DATE: FEBRUARY 11, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
WITH: DAVID GONZALVES, ASSISTANT DIRECTOR
ANGELINE ANZINI, CHIEF BUILDING OFFICIAL
CRISTINA SIFUENTES, PERMIT ANALYST
TITLE: 2024 PERMIT CENTER ANNUAL REPORT
RECOMMENDED MOTION:
No action required. Receive report regarding the 2024 Permit Center Annual Report.
EXECUTIVE SUMMARY:
The 2024 Annual Report covers the past calendar year and consists of this staff report, the attached 2024 Permit Center Annual Report Dashboard, and the 2024 Permit Center Key Actions Taken, and 2023/24 Organizational Assessment Findings, Recommendations, and Actions. The staff report discusses the ongoing implementation of the 2023 Community Development Organizational Assessment Key Actions, analyzes performance measure data, and highlights current and future development projects. The Dashboard presents the performance measure data visually and shows year over year (2022-2024) comparisons for Permit Services and other Community Development divisions and City departments (Current Planning, Code Enforcement, Development Engineering, Fire and Small Business Support), which are integral to Permit Center activities and processes. The 2024 Key Actions Taken and 2023/24 Organizational Assessment Findings, Recommendations, and Actions attachments present the changes made to improve staffing, workflow, communication, and training in more detail.
BACKGROUND:
2024 Permit Center Activity
During the past year, the Permit Center continued to see an increase in workload across most areas of service. Transactions at the front counter increased by 12%, phone calls rose by 10%, the number of permits applied for grew by 30%, plan reviews increased by 4%, and inspections went up 23%. Residential permits made up 80% of total permits applied for and 78% of all inspections. Applications and permits for Accessory Dwelling Units (ADUs) continued to increase and accounted for 39% of all inspections. Additionally, there has been a notable rise in the complexity of the projects being processed, including submittals for a large distribution warehouse, medical office building, city facility projects funded by the American Rescue Plan Act (ARPA), and commercial mercantile tenant spaces. To manage these increases and maintain high customer service levels, a primary focus in 2024 was increasing staffing resources, improved workflow and data monitoring, and communication and training. 2023 Organizational Assessment Implementation – Key Actions in 2024 In May 2023, the Permit Center’s organizational structure, policies, and workflow between divisions and departments was revisited with a focus on increasing productivity and improving customer service at the Permit Center. A summary of 2024 Key Actions is provided below and is described in more detail in Attachments 3 and 4. Actions centered around the continued development and implementation of an Action Plan to address Assessment findings and recommendations to increase staffing, formalize workflow, and improve communication.
Staffing: Filling vacancies and adding staffing resources was a priority in 2024. Two full-time and two part-time temporary Permit Clerks and a Permit Analyst were added and filled to support customer service and simple permit processing. In addition, two Building Combo I Inspector vacancies were filled. Currently, Permit Services has four key vacancies: a Management Analyst, two plan review positions, and a Building Combo I inspector. Recruitment for the two plan review positions has been unsuccessful, and these positions have been vacant for the past 18 months. Identified barriers include competition with private sector firms that offer higher compensation and the option of remote work. Staff has worked collaboratively with Human Resources on multiple recruitments for these positions, thinking creatively about required certifications, compensation, and alternatives such as filling the positions at a lower level with a commitment to train up to the desired level. In the interim, to manage the increasing volume of applications and plan review, five (5) plan review consultants were contracted. The total not to exceed contract amount for all five consultant is $3,750,000. Filling plan review vacancies will continue to be top priority in 2025 for workflow and cost efficiency.
In June and September of 2024, MRG returned to perform an assessment of Current Planning division. The Assessment found that the division needed additional staff with technical expertise to process the more complex applications received and projected. It was recommended that the division needed 1 full-time and 1 part-time Senior Planner. Council approved the workforce modification in December 2024, and recruitment is in process.
Workflow: Permit Center functions cross multiple departments and divisions. A proposed project may begin with an entitlement application that requires either discretionary or administrative approval and California Environmental Quality Act (CEQA) compliance. The focus of Planning, Housing, Development Engineering and Fire review at this stage is on compliance with the General Plan, Zoning Code, and other regulations at the site plan level. A discretionary project requiring the preparation of CEQA documents may take 6 to 12 months to obtain discretionary permits before moving to the building permit phase, which depending on the complexity of the construction, could take an additional 6 to 12 months including the design professional’s time. If there are delays during the entitlement process, this frustration can carry over into the building permit process, regardless of review time and number of rounds of comments. Although consultants have been utilized to help with the plan review workload, turnaround times have been forced to align with a slower industry standard. As a result of the plan review staff vacancies and use of outside professional services, the percentage of on-time plan reviews dropped from 72% to 61% in 2024. To address this decline in service, staff have worked closely with Human Resources to undertake multiple recruitments to fill the two plan review vacancies and to make the workflow modifications described below. The Comprehensive Zoning Code Update the City will undertake in 2025, also provides an opportunity to streamline regulations, standards, and process, all of which expedite permit processing. More detail regarding the Zoning Code Update is provided below.
Workflow: In 2024, staff continued to establish and refine policies, procedures, and checklists to track processing review times. This included shifting job duties between Permit Clerks and Technicians to create more efficient workflow and data collection, analysis, and response. While data shows that approximately 80% of plans are approved by the 3rd review, the number of rounds of review of the remaining 20% ranges from 4 to 9 before receiving approval. With target goal of all applications being approved within 3 reviews, , Permit Center divisions and departments (Building, Planning, Engineering, Fire and Code Enforcement) weekly review a list of permit applications on their 4th review cycle or higher (“Hotlist”). Staff work as a team to remove barriers and to find ways to help applicants identify a path forward to obtain a permit compliant with regulations. Meetings are scheduled with applicants entering a 4th review to streamline communication and establish options for moving forward. Staff also continues to update Permit Center software systems such as Trakit and the Paperless Permit Portal, while seeking out and researching other new technology to improve efficiency.
Communication and Training: Based on the 2023 Assessment, an Assistant Community Development Director was hired in January 2024. This position filled the identified void in leadership. The Assistant Community Development Director has been instrumental in facilitating both internal and external communication to clarify roles and responsibilities, streamline workflow, and facilitate resolution when applications hit a barrier in the process. This includes facilitating communication between departments and divisions to address workflow or specific application barriers at weekly Permit Center Coordination meetings, working with staff to identify pathways forward prior to meeting with the applicant to ensure staff are speaking with one voice, and updating checklists and workflow assignments between Permit Clerks and Permit Technicians. On the First Friday morning of the month, the Community Development Department conducts training and teambuilding activities. Department wide training topics in 2024 included customer service/communication, Finance Department policies, and insurance requirements for contracting. In 2024, Permit Services staff earned 13 certifications, boosting their technical skills. 2024 Major Projects
In 2024, construction valuation of submitted applications was just over $565.3 Million, up over 500% from 2023. Fees collected increased nearly 300% year over year ($1.38M to $4M). This dramatic increase in valuation and fees collected is tied primarily to the major projects listed in Table 3 below.
Table 3: Highlighted 2024 Major Projects
Project Name
Address
Status
36-unit 100% Affordable Senior Housing Project
98 Kip Dr. Salinas, CA 93906
Planning Entitlement Approved
14 lot subdivision at John and Abbott Street
John St. and Abbott St. Salinas, CA 93901
Planning Entitlement Approved
437 lot Tentative Subdivision Map in Central Area Specific Plan Central Area Salinas, CA 93901
Planning Entitlement Approved
Kaiser Permanente Medical Offices
1930 N. Davis Rd. Salinas, CA 93907
Building Permit Finaled
3.5 million sq. ft. Amazon Fulfillment Center
200 Harris Rd. Salinas, CA 93908
Building Permits issued and under review.
Closter Park Improvements
401 Towt St. Salinas, CA93905
Building Permit Issued
Hebbron Family Center
683 Fremont St. Salinas, CA 93905
Building Permit Issued
Raising Cane’s Restaurant
Northridge Mall Salinas, CA 93906
Building Permit Approved
Palma High School, Gym Remodel and New Athletic Field House 919 Iverson St. Salinas, CA 93901
Building Permit Issued
2025 Key Action Plan
Staffing: At the end of 2023, litigation was resolved for both the West and Central Areas and their Environmental Impact Reports. Applications for parcel and tentative maps have been submitted and are expected to increase in 2025. The West and Central Areas of the Future Growth Area (FGA) will construct between 6,827 and 8,251 residential units and 1,061,200 square feet of commercial space. The permitting work for these FGA areas will likely more than quadruple the average number of building permits processed by the Permit Center in a single year. In 2025 additional Administrative, Plan Review and Inspection staffing and/or consultant support will be needed by all Permit Center divisions to keep pace with the increased workload and meet customer expectations.
Workflow: Residential permits make up approximately 80% of total permits applied for and 78% of all inspections. To continue to improve workflow in 2025, staff will work towards creating specialized residential teams to improve delivery of residential projects. In addition, staff will also endeavor to establish over the counter plan check days for limited permit review and issuance. Implementation of both these activities will require that the two currently vacant plan check positions are filled.
Zoning Code Update: The City of Salinas is embarking on a comprehensive update to its Zoning Code (ZCU), which has the potential to significantly shape the city’s growth and the operations of the Community Development Department (CDD). The primary goal of the ZCU is to create a user-friendly, clear, and concise Zoning Code that will simplify the entitlement process for all stakeholders through objective development and design standards. This is an opportunity to improve how entitlement applications are processed, providing greater clarity regarding project requirements. The current Zoning Code is often complex and difficult for both staff and applicants to navigate. Streamlining the Zoning Code will establish more straightforward pathways for project approvals, potentially accelerating timelines for hearings and determinations, and enhancing the overall experience for those seeking to develop in Salinas. Community stakeholders including professionals, designers, contractors, business associations, business and property owners, and residents will be actively engaged in the ZCU process.
Legislative Compliance: The City will adopt the new 2025 California Building Standards this year which will go into effect January 1, 2026. In addition, the state legislature continues to create large quantities of new laws which impact development, construction, and permitting requirements. Many of these laws require the creation of new processes, the development and purchase of technology, and education of the public, in addition to the regular triennial California Building Standards. The City will need to become compliant with the following laws that impact permit processing.
AB 42 Tiny homes: temporary sleeping cabins: fire sprinkler requirements AB1046 Alquist-Priolo Earthquake Fault Zoning Act: exemptions AB 1132 Solar energy systems: permit fees.
AB 1332 Accessory dwelling units: preapproved plans
AB 1738 Building standards: installation of electric vehicle charging stations: existing buildings.
AB 2234 Planning and zoning: housing: post-entitlement phase permits AB 970 Planning and zoning: electric vehicle charging stations: permit application: approval.
SB 379 Residential solar energy systems: permitting.
SB 897 Accessory dwelling units: junior accessory dwelling units SB 1194 Public restrooms: building standards.
Community Development is committed to enhancing productivity and reducing permit processing timelines for our residents. The attached 2024 Dashboard and PowerPoint presentation provide a detailed overview of the data analyzed by staff to understand and improve our work processes. The highlighted data sets illustrate key areas of impact, showcasing the positive outcomes of changes implemented in 2023 and 2024. The Permit Center team remains dedicated to continuous evaluation and improvement, with a strong focus on delivering exceptional customer service. Staff invites the City Council to review and provide feedback on the information provided to further Permit Center improvements and advancements to serve the community efficiently and effectively.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that this administrative report is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
Permit Center operations support City Council 2022-2025 Goals and Strategies of Economic Development and Housing/Affordable Housing through the entitlement and permitting of commercial and residential uses that generate jobs, revenue, and a variety of housing types for the community. Continuous focus on workflow improvements and the use of technology for electronic application submission, review, and permit issuance furthers the Council’s goal of Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
Permit Center operations span multiple Community Development divisions and City departments including Permit Services, Current Planning, Code Enforcement, Economic Development (Small Business Support), Housing and Community Development and Public Works, Fire, and Finance Departments. Effective coordination of all Permit Center functions is vital to streamline permitting processes to provide quality customer service and economic growth through development.
FISCAL AND SUSTAINABILITY IMPACT:
There is no fiscal impact associated with this administrative report. The Permit Services Division is an Enterprise Fund (6900). Fees for service and surcharges are collected to cover cost of operations.
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Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution)
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ATTACHMENTS:
Attachment 1: 2024 Permit Center Annual Report Dashboard Attachment 2: 2024 Permit Center Key Actions Taken
Attachment 3: 2023/24 Organizational Assessment Findings, Recommendations, and Actions Attachment 4: 2024 Permit Center Annual Report PowerPoint Presentation Page | 3
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