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July 14, 2026
ITEM TITLE
CIP Appropriation: Amend the Fiscal Year 2026-27 CIP Program by Appropriating Funds from the Available Fund Balance of the Public Facilities Development Impact Fees Fund to the Fire Station 11 Project (GGV0273) Report Number: 26-0132
Location: 1595 Santa Luna Street
Department: Engineering
G.C. § 84308 Regulations Apply: Yes
Environmental Notice : The Project was adequately covered in previously certified Final Second Tier Environmental Impact Report for the Otay Ranch Villages Two, Three, and a Portion of Village Four Sectional Planning Area (SPA) Plan (EIR 02-02; SCH No. 2003091012) and only minor technical changes or additions to this document were necessary; therefore, Addendum to EIR 02-02 has been prepared.
Recommended Action
Adopt a resolution amending the fiscal year 2026-27 Capital Improvement Program (CIP) budget by appropriating $13,833,342 from the available fund balance of the Public Facilities Development Impact Fees (PFDIF) Fund to the Fire Station 11 CIP Project (GGV0273) (4/5 Vote Required)
SUMMARY
On April 23, 2024 , the City Council approved a Progressive Design -Build Agreement with Erickson-Hall Construction Company for the design and construction of an interim Fire Station 11 and established a new CIP project and budget for that purpose. As design progressed and cost estimates were refined, it became evident that constructing a permanent station would provide greater long-term value to the City. On May 20, 2025, with the ado ption of the fiscal year 2025 -26 budget, the project scope was formally revised to a permanent station and the CIP project was renamed “Fire Station 11” with the understanding that additional funds would be requested at a future date. With design now complete, the total anticipated project cost has been identified . The cost of a permanent facility exceeds the original budget established for the interim station; therefore, additional funding is required. The proposed action would appropriate an additio nal $13,833,342 to fully fund construction of the permanent Fire Station 11.
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ENVIRONMENTAL REVIEW
The Project was reviewed for compliance with the California Environmental Quality Act (CEQA) . It was determined that the Project was adequately covered in the previously certified Final Second Tier Environmental Impact Report for the Otay Ranch Villages Two, Three, and a Portion of Village Four Sectional Planning Area (SPA) Plan (EIR 02-02; SCH No. 2003091012). Only minor technical changes or additions to this document were necessary, and that none of the conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation of a subsequent document have occurred; therefore, Addendum to EIR 02-02 has been prepared. No further CEQA actions or determinations are required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The current Fire Facility, Maintenance, and Equipment Master Plan ( FFMP) identifies the need for an additional fire station, Fire Station 11, at La Media Road south of Main Street in Otay Ranch Village 8 West.
Fire Station 11 is necessary to provide fire, rescue, and emergency medical services because existing fire stations and response companies were not intended to provide service to this area and do not have response capacity for this new population growth.
City Council approved the design and construction of an interim Fire Station 11 on April 23, 2024 . City Council awarded a Progressive Design -Build Construction Agreement to Erickson -Hall Construction Company (“Erickson-Hall” or the “Design -Builder”) for the Fire Station 11 improvements , including establishment of a new CIP project and budget for that purpose.
Discussion of the proposed station location, fire station network, performance metrics, Village 8 West service demand, surrounding area fire station capacity, program for interim Fire Station 11, and sole-source design build delivery can be found in City Council Staff Report Number 23-0260 from April 23, 2024.
Erickson-Hall designed the interim facility with a minimum expected 10-year service life which necessitated all the spaces, features, and infrastructure typical for a standard fire station. As the design developed , the required facility design life, scope, and site constraints led to the estimated cost of the project significantly exceeding initial estimates.
Due to significant cost increase, it became evident that constructing a permanent station would provide greater long-term value to the City. On May 20, 2025, with the adoption of the fiscal year 2025 -26 budget, the project scope was formally revised to a permanent station and the CIP project was renamed “Fire Station 11” with the understanding that additional funds would be requested at a future date.
City staff and the Design-Builder transitioned to development of the design for the permanent station. City staff from multiple departments including Engineering, Fire, Development Services, and Public Works worked with the Design-Builder to develop the design. Several value engineering exercises were undertaken which resulted in signific ant savings while meeting all the Fire Department’s functional needs. The new permanent station will include three apparatus bays, ten dorm rooms, four and a half bathrooms, turnout locker room, decontamination room, workshop area, office space, kitchen, dining room, gym, day room, and P a g e | 3
supply storage areas; providing a state of the art, full featured, fire station that will serve the community for many years to come.
The design is now complete, and the project was bid to subcontractors by the Design -Builder. The Design- Builder and City staff have reviewed bids, evaluated costs and agreed upon the Guaranteed Maximum Price (GMP) for the construction of the station . The projected cost s exceed the project funds, and an additional $13,833,342 is required to complete the project.
Project budget summary:
FUNDS REQUIRED FOR DESIGN AND CONSTRUCTION
A. Temporary Station (operational during design and construction) $184,346 B. Design $2,168,700
C. Construction $17,302,052
D. Utility Fees, City FF&E, City Permits, Misc. Costs $321,177 E. Contract Contingency (Approx. 3%) $592,611
F. Design and Construction Staff Costs $1,021,376
TOTAL FUNDS REQUIRED FOR DESIGN AND CONSTRUCTION $21,590,261
AVAILABLE FUNDING
A. Public Facilities Development Impact Fees (PFDIF)
(Acct #: GGV0273-560901) $6,138,474
B. Parks Acquisition and Development (PAD)
(Acct#: GGV0273-715977) $1,618,445
C. PFDIF Council Appropriation (July 14, 2026) $13,833,342 TOTAL AVAILABLE FUNDING $21,590,261
Staff recommends appropriating funds in the amount of $13,833,342 from the available fund balance of the PFDIF Fund to Fire Station 11 for additional construction costs.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Re form Act (Cal. Gov’t Code §87100, et seq.).
CURRENT-YEAR FISCAL IMPACT
Approval of the resolution amends the fiscal year 2026-27 CIP budget by appropriating $13,833,342 from the available fund balance of the Fire Suppression Component of the PFDIF Fund to the Fire Station 11 CIP Project ( GGV0273) to provide funding for the remaining project costs through construction completion.
There is no current-year fiscal impact to the General Fund as a result of this action.
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ONGOING FISCAL IMPACT
The operations and maintenance of Fire Station 11 are reflected in the City’s Long -Term Financial Plan and will be included in the annual budget development process.
ATTACHMENTS
1. GGV0273 Project Title Sheet
2. Guaranteed Maximum Price Proposal
Staff Contact: Jonathan Salsman, Principal Civil Engineer Rosina Flores, Assistant Director of Engineering
Luis Schaar, Director of Engineering & Capital Projects/City Engineer