Council awards HMA patching contract and approves marina fuel supplier after price and delivery discussion

The Alpena City Council approved two contracts on May 18 after staff presentations and extended discussion about pricing and operational logistics.

As part of its routine procurement items, City Engineer Steve Schultz recommended awarding the 2026 hot-mix asphalt (HMA) patching contract to Prime Results LLC, the low bidder. Council approved the award for unit prices totaling $96,480; the contract includes the option for a one-year renewal if both parties agree on price. Schultz told council that previous annual contract totals ranged from about $60,000 to $70,000 depending on street and utility work.

On marina fuel procurement, Harbor Master Kevin Fisher presented results from bids for recreational gasoline and low-sulfur diesel for the Alpena Marina. Because of rapidly fluctuating wholesale rack prices, vendors submitted markups to the rack. Fisher said Blarney Castle (vendor name in the packet) offered daily rack pricing and did not charge additional fees for deliveries on Sundays, holidays or after hours, while another bidder (Crystal Flash) had a lower markup but charged sizable per-delivery upcharges for after-hours or weekend deliveries. Fisher and councilors discussed tank par levels (6,000-gallon tanks, recommended minimum ~1,500 gallons for diesel to avoid algae), typical weekly usage (roughly 1,000 gallons diesel and 1,500 gallons recreational fuel), and the unpredictability of deliveries when large research vessels call.

After discussing tradeoffs and staff experience with vendors, the council voted to accept the marina fuel bid from Blarney Castle at daily rack prices (no additional delivery fees) for recreational gasoline and low-sulfur diesel; the contract will run through the season (generally through November) and staff will track deliveries and costs to inform next year's procurement decisions.

Why it matters: The HMA contract funds routine street maintenance work; the marina fuel contract affects marina operations and revenues and carries operational costs tied to delivery timing and vessel demand.

Details: Prime Results LLC was discussed as the low bidder for the HMA contract; staff contacted references and recommended award. For fuel, staff noted that rack prices change frequently and that upcharges for off-hour deliveries can change the vendor that is most economical depending on delivery frequency.

Next steps: The city will execute the HMA contract and schedule patching work. Harbor staff will track delivery data (timing, gallons, upcharges avoided) through the season and present season-end data so council can compare total costs among vendors next year.