Title
Approving a professional services agreement with Lakeside MUD # 5 for professional operations and maintenance services associated with the water and wastewater operations for the district, and authorizing the City Manager to execute the same.
Summary
This Professional Services Agreement (PSA) is to perform water and wastewater system operations and maintenance services for Lakeside Municipal Utility District (MUD) # 5. This PSA is a renewal of the agreement that the City entered into with Lakeside MUD # 5 in 2023. This renewal would be for 3 years and the agreement has been approved by the City’s legal team.
The Lakeside MUD # 5 board has adopted the City’s updated rates and fees to reflect the most recent updates that were passed and enacted rates to recover those costs. This PSA is also to be in compliance with the Lakeside MUD # 5 Comprehensive Development Agreement originally executed in 2004 that states that the District and the City will negotiate a Professional Services Agreement for the City to operate and maintain the water and wastewater system.
As the revenue generated from this agreement will vary based upon the number of connections, and given that the area is currently under construction, the revenue generated will progressively grow as that area continues to construct new homes over the next 3 years.
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.
City Council approved an amendment to the Professional Services Agreement with Lakeside MUD # 5 on July 9, 2024 to amend the agreement to account for water loss within the district being reimbursed to the City by the District.
Deadline for City Council Action
Action is requested on December 9, 2025
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes _X_ No __ N/A __
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