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HomeMy WebLinkAboutItem 07 - Implementation of the Higuera Street Sidewalk Repair Project (Spec. 91320)Item 7 GtT Y O fiCouncil Agenda Report ti Department Name: Public Works Cost Center: 5006 For Agenda of: January 12, 2021 Placement: Public Hearing Estimated Time: 45 Minutes FROM: Matt Horn, Director of Public Works Prepared By: Brian Nelson, Supervising Civil Engineer SUBJECT: HIGUERA STREET SIDEWALK REPAIR, SPECIFICATION NO. 91320 RECOMMENDATION 1. Receive a report on the cost to implement Higuera Street Sidewalk Repairs; and 2. Receive any objections or protests of cost by property owner of 858-860 Higuera Street; and 3. Authorize staff to recover the costs for Higuera Street Sidewalk Repairs in the amount of $66,080 for project related costs; and 4. Adopt a resolution (Attachment A) imposing an Administrative lien on the 858-860 Higuera Street property if the property owner fails to pay the cost recovery. DISCUSSION Background In the 2007-09 Financial Plan, the City Council approved a Major City Goal for Downtown Maintenance and Beautification. Past work has included street resurfacing, pedestrian light installation, new Mission -Style sidewalk, tree and tree grate maintenance, new trash cans, street and traffic light pole painting, and other similar improvements. This has been an ongoing effort to maintain and enhance the Downtown. When the initial Downtown Renewal project was implemented in 2012, a small section of the sidewalk located in front of 858 & 860 Higuera Street (Attachment B) was not included in the work as it was discovered there was a basement space below the sidewalk. The sidewalk, which was acting as the ceiling for the basement below it, required specialized engineering and this work became its own separate project. State and City Sidewalk Maintenance and Replacement The City of San Luis Obispo's Municipal Code Section 12.16.020, which incorporates the procedure set forth in the Streets and Highway Code Division 7, Part 3, Chapter 22, indicates the property owner is responsible for the maintenance and repair of sidewalk adjacent to their propeLly. The City has a long history of assisting property owners with this work in Downtown, the Railroad District, and throughout the City to mitigate trip and fall issues and implement improvements for pedestrian mobility, such as curb ramps. Packet Page 73 Item 7 The City can compel property owners to repair or maintain the sidewalk adjacent to their property if it is in such a condition to endanger persons or property or interfere with the public convenience in the use of such sidewalk. This process is conveyed in the Streets and Highway Code (Attachment C), which requires the City to issue the property owner a Notice of Correction. As indicated in the Code, following the Notice of Correction, the property owner has two weeks to start the work. At the end of the time period, if the property owner has not started this work, the City may complete the work and seek reimbursement for its costs. If the property owner fails to pay the cost for repair, the Council may authorize a lien on the property for the same amount to eventually obtain reimbursement for the costs. A lien is a form of security interest over the property to secure the payment of the debt. A lien does not require immediate foreclosure, and thus, allows the property owner time to pay off its debt to the City. This final action of seeking cost reimbursement is the subject action of this report. 858 & 860 Higuera Sidewalk Replacement Project and Property Owner Notice of Correction In March 2019, a small chunk of the sidewalk located at 858 & 860 Higuera broke off and fell into the basement. This event indicated that the sidewalk was deteriorating, and replacement was urgently needed. The City had design documents ready for this work, but due to recent building code revisions, the design needed to be updated. The design documents were updated, and staff reinitiated coordination of this project with the property owner, tenants, adjacent businesses in Downtown SLO. Because of the basement under the sidewalk, the cooperation of the property owner and tenants of 858 & 860 Higuera Street was essential to the completion of the project. On November 19, 2019, the City Council considered this project and approved staff s recommendation to formally issue a Notice of Correction to the property owner of 858 & 860 Higuera Street indicating that the replacement of the sidewalk was the property owners' responsibility, and they must start this work within two weeks of this notification. If the property owner did not take action, concurrently, the City would advertise for bids for this work, fully fund the construction cost of this project, and consider seeking future reimbursement. This action allowed the deteriorating sidewalk to be replaced as quickly as possible, created a condition where cooperation with the City to replace this sidewalk was in the property owners best interest, and secured the City's ability to seek cost reimbursement from the property owner after the project was complete. (Attachment D). In compliance with the Streets and Highway Code, staff issued a Notice of Correction to the property owner on January 2, 2020 and a second Notice of Correction on January 9, 2020. The City's design documents were also provided to the property owner so that the property owner could solicit bids of their own. The Streets and Highway Code mandates that the private property owner start construction within two weeks of the issued Notice of Correction. Therefore, the property owner was required to start construction on or before January 16, 2020 (Attachment F). Concurrent with issuing the Notices of Correction, the City was advertising the project for construction bids. Since no response was received from the property owner and no construction work had begun by January 16, 2020, the City awarded a contract to Brough Construction (the "Contractor") to complete the sidewalk replacement work. Packet Page 74 Item 7 Brough Construction started the sidewalk project on March 9, 2020 and completed the work on April 28, 2020. Included in the design documents were several restrictions placed upon the contractor that were intended to reduce the project impacts on businesses in the Downtown. However, due to COVID-19, a Shelter at Home Order was issued by the County of San Luis Obispo and many businesses in the Downtown had been closed. The Contractor was able to complete the work three weeks ahead of schedule since daytime work was allowed and access to adjacent businesses was not needed. During construction, the owners of the impacted businesses around the sidewalk area of repair fully cooperated with the City and the Contractor to expedite this project. The owner of the only store that had access to the basement initially refused to let the Contractor or the City go through his store to get to the basement area for construction purposes; however, access to the basement area was granted during the bidding period to the City and contractors for viewing purposes only. After the mandated closure of his business due to COVID-19, access through the store for the Contractor and City Inspector was granted. By that time, the City and the Contractor had developed an alternate plan to access the basement completely through the public right of way. Below is a summarized timeline of the above discussion. Date Summary Timeline Event July 2007 07/09 Financial Plan Adopted - Council Approves MCG for Downtown Beautification Summer 2012 Initial Downtown Renewal Project — Sidewalk at 858 & 860 Higuera not included due to basement and structural sidewalk complexities. Engineering design work begins. Construction deferred until funding appropriated by a future financial plan. March 2019 Small chunk of sidewalk breaks off and falls into basement of 858 Higuera. Staff utilize available funding to begin finalizing of the project design to current codes and standards. June 4, 2019 19/21 Financial Plan Adopted — Council appropriates $190,000 to support project construction. June 12, 2019 Property owner grants a Right of Entry for access to the basement. Access is used for finalizing engineering plans and specifications for the structure supports of the sidewalk, as well as updating cost estimates. Included with Attachment G August 1, 2019 Staff receive updated construction cost estimates showing insufficient funding exists to support the project. September 30, 2019 Staff communicate cost increases to the property owner stating that the project is underfunded, and request property owner participation in cost sharing of the work. Additionally, staff request greater access to the basement to potentially reduce construction costs (Attachment E). Since the initial Right of Entry signed on June 121, 2019, access had been further limited due to concerns of business owners at the property. No response to the September 30, 2019 letter was received. November 19, 2019 Council authorizes staff to advertise for construction of the Higuera Sidewalk Repair project, and direct staff to send the property owner a Notice of Correction. Attachment D January 2, 2020 First Notice of Correction letter sent Attachment F January 9, 2020 Second Notice of Correction letter sent Attachment F January 16, 2020 Construction contract awarded to Brough Construction March 9, 2020 Construction work begins March 15, 2020 Regional shelter at home orders issued due to Covid-19 Pandemic. With resulting business closures, this allowed work to be accomplished during the day, reducing construction duration. April 28, 2020 Construction completed ahead of schedule Packet Page 75 Item 7 The cost and funding for this work is shown in the table below. Construction Cost: Construction Contingencies Spent: Engineering Costs: Special Inspection: Total Estimated Project Cost: Proposed FY19-20 Funding Allocation: Project Budget: Project Costs: Budget Remaining: $255,480 $9,378 $2,468 $1,385 $275,561 $350,000 $275,561 $74,440 Cost of Construction and Staff Recommendation Staff evaluated the total construction cost of the work and categorized those cost into two categories. Those categories are cost associated with work due to the basement under the sidewalk and the cost associated with sidewalk construction shown below. Sidewalk Costs: $66,080 Basement Costs: $202,631 Total Project Cost: $275,561 Typically, a sidewalk replacement project requires design for the sidewalk, curb, and gutter, which would be done by staff. Due to a basement space being underneath the sidewalk at this location, it required the services of a structural engineering consultant to provide design documents. The majority of the design work, and ultimately the construction cost, was for the structural support at the basement level for the sidewalk above. This work was comprised of careful demolition and removal of the existing sidewalk, installation of new footings for a new structural beam and decking that supports the sidewalk, and temporary relocation and re -installation of utility lines and valves. The sidewalk costs are those direct costs for installation of sidewalk adjacent to 858 & 860 Higuera Street. Packet Page 76 Item 7 After evaluation of the cost, staff reviewed the following five reimbursement options as follows: Option Description 1 Convey all project cost to the private property owner. This option would require the private property owner to provide the City compensation in the amount of $275,561. This option requires the private property owner to fund the full cost of the project. Total Cost to City: $0 or 0% of total project cost Total Cost to Private Property Owner: $275,561 or 100% of total project cost 2 Convey all project cost to the private property owner and issue the private property owner a credit in the amount of $66,080. This option would require the private property owner to provide the City compensation in the amount of $209,481 to fund the full cost of the basement work and design cost associated with the basement work. Total Cost to City: $66,080 or 24% of total project cost Total Cost to Private Property Owner: $209,481 or 76% of total project cost 3 Convey all project cost to the private property owner and issue the private property owner a credit in the amount of $209,481. This option would require the private property owner to provide the City compensation in the amount of $66,080 to fund the full cost of the sidewalk work only. Total Cost to City: $209,481 or 76% of total project cost Total Cost to Private Property Owner: $66,080 or 24% of total project cost 4 Convey all project cost to the private property owner and issue the private property owner a credit of some amount determined by Council. This option would allow Council to size the credit to ensure the private property owner receives the same level of service as other downtown businesses where the City has replaced sidewalks. Total Cost to City: To Be Determined by Council Total Cost to Private Property Owner: To Be Determined by Council 5 Do not convey any of the project cost to the private property owner. This option would not require the private property owner to provide any compensation to the City. Total Cost to City: $275,561 or 100% of total project cost Total Cost to Private Property Owner: $0 or 0% of total project cost Staff is recommending to Council option three, crediting the private property owner $209,481, for a total reimbursement amount of $66,080 to the City. This recommendation would offset about 24% of the overall project cost to the City, or $66,080, and provides a high level of service to this property. Packet Page 77 Item 7 This option only requires the property owner to reimburse the City for the sidewalk work, the cost of which is consistent with what would be expected to repair a similar sidewalk segment in the downtown. This recommendation remains consistent with the Municipal Code requirements for property owners to repair and maintain sidewalks adjacent to their property. Previous Council or Advisory Body Action On November 19, 2019, the City Council approved staff to advertise the project for construction bids and authorized the City Manager to award a construction contract to the lowest responsible bidder. Policy Context Section 12.16.020 of the Municipal Code references the State of California's Streets and Highway Code that indicates the adjacent property owner of public sidewalks are required to maintain these sidewalks (Attachment C). At the November 19, 2019 City Council meeting, the Council directed staff to issue a Notice to Correct to the property owner, requiring the owner to start the sidewalk replacement work and pursue diligently until complete. The issuance of a Notice to Correct requires that, if the owner failed to start this work within two weeks, the City could then complete the necessary work. Further, upon completion of this work, the final cost of the work would be presented to City Council in a Public Hearing in which City Council would make the final determination on whether to lien the property to eventually obtain reimbursement for this cost (Attachment D). The City has a past practice, in many instances, particularly those areas of the downtown where the sidewalk is used intensively by the public, to maintain and repair it in the interest of public safety. Public Engagement The Property Owner of 858-860 Higuera Street was provided staff s recommendation for review and comment on October 20, 2020 and again on December 14, 2020. On December 16, 2020, the property owner responded to this draft report to provide an additional attachment and clarification, which have now been included in this report. Additional prior written correspondence received from the Property Owner is from June 2, 2020, regarding concerns about payment for the sidewalk replacement (Attachment G). This letter does not regard the recommendation or content of this staff report. CONCURRENCE The recommended actions are supported by the Administration Department. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a "Project" under CEQA Guidelines Sec. 15378. Packet Page 78 Item 7 FISCAL IMPACT Budgeted: Yes Funding Identified: Yes Budget Year: 2019-20 Funding Sources Total Budget Available Total Budget Spent Remaining Balance Annual Ongoing Cost General Fund: $350,000 $275,561 $74,440 $0 Cost Recovery: $66,080 Total 1 $350,0001 $275,5611 $140,520 $0 The total available project budget was $350,000, which includes the original 19/20 Financial Plan appropriation of $190,000, as well as $160,000 in additional funding approved by Council to support the project due to cost increases (Attachment D — Fiscal Impact Section). The recommended cost recovery will provide $66,080 of funding that would increase the remaining balance of the project account from $74,440 to $140,520. This funding could be used to supplement an underfunded project or for a new CIP project. ALTERNATIVES 1. Options One through Five. The Council could choose not to collect any payment or require payment of variable amounts up to the entire project cost. Attachments: a - Draft Resolution b - Vicinity Map c - Streets and Highway Code Sections 5610-5618 d - COUNCIL READING FILE - Council Report and Minutes dated 11/19/2019 e - Notice Letter to Property Owner dated 09/30/2019 f - Notice of Correction Letters to Property Owner g - Building Owner Letter Packet Page 79 Item 7 RESOLUTION NO. (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING STAFF TO RECOVER THE COSTS FOR HIGUERA STREET SIDEWALK REPAIR IN THE AMOUNT OF $66,080 FOR INSTALLATION OF MISSION -STYLE SIDEWALK FROM THE PROPERTY OWNER OF 858 & 860 HIGUERA STREET, AND IN THE EVENT OF NON-PAYMENT FROM THE PROPERTY OWNER, IMPOSING AN ADMINISTRATIVE LIEN ON THE 858 & 860 HIGUERA STREET PROPERTY WHEREAS, Municipal Code Section 12.16.020, which incorporates the procedures set forth in the Streets and Highway Code Division 7, Part 3, Chapter 22, indicates that a property is responsible for the maintenance and replacement of sidewalk adjacent to their property; and WHEREAS, pursuant to Streets and Highway Code Division 7, Part 3, Chapter 22, and thus, Municipal Code Section 12.16.020, the City can compel property owners to repair or maintain sidewalk adjacent to their property if it is in such a condition to endanger persons or property or interfere with the public convenience in the use of such sidewalk; and WHEREAS, in March 2019, a small piece of sidewalk located at 858 & 860 Higuera broke off and fell into the basement below, revealing that the sidewalk was deteriorating, and replacement was urgently needed; WHEREAS, on November 19, 2019, the City Council authorized staff to advertise for bids for repair of the sidewalk at 858 & 860 Higuera Street (the "Higuera Street Sidewalk Repair Project," Specification No. 91320), , and to formally issue a Notice of Correction to the property owner of 858 & 860 Higuera Street (the "Property Owner") pursuant to California Streets and Highways Code Sections 5611-5614; and WHEREAS, on January 2, and January 9, 2020, the City issued Notice of Correction letters to the Property Owner, requiring the Property Owner to start construction on or before January 16, 2020 per California Streets and Highways Code Section 5614; and WHEREAS, on March 9, 2020, having received no response from the Property Owner to the Notice of Correction letters, the City authorized the awarded contractor to begin construction of the Higuera Street Sidewalk Repair project and the work was completed on April 28, 2020; and WHEREAS, staff evaluated the total construction cost of the Higuera Street Sidewalk Repair project and categorized the cost into two categories, cost associated with work to the basement under the sidewalk, totaling $202,631, and the cost associated with sidewalk construction, totaling $66,080; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing via webinar on January 12, 2021; and 17 Packet Page 80 Item 7 Resolution No. (2021 Series) Page 2 WHEREAS, the City Council has considered all evidence, including the testimony of the property owner, interested parties, and the reports, evaluations, and recommendations by staff, presented to the City Council; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1. Findings. The City Council of San Luis Obispo finds: The above statements are true and that staff complied with the procedures required by Municipal Code Chapter 12.16.020 and Streets and Highway Code Division 7, Part 3, Chapter 22 for the Higuera Street Sidewalk Repair Project. 17 Packet Page 81 Item 7 Resolution No. (2021 Series) Page 3 SECTION 2. Action. Staff is hereby authorized to recover the costs for Higuera Street Sidewalk Repair Project from the Property Owner in the amount of $66,080 for installation of Mission -Style sidewalk. If payment is not received from the Property Owner by March 31, 2021, this resolution shall impose an administrative lien in the amount of $66,080 on the 858 & 860 Higuera Street property. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney 2021. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington City Clerk 17 Packet Page 82 Item 7 ti 3 M o s' 10' (E) ST. & TREE LGT CONDS a� �5 Basement Below Grade t R o � — 3 floor access to basement LULU LUXE 864 HIGUERA BUS. HRS. M-W 11-7, Th 11-9:30, F-Sa 10-8, Su 11-6 RETAIL H UERA ST r r a QI < 4 J Q o 5 3 � � I W/ w I in T �\`� M T 2 I \ / D Temp. Steel / l Plate Cover 3 _`PM ---- II� - - - - -- - / 9 IQ w 4 4 3 w N (E) STEEL BEAMS �F�qT bP/ok BELOW J BasementJ M f I Below Grade /(E) z' So. Basement 2" FIRE / COLUMN 2" FIRE Below Grade w I I- I BELOW II U - --- -_-_------------- I��II�� - - --- I� -- - --- --- - --- - - - �� o�I�■■■■l �Ima s ti 0 5' 10' \ / H SUERA ST 5 3 OUT OF 856 HIGUERA I BUS. HRS. M-W,F-Su 10:30-8 Th 10:30-9:30 RETAIL Packet Page as Item 7 Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 STREETS AND HIGHWAYS CODE - SHC DIVISION 7. THE IMPROVEMENT ACT OF 1911 PART 3. PERFORMING THE WORK CHAPTER 22. Maintenance of Sidewalks ARTICLE 2. Repairs 5610. The owners of lots or portions of lots fronting on any portion of a public street or place when that street or place is improved or if and when the area between the property line of the adjacent property and the street line is maintained as a park or parking strip, shall maintain any sidewalk in such condition that the sidewalk will not endanger persons or property and maintain it in a condition which will not interfere with the public convenience in the use of those works or areas save and except as to those conditions created or maintained in, upon, along, or in connection with such sidewalk by any person other than the owner, under and by virtue of any permit or right granted to him by law or by the city authorities in charge thereof, and such persons shall be under a like duty in relation thereto. 5611. When any portion of the sidewalk is out of repair or pending reconstruction and in condition to endanger persons or property or in condition to interfere with the public convenience in the use of such sidewalk, the superintendent of streets shall notify the owner or person in possession of the property fronting on that portion of such sidewalk so out of repair, to repair the sidewalk. 5612. Notice to repair may be given by delivering a written notice personally to the owner or to the person in possession of the property facing upon the sidewalk so out of repair, or by mailing a postal card, postage prepaid, to the person in possession of such property, or to the owner thereof at his last known address as the same appears on the last equalized assessment rolls of such city or to the name and address of the person owning such property as shown in the records of the office of the clerk. 5613. The postal card shall contain a notice to repair the sidewalk so out of repair, and the superintendent of streets shall, immediately upon the mailing of the notice, cause a copy thereof printed on a card of not less than 8 inches by 10 inches in size, to be posted in a conspicuous place on the property. In lieu of posting a copy of the mailed notice on the property as provided in this section, the superintendent of streets may, not less than seven days nor more than 10 days after the mailing of the first postal card notice, mail an additional postal card, postage prepaid, marked "Second Notice," to the person to whom the first postal card notice was addressed. The second notice shall otherwise contain the material required by this article but shall not extend the time for commencing repairs specified in Section 5614. 5614. The notice shall particularly specify what work is required to be done, and how it is to be done, and what materials shall be used in the repair and shall further specify that if the repair is not commenced within two weeks after notice is given and diligently and without interruption prosecuted to completion, the superintendent of streets shall make such repair, and the cost of the same shall be a lien on the property. 5614.1. The legislative body may adopt a resolution determining that bonds shall be issued, and assessments collected and enforced pursuant to Part 5 of this division. In such event, the notice to repair shall specify that bonds shall be issued to represent the security of the unpaid assessments, Packet Page 84 Item 7 Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 payable over a period of not to exceed six years, and shall further recite a maximum rate of interest to be paid on the indebtedness, which shall not exceed 7 percent a year, payable semiannually. 5615. If the repair is not commenced and prosecuted to completion with due diligence, as required by the notice, the superintendent of streets shall forthwith repair the sidewalk. Upon the written request of the owner of the property facing the sidewalk so out of repair, as ascertained from the last equalized assessment roll of the city, or as shown in the records of the office of the clerk, the superintendent may repair any other portion of the sidewalk fronting on the property that is designated by the owner. The superintendent shall have power to prescribe the form of the written request. The cost of repair work done by request pursuant to this section shall be a part of the cost of repairs for which, pursuant to this chapter, subsequent notices are given, hearings held, and assessment and collection procedures are conducted. 5616. Upon the completion of the repair, the superintendent of streets shall cause notice of the cost of the repair to be given in the manner specified in this article for the giving of notice to repair, which notice shall specify the day, hour and place when the legislative body will hear and pass upon a report by the superintendent of streets of the cost of the repair together with any objections or protests, if any, which may be raised by any property owner liable to be assessed for the cost of such repair and any other interested persons. If bonds are to be issued, the notice shall also contain the information required by Section 5614.1. 5617. Upon the completion of the repair, the superintendent of streets shall prepare and file with the legislative body a report specifying the repairs which have been made, the cost of the repairs, a description of the real property in front of which the repairs have been made and the assessment against each lot or parcel of land proposed to be levied to pay the cost thereof. Any such report may include repairs to any number of parcels of property, whether contiguous to each other or not. 5618. Upon the day and hour fixed for the hearing the legislative body shall hear and pass upon the report of the superintendent of streets, together with any objections or protests which may be raised by any of the property owners liable to be assessed for the work of making such repair and any other interested persons. Thereupon the legislative body may make such revision, correction or modifications in the report as it may deem just, after which, by motion or resolution, the report as submitted, or as revised, corrected or modified, shall be confirmed. The legislative body may adjourn the hearings from time to time. The decisions of the legislative body on all protests and objections which may be made, shall be final and conclusive. Packet Page 85 Item 7 Public Works 919 Palm Street, San Luis Obispo, CA 9 3401 -3218 805181.7200 slurity.org September 30, 2019 Lana Johns 2333 Sunrise Drive Bishop, CA 93514 Subject: Sidewalk Repair — 858-860 Higuera Street Ms. Johns, This letter is in regard to the sidewalk in front of your property in San Luis Obispo, 858-860 Higuera Street. In our last conversation, on August 28, 2019, I updated you that the City had completed a construction cost estimate which clearly indicated that the project was underfunded and could not continue under staff s authority and that we had concerns about the lack of owner financial participation in the project. Due to the increased cost of the sidewalk repair project, we must go back to the City Council to request additional funding and obtain approval to advertise the project. At this time, the City is concerned about the high cost of the repair work which directly benefits your property. Further, the City of San Luis Obispo's Municipal Code identifies the curb, gutter and sidewalk in front of your property as being the maintenance responsibility of the property owner. 12.16.020 Property owner's responsibility — City Municipal Code The maintenance, repair and collection of the cost of repair shall be governed by the procedure set forth in Division 7, Part 3, Chapter 22 of the Streets and Highways Code of the state. (Prior code § 7330.1) Related, appropriate sections of the Streets and Highway Code which support the cost of repair relationship to the property owner are included as an attachment to this letter. While this is not a notice for correction, the City offers you the opportunity to participate in a cost sharing of this construction work. This project not only provides safer access and benefits to the businesses on your property but it also benefits the community. I am available to discuss with you some proportional cost sharing for this project. Related to our discussion, in an effort to potentially decrease costs, the City requests that there be greater access to the basement of your property during construction (a construction access agreement). As the only access to the basement area is through LuLu Luxe, it will be very difficult, if not impossible, for the Contractor to access this way only once, until an access Packet Page 86 Item 7 opening is created through the sidewalk. All safeguards will be implemented to protect Lulu Luxe and the store contents during any access by the Contractor and its personnel. These measures will be specified in the construction documents for the Contractor to adhere to, and the Contractor will be obligated to pay for any and all damages that are incurred during access. In order to complete this project quickly, staff would like to present this project with a cost sharing arrangement between us to the City Council on November 19, 2019. The City requests that you provide a response as soon as possible so that we may keep the project moving forward. If you have any questions, please contact Matt Horn at 805-781-7191. Sincerely, Mike McGuire Senior Engineer ///a 41611 Matt Horn City Engineer Packet Page 87 Item 7 Public Works 919 Palm Street, San Luis 0bispo, CA 9 3401 -3218 805.781.7200 slocity.org December 7, 2019 Lana Johns 2333 Sunrise Drive Bishop, CA 93514 Subject: Notice to Repair Sidewalk — 858-860 Higuera Street Ms. Johns, On November 19, 2019, the Higuera Street Sidewalk Repair came before the City Council! After discussion on this item, the City Council directed City staff to issue a Notice of Correction to the property owner to complete the necessary sidewalk replacement work for the property located at 858-860 Higuera Street.2 The necessary sidewalk replacement work is shown and described in the plans and specifications3. Pursuant to City Council's direction, this letter provides you with notice that a Notice of Correction will be mailed to you on January 2, 2020. And a second Notice of Correction will be sent to you on January 9, 2020. The Notice of Correction will request that you start the sidewalk repair work no later than January 16, 2020. If you have any questions, please contact Matt Horn at 805-781-7191. Sincerely, #4 A" Matt Horn City Engineer 1 Attached hereto as attachment 1 is a copy of the Council Agenda Report for the Higuera Street Sidewalk Repair, Specification No. 91320 for your reference. 2 Attached hereto as attachment 2 is a copy of the Action Update for the November 19, 2019, Regular Meeting of the City Council for your reference. 3 Attached hereto as attachment 3 is a copy of the Plans and Specifications the City has developed for this work. Packet Page 88 Item 7 Public Works 919 Palm Street, San Luis 0bispo, CA 9 3401 -3218 805.781.7200 slocity.org January 2, 2020 Lana Johns 2333 Sunrise Drive Bishop, CA 93514 Email: lanasusanj@yahoo.com Subject: Notice to Correct — 858-860 Higuera Street The sidewalk adjacent to your property located at 858-860 Higuera Street in the City of San Luis Obispo must be repaired. This sidewalk is considered a dangerous condition and must be mitigated. The City's Streets Maintenance Program has made temporary repairs. This City is requiring you to complete the permanent repairs. The City of San Luis Obispo's Municipal Code identifies the curb, gutter and sidewalk adjacent to your property as being the maintenance responsibility of the property owner. 12.16.020 Property owner's responsibility — City Municipal Code The maintenance, repair and collection of the cost of repair shall be governed by the procedure set forth in Division 7, Part 3, Chapter 22 of the Streets and Highways Code of the state. (Prior code § 7330.1) Packet Page 89 Item 7 The appropriate sections of the Streets and Highway Code are included as an attachment to this letter. The City is requiring that you stabilize the structure under the existing sidewalk and replace the sidewalk and curb in front of your property. Once you have selected your contractor that will complete this work, you must obtain an encroachment permit from the City for this work which may be obtained from the Public Works front counter located at 919 Palm Street. You must start this correction work within two weeks of the date of this Notice to Correct and diligently, without interruption prosecute to completion, or the City will make the repairs and the cost of this work shall be a lien on the property. Sincerely, Jeff Kline Streets Maintenance Supervisor Attachments: 1. Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 Packet Page 90 Item 7 Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 STREETS AND HIGHWAYS CODE - SHC DIVISION 7. THE IMPROVEMENT ACT OF 1911 PART 3. PERFORMING THE WORK CHAPTER 22. Maintenance of Sidewalks ARTICLE 2. Repairs 5610. The owners of lots or portions of lots fronting on any portion of a public street or place when that street or place is improved or if and when the area between the property line of the adjacent property and the street line is maintained as a park or parking strip, shall maintain any sidewalk in such condition that the sidewalk will not endanger persons or property and maintain it in a condition which will not interfere with the public convenience in the use of those works or areas save and except as to those conditions created or maintained in, upon, along, or in connection with such sidewalk by any person other than the owner, under and by virtue of any permit or right granted to him by law or by the city authorities in charge thereof, and such persons shall be under a like duty in relation thereto. 5611. When any portion of the sidewalk is out of repair or pending reconstruction and in condition to endanger persons or property or in condition to interfere with the public convenience in the use of such sidewalk, the superintendent of streets shall notify the owner or person in possession of the property fronting on that portion of such sidewalk so out of repair, to repair the sidewalk. 5612. Notice to repair may be given by delivering a written notice personally to the owner or to the person in possession of the property facing upon the sidewalk so out of repair, or by mailing a postal card, postage prepaid, to the person in possession of such property, or to the owner thereof at his last known address as the same appears on the last equalized assessment rolls of such city or to the name and address of the person owning such property as shown in the records of the office of the clerk. 5613. The postal card shall contain a notice to repair the sidewalk so out of repair, and the superintendent of streets shall, immediately upon the mailing of the notice, cause a copy thereof printed on a card of not less than 8 inches by 10 inches in size, to be posted in a conspicuous place on the property. In lieu of posting a copy of the mailed notice on the property as provided in this section, the superintendent of streets may, not less than seven days nor more than 10 days after the mailing of the first postal card notice, mail an additional postal card, postage prepaid, marked "Second Notice," to the person to whom the first postal card notice was addressed. The second notice shall otherwise contain the material required by this article but shall not extend the time for commencing repairs specified in Section 5614. 5614. The notice shall particularly specify what work is required to be done, and how it is to be done, and what materials shall be used in the repair and shall further specify that if the repair is not commenced within two weeks after notice is given and diligently and without interruption prosecuted to completion, the superintendent of streets shall make such repair, and the cost of the same shall be a lien on the property. 5614.1. The legislative body may adopt a resolution determining that bonds shall be issued, and assessments collected and enforced pursuant to Part 5 of this division. In such event, the notice to repair shall specify that bonds shall be issued to represent the security of the unpaid assessments, Packet Page 91 Item 7 Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 payable over a period of not to exceed six years, and shall further recite a maximum rate of interest to be paid on the indebtedness, which shall not exceed 7 percent a year, payable semiannually. 5615. If the repair is not commenced and prosecuted to completion with due diligence, as required by the notice, the superintendent of streets shall forthwith repair the sidewalk. Upon the written request of the owner of the property facing the sidewalk so out of repair, as ascertained from the last equalized assessment roll of the city, or as shown in the records of the office of the clerk, the superintendent may repair any other portion of the sidewalk fronting on the property that is designated by the owner. The superintendent shall have power to prescribe the form of the written request. The cost of repair work done by request pursuant to this section shall be a part of the cost of repairs for which, pursuant to this chapter, subsequent notices are given, hearings held, and assessment and collection procedures are conducted. 5616. Upon the completion of the repair, the superintendent of streets shall cause notice of the cost of the repair to be given in the manner specified in this article for the giving of notice to repair, which notice shall specify the day, hour and place when the legislative body will hear and pass upon a report by the superintendent of streets of the cost of the repair together with any objections or protests, if any, which may be raised by any property owner liable to be assessed for the cost of such repair and any other interested persons. If bonds are to be issued, the notice shall also contain the information required by Section 5614.1. 5617. Upon the completion of the repair, the superintendent of streets shall prepare and file with the legislative body a report specifying the repairs which have been made, the cost of the repairs, a description of the real property in front of which the repairs have been made and the assessment against each lot or parcel of land proposed to be levied to pay the cost thereof. Any such report may include repairs to any number of parcels of property, whether contiguous to each other or not. 5618. Upon the day and hour fixed for the hearing the legislative body shall hear and pass upon the report of the superintendent of streets, together with any objections or protests which may be raised by any of the property owners liable to be assessed for the work of making such repair and any other interested persons. Thereupon the legislative body may make such revision, correction or modifications in the report as it may deem just, after which, by motion or resolution, the report as submitted, or as revised, corrected or modified, shall be confirmed. The legislative body may adjourn the hearings from time to time. The decisions of the legislative body on all protests and objections which may be made, shall be final and conclusive. Packet Page 92 Item 7 Public Works 919 Palm Street, San Luis 0bispo, CA 9 3401 -3218 805.781.7200 slocity.org January 9, 2020 Lana Johns 2333 Sunrise Drive Bishop, CA 93514 Email: lanasusanj@yahoo.com Subject: Second Notice to Correct — 858-860 Higuera Street The sidewalk adjacent to your property located at 858-860 Higuera Street in the City of San Luis Obispo must be repaired. This sidewalk is considered a dangerous condition and must be mitigated. The City's Streets Maintenance Program has made temporary repairs. This City is requiring you to complete the permanent repairs. The City of San Luis Obispo's Municipal Code identifies the curb, gutter and sidewalk adjacent to your property as being the maintenance responsibility of the property owner. 12.16.020 Property owner's responsibility — City Municipal Code The maintenance, repair and collection of the cost of repair shall be governed by the procedure set forth in Division 7, Part 3, Chapter 22 of the Streets and Highways Code of the state. (Prior code § 7330.1) Packet Page 93 Item 7 The appropriate sections of the Streets and Highway Code are included as an attachment to this letter. The City is requiring that you stabilize the structure under the existing sidewalk and replace the sidewalk and curb in front of your property. Once you have selected your contractor that will complete this work, you must obtain an encroachment permit from the City for this work which may be obtained from the Public Works front counter located at 919 Palm Street. You must start this correction work within two weeks of the date of this Notice to Correct and diligently, without interruption prosecute to completion, or the City will make the repairs and the cost of this work shall be a lien on the property. Sincerely, Jeff Kline Streets Maintenance Supervisor Attachments: 1. Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 Packet Page 94 Item 7 Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 STREETS AND HIGHWAYS CODE - SHC DIVISION 7. THE IMPROVEMENT ACT OF 1911 PART 3. PERFORMING THE WORK CHAPTER 22. Maintenance of Sidewalks ARTICLE 2. Repairs 5610. The owners of lots or portions of lots fronting on any portion of a public street or place when that street or place is improved or if and when the area between the property line of the adjacent property and the street line is maintained as a park or parking strip, shall maintain any sidewalk in such condition that the sidewalk will not endanger persons or property and maintain it in a condition which will not interfere with the public convenience in the use of those works or areas save and except as to those conditions created or maintained in, upon, along, or in connection with such sidewalk by any person other than the owner, under and by virtue of any permit or right granted to him by law or by the city authorities in charge thereof, and such persons shall be under a like duty in relation thereto. 5611. When any portion of the sidewalk is out of repair or pending reconstruction and in condition to endanger persons or property or in condition to interfere with the public convenience in the use of such sidewalk, the superintendent of streets shall notify the owner or person in possession of the property fronting on that portion of such sidewalk so out of repair, to repair the sidewalk. 5612. Notice to repair may be given by delivering a written notice personally to the owner or to the person in possession of the property facing upon the sidewalk so out of repair, or by mailing a postal card, postage prepaid, to the person in possession of such property, or to the owner thereof at his last known address as the same appears on the last equalized assessment rolls of such city or to the name and address of the person owning such property as shown in the records of the office of the clerk. 5613. The postal card shall contain a notice to repair the sidewalk so out of repair, and the superintendent of streets shall, immediately upon the mailing of the notice, cause a copy thereof printed on a card of not less than 8 inches by 10 inches in size, to be posted in a conspicuous place on the property. In lieu of posting a copy of the mailed notice on the property as provided in this section, the superintendent of streets may, not less than seven days nor more than 10 days after the mailing of the first postal card notice, mail an additional postal card, postage prepaid, marked "Second Notice," to the person to whom the first postal card notice was addressed. The second notice shall otherwise contain the material required by this article but shall not extend the time for commencing repairs specified in Section 5614. 5614. The notice shall particularly specify what work is required to be done, and how it is to be done, and what materials shall be used in the repair and shall further specify that if the repair is not commenced within two weeks after notice is given and diligently and without interruption prosecuted to completion, the superintendent of streets shall make such repair, and the cost of the same shall be a lien on the property. 5614.1. The legislative body may adopt a resolution determining that bonds shall be issued, and assessments collected and enforced pursuant to Part 5 of this division. In such event, the notice to repair shall specify that bonds shall be issued to represent the security of the unpaid assessments, Packet Page 95 Item 7 Attachment 1— Streets and Highway Code — Division 7, Part 3, Chapter 22, Article 2 payable over a period of not to exceed six years, and shall further recite a maximum rate of interest to be paid on the indebtedness, which shall not exceed 7 percent a year, payable semiannually. 5615. If the repair is not commenced and prosecuted to completion with due diligence, as required by the notice, the superintendent of streets shall forthwith repair the sidewalk. Upon the written request of the owner of the property facing the sidewalk so out of repair, as ascertained from the last equalized assessment roll of the city, or as shown in the records of the office of the clerk, the superintendent may repair any other portion of the sidewalk fronting on the property that is designated by the owner. The superintendent shall have power to prescribe the form of the written request. The cost of repair work done by request pursuant to this section shall be a part of the cost of repairs for which, pursuant to this chapter, subsequent notices are given, hearings held, and assessment and collection procedures are conducted. 5616. Upon the completion of the repair, the superintendent of streets shall cause notice of the cost of the repair to be given in the manner specified in this article for the giving of notice to repair, which notice shall specify the day, hour and place when the legislative body will hear and pass upon a report by the superintendent of streets of the cost of the repair together with any objections or protests, if any, which may be raised by any property owner liable to be assessed for the cost of such repair and any other interested persons. If bonds are to be issued, the notice shall also contain the information required by Section 5614.1. 5617. Upon the completion of the repair, the superintendent of streets shall prepare and file with the legislative body a report specifying the repairs which have been made, the cost of the repairs, a description of the real property in front of which the repairs have been made and the assessment against each lot or parcel of land proposed to be levied to pay the cost thereof. Any such report may include repairs to any number of parcels of property, whether contiguous to each other or not. 5618. Upon the day and hour fixed for the hearing the legislative body shall hear and pass upon the report of the superintendent of streets, together with any objections or protests which may be raised by any of the property owners liable to be assessed for the work of making such repair and any other interested persons. Thereupon the legislative body may make such revision, correction or modifications in the report as it may deem just, after which, by motion or resolution, the report as submitted, or as revised, corrected or modified, shall be confirmed. The legislative body may adjourn the hearings from time to time. The decisions of the legislative body on all protests and objections which may be made, shall be final and conclusive. Packet Page 96 Item 7 Christian, Kevin From: Lana Johns <lanasusanj@yahoo.com> Sent: Tuesday, June 2, 2020 11:18 AM To: E-mail Council Website Cc: Harmon, Heidi; Gomez, Aaron; Christianson, Carlyn; Pease, Andy; Stewart, Erica A Subject: 858-860 Higuera Street Project Funding Attachments: SLO Council Letter.pdf Follow Up Flag: Follow up Flag Status: Flagged Mayor Heidi Harmon and Council Members, My name is Lana Johns, I am a member of the Madson family that owns the building at 858-860 Higuera Street. The sidewalk project has been completed, and funding for this project will be addressed at a future city council meeting. This letter addresses our concerns, please present it at the City Council Meeting addressing the 858-860 Sidewalk Project. Sincerely, Lana Johns i Packet Page 97 Item 7 Madsen Properties, LLC May 21, 2020 858-860 Higuera Street Sidewalk Project Mayor: Heidi Harmon and Council Members, My name is Lana Johns. My family has owned the building at 858-864 Higuera Street (built in 1912) for 45 years. When my father died in 2005, my brother, sister and I formed Madson Properties, LLC. Our family has invested a significant amount of money retrofitting, and remodeling this building. The building currently has one vacancy. April and May rent has been waved for our two tenants due to Covid-19 Virus. July 15, 2010 the City of SLO sent a notice to implement Downtown "Mission -style" Sidewalk Project (the Project) along three blocks of Higuera—Morro-Broad. We notified City there was a basement under sidewalk at 858-860 Higuera. The City was aware of "basements scattered around downtown", but unaware of this "unique" basement. The Project was completed in 2012, except sidewalk at 858-860 Higuera. The Project continued in 2015, and again the City excluded 858-860 sidewalk. ❑uring these phases of the Project, adjacent property owners were not responsible for cost of sidewalk. In 2019 the sidewalk in front of 858-860 began to deteriorate, exposing basement below. Public Works sent the LLC a Right of Entry agreement...." removal and replacement of 40-foot segment of City owned sidewalk. This work includes basement -level structural foundation and steel support...... Work will be done at no cost to the owner" (signed Matt Horn 7/3/19.) The estimate for project exceeded amount city had approved for the project. November 11, 2019, the City approved proceeding with repair, and sending LLC "Notice To Correct/Municipal Code 12.16.020". The notice stated LLC was required to start permanent repairs to sidewalk within 2 weeks or City would complete repairs, and place a lien on property. Packet Page 98 Item 7 The 585-860 Project was much more than a repair. The LLC does not own the sidewalk or property under the sidewalk. The LLC should not be liable for the cost of construction of a basement structure. The forty feet of new sidewalk at 858-850 Project is "Mission -style Sidewalk" Madson Properties, LLC should not be treated differently than other property owners, and should not be charged for sidewalk replacement. Please present my letter at the City Council Meeting addressing 858-850 Higuera Project. Sincerely, Lana Madson Johns Madson Properties, LLC l an asu san j @yah oo. c om Packet Page 99 Item 7 fff Public 1%rks 919 Palm Street, San Luis Obispo, CA 93401.3218 805.781,7200 siocity org June 12, 2019 Lana Johns 2333 Sunrise Drive Bishop, CA, 93514 SUBJECT: RIGHT OF ENTRY ADDRESS: 858, 860, 864 Higuera Street APN: 002-425-016 Permission is hereby granted for personnel and contractors for the City of San Luis Obispo to access and cross your property at the address above for the purpose of removal and replacement of a 40- foot segment of City owned sidewalk. This work includes basement -level structural foundation and steel support. City agrees to indemnify and hold harmless the property owner from all claims of injury or damages received or sustained by any person or persons by, or on account of, any act of omission of City's crews related to the work described above. Work will be done at no cost to the owner. The City and its Contractor will repair any damage to your property caused by this work and their operational procedures. All work done as part of this agreement is guaranteed for one year from the date of installation. PROPERTY OWNER Lana Johns 2333 Sunrise Drive Bishop, CA, 93514 Accepted: CITY OF SAN LUIS OBISPO Matt Horn, City Engineer Date 3 Date Packet Page 100 Higuera Street Sidewalk I PROJECT LOCATION 858-860 H 1�6 ERAS N i o soo +aao SCALE 1N FEET JANUARY 2021 Repair � ✓ S4at, � � Q�Gr `r9 / O OT J 1 o, h! ppc BURNSTEiNS r � fit Recommendation 1. Receive a report on the cost to implement Higuera Street Sidewalk Repairs; and 2. Receive any objections or protests of cost by property owner of 858-860 Higuera Street; and 3. Authorize staff to recover the costs for Higuera Street Sidewalk Repairs in the amount of $66,080 for project related costs; and 4. Adopt a resolution imposing an Administrative lien on the 858-860 Higuera Street property if the property owner fails to pay the cost recovery. Summer 2007 ➢ Major City Goal created for Downtown Maintenance and Beautification Summer 2012 ➢ 42' of sidewalk replacement at 858 Higuera excluded due to basement underlying the sidewalk ➢ Structural engineering design begins on this segment ➢ Project construction deferred until sufficient funding is appropriated. March 2019 ➢ A portion of the sidewalk broke off, signaling repair was needed immediately FIiipFiopShops 5 E G-,'r Y O� ti CITY OF Sff n Luls OBISI'O Lars oo NSTEINS re r EVIL' I In June 2019 ➢ FY19/20 Project Budget: $190,000 to support project ➢ Property owner grants right of entry access to basement Au,aust — September 2019 ➢ Updated cost estimates show insufficient budget for construction ➢ City and property owner discovered prior right of entry was limited to one-time access at the discretion of the business lessee ➢ City requests a construction access agreement and offers cost sharing participation with property owner November 19, 2019 ➢ Council approves project Construction with supplemental funds ➢ Council directs staff to issue a Notice to Correct per Muni Code Statend City i Sidewalk Maintenance & Replacement 4~ • City of San Luis Obispo's Municipal Code Section 12.16.020 incorporates by reference the State Streets and Highway Code Division 7, Part 3, Chapter 22 • Property owner is responsible for the maintenance and repair of sidewalk adjacent to their property December 2019 ➢ City advertises for construction January 2020 ➢ 2 Notices to Correct issued per Streets and Highways code, with no response March 2020 ➢ Work Begins with low bid construction contract ➢ Shelter at Home order results The basement in business closure, work occurs during daytime hours JANUARY 2021 r�1 \IS '- 7�90 t �• Jos . - 07 �- = - . � � _ � �-�ufl�aq 1�Y�Yf�i,•wr�x Jn am,ai.`ra:,-.r i/ �t i.i�i:iura� l�►ird,�-��war=gee M1I! . - .... - • � i �}. i i i , i�k��fi' �r�r .psi _� � --` •' .. 'ram,:-.• ••�'� /��±+��. kru as IL -- - - wwm GAT Y O.h CITY OF ►SHII DELIS OBISPO s L�rs o� Y C -c 0 CITY OF SqR DELIS OBISPO Ali& 'WA I-W ti al fit Hig uera Street Sidewalk • Repair: Project Costs Design Costs: $65850 Construction Cost: $2551480 Construction Contingencies Spent: Engineering Costs: Special Inspection: Total Project Cost: Proposed FY19-20 Funding Allocation: Original Project Budget: Supplemental Funding Approved by CC 11/19/19 Project Costs: Budget Remaining: $9,378 $2,468 $1,385 $275,561 $1901000 $1601000 ($275,561) $74,440 VP Higuera Street Sidewalk Repair: •, Project C• Construction costs divided between sidewalk and design/basement Design Costs: $61850 Sidewalk Costs: Basement Costs: Total Project Cost: $661080 $2021631 $2759561 Cost RecoveryOptions Option 1 Convey all project cost to the private property owner. This option would require the private property owner to provide the City compensation in the amount of $275,561. This option requires the private property owner to fund the full cost of the project. Cost Recovery Options Option 2 Convey all project cost to the private property owner and issue the private property owner a credit in the amount of $66,080. This option would require the private property owner to provide the City compensation in the amount of $209,481 to fund the full cost of the basement work and design cost associated with the basement work. Cost Recovery Options Option 3 (Staff Recommendation #3) Convey all project cost to the private property owner and issue the private property owner a credit in the amount of $209,481. This option would require the private property owner to provide the City compensation in the amount of $66,080 to fund the full cost of the sidewalk work only. Cost Recovery Options Option 4 Convey all project cost to the private property owner and issue the private property owner a credit of some amount determined by Council. This option would allow Council to size the credit to ensure the private property owner receives the same level of service as other downtown businesses where the City has replaced sidewalks. fitCost Recovery Options Option 5 Do not convey any of the project cost to the private property owner. This option would not require the private property owner to provide any compensation to the City. 1. Receive a report on the cost to implement Higuera Street Sidewalk Repairs; and 2. Receive any objections or protests of cost by property owner of 858-860 Higuera Street; and 3. Authorize staff to recover the costs for Higuera Street Sidewalk Repairs in the amount of $66,080 for project related costs; and 4. Adopt a resolution imposing an Administrative lien on the 858-860 Higuera Street property if the property owner fails to pay the cost recovery. GAT Y O.h CITY OF SHill DELIS OBISPO L�rs o�