Council hears plan to overhaul site plan review process

Few who have dealt with the city of Austin’s site plan review process would dispute that it’s cumbersome, time-consuming and expensive. But consulting firm McKinsey & Company, which analyzed the process and then outlined improvements for City Council at Tuesday’s work session, has offered statistics demonstrating just how convoluted the process is.

For example:

• The Austin Land Development Code includes 1,800 regulations, eight technical criteria manuals and 12 building technical codes;
• There are 1,470 steps from start to finish for a site plan review; and
• Eleven departments and more than 250 staff members are involved in the review process.

McKinsey’s Drew Erdmann told Council that site plan delays increase development costs for single-family residential redevelopments, as well as multifamily developments. For example, he said, carrying costs for single-family redevelopment are about $9,700 per month and $546,000 for multifamily redevelopment. The carrying costs for development in previously undeveloped areas – also called greenfield developments – are about $37,000 per month, he said.

Erdmann presented a plan that included empowering Development Services Director José Roig to coordinate the review process and improvement efforts across departments.

In addition, McKinsey recommended a pilot program for a one-stop-shop office, a new pre-submission review meeting and more training for staff in how customers experience the process and what their expectations are.

McKinsey performed the analysis for the city on a pro bono basis. However, Council now is expected to approve a $2.5 million contract with the company as part of Thursday’s agenda. The time frame for that contract is six months, but the process for comprehensive overhaul of the site plan process extends through next year and into 2025.

Council Member Alison Alter noted that Thursday’s agenda item states that the contract is only for six months. She wanted to know whether McKinsey would come back for a contract extension and more money next year. Assistant City Manager Veronica Briseño said she did not expect that to happen.

“We’re trying to prioritize a swift and efficient response. That was the intention behind the six-month term, and I don’t believe the intention is to come back,” Briseño said, asking Roig to confirm. He agreed with that, but his response was less definitive.

Alter also asked about funding for next year, because she was only aware of $416,667 from the current year’s budget being up for discussion Thursday. Interim City Manager Jesús Garza assured her that she would get an explanation by Thursday.

Alter also had questions about the nature of the contract, which did not go out for bids. Chief Procurement Officer James Scarboro explained that the contract is totally separate from the arrangement for the pro bono analysis. McKinsey will be operating through a “cooperative agreement,” he said.

“We were alerted to the availability of a national cooperative contract agreement through Omnia Partners, previously known as U.S. Communities. They’ve been around for a long time. We’ve used them on a number of occasions,” Scarboro said.

At the end of the discussion, Mayor Kirk Watson addressed Roig, who will be tasked with oversight of all the changes. The mayor said that during all of his time in local politics, he has been “looking for somebody who would admit they were a code geek.” And he wondered, “Why would you ever want to be a code geek? I guess being the director of the (Development Services Department), we want us a code geek. So, thank you for being willing to admit that, and thank you for what you do.”

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