Agenda Packets - 1986/03/10 - Laserfiche WebLink

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mane ro: Clerk -Administrator and City C,um"l .I FROM: Director of PuhIir Works/Commun i:y 1)..V.. I,) pment'14 DATE: March J, 1906 sm.lf.vr: INSURANCF: RF.00rRF(MEN'r:; FOR LIt'ENSING :'WRAcroRS I believe we ghoold consider reducing the amount of insurance that the CitY rode presently requires huildinq contractors to maintain to receive a license in the Citv of A-wnds View. I believe we should reduce the requirements her other cities have logs strict requirements and insurance costs have skyrocketed. Attached please find a survey of the insurance requirements neighhorinq cities have for licensed eortractors. City Code Chapter 60.03, Subdivision 9, states that public liability insurance should not he less than $250,000 for injuries, includinq accidental death to any one person and, subject to the same limit for each person, to an amount of not legs than $500,000 on account of any ona ac,-ident, and property damage insurance in the amount of not less than $50,000. The survey indicates that most other cities have insurance requirements of $100,000, $300,000 and $50,00U. The Siqn Code (Chapter 39) is the only other chapter in the City Code that insurance requirements for contractors are mentioned. Ci-/ Code Chapter 39.07 has the same requirements as Chapter 60. I recommend changing Chapter 39.07 to state that the insurance requirements for constructinq signs shall be the same as the insurance requirements in city Code Chapter 60.03, Subdivision 9. RECOMMENDATION: I recommend the :nsuranre requirements for licensing contractors be reduced from $250,000, 5500,00 and $50,U00 to $100,000, SlU0,000 and $50,000 bc,�ause this will match other cities' requirements and will help reduce the cost of insurance for huildinq enntractors and, hence, the cost of construction in the City of Mounds View. SWT/bac Attachment