PUBLIC HEARING ON RECORDING LIENS ON
PROPERTIES FOR REIMBURSEMENT OF THE
COSTS OF SIDEWALK REPAIRS
COUNCIL AGENDA: 6/17/25
Presenters:
Maria Öberg, 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 and 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
• Sidewalk repairs may include curb, gutter, driveway approach, and/or parkstrip area • 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 REPAIR ACTIVITY
• 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 2024-2025 Sidewalk Repair Activity (through May 8, 2025) 5,296 sidewalk repairs completed
* 68% of repairs completed by property owner
* 32% of repairs completed by City contractor
3,606 property owners completed sidewalk repairs using their own contractor * ~$245.5K in Sidewalk Repair Inspection Fees
1,690 properties were serviced by City Contractors
* ~$185.9K in Sidewalk Repair Inspection Fees
* ~$1.43M advanced from the General Fund to repair sidewalks 4 FINANCIAL HARDSHIP PROGRAM
• FY 2024-2025 Hardship Budget (through May 8, 2025)
Transportation received 289 requests for sidewalk hardship and approved 124 properties (~$391K) In FY 2023-2024, Transportation approved 74 properties for hardship (~$282K) • 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 $64,550 $102,300
2 $73,750 $116,900
3 $82,950 $131,500
4 $92,150 $146,100
5 $99,550 $157,800
6 $106,900 $169,500
7 $114,300 $181,200
8 $121,650 $192,900
Hardship Support 100% 50%
REPAIRS PROCESS OVERVIEW AND TIMELINE
• Sidewalk Repairs and Noticing (August – October)
3 Repair Notices, including a brochure (with 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 and 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 APPROVAL TO SET PUBLIC HEARING
• On April 15, 2025, City Council approved a memorandum to set a public hearing for the cost of sidewalk repairs on June 17, 2025
• 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 April 15, 2025
Department of T ransportation Mail First Notice Regarding Administrative Conferences and Public Hearing Date
April 22, 2025
Department of T ransportation Mail Second Notice Regarding Administrative Conferences and Public Hearing Date
April 29, 2025
Department of T ransportation Conduct Administrative Conferences May 6-7, 2025 City Council
Conduct Public Hearing
June 17, 2025 Adopt Resolution Confirming Director's
Report for Proposed Liens
DELINQUENT SIDEWALK INVOICES PENDING LIEN
• 99 Delinquent Sidewalk Repair
Invoices
• Sidewalk Repair Fees: ~$248.5K
• Delinquency Fees: ~$42K
• Lien Fees: ~$16.5K
• T otal: ~$307K
• Average Invoice Balance: ~$3K
• Average Invoice Age: ~545 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 2025-2026 Santa Clara County Secured Property Tax Bill for the cost of sidewalk repairs.
9