Consent Item 3l
STAFF REPORT
City Council Consent Item
DATE: May 19, 2025
TO: Honorable Mayor and Council Members
FROM: Bob Natt, Interim Director of Public Works/General Services Superintendent THROUGH: Amy Nilsen, City Manager
SUBJECT: Approval of a Contract with Mercer-Fraser Company for a Minor Street Paving Maintenance and Repair Project; Resolution 2025-14 STAFF RECOMMENDATION:
Adopt Resolution 2025-14 approving a Contract for Minor Street Paving Maintenance and Repair Project with Mercer-Fraser Company.
EXECUTIVE SUMMARY:
The purpose of the Minor Street Maintenance and Repair Project (“Contract”) is to contract with a qualified paving company to provide routine minor repairs and maintenance for City streets on an on-call basis, for an amount not to exceed $800,000.00 (eight hundred thousand dollars) for a one-year term.
Section 2.50.070.D of the Fortuna Municipal Code provides that formal bidding is not required when the City Council finds that a negotiated contract best serves the City due to the nature of the service. A standard public bidding process would not be appropriate for this Contract due to the on-call nature and the importance of selecting a contractor who has the qualifications, equipment, crew, and availability to respond promptly to requests and to perform the work expeditiously, economically, effectively and safely.
Three paving contractors were requested to provide informal proposals. Four of the three contractors responded. After reviewing the proposed unit pricing, staff recommends that the City contract with Mercer-Fraser Company, which has been identified as the most cost-effective and qualified.
The work will consist of the removal and replacement of hot-mix asphalt at various locations in the City. The locations will be determined and task orders issued, as paving needs arise throughout the year.
FINANCIAL IMPACT:
The Contract is not to exceed $800,000.00 (eight hundred thousand dollars) during the one-year term unless authorized in writing. The actual cost will depend on how much work is required during the one-year term.
Consent Item 3l
There is approximately $300,000 available funding currently in this year’s budget. The remaining $300,000 is money unspent from fiscal year 2024-25 that could be requested by staff as a budget rollover if this year’s projects require additional funding. It should be noted that the unspent funding from this year was not due to lack of need, but rather staff postponed work for a larger project in the future. Below is a chart outlining City funding sources.
City Fund FY 25-26 Budget Amount FY 24-25 Possible Rollover Amount
101 (Measure E) $ 125,000
260 (TDA Non-Transit) $ 85,000
275 (RSTP) $ 175,000
290 (RMRA SB1) $ 270,000 $ 300,000
TOTAL $ 655,000 $ 300,000
RECOMMENDED COUNCIL ACTION:
Adopt Resolution 2025-14 approving a Contract for Minor Street Paving Maintenance and Repair Project with Mercer-Fraser Company. Consent Agenda vote.
ATTACHMENTS:
• Resolution 2025-14 A Resolution of the City Council of the City of Fortuna Approving the Contract for Minor Street Paving Maintenance and Repair Project with Mercer Fraser Company
• Bid Summary Sheet