For Immediate Release January 8, 2013

Contact: Matt Awbrey (619) 929-0089 Communications Director

Faulconer Backs Plan for Online City Permit System

City Auditor found current software may not catch permit and fee mistakes
SAN DIEGO --- The City of San Diego is transitioning to a modern, online system to track and process permits, a department director told the City Council today. The Council accepted a plan to scrap the current permit system created in 1998 by City employees and move toward a commercially-developed model. Councilmember Kevin L. Faulconer, chair of the Citys Audit Committee, said San Diegans expect clear steps and timely results when they apply for a City permit. The Citys permit tracking system can be improved to reduce errors, increase transparency and guard San Diegans dollars, said Faulconer. I want the City to move forward with an easy online system and away from the current antiquated program that requires information to be manually entered, which is time consuming and can lead to errors. The Development Services Department assesses approximately 500 different fees and had a $60 million budget in Fiscal Year 2012. The department issued $1.16 billion in permits in Fiscal Year 2011. The departments activities include plan checking, permitting, records maintenance and building inspections. San Diegans want to get their permits online so they dont have to visit a government office and wait in line. Other cities have online permit tracking, fee estimators, permit history and account management. I believe the City of San Diego can and should be providing that level of service, Faulconer added. In August 2012, Faulconer and the Audit Committee voted to support City Auditor Eduardo Lunas recommendation to transition to commercial off-the-shelf permit software. The Development Services Department agreed and began the process of examining commercially made systems used by municipalities in California and across the U.S. The City Auditor found that the Citys outdated permit tracking system creates financial risks for the City and permit applicants. The June 2012 audit characterizes the current permit system

as difficult to learn and tedious to use, which could lead to mistakes being made when processing fees and permits. According to the audit report, a lack of system controls and accountability triggers does not ensure that permitting fees and deposits are charged accurately and consistently. The audit found no specific instances of improper activity but noted that doing so would be extremely difficult due to the systems monitoring and detection control deficiencies. The Development Services Department plans to provide a progress report to the Audit Committee in June 2013. The estimated cost of a new system will be determined in the spring. Based on the experience of other jurisdictions, it is estimated that it will take 1-2 years to fully implement the new system. ###