Alpena City Council approves budget amendments, service agreements and multiple infrastructure contracts

The Alpena City Council on June 15 approved a package of budget and contracting measures intended to close out the fiscal year, fund local nonprofit services and advance several public-works projects.

City Manager Rachel Simoneski presented two service agreements the council approved: $30,000 to the Heron Humane Society—$25,000 designated for animal shelter services and $5,000 earmarked for a city-sponsored feral cat spay-and-neuter reimbursement program—and $5,000 to the Thunder Bay Arts Council to support public sculpture projects inside the city. "The HHS agreement provides $30,000 in funding, including $25,000 for animal shelter and related services provided to city residents and $5,000 for a city sponsored spay and neuter reimbursement program," Simoneski said.

Finance staff also presented remaining FY2026 budget amendments that the council adopted. Finance staff noted an unanticipated May personal property tax reimbursement of $424,000 and an overestimate in real property tax revenue of roughly $222,000; the amendments reallocate revenue authority across departments to keep spending within the limits set by the Michigan Uniform Budgeting Act. Anna (finance staff) told the council the changes were intended to "bring everything that we have so far current." The council voted to approve the amendments.

Council approved payment of attorney fees tied to ongoing water and sewer litigation. Attorney Bill Feifer requested $23,870 payable to him and $5,005 to his firm for work from June 2025 to June 2026, for a total of $28,875; council moved and approved payment of the amounts Feifer presented.

Public-works and procurement approvals were a substantial part of the evening's business. City Engineer Steve Schultz recommended awarding the annual city concrete program to Bedrock Contracting; Bedrock cited higher material and mobilization costs for the unit prices it submitted. The council awarded the contract and established a resident cost-share for sidewalk replacement at 60% of installation cost, listed in the meeting packet as "744 per square foot." Schultz explained Bedrock's bid reflects shorter, patch-style work and higher mobilization.

To use remaining ARPA funds for the Bay View restroom and pavilion project, council approved change order No. 2 for $47,500 to pulverize, regrade and repave the adjacent Pren Street parking lot. The change was presented as a way to spend down the city's ARPA allocation for the project without returning funds.

The council approved a $373,818 contract with Kelgon (vendor name variably spelled in packet materials) for the semiannual carbon change-out at the water production plant, an increase of about 8.2 percent over the prior three-year contract. The city also re-awarded the 2026 HMA patching contract to Ever Goodrich Trucking for a cited amount of $105,000 after the previously selected contractor had not yet supplied required insurance and bonding paperwork.

Finally, the council approved change order No. 2 for the Clearwell project that produced net credits and reduced the contract amount by about $14,500, lowering the contract to $9,849,184. For each contract motion the council made and carried a motion to authorize the appropriate city official—typically City Engineer Steve Schultz or the city manager—to sign agreement documents.

Votes at a glance

- Consent agenda (bills, cemetery deeds, event permits): approved; amount for bills $310,424.98. - Heron Humane Society service agreement: approved; $30,000 (authorized for execution by city manager/city clerk). - Thunder Bay Arts Council service agreement: approved; $5,000 (authorized for execution). - Attorney billing (water/sewer litigation): approved; $28,875 total to Bill Feifer and his firm. - Budget amendments for FY2026: approved (staff cited $424,000 personal property tax reimbursement as a key item). - Bedrock Contracting — 2026 city concrete program: contract awarded; resident sidewalk rate set at 60% (packet lists "744 per square foot"). - Bay View restroom/pavilion change order No. 2 (parking lot work): approved; $47,500 (ARPA funds). - Kelgon Carbon contract (water plant carbon change-out): approved; $373,818 (city engineer to sign). - HMA patching contract to Ever Goodrich Trucking: approved; $105,000 (contractor to begin upon execution). - Clearwell project change order No. 2: approved; net contract reduced to $9,849,184.

What happens next

Staff will finalize and execute the approved agreements and change orders. The water-treatment and Clearwell contract documents are expected to be signed by City Engineer Steve Schultz; the city manager and city clerk were authorized to sign other service agreements. The city will implement the budget amendments as presented and move forward with the awarded construction work this season.