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DBI fee study finds 73% cost recovery; CBOs press to embed $4.8M in fee plan
Summary
Department of Building Inspection staff presented a consultant fee study showing DBI currently recovers roughly 73% of costs and recommended phased fee increases and an annual adjustment mechanism; community-based organizations urged that $4.8 million in CBO funding be incorporated into fee recovery rather than drawn from the general fund.
Deputy Director Alex Koskinen told the Building Inspection Commission on Jan. 11 that a consultant study found the Department of Building Inspection (DBI) currently recovers "approximately 73% of the department's costs," projecting $61,000,000 in fee revenue against full-cost estimates of $84,000,000.
The study, performed by consultant NBS at DBI's direction, compared San Francisco fees with those in Los Angeles, Oakland, San Diego, San Jose and Santa Clara and calculated fully burdened hourly rates for permit, inspection and administrative services. Koskinen said staff recommended moderated fee increases and a mechanism to adjust fees annually to avoid creating sudden, disproportionate burdens on specific payers.
Why it matters: DBI is an enterprise department whose operating budget is principally funded by permit and inspection fees. Staff said adopting the consultant's full cost-recovery fees immediately would close a projected gap of about $23 million but could produce large jumps for some individual fees. Koskinen…
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