Building Inspection Commission approves DBI budget amid 49 South Van Ness uncertainty

The Building Inspection Commission voted unanimously on Feb. 20 to approve the Department of Building Inspection’s proposed budget for fiscal years 2019–20 and 2020–21, while asking staff for updates on large uncertainties including the 49 South Van Ness project and a proposed ADU/100% affordable housing fee‑waiver program from the Mayor’s Office.

Deputy Director Taris Madison presented the budget as a second reading, reporting proposed new revenues of about $69.4 million and noting that the department projects it may ultimately collect roughly $75 million this fiscal year, depending on valuation‑driven plan‑review and inspection fees. Madison said cities often defer fees for large affordable projects until issuance, which can delay revenue recognition across fiscal years.

Madison described facilities and move costs: DBI currently occupies about 68,000 square feet at 1660 Mission with additional adjacent space; the 49 South Van Ness consolidation is estimated at about $9.4 million in current budget estimates, including roughly $7.7 million for furniture, fixtures and equipment and networking. She said some previously budgeted MIS equipment and move costs were removed from DBI’s line items because the City Administrator will centralize those expenditures, but that the full debt‑service and per‑person costs are still being calculated.

Commissioners raised concerns about an apparent $9 million shortfall in preliminary figures and asked staff to pursue reserves and reallocation of prior good‑faith funds to cover gaps if necessary. Commissioner Marshall said a $9 million gap is larger than typical and urged conservative planning; Madison said existing reserves and prior project allocations could mitigate the shortfall and that the March/9‑month report would give additional clarity.

Commissioners also pressed the administration to consider that any ADU or 100% affordable fee‑waiver program needs to account for fees collected by multiple departments (e.g., Planning, Public Works, Fire) so that a DBI fee change is not misunderstood as comprehensive fee relief. Bill Strachan (Legislative and Public Affairs) said staff expect ordinance language for any fee waiver/deferral by March–April and that the supervisory process would include the typical 30‑day rule and Board of Supervisors hearings.

Commissioner Walker moved approval of the budget on final reading with the understanding that staff will return with updates on the moving targets; the motion was seconded and carried unanimously by roll‑call vote.

DBI staff said they will return with further budget updates at the March commission meeting and as numbers from the City Administrator and other departments consolidate.