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L On March 2nd, Mr. Dickenson submitted plans to the Building Department for a five -unit apartment building to be constructed on the lot a nd on March 31d executed the application for a building permit. March 14th the building permit was issued to Mr. Dickenson and on the same date City Title Insurance Company conveyed record legal title to Mr. Dickenson and his wife. The application indica tes Mr. Dickenson, as owner and that he is acting as contractor. An ap- propriate certificate of workmap's compensation insurance naming Mr. Dickenson as the insured employer was filed pursuant to 3 3800 of the Labor Code. However, Mr. Dickenson is not a licensed contractor and did not file any statement of exemption from the provisions of the state laws govern- ing licensed contractors. ANALYSIS: Labor Code § 3800, 'Permit requirements„ Certificate of Insurance or Consent to Self -Insure; Exclusions,' provides that in connection with the issuance of building permits 'Each .....city shall also require that each such applicant file as a condition J)recedent to the issuance of a permit,a statement which he has prepared and signed stating that the applicant is licensed under Abe provisions of Chapter 9 (commencing 1 at Section 7000) of Division 3 of the Business and Professions Code, giving the num- ber of the license and stating that it is in full force and effect, or, if the ap- Plicant is exempt from the provisions of Chapter 9 (commencing at Section 7000) of Division 3 of the Business and Professions Code# the basis for the alleged exemption.? (Emphasis added.) It is apparent from 9 3800 that the filing of the statement of exemption referred to therein constitutes a condition precedent to the issuance of a permit, and that this requirement is mandatory rather than discretionary. Section 3023 subsection (e) of the Uniform Buildirg Code, 1958 Editions, adopted by Ordinance No. 925, provides as follows: �(e) Suspension or, Revocation. The Building Official may, in writing, suspend or revoke a permit issued under provisions of this Code whenever the permit is issued in error or on the basis of incorrect information supplied, or in violation of any ordinance or reg- ulation or any of the provisions of this Code.' CONCLUSIONS: (1) It is our opinion that the permit was issued contract to the ovisions of 1 3800 of the Labor Code and as such is subject to suspension or revocation by he Building Inspector pursuant to 9302 (el of the Uniform Building Code, pending compliance with A3800 and all other applicable general laws and ordinances. OPM (2) Upon compliance by applicant with §3800 and upon verification that the proposed permit is in conformance with all other provisions of the zoning ordinance, the building code, and the general laws, the Building Inspector is obligated to issue a valid permit." Letter from Jack W. Dooling, attorney for Mr. Dickenson, was read• Mr. George Bronner, representing Mr. Dickenson, requested delay to allow his client time to comply with the conditions as outlined in the City Attorney's report. After thorough discussion it was moved by Councilman Fields that Mr. Dickenson be notified in writing, by the Building Snspector, that he must comply with the requirements of the Labor Code, Section 3800, as they apply to the permit under discussion, by Friday, April 8, 1960s or said permit would be revoked by the Building Inspector (MINUTE ORDER #60-100), seconded by Councilman Spillers and carried unanimously on roll call. CITY ATTORNEY'S REPORT ON THE LEGALITY OF SPENDING WATER DEPARThMENT FUNDS FOR PROPOSED EMERALD LAKE AREA 0 ST=. IS AS follows: "At the Council meeting of March 28, 1960, information was requested from this office as to the nature of the restrictions, if any, upon the purposes for which revenues derived from the Emerald Lake Water System may be expended. Our investigation has not revealed any legal restriction cd the purposes for which such revenues may be expended. Nor have discussions with Water Department and Auditor revealed any legal restrictions. Section 45 of the Charter of the City of Redwood City contains the following two provisions: 'The Treasurer shall keep the funds of each utility separate. Any funds exceeding $15,000 may be invested in the United States, State, County, or Municipal bonds. The books of each utility shall be kept in accordance with the State regulations governing the accounting of public utilities, and a report in detail shall be made to the Council monthly.' In our opinion, neither of these provisions would operate to prevent monies in the Emerald Lake Water fund from being appropriated to other uses but merely relate to the accounting procedures to be employed until the time they are appropriated and expended. We understand that there has been a general Council policy to restrict the use of Emerald.: Lake System revenues to the maintenance and improvement of the Emerald Lake System. Such