The Saginaw City Council voted 6–2 to withdraw an allocation to SGTI and terminate a subrecipient agreement tied to the SANE project, following recommendations from the city’s consultant, GuideHouse.

Council discussion centered on whether the subrecipient had met required deliverables and whether changes to project location and budget put the grant out of compliance with federal guidance. "One recommendation was that you could terminate the subrecipient agreement and return the funds," City Manager said while summarizing GuideHouse's findings. Council members repeatedly referenced GuideHouse's report and Treasury guidance as the basis for concern about possible repayment obligations.

Councilwoman Wiggins proposed an earlier motion asking staff to coordinate a meeting with the Movement Strategy Center and interested council members to seek additional information; that motion resulted in a 4–4 tie and was denied. "The motion as I recorded it... is to request that city staff coordinate a meeting with interested council members in the Movement Strategy Center to go over the details for due diligence," the clerk read during the meeting.

Proponents of terminating the agreement said the subrecipient had not provided required budgets, measurable outcomes, or documentation requested by GuideHouse. "They haven't provided the information that was requested," the City Manager said, describing the missing documentation and the city's obligation to follow treasury guidance.

Opponents urged further meetings with the involved organizations, arguing some participants were reputable and had done work without receiving compensation. "I would like for this to be put to rest and give them an opportunity to meet," Councilman Bloch said in support of additional discussion.

When the council voted on the termination motion, the roll call showed six "yes" votes and two "no" votes; the clerk declared the motion approved. The council directed staff to proceed per the consultant recommendation; the manager noted that one recommendation had been to designate council members to attend follow-up meetings and to ensure counsel is involved to avoid Open Meetings Act issues.

The council's actions affect ARPA-funded work and may alter how the city administers subrecipient agreements going forward; staff said the council may reallocate recovered funds into two designated city funds.