Building Inspection Commission - February 3, 2015 - Minutes
BUILDING INSPECTION COMMISSION (BIC)
Department of Building Inspection (DBI)
Tuesday, February 3, 2015 at 9:00 a.m.
City Hall, 1 Dr. Carlton B. Goodlett Place, Room 416
Aired Live on SFGTV Channel 78
ADOPTED June 17, 2015
The regular meeting of the Building Inspection Commission was called to order at 9:15 a.m. by President McCarthy.
1. Call to Order and Roll Call – Roll call was taken and a quorum was certified.
COMMISSION MEMBERS PRESENT:
Angus McCarthy, President Warren Mar, Vice-President
Frank Lee, Commissioner Kevin Clinch, Commissioner
James McCray, Jr. Commissioner Myrna Melgar, Commissioner
Debra Walker, Commissioner
Sonya Harris, Secretary
Tom Hui, Director
Edward Sweeney, Deputy Director, Permit Services
Dan Lowrey, Deputy Director, Inspection Services
Taras Madison, Chief Financial Officer
William Strawn, Legislative and Public Affairs Manager
Lily Madjus, Communications Director
CITY ATTORNEY REPRESENTATIVE
John Malamut, Deputy City Attorney
2. Discussion and possible action on the proposed budget of the Department of Building Inspection for fiscal years 2015/2016 and 2016/2017.
Ms. Taras Madison, Chief Financial Officer, gave a presentation on the proposed budget of the Department of Building Inspection for fiscal years 2015/2016 and 2016/2017 and discussed the following points:
Budget Goals (FY 2015-16 and FY 2016-17)
* Review plans and issue permits safeguarding life and property in compliance with City and State regulations.
* Provide inspections to enforce codes and standards to protect occupant’s rights ensuring safety and quality of life.
* Deliver the highest level of customer service.
* Implement efficient and effective administrative practices.
Budget Guidelines (FY 2015-16 and FY 2016-17)
* Similar to prior year, the department is submitting a two-year budget.
* FY 2015-16 budget was submitted and approved with the FY 2014-15 budget for this new two-year budget cycle.
* Mayor’s Office instructed departments to maintain general fund support at approved FY 2015-16 base amount.
Department Budget Instructions (FY 2014-15 and FY 2015-16)
* As a special fund department, accurate revenue projections are crucial to developing the budget.
* The department is awaiting the completion of the fee study to determine fees for next four or five years.
* Given the uncertainty of department final revenues and the department’s budget has increased over the past years, the department is maintaining budget at the FY 2015-16 base.
Budget – Revenues (FY 2015-16 and FY 2016-17)
* FY 2015-16 and FY2016-17 revenue projections are based on a 15% reduction in FY 2014-15 budgeted revenues. These preliminary projections are estimates only and will be revised once the fee study is completed.
* The department has adequate fund balance to cover the proposed $9.7M reduction.
Budget – Expenditures (FY 2014-15 and FY 2015-16)
* FY 2015-16 and 2016-17 expenditures remain at FY 2015-16 base ($72M). There are no major increases from the base.
* Major reduction in professional services due to reduction in FY 2015-16 projects.
Budget – Authorized Positions (FY 2015-16 and FY 2016-17)
* The approved FY 2015-16 budget adds .77 FTE or 1 new position.
Budget Summary (FY 2015-16 and FY 2016-17)
* To continue to strengthen department IT functions, previously approved funding is available for various IT projects including PPTS, Disaster Recovery, software/hardware upgrades etc.
* The proposed budget maintains funding for outreach and training to continue to improve overall customer service.
* Similar to FY 15-15, work orders to other city departments is the department’s largest non-salary expenditure ($10M).
* The proposed budget includes funds to continue the replace vehicles.
* FY 2016-17 materials and supplies budget includes an increase for new code cycle materials.
Conclusion and Next Steps
* The department proposes to maintain funding at current FY 2015-16 base amount.
* Maintaining funding allows the department time to plan for new fees once fee study is completed.
* The department has adequate fund balance to cover proposed fee reduction.
* Previously approved funding is available to fund department projects including IT, Building Improvements, etc.
* Once the fee study is complete, the department will revise revenue estimates.
Budget – Schedule (FY 2015-16 and FY 2016-17)
January 21, 2015 (Regular) BIC public hearing on proposed budget
February 3, 2015 (Special) Follow-up BIC meeting for final approval
February 5, 2013-February 19, 2015 Finance prepares the Mayor’s Budget submission
and inputs the budget into the Budget System
February 18, 2015 Regular BIC Meeting
February 23, 2015 Final budget due to Controller and Mayor’s
Office (Charter deadline)
June 1, 2015 Mayor’s Office submits the budget to the
Board of Supervisors
June 2015 Budget and Finance Committee review of the
Mayor’s Budget (date of DBI review TBD)
July 31, 2015 Last day for Board of Supervisors to adopt
Commissioner’s & Staff Question & Answer Discussion:
* Ms. Madison gave an update regarding the RAD Program. Fire and DBI met with the Mayor’s Office of Community Development
o Focus on plan review
o 11 permits Over the Counter
o Staff is available to work with them directly
o Program will not really impact DBI inspections
o Program will try to start in October
o Chief Bosque talked to them and only one organization is funded through DBI’s code enforcement program
o Residents will be relocated while construction is going on
o At this time money does not need to be added to the budget
o Building, Plumbing, and Housing Inspection vacancies - Some positions vacant in “project funded” positions which is good to avoid layoffs.
* Commissioner Walker thanked Ms. Madison for the update and said that she was concerned about some issues. Building and Housing need to work on connected cases. Due to fires in older buildings, staff needs to look at inspecting them more frequently. Need to make sure aging housing inventory is safe.
* Ms. Madison said that there will be an update on the fee study and Peg Stevenson of the Controller’s Office would be coming to the BIC on February 18 to give the presentation.
* Commissioner McCray asked if there was a codified list of fees, and Ms. Madison said yes.
* President McCarthy said that there probably would not be much adjustment at the Board of Supervisors level.
* Ms. Madison said that she hopes the fee study would already be approved, and then there would be no problem. Also the Budget Analyst would look at it too.
* Commissioner McCray asked about the fund balance? Ms. Madison said there is un-appropriated fund balance left over $36M. Also the fund balance has to be used for anything tied to fees (e.g. budget and annual projects.)
* Repair and demolition fund has over $4M.
* Strong motion fund is used for seismic safety.
* Commissioner Walker asked if money was in the fund balance for the new building? Ms. Madison said the money is already put aside. DBI has a reserve of $14M and a balance of $6M.
* Vice-President Mar asked about funds for special projects? Ms. Madison said the funds are for elevators, and repair work with DPW. Funds will also be used for improvement of the HVAC system – air conditioning system, and PPTS.
President McCarthy called for public comment and there was none.
Commissioner Walker made a motion, seconded by Vice-President Mar to approve the
Budget of the Department of Building Inspection for fiscal years 2015/2016 and 2016/2017.
Secretary Harris called for a roll call vote:
President McCarthy YES Vice-President Mar YES
Commissioner Clinch YES Commissioner Lee YES
Commissioner McCray YES Commissioner Melgar YES
Commissioner Walker YES
The motion carried unanimously.
RESOLUTION NO. BIC 003-15
Commissioner Lee made a motion, seconded by Commissioner Walker, to adjourn the meeting. The motion carried unanimously.
RESOLUTION NO. BIC 004-15
The meeting was adjourned at 9:38 a.m.