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Gilroy awards $7.13M pavement contract; council rejects sidewalk bids and orders rebid
Summary
Council approved McKim Corporation for the FY25 citywide pavement rehabilitation project and rejected all bids on the FY25 sidewalk replacement project, directing staff to rebid to seek better economy of scale.
Gilroy City Council on June 16 awarded the fiscal‑year 2025 citywide pavement rehabilitation contract to McKim Corporation and approved related budget adjustments, then rejected all bids for the separate FY25 sidewalk replacement project and directed staff to rebid.
Pavement rehabilitation: Staff described the pavement project as part of a five‑year program focused this year on collectors and arterials. Public Works reported 15 work areas covering about 1.4 million square feet and more extensive grind‑and‑overlay work on streets with heavier truck traffic. The council voted 7–0 to award the base contract to McKim — $6,479,784 — and to authorize total construction spending of $7,127,763 including contingency. A related budget amendment covering fund transfers and allocations also passed 7–0.
Sidewalk replacement: Staff presented a separate FY25 sidewalk program that included 38 locations for sidewalk repair and tree‑related issues. Bids were opened; one low bidder was invalidated for failing to disclose Department of Industrial Relations (DIR) wage issues as required, and Vanguard Construction was identified as the next lowest responsive bidder. Council members and staff discussed whether rebidding to achieve greater economies of scale (using additional FY26 funds) would lower per‑location costs. After public comment and staff Q&A, the council unanimously voted to reject all bids and directed staff to rebid with the possibility of combining more locations to reduce overhead and secure more competitive pricing.
What council asked staff to do next: Public Works will rebid the sidewalk replacement project and consider expanding the number of locations when FY26 funds become available to try to reduce unit costs. Staff will return to council after rebid with results. For the pavement project, staff will finalize contracts and begin construction scheduling.
Source quotes: Public Works staff summarized the pavement scope as “about 13 street segments, 2 alleyways, 15 total, and about 1,400,000 square feet of pavement.” Councilmember remarks reflected concern for problem areas such as the Monterey Street underpass and coordination with Caltrans.
Ending: The twin actions move forward the city’s street maintenance program while pausing sidewalk work to seek better pricing and potentially larger‑scale procurement.
