Transcripts For SFGTV Building 20240704

Virtually. Commissioner williams. [off mic]. Is your mic on . Here. Just one moment. Okay. Next on the agenda is the item 2 discussion if possible action to elect an interim president of the Building Inspection Commission. So we will take nominations. Im not sure if you know how to how would you like to handle that . Supposed to do nominations first . Yeah. Do you have the rules in front of you . Sorry deputy City Attorney rob kapla. I reviewed them recently but this is a situation with a band new that we dont have a normal situation. Its want the first feeting in february so the bylaws allow to select an interim president to preside over this meeting and the next until we have an officer election for president and Vice President on the agenda. Go ahead. So its my understanding that we should still follow the process of the regular election which is first allow for Public Comment. Second is to request nominations. I have a question how we do that. Is it fet bell cal or by raising hands and after that the presiding officer and the Commission Votes and in the order received and the first candidate that receives the majority of votes is elected to the office and Public Comment, nomination, voting in order until someone receives a majority but theres two things i would like your guidance on City Attorney which is who should be the presiding officer and second is are we doing nominations by alphabet cal order by the commission or raising our hands. Deputy City Attorney rob kapla i believe the Commission Secretary should preside until we have an interim president and that would be to first if you have the option with your kiosk to raise your hand if you would like to nominate someone and we will take nominations until there are no other nomination then we will vote on the nominations in the order in which they were received so would the Commission Secretary to see if theres any nominations from commissioners so i think raise your hands if you can. Okay. If you have a nomination. Just bear with me because its my first time using this screen so if you raise your hand, and i see angie and im not sure did you request to speak about . I did and like commissioner shad i guess did as well. Im not sure how that works. Public comment first. Okay. Is there any Public Comment in house or virtually on item 2 . Is there any other Public Comment . Okay. Let me go back. Sorry. Commissioner commissioner alexander coop. I would like to nominate myself commissioner chavez, commissioner williams in that order. Can you repeat that nominate . Myself commissioner chavez, commissioner williams in that order. Commissioner newman. I would like to table this for this meeting and have a presiding officer for this meeting. I think that should be commissioner tut and shes the longest sitting commissioner on the commission. Deputy City Attorney rob kapla. That would be what the interim president would be the presiding officer essentially until we can calendar a permanent officer election. Okay. That was all . Commissioner shaddix. I would like to second commissioner tut for interim president and commissioner sommer. Can you guys hear me . Yes. I was always going to nominate commissioner tut. Okay. Roll call vote. Okay. So i will do a roll call vote on the nomination of commissioner alexander tut beginning with commissioner commissioner alexander tut. Yes. Yes. And commissioner chavez. Yes. Commissioner neuman. Yes. Commissioner shaddix. Yes. Commissioner sommer. Yes. Commissioner williams. Yes. The motion carries unanimously. So do we we dont have to okay. So the nomination the motion is for commissioner alexander tut as the interim president of the Building Inspection Commission. [applause] so were moving on to agenda item three general Public Comment. We will take Public Comment within the commissions jurisdiction that are not part of this agenda. Is there any in house Public Comment . Is there any virtual . Im seeing none. Moving on to item four, directors report 4a directors update. [off mic]. Can you check your mic director . Sorry. Pardon me. I would lig to congratulate interim president tut on her election and i appreciate your willingness to serve and look forward to partnering with you and welcome to our newest commissioners chavez and commissioner williams. I enjoyed the opportunity to get to know you yesterday when you toured dbi and the permit center. I appreciated your thoughtful questions and interest on in your work and what were trying to accomplish. I look forward to working with you in the months and years ahead. First i would like to take a moment to congratulate our fabulous Commission Secretary, sonya harris, and monique mustapha for being recognized for their efforts to promote well being at dbi. They holded a kickoff event for a recent fitness challenged that was featureed in the citywide spot light and that heights programs that support employees well being. Good job sonya and monique and thanks for promoting well being at the work place. Now on to permitting. We have a busy agenda today but i want to highlight one item in particular agenda item 7 a presentation about our permitting times and the progress were making in reducing our review times. When i started in this role three years ago we immediately set about changing the way we conducted our business. Our first effort was to prioritize our reform initiatives to improve transparency and to ensure that we were holding ourselves to the highest ethical standards in every situation. These reform initiatives were subsequently formalized by the city controller and we have made tremendous strides implementing those refuels over seen by our compliance manager, chris, who is here with us today. His position was created last year to ensure that our department maintains the highest ethical standards. Next i laid out Clear Service improvement goals including a greater emphasis on serving our customers and using data to measure the work that we. Do we established new metrics instituted new rigor in our Data Analysis and began identifying the key areas where we could improve our operations. Megan who is also here with us today our principal data analyst leads that effort and has done an incredible job of creating dashboards and other data tools to help us make data driven improvements. Then we hired a new Deputy Director neval perera who is actually here with us virtually today. He leads our permit service team and he laid out a plan to improve our processes and has had begun to implement that plan. While some of our improvements bore fruit immediately progress on several of our most critical efforts was less clear for a number of reasons. Those reasons include the backlog caused by covid, the seasonal nature of our work, and i would say the most of all is because of lagging indicators in permit issuance data. In other words, it takes a while really to know how well were doing. That said im proud to say our plan is working and were making gains on multiple fronts. I am looking forward to sharing what we accomplished show far and want to acknowledge that we are not yet meeting some of our goals. Were still at the beginning of the journey and have a long way to travel but theres no question were on the right track and i want to take this moment to thank our staff for all their work and willingness to embrace change over the past few years. As you later will see this morning were off to a great start. That conclude my directors report. Thank you. Two things i forgot to have the land acknowledgment read and also for listening Public Comment call in number is 4156550001 access code 26620912279 to raise your hand for Public Comment on a specific agenda item press star three when prompted by the meeting moderator. Thank you. The land acknowledgment please. Thank you. The building inspection build untiles that were on the unceded ancestral homeland who are the original inhabitants of the San Francisco peninsula. As the indigenous stewards and and in accordance with their traditions the supervisor ronen have never ceded, lost, nor forgotten their responsibilities as caretakers of this place as well as for the all peoples that that reside in their traditional territory. As guests we recognize that we are benefited from the living working on their traditional homeland. We wish to pay our respects by acknowledging the ancestors, elders, and relatives of the supervisor ronen community by affirming their sovereign rights as first peoples. Thank you. We will move on to 4b update on Major Projects. Is there a presenter for 4b . Yes. Can we get the slides. Oh sorry. Yeah, theyre coming. Can i make a request as were going through these reports because a sentence or two why we report on this would be helpful, like what the lens we should look at this through . Sure. Thank you and to your point interim president tut and for the new commissioners the purpose of this report is to show how were doing in relation to Major Projects and with regard to filing of permits, the permits that are filed and files are permitted lets say and the notable permits that are issued and what has been completed signed off, and granted occupancy in the previous month, so these projects are projects that are greater than 5 million in valuation, and we look at this every month in relation to what you know we issue the file issued and sign off the previous month, so if we can have the next slide monique please. Okay. So in june of 20231 permit was an estimated construction valuation of 5 million or more was filed with dbi. This was 168 units Affordable Housing building at 1515 south van ness. The valuation on that the valuation of work i should say is 59. 6 million and can we get the next slide monique please. Okay. So last month we issued three high value permits with a total valuation of 69. 8 million. One permit was for a 90 units Affordable Housing building at 2550 irving street. Its valuation was 50 million. Another was a renovation of a vacant building into a Behavioral Health clinic at 822 geary street, and the valuation on that was 11. 9 million and if we can have the next slide please. And lastly dbi finalled a high value permit one for 200 van ness avenue. Thats a new Student Housing and performance base. The valuation of the work on that project was 60 million. Another was for a 56 unit mix use building at 2898 sloat street and the valuation of that project was 30 million. And thats my update on Major Projects. I am available for any questions that you may have. Any commissioner or questions and comments . We can move on to the next item. For the next one im curious to see how this chairs to prepandemic and this is what i guess or august or september as 2019 versus now, just kind of cur cower to compare. Certainly and if we have the same month of 2019 to compare the numbers. Absolutely, yeah. Any other questions, comments . Yes. I think i have been requested to speak. Can you explain the valuation process and how these Certain Properties receive these certain figures . For example the geary Street Property why thats the one i am looking at and why its 11. 9 million as the valuation . Yeah, i want happy to do that commissioner. The valuation is established based on the cost of the work, so the larger projects obviously will have greater valuation so simply its a calculation based on the amount of work that needs to be performed to complete the project. Great. Thank you. Any other comments, questions . The next item is 4c, update on dbis finances. Good morning commissioners and congratulations to interim president tut and again welcome to commissioners chavez and williams. Im alex [inaudible] Deputy Director of administration for dbi. I will present today the regular monthly finance update, and for the commissioners that are new and refresher for existing commissioners this is a monthly look at the current finances of dbi, what happened in the previous month, what has happened year to date, the fiscal and next month i will provide again a presentation that i had created when i first started last october that shows what to expect in these monthly meetings. Some months will just be a regular update. Some month when is the budget is happening there will be extra presentations on that. The fiscal year for dbi and for the city is july through june so we have just started a new fiscal year however the books arent closed yet, so in september we will provide a look back at fiscal year 23 and how we ended up, so i will provide also more information at the next meeting about the departments current financial status, its fund balance and the history of how we got to where we are today, so going through this i will always add one thing at the end just a brief update about the budget status. The budget is not signed yet. Its expected to be signed by the mayor on august 1 but for all intensive purposes is done and very unlikely to change so i will give a brief update about that. Next slide please. Starting with revenue as i mentioned were now in the next fiscal year, but the books arent closed. Things are still coming in. Revenue is for the most part done but theres still some transactions that are happening so its too early to give a Financial Financial report on the Previous Fiscal Year. One notable item is that in june things seem have picked up and our revenue has increased compared to what we had projected in q3. We have a million more than expected. Thats great news. Its too early to call that a trend but we hope it continues. And where we are right now and where we expect to be at the end of the year is about 54 million total revenue which is about 4. 2 or 7 below what was budgeted. Next slide please. Here are the revenue actuals. I will go over this a bit. We have the funds, so theres operating funds and non operating funds. The non operating funds are special revenues. There are various funds for very specific purposes repair and demolition fund, building standards fund. Those tend to be very small and funded by very specific fees or specific charges that are not part of our larger operating budget. I would be happy to discuss those but theyre very small, the non operating. Then the next column is the account description. Theres very types of revenues, charges for services. These read fees we charge the public. Expenditure recovery. These are services that we provide for other city departments so not that big although we are exploring charging more departments for the work that we do that we dont currently charge for. Interest and investment income. This is really just the interest that we receive on our fund balance so in the previous decade we have had significant balances and that earned significant revenues; however, were rapidly depleting that finished balance so this interest revenue is expected to decline. Licenses, permits franchises. This is the apartment license fees. This is charged to apartments of various unit sizes and it funds our housing inspections. Other revenues. These are miscellaneous very small and transfers in these are transferred theres only one in the Previous Fiscal Year and for a board add back for a very specific purpose i believe an out reach effort. The next two columns will show the Previous Fiscal Year so still in fiscal year 22. The budget and actuals for the entire year, and then the next two columns are the budget and actuals for fiscal year 23. Normally its year to date so now its the entire year although theres still more expected, and the next column shows year to date how much of the budget we have received currently. The last two columns twice a year at six months so january and then in quarter three we will under take a big effort to come up with projections how we think were going to end the year so we can plan if we think theres a big deficit or surplus we know ahead of time and not taken by surprise, and so you can see the differences in what we had projected for the last update in q3. The most significant one is the first line the charge for services. We thought we would only get 44 million but so far we received 45. Eight although again the 45. Eight is not the books arent closed. Some is unearned revenue so that number may go down some. Next slide please. On the expenditure side expenditures are less complete than revenues are. We are still were only 81 spent of our budget, and theres still many, many outstanding invoices. Businesses are often very slow in just suppliers of our Business Services are slow with invoices and receive them many months after the fact so things are still moving and we will report on final expenditures when the books are officially closed. On the salary side there one pay period hasnt posted yet or did not post by the time this was updated so the numbers are not complete. Salaries post two weeks after payday so a little bit into the july the final period of the last fiscal year post, so next slide please. Again these are the same numbers, the same format as revenues, and the actuals are still moving, so well report that next time. Notable things are labor will definitely increase when the last pay period posts. We are still expected non personnel services, materials and supplies. Those actuals will grow as we get and pay more invoices and the City Grant Program weve only spent 3. 1 of the 4. 86 total contract ah mount, so many of those organizations are very late typically. Their invoices arrive months after the year closes so we will be reviewing those and paying those well into this fiscal year for the Previous Fiscal Year. And services of other departments as well q4 billing doesnt happen until early august usually, so other city departments we dont have their q4 bills from them so the 13. 4 will definitely grow. And then on the non operating side i think those are pretty static, and it looks like a large amount but really what it is just a technical revenue transfer from our fund balance that has not posted yet, so again final accounting will be provided in a future meeting. Next slide please. Now part of this report is also the number of permits which informs is kinds of a good proxy for our revenue, and what we show is Previous Year month to date versus this year month to date. Now, we have the entire year. These numbers should be final and should not change, and where weve ended up is that our total number of permits is 7 lower than the Previous Year, and the valuation of those permits is 10 than less than the Previous Year, so next slide please. So here are the actual numbers, and i would like to point out for all the commissioners that the largest our fees are very progressive in that the largest projects contribute a large percentage of our total retch new and those large projects are not regular. Its difficult to predict. You never know when they will come in or the times what will be so one large project can add 200 million of valuation which can be very significant fee revenue, and so that is an interesting thing to look at, but really we have to be reactive. Its very difficult to be proactive and project what fees are in the future. Nobody has a crystal ball or knows what will happen with the economy so its difficult developing a revenue budget and projecting what will happen. I would like to give an update on the budget as it stands right now. I will go over in a future meeting all the different phases of the budget but were now currently in the full board phase i believe, the full board has the budget and finance committee has done their part. The budget has been moved to the full board of the full board will approve and send to the mayor and then the mayor will sign. At this phase very few changes are made. I think everything is mostly done and its very unusual for something to change at this point, so the budget that was submitted to the bic in february is largely what was approved final with one very notable exception. The cbo grants, the Community Based organization grants. Those were submitted in february as part of the budget. They were removed in the mayors phase of the budget for the june 1 budget, and then have been added back through the board of supervisors phase of the budget. The amount was the contract amount that the organizations received is 4. 86 million but the add back was 4. 8 so about 60,000 was not restored and we expect that to be fully approved. The mechanism which the funds were add back is a transfer from the general fund so dbi will now receive an ongoing annual transfer of 4. 8 million from the general fund, and that is where it stands right now. We have informed the Community Based organizations of the change of the 4. 8 and the approximately 1 reduction in their amounts going forward, and weve let them know that the funds have been restored and to please continue their work. Thats my update for today and i would be happy to answer any questions. Hello i have a question. So you stated that theres challenges in projecting revenue because large projects you dont know when the fees will come in and correct me if i am misstating that. With that said and i am wondering and if you wouldnt mind explaining how do you come to the projections for revenue . So like in the reports it was projected revenue whats the process by which you come to those figures . Well, for the year end projections for example at quarter three we talk to our permit services staff, what do you see happening . Are things increasing, decreasing . We will talk to our revenue team. How much are you getting per day . How steady is it . And then we will try our best to estimate what has been happening and what we think is happening based on what is happening but you never know a large Apartment Building could come in the next day and get a ton of revenue or dry up. Theres some seasonality and theres some timing factors. For example, every three years theres a Building Code update that happens at the end of the calendar year that happened last does so we witnessed lots of people coming in to try to get the permits in with the old rules before the new rules took effect so that created a bit of increase in revenue and we understood that, so that created a challenge for our six month projections because we just recently experienced an uptick and we knew it would probably not continue and it doesnt. I think january through may had been very, very slow and its just very difficult to project, so next year for next years this current new years budget we have projected and put input into the budget and we have assumed an 18 decrease in the demands for our services, so were hoping that is an 18 decrease from fiscal year 22 which at the time of Budget Development was the last full year that we had, so in fiscal year 23 the year that just closed we expecting about 7 less than fiscal year 22, so if this new current fiscal year is less than 10 worse then the last fiscal year then were in good shape. Again its a very, very difficult thing to project. We spoke with the citys office of Economic Analysis and tried to get their opinions on what they thought would happen, but its really just our best guess based on what we have seen in the past and intuition from our permit staff and industry people that we speak to. Okay. I have another question. Thank you so much for the presentation today so it does look like it sounds like the number might change but were expecting a deficit for this year . Yes. So who loses from that . How do you remedy the deficit . What read impacts on the department . So started in 2010 there was a huge construction boom and it out paced expenditures and built up a large fund balance and the short answer it will come out of the accumulated fund balance and paying for it with one time balances. Those will not last forever. We already committed all of it balance the next two years of our budget. That doesnt assume any revenue increases which we will likely need to discuss at some point during this next year during fiscal year 25 Budget Development. Thank you. Are there any other commissioner comments or questions . Okay. Will the at our next meeting the fiscal year 2324 basically will be brought in and then the fee increase is already presumed, right, and then we have the opportunity to consider that again when we have the fee study, the fiscal the fee increase and how that will impact our budget. Can you just talk about timeline between now and just what are the budget timelines between now and i guess our february budget meetings . Sure. Thank you interim president tut for reminding me and deputy City Attorney rob kapla. As part of the fiscal year 24 budget also assumed is a 15 across the board fee increase. There is currently an ordinance that is making its way through the budget process. Its tied to the budget, budget trailing legislation. It has already been discussed by the committee. Possibly the full board yesterday but im not positive and is expected to go through as is and be adopted so that would mean our fees will increase 30 days after the mayor signs it or 30 days after 10 days after the mayor declines to sign it which is unlikely to happen so the mayor typically signs the budget on august 1, and so our fees would be our fee increase would be effective on september 1. We are also currently in the middle of a fee study to review department costs, assign the costs to the various fees that we charge, have the whether or not we should get rid of some fees, charge new fees for work that were doing. There is existing legislation that has authorized fees that we dont currently charge. There is work that we do for other city departments that we dont currently charge for so were investigating all of that. The results of this fee study are expecting to come out in the fall, so i think by november at the latest, and there will definitely be a lot of discussion around this. I think there are political implications here. The Mayors Office is very interested. I am sure the bic will be very interested in the results of the fee study, and each line item fee will we have a consultant doing this fee study for us and the results of this will be line items this fee should be this amount. This fee should be this amount and that may or may not represent a feeling, so if decisions are plead not to raise some of the fees, not to take some of the recommendations of the fee study then questions arise of how service will be funded . How that gap will be made up . So it will be a very interesting discussion i am sure, and we will keep you informed and as soon as the fee study draft result is released we will bring it to the bic and share it with you, and to answer your last question about timeline roughly the budget process is a controller now starts working on the basis budget for fiscal years 2425 and 2526, and they go and make technical adjustments and put the new labor amounts for salaries et cetera, et cetera and does december the Budget System will open for departments and they have that time to february to develop the proposal for the next two years and in february we meet at the bic and present the budget that weve developed and work with the bic to input your priorities and then from february to june its the mayors phase of the budget so the Mayors Office typically kicks all departments out of the system, does what they do and puts the mayors priorities and then in june the budget hearings are held by budget and finance committee. They review. They make cuts and adds. Nay then refer their findings to the full board. The full board votes and then it goes to the mayor yeah, for final signature. Any other questions, comments . Thank you. Thank you. The next item on the agenda is 4d, update on proposed or recently enacted state or local legislation. Good morning commissioners. Interim president tut. Welcomes new commissioners. Im the legislative Affairs Manager for dbi and i am here to present a Monthly Update on local and state legislation in the department. I will give this update monthly and for the new commissioners in the packet theres a full list of legislation either proposed or recently enacted some of which i covered at previous meetings so i wont cover it today but its there if you want to review it. Next slide. The first item is an ord amending the building and planning code to adaptive reuse of residential uses downtown. This ordinance amends the Building Code and directing dbi to have a adaptive manual reuse of projects and signed by the mayor and become effective august 4. Staff and Technical Services are working on those standards which will be presented to the bic. And i will note that this ordinance was duplicated so that some additional changes to the planning code could be made and that file is making its way through the legislative process right now but nothing affects the Building Code in that file so it wont be referred to the bic. Next slide. The next is ordinance amending the buildings and planning code to create a temporary annettey program for complaints about awning programs in the city and includes a streamline process and a fee waiver to bring the unpermitted awnings into compliance. The board passed it last week and awaiting the mayors signature and the sponsor the legislation and expect that to happen and as with the last ordinance theres a duplicate and not referred to the bic and heard at Land Use Committee last monday. Next slide please. And on monday of this week the Land Use Committee recommended approval of an ord amending the Building Code to out line the site plan permit application process and interdepartmental review of application and the board had its first vote on that vote yesterday. Next slide. So i wont go into too much detail on the ordinance that is on the slide that you cant see regarding a fee waiver of awning and sign permits for small permits and number five on the agenda and you will hear from the represent from supervisor dahlia dell. That one and will see the process of the impact fees and item 6 on the agenda and hear from the Planning Department and the office of economic and Workforce Development. Also on the local side of things an ordinance amending the electrical code for certifications of electric work is introduced by supervisor chan and referred to the bic for your recommendation and on the next agenda for you and i will confirm what the Deputy Director stated earlier the board had its first vote on the budget yesterday, and it passed 101. Its final vote will be next week and the board voted on the trailing legislation and increase dbi fees across the board and on the state legislation side assemblymember haynes the bill that would [off mic] ministerial and impose time limits for application review. That one is with the Senate Appropriations committee right now. Its passed by that committee will be heard on the senate floor so i should have a further update next month and i am happy to answer any questions. Thank you. Next item is 4e, update on Inspection Services. Good morning interim president tut and new and old commissioners. Im Matthew Green acting dem director for Inspection Services and provide up date on the performance of our division. Next slide. In june 2023 the building electrical and Plumbing Division conducted over 10,000 inspections, 95 were conducted within two Business Days of the date requested by the customer meeting the target of 90 . [off mic]. Sorry. Im sorry. [off mic]. One moment. Thats the correct one. Next slide. All right. I will just repeat what i said so you can refer to the slide so in june 2023 the building electrical and Plumbing Division conducted over 10,000 inspections and 90 within two days of the date requested by the customer meet h meeting the goal of 90 . Next slide. Next slide please. In the same month our housing Inspection Services conducted 899 inspections with 112 of those being routine inspections of fam multifamily housing. The building electrical Plumbing Divisions received over 400 complaints and responded to all of them and exceeded target and sent cases to the directors hearing. The housing Inspection Services received 336 non life hazard complaints and responded to 91 within three Business Days. For light hazard housing complaints received 24 and responded to 88 within one business day and they abated cases with notice of violation and 45 to directors hearing. I am available for any questions that you may have. I have a question. Sure. So at least on slide three with the housing inspection statistics what is a routine inspection of multifamily housing is that distinguished from other inspection . Inspection . Sure. Apartments with three or more fund the fee and routine inspection is supposed to be done at least once every five years by the Housing Inspector and limited to the common areas and hallways and fire escapes and storage rooms and they dont go into the units. The other inspections are complaint responses which are generally tenants and likely inside the units themselves and no heat, pealing paint, roof leaking, things like that so thats the main difference between the two. Great. Thank you. Thank you. I have a question [inaudible]. In for the for housing the majority is complaint based. Can you speak to what is the inspection cadence . What is the routing of inspections for plumbing, electrical and building . What percentages is complaint based . Which percentage part of the permit process and is Code Enforcement also included in that . So actually so the vast majority are response to actual construction permits and the plumber pulls a permit for the kitchen sink and rough in and final inspection and thats the simple and it can be more complicated. We receive complaints about ongoing projects and the neighbor doesnt think its to the plans and files a complaint and the building inspector responds. We have a complaint Investigation Team that will follow up on complaints from neighbors or tenants about how do i put this . We break them up theres complaints against properties that have active building Plumbing Electrical permits and researched to the district directors. If theres a complaint against a property with no active permits we send to the Investigation Team. I know thats a 10,000foot view but i hope it helps. Thanks. Thanks. Its great to see such a great response rate. Im wondering if you have any information about the outcome of each case afterwards . I know this is how quickly inspectors are showing up and responding to a complaint but do you have data what happens after . I am sure we can get that information. Complaint is annealings the inspector will go out and determine if the complaint is invalid they will close the complaint. If its a valid complaint it will lead to a notice much violation and go down the Code Enforcement process. I dont have the numbers in front of me but i am sure we could dig those up. That would be great. Thank you. Thank you. Any other questions, comments . Move on to item 5. Before we move [off mic]. Oh im sorry. Is there any Public Comment on directors report item 4a through e . Am i going to get more than a minute and 50 seconds . Three minutes. Just one second. Thank you. Go ahead. Thank you very much. My name is jerry. And i have three comments. I would like the monthly schedule modified to see the each of the 10 lines this year and last year. Two, dbis failure to implement the controllers recommendation to lock down the permit tracking system to prohibit dbi employees from altering system records is inconsistent with any dbi actions to root out corrupt behavior and the controller is required to issue a valuation of the new budget. I would encourage the new commissioners to read the report and understand the citys future and current budget cross of the the mayor took about 640 million in reserves to balance the budget. This means the mayor avoided the structural changes required to adjust the citys cost structure to the new operating realities. Theres a phrase in the midwest that really summarizes this and its called eating your seed corn. Thank you. Is there any other Public Comment virtual . Seeing none we will move on to agenda item 5. The cac letter that was in your supporting documents is not correct. I will update the one by the end of today and apologies for that but item 5 is discussion and possible action regarding board of supervisors ordinance file no. 2305592 amending the planning, building and fire codes to codify the annual waiver of awning replacement fees and awning sign fee applied during the month of may in addition to other requirements. Thank you monique. Hi again commissioners. I am the legislative Affairs Manager and here to introduce an ordinance to expand the awning fee waiver to include business signs. Next slide please before i invite the chief of staff to joel who is the sponsor of the legislation to speak to you i would like to give a refresher on the awning fee waivers and programs because i know you have been hearing a lot about awnings for a while except the new commissioners but you will will. The supervisor sponsored to codify the awning fee waiver for every business in may which is Small Business month in San Francisco and that waives fees for Small Businesses that apply for permits in may to replace an awning and the ordinance waived fees for new awning installations for a limited twoyear period retroactive to may 2023 and 2024 and thats the first one on the slide and that ordinance was passed by the board of supervisors and sign the by the mayor and in effect now. Then theres an amnesty awning program which i mentioned earlier and that legislation creates a temporary program for unpermitted awnings and streamlines an application process to legalize awnings waves fees by june 2420 and passed by the board of supervisors july 11 and needs the mayors signature and she was the sponsor and expect that by friday this week and third on the list for you today for your consideration and recommendation to the board of supervisors is a duplicate of the first one on that list, the may Small Business awning fee waiver. This duplicate ordinance would add a few waiver for new installations of business signs and also for a limited twoyear period retroactive to may 2023 and 2024. Monique mentioned the cac recommendation letter at their meeting. They made a recommendation to the bic to recommend approval of the ordinance if its amended to require reimbursement of fees waived by dbi from the citys general fund, so that is an amendment staff would welcome given the deep deficits that youre discipline director spoke about earlier this morning using our reserves to balance our budget and there is precedent from reimbursement under the general fund under the citys First Year Program program and the same target the Small Business community that awning fee waiver intends to reach. We looked at at number of permits and feed collected by dbi for may 2023, and we collected 22,000 in fees. 33 permits were issued. That issues about 583 perpermit. So its not a huge amount like i said we would welcome reimbursement, but i should note that 22,000 in fees for may 2023 is all sign permits that we received fees for and this fee waiver is for Small Businesses which under the planning code businesses of 100 or fewer employees and today youre requested action is to make a recommendation on this ordinance to the board of supervisors, and as a reminder for for the new commissioners can you make a recommendation of all the all the or a recommendation of disapproval and either way you can suggest any number of modifications but up to the sponsor of the legislation to accept the modifications recommended and i will invited chief of staff to come up and present. Good morning commissioners. Good morning president tut and director oriordan. I am tiny bell legislative aid for the supervisor. For the benefit of the new members of this commission [inaudible] did a wonderful job of of summarizing the legislation before you today but its a continuation of our offices efforts to expand the Small Business Month Promotional Program really to support and incentivize our Small Businesses to keep going and to beautify their store fronts and to make modifications they believe would be necessary to revitalize their businesses. The only thing in this legislation is to add one more fee waiver to the program, and its to include all business signs applied by a Small Business. It was a recommendation from the Planning Department. I am aware of the proposed or the recommendation to modify this legislation, and i will certainly convey that to the supervisor and take that under advertisement. If this item is heard in the Land Use Committee i will convey that as well but the intent of this legislation i believe is clear and were grateful that this body unanimously supported the version that was just passed and enacted into law and we would appreciate your support for this further amendment as well and i am happy to answer any questions that you may have. Thank you. Thank you. If i may either alex or yourself, either one. Its a quick question. On the sign itself so were adding that to make sure i understand and awning waiver fee were adding signage now to that . Right. So the existing program before the supervisors initial legislation i think it dates back to 2014. Its to waive plan check and inspection fees for replacing awnings, the signs on those awnings, pedestrian level lighting, yes and those three things and then our legislation this year added new awning installation and the signage on the new awnings, and now this is an amendment to cover all business signs for Small Business and so it could be a sign thats not on an awning and is this just for may . Just for may. The program runs annually in the month of may, so consistent with the ordinance that was passed earlier there was a request by supervisor chan to limit this fee waiver just to two years so 2023 and 2024 so were replicating that limitation for this expansion to signs. It will only be retroactively for this year and next year and then we consider whether to keep this Program Going with the new additions awnings and business signs. Okay. Hopefully one last question. Yes. If you did in fact put up a sign in may and we werent aware of the reimbursement or the free program is this retroactive . It is and we will be working with the office of Small Business to advise applicants who were eligible to apply for a refund. The refund process i believe is described inlet legislation. Okay. Thats fantastic. I appreciate it a lot. I know on our side of the town and wherever the seagals are hanging out and we do more signs than awnings and they do too and adding the signs is appreciate a great move. I so appreciate that. Thank you. I have a question. Yes. I think i understand the purpose of the legislation. I think it makes sense, but where i am curious is why limit it just to the months of may . If its a good idea in may why is it a good idea in april or june . That would be a question for the original sponsors of the Small Business month program, but Small Business month was something that came out i believe then supervisor katy tang who is now the head of office of the Small Business and a celebration of Small Business that includes various events, social events, but for purposes of dbi and planning one of the components is to waive plan check and inspection fees to encourage Small Businesses to modify their store front and im not sure why there isnt talks of making this program happen in a different month or in more months than just may but i do know that may has been designated as Small Business month and theres other programming around it. Thank you. Any other questions or comments . So we will do a roll call vote on the item. [off mic]. Oh there needs to be a motion. Or a motion or Public Comment and then the motion . [off mic]. Is there any Public Comment on item 5 . There is no Public Comment. We can go ahead with the motion. If i may i very enthusiastically would like to make a motion to approve the board of supervisors ordinance to amend the planning code fire and codify the annual waiver on the awning and awning sign fee for the month of may. Is there a second . Is i would like to propose to include the language from the substance. Subcommittee that were reimbursed from the funds. Deputy City Attorney rob kapla. Is that a friendly motion . Do you accept that . So the motion is go [inaudible] from the advisory committee. Is there a second . [off mic]. Can you say that again . Second the motion. Thank you. I will do a roll call vote. Interim president tut. Yes. Commissioner chavez. Yes. Commissioner newman. Yes. Commissioner shaddix. Yes. Commissioner sommer. Yes. And commissioner williams. Yes. The motion passes unanimously and then we can go on to item 6. Thank you. Agenda item 6 is discussion and possible action regarding board of supervisors ordinance file no. 230764 amending the planning code to number one modify the annual index fee of certain Development Impact fees with the exception of inclusionary housing fees. Two, provide that the type of rates of applicable Development Impact fees with the exception of inclusionary housing fees shall be determined at the time of the project approvals. Number three, exempt eligible Development Projects in pdr production, distribution and repair districts and the c2 Community Business district from all Development Impact fees for a three year period. Number four, allow payment of Development Impact fees with the exception of fees deposited in the citywide Affordable Housing fund to be deferred until issuance of the first certificate of occupancy and number five adopt the San Francisco citywide nexus supporting existing Development Impact fees for recreation and open space, child care facilities, complete streets and transit infrastructure and making conforming revisions to article four of the planning code amending the Building Code to allow payment of Development Impact fees with the exception of fees deposited in the citywide Affordable Housing fund to be deferred until issuance of the first certificate of occupancy and repealing the fee deferral surcharge in addition to other requirements. Thank you monique. Hello again commissioners. I am the legislative Affairs Manager. As you heard in the very long title this ordinance has Building Code and planning code amendments so you will hear the presentation from the chief of staff dan snyder and the director of Development Anne and the questions and feedback are welcome especially with respect to the Building Code amendments specifically since the Building Code is under your jurisdiction, and i will note that the Code Advisory Committee made a unanimous recommendation to the bic to recommend this ordinance to the board of supervisors for approval, so youre requested action today is make a recommendation of approval to the board of supervisors for the boards further action and now i will turn it over to dan snyder chief of staff at the Planning Department. Good morning commissioners. Dan snyder with the Planning Department. Interim president tut congratulations. As carl indicated i am joined by anne the director of office and work force development. Thank you for considering this item, this long titled item. This is an ordinance introduced by mayor breed and that would lesson the financial burden of the impact fees that we assess on housing and other Development Projects in the city. The goal is to increase the production of housing to stimulate job creation and grow the economy. For the most part this legislation changes the planning code. Having said that as carl indicated there are very important changes to your Building Code which is why were here today asking for your support. As we talk about the specifics i would like to put a quick presentation, just two slides up on the screen if we could. Okay. Just to frame things for you commissioners. The legislation deals only with Development Impact fees. It doesnt deal with application fees or the fees that are paid to the city to cover the cost of review and approval. As i said before it does amend the building and planning code and you really cant talk about one without talk about the other so bear with me commissioners as we go through the four substantive amendments that are contained in the ordinance. The first three are planning code and the last one is largely Building Code. Every year commissioners impact fees go up. Today their indexed by the annual Infrastructure Construction cost inflation estimate. Over the last few years that number has generally ranged from 23 to 6 . This ordinance would replace that variable number with a flat 2 rate. Its a stable predictable number and help to create an environment that is much more conducive to getting projects built. Secondly is this question of how fees do or do not get locked in . Right now impact fees are indexed every year as we talked about but that happens even past excuse me, that happens even past the point of Planning Commission approval this. Ordinance would lock in the impact fees at the planning level level and the increase would apply to new projects and not projects that are already approved. In other words once youre approved you have that certainty of exactly what it will cost to pull your permit. The third change that you can see on the screen right now would boost our cultural and Industrial Base and provide effectively what is a three year fee holiday and hospitality in the north east corner of the city. Secondly our larger retail or Industrial Projects that are on underdeveloped lots in industrially zoned neighborhoods. Lastly commissioners and most important for you are pose changes to the Building Code that deal with the fee Deferral Program. Back in the Great Recession the city created an impact fees Deferral Program that existed between 2010 and 2013. Under that program instead of requiring impact fees to be paid at the time of construction document issuance we allowed deferral of the fees until immediately before occupancy. More recently the citys Economic Recovery Task force has recommended that this program be reinstated. Thats what this ordinance would do. It would also make two changes to that program. The first is that it would eliminate the original programs assessment of interest and it would also not allow for Housing Impact fees. Related to Affordable Housing to be included in the deferral. So those two changes really reflect how important it is right now to get projects under way while recognizing the importance of getting funds for Affordable Housing online asap. This is all accomplished through amendments to your code to the Building Code. Were here today asking for your support and as carl indicated that support would align with the support from the cac last week as well as the Planning Commission on thursday. Commissioners this ordinance is all about economic recovery getting housing built online to meet our housing goals. It provides certainty and predictability in the construction process. Its going spur development and create job exercise create tax revenue. On balance impact fees are the biggest single leaver we can control that affects project feasibility and we feel this is the time to pull that leaver. Were here to respond to any questions that you might have. Again were asking for your support and we thank you very much for your time. Any commissioner questions or comments . Good morning commissioners and my name is angie and the director of office of Workforce Development and i want to thank you for the consideration today and extend my congratulations to interim president tut and the new appointees to the commission. This piece of legislation is part of a fee reform package introduced by mayor breed and supervisor peskin and this is one component of the citys comprehensive efforts to stimulate our construction Pipeline Projects, incentivize investment in the citys commercial corridors and support our economic recovery which our housing goals is a critical element. The fee deferral results to changes in the Building Code. Dan went through that that so i wont reiterate that and when fees are escalated and assessed and this legislation provides certainty for builders advancing projects and as well as staff spending the fee retch new. It will also improve the financial feasibility of projects and not subjecting them to fiscal escalation after approved. The Deferral Program was successfully in place and the citys Economic Recovery Task force recommended reinstating the Deferral Program as one tool we could make able to support the citys recovery. This means more jobs and more tax revenue and Economic Growth and stability for the city and we thank you for consideration of these items and are available for questions. Is there any Public Comment on item 6 . Any commissioner questions and comments . Just some thoughts here. I mean i agree with what was said that certainly impact fees are one of the biggest controls that we have in sort of being able to support or spur development, but they also support real things. They support our parks. They support our schools, and theyre assessed at particular levels to make sure that were able to maintain those things; right . I in general think that everything posed here makes a lot of sense as far as predictability as someone as my day job as a Affordable Housing developer i appreciate predictability for sure. I am concerned about the index and changing that to a fixed 2 because the index thats presently used is meant to reflect the changes were seeing and the costs for the real things that the impact fees pay for, and so i just wanted to sort of share my thoughts there, but in general i do support this ordinance, and moving it forward. Thank you so much for your presentations. I think this might be for dan. First off i fully support this and support anything just to stimulate Economic Activity so thank you for that very long thing. I have to clarify one thing and when you refer to industrial i think its my side of town. Theres a couple of industries doing very well on my side of town and i wont mention them by name, but are they also part of this . Are they considered will their impact fees be deferred or waived . I mean i just sensed theyre doing just fine. Everybody else great but so i dont know if thats a yes or no. I just wanted to clarify that and i also as commissioner newman said i fully support this too. Commissioner its a very good question. Its a very long piece of legislation and elaborate what projects are eligible for the fee holiday. In regard to Industrial Projects the threshold consideration is that only what we call pdr districts or Zoning Districts in which they can be granted. Pdr stands for production, distribution and repair. Those are exclusively found in the greater southeast part of the city. Bayview, northeast, waterfront lands and the southeast waterfront. From there theres an Eligibility Criteria that deals with the level of development on the lot, specifically you have 2. 5 or lower afr and only talking about lots with Little Development and if any eligible for this fee waiver and then if you meet those two criteria theres a third that deals with the amount of Square Footage added and [off mic] and theres a fourth layer of eligibility. The project itself has to propose a retail use or pdr land use. Thats the fee holiday. Theres also the exemption for emptyity projects on northeast part of town and separate from this. I hope that answers your question a little bit at least. I may have missed this but i am wondering wioa theyre the three and hospitality and retail. Is there a reason why those type of developments were chosen . Im sorry. Thank you. I am from the office of Economic Development and work force development. We recognize that the Hospitality Industry is the hardest hit sector and what were hoping to do is stimulate or incentivize including those uses in new Development Projects so if youve got a housing or commercial project by giving a fee holiday on hospitality uses were really hoping it will incentivize the inclusion of those. Theres an entire programs that are also geared at filling vacancies, but we also want to make sure we have a robust hospitality sector but its certainly the hardest hit. Yeah, i just have the question because we have so many vacancies in retail and hospitality now and waiving new retail and hospitality is the right direction we should be going because we have plenty of spaces that should be used and not vacant. Okay. Thank you. I will ask my questions and you can determine who is the best to field it. My first question was has there been Stakeholder Engagement . I heard there was the 2020 Recovery Committee who engaged in this. Who has been involved in this conversation from the larger City Community . Then what is the budget impact expected to be . Has there been analysis on the budget impacts . And my third question is if the current scale is 2 to 6 what was the thinking behind the 2 as a permanent escalation versus somewhere in the middle . Thank you. Thank you for that question. So theres been a long robust engagement from certainly from the development community, from the Housing Community about how impact fees have been so unpredictable and in fact over the last three years there is significant increase in impact because of the fee escalation and because of other factors including construction costs, and the 2 is really based on looking at across the region and across the country. The annual escalation rate of these kind of fees is typically between one and 3 , and i think what were trying to do is make sure we continue to grow our fees. We will continue to collect those fees. Were not reducing other than the holiday. They will continue to escalate over time. They are set by index im sorry, by a nexus study so were still in compliance with the nexus study component of the impact fees and they are were not removing their ability but continue to make whatever projections they need to make for future Capital Projects and they will escalate at a rate theyre accommodating the citys needs and impact fees which are set by the nexus study will escalate at a more predictable rate and im sorry i forgot the other part of your question. [off mic]. The budget an 50 office didnt do an analysis on this and again this is forward looking and what were hoping to do is really incentivize more projects to pull applications so weve got growth over all and again its not looking backwards. [off mic]. Im sorry . This is not retroactive . No. Thank you. Theres a date certain and i apologize. Theres a date certain which you need the project approved to be eligible. Okay. Thank you very much. Question for either of the presenters, so its was mentioned that this is a long lengthy piece of legislation. It is. Its not that easily read, and i think you know i am hearing the purpose of the legislation i am seeing the legislation itself and i am hearing what the objectives are through this legislation you know to promote Economic Growth, make it easier to develop and support the Hospitality Industry. I can not see in the legislation like just in reading it how this legislation actually achieves that outcome, and that is in part due to me being new to the commission and not having a lot of time to thoroughly engage in this material or hearing other information about it beforehand so if you could it sounds good and maybe help me out and other commissioners and the public out by maybe just giving in practical terms what will this do to a business thats trying to develop or how will this promote the economy . Instead of just the end point this will promote growth like how does it promote growth specifically . Like for a accident or developer what does this. Do in practical terms . I think we can both take a crack at this. The thing with impact fees theyre assessed when a project theyre assessed on a project the size of a project and theyre also they will continue to escalate while that project is going through its permit permitting, its street and design process. So you approve the project in 2018 and have an idea of what the impact fees are you about in the next years as youre going through the process to break ground and the fees are escalating and three no rate they to predict how they will reask lattes and what were hearing from the building and the Construction Company you have to finance the fees as well and they have to take into consideration financing the fees. If the fees are unpredictable and affect your pro forma and now youve financed a project already over budget and stabilizing that process, creating predictability. I think one of the things were trying to stimulate here is get the Investment Community to come back to San Francisco recognizing and acknowledging that the city needs to Pay Attention to the fact theres a narrative out there its not worth the risk because its too unpredictable and we want make sure we recognize how this kind of unpredictablity has affected our ability to approve projects and get them moving. We have over 60,000 units of housing entitled and approved in the pipeline that havent been able to move forward for a variety of reasons. The number one reason is the inability to finance the projects and were trying to understand how our regulations our impacting the ability for the projects to move forward. Thank you. [off mic]. So theres the second part of this so one is kind of solidifying the 2 . The second is when does the fee paid and does that fee certification i just had it. Certificate of occupancy gets made. I have a question for our dbi team. How does this change how we do our budgeting . You know does this i understand that we kinds of need all of our money right now, but i also understand and very much respect our rule in of economic driver in the city and the policies easy and in line with what is the economic world. Can you talk or can you address this change and how that might appear different . How that would impact our budget . Sorry. Deputy City Attorney rob kapla. I should clarify these fees dont go or fund anybody within dbi so it will not affect our budget. Its collected to dbi and passed through to others. Thats my understanding but i didnt see it here. Okay. That makes sense so forget my question, so the can i can you tell me if my understanding is correct. So the Housing Impact fee will continue to be studied based on will continue to be based on the nexus study and in between nexus studies there is a 2 escalation but there will still be perhaps in the fee another impact fee that assesses the true cost of what the fee is to fund . Is that correct . Or can you correct me . Interim president that is generally correct and the nexus fee analysis to make sure our fees are consistent with the impacts of Development Projects trigger or cause. Should this legislation be adopted every year the rates that are established today would continue to go up by 2 so the two things are operating in parallel. How often is the nexus study done . [off mic]. I probably should know that commissioner. Im sorry. I think the number is between three and four years a part. I might refer to the deputy City Attorney. We can look into that and get that back to you commissioner. Just to be clear these things run in parallel so whatever the nexus study are today moving forward its 2 every year period or 2 until that next nexus study in four years and then it would escalate then . It might be easier tong of the change that the ordinance would cause from the status quo. Right now impact fees go up every year based on the [inaudible] and inincrement of time we perform the next u. S. Study to make sure that fees are trued up. This ordinance would transfer out that for the 2 flat number. I hope that answers your question. It clarifies. I have two questions. One i know that we you all said in the presentation this would not affect Affordable Housing impact fees or inclusionary fees and i am am wondering and a am sure its a long list of impact fees but if you could give an idea what is impacted . And second i am hearing so it sounds like while the project is in a pipeline those are the projects that the most impacted by the change in the impact fees so i am wondering why the approach to this was overall change the impact fees by 2 and not to solidify that for a project in the pipeline so for example fiapplied last year and over the course of five years of permitting or whatever process and increased 2 and i knew that predictability over the course of the project versus every single project having a 2 increase no matter when you submit your paperwork so wondering if you have idea why that was chosen . Commissioner both good questions. I might defer the second question over to the director but with respect to the first one there are a number of impact feeses that we collect. We have a four page that goes over time and child care impact fees, park impact fees. I am looking at the deputy City Attorney. There was a time i could read them off and i could rattle them off. I am sure there are many. Thats helpful. There are many, yeah. Thank you. I think i if understand the project correctly about the Pipeline Projects and there were two pieces of legislation introduced by the mayor and supervisor peskin in june and the second piece of legislation which is doesnt intersect with the Building Department is the inclusionary housing legislation which is a three year look back at the production of Affordable Housing and makes a determination on what is the right fee and requirements for inclusionary housing so that second piece of legislation is also moving through the process. Both of these pieces of legislation are expected to be heard at Land Use Committee on monday. That piece of legislation also is looking to reduce the inclusionary requirement and the impact fees proportion reduction in impact fees looking backwards so those projects that are approved in the pipeline will have the opportunity to come forward and secant administrative approval at the Planning Commission to take advantage of the three year reduction in those fees. Yeah. But my question was so every year it seems like the fees increase based on the [inaudible] and the approach that this legislation is taking if i am understanding correctly that now every year its capped at 2 increase. Is that correct . Thats correct. Okay. So i am guess wondering why the approach is to do that for projects across the board versus two pathways if i submitted one year i know my increase would be 2 on the fee it was in the year i submitted lets say 2019 and if commissioner newman was to put in a permit in 2020 and her initial impact fees is different based on that and getting a 2 . Is that too complicated . May i . Assumes like the goal is to create predictability it could be done with one of the two things either the annual 2 increase or fixing the rate at the time of permit and so i guess the question is why the need to cap the annual increase and always lock in your fee at the time of permit. Is that what you were trying to get at . Thank you for helping. Again i think that what weve encountered that that formula is program about the citys capital need, the citys building needs and its not established by next u. S. Its basically a determination made by the Capital Planning committee on an annual basis, and its rightfully a very conservative approach so the city is looking at projects that we maybe building in 10, 15, 20 years and making sure we are capturing the appropriate cost and escalations over that time period that we will then issue a bond in order to pay for that program so its giving the city the understanding of what do we need for our programs, so that the impact fees are really on private projects building housing commercial in the city, and we need what were hearing back from the Building Community is its too unpredictable. Its a Significant Impact to the bottom line of projects, and its difficult to finance that fee, so if youre looking to seek Institutional Capital to fund your project the fee not being fixed and not being predictable has been been one of the factors that made San Francisco a challenging investment for Institutional Capital financing, so what were seeing is a lot fewer applications coming in to build housing. Were seeing existing projects struggle to retain their financing. I think weve seen some of the impacts that the pandemic and Economic Conditions have had on the city, and certainly on the citys budget, and so what were trying to create a very predictable path, and certainty once you have your project approved. Just to add to that if i can and forgive me this is too far in the weeds but its a very interesting question and one of the things that might be relevant is that impact fee assessment lives in the planning code. One of the bureaucratic but nonetheless distinctioning between the planning code and the Building Code is for the most part the Building Code and processes are based on when an application is submitted. Unlike the planning code when requirements and controls are based on when a project circumstances proved so its a fundamental toggle between the two codes and im not suggesting one is better than the other but a code that is different and if theres a sense to look at that our sense it should be Done Committee of the whole and not one part of it. Thats a helpful. Distinction. Thank you. Any other questions or comments . Seeing none we call Public Comment. So is there a motion . I would like to make a motion to pass and im going to read the file number if i may to accept file no. 230764 for approval. Is there a second . Second and i will do a roll call vote. Interim president tut. Yes,. Commissioner chavez. Yes. Commissioner newman. Yes. Commissioner shaddix. Yes. Commissioner sommer. Yes. Commissioner williams. Yes. The motion passes unanimously. Thank you. And we will move on to item 7. Commissioner sommer is raising your hand at all . I would be able to see her if i was facing the screen bruthank you for reminding me. [off mic]. Thank you. But she also has the ability to interrupt us. [off mic]. Okay. Let me read item 7. Discussion regarding data on permitting times or continued from june 21 bic meeting and the slides will come up in just a moment. Theres like a delay. Im sorry. Good morning commissioners. Interim president and [inaudible] [off mic]. Today i will plan an overview of dbi performance check measures. Also good morning interim president tut and commissioners. Mark wall planning inspector and here to assist megan in her presentation. Before diving into the at that time a want highlight some of the dbis permit review initiatives. In the last two years we opened in house approve for all projects and preplanned check station where plans are reviewed for completely prior to filing. We implemented dynamic assignments and theyre signed based on effort and staff availability. We have a work in progress dashboard that managers use to assign to track reviews and have criteria to make review more efficient and have add in house check system so clients can work out issues in person rather than through email. Were also in the process of implementing an initiative that will enable to understand how long theyre with the customer for revises and how many round its takes for review and in beta testing for review so applicants dont have to come into the permit center. Were working on reforming the site review process with planning and guidelines. Were creating a new Customers Service point of contact and checkers will have lists to make it standardized and working with partners to improve the g20 and work on getting 100 of reviews electronically and [inaudible] below and low audio and lastly developing management and staff template and guidelines. The results that youre seeing from these efforts are promising. For new plans that arrived at our station assignment times dropped from seven weeks to four weeks and similarly the number of weeks to get from arrival the building station to comments or approval for plans has dropped from nine weeks to five weeks in may a 41 improvement. As i did over each of the Performance Measures theres a few considerations i want to point out. One is when permitting times are calculated as medianso averages results will fluctuate until every plan has crossedlet designated finish plan whether issuance assignments or review. The other that november and december can screw some of the results because of staffing with the holidays. Dbi currently has two channels for performance reporting and a number of metrics through the Controllers Office citys program and we developed metrics that we reported on as part of the housing for all districtive. I will into them in the following slides. Our first metric is the percentage of over the counter permits issued in two Business Days or less. This process enables most people to walk out with the permit on the same day if they have a completed and compliant application. We extended this two days for lose end and we met the target of 65 low audio . [inaudible]. Our next metric is the percentage of plans that received their first review in a timely fashion based on expected level of effort which gets between 20 and 40 days for the review. This is a new rettic for this fiscal year and aggressive target of 85 based on the level of Customer Service we want to provide. 31 are meeting that time but were making progress. In the past five months the time is 41 faster. If we get them down more we should see a noticeable uptick in this measure. If we look at at same measure for projects flagged as priority this includes 100 Affordable Housing and adus. Were much closer with 70 of the projects in the last fiscal year meeting the target time. Our next metric is the percentage of preapplication meetings within 29 days of request. With the exception of discorruption during the fall and winter months we generally meet the target 81 of meetings happened between 14 days. Our next metric the percent of no plans under the counter permits issued instantly online. Currently this option is available for reproofing and kitchen and bathroom remodels with a dbi contractor. Our goal is expand this as much as possible and the target of 15 and the number was issued online was 12 and two percentage increase from the last fiscal year. Our next looks at instant online permitting for trade permits. Given we had the process in place for plumbing and Electrical Permits and the performance is around the targets of 60 . In line with our efforts to measure additional advancements in the permitting process we track the percentage of in house permit using electronic plan review. In 2023 we exceeded the target of 65 with 70 of in house permits filed with pdr. These next measures are related to the housing for all initiative. The first is the issuance for housing permitted issued in a given year. Its important to note it includes time spent with all departments as well as the customer. It is also a lagging indicator meaning it doesnt provide much information on business processes today but speaks to the situation during the time when it was filed and issued. As you can see from the chart covid19 was disruptive but were seeing the issuance days drop from 476 in 2022 to 413 year to date 2023. A 13 reduction. This next measure looks at dbis role in the issuance journey which is around 50 of issuance time which includes time waiting for the customer to provide their revisions. When looking at the median number of days plans with dbi check stations during the journey we seen a 5 reduction in 2022 to year to date and from 238 to 226 days. Our last measure is more short term and looks at the percentage of new housing permits getting first review in 30 days or less after arrival. Again covid19 was disruptive but were seeding modest improvements and comparing 2022 with year to date 2023 there is 9 increase in the percentage of planning meeting this target. Thank you and i would be happy to take any questions. If i may just one fast question. Thank you for your presentation. On the in house plan recheck i think its a great window and its really glad its there. Do you know about numbers how many people have gone through the recheck and of the people that went through this how many were over turned or fixed if you will . Just curious. I dont have those numbers but i will defer to mark. Okay. I also do not have those numbers. Okay. Well i want to complicate you and i think its fantastic. Thats all i got. I have a few questions. I guess starting with the slide 14 and 15 the median days to issue housing related permits by issuance year, so the target was 50 reduction and it was 13 reduction. When was that target established . And understanding covid is challenging but do we know why were so far from the target . Yeah. So the 50 reduction was specified in the executive districtive. This was not a earth that dbi came up with, and you know its certainly going to be a reach measure. Were doing our best. The thing to remember when it comes to issuance times that many of the permits were first filed during 2020 or 2021, and another important sort of contextual piece of information 2019 was the biggest filing year since the Great Recession so right when the pandemic hit we had a list of permits that came in and all of a sudden our business processes were disrupted. None of the otc processes which are over the counter really efficient and 90 of the total permits were actually happening that way and treated in house so we had this tremendous disruption so were still moving through that like traffic jam basically and it wasnt just our department. Its also with all of the reviewing departments and almost all housing permits are reviewed by dbi, planning and dpw and puc and many by fire as well. So several departments if i am understanding correctly that contributes to the length of the process . Is that right . Yes. So i mean the permits that were using the year issued because as i mentioned with the medians and averages if we were to say tell us the speed of the permitted filed in 2023 we dont know that information yet so we have to look at what is coming out of the pike and like students graduating from college so basically the things coming out now have all of that burden from what happened in the past and that was shared with all of the reviewing departments. Okay. This is a more general but general question or proposition but i see these figures and i imagine if you were like a new homeowner and want a permit to do reconstruction on your dream home that you finally saved enough to make the down payment for, and it takes 300, 400 days to get the permit issued. That has to be frustrating and expensive. Do the customers, the homeowners have any recourse or are we receiving feedback or the dbi receiving any feedback from these customers about this process . Because that has to be demorallallizing and touch and again expensive. I have heard anecdotally that really drives up the cost with the contractors and so what can a customer do if they have a lengthy you know these are median days so if theyre beyond a year and waiting for a permit to get issued what can they do to do something about it . Yeah. I will let mark speak to this. Yes commissioner williams. The customer always has the ability to reach out to the plan reviewer and request an update on the status of there review, and what the current disposition is thereof. There are other availability or available options with regard to going beyond that plan reviewer and requesting to speak with a supervisor, that person, and the supervisors have all been have been working diligently creating much shorter timeframes and times for review. A lot of falls out of our hands and issue comments and the application will go into a Holding Pattern and were basically waiting for the design of professional record or designer to respond to said comments so a lot of wait time incurred includes that and that is a little bit out of our control. There are some instances we reached out to the Design Professional on record what is the delay or anything we could do to help them help us but as far as the homeowner to get that permit more expeditiously were there for them but we have boundaries and theres only so much we can do. I would also like to mention our process will now enable us to basically subtract out that Design Professional time preparing and submitting that Response Response in the future we can measure city only time. At this time commissioner has a hand raised one more thing. So we have the preplan review process that allows a first look at these documents coming and that has been very beneficial because 10, 15 minutes that preplan review takes allows us to identify any major deficiencies or anything that may require additional documentations. A prime example would be a site permit which is primarily for entitlements and a cursory review on our part, the construction drawings come later on opposed to a full permit. Weve had some applicants submit a full permit yet theyre lacking structural or mechanical draw accident which are not normally associated with the site permit and identifying the deficiencies up front allows the applicant to submit a completed package for the submittal opposed to us getting accepting the application, waiting four to six weeks for a non status project assigned to a plan checker only to have the plan checker within the first five minutes identify that submittal package was deficient so this new process has greatly accelerated the process for review, and being that it is a new process were going through and working allotted the bugs and trying to make it better and better on a daily basis so i see great things happening with the reduction of total times from application to issuance of the application that becomes a Building Permit. Commissioner sommer had her hand raised. Im not sure if she still wants to comment. I did and call on me and [inaudible] can you hear me okay . Yes we can hear you. Good. Which was regarding how if it was in process that we potentially subtracting out time that is being taken up by the Design Professionals getting back to dbi. I know similarly the pandemic [inaudible] on the professional side and things take a while to turn back around and i think its important to see the total time from permit application to issuance but at some point as mentioned some of that is out of dbis control so its good to capture both pieces of that. The total time [inaudible] with dbi. Thank you. I have a few questions. Thank you for your presentation. On slide 11 its about the otc no plans Building Permit that are processed online and the target 15 and our current performance is 12 and i am wondering is that 12 of all otc normans or 12 of the reroofing and kitchen bedroom remodels . Its 12 of all plans. Even though we have two. Yes, many are not eligible for the process so its really intended to like are there other areas of permits to add to the otc instant online permitting. Okay. Do we have how many reroofing and kitchen and bathroom remodels are approved . I dont have the data but i can find it. Yes it would be good to know how successful were on in order to find new opportunities. Thank you for that and my second question is maybe it wasnt part of the executive order, but we have the 30 day business permit requirement as well. Do we know how were performing on that metric . This is [inaudible]. Yes. We are measuring that and for that because our otc processing has used a different business process for quite a while and end the station and finish state when the customer leaves even if the plans are not approved we able to subtract out the customer time and people leave and come back and by and large we are meeting that. I dont have the number off the top of my head but im sure its about above 80 . Great to hear. Thank you. And my final question is for the per the executive directive is there any talk like are these going to stay . Is there reassessment for the ones that were meeting and the end of the fiscal year. Is there any discussion about resting any of these goals . We did a large revision prior to the fiscal years reporting. I think given that were now easily meeting the target of 65 for that maybe it makes sense to bump that up so we have the opportunity usually around february change the performance benchmarks for the next fiscal year. Thank you so much. Any other questions . Thank you. Thank you. Was there Public Comment on item 7 . Good afternoon. My name is jerry. I have two comments. When i reviewed the controllers budget letter i mentioned some of the dbi reserve funding has been eliminated so are there adequate funds to continue the over due permit review system improvements . And my second question response to a question that a commissioner raised. Should there be an alternative plan review process conducted by an outside independent licensed professional to expedite the backlog . Thank you. Any other Public Comment . None virtually . We will move on to item 8 which is commissioners questions and matters, 8a inon queries to staff. At this time commissioners can make inquiries on policies and practices and procedures which are interest to the commission and 8b future meetings and agendas. At this time the commission may discuss and take action to set the date of a special meeting and or determine those items that could be placed on the agenda of the next meeting, and other future meetings of the Building Inspection Commission. The next regularly meeting is august 16, 2023. Thank you. If i may and with president tuts consideration for the next agenda for august or september all of our commercial corridors are about to face a very serious deadline for ada compliance, and its going to have a tremendous effect on our outer neighborhoods, and although dbi is taking the role of the inspection and the compliance i mean this is a california or even federal mandated ordinance. I would like to know if were able to talk about that and see where were at as far as the city of San Francisco our commercial corridors as far as the percentage of who we dont know have to know names and addresses but the percentage of who is in compliance . Who is not in compliance . And just some average you know Compliance Costs that are happening. I can speak from experience that just in this past week i have seen a couple that have come up and theyre devastating financially to the Business Owners and so it would be nice to kind of talk through that and see what we can do through the department of building inspection either the commission or the staff itself and see where were at with the compliance. Thank you. Next i know that we have been putting off the secretary review so i want to make sure we cover that, and committee assignments. We have a lot of vacant committees right now or almost vacant committees and fill our subcommittees and then i would like us to consider a motion to create a housing Code Enforcement committee. Theres been a lot of discussion why theres so much housing that is out of compliance and is there other possible policy reforms or practices that we could adopt or explore to bring our housing up to code in all of San Francisco so those are the items for a future agenda. Any other questions . Go ahead. I just had one. We spoke yesterday during our tour and update on the of reform package and review and making progress on that. Any other questions, comments, agenda items, suggestions . As sonya say you could email us after the meeting and we will be able to prepare that for you guys. Go ahead. Sorry. I came in late. So at least for future agenda item maybe this is related to the housing Code Enforcement subcommittee and create one of those. Considering the last meeting and the budget situation the sro collaborative funding i dont know how certain we are that is going to exist so perhaps we should be put something on an agenda item specifically related to addressing what we can do with our sro community and even our Shelter Community and enforcing code there because yeah theres seems like theres uncertainty with whether our current mechanisms for outreach to that Community Whether if were going to have the support to keep that going so i think as the commission here we should start making plans for protecting that or making some sort of alternative solution for them. Okay. Are there any other questions, comments, suggestions . And no Public Comment in house or virtual. Okay. Thank you. [off mic]. Sorry. Good afternoon again. Juan garcia with the sro collaborative. I would like to support commissioner williams idea and more information about the program and the collaborative and all the work that we do and come up and give a reminder that our housing Inspection Services and our programs are a model, not just for the city or the bay area but for the state, maybe even the country. If you have seen reports out of major cities like new york some of the issues theyre having with the housing inspections, with their housing violations how can we be a better model . How can we show them we are protecting the tenant and the buildings but not prioritizing these Big Developers or Affordable Housing or the Housing Stock that we currently have. How do we keep people housed making sure their homes are safe and inhabitant . So again were a model. What can we do to show the rest of the state, the rest of the country . Thank you. Thank you. Is there any other in house Public Comment on item 8 . Thank you. We will go on to item 9. Review and approval of the minutes of the special joint city Planning Commission and Building Inspection Commission meeting of may 11, 2023 continued from the june 21, 2023 meeting. Is there a motion to approve . Motion to approve. Motion to approve. Thank you. Motion to approve. Is there a second . Second. All in favor . Aye. Thank you. Those minutes are approved. Is there Public Comment on item 9 . Seeing none we will go to item 10, review and approval of the minutes of the regular meeting of may 17, 2023. Is there a motion to approve . Are we able to take 10, 11, and 12 together . Can i call 10, 11 and 12 at the same time . Deputy City Attorney rob kapla you can but if someone has edits they can pull one out. Sure. So i will call items 10, 11 and 12 review sorry. Go ahead. Quick process question. So for me and those of us that werent commissioners at those meetings we have to abstain; right . We cant approve minutes or can we approve minutes for meetings deputy City Attorney rob kapla, yes, you can approve minutes from meetings you didnt attend and actually i will say you cant abstain from any votes while on the commission. Yeah, sorry. You can recuse yourself. And you should when necessary. Okay. Thank you. Item 10 review and approval of the minutes of the regular meetings of may 17, 2023, item 11 for the special meeting of june 13, 2023 and item 12 the regular Meeting Minutes of june 21, 2023. One motion. Approve items 10, 11 and 12. Second. So the motion to approve by tut seconded by williams for items 10, 11 and 12. Are there any comments . Is there any Public Comment in house, virtual . No, seeing none. Moving on to item im sorry, all in favor . Aye. Moving on to item 13. Thank you. Adjournment. Is there a motion to adjourn . So moved. Is there a second . Second. Okay. Thank you. All in favor . And were adjourned. Its 1122. Thank you. Hi everybody, we down here at the ep is a center which is our pop up space down here in San Francisco where we operate a store front to educate the policy from the home owner who has center which is our pop up space down here in San Francisco where we operate a store front to educate the policy from the home owner who has never done anything in the house to the most advanced structure engineers we have working around here. We were going to here from kelly to talk a little bit about San Francisco. How are you doing kelly . Very well, thank you for having us here. In front of us, we have a typical soft story building. When i see this, i think this is some of the most beautiful architecture our city has. A lot of people dont know these are problematic buildings. Why dont you tell us about some of the risks he we have in these buildings . Soft stories are vulnerable in past earthquakes and the northridge earthquake to this type of building and character of building. When we talk about the soft story, what were talking about is generally a ground story that has less wall or other pwraeugs to resist the lateral forces that might be imposed by the earthquake. So were looking for something that is particularly weak or soft in this ground story. Now, this is a wonderful example of what some of the residential buildings that are soft stories in San Francisco look like. And the 1 thing that i would point out here is that the upper force of this building have residential units. They have not only a fair amount of wall around the exterior of the building but they also have very extensive walls in the interior and bathrooms and bedrooms and corridors and everything that has a certificate amount of brazing yea its significantly less country srabl in those stories. Now very often, we get even a garage or storage or sometimes commercial occupancy in this ground story. That very often not only has a whole lot less perimeter wall but it often has little or no wall on the interior. That wall is the earthquake bracing and so he see very significant bracing in the top floor and very little on the bottom. When the earthquake comes and hits, it tries to push that ground floor over and theres very little that keeps it from moving and degrading and eventually paoerblly keeping it from a collapse occurring. So we know theyre vulnerable because of this ground story collapsing is this only a problem we see in sentence france . San francisco . No, this is certainly a national problem. More acute in western but more up to california, washington, moving out into other states. This kind of building exist and this kind of building is vulnerable. When youre involved with the community safety, this is a different way of thinking about these types of things. We had a Community Group of over 100 people involved and upper 1 of them. Tell us about how that conversation went. Why did we decide as a city or a community to start fixing these types of buildings . There were a lot of aspects that were considered well beyond just the engineering answer that these are vulnerable. And that effort brought in a lot of people from different aspects of the community that looked at the importance of these buildings to the Housing Stock and the possible ramifications of losing this houbgs in the case of an earthquake. The financial implications, the historic preserve vacation s implication as you mentioned, these are very handsome looking buildings that are importance to the tourist city ask which make San Francisco something that people are interested from outside in coming and visiting. Its such animation story when you think about the 10 years that the community spent talking about this seurb but we actually did something about it. Now we have an order unanimouses put in place to protect 100,000 residents in San Francisco and retrospective in 2020. So on behalf of residents and employees in San Francisco, we want to say thank you for the work youve done in pushing this forward and making people more aware of these issues. And it was a fantastic community effort. So in an earth quake, what happens in these kinds of buildings . What happens when an earthquake comes along is it moves the ground both horizontally and vertically. Its mostly the horizontal that were worried about. It starts moving the Building Back and forth and pushing on it. When you see im pushing on it, the upper stiff of the wall stay straight up but the lower floors, they actually collapse just like i did there. Luckily, we can put this building right back up where it came from so its a lot easier. Now kelly, obviously these arent real frame walls here but when you talk about buildings, what makes the property for stiff . The easiest and most costeffective type of bracing you can put in is either put in a brand new wall or to potentially go in and strengthen a wall thats already there where you dont need to have an opening is where you maybe have a garage door or access to commercial space, you might go to a steel frame or other types of bracing systems that provides the strength and stiff if necessary but at the same time, allows continued use of that area. But some combination of walls or frames or other tools that are in the tool kit that can bring the building up to the strength thats required in order to remove the vulnerability from the building so that when ground shaking comes, it in fact is a whole lot more resistant and less vulnerable. Ideally, this story down here would be made as strong and stiff as the floors above. If im a property owner, what is the first thing i should do . The first thing you should do is find professional that can come in and help you evaluate your building in order to, 1, figure out that indeed it does need to be retro fitted and 2, give you some idea of what that retro fit might look like. And third, evaluation and design to help you determine the retro fit requirement. Well kelly, i cant thank you enough for being here today. Thank you so much for your wealth of information on how we can take care of our soft story problem in San Francisco. And you the viewer, if you have any questions, please feel free to visit our website [ ] i really believe that art should be available to people for free, and it should be part of our world, you shouldnt just be something in museums, and i love that the people can just go there and it is there for everyone. [ ] i would say i am a multidimensional artist. I came out of painting, but have also really enjoyed tactile properties of artwork and tile work. I always have an interest in public art. I really believe that art should be available to people for free, and it should be part of our world. You shouldnt just be something in museums. I love that people can just go there, and it is there for everyone. Public art is art with a job to do. It is a place where the architecture meets the public. Where the artist takes the meaning of the site, and gives a voice to its. We commission culture, murals, mosaics, black pieces, cut to mental, different types of material. It is not just downtown, or the big sculptures you see, we are in the neighborhood. Those are some of the most beloved kinds of projects that really give our libraries and Recreation Centers a sense of uniqueness, and being specific to that neighborhood. Colette test on a number of those projects for its. One of my favorites is the oceanview library, as well as several parks, and the steps. Mosaics are created with tile that is either broken or cut in some way, and rearranged to make a pattern. You need to use a tool, nippers, as they are called, to actually shape the tiles of it so you can get them to fit incorrectly. I glued them to mash, and then they are taken, now usually installed by someone who is not to me, and they put cement on the wall, and they pick up the mash with the tiles attached to it, and they stick it to the wall, and then they groped it afterwards. [ ] we had never really seen artwork done on a stairway of the kinds that we were thinking of because our idea was very just barely pictorial, and to have a picture broken up like that, we were not sure if it would visually work. So we just took paper that size and drew what our idea was, and cut it into strips, and took it down there and taped it to the steps, and stepped back and looked around, and walked up and down and figured out how it would really work visually. [ ] my theme was chinese heights because i find them very beautiful. And also because mosaic is such a heavy, dens, static medium, and i always like to try and incorporate movement into its, and i work with the theme of water a lot, with wind, with clouds, just because i like movements and lightness, so i liked the contrast of making kites out of very heavy, hard material. So one side is a dragon kite, and then there are several different kites in the sky with the clouds, and a little girl below flying it. [ ] there are pieces that are particularly meaningful to me. During the time that we were working on it, my son was a disaffected, unhappy high school student. There was a day where i was on the way to take them to school, and he was looking glum, as usual, and so halfway to school, i turned around and said, how about if i tell the school you are sick and you come make tiles with us, so there is a tile that he made to. It is a little bird. The relationship with a work of art is something that develops over time, and if you have memories connected with a place from when you are a child, and you come back and you see it again with the eyes of an adult, it is a different thing, and is just part of what makes the city an exciting place. [ ] good afternoon this meeting will come to order. Welcome to the july 17, 2023 regular meeting of the lands use and Transportation Committee of the San Francisco board of supervisors. I am supervisor melgar chair. Joined by vice chair supervisor preston and board of supervisors president supervisor peskin. The Committee Clerk today is erika major. I would like to acknowledge collena mendoza at sfgovtv for staffing the meeting. The board of supervisors and committees convening hybrid meetings with Public Comment and remote comment via telephone. Public comment will be takenn