Title
DISCUSSION AND POSSIBLE ACTION REGARDING THE PROFESSIONAL SERVICES AGREEMENT FOR BUILDING DEPARTMENT SERVICES FOR CALVIN GIORDANO AND ASSOCIATES.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On December 11, 2025, the City Manager approved the twelfth amendment to the Professional Services Agreement between the City of Pembroke Pines and Calvin, Giordano and Associates Inc for Building Department Services. The twelfth amendment extended the contract for 180 days through June 30, 2026. A complete legislative history is included with the agenda item.
2. Due to the number of extensions and the time period that has passed since the contract was put out to bid, administration is recommending going out to bid for this contract.
3. Administration has begun to draft new procurement documents for City Commission review for building department services and as part of the preparation, staff reviewed previously approved state legislative action that may need to be included in the draft documents.
4. Recently adopted legislation includes, but is not limited to, required time lines for plan review, requirements for the creation of temporary building departments during states of emergency as well as the expanded use of private providers for plan review and inspections.
5. In terms of private providers, until recently, a small discount was applied to the permit fees for plan review and inspections using private provider services. Nonetheless proposed house bill (HB 405) seeks to dramatically increase discounts on permitting fees for projects that utilize private providers. Staff has included three of the proposed bills with the agenda items.
6. Staff have seen an increase in the types of projects that are utilizing private providers. Initially, private provider was mostly used on large scale projects like apartment buildings, new residential communities, etc. However, staff has seen private providers inspecting projects as small as bathrooms. Additionally, staff has observed the new companies entering the private provider marketplace, some of which, may not have an understanding of the allowable processes. Other proposed bills seek to reduce regulations pertaining to the use of private provider (HB 803).
7. Administration is concerned that the new legislation will further increase this practice, potentially altering the revenue that supports the operation of the department as well as staffing levels for the department.
8. The timing of the procurement and the potential implementation of the new legislation could impact on the accuracy and terms of potential proposals for building department services.
9. Indirectly, the proposed property tax legislation may also impact the volume and type of construction projects the City could see in the future. Depending on the proposal and outcome, the City may see an increase in lower value residential projects and a decrease in larger commercial projects as the tax burden is altered. The extent of the proposed bills be considered may have significant impact to building services.
10. Administration is requesting a one-year extension for the professional services agreement to allow time to first determine if new legislation is approved, the language in the legislation, then time to gauge the impact the legislation has on operations of the building department in terms of staffing, revenues and timeliness.
11. As part of the one-year extension, administration is proposing to include language in the extension agreement with a detailed transition plan should a new vendor be selected following future procurement. A transition plan would include requirements on how the current vendor, a future vendor and City would address active permits in terms of plan review, inspections and associated fees.
12. Administration requests City Commission approve a one-year extension to the Professional Services Agreement for Building Department Services with Calvin Giordano and Associates extending the current agreement through June 30, 2027 to allow for sufficient time to create appropriate bid specifications reflecting changes to state legislation and potential impacts.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: This contract is based on a % of revenues; the City retains 11.5% of permit revenues and CGA receives 88.5% for operations.
b) Amount budgeted for this item in Account No: Not Applicable
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 year projection of the operational cost of the project:: Currently CGA receives 88.5% of permit fees and pays the City rent, utilities and an administrative fee that covers software programs and administrative staff.
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable at this time