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11/27/78
RESOLUTION NO, 78-147
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA REQUESTING THE STATE
LEGISLATURE TO STRENGTHEN REGULATIONS
RELATING TO STATE-LICENSED CONTRACTORS
WHEREAS, the Santa Ana City Council has become in-
creasingly aware of problems experienced by homeowners in
their transactions with State-licensed contractors, and
WHEREAS, said problems primarily relate to Swimming
Pool and Home Improvement contractors who fail to completely
and adequately fulfill their contractual obligations to
customers, and
WHEREAS, the sales, business, and construction
practices of contractors who fail to fulfill their obligations
have worked a financial hardship upon the citizens of Santa Aha,
as well as homeowners in the entire Orange County area, and
WHEREAS, the State Legislature, through enactment of
Part 4, Division 3, of the State Civil Code, concerning
"Contracts for Swimming Pool Construction," has acknowledged
the need for a more complete understanding between customers
and contractors engaged in the swimming pool construction
business as it relates to content and conditions of trans-
actions for swimming pool construction, and
WHEREAS, the State Civil Code provides customers
with the option of requesting a Completion and Performance
bond covering 100 percent of the contract for swimmlng pool
construction.
WHEREAS, the City Council of the City of Yorba Linda,
by its Resolution No. 1192, has requested the State Legislature
to take action to increase protection for homeowners in trans-
actions with State-licensed contractors for the above reasons;
and
WHEREAS, the City Council of the City of Santa Aha
concurs in the recommendations of the City Council of the City
of Yorba Linda, but also believes that even further legislation
is necessary to afford satisfactory protection to homeowners;
and
WHEREAS, a primary reason for the failure of swim-
ming pool and other home improvement contractors to complete
performance is the practice by said contractors of requiring
homeowners to pay the bulk of the contract price prior to
completion of performance by said contractors;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Santa Ana, to request the California State
Legislature to consider the following requests in an effort
to increase protection for homeowners in transactions with
State-licensed contractors:
1. Enactment of legislation to require mandatory
provision of completion and performance bonds
covering 100 percent of the contract, said bonds
to be furnished by both Swimming Pool and Home
Improvement contractors to the customer/owner.
RESOLUTION NO. 78-147
PAGE THREE
b. Extension of Division 3, Part 4, of the
California Civil Code to include regulation
of all home improvement contracts involving
additions, alterations, or remodelings of
existing homes, with a similar prohibition
against payment of more than two-thirds (2/3)
of the total contract price prior to comple-
tion of performance by the contractor.
4. Consider the above requests in a timely manner
in an effort to decrease the growing number of mis-
understandings that are occurring in the Contractor/
Customer relationship.
BE IT FURTHER RESOLVED to direct the City Clerk to
send copies of this Resolution to the State Legislators repre-
senting Orange County, all City Councils in Orange County,
the Orange County Board of Supervisors, the League of Calif-
ornia Cities, the Assembly Committee on Labor, Employment and
Consumer Affairs, and Senate Committee on Business and Pro-
fessions, the State Department of Consumer Affairs - Con-
tractors State License Board, the State Registrar of Con-
tractors, the International Conference of Building Officials
and its Orange Empire Chapter, and the California Building
Officials organization.
ADOPTED, this 4th day of December , 1978,
by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:~
APPROVED AS TO FORM:
KEITH L. GOW
CITY ATTORNEY
COUNCILMEN: Ward, Garthe, Bricken, Yamamoto,
Evans
COUNCILMEN: None ,
MAYOR
Brandt,