City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00714 4/8/2025 Item 12.
Streamline Sacramento - An Update on the City’s Development Process Improvements Program
File ID: 2025-00714
Location: Citywide
Recommendation: Review, discuss and provide direction to staff on Streamline Sacramento - the City’s Development Process Improvements Program.
Contact: Matt Hertel, AICP, Assistant Director, (916) 808-7158, [email protected]; Mandy Holm, Program Specialist, (916) 808-8112, [email protected]; Community Development Department
Presenter: Matt Hertel, AICP, Assistant Director, (916) 808-7158, [email protected], Community Development Department
Attachments:
1-Description/Analysis
2-Streamline Sacramento 1-Page Overview
3-Streamline Sacramento Potential Actions Table
Description/Analysis
Issue Detail: Streamline Sacramento is a 2025 initiative spearheaded by Mayor McCarty and Councilmember Pluckebaum to identify improvements to the City’s development approval process with the overarching goal of increasing the supply and decreasing the cost of housing. Streamline Sacramento (Attachment 2) is a customer-driven, cross-departmental effort focusing on all aspects of the building permit process from submittal of building permit applications, to plan review, inspections, issuance of building permit and certificate of occupancy. The Potential Actions Table (Attachment 3) reflects the input received to date from the development community. These actions focus on ways to improve consistency, timeliness and to make the development experience as efficient and certain as possible.
City staff will provide an update on Streamline Sacramento, highlight notable development process improvement actions that are underway, and receive input from Council.
File ID: 2025-00714 4/8/2025 Item 12.
Policy Considerations: Streamline Sacramento aligns with the Mayor’s and City Council’s priority to streamline development and increase housing opportunities. Streamline Sacramento furthers the Council-adopted 8-year housing strategy (2021-2029 Housing Element) policy:
H-1.3 Reduce Time and Expense of Building Permit Process. The City shall continually strive to streamline and simplify the building permit process using best practices from other cities to improve aspects of the process, including coordination with departments, consistency, and timeliness, to make the development experience as efficient and certain as possible.
Economic Impacts: Construction of housing and other development is vital for the local economy by creating construction and professional sector jobs and adding to the local tax base.
Environmental Considerations: This informational update is an administrative activity and is not a project under the California Environmental Quality Act (CEQA), per Guidelines Section 15378(b)(5).
Sustainability: A sustainable community includes housing for current and future households of all income levels.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Although around 3,000 new housing units are constructed each year, additional housing needs to be built to meet the demand. The City of Sacramento has a Regional Housing Needs Allocation (RHNA) target from the State to construct approximately 5,700 new housing units each year. Streamline Sacramento is a cross-departmental effort to identify and implement internal processes that speed up approval times and reduce the cost of housing construction.
Financial Considerations: None.
Local Business Enterprise (LBE): Not applicable.
The City of Sacramento’s development process improvements program, Streamline Sacramento, is a citywide effort that is closely examining the procedures for reviewing and approving housing projects.
Aims to speed-up the approval and construction process with the goal of increasing the amount of housing while bringing down the cost of construction.
Streamline Sacramento focuses on all aspects of the building permit process from submittal of building permit applications, to plan review, inspections, issuance of building permit and certificate of occupancy.
WHY?
WHAT?
Although around 3,000 new housing units are constructed each year, additional housing needs to be built to meet the demand.
Construction of housing and other development is also vital for the local economy by creating construction and professional sector jobs and adding to the local tax base.
As the State of California’s first Prohousing Designated jurisdiction, the City of Sacramento is committed to identifying ways to improve consistency, timeliness and to make the development experience as efficient and certain as possible.
Streamline Sacramento furthers City Council adopted housing strategy’s (2021-2029 Housing Element) Policy H-1.3 (Reduce Time and Expense of Building Permit Process).
WHEN?
Streamline Sacramento is anticipated to conclude by the end of 2025.
HOW?
Meetings are being held with the development community and the City is actively seeking input to make modifications to the development process based on their experience of building housing in Sacramento.
City staff are reviewing best practices from other jurisdictions, evaluating new technologies, and working together to identify process improvements that will deliver housing projects faster and at a lower cost.
Certain process improvements will be in a short time frame such as revising procedures or procuring new technology, and some may take longer such as changes to City Code.
STAFF CONTACT?
Matt Hertel, AICP, Assistant Director of the Community Development Department, [email protected], 916-808-7158 February 2025
Streamline Sacramento (Potential Actions) Revised 03-28-2025 Page 1 of 5 Streamline Sacramento – The City’s Development Process Improvements Program Potential Actions Table (March 2025)
City of Sacramento
Overview: Streamline Sacramento is a 2025 initiative spearheaded by Mayor McCarty and Councilmember Pluckebaum to identify improvements to the City’s development approval process with the overarching goal of increasing the supply and decreasing the cost of housing. Streamline Sacramento is a customer - driven, cross-departmental effort (Community Development (CDD), Public Works (PW), Utilities (DOU), Fire, and Finance) focusing on all aspects of the building permit process from submittal of building permit applications, to plan review, inspections, issuance of building permit and certificate of occupancy. This Potential Actions Table reflects the input received to date from the development community. These actions focus on ways to improve consistency, timeliness and to make the development experience as efficient and certain as possible.
This table is intended to be a working document that will be updated regularly to prioritize actions, identify leads, and track progress.
Status Legend: Exploring; Implementing; Instituted; Ongoing.
Process & Potential Action Lead Status Potential Action Summary Customer Service
Small Business Liaison CDD/Building Ongoing In Fall 2024, established building permit liaison for new restaurants and Downtown Partnership’s Calling All Dreamers Program. May expand program in future.
Development Projects with a valuation of $1 million or more are already assigned a Development Project Manager.
Minor Alterations & Improvements
Processes
CDD/Building Ongoing Review the City’s current Electronic Over-the-Counter (E-OTC), Facility Permit Program (FPP) and online minor permit programs for opportunities to improve or expand services.
Customer Service Satisfaction Surveys CDD/Building Ongoing Continue to administer and incorporate feedback from Building Division Customer Satisfaction Surveys for counter services, inspections, plan review and project management.
Staff Contact Information &
Responsiveness
All
Development-
Related
Departments
Instituted
(March 2025)
Staff communicating with the development community should have phone and email address in signature block of each email and be available by phone.
Additionally, all correction notices list the phone and email address of the plan reviewer in the letterhead.
Application Forms CDD/Building Ongoing &
Exploring
Consolidate and simplify applications and forms and remove duplicative fields. The Building Division constantly updates and revises forms strategically so as not to disrupt normal business operations. In conjunction with Streamline Sacramento efforts and the upcoming triennial code update to the 2025 California Building Standards Codes, the Building Division will aim to consolidate and make it easier for customers to identify the appropriate forms/applications.
Streamline Sacramento (Potential Actions) Revised 03-28-2025 Page 2 of 5 Process & Potential Action Lead Status Potential Action Summary Information Bulletins & Reference
Materials
CDD/Building Implementing
& Ongoing
Consider instituting Information Bulletins that are published on the City’s webpage to update the development community on the latest building codes, construction practices, safety standards and regulatory changes. As an example, see City of San Diego’s webpage and sample bulletin. Consider creating step-by-step flow charts of the building permit process for housing projects. The City currently has informational guides and forms that are updated every triennial code cycle. The Building Division will reformat and reorganize these documents to make them easier to locate.
300 Richards Blvd. Public Counter
Operation
Multiple
Departments
Exploring Current public counter hours of operation: Tues-Thurs, 9am-3:30pm; cashier services also available by appointment Mondays and Fridays. A review of customer trends and appointment utilization indicated that only 8% of customers use the public counter and appointments are readily available. Potential changes include allowing additional walk-in customers without appointments and notifying customers of this option.
Increased Coordination and
Communication between City
Departments and Agencies (e.g., utility
providers, sanitation district)
CDD/Building
& Multiple
Departments
Exploring Explore options for the Building Division’s Project Management Section to facilitate enhanced coordination and communication processes throughout lifecycle of development process between departments and agencies.
Fill & Retain Development Related
Vacant Positions
Multiple
Departments
Ongoing Identify barriers and develop solutions for development related vacancies. As an example, CDD’s Building Division has a vacancy rate of 23% and Public Works’ Engineering Services Division has a 29% vacancy rate.
Plan Review for Building Permit
Avoidance of Plan Review Comments
After Cycle 1
CDD/Building Instituted
(January
2025)
Where feasible and not life safety issues, strive to avoid additional plan review comments that were not made during Cycle 1 (unless project is revised between cycles).
In-Field Revisions & Corrections CDD/Building Instituted (January
2025)
Allow in-field revisions or corrections in certain circumstances instead of requiring a full plan revision.
Request for Information (RFI) Process CDD/Building Instituted (January
2025)
Revisited RFI procedures and instituted the ability to proceed with inspections for minor RFI clarifications.
Proactively Monitor Project Applications
& Implement Triage Plans
CDD/Building Implementing Run monthly report of development projects in cycle wait (not active in plan review). Work with applicants to resolve challenges for projects that appear stalled.
Plan Review staff currently offers meetings (by email and phone) after cycle 2 review to help resolve outstanding correction items in an effort to avoid additional cycles of review.
Streamline Sacramento (Potential Actions) Revised 03-28-2025 Page 3 of 5 Process & Potential Action Lead Status Potential Action Summary Meet or Exceed Plan Review Timelines CDD, PW
(Development
Engineering,
Transportation
& Urban
Forestry) Fire,
DOU
Ongoing &
Exploring
Cycle Times for Plan Review have been established based on valuation and cycle #. P lan review staff is on- time or early 98.6% of the time. The department’s target is 90%.
− Consider creating guidance documents for consistency & training of plan review staff.
− Consider training staff as back-up reviewers or establishing on-call plan reviewers list for all disciplines to address capacity/vacancies/absences.
Implement Cycle Review Times for Lot
Mergers/Adjustments and Parcel Maps
PW/
Development
Engineering
Exploring Explore overhauling and modernizing the PW, Development Engineering module and workflows in the City’s development software management system (Accela) and PW customer portal, for the ability to create workflows, automated due dates, automatic email applications status emails, etc., for lot merger/adjustments, parcel maps, final maps, substantial conformance review, easements, etc. To accomplish this potential action, it is anticipated that two new FTE positions will be required.
Best Practices & Procedures for Plan
Review & Reducing Number of Plan
Review Cycles
CDD/Building Exploring Identify the most common reasons for additional Plan Review Cycles for multi-unit dwelling projects. Establish customer education strategies and new procedures, as necessary. See also “Information Bulletins & Reference Materials.” The Building Division currently offers free presubmittal meetings to answer project specific questions. Potentially consider enhancements. As an example, th e City of San Diego has a Preliminary Review — a flat fee-based service offered before formal submittal, which assists in determining project feasibility by obtaining responses to project-specific questions and documenting staff responses.
AI-Powered Automation for Building
Code Compliance in Electronic Plan
Submission
CDD/Building Exploring Explore AI tools such as www.archistar.ai/ to potentially reduce plan review cycles and ensure applicants submit complete application packages.
Self-Certification Program CDD/Building Exploring Explore implementing a self-certification program which allows registered professionals to bypass the plan review process by taking responsibility for and certifying a project's compliance with building code, standards and ordinances . The City currently allows self-certification of contractors for minor permits (e.g. hot water heaters, HVAC).
Financing
Deferral and Reduction of Development
Impact Fees
CDD/Building Ongoing &
Exploring
Citywide Impact Fee Reform adopted by Council in 2017 standardized impact fees, reduced certain impact fees (Transportation and Parks) and established the Fee Deferral Program.
Fee Deferral Program allows developers to wait to pay impact fees until final inspections from the Building Division. Established in 2018, a $0 rate i s applied to affordable dwelling units for City -controlled impact fees.
Explore options such as info sheets and early notifications to customers about available programs for deferring or reducing fees.
Streamline Sacramento (Potential Actions) Revised 03-28-2025 Page 4 of 5 Process & Potential Action Lead Status Potential Action Summary Community Facilities District (CFD) Infrastructure
Finance/PW/
DOU
Exploring Consider revisions to CFD reimbursement/public bidding process/funding agreement language to be able to start bidding process before plans are signed.
Developers have noted that the current public bidding process can delay ability to order materials. Materials can take 12-16 weeks. Can obtain signed/final plans but can’t break ground for another 4-6 months.
Flat Fees for PW, Offsite Plans PW Exploring Soliciting feedback from developers about going to a flat fee which would allow developers to better plan project finances versus the current cost recovery system.
As an interim step, staff are considering modifications to the current deposit amount for FY25/26 Fee & Charge Report that would go into effect July 1, 2025.
Bond Opportunities for Land
Development (BOLD) Program
Infrastructure
Finance
Implementing Request authorization from City Council to participate in the BOLD Program offered by the California Municipal Finance Authority (CMFA) which can be used to finance public infrastructure required for new development within the City. This would allow greater flexibility for the development community in the City and lessen the administrative burden on City staff.
Building & Offsite Inspections
Virtual Inspections CDD/Building Implementing Entering into contract for virtual inspection software for remote inspections.
Onsite & Offsite Inspections CDD/Building/
DOU/PW
Implementing CDD, PW, and DOU will consolidate the same mapping/improvement process for private street small lot Single-Family Housing (SFH) subdivision vs. standard public street SFH subdivision. This will simplify the process for developers who work on infill lot developments and is supporting the Missing Middle Housing (MMH) Interim Ordinance.
Building Inspection Process Efficiencies CDD/Building Instituted (March 2025)
& Exploring
Consider procedures for increasing inspection efficiency such as : 1) (Instituted) conducting entire inspection in one visit, if feasible, instead of multiple 15- minute visits. Especially important for final inspections for multi-unit housing projects; 2) (Instituted & Exploring) Inspectors currently call 30 minutes of arrival. Evaluate whether inspection schedule blocks (e.g., 4 schedule window) would be beneficial and feasible; 3) (Exploring) Consider instituting procedure for when inspector arrives, conduct inspection for items that are ready, instead of delaying in order to perform multiple inspections together. 4) (Instituted) Consider using third- party inspectors, as needed, to keep projects on track.
Inspections & Approved Building Plans CDD/Building Exploring Review process for ensuring project in the field matches plans approved during plan review process.
Issuance of Inspection Results CDD/Building Exploring Consider policy for building inspectors to upload inspection results to both the portal and through email to contractor and developer.
Building Inspection Certificate Trainings
& California Building Standards Code,
Consistent Interpretation
CDD/Building Exploring Explore contracting out the International Code Council certificate training programs and exam preparation (e.g., plumbing, electrical) instead of conducting them in- house to expedite completion of trainings and exams and free-up more senior staff to be in the field.
Building Permit Issuance
Safe to Stock CDD/Building Implementing Safe to Stock (for furniture/equipment installation & staff training) procedures being developed.
Streamline Sacramento (Potential Actions) Revised 03-28-2025 Page 5 of 5 Process & Potential Action Lead Status Potential Action Summary Instant Building Permit Issuance CDD/Building Exploring Consider updating the Building Division’s minor permit process and develop a building permit check box form that an applicant self-certifies and instantly receives building permit for minor permits (e.g., hot water heater and residential PV solar with SolarAPP+). Compliance with code is verified through virtual or in-person inspection.
Demolition/Wrecking Permit CDD/Building
& Multiple
Departments
Exploring Building Division’s Project Management Section exploring expediting demolition/wrecking application approvals required by multiple departments by instituting an automated electronic signature process.