Building owners required to pay elevator test witness
It doesn't take two people to run some of the required annual tests on Illinois elevators, but building owners around the state are paying extra for that second person to merely watch the work as it's done.
A Daily Herald investigation has discovered a state law — which some legislators believed had been repealed — is allowing elevator mechanics and inspectors to charge building owners arbitrary fees beyond what they pay for routine maintenance. The increased costs can range from $200 to $500 per elevator, industry officials said.
It's called a “witnessing fee” that building owners must pay a certified elevator inspector to literally watch an elevator mechanic perform a hydraulic test that essentially amounts to the elevator car being held in place for 15 minutes at the highest point of the shaft. If the car doesn't slide or slip down during the test, the mechanic's work is approved by the witnessing inspector.
“We're unnecessarily layering the service at the consumer's expense,” said state Sen. Susan Garrett. “It's unfair and has to be addressed. I thought all the issues we had addressed were going to be moved out, but I guess this one got through.”
Garrett, a Lake Forest Democrat, was one of the co-sponsors of 2009 legislation that amended the controversial Elevator Safety and Regulation Act. Those amendments removed some costly elevator modernization requirements that were part of the original legislation approved in 2002. The amendments did not remove the witnessing fees, as Garrett had believed. She plans to remedy the issue by introducing another amendment later this year.
Patricia Schwarze, executive director of the Building Owners and Managers Association of Suburban Chicago, said the cost is passed on to building tenants.
“We're not convinced that they have done a good job justifying the need for this cost,” she said. “Our people are upset about this because it's something they end up having to pass on.”
It took the state until 2007 to implement the test witness provision. Before that, elevator mechanics were expected to do the tests as part of annual maintenance and leave a tag on elevator equipment to inform inspectors of the test results. Now, elevator inspection companies generally charge between $125 and $150 per elevator to witness the annual pressure tests, according to several elevator mechanics and inspectors. But mechanics also mark up those costs because they schedule and pay the witnesses. Those markups are unregulated as well and can range anywhere from $50 to several hundred dollars, industry experts said.
Meanwhile, industry officials defend the requirements, but acknowledge the lack of oversight in determining fees.
“There's no regulation on pricing. It's driven by the market and not regulated by a governing body,” said Nick Budmats, one of 252 state licensed elevator inspectors, who believes the witnesses improve safety.
“It became a revenue generating scheme, in my opinion,” said Dick Gregory, the code consultant for the state's Elevator Safety Review Board who helped draft the original legislation. “But there's got to be some quality assurance program.”
While elevator mechanics are licensed by the state, Gregory and other elevator industry experts defend the witnessing practice because they said it ensures the work is done.
Frank Christensen, leader of the Chicago-area elevator construction union representing mechanics, supports the witnessing requirement, even though he claims “we're probably the most trained trade in the country.”
Gregory acknowledged it's rare that licensed professionals have someone directly monitoring their work as it's being done, but he said witnessing is similar to any other regulatory oversight.
“While there may not be someone watching a surgeon work, doctors have umpteen years of training, but they also have boards that supervise them,” he said, adding that removing the witness requirements would be dangerous. “We might as well remove all the stop lights.”
Gregory suggested one way to cut costs is to let licensed inspectors from the elevator company doing the tests witness the work of their colleagues.
Inspection companies say witnessing pressure tests provides a level of oversight that didn't exist before.
“You're guaranteeing the test is performed,” said Frank Cervone, president of Burr Ridge-based Elevator Inspection Services. “I worked at elevator companies in the past and saw many that didn't do the tests.”
Cervone's company has inspection contracts with municipalities like Arlington Heights, Bloomingdale, Downers Grove, Glendale Heights and Oak Brook. Those contracts require elevator mechanics to use Cervone's company as a witness, but don't specify the amount charged. Gregory said municipalities could regulate witnessing costs by making it part of the inspection contract. More than 170 Illinois municipalities have contracts with specific companies, according to state safety records.
Witnessing requirements were part of the controversial 2002 act. The legislation would have forced hundreds of building owners with older elevators to make costly modernization upgrades. It also set up the current oversight board that is led by the thrice-appointed Christensen. His initial appointment occurred the same month his union gave $10,000 to former Gov. Rod Blagojevich's campaign fund and was mentioned in the Antoin “Tony” Rezko federal corruption trial.
The 2002 law had no provisions to regulate inspection and witnessing prices.
“I wish that part of our board responsibility was pricing,” Christensen said.
Critics have long complained about the scope of the 2002 legislation that essentially created work for elevator builders and mechanics in perpetuity through its modernization requirements. It was introduced in the legislature under the guise of updating regulation of cosmetology practices. It also exempts the city of Chicago from its governance, even though the majority of the state's elevators are there. The city has its own inspection program, though Gregory and other elevator industry experts contend reduced inspection staffing levels have left some city elevators uninspected for long periods of time.
State Sen. Don Harmon, an Oak Park Democrat, was the chief sponsor of the 2009 amendments that eliminated much of the elevator modernization requirements. He said some building owners were facing costs of between $6,000 and $18,000 to modernize perfectly functioning elevators.
“Now, unless there's a weakness in the system you don't have to replace an elevator,” he said.
Elevator safety falls under the purview of the state fire marshal's office. The office began enforcing witnessing in 2007 and also began charging $400 for two-year inspector licenses around the same time, officials said. All inspection companies have to pay $400 for the company to be licensed as well. There are almost 80 elevator inspection companies licensed in Illinois. Inspection licensing generates roughly $130,000 every two years for the state.
Garrett said she asked in 2009 if there was an immediate safety need that necessitated all of these changes to the law, but never received any documentation. She said there was apparently no rash of elevator accidents that precipitated the law.
Gregory doesn't believe he helped create a monster by pushing for the regulations.
“I don't,” he said. “I think we created a heck of a lot more elevator safety.”
Ride: Industry officials say requirement necessary for safety