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Building Inspection Commission elects Mel Murphy president and faces $6 million shortfall as layoffs bite
Summary
At its March 18 meeting, the San Francisco Building Inspection Commission elected Mel Murphy president, confirmed Ruben Echinova as vice president and heard a director's report projecting a roughly $6 million operating deficit tied to falling permit revenues and recent staff reductions.
Mel Murphy was elected president of the San Francisco Building Inspection Commission on Wednesday after a roll-call vote that carried 5-2. Commissioners then confirmed Ruben Echinova as vice president in a unanimous vote.
The new leadership took office as Director Vivian Day presented DBI's February financial report, which projects a $6,000,000 operating shortfall for the fiscal year. Day said the department plans to use $2,100,000 from its operating fund balance, request $2,800,000 in deferred credits from the Controller's Office and reduce planned transfers by $1,100,000 to close the gap. She also outlined hiring freezes, cuts to materials and supplies and limits on travel and training.
"We will have no reserves," Director Day told commissioners while explaining that revenue declines and retiree payouts are intensifying pressure on the operating fund. She said litigation-fee recoveries were overestimated and that payouts for accrued vacation and wellness benefits could run "anywhere from 25 to 50,000 per person," creating additional short-term cost burdens.
Commissioners pressed staff for detail on specific revenue lines. Commissioner Walker asked about a roughly $1,000,000 shortfall in hotel and apartment license fees; Day said those fees are billed through property tax assessments and are not counted until actually collected. On layoffs, staff said Department of Human Resources applied civil-service rules, meaning reductions followed seniority procedures.
Public commenters including industry and tenant advocates urged swift department action. Rodrigo Santos of the San Francisco Coalition for Responsible Growth congratulated President Murphy and recommended expanding over-the-counter permitting to generate near-term revenue. Several trade and union speakers warned that deep staff reductions could harm emergency response and inspection capacity.
The Commission asked staff to continue pursuing all eligible federal and local stimulus and grant opportunities, to provide a clearer accounting of deferred credit recoveries and to return with a plan showing how proposed fee or policy changes would affect staffing and service levels.
The Commission also moved several housekeeping items on the agenda before turning to additional public comment and other votes.
