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Building inspection fee cut draws concern from supervisors over enforcement and reserves
Summary
DBI presented a proposed overall permit fee reduction of about 7% and plans to upgrade technology and hire inspectors. Supervisor Wiener warned the cut risks weakening code enforcement; DBI leaders described reserves and hiring plans to prevent layoffs and expand enforcement capacity.
The Department of Building Inspection presented its proposed FY2015–17 budget and a planned 7 percent overall reduction in permit fees at the committee hearing on June 18.
Tom Hui, DBI Director, described the department’s mission to safeguard life and property and outlined revenue pressures that produced a roughly $2.1 million reduction tied to fee policy changes. He said DBI is advancing technology improvements (a program referred to in presentation as 'Sarah' to upgrade permitting and inspection systems) and expects to provide permitting and inspection services for several new housing programs, including the RACC work for more than 3,500 units.
Supervisor Wiener voiced concern that fee reductions could weaken code enforcement, given wide needs across the city for housing and safety inspections. "We have enormous code enforcement needs in this city," Wiener said, urging consideration of using reserves to boost enforcement rather than reducing fees. Deputy Director Tyrus Madison and Director Hui responded that DBI plans to establish two reserves (a stabilization reserve and a retirement/health reserve), that the department is filling inspector vacancies and hiring additional housing inspectors, and that the fee schedule will be monitored over the next three to five years to avoid layoffs in a downturn.
DPW and DBI budget analysts said the overall 7 percent fee reduction is equivalent to roughly $4,000,000 across the year on aggregate permitting revenue; DBI said that figure is an annual overall impact, not a per-project reduction.
Why it matters: Permit fees fund inspection and enforcement capacity. Supervisors pressed DBI to show how reserves and hiring would sustain enforcement levels even with reduced fee revenue.
What’s next: DBI will continue to work with the Controller and budget analysts to monitor reserves and the fee schedule and report back to the committee.
