Good afternoon, today is friday, february 2nd, 2018, this is a special meeting of the building inspection commission. I would like to remind everyone to please turnoff your Electronic Devices. First is roll call. President mccarthy. Vice president walker. Commissioner gilman, commissioner constance. Commissioner lee, commissioner warshell. Commissioner clinch is excused. We have a quorum. Next is item 2. Discussion and possible action on the proposed double it of the department of knowledge inspections for fiscal years 2019 and 2020, 2018 and 2019. Good afternoon. Deputy director for the department of building inspection. Before you is the proposed fiscal year 1819, 1920 budget. We submitted a memo a week ago. I will present this as a Powerpoint Presentation so it will be easier to go through. First, similar to prior years, the budget funds positions, budget, training, it project to assist us in the Strategic Plan goals. That including performing inspections, delivering high customer service, Quality Customer service, effective administrative practices and engaging and educating the customers and other stakeholders. That is what our budget is geared towards. This year in addition to focusing on those items, we are also going to focus on Funding Priorities. This year our Funding Priorities are going to be the executive director 1702. Trying to get to streamlining the permitting and planning process for Affordable Housing to make sure we can get the 30,000 units built. Implementation of the Accessible Business Entrance Program. Mandatory soft story program. Of course, emergency preparedness. I wont say a new item but another eye tomorrow is on equity. That is ensuring to provide services equitably around the different neighborhood this is the city. So for our budget innstructions, we have the budget instructions. We are on a two year budget. This year it is 1819, 1920. The 1819 budget was approved last year. It serves as the base for this budget, for the new two year budget. The Mayors Office projects similar fund deficit similar to last year. General Fund Departments were instructed on 2. 5 general Fund Reductions for the next two years. Dbi is selfsufficient so we dont have to meet that directive. We dont worry about those reductions. The mayor instructed the departments to maintain the current ft, not increase the number of fulltime. As special Revenue Department we are required to do that. Lets just get into it now with the actual budget. First chart here are you are revenues. It shows the historical what they have been. Fiscal year 1112. As you can see, we are projecting next year for revenues to be lower than prior years, but we talked about this during the monthly meetings. Revenues are still strong. We expect it to go down a little bit. We had unprecedented growth in the past few years. A little more detail about the revenues. You will see revenues. It is a piechart that shows the distribution of revenues. It shows although we have over 40 different individual revenue sources, we have 60 made up of two revenue sources. Those are planned check revenues as well as Building Permit revenues. I will put the other ones up there. I think every one has. I will put up the major ones. We are going through quickly. The next slide will show you budget revenues. That just gives you a detail of revenues. Once again if you look at the change, look at planned checking the third or fourth revenue. You notice we are increasing to about 4. 5 million that is because two years ago when we started work on the budget our assumption was that we would be a lot lower given a decrease in activity and because of the impact of the new fees. We still see the revenues are pretty active. That is why we are bumping it up. It will belower than we projected this year. The other revenue would be Building Permits. 13. 7 million bumped up 700,000. Those are the revenues. Expenditures. Once again we are seeing that we are projecting revenues to be higher than this current year. It is leveling out. That is primarily due to a variety of things and i will go over that when we get to that point. Feel free to stop me if you have any questions while i go through the slides. The next is a piechart of expenditures. Similar to revenues to give you an idea where the focus of the expenditures are. The biggest bulk salaries then services of other departments, work orders. Since we moved to People Software that is 17 million. Those are the major expenditur expenditures. Then these are the details for the expenditures. You can see those details. You can see the salary and fringes increases in cola, retirement is going up, health is going up. That is where the increases are. You notice that services of other departments has gone down because if you recall this year we transferred about 3 million into hotel, Residential Hotel funds that were to go to mohcd. That brought that number down. Could i ask a question on the revenue side. With the degrees in 1 and 2 Family Rental unit fees. What is that about . Basically, it is based on the trends. For the past three years we have not collected more than 1. 2 million. We were budgeted at 1. 5. We brought it to where we collected it. Based on actual . Yes, based on actual. Thank you. Here are a few of the highlights o on the expenditure. We talked about salaries increasing because every timer and health. We also see that we are increasing our outreach. We are adding money for additional outreach for advertising, particularly for the Accessible Business Entrance Program. We are planning to have the earthquake safety fair. We will add extra money for outreach there. Mandatory soft storage. We will do outreach. Other programs i didnt include private schools, also private schools, too. We are focusing on getting the message out about the programs and doing all types of advertisement and different languages. We are adding more money to be sure we get the information out there. Out there in fiscal year 20 we will see a big increase because of the acella project. That will be a full year and we will on a new private cloud hosting, that means the amount has increased a lot. 1. 1 million. That is why we will see a big uptick there. Then in materials and supplies we talked about this at the last meeting, we had the electronic signature system. We did a pilot system on one side of fifth floor. Because of that success we will implement that through the building. We added materials and supplies, computers, monitors, televisions to implement that. That is a summary of the highlights. Those are purchases that we probably can transfer to the new building when we move there . Thank you for bringing that up. You wont see in this budget anything related to the new building. We are still in planning stages. What we will do is in 1920 we will see a big increase next year to take into consideration the new furnishings with the building. Everything else we purchase now we have spoken to our msi manager and he is working to make sure it fits with the new building. We are only gets things that can move over. We are scaling down. Doing what is necessary but we didnt want to wait two years. The system is working well if we want to implement it. Great. I think that is probably the highlights of it. I added in there if you were interested in knowing who were the services of other departments that we actually fund the big ones assessors office, fire department, controller, City Attorney. That is the budget at a high level. I would be more than happy to answer any questions. Commissioner lee. Since you brought up the new building. What is the target date of moving in the new building . I believe it is still 2020. Since we are talking about money do we know approximately how much we need to spend . We do not. There is nothing in the budget. Right now we are working with the team on looking at the internal layout, we ar we are wg with them. We havent gotten to furnishing or anything like that. At this point we are unclear. We would assume they want to do something consistent through the building. We want instructions from them. We may purchase the same types of equipment. Moving costs as well you will discuss . Moving cost and furnishings and Everything Else we will do. We will discuss that later. We werent ready to think about that in this budget. We hope once we are done with finalizing the layout of our floors and this is happening city wide, then the next phase, i think dpw is managing it, to go to actual furnishings and that those is. What is going to happen once we move out . I know the building was sold. Other than that i am not clear what will happen with that building . Have we anticipated the costs of what commissioner lee was referring to out every serves . Is there a reserve sept aside for set aside . Those arent included in the budget. I know we have a reserve and we also have a. We do have a research. I a reserve. I am not sure if we have to dip into reserves. We have reserves we will be able to use if for instance a year or two from now revenues are going down and we dont have enough revenue to support it, but for now we should be okay. Thank you. A question i had for the director with implementing the executive order 1702 i am concerned we are complying with the mayors request not to increase fte. Do we have the staffing to fully implement this directive . That is a good question. Yes, at this point we are working to fill vacancies. We have a lot of positions. In february at least five new people will be hired, about five people are retiring, too. We have vacancies that is the plan. Not only the mayors housing directive but also more on code enforce mend and Accessible Business Entrance Program to continuously try to fill vacancies. We just completed the building inspector list, and i think so far we hired three and there may be more from there. We will soon we are working on the housing list, on the electrical list and on a plumbing list. We are getting those lists ready to continuously fill the vacancies that are occurring due to retirements but also building up the staff to have enough people to meet the directives and get the job done. Just a couple of things. The acella program is, i guess, a november target. September of 2018. You know clearly the full support forgetting it implemented strongly is critical. That is not within your future budgeting. Your 1. 1 for Additional SupportGoing Forward is a separate issue. Are we certain that we have enough money set aside to make sure any contingencies necessary to ensure full adoption is successful . Yes, the acella project has project funds established a few years ago. That is what we are still working on. The current tract is about 4. 2 million is about 400,000 worth of contingency funds built in there. To get to the current at this point we have been told it will be 4. 2. Not the full 4. 2. That including 400,000 contingency. We should have enough funding to get there. The reason you see the additional amount in fiscal year 20 is because the hosting model has changed. Up to this point it was about 130,000. Because we are going to a private cloud that means something just for the city, it is increased by to 900,000. That is why we wont see the full cost until fiscal year 2020. We are not going live until september 18. We will use the old hosting models on the pricing of it. Your continuing gypsies look at what. They look okay right now. Let me use a caveat. Dbi is not managing acella. That is at department of technology. We ordered 4. 2 million to the department of technology in that contract for this phase to go live in september. There is about 400,000 in contingency. We heard that so far not very much has been used. I dont think any of it. There may be some used later, but not much has been used. I fully accept that you did a very wise use of history as the basis for all of the future plans and your adjustments make perfect sense. Sometimes it is a very healthy thing to look at a zero base. If i had it to do over, what would i change, what would i do . As you are most intimately familiar with all of the numbers. Are there anyplaces if you had more discretion to not have it quite so zero based so history based and more zero based, are there anyplaces in particular you personally would see investments . I am talking on the expenditure side, not revenue side, that we havent pursued in the interest of having this very clear historic reference . Well, the revenues are definitely based on historic. The expenditures not necessarily. We are in a better position than most departments that we have the revenues to do what we need to do with them. A lot of times following prior years would limit us for doing something new. For instance where we need to increase we have increased it. At the same time we have to balance with the fact we have to look at the prior spending because that is what the Mayors Office is going to look at and the board of supervisors is going to look at. If we say we want more money in training to half a million dollars. I can guarantee if we put a halfmillion dollars into training when we only spend 200,000. That would be cut even if we wanted to. Not because we dont have enough money because we do. It is because when others are reviewing the budget they look at the historical. For us we balance that with looking at other things. For instance, we probably will have to explain why we are increasing 1 million to the hosting and that will be a good professional services or current expenses. We will have to explain why we are increasing advertising. We feel we have a legitimate and reason for that we will show that. We have to balance with the funding we have to balance with looking at what we have done in the past because others will do that and we have to justify it. We increase what we need to increase. I keep getting back to this from the point of view of big organizations change is hard. If you are implementing acella you have to anticipate a lot of work, a lot of investment to make to be sure that our whole staff is fully embracing it, fully trained on ate, really comfortable with it, and enthusiastically prepared to use it to its maximum effectiveness. Same will come up when we have our whole new facility. That brings up not just buying new furniture and equipment. It is getting everybody really on board with it so that not only we make it without any glitches, which is sort of a baseline, but we really are maximizing the potential of the new facility to be part of the whole vision we have of how are we more efficient, how are we more customer friendly, how are we serving People Better . All of the thing that the new things can do so since we have been in this favorable surplus position, you know, i just am looking for ways to anticipate where some foreseeable Wise Investments for ensuring that these big change agents are most effectively done and done to really maximize the vision that we have for the department of better service, efficiency, all of the things we believe in an long with the core mission of Public Safety and, you know, effectively performing our core function. Getting ahead of things and, you know, especially when we are in surplus position so the justification is there, almost preparing people for it. It is something i would love to see us doing so that when we do make the presentation it is not that seems like too big a number, you know, lets cut it back and see if we can make it work with this smaller number because the city budget overall is tough this year. The more we do of set asides or preparing people two years, three years, four years in advance that these are critical investments that we believe are important to our longterm success and reaching our true mission and goals are things that i would love to see the call outs and preparing it. Just two things because you talked about the building and believes acella. For both big projects there is ocm associated with that. You may not see it in our budget but there is change of management and the city has a separate consultant working with all departments to make sure that happens. I am sure you are aware with acella the Department Heads change management. Lilly is out and henry have been working on that. It may not be called out in the budget. Particularly, with acella because it is going on for a long time and because we had funding in the budget and the project, annually we dont have to keep adding money because we have had a project set aside years ago. I do agree that we have to make sure people are involved and ready for the changes. We are working on that on the acella side and the city is working on that on the building side. Thank you very much. Thank you for the presentation. I dont know if you have the answer. If we go to services of other departments, city legal services, and i notice that number hasnt changed very much over the years. My question sometimes we see situations where the department is not involved with the decision that the City Attorney might make in regard to proceeding against some Building Permits or whatever. It might have gone through our litigation or niv processor whatever. The City Attorney would take it upon themselves to take action. It is a departments kind of just based on what it finds or the fines leveed to that. Does the department do we build for those times . Is that something we are involved in . Yes, we are billed. You are correct the budget for the City Attorney has not changed. Expenditures changed. Last year we moved money at the end of the year because of a huge case. The one thing in the budget a lot of times that is not necessarily driven by the department would be those work orders. I expect those to change. We have not if you look at your Powerpoint Presentation compared to what you received on january 31, you will see the numbers going up. We are just starting to get information about the work orders from other depar