Agenda Date: 06/02/2015
Subject:
Title
Ordinance amending chapter 7 of title 4 of the city code concerning repair of construction defects
Body
Presented By: |
Mike Braaten, Deputy City Manager |
POLICY QUESTION:
Does city council support amending the recently adopted city code concerning construction defects to allow for a cash settlement option in addition to the adopted builder's right to repair language?
BACKGROUND:
As requested by city council, the proposed language allows for an option for the builder to offer, or homeowner (claimant) to request, a cash settlement to settle an alleged construction defect.
STAFF ANALYSIS:
In addition to the approved builder's "right to repair" language now in the code, the proposed language allows for a cash settlement offer by the builder or a request of cash settlement by the homeowner. If the builder does not pay the agreed-upon cash settlement, the homeowner may proceed with a filing an action against the builder.
Additionally, as adopted previously by city council, the code allows for a homeowner to bring a suit against a builder should they believe, in good faith, that the builder's repair did not resolve a construction defect.
Staff has concerns with attempts to mandate agreement of a cash settlement option between the builder and homeowner as it nullifies the right to repair provision (and much of the purpose) of the original construction defects ordinance. This language allows for the option of a cash settlement, but if a cash settlement is not agreed to by either party, the builder is allowed to conduct repairs to address an alleged construction defect.
FISCAL IMPACTS:
None.
STAFF RECOMMENDATION:
Staff supports the adoption of the proposed language.
PROPOSED MOTION:
Proposed Motion
I move to approve the ordinance-amending chapter 7 of title 4 of the city code concerning construction defects.