Change in the City’s Schedule of Fees - Resolution No. 250604-B & Resolution No. 250604-C

City Council Agenda Item Report FROM:

Ryan Cummins, City Manager

MEETING DATE:

June 4, 2025

SUBJECT:

Fee Schedule Increases

DESCRIPTION: Staff is recommending updates to the fee schedule as follows. Capital Improvement Charge In April 2021, the City agreed in a corrective action plan submitted to the Michigan Department of Environment, Great Lakes, and Energy (EGLE) to submit a Drinking Water Asset Management Plan (AMP) and associated Capital Improvement Plan (CIP) for the water system assets located within our jurisdiction. In September 2023, the City completed the AMP and CIP and City Council approved the submittal of the attached plan to EGLE. A major component of the AMP was a recommendation from consultant, Andy Campbell (formerly Baker Tilly, now Bendzinski & Co.), to implement a water capital improvement charge to provide adequate cash flow to help fund necessary future improvements to water mains and lead service lines. The cost of the future improvements is over $10,000,000. Last year, City Council adopted the recommendation to establish a water infrastructure charge of $20 per month per meter equivalent unit (MEU). A MEU is a water customer with a 5/8” meter size. For those with larger meter sizes, they pay a higher proportion based on their meter size. The current fee is generating $24,726.67/month, or $296,720.04 a year. This is lower than the AMP projections of $331,680. A recent discovery showed some accounts are being charged for less MEUs than they should be. KLSWA advised this is being corrected for future bills. This should bring revenue closer to the AMP estimate.

The AMP recommends a $3 per month increase for FY 25/26 which was estimated to bring in an additional $49,752 in revenue. The following chart summarizes the proposed charge and percentage of customers impacted: Meter Size

Meter Equivalent (per KLSWA)

Customers with this Meter Size

5/8” 1” 1 ½” 2” 3”

1 2.5 5 8 15

84.5% 11.3% 1.2% 1.8% .1%

Current Water Capital Improvement Charge (per month) $20 $50 $100 $160 $300

Proposed Water Capital Improvement Charge (per month) $23 $57.50 $115 $184 $345

Short-Term Rental Fees Last year, City Council established fees to cover the costs of short-term rental licenses and reinspections. The Fire Department is raising the cost of short-term rental inspections and reinspections by $25. After evaluating staff time, inspection and enforcement costs and legal fees associated with short-term rentals, I am recommending the following: • •

Annual license fee increase from $525 to $540 Re-inspection fee increase from $150 to $175.

LEGAL REVIEW: The City Attorney previously reviewed these types of charges and fees. The City Attorney will be at your meeting for any questions. SAMPLE MOTION: Motion to approve Resolution No. 250604-B approving a change in the City’s schedule of fees to increase the water capital improvement charge and approve Resolution No. 250604-C approving a change in the City’s schedule of fees to increase the short-term rental license and reinspection fees.

 Page 2

CITY OF SAUGATUCK COUNTY OF ALLEGAN STATE OF MICHIGAN RESOLUTION NO. 250604-B A RESOLUTION APPROVING A CHANGE IN THE CITY’S SCHEDULE OF FEES Council Member ___________________, offered the following resolution and moved for its adoption, seconded by Council Member ____________________: WHEREAS, the City of Saugatuck amended its Code of Ordinances to authorize the assessment of a water capital improvement charge, billable monthly to all users of the water system, to finance necessary capital improvements of City-owned water system assets; and WHEREAS, the Code of Ordinances provides that the City Council shall establish the amount of the water improvement charge by resolution and include the same in the City’s Schedule of Fees; and WHEREAS, based on the City’s water system asset management plan, water system capital improvement plan and other matters of record presented to it, the City Council previously established a water capital improvement charge at a rate of $20 per meter equivalent unit per month; and WHEREAS, City’s water system asset management plan, water system capital improvement plan, and other matters of record presented to it, call for annual increases of $3 per meter equivalent per month. NOW, THEREFORE, IT IS RESOLVED THAT: 1. The City Council hereby approves a change in the City’s adopted Schedule of Fees to update the “Water Capital Improvement Charge”, effective July 1, 2025:

Meter Size 5/8” 1” 1½” 2” 3”

WATER CAPITAL IMPROVEMENT CHARGE Meter Equivalent Current New Unit Capital Improvement Charge Capital Improvement Charge 1 $20/mo $23/mo 2.5 $50/mo $57.50/mo 5 $100/mo $115/mo 8 $160/mo $184/mo 15 $300/mo $345/mo

2. The City Manager and City Clerk are authorized to take all actions necessary to effectuate the terms of the Resolution including, without limitation, modifying the City’s adopted Schedule of Fees maintained at City Hall. 3. All resolutions and parts of resolutions that conflict with the provisions of this Resolution are hereby rescinded; provided, however, that the remainder of the City’s Schedule of Fees shall remain in full force and effect. YEAS: Council Members:

NAYS: Council Members: ABSTAIN: Council Members: ABSENT: Council Members: ADOPTED this ____ day of _____, 2025. Signed:

______________________________ Holly Anderson, Mayor ______________________________ Jamie Wolters, City Clerk

CERTIFICATION I, Jamie Wolters, the duly appointed clerk of the City of Saugatuck do hereby certify the foregoing is a true and complete copy of a resolution adopted by the Saugatuck City Council at a regular meeting held ________, 2025, in compliance with the Open Meetings Act, Act No. 267 of the Public Acts of Michigan, 1976, as amended, the minutes of the meeting were kept and will be or have been made available as required by said Act.

Jamie Wolters, City Clerk

______

CITY OF SAUGATUCK COUNTY OF ALLEGAN STATE OF MICHIGAN RESOLUTION NO.250604-C A RESOLUTION APPROVING A CHANGE IN THE CITY’S SCHEDULE OF FEES Council Member ___________________, offered the following resolution and moved for its adoption, seconded by Council Member ____________________: WHEREAS, the City of Saugatuck, acting through the City Council, is authorized by various ordinances and state law to set fees for the provision of permits, etc.; and WHEREAS, the City Council adopts and establishes such fees from time to time by resolution; and WHEREAS, based on matters of record presented to it, the City Council is of the opinion that certain City-imposed fees and charges need to be approved and incorporated into the City’s Schedule of Fees. NOW, THEREFORE, IT IS RESOLVED THAT: 1. The City Council hereby approves a change in the City’s adopted Scheduled of Fees as follows: Business Licenses Short-Term Rental Short-Term Rental Reinspection Fee

Current Fee $525/annually $150

New Fee $540/annually $175

2. The City Manager and City Clerk are authorized to take all actions necessary to effectuate the terms of the Resolution including, without limitation, modifying the City’s adopted Schedule of Fees maintained at City Hall. 3. All resolutions and parts of resolutions that conflict with the provisions of this Resolution are rescinded. YEAS: Council Members: NAYS: Council Members: ABSTAIN: Council Members: ABSENT: Council Members: ADOPTED this _____ day of ________, 2025

CITY OF SAUGATUCK BY: BY:

Holly Anderson, Mayor Jamie Wolters, City Clerk

CERTIFICATION I, Jamie Wolters, the duly appointed clerk of the City of Saugatuck do hereby certify the foregoing is a true and complete copy of a resolution adopted by the City Council at a regular meeting held _______, 2025. Signed: ____________________________ Jamie Wolters, City Clerk

September 21, 2023 City of Saugatuck 102 Butler St. PO Box 86 Saugatuck, MI 49453

Baker Tilly Municipal Advisors, LLC 2852 Eyde Pkwy, Suite 150 East Lansing, MI 48823 (517) 321-0110 bakertilly.com

Re: City of Saugatuck (Michigan) Water Asset Management Plan Dear City of Saugatuck: The attached schedules (listed below) present unaudited and limited information for the purpose of discussion and consideration in the preliminary planning stage of a rate study by the appropriate officers, officials and advisors of the City of Saugatuck. The use of these schedules should be restricted to this purpose, for internal use only, as the information is subject to future revision and final report. Page 1 2 3 4 5 6 7

Comparative Statement of Net Position Comparative Statement of Revenues, Expenses, and Changes in Net Position Comparative Detail of Operating Expenses Schedule of Estimated Capital Improvements – Scenario One Cash Flow Analysis – Scenario One Schedule of Estimated Capital Improvements – Scenario Two Cash Flow Analysis – Scenario Two

We would appreciate your questions or comments on this information and would provide additional information upon request.

Sincerely, BAKER TILLY MUNICIPAL ADVISORS, LLC Andy Campbell, CPA, Director

CITY OF SAUGATUCK (MICHIGAN) WATER FUND COMPARATIVE STATEMENT OF NET POSITION

As Of 6/30/2020 6/30/2021 6/30/2022 (----------------------Per Audit----------------------) Assets Cash and cash equivalents Investments

$464,503 193,702

$381,884 168,885

$318,985 169,296

Total Assets

$658,205

$550,769

$488,281

Liabilities Accounts payable

$127,735

Fund Balances Public Works

530,470

$550,769

$488,281

$658,205

$550,769

$488,281

Total Liabilities and Fund Balances

CITY OF SAUGATUCK (MICHIGAN) WATER FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

Fiscal Year Ended 6/30/2020 6/30/2021 6/30/2022 (----------------------Per Audit----------------------) Operating Revenues Charges for services Interest and rents Total operating revenues

$8,450 15,468 23,918

$19,810 1,489 21,299

$29,650 306 29,956

Operating Expenses Public Works

41,566

1,000

92,444

(17,648)

20,299

(62,488)

Fund balance, beginning of year

548,118

530,470

550,769

Fund balance, end of year

$530,470

$550,769

$488,281

Net operating income (loss)

CITY OF SAUGATUCK (MICHIGAN) WATER FUND COMPARATIVE DETAIL OF OPERATING EXPENSES

Fiscal Year Ended 6/30/2022 6/30/2023 6/30/2024 (--------------------Per Client--------------------) Expenditures 801.000 Contractual Services Salaries, Wages, & Benefits Total Water Operating Expenses

Test Year

$92,444 -

$5,000 -

$10,000

$92,444

$5,000

$10,000

Multiplier

3.0% 3.0%

CITY OF SAUGATUCK (MICHIGAN) WATER FUND SCHEDULE OF ESTIMATED CAPITAL IMPROVEMENTS - SCENARIO ONE

Project Name/Description

2023/24

Complete Distribution System Materials Inventory Lead Service Line Replacement - Systemwide Wellhouse #5 Improvements Install Permanent Generator for Wells #4 & #5 Maple Street Water Service Separation (720/ Olde Mill) Maple Street Water Main Replacement - Blue Star to S of North Elizabeth Street Water Main Replacement - Allegan to Main Lucy Street Water Main Replacement - Water to Butler Hoffman Street Water Main Replacement - Griffith to Grand Butler Street Water Main Replacement - Culver to Lucy Grand Street Water Main Replacement - Mason to Hoffman & Francis to St. Joseph Water Main Replacement/Looping in Well Field, Maple to High School River Crossing Water Main Replacement - Park to Water Bridge Street Water Main Extension Total Estimated Capital Improvements:

$150,000 500,000 20,000 10,000 115,000 35,000 15,000 20,000 100,000 20,000 35,000 85,000

2025/26

2026/27

$5,000,000 200,000 100,000 30,000 1,150,000 350,000 150,000 200,000 1,000,000 200,000 350,000 850,000 $600,000

$1,105,000

Cash Funded: Bond Funded:

2024/25

$150,000 -

$9,580,000

$600,000

$30,000 10,505,000 [1]

$600,000 [2]

[1] Includes 2023/24 & 2024/25 capital improvements. [2] Includes 2026/27 capital improvements.

CITY OF SAUGATUCK (MICHIGAN) WATER FUND CASH FLOW ANALYSIS - SCENARIO ONE 2023/24 July - Dec. Jan. - June

2024/25

2025/26

2026/27

2027/28

Increases Per Year

Assumptions Meter Equivalent Units (MEU) Billed MEU Charge (monthly)

1,382 $0.00

1,382 $23.00

$25.40 $25.40

Revenue MEU Charge Miscellaneous Total Revenues

2028/29

2029/30

1,382 $36.00

1,382 $37.00

Increases Per Year 1,382 $26.00

1,382 $29.00

1,382 $32.00

1,382 $35.00

$23.00 25.40 $48.40

$26.00 26.16 $52.16

$29.00 26.95 $55.95

$32.00 27.76 $59.76

$35.00 28.59 $63.59

$36.00 29.45 $65.45

$37.00 30.33 $67.33

$3,000 3,000

$190,716 190,716

$431,184 3,000 434,184

$480,936 3,000 483,936

$530,688 3,000 533,688

$580,440 3,000 583,440

$597,024 3,000 600,024

$613,608 3,000 616,608

Less: Total Operating Expenditures

(5,000)

(10,300)

(10,609)

(10,927)

(11,255)

(11,593)

(11,941)

Net Operating Revenue

(2,000)

190,716

423,884

473,327

522,761

572,185

588,431

604,667

Less: Estimated Cash-Funded Capital Improvements Estimated Debt Service #1 2024/25 State Revolving Fund Bonds [1] Estimated Debt Service #2 2026/27 Open Market Bonds [2]

(150,000) -

(30,000) (100,000) -

(430,000) -

(430,000) (15,000)

(430,000) (80,000)

(430,000) (80,000)

(430,000) (80,000)

Net Cash Flow

($152,000)

$190,716

$293,884

$43,327

$77,761

$62,185

$78,431

$94,667

$108,957

$299,673

$593,557

$636,884

$714,644

$776,829

$855,260

$949,928

Typical homeowner's monthly bill Charges from City Charges from KLSWA Typical homeowner's monthly bill (assumes 4,500 gallons/month)

Cash & Investments

$260,957

$3.00

$1.00

[1] Estimated debt service payments based on $9,454,500 30-year state revolving fund bond issue at an estimated interest rate. Total project assumed to be $10,505,000 with $1,050,500 grant. [2] Estimated debt service payments based on $600,000 10-year open market bond issue at an estimated interest rate.

CITY OF SAUGATUCK (MICHIGAN) WATER FUND SCHEDULE OF ESTIMATED CAPITAL IMPROVEMENTS - SCENARIO TWO

Project Name/Description

2023/24

2024/25

2025/26

2026/27

Complete Distribution System Materials Inventory Lead Service Line Replacement - Systemwide Wellhouse #5 Improvements Install Permanent Generator for Wells #4 & #5 Maple Street Water Service Separation (720/ Olde Mill) Maple Street Water Main Replacement - Blue Star to S of North Elizabeth Street Water Main Replacement - Allegan to Main Lucy Street Water Main Replacement - Water to Butler Hoffman Street Water Main Replacement - Griffith to Grand Butler Street Water Main Replacement - Culver to Lucy Grand Street Water Main Replacement - Mason to Hoffman & Francis to St. Joseph Water Main Replacement/Looping in Well Field, Maple to High School River Crossing Water Main Replacement - Park to Water Bridge Street Water Main Extension

$150,000 100,000

$200,000

$200,000

$5,000,000 220,000 110,000

Total Estimated Capital Improvements:

$250,000

$200,000

$230,000

$10,605,000

Cash Funded: Bond Funded:

$250,000 -

$200,000 -

$230,000 -

$10,605,000 [1]

30,000 1,265,000 385,000 165,000 220,000 1,100,000 220,000 385,000 935,000 600,000

[1] Includes 2026/27capital improvements.

CITY OF SAUGATUCK (MICHIGAN) WATER FUND CASH FLOW ANALYSIS - SCENARIO TWO 2023/24 July - Dec. Jan. - June

2024/25

2025/26

2026/27

2027/28

2028/29

2029/30

1,382 $23.00

1,382 $26.00

1,382 $29.00

1,382 $32.00

1,382 $35.00

1,382 $38.00

Increases Per Year

Assumptions Meter Equivalent Units (MEU) Billed MEU Charge (monthly)

1,382 $0.00

1,382 $20.00

$25.40 $25.40

$20.00 25.40 $45.40

$23.00 26.16 $49.16

$26.00 26.95 $52.95

$29.00 27.76 $56.76

$32.00 28.59 $60.59

$35.00 29.45 $64.45

$38.00 30.33 $68.33

Revenue MEU Charge Miscellaneous Total Revenues

$3,000 3,000

$165,840 165,840

$381,432 3,000 384,432

$431,184 3,000 434,184

$480,936 3,000 483,936

$530,688 3,000 533,688

$580,440 3,000 583,440

$630,192 3,000 633,192

Less: Total Operating Expenditures

(5,000)

(10,300)

(10,609)

(10,927)

(11,255)

(11,593)

(11,941)

Net Operating Revenue

(2,000)

165,840

374,132

423,575

473,009

522,433

571,847

621,251

(250,000) -

(200,000) -

(230,000) -

(160,000)

(540,000)

(540,000)

(540,000)

($2,000)

($84,160)

$174,132

$193,575

$313,009

($17,567)

$31,847

$81,251

$258,957

$174,797

$348,929

$542,504

$855,512

$837,945

$869,792

$951,044

Typical homeowner's monthly bill Charges from City Charges from KLSWA Typical homeowner's monthly bill (assumes 4,500 gallons/month)

Less: Estimated Cash-Funded Capital Improvements Estimated Debt Service #1 2026/27 State Revolving Fund Bonds [1] Net Cash Flow Cash & Investments

$260,957

$3.00

[1] Estimated debt service payments based on $10,605,000 30-year state revolving fund bond issue at an estimated interest rate.

CITY OF SAUGATUCK ALLEGAN COUNTY, MI

DRINKING WATER ASSET MANAGEMENT PLAN

September 2023 Project No. 862350

City of Saugatuck | Water Asset Management Plan | September 2023

ASSET MANAGEMENT TEAM Utility Information Utility Name: Street Address: City: Zip Code: Phone Number: WSSN:

Saugatuck Water Utility System 102 Butler St Saugatuck 49453 (269) 857-2603 03525

Number of Connections:

Personnel City of Saugatuck Contact Person: Title: Email:

Scott Herbert Superintendent, Department of Public Works scott@saugatuckcity.com

Team Member: Title: Email:

Ryan Heise City Manager ryan@saugatuckcity.com

Kalamazoo Lake Sewer & Water Authority Contact Person: Daryl VanDyke Title: Manager, Kalamazoo Lake Sewer & Water Authority Email: daryl@klswa.com Fleis & VandenBrink Contact Person: Title: Email:

Jon Moxey, PE Client Manager jmoxey@fveng.com

Team Member: Title: Email:

Elaine Venema, PE Project Manager evenema@fveng.com

Team Member: Title: Email:

Peter Drogosh, PE Project Engineer pdrogosh@fveng.com

862350 Saugatuck Water AMP

City of Saugatuck | Water Asset Management Plan | September 2023

TABLE OF CONTENTS I. Background ................................................................................................................................................ 1 II. Asset Inventory ......................................................................................................................................... 2 III. Criticality Assessment .............................................................................................................................. 2 IV. Level of Service Goals ............................................................................................................................. 4 V. Capital Improvements Plan ...................................................................................................................... 6 VI. Revenue Structure & Rate Methodology ................................................................................................. 7

Appendix A: Figures Appendix B: Asset Inventory Appendix C: Capital Improvements Plan Appendix D: Water System Budget Appendix E: Billing Rate Structure

862350 Saugatuck Water AMP

City of Saugatuck | Water Asset Management Plan | September 2023

I. BACKGROUND A. SERVICE AREA The City of Saugatuck (City) is located in western Allegan County on Lake Michigan and has an area of 1.77 square miles. Saugatuck is located 11 miles southwest of the City of Holland and 18 miles north of the City of South Haven. As of the 2020 U.S. Census, Saugatuck has a permanent population of 865, though the City and other surrounding municipalities see a large increase in seasonal population during the summer months. According to the City’s 2019 Parks & Recreation Plan, a seasonal influx of cottage owners, visitors, and boaters is estimated to virtually double the region’s population. The City of Saugatuck, the City of the Village of Douglas, and Saugatuck Township are Constituent Municipalities of the Kalamazoo Lake Sewer & Water Authority (KLSWA). KLSWA provides sanitary sewer and water service within the three Constituent Municipalities, as well as within Laketown Township. Laketown Township receives service through various contractual arrangements, but is not a Constituent Municipality of KLSWA under Act 233 and KLSWA’s Articles of Incorporation.

B. PURPOSE In a letter dated January 11, 2021 addressed to KLSWA and the managers of the Constituent Municipalities, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) outlined deficiencies identified in a Partial Sanitary Survey of the KLSWA water system. The following is an excerpt from the letter: EGLE’s evaluation of KLSWA has revealed issues with ownership accountability, defined authority between owners and managers/operators, and fiscal management and revenue sourcing. EGLE understands that KLSWA operates and maintains the water supply facilities, and the individual units of government have retained ownership of the water supply facilities within their jurisdictional boundaries. Therefore, the owner of the water supply facilities is not maintaining their own facilities; KLSWA is serving as a contract operator with additional authority to make operation and maintenance decisions and repairs. This agreement only establishes authority for daily operations and maintenance of facilities, and does not include a structure for capital improvements, long term asset management, authority for cross connection inspections, or other items necessary for the long term management of a water supply. In a Corrective Action Plan dated April 27, 2021 addressed to EGLE, KLSWA and the managers of the Constituent Municipalities elected to develop, adopt, and implement a new water service agreement between KLSWA and the Constituent Municipalities. Additionally, each Constituent Municipality would prepare and submit an Asset Management Plan (AMP) and associated Capital Improvements Plan (CIP) for the water system assets located within their jurisdictional boundary. The purpose of this report is to provide the City of Saugatuck with an AMP and associated CIP for the water system assets located within its jurisdictional boundary, to comply with EGLE and the Michigan Safe Drinking Water Act (Act 399 of 1976). Rule 1606 of Act 399 (R 325.11606) states that a community water supply that serves more than 1,000 people shall implement an asset management program (as defined in R 325.10102). The intent of asset management is to ensure the long-term sustainability of the water utility by helping the utility manager make informed decisions on when it is most appropriate to repair, replace, or rehabilitate particular assets and by developing a long-term funding strategy. This report is intended to be the master plan for guiding the City on the overall water system improvements needed to ensure its ability to perpetually deliver the required level of service.

862350 Saugatuck Water AMP

City of Saugatuck | Water Asset Management Plan | September 2023

II. ASSET INVENTORY Saugatuck’s publicly owned water system assets consist of two groundwater production wells, approximately 13 miles of water main, and a concrete ground storage reservoir; the City shares equal ownership of the reservoir with the City of the Village of Douglas. A map of the system is provided as Figure 1 in Appendix A. Well #4 is rated for a capacity of 500 gpm, Well #5 is rated for 300 gpm, and together they produce between 51 and 64 million gallons of water annually. Water treatment at the wells consists of injection of chlorine for disinfection and polyphosphate for iron sequestration. The wells are housed in two separate buildings. Water mains range from 4” to 16” in diameter and are composed of cast iron, ductile iron, and HDPE. The oldest water mains pre-date 1927, and were constructed as part of the original distribution system. Throughout the system, there are 134 fire hydrants with valves and approximately 162 water main isolation valves. The storage reservoir has a capacity of 1,000,000 gallons and is the only storage available for Saugatuck, as well as the greater KLSWA water system. The water asset inventory is presented in Appendix B and provides asset descriptions, year installed, location, manufacturer (where applicable), replacement cost, useful life, and criticality assessment. All information in the asset inventory is based on construction record drawings and other data received from the City and KLSWA. Not all assets had record drawings available, so their construction dates are either unknown or approximated based on record drawings from adjacent projects. There is currently a Geographic Information System (GIS) in place for refining the inventory as assets are replaced and further documented.

III. CRITICALITY ASSESSMENT The criticality of each water system asset is based on a combination of its Probability of Failure and its Consequence of Failure. Determining each asset’s criticality allows the City to manage its risk and aids in determining where to spend operation and maintenance dollars and plan capital expenditures. When determining an asset’s Probability of Failure, the following factors are considered: asset age, physical condition of asset, failure history, historical knowledge, experiences with that type of asset in general, maintenance records, and knowledge regarding how that type of asset is likely to fail. The table below details the Probability of Failure rating system. These ratings have been applied to each asset listed in the asset inventory in Appendix B. Probability of Failure Rating

Probability

Imminent

Will occur several times in the life of an item

Probable

Likely to occur several times in the life of an item

Occasional

Likely to occur sometime in the life of an item

Remote

Unlikely, but possible to occur in the life of an item

Improbable

So unlikely, it can be assumed occurrence may not be experienced

862350 Saugatuck Water AMP

Description

City of Saugatuck | Water Asset Management Plan | September 2023

When determining an asset’s Consequence of Failure, the following factors are considered: cost of repair; social cost associated with the loss of the asset; repair/replacement costs related to collateral damage caused by the failure; legal costs related to additional damage caused by the failure; environmental costs created by the failure; loss of business revenue to the community; and any other associated costs or asset losses. The Consequence of Failure can be high if any one of these costs is significant or the accumulation of several costs occur with a failure. Other considerations when determining an asset’s Consequence of Failure may include the following: • • • •

Can the system continue to produce an acceptable quantity and quality of water if asset fails? Is there redundancy for the asset built into the system? Are replacements / replacement parts on hand to replace/repair the asset on site? How long does it take to obtain parts or have service completed?

The table below details the Consequence of Failure rating system. These ratings have been applied to each asset listed in the asset inventory in Appendix B. Consequence of Failure Rating

Consequence

Description

Catastrophic disruption

Massive system failure, severe health effects and death, persistent and extensive damage

Major disruption

Major effect, major loss of system capacity, major health effects, major costs, important LOS compromised

Moderate disruption

Moderate effect, moderate loss of system capacity, moderate health effects, moderate costs, important LOS still achieved

Minor disruption

Minor effect, minor loss of system capacity, minor health effects, minor costs

Insignificant disruption

Slight effect, slight loss of system capacity, slight health effects

Assessing an asset’s criticality requires an examination of its Probability of Failure and its Consequence of Failure as discussed above. The assets that have the greatest probability of failure and the greatest consequences associated with the failure will be the assets that are the most critical and, therefore, present the greatest business risk to the City. An analysis of each asset reveals which assets have the highest criticality factors and, therefore, which assets require the most attention either for repair or replacement. The following formula is used to determine an asset’s criticality: Criticality Factor = Probably of Failure × Consequence of Failure The matrix below presents the various possible criticality factors, which are color coded based on their associated business risk. These factors have been applied to each asset listed in the asset inventory in Appendix B.

862350 Saugatuck Water AMP

City of Saugatuck | Water Asset Management Plan | September 2023

Probability of Failure

Criticality Factor 5

Consequence of Failure Assets with higher criticality factors and associated business risk should be more closely monitored and scheduled for rehabilitation or replacement. The table below provides recommended inspection and rehabilitation strategies based on an asset’s business risk. Business Risk Management Criticality Factor

Business Risk

Strategies for Asset Rehabilitation or Replacement

17 - 25

Very High

Inspect immediately and replace in 1-2 years

10 - 16

High

Inspect immediately and develop shortto medium-term rehabilitation plan

5-9

Medium

Inspect immediately and develop long-term rehabilitation plan

3-4

Low

Develop short-term inspection strategy and long-term rehabilitation plan

1-2

Very Low

Develop mediumto long-term inspection strategy and long-term rehabilitation plan

IV. LEVEL OF SERVICE GOALS The City of Saugatuck’s mission, as it relates to the water system, is to provide the community with continuous, safe drinking water and adequate fire protection that meets or exceeds Federal and State requirements by maintaining and improving the water system through the most cost-effective means without sacrificing quality. The Asset Management Team (F&V and City staff) reviewed the City’s Level of Service (LOS) goals to ensure they aligned with the City’s standards and capabilities; the goals are detailed in the table below. The goals will be reviewed on an annual basis to determine if the City was successful in achieving the goals and what steps can be taken to improve the City’s performance.

862350 Saugatuck Water AMP

City of Saugatuck | Water Asset Management Plan | September 2023

LOS Determinant

Define the Goal

How the Goal is Achieved

Safe Drinking Water

Meet all Federal and State water quality regulations

Monitor water quality: monthly for bacteria, annually for partial chemical, and triennially for metals.

Health & Safety

Provide a safe and injury-free workplace

Conduct regular safety meetings. Incur no MIOSHA safety violations.

Security Operator Certification

Secure all water installations from tampering Retain certified personnel to operate and maintain the system

Customer Complaints

Provide excellent customer service

Regulatory Changes

Be aware of regulatory changes and comply with changes as they occur

Response Time

Provide excellent customer service

Maintain well-lit, fenced and/or locked facilities with proper signage. Employ at least 1 operator in charge and 1 backup operator. Operators must maintain a minimum of D-2 and S-2 licenses. Investigate all customer complaints within 2 business days of report. Report results of the complaint to customer verbally, via the phone, in person, or in writing. Follow up on all complaints to ensure customer satisfaction. Attend industry conferences and training sessions to stay informed of changes and requirements. Request annual meeting with local EGLE representative to ensure compliance. Respond to customer emergencies within 2 hours. Provide customers with written notice 24 hours in advance of any planned interruption in service. Evaluate water rates every 5 years and adjust the rates/budget accordingly. Seek external funding for major projects as they present themselves. Maintain an operating reserve of 10%. Have wells and pumps professionally inspected annually, then complete recommended maintenance items. Regularly test and perform maintenance on backup power generators. Maintain well houses in adequate condition.

Financial

Maintain funds to address unexpected breakdowns and major expenses

Water Supply

Maintain all well-related equipment

Water Quality

Provide high-quality, good-tasting drinking water

Water Storage

Maintain storage tank for longer lifespan

Water Distribution

Maintain water mains, hydrants, and valves to ensure good working order

Administrative

Ensure accurate billing

Review discrepancies and correct in a timely fashion.

Rules & Regulations

Monitor and enforce

Update and review rules annually - cross connections, site sampling plan, required lab analysis, consumer confidence report, safety program.

862350 Saugatuck Water AMP

Maintain water treatment equipment. Flush water mains at least once annually. Have the storage tank professionally inspected every 5 years, then complete recommended maintenance items. Flush all hydrants at least once annually. Exercise all primary valves on a 4-year rotation. Maintain system pressure above 35 psi, but strive for 60-80 psi under normal conditions. Monitor water losses annually and maintain below 10%.

City of Saugatuck | Water Asset Management Plan | September 2023

V. CAPITAL IMPROVEMENTS PLAN A Capital Improvements Plan (CIP) was developed for the City of Saugatuck based on the Water System Reliability Study (WSRS) completed for KLSWA in February 2021 by Fleis & VandenBrink. Some items have been refined as better information has become available since then. The CIP is summarized below and a complete table of capital improvements, including anticipated costs and dates of completion, is presented in Appendix C. A map of the proposed improvements is provided as Figure 2 in Appendix A.

A. WATER SUPPLY According to the WSRS, the system’s water supply capacity is sufficient to meet projected water demands. The City’s well pumps were last inspected in November 2019 by Peerless Midwest and were found to be operating at their rated capacities. No improvements to the well pumps are recommended at this time. Well 5 is housed in a building that is constructed of sheet metal, which is in fair to poor condition. The wellhouse should be replaced with an appropriate block/brick building to provide better protection and security for Well 5. Additionally, the underground electric line that serves Wells 4 and 5 is not well protected and needs to be replaced with additional protection against potential damage or tampering. It is also recommended that the City install a permanent generator to power Wells 4 and 5 in the event of a power outage.

B. WATER STORAGE The storage tank was last inspected in October 2019 by Dixon Engineering and was found to be in good overall condition. No improvements to the tank are recommended at this time.

C. WATER DISTRIBUTION EGLE requires all water supplies to submit a complete Distribution System Materials Inventory (DSMI) by January 1, 2025. The DSMI involves physically verifying the material of a uniformly random, statistically sound number (20%) of service lines of unknown material. Due to the prevalence of known lead service lines throughout Saugatuck’s system, it is recommended that the City verify at least 50% of its 229 service lines of unknown material, which equates to 115 service line verifications. Once lead service lines throughout the system are confidently located, they must all be replaced by January 1, 2041. Distribution system improvements are recommended to improve available fire flows and overall system reliability. These improvements should be considered and implemented by City officials as deemed necessary and as funding allows. The City should plan on replacing any water mains smaller than 6 inches as road improvements are conducted in the service area. These pipes should be replaced with minimum 8-inch pipes. Anticipated project costs are meant to be rough estimates for budgeting purposes only. Unit prices were assumed at $385 per foot of 8” water main, $410 per foot of 12” water main, and $1,000 per foot of 16” water main (directional drill river crossing). Unit prices were based on recent contractor bid prices from similar projects designed by Fleis & VandenBrink. The unit price of water main includes the cost of appurtenances (hydrants, valves, fittings, etc.) and surface restoration, assuming a worst case scenario of the water main being installed along the centerline of the roadway, requiring two lanes of road pavement restoration.

D. FUNDING SOURCES Four possible sources of funding have been identified for The City of Saugatuck to complete the capital improvement projects if desired. A brief description of each follows: Drinking Water State Revolving Fund This is a preferred alternative. It is a low interest loan program sponsored by EGLE. The current interest rate is 1.875% for 20-year loans (or 30to 40-year loans for overburdened applicants), and 2.125% for 30-year loans. Some communities may be eligible for principal forgiveness based on their overburdened status.

862350 Saugatuck Water AMP

City of Saugatuck | Water Asset Management Plan | September 2023

The program is competitive, and projects are scored on a point system that ranks them on a priority list. Not all submitted projects are funded, so it is important to maximize points on the application. Requirements include a fairly extensive project plan, but most expenses, including the project plan, are eligible activities that can be rolled into the loan. In order for a community to be competitive, they should have an active Source Water Protection Program. Applications are submitted by June 1st of every year. Special Assessment Bonds Special assessments levied under PA 188 of 1954 are one of the most common ways to finance infrastructure improvements. The City may levy special assessments against properties that receive special benefits from a public improvement. Property owners have petition rights that must be satisfied before the special assessment can go forward. Special assessments typically can be repaid in installments with interest. The bonds may not exceed the amount of the special assessment roll and may be secured secondarily by a pledge of the City’s full faith and credit. Revenue Bonds Revenue bonds are authorized by PA 94 of 1933. They authorize the City to borrow money and issue bonds. They are paid from user fees generated by the operation of the improvements. Revenue bonds are subject to the right of referendum. Petitions for a public vote can be filed by registered City voters during a 45-day referendum period. Voter approval is not required if the referendum period expires without petitions being filed. Contract Bonds Contract bonds are authorized by several state laws. They authorize the City to enter into an agreement with the County or a public authority in order to have the County or authority issue bonds on behalf of the City. The City may want to consider a contract bond as the County may be able to borrow at a more favorable rate than the City if they are willing to pledge its taxing power as secondary security for repayment of the bonds. Also contract bonds may be paid back by a number of sources including specials assessments, connection fees, and user fees.

VI. REVENUE STRUCTURE & RATE METHODOLOGY Saugatuck’s financial advisor incorporated the CIP into the City’s water system budget and determined the adjustments to the billing rate structure that will be required to generate sufficient revenue for implementing the CIP. The City has provided its water system budget in Appendix D and its current rate structure in Appendix E.

862350 Saugatuck Water AMP

APPENDIX A: FIGURES

ST.

MASON ST. 2

CULVER ST.

PLE

LA

KE

BAYVIEW HILLCREST RD.

AS

AN

ST

KALAMAZOO LAKE

MCVEA DR.

T. S TE A T S

HARBOR CT.

FIGURE 1: EXISTING WATER SYSTEM

ALLEGAN COUNTY, MICHIGAN

CITY OF SAUGATUCK

LANE GASLIGHT

I-196

HERON BAY R

IDG

N BA O Y R E D H R

HAMILTON S

PE HARBORVIEW DR. TE RS OUTLOOK DR DR. .

LAWN AVE. CHESTNUT ST. PRING ST.

BARRE ST.

ELMER ST.

ST . AMILTON ST.

WEST

WILD-

N. T L

T S

BRADLEY RD.

. DR RE HO ES LA K

TN U ES

ST.

ALLEGAN

MAPLE ST.

INTERLAKEN DR.

ST.

DS

OLD

GE

WELL #4 504 GPM WELL #5 296 GPM

4" WATER MAIN 6" WATER MAIN 8" WATER MAIN 10" WATER MAIN 12" WATER MAIN 16" WATER MAIN FIRE HYDRANT

CITY OF SAUGATUCK WELLS

WATER ASSET MANAGEMENT PLAN

MASON

BRID

WOOD LN.

E R WO O HO

HIGHWAY STAR

ST.

CITY OF DOUGLAS

WESTSHORE ST.

SINGAPORE TRAILS DR.

LEGEND

ST.

HOFFMAN

66TH ST.

1. WEST ST. 2. EAST ST. 3. TAKKEN ST. 4. TAYLOR ST.

ST.

MAIN

GRIFFITH

BUTLER

ELIZABETH ST.

GRAND ST.

MARY ST.

ST.

CAMPBELL RD.

GOLFVIEW DR.

MAPLE ST.

SIMONSON DR.

BLUE

ST .

PARK S TR EE T

WEIRICH DR.

MANCHESTER LN.

DR . D OO

HERBERT ST.

M STILL .

FRANCIS ST.

BLISS ST.

EW

ELIZABETH ST.

ST. JOSEPH ST.

ST.

PERRYMAN ST.

OR

GR A ST NT .

LL AN H O WATER ST.

VAN DALSON ST.

VINE

BROOK ST.

LUCY ST. SPEAR ST.

SH

AM

KAL

PAR K DR. OVA L

CITY OF SAUGATUCK

NEWNHAM ST.

134TH

862350

M:\Proj861001-863000\862350 Saugatuck - Water AMP\Cad\Fig\Figure 1.dwg

NORTH ST.

F&V PROJECT NO.

1.0 MG GROUND STORAGE TANK

WELL #6 376 GPM WELL #7 680 GPM

ELIZABETH ST.

WATER ST. WALL ST.

CITY OF DOUGLAS WELLS WELL #1 408 GPM

NORTH 112

CULVER ST.

KE

BAYVIEW HILLCREST RD.

PLE

LA

AS

AN

ST

KALAMAZOO LAKE

MCVEA DR.

T. S TE A T S

HERON BAY R

HARBOR CT.

IDG

N BA O Y R E D H R

FIGURE 2: PROPOSED IMPROVEMENTS

ALLEGAN COUNTY, MICHIGAN

CITY OF SAUGATUCK

LANE GASLIGHT

HAMILTON S

PE HARBORVIEW DR. TE RS OUTLOOK DR DR. .

LAWN AVE. CHESTNUT ST. PRING ST.

BARRE ST.

ELMER ST.

ST . AMILTON ST.

WEST

WILD-

N. T L

I-196 BRADLEY RD.

. DR RE HO ES LA K

TN U

T S

ST.

ES

ST.

ALLEGAN

MAPLE ST.

INTERLAKEN DR.

DS

OLD

PROPOSED WATER MAIN REPLACEMENT

LEGEND

MASON ST.

WELL #4 504 GPM WELL #5 296 GPM

WATER ASSET MANAGEMENT PLAN

ST.

CITY OF SAUGATUCK WELLS

GE

STAR

MASON

BRID

WOOD LN.

E R WO O HO

MAPLE ST.

ST.

BLUE

1. WEST ST. 2. EAST ST. 3. TAKKEN ST. 4. TAYLOR ST.

CITY OF DOUGLAS

WESTSHORE ST.

66TH ST.

8" 8"

12"

HOFFMAN

ELIZABETH ST.

GRAND ST.

ST. GRIFFITH

ST.

MAIN

SINGAPORE TRAILS DR.

WELLHOUSE #5 IMPROVEMENTS

8" ST. BUTLER

ST.

CAMPBELL RD.

GOLFVIEW DR.

SIMONSON DR.

HIGHWAY

ST .

PARK S TR EE T

WEIRICH DR.

MANCHESTER LN.

DR . D OO EW OR

HERBERT ST.

M STILL .

ST. JOSEPH ST.

MARY ST.

BLISS ST. VINE

ELIZABETH ST.

FRANCIS ST.

PERRYMAN ST.

GR A ST NT .

LUCY ST.

WATER ST.

VAN DALSON ST.

BROOK ST.

LL AN H O

16"

SPEAR ST.

SH

AM

KAL

PAR K DR. OVA L

CITY OF SAUGATUCK

NEWNHAM ST.

134TH

862350

M:\Proj861001-863000\862350 Saugatuck - Water AMP\Cad\Fig\Figure 2.dwg

NORTH ST.

F&V PROJECT NO.

1.0 MG GROUND STORAGE TANK

WELL #6 376 GPM WELL #7 680 GPM

ELIZABETH ST.

WATER ST. WALL ST.

CITY OF DOUGLAS WELLS WELL #1 408 GPM

NORTH 113

APPENDIX B: ASSET INVENTORY

Source Assets Year Installed (Year Overhauled)

Location

Latitude

Longitude

1966 1974 1966 1974 1966 (2006) 1974 (2008)

Well #4 Well #5 Well #4 Well #5 Well #4 Well #5

42.658722 42.658500 42.658722 42.658500 42.658722 42.658500

-86.195667 -86.194611 -86.195667 -86.194611 -86.195667 -86.194611

Year Installed

Location

Latitude

Longitude

Manufacturer/Model

2015 2015 2015 2015

Well #4 Well #5 Well #4 Well #5

42.658722 42.658500 42.658722 42.658500

-86.195667 -86.194611 -86.195667 -86.194611

Grundfos DDC 6-10 Grundfos DDC 6-10 Grundfos DDC 6-10 Grundfos DDC 6-10

Storage Assets

Year Installed

Location

Material

Capacity (gal)

Manufacturer

Ground storage tank (shared ownership w/ Douglas)

1984

Park St

concrete

1,000,000

Natgun

Source Assets

Well #4 (12" diameter; 205' deep) Well #5 (12" diameter; 157' deep) Well #4 Wellhouse Well #5 Wellhouse Well #4 Pump (Rated 500 gpm @ 258 ft TDH) Well #5 Pump (Rated 300 gpm @ 261 ft TDH)

Manufacturer/Model

Peerless Peerless

Replacement Cost

Estimated Useful Life in Years

Remaining Useful Life in Years

Percent of Useful Life Remaining

90 90 90 90 20 20

33 41 33 41 3 5

37% 46% 37% 46% 15% 25%

Estimated Useful Life in Years

Remaining Useful Life in Years

Percent of Useful Life Remaining

15 15 15 15

7 7 7 7

47% 47% 47% 47%

Replacement Cost

Estimated Useful Life in Years

Remaining Useful Life in Years

Percent of Useful Life Remaining

$ 3,000,000

57%

150,000 150,000 150,000 150,000 12,000 10,000

Probability Consequence of Criticality of Failure Failure Factor

1 1 1 4 3 3

2 2 1 1 2 2

2 2 1 4 6 6

Treatment Assets Treatment Assets

Chemical feed pump - chlorine Chemical feed pump - chlorine Chemical feed pump - phosphate Chemical feed pump - phosphate

Replacement Cost

2,000 2,000 2,000 2,000

Probability Consequence of Criticality Failure Factor of Failure

2 2 2 2

4 4 4 4

8 8 8 8

Storage Assets Probability Consequence of Criticality of Failure Failure Factor

Distribution Assets Distribution Assets

Water Mains Replacement Cost*: 8" @ $280 per foot 12" @ $300 per foot 16" @ $320 per foot *Assumes all water main less than 8" will be replaced with 8" water main *Assumes all 10" water main will be replaced with 12" water main

Year Installed

Material

Diameter (in)

Total Length (ft)

Unknown Unknown Unknown Pre-1927 Pre-1927 Post-1927 Pre-1979 Pre-1979 Post-1979 Pre-1983 Pre-1983 Post-1984 Pre-2000 Pre-2000 Pre-2005 Pre-2010 1966 1979 1979 1980 1980 1984 1984 1984 1984 1987 1988 1988 1989 1989 1992 1994 1994 1996 1996 2000 2000 2003 2005 2007 2008 2008 2009 2009 2010 2010 2010 2010 2011 2014 2014 2015 2015 2015 2018 2022 2022

Ductile Iron Ductile Iron Ductile Iron Cast Iron Cast Iron Cast Iron Cast Iron Cast Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Cast Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron Ductile Iron HDPE Ductile Iron Ductile Iron Ductile Iron Ductile Iron HDPE HDPE Ductile Iron Ductile Iron Ductile Iron

6 8 10 4 6 4 4 6 6 6 8 6 6 8 8 8 6 6 10 6 8 6 8 12 16 6 6 8 6 8 8 6 8 6 8 6 8 8 8 8 8 12 6 8 6 8 12 8 6 6 8 6 8 10 8 6 8

385 1,038 344 2,355 1,791 198 1,102 4,274 1,140 228 1,245 303 327 618 784 260 1,119 104 5,099 1,033 1,509 455 566 8,186 1,324 3,248 878 736 18 966 489 412 456 753 1,689 85 3,520 651 1,211 730 59 1,063 30 1,456 296 2,980 2,652 916 74 31 513 175 4,540 1,238 394 32 1,072

Manufacturer

Replacement Cost

Estimated Useful Life in Years

Remaining Useful Life in Years

Percent of Useful Life Remaining

$ 108,000 $ 291,000 $ 104,000 $ 660,000 $ 502,000 $ 56,000 $ 309,000 $ 1,197,000 $ 320,000 $ 64,000 $ 349,000 $ 85,000 $ 92,000 $ 174,000 $ 220,000 $ 73,000 $ 314,000 $ 30,000 $ 1,530,000 $ 290,000 $ 423,000 $ 128,000 $ 159,000 $ 2,456,000 $ 424,000 $ 910,000 $ 246,000 $ 207,000 $ 6,000 $ 271,000 $ 137,000 $ 116,000 $ 128,000 $ 211,000 $ 473,000 $ 24,000 $ 986,000 $ 183,000 $ 340,000 $ 205,000 $ 17,000 $ 319,000 $ 9,000 $ 408,000 $ 83,000 $ 835,000 $ 796,000 $ 257,000 $ 21,000 $ 9,000 $ 144,000 $ 49,000 $ 1,272,000 $ 372,000 $ 111,000 $ 9,000 $ 301,000

110 110 110 125 125 125 125 125 110 110 110 110 110 110 110 110 125 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 55 110 110 110 110 55 55 110 110 110

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown 68 66 66 67 67 71 71 71 71 74 75 75 76 76 79 81 81 83 83 87 87 90 92 94 95 95 96 96 97 97 97 42 98 101 101 102 47 47 105 109 109

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown 54% 60% 60% 61% 61% 65% 65% 65% 65% 67% 68% 68% 69% 69% 72% 74% 74% 75% 75% 79% 79% 82% 84% 85% 86% 86% 87% 87% 88% 88% 88% 76% 89% 92% 92% 93% 85% 85% 95% 99% 99%

Probability Consequence of Criticality Failure Factor of Failure

2 2 2 5 5 4 3 3 2 2 2 2 2 2 1 1 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1

1 2 2 1 1 1 1 1 1 1 2 1 1 2 2 2 1 1 2 1 2 1 2 3 3 1 1 2 1 2 2 1 2 1 2 1 2 2 2 2 2 3 1 2 1 2 3 2 1 1 2 1 2 2 2 1 2

2 4 4 5 5 4 3 3 2 2 4 2 2 4 2 2 3 2 4 2 4 2 4 6 6 2 2 4 2 4 4 2 4 2 4 2 4 2 2 2 2 3 1 2 1 2 3 4 1 1 2 1 2 2 2 1 2

Distribution Assets Distribution Assets

Year Installed

Hydrants Replacement Cost: $3,000 each

Unknown Pre-1927 Pre-1979 Post-1979 Pre-1983 Post-1984 Pre-2005 Pre-2010 1979 1980 1984 1987 1988 1989 1994 1996 2000 2003 2005 2007 2008 2009 2010 2011 2014 2015 2022

Material

Diameter (in)

Quantity

4 6 7 2 2 1 2 1 7 5 23 2 7 2 2 7 9 1 2 1 1 4 14 1 3 15 3

Manufacturer

Replacement Cost

12,000 18,000 21,000 6,000 6,000 3,000 6,000 3,000 21,000 15,000 69,000 6,000 21,000 6,000 6,000 21,000 27,000 3,000 6,000 3,000 3,000 12,000 42,000 3,000 9,000 45,000 9,000

Estimated Useful Life in Years

Remaining Useful Life in Years

Percent of Useful Life Remaining

90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown 46 47 51 54 55 56 61 63 67 70 72 74 75 76 77 78 81 82 89

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown 51% 52% 57% 60% 61% 62% 68% 70% 74% 78% 80% 82% 83% 84% 86% 87% 90% 91% 99%

Probability Consequence of Criticality of Failure Failure Factor

2 3 3 3 3 2 1 1 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

4 6 6 6 6 4 2 2 6 6 6 4 4 4 4 4 4 4 2 2 2 2 2 2 2 2 2

Distribution Assets Distribution Assets

Valves Replacement Cost*: 8" @ $2,000 each 12" @ $3,000 each *Assumes all valves less than 8" will be replaced with 8" valves *Assumes all 10" valves will be replaced with 12" valves

Year Installed

Unknown Pre-1927 Pre-1927 Pre-1979 Pre-1979 Post-1979 Pre-1983 Pre-1983 Post-1984 Pre-2000 Pre-2000 Pre-2005 Pre-2010 1966 1979 1980 1980 1984 1984 1984 1987 1988 1988 1989 1992 1994 1994 1996 1996 2000 2003 2005 2007 2008 2009 2010 2010 2010 2011 2014 2015 2015 2018 2022

Material

Diameter (in)

Quantity

8 4 6 4 6 6 6 8 6 6 8 8 8 6 10 6 8 8 12 16 6 6 8 8 8 6 8 6 8 8 8 8 8 12 8 6 8 12 6 8 8 10 8 8

3 1 1 3 4 2 1 3 1 1 2 1 2 3 8 4 4 8 9 4 10 2 1 4 1 2 1 1 5 9 5 5 3 1 5 2 18 5 1 2 10 2 1 1

Manufacturer

Replacement Cost

6,000 2,000 2,000 6,000 8,000 4,000 2,000 6,000 2,000 2,000 4,000 2,000 4,000 6,000 24,000 8,000 8,000 16,000 27,000 12,000 20,000 4,000 2,000 8,000 2,000 4,000 2,000 2,000 10,000 18,000 10,000 10,000 6,000 3,000 10,000 4,000 36,000 15,000 2,000 4,000 20,000 6,000 2,000 2,000

Estimated Useful Life in Years

Remaining Useful Life in Years

Percent of Useful Life Remaining

70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown 13 26 27 27 31 31 31 34 35 35 36 39 41 41 43 43 47 50 52 54 55 56 57 57 57 58 61 62 62 65 69

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown 19% 37% 39% 39% 44% 44% 44% 49% 50% 50% 51% 56% 59% 59% 61% 61% 67% 71% 74% 77% 79% 80% 81% 81% 81% 83% 87% 89% 89% 93% 99%

Probability Consequence of Criticality Failure Factor of Failure

2 3 3 3 3 3 3 3 2 2 2 2 2 5 4 4 4 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

4 6 6 6 6 6 6 6 4 4 4 4 4 10 8 8 8 6 6 6 6 6 6 6 6 6 6 4 4 4 4 4 4 4 2 2 2 2 2 2 2 2 2 2

APPENDIX C: CAPITAL IMPROVEMENTS PLAN

City of Saugatuck Water System Capital Improvements Plan 2024-2028 Project Water System Complete Distribution System Materials Inventory Lead Service Line Replacement - Systemwide Wellhouse #5 Improvements Install Permanent Generator for Wells #4 & #5 Maple Street Water Service Separation (720/Olde Mill) Maple Street Water Main Replacement - Blue Star to S of North Street Elizabeth Street Water Main Replacement - Allegan to Main Lucy Street Water Main Replacement - Water to Butler Hoffman Street Water Main Replacement - Griffith to Grand Butler Street Water Main Replacement - Culver to Lucy Grand Street Water Main Replacement - Mason to Hoffman & Francis to St. Joseph Well Field Loop Water Main Replacement - Maple to High School River Crossing Water Main Replacement - Park to Water Bridge Street Water Main Extension

Anticipated Funding Source(s)

2024

Local/General $ 150,000 Potentially EGLE/DWSRF $ 500,000 Potentially EGLE/DWSRF $ 20,000 Potentially EGLE/DWSRF $ 10,000 Local/General Potentially EGLE/DWSRF $ 115,000 Potentially EGLE/DWSRF $ 35,000 Potentially EGLE/DWSRF $ 15,000 Potentially EGLE/DWSRF $ 20,000 Potentially EGLE/DWSRF $ 100,000 Potentially EGLE/DWSRF $ 20,000 Potentially EGLE/DWSRF $ 35,000 Potentially EGLE/DWSRF $ 85,000 Local/General Subtotal Water System $ 1,105,000 Note: Projects shaded blue/gray denote those that would be partially funded by EGLE and are thus contingent on EGLE funding.

Anticipated Project Cost By Year 2025 2026 2027

2028

$ 5,000,000 $ 200,000 $ 100,000 $ 30,000 $ 1,150,000 $ 350,000 $ 150,000 $ 200,000 $ 1,000,000 $ 200,000 $ 350,000 $ 850,000 $ 9,580,000

600,000 600,000

Total

Notes

$ 150,000 $ 5,500,000 $ 220,000 $ 110,000 $ 30,000 $ 1,265,000 $ 385,000 $ 165,000 $ 220,000 $ 1,100,000 $ 220,000 $ 385,000 $ 935,000 $ 600,000 $ 11,285,000

Due to State January 1, 2025 Locations and final count TBD. Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding. Concurrent with Maple St WM replacement Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding. Contingent on EGLE funding.

APPENDIX D: WATER SYSTEM BUDGET

APPENDIX E: BILLING RATE STRUCTURE

2960 Lucerne Drive SE Grand Rapids, MI 49546 P: 616.977.1000 F: 616.977.1005 www.fveng.com