Gilroy council unanimously approves $12.28 million design‑build contract for Santa Teresa fire station

City of Gilroy officials voted unanimously Tuesday to award a design‑build contract to Zumalt Construction and Teter Architecture for the new Santa Teresa Fire Station and to adopt related budget changes to begin preconstruction work.

Staff presented the project and a recommendation to the council, saying the design‑build proposal from Zumalt/Teter was the highest‑scoring interview team and the lowest cost best‑and‑final offer. "Staff is recommending that we award a contract to Zumalt Construction for amount not to exceed $12,279,555," Public Works project manager Ryan Osenton told the council during the presentation.

The council’s vote included approval of Additive #1 (a utilities extension estimated at $66,285) and a project contingency in the range noted in staff materials (about $228,000). Staff said the combined cost including previously approved construction‑manager/master‑architect (CMMA) services totals roughly $13,442,555 for the overall project budget in the capital projects fund.

Why it matters: staff said the station — a roughly 6,500‑square‑foot facility at the corner of Lucasa and Miller avenues — will house living spaces, apparatus bays and emergency power provisions and is intended to shorten response times in the southern neighborhood. The project is listed in the FY26–27 CIP (project 800290), and staff recommended a budget amendment to pull funds forward so design and preconstruction work can start immediately.

Schedule and funding: staff described a 23‑month schedule that would deliver an operational station by June 2028, with preconstruction and design from July 2026 through March 2027 and construction from April 2027 into April 2028. Ryan Osenton said Glen Loma Ranch is contractually responsible for $3,610,757 toward the construction; staff expects those funds after final map recording, which is scheduled for council consideration in August. As a contingency, the staff presentation included authorization for a temporary interfund loan to cover timing differences.

Labor, compliance and stakeholder involvement: Council members pressed staff on workforce requirements and oversight. Council Member Hilton noted packet language requiring an "enforceable commitment" that the design‑build team and its subcontractors use a skilled, trained workforce in apprenticeable trades in accordance with Public Contract Code requirements. Dustin Alamo of Griffin Structures, the city’s construction manager, said Griffin will monitor compliance throughout construction as part of its CMMA role. Staff also confirmed a wage‑theft bid certification was part of the RFQ/P submission requirements.

Firefighter input and site details: Fire Chief Rob Fleipup said firefighters have been engaged via a committee and will become more hands‑on in living‑space layout and interior details once design advances to later phases; exterior amenities such as a barbecue or recreation area were not detailed at the current ~30% design milestone.

Energy questions: Council members asked whether the city had identified grant or partnership funding for solar plus battery storage. Staff reported outreach to Silicon Valley Clean Energy found no immediate grant pipeline for PV‑plus‑storage; staff described solar can be added later but noted battery storage is required to realize most operational benefit.

Public comment and council action: one speaker, Ron Kirkish, expressed support for the station as a valuable local investment. After deliberation, Council Member Braco moved to award the contract (Council Member Marks seconded); the roll call vote was seven to zero. The council then voted 7–0 to adopt a budget amendment resolution appropriating funds and authorizing a temporary interfund loan to bridge timing until developer funds are recorded.

Votes at a glance: • Award design‑build contract to Zumalt Construction (not to exceed $12,279,555) — Motion passed 7–0. • Budget amendment and temporary interfund loan (authorize $3,610,757 interfund loan) — Motion passed 7–0.

What’s next: staff said it will finalize the design‑build agreement, begin preconstruction with the CMMA and design team, and return to the council as required for final maps and any further budget or procurement approvals. The council then adjourned to closed session to consider labor negotiations.