a way that does not adversely affect the bottom line cost of homes. Baltz stated that he was more than willing to provide documentation on the experience of the various crews and to pay all of the related licensing fees. He added that that he had no objection to having workers take the exam and was trying to do this in a step by step manner. He hoped that by getting his bilingual supervisor certified that this would help to expedite his company's ability to license other ethnic crews. In the short term, however, Baltz mentioned that the lack of available, qualified labor would cause needless delays on his project which translated directly into added expense for the consumer. Little asked appellant if his supervisors were continuously on site for each job they were responsible for. Baltz answered that this is true for the most part and added that there are occasions when they have to leave the site for various reasons. Little mentioned that continuous supervision is one of the requirements of the proposed licensing revisions. Baltz mentioned that he understood this and thought this was a very reasonable requirement. Kreul-Froseth mentioned that she was having some trouble with the fact that a blanket waiver was being requested for all framing subcontractors that D & R intended to use on their Fort Collins project. She stated that she thought there might be a hardship for ethnic crews who are not well versed in English. However, it was her opinion that because the request was a blanket waiver for all framing subcontractors that this restricted the Board's ability to find a hardship in this case. Baltz stated that he had perhaps used a poor choice of words and that the intent was to simply expedite the process by not having to submit applications and come before the Board on a Building Review Board October 26, 2000 Page 6 monthly basis for approval of exam waivers for additional crews. He mentioned that almost all crews that are available to his company and the construction industry in general are workers who have a limited command of the English language. He added that there are very few Anglo workers in any of the trades at this point and, although much is being done to encourage America's youth to get involved in the construction industry, they are simply not responding. Lee asked for clarification on the number of exam waivers the appellant was requesting. Baltz answered that at this point, based on the contracts that have been awarded to his company, production is very low. He anticipated that his current needs would be three to maybe five exam waivers at the most. Lee asked how Baltz, should the Board approve his request, planned to submit applications, etc., and how the Board would know for sure that a legitimate hardship existed for each applicant. Baltz answered that his company would be more than willing to go through the same application process that any other contractor was required to follow, including submitting the application, project verification forms, etc. He reiterated that the only thing they were requesting was a waiver of the exam requirement due to the language barrier. Baltz was unsure how he would go about proving that the applicant was deficient in English. He stated that he personally knows some of the crew members and is aware of issues regarding the language barrier based on his experience with trying to communicate with them. Lee asked if the prospective applicants would be aware of the fact that any actual employees of their company would have to be covered by worker's compensation and registered with the building department. Baltz confirmed this. Lee pointed out that under the current licensing regulations any workers who were not actual employees would be required to have an appropriate license. Baltz confirmed that he understood this. Lee asked if there were any meeting participants who wished to speak on this issue. Chris O'Brien, owner of Front Range Framing Contractors, addressed the Board. He stated that he had been involved in a lot of discussion regarding the issue of exempt workers over the past several months and that he personally had an ethical problem with this concept. He added that he had come to realize that the City may not be the appropriate entity to regulate the loop hole that currently exists that allows piece meal and other workers to work without any type of worker's compensation or disability coverage since this is a State regulation, and that the next step towards addressing this issue was to meet with state representatives. O'Brien stated that his biggest concern with the issue has always been the life and safety issues involved with unprotected workers. He added that according to state law, a proprietor, partner or owner of a company can exempt themselves from worker's compensation requirements leaving themselves unprotected. According to O'Brien, if one of these workers should fall off a roof and become permanently disabled and is not covered by worker's comp or any other type of disability insurance, it is highly unlikely that the worker's medical bills would be covered or that they would be provided for by the company they had subcontracted with. O'Brien stated that this type of arrangement drives down the cost to the point where framing contractors who hire actual employees, and provide all related worker's compensation insurance and other benefits, cannot compete. O'Brien asked Baltz for clarification on the type of insurance coverage his company provides for workers should they get hurt on the job. Baltz provided clarification. Baltz added that in addition to requiring and/or providing worker's compensation insurance for workers, his company has an extensive safety program and a full time safety officer. Fielder asked appellant whether or not D & R's safety procedures manual was provided in Spanish. Baltz confirmed this. Fielder asked if the safety officer was bilingual. Baltz stated that the safety officer was not bilingual, but that there was at least one person on most crews that was at least somewhat proficient in Spanish. Building Review Board • • October 26, 2000 Page 7 Lee closed by stating that he appreciated appellant's candor and his efforts to protect his workers. He noted that the issue for him as an administrator was the test and that it would be impossible for the City to come up with a test in every possible language. Lee stated that he recognized that Spanish is the most predominate minority language in the country but that the department simply does not currently have the facilities or the wherewithal to provide Spanish tests. Lee also mentioned that he had some concern with the blanket waiver and thought it would be more appropriate for each individual applicant requesting an exam waiver to come before the Board so that a decision could be made on the merits of each individual case. Hauck mentioned that he had no questions as to D & R's qualifications to be a licensed subcontractor. He stated, however, that he did not feel that the request for a blanket exam waiver was appropriate at this time. He made a motion that appellant's request for a blanket exam waiver be denied due to the fact that a hardship was not demonstrated and due to the fact that approval of such a request might give a financial advantage to one contractor over another in the City. Fielder seconded the motion. VOTE: YEAS: McCoy, Fielder, Hauck, Kreul-Froseth, Massey NAYS: Little The motion passed 5-1. 4. CONTRACTOR APPEAL — MICHAEL ROSSI, D/B/A LIFESTRUCTURES, INC.: Lee provided information relative to this appeal. He stated that the appellant was requesting a waiver of the City's exam requirement based on his construction experience. According to Lee, the appellant inadvertently let his license lapse past the 90 day grace period and, in order to reinstate his license, must submit a new application and must meet the related requirements, including testing. Lee added that the appellant last tested with the City in 1990, and that the test covered the 1985 UBC. Lee noted that the appellant kept his license current from 1990 through 1999 and there were no violations or complaints in the file. Shirlene Romero, a representative of LifeStructures, Inc., addressed the Board. She mentioned that Michael was not able to attend today's meeting. Romero added that they became immersed in a process to change their company name from Rossi Homes, Inc. to LifeStructures, Inc.,and were working through a total restructuring of the company, and simply forgot about the license renewal until such time that they were ready to start a project in Fort Collins. Hauck asked for clarification on the last test that had been taken by appellant. Romero provided clarification. Massey asked if appellant had taken any other classes or refresher courses. Romero answered that she was aware that he had attended some training on commercial construction. Massey asked if she had specific examples of the training that was attended. Romero stated that she did not have specific examples. Massey asked for clarification on the last project that was done by Rossi Homes in Fort Collins. Romero answered that the last project would have been the Ridgewood Hills area in December of 1998. Massey asked if this project entailed single family home construction. Romero confirmed this. Building Review Board October 26, 2000 Page 8 Kreul-Froseth asked if appellant currently held a comparable license in any other municipality. Romero answered that appellant is licensed with the City of Loveland. McCoy asked for clarification on the process and requirements for renewing a license. Lee provided clarification. Fielder asked for clarification on whether or not similar cases have been approved by the Board Coldiron confirmed that the Board had approved similar cases. Massey made a motion to approve appellant's request for an exam waiver based on the fact that the appellant had constructed homes under more recent buildings codes than 1985 and based on the fact that he currently held an equivalent license in another municipality. Fielder seconded the motion. Kreul-Froseth asked if there would be a record of this oversight in appellant's file. Fielder answered that a copy of the minutes reflecting the Board's action on this case would be placed in the file. Lee confirmed this. Little asked for clarification on any penalties that would be assessed as part of the reapplication process. Lee stated that no penalties would be assessed; however, the applicant would be required to pay a $75 application fee in addition to the license fee. VOTE: YEAS: McCoy, Little, Fielder, Hauck, Kreul-Froseth, Massey NAYS: The motion passed unanimously. 5. CONTRACTOR HEARING — CHARLES L. WICKSTROM: Lee provided information relative to this appeal. He stated that the appellant had requested an exam waiver based on the appellant's indication that he had 29 years of carpentry experience. According to the appellant's information, he intended on applying for a C-1 supervisor's certificate. Lee mentioned that the project verification forms submitted by the appellant were not sufficient in scope to meet the requirements of the City's C-1 license category. Lee noted that for a C-1 certificate an applicant must document supervision of two complete projects that are at least a C-1 level (new commercial construction up to 2 stories and/or 7,500 square feet) and one project that is at least a D-1 level (new single family homes). According to Lee, the project submitted by the appellant for 1700 Linden Lake Road was sufficient for the D-Framing license; the project for 165 E. Boardwalk was sufficient for the E license (commercial tenant finish) and the project for 914 Pinnacle Place was sufficient for the D-1 license. He added that based on the projects submitted, staff would be unable to approve a C-1 certificate. Appellant, Charles Wickstrom, addressed the Board. He mentioned that he had misread the information and stated that he would be applying for a D-1 or D-2 certificate. He stated that since the time he had submitted his paperwork, he was able to obtain two more project verification forms and asked for permission to submit this information to the Board. Lee stated that the additional references that had been submitted by the appellant were sufficient for the D-Framing license. Building Review Board • • October 26, 2000 Page 9 Fielder asked for clarification on whether five references were required at times when an exam waiver was granted. Lee confirmed that this had been a requirement in the past. Appellant stated that he was informed by staff that he needed to submit three projects. Lee clarified that three completed projects are required when an applicant has taken the required exam. Wickstrom asked for clarification on the additional information that was needed. Lee answered that documentation of five completed projects would be required should the Board grant an exam waiver and that those projects would need to be for complete single family homes if the appellant desired a D-1 certificate. Lee reiterated that the project on Pinnacle would be sufficient for a D-1 certificate. Fielder asked appellant if he would be able to submit documentation on five completed homes. Wickstrom answered that he would be able to do so, but was simply unaware that he needed that number of projects based on the information he had read and his discussions with staff. Fielder stated that the Board had set a precedent to grant exam waivers when an applicant could document an appropriate level of experience. Kreul-Froseth mentioned that the one issue that had come up in the past is when documentation was provided for projects done in the City where the applicant claimed that they built the project, but did not have a valid license to perform the work. There was some confusion on the type of license that the appellant was requesting. Lee reviewed the various types of licenses that are available. Appellant stated that he was interested in . obtaining a framing license. Fielder asked for clarification on the number of references that had been submitted by the appellant that would be sufficient for the framing license. Lee noted that all of the projects submitted would be sufficient for the framing license. Kreul-Froseth stated the she would support the appellant's request for an exam waiver as long as five original project verification forms documenting adequate experience for the framing license were submitted. Massey made a motion to approve appellant's request for an exam waiver contingent on the appellant providing five project verification forms that meet the City's requirements for the framing license. Kreul-Froseth made a friendly amendment to add that the motion is also based on appellant's level of experience in the City of Fort Collins which is indicated by the records to date. Hauck seconded the motion. Little asked if the appellant understood that the motion was approving an exam waiver and the issuance of a framing license once all necessary documentation had been received by staff. Appellant confirmed that he understood this. VOTE: YEAS: McCoy, Little, Fielder, Hauck, Kreul-Froseth, Massey NAYS: The motion passed unanimously. Building Review Board October 26, 2000 Page 10 6. PUBLIC FORUM ON CONTRACTOR LICENSING REVISIONS: Lee introduced three individuals who were present at the meeting who had participated on the task group that reviewed and proposed revisions to the current licensing ordinance. He mentioned that the task group had met several times over the past eight months and that in those meetings there had been a lot of candid discussion and diversity of opinions. Lee noted that the latest public meeting to discuss the proposed licensing revisions was held on August 21, 2000. The meeting, according to Lee, lasted the full three hours that were scheduled and was followed by an impromptu meeting by various meeting participants to further discuss some of the issues. Lee stated that at this meeting there were many diverse opinions expressed with themes ranging from general contractors being entirely responsible for construction projects and requiring licenses for very few, if any, specialty trade contractors, to implementing a master/journeyman/ apprentice program for specialty trade contractors. Lee added that there were also discussions regarding the ethical questions of whether or not the City should take a strong stand on requiring worker's compensation coverage for all workers and assuring that contractors had "legitimate" employees, etc. Lee stated that because there was such a vast diversity of opinions on some of the issues, it was his feeling that, in the interest of moving forward with the process, all parties made some compromises. He mentioned that the task group met one additional time in September, following the public meeting, and was finally able to work through most of the issues and produce a viable document. Lee noted that the current proposal would not please everyone, but thought it did adequately address all of the issues. He added that the proposal included a provision for the use, by licensed specialty trade contractors, of exempt workers, provided that their work was continuously supervised by a qualified supervisor of that specialty trade contractor. Lee mentioned that one of the task groups members had pointed out a glitch in the prior language related to supervising the work of the exempt workers since, by state law definition, this would have made these workers employees. According to Lee, he met with the City attorney and was able to come up with some alternative language that meets the letter of the law and still requires that a supervisor be continuously on -site to ensure that the end product meets all plans, specifications, and related codes. Next, Lee gave Board Members a brief presentation regarding the licensing revision process. He stated that the purpose of contractor licensing was to enhance public safety through minimum qualifications and accountability for contractors and specialty trades performing work in the City. Lee noted that contractor licensing in Fort Collins dated back to 1955. He added that significant changes were made to the licensing ordinance in 1981, 1992 and 1999 (implementation of the framing license). Lee then reviewed the proposed revisions, including: more explicit definition of work and trade exemptions; expanded scope of work for some of the license categories; addition of specialty contractor trades (wood framing, cast -in place concrete); allowance of exempt specialty trade workers; implementation of a biannual licensing process; standardization of fees for all license categories; addition of a requirement for re-examination or a continuing education class for certificate holders when new codes had been adopted; addition of a requirement that all specialty trade contractors have qualified supervisors on -site; addition of a requirement that specialty trade contractors submit documentation of experience, including proof of adequate time spent practicing their specific trade; addition of violations for employing workers who are not employees and/or do not meet the definition of an allowed exempt specialty trade worker, for excessive and/or repeated failed inspections (authorizes building official to immediately suspend the license), and for working without the required contractor license (authorizes a $200 penalty Building Review Board • October 26, 2000 Page 11 assessment); and clarification of the requirement that all workers, including exempt specialty trade workers, must be covered by liability insurance. Lee mentioned that the proposed revisions are set to go before City Council for first reading on November 21, 2000 and for second reading in December. He added that the next opportunity for public comment will be at the Affordable Housing Board meeting scheduled for 4:00 p.m. on November 2, 2000, at 281 N. College Avenue. Lee expressed his appreciation to all of the task group members for all of the time, effort and patience that went into creating the proposed ordinance. Little mentioned that the members of the task force went through considerable exercises to try to come up with a reasonable solution for all of the issues that were addressed. He stated that in no way was this a process to try to come up with ways to generate more revenue for the City and/or make things more difficult for contractors. He added that the process was a legitimate response to being fair to all trades, across the board, as it affected the health and safety of the community. He applauded the members of the task force that were in attendance at the meeting, as well as those that were not in attendance, for their willingness to work through the issues and reaching compromises that helped assure that all issues were being addressed. Little thanked staff for all of their efforts to continue to push the task force forward and for being receptive and patient with the process. Little stated that although the final document may not be the panacea or final result, it was a legitimate attempt to try to create equity across the board for contractors and protect the community. • Hauck thanked the task force for their efforts and mentioned that they had done an outstanding job in dealing with some very difficult issues. He asked for clarification on the exempt specialty trade worker clause. Lee provided clarification. Hauck asked if a ratio of supervisors to workers had been further defined and stated that his concern was that in housing projects where there is one supervisor and perhaps 300 homes being constructed, there is the potential that specialty trade work could be proceeding concurrently in a number of these homes, which basically minimizes the amount of supervision. Lee answered that he had given this issue a great deal of thought but had not yet developed anything specific. He stated that he planned to do this as part of the policies and procedures that are allowed for under the terms of the ordinance, unless directed otherwise. Fielder suggested that perhaps supervision was more a permitting issue and that when a contractor applied for a permit, based on the square footage and number of units, etc., they would be required to have X number of supervisors on the project. It was his opinion that doing it this way would assure that the level of supervision required would be determined on a case by case basis versus less specific language in the licensing ordinance. Lee answered that he intended to put a written policy into place to address this issue. He added that he is looking at the state model for electricians and may use this as a basis for the policy he develops. Lee confirmed that it is his intent to require more qualified supervisor to be on site. Massey stated that he thought this issue might be covered with the language that requires "continuous" supervision, but was concerned that the Board will continue to have the same problems that currently occur with plumbers and electricians where they state that their supervisor had to run an errand, left for lunch, etc. Massey asked if, when an inspector showed up on a job site and there was no supervisor, this would be considered a violation. Lee stated that generally speaking he thought this should be the case. He noted that a determination would have to be made on whether or not the supervisor was on site, perhaps at a different address, but available, and if this met the requirements of the supervision policy that had been put in place. Building Review Board October 26, 2000 Page 12 He added that if the supervisor was completely off site that that would definitely constitute a violation. He clarified that this issue only deals with the specialty trade contractors at this point. Fielder asked for clarification on whether an inspector would be able to immediately suspend a license, or if that right was reserved for the building official. Lee confirmed that this would be the decision of the building official, not the inspector. Lee added that the violation would have to be egregious, repeated, or very severe in nature before he would exercise this option. Massey asked for clarification on the number of years of experience that will now be required for the specialty trade contractors. Lee stated that currently there are no time requirements for any of the contractors, except when a general contractor is requesting an exam waiver. He noted that specialty trade contractors are focused on one trade and that building five full buildings is different than installing five furnaces. So, the task group felt that there should be some training time required prior to issuing a specialty trade license, as well as any required tests. Lee mentioned that the actual number of years chosen was somewhat arbitrary. The task group determined that for those trades where health and safety were an issue, i.e., framing, HVAC, etc., more training time should be required, and three years was suggested. For those specialty trades where health and safety were not so much an issue, it was determined that a year of training time would be sufficient. Massey asked whether the time experience was in addition to the testing requirements. Lee confirmed this. Massey asked for clarification on the construction that homeowners and/or building owners were allowed to do. Lee answered that the ordinance language had been revised to be somewhat more restrictive for building owners, however that homeowners were still allowed to do any work on their own personal residence. Lee noted that the revised ordinance proposes to limit homeowners to building one new personal residence every 24 months, instead of allowing them to build a new personal residence every 12 months. Lee next reviewed the types of work and trades that are not regulated under the licensing ordinance. Hauck asked for clarification on whether the specialty trade contractors would be required to carry worker's compensation insurance on the exempt specialty trade workers, as well as liability insurance. Lee mentioned that he was unaware, until hearing earlier testimony, that a company was able to carry worker's compensation insurance on workers who were not actual employees. Lee noted that this issue had been addressed many times by the task group. . Gino Campania, a member of the license revision task group, stated that it was his understanding that language was included to assure that all contractors would have to meet the same insurance requirements. Lee directed everyone to this specific language shown on the last page and noted that the language really relates only to public liability insurance, and makes no mention of worker's compensation insurance. O'Brien stated that it was his understanding that worker's compensation insurance only applies to actual employees. He was unaware of a disability or other policies that exist that would cover workers who were injured and were not an employee. O'Brien noted that he believed that the issue of workers who are not covered by any kind of disability and/or worker's compensation insurance was a huge problem in the state. Campana reiterated that it was his understanding that the intent of the task group was to ensure that the same rules and guidelines for insurance would be required of the specialty trade contractors as are required for general contractors. He suggested that the language should be clarified as needed so that it accurately reflected the intent of the task group. Building Review Board • • October 26, 2000 Page 13 . Hauck mentioned that based on his understanding of earlier comments that state regulations allow a 10% owner of a company to exempt themselves from worker's compensation coverage, he had some major concerns that a number of the crews who will take advantage of the proposed exempt specialty trade worker provision will set themselves up in this fashion and opt out of worker's compensation coverage. Lee stated that as he understands state law, if a worker is eligible for worker's compensation, then they are considered employees. He added that these workers would not meet the definition of an exempt specialty trade worker. Lee noted, however, that any exempt specialty trade crew that had actual employees, would be required to cover their employees by worker's compensation just as any other contractor is required to do. Hauck asked for clarification on how D & R Framing was able to cover their subcontractor's employees under D & R's worker's compensation policy. Baltz provided clarification and mentioned that there is a provision where you can cover workers who are not actual employees of a company. He added that the state does not force you to cover these workers, but does not prohibit you from doing this should you elect to do so. O'Brien stated that there are very few contractors who would be willing to cover workers who were not actual employees under their worker's compensation policies. It was his opinion that the City was somewhat perpetuating the problem of uncovered workers by allowing exempt workers without requiring that they be covered by worker's compensation policies in one form or another. Hauck stated that he did not know if the licensing regulations was the appropriate venue for addressing this issue; however, he agreed that the industry has developed a subcontractor to subcontractor relationship in an effort to avoid worker's compensation coverage. He mentioned that he was personally appalled by this and felt that at some point along the way the issue needed to be addressed. Campania mentioned that the provision for exempt workers that has been proposed does not allow for one exempt crew to subcontract to another. Each exempt crew is required to subcontract directly with the licensed specialty trade contractor. Lee confirmed this. Hauck responded that a single licensed specialty trade contractor could hire multiple exempt crews, each one which could have multiple workers, who may or may not have opted out of worker's compensation coverage. Campania mentioned that a general contractor can do that right now so no advantage is being given to the specialty trade contractors by allowing this provision. Hauck stated that one of the outcomes of the current licensing ordinance is that it forces contractors either to become licensed individually, or to be considered actual employees of a company whereby they are covered by a worker's compensation policy. Mickie McNeal, from Vargas Construction, addressed the Board. She reiterated the concern of ethnic crews not being able to pass a test given only in English. She asked whether someone else in the company could take the test, or if the test could be given to a person orally so that they could respond. Lee stated that the revisions propose that all contractors will have to have at least one qualified supervisor for the company who would be required to pass any applicable exam. Lee noted that the person would not necessarily have to be the owner, but would have to be an employee. Lee clarified that should the revision be adopted by City Council, supervision will become a crucial issue and there will have to a supervisor on site at all times. McNeal mentioned • that they have four crews and asked if that would mean that they would need four supervisors. Lee confirmed this. McNeal asked if there would be any exam waivers granted based on experience and asked if tests could be given orally. Lee answered that interpreters are allowed to assist examinees with an exam. McNeal asked if someone else would be able to write the Building Review Board October 26, 2000 Page 14 answers for the examinee. Lee was unsure on that. McNeal stated that she believed that this would be a request of many contractors based on the language barriers that exist due to the number of ethnic workers in the industry. Lee stated that the City would attempt to accommodate legitimate obstacles such as language barriers, learning disabilities, etc. Lee noted that the applicant always has the option of going before the Building Review Board to request exam waivers based on experience or other relevant factors. Lee asked Baltz for further clarification on the worker's compensation coverage they provide to employees of their subcontractors. Baltz provided clarification. Lee stated that he believed that the proposed ordinance, as written, is in line with what is being done by D & R, since the state requires employees to be covered by worker's comp. Although, according to Lee, the City does not enforce state law, worker's compensation coverage for employees is a state law requirement. Little asked Baltz if the State of Colorado was the underwriter for his insurance policy. Baltz stated that his company has used Colorado Compensation Authority, Pinnacle Assurance and Liberty Mutual. His company typically researches a variety of companies in an attempt to get the best rates possible. Baltz added that they have never been denied coverage on any claim or had any of the companies refuse to the honor the extension that has been given to cover employees of subcontractors. Massey asked if the intent of the task group was to get all workers on a job site covered by worker's compensation insurance. Lee stated that he did not believe that this was the overall intent of the entire group. Lee mentioned that the ordinance, as currently written, does not preclude this from happening, and does require that contractors abide by state law. Massey asked if all members were aware that a loop hole continues to remain where certain workers are allowed to opt out of worker's compensation coverage. O'Brien stated that this is something that has bothered him throughout the process and, in the interest of consensus, he chose to put this issue aside. From an ethical standpoint, O'Brien mentioned that the City could set the standard above what the State requires, but this item did not receive the support from other task group members. Massey stated that the cheapest option for a licensed specialty contractor would be to hire a group of workers who would be considered as at least 10% owners and who would most likely opt out of worker's compensation coverage. It was Massey's opinion that this would be a highly likely scenario. O'Brien asked for clarification on how site workers would be identified, etc. Lee stated that staff would not get involved in this unless there were specific problems that would merit an investigation. Campania reiterated that as part of some of the compromises that had been made, the building official was given some additional tools to regulate problem contractors who continually fail inspections, etc. Lee stated that it is good to reiterate this and, in the case of a contractor who used workers that were not either employees or legitimate exempt workers, the job could be stopped, license suspended, etc. Lee noted that there are now some pretty severe repercussions for misconduct. O'Brien asked for clarification on whether the exempt crews would be required to submit insurance or other paperwork to the City. Lee stated that at this point, the only time information related to the exempt crews would be submitted to the City would be if staff requested it for some reason. Little asked if Lee wanted the Board to make a motion. Lee answered that if the Board were prepared to make a recommendation to City Council, that would keep the process moving Building Review Board • October 26, 2000 Page 15 • forward. Otherwise, Lee suggested, that a special meeting might be necessary so that a recommendation could be obtained from the Board prior to the Council Meeting scheduled for November 21. Little stated that he thought it was time to move forward with this. He made a motion that the revisions to the contractor licensing ordinance that were presented to the Building Review Board today, be approved and submitted to City Council for review and adoption. Fielder seconded the motion. Kreul-Froseth mentioned the she received and read through the minutes from the task group and she commended the group for the time and energy that went into preparing this document. She stated that she was seeing the final document for the first time today and was not sure that she had had enough time to really look through it. She stated that she had no specific questions, but was not sure that she felt totally comfortable with approving it since she had not had time to read it completely. Little stated that he did not want to rush the Board's decision on this. He added that he had been involved in the process from the beginning so he felt very comfortable with the document. He thought it was important that each of the Board Members take an appropriate amount of time to digest the information, make comments, etc. He added that he had no problem with reserving his motion for a later date, with the exception that time is somewhat of an essence due to the fact that the issue is scheduled to go before Council on November 21. Little asked for clarification on the next time the Board was scheduled to meet. Lee stated that due to the Thanksgiving Holiday, the Board meeting would be scheduled for November 16" so this meeting would occur prior to the • deadline for getting information to Council. Little withdrew his motion. Lee reiterated that the next time available for public comment on this issue was at the Affordable Housing Board meeting scheduled for Thursday, November 2, at 4:00 p.m., at 281 N. College Avenue. There was further discussion on whether or not the City should require specialty contractors to have paperwork on file for any exempt crews they are utilizing that shows they have appropriate insurance, have filed for a trade name, waivers, etc. OTHER BUSINESS: A. Election of Officers This item was rescheduled to the November meeting. Meeting was adjourned at 4:15 p.m. •