Consent Agenda Item 4k
STAFF REPORT
Consent Agenda Item
DATE: June 15, 2026
TO: Honorable Mayor and Council Members
FROM: Brian Issa, Public Works Director
SUBJECT: Approval of a Contract with Mercer-Fraser Company for a Minor Street Paving Maintenance and Repair Project; Resolution 2026-24 STAFF RECOMMENDATION:
Adopt Resolution 2026-24 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 $750,000.00 (seven hundred and fifty 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 oncall 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. All 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 $750,000 (seven hundred and fifty thousand dollars) during the oneyear term unless authorized in writing. The actual cost will depend on how much work is required during the one-year term.
Below is a chart outlining potential City funding sources and amounts for this contract included in the FY 2026-2027 budget.
Consent Agenda Item 4k
City Fund FY 26-27 Budget Amount
101 (Measure E) $ 250,000
260 (TDA Non-Transit) $ 500,000
290 (RMRA SB1) $ 275,000
TOTAL $ 1,025,000
RECOMMENDED COUNCIL ACTION:
Adopt Resolution 2026-24. Consent Agenda vote.
ATTACHMENTS:
• Bid Tabulation of Received Bids
• Resolution 2026-24 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