Agenda Date: 04/15/2025
Subject:
Title
Ordinance 02-2025: An ordinance on second reading repealing and reenacting city code Title 3, Chapter 16: Licensing and Registration of Construction Supervisors or Individuals
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Tim Steinwinder, Chief Building Official |
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Matt Knight, Community Development Director |
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Presentations: |
Tim Steinwinder, Chief Building Official |
PURPOSE:
Staff is proposing minor Contractor Licensing Code amendments to align with recent fee schedule updates, bring license holder qualifications in house, and complete the migration of all contractor licensing into the Permit Center One-Stop-Shop from other departments.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The Contractor License Code amendments proposed primarily deal with the following:
Created a Table of Contents to help navigation within the Code
A Table of Contents has been created so that navigating Title 3 within the City Building Code is simplified. This will allow contractors to quickly find the section they need when researching obtaining or renewing a contractor’s license with the City.
A Definitions section has been added
A Definitions section was added to clarify language used within the code, to mitigate any confusion on licensing requirements.
Arborist Licensing has been added to Community Development
As part of the Design the Future Process, and the development of the One-Stop-Shop within the Permit Center, Arborist licensing has been migrated from Public Works to Community Development. This will help standardize the contractor licensing process for all types of licensing.
A new Class M license type has been created
In addition to Building Contractor license classes A, B, C, and D, we have added a Class M (Municipal) contractor’s license for Right of Way work. Previously administered through Public Works, these types of licenses and permits have been migrated to Community Development. Again, this creates consistency across all departments for licensing requirements.
The fee schedule has been updated
The contractor licensing fee schedule has been updated to match the findings in the fee study conducted in 2024.
Class A $100
Class B $100
Class C $100
Class D $100
Class M $400
Arborist $150
Electrical $0 (state regulated)
Plumber $50
Definitions have been added for each Contractor class
To make sure that contractors are applying for the correct license class, definitions have been added. This primarily applies to the Class D specialty contractor license. This type of license is issued to contractors engaging in a single trade such as roofing, or mechanical. Class A contractors can work on any project from the largest commercial projects to small residential projects. Class B contractors can work on medium commercial projects and multi-family projects up to 3 stories tall, as well as residential projects. Class C contractors can work on residential buildings not exceeding two stories in height. Arborist contractors are limited to tree work, often performed within the public right of way. Class M contractors perform municipal work within the city such as sewer, or utility work, usually within the public right of way. Electricians and Plumbers are licensed by the state. We are prohibited from charging to license electricians by the state, but we charge a nominal fee for processing Plumbing licenses into our system.
Reciprocal licensing with other jurisdictions has been removed
In the past we have issued contractors licenses to applicants who qualified for a license in outside jurisdictions. However, we have no control or input on the test contents or criteria in those jurisdictions. Contractors currently licensed with the City of Littleton under a reciprocal license may continue to renew their license, but if it expires, they will need to reapply using the new testing requirements set forth within these code amendments. The one exception is Arborist licensing. There is a field test administered by only 3 other jurisdictions that they are required to pass. We do not have the resources to conduct this type of test.
Standardized testing has been added
The International Code Council has developed standardized exams for Class A, Class B, Class C, and Class D Roofing and Mechanical contractors. These exams are updated for each code cycle, ensuring that our applicants are testing on the most current criteria. The exam result is good for 3 years once passed and can be renewed with the International Code Council utilizing continuing education credits available through many varied sources. An applicant’s International Code Council exam must be current to apply or renew for a license with the City of Littleton.
Clarification on state licensing requirements has been added
The City of Littleton is now recognized by the state as a Manufactured Home inspection agency. In addition to the existing requirements for Electricians and Plumbers to be state licensed, we have added Manufactured Home installers as contractors requiring a state license. This is administered through The Colorado Department of Local Affairs (DOLA).
Changed contractor license expiration process
Contractor’s licenses will now expire at the end of each calendar year. Previously they were issued for 12 months from application date, but tracking expiration became complicated.
Required Insurance amounts have been updated
After consulting with the city’s legal staff insurance thresholds have been adjusted to match industry standard. The new thresholds are $1,000,000 per occurrence, and $2,000,000 aggregate.
Clarification of license suspension criteria added
In addition to the previous criteria set forth and based upon some isolated cases in the last year, we have added bounced checks and rescinded credit card transactions to the list of possible license suspension criteria.
BACKGROUND:
Through the Design the Future Process, and the implementation of the One-Stop-Shop in the permit center migrating all contractor licensing to a single entity was identified as the most efficient process. All department’s licensing now processes through the permit center in Community Development within the Building Division. To standardize the process for all license types, these code amendments have been developed by Community Development staff. We are also taking this opportunity to clarify vague code sections, bring contractor testing within our control, and adjust our fee schedule per the fee study conducted in 2024.
Prior Actions or Discussions
Code originally adopted in 1985, updated in 1992, 2010, and some sections again on June 13, 2024. Staff presented proposed amendments to the code regarding this topic at a study session on February 25, 2025.
This ordinance passed on first reading on April 1, 2025.
FISCAL IMPACTS:
These amendments will have no fiscal impact on the city but will reduce costs for contractors.
STAFF RECOMMENDATION:
Staff recommends that council approve these amendments to the city code regarding Contractor Licensing by approving Ordinance 02-2025 on second reading.
ALTERNATIVES:
1. Provide alternative direction regarding the contractor licensing framework that can be incorporated into an ordinance for future council consideration.
2. Decline to approve the recommended code changes and continue the current process. This option would stall the implementation of the One-Stop-Shop process, leave licensing housed within two different departments utilizing three different systems, leave the city exposed to financial burden from insufficient insurance thresholds, and leave contractor qualifications in doubt without a testing standard.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 02-2025 on second reading repealing and reenacting city code Title 3, Chapter 16: Licensing and Registration of Construction Supervisors or Individuals.