Council approves pavement contract, rejects sidewalk bids and clears other items in unanimous votes

Gilroy City Council unanimously approved several routine and construction actions during its June 16 meeting, including awarding a contract for the citywide pavement rehabilitation project and rejecting bids for the 2025 sidewalk replacement program.

The actions resolved contract awards, budget adjustments and procurement direction that the city said are intended to advance its multi-year pavement and sidewalk programs while protecting the city's budget. The council voted 7-0 on each recorded item listed below.

The most significant item was approval of a construction contract for the Fiscal Year 2025 Citywide Pavement Rehabilitation Project (Project No. 25PW295). Staff recommended and the council approved awarding the construction contract to McKim Corporation in the base amount of $6,479,784.79, with a project contingency and total authorized project expenditure of $7,127,763 (including contingency). The council also adopted a resolution amending the FY24-25 budget to provide the required funding adjustments. The staff presentation said the project covers 13 street segments and two alleyways, about 1.4 million square feet, and focuses on collectors and arterials.

On a separate procurement matter, the council voted to reject all bids for the Fiscal Year 2025 Sidewalk Replacement Project (Project No. 25PW296) and directed staff to rebid the project. Staff told council the initial low bidder was found nonresponsive because of required wage-disclosure issues; the next low bidder provoked questions about scope and cost. Councilmembers said rebidding to expand scope and pursue economies of scale was preferable; motion to reject bids passed 7-0.

Other votes taken during the meeting included adoption of the consent calendar (items 5.1'5.7) and approval of a one-year agreement with Santa Clara County Communications for emergency medical dispatching for FY2026 in the amount of $100,878. All recorded roll-call votes on those items were 7-0.

Why it matters: The pavement contract moves forward a large, multi-year resurfacing effort the city described as year two in a five-year schedule; the sidewalk rebid signals council interest in adjusting program scope and improving procurement economics. The emergency dispatch contract commitment buys the city a year while staff studies alternatives and regional options for longer-term emergency medical dispatch staffing and costs.

Details of recorded actions

- Adoption of consent calendar (items 5.1'5.7) - Motion: adopt consent calendar - Mover: Councilmember Klein (as recorded) - Second: Councilmember Marx (as recorded) - Vote: 7 yes, 0 no

- Award contract: FY25 Citywide Pavement Rehabilitation Project No. 25PW295 - Motion: Award contract to McKim Corporation in the base amount $6,479,784.79; approve project contingency $1,625,000.96; authorize total project expenditure $7,127,763 and authorize city administrator to execute contract and associated documents. - Mover: Councilmember Marks (as recorded) - Second: Councilmember Ramirez (as recorded) - Vote: 7 yes, 0 no - Notes: Council also adopted a resolution amending the FY24-25 budget to fund the project (motion passed 7-0).

- Sidewalk replacement project No. 25PW296: reject bids and rebid - Motion: Reject all bids received and direct staff to rebid the project - Mover: Councilmember Hilton - Second: Councilmember Klein - Vote: 7 yes, 0 no - Notes: Staff said Villalobos & Associates (initial low bidder) was invalidated for not disclosing required DIR wage-related information; Vanguard Construction was next lowest responsive. Council directed rebid to potentially double project scope and gain economy of scale.

- Emergency medical dispatching agreement (one-year continuation) - Motion: Approve one-year agreement with Santa Clara County Communications for emergency medical dispatching in FY2026 for $100,878 and authorize the city administrator to execute the contract and associated documents. - Mover: Councilmember Rocco (as recorded) - Second: Councilmember Marks (as recorded) - Vote: 7 yes, 0 no - Notes: Staff said the county's fee structure changed and the FY2026 amount rose from about $92,000 to $100,878. Staff will study options and timelines for an in-house or regional solution.

What the city said next: Staff will proceed with the pavement contract administration and will rebid the sidewalk program with consideration of larger scope and improved procurement timing; staff will also continue a study of emergency medical dispatch options and timelines.

Ending: Council did not identify any change to the overall project priorities; the pavement contract award and the sidewalk rebid now move to implementation and procurement steps that staff said will be reported back as milestones are reached.