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HomeMy WebLinkAboutA002 - Council Action Form dated October 26, 2004 COUNCIL ACTION FORM ITEM # gt� DATE: October 26, 2004 SUBJECT: REPEAL OF LIABILITY INSURANCE REQUIREMENT FOR HOME CONSTRUCTION BACKGROUND: Homeowner's performing construction work on their personal residence are not required by ordinance to be a registered contractor, however, they are currently required to provide the city with proof of $500,000.00 in general liability insurance before they can receive a permit. Staff believes this is an unnecessary burden placed on the homeowner wishing to perform the work themselves. Staff also discussed the proposed revision with the City's Risk Manager and received a positive endorsement for the repeal. The liability insurance requirement will remain in effect for contractors doing work on a residence and for landlord's performing work on their own rental property. ALTERNATIVES: 1. The City Council can approve the attached ordinance repealing the requirement for homeowner's to provide proof of general liability insurance amounts of$500,000.00 when engaged in construction activities on their personal residence. 2. The City Council can maintain the current requirement for $500,000.00 in general liability insurance for homeowners that engage in construction activities on their personal residence. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council adopt Alternative #1. The liability insurance requirement will remain in effect for contractors doing work on a residence and for landlord's performing work on their own rental property. COUNCIL ACTION: C� --