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AI-11001     New Business      E.        City Council Meeting City Manager    Meeting Date: 07/14/2025   Veolia Water Contract - Fifth Amendment Submitted By: Aaron Sorrell Department: Assistant City Manager - Public Services Council Committee Review?: Council Work Session Date(s) of Committee Review: 07/08/2025 Audio-Visual Needs: None Legal Review: Completed Emergency Legislation?: No Motion/Ordinance/ Resolution No.: 2025-R-7587

Agenda Item Description or Legislation Title A Resolution Authorizing The City Manager To Enter Into A Fifth Amendment To The Operations And Maintenance Agreement With Veolia Water Contract Operations USA, Inc. (first reading) Purpose and Background This legislation authorizes a Fifth Amendment with Veolia Water Contract Operations USA, Inc. for the operations and maintenance of the City's water and wastewater systems.  The changes found in this Fifth Amendment include: Third-party damage reimbursements apply to fire hydrants and water meters. Raises the minor maintenance threshold to $15,000. Creates a "staff vacancy credit" program whereby Veolia Water reimburses the City for positions vacant longer than 90 days. Increases the base fee amount due to market wage adjustments, chemical costs, and increased staffing.

Fiscal Impact Source of Funds: Water Fund/Sewer Fund Cost: $4,980,000 (Estimated) Recurring Cost? (Yes/No): Yes Funds Available in Current Budget? (Yes/No): Yes Financial Implications:

Attachments Resolution Exhibit A 2025-R-7587