Title
Approving an amendment to a professional services agreement with Lakeside Municipal Utility District # 5, and authorizing the City Manager to execute the same.
Summary
The City currently operates and maintains the water and wastewater system for Lakeside Municipal Utility District (MUD) # 5 which is located on north of Kelly Lane and east of Hodde Lane. The City negotiated a 3-year contract with the District to operate and maintain their water and wastewater system that includes billing and collection related services for their customers. As part of this contract, the City of Pflugerville will pay the District’s wholesale water bill to Manville WSC, who is their wholesale water provider, with the revenues collected from the various District customers.
After operating under this Professional Services Agreement, it was identified that there is no mechanism for the City to collect revenues for any water lost within the District’s water system and it would be paid through the revenues that are a portion of the City’s operational fees for operating the District’s system. This amendment to the Professional Services Agreement with Lakeside MUD # 5 would allow for any water lost within the District’s system would have to be paid for by the District in lieu of being paid directly out of the City of Pflugerville’s portion of the operational fee. The City legal team has reviewed and approved this amendment and the Lakeside MUD # 5 board has also approved this amendment.
Prior City Council Action
City Council approved a Professional Services Agreement with Lakeside MUD # 5 on January 10, 2023 for professional operations and maintenance services associated with the water and wastewater operations for the district.
Deadline for City Council Action
Action is requested on July 9, 2024.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: N/A
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: 5/21/24
Supporting documents attached:
Lakeside MUD # 5 - Professional Services Agreement Amendment
Recommended Action
City staff recommends approving an amendment to a Professional Services Agreement with Lakeside Municipal Utility District # 5 and authorizing the City Manager to execute the same.