City pushes contractor decision

Published 7:00 am Wednesday, February 24, 2010

Local contractor Gary Woods came to Monday’s Cullman city council meeting looking for answers, but he’s going to have to wait a few more weeks to find them.

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The council postponed a decision to either keep or rescind a new city ordinance requiring contractors to have general liability insurance if they work a job in the city limits. Some contractors are up in arms over the change due to fears that it will significantly raise costs.

If it stays on the books, Woods said he will stop working in Cullman.

“I will pull out,” he said. “I probably did about 20 jobs in the city last year and I can’t afford this insurance … When good contractors leave, that’s when the customers will be hurt by this.”

Council president Garlan Gudger, Jr. said the vote is now set for March 8, because Mayor Max Townson and council member Clint Hollingsworth are out of town this week. City officials also want more time to review a pending attorney general’s opinion to determine if having the requirement is legal.

“We’re just waiting until everyone is together to sit down, discuss this and make a decision,” Gudger said. “We just want to take our time and make this a better piece of legislation. We want everyone to be on the same page.”

The city council added the general liability requirement in January, attached to a new business license ordinance that included some rate increases. City officials said it was added to protect local homeowners.

“We’re just trying to make sure the citizens are taken care of,” Gudger said.

After contractors expressed concerns about the change, the council decided to take some more time and reconsider. General liability costs vary between contractors, depending on the amount of employees on payroll or the amount of money made through sales.

Contractor Phillip Cofer, with Bama Vinyl Construction, said he hopes the city will change the law back.

“There’s no way I can do it,” he said. “I’ll just have to move. I’ve done jobs in the city in the past, but I’ll have to stop if they keep this.”

Craft Roofing owner Eddie Woods said he believes the council’s decision to require general liability insurance was the wrong one.

“Since they’re looking at it now, I think they’re trying to get out of it,” he said. “They need to rescind it, because everyone I’ve talked to said they can’t afford it.”

Local insurance agent Jeanette McPherson, with the Jean Deese Agency, said contractors should consider the advantages before coming out against the requirement.

“It may seem like an extraneous expense because it is not used very often, but in the event that something does happen, liability insurance will seem like the greatest financial decision you ever made,” she said. “I know a lot of them are frustrated about it, but it does provide an extra degree of protection.”

Until the matter is resolved, some contractors have filed extensions in hopes the city will change the ordinance. Gudger said all extensions will remain valid until a decision is made.

The council also:

* Approved a resolution to establish minimum fire station staffing for stations one and two, plus staffing during extreme weather conditions.

* Approved a request for elevator repairs at the pedestrian walkway for $2,368 to the Otis Elevator Company.

* Approved a due diligence study to be done on the Administration Building for Grief Brothers in front of the Police Station for a possible site for dispatch office. A cost study to compare a new building versus repairs to the existing building. The study cost from Construction Program Management is $5,566.

* A request from fire chief Junior Reinhardt to take bids for a first defender handheld Raman for unknown chemical identification. Grant funds of $33,355 will be used with $1,755 of matching funds.

* A request from Junior Heaton, Water Superintendent, to take bids for Water Department Materials to replenish stock.

* Forwarded an annexation request from Dale Bright on behalf of Clint Frey to the planning commission. The 7.88 acres of property is opposite the Cullman Jefferson Gas Company which is zoned B-2 (General Business District).

* Approved a request from Billy Atchinson, Territory Manager for Sunbelt Fire, made a request to close 5th Street SW, 6th Avenue SW and 5th Avenue SW near the Civic Center from 2:00 p.m. until 5:30 p.m. on Saturday, March 6th. There will be a demonstration of fire trucks and the hose to connect to a hydrant is across the street from the Civic Center. There will be around 250 guests from North Alabama attending the classes.

* Approved a request from Perry Shields, Center Director for ATN-Cullman and Hanceville made a written request to approve closing half of the lower parking deck behind the Commerce Center.  The dates of March 22-26. The Alabama Technology Network will host a Hazardous Materials Training Class.

* Approved a resolution to support public education (WSCC) and expansion of jobs.

* Approved a resolution declaring surplus property for the air vac system and fire engine #510.

* Awarded a tree service bid to Clemmons Tree Service for $1,899 for the corner of Second Avenue and Eighth Avenue.

* Awarded a bid to Johnson Mechanical Inc. for UV light bulbs at the waste water treatment plant.

* Approved the appointment of Wells R. Turner, III as a municipal judge for a two-year term.

* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 225.