HomeMy WebLinkAboutStaff Report 4086 City of Palo Alto
COLLEAGUES MEMO
September 23, 2013 Page 1 of 3
(ID # 4086)
DATE: September 23, 2013
TO: City Council Members
FROM: Council Member Holman, Council Member Berman, Vice Mayor
Shepherd, Council Member Price
SUBJECT: COLLEAGUE'S MEMO FROM VICE MAYOR SHEPHERD, COUNCIL
MEMBERS BERMAN, HOLMAN, AND PRICE REGARDING BUILDING CODE AND
STALLED CONSTRUCTION
Recommendation
Council direct staff to draft an ordinance that amends the Municipal Code regarding completion
of residential construction projects in a timely manner. The ordinance should address two
issues: 1) the imposition of time limits for building permits; and 2) daily penalties for projects
that exceed the life of a building permit.
While delays in residential construction projects have created a need for immediate action by
Council, we also ask staff to 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.
Furthermore, this draft shall be reviewed by Council’s Policy and Services Committee for final
recommendation to Council.
Background
Home remodels and new construction projects in Palo Alto’s neighborhoods can cause periodic
traffic, parking, noise, and visual impacts for community residents and businesses. Although
the City encourages prompt completion of construction projects construction can sometimes
stall, at times for a few months but occasionally for years. There may be a wide variety of
reasons for the delay ranging from funding issues, to bad design or contracting, to neglectful
property owners. No matter the reason, the resulting incomplete construction project can
become an eye-sore, attractive nuisance and a problem for the residents and neighborhood.
These incomplete projects detract from neighborhood quality of life and residents deserve an
ordinance that they can rely on to ensure that housing projects start and finish in a reasonable
amount of time.
The Municipal Code does not have specific construction timelines. A building permit can be
extended indefinitely so long as an owner completes enough work in a six-month period to
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progress to the next level of inspection. If a permit expires, there is no requirement or
incentive in the Municipal Code to renew the permit and finish the project.
Incomplete construction can cause a number of problems: unfinished buildings cause visual
blight; construction fencing can obstruct the view of pedestrians and motorists; and unsecured
buildings can present numerous safety concerns since the properties may become destinations
for unlawful or risky behaviors. Ideally, these situations can be resolved quickly and amicably.
However, when projects are stalled indefinitely or abandoned, Palo Alto must have an
ordinance that encourages their swift completion.
Recommendation
In order to address the issue of delays in completion of construction projects, we propose that
the City Council direct staff to prepare an ordinance, which will be first reviewed by the Policy
and Services Committee, which amends the Municipal Code in two areas:
1. The City of Palo Alto should adopt specific time limits for residential building permits.
The maximum life of a building permit should vary depending on the estimated dollar
value of the project.
2. The City of Palo Alto should adopt daily penalties for projects that exceed the life of a
building permit. Penalties should increase the longer a project is delinquent.
We also ask that staff 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.
Stalled construction is an issue in many communities. Several neighboring jurisdictions have
already adopted similar ordinances to address the numerous problems associated with stalled
or abandoned construction projects. For background information, we have attached two
examples of how nearby cities have addressed this issue through their respective municipal
codes.
Although this proposed ordinance would not apply to existing projects unless a new building
permit is issued, it would give City staff an important enforcement tool going forward. We urge
our colleagues to join us in directing staff to prepare an ordinance addressing delinquent
construction projects.
Staff Impact
Staff time will be spent drafting the ordinance and managing the local code amendment
process. Development Services staff will make applicants and/or homeowners aware of the
building permit time limit ordinance during the permit issuance stage. They will also track and
monitor expired permits subject to the ordinance to ensure compliance. Those expired permits
that warrant further action will involve the Code Enforcement Division of the Planning and
Community Environment Department, and potentially the City Attorney’s Office, on an as-
needed basis. Development Services, Code Enforcement and City Attorney staff resources
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needed to enforce the ordinance could range from minimal to significant, depending on the
number and complexity of enforcement proceedings required.