Construction Resources Committee Meeting Minutes of March 14, 2018 A meeting of the Construction Resources Committee was held on Wednesday, March 14, 2018 at 9:00 a.m. in the lower level conference room at 3434 Harbor-Petoskey Rd, Harbor Springs, MI 49740 Members Present: Members Absent: Toni Drier, Martie Van Berlo, John Calabrese, Scott Kennard, Jim Rand, Joe Richardson, David Lauria, Steve Boettger Tom Fairbairn Staff Present: Sharon Wagar, Andy Kloss, Keith Olsen Call to Order Meeting was called to order by Van Berlo at 9:00 a.m. Welcome new Electrical Representative Van Berlo welcomed Steve Boettger as the new representative on the Committee representing the electrical trade. Roll Call Roll call showed all members to be present with the exception of Fairbairn. Election of Chair and Vice Chair Van Berlo asked for nominations or interest in serving as Chairperson for the committee for 2018. There being no volunteers it was motioned by Drier and seconded by Calabrese to have Van Berlo remain as the Chairperson. There being no further discussion a vote was taken and the motion carried unanimously. Van Berlo asked for nominations or interest in serving as Vice Chair for the committee for 2018, in case he was unable to attend a meeting. Kennard volunteered so Drier made the motion to accept and Calabrese seconded the motion. There being no further discussion a vote was taken and the motion carried unanimously. Approval of Agenda It was motioned by Kennard to approve the Agenda of March 14 th, (revised March 12, 2018) seconded by Calabrese. There being no further discussion a vote was taken and the motion carried unanimously. Approval of Minutes It was motioned by Kennard to approve the December 13, 2017 meeting minutes as written, seconded by Rand. There being no further discussion, a vote was taken and the motion carried unanimously. Public Comment Van Berlo indicated that there was no public in attendance, however, he had asked that Kloss and Olsen be present as there were items on the agenda that involved the plumbing and mechanical trades, in which they inspect. 1
Committee Discussion on Public Comment There was no public comment to discuss. Old Business Van Berlo informed the Committee that at the January 3, 2018 organizational meeting of the Board of Commissioners there was a discussion on extending the term limits for committee members to 3 years. The proposal was approved by the BOC and everyone standing on the Committee was re-appointed. The only opening on this Committee is for a plumbing contractor to replace the vacancy left by Griffin. Van Berlo stated that he has been looking for a replacement but has yet to find someone. He will be including this in his March e-mail to the contractors. Drier suggested having applications on hand at the Coffee with the Inspector Meeting and making an announcement there. Van Berlo stated that he needs a plumbing representative on the Construction Board of Appeals too, due to Griffin s resignation on the committee and board upon employment with the County. Department Report Van Berlo reviewed the year to date inspection report year to date for 2018. The report showed that inspections are up again from last year at this time. An increase in number of inspections is showing in the winter months as being busier than it has been in the past. Van Berlo reviewed the permit activity reports. In the sub-trade report, electrical is slightly up where plumbing and mechanical are slightly down in number of permits issued to date compared to last year. There is an increase in the total of sub-trade permits this year due in part to fee schedule changes and the size of the projects being done. Van Berlo reviewed the building permit activity reports. New construction permits are slightly up from last year for this month showing four new house permits where there wasn t any last year at this time. The addition, alteration and demolition permit portion of the report shows an increase in those permits as well. The report also shows a dramatic increase in the total number of permits from all trades when added together. There was a brief discussion on the hospital project and how that will affect the reporting and department as a whole. Van Berlo informed the Committee that the Coffee with the Inspectors meeting will be held April 18, 2018 in the Community Center at the Fairgrounds from 9:30 AM until about Noon. He is trying to find ways where he can shorten the program as attendees have stated that it runs a little long each year. Some of the information normally given will be printed and put out as handouts this year instead so that they can keep it under two hours. There was a brief discussion on the March newsletter that Van Berlo will be sending out to all the contractors. One of the topics in the newsletter will be how about being prepared when coming in to file for a permit and making sure they have all of the information required. Hopefully this will deter the number of projects started prior to a permit being issued. There was a brief discussion regarding violations being found and/or reported each year that the department has to follow up on. Van Berlo explained the procedures taken once a violation is found. Van Berlo explained that water heater permits were added to the Agenda upon the request of Rand. The request comes after the December email Van Berlo sent out to the contractors in which it was stated that two permits are required for water heater installations. Rand explained that the comparison of the costs of the two permits was too big of a percentage of the cost when compared to the cost of water heaters and installation. He asked whether there could be some flexibility in the fees and could be reduced. As an 2
example, on a gas water heater where Keith or Gregg can do the inspection for both trades. It would only be one trip and take around 15 minutes to complete. Van Berlo reviewed the State s technical bulletins that used to be in effect but are no longer valid because of changes in the codes and the licensing laws. At one time, single permits were only required for water heater installations. The State s current position is that for a gas water heater a plumbing and mechanical permit is required and for an electrical water heater, an electrical and plumbing permit is required. Van Berlo stated that the department is following the State as well as other counties in our area according to a survey he conducted. He doesn t know of a way around requiring two permits. As also shown in the survey, the department is about in the middle as far as permit fees being charged by other counties. Whatever type of water heater is installed, the total permit fees are $ 140.00. Van Berlo further stated that if the fees for water heaters were reduced, it would set a precedent for others to want their fees reduced for a specific type of project. Olsen added that for bigger plumbing and heating companies it would be easy to adjust fees, however it would not be fair to those that are plumbing contractors only or mechanical contractors only and would be required to take out two permits. Van Berlo added that permit fees are approved by the BOC and any changes would have to go through them first. After a brief discussion of different options and possibilities Van Berlo stated that he would have a hard time justifying asking for any changes even though he understands and sympathizes with Rand s position. He would not be opposed to contractors taking the issue to the BOC on their own. Rand questioned the income that the department seems to have been collecting over the past years. Van Berlo informed the Committee that even though his budget has shown an excess, those excesses have been used to pay back the General Fund monies that were used when the department was operating in the red. Last year was the first year the department ended in the black. Van Berlo further explained using the hospital project as an example; the permit fees will come in this year, but he will have to cover costs of providing services on that project for the next 5 years. There was a brief discussion on Plan Review Fees. Drier stated that the Committee is charged with finding solutions to a problem and advocating for that solution. If the Committee chooses to take action, she would suggest that close attention should be given to how any proposal is worded and that it be specific to this particular situation only. Kennard suggested that Rand come up with a draft proposal for the Committee to consider at the next meeting. Personnel Nothing was presented under Personnel. Set Date of Next Meeting Van Berlo stated that the next quarterly meeting would be in June. He added that all were invited to come to the Coffee with the Inspectors meeting in April as well. Van Berlo will be unavailable for the first couple weeks in June and would like to see the meeting pushed towards the end of the month. After little discussion, the next meeting was set for Wednesday, June 20, 2018 at 9:00AM. Member / Trade Comment Kennard informed the Committee that he has received some complaints about the contractor license registration requirement implemented by the department. He agrees and feels it is redundant as the same information is already being provided on permit application forms. He could however see having the contractors submit a copy of their license every three years. He feels that is goes against the idea of customer service and that the department has the means to confirm this information already. 3
Van Berlo explained that under Public Act 407 of 2016 it states that contractors shall be required to be registered with the local jurisdiction. Due to the fact that licenses expire on different years within each trade for each individual, it would provide more accurate and up to date information if the department required registration on an annual basis. The departments data base of contractors was enormous, so all contractors were marked as inactive prior to the registration process. Now the data base will show only the newly registered contractors. The program also allows us to scan the supporting information into the registration file so that we have documented proof that an individual has insurance and up to date licenses. Van Berlo further explained that he had resisted having to register contractors for a long time, but when the licensing law changed, he was required to make the change as well. Kennard suggested that the next time registration is due, a letter be sent asking if there are any changes or asking permission to call their insurance company to verify Worker s Compensation Insurance etc. From a customer service standpoint, he would like to see the process a little less restrictive. Van Berlo explained that this is all new for the department as well, and that he has been working with staff to come up with ways to simplify the process for the next time registrations are required (end of 2018, beginning of 2019). Olsen added that registration is important especially for the sub-trade licenses. The State no longer issues licenses with business name on them, only individuals. The department needs to know who the master of record is for each contractor where applicable so they know who should be on a job site and who is responsible for signing permit applications. Richardson informed the Committee that he was approached by a contractor who was not happy with the additional permit fees he was assessed for work started prior to the permit being issued. Van Berlo explained to the Committee the circumstances around this complaint. A contractor built a temporary structure to protect some equipment and did not feel he needed a permit. The code requires that a building permit be obtained for temporary structures as they still are required to support the required loading and protect the equipment and structure below the temporary structure. The complainant was sent two violation letters and did not come into the office until a Stop Work Order had been placed at the site. At that point Van Berlo was unable to waive the fee like he would have had the contractor come in right away. Richardson stated that he had heard only the one side until now and understands the situation now. Drier informed Van Berlo that she is still having discussions with a person in Pellston who has an upcoming court date regarding work he did on his property without a permit. The person does not feel that he needs a permit for an addition to his garage. Drier would like to be notified of the final court date so that she can attend the hearing. Calabrese commented that he sympathizes with the water heater dilemma as he has recently had one replaced in his home. He agrees that the percentage of the permit fee compared to the cost of project is a little off but believes there is a possibility that things could be changed with the right plan. Boettger gave a little synopsis of his work history. He also asked whether something could be done about inspectors (electrical) being gone to conferences or training at the same time, causing delays in getting inspections. It poses a real problem for the contractors sometimes. Van Berlo explained that the inspectors need to obtain a certain number of credit hours in a three-year period, much like the contractors do, in order to stay certified with the State. As he sympathizes with the contractors, the content of the training and the credit hours associated with it are need by both inspectors for re-certification, therefore they both need to be gone at the same time. Whenever it is possible that one of the inspectors does not need to go to a conference because of what is being offered for credits, he would certainly have that inspector stay. There was a brief discussion about a published calendar and one being posted in the office to help keep contractors aware of when inspectors will be gone. 4
Boettger also informed the Committee that if his insurance company were to find out that they were doing work without a permit, the company would drop them. He was wondering if other insurance companies were like that. Van Berlo reported that he talked to a gentleman the other day that was building an agricultural building. When he was informed that a building permit was not required for an ag building the gentleman stated he wanted one anyway because his insurance company would not insure him for any building he built without a permit. Kennard suggested the need for insurance be in the newsletter and mentioned at the inspector meeting as another reason to obtain all required permits. Public Comment No public in attendance. Adjournment There being no further business, the meeting adjourned at 10:15AM. 5