Commission recommends fee changes tied to DBI fee study after heated public debate on CBO funding

On May 15 the San Francisco Building Inspection Commission recommended that the Board of Supervisors consider Ordinance file 240457, legislation to revise DBI's fee schedule following a consultant fee study. After extended public comment and commissioner debate, the commission voted 4'to
2 to forward the ordinance with an explicit recommendation that the Board may consider additional adjustments up to 6.5% across the board to help fund outreach, education and community-based code-enforcement partnerships.

DBI deputy director for administration Alex Koskin summarized the NBS fee study and the department's phased implementation plan. The consultant concluded DBI is under-recovering costs and recommended full cost recovery of about $23,000,000. Staff proposed phasing in increases over three years and using reserves to smooth impacts; Koskin said the proposed changes would raise roughly $10,000,000 in the coming year. He told commissioners that new fees would be effective 30 days after the mayor signs the ordinance and that staff expect implementation on Sept. 1.

Community speakers from tenant- and tenant-support organizations urged higher fees so CBOs that deliver outreach and code-enforcement services could be sustainably funded. Molly Goldberg of the San Francisco Anti-Displacement Coalition and multiple speakers asked the commission to recommend a 6% to 10% across-the-board increase to restore CBO funding they said has been reduced; one speaker cited a former full funding level of about $5.2 million and urged the commission to act.

Commissioners debated competing policy goals: raising fees closer to full cost recovery to stop drawing on reserves versus avoiding steep increases that could harm permit applicants and development. Deputy City Attorney Rob Kaplan advised that the commission's recommendation can state a range for the Board but that if the Board chose increases outside the commission's discussed range it might require returning the matter to the commission. Staff warned that if the Board raises fees and also keeps the general-fund CBO contribution, the department could be over-recovering; staff said the general fund contribution is currently proposed at $4,320,000 for the coming year.

After extended discussion and a friendly amendment to avoid being overly prescriptive, the commission voted to forward the ordinance as drafted while leaving open the possibility that the Board could increase fees up to 6.5% in aggregate. The motion carried 4'to
2 (President Alexander Toot, Commissioner Chavez, Commissioner Newman and Commissioner Williams voting yes; Vice President Shattuck voting no). The ordinance next moves to the Board of Supervisors Budget and Appropriations Committee.