Staff Report: City Manager

City Manager Report September 28, 2026

Annual Water Service Line Notices • Staff recently sent out the required annual notices to property owners whose water service lines are identified as lead, galvanized previously connected to lead, or unknown. These notices are required annually and when there is a change in property ownership. o 585 notices were sent - 440 unknown and 145 known. • Staff have also developed a Frequently Asked Questions (FAQ) document to help property owners understand their notices, service line classifications, replacement requirements, and available options. The FAQ will be posted on the City's website. The City's complete Distribution System Materials Inventory (CDSMI) reports are also available on the website for public review. • As a reminder. The City submitted a Drinking Water State Revolving Fund (DWSRF) Project Plan seeking approximately $1.69 million to replace an estimated 135 known lead and galvanized service lines. Following a scoring correction, the City may now be within the fundable range in EGLE's Intended Use Plan. If awarded under the anticipated terms, the project would receive 10% principal forgiveness (effectively a grant), with the remaining balance financed through a 30-year, 0% interest loan. Staff will continue monitoring the funding process and provide updates as additional information becomes available. Business Community Town Hall • One of your priorities for this fiscal year is conducting a business town hall. • Grayson has done a great job coordinating the upcoming Business Community Town Hall, which is scheduled for Tuesday, October 20, from 11:00 a.m. to 1:00 p.m. at the Saugatuck Center for the Arts. • Grayson has been actively engaging with local businesses and has received positive feedback and interest in bringing the City and business community together for an open discussion. • A pre-meeting survey has been distributed to help identify the issues and priorities most important to local businesses and shape the discussion. Businesses have also been encouraged to submit additional comments and questions directly to Grayson. • Staff looks forward to a productive conversation and continuing to strengthen our relationship with the local business community. Elizabeth Street • Our engineers continue preliminary design for Elizabeth Street improvements from Allegan to Francis. Public Works and Engineering recently met on site with Bayview Condominium representatives to discuss sidewalk installation options. Unfortunately,

one of the trees was found to have internal decay and will need to be removed. We are awaiting further feedback from Bayview on granting an easement to construct the sidewalk around the other tree. Maple Street Construction Update • HMA (hot mix asphalt) base paving has begun. • Remaining concrete work will be completed shortly after the base course paving. Residents will be notified if their driveway is affected by the work. • Grass restoration has begun behind the new sidewalk. • The grass between the road and sidewalk will be restored after the final paving is completed. • Retaining wall is complete. Fence and guardrail still need to be installed. • Water Valve Work (Downtown): Water valve remains scheduled for October 19 & 20. Notice previously went out via e-mail and on City’s social media. Those who will be affected should have received a separate notice as well. If folks are unsure whether their property will be affected, please have them contact Michelle for more information. • A reminder that if your constituents have questions, please have them contact the following: Public Works - Michelle Gibson, Project Coordinator - (269) 224-9504 Parking Study Report • Thank you for the positive feedback on the work of the Parking Improvements Task Force! The workshop presentation represented a significant amount of work and collaboration over more than a year, and I appreciate the time and effort the Task Force members, consultants, community, and staff have dedicated to this important initiative. • I should have the full parking study report soon. Once I have it, I will be sure to send it to you and the community to thoroughly review. • I anticipate the recommendations returning to a December workshop meeting for Council to confirm its policy direction. • As a reminder, all of the Parking Improvements Task Force reports, inventory, presentations, meeting packets, and other study materials are available on the City's website: https://www.saugatuckcity.com/parking-improvements-task-force.html Fire Hydrant Rings • After hearing Council's interest in color-coded fire hydrant rings, I reached out to Fire Chief Janik and KLSWA Administrator Robert Miller to better understand the proposal and potential implementation. • The Fire District supports installing color-coded rings to identify hydrant flow capacity, allowing firefighters to quickly assess available water supply during emergency operations. The 2021 Water System Reliability Study referenced KLSWA's intention to paint hydrants according to flow capacity and recommended following NFPA colorcoding guidelines. • The Fire District Board previously voted in August 2024 to move forward with the hydrant classification project. I have requested clarification regarding what actions were taken following that vote to help determine the appropriate next steps.

Robert indicated that KLSWA's current leadership has limited information regarding the original discussions. He noted that implementation would benefit from coordination and agreement among the municipalities, Fire District, and KLSWA regarding responsibilities, costs, and long-term maintenance. KLSWA's current and potential future contractual responsibilities are a key consideration. KLSWA is currently responsible for the operation, maintenance, and repair of the City's water system elements, while the City is responsible for replacement. As the municipalities and KLSWA consider potential changes to this arrangement, including shifting additional replacement responsibilities to KLSWA, it is important that any hydrant identification program be developed collaboratively to ensure consistent implementation and long-term maintenance as hydrants are serviced or replaced. I will continue coordinating with the Fire District and KLSWA to clarify the project's history, implementation responsibilities, and potential next steps.

Nurdle Update • On 8/21/26, EGLE received a final cleanup report from the responsible party and their cleanup contractors. The report highlights the cleanup activities, disposal, and conclusions of the cleanup in detail. • On 9/10/26, EGLE and MDOT conducted a site inspection of the spill area and EGLE will be following up with the responsible party on findings. Miscellaneous • Blue Star Trail – Archeological survey was recently completed. A meeting is scheduled to review findings and next steps. • Logo and Branding – The design firm is finalizing the brand guidelines and numerous templates for implementation. • Conde Nast Traveler – Recently wrote a great piece about our area. Check it out here: An Art Lover's Guide to the Coastal Michigan City of Saugatuck. • Meetings o Attended Maple Street construction meeting. o Held one on one with City Clerk. o Held Department Head team meeting. o Participated in interview for MSU’s Oval Beach research. o Attended the Convention and Visitor’s Bureau Board meeting.  The CVB voted to approve a $6,000 donation for our holiday lighting. A HUGE thank you! o Met with Lakeshore Advantage. o Met with EGLE for quarterly update on MCMP grant for Park Street planning. o Met with new DPW team member. o Coordinated and attended MERS Retirement Presentation for staff.