Disaster Highlights 2007 0709 v2

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is worded carefully. But it has the potential to significantly increase the number of homeowners who get permits and could reduce the number of poor quality retrofits. 3. LiabiJitv Insurance for Contractors - We need to encourage contractors who specialize in this work to continue their valuable service. What currently happens is that contractors can't get affordable liability insurance once they admit that they specialize in retrofitting. They suddenly become "foundation" contractors or even don't carry insurance. Many insurance policies specifically exclude seismic retrofit work. Next steps - We need to confirm that this work is routinely exempted from coverage and encourage the State Department of Insurance to investigate the possibility of "red-lining" of this type of work. We also may need to examine the feasibility of the State acting as a re-insurer for liability iQsunmce companies that typically insure these contractors.\ Another option may be for the retrofit contractors to incorporate as a non-profit to work to improve quality and professional practices in exchange for more affordable insurance rates (a model used by foundation and structural engineers). 4. Retrofit Contractor Licensin2 - (Tied to #3) Traditionally, the State has been reluctant to have yet another contractor specialty. Yet a special certification or license to do this work would be one way to increase retrofit quality. It seems a bit strange that a contractor must prove four years of experience to put up sheet rock - but that no similar specialty license is required for retrofitting work. The effort to mandate licensing may be a "catch 22" problem, however, because contractors who become "certified" or "licensed" by the State may find that they can no longer obtain affordable liability insurance. The State Contractors License Board has the authority to create another specialty. The State Seismic Safety Commission had hearings after the Northridge earthquake to look into this requirement, but the effort to mandate the CSLB to create this specialty was abandoned. Next steps - The state legislature needs to meet with the State Contractors License Board to re- examine legislatively mandating of this license specialty. 5. Fundin2 for Soft-Story Inventory and Retrofit Incentives - ABAG has been struggling for about five years to obtain funding to do an inventory of the soft-story multi-family residential buildings in the Bay Area. This inventory is essential as a first step in design of potential strategies for mandatory retrofit. ~ile Fremont and Berkeley have completed inventories, the other .com e not. Based on t e ata in these inventories, Fremont recently adopted an ordinance requiring mandatory retrofit of soft-story apartments, while the Berkeley ordinance mandates that all soft-story residential multifamily buildings have an engineering evaluation and disclose the findings to tenants.) ABAG currently has a proposal for FEMA funding through the State Office of Emergency Services to partially support this inventory. The highest priority for ABAG in use of these funds is an inventory and assistance for the communities along the Hayward fault because of the relative risk. ABAG had expected the proposal for this study to be forwarded by State OES to FEMA with a recommendation to fund two weeks ago, but the decision has been postponed. Next steps - ABAG staff ask that the attendees sign a letter of support for this proposal. In addition, special state funding for this effort could be used to expand the study to the entire Bay Area - or may be needed to fund the entire effort if the project is not funded by FEMA. Is there bond money or other State or federal funding for this effort? In addition, Sen. Ellen Corbett, when a member of the State Assembly, twice sponsored legislation providing for a state tax credit for retrofit of soft-story buildings. We need to try to pass this legislation again. We now have seen what has happened in New Orleans, and the legislature and governor may be more amendable to passage. 2