MEETING DATE:
SEPTEMBER 9, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9492 – DELEGATING TO AND AUTHORIZING THE CITY MANAGER TO AWARD, NEGOTIATE, FINALIZE, AND EXECUTE ALL CONTRACT DOCUMENTS, AND DELEGATING TO AND AUTHORIZING THE CITY ENGINEER TO APPROVE CONSTRUCTION DOCUMENTS FOR THE FIRE STATION 5 PROJECT (CIP# FC021)
Body
Recommendation
Recommendation
ADOPT a resolution to delegate to and authorize the City Manager the authority to award, negotiate, finalize, and execute all contract documents, and to delegate to and authorize the City Engineer to approve plans for the Fire Station 5 project (CIP# FC021).
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Quality of Life
Planning for the Future
Good Governance
Relevant Department Goal
Not Applicable
Executive Summary
The Purchasing Chapter of the San Marcos Municipal Code authorizes the City Manager to award and execute contracts of $250,000 or less for which there is an Appropriation. Contracts exceeding $250,000 shall be awarded by the City Council unless authority is delegated to the City Manager. Approval of this resolution will delegate and authorize the City Manager to execute all contracts within appropriated budget authority and delegate and authorize the City Engineer to approve the construction documents for the Fire Station 5 to support the schedule and delivery method.
Discussion
On December 12, 2023, the City council received the results of the updated 2022 Standards of Cover study from Citygate Associates. The study showed that the City fire department has longer than recommended response times for 4 out of 5 surveyed categories. Further reports from City staff showed an increase of nearly 37% in fire and emergency service calls in the past 10 years, and the City overall has seen a population growth of 5.4% during the same period, which has significantly contributed to response times falling outside of targeted goals. Several other factors such as traffic patterns, geography/street layout of the city and others exacerbate these challenges. Continuing development in several areas of the City are anticipated to increase calls for services from the fire department. Therefore, Citygate Associates strongly recommended the construction of a fifth fire station to respond to increasing demand
On September 24, 2024, City Council authorized the City Manager to complete negotiations, finalize and execute all documents related to the purchase and sale agreement for the property located at 0 Armorlite Drive, APN 219-163-60-00, to be used as the future site of Fire Station 5. This property was obtained in January 2025.
The approved Fiscal Year 2025-26 budget included appropriated $25 million dollars to the Fire Station 5 capital improvement project, CIP Project FC021. On July 22, 2025, a public workshop was held with City Council to determine the delivery methodology for the project. Of the four options presented, the progressive design-build delivery method was chosen. With a progressive design-build project, the project is awarded to a team comprised of designers and contractors as the progressive design-build contractor. This team manages the project with City staff from design through completion of construction under a single contract consisting of a design phase and construction phase. When the design approaches completion, the progressive design-build contractor prepares a guaranteed maximum price (GMP) for the construction phase of the contract. With this approach, the completion of the Fire Station 5 project is expected to be completed much sooner than a conventional design-bid-build approach where a design contract is executed, the design is prepared, the design plans are approved by Council, the project is let for bid, and a separate contractor is selected based on the lowest, responsive and responsible bidder. The progressive design-build contract is expected to exceed the current $250,000 threshold for execution by the City Manager.
In addition to the progressive design-build contract, other agreements/ contracts will need to occur for completion of the project including, but not limited to an owner’s representative contract, a labor compliance contract and a construction management/ inspection contract. The request for proposals for the Owner’s Representative Contractor was posted on 8/15/2025 and is accepting proposals through 9/11/2025.
The City Engineer is responsible for the approval of final plans once Council approves them. Subsequently the City Engineer signs the construction documents such as plans and specifications. In a typical design-bid-build approach, at regular scheduled meeting, Council approves documents for the project before bidding occurs. In a progressive design-build approach, the plans are prepared and after a GMP is agreed upon the design-build contractor moves directly into construction, limiting the window that staff may have to return to Council.
Given the existing need for these planned facilities, Staff recommends that the City Council delegate to and authorize the City Manager to award, negotiate, execute, and finalize all project documents with exception to the GMP, and that it delegate to and authorize the City Engineer to approve plans for the project, in an effort to support the schedule and delivery method.
Environmental Review
The delegation of authority noted above does not constitute a “project” as defined by Public Resources Section 21065, and is exempt from CEQA or other environmental review pursuant to CEQA Guidelines section 15061(b)(3). The review of the project itself will undergo the applicable environmental review in accordance with CEQA guidelines prior to construction.
Fiscal Impact
CIP project FC021 is budgeted in the approved Fiscal Year 2025-26 Capital Improvement Projects Budget with $8.1 million currently available and additional funding each fiscal year through FY29. The approval of the resolution does not increase the overall project budget.
Attachment(s)
Attachment: Resolution
Prepared/ Submitted by: Kyle Wright, Senior Project Manager
Reviewed by: Isaac Etchamendy P.E., Development Services Director/City Engineer
Approved by: Michelle Bender, City Manager