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DBI recommends 3.9% escalation to annual cost schedule; commissioners raise questions about fee surplus
Summary
DBI recommended a 3.9% increase to the department's cost schedule based on state architect/ENR indices; commissioners pressed staff about an earlier controller‑office rollback and how fee adjustments affect small contractors and revenue forecasts.
DBI technical services staff presented the department's annual cost‑schedule update and recommended a 3.9% escalation for 2017.
Kirk Means explained the valuation basis in California Building Code section 109.3 and local amendments and said DBI uses Engineering News‑Record and Division of State Architect indices to calculate the escalation. Means compared several local and national indices and noted San Francisco Capital Planning figures nearer 5% for 2017, but the department recommended a 3.9% adjustment as a moderate choice.
Commissioners questioned the revenue implications of fee changes, noting the controller's office previously ordered a 7% rollback on some fees and asking how any departmental surplus, projected personnel costs, and fee waivers (for soft‑story and ADU incentives) factor into policy choices. Staff described routine reconciliation procedures for permit valuations, a refund process for overpaid fees, and the role of plan reviewers and field inspectors in capturing revisions that affect final valuations.
Commissioners also pressed how the cost schedule captures small contractors and homeowner‑led projects; staff said small jobs are reflected in the dataset and that targeted outreach and stakeholder consultations help refine tenant‑improvement and low‑value permit estimates. The commission did not take final legislative action in the meeting on the fee schedule recommendation; staff presented the methodological basis and will return with any required rulemaking.
