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Contractor registration seconded in Chardon
(by Joseph Koziol Jr. - March 18, 2009)
Contractor registration seconded in Chardon
By JOSEPH KOZIOL JR.
A second version of legislation was approved by Chardon City Council last week that is intended to protect residents from unscrupulous contractors. Council voted 5-2 to require contractors who work in the Chardon to register with the city.
Councilwoman Deborah Reiter voted against the measure, saying that the legislation does not include subcontractors, an omission that offers residents less protection. She said she also does not agree that contractors should be allowed to register every two years. Previously, they were required to register once a year.
Councilwoman Mary Bramstedt also voted against the legislation.
Council had enacted legislation at the start of 2008 that was intended to provide similar protections. However, that legislation was deemed insufficient, and council revisited it this year.
As with the initial legislation, council retained a $100 fee for registration and $100 for a renewal.
It also requires that contractors provide liability insurance for damage to property or injury in the amount of $300,000 per occurrence and $600,000 in aggregate. Also required is a workers' compensation certificate.
The city previously required that staff continually check a company's status on those two issues. Now, the city will only check whether those requirements are current at the time of registration.
Councilman Jefferey Campbell Jr. said, while he does not support all the changes made to the legislation, he's satisfied that it will guarantee the city will collect income tax from those who owe it.
That guarantee is intended by companion legislation that requires contractors to make a deposit at the time of registration. The deposit would be returned when contractors submit a "close-out" form at the completion of their work. The form would include all subcontractors or workers and how much they were paid.
The deposit is to be based on project costs and is 1 percent of those costs or $250, whichever is greater.
If a contractor fails to comply, the city can withhold an occupancy permit.
Chardon Law Director James Gillette said the only problem that could arise under the legislation is if a homeowner contracts for an addition. He said, if the addition is built and the contractor does not comply with the "close-out" form, it would be difficult to prohibit a family from living in the addition.
Councilwoman Leslie Bednar said education of the public is just as important than the legislation passed by council. She said she intends to invite representatives from the Ohio Attorney General's Office to present its program on their rights when they contract for home improvements.
She said the attorney general's office lists the top 10 complaints from consumers and home improvements rank third.
She said she did not know the exact date of the presentation, but that it is being planned.
Mrs. Bednar also said that residents will have to be aware that not every project is covered under the new legislation. She said roof replacements, which can be expensive, are not covered.
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