Utility Committee Agenda Packet - 7:20 PM

City of Oconomowoc Utility Committee Aldermen: Rosek, Chairman / Aultman Kloth, Secy / Jungwirth Tuesday, February 17, 2026 - 7:20 PM City Hall - Conference Room 3 174 E. Wisconsin Ave. Oconomowoc, WI 53066 (Or Immediately following Protection and Welfare) Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in an accessible format, call the City Clerk’s office at least 48 hours in advance to request adequate accommodations. Tel: (262) 569-2186 1. Call to order and confirmation of appropriate meeting notification 2. Approve Minutes a. Minutes of February 3, 2026 3. Committee Business a. Consider/recommend Resolution 26-R3338 Approving a Contract Extension for Cross Connection Control Program Inspection Services 4. Review Committee Reports a. Utility Billing Report - February 2026 b. Electric Utility Report - February 2026 c. Water Report - February 2026 d. Wastewater Report - February 2026 5. Adjourn Gina Kozlik, City Clerk City of Oconomowoc Members of other City governmental bodies (boards, commissions, committees, council, etc.) may attend the above noticed meeting of the Utility Committee to gather information. The only action to be taken at the above noticed meeting will be action by the Utility Committee. Utility Committee members should notify the City Clerk’s Office at 569-2186 if they are unable to attend. 1 1 Utility Committee - February 03, 2026 City of Oconomowoc Utility Committee Meeting Minutes February 3, 2026 - 6:30 PM Aldermen Present: Charles Schellpeper, Jennifer Aultman Kloth, Erik Jungwirth Also Present: Mark Frye, Kevin Kaari, Tim Reel, Steve Hatton, Matt Mulder, Karen Spiegelberg, Matt Rosek, Kevin Ellis Chairman Rosek called the Utility Committee Meeting to order and appropriate meeting notice was confirmed at 6:30 PM. Approve Minutes a. Minutes of December 2, 2025 Motion to approve the minutes of December 2, 2025 made by Aultman Kloth and seconded by Jungwirth. Motion carried 3-0-0. Committee Business a. Discussion on Construction Management for Wastewater Facilities Upgrade Projects Wastewater Operations Manager Tim Reel reviewed the information in his memo that discussed the current directive requiring separate engineering consultants for design service and construction management contracts. Reel said he sees benefit to allowing engineering consultants to bid on both and would like to pursue that. Rosek indicated concerns with projects coming in over budget. Administrator Frye explained some of the contingencies could be set lower. Rosek appreciated the savings factor with working with the same firm and thought they could bid, adding that the bid ideally would be significantly lower then. Aultman Kloth thought they had issues with the road and contingencies were used but it did not come back to them. Ellis added concerns about accountability. Rosek was not in favor of doing all three unless there was a significant value difference. He also noted 10% of two million dollars is high compared to smaller bids and suggested 2.5% for larger value projects. Reel said he would keep them updated as things move forward. b. Consider/recommend Resolution 26-R3335 Western Sanitary Sewer Hydraulic Analysis Reel explained that there would be a Committee of the Whole presentation for the project scope, but this analysis is for the additional area. Rosek was not in favor of the additional 10% contingency for the work. Motion to recommend Resolution 26-R3335 Western Sanitary Sewer Hydraulic Analysis with the removal of the 10% contingency made by Aultman Kloth and seconded by Jungwirth. Motion carried 3-0-0 Adjourn Motion to adjourn made by Aultman Kloth and seconded by Jungwirth. Motion carried 3-0-0. The meeting adjourned at 6:41 PM. Minutes taken by Gina Kozlik, City Clerk Alderman Aultman Kloth, Secretary 2 1 MEMORANDUM DEPARTMENT - WATER UTILITY Date: February 17, 2026 To: Mayor, Common Council and Utility Committee From: Scott Osborn P.E. – Water Superintendent Re: Consider/Act on Resolution 26-R3338 Approving a Contract Extension for Cross Connection Control Program Inspection Services RELATES TO THE STRATEGIC PLAN Strategic Goal- I – PROVIDE A SAFE AND SECURE COMMUNITY  I.D – Ensuring & testing the accuracy of the backflow devices in commercial and industrial buildings per Wisconsin Administrative Code (WAC) NR810.15 BACKGROUND Section NR 810.15 of the Wisconsin Administrative Code (WAC) states that in order to protect the public water supply system, the water supplier for every municipal water system shall develop and implement a comprehensive cross connection control program. The purpose of the program is the elimination of all existing unprotected cross-connections and prevention of all future un-protected cross connections to the last flowing tap or end-use device. In Oconomowoc, like most other local communities, we accomplish this regulatory requirement by contracting out the required inspection services. High and medium hazard locations have been identified and prioritized and are inspected by a state certified and licensed backflow prevention specialist. The contracted services include sending out all the letters of pending inspections, scheduling appointments and follow-up compliance inspections. ADDITIONAL ANALYSIS Utility staff plan to prepare a full Request for Proposal (RFP) in 2027 to perform the necessary cross- connection inspections (approximately 165 per year) on both high and medium hazard facilities throughout the City. Staff will request a five-year contract with an option to extend it for another 5 years. The City has had a dedicated cross-connection control program for more than a decade using Hydro Corp for the inspections. Our current five-year contract has expired, and staff are recommending a one- year extension of the current contract (per provision in section 4.2 of the 2021 contract). FINANCIAL IMPACT The cost of the one-year extension is estimated to be $19,900. Funds for the work are included in the 2026 budget, Account Number 602-572-6664-210. 3 2 COMMITTEE RECOMMENDATION Motion to recommend to the Common Council approval of a one-year extension with Hydro Corp. for cross connection control program inspection services. SUGGESTED COMMON COUNCIL MOTION Motion to approve Resolution 26-R3338. 4 RESOLUTION NO. 26-R3338 RESOLUTION AWARDING CONTRACT FOR A ONE YEAR EXTENSION OF INSPECTION SERVICES FOR CROSS CONNECTION CONTROL PROGRAM WHEREAS, inspection services are needed for regulatory compliance with Wisconsin Administrative Code (WAC) NR810.15; and WHEREAS, Water Utility has reviewed the terms of the 2021 five-year contract with Hydro Corp, Inc and would like to exercise the one-year extension of the contract at the stated terms; and WHEREAS, Staff will complete a in 2027 a Request for Proposal for a new five-year contract with an option to extend to ten years; and WHEREAS, Utility staff and Utility Committee recommend acceptance of the one-year extension from Hydro Corp, Inc in the amount of $19,900.00 for Cross Connection Control Program Inspection Services. NOW THEREFORE, BE IT HEREBY RESOLVED, the proposal of Hydro Corp, Inc in the sum of $19,900.00 for our Cross Connection Control Program Inspection Services is hereby accepted, and appropriate City officials are authorized to enter into a contract with Hydro Corp, Inc for said work. BE IT FURTHER RESOLVED, that expenditures for this work will be charged to General Ledger Account 602-572-6664-210. DATED: February 17, 2026 CITY OF OCONOMOWOC By: __________________________ Robert P. Mangus, Mayor ATTEST: ___________________________________ Gina Kozlik, Clerk 5 kWh Sold kWh Sold kWh Sold kWh Sold Jan-26 Jan-25 Jan-26 Jan-25 Residential 7,633,440 7,372,635 260,805 3.5% 7,633,440 7,372,635 260,805 3.5% Commercial 2,242,596 2,175,841 66,755 3.1% 2,242,596 2,175,841 66,755 3.1% Large Power 9,350,021 9,519,292 (169,271) -1.8% 9,350,021 9,519,292 (169,271) -1.8% Public Street/Hwy Ltg. 75,885 74,488 1,397 1.9% 75,885 74,488 1,397 1.9% Private Yard Lighting 3,382 3,441 (59) -1.7% 3,382 3,441 (59) -1.7% Total Electric Sales 19,305,324 19,145,697 159,627 0.8% 19,305,324 19,145,697 159,627 0.8% Gallons Sold (Thousands) Gallons Sold (Thousands) Gallons Sold (Thousands) Gallons Sold (Thousands) Jan-26 Jan-25 Jan-26 Jan-25 Residential 24,591 23,367 1,224 5.2% 24,591 23,367 1,224 5.2% Multi Family 6,695 5,675 1,020 18.0% 6,695 5,675 1,020 18.0% Commercial 10,142 9,950 192 1.9% 10,142 9,950 192 1.9% Industrial 2,446 1,666 780 46.8% 2,446 1,666 780 46.8% Public Auth/Muni 468 719 (251) -34.9% 468 719 (251) -34.9% Total Water Sales 44,342 41,377 2,965 7.2% 44,342 41,377 2,965 7.2% Gallons Sold (Thousands) Gallons Sold (Thousands) Gallons Sold (Thousands) Gallons Sold (Thousands) Jan-26 Jan-25 Jan-26 Jan-25 Residential 24,566 23,349 1,217 5.2% 24,566 23,349 1,217 5.2% Commercial A 8,481 11,850 (3,369) -28.4% 8,481 11,850 (3,369) -28.4% Commercial B 8,253 3,835 4,418 115.2% 8,253 3,835 4,418 115.2% Industrial A 1,363 931 432 46.4% 1,363 931 432 46.4% Industrial B 733 456 277 60.7% 733 456 277 60.7% Total Gallons Treated 43,396 40,421 2,975 7.4% 43,396 40,421 2,975 7.4% Note: Quantities sold are amounts invoiced during the month. Due to the timing of billing cycles, the amounts may not match consumption during the calendar month. Y:\Utility Billing\Committee\[Sales Table for Committee 2024.xlsx]CommSummary WATER Volume Increase (Decrease) Percent Increase (Decrease) Volume Increase (Decrease) Percent Increase (Decrease) WASTEWATER Volume Increase (Decrease) Percent Increase (Decrease) Volume Increase (Decrease) Percent Increase (Decrease) OCONOMOWOC UTILITIES - VOLUME STATISTICS Current Month Year To Date ELECTRIC Volume Increase (Decrease) Percent Increase (Decrease) Volume Increase (Decrease) Percent Increase (Decrease) 6 COMMITTEE REPORT – February 2026 Utility Billing Year End Reporting – Work continues preparing for our 2025 year-end financial reporting, audit and PSC annual report. During the year there were about 195 active work order projects. Development work is continuing so staff can further utilize the new OpenPoint software for tracking electric projects and related inventory transactions. Financial auditors are planning their fieldwork for March. After the financial audit, the PSC annual report can be finalized and submitted. Energy Assistance – State law requires the electric utility to collect a monthly Commitment to Community (CTC) fee from all customers. Of the total amount collected, half is forwarded to the statewide Focus on Energy efficiency program. The remaining half is retained locally for low-income customer payment assistance. The payment assistance program availability is promoted on a regular basis in the message boxes on utility invoices. To help enroll additional eligible customers, we will be hosting an in-person enrollment opportunity in March. A representative from Energy Services Inc. will be onsite March 26 for scheduled appointments to assist with the enrollment process. John Schuh, CPA Utility Accounting Manager 7 COMMITTEE REPORT – February 2026 Oconomowoc Electric Utility Did You Know: In late December, during an AT&T cell tower antenna upgrade at the east standpipe location, their contractor inadvertently removed our AMI (automated meter reading) antenna and coax cable. The utility lost its ability to read its 20,000 electric and water meters from that tower location. Both WPPI and our meter vendor alerted us to the issue. We met with the contractor on site, and they put everything back up, but they damaged (kinked) the cable, which caused a serious degradation in the antenna’s reach. After some stern conversations, the contractor ordered a new cable, returned to the site and fixed the AMI system on February 5, 2026. No meters went unread as we also have another AMI antenna in the city at another location. Graph showing 20,000 reads/day, degrading to 400, then only achieving 14,000 reads/day until the cable was replaced. Project Updates: As of February 10, 2026.  The following projects have been completed: o Annual tree trimming to gain clearance around electric equipment and overhead power lines. o Testing of 3-phase, self-contained, meters per the PSC. o Inventory for 2025: Inventory numbers this year came in incredibly accurate.  Electric variance was only $4,748 on a $2MM inventory, a .2% difference Services:  New Services/Meters: 20 new cor-flo services and 15 new electric meters were installed in January. 2 new instrument-rated services were wired in January.  In January, the meter department changed out 11 meters for the PSC required testing/replacement of single-phase meters. 8  Customer calls/issues: o 1/12/26: 159 E Wisconsin Ave, Fiesta Cancun, ½ power out. Repaired. In the process of checking the service, we found a code violation on the customer’s electrical wiring. We worked with the customer to have it repaired. o 1/25/26: Underground secondary main fault on McDowell Ct. affecting 4 customers. Repaired. Traffic Control Lights:  On 2/10/2026 repairs were completed at CTH B/Valley Rd & Old School House Rd. o Waukesha County was contacted for CTH DR & Blue Ribbon Cir. We expect to have all repairs completed by Monday, 2/16/2026. Substations/Metering:  During a cell tower antenna upgrade by AT&T at the east standpipe location, located at 163 Sheldon Rd., AT&T’s contractor inadvertently removed our AMI (automated meter reading) antenna and cable on top of the monopole cell tower. See details above. Training:  In January, our crews received in-house safety training and MEUW safety training with Jeff Helgestad on blood-borne pathogens and fire extinguishers.  Kevin and Lucas attended the MEUW Operations Conference in the Wisconsin Dells. Major projects that have been started and/or are in the works:  Install new feeder CB67 near Mills Fleet Farm  PSC inspections on circuits CB82, CB83, CB85 and CB76 Sincerely, Kevin Kaari Utility Manager City of Oconomowoc kkaari@oconomowoc-wi.gov 9 COMMITTEE REPORT- February - 2026 Water Utility The following are updates for ongoing projects:  Well 8 Pumping Station – o Equipment startup occurring with manufacturers commissioning of equipment  Final disinfection and safe samples = Feb 11th – 13th o WDNR commissioning = Feb 13th o OU staff training – Feb 17th o Continue to process Pay Apps and SDWLP reimbursements o Preparing Punchlist and Warranty period items  COSTCO Well Head Protection Plan Review o Completed and approved with minor conditions Specialty Work:  Large Water Meter Testing o 1 ½-inch – 75% complete o 2-inch thru 6-inch – to be scheduled February to April Customer Interactions:  19 new water meters were installed  75 meter exchanges performed (1,789 of 2,613 complete)  1 water quality complaint Training:  AWWA / WWOA Expo – Feb 10th & Feb 11th for two Water Ops (Dells) Specialty Report: Year-End Reporting Each year Wisconsin water systems are provided with a list of regulatory water samples required to collect. The 2026 requirements include the typical bacteriological, nitrate, fluoride, and disinfection by-products samples, but also this year includes samples for inorganics, PFAS, radionuclides, and lead & copper. Other various year-end reporting requirements for water systems include the following: - Total water withdrawal = 699.8 MG, Max Day = 3.2 MGD, Minimum Day = 1.32 MGD - # of fire hydrant flushed = 1,539 total volume flushed = 17.6 MG - # of system valves turned = 575 - # of new water meters installed = 264 - # of water meter exchanges = 1,085 - # of water main (LF) installed = 1,100 LF (relayed) and 9,400 LF (new developments) - # of public fire hydrants added to system = 24 - # of LSL replacements (private = 5, public = 39) - # of water quality complaints = 20 - # of water break repairs = 13 Respectfully Submitted: Scott Osborn P.E. Water Superintendent 10 Wastewater Utility Committee Report February 2026 I. Accomplishments: a. Septage/Receiving Bldg. – Punchlist items are being worked on. The process was placed into service. b. The Western Sanitary Sewer Study has been completed and was presented to Common Council on Feb. 3rd. The next phase involves a hydraulic analysis from the Study limits back to the treatment facility. This will begin in March. c. The WDNR annual Chloride Report and biosolids annual reports have been completed. d. The cloud based HachRio software programming has been completed to assist with receipt, documentation and invoicing of outside waste. We will be testing the system throughout February with anticipated use date of March 1st. e. The facilities new WPDES permit was finalized by WDNR and EPA. The new permit will go into effect on April 1, 2026 and be in force through March 31, 2030. II. Upcoming Priorities: a. The annual air emission report is due by March 31st. b. Completion and submittal of 2025 Watershed data c. The annual water use report is due by March 31st. d. An RFP for engineering, evaluation and bid services is being developed based on input from the Facility Planning process. III. Challenges: a. The grit system is showing significant signs of wear. The system is comprised of two treatment trains. One was mildly repaired in 2025. Staff removed the other unit for repair. Budgeted replacement of a motor and pump is moving forward. b. We have been having communication faults at several lift stations over the last 6 weeks. We have reached out to our system integrator and have yet to come to a resolution. Efforts are ongoing. IV. OWPP: a. The first phase of invasives removal has taken place along the southern bank of Rosenow Creek north of Parkview Drive. We thank both the Public Works and Parks and Recreation Departments for their assistance with this work. Work will continue on the north side, as conditions allow. V. Safety a. Training for WWTP and City Hall regarding fire extinguisher, hearing conservation and blood borne pathogens. b. Sound testing was completed on forestry and chipping equipment c. Utilization training was held for forestry related skid loader attachments. 11 Aerial image of invasive removal along Rosenow Creek Creek bank view – invasive removal, February 2026 12