9 9
9 DATE: August 18, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Thai-Chau Le, Planning Manager
Marcel Stevenson, Code Enforcement Officer
DEPARTMENT: Community Development
SUBJECT: APPEAL OF TANDOORI PIZZA RESTAURANT PURSUANT TO SECTION 1.04.110 FOR WAIVING PENALTY FEES RELATED TO
A STOP WORK ORDER NOTICE FOR UNPERMITTED TENANT
IMPROVEMENT WORK
RECOMMENDATION
It is recommended that the City Council consider an appeal requesting waiving of the penalty fees for a stop work order notice issued for unpermitted tenant improvements located at 1031 E. Hillsdale Boulevard, Unit B; take testimony and conduct the appeal hearing in accordance with the City’s adopted procedures; deliberate, and by Minute Order, provide direction to staff on one of the following options: (1) deny the appeal and direct the appellant to pay the full amount of Penalty Fees; or (2) uphold the appeal and waive the Penalty Fees; and find that the request is exempt from the California Environmental Quality Act (CEQA) under CEQA guidelines Section 15061(b)(3).
EXECUTIVE SUMMARY
On April 9, 2025, the Code Enforcement (CE) Officer issued a Stop Work Order (SWO) for interior tenant improvements for work without a permit for Tandoori Pizza restaurant located at 1031 E. Hillsdale Blvd, Unit B (Appellant). See Attachment 1 for the SWO issued and posted on the site at the time.
9 9
9 The Appellant applied for a building permit on May 21, 2025, 42 days after the SWO notice was issued. Per the Master Fees and Service Charges Schedule (Fee Schedule), the City advised the Appellant that they owed a Penalty Fee, which includes $753 flat fee + 200% for permits applied for after 30 days.
The Appellant is requesting to waive the Penalty Fee in the amount of $9,095.12.
Pursuant to Section 1.01.110 Appeal of the Foster City Municipal Code (FCMC), a person aggrieved by an administrative action taken by any officer of the City under this code may appeal from the action to the City Council. Thus, the Appeal is being presented to the City Council for consideration.
BACKGROUND
California Building Code (CBC) Section 105.1 Permits includes that “Any owner or owner’s authorized agent who intends to construct, enlarge, alter, repair, move, demolish or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert or replace any electrical, gas, mechanical or plumbing system, the installation of which is regulated by this code, or to cause any such work to be performed, shall first make application to the building official and obtain the required permit.”
CBC Section 105.1 is adopted by reference in FCMC Chapter 15.02. Additionally, CBC Section 109 in FCMC Section 15.02.100 specifies that fees shall be assessed in accordance with the provisions of FCMC Chapter 15.02 as set forth in the fee schedule adopted by resolution by the City Council.
On April 8, 2025, City staff received a call regarding construction activity at 1031 E.
Hillsdale Blvd, Unit B, which was being conducted without the required building permit as required by CBC Section 105.1. The following day, the CE Officer visited the site and confirmed that no building permit had been applied for or issued. This led to the issuance of a SWO notice, notifying the tenant to stop unpermitted work and cite relevant CBC section and the applicable fees (Attachment 1).
Following this, the Appellant met with the Chief Building Official (CBO) and CE Officer on April 14, 2025, to discuss the building permit process. At the time, staff reiterated the penalty fees associated with work performed without permits if permits are not secured within set timeframes.
On May 21, 2025, the Appellant applied for a building permit, 41 days after the SWO notice was issued. Since the building permit application was made after the 30-day window, the Penalty Fee (Fee Schedule Ref. No. CDB-07) was applied to the Appellant in the amount of $9,095.12.
9 9
9 Master Fees and Service Charges Schedule (FY2024-25) 1 line item CDB-07 details out the Penalty Fee as follows:
REF. NO. REVENUE TITLE Fees
CDB-07 Penalty Fee - Building Division
a. R-1 permit applied* within 10 days - $376 processing fee;
permit applied* 11-30 days-$376 processing fee +
100% permit fee;
permit applied* after 30 days-$376 processing fee +
200% permit fee
b. Others permit applied* within 10 days - $753 processing fee permit applied* 10-30 days - $753 processing fee +
100% permit fee
permit applied* after 30 days - $753 processing fee +
200% permit fee
Staff would like to note that prior to Fiscal Year 24-25, the Penalty Fee for unpermitted work included a flat processing fee and 200% permit fee regardless of how long an applicant took to apply for permits. As part of the FY 24-25 Budget preparation process, staff recommended changing it to a tiered Penalty Fee structure based on the amount of time it took an applicant to apply for permits and increase the penalty if the violation is not abated in a timely manner. The intent of the tiered Penalty Fee structure was to encourage the applicants/property owners to apply for a building permit within ten (10) days of notice. When an application is submitted after 10 days, a 100% or 200% of permit fee is imposed on top of the flat processing fee. The flat processing fee of $753 for non- residential work covers the cost that the City incurs for the initial inspection(s) and permit processing. The penalty of an additional 100% and 200% of the permit fee is intended to also discourage individuals from undertaking construction project without proper permits, encourage prompt collaboration with the City toward corrective actions (i.e. building permits), and to recover costs in administering the permitting process, conducting inspections, and enforcing regulations.
Currently, the building permit application for the subject property is under review. The detailed request is attached as Attachment 2.
ANALYSIS
On July 1, 2025, the Appellant requested that the City waive the Penalty Fees in the amount of $9,095.12 (Attachment 3). The request notes that they missed the timeline and associated fees noted on the SWO notice due to a calendaring error. The Appellant further notes that if they were aware of the fees, they would have ensured that the architect expedited the plan submission.
1 At the time the fee was imposed, the FY 2025-2026 Master Fees & Service Charges Schedule had not yet been adopted.
9 9
9 As per the Fee Schedule, Penalty Fees for a permit(s) applied after 30 days amount to $753 plus 200% of the permit fee. The building permit fee (based on the valuation of the work) for the tenant improvements work at the subject property is $4,171.06, and the Penalty Fee for the proposed permit is in the amount of $9,095.12.
The building permit is still under review and the second plan check comments were sent to the appellant on August 4, 2025, with corrections required from both the Building Division and San Mateo Consolidated Fire Department (SMCFD).
For Council’s consideration, staff has attached a detailed timeline associated with the CE case for the SWO notice (Attachment 2).
The Fee Schedule for Fiscal Year 2024-2025 was adopted by the City Council and staff does not have the authority to waive or reduce any fees. The appeal process is in place for the City Council to consider all facts of the matter, deliberate and take action.
The Council should conduct the appeal hearing to hear the Appellant’s position and determine whether to deny or uphold the appeal. If the Council denies the appeal and directs the Appellant to pay the full amount of the Penalty Fees, the fees will have to be paid prior to the issuance of the building permit. The Council could also decide to waive the fees if the Council determines there are facts that warrant waiving the fees in this case. Pursuant to FCMC 1.04.110, the decision of the City Council taken after the Appellant has had an opportunity to be heard is final.
CEQA
Categorically Exempt pursuant to CEQA Guidelines Section 15061(b)(3).
FISCAL IMPACT
The Penalty Fee is intended to recover costs for staff time associated with work without permits and to encourage the applicants/property owners to apply for a building permit within ten (10) days.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 – Stop Work Order Notice
Attachment 2 – Case Details
Attachment 3 – Appeal Letter