Dallas Looks at Merits of Artificial Intelligence to Improve Efficiency in Development Services Department

Altamonte Springs, California, recently became the first U.S. city to implement artificial intelligence for site plan reviews, and the initiative has caught the attention of Dallas leaders looking for ways to improve the permitting process in the Development Services Department. 

It took Development Services Director Andrew Espinoza over a year to clear a permit backlog that got entangled during the COVID-19 pandemic. Even with new legislation allowing developers to bring in their own experts for third-party review, the processes are cumbersome and the department is “hemorrhaging cash.” It also has 78 vacant positions. 

The AI tool, as implemented in Altamonte Springs, is not intended to replace humans but to augment their work, officials have said. 

Dallas City Council members Chad West and Gay Donnell Willis met virtually with the AI company partnering with Altamonte Springs and were told staff efficiency in reviews has improved by over 60 percent. Espinoza and Planning and Urban Design Director Andrea Gilles scheduled a meeting with the California AI operating company later this month. 

West said he’ll invite the department directors to brief the Government Performance and Financial Management Committee once that meeting takes place. 

“Imagine having a tool on hand that can cut out all of the guesswork, personalities, and ambiguity, allowing staff and developers to focus on the technical aspects of proposed projects,” the councilman said. “It’s time for Dallas to embrace the future.”

City Auditor Mark Swann said in a GPFM meeting last week that AI is the “new frontier” in his line of work.

“Every conference we went to had a session on potential uses of AI, but none of them seemed to be concrete to put into practice yet,” he said. “A lot of work is being done that way. We do use analytical software when we have masses of data.” 

Development Services Department Update

Residential permitting volume increased in September by about 39 percent, Espinoza told council members during an Economic Development Committee meeting earlier this month. 

Although 180 new single-family permits were issued, the median number of days to issue permits increased from four to six, he added. About 56 same-day permits were issued in September. 

It’s commercial permitting that continues to be slow, due in part to the complexity of the projects, city staff has said. 

The Development Services Department will roll out a permit dashboard in January so stakeholders in the development community can track their permits and identify if or why delays are occurring. Customers have been asked to submit 100 percent of plans online. 

“We want to move progressively toward only accepting applications that are properly platted and zoned,” Espinoza said. “We’ve found that when a customer submits a permit application without having the appropriate zoning, it tends to stagnate and it slows down the entire process.” 

The department last adjusted its fees in 2015 and has heard from MGT Consulting of America that 40 services provided by the department are not associated with a fee. The fees the department does assess are disproportionately lower than other North Texas cities, Espinoza said. The consultant is conducting a fee study that will be presented to the council on Dec. 4. 

Economic Development Committee Chair Tennell Atkins said the city is missing out on about $22 million in revenues and new development while waiting on a fee study and updated processes. 

“My job on this committee is to fix this, and we’re going to fix this right now,” Atkins said. “It’s very simple. We’re undercharging. That’s unacceptable.” 

The department has 78 vacant positions, 25 of which were added when the budget was adopted Oct. 1. 

View the entire Nov. 6 presentation here. 

What’s Next For The Development Services?

Espinoza acknowledged that the current permit issuance model is not sustainable. 

Councilman Omar Narvaez called out the department for requesting new positions in the Fiscal Year 2024 budget while officials appeared to know the Development Services Department was “hemorrhaging cash” from a lack of competitive permitting fees. 

“That’s not good. You came to this body and you asked us for cash,” Narvaez said. “You knew we would give you anything you wanted because we wanted this fixed. I feel like this may have been done on purpose in order to get your way … I trust you guys to do your work and get it done.” 

Development Services Assistant Director Vernon Young said there were some unforeseen expenses related to purchasing a new building, software upgrades, and navigating how to best utilize third-party vendors.

“There were signs there, but without this full report, it was unclear how that would affect us in the future.” 

Narvaez asked that departments advise the CIty Council if a trend appears to be forming, so the elected officials are not blindsided.