Atherton may eliminate a $250,000 penalty cap on building projects that violate the town’s construction time limit provision, given the size and value of homes covered by the rule, according to a town staff report.

City Council members are concerned about the substantial amount of construction at homes in town, which creates noise and more traffic from construction vehicles. A harsher penalty, town officials have said, might help speed up projects.

During a Wednesday, Sept. 18, meeting town staff will introduce an update to a time-limit ordinance that includes a cap on maximum penalties for projects that exceed the time permitted for construction. The council directed staff in June to pursue revising the ordinance, which stipulates that all new building construction, remodeling and renovation projects must be completed in one year, two years or three years, depending on the square footage of the project.

“On several occasions, the cap amount was reached well in advance of the completion of the project,” staff wrote in the Sept. 18 report. “The purpose of the penalty is to incentivize owners to complete projects as quickly as possible, and to penalize in a meaningful way those that fail to complete their construction in a timely manner. With this philosophy, a cap on the maximum penalty that can accrue is not consistent with the objectives of the ordinance, since the level of nuisance from the construction itself continues until the project is completed.”

Since 2015, 13 projects have exceeded the time limit; deposits were forfeited and collected by the town, totaling $538,800, according to the staff report.

Since the town established a strict three-year time limit on even the largest construction projects in 2006, there has been one extension granted by staff.

According to the ordinance, after a 30-day grace period, daily fines are imposed, starting at $200, and increasing to $400 after two months. The fines escalate to $1,000 a day when projects go 121 days beyond the time limit, up to the $250,000 cap.

"I would like to see the penalty begin on day one, and not day 30," said Vice Mayor Rick DeGolia at a June 19 meeting.

City Manager George Rodericks said in a July email that there hasn't been a "significant" change in the number of new single-family residence permits issued. From the beginning of January to the end of June, there have been 24 new permits issued, according to a report he will present to the council at the Sept. 18 meeting.

There were 824 building permits issued over the same time period in 2018. There were 964 open building permits from January to June, greater than the 847 open building permits during the same period in 2018.

Council members and residents have expressed concern about construction in town. In April, resident Dale Sakai wrote to city staff that he has found his "once quiet and private oasis overcome by no less than seven construction projects within one lot of our residence; four of which are either adjoining or across from our property."

Other fees

Town staff recommends that the council authorize a fee study and a fee adjustment based on new hourly pay rates for staff, which could net the town between $180,000 and $210,000 annually, according to a town staff report.

The staff is proposing to do a master study of fees for town services — such as building and and planning permit and facilities rental fees — during the 2020-21 fiscal year, when the town will have a better idea of its potential overhead costs associated with the new civic center.

Staff last conducted a fee study in 2013; it recommended similar studies every three to five years to ensure that the town was using comprehensive overhead rates and to accurately account for the “true cost” of providing town’s various services.

Since 2013, town labor costs have increased 19.5%, planning fees have increased by 5% and valuation-driven fees, such as building permit and plan check fees, have remained consistent.

Staff recommends that fees that have a labor component be increased by 19.5%. It also recommends a 5% adjustment to planning fees followed by a subsequent adjustment in January 2020 once that amount is determined.

For example, a full-day rental of the Carriage House in Holbrook-Palmer Park for over 100 people costs $1,100. With the labor cost increase escalator (19.5%) this changes to $1,315.

The town's municipal code is silent with regard to penalties for property owners or contractors who do construction work without a permit. Staff recommends a penalty of one to three times the amount of the permit fee.

Atherton building officials can issue a stop-work order, which can carry a penalty that is 50% of the permit cost. Other than this, the master fee schedule does not address work conducted without a permit. It has been the practice of the town to work with residents who have performed work without required permits to obtain them to ensure compliance in the future, according to the staff report.

At the same meeting, the council will consider adopting a green infrastructure plan, which is required by the San Francisco Bay Area Regional Water Quality Control Board.

The plan outlines how the town will shift from traditional “gray” storm drain infrastructure — which channels runoff directly into receiving waters without treatment — to a more resilient and sustainable “green” stormwater system that captures, stores and treats stormwater before channeling it to receiving waters or allowing it to infiltrate the ground.

The council could also include stormwater treatment as part of the grading and drainage requirements for certain single-family residential development projects.

The full meeting agenda can be read here.

The meeting begins at 7 p.m. in Holbrook-Palmer Park’s Pavilion at 150 Watkins Ave.

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