Consent Agenda Item (4u)
STAFF REPORT
City Council Consent Item
DATE: July 21, 2025
TO: Honorable Mayor and Council Members
FROM: Mat Nyberg, Deputy City Engineer
THROUGH: Amy Nilsen, City Manager
SUBJECT: Authorize the City Manager to Negotiate a Contract for the Digester Rehabilitation Project, Resolution 2025-22
STAFF RECOMMENDATION:
Authorize the City Manager to negotiate a construction contract with Sequoia Specialties, Inc. for the Digester Rehabilitation Project, by adopting Resolution 2025-22.
EXECUTIVE SUMMARY:
On December 5, 2024 the City experienced a large earthquake that resulted in damage to the digester at the wastewater treatment plant. The digester is an integral and essential component of the City’s wastewater treatment process and without it the City would not achieve regulatory treatment standards.
Staff publicly noticed this project on May 15, 2025 and received a sole bid from Sequoia Specialties on June 6, 2025. The bid exceeded the budgeted amount for the project, so staff met with Sequoia Specialties for a breakdown of costs. Sequoia Specialties acknowledged some assumptions, including a lid adjustment bid item, that significantly impacted their bid. After further review, Sequoia Specialties requested a bid modification, which staff agreed to on the basis of a sole bidder and that the modification was a reduction. Subsequently, staff received an informal bid that fell within the allocated budget.
This type of contract award is allowable as set forth in Fortuna Municipal Code Section 2.50.070 (D), when it is found by council resolution that direct negotiations best serve the City. A copy of the resolution drafted by staff, and reviewed by the City Attorney, has been included as Attachment A. Sequoia Specialties is a licensed and qualified local contractor in this type of construction, and they have successfully performed many tasks for the City, including the new police facility and they were subcontractors in the original construction of the digester completed in 2006.
Upon approval of a contract award via direct negotiations, staff would finalize a contract with Sequoia Specialties and anticipate work commencing within a month.
FINANCIAL IMPACT:
Sequoia Specialties quote for the repairs is $46,115. Staff are seeking authorization to negotiate and execute a contract for this amount, and establish a contract not to exceed$75,000, which would allow for the lid adjustment to be reintroduced in the event it is deemed necessary after repairs are Consent Agenda Item (4u)
completed. The cost for these repairs will come from the Sewer Reserve Fund 560, which has $100,000 allocated for this project.
RECOMMENDED COUNCIL ACTION:
Motion to approve Resolution 2025-22 and authorize the City Manager to negotiate and execute a construction contract for the Digester Rehabilitation Project. Consent Agenda vote.
ATTACHMENTS:
• Resolution 2025-22, A Resolution of the City Council of the City of Fortuna Authorizing the City Manager to Negotiate and Execute a Construction Contract for the Digester Rehabilitation Project