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Home My WebLink AboutCOW 2022-03-14 Item 4D - Update - Development Review PermittingCOUNCIL AGENDA SYNOPSIS "s+a�' 41 Initials ITEMNO. it Meeting Date Prepared by Mayor's review Council review 0 0 3/14/22 NG 4.D. 04. 19Q8 ITEM INFORMATION STAFF SPONSOR: NORA GIERLOFF ORIGINAL AGENDA DATE: 3/14/22 AGENDA ITEM TITLE Development Permitting Process and Timelines CATEGORY 0 Mfg Discussion Date 3/14/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs 11 DCD ❑ Finance 11 Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S The Council has asked for an update on review timelines for development permits, staffing, SUMMARY and customer service improvements. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. Department of Community Development COMMITTEE Direct to full Council COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 3/14/22 Informational Memorandum dated 3/14/22 27 28 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Nora Gierloff, DCD Director Jay Wittwer, Fire Chief CC: Mayor Ekberg DATE: March 14, 2022 SUBJECT: Development Permitting Update ISSUE Update on the status of development permit review timelines. This includes the permits needed to construct or modify buildings, utilities, plumbing, heating/cooling systems, and site work such as filling or grading. BACKGROUND A combination of factors has led to a backlog in development permit processing and longer review cycles over the past two years. 2019 was an outlier year with an approximately 50% increase in permit valuation and revenue. This created a surge in review and inspection work that would track into the following several years as permits were issued and projects were inspected during construction. However, the disruption from the pandemic that started in February 2020 cannot be overstated. The pandemic caused significant financial stress on the whole City organization. With the expected loss of 10% to 15% revenues at one time, approximately $6 to $10 million, the City Council approved the staff recommendations to freeze staffing across several city departments and most collective bargaining units agreed to furloughs rather than layoffs of current staff. In addition, the city continued to move forward and transition to online permit submittal and electronic plan review. From past experience, there is often a decrease in permitting activity during periods of financial uncertainty like the pandemic. However, permit volumes remained at an average level in 2020. This created a backlog of permits as reviewers had the carryover permits from 2019 in addition to the new 2020 submittals. To address the situation three DCD positions were unfrozen in mid -2021 with hiring and onboarding for those and three other vacant positions continuing through the summer and fall. As part of the "One Stop Permitting" effort four positions were transferred from Public Works to DCD in January 2021. Incorporating these new staff members required a reorganization and development of new procedures. We are starting to see the benefits of this change with closer communication and coordination between three of the four permit review groups — planning, building, and development engineering. The processing of fire permits from intake to issuance has moved to DCD while the reviews remain within the Fire Marshal's Office. 29 ,02,485 30 INFORMATIONAL MEMO Page 2 $300.000,000 5250.000,000 0200,000,000 tC 1 a 3150000000 6 5100.000200 $50.000,000 30 2016 2017 2018 2019 ..07.0 2021 66� Total Yalurnan $93.693,656 3122.247247 3153,135,631 3239.971.040 3135,909.2.15 $82.103.963 "1"01..9. Rvenue 32.802.85 $3.527.234 33.907.964 $6.194.983 33.339,933 $1.60191.2 ,, ,Tota1 17e781.11. 1663 1750 1757 1664 1429 1498 3122,247.047 393.693,656 Permit "Trend 2016-2021 3153.135,631 .527.234 .907.964 1: .194.90 6.409.215 1448 382,103.9 .339,833 02,912 The valuation of development permit applications shows a downward trend in 2021 after an average year in 2020. Total development permit revenues for 2021 were $1.8 million, below the target of $2.3 million. 2000 1800 1600 1400 1200 1000 800 200 0 DISCUSSION We have been seeing more incomplete or inaccurate applications now that applicants are submitting online without the interaction with permit techs at the counter. This can mean weeks of waiting for applicants to make corrections or submit a complete set of materials before permits can even be routed for review. We do offer online appointments so that a permit tech can walk applicants through the process, answer questions, and help them make sure their materials are complete, but many applicants do not use this service. As of February 28, 2022 there were 40 incomplete permits and 17 incomplete land use projects. Once the permit techs make sure that the applicant has applied for the correct permit and that the materials we need have been included they send an email notifying the applicant that the review fees are due. Sometimes applicants delay payment, perhaps not understanding that review will not start until the fees have been paid. As of February 28, 2022 there were 69 permits waiting for payment and 20 land use projects. Historically the target time to the first comment letter on a permit has been 4 to 6 weeks. Currently the target is 8 weeks. Overall, the permit processing backlog has been reduced significantly from where it was 6 months ago. September 2021 Fire Reviews: 28 Total Building Reviews: 47 Total February 2022 41 Total 1 Overdue 11 Total 4 Overdue https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/DCD/Permitting Briefing/Permitting InfoMemo 3-14-22.docx 0 3 INFORMATIONAL MEMO Page 3 Planning Reviews: 128 Total Engineering Reviews:178 Total 31 Total 8 Overdue 60 Total 8 Overdue Fire Review Discussion In November 2021, our in-house fire plan reviewer and code expert of over 30 years suddenly passed away. This had a major impact to the workflow as the Fire Marshal had to step in and perform both plan review and Fire Marshal duties. In December 2021, that same Fire Marshal transitioned out of the office and back onto shift work. A new Fire Marshal started in January 2022. A back log of over 130 fire reviews were identified. To help mitigate the problem, the new Fire Marshal began performing plan review (as well as FM duties) along with 2 outside plan review consultants. As noted in the previous chart, the backlog is now down to 41. This is a temporary solution and has taken a considerable amount of time and effort set in place. A new full-time in- house fire plan reviewer is still needed. Human Resources is working with the Fire Chief to fill the position of a new fire plan reviewer. The market for this highly trained and experienced resource is difficult. We are adjusting the job posting to enhance the application pool. The Fire Department is also investigating other options to increase the workflow volume of the fire review and post review processes. Planning Review Discussion The two associate planners that we hired last fall are adapting quickly and taking on more complex permits as they become fully trained on the City's varying review processes. They have also provided fresh insight and provided staff with an opportunity to identify efficiency improvements, including but not limited to the following: • Daily permit review by the assigned Planner of the day, who reviews and reassigns permits to applicable staff each morning. This equates to a daily permit triage process in comparison to the twice a week process that existed before the pandemic. • Staff has implemented procedures to ensure older permits remain at the top of the review queue and are not over -shadowed by more recent permits. • A field inspection process is being implemented that will ensure inspection requests are made only when Planning staff are available to provide a thorough review. This will significantly reduce the chance of inspections needing to be rescheduled in the future. • For permits such as signs that require less technical inspections applicants may self -inspect and submit photos of the work. This saves City staff significant travel and field time and allows for more flexibility on the applicant's end. Building Review Discussion The building division has had difficulty recruiting and retaining qualified individuals over the last four years. In the past we offered hiring bonuses of up to $15,000 to attract competent applicants for Senior Plans Examiner and Combination Building Inspector positions. We were able to hire a plans examiner and once we became fully staffed in September 2020, the building division was able to catchup on our substantial backlog. Engineering Review Discussion We have had turnover of the two longtime development review engineers over the past year. Cherie Du was hired in December 2020 to replace Dave McPherson. Joanna Spencer recently https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/DCD/Permitting Briefing/Permitting InfoMemo 3-14-22.docx 31 32 INFORMATIONAL MEMO Page 4 retired but the Council approved hiring her replacement Kerry Murdock last summer to allow for a training and transition period. Engineering staff have worked diligently to process a significant backlog of permits that emerged during the pandemic, many of which were due in part to very large projects that required significant coordination with other departments. FINANCIAL IMPACT Information only. RECOMMENDATION Information only. https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/DCD/Permitting Briefing/Permitting InfoMemo 3-14-22.docx