HomeMy WebLinkAboutCity Council - 4732 RESOLUTION NO. 4732
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH REQUESTING THE STATE
LEGISLATURE TO STRENGTHEN REGULATIONS RELATING
TO STATE-LICENSED CONTRACTORS
WHEREAS, the City of Huntington Beach has become increas-
ingly 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 fullfil their contractual obligations to customers;
and
WHEREAS, the sales business, and construction practices of
contractors who fail to fullfil their obligations has worked a
financial hardship upon the citizens and homeowners in the City
of Huntington Beach; 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 transactions for swimming pool con-
struction; and
WHEREAS, the State Civil Code provides customers. with the
option of requesting a Completion and Performance bond covering
100% of the contract for swimming pool construction; and
WHEREAS, a primary reason for the failure of swimming 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 per-
formance by said contractors ;
NOW, THEREFORE, BE IT RESOLVED that the City of Huntington
Beach will request the California State Legislature to consider
ADL:ps
3/20/79
1.
the following requests in an effort to increase protection for
homeowners in transactions with State-licensed contractors .
1. Enactment of legislation to require mandatory pro-
vision of completion and performance bonds covering 100% of the
contract , said bonds to be furnished by both Swimming Pool and
Home Improvement contractors to the customer/owner.
2. Initiation of a complete review of Sections 7000, et
seq. , of the Business & Professions Code , as it relates to the
"Contractors License Law" , with a view towards providing needed
protection to customers . Specific suggestions for amendment
include , but are not limited to, the following:
a. Section 7067.5 regarding financial solvency of
applicants for a contractor' s license. Current provisions of
this section indicate that "financial solvency" shall mean the
applicant' s net worth shall exceed one thousand dollars ($1,000) .
This amount should be increased to appropriately reflect present
economies and practices.
b. Section 7067.5 also indicates that "The Registrar
may deny the application of any applicant who fails to comply
with this section" . This section should be amended to require
"mandatory" denial rather than "permissive" action on the part
i
of the Registrar. Under the current wording, the Registrar
could issue a Contractor' s License to an applicant regardless
of his financial solvency.
C. Section 7090 regarding "Disciplinary Proceedings,"
indicates that the Registrar "may" temporarily suspend or per-
manently revoke any license or registration if the licensee is
guilty of specific acts ; i.e. , Misuse of Funds (Section 7108) ,
Withholding Money (Section 7120) and Violation of Contracts
(Section 7113) . It is suggested that the wording of Section
m 7090 be amended to require "mandatory" disciplinary proceedings
rather than permissive action on the part of the Registrar,
and that penalties be incurred to reflect the seriousness of
the infraction rather than a mere suspension or revocation of
license.
2.
3. Enactment of legislation requiring that at least
one-third (1/3) of the contract price be reserved for payment
after completion of performance by the contractor, including:
a. Amendment of Section 1730 .5 of the California
Civil Code to add a paragraph stating that:
"In no event shall the payment schedule provide
for the swimming pool contractor to receive in
excess of two-thirds (2/3) of the total contract
price , excluding finance charges , prior to the
total completion of the contractor' s performance
under the contract . Performance shall not be
deemed complete until approved by the local build-
ing code enforcement authority."
b . Extension of Division 3, Part 4, of the Cali-
fornia 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
I
to completion of performance by the contractor.
4. Consider the above requests in a timely manner in an
effort to decrease the growing number of misunderstandings that
are occurring in the Contractor/Customer relationship.
BE IT FURTHER RESOLVED to direct the City Clerk of the City
of Huntington Beach to send copies of this Resolution to the
League of California Cities and the State Legislators represent-
ing Orange County.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held the end
day of April , 19 79.
s
Mayor
ATTEST:
City Clerk
3.
REVIEWED AND APPROVED: APPROVED AS TO FORM:
-41 r X4s L-/)-044�
C y Administrator City Attorney
b
Res. No. 4732
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) as:
CITY OF HUNTINGTON BEACH )
I ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of more than a majority of all the members of said City Council
at a regular meeting thereof held on the 2nd day
of April , 19 79 by the following vote;
AYES: Councilmen:
Yoder, MacAllister. Bailey. Mandic. Thomas, Pattinson
i NOES: Councilmen:
None
ABSENT: Councilmen:
None
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California