Gilroy awards $1.01 million sidewalk replacement contract; two bidders disqualified, protests followed

The Gilroy City Council on Oct. 20 awarded a $1,009,759 contract to McKim Corporation for construction of the fiscal‑year 2026 sidewalk replacement program, authorized a $100,976 contingency and approved a total project expenditure of $1,110,735.

Public Works Director John Doughty said the project covers 87 locations identified for full replacement, largely where roots from street trees or other causes have created hazardous uplifts and ADA‑noncompliant conditions. The work will be funded from the city's sidewalk repair reserve fund; staff said the FY26 budget included $1.5 million for that reserve.

Doughty told council the city advertised the project, received five bids, disqualified three as non‑responsive and identified McKim Corporation as the lowest responsible and responsive bidder — the winning bid came in about 24% below the engineer’s estimate. The council authorized the interim city administrator to execute the contract.

Bidding protests and disqualifications

Two firms that spoke during public comment — Villalobos & Associates and a company represented in the room as Viola Rose & Associates — said they were incorrectly disqualified and urged the council to rebid or award to the lowest responsible bidder. Rebecca Avelas (who said she represented Viola Rose & Associates) said her firm had the lowest base bid but received notice of disqualification and asked the council to reconsider.

Public Works staff and the city attorney explained the disqualifications and the bid‑protest review. Staff said the bid package required specific documentation because one disqualified firm had multiple wage‑reporting issues with the Department of Industrial Relations in the last five years; the purchasing rules required disclosure and documentation in that circumstance. After evaluating the protests with the city attorney’s office, staff concluded McKim remained the lowest responsive and responsible bidder.

Council action and timing

Councilmember Zach Hilton moved and Councilmember Kathy Bracco seconded the award; the motion passed 7–0. Staff said construction is expected to begin no earlier than early 2026 and that the city will seek reimbursements from property owners where the city fronts replacement costs per the city’s sidewalk policy. Doughty said the program will continue to be administered to balance complete replacements with interim maintenance that reduces the number of full replacements needed.

Quotes

“We came to you in June with a potential award of contract for 38 locations. You agreed to not award that contract, reject all the bids and to move forward with a bigger, more extensive proposal at 87 locations that we’ve been able to fit into the budget,” Public Works Director John Doughty told council.

Ending

Staff will finalize the contract with McKim Corporation, complete the construction schedule and return to council as necessary if protests or unforeseen conditions require further action. Several local contractors urged staff to provide post‑award debriefs so disqualified firms can understand documentation requirements for future bids.