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DBI Proposes Permit Fee Overhaul to Align Revenue with Costs

April 17, 2024 | San Francisco City, San Francisco County, California



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This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

DBI Proposes Permit Fee Overhaul to Align Revenue with Costs
During a recent San Francisco government meeting, significant discussions centered around the Department of Building Inspection (DBI) and its fee structure, highlighting concerns about the financial sustainability of its services. The meeting revealed a pressing need to reassess how permit fees are calculated and the overall efficiency of inspection processes.

One of the primary proposals discussed was the idea of lowering permit fees while implementing separate charges for inspections. This approach aims to better align DBI revenue with the actual costs incurred during inspections, which currently stand at a fully burdened rate of $461 per hour. Advocates for this change argue that the existing fee structure does not accurately reflect the resources required for various types of permits and inspections.

Additionally, the meeting addressed the practice of issuing $1 administrative permits. It was suggested that these permits should be eliminated, as the cost of processing them exceeds the nominal fee. The discussion emphasized that DBI cannot provide adequate service at such a low cost, and that expired building permits should also be renewed to ensure compliance and proper oversight.

Another critical point raised was the need for prescheduling all DBI field inspections. This would not only streamline the inspection process but also introduce a reinspection fee for instances where inspectors are denied entry, further ensuring that DBI can cover its operational costs.

The meeting also touched on the volume of notices of violation (NOVs) issued annually, which totals around 3,000. It was noted that the penalties associated with these violations are often below the cost of the inspector's time, indicating that the current system is heavily subsidized. This raises questions about the sustainability of the enforcement process and the need for a reevaluation of how these penalties are structured.

In conclusion, the discussions during this meeting underscored the urgent need for the City of San Francisco to reform its DBI fee structure and inspection processes. As the city grapples with increasing demands for building permits and inspections, these proposed changes could lead to a more equitable and efficient system that better serves the community while ensuring that the costs of services are adequately covered. The next steps will likely involve further analysis of the proposed changes and their potential impact on both the DBI and the residents of San Francisco.

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