10/7/25 Item #5
City Council
October 7, 2025
Item #5 RTC 25-1096
Audit of the City's Building
Permitting Process
1852
THE MISSION CITY
Afshan Hamid
Community Development Director
1 City of
Santa Clara
The Center al wists Poemitle
Primary Objective
1. Assess whether internal controls in the permitting process are effectively designed and implemented to ensure compliance with City Code and relevant regulations.
2. Evaluate whether the permit process is efficient and responsive, with mechanisms in place to ensure timely customer service.
3. Determine if billing and collections of permit fees and fines are properly managed to uphold financial accountability
2 POST MEETING MATERIAL.
1 10/7/25 Item #5
City of
Santa Clara
Then Criter of Whar's Prosibile
Overview: Permit Review Partners
• CDD: Planning, Building, Housing & Community Services & Technology Group
• Fire Department (Community Risk Reduction Division)
• Public Works (Traffic Division, Stormwater, Solid Waste) • Silicon Valley Power
• Water & Sewer
- Environmental FOG
• Parks & Recreation
• Santa Clara Unified School District
• Santa Clara County Environmental Health
3 City of
Santa Clara
Tint Center of Whats Possible
• Staff collaborated transparently-documentation, identifying Audit Response gaps, contributing to frontline insights &
Commitment
• Improvements in department have progressed
4 4
2 10/7/25 Item #5
City of
Santa Clara
The Center of Whars Possible
Audit Findings
1. Develop Policy and Procedures Manual
2. Timeliness of Permitting Process
3. Permit Fees Reviewed for Consistency
4. Performance Monitoring and Process
Improvement
5 Building Division Progress Overtime & Findings City of Santa Clara
Ther Center of tlock Porsitile
2021 2022 2023 2024 2025
Accela Civic Platform Permitting Conduct Outreach Plan Check Dashboard Standing Hours • Acive Review Task/Norkflcwi • Excane presence of all C:y • Launched Augus: 2021 • Rece vec grant :o malinge inrds eweeks y • Shows sctive rave-w tas-s for ail Cegartmerts Nith.e Jermit
malement Sciardpo- first gian riew Supseguens
• All deveropment "eview Center
reviews are at 50% oftirelines • !finding 2: • ffisding 21 workflows are
streamiined and in the finding 2i Website Improvements
• Idooted the first santa Simple Permits Reporting &
syste.r C'ara Reach Code Monitoring
• :aQ/info = owe' ar:, What to
r uan" shrezo. ponojom• •viontnis :egorss since.u.y 2024 Expe:
dnapk'y Zonare nf ai crakenoiders 1
• {finding 11
Staffing • Duar the Counter
• Hinding 21 Small Businesses
•nitia. ntemnai staffirg Internal Coordination Pre-Approved ADU • argereo into assessment ior Admir • Mapww tommi oh anina Program
Dermit Tecns arg P'an • ac ai Bulding, Bermir ires Submittal Handouts for Major Pipeline Projects Reviewers • tindine ?il
various projects
• Dodicaton inhauce sraid
Solar App+ *DUs, Single-femiiv. Supres, indi: 3 2
V itr-tamriy, Vixec-use
umate dt neces vt Suides or appiicable codes,
ocuanne ocal ord.rances and
inetaat sarmitd 6
scautnng
• finding 2: !fenoing 21
6 3
10/7/25 Item #5
Building Division Progress Roadmap City of
Santa Clara
The Cester of Whats Possible
2025/26 26/27 Multi-year
Plan Review Timelines Future Workplan Accela Portal (POP) • Coordinating with internal • ntegrate germit svstem • Integration and Access stakeholders NItr. GiS ard Sola APP • GWIZ
• All devercoment review
workflows are
streamlined Dedicated One Stop Shop
• Plan Review Timelines
have been reduced 20%
Comprehensive Policies
& Procedures
• Cetailed for ail
workgroups
• 80% complete
• Com-letion Nov 2025
Staffing
7 7
City of
Santa Clara
| • Comprehensive formal policies and procedures-FY 2025- Strategic Goals
• Actively monitor permitting process w/metrics -FY 2025- 2028
• Adequate testing of fee calculations-FY 2025-2026
• Customer feedback-2025-2027
• Dedicated One Stop Shop-2025-2028
8 8
4 10/7/25 Item #5
Technology & Innovation Group Progress & Findings 1 & 2 City of Santa Clara
The Center of What's Possible
2018 2021 2022 2023 2024
Purchased Launched in August! Customer survey Research and planning Procurement • Customers can suomit serm: • Rece ven several aradls: -unD) • econ Swi gradue: and d accela suic darior-
rom multidie endors and design services or acrai airasa terming system! aas: catiens anine receiveg niemai fegabac-irem → Improve the dermattin? SolarAPP+ Revisions
seDat mene
HOSte •anced automates "aui5 ens
201 517 aane se documente Simple Permits process ter Selargad- per mits Lanched arec udrg Accela Knowledge Base
• uplo: Seiutens secanice ot crevng tebarments-n
• auno ac ine decela (now edge
listen. strear/nez residentiel erciests Bate vin 50- seif te o anticies sortiow ei" adeos and sc-eensnoss
SolarAPP+ Qmatic
• launced a gra eg oscen:3)
soar & energy storage syr-miss
2a Canter
Zoning Clearance
•550:00:e0: 120 :27s • Issue 20e 111 o'rs •5 eta0<e 670e-s trea e1-101 toms den: fed Jenaried gen: led
ceni/ e5
9 Technology & Innovation Group 3 year Roadmap City of
conta Clara
2025 2026 2027 2028
Phase 1 - Improve POP Phase 2 - Improve POP Call Center SaaS Planning for EPS 300 :03 0 anan(a1
• Represned Permitting • Migrate to tra new
Crime Portal excected Accela OMS tor anine cell temeer scitware 1 e enterpr se permicang sis:o-
ate-Summer 2025 acolcat ors.
• aunon gunder, Al-Driven Solutions RFI Al Pilot Projects Expanded Al Projects interactie commit-tres
for customers • Aravze marke: arferings Deveino pilos proled • mclemen: accionar d and insignis 0 a 20 2a 2=
• Digital see carment an weeste
Inspections Tech RFP Inspections re-Application Perm 5-Year Technology iscovery Toc Roadmap
• Pralerr manatemen: • Roliour new spections
sLOcOr: REP nscectiers tech and streamine Simciting bert • Develog a :30 roadmao technology RFP •ra acs "Lirements or acolica tor seconelog/ Research Al use cases Call Center SaaS RFP
• internai discussions and Centralized Knowledge
• Ai-cowered cali center
co iot Derm Center Management Platform
Contract Renewal 311 & Accela Integration
• implement a unires nub ict
• integrate Mi,SantaClara gracess accumentat cr.
RTC
with permitting system
•saul sakar tas
10 ntt wr sale
10 5
10/7/25 Item #5
I santaclarakagor
3 Google
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City of
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SERVICES OUR CITY RECREATION & COMMUNITY BUSINESS & DEVELOPMENT WANTIO.
Cominiunty Development
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+ Suilding Permi Information Information Bulletins and Forms • Plan Review
Pre-Approved ADU Plains
Welcome to our library of permitting resources for building, inspections, permit processes, and energy and + Inspuctions code requirements. Find the forms, handouts, checklists and certificates of compilance that you need.
Information Buffetins and Forms
PERMIT FORMS AND RESOURCES
Reach Code
ACCESSORY DWELLING UNITS (ADU)
Permas Issued Report
RESIDENTIAL BUILDING AND INSPECTION GUIDELINES
Housing & Conenunty Services
Divisions NON-RESIDENTIAL AND MULTI-FAMILY BUILDING AND INSPECTION GUIDELINES * Planning Division ENERGY / CALGREEN / REACH CODES
+ Code Enlorcemert Last ladend
•006-2025
13 12
6 10/7/25 Item #5
BUILDING DIVISION
city of
Santa Ciasa IS NOW OFFERING..
sunCEs OUR CITt WUSINESE & DEVELOPWENT.
EXPEDITED PLAN REVIEW SERVICES FOR ELIGIBLE
RESIDENTIAL AND COMMERCIAL PROJECTS!
Expedited Plan Review
EeyiNPrenvata kes ie trilaie Re esaca Rene ta laye Fandl ed tneluamur l Are you Eligible?
w creee soashe ebve watus rond d nillre rantlv iwes za'ki How Much Does It Cost? Eligible Residential Projects Eligible Commercial Prajects* • One-Slory Single-Family • Professional business office uses Residences (excluding medical and dental
Eligibility Criterla • Pre-Approved Accessory Dwelling offices and clinics) Units (ADUs) • Offices associated with existing.
• Detached Accessary Buildings or approved R&D Facilities, data Structures (tocisheds. centers, warehouses, or factories playhouses, etc.)
Loara more
SantaClaraCh.gov/ExpeditedPlanReview
Centact the Building Division Permit Center at
[email protected] or 408-615-2420
Our friendly staff wil be happy to serve you! 13
13 City of
Santa Clara
12 10
INEAR TERM 8
DELIVERABLES
The CDD Technology Project Manager and the
CDD Web Content Team are responsible for 41
near-term deliverables on behalf of several
project drivers ranging from findings in the Baker
Tilly Audit, to City Council Priorities, ongoing
operations and existing projects.
Car Counci Pratdies Cept. ir fistives Operaions / Ongoing Baker Tilly Audit 11 14
7 10/7/25 Item #5
Raftelis Organizational Assessment
Launched in February 2025
Interviews conducted March/April 2025
Follow up interviews conducted September 2025
Comprehensive review of operations and functions with
staffing capacity
• Development Process Mapping: Late Fall 2025
Building Permitting City of
Santa Clara
The Center hai Posalble
Process
15 Questions and Feedback
Building Permitting City of
Santa Clara
Process The Centered Whats Possible
13 16
8 10/7/25 Item #5
City Council
October 7, 2025
Item #5 RTC 25-1096
Audit of the City's Building
Permitting Process
1852
THE MISSION CIT
Afshan Hamid
Community Development Director
17 17
October 7, 2025 Item #5
City Council
City Auditor's Office
SATA CLARACHE Audit Report of the City's
Building Permitting Process
CITY OF
1852
THE MISSION CIT
David Noce, Audit Manager
Item No. 4.B (#25-960)
September 23, 2025
1 Audit Project Selection
• The starting point of internal auditing is to conduct a risk assessment that is the basis for Impact on the ability of an organization to achieve is objectivesing that will have an During the annual risk assessment for 2024, the building permitting process was rate s hich risk based on inherent risks and specific information gathered, includin • Customer complaints for slow processing
• Departmental vacancies and turnover due to failed recruitment in a competitive field • New system implementation
• Volatile revenue
• Increased compliance risk associated with changing building code City of
Santa Clara
2 POST MEETING MATERIAL
1 October 7, 2025 Item #5
Audit Scope and Objectives
• Our audit covered interviews and document assessments related to the City's buildin! ermitting process for FY 2022 and FY 2023. We focused on Permit Services, which encompasses processes from application receipt to permit issuance, while excluding Building Services consisting of inspections and permit finalization. • The objectives of this audit were to:
• Determine whether the internal controls for the building permitting processes are adequately designed and operating effectively to ensure compliance with the City Code and other regulations.
, Determine whether adequate mechanisms are in place to ensure that the building ermitting process is efficient and provides timely customer service.
Determine whether the internal controls over billing and collections of permitting fees and fines are adequately designed and operating effectively to ensure financial accountability.
City of
Santa Clara
3 Audit Methodology
To achieve the audit objectives, Audit staff and Baker Tilly performed the following procedures:
California Code of Regulations.
• Gathered information to understand the environment under audit including evaluating P&P, permitting applications and fees, annual budget information, and performance monitoring documentation.
• Conducted interviews with key process owners and management including the Director of Community Development, the Building Official, the Assistant Building Official, Staff Analysts, Permit Center Supervisor, and the Accounting Division. • Assessed risks and identified controls in place based on process walkthroughs and review of supporting documentation.
City of
Santa Clara
4 October 7, 2025 Item #5
Audit Methodology
To achieve the audit objectives, Audit staff and Baker Tilly performed the following procedures (Cont.):
• Performed testing of key controls for application processing, plan reviews, and permit fee billing and payments.
• Randomly selected 45 applications using a stratified sampling method to ensure all review types were represented in our sample.
• Selection was made from permit applications that were received in FY2022 and FY2023 and for which permits had been issued as of September 11, 2023.
City of
Santa Clara
5 Audit Report Findings Summary
Finding 1: Policies and Procedures
Although the Building Division (BD) has some written procedures, they are informal and fragmentary. Comprehensive policies and procedures (P&P) have not been formally established for the building permitting process, which is essential to guide the BD staff ir decision-making and to communicate management's expectations.
Recommendation:
Management should establish and implement comprehensive P&P for the BD's critical processes, including Application Processing, Plan Review, Permitting Fee Billing and Collection, Permit Issuance, and Performance Monitoring.
City of
Santa Clara
3 October 7, 2025 Item #5
Audit Report Findings Summary
Finding 2: Timeliness of Permitting Process
Baker Tilly's review of 45 applications revealed that initial plan review, as well as subsequent plan review, was not consistently completed within the target time frame established by City management. Based on our permitting process timeline analysis, the processes before and after plan review can be improvec
Recommendation:
anagement should proactively monitor the permitting process efficiency by leveragir dditional performance metrics throughout the year, maximizing the use of the City permitting system reporting function.
City of
Santa Clara
7 Audit Report Findings Summary
Finding 3: Permit Fees
Baker Tilly tested permit fee calculations for 45 applications (for which the total job value as $334M and fees totaled over $3M) selected from all applications the City received i Y2022 and FY2023 and noted that building permit fees were not always calculate accurately in accordance with the applicable Municipal Fee Schedules.
Recommendation:
Management should implement the following mechanisms to ensure the accuracy of building permit fees charged to applicants: Comprehensive Manuals and Training for Permit Technicians; Adequate Testing of Fee Calculations; Timely Secondary Review of Invoices; and Refresher Training for Permit Technicians.
City of
Santa Clara
8 4
October 7, 2025 Item #5
Audit Report Findings Summary
Finding 4: Performance Monitoring and Process Improvement improvements to the building permitting process.
Recommendation:
The BD management should establish formal mechanisms for periodically monitoring building permitting processes. The BD management should also implement a systematic approach for collecting and analyzing customer feedback.
City of
Santa Clara
IN Contacet wars Passe
9 Additional
Questions?
City of
Santa Clar:
10 5