78-734
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RESOLUTION NO. 78R- 734
A RESOLUIION OF THE CITY COUNCIL OF THE CITY
OF ANAHE M, REQUESTING THE STATE LEGISLATURE
TO STREN THEN REGULATIONS RELATING TO STATE-
LICENSED I CONTRACTORS.
WHEREAS,ithe Anaheim City Council has become
increasingly aware I of problems experienced by homeowners
in their transacti~ns with State-licensed contractors; and
WHEREAS ,; said problems primarily relate to
Swimming Pool and ~ome Improvement contractors who fail to
completely and adebuately fulfill their contractual
obligations to cus~omers; and
WHEREAS'ithe sales, business, and construction
practices of contr~ctors who fail to fulfill their obliga-
tions has worked al financial hardship upon the citizens of
Anaheim, as well ~ homeowners in the entire Orange County
area; and
WHEREAS,i the State Legislature, through enactment
of Part 4, Di ViSi:.' 3, of the State Civil Code, concerning
"Contracts for Sw " ing Pool Construction", has acknowledged
the need for a mo. complete understanding between customers
and contractors e~aged in the swimming pool construction
business as it re:Uates to content and conditions of transac-
tions for swimmin~ pool construction; and
WHEREAS ,i the State Civil Code provides customers
with the oItion o~ requesting a Completion and Performance
bond cover ng 100~ of the contract for swimming pool
construction.
NOW, T~REFORE' BE IT RESOLVED by the City Council
or the City or An heim to request the Calirornia State
Legislature to co sider the following requests in an effort
to increase protetion for homeowners in transactions with
State-licensed co tractors:
1.
Enactment of legislation to require mandatory
provisi~n of completion and performance bonds
covering 100 percent of the contract, said bonds
to be f\lrnished by both Swimming Pool and Home
Improve*ent contractOrS to the customer/owner.
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2.
Initiat~on of a complete review of Sections
7000, et! seq. of the Business and Prof'essions
Code, a~ it relates to the "Contractors License
Law", w:tlth a view towards providing needed
protect~on to customers. Specific suggestions
for ameqdment include, but are not limited to,
the fol]Jowing:
3.
Setion 7067.5, regarding f'inancial
so vency 0 applicants f'or a Contractor's
licjense. Current provisions of' this
Secjtion indicate that "financial solvency"
sh~ll mean the applicant's net worth
Sh!',ll exceed one thou.sand dollars ($1,000).
Th ,s amount should be increased to appro-
pr tely reflect present economies and
pr~ctices.
sei'.' ion 7067. 5 also indicates that "The
re strar ~ deny the application of
an " applicant who fails to comply with
thiJs section". This section should be
amejnded to require "mandatory" denial
ratjher than "permissive" action on the
pazit; of the Registrar. Under the current
WOiding, the Registrar could issue a
Co ractor's License to an applicant
re . rdless of his financial solvency.
Se ion 090 regarding "Disciplinary
r ceedings , indicates that the Registrar
"~, " temporarily suspend or permanently
r~ke any license or registration if the
li~nsee is guilty of' specif'ic acts, i.e.,
Mi~use of' Funds (Section 7108), Withhold-
ing Money (Section 7120) and Violation of
Cotitracts (Section 7113). It is suggested
th~ the wording of Section 7090 be amended
to~equire "mandatory" disciplinary
prqceedings rather than permissive action
onithe part of the Registrar, and that
penalties be incurred to reflect the serious-
ness of the inf'raction, rather than a mere
su~ension or revocation of' license.
Consider the above requests in a timely manner in an
effort tiC decrease the growing number of misunder-
standin~s that are occurring in the Contractor/
Customer relationship.
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BE IT F~RTHER RESOLVED to direct the City Clerk to
send copies of th, s Resolution to the State Legislators
representing Oran e County, all City Councils in Orange County,
the Orange County! Board of Supervisors, the League of California
Cities, the Assem~ly Committee on Labor, Employment and Consumer
Affairs, and Sena~e Committee on Business and Professions, the
State Department pf Consumer Affairs - Contractors State License
Board, the State Registrar of Contractors, the International
Conference of Bui~ding Officials and its Orange Empire Chapter,
and the Californi~ Building Officials organization.
THE FOREGOING RESOLUTION is approved and adopted by
the City Council pr the City of Anaheim this 14th day of November,
1978.
ATTEST:
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MAYOR OF 1HE CI Y 0 ANAHEIM
PRO TEM
~{f~ ANAHEIM
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STATE OF CALIFORNIA ).
COUllTY OF OIAlGE )
CITY 01' ANAHEIM )
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It LINJIA ,D. ROBEftTS t City C11k of the ~ityof Anahe-iDh do hereby certify
that tie fore.oing Resolutio '",No. 7'8R-7~4 was i, atroduce",4 a~dad,' OPFed,' a"t a
regular meeting provided by aw, of the' City Council of the City of Anaheim
held on the 14th day of Nov er, 1978, by the following vote of the members
thereof:
AYES :
<1!rhOlt.
N,.e
Stymour
Kott, Roth and Kaywood
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
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AND I I'URTIlER CERTIFY thatqe Mayor Pro Tem of the', City of ,Anahe,im signed
said Resolution No. 78R-734 tn the-lmfoay ofL'RO'ileilif>ft;1978~. ~
IN WI'l'JiESS WHEREOF, I have h+reunto ,set my hand and affixed the sea~ of the
City of Anaheim this 14th dat of November, 1978.
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CITY CL\E'. ,OF. nlE,' CI . OF ANAHEIM
(SEAL)
I, LINDA D. ROBERTS, City Cl~rk of the City of Anheim, do hereby certify
that the foregoing is the or ginal of Resolution No. 78R-734 duly passed
and adopted by the Anaheim C ty Council on November 14, 1978.
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CITY CLERK
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