State of Minnesota County of Becker, City of Detroit Lakes *************************************** Application For License To Carry On The Business of Plumbing Within The City of Detroit Lakes, Minnesota Pursuant to City Ordinances To The City Council of The City of Detroit Lakes: ______________________________________________________________________ hereby applies for a license for a term of one year, from the 1st day of________________________20___, to carry on the business of plumbing within the City of Detroit Lakes as set forth in and pursuant to the Ordinances of said City. That the applicant holds an unexpired and unrevoked master plumber's license No._______________, issued by the appropriate State Agency for the licensing of plumbers; that said license is hereto attached for examination by the City Council. That the applicant submits herewith a $25,000.00 bond executed by a surety company authorized to do business in the State of Minnesota and conditioned as provided in Section 3 of Ordinance No. 720.03, as amended, or proof that bond has been filed as required by Minnesota Statutes 326.40. That the applicant has paid to the City Administrator the sum of $_______________as required by Ordinance No. 720.03, as amended. That said applicant makes this application pursuant and subject to all the Laws of the State of Minnesota, the regulations of the State Board of Health and the ordinances and regulations of said City of Detroit Lakes, Minnesota, all of which are hereby made a part hereof, and hereby agrees to observe and obey the same. Dated____________________, 20___ Signed:_______________________________ Mailing Address:______________________________________________________ ********************************************************************** 605 Plumbers Fee $25.00/yr. for license Mandatory, statewide, code compliance bonding in the amount of $25,000 will be required of any individual or company that contracts for plumbing services. Subd. 2 - Bond State Code Compliance Bond $25,000.00 Before a license may be granted, the applicant shall furnish to the city a bond approved by the council in the amount of $2,000, executed by a surety company authorized to do business in Minnesota. The bond shall be conditioned that the applicant shall in all respects well and faithfully perform all things by him undertaken in the making of connections, repairs or taps of any kind with the water mains or pipes connected with the water works system of the city, and shall save the said city harmless of and from all accidents and damages consequent thereto or by reason of any opening in any street, lane or avenue made by him or by any person in his employ, for the purpose of putting down service pipes connecting with the water works of said city, and that he will restore all streets excavated by him to their former good condition and will keep and maintain the street and sidewalk in good condition, to the satisfaction of the street commissioner for a period of one year next thereafter, and that he will pay all fines and penalties that may be imposed upon him by law. ********************************** Legislation adopted in 1999 requires any person contracting to do plumbing work within the State of Minnesota to have a code compliance bond in the amount of $25,000. The person contracting to do plumbing work may give bond to the state, which would be in lieu of bonds required for plumbing work by any local jurisdiction, or may give bond to the local jurisdiction where the work is to be performed, if the local jurisdiction has an ordinance providing for such bonding. The bond is to benefit persons suffering loss by reason of failure to comply with the requirements of the plumbing code. The concept of a mandatory $25,000 code compliance bond was supported by industry associations and other participants in workgroups established to advise the department regarding policy matters. As of August 1, 1999, any person giving a bond to the state will have to meet the requirements of the new law. Beginning January l, 2000, every person who contracts to do plumbing work within the state - whether a licensed plumber or not - will be required by the state to have a plumbing bond meeting the requirements of the new law. The state will not require persons who already have a plumbing bond filed with the state for 1999 to take out a new bond for the current year; however, they must take out a new bond complying with the law effective January 1, 2000. Continuation bonds will not be accepted for the year 2000 because the type of bond and the bond amount required are changing. Plumbing bonds filed with the state were previously performance bonds rather than code compliance bonds, and the bond amount was previously only $2,000. Bonds given to the state will be for the calender year, and will be in effect for all plumbing projects by that person within the state during the year. For bonds given to the state, the annual filing fee will remain at $40. The new bond law will better serve the public. The former $2,000 bond amount was much less than the amount typically needed to correct noncomplying work on even one small job, and the requirement now applies statewide, not just where required by a local ordinance. The potential benefits of the new law are evidenced by two recent projects the state health department had inspected. ln both cases, the plumbers did noncomplying work, which, uncorrected, would have exposed occupants of the buildings-and in one case, consumers of the food products processed in the building - to potentially unhealthy and unsafe conditions. Neither of these plumbers were bonded, and both walked away from the jobs without correcting the work. Each owner then had to pay another plumber an additional amount exceeding $10,000 to correct the work. The concept of a mandatory $25,000 code compliance bond was supported by industry associations and other participants on workgroups established to advise the department regarding policy matters.