PUBLIC HEARING ON RECORDING LIENS ON
PROPERTIES FOR REIMBURSEMENT OF THE
COSTS OF SIDEWALK REPAIRS
COUNCIL AGENDA: 6/13/23
ITEM: 3.7
Presenters:
Rick Bruneau, Director of Finance
John Ristow, Director of Transportation
John Kachmanian, Deputy Director, Finance – Revenue Management
SIDEWALK REPAIR CRITERIA
• Repair areas may include sidewalk, driveway approach, curb & gutter, and/or parkstrip located adjacent to property.
• Repair criteria includes:
Vertical separation of more than one-half (1/2) inch. Ramping: rise or depression of more than one (1) inch within eight (8) inches, in conjunction with a vertical separation.
Hole or opening in a break or construction joint of one (1) inch or more. Breaking away, spalling, or chipping of concrete with a depth of more than one-half (1/2) inch. 2 INITIAL SIDEWALK REPAIR NOTICE
• State law (Streets and Highways Code, Chapter 22 of Division 7, Part 3) and San José Municipal Code (Section 14.16.2200) place responsibility of sidewalk repairs with the adjacent property owner
• Department of Transportation generates a repair notice after inspection determines repairs are needed
• Inspections conducted as the result of community requests and City staff field observations
3 SIDEWALK REPAIRACTIVITY
• Vast majority of sidewalk repairs are completed and resolved successfully • Proposed liens are for property owners who have not reimbursed the City for the expenses associated with City contractor repairs
• FY 2022-23 Sidewalk Repair Activity (through April 30, 2023) 4,887 sidewalk repairs completed
* 68% of repairs completed by property owner
* 32% of repairs completed by City contractor
3,337 property owners completed sidewalk repairs using their own contractor * ~$192K in Sidewalk Repair Inspection Fees
1,550 properties were serviced by City Contractor
* ~$111K in Sidewalk Repair Inspection Fees
* ~$1.84M advanced from the General Fund to repair sidewalks 4 FINANCIAL HARDSHIP PROGRAM
• FY 2022-2023 Financial Hardship Budget (through May 9, 2023) Transportation received 100 requests for sidewalk hardship and approved 89 properties (~$390K) In FY 2021-2022, Transportation approved 117 properties for hardship (~$473K) • Eligibility is based on income guidelines set forth by the U.S. Department of Housing and Urban Development, in accordance with Area Median Income (AMI):
5 Qualifying Income Limits for Financial Hardship
Number of Dependents Below 50% AMI Below 80% AMI
1 $59,000 $92,250
2 $67,400 $105,400
3 $75,850 $118,600
4 $84,250 $131,750
5 $91,000 $142,300
6 $97,750 $152,850
7 $104,500 $163,400
8 $111,250 $173,950
Hardship Support 100% 50%
REPAIRS PROCESS OVERVIEW AND TIMELINE
• Sidewalk Repairs & Noticing (August – October)
3 Repair Notices, including a brochure (with financial hardship information) and property door hangar, are sent to property owner over a 3-month period
If the property owner has not completed the repair work, the City contracts to complete the repair(s) • Invoicing, Payment & Delinquency Process (November – March) After the repair work is completed, Department of Transportation issues an invoice with an amount due and payment due date
If payment is not made by the due date OR the property owner has NOT entered into an agreed-upon payment plan, Finance sends 30-day, 60-day, and final notices • Lien Process (March – August)
City Council approves a memorandum to set a public hearing for the cost of sidewalk repairs Transportation sends two notices of intent to lien to delinquent property owners Transportation hosts administrative conference(s) for property owners to discuss their bill(s) City Council holds a public hearing to record liens on properties for the reimbursement of repairs Special Assessment is placed on the Santa Clara County Secured Property Tax Bill 6 CITY COUNCIL APPROVALTO SET PUBLIC HEARING
• On March 28, 2023, City Council approved a memorandum to set a public hearing for the cost of sidewalk repairs on June 13, 2023
• The memorandum was coordinated with the Department of Transportation, the Office of the City Attorney, and the City Manager’s Budget Office
• The memorandum included the schedule to file sidewalk repair liens on delinquent properties:
7 Action Date
City Council Set Public Hearing March 28, 2023
Department of Transportation Mail First Notice Regarding Administrative Conferences and Public Hearing Date
April 7, 2023
Department of Transportation Mail Second Notice Regarding Administrative Conferences and Public Hearing Date
April 11, 2023
Department of Transportation Conduct Administrative Conferences April 25-26, 2023 City Council
Conduct Public Hearing
June 13, 2023 Adopt Resolution Confirming Director's
Report for Proposed Liens
DELINQUENT SIDEWALK INVOICES PENDING LIEN
• 122 Delinquent Sidewalk Repair
Invoices
• Sidewalk Repair Fees: ~$187K
• Delinquency Fees: ~$54K
• Lien Fees: ~$16K
• T otal: ~$257K
• Average Invoice Balance: ~$2.1K
• Average Invoice Age: ~743 Days
8 RECOMMENDATIONS
a) Conduct a public hearing on recording liens on properties for the reimbursement of the cost of sidewalk repairs;
b) Adopt a resolution confirming the Report from the Director of Finance concerning the delinquent sidewalk repair costs and the assessments contained in the report, and; c) Direct the recording of liens and the placement of charges as set forth therein on the 2023-2024 Santa Clara County Secured Property Tax Bill for the cost of sidewalk repairs.
9 Presenters:
Rick Bruneau, Director of Finance
John Ristow, Director of Transportation
John Kachmanian, Deputy Director, Finance – Revenue Management