look forward to city manager's office you here soon ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ready to begin and good afternoon today is february 3, 2015, this is a special meeting of the

building inspection commission i'd like to remind everyone to please silence all electronic devices. the first item is roll call arrest commissioner mccarthy commissioner vice president mar commissioner president clinch commissioner lee commissioner mccray commissioner vice president melgar commissioner walker we have quorum and the next item is item 2 discussion and possible action on a proposed budget of the department of building inspection for a fiscal year 2015-2016 and 2016-2017. >> good morning commissioners deputy city attorney for the department of building inspection in your packet you have two items and both of the items from january 21st meeting it is did budget that excludes the memo

from the director duffy giving a highlight of the budget and also prepared kind of a high-level power point summary i'll go over to be in the on the same page i'd like to go over some highlights of the budget and then especially i'm happy to answer any questions you may have. and an update on the fee study you've talked about with the controller's office i mean that that fee study impacts what will happy with the budget. >> yeah. so why not get started first of all with the budget goals for the 2015-2016 and 2016-2017 and so the proposed budget funds positions training and supplies and outreach and it projects this is the department of such reviewing the plans and the license in compliance with the state regulations to provide state codes and standards to

protect the occupant rights and deliver the highest level which customer service as well as efficient and effective administrative practices o are similar since it has been in existence if focuses on the salaries and it projects and training as well as community outreach so the budget guidelines so in the prior years submitting a 2 year budget that budget is for 2015-2016 and 2016-2017 and because last year, we submitted a two year budget for 2014 we actually have an proftdz 2015-2016 bucket so basically that budget serves as the base going forward and the mayor's office instructed all departments to have the 2015-2016 funtsdz e.r. funds at that level as i said that

doesn't impact us for the special revenue funds because of the everything that's going on with the economy this is good for citywide this is the first time at least three or four budget no calls for the budget reduction so at dbi our budget instructions in many ways similar to the mayors budget instructions i'm sure you're aware of we've been in the midst of a few studies back in mayor or march of 2014 and as a special revenue department accurate revenue projections determine our budget we don't get support from the general fund so we're waiting the

completion of the fee study he know there will be recommendations for reductions in our fees we are president to wait to kind of get an idea of our role revenues 0 how much fund balance so given the final revenues as well as the fact the departments budget has been increasing we've decided to basically separate our budget at the baseline budget we talked about that before so if you want to look at the next slide basically, we have budgeted revenues and as you can see we are projecting our revenues to go down by $9.7 million and the reason being we've just basically, the discussions we've had with the consultant we trying to gage

whatever our reduction a 5 percent renewals e restriction that means we'll bring in $58 million in revenue we know it's a balance out 9.7 balance to balance that budget once again i keep saying this again and again again, we don't know what the revenues will be but at this point we'll wait for the fee study aid once we get a fee study registrations and the schedule we'll rise that on the expenditure does the good news is that we are not proposing inform make kits based on what we budgeted on 2015-2016 last year we're geological going to keep it at $72 million from the mayor's office last year so because we're like $72 million we won't have to

worry about cutting at this point in time for 2015-2016 we can keep the budget as is and basically use fund balance to balance the budget so for expenditures the basic reduction in the budget is a major reductions in professional services because of a lot of projects and basically a reminder projects go projects are the budget will be taking money from the annual budget and we'll put the money aside not to revise is it is ongoing because it is for the multi year in 2015-2016 owner the past two years so much money in project funding we have money set aside and so we'll not need as much money in 2016-2017

so for authorized positions once again we're not proposing to make reductions last year when the budget watsz approved it included one new position for an it position in 2014-2015 we had every year new positions if you look at the trend we're down from 209 authorized positions to 3 hundred and 13 for 2015-2016 and those are authorize positions we've been steadyly going in the construction industry so basically i'll go over our budget summary for the functions we have a lot of money in projects like i said for it projects we've quota money for the disaster recovery and

hardware updates and our italy's manager has submitted a low budget for 2015-2016 to get the department up to speed for technology and that coincide with us going little we have funding a about $7 million in technology be projects that are budget that money lasts over a few years to we could not have to slide on the it projects we may change the training to improve the customer service similar to 2014-2015 our largest non-slayer was work orders about $10 million for the various departments including the city attorney and the controller's office dpw and purchasing reduction that's our largest non-similar month departments that will be salaries we maintain the supplies in

2015-2016 but in 2016-2017 you'll see a slight increase next cycle comes in if you look at the next page you'll see basically this is the high-level of the department and where the expenditures are you'll see basically salaries we have salaries and premier pay and there are no changes from the base to what we're recommending i've said before so basically in 2015-2016 request about $72 million the same in 2016-2017, of course by 78 we have a new fee study out we'll be before then before planning for 2015-2016 we'll make adjustments so conclusion and next steps the

department is focusing on the base amount allows the department to plan for new fees they've got balance budget and approved funding for it and the buildings improvement and once the fee study is approved we'll have an estimate that is the summary of the budget i want to follow up with the two overriding questions about our budget and had to do with the rad program i have an update we've had an opportunity for it met with the market values to talk about the project we met about a week ago they're planning on the review i believe the projects over the counter it looks like we will be able to accommodate them in our normal

project working with them we'll have someone they can work directly with but not we have a major inputs on the inspection side we inspect the hope is that there will be start spuksz and have permits by october we don't know if that is going to impact the inspections i will - he was in the meeting to give you more details he'll talk about the plan restriction and rosemary talked to them how 0 do we balance the community outreach with the same organizations it's my understanding that only one organization is going to be involved through our code enforcement outreach program and in addition our meeting it looks

like a lot of what is going to happy the residents will be relocated we don't know if there will be as many complaints so baselines that meeting discussions for now we do not - we're not proposing to add anything to the budget it can be magnitude in and up in the air but i mentioned earlier we have vacant positions including the building inspector and plumbing inspector and housing inspector we see have a lot of inspection vacancies and engineer vacancies and have positions that are vacant in the projects that is actually better in some ways we don't want to staff up once the works goes away we have project positions we can also use things

around at this point in time we're going to bet the budget as see and we can make adjustments later. >> you commissioner walker. >> thank you very much for that update i know that several of us have concerns about making sure the transitioned happy so it is also connected because it is one of those with are requires both building and housing to work together with the recent slate of fires that have been going on in some of our apartment buildings those are not the residents holes overview hotels we've focused a huge and very effective program but some of the older apartment buildings and maybe we need to look at do we need to inspect them more frequently i know that we don't know what the issues were but there's like

three or four large buildings that have been on fire and some concerns about making sure that we inspect frequently so i hope he can look this together it is making sure our housing inventory that's aging is safe there's a there's a there's a willingness. >> and an update on the fee study pat stevenson from the controller's office and the goal to come back on february 8th to the commission we - i had a chance to talk with the controller's office and it appears the fees we normally charge haven't been studied there's a round 2 work with the staff to come up with some time

studies on certain fees that will have to be thrown in the mix i'll get an update probably next week they'll scheduled to come in on the 18th but not sure about the level of detail with not all the fees that needed to be included i'm happy to answer any questions you may have. >> commissioner. >> do we have a qualified list of fees. >> we do. >> we turned them over to the fee study people they missed some and yes. >> so anymore questions one can't feel because this kind of you pointed out kind of few

times represented what they approved last year so you can imagine this is what we're looking at this not going to be many adjustments at the board of supervisors are you hoping for that last year i think you had to do a lot of back and forth and i don't know much has changed really. >> yeah. so the hope we're not making changes this will be approved but, of course, the budget analyst will do his due diligence of looking at the current year spending of we get approved are we on track now we have other information norman no changes in the base there shouldn't be that ma many adjustments to it. >> yeah. okay. >> commissioners any further questions on this?

>> please explain to me the fund balances its sources and uses and what regulation is required to release what when and how. >> okay. so this is not working so we have fund balance in a variety - we have a variety of fund your basic funds are annual funds as the building inspection funds it the unappropriated balance that is money that is left over after we get our projects about $36 million that's what we have no our unappropriated fund balance before when i said we have cut $9,000 in our projected reviews based on the 50 percent reduction we used $10 million in

theory we have $20 million left in fund balance it probably will go up we say might have savings so it can be used for anything we normally use it for tied to the collection of our fees so inspections and plans that's what our money can be used to supplement our budget so even though we have projects the original funding once we move it into other project funding but the source it that so overall in total we have $39 million in fund i fund balance so 0 the other ones in demolition funds has $4 million and the strong funds that is specific things to be used for seismic safety and the commission has thirty thoutdz thousand that's specific those two are state fees we

collect and get to keep a little bit off the top so that's why we have those. >> thank you. >> thank you deputy i'm sorry commissioner walker. >> is there money in that fund balance on the projected real estate costs that are coming up with the new building that kind of thing tenant improvement money can we put that in there. >> for the current building we have money set audit aside and for instance i gave you the unappropriated fund ball but we have a reserve that's not appropriated about $4 million we use about $8 million of it for that building as a loan we have $6 million but i didn't include that because basically go that's been put aside 24 is only money that has not been dedicated to my

purpose. >> commissioner and you also mentioned a little bit of the fund for the special projects can you explain that a little bit. >> yes. >> what is it for and how - >> kur8 we have hope to continuing projects and money for an elevator update in 2015-2016 we know we're going to be moving to another building and anyone that is in the building knows the elevators have issues this is on the horizon for a while we're working with dpw they're trying to get a contract out we've got plans to actually remodel the first floor to do it more customer friendly that is sloped to happen been the end of the fiscal year and improvements there are some issues with the -

>> the air conditioning we have money set aside for the p p t s and money set aside in a separate for technology in general we have all the money set aside it is probably about $14 million or so might be about $16 million or so damaged for you'll those projects and so that's what i mean when i say we have money set aside those will take a couple of years but we have the money set aside. >> okay i believe that is all commissioners questions thank you so much deputy for the update and good luck to the month of february on this thank you. >> thank you. >> we need to have a motion on the item. >> okay.

>> any public comment on this item? seeing none okay. no comment so commissioner walker please. move to approve the budget as presented. >> second. >> there's a motion and second to approve the budget and that is a roll call vote vote commissioner mccarthy commissioner vice president mar commissioner president clinch commissioner lee commissioner mccray commissioner vice president melgar commissioner walker that motion passes unanimously our next item is jrnlt is there are a monoxide to adjourn. >> yes. >> move to adjourn. >> second. >> all commissioner in favor any opposed we're adjourned it's

9:38 a.m. >> thank you

>> we are going to get started soon we're going to get started soon if you could turn the overhead projector off sfgovtv all right. everyone ladies and gentlemen, please come in and take our assets i'm

supervisor cohen chair the commissioner lee to my left is supervisor jane kim and to my right is supervisor wiener vice chair our clerk today is miss andrea ashbury and i would like to take a moment and acknowledge as well as thank jessie larson and jonathan that will be tifgz this broadcast on sfgovtv. >> announcements? electronic devices. completed speaker cards and documents to be included should be submitted to the clerk. items acted upon today will appear on the february 10, 2015, board of supervisors agenda unless always state and madam clerk item one. >> a resolution for is zoning control for 8 most period west of