DBI faces $30 million revenue gap amid falling permit fees and staffing concerns

San Francisco's Department of Building Inspection (DBI) is facing a significant financial challenge, with permit and plan check revenue down by $20 million since 2018. This decline is primarily attributed to a $14 million drop in plan check and premium plan check reviews. Currently, DBI employs approximately 326 full-time equivalent staff, with total payroll and benefits amounting to $52 million, averaging $160,000 per employee. Notably, 45% of these employees are involved in inspection services, which generate only 7% of the department's revenue.

The stark contrast between employee costs and revenue generation raises questions about the justification for maintaining 93 employees in permit services amidst declining revenue. The total payroll for the 146 employees in inspection services is around $23 million, excluding transportation and other direct expenses, while these services only bring in between $5 million and $7 million in fees.

To address the $30 million revenue gap, DBI is considering several strategies. These include increasing permit and plan check fees by over $20 million, focusing on over-the-counter plan checks, and potentially outsourcing non-over-the-counter plans to licensed professionals. This outsourcing could also help eliminate the current permit backlog. Additionally, there is a proposal to charge inspection fees directly to building permits that require inspections, rather than embedding these costs within plan check and permit fees. Projects that necessitate re-inspections or have missed appointments may also incur additional charges.

As the city grapples with these financial hurdles, DBI is exploring various avenues to stabilize its revenue and ensure efficient service delivery. The outcome of these discussions will be crucial for the department's future operations and its ability to meet the needs of San Francisco's growing population.