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Home My WebLink AboutOrdinance - 9622-1993 - Amending Chapter 6 Ading A New Section 6-12 Insurance For Contractors - 06/24/1993First Reading June 24, 1993 Item #7 Second Reading July 8, 1993 Item 1112 ORDINANCE NO. 9622 AN ORDINANCE AMENDING CHAPTER 6 OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, WITH REGARD TO BUILDINGS AND BUILDING REGULATIONS BY ADDING A NEW SECTION 6-12; WHICH PROVIDES FOR A SURETY BOND AS AN ALTERNATIVE TO INSURANCE FOR CONTRACTORS; PROVIDING FOR A BUILDING TRADES REGISTRATION AND REGISTRATION FEE; ADDING A NEW SECTION 6-17, WHICH PROVIDES FOR REGISTRATION OF BUILDING CONTRACTORS; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICA- TION. WHEREAS, liability insurance has become increasingly difficult and expensive to obtain; and WHEREAS, it is deemed appropriate to provide an alternative method of securing protection for the public by allowing surety bonds in lieu of insur-ance;· and · WHEREAS, the City Council deems it to be in the best interest of the citizens of the City of Lubbock to provide for registration of building contractors; NOW THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the Code of Ordinances, City of Lubbock, Texas, is hereby amended by adding a Section, to be numbered 6-12, which said Section reads as follows: Section 6-12. Bond Alternative. A good and sufficient corporate surety bond in the amount of Ten Thousand and No/100 Dollars ($10,000.00) payable to the City for the use and benefit of the City, the property owner, or any person damaged by any act or neglect of the principal or his agents or employees; or by reason of failure to repair any defective work, material or installa- tion; or for failure to pay any fees or other charges due the City; or for failure to remedy any defects or faulty workmanship or materials within the time prescribed by the Building Official for'the completion of such remedial work, without additional cost to the person for whom the work was done; and guaranteeing compliance with the requirements of this Chapter of all work performed by the principal, his agents or employees, may be substituted for any contractor's insurance requirement contained in this Chapter. A claim upon such bonds may be made by any person damaged by reason of the principal's failure to perform his obli- gations under this Chapter and the bond. Suspension or revocation of any license or permit shall not limit the liability of either the prin- cipal or surety on any such bond. SECTION 2. THAT the Code of Ordinances, City of Lubbock, Texas, is hereby amended by adding a Section, to be numbered 6-13, which said Section reads as follows: Section 6-13. Registration; registration fee. Persons engaged in any occupation regulated by this Chapter who are not required to obtain a local license, shall be required to register with the Building Official and pay an annual registration fee of Fifty and No/100 Dollars ($50.00). SECTION 3. THAT the Code of Ordinances, City of Lubbock, Texas, is hereby amended by adding a Section to be numbered 6-17, which said Section read as follows: Section 6-17. Building Contractor Registration. No building permit shall be issued to any building contractor for work to be performed pursuant to a building contract unless such building contractor is registered with the Building Official of the City of Lubbock in accordance with the following provisions: (a} (b) (c} (d) Registration as a Building Contractor shall be made upon forms provided by the Building Official of the City of Lubbock and all information requested shall be submitted by the applicant. Registrations shall expire December 31st of each year and must be renewed annually in order to acquire permits or continue work on currently issued permits. Failure to keep proper insurance or a valid bond in force will result in termination of registration and invalidate any active building permits issued to the building contractor. Should such insurance policy or bond expire, all fees, including all permit fees, must be paid again upon renewal of the registration. Registration may be revoked or rejected by the Building Official for the following reasons: (1) Failure to obtain and keep in effect required insurance or bonds; (2) Failure to fully complete the registration form; (3) Failure to pay any required fees; - 2 - (4) Refusal to correct any Code violation after notice; or (5) Continuous or repeated violations of the Code of Ordinances of the City of Lubbock. Revocation or refusal to grant an application by the Building Official may be appealed to the Building Board of Appeals in accordance with applicable provisions of the Code of Ordinances of the City of Lubbock. SECTION 4. THAT should any section, paragraph, sentence, clause, phrase or work of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. SECTION 5. THAT the City Secretary is authorized to cause publication of the descriptive caption of this Ordinance as an alternative method of publication as provided by law. AND IT IS SO ORDERED. Passed by City Council on first re 1993. Passed by City Council on second r 1993. OOV:da/AGENDA-D1/SUREBOND.ord arch 4, 1993/Rllviaed May 3, 1993 - 3 - R-1716 ·! STATE OF TEXAS INTY OF LUBBOCK ire 111e Pat t 1 Tate a Notary Public in and for Lubbock County, Texas on this day onally appeal1'<1 T. J, Au fi 11 , Cont ro I le r orthe Southwestern Newspa-Corporation, publishers or the Lubbock Avalanche-Journal -Morning, and SUnday, who being by me duly :n did depose and say that said newspaper bas been published continuously for more than fifty-two weeks pri-• the first insertion orthis _ .... 1 ... e_..e.,.aul'-JN._.n._,t.._.1 .... c ... e.._ _________________ _ __________ _.,n !Oi-5O08 at Lubbock County, Texas and the attached print-)py of tile Le I! a I No t ice. 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