Gilroy approves $1 million reallocation for consolidated sidewalk repairs and allows property-owner repairs

The Gilroy City Council on Aug. 4 approved a $1 million budget amendment to increase funding for the city’s consolidated Fiscal Year 2026 Sidewalk Replacement Project and adopted minor policy changes to the cost-sharing repair program.

The action expands the project budget to $1.5 million, funds a consolidated bid package for 87 priority repair locations and authorizes staff to update program materials. Council also approved allowing property owners to hire licensed contractors and complete repairs outside the city-led program — at the owner’s full cost — with the city waiving the encroachment permit fee but requiring adherence to city standards.

Capital Projects Manager Ryan Ozzington told the council the city’s earlier model required property owners to front costs and seek reimbursement, which slowed repairs. The revised approach shifts the city to fronting project costs and then invoicing owners for their share. Ozzington said the city identified roughly 87 locations recommended for the next consolidated bid; the city’s internal list of needed repairs has grown to more than 250 addresses, driven in part by increased public reporting and the Gilroy Connect app.

Ozzington said the engineer’s estimate for the 87-location bid is about $1.426 million and that unused FY26 funds will return to the sidewalk repair reserve for future years. Staff also told council they are seeking an on-call concrete shaving contractor to delay full replacement at lower-risk locations and buy time for those repairs.

Public works Director John Doughty and staff fielded council questions about tree conflicts, species selection and long-term root management. Council members emphasized preserving street trees where possible; staff said each site and tree will be evaluated by an arborist and that, in some cases, root pruning and shaving could allow the city to keep existing trees while repairing walkways.

Under the new owner-option policy, a property owner could remove and replace sidewalk segments at their expense if the work meets city specs and is performed by a licensed contractor. Plan-review fees remain due on submission; staff recommended the city waive the encroachment permit fee as an incentive but retain inspection requirements. Staff said they expect to issue the new bid package later in August with a September bid opening and contract award anticipated in October.

Council approved the FY26 budget amendment allocating $1 million of prior-year unspent sidewalk repair funds to the consolidated project and separately approved the recommended program refinements; both motions passed 7-0.

Moving forward, staff will finalize the bid package, post updated homeowner guidance and work with the on-call shaving contractor to extend the useful life of lower-risk panels before scheduling full replacements.