Amendment to Interurban Articles of Incorporation

City Council Agenda Item Report FROM:

Ryan Cummins, City Manager

MEETING DATE:

March 18, 2026

SUBJECT:

Interurban Transit Authority – Request to Amend Articles of Incorporation to Add the City of Fennville

DESCRIPTION: The Interurban Transit Authority (ITA) has requested that its member municipalities consider approval of amended Articles of Incorporation to add the City of Fennville as a participating member of the Authority. Since May 2025, the ITA has operated a pilot transit service in Fennville utilizing three designated stops. The pilot has generated approximately 300 passenger trips per month. According to the ITA, the pilot has demonstrated consistent demand. On February 17, 2026, the ITA Board adopted a resolution recommending amendments to its Articles of Incorporation to formally include the City of Fennville as a member of the Authority. Under the Authority’s governing documents, amendments to the Articles require approval by a two-thirds majority of the members of the governing bodies of each of the participating municipalities. The Fennville City Commission will also have to approve. If approved, the Authority’s Board would expand from six to eight members, with two members appointed by the City of Fennville. Approval of the amendment would allow the City of Fennville to be included in a potential August 2026 transit millage proposal to support long-term service expansion. Attached are further details from the ITA, including answers to some initial questions. BUDGET ACTION REQUIRED:

None LEGAL REVIEW: Legal has reviewed the proposed amendments and will be at your meeting if you have any questions. SAMPLE MOTION: Motion to approve the Amended and Restated Articles of Incorporation of the Interurban Transit Authority, adding the City of Fennville as a member jurisdiction of the Authority.

 Page 2

TO: Saugatuck City Council, Douglas City Council, Saugatuck Township Board, and Fennville City Commission FROM: Becky Carten-Crandall, Interurban Transit Authority Executive Director RE: Change Recommended Bylaws On behalf of the Interurban Transit Authority (ITA), I am writing to share information regarding proposed amendments to the ITA bylaws and to outline how these changes support the continued expansion and effectiveness of public transit service within our region. Since May 2025, the ITA has operated a pilot transit program serving the City of Fennville. This trial service has demonstrated consistent demand, with approximately 300 passenger trips per month originating from Fennville stops. The pilot was designed to test feasibility, assess ridership, and evaluate operational impacts prior to considering permanent service expansion. At its February 17, 2026, meeting, the Interurban Transit Authority Board voted to recommend adoption of the attached amended bylaws. These amendments formally add the City of Fennville as a participating jurisdiction within the Authority, which is a required step for the question of long-term service funding to be placed on the August 2026 ballot. Under the ITA’s governing documents, approval by two-thirds of the participating entities is required for the bylaw amendments to take effect. Importantly, the pilot service has been implemented with no significant increase in operational costs. The trial added approximately three-quarters of a mile to existing routes near Crane Orchards and utilized only three designated stops within Fennville: downtown, Ladders of Hope, and Wagoner’s Grocery. Although Fennville encompasses approximately one square mile, service during the pilot has remained limited and efficient. Full door-todoor service within the Fennville service area would not begin unless millage is approved, with implementation anticipated in calendar year 2027. At that time, the three existing stops would continue to be maintained. The ITA believes this expansion provides meaningful regional benefits. The pilot has already demonstrated that Fennville residents are utilizing transit to access employment, services, and tourism opportunities in Saugatuck, Douglas, and Saugatuck Township, while also bringing visitors and workers into those communities from Fennville. This regional

connectivity helps reduce parking pressures in downtown Saugatuck and Douglas, supports workforce mobility, and leverages public transit as a cost-effective alternative to additional infrastructure investments. Additionally, Fennville is home to the area’s only dentist currently accepting Medicaid patients, and the Interurban has transported residents from Saugatuck, Douglas, and Saugatuck Township to access this service. Similarly, Ladders of Hope, a regional food pantry in Fennville, serves residents across multiple jurisdictions and operates on different days and at different times than other providers in our service area, such as Christian Neighbors. Transit access has improved our residents' ability to reach essential services throughout the region. Allegan County and MDOT have been informed of the proposed expansion service and are aware of the anticipated scope of change should the bylaws be adopted and funding approved. The Interurban Transit Authority Board strongly supports the proposed bylaw amendments and believes they reflect the evolving transit needs of our shared region. We appreciate your consideration and welcome any questions as you review the attached materials.

Executive Director: Becky Carten-Crandell

___________________________________________ Date: _________________

RESOLUTION OF THE BOARD OF DIRECTORS OF THE INTERURBAN TRANSIT AUTHORITY RESOLUTION NO. __ A RESOLUTION APPROVING AN AMENDMENT TO THE ARTICLES OF INCORPORATION OF THE INTERURBAN TRANSIT AUTHORITY TO AI)D THE CITY OF FENNVILLE AS A MEMBER OF THE AUTHORITY WHEREAS, the Interurban Transit Authority ("Authority") is a public authority organized and operating pursuant to Act 196 of the Public Acts of 1986, as amended (MCL 124.451 et seq.) ("Act 196"); and WHEREAS, the Authority's incorporating political subdivisions are currently the City of Saugatuck, the City of the Village of Douglas, and the Township of Saugatuck; and WHEREAS, Section 7 of Act 196 (MCL 124.457) provides that a political subdivision may become a member of a public authority after formation upon (a) resolution adopted by a majority vote of the members elected to and serving on the legislative body of the political subdivision requesting membership, and (b) resolution adopted by a 2/3 vote of the members serving on the board of the public authority approving an amendment to the articles of incorporation adding the political subdivision; and WHEREAS, Article XI of the Articles of Incorporation provides that the Articles of Incorporation may be amended at any time by a two-thirds vote of approval by the governing bodies of the incorporating political subdivisions; and WHEREAS, the Board of Directors has reviewed the proposed Amended and Restated Articles of Incorporation, which incorporate the changes necessary to add the City of Fennville as a member, including expanding the Board of Directors from six to eight members, with two members to be appointed by the Fennville City Commission; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Interurban Transit Authority, by a vote of not less than 2/3 of the members serving on the Board, as follows: 1.

Finding of Public Interest. The Board of Directors finds that the addition of the City of Fennville as a member of the Authority will serve the public interest by expanding public transportation services in the region.

Approval of Amendment. The Amended and Restated Articles of Incorporation of the Interurban Transit Authority, in substantially the form presented to the Board at this meeting, are hereby approved.

Filing and Publication. The Executive Director is directed to cause the Amended and Restated Articles of Incorporation, once executed, to be filed with the Michigan Secretary of State, the Allegan County Clerk, and the Director of the Michigan Department of Transportation, and to be published in the Commercial Record, all in the same manner as the original Articles oflncorporation.

Authorization of Executive Director. The Executive Director is authorized and directed to take all actions and execute all documents reasonably necessary to effectuate this Resolution and the addition of the City of Fennville as a member of the Authority.

Effective Date. This Resolution shall take effect immediately upon adoption.

U� f-J J

CERTIFICATION

I, 1 .-.. S fc•.'i Secretary of the Board of Directors of the Interurban Transit Authority, hereby certify that the foregoing Resolution was adopted at a meeting of the Board held on ftl, /'\v.n I 7 , 2026, by a vote of � in favor, _Q__ opposed, and _Q_ absent, constitut� less than 2/3 of the members serving on the Board.

Secrela.r;,i3oard of Directors Interurban Transit Authority Date:

AMENDED AND RESTATED ARTICLES OF INCORPORATION INTERURBAN TRANSIT AUTHORITY ARTICLE I The name of the Corporation is Interurban Transit Authority, hereinafter referred to as the "Authority." ARTICLE II The incorporating political subdivisions of the Authority are the City of Saugatuck, the City of the Village of Douglas, the Township of Saugatuck, and the City ofFennville. ARTICLE III The Authority is organized as a non-profit corporation on a non-stock basis. ARTICLE IV The Authority is financed through grants of money or property from federal or state governments, other revenues from federal or state governments, fees from riders, and taxes raised through election approval. ARTICLEV The registered office of the Authority shall be at 100 Wiley Road, Douglas, Michigan 49406, and the registered agent at that address is the Interurban Transit Authority Director. ARTICLE VI The names and addresses of the incorporating political subdivisions are as follows: City of Saugatuck, 102 Butler Street, Saugatuck, MI 49453; City of the Village ofDouglas, 86 W Center Street, Douglas, MI 49406; Saugatuck Township, 3461 Blue Star Highway, Saugatuck, MI 49453; and City of Fennville, 125 S, Maple Street, Fennville, MI 49408. ARTICLE VII The purposes for which the Authority is created are: 1. To, pursuant to Act 196 of 1986, as amended, plan, promote, purchase, acquire, establish, own, lease, operate or cause to be operated, maintain, improve, enlarge, and modernize a public transportation system within the corporate limits of the incorporating political

subdivisions; provided, however, that such services may be extended outside the limits of the incorporating political subdivisions as authorized by the Authority, if done so under a contract which returns at least the cost of the services to the incorporating political subdivisions; and 2. To do all things reasonably necessary and/or proper for the accomplishment of any of the above purposes. ARTICLE VIII The Authority is hereby empowered to do anything authorized or permitted by Act 196 of 1986, as amended, and to do any other lawful act reasonably necessary, proper, suitable, or convenient for the achievement or furtherance of the purposes above stated. ARTICLE IX I. The Authority shall be directed and governed by a eight person Board of Directors, herein referred to as the "Board." 2. Two of the Board members shall be appointed by the Saugatuck City Council, two of the Board members shall be appointed by the Douglas City Council, two of the Board members shall be appointed by the Saugatuck Township Board, and two of the Board members shall be appointed by the Fennville City Commission. 3 The two Board members appointed by each respective political subdivision may be elected officials of the political subdivisions, members of boards or committees appointed by the political subdivisions, or residents over 18 years of age of the appointing political subdivision. 4. Board members shall serve for a term of four years, with the first appointed members, only, appointed for staggering terms of a two year term, and a four year term, per political subdivision. 5. Each Board member will be responsible for attending all regular and special meetings of the Board, or notifying the Chairperson of an expected absence. The Board will allow for three unexcused absences per fiscal year. In the event a Board member accumulates more than three unexcused absences from regular meetings in a fiscal year, the Board may remove the Board member and request a replacement from the appropriate incorporating political subdivision. 6. The Board shall hold an initial meeting at a time and place selected and agreed to by the Board members for the purposes of electing officers, adopting bylaws, and taking any other action the Board deems necessary. Thereafter, the Board shall hold at least an annual meeting at such place and time as shall be fixed by the Board. The Board shall, at its initial meeting, and at each annual meeting thereafter, elect a Chairperson, Vice Chairperson, Treasurer, and Secretary, all of whom shall be members of the Board. The Chairperson shall

preside at all meetings of the Board unless the Board, by majority vote of the members present, directs otherwise. The Chairperson shall sign all contracts agreed to by the Board as well as all financial documents, records, papers, and communications of the Board, except payroll and routine financial documents. The Vice Chairperson shall become Chairperson in the event the office of Chairperson becomes vacant. The Vice Chairperson shall conduct Board meetings and otherwise act for the Chairperson in the Chairperson's absence. The Treasurer shall oversee all financial transactions of the Authority. The Secretary shall keep a record of all meetings in compliance with applicable provisions of Public Act 267 of 1976, as amended (the "Open Meetings Act"), and a record of all the financial transactions of the Board. The Board shall transact such other business as may be necessary at its annual meeting, and shall fix the time and place for regular meetings. 7. The Board shall keep a written or printed record of every meeting, which record shall be subject to the provisions of the Open Meetings Act. 8. The Board shall supply a system of accounts to conform to the system required by law and shall provide for the auditing of said accounts at least once a year by a certified public accountant. 9. The Board may employ a manager or executive director with such duties and authority as shall be determined by the Board. 10. The Board shall adopt rules, regulations, and policies governing the employees, property, and facilities under its jurisdiction. I I. The Board shall prepare, or have prepared, an annual report regarding the operation and financial condition of the Authority, which report shall be available to the public. 12. The Board shall adopt bylaws, policies, and procedures it deems reasonably necessary or proper for the conduct of the business of the Board and for accomplishing the purposes for which the Authority was created. 13. The Secretary of the Board shall be charged with the responsibility of causing these Articles of Incorporation to be published and the printed copies of the Articles of Incorporation to be filed as provided in Act 196 of 1986, as amended. ARTICLEX The Authority may be dissolved, and political subdivisions may withdraw or be added, in accordance with the provisions of Act 196 of 1986, as amended. ARTICLE XI These Articles of Incorporation may be amended at any time by a two-thirds vote of approval by the governing bodies of the incorp orating political subdivisions. 3

ARTICLE XII The Authority became operative on January 1, 1990. The Articles of Incorporation were then amended on October 28, 1998, and subsequently restated on June 1, 2015. These Amended and Restated Articles of Incorporation shall become effective on the last date signed below.. The Executive Director shall have these Amended and Restated Articles of Incorporation published in the Commercial Record, and shall file these Amended and Restated Articles of Incorporation with the Michigan Secretary of State, the Allegan County Clerk, and the Director of the Michigan Department of Transportation. The purpose of the foregoing Amended and Restated Articles of Incorporation is to add the City of Fennville as a member of the Authority. This document was approved by: (1) an affirmative vote of the Fennville City Commission; (2) a 2/3 vote of the members of the Authority Board; and (3) a 2/3 vote of the members of the governing bodies of the City of Saugatuck, City of the Village of Douglas, and Township of Saugatuck at meetings held on the following dates: Authority Board:

February 17, 2026

City of Saugatuck: City of the Village of Douglas: Township of Saugatuck: City of Fennville: CITY OF SAUGATUCK

WITNESSES:

By: ____________ Its: ------------Dated: -----------CITY OF THE VILLAGE OF DOUGLAS By: ____________ Its: _____________ Dated: ----------4

TOWNSIDP OF SAUGATUCK By: ___________ Its: -----------Dated: __________ CITY OF FENNVILLE By: ____________ Its: ----------- Dated: __________

Hello Ryan, Thank you for sharing the questions from Mayor Anderson. I will answer each of these questions to the best of my ability. If you have any additional questions at any time, please feel free to reach out. The information we are sharing with you is based on rough estimates of the information requested. The information below addresses your first question regarding the governing structure. We will also attach the bylaws to this email. The sections currently shown in red font indicate the portions we are proposing to amend. Act 196 of 1986 authorizes the creation and operation of public transportation authorities in Michigan, granting them the power to levy taxes, issue bonds, and manage public transportation services. Purpose and Scope Act 196 of 1986, also known as the Public Transportation Authority Act, authorized the formation of public transportation authorities with broad powers and duties. These powers include the ability to manage, operate, and finance public transportation systems in Michigan. The Act also provides mechanisms for local entities to withdraw from the authorities, to levy property taxes for transportation purposes, and to protect the rights of employees of existing public transportation systems. Key Provisions 1. Formation and Membership of Public Authorities • Public authorities may be created by counties, cities, villages, or townships and may include other entities through interlocal agreements. • The governing body of a public authority is referred to as the Board, which oversees operations and administration.

• Articles of incorporation must be filed, published, and approved to establish a valid public authority. 2. Powers and Duties • Authorities may levy property taxes for public transportation services and purposes. • They are empowered to issue bonds and notes and may pledge taxes, revenues, and other funds for repayment. • Authorities may acquire property, including through condemnation proceedings, and manage public transportation facilities such as buses, rail systems, tunnels, bridges, and parking facilities. • They are recognized as public benefit agencies and instrumentalities of the state, granting them certain legal protections and exemptions. 3. Employee Protections and Labor Relations • The Act safeguards the rights of employees of existing public transportation systems, including provisions for collective bargaining and military service leave. 4. Validation and Ratification • Act 196 validates taxes, elections, bonds, and actions taken by public transportation authorities prior to July 10, 1986. • It ensures that the organization, existence, and membership of authorities created before that date are legally recognized. 5. Definitions • Public transportation includes the movement of people and goods via buses, rail, water vehicles, rapid transit, and other conveyances that provide general or special service to the public, excluding charter, sightseeing, or school-only transportation. • A public transportation facility refers to property that enhances the effectiveness of a transportation system, including real and personal property eligible for federal assistance.

Financial and Legal Mechanisms • Authorities may transfer, assign, or convey tax revenues, property, rights, duties, and obligations to ensure operational continuity. • The Act prescribes remedies and penalties for violations to ensure compliance with its provisions. Summary Act 196 of 1986 provides a comprehensive legal framework for establishing and operating public transportation authorities in Michigan. It empowers local entities to manage transportation services, levy taxes, issue bonds, protect employees, and validate prior actions while defining the scope of public transportation and related facilities. This Act remains a foundational statute for public transit governance in the state.

2. Municipal Contributions Municipality

2024

2025

2026

Saugatuck

100,900

106,815

117,469

Saugatuck Township

202,930

222,325

249,004

Douglas

103,860

112,846

121,177

The previous years were calculated at 0.5 mills. These amounts need to be doubled to reflect an additional 0.5 mill.

3. Grants Received Over the past four years, the Interurban Transit Authority (ITA) has received $1,048,134.00 in federal and state grants.

4. Ridership Data Historically, we did not have the capability to collect location-specific data until the launch of our new platform, Spare, in January 2026. The ITA has carried over 2 million passengers. Previously, the only data collected was based on rider categories, including: • Adults • Seniors • Children • Persons with disabilities The following data was collected through Spare between January 12, 2026, and February 28, 2026: Municipality Rides Fennville

Douglas

3,896

Saugatuck

5,846

5. Service Expansion Estimate Expense data has been attached to this email. If services were extended from the three current stops in Fennville to door-to-door service within a one-square-mile radius (essentially extending service approximately ¼ mile in each direction from the existing approved stops), the estimated cost would be calculated based on our current cost per mile of $5.90. 6. Board Representation Currently, the Authority has six board members, with two representatives from each municipality. If Fennville joins the Authority, two additional board members would be added. 7. Vote Outcome Scenario If the three current municipalities vote to add the City of Fennville to the Authority, but the City of Fennville votes no, ITA would proceed to amend the Articles of Incorporation. 8. Estimated Revenue If Fennville is approved to join the Authority by the three municipalities, the estimated funds ITA would receive would be approximately $90,000–$120,000. 9. Potential Unintended Consequences If Fennville Public Schools were to lose students to Saugatuck Public Schools, that could be considered a potential unintended consequence.

Hopefully, this helps answer some of your questions. I appreciate the time given to respond. Please reach out with any further questions.

Best regards, Becky Carten-Crandell She/Her/Hers Executive Director Interurban Transit Authority 269-857-1301

4:51 PM 03/11/26

Interurban Transit Authority

Profit & Loss Prev Year Comparison

Accrual Basis

October 2024 through September 2025 Oct '24 - Sep 25

Ordinary Income/Expense Income 40101 • Fares 40760 • Gain from Sale of Capital Asset 408010 • Douglas Taxes - Current 408011 • Saugatuck City Taxes - Current 408012 ·Twp.Taxes - Current 408013 • Delinquent Taxes 41101 • State Subsidy-Op Assistance 41301 • Feb Subsidy - Op Assistance 41303 • Capital Grants-Federal Contr. 41398 • Fed Subsidy-Other (RTAP) 41401 • Interest Income 41402 • Interest Income - CD's 41403 • Interest Income -Michigan Class 42000 • State of Ml, prior years 44000 • Prior Year Refunds & Credits Total Income Expense 50100 • Labor 50101-1 • Salaries & Wages, Operators 50102-1 • Salaries & Wages, Other 50102-2 • Salaries & Wages, Malnt 50102-3 • Salaries & Wages, Admin 50103-1 • Salaries & Wages, Dispatchers Total 50100 • Labor 50200 • Fringe Benefits 50200-1 • FICA - Employer's Share, oper 50201-1 • MERS DC Company Match, oper 50202-1 • MERS OB Employer's Share, oper 50202-2 • MERS DB Employer's Share, maint 50202-3 • MERS OB Employer's Share, admin 50203-1 • Employee Heath Ins, aper 50203-2 • Employee Health Ins, maint 50203-3 • Employee Health Ins, admln 50204-1 • Dental Ins, oper 50204-2 • Dental Ins, malnt 50204-3 • Dental Ins, admin 50205-1 • Employee Life Ins, oper 50205-2 • Employee Life Ins, maint 50205-3 • Employee Life Ins, admin 50206-1 • Vision Ins, oper 50206-2 • Vision Ins, maint 50206-3 • Vision Ins, ad min 50207-1 • MESC Expense, oper 50208-1 • Workers Comp Ins, oper 50208-2 • Workers Comp Ins, maint 50208-3 • Workers Comp Ins, admin 50209-1 • Sick Leave, aper 50209-2 • Sick Leave, maint 50209-3 • Sick Leave, admin 50210-1 • Holiday Pay, oper 50210-2 • Holiday Pay, malnt 50210-3 • Holiday Pay, admln 50211-1 • Vacation Pay, oper 50211-2 • Vacation Pay, maint 50211-3 • Vacation Pay, admin 50212-1 • Other Paid Absenses, oper 50213-1 • Employee Uniforms, oper 50213-2 • Employee Uniforms, maint Total 50200 • Fringe Benefits 50300 • Services 50302-3 • Advertising Fees, admln 50303-1 • Professional & Tech Serv, aper 50303-2 • Professional & Tech Serv, maint 50303-3 • Professional & Tech Serv, admln 50305-1 • Contract Maint Services, oper 50305-3 • Audit Services, admln 50306-2 • Custodial Services, maint 50307-1 • Maint/Repairs - Building, maint 50308-3 • Board Member Compensation 50399-1 • Other Services, oper

Oct '23 - Sep 24

$ Change

% Change

115,965.99 0,00 116,975.63 111,811.92 238,442.23 1,982.06 467,684.00 222,937.00 41,318.47 2,002.46 1,800.54 9,444.95 35,430.70 -8,170.00 55,210.78

61,261.86 1.00 109,693.51 105,209.23 217,844.23 2,167.77 489,965.00 217,335.00 197,726.00 3,861.54 2,362.16 15,887.29 33,986.12 4,816.50 30,510.32

54,704.13 -1.00 7,282.12 6,602.69 20,598.00 -185.71 -22,281.00 5,602.00 -156,407 .53 -1,859.08 -561.62 -6,442.34 1,444.58 -12,986.50 24,700.46

89.3% -100.0% 6.6% 6.3% 9.5% -8,6% -4.6% 2.6% -79,1% -48.1% -23.8% -40.6% 4.3% -269.6% 81.0%

1,412,836.73

1,492,627.53

-79,790.80

-5.4%

411,991.06 16,304.60 64,995.47 102,391.70 121,716.23 717,399.06 57,736.64 2,666.06 37,174.12 14,950.38 17,329.51 80,704.48 33,053.52 26,034.23 3,527.85 1,302.51 1,302.51 1,024.40 189.12 267.92 733.26 257.73 258,06 1,337.00 22,147.09 2,505.51 514.56 15,384.24 1,685.75 2,725.05 6,868.64 1,685.76 1,507.76 42,190.28 7,803.31

17,322.69

0.00 409.49 0.00 402,599.43

12,687.80 21,821.98 2,207.50 5,860.55

1,227.96

9,350.00

2,730.00

5,253.43 5,775.00 4,120.76

331,511.06 17,984.69 53,114.11 85,465.09 104,162.73 592,237.68 93,644.18 2,385.43 40,940.55 30,392.90 32,609.44 93,076.33 29,411.98 19,947.65 4,192.41 1,290.28 1,000.41 1,229.28 204.88 267.92 1,063.27 304.59 211.47

778.00

18,041.92 1,962.28 349.80 9,885.50 1,624.71 1,946.88 6,582.56 1,605.60 2,024.88

25,045.70

7,961.10

6,491.56

128.01 1,558.29 203.03 438,362.79

14,353.20 4,215.25 655.00

3,854.98 1,219.02 8,400.00 2,275.00 10,245.78 5,250.00 7,637.76

80,480.00 -1,680.09 11,881.36 16,926.61 17,553.50

24.3% -9.3% 22.4% 19.8% 16.9% 21.1%

125,161.38 -35,907,54 280,63 -3,766.43 -15,442.52 -15,279.93 -12,371,85 3,641.54 6,086.58 -664.56 12.23 302.10 -204.88 -15.76 0.00 -330.01 -46.86 46.59 559.00

4,105.17

543.23

164.76 5,498.74

61.04 778.17 286.08 80.16 -517.12

17,144.58

-157.79 10,831.13 -128.01 -1,148.80 -203.03

-38.3% 11.8% -9.2% -50.8% -46.9% -13.3% 12.4% 30.5% -15.9% 1.0% 30.2°/o -16.7% -7.7% 0.0% -31.0% -15.4% 22.0% 71.9% 22.8% 27.7% 47.1% 55.6% 3.8% 40.0% 4.4% 5.0% -25.5% 68.5% -2.0% 166.9% .100.0% -73.7% -100,0% -8.2%

-35,763.36

-1,665.40

17,606.73 1,552.50 2,005.57 8.94 950.00 455.00 -4,992.35 525.00 ·3,517.00

-11.6% 417.7% 237.0% 52.0% 0.7% 11.3% 20.0% -48.7% 10.0% -46.1%

Page 1

Interurban Transit Authority

4:51 PM

Profit & Loss Prev Year Comparison

03/11/26 Accrual Basis

October 2024 through September 2025

50399-2 • Other Services, malnt 50399-3 • Other Services, admin Total 50300 • Services 50400 • Materials & Supplies 50401-1 • Fuel and Lubricants 50402-1 • Tires and Tubes 50404-1 • Major Supplies-Op 50499-1 • Other Mat'ls & Supplies, aper 50499-2 • Other Mat'ls & Supplies, maint 50499-3 • Other Mat'ls & Supplies, admin Total50400 • Materials & Supplies 50500 • Utilities 50502·3 • Electric Power 50503-1 • Phone, aper 50503-2 • Phone, maint 50503-3 • Phone, admin 50504-3 • Water & Sewer Service - GA 50599-3 • Other Utilities, admin Total50500 • Utilities 50600 • Casualty & Liability Costs 50603·1 • Premiums for PL & PD Insurance 50699-1 • Prems forOther Insur, aper 50699-3 • Prems forOther Ins, admin Total 50600 • Casualty & Liability Costs 50700 • Taxes & Fees 50701-1 • CDL Fees 50702-1 • Drug Screening 50703-3 • Bank Fees 50705-3 • Charge Back Tax 50799-3 • Miscellaneous Fees 50700 • Taxes & Fees • Other Total 50700 • Taxes & Fees 50900 • Miscellaneous Expenses 50901-3 • Dues & Subscriptions, admin 50902-1 • Travel and Meetings, aper 50902-2 • Travel and Meetings, maint. 50902-3 • Travel and Meetings, admln Total 50900 • Miscellaneous Expenses 51300 • Depreciation & Amortization 51300-3 • Dep Expense. Land lnprovements 51301-3 • Dep ExpenseFacility 51302-1 • Dep Expense• Revenue Vehicles 51304-1 • Dep Expense - Shop Equipment 51305-3 • Dep Expense. Off. Furn. & Eq.

1,967.62 4,790.02

2,355.45 5,927.52 79,317.95

64,863.63

0.00

126,277.80 3,091.12 5,358.86 808.21 1,235.75 2,124.95 1,793.74

100,753.40 3,020.30 3,648.96 822.89 791.10 1,616.62 1,221.44

14,412.63 35,357.19 3,060.00 6,381.00

11,121.31

0.00 2,058.56 915.16 92.59 258.08 18.56

922.31 629.83 1,008.90 207.95 184.00 0.00

3,342.95 3,074.65 1,378.06 113.00 4,574.54

0.00 0.00 0.00 0.00 0.00

2,952.99

0.00 0.00

Total Expense

1,397,288.26

NetOrdinary Income

15,548.47 15,548.47

88.9% -40.3%

0.0%

-32.4%

25,524.40

5,853.82

3,291.32

29.6% 10.9 °/o -30.8% -33.3%

-1,068.07

-2.3% -100.0% 226.8% -9.3% -55.5% 40.3% 100.0%

389.96

13.2% 72.6% 264.8% -82.8% 50.6%

3,286.43 -871.00 -9,289.00 -105,442.00 -4,148.00 -4,308.00

124,058.00

25.3 °/o 2.3% 46.9% -1.8% 56.2% 31.4% 46.9%

1,293.65 1,000.25 -544.49 1,537.02

871.00 9,289.00 105,442.00 4,148.00 4,308.00

Total 51300 • Depreciation & Amortization

22,905.87 -1,293.07 -1,466.97

-922.31 1,428.73 -93.74 -115.36 74.08 18.56

1,781.00 377.81 657.49 3,037.52

9,140.25

9.7%

-5.5%

3,471.93 -1,360.00 -3,180.00

45,866.26

22.3%

-411.10

70.82 1,709.90 -14.68 444.65 508.33 572.30

31,885.26 4,420.00 9,561.00

44,798.19

14,454.32

0.00

25,780.41 3,210.11 4,531.28

3,064.31

19.7% 23.8%

5,789.67

7,504.64

1,917.04

% Change

387.83 1,137.50

59,726.96

65,516.63 7,093.54 0.00 48,686.28

6560 • Payroll Expenses

Net Income

$ Change

Oct '23 - Sep 24

Oct '24 - Sep 25

56.1% -100.0% -100.0% -100.0% -100.0% -100.0%

-124,058.00

-100.0%

0.00

0.00

0.0%

1,386,069.88

11,218.38

0.8%

106,557.65

-91,009.18

-85.4%

106,557.65

-91,009.18

-85.4%

Page2

RESTATED ARTIJ:LES_OF INCORPORATION IN_J'ERURBAN TRANSIT AUTHORITY ARTICLE I The name of the Corporation is Interurban Transit Authority, hereinafter referred to as the "Authority."

ARTICLE II The incorporated political subdivisions of the Authority are the City of Saugatuck, the Village of Douglas, the Township of Saugatuck, and the City of Fennville.

ARTICLEUI The Authority is organized as a non-profit corporation on a non-stock basis.

ARTICLE IV The Authority is financed through grants of money or property from federal or state governments, other federal or state government revenues, fees from riders, and taxes approved by election.

ARTICLE V: The registered office of the Authority shall be at 100 Wiley Road, Douglas, Michigan 49406, and the registered agent at that address is the Interurban Transit Authority Director.

ARTICLE VI The names and addresses of the incorporating political subdivisions are as follows: City of Saugatuck, 102 Butler Street, Saugatuck, MI 49453. City of the Village of Douglas, 86 W Center Street, Douglas, MI 49406; and Saugatuck Township, 3461 Blue Star Highway, Saugatuck, MI 49453; and the City of Fennville, 125 S Maple Street, Fennville, MI. 49408.

ARTICLE VII The purposes for which the Authority is created are: 1. To, pursuant to Act 196 of 1986, as amended, plan, promote, purchase, acquire, establish, own, lease, operate or cause to be operated, maintain, improve, enlarge, and modernize a public transportation system within the corporate limits of the incorporating political

subdivisions; provided, however, that such services may be extended outside the limits of the incorporating political subdivisions as authorized by the Authority, if done so under a contract which returns at least the cost of the services to the incorporating political subdivisions; and 2. To do all things reasonably necessary and/or proper for the accomplishment of any of the above purposes. ARTICLE VIII

The Authority is hereby empowered to do anything authorized or permitted by Act 196 of 1986, as amended, and to do any other lawful act reasonably necessary, proper, suitable, or convenient for the achievement or furtherance of the purposes above stated.

ARTICLE IX 1. The Authority shall be directed and governed by an eight-person Board of Directors, herein referred to as the "Board." 2. Two of the Board members shall be appointed by the Saugatuck City Council, two of the Board members shall be appointed by the Douglas City Council, two of the Board members shall be appointed by the Saugatuck Township Board, and two of the Board Members shall be appointed by the City of Fennville. 3 The two Board members appointed by each respective political subdivision may be elected officials of the political subdivisions, members of boards or committees appointed by the political subdivisions, or residents over 18 years of age of the appointing political subdivision. 4. Board members shall serve for a term of four years, with the first appointed members only appointed for staggered terms of a two-year term and a four-year term, per political subdivision. 5. Each Board member will be responsible for attending all regular and special meetings of the Board or notifying the Chairperson of an expected absence. The Board will allow for three unexcused absences per fiscal year. In the event a Board member accumulates more than three unexcused absences from regular meetings in a fiscal year, the Board may remove the Board member and request a replacement from the appropriate political subdivision. 6. The Board shall hold an initial meeting at a time and place selected and agreed to by the Board members for the purpose of electing officers, adopting bylaws, and taking any other action the Board deems necessary. Thereafter, the Board shall hold at least an annual meeting at such place and time as shall be fixed by the Board. The Board shall, at its initial meeting, and at each annual meeting, thereafter, elect a Chairperson, Vice Chairperson, Treasurer, and Secretary, all of whom shall be members of the Board. The Chairperson shall preside at all meetings of the Board unless the Board, by majority vote of the members present, directs otherwise. The 2

Chairperson shall sign all contracts agreed by the Board as well as all financial documents, records, papers, and communications of the Board, except payroll and routine financial documents. The Vice Chairperson shall become Chairperson in the event the office of Chairperson becomes vacant. The Vice Chairperson shall conduct Board meetings and otherwise act for the Chairp erson in the Chairperson's absence. The Treasurer shall oversee all financial transactions of the Authority. The Secretary shall keep a record of all meetings in compliance with applicable provisions of Public Act 267 of 1976, as amended (the "Open Meetings Act"), and a record of all the financial transactions of the Board. The Board shall transact such other business as may be necessary at its annual meeting and shall fix the time and place for regular meetings. 7. The Board shall keep a written or printed record of every meeting, which record shall be subject to the provisions of the Open Meetings Act. 8. The Board shall supply a system of accounts to conform to the system required by law and shall provide for the auditing of said accounts at least once a year by a certified public • accountant. The Board may employ a manager or executive director with such duties and 9. authority as shall be determined by the Board. 10. The Board shall adopt rules, regulations, and policies governing the employees, property, and facilities under its jurisdiction. 11. The Board shall prepare, or have prepared, an annual report regarding the operation and financial condition of the Authority, which report shall be available to the public. 12. The Board shall adopt bylaws, policies, and procedures it deems reasonably necessary or proper for the conduct of the business of the Board and for accomplishing the purposes for which the Authority was created. 13. The Secretary of the Board shall be charged with the responsibility of causing these Articles of Incorporation to be published and the printed copies of the Articles of Incorporation to be filed as provided in Act 196 of 1986, as amended.

ARTICLEX The Authority may be dissolved, and political subdivisions may withdraw or be added, in accordance with the provisions of Act 196 of 1986, as amended.

ARTICLE_XI These Articles of Incorporation may be amended at any time by a two-thirds vote of approval by the governing bodies of the incorporating political subdivisions. 3

ARTICLE XII The Authority became operative on January 1, 1990. The Articles oflncorporation were then amended on October 28, 1998, and June 1, 2015. These Restated Articles of Incorporation shall become effective on April 1, 2026. The Executive Director shall have the Restated Articles of Incorporation published in the Commercial Record and shall file the Restated Articles of Incorporation with the Michigan Secretary of State, the Allegan County Clerk, and the Director of the Michigan Department of Transportation. The foregoing Articles of Incorporation were adopted by an affirmative vote of twothirds of the members of the governing bodies of the City of Saugatuck, City of the Village of Douglas, and Township of Saugatuck at meetings held on the following dates: City of Saugatuck:

February 23, 2026

City of the Village of Douglas:

March 16, 2026

Township of Saugatuck:

March 11, 2026

City of Fennville

March 16, 2026 CITY OF SAUGATUCK

WITNESSES:

By: ------------Its: ------------Dated: ----------CITY OF THE VILLAGE OF DOUGLAS

WITNESSES :

By: ___________ Its: ____________ Dated: __________ TOWNSHIP OF SAUGATUCK

WITNESSES:

By: ____________ Its: ----------Dated: __________ 4

WITNESSES:

CITY OF FENNVILLE By: ___________ Its: ___________ Dated: __________

RESOLUTION OF THE BOARD OF DIRECTORS OF THE INTERURBAN TRANSIT AUTHORITY RESOLUTION NO. __ A RESOLUTION APPROVING AN AMENDMENT TO THE ARTICLES OF INCORPORATION OF THE INTERURBAN TRANSIT AUTHORITY TO ADD THE CITY OF FENNVILLE AS A MEMBER OF THE AUTHORITY WHEREAS, the Interurban Transit Authority ("Authority") is a public authority organized and operating pursuant to Act 196 of the Public Acts of 1986, as amended (MCL 124.451 et seq.) ("Act 196"); and WHEREAS, the Authority's incorporating political subdivisions are currently the City of Saugatuck, the City of the Village of Douglas, and the Township of Saugatuck; and WHEREAS, Section 7 of Act 196 (MCL 124.457) provides that a political subdivision may become a member of a public authority after formation upon (a) resolution adopted by a majority vote of the members· elected to and serving on the legislative body of the political subdivision requesting membership, and (b) resolution adopted by a 2/3 vote of the members serving on the board of the public authority approving an amendment to the articles of incorporation adding the political subdivision; and WHEREAS, Article XI of the Articles of Incorporation provides that the Articles of Incorporation may be amended at any time by a two-thirds vote of approval by the governing bodies of the incorporating political subdivisions; and WHEREAS, the Board of Directors has reviewed the proposed Amended and Restated Articles of Incorporation, which incorporate the changes necessary to add the City of Fennville as a member, including expanding the Board of Directors from six to eight members, with two members to be appointed by the Fennville City Commission; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Interurban Transit Authority, by a vote of not less than 2/3 of the members serving on the Board, as follows: 1.

Finding of Public Interest. The Board of Directors finds that the addition of the City of Fennville as a member of the Authority will serve the public interest by expanding public transportation services in the region.

Approval of Amendment. The Amended and Restated Articles of Incorporation of the Interurban Transit Authority, in substantially the form presented to the Board at this meeting, are hereby approved.

Filing and Publication. The Executive Director is directed to cause the Amended and Restated Articles of Incorporation, once executed, to be filed with the Michigan Secretary of State, the Allegan County Clerk, and the Director of the Michigan Department of Transportation, and to be published in the Conunercial Record, all in the same manner as the original Articles oflncorporation.

Authorization of Executive Director. The Executive Director is authorized and directed to take all actions and execute all documents reasonably necessary to effectuate this Resolution and the addition of the City of Fennville as a member of the Authority.

Effective Date. This Resolution shall take effect inunediately upon adoption.

CERTIFICATION

I, l_p� b�, ..,_ S le...\ Secretary of the Board of Directors of the Interurban Transit Authority, hereby certify that the foregoing Resolution was adopted at a meeting of the Board held on fi:L n,,,,,, 11 , 2026, by a vote of __k_ in favor, _Q__ opposed, and __Q_ absent, constitut� less than 2/3 of the members serving on the Board.

�®·,bzeL�

Secretary, Board of Directors Interurban Transit Authority Date:

cJ./nJ_J..(p_

AMENDED AND RESTATED ARTICLES OF INCORPORATION INTERURBAN TRANSIT AUTHORITY ARTICLE I The name of the Corporation is Interurban Transit Authority, hereinafter referred to as the "Authority." ARTICLE II The incorporating political subdivisions of the Authority are the City of Saugatuck, the City of the Village of Douglas, and-the Township of Saugatuck, and the City of Fennville. ARTICLE III The Authority is organized as a non-profit corporation on a non-stock basis. ARTICLEIV The Authority is financed through grants of money or property from federal or state governments, other revenues from federal or state governments, fees from riders, and taxes raised through election approval. ARTICLEV The registered office of the Authority shall be at l 00 Wiley Road, Douglas, Michigan 49406, and the registered agent at that address is the Interurban Transit Authority Director. ARTICLEVI The names and addresses of the incorporating political subdivisions are as follows: City of Saugatuck, l 02 Butler Street, Saugatuck, MI 49453; City of the Village of Douglas, 86 W Center Street, Douglas, MI 49406; afld Saugatuck Township, 3461 Blue Star Highway, Saugatuck, Ml 49453; and City of Fennville, 125 S Maple Street. Fennville. MI 49408. ARTICLE VII The purposes for which the Authority is created are: l. To, pursuant to Act 196 of 1986, as amended, plan, promote, purchase, acquire, establish, own, lease, operate or cause to be operated, maintain, improve, enlarge, and modernize a public transportation system within the corporate limits of the incorporating political 1

subdivisions; provided, however, that such services may be extended outside the limits of the incorp orating political subdivisions as authorized by the Authority, if done so under a contract which returns at least the cost of the services to the incorporating political subdivisions; and To do all things reasonably necessary and/or proper for the accomplishment of any 2. of the above purposes.

ARTICLE VIII The Authority is hereby empowered to do anything authorized or permitted by Act 196 of 1986, as amended, and to do any other lawful act reasonably necessary, proper, suitable, or convenient for the achievement or furtherance of the purposes above stated.

ARTICLE IX 1. The Authority shall be directed and governed by a �ight person Board of Directors, herein referred to as the "Board." 2. Two of the Board members shall be appointed by the Saugatuck City Council, two of the Board members shall be appointed by the Douglas City Council, two of the Board members shall be appointed by the Saugatuck Township Board, and two of the Board members shall be appointed by the Saugatuek Township BoardFennville City Commission. The two Board members appointed by each respective political subdivision may be 3 elected officials of the political subdivisions, members of boards or committees appointed by the political subdivisions, or residents over 18 years of age of the appointing political subdivision. 4. Board members shall serve for a term of four years, with the first appointed members, only, appointed for staggering terms of a two year term, and a four year term, per political subdivision. 5. Each Board member will be responsible for attending all regular and special meetings of the Board, or notifying the Chairp erson of an expected absence. The Board will allow for three unexcused absences per fiscal year. In the event a Board member accumulates more than three unexcused absences from regular meetings in a fiscal year, the Board may remove the Board member and request a replacement from the appropriate incorp orating political subdivision. 6. The Board shall hold an initial meeting at a time and place selected and agreed to by the Board members for the purposes of electing officers, adopting bylaws, and taking any other action the Board deems necessary. Thereafter, the Board shall hold at least an annual meeting at such place and time as shall be fixed by the Board. The Board shall, at its initial meeting, and at each annual meeting thereafter, elect a Chairp erson, Vice Chairperson, Treasurer, and Secretary, all of whom shall be members of the Board. The Chairperson shall preside at all meetings of the Board unless the Board, by majority vote of the members present, directs otherwise. The Chairperson shall sign all contracts agreed to by the Board as well as all financial documents, 2

records, papers, and communications ofthe Board, except payroll and routine fmancial documents. The Vice Chairperson shall become Chairperson in the event the office of Chairperson becomes vacant. The Vice Chairperson shall conduct Board meetings and otherwise act for the Chairperson in the Chairperson's absence. The Treasurer shall oversee all financial transactions of the Authority. The Secretary shall keep a record of all meetings in compliance with applicable provisions of Public Act 267 of 1976, as amended (the "Open Meetings Act"), and a record of all the financial transactions of the Board. The Board shall transact such other business as may be necessary at its annual meeting, and shall fix the time and place for regular meetings. The Board shall keep a written or printed record of every meeting, which record 7. shall be subject to the provisions of the Open Meetings Act. The Board shall supply a system of accounts to conform to the system required by 8. law and shall provide for the auditing of said accounts at least once a year by a certified public accountant. The Board may employ a manager or executive director with such duties and 9. authority as shall be determined by the Board. The Board shall adopt rules, regulations, and policies governing the employees, 10. property, and facilities under its jurisdiction. The Board shall prepare, or have prepared, an annual report regarding the operation 11. and fmancial condition of the Authority, which report shall be available to the public. The Board shall adopt bylaws, policies, and procedures it deems reasonably 12. necessary or proper for the conduct of the business of the Board and for accomplishing the purposes for which the Authority was created. The Secretary of the Board shall be charged with the responsibility ofcausing these 13. Articles ofIncorporation to be published and the printed copies of the Articles oflncorp oration to be filed as provided in Act 196 of 1986, as amended.

ARTICLEX The Authority may be dissolved, and political subdivisions may withdraw or be added, in accordance with the provisions of Act 196 of 1986, as amended.

ARTICLE XI These Articles of Incorporation may be amended at any time by a two-thirds vote of approval by the governing bodies of the incorporating political subdivisions.

ARTICLEXII

The Authority became operative on January 1, 1990. The Articles of Incorporation were then amended on October 28, 1998. These, and subsequently restated on June 1, 2015. These Amended and Restated Articles of Incorporation shall become effective on June 1, 2015. the last date signed below .. The Executive Director shall have thethese Amended and Restated Articles of Incorporation published in the Commercial Record, and shall file thethese Amended and Restated Articles oflncorporation with the Michigan Secretary of State, the Allegan County Clerk, and the Director of the Michigan Department of Transportation. The pur_pose of the foregoing Amended and Restated Articles of Incorporation were adoptedis to add the City of Fennville as a member of the Authority. This document was approved by;__Q} an affirmative vote of tv,ro thirdsthe Fennville City Commission: (2) a 2/3 vote of the members of the Authority Board: and (3) a 2/3 vote of the members of the governing bodies of the City of Saugatuck, City of the Village of Douglas, and Township of Saugatuck at meetings held on the following dates: February 17, 2026

Authority Board: City of Saugatuck:

April 27, 2015

City of the Village of Douglas:

April 6, 2015

Township of Saugatuck:

April 1, 2015

City of Fennville: WITNESSES:

CITY OF SAUGATUCK By: ___________ Its: _____ ______ Dated: __________ CITY OF THE VILLAGE OF DOUGLAS By: ___________

Its: -----------Dated: ----------TOWNSHIP OF SAUGATUCK By: ______ 4

Its: _______ _____ Dated: ___________ CITY OF FENNVILLE By: Its: Dated: