Council sustains bid protest, awards Salinas 2025 pavement project to Granite Construction

The Salinas City Council sustained a bid protest on June 17 and approved award of the 2025 Pavement Improvements Project to Granite Construction. The protest alleged the apparent low bidder, McKim Corporation, did not meet the city's local-business-enterprise definition and therefore could not claim the 5% local preference.

City staff said five electronic bids were received. McKim appeared to be the low bidder at opening, but Granite Construction filed a written protest on May 28 arguing McKim did not qualify for the 5% local-business preference because it did not meet locality criteria in city code. Staff contacted Carmel and found no business license record for McKim in Carmel; Granite asserted McKim incorrectly claimed a local office and therefore was not entitled to the 5% preference. Applying the preference would make Granite the low bidder.

Granite counsel told council the protest had merit and said McKim failed to meet several local-enterprise requirements, including a business license and a bona fide local office. McKim did not present a representative at the protest hearing. After hearing staff and Granite, councilmembers asked about construction quality and inspection procedures; public speakers urged close inspection and timely completion.

Councilmember Sandoval moved to sustain the protest and award the contract to Granite Construction; Councilmember Barrera seconded. Roll-call votes were taken: Barajas — yes; Barrera — yes; Dirigo — yes; De La Rosa — yes; Salazar — yes; Sandoval — yes; Donahue — yes. The motion passed.

Staff will return with a final contract for Granite and proceed with project implementation under standard city construction inspection and one-year maintenance provisions.