Gilroy approves $696,292 contract to 4Leaf for water utility construction management

The Gilroy City Council on Oct. 6 voted 6-0 to award a $696,292 contract to 4Leaf Incorporated for construction management services on a bundled water utility improvements project (Project No. 25, RFP UT‑522) and authorized a 15% contingency of $104,448.

Utilities Director Heath (first name not specified in the transcript) told the council staff bundled six smaller water capital projects to attract larger contractors, improve efficiency and address undersized and deteriorated pipes. The bundled work focuses on upsizing multiple mains to 8‑ and 12‑inch ductile iron pipe to improve fire flows and replace aging infrastructure.

Heath described the solicitation process: the city issued an RFP on July 7, contacted multiple firms, and received three proposals. 4Leaf was recommended based on relevant pipeline and pavement experience; staff negotiated the final scope and recommended council authorize a 15% contingency to cover potential change orders or additional services.

Councilmember Bracco asked whether the city provides reports on contingency usage; staff said that practice would require checking with operations and that the city does not typically produce a final project budget summary automatically but could consider return reporting. After a motion by Councilmember Marks and a second by Councilmember Ramirez, the council approved the award and contingency, and authorized the city administrator to execute the contract.

The action will allow construction management, resident engineering, inspection and testing services to proceed for the combined utility improvements once the administrator executes the contract. The council did not adopt any changes to procurement policy during the vote; questions about reporting back on contingency use were referred to staff for follow-up.