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HomeMy WebLinkAboutStaff Report 4260 City of Palo Alto (ID # 4260) Policy and Services Committee Staff Report Report Type: Meeting Date: 11/19/2013 City of Palo Alto Page 1 Summary Title: Ordinance for Expired Permit Enforcement Title: Recommendation to City Council to Adopt an Ordinance for Penalties on Expired Permit Enforcement for Residential Projects From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the Policy and Services Committee recommend that Council adopt the attached ordinance, adopting penalties for maintenance of expired residential building permits. Executive Summary The Palo Alto City Council, at its regular meeting of September 23, 2013, directed staff to draft an ordinance imposing time limits on completion of residential construction projects and daily penalties for projects that exceed the life of the building permit. The attached ordinance requires property owners to maintain progress on projects and to promptly renew expired residential building permits. The ordinance imposes strict penalties for the failure to maintain an active permit, and grants the chief building official limited discretion in modifying or waiving accrued penalties. Finally, the ordinance allows the chief building official to require the construction of a wood fence at the site of any stalled construction. Background The September 23, 2013 City Council colleague’s memo regarding stalled construction outlined several negative impacts associated with construction delays, including visual blight and safety concerns. The memo noted that the City’s current building code does not impose firm time limitations in which construction must be completed and does not impose penalties for expired building permits. City of Palo Alto Page 2 The colleague’s memo called for an ordinance addressing both of these issues and provided ordinances adopted by the cities of Atherton and San Bruno as examples. While the Atherton and San Bruno ordinances are similar to each other, Atherton varies the time limits for completion of construction by proposed square footage, while San Bruno varies time limits by the estimated value of the project, as determined by the building official. At the regular City Council meeting of September 23, 2013 the City Council directed staff to: 1) draft an Ordinance that amends the Municipal Code regarding completion of residential construction projects in a timely manner, to include the imposition of time limits for building permits and daily penalties for projects that exceed the life of a building permit, 2) return to the Policy and Services Committee with the draft ordinance and an update and analysis of delays in commercial construction projects in Palo Alto, if similar issues have arisen, along with potential solutions. The minutes from the September 23, 2013 Council meeting are included as Attachment B. Discussion The draft ordinance imposes strict penalties on projects that fail to maintain an active building permit. For building permits that are expired for between 31 and 60 days, the ordinance imposes a penalty of $200 per day. This penalty increases to $400 per day for days 61 through 90 that a permit remains expired, and to $800 per day beginning on the 121st day and for each day thereafter, with no upper limit. The ordinance allows the chief building official to modify or waive the penalty in certain circumstances. Staff intends to enforce these penalties on a complaint-basis. The draft ordinance does not, however, create rigid time limits in which construction must be completed. Staff recommends against adopting strict timelines based on square footage or estimated value, as project complexity and the time required to complete construction vary and are not always proportional to square footage or estimated value. In addition, the staff time required to assign and enforce rigid time limits on all residential construction would create a significant resource burden. Instead, the draft ordinance preserves the City’s current requirement that projects diligently advance construction to the next level of inspection to maintain an active building permit. This approach is consistent with the overarching goal that construction not be permitted to languish, and avoids imposing harsh penalties on minor delays while ensuring that complaint-based enforcement is available to dissuade truly stalled construction. In response to the City Council direction of September 23 staff has prepared an ordinance for review by the Policy and Services Committee and subsequently by the City Council an Ordinance that amends the Municipal Code regarding completion of residential construction projects in a timely manner, to include the imposition of time City of Palo Alto Page 3 limits for building permits and daily penalties for projects that exceed the life of a building permit. During the staff presentation to the Policy and Services Committee on November 19th City staff will provide an update and analysis of delays in commercial construction projects in Palo Alto, if similar issues have arisen, along with potential solutions. Resource Impact Any revenue impact to the General Fund from the fines outlined in the ordinance will be evaluated as part of the development of the 2015 Proposed Budget. Policy Implications The draft ordinance is largely consistent with the Council’s direction from September 23, 2013. Attachments:  Attachment A: Ordinance Amending Section 16.04.090 of the PAMC Adopting Chapter 16.61 (PDF)  Attachment B: September 23, 2013 Council Meeting Minutes (PDF) NOT YET APPROVED 131105 dm 0160059 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Section 16.04.090 of the Palo Alto Municipal Code to Adopt Local Amendments to the California Building Code, Adopting Chapter 16.61 to Impose Penalties for Abandoned Construction, and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations Amendment of Section 105.5 of the California Building Code is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage and risk to public safety as a result of seismic activity. SECTION 2. Section 16.04.090 of the Palo Alto Municipal Code is amended to read as follows: 16.04.090 Section 105.5 Expiration Section 105.5 of Division II of the California Building Code is amended to read: 105.5 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days after its issuance or if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. For the purpose of this section, failure to progress a project to the next level of required inspection shall be deemed to be suspension of the work. The Chief Building Official is authorized to grant, in writing, one or more extensions of unexpired permits for periods not more than 180 days each and may require: 1) that the construction documents be revised to comply with current codes; and 2) payment of all current and applicable fees. Extensions shall be requested in writing and justifiable cause demonstrated. The Chief Building Official is authorized to grant, in writing, one or more renewals of the expired permits and may require: 1) that the construction documents be revised to partially or fully comply with current codes; 2) payment of a fee; and 3) payment of a penalty pursuant to Chapter 16.61 of the Palo Alto Municipal Code, as it may be amended from time to time. SECTION 3. Chapter 16.61 (Expired Permits for Residential Construction and Demolition) of the Palo Alto Municipal Code is adopted to read as follows: NOT YET APPROVED 131105 dm 0160059 2 16.61.010 Application This chapter shall apply to all residential construction and demolition, including, but not limited to, all additions, alterations, modifications, repairs, and improvements, that require a building permit or demolition permit. 16.61.020 Timely Renewal of Expired Permits In the event a permit expires under section 16.04.090 for suspension or abandonment of work, the property owner shall seek renewal of the permit within thirty (30) days following its expiration. 16.61.030 Penalty for Expired Permits (a) A property owner shall be subject to the following penalties for violation of section 16.61.020: Time from permit expiration Penalty 0 to 30 days $0 31st day through 60th day $200.00 per day (i.e., $6,000.00 maximum penalty applicable to this 30-day period) 61st day through 120th day $400.00 per day (i.e., $24,000.00 maximum penalty applicable to this 60-day period) 121st day and every day thereafter $800.00 per day (b) For purposes of this section, if a renewed permit expires and the property owner has not advanced a project to the next level of required inspection, the calculation of penalties shall relate back to the date of the previous permit expiration. (c) The Chief Building Official may reduce or waive a penalty accrued under this chapter upon finding that the property owner acted in good faith and either: (1) the delay was attributable to circumstances beyond the property owner’s control; or (2) imposition of the full accrued penalty would harm the public interest. 16.61.040 Appeal of Assessed Penalty A property owner may request a hearing to contest a citation issued under this chapter in accordance with Chapter 1.12. 16.61.050 Construction of Fence In the event a permit remains expired for more than thirty (30) days, the chief building official may require the construction of a wood fence at least six (6) feet tall, if necessary to secure the property from unauthorized entry and to minimize the aesthetic impacts of the construction visible from the public right of way. Such fence shall comply with the requirements of Chapter 16.24. NOT YET APPROVED 131105 dm 0160059 3 16.61.060 Public Nuisance Declared Any violation of this chapter shall constitute a public nuisance and, in addition to being subject to any other remedies allowed by law, may be abated as provided in Chapter 9.56 of the Palo Alto Municipal Code. SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. SECTION 6. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Planning & Community Community Environment ____________________________ Director of Administrative Services CITY OF PALO ALTO CITY COUNCIL ACTION Page 1 of 4 Special Meeting September 23, 2013 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:04 P.M. Present: Berman, Burt, Holman, Klein, Kniss, Price, Scharff, Schmid, Shepherd arrived at 5:10 Absent: CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Pamela Antil, Lalo Perez, Joe Saccio, Kathy Shen, Breena Rowe, Rebecca Burnside) Employee Organization: Service Employees International Union, (SEIU) Local 521; Hourly Unit Authority: Government Code Section 54957.6(a) The Council adjourned from closed session at 6:55 P.M. and Mayor Scharff announced no reportable action. SPECIAL ORDERS OF THE DAY 2. Presentation by Santa Clara County District Attorney Jeff Rosen. CONSENT CALENDAR MOTION: Vice Mayor Shepherd moved, seconded by Council Member Kniss to approve Agenda Item Numbers 3-6. 3. Approval for the City Manager to Purchase a Police Records Management System (RMS), and Field-based Reporting Applications in Partnership With the Cities of Mountain View and Los Altos for Palo Alto’s Participation in the Tri-Cities CAD and RMS “Virtual ACTION Page 2 of 4 City Council Meeting Final Action: 9/23/13 Consolidation” Project and Related Budget Amendment Ordinance in the Amount of $100,000 in Contingency Funding from the Information Technology Internal Service Fund. 4. Approval of Crescent Park - No Overnight Parking (2AM-5AM) Trial Program Resident Permit Application and Program Expansion. 5. Council Appointed Officers Committee Recommendation of Appointment of Acting City Auditor. 6. Reauthorization to Engage in a Non-Binding "Smart Cities Alliance Agreement" with the City of Heidelberg, Germany, and Direction on Exploring Future "Smart City" Alliance. MOTION PASSED: 9-0 ACTION ITEMS 7. Colleague's Memo From Vice Mayor Shepherd, Council Members Berman, Holman, and Price Regarding the Building Code and Stalled Construction. MOTION: Council Member Price moved, seconded by Mayor Scharff to direct Staff to: 1) draft an Ordinance that amends the Municipal Code regarding completion of residential construction projects in a timely manner, to include the imposition of time limits for building permits and daily penalties for projects that exceed the life of a building permit, 2) return to the Policy and Services Committee with a brief update and analysis of delays in commercial construction projects in Palo Alto, if similar issues have arisen, along with potential solutions, and 3) this draft shall be reviewed by Council’s Policy and Services Committee for final recommendation to Council. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND THE SECONDER to also return with draft Ordinance revisions to address improved fencing of stalled construction sites. MOTION PASSED: 9-0 8. Colleague's Memo from Mayor Scharff, Vice Mayor Shepherd, and Council Member Price Regarding Electric Vehicles. MOTION: Mayor Scharff moved, seconded by Vice Mayor Shepherd to direct Staff to: 1) review the Electric Vehicle (EV) permit process, and ACTION Page 3 of 4 City Council Meeting Final Action: 9/23/13 procedures for station installations to streamline the process and insure that it is customer friendly, 2) adopt code changes requiring that all new construction of single family housing install the necessary circuitry for EV chargers to come back to the Policy and Services Committee, 3) consider ways to encourage and support EV use in the City of Palo Alto and the Bay Area including the following concepts and return to the Policy and Services Committee with recommendations to ensure that Palo Alto is one of the most EV friendly Cities in America, 4) additional suggested recommendations might include: a) ensuring that all new hotels are required to install EV charging stations and to the extent feasible that all existing hotels are required to install EV charging stations, b) that Staff review the permitting fee structure for EV charging equipment to reduce costs, or develop cost incentives for the permits in such a way that it is streamlined and efficient, and 5) announce at the EV celebration to be hosted at Palo Alto City Hall on September 25, 2013, that Palo Alto will be a leader in the nation in the installation of EV stations by mandating that all new housing units be required to install the necessary rough in circuitry. INCORPORATED INTO THE MOTION WITH CONSENT OF MAKER AND SECONDER to: 1) direct Staff to return to P&S and subsequently to Council with alternatives on a pilot residential curbside EV charging program, and 2) direct Staff to return to P&S and subsequently Council with a draft program to bring about greater implementation of EV charging stations at commercial facilities, potentially including Utilities Department or City incentives. INCORPORATED INTO THE MOTION WITH CONSENT OF MAKER AND SECONDER to change the latter half of 2 to “greater implementation of EV charging stations and/or EV charging banks of stations.” And to add after “including Utilities Department or City incentives” “to ask staff to consider revising fee structure based on the number of stations at number of potential EV station banks.” INCORPORATED INTO THE MOTION WITH CONSENT OF MAKER AND SECONDER to change number 5) in the original motion to read “announce at the EV celebration to be hosted at Palo Alto City Hall on September 25, 2013, that Palo Alto will be a leader in the nation in the installation of EV stations by mandating that all new single family housing units be required to install the necessary rough in circuitry.” And to change 2) to read “direct Staff to return to P&S and subsequently Council with a draft program to bring about greater implementation of EV charging stations at commercial, multi-family and mixed use facilities, potentially including Utilities Department or City incentives.” MOTION PASSED: 9-0 ACTION Page 4 of 4 City Council Meeting Final Action: 9/23/13 9. Approval of Response to Grand Jury Report on Law Enforcement Public Complaint Procedures. MOTION: Mayor Scharff moved, seconded by Vice Mayor Shepherd to approve the Staff recommended response, Attachment A of the Staff Report, to the 2012-2013 Santa Clara County Civil Grand Jury Report entitled, “Law Enforcement Public Complaint Procedures” (“Grand Jury Report”). MOTION PASSED: 9-0 ADJOURNMENT: The meeting was adjourned at 9:10 P.M.