Ordinance Number 768JUb
ORDINANCE NO. 768
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, DELETING TITLE 8, CHAPTER 10 AND ADDING TITLE 9,
CHAPTER 10 TO THE MUNICIPAL CODE ENTITLED SOILS SUBSIDENCE
REMEDIATION PROGRAM
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DOES
HEREBY ORDAIN AS FOLLOWS:
1. The City adopted Chapter 10 of Title 8 establishing a Soils Warranty
program that is general in nature and does not provide specific criteria that individual programs
are to contain; nor does it provide definitions on what type of slope subsidence is to be fully
covered; and,
2. Due to the lack of specifics, each residential subdivider has submitted
various programs that do not contain a continuity of coverage among the various subdivisions that
have been subject to the provisions of the current regulations; and,
3. In the last several years it has been determined that the present programs
do not create a funding mechanism that will cover a catastrophic failure; and,
4. New methods have become available by recent legislation authorized by the
State of California, that will assist in providing a financial mechanism that will address the issue
of repairing a catastrophic slope failure; and,
5. A modification to the present regulations setting forth specific minimum
requirements that will provide for comprehensive coverage will assist in implementing the intent
of the City in the establishment this program.
6. The City Council on May 2, 1995 initiated Code Amendment 95-05 to
consider a revised program to address both catastrophic and surficial soil subsidence events and
to establish financial mechanisms to correct such soil failures.
Title 8, Chapter 10 of the San Juan Capistrano Municipal Code is hereby deleted
in its entirety and a new Title 9, Chapter 10 is hereby added to the San Juan Capistrano Municipal
Code to read as follows:
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TITLE 9
CHAPTER 10.
SOILS SUBSIDENCE REMEDIATION PROGRAM
Sec. 9-10.01 Purpose of Soils Subsidence Remediation Program.
There is hereby created a Soils Subsidence Remediation Program for new significant
hillside residential construction by private developers within the City. The purpose of this program
is to establish specific measures that will provide financial resources and programs to assist in the
correction of damages arising from slope displacement.
Sec. 9-10.02 Projects Subject to Program.
"Significant residential development" covered by this program means all residential
development proposals in hillside areas as defined by Chapter 3, Sec. 9-3.505 of this Title,
consisting of (a) ten (10) or more subdivision lots; or (b) any development which requires
corrective grading to eliminate a potential slope or soils stability problem. Slopes subject to the
provisions of this Chapter are defined as follows:
(a) All designated common area landscape slopes maintained by a Homeowner's
Association who has been designated by the project CC&R's responsibility for their
maintenance.
(b) All manufactured slopes having a minimum height of five (5) feet in vertical
height.
(c) All natural slopes within 200 feet of individual lots, or 150 feet if within the fuel
modification zone to the subdivision whichever occurs first.
Sec. 9-10-03. Program Components
Each subdivision tentative map approval or other development requiring a land use
entitlement covered by this chapter shall include conditions of approval implementing the
following provisions. Said provisions shall be established and recorded prior to or concurrent with
a final map or issuance of a grading permit whichever would occur first.
(a) Catastrophic Soil Displacement Program Element. The following standard
condition of approval shall be applied to all residential subdivisions in the City that
incorporate manufactured slopes of either a cut or fill nature within an area subject
to this program:
(l). Typeof Remediation Pro Pram - Prior to the issuance of a grading permit,
the subdivider shall create a Geologic Hazard Abatement District authorized
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under Public Resources Code Section 26500 et. seq. Said District upon
creation shall be activated upon a subsidence occurrence per the definition
in subsection (2) following.
(2) Definition of Catastrophic Coveraee - Catastrophic soils subsidence is
defined as displacement of a manufactured or natural slope at a depth
greater than three feet with a vertical movement of one (1) foot or more,
regardless of cause.
(3) Covered Rgpairs (Short-term) - The subdivider will make or cause to be
made all repairs to correct any damages to individual lots and structures,
or common/public improvements due to soils displacement at their sole
expense for the first three years after completion of rough grading of the
entire site or the close of escrow for all lots within the subdivision
whichever is latter.
(4) Covered Rgpairs (Conn -term) - If a catastrophic displacement should occur
subsequent to subsection (3) above, the Geologic Hazard Abatement
District shall cover the cost of the actual repairs including damage to
individual lots and structures, or common/public improvements due to soils
displacement.
(5) Reserved R{yh a - This clause shall be included in the formation of
the Geologic Hazard Abatement District reserving the right of the
subdivider or a homeowners association to assert claims against any person
or entity responsible in whole or in part for the displacement of soils
covered by this section.
(6) Public Disclosure of District Formation - Public disclosure of the
formation of the District formation shall be provided by a recorded
document on the Grant Deed for all lots or parcels within the boundaries of
the Geologic Hazard Abatement District. Furthermore, the California
Department of Real Estate Report on the subdivision offering the lots or
parcels for initial sale shall also include a disclosure statement for
prospective buyers.
(b) Surficial Soil Displacement Remediation Program Element - The following
program elements shall be incorporated into CC&R's for any residential
subdivision applications subject to the provisions of this Chapter to insure the long-
term stability of subdivision slopes over the life of the project for surficial
displacement:
(I) Definition of Su ficial Coveraee - Soils subsidence is defined as (1)
displacement of a manufactured slope at a depth up to three (3) feet with a
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vertical movement of one foot or more, regardless of cause. Soils
subsidence does not include surface cracking and fissures, including
desiccation cracks, or erosion (defined as the wearing away of surface of
the slope, as opposed to movement of the slope, resulting from the force of
water, wind, persons, or vehicles moving over the surface, unless erosion
ultimately results in displacement). Surficial damage shall be considered
catastrophic if due to the extent of movement, sufficient funds as required
under subsection (4) following, are not available to repair the damage.
(2) Reserved Rights Clause - This clause is to reserve the right of the
subdivider or a homeowners association to assert claims against any person
or entity responsible in whole or in part for the displacement of soils
covered by this program.
(3) Covered Repairs (Short-term) - The subdivider will make or cause to be
made all repairs to correct any damage to individual lots, structures or
public /private improvements soils displacement at their sole expense for
the first three years after the completion of rough grading or the close of
escrow for all lots within the entire subdivision whichever is latter.
(4) Covered Rgpairs (Lon"rm) - A Homeowner's Association shall be
formed for all subdivisions subject to the City's Soils Subsidence
Remediation Program. The purpose of the Association is to insure the
maintenance of an Homeowners Assessment Fund which will collect and
maintain a restricted fund to correct damage to individual lots, structures
or public/private improvements due to soil displacement occurrences. Said
restricted account is to be established prior to the issuance of the first
grading permit for the subdivision. The subdivider is to deposit into the
Homeowner Association restricted account, an initial amount as determined
by the City. Regulation and use of the restricted account shall be in
accordance with the following:
(i) Funds deposited into the Homeowner's Association restricted
account can only be used for actual costs associated with correcting
soils displacement events as described above. The initial security
shall be in such form and manner as to guarantee and secure the
performance of the seller (subdivider) and shall consist of one of the
following, at the option of the seller and with the approval of the
City Council:
(1) Corporate sureties approved by the City Attorney.
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(2) A deposit, either with a responsible escrow agent or trust
company, of money or negotiable bonds of the kind
approved for securing deposits of public moneys: or,
(3) An instrument of credit, from one or more financial
institutions subject to regulation by the state or federal
government, pledging that the funds necessary to carry out
the warranty program are on deposit and guaranteed for
payment.
(ii) Special assessments shall be applied to all parcels within the
subdivision. Said assessments shall commence on the initial close of
escrow, pursuant to the regulations of the California Department of
Real Estate. Said assessments shall be collected by the Association
until the account reaches a predetermined minimum as established
by the City. The subdivider shall be able to withdraw its initial
deposit provided the fund does not fall below 75 percent of the
predetermined minimum. If a claim occurs during the period the
developer is responsible, and the fund drops below the 75 percent
level the developer shall restore the fund to the minimum 75 percent
level.
(iii) If the amount in the account is less than the minimum amount as
specified above at the conclusion of the initial time period (short-
term), then the subdivider shall deposit sufficient funds to meet the
minimum requirements.
(iv) Appropriate provisions shall be included in the Homeowner
Association CC&Rs and in the grant deeds to grant an exclusive
license to the subdivider or the Association, the right to enter onto
common lots and individually -owned lots so that the subdivider or
its agents or Association can maintain and inspect all landscaping,
irrigation and drainage devices, and all other natural and artificial
conditions which affect or might affect the integrity of slopes which
are subject to the provisions of this program.
(v) A provision in the CC&Rs that requires any proposed alterations by
homeowners to the landscaping, grading, irrigation or drainage
installed as part of the subdivision on individually -owned property
to be subject to review and approval by the Homeowner's
Association and City.
(5) Claim Processing - The Homeowner's Association in the administration
of this program shall retain the services of an independent claims adjusting
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service. The service shall be responsible to adjust all claims for work which
are claimed to be within the coverage of the program. Claims asserted to
be within the coverage of the program will be processed by forms provided
by the Homeowner's Association and filed with the independent adjuster,
who will promptly adjust such claims after obtaining an analysis on the
scope and cost of completing all necessary repairs. The Assessment Fund
or other approved funding device will compensate for the cost of the
independent claims adjusting service.
(6) Modification to Required CC&R's - A provision shall be incorporated
into a subdivisions CC&R's that will require City approval of any
modifications to specific provisions of the CC&R's designed to carry out
the provisions of this Chapter.
This Ordinance shall take effect and be in force thirty (30) days after its passage.
The City Clerk shall certify to the adoption of this Ordinance and cause the same
to be posted at the duly designated posting places within the City and published once within fifteen
(15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may
cause to be published a summary of this Ordinance and a certified copy of the text of this
Ordinance shall be posted in the Office of the City Clerk five (5) days prior to the date of adoption
of this Ordinance; and, within fifteen (15) days after adoption, the City Clerk shall cause to be
published the aforementioned summary and shall post a certified copy of this Ordinance, together
with the vote for and against the same, in the Office of the City Clerk.
PASSED, APPROVED AND ADOPTED this 15th day of
August , 1995.
CAROLYWNASH, MAYOR
ATTEST:
CITY CLERK
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
1, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano,
California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance
No. 768 which was introduced at a meeting of the City Council of the City of San Juan
Capistrano, California, held on August 1st , 1995, and adopted at a
meeting held on August 15th , 1995, by the following vote:
AYES: Council Members Jones, Hart, Campbell, Swerdlin and
Mayor Nash
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL) �'e J�
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CHERYL i6figgON, CITY CLERK
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