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REL:adg 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.