Garden City tables proposed SafeBuilt inspection fee increases to Feb. 23

Garden City — The Garden City Council on Feb. 9 voted to table a resolution to renegotiate its contract with SafeBuilt, a private building-permit services vendor, after members raised concerns about notice, vendor transparency and whether the city has a mechanism to pass increased fees on to permit applicants.

Finance and development staff told the council that SafeBuilt has invoked a contract clause to request increases that would exceed the usual 4% CPI adjustment; staff said one example in the vendor’s request would raise inspection rates from $90.52 an hour to $110 an hour and that some line-item changes could amount to increases near 27 percent. Staff also reported an email from SafeBuilt saying the vendor was operating at a 17% loss under the current contract.

Why it matters: Council members said the timing and level of information in SafeBuilt’s request made it difficult for the city to assess financial impact and to put pass-through procedures in place. Several members urged that the city finalize a pass-through fee mechanism before approving any increases so the city does not absorb unplanned costs.

What happened at the meeting: Director Thornborrow (city staff) summarized the vendor’s request and the operational limits that prevent SafeBuilt from handling some trade permits for larger commercial projects. Council member Jorgensen criticized the vendor’s communication and the lack of detailed cost information, saying the city should expect better supplier dialogue. Another council member suggested tabling the resolution until the city’s pass-through agreements are ready so any increase could take effect only when the city is prepared to pass it on.

Legal counsel noted the contract contains an automatic-renewal clause signed on 08/17/2021, and that SafeBuilt’s December notice arrived after the renewal period implied by that language; council members discussed that timing as part of their leverage in negotiations.

Outcome and next steps: The council passed a motion to table Resolution 1238-26 to a date certain of Feb. 23. Staff will prepare a companion pass-through fee proposal and a revised fee schedule for the next meeting; council asked staff to compare the proposed rates with peer cities and to present options on how to implement increases so the city does not run at a loss.

Key quotes: "They submitted the initial request on Dec. 27 and they were hoping the beginning of the year," staff said, noting the vendor pushed for a quick resolution. "I'm very disappointed in the way this was handled," Council member Jorgensen said, urging better vendor communication.

What’s not yet specified: The precise dollar amount the city could receive or lose under different scenarios was not provided at the meeting. Staff said PFOS settlement receipts and other one-time items are being tracked separately in the water fund and that a complete, citywide fee revision will come in two parts: pass-through fees first, then a deeper review of other fees.

Provenance: The discussion appears in the meeting transcript beginning with the SafeBuilt presentation and debate; topic material runs from SEG 861 through SEG 1190 and the tabling motion and roll call are recorded in SEG 1167–SEG 1188.

Speakers (appearing in transcript and quoted above): Director Thornborrow (staff), Council member Jorgensen, Council member Page, Mayor Jacobs, Mister Waters (council/legal participant).

Authorities referenced in the meeting: none statutory beyond the original SafeBuilt contract and its renewal language (contract dated 08/17/2021). The meeting notice complied with Idaho Code §74-204.

Topics: contracts, fees, municipal administration.

Ending: The council adjourned after tabling the item; staff will return with pass-through language and a fee schedule for the Feb. 23 meeting.