Consent Agreement for Fire Department Sewer Connection and Request to Waive Fees

City Council Agenda Item Report FROM:

Ryan Cummins, City Manager

MEETING DATE:

June 17, 2026

SUBJECT:

Consent Agreement for Fire Department Sewer Connection and Request to Waive Fees

DESCRIPTION: The Saugatuck Fire District station is located in Saugatuck Township. The station is currently served by a small septic system and wishes to connect to the sanitary sewer system. Sanitary sewer service is not available along Blue Star Highway. As a result, the Fire District has submitted a request to connect to the City's sanitary sewer main on Maple Street. The Fire District has also requested that connection fees be waived. The 2012 Sewer Operations Agreement requires a consent agreement for this type of connection: 7.d. Property located in Saugatuck Township and subject to sewer connection pursuant to subparagraph (c) above shall be limited to properties one residential lot deep (typically 120 feet maximum). To the extent properties with depths greater than one residential lot of large acreage tracts are proposed to be connected pursuant to subparagraph (c), then such connection shall be permitted only after Saugatuck Township and the Installing Municipality negotiate a written consent agreement. The City's contractual engineer has reviewed the request and determined that the anticipated sewer flow from the Fire District would be comparable to approximately one to two residential units. The City has adequate infrastructure and available sewer capacity to accommodate the connection. Staff recommends approval of the connection request and waiver of connection fees. In addition, staff recommends that the associated sewer flow initially be allocated against the City's available sewer capacity. If there is a future expansion or change of use, staff recommends that we revisit the capacity allocation.

Legal counsel has prepared a consent agreement, which is attached. BUDGET ACTION: None at this time. LEGAL REVIEW: Legal has reviewed and prepared a consent agreement. SAMPLE MOTION: Motion to approve the Saugatuck Fire District's request to connect to the City's sanitary sewer system via the Maple Street sanitary sewer main, waive applicable connection fees, and approve the consent agreement with Saugatuck Township.

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CONSENT AGREEMENT FOR SANITARY SEWER SERVICE This Consent Agreement for Sanitary Sewer Service (“Agreement”) is made this __ day of ___, 2026 (the “Effective Date”), between the City of Saugatuck (the “City”) and Saugatuck Township (the “Township,” collectively, the “Parties”). WHEREAS, the City and the Township are parties to the July 1, 2012, Sewer System Operations Contract (the “Sewer System Operations Contract”), which, among other things, deals with the use and operation of the Kalamazoo Lake Sewer and Water Authority (“Authority”) wastewater collection treatment system (the “Authority System”) which serves the local sanitary sewer systems of both the City and the Township; WHEREAS, the Sewer System Operations Contract allocates capacity in the Authority System to the constituent municipalities of the Authority, which includes the City and the Township; WHEREAS, the Sewer System Operations Contract provides that property owners within the Township which are located on a boundary street between the City and the Township in which the City has installed a sewer main, may connect to the City’s sewer main upon payment of applicable fees and rates, at which point the capacity allocatable to the property owner will be charged against the City; WHEREAS, the Sewer System Operations Contract provides that if any such Township property owner wishing to connect to the City’s sewer main possesses a lot that is greater than one residential lot deep (typically 120 feet maximum) or otherwise possesses a large acreage tract, such connection may only be permitted upon a consent agreement between the City and the Township; WHEREAS, the Saugatuck Township Fire District (“STFD”) is located within the Township at 3342 Blue Star Highway, Saugatuck, MI 49453, as depicted in the attached Exhibit A (the “STFD Property”), and desires to connect to the Authority System via the City’s sanitary sewer system located in the Maple Street right-of-way; WHEREAS, the STFD Property has a depth of greater than 120 feet and is not adjacent to the City’s Maple Street right-of-way, requiring a consent agreement between the City and Township to allow the connection under the Sewer System Operations Contract; WHEREAS, the Township and the City wish to enter into this Agreement as required by the Sewer System Operations Contract to permit the connection of the STFD Property to City’s Maple Street sewer main. NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows:

1. Grant of Consent. Subject to the terms and conditions of this Agreement, the Township grants to the City nonexclusive consent, permission, right, and authority to provide sanitary sewer service to the STFD Property from the City’s Maple Street sewer main. 2. Understandings Between Parties. The Parties acknowledge that STFD will own its sewer connection lines located within the Township, and that STFD is responsible for constructing, operating, repairing, replacing, and maintaining all parts of said sewer connection lines and any extension thereof, at STFD’s sole expense. The Parties further acknowledge that STFD shall be responsible for obtaining all necessary easements or permissions necessary to connect the STFD Property to the City’s Maple Street sewer main. The Parties finally acknowledge that the City’s responsibility shall be limited to inspecting and the approving the connection to its sewer main and providing sanitary sewer service to the STFD Property after a lawful connection is made, subject to any applicable rules and regulations. 3. Use of Capacity. The Parties acknowledge that, throughout the duration of this Agreement, the STFD Property’s use of capacity in the Authority System shall be counted towards the City’s allocated capacity under the Sewer System Operations Contract. 4. Connections. The Agreement shall not be construed to allow any other Township property owners to connect to the City’s sanitary sewer system. Such connections may only be permitted as provided in the Sewer System Operations Contract or an applicable successor document. 5. Term of Agreement. The term of this Agreement shall be thirty (30) years from the Effective Date and thereafter may be renewed or extended for such term, or terms, as may be agreed upon by the City and the Township. 6. Termination. a. This Agreement shall be automatically terminated if the STFD Property is not connected to the City’s Maple Street sewer main within thirty-six (36) months from the Effective Date. b. The City may, upon ninety (90) days’ written notice to the Township, terminate this Agreement if the City determines, in its discretion, that the STFD Property has expanded or undergone a change in use that materially increases discharge from the STFD Property. Provided, however, that before terminating this Agreement under this subsection, the Parties shall first meet and confer in good faith to discuss alternatives to termination, including but not limited to continuing to provide service to the STFD Property through the City’s sanitary sewer system but with the STFD Property’s discharges counted against the Township’s allocated capacity in the Authority System. c. The Parties may terminate this Agreement by mutual written agreement subject to the terms of such agreement. 2

7. Liability. Except to the extent that the City is the proximate cause, the City shall not be held liable or accountable for any bursting, leakage, breakage, damage, or accident of any kind that may occur to the STFD’s sewer connection lines within the Township or any damages of any kind or nature, including, but not limited to, injury to persons or damage to property, resulting from or alleged to result from such bursting, leakage, breakage, damage, or accident that may occur to said connection lines. 8. Governing Law. The validity of this Agreement is governed by Michigan law. Any action concerning this Agreement shall be brought in Allegan County, Michigan. 9. Amendments. This Agreement may only be amended by the mutual written consent of the City and the Township. 10. Waiver of Breach. The waiver by the City or the Township of a breach of this Agreement is not a waiver of any other breach of this Agreement. 11. Severability. Except as otherwise stated in this Agreement, if any provision of this Agreement is declared by a court of competent jurisdiction to be unenforceable, that declaration does not impair the validity of the remainder of this Agreement, which shall remain in full force and effect. 12. Entire Agreement. This Agreement contains the entire agreement between the Parties and all prior negotiations and agreements are merged into this Agreement. Neither Party has made any representations except those expressly set forth in this Agreement, and no rights or remedies are, or shall be, acquired by either Party by implication or otherwise unless expressly set forth in this Agreement. 13. Default. In the event that either of the Parties fails to comply with any obligations of this Agreement, a written notice of default must be sent by registered mail, return receipt requested, by the non-defaulting Party to the other Party, describing the act of default and demanding a remedy. If the default is not corrected within thirty (30) days after that notice, the nondefaulting Party shall enforce this Agreement in an action in a court of competent jurisdiction in Allegan County, Michigan, under Michigan law. 14. Assignment. No Party to this Agreement shall, without the prior written consent of the other Party, assign, transfer, or convey its interest or any part thereof under this Agreement. This Agreement shall be binding upon the successors in interest of the Parties hereto and shall inure to the benefit of the Parties and their successors and assigns. 15. Mutually Drafted. This Agreement shall be deemed to be mutually drafted and shall not be construed against either Party. 3

16. Headings. The headings of the paragraphs of this Agreement are for convenience only and shall not be used to construe or interpret the scope or intent of this Agreement or in any way affect the same. 17. Counterparts. The Parties agree that this Agreement may be executed by facsimile or in counterparts, and that all counterparts together, with or without facsimile signatures, shall constitute one integrated agreement and be deemed an original document. CITY OF SAUGATUCK

Dated: _________________, 2026

By: __________________________ Holly Anderson, Mayor

Dated: _________________, 2026

By: _____________________________ Jamie Wolters, City Clerk

SAUGATUCK TOWNSHIP Dated: _________________, 2026

By: _____________________________ Its: _____________________________

EXHIBIT A Saugatuck Township Fire District Property Legal Description: COM 1683' N & S 89 DEG 33'04"E 490.68' OF W 1/4 PST TH CONT S 89 DEG 33'04"E 121.30' TO THE W LIN BLUESTAR HIWAY TH S 1 DEG 13'38"E ALG SD W LIN 212.75' TH N 89 DEG 29'23"W 128.25' TH N TO POB SEC 10 T3N R16W (89)