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Report regarding a public hearing and resolution confirming and approving the nuisance abatement cost report and authorizing imposition of a special assessment on the property at 308 Susie Way, South San Francisco, APN 011-262-260 for collection of abatement costs and outstanding penalties amounting to $146,811.29. (Nell Selander, Economic & Community Development Director, and Dave Bockhaus, Deputy Public Works Director)
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RECOMMENDATION
Recommendation
Staff recommends City Council conduct a public hearing and adopt a resolution confirming and approving the nuisance abatement cost report and authorizing imposition of a special assessment on the property at 308 Susie Way, South San Francisco, APN 011-262-260 for collection of abatement costs and outstanding penalties amounting to $146,811.29.
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BACKGROUND/DISCUSSION
In the early morning of January 10, 2023, the City’s Emergency Operations Center (EOC) received reports that the roof had blown off a four-unit residential rental property located at 308 Susie Way in South San Francisco (Property). The City’s Fire Department, Building Division, and Code Enforcement Division responded. Code Enforcement issued a “yellow tag” notice for the Property, declaring all four units in the building as unsafe and unfit for human occupancy due to a degraded, missing, and leaking roof, as well as water intrusion affecting electrical in all units. Upon issuance of the yellow tag notice, the City authorized tenants to enter their units to gather their belongings and check on pets, but no one was authorized to live or sleep inside the Property. Staff at the EOC provided the displaced tenants emergency shelter referrals. On January 12, 2023, due to the substantial electrical hazard resulting from water intrusion into the Property, the electrical service to the Property was disconnected.
Relocation Payments to Affected Tenants
Under South San Francisco Municipal Code Chapter 8.70, residential rental tenants who experience permanent and temporary displacement qualify for relocation payments, subject to certain exceptions. On January 13, 2023, the Economic and Community Development Department issued a determination to the Property Owner, Mr. Lin Nay, that he was required to make relocation payments to the tenant households in all four units. Mr. Nay appealed the City’s determination, stating that an exception applied in this instance due to storm-related impacts on January 10, 2023.
Following the appointment of an Appeals Panel by the Planning Commission, a duly noticed appeals hearing was held on February 22, 2023. The Appeals Panel heard and considered evidence and testimony from City representatives and witnesses, the tenants of all four rental units at the Property, and the Property Owner; and subsequently issued a decision denying the Property Owner’s appeal on a vote of three to zero. Mr. Nay failed to timely appeal the Appeals Panel’s Determination to the City Council.
On March 21, 2023, and May 2, 2023, the City issued notices to the Property Owner regarding his obligation to pay tenant relocation payments to the tenant households, and informed him that failure to make the required relocation payments may result in the City making payments on his behalf. Finally, on July 3, 3032, pursuant to South San Francisco Municipal Code (SSFMC) Section 8.70.070(a), the City made relocation payments totaling more than $30,000 to the tenant households on behalf of the Property Owner who had failed to make the required payments.
On June 21, 2023, the City issued a bill to the Property Owner for abatement costs for relocation payments made to all four tenant households, which required payment to the City within five days of receipt. Mr. Nay failed to reimburse the City and so on September 1, 2023, the City issued a Notice of Late Payment assessing a late penalty for failure to timely reimburse the City pursuant to SSFMC Section 8.70.070(b).
Code Enforcement Actions
On January 13, 2023, the City issued the Property Owner a First Notice of Violation and Order to Abate requiring a roofing permit to be obtained by February 13, 2023, to institute repairs to the roof. The First Notice and Order expressed the City’s willingness to assist with limiting water intrusion and process permits to facilitate rehabilitation of the units at the Property. Five months passed with the Property Owner failing to obtain a roofing permit to perform the necessary work to rectify the Substandard and Unsafe conditions at the Property and on June 13, 2023, the City issued a Second Notice of Violation requiring a roofing permit be obtained by June 29, 2023.
The Property Owner failed to obtain the required roofing permit by the end of June and so on October 30, 2023, Code Enforcement conducted a further inspection of the Property. During this inspection, several deficiencies were noted, including:
• Lack of an adequate roof;
• Accumulation of trash and debris;
• Broken windows;
• Deteriorated fence/gate; and
• All four units lacked electrical and plumbing conduits and connections, heating and ventilation system, kitchens and bathrooms, and walls and ceilings.
On November 9, 2023, due to the Property Owner’s failure to comply with both the First and Second Notice and Order to Abate and because that the initial tarping installed to prevent further water intrusion deteriorated and a storm was predicted in the coming week, the City determined there was an immediate need to protect the health and safety of the public from further water intrusion and issued a Third Notice and Order to Abate declaring the Property a Public Nuisance. The Third Notice and Order to Abate required the owner to obtain a roofing permit by November 16, 2023, complete the necessary work within 30 days, and that a failure to do so could lead to issuance of daily administrative citations. Mr. Nay was notified that if administrative citations went unpaid, the City may collect them and any fees, fines, and collection costs via a special assessment lien on the Property.
Subsequently, the City issued eight administrative citations that went unpaid and which the Property Owner did not appeal.
Special Assessment Lien
As described above, in addition to the direct cost of providing the relocation payments on the Property Owner’s behalf and the amount of the administrative citations, substantial other costs have been incurred by the City in its efforts to abate the public health nuisance that has resulted at 308 Susie Way from the Property Owner’s failure to address the various code compliance issues at the Property. The City is entitled to recover these costs, including, but not limited to, administrative costs, staff time, investigation, site inspection, monitoring, reports, correspondence and meetings with affected parties, the costs of any appeal hearing, re-inspections, attorney’s fees for the prevailing party in an administrative or court action incurred pursuant to abatement proceedings, and actual costs of abating the violation, pursuant to and in accordance with state law and SSFMC Chapter 8.54. The subject of this staff report is this special assessment, which if approved by Council, will become due and payable with the property tax assessment levied against the Property.
FISCAL IMPACT
As detailed in the Cost Report, included as Exhibit A to the associated Resolution, the City has incurred $146,811.29 in direct and indirect costs associated with abating the nuisance at the subject Property. These costs have been incurred by the City’s General Fund and the City’s Housing Trust Fund (Fund 205). While not immediate, the repayment of these costs via a special property tax assessment will replenish these funds.
CONCLUSION
Staff recommends City Council conduct a public hearing and adopt a resolution confirming and approving the nuisance abatement cost report and authorizing imposition of a special assessment on the Property for collection of abatement costs and outstanding penalties amounting to $146,811.29.