Gilroy council awards $1.16 million contract for Santa Teresa fire station project

The Gilroy City Council on Aug. 18 voted unanimously to award a $1,163,000 contract to Griffin Structures Inc. to provide construction management with master architectural services for the Santa Teresa Fire Station design-build project.

The contract covers construction management and master architectural services, a city presentation said, and is intended to guide design, the selection of a design-build entity, construction and project closeout. "We are asking for council to award the contract to Griffin Structures for a total project cost of $1,163,000," Ryan Ozzensson, the city's capital projects manager, told the council.

The vote followed an extended discussion about timing and contingency funding tied to a nearby housing development. The proposed fire station site is identified as Parcel Q in the Glen Loma Ranch subdivision at the southeast corner of West Luceza and Miller Avenue, and parts of the station construction funding are tied to developer contributions for that subdivision. City staff said Griffin's CMMA proposal was the second-lowest cost received and earned the highest average evaluation score from the review committee.

Why it matters: the city seeks to add a fourth permanent fire station to improve coverage and response times for growing neighborhoods in southeast Gilroy. Staff said the design-build approach should reduce schedule and cost risk compared with traditional delivery.

What the council voted on: the contract awarded to Griffin Structures covers $1,108,300 in fees plus $54,700 in reimbursables for a total CMMA cost of $1,163,000. Staff said the capital projects fund will cover the award; the city has $1,500,000 programmed for fiscal year 2026 and $11,500,000 available in fiscal year 2027 for the overall project budget. Glen Loma Ranch is contractually committed to contribute $3,600,000 of that larger project funding.

Council members probed how tightly the project schedule is linked to Glen Loma Ranch's build-out. "Contractually, from the funding side, it the only part of the agreement ... tied to completion and recording of the final maps," a staff member said, describing triggers that release Glen Loma funds. Staff added the city could choose to front some work or the funding if developer timelines slip, but that would likely require a reimbursement agreement.

Several council members urged a more active oversight role and faster progress. "We built the library faster than that," Council Member Rocco said, criticizing the multi-year schedule staff presented and urging formation of a subcommittee. Council Member Hilton and others recommended monthly updates and a council-level subcommittee to track schedule, costs and permitting milestones.

Schedule and funding details: staff presented a six-phase schedule that they estimate would take about 34 months if started quickly; under that timeline staff said construction could conclude around June 2028. The city noted the Glen Loma Ranch developer selection process could delay receipt of the developer portion of funding and that, if necessary, the city could use reserves or other financing to avoid stopping construction.

Outcome and next steps: Council approved the contract 7-0 and authorized the interim city administrator to execute the agreement and related documents. Staff said contract execution would begin immediately and that concept designs and bridging documents would be completed in early 2026, with design-build entity selection in spring 2026.

The council also asked staff to provide regular status updates and discussed creating a subcommittee to provide closer oversight of design and schedule decisions.