Cost Sharing Agreement for 720 N Maple Water Service Line Replacement and Installation of 8” Water Main Stub. (Roll Call)

City Council Agenda Item Report FROM:

Ryan Cummins, City Manager

MEETING DATE:

October 14, 2025

SUBJECT:

Proposed Cost Sharing Agreement for 720 N Maple Water Service Line Replacement and Installation of 8” Water Main Stub

DESCRIPTION: In May 2022, KLSWA shut off water at the Old Mille Apartments, which also cut service to 720 N Maple. Fleis & VandenBrink (F&V) found that 720 N Maple was improperly tied into Old Mille’s line instead of the public main on Maple Street. F&V obtained quotes of $17,880–$21,800 to correct the issue. Although connection cost is normally the property owner’s responsibility, the owner, Victor Rodriguez, believes the City should share costs since the improper connection was previously approved. A 50/50 cost share was discussed but never completed. With design engineering underway for the Maple Street project, Mr. Rodriguez has requested the work in the following diagram be included. F&V estimates the cost would drop to $8,000– $12,000 if done as part of the larger project. Consistent with prior discussions, staff recommends City Council consider a 50/50 cost share.

8” Water Main Stub for Future Development In addition, Mr. Rodriguez is asking that the City consider installing a separate 8” water main stub for future development in the area. F&V estimates the cost to be $7,000 - $11,000. I recommend including the stub so long as Mr. Rodriguez pays for 100% of the cost. Draft Agreement Attached is a draft cost sharing agreement for both the water service line replacement and installation of 8” water main stub. Mr. Rodriguez has reviewed the draft of the agreement and agreeable to it. BUDGET ACTION REQUIRED: None at this time. Sufficient dollars are budgeted for the Maple Street project. LEGAL REVIEW: The City Attorney prepared the draft agreement and will be at your meeting to answer any questions. SAMPLE MOTION: Motion to approve the cost sharing agreement with Victor Rodriguez for a water service line replacement at 720 North Maple Street and installation of 8” water main stub.

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COST SHARING AGREEMENT THIS AGREEMENT is made ___________, 2025 between the City of Saugatuck, a Michigan home rule city, 102 Butler Street, Saugatuck, Michigan 49453 (“City”) and Victor Rodriguez, an individual and property owner, __________________ (“Mr. Rodriguez”) (collectively the “Parties”). RECITALS WHEREAS, the City is currently improving and repairing the water main, service lines, sanitary sewers and additional infrastructure located on and below the west lane of Maple Street that runs between the Blue Star Highway and North Street (the “Maple Street Project”); and WHEREAS, the City has engaged the engineering firm Fleis & VandenBrink to complete preliminary specifications and plans for the Maple Street Project; and WHEREAS, Mr. Rodriguez is the owner of the property located at 720 North Maple Street, Saugatuck, Michigan 49453 (the “Property”) which is currently connected to a private water main and along the Maple Street Project route; and WHEREAS, the City and Mr. Rodrguez desire the Property’s connection be removed from the private water main and be connected to the City’s public water main (the “Project”), identified in Exhibit A; and WHEREAS, the City and Mr. Rodriguez desire to share all costs related to the Project, including but not limited to engineering costs, construction costs, and the costs of connection to the City’s public water main, subject to the terms set forth herein. TERMS AND CONDITIONS NOW THEREFORE, in exchange for the consideration of the promises and of the mutual undertakings in this Agreement, the Parties agree as follows: ARTICLE I Construction 1.1 Construction Plans and Specifications. Final plans and specifications for the Project are being prepared by the City’s engineer, Fleis & VandenBrink, and will comply with all applicable laws, ordinances, rules and regulations (“Project Plans”).

1.2 Permits/Approvals. Prior to beginning construction of the Project, the City will obtain all permits or approvals required by law to construct the Project. To the extent any permits, approvals, or permissions are required from the Kalamazoo Lake Sewer & Water Authority or any third party, the Parties shall cooperate in obtaining the same. 1.3 Construction Engineering. The City Engineer (Fleis & VandenBrink), on behalf of the City, will provide engineering services for the Project pursuant to a separate contract between the City Engineer and the City. 1.4 Construction. The City shall ensure that the Project is constructed by a contractor or others strictly in accordance with the Project Plans or any amendments thereto. Construction may not begin until all pre-construction requirements under this Agreement have been met, including without limitation, those in sections 1.2. ARTICLE II Payment 2.1 Estimated Costs. The City and Mr. Rodriguez will split the design, engineering, and construction costs of the Project in the proportions identified in Exhibit B, which exhibit is incorporated by reference. 2.3 Final Costs. The Parties acknowledge and agree that the current engineering costs and construction costs set forth in Exhibit B are estimates only, and that the Parties’ obligation to pay their respective share of the final costs will remain and be binding. To this end, once the final construction costs are established, the Parties’ representatives shall meet and amend Exhibit B to reflect such developments. That amended Exhibit B shall, upon completion, be initialed by representatives of each party and the amendment shall thereafter be deemed to reflect the final costs to be paid by the Parties. 2.4 Payment. The City shall initially pay all costs of engineering for and construction of the Project. Upon receiving an invoice for construction or engineering services, the City shall invoice Mr. Rodriguez for his percentage of the costs as set forth in Exhibit B, along with a copy of the original invoice. Mr. Rodriguez shall submit payment to the City within thirty (30) days of receiving the City’s invoice. In the event of a payment that is more than sixty (60) days delinquent, the City reserves the right to assess such outstanding costs as a lien against the Property enforceable in the same manner as real property taxes. Late payments shall accumulate interest at a rate of 1.5%.

ARTICLE III Ownership 3.1 Ownership. The City shall retain all ownership rights in all publicly owned components associated with the Project. Mr. Rodriguez shall retain ownership of the 8” stub and service connections in accordance with applicable City and Kalamazoo Lake Sewer & Water Authority ordinances and policies. In the event the 8” stub is extended to serve future development, ownership shall transfer to the City and become public infrastructure. The City shall assume any ongoing maintenance obligations imposed by law for the street and right of way for so long as the portion of North Maple Street remains a part of the City’s street system. 3.2 No Security Interest. Mr. Rodriguez shall not have or attempt to obtain and hereby waives any security interest in or lien on the Project or North Maple Street. 3.3 Usage. Mr. Rodriguez’s use of the Project to obtain public water service shall comply with all applicable laws, rules and regulations, and is subject to all applicable fees, charges and rates imposed by the City, in addition to the costs shared pursuant to this Agreement. 3.4 Claims. This Agreement does not provide Mr. Rodriguez any rights to the perpetual existence of North Maple Street or any cause of action for damages or otherwise as a result of any discontinuance, abandonment or vacation of North Maple Street. ARTICLE IV Term 4.1 Term. This Agreement shall terminate upon the Mr. Rodriguez’s final payment to the City as provided for in Section 2.4 following the completion of the Project. ARTICLE V Miscellaneous 5.1 Addresses. All payments that are required or authorized to be given under the terms of this Agreement shall be made by depositing the same in United States first-class mail with postage prepaid, addressed to the party to whom such notice is given or personally delivered at the addresses first written above or such other address as the recipient party shall have previously notified the other party. The effective date of any such payment shall be the date it was deposited in a United States mail receptacle, and the date of any such notice shall be the first business day following the date of deposit of such notice in a United States mail receptacle or the date of actual delivery, whichever occurs first.

5.2 Assignment. Neither party shall have the right to assign its rights, duties, obligations or interests under this Agreement without the prior written consent of the other party, which written consent will not be unreasonably refused and which will be given or denied with reasons given for the denial within thirty (30) days of a written request therefore. 5.3 Entire Agreement. This writing constitutes the entire Agreement between the Parties to it. No oral or written, prior or contemporaneous agreement shall have any force or effect, nor shall any subsequent agreements have any force or effect unless made in writing and signed by both Parties. 5.4 Governing Law and Venue. This Agreement was made in and shall be interpreted, construed, enforced and performed pursuant to the laws of the State of Michigan. The jurisdiction and venue for any action to enforce this Agreement or any payment to be made pursuant to this Agreement shall be in Allegan County, Michigan, in accordance with the laws and rules governing the jurisdictional amounts and equity jurisdiction. 5.5 Contacts and Action. Any submissions to or requests of the City shall be directed to the City Manager who is empowered to act on behalf of the City pursuant to this Agreement. The City Manager will so act within fifteen (15) days of receiving a request or submission unless City Council action is required, in which case such action will be sought and taken as soon as is practicable, given the regularly scheduled meeting dates of the City Council. Any submissions to or requests of Mr. Rodriguez shall be directed toward him. Mr. Rodriguez will so act within fifteen (15) days of receiving a request or submission. 5.7 No Third-Party Beneficiaries. No third party, except permitted representatives, successors, and assigns of Parties shall be a beneficiary of any provision of this Agreement. 5.8 Severability. Any provision or portion of any provision of this Agreement which is found to be illegal or void shall be treated as if it had never been a part hereof and shall have no effect whatsoever on the entire Agreement or provisions hereof. 5.9 Binding Upon Successors. The covenants, representations, understandings, promises and agreements in this Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted representatives, successors and assigns. 5.10 Captions. The captions of this Agreement shall not be considered as part of this Agreement but shall be considered as descriptive only. 5.11 Authorization. The undersigned representatives of each party warrant and represent that they are properly authorized to enter into this Agreement.

The Parties have executed this Agreement as of the date first above written. CITY OF SAUGATUCK By:

By:

VICTOR RODRIGUEZ By:

EXHIBIT B 1) Project Scope: •

Water Service Line Replacement - Includes constructing water service line from Property to City operated water main. o Cost breakdown: 

City: •

Mr. Rodriguez: •

50%

50%

Installation of 8” Water Main Stub across Maple Street for future development and water service at certain parcels owned by Mr. Rodriguez with addresses of 612, 616 and 620 North Maple Street. o Cost breakdown: Mr. Rodriguez – 100%

2) Estimated Project Cost Breakdown: Estimated Total COST

City Share

Mr. Rodriguez Share

Construction and Connection to City Water Main

$8,000-$12,000

$4,000-$6,000

$4,000-$6,000

Installation of 8” Water Main Stub

$3,000-$5,000

$0.00

$3,000-$5,000

Estimated Shared Total Cost

$11,000-$17,000

$4,000-$6,000

$7,000-$11,000