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Building Inspection Commission keeps 2009 building valuation schedule, declines 2010 Marshall & Swift update
Summary
The commission voted to retain the 2009 Marshall & Swift building valuation schedule for permit valuation and fees after staff advised the national 2010 index did not reflect San Francisco conditions and could require offsetting fee increases.
The San Francisco Building Inspection Commission voted Aug. 18 to retain the 2009 Marshall & Swift building valuation schedule rather than adopt the 2010 update, following staff recommendations that the national index does not reflect local construction and service costs.
Lawrence Cornfield explained the Marshall & Swift index is updated annually but uses national values with regional multipliers. He said adopting the national change “would see a reduction in cost valuation,” but staff do not believe that national decline accurately reflects construction costs in San Francisco. Cornfield recommended deferring any adjustment until next year’s update so the department can better match revenues to the scope of inspection and plan review services.
Commissioners and staff discussed how the valuation schedule is used to determine permit fees (the schedule is distinct from assessor valuations) and that reducing the valuation could require future fee increases to maintain service levels. Following discussion, a motion to keep the 2009 values was moved, seconded and approved by roll call.
The commission’s action preserves current valuation factors for permit valuations and delays any adjustment pending further review.
