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HomeMy WebLinkAboutStaff Report 2310-21932. Staff Recommends the Policy and Services Commitee Recommend the City Council Accept the Status Update of the Audit of the Building and Permit Review Report 3 2 3 2 Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: November 14, 2023 Report #: 2310-2193 TITLE Staff Recommends the Policy and Services Committee Recommend the City Council Accept the Status Update of the Audit of the Building and Permit Review Report RECOMMENDATION Staff recommends the Policy and Services Committee recommend the City Council accept the status update of the Audit of the Building and Permit Review Report. BACKGROUND Baker Tilly, in its capacity as the Office of the City Auditor, performed an assessment of the Planning and Development Services (PDS) building permitting process. On June 20, 2022, the City Auditor issued the Building Permit and Review Report1 with three main audit objectives: 1) Identify the highest impact areas to focus (e.g. specific permit type(s), specific sub- processes, etc.). 2) Document corresponding process(es) and evaluate for efficiency and effectiveness. 3) Benchmark operational performance against industry practices and established standards. Although the audit summary contained fifteen (15) recommendations, the detailed report provided an expanded list of seventeen (17) actionable recommendations. PDS will be responding to and providing an update on the expanded list of recommendations. ANALYSIS As reflected below and on the Attachment, 9 of the 17 recommendations are now complete, with the remainder in progress or not yet started. Over the last year, Planning and 1https://www.cityofpaloalto.org/files/assets/public/v/2/city-auditor/reports/oca-4.9-building-permit-process- review.pdf 3 2 3 2 Development Services has been focused on three key areas for improvement at the Development Center: Staffing Model; Technology and Customer Accessibility of Information; and, Process, Training, and Operations. Each of these areas are interwoven throughout the building permitting process and updates to these areas collectively address multiple recommendations and findings articulated in the Building Permit and Review Report. Staffing Model Impacts of the pandemic required PDS to restructure the staffing models of two program areas, building inspection and building plan review. Prior to Covid-19, the building inspection program was supported by 50% staff and 50% consultants, and the building plan review program was 100% contracted out to consultants. PDS was challenged with limited consultant availability and high turnover, which resulted in long inspection lead times and delayed turnaround times on plan reviews. By the end of 2022, staff met with all eight on-call consultant firms to better understand the inability for Palo Alto to secure consultants. These meetings confirmed that across the industry, there was a limited supply of experienced and qualified consultants in the field. Retirees who contributed to the consultant workforce fully retired. Many consultants relocated due to the availability of remote work. Inspectors and plan review engineers were able to be selective in the jurisdictions they were employed in. Previous consultants and staff, who were willing to make the long commute, were no longer required to. In FY2022 and FY2023, PDS was experiencing a higher rate of attrition for both consultants and staff compared to the rate of hiring. To remedy these challenges and enable the Development Center to maintain a minimum level of service, PDS implemented the following changes to transition the building inspection program to a 100% in-house staffing model and the plan review program into a hybrid model: •Added 2.0 FTE Building Inspector Specialists and 2.0 FTE Plan Check Engineer in the FY2023 and FY2024 operating budget. •Collaborated with a consultant to hire part-time trainee inspectors to invest into a pipeline for future recruitments and augment staffing levels to increase inspection availability at times of peak volume. •Created two new classifications, Senior Building Inspector and Senior Plan Review Engineer, for market competitiveness, succession planning, and retention. •Reclassed all 8.0 FTE Building Inspector Specialists to Senior Building Inspectors and 2.0 FTE Plan Check Engineer to Senior Plan Check Engineer to allow the department to be nimble in recruitment strategy and flexibility in responding to attrition. •Reallocated temporary part-time administrative support as an HR liaison to expedite PDS recruitments. These actions have resulted in the restoration of inspection availability within 48 hours of a request and the reduction of late plan reviews. In FY2022, the average rate of on-time building plan reviews was 80%. In FY2023 and Q1‘24, these rates increased to 86% and 92%, 3 2 3 2 respectively. Additionally, current staffing levels have restored the inspection staff‘s capacity to invest time in training beyond maintaining minimum certifications. As of October 2023, there is one vacant building inspector position and one vacant plan review engineer; both recruitments are underway and will likely be filled by the end of the calendar year. Changes to the staffing and consultant model complete six of the seventeen (17) recommendations. PDS will continue to revisit this service model to ensure it is sustainable and will adjust as necessary based on shifts in the industry. PDS will also be conducting a request for proposals for development services on-call providers to update and expand the list of available consultants in 2024. Technology and Customer Accessibility of Information PDS has continued to explore technology enhancements and better platforms to increase communications with applicants and streamline the application process. The reliance on technology continues to grow, especially with the transition to hybrid, virtual and in person service offerings. Throughout the last year, PDS has been evaluating the use of technology and the accessibility of guidance and resources through the application process. There are three main platforms that enable the permitting process: Online Permitting System (OPS/Accela), Accela Citizen Access (ACA), and DigEplan. •OPS/Accela is the software used by staff to process permits internally by documenting the workflow, storing documents, processing fees, and managing inspections. •ACA is the main online permitting system that allows applicants to submit applications, check on statuses, respond to comments, download plans and permits, and schedule inspections. •DigEplan is the electronic document review (EDR) software that allows staff to markup digital plans during the review process. This system integrates the comments into Accela for online permitting services. The audit recommends OPS and ACA be updated to become more intuitive and incorporate relevant information; however, PDS is limited in its ability to customize the user interface as it is a third-party provider. Staff has simplified the information on the ACA main page and created newly released navigation guides to assist users in the application process. Staff is currently working on digitizing data collection by creating a fillable embedded form within OPS. Additionally, in the first half of 2023, PDS completed a request for proposals for an EDR software to evaluate for the best available technology. As noted in the management action plan, DigEplan was set up on an urgent basis to respond to the pandemic and allow for continuity of services; a contract will be presented to Council in November 2023. PDS is also exploring third party vendors who can improve the existing user interface of ACA and embed a wizard to guide applicants through the process. Implementation of these changes are 3 2 3 2 anticipated to extend beyond the timeframe of the audit update as new technology will need to be procured, customized and implemented. PDS designed and released a new webpage2 to "Apply for a Permit” in July 2023 that provides better guidance and increases visibility of relevant information to applicants. Staff created customized step-by-step instructions for each permit type and published simplified submittal checklists to provide clarity in application requirements. Staff also further promoted appointment availabilities throughout the webpages to encourage applicants to make an appointment for assistance. If an application is not accepted, project coordination staff are also proactively calling applicants to offer assistance. This has resulted in clearer communications and instructions for applicants and improved user access. Lastly, where able, staff leveraged technology to increase automated and instant permit types. In collaboration with the National Renewable Energy Laboratory (NREL) and the alternative energy industry, Palo Alto initiated the SolarAPP+ pilot program in April 2022 to automate code-compliance review for most residential roof-top photovoltaic (PV) projects with select experienced PV installers. In September 2023, PDS expanded the SolarAPP+ program to include both qualifying PV-only and combination PV and Energy Storage System (ESS) projects in an effort to reduce processing times for applicants. SolarAPP+ is now available to all contractors with qualifying projects. PDS also published a new instant permit process for Residential Heat Pump Water Heaters in January 2023 and are currently working to include Heat Pump Mechanical Residential Replacements and Residential Bath and Kitchen Remodels (like for like) by June 2024. Although these changes have addressed five of the seventeen recommendations, PDS has identified one as complete and four as in progress because exploring technology and improving the user interface and information accessibility is an ongoing process. As the department continues to leverage technology to improve services, updates will be included in the next iteration of progress reporting. Processes, Training, and Operations PDS internally reviewed the application process from both the customer and staff processing perspective and have implemented changes to improve quality control, increase communications with customers, simplify the application process, and invest in employee training for better service delivery. To streamline the application process and improve communication with customers, PDS created simplified checklists for application submittal and increased internal communications on plan review deadlines. Previously ranging from 2-15 pages, requirements have now been reduced to 1-2 pages and provide clear and consistent expectations of application acceptance 2 https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Development-Services/Apply-for- a-Permit 3 2 3 2 or rejection, eliminating the need for pre-application reviews and routing. Once an application is accepted and routed internally, staff receive notifications for pending reviews in two places, the ACA task list by due date and an email. In August 2022, staff also developed a pending and late reviews internal tracking system for building permits and pre-applications to provide the Development Center Permit Manager further visibility into the application process and enable the manager to proactively coordinate with internal partners on their reviews. During summer 2023, PDS conducted an appointment pilot program to understand when an appointment would be most helpful and impactful to customers. Although both virtual and in person appointments are available daily, they are not required. The results of the appointment pilot informed the department that not all customers want to meet and those who are familiar with the process prefer to process their application online; however, there are applicants who may be new to the process or have complex projects who and would benefit from a required appointment. At this time, staff are working on optimizing appointments and exploring requiring appointments for certain types of applications to help customers navigate the application process more effectively and efficiently. The department has also prioritized training to improve the quality-of-service delivery. Previously impacted by limited staff and consultant availability, the implemented structural changes created capacity for building inspectors and plan reviewers for training beyond the minimum requirements to maintain certifications. Both staff and the community benefit from the expansion of knowledge and expertise of technical staff, who are responsible for community life safety. To improve quality control, all project coordination staff have attended a training for “How to Properly Screen Plans for Successful Permit Services” by the California Building Officials. PDS is also focused on expanding training beyond technical skills and held a mandatory department-wide two-part training on customer service, “Staying Courteous Under Pressure” by Public Sector Excellence. The first session was held in October and the next session will occur early 2024. Continual investment in staff will provide a higher caliber of service delivery and aid in the retention of experienced employees. Of the remaining six recommendations, two have been completed and three are in progress through the actions above. The outstanding recommendation that has not been started is developing a PDS strategic plan. As noted in the action plan, the department is continuing to implement changes to permitting operations and service delivery. A strategic plan can begin in about one year; the completion of the plan and report to Council can be expected in about two years. Over the last year, the Department has made significant strides in improving service delivery at the Development Center. These incremental changes impact all areas of operations and require thoughtful execution. The department has also been precluded in advancing the recommendations in this audit due to vacancies in key positions across all program areas. One more notable position is the Assistant Chief Building Official, added in July 2022, intended to lead the implementation of audit recommendations, establish interdepartmental workflows, 3 2 3 2 and provide strategic direction on complex operational change and policy. This position has been vacant since its approval, and the department is currently evaluating the position classification to align with the market after an unsuccessful recruitment. In the next year, PDS will continue to prioritize the implementation of the audit recommendations and further focus on customer service through developing internal dashboards for better performance tracking, increasing survey responses by expanding outreach, and leveraging technology to better integrate data into existing platforms for an optimal user experience. For detailed responses to each of the seventeen recommendations, refer to Attachment A. In the interest of time, staff is providing this update to report to the Committee and public about the status of this important work. Staff is in the process of reviewing this information and status of recommendations with AUD for final close-out of the items staff believes have been sufficiently addressed. FISCAL/RESOURCE IMPACT Resource requests to support the audit recommendations have been included in the FY 2024 operating budget. If further resources are required, Planning and Development Services will include these requests in the annual budget appropriation process. ATTACHMENTS Attachment A: Status of Audit Recommendations ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 1 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: The lead time for a building inspection is approximately two weeks from request to inspection. Hire an additional Inspector to help improve and maintain lead times. An additional staff member would also help support the requirement for Inspectors to meet continuing education requirements (100 hours per year per inspector) and keep up with changes in the building industry. PDS Concurrence: Agree Target Date: Ongoing / October 31, 2022 Action Plan: PDS is seeking two new inspector positions as part of the FY22-23 budget and is currently recruiting for these two new inspector positions using City Manager authorized over-strength positions. Complete Management Update October 2023: PDS has restructured this program to maintain a minimum level of service and lead times. In the FY2023 Adopted Operating Budget, PDS added two new inspector positions. In FY2024, PDS developed a new classification, Senior Building Inspector and reclassified all 8.0 existing positions to reduce turnover, aid in succession planning, hire more flexibility, and create a path to be nimble and responsive to attrition. In addition, PDS collaborated with a consultant to hire part-time trainee inspectors to invest into a pipeline for future recruitments and augment staffing levels to increase inspection availability at times of peak volume. It is important to note that the building inspection program is susceptible to increased wait times when multiple staff are out of the office for approved leave (sick, worker’s compensation, vacation, etc.). The department is proactively managing though training and utilizing part time consultant inspectors when available. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 2 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Find additional efficiencies with current staff, including assigning geographic areas to Inspectors to reduce travel time and possibly assigning inspections by specialty PDS Concurrence: Partially Agree Target Date: Ongoing / October 31, 2022 Action Plan: To the extent feasible, this already occurs. Challenges arise however depending on the type of inspection needed and if that requires an inspector with a certain skill-set or specialty. It is anticipated with the addition of two additional inspectors and consultant funding requested in the FY22-23 budget, combined with existing efforts to assign inspections based on geography, the department will be able to restore more timely inspections schedules. Complete Management Update October 2023: Inspection times have been restored to availability within 48 hours when fully staffed as a result of the actions articulated above. As noted in the action plan, this already occurs but skill set and specialty are key factors in daily assignments. If lead time lengths persist after hiring of additional inspector, PDS should renew efforts to utilize contract inspectors to assist with peak application times. As part of this, PDS should expand the pool of contract Inspectors it can rely on that are versed in City building code or find ways to utilize contract staff for Inspections that are not as heavily modified per City building code. PDS Concurrence: Agree Target Date: October 31, 2022 Action Plan: PDS is proactively seeking a two additional inspectors. As part of the FY22-23 budget, PDS is also requesting additional consultant funds to bring in inspectors to manage increased workload or respond to staff absences. Moreover, staff is reviewing its contracts with venders to ensure Palo Alto remains competitive with other jurisdictions. Complete Management Update October 2023: Inspection times have been restored to availability within 48 hours when fully staffed as a result of the actions articulated above. In addition, PDS will be conducting a request for proposals in CY2024 to update and expand the pool of available on-call development services consultants for inspection and plan review services ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 3 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Consider third party plan review and inspection options with applicants paying a premium fee for expedited review (certified by the City, with a fees/premium price to the applicant to ensure no cost to City, and establish a quality assurance process). PDS Concurrence: Partially Agree Target Date: October 31, 2022 Action Plan: If the above actions do not sufficiently address the delay in inspection services, staff will consider this recommendation as a contingency to address continued delays. It is worth noting this recommendation adds some complexity to the operation and additional staff resources to manage which may draw attention away from other efforts. Complete Management Update October 2023: Inspection times have been restored to availability within 48 hours when fully staffed as a result of the actions articulated above. To address plan review lead times, In FY2023 and FY2024, PDS added a total of 2.0 FTE Plan Review Engineers. One of those vacancies have been filled and the second vacancy is expected to be filled by the end of the year. PDS also created two new classifications, Senior Building Inspector and Senior Plan Review Engineer, for market competitiveness, succession planning, and retention. Consider the role of a lead inspector/field supervisor to help with training, quality control, and other duties that would assist inspection manager PDS Concurrence: Agree Target Date: March 31, 2023 Action Plan: Staff will coordinate with Human Resources to conduct a classification review to evaluate the scope of work for the position and determine the appropriate level within the organization structure. Complete Management Update October 2023: In February 2023, as part of the midyear budget, Council approved two new classifications: Senior Building Inspector and Senior Plan Review Engineer. Both classifications are pending formal approval by SEIU and Council. PDS expects adoption by the end this year and will be releasing an internal promotional opportunity for a lead inspector to assist with training, daily route assignments, and other duties in support of the Building Inspection Manager. This additional capacity would allow the manager to also participate in more quality control in the field and advance succession planning and retention of experienced staff. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 4 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Customers/applicants need better information on all aspects of the permitting and inspection process. The OCA recommends that PDS takes steps to ensure that all relevant building codes, compliance guides, checklists, videos and other process requirements/documentation are current, visible, and readily accessible on-line. PDS Concurrence: Agree Target Date: Ongoing / June 30, 2023 Action Plan: Staff will update recommended documents, organize information succinctly on webpage, reference documents throughout the permitting process and coordinate with other City departments to do the same. The department will also prepare a FAQ section on the website. In Progress Management Update October 2023: PDS designed and released a new webpage to "Apply for a Permit” in July 2023 that provides better guidance and increases visibility of relevant information to applicants. Staff created customized step-by-step instructions for each permit type and published simplified submittal checklists to provide clarity in application requirements. Staff is currently updating detailed checklists and developing inspection guidelines to reflect the newly adopted code in January 2023. Finding: A number of the forms, guidelines, and checklists provided on PDS’s website date from prior use of the OPS system. The OCA recommends modifying OPS to incorporate relevant information and present in more intuitive format. PDS Concurrence: Agree Target Date: Ongoing / June 30, 2023 Action Plan: Staff views this as a parallel process to recommendation 2 and will update forms and checklists and improve integration with the Online Permit System. Staff is also reviewing the workflow to submit a pre- application/building permit and anticipates changes to clarify processes and make the system more integrated and seamless from the customer’s perspective. In Progress Management Update October 2023: The updated “Apply for a Permit” website provides customized step-by- step instructions for each permit type. Staff has simplified the information on the Accela Citizen Access (ACA) main page and created newly released navigation guides to assist users in the application process. Staff is currently developing fillable online building application forms to integrate into ACA to provide a more seamless process. Because Accela Citizen Access is a third-party system, staff is limited in the ability to customize the program. PDS is exploring other third-party Accela integrated partners to modify ACA to be more intuitive for applicants and understand if other forms can be embedded within ACA. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 5 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date The OCA recommends to providing better guidance resources and rejecting any incomplete applications. PDS Concurrence: Agree Target Date: June 30, 2023 Action Plan: Concurrent with the prior two recommendations, staff will improve forms, guidelines and checklists to improve expectations and establish clear processes to ensure application submittals are complete and ready for conversion into a building permit application. Complete Management Update October 2023: The updated “Apply for a Permit” website provides customized step-by- step instructions for each permit type, and staff has created newly released navigation guides to assist users in the application process. PDS also developed simplified checklists for application submittal. Previously ranging from 2-15 pages, requirements have now been reduced to 1-2 pages and provide clear and consistent expectations of application acceptance or rejection, eliminating the need for pre-application reviews and routing. If an application is not accepted, project coordination staff are also proactively calling applicants to offer assistance. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 6 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Requirements for pre-application/application plan review and permitting are not always clear. The OCA recommends improving notification for all involved departments of pending reviews simultaneously at the pre-application stage. PDS Concurrence: Partially Agree Target Date: Ongoing / June 30, 2023 Action Plan: Sending notification to all involved departments of pending pre-application reviews adds significantly more work to project reviewers supporting the DC. One role of the coordinator is to vet these issues and minimize this burden to other plan reviewers. There currently is no screening process for pre- applications. Staff is also finding that it is missing a critical touchpoint with its customers having made this process available online. Accordingly, staff is exploring opportunities to require in- person or virtual appointments on a pilot program basis to see if this real-time interaction can improve the quality of submittals and result the pre- application to a building permit application at the meeting instead of relying on an exchange of email messages and uploading of application material, which takes a long time to implement. Complete Management Update October 2023: To streamline the application process and improve communication with customers, PDS created simplified checklists for application submittal and increased internal communications on plan review deadlines. Previously ranging from 2-15 pages, requirements have now been reduced to 1-2 pages and provide clear and consistent expectations of application acceptance or rejection, eliminating the need for pre-application reviews and routing. Once an application is accepted and routed internally, staff receive notifications for pending reviews in two places, the ACA task list by due date and an email. In August 2022, staff also developed a pending and late reviews internal tracking system for building permits and pre-applications to provide the Development Center Permit Manager further visibility into the application process and enable the manger to proactively coordinate with internal partners on their reviews. During summer 2023, PDS conducted an appointment pilot program to understand when an appointment would be most helpful and impactful to customers. Staff is working on optimizing appointments and exploring requiring appointments for certain types of applications to help customers navigate the application process more effectively and efficiently. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 7 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: PDF forms required by OPS, including the building permit application, do not always provide sufficient information for review. The OCA recommends digitizing data collection from PDF to directly in the OPS system to ensure that all relevant data is captured. PDS Concurrence: Agree Target Date: Ongoing / June 30, 2023 Action Plan: Staff is currently having discussions about using online, fillable forms and integrating this information into the Accela permitting system. This effort ties into the other recommendations to improve access to forms, checklists and improve processes. In Progress Management Update October 2023: Staff is currently working in developing a building permit application that is embedded into the ACA. However, not all forms are able to be embedded within the platform at this time and a 3rd party vendor is required to develop this integration. Staff is currently exploring this option. PDS is also focusing on streamlining the application process where possible through other technologies, such SolarAPP+ and instant permits. In collaboration with the National Renewable Energy Laboratory (NREL) and the alternative energy industry, Palo Alto initiated the SolarAPP+ pilot program in April 2022 to automate code-compliance review for most residential roof-top photovoltaic (PV) projects with select experienced PV installers. In September 2023, PDS expanded the SolarAPP+ program to include both qualifying PV-only and combination PV and Energy Storage System (ESS) projects in an effort to reduce processing times for applicants. SolarAPP+ is now available to all contractors with qualifying projects. PDS also published a new instant permit process for Residential Heat Pump Water Heaters in January 2023 and are currently working to include Heat Pump Mechanical Residential Replacements and Residential bath and Kitchen Remodels (like for like) by June 2024. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 8 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: PDS does not have a shared and consistent set of Standard Operating Procedures (SOPs). The OCA recommends development of a robust set of internal standard operating procedures and develop timeline and process for routine review and updates of procedures. PDS Concurrence: Agree Target Date: December 31, 2023 Action Plan: This requires considerable staff resources and at a time when the department will be re- examining processes and procedures and making substantial refinements to forms and checklists and updates to the department website. Staff agrees with the recommendation but will need additional time fulfil this request. In Progress Management Update October 2023: PDS is continuing to make substantial improvements to refine existing process and procedures. Once the Development Center operations are more static, staff will be establishing a documented processes and procedures to ensure internal standard operating procedure are documented. PDS will need additional time to fulfill this request in the next year. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 9 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: PDS is operating under an outdated initiative for the operation of its building permit function. The OCA recommends PDS develop an updated strategic plan reflecting current realities and the lessons-learned throughout the pandemic. PDS Concurrence: Agree Target Date: December 31, 2025 Action Plan: An updated strategic plan would be helpful to guide process improvements and would serve to recommit resources and refine performance and service expectations. Significant changes have occurred since the Blueprint was adopted and it warrants an update. The staff resources and time needed to properly prepare an updated strategic plan is extensive. The department is currently implementing several structural and operational changes to respond to a changed work environment, new challenges, and adjusting its service model to respond to challenges. Staff anticipates an updated strategic plan can begin in about two-years with completion and report to Council within three years. Not Started Management Update October 2023: PDS is continuing to implement changes to permitting operations and service delivery. A strategic plan can begin in about one year; the completion of the plan and report to Council can be expected in about two years. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 10 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Technology challenges impede plan review and permitting processes. The OCA recommends that PDS continues exploring technology enhancements and better platforms PDS Concurrence: Agree Target Date: Ongoing Action Plan: This is an ongoing task. The department’s Data Analysis Team works daily to make system upgrades and improvements to respond to internal and external customer needs. The department has a request in the FY22-23 budget for an additional FTE resource to reflect the fact that the permitting operation requires more backend support as it shifts to more online services. Additionally, the department is currently in the process of conducting a request for proposals for an electronic plan review system; as noted in the audit, the department currently uses Digiplan, which was set up on an urgent basis to respond to the pandemic. Through the RFP process staff will be able to evaluate available options. In Progress Management Update Oct 2023: In the first half of 2023, PDS completed a request for proposals for an EDR software to evaluate for the best available technology. As noted in the management action plan, DigEplan was set up on an urgent basis to respond to the pandemic and allow for continuity of services; a contract will be presented to Council in November 2023 The department is also focusing on streamlining the application process where possible through other platforms, such SolarAPP+ and instant permits. As noted earlier, PDS expanded the SolarAPP+ program to include qualifying PV-only and combination PV and Energy Storage System (ESS) projects to reduce processing times for applicants. SolarAPP+ is now available to all contractors with qualifying projects.PDS also published a new instant permit process for Residential Heat Pump Water Heaters in January 2023 and are currently working to include Heat Pump Mechanical Residential Replacements and Residential bath and Kitchen Remodels (like for like) by June 2024. PDS is also exploring third party vendors who can improve the existing user interface of ACA and embed a wizard to guide applicants through the process. Implementation of these changes are anticipated to extend beyond the timeframe of the audit update as new technology will need to be procured, customized and implemented. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 11 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Project Coordinator training needs improvement. Inspectors need time for training. The OCA recommends PDS create materials to train from and prioritize time for training. PDS Concurrence: Agree Target Date: Ongoing/December 2023 Action Plan: Building inspectors are allotted time for mandatory training hours. Project coordinators would benefit from SOPs as recommended above and this effort will also track with that timeline. The project coordinator program has not fully developed into the proactive project manager role as envisioned in the Blueprint and there is department interest in seeing this through. At the time of this audit, coordinator staff has experienced significant disruptions to the manner in which they provide service to customers, communicate internally with remote workers supporting the DC and learn new software systems in response to the pandemic and shift to online services. Managers will continue to explore training opportunities, refine and streamline processes and prioritize training. In Progress Management Update October 2023: Previously impacted by limited staff and consultant availability, the implemented structural changes created capacity for building inspectors and plan reviewers for training beyond the minimum requirements to maintain certifications. All project coordination staff have attended a training for “How to Properly Screen Plans for Successful Permit Services” by the California Building Officials to improve quality control and are continuing to enroll in training opportunities as they arise. The department is also focused on expanding training beyond technical skills and held a mandatory department-wide two-part training on customer service, “Staying Courteous Under Pressure” by Public Sector Excellence. The first session was held in October and the next session will occur early 2024. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 12 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Palo Alto code modifications increase the complexity of the building plan review and permitting process. The OCA recommends that interim code interim modifications are limited as much as possible PDS Concurrence: Agree Target Date: Ongoing Action Plan: Staff agrees that amendments to the building code should be limited. Staff is also unaware of any interim building code modifications that have occurred outside of the State-mandated cycle. The City does tend to adopt more aggressive green building standards than the State mandates but these occur during the regular adoption cycle. The planning operation sees many code updates including interim zoning codes that may affect development but these are typically Council-directed policy initiatives or State-legislative actions. Complete Management Update October 2023: Although a new code cycle was adopted in January 2022, the department limited changes to state mandated updates to minimize impacts to applicants. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 13 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Quality control processes can be strengthened. The OCA recommends PDS place a greater emphasis on quality control and resources to help promote it. PDS Concurrence: Agree Target Date: June 30, 2023 Action Plan: Many of the recommendations in this audit will strengthen quality control. Additional inspectors, training, SOPs and process improvements will all help achieve this goal. Additionally, PDS has put forth a FY22-23 budget proposal for additional staff and consultant resources to further support operations and improve processes. The audit also recommends performance metrics. Staff will implement these metrics over the course of the next year and include them in performance evaluations for PDS staff and encourage the same for staff supporting the DC from other departments. In Progress Management Update October 2023: Application Processing/Project Coordinators: PDS added consultant permit technicians to support application process and enable staff to learn and implement updated processes. Additionally, staff are investing more time in training to improve their depth of knowledge and skillsets for consistent application of technical requirements. Building Inspection: Transitioning the building inspection program to fully in house has addressed inspection wait times and increased redundancies for injuries, sick, or other approved leaves. The building inspection manager is now able to focus time on staff training and quality controlling inspections in the field. Building Plan Review: Previously, this program was fully contracted out to various consultant and due to limited consultant availability, the manager leading this program was required to focus time on both quality control and performing a high volume of building plan reviews. With the addition of 2.0 staff FTE, the program manager is able to ensure consistent quality control across all plan reviewers and is able to provide training to ensure a standard level of review. Although improvements have been made in the various program areas, additional work is required to further the emphasis on quality control and a critical component of is the development of the standard operating procedures. ATTACHMENT A Status of Audit Recommendations Building Permit and Review Report – Issued 06/20/2022 14 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan To be completed 6 months after Council acceptance and every 6 months thereafter until all recommendations are implemented Current Status Implementation Update and Expected Completion Date Finding: Difficulties in hiring and retaining contract staff impede departmental performance. The OCA recommends that PDS develop plans to best utilize/balance contract staff. PDS Concurrence: Agree Target Date: Ongoing / June 30, 2023 Action Plan: The department has a strategy for its use of consultants. Specifically, consultants are used for plan review services and as needed to supplement the inspection program. Onboarding inspection contractors requires significant training and staff support and is typically employed when there is a long-term absence or vacancy. Staff has been unable to attract any plan review consultants to report to the development center since the pandemic. Accordingly, the department is seeking to hire an inhouse plan reviewer in the FY22- 23 budget and is exploring possible changes to consultant contracts to make Palo Alto more competitive with peer jurisdictions. Complete Management Update October 2023: PDS implemented the following changes to transition the building inspection program to a 100% in-house staffing model and the plan review program into a hybrid model: • Added 2.0 FTE Building Inspector Specialists and 2.0 FTE Plan Check Engineer in the FY2023 and FY2024 operating budget. • Collaborated with a consultant to hire part-time trainee inspectors to invest into a pipeline for future recruitments and augment staffing levels to increase inspection availability at times of peak volume. • Created two new classifications, Senior Building Inspector and Senior Plan Review Engineer, for market competitiveness, succession planning, and retention. • Reclassed all 8.0 FTE Building Inspector Specialists to Senior Building Inspectors and 2.0 FTE Plan Check Engineer to Senior Plan Check Engineer to allow the department to be nimble in recruitment strategy and flexibility in responding to attrition. • Reallocated temporary part-time administrative support as an HR liaison to expedite PDS recruitments. These actions have resulted in the restoration of inspection availability within 48 hours of a request and the reduction of late plan reviews.                        Policy & Services Committee Agenda Responses     Dear Policy and Services Committee:     On behalf of City Manager Ed Shikada, please find below the staff responses to questions from  Councilmember Tanaka regarding the Tuesday, November 14 Policy & Services Committee agenda  item.    Item 2:  STAFF RECOMMENDS THE POLICY AND SERVICES COMMITTEE RECOMMEND THE CITY  COUNCIL ACCEPT THE STATUS UPDATE OF THE AUDIT OF THE BUILDING AND PERMIT REVIEW REPORT  1. The 154 responses received from residents seem disproportionately low considering  the volume of over 3000 permits processed annually. This discrepancy raises the question:  Why were there only 154 response when we have significantly larger resident base  dealing with the Development Center regularly?    Staff response: It was a voluntary survey   2. We would like to understand how the individuals who participated in the survey were  selected. Could you please clarify the criteria and process used for inclusion in the survey?    Staff response: Applicants and customers can participate on through our website or through a link in  staff email signatures.  This is a simple self‐selected sampling survey intended capture general feedback  and is open to all who would like to provide anonymous feedback.    3. Can you shed light on the steps taken to mitigate potential biases in the survey,  particularly given the Development Center's reputation among architects, developers,  and others who interact with it?    Staff response: This is not a survey developed by a polling/research firm and may not include all the  statistical measures to account for potential basis. A survey of that nature would be costly and much  more complex. The questions in the survey are not leading and the survey is open to all who would like to  participate. In the next phase of improvement on customer feedback, PDS will be printing cards with a  QR code to hand out to each customer at the end of each inspection appointment to increase  participation in providing feedback.    4. We find these numbers quite intriguing, especially in light of the Development  Center's reputation for being inefficient and difficult to work with amongst many  architects, developers, and residents alike. We kindly request that you share your  insights and any information related to the survey process.    Staff response: The voluntary survey data is helpful as insightful feedback from some patrons to the  Development Center but is not shared to be representative of every visitor. Thus, it is not appropriate to  draw definitive conclusions from the data though it is helpful as an informational input that there are  users with positive experiences as well.