Attachment 2
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE TOWN OF ATHERTON CREATING CHAPTER 15.41 OF THE ATHERTON MUNICIPAL CODE REGARDING
CONSTRUCTION TIME LIMITS
WHEREAS, on October 7, 2026, the City Council held a duly noticed public hearing as prescribed by law to introduce and consider the first reading of the creation of Chapter 15.41 of the Atherton Municipal Code and receive public comment.
WHEREAS, on October 21, 2026, the City Council held a duly noticed public hearing as prescribed by law to waive the second reading and consent to adoption of Chapter 15.41 of the Atherton Municipal Code.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Atherton that Chapter 15.40 of the Atherton Municipal Code shall be hereby amended, based on the findings, supported by substantial evidence in the record, as follows:
The City Council of the Town of Atherton does hereby ordain as follows:
SECTION 1. RECITALS. The recitals set forth above are true and correct and are hereby incorporated herein by this reference as if fully set forth in their entirety.
SECTION 2. AMENDMENT TO CODE. Chapter 15.41, "Construction Time Limits", is hereby added to the Atherton Municipal Code to read as follows:
Chapter 15.41
CONSTRUCTION TIME LIMITS
15.41.010 Application.
Chapter 15.41 shall apply to all building construction (including, but not limited to: all additions, alterations, substantial remodels, repairs, demolition projects, and all other improvements) requiring a building permit, and landscaping related to such building construction.
15.41.020 Construction completion.
Construction shall be complete upon the final performance of all construction work other than exempted landscaping as determined by the Building Official, including, but not necessarily limited Attachment 2
to, exterior repairs and remodeling, full compliance with all conditions of application approval, and the clearing and cleaning of all construction-related materials and debris from the site. Final inspection and approval of the construction work by the town shall mark the date of construction completion. Deadlines for the completion of landscaping are set forth in Section 17.50.060.
15.41.030 Construction Time Limits.
Building Permit Valuation
Construction Time Limit
Including New Construction, Additions,
Alterations, Modifications, Repairs and
Improvements
2,000 square feet or less 12 months from original building permit issuance 2001 – 4,000 square feet 24 months from original building permit issuance Greater than 4,001 square feet 36 months from original building permit issuance Time limits will not be increased by issuance of subsequent building permits for the same project.
15.41.040 Penalties.
A. If a property owner fails to complete construction by the applicable time limit established in this chapter, the property owner shall be subject to the following penalties payable to the town:
Period of Time That Project Remains
Incomplete Beyond Applicable Time Limit
Penalty
First 30 days -0-
Attachment 2
Period of Time That Project Remains
Incomplete Beyond Applicable Time Limit
Penalty
31st through 60th day $200.00 per day (i.e., $6,000.00 maximum penalty applicable to this 30-day period)
61st 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 $1,000.00 per day
B. Penalties, fees and costs due to the town pursuant to this chapter are due each day as the penalties accrue.
15.41.050 Deposit.
A. Upon reaching the time limits set out in Section 15.41.030, if construction has not been completed, if no final inspection has been made or a certificate of occupancy issued, the property owner or his representative shall deliver to the building department a deposit (in cash or a certificate of deposit or in the form of a payment penalty bond) in the amount of thirty thousand dollars. Any bond shall be in the amount of the deposit and in form and contents satisfactory to the town and shall cover a minimum time period of two years. Penalties assessed in Section 15.41.040 shall be deducted from the deposit and paid to the town.
B. If no deposit is made as provided in subsection A of this section, the building official shall issue a stop work order.
C. If a property owner fails to complete construction by the applicable time limit, the applicable penalties shall accrue daily up to the maximum set out in Section 15.41.040.
D. On or before the one hundred twentieth day that the project has remained incomplete, no final inspection has been made and no certificate of occupancy issued, the property owner or his representative shall deliver to the building department a deposit (in cash or in the form of a certificate of deposit or a payment penalty bond) in the amount of two hundred twenty thousand dollars. Any bond shall be in the amount of the deposit and in form and contents satisfactory to the town which shall cover a minimum time period of two years. Penalties assessed in Section 15.41.040 shall be deducted from the deposit and paid to the town.
E. If no deposit is made as provided in subsection D of this section, the building official shall issue a stop work order.
Attachment 2
F. If the owner believes that the failure to meet the applicable time limit was caused by circumstances beyond the owner’s control, the owner may submit a written statement to that effect with the building official at the time of making the deposit as described in subsections A and/or D of this section and provide any documentation substantiating such grounds and the effect on the construction. If the building official accepts the owner’s explanation, no part of the deposit shall be forfeited to the town and no demand shall be made against the bond if construction is completed within thirty days of the deposit. If construction is completed after the thirty days and the building official concurs with the owner’s statement as to the cause of the failure to meet the deadline, the building official shall waive the penalty and return the cash deposit, certificate of deposit, or bond to the owner. If the building official does not concur with the owner’s statement, it shall be treated as an appeal under Section 15.41.060 and all the provisions of that section shall apply.
G. If construction is completed after the applicable time limit, and the building official does not concur with the owner’s statement, the town shall draw on the deposit, certificate of deposit, or bond in the amount of the applicable penalties; provided, however, that in the event of an appeal, the town shall not draw on the deposit, certificate of deposit, or bond until the planning commission and, if applicable, the city council has rendered its decision as set forth in Section 15.41.060(A).
H. After construction is completed and all applicable penalties received by the town, any remaining deposit shall be refunded or the certificate of deposit or bond shall be returned to owner.
15.41.060 Appeal.
A. A penalty imposed may be appealed to the planning commission on the grounds that the property owner was unable to comply with the applicable time limit for reasons beyond the control of the property owner and the owner’s representatives. There shall be no right to appeal until construction is completed. Any person aggrieved by the decision of the planning commission on the appeal may appeal to the Atherton city council. The provisions of Chapter 17.06 of the Atherton Municipal Code shall apply to the appeal process.
B. At the time the appeal is filed or within two weeks thereafter, the appellant shall submit documentary and other evidence sufficient to establish that design decisions, construction drawings and documents, bids and construction contracts, permit applications, and compliance with all required permit conditions were undertaken in a diligent and timely manner. Documentary evidence shall include, but not be limited to, dated design contracts, date-stamped plans, dated construction contracts and material orders, and proof of timely payment of any deposits or fees required pursuant to any of the foregoing items. The documentary and other evidence shall demonstrate that construction delays resulted from circumstances fully out of the applicant’s control and despite diligent and clearly documented efforts to achieve construction completion within the applicable time limit. Penalties shall not be modified or waived unless all evidence required by this subsection is submitted at the time of appeal.
Attachment 2
15.41.070 Enforcement.
Any penalty due under Section 15.41.040 in excess of the deposit made under Section 15.41.050 shall be a personal debt owed to the town by the property owner(s) and, in addition to all other means of enforcement and collection, shall become a lien against the property and shall be subject to the same penalties (including interest thereon at the maximum rate allowed by law from the date the lien attaches until the date of payment) and the same procedure and sale in case of delinquency as provided for ordinary municipal taxes.
15.41.080 Violations.
A. A violation of this chapter is a misdemeanor and shall be punished as provided in Section . A civil action may be commenced to abate, enjoin, or otherwise compel the cessation of violation of any provision in this chapter. In a civil action brought pursuant to this chapter in which the town prevails, the court may award to the town all costs of investigation and preparation for trial, the costs of trial, reasonable expenses including overhead and administrative costs incurred in prosecuting the action, and reasonable attorney fees.
B. As part of a civil action brought by the town, a court may assess against any person who commits, allows, or maintains a violation of any provision of this chapter a civil penalty in an amount not to exceed five thousand dollars per violation. The civil penalty is separate and distinct from penalties imposed pursuant to this Chapter.
C. Upon any guilty plea or judgment or conviction, in any criminal proceeding brought for the violation of this chapter, where the defendant is entitled by law to probation, then the court may require the payment to the town of the costs and expenses as described above and the code provision incorporated by reference as one of the conditions of such probation.
D. The building official is authorized to order work stopped whenever work is being done contrary to the provisions of this chapter.
SECTION 3: SCOPE. Except as set forth in this Ordinance, all other provisions of the Atherton Municipal Code shall remain in full force and effect.
SECTION 4: SEVERABILITY. The City Council hereby declares it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provision in the Ordinance severable and, if for any reason any sentence, paragraph, or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.
Attachment 2
SECTION 5: NO MANDATORY DUTY. This Ordinance is not intended to and shall not be construed or given effect in a manner that imposes the City or other officer or employee thereof a mandatory duty of care towards persons and property within or without the City, so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
SECTION 6: EFFECTIVE DATE. This Ordinance shall be posted in at least three public places according to law and shall take effect and be in force from and after 30 days after its passage and adoption.
Introduced on the 7th of October 2026.
Passed and adopted as ordinance of the City Council of the Town of Atherton at a regular meeting thereof held on the ___ day of ___ 2026 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________
STACY HOLLAND, MAYOR
ATTEST:
_____________________________
ANTHONY SUBER, CITY CLERK