HomeMy WebLinkAboutStaff Report 2509-5213CITY OF PALO ALTO
Retail Committee
Regular Meeting
Thursday, January 22, 2026
9:00 AM
Agenda Item
3.Development Services Permitting Operations Update Presentation
Retail Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: January 22, 2026
Report #:2509-5213
TITLE
Development Services Permitting Operations Update
RECOMMENDATION
Staff recommends that Retail Committee receive this report providing an update to the building
permit operations as previously referred to staff.
EXECUTIVE SUMMARY
The Planning and Development Services (PDS) Department has implemented significant
changes and improvements to its building permit operations over the last five years. Key
changes include transitioning to a fully digital permitting system, restructuring staffing models,
streamlining application and review processes, and modernizing technology. These
improvements have reduced initial permit response and approval times by over 30% from 2022
to 2024. The latest survey data shows 85% of respondents rated customer satisfaction as
“good” or “excellent.” Over the next year, PDS will continue to explore software options,
implement technology upgrades, expand instant permitting, monitor advancements in AI tools,
and continue to refine processes to enhance the user experience.
BACKGROUND
At its April 16th, 2025 meeting, the Retail Committee requested that Planning and Development
Services provide a status update on the building permit operations and upcoming planned
efforts to further improve and streamline the permitting process.
Since the onset of the pandemic in 2020, the Planning and Development Services department
has undertaken significant changes across staffing, processes, and technologies to strengthen
and improve permitting services. The department adapted again, establishing hybrid and in-
person service offerings while retaining key digital efficiencies. These transitions have required
ongoing evaluation and modifications to programs, systems, and service delivery models. This
report summarizes notable actions to date, results of those actions, and previews upcoming
initiatives for further improvements at the Development Center.
DISCUSSION
Beginning with the 2019 departmental merger that formed Planning and Development Services,
efforts have been underway to improve and streamline application processes. The Department
has diligently worked to transform its relationship with customers from a transactional
exchange to one of partnership. To guide this initiative, the Department is working through
three key organizational goals that:
Focus on building deep expertise across all permitting functions to support the
development community that align growth with city priorities to deliver consistent and
informed services.
Reflect the Department's commitment to professionalism, respect, and high-quality
service by earnestly working to help others achieve their goals; providing accurate
information, ensuring efficient communication and application processing, and
facilitating resolution with effective problem solving.
Emphasize support of the workforce by encouraging staff to exercise judgment, identify
opportunities for ongoing improvements, support professional growth, and foster a
positive, engaged and resilient work environment.
The core of these efforts is to continue aligning workplace culture with the service delivery
goals to exceed the service delivery expectations of our customers and help shift public
perception of this City operation. While there are always opportunities for improvement in a
customer service environment, some of the perceptions about the permitting process
represents a legacy narrative of interactions from long ago or with staff that are no longer
present, or experiences with outmoded processes or oversight systems.
To effectuate this goal, the Department continues to closely examine customer touchpoints
with staff to identify opportunities for improvement and implement change. This series of
efforts include simplifying processes, enhancing communication, teaching and encouraging
proactive problem solving, improving standard operating procedures, engaging all staff on
training, investing in management coaching and team building, and capitalizing on meaningful
technological enhancements. Whether in person or in the field, the Department is committed
to meeting customers where they are and delivering a consistent standard of service.
In addition to internally driven improvements, the Department has also undergone three
external audits by Baker Tilley to enhance processes in the areas of building permitting
operations (2022), Americans with Disabilities Act compliance (2024), and building permit fees
(2025). These independent assessments provide an objective perspective to help identify areas
of risk and reinforce the Department’s commitment to accountability in its processes.
A challenging labor market required the Department to strategically shift staffing models to
ensure continuity of services. High vacancy levels, up to 30% at its peak, and lack of a
consultant pool disrupted permitting operation and delayed application processing. Over the
last few years, the Department has prioritized workforce development to support operational
resilience. This strategy included assessing and adjusting staffing models to mitigate impacts
from the shift in the labor market and strengthening internal capacity through developing and
retaining experienced employees.
Staffing Models
Since 2021, PDS focused on three significant staff transitions:
building an in-house inspection program;
developing a hybrid staffing plan review program; and
enhancing positions and opportunities to improve customer service.
1
1When the Development Center Blueprint was established, the project coordinator series was envisioned to
provide individual project management by serving as a central point of contact and in-house advocate. While
projects are assigned based on complexity and the corresponding level of coordinator, workload demands, and
staff limitations have made it difficult to meet those expectations. Currently, the Department will be working on
evaluating the classification and structure of the series to explore potential adjustments to better support
consistent project management throughout the permitting process.
In conjunction with developing new staffing models, PDS also focused on developing internal
talent and reinforcing a culture of excellent customer service. In addition, the Department
hosted and required all staff to attend in person customer services trainings: ‘Staying Courteous
Under Pressure’ by Public Sector Excellence (2023) and ‘Customer Service Excellence’ by
Skillpath (2024). These efforts provide valuable training for staff and support long-term
retention while improving both internal and external customer service delivery.
Processes and Technology
Since 2022, PDS has continued to assess internal processes and apply technology solutions to
improve efficiency, accessibility, and clarity of the permitting experience from the applicant’s
perspective. These efforts are aligned with the Department’s commitment to streamline
approvals while improving service levels and maintaining code compliance. Process
improvements include simplifying application requirements, optimizing assignments, and
piloting new approaches to inform application intake and customer interactions. In parallel, the
Department has explored new and leveraged existing technologies to enhance system
functionality with a focus on simplifying the application process for customers. Some highlights
are noted below and Attachment A provides a detailed list of changes to support these efforts
in chronological order.
concluded that required appointments for these application types could be beneficial and this
information is currently be used to inform the next iteration of updates in the application
process. At this time, appointments are not required but in person and virtual appointments
are available at the Development Center with availability as soon as next day when the project
coordination team is fully staffed.
Feedback and Metrics
Recognizing the importance of customer feedback to better understand and improve the
permitting experience, PDS released customer surveys in Q4’2022. This initial effort mainly
consisted of staff reminding customers to participate as they interacted with each of the
various functions at the Development Center. As part of the outreach plan, staff also
coordinated an automated email to the permit applicant requesting feedback following a
completed inspection. However, this approach generated a significant number of complaints
from property owners, as the permit applicant is not always the contract who scheduled or
attended the inspection. Due to the volume of complaints, this practice was discontinued.
Adding the survey link to all staff email signatures
Promoting the survey throughout the Development Center, including posting QR codes
to the survey at each customer station
Sending automated survey emails to applicants when a building permit is processed to
collect feedback from the appropriate contact; initially, the survey was focused on
inspection services Printed survey (business) cards to collect feedback directly from the
field
Table 1: Planning and Development Services Consolidated Survey [1] – Overall Satisfaction
Rating
Overall Satisfaction 2022 [2]2023 2024 2025[3]
Total Survey Responses 154 40 322 447
Excellent 92%77%73%78%
Good 4%3%12%7%
Fair 1%5%4%4%
Poor 3%15%11%11%
Excellent + Good 96%80%85%85%
[1] Categories assessed include professionalism, technical knowledge, timeliness, efficiency, and overall satisfaction.
[2] Of the 154 survey responses received in Q4’2022, 88% was generated for the building inspection program
automated email in a one-month period.
[3] Data included up to December 19, 2025
Table 2: Development Center – Permitting Performance Metrics[1]
Performance Metric 2021 2022 2023 2024 2025[4]Improvement
(2024 vs 2022[3])
% of Permits Issued[2]96%94%95%93%77%N/A
Average Permit Approval Time (Days)68 80 68 60 35 -25%
Median Permit Approval Time (Days)25 30 22 21 15 -30%
Average Cycles of Review (Cycles)2.0 2.0 1.9 2.0 1.7 0%
Median Cycles of Review (Cycles)2 2 2 2 1 0%
Average First Response (Days)16.2 15.6 12.2 10.8 10.0 -31%
Median First Response (Days)13 14 8 7 5 -50%
[1] Since these are backward looking metrics, 2025 performance data will continue to rise as only 72% of permits
are issued. Therefore, 2024 is used as the most recent point of comparison.
[2] 100% of applications are not issued due to void, abandon, and in progress application statuses (lagging
indicator).
[3] 2022 was used as the base comparison because it was the year of peak vacancy rates before PDS was able to
implement planned improvements informed by 2021.
[4] Data included up to 12/19/2025
The Department has also prioritized expanding instant permits offerings to enhance the
customer experience. These permits allow customers to receive immediate approvals,
significantly reducing administrative requirements while maintaining consistent code
compliance. Currently, 13 types3 of instant permits are available. Staff are actively working to
develop more, but this type of permit development requires complex internal collaboration to
ensure all standards and code requirements are met. The most notable recent releases were
SolarAPP+ photovoltaic permits (2022), heat pump water heaters (2023), SolarAPP+
photovoltaic and battery storage permits (2023), simple kitchen and bath remodels (2024), heat
pump space conditioning systems for single-family/duplex/ADUs (2025), and heat pump space
conditioning systems for individual multi-family units (expected Q1’2026). With the release of
these permits, instant permit volume has increased by 122% from 2022 to 2025 (Table 3).
Table 3: Instant Permit Volume
Performance Metric 2021 2022 2023 2024 2025*Improvement
(2025 vs 2022)
Types of Instant Permits Available 8 10 11 11 13 +3
Number of Instant Permits Issued 515 494 847 865 1,099 122%
*Estimated figures based on data up to 12/19/2025
3 Current instant permit offerings include backflow, boiler replacement, furnace replacement, heat pump water
heater, heat pump space conditioning system, kitchen/bath remodels, gas leak repair, water piping system repair,
reroofing, SolarAPP+, SolarAPP+ revision, water heater (no tankless), and window replacement.
Upcoming Improvements
As the building permitting services continue to evolve, the Department continues to focus on
delivering an efficient and user-friendly permitting experience. Most recently in Q4’25, PDS:
Developed and released HVAC/heat pump space conditioning systems instant permits
for single-family/duplex/ADUs enabling licensed contractors to apply for and receive
permits instantaneously for qualifying projects.
Built and released PermitView, an in-house permit activity program to replace
BuildingEye and eliminate ongoing third-party subscription costs.
Published a Housing Tracker Dashboard to provide transparency on housing production
in the Palo Alto
Monitor AI technology and continued exploration in the plan review and permitting
space (ongoing).
Expand HVAC/heat pump space conditioning systems instant permits to individual
multi-family units (Q1’2026)
Upgrade the online permitting portal, Accela Citizen Access, with Accela’s new Public
Portal release that provides a more user-friendly and modern interface for the public
(2026)
Complete integration between GIS/Accela to facilitate automatic updates of owner
information and other spatial details when GIS database is updated (Q2’2026).
Complete a Request for Proposal for online permitting software, currently Accela
(Q4’2025 & Q1’2026).
o Develop a building permit wizard to guide applicants on what type of permit they
need – contingent on results of permitting software RFP (2026).
o Enhance the permitting public portal – contingent on result of permitting
software RFP (2026).
Assess the Project Coordination program and recommend adjustments to improve
staffing model (2026)
Implement new impact and in lieu fee model as a result of ongoing update to Impact
Fee Nexus Study to ensure long term sustainable city development and development
feasibility (2026)
Enhance older instant permit processes and expand instant permits to owner/builder,
currently only available to licensed contractors (2026)
Department Challenges and Areas of Focus
Planning and Development services has made substantial progress in improving the building
permit operations and improving customer service. Despite progress, staffing challenges
continue to remain due to ongoing attrition and retirements. In the fall, the building inspection
program was operating with a 33% vacancy rate, resulting in an average wait time of seven days
to schedule an inspection. All three vacant positions have been filled as of December, restoring
next day inspection availability. Being short staffed for the inspection program impacts
employees who generally take on more assignments during a shift, increasing the risk of
workplace injury and limits opportunities for regular training and professional growth
opportunities. As of January, the vacancy rate at the Development center is 9%.
In addition to the upcoming efforts, the Department is also reallocating capacity for the
Development Center Manager and Assistant Chief Building Official to take on a customer
support liaison function. In this role, they will assist applicants with complex projects to
navigate the permitting process, resolve roadblocks, and provide proactive problem solving.
PDS also anticipates working with the established internal Development Review committee to
refine submittal requirements and reduce the numbers of projects requiring interdepartmental
review. Together, these initiatives reflect the department’s commitment to a more efficient and
customer-oriented permitting experience.
Development Services Building Permit Process Audit Update
In 2022, Baker Tilly assessed the building permit process to identify highest impact areas for
improvement, document corresponding processes and evaluate their efficiency and
effectiveness, and benchmark operational performance against industry practices and
established standards. As a result of this assessment, Baker Tilly issued 17 actionable
recommendations.
In November 20235, Planning and Development Services provided an update to the Policy and
Services Committee on the status of those recommendations, reporting that nine of the 17 had
been completed. Of the remaining eight recommendations, four have since been completed or
are part of ongoing efforts with no defined end date related to technology and customer
accessibility of information. Three recommendations related to the development of internal
procedures, training, and quality control remain ongoing works in progress. One
recommendation has not yet been initiated, as the Department is prioritizing organizational
updates to service delivery before engaging an external consultant to develop a strategic plan.
FISCAL/RESOURCE IMPACT
This report is informational only and does not have a fiscal impact. The work associated with
these initiatives has been incorporated into the FY2021 to FY2026 Operating Budgets. If
5 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=52546
additional funding is needed, requests will be proposed and evaluated as part of the annual
budget development process and reflected in the FY2027 Proposed Operating Budget.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
Attachment A: Development Center Improvements
APPROVED BY:
1
0
2
2
2
Attachment A – Development Center Improvements (Q4’2022 to Current)
Area Improvement Impact
Technology
Completed a request for proposal for an
electronic document review program
(DigEPlan).
Supported digital plan reviews and live plan
mark ups with customers.
Process Assessed inspection assignment process and
updated to include assignments by geography.
Increased efficiency and maintained inspection
availability within 48 hours of request.
Technology
Redesigned PDS and online permitting website
and developed a user navigation guide for
Accela Citizen Access (permitting software).
Provided clarity on the permitting process and
additional resource to applicants.
Technology Implemented an appointment system and
integrated calendar.
Supported the ability to facilitate virtual and in
person meetings with interdepartmental staff
and customers.
Process Developed monitoring reports for late reviews.Improved interdepartmental coordination to
reduce late plan reviews.
Process
Complete a pilot program for intake
appointments to understand if required intake
meetings would reduce processing time.
Informed process improvements on
application intakes.
Process Published residential and non-residential
submittal checklist.
Provided applicants with clarity on all
submittal items needed to begin the review
process.
Process
Eliminated pre-application routing process and
reduced submittal checklists from 2-15 pages
to 1-2 simplified pages
Reduced requirements for applicants to submit
their application.
Technology
Released SolarAPP+ to all licensed contractors
to install qualified roof-mounted solar panels
and energy storage systems (up to 38.4 kW)
Provided applicants another option for
expedited permit issuance.
Technology
Developed and launched instant permits for
residential heat pump water heaters and
simple kitchen and bath remodels.
Expanded self-service options and reduce
application requirements for expedited permit
issuance.
Process Transitioned project coordinated assignments
to be based on permit types.
Deepened staff expertise, strengthened
relationships with repeat customers, improved
communication and processing efficiency.
Process
Implemented a requirement for staff to
contact applicants and offer to schedule an
appointment after the second review cycle.
Facilitated problem solving, improved
communication, and reduce review cycles.
Technology Participated in a pilot with BuildCheckAI
(automated submittal completeness checks).
Learned about new technology and
maintained readiness to explore and
implement new technology tools as they
become available.
Process Residential MEP pilot Reduced processing time for pilot participants.
Technology Integrated the building permit application into
the online pre-application process.
Reduced documents required from applicant
and duplication of processes.
Process Complete a department-wide cost of services
study and implemented updated fees.
Ensured fiscal sustainability and improved
accuracy of fees charged to customers.
Process
Established a hybrid and square footage-based
fee model and reprogrammed Accela to
support the fee structure.
Improved cost accuracy by project type.
1
0
2
2
2
Area Improvement Impact
Process
Granted over the counter planning approvals
for minor changes to existing building (s) or
site for qualified projects through an
administrative determination.
Reduced processing time and eliminated the
need for a 14-day appeal period.
Technology
Developed and launched an instant permit for
HVAC/heat pump space conditioning systems
for single family, duplex, and ADUs.
Expanded self-service options and reduce
application requirements for expedited permit
issuance.
Technology
Internally developed and released PermitView,
an in-house permit activity program to replace
BuildingEye
Eliminated third-party subscription costs and
provided a program to the public to view all
permitting activity throughout the City.
Technology Built and published a Housing Tracker
dashboard
Provided transparency on housing production
in Palo Alto.
Development Services Operations Update
Retail Committee
Presenters:
Jonathan Lait, Director
George Hoyt, Chief Building Official
Sarah McRee, Sr. Operations Manager
1/22/2026 Paloalto.gov
TITLE 40 FONT BOLD
Subtitle 32 font
•Purpose: To provide a status update of Development Services building permit operations
•Summarize outcomes from recent operational, staffing, and technology improvements
•Highlight measurable performance results and customer impacts
•Outline near-term priorities to continually improve efficiency and service delivery
•Staff Recommendation: Retail Committee receive the report and update
PURPOSE/RECOMMENDATION
PaloAlto.gov1/22/2026
OVERVIEW
PaloAlto.gov
Planning and Development Services (PDS) implemented multi-year improvements, beginning in
2019, to address legacy processes and pandemic-era disruptions.
•Digital permitting and related technology
•Staffing models enhancements
•Streamlined processes and procedures
Shift from a transactional permitting process to a customer-focused partnership through:
•Delivering consistent, informed services by building expertise across all permitting functions
•Engaging customers professionally through proactive, flexible, and responsive
communication
•Fostering a positive work environment by empowering staff with training, support, and
growth opportunities
1/22/2026
Restructured staffing models and invested in workforce capacity
to stabilize operations, improve retention, and enhance customer
service.
Outcomes
•Reduced reliance on consultant staffing model
•Restored next-day inspections and improved
responsiveness in all program areas
•Strengthened staff capabilities through focused training,
including customer service training
STAFFING
PaloAlto.gov
Key Highlights
Built fully in-house inspection program
Expanded in-house plan review staffing
Created/reclassified senior positions
Adjusted salaries for market competitiveness
Hosted mandatory customer service trainings
(2023–2024)
for complex projects
Added Principal Planner for complex projects and
project coordination
1/22/2026
Streamlined permitting processes, expanded digital and self-
service tools, and improved transparency to enhance the
customer experience.
Outcomes:
•Improved customer access through virtual and in-person
appointments and other communication channels
•Accelerated project approvals reduced submittal
requirements and expanding instant permits
•Improved consistency of permitting process and reduced
timelines
PROCESS & TECHNOLOGY
PaloAlto.gov
Key Highlights
Implemented fully digital permitting system
Simplified submittal checklists (2–15 → 1–
application requirements
Expanded instant permits
Redesigned PDS website and developed user
navigation guide
Piloted automated submittal completeness checks
(BuildCheckAI)
Introduced virtual and in-person appointment system
Conducted pilot programs to test new intake and
permit processes
Partnered with Economic Development staff to help
applicants
Established new communication channels
(PDSDirector@paloalto.gov)
Launched PermitView for real-time permit tracking
1/22/2026
CUSTOMER SATISFACTION
PaloAlto.gov
Significant increase
from 40 to 447
survey respondents.
Improved and
stabilized
satisfaction rating.
1/22/2026
PaloAlto.gov
PERMITTING PERFORMANCE
Reduced permit
approval times by
25%.
Reduced first
response time from
application
submittal by 31% .
1/22/2026
PaloAlto.gov
INSTANT PERMITS
Instant Permit Types Available
•Backflow
•Boiler replacement
•Furnace replacement
•Heat pump water heater
•Heat pump space
conditioning system
•Kitchen/bath remodels
Increased instant permit
activity by 122%
Added three instant permit
types in the last 3 years
•Gas leak repair
•Water piping system repair
•Reroofing
•SolarAPP+
•SolarAPP+ revision
•Water heater (no tankless)
•Window replacement
1/22/2026
PaloAlto.gov
NEXT STEPS
•Challenges
•Although Development Services is currently at 9% vacancy rate, any attrition of staff
impact processing and service delivery timelines.
•Focus Areas
•Upgrading technology, expanding instant permits, refining staffing models, and enhancing
customer service
•Upgrade online permitting portal to a new user-friendly interface
•Expand instant permits to owner/builder,
•Assess project coordination program and staffing model
•Key Takeaways
•Multi-year efforts have strengthened the permitting operations, resulting in faster
processing and improved service quality.
•PDS remains committed to supporting residents and business in delivering reliable and
quality permitting services.
1/22/2026