Public Works Committee — Agenda Packet

Department of Public Works Engineering Division W240 N3065 Pewaukee Road Pewaukee WI 53072 Phone: 262-691-0804 PUBLIC WORKS COMMITTEE MEETING NOTICE AND AGENDA Thursday, March 5, 2026 4:00 PM Pewaukee City Hall Common Council Chambers W240N3065 Pewaukee Road, Pewaukee, WI 1. Call to Order and Pledge of Allegiance 2. Public Comment - Please limit your comments to two minutes. If further time for discussion is needed, please contact your District Alderperson prior to the meeting. 3. Discussion and Action Regarding the Minutes 3.1 Discussion and possible action to adopt Jan 22 2026 meeting minutes. 4. Water and Sewer Division 4.1 Presentation and Discussion Related to Ehlers 2025 Sewer Rate Study Phase 1. [Wagner/Mueller] 4.2 Presentation and discussion related to SEWRPC Sanitary Sewer Service Area Update. [Mueller/Wagner] 5. Engineering Division 5.1 Discussion and possible action regarding the Intergovernmental Agreement Between the City of Pewaukee and Waukesha County Regarding the Municipal Recycling Dividend Program. [Wagner] 6. Public Comment - Please limit your comments to two minutes. If further time for discussion is needed, please contact your District Alderperson prior to the meeting. 7. Adjournment Magdelene Wagner Director of Public Works March 05, 2026 NOTICE It is possible that members of other governmental bodies of the municipality may be in attendance to gather information that may form a quorum. At the above stated meeting, no action will be taken by any governmental body other than the governmental body specifically referred to above in this notice. Any person who has a qualifying disability under the Americans with Disabilities Act that requires the meeting or materials at the meeting to be in an accessible format must contact the DPW Main Office at (262) 691-0804 by 12:00 p.m. the Tuesday prior to the meeting so that arrangements may be made to accommodate your request. Page 1 of 61 City of Pewaukee - New Agenda Item Agenda Language: Discussion and possible action to adopt Jan 22 2026 meeting minutes. Sub Item Agenda Language: Background Provided By: Magdelene Wagner Background: Draft minutes for the January 22, 2026 meeting are attached for your review and approval. Fiscal Impact: Recommended Motion: Committee approve the minutes. Page 2 of 61 City of Pewaukee W240 N3065 Pewaukee Road Public Works Committee Meeting Minutes Thursday, January 22, 2026 In Attendance: Mayor Steve Bierce, Alderman Jerry Wamser, Michael Kreiter, James Blackwood Also In Attendance: Director of Public Works M. Wagner, City Engineer M. Gabbey, Utility Manager J. Mueller, Administrative Assistant H. Jacobs 1. Call to Order and Pledge of Allegiance Mayor Bierce called the meeting to order at 4:00 p.m. and called for everyone to stand for the Pledge of Allegiance. 2. Public Comment - Please limit your comments to two minutes. If further time for discussion is needed, please contact your District Alderperson prior to the meeting. There were no public comments. 3. Discussion and Action Regarding the Minutes 3.1 Discussion and possible action to adopt Dec 10 2025 meeting minutes Motion was made and seconded (M. Kreiter, J. Blackwood) to approve the December 10, 2025 meeting minutes. Motion passed unanimously. 4. Storm Water Management Division 4.1 Discussion and possible action to approve the Intergovernmental Agreement regarding Transfer of Phosphorus and Total Suspended Solids Credits from Fox River Water Pollution Control Center to Others as Part of Fox Illinois Total Maximum Daily Load. [Wagner/Wirtz] Ms. Wagner presented information regarding the Intergovernmental Agreement (IGA). She explained that the Wisconsin Department of Natural Resources (WDNR) is developing a Total Maximum Daily Load (TMDL) limit for the upper Fox River, which will assign pollutant loading limits to each community that must be reduced over time. Two key pollutants included in the TMDL are phosphorus and total suspended solids, both of which are also reduced at the Fox River Pollution Control Center (treatment plant). Ms. Wagner noted that the City of Pewaukee owns approximately 17.22% of the treatment plant, which is primarily owned and operated by the City of Brookfield, with DRAFT Page 3 of 61 ownership shares divided among seven communities. The treatment plant's phosphorus removal level is already set lower than what is anticipated under the TMDL, creating potential credits that communities may receive based on their percentage of ownership and wastewater flows. The proposed agreement outlines how credits will be allocated among the communities and the potential costs for Pewaukee to realize these credits. The Stormwater Utility would reimburse the Sewer Utility for any additional costs associated with accessing these credits. Ms. Wagner emphasized that this is the most economical method for the City to meet requirements that will be established under the TMDL. There were no questions or concerns raised by committee members. Motion was made and seconded (J. Wamser, M. Kreiter) to recommend the approval of the Intergovernmental Agreement to the Common Council. Motion passed unanimously. 5. Engineering Division 5.1 Discussion and possible action to apply for a Joint Quiet Zone for Duplainville Road and Parkside Road with the Village of Pewaukee's Forest Grove Drive, Oakton Avenue, Wisconsin Avenue and Kopmeier Drive. [Wagner/Gabbey] Mr. Gabbey presented information regarding the proposed joint quiet zone. He explained that the City has been pursuing quiet zones throughout its limits, with crossings at various stages of development. Current crossings under review include Watertown Road, Green Road, and Weyer Road along the Canadian National Railway, as well as Springdale Road (in partnership with the City of Brookfield), Duplainville Road, and Parkside Road along the Canadian Pacific Railway. Mr. Gabbey reported that the Village of Pewaukee approached the City about submitting a joint quiet zone application encompassing all crossings along the Canadian Pacific Railway through both municipalities: Duplainville Road, Forest Grove Drive, Oakton Avenue, Wisconsin Avenue, Kopmeier Drive, and Parkside Road. The primary purpose of the joint application would be to expedite the Village's approval process, as its crossings require Alternative Safety Measures that typically involve a lengthy approval timeline. By combining into a joint system, the Village would benefit from quad gate systems already in place at City crossings, thereby lowering the overall risk index and allowing all crossings to be included in a quiet zone without undergoing an extended Federal Railway Administration (FRA) review process. Mr. Gabbey addressed concerns regarding potential crashes affecting the entire quiet zone. He explained that if a crash occurred at one crossing and raised the risk index, the City could file an amended quiet zone application to remove that specific crossing DRAFT Page 4 of 61 while maintaining quiet zone status for the remaining crossings. City staff indicated that a condition of the partnership would require the Village to implement the safety measures at its crossings that would have been required for individual quiet zone establishment, even if those measures might not technically be required under a joint zone. Ms. Wagner confirmed she had discussed this requirement with the Village Administrator, who understood and agreed. Committee members discussed the status of other quiet zones in the area. Mr. Gabbey noted that improvements at the Springdale crossing were complete, but is awaiting completion of improvements at additional crossings by the City of Brookfield. There was also discussion regarding whether the quiet zone could eventually extend through Oconomowoc, although some gaps may remain. Motion was made and seconded (J. Blackwood, M. Kreiter) to recommend to the Common Council moving forward with the establishment of a joint quiet zone with the Village of Pewaukee, including the crossings at Duplainville Road, Forest Grove Drive, Oakton Avenue, Wisconsin Avenue, Kopmeier Drive, and Parkside Road, contingent upon the Village constructing the Alternative Safety Measures that would have been required for individual establishment. Motion passed unanimously. 5.2 Presentation, Discussion, and Possible Action of the Preliminary Layout for the Pewaukee Road Trail Extension Project. [Gabbey] Mr. Gabbey provided background on the Pewaukee Road Trail Extension Project. He explained that in 2024 the City received a residential petition requesting extension of the trail along Pewaukee Road from its current termination at Riverwood Drive north to Tower Place. The Public Works Committee previously directed staff to secure funding and retain a consultant, R.H. Batterman, to conduct feasibility studies. The consultants presented two alternatives: • Alternative 1 (yellow line): Along Highway 164 at an estimated cost of $1,334,000 • Alternative 3 (blue line): Utilizing private paths through the commercial area at an estimated cost of $1,131,000 The committee engaged in discussion regarding the merits of each alternative. Mayor Bierce stated that he viewed the alternatives as fundamentally different in purpose. He noted that the yellow path would complete an unfinished segment but would place pedestrians in proximity to high-speed traffic. In contrast, the blue path would provide a more leisurely route that could better serve residents in the Avondale area as well as employees in the commercial district. Alderman Wamser commented on the potential for future mixed-use development in the area and suggested the blue path would be more relaxing and appealing to residents who may feel uncomfortable near highway traffic. DRAFT Page 5 of 61 Mr. Blackwood expressed concern that the business park area may feel isolated on weekends, which could make some users uncomfortable. However, he also noted that the highway route is extremely noisy, which would make conversation difficult for trail users. The committee also discussed potential connections to ProHealth Care. Mr. Blackwood questioned whether City taxpayers should fund the estimated $200,000 switchback ramps that would primarily benefit ProHealth. Following additional discussion regarding lighting, safety, and maintenance considerations, the committee agreed that the blue alternative with a single connection at the rear of ProHealth was preferable. Ms. Wagner noted that easements from private property owners would be required. However, businesses may support the project if the city assumes maintenance responsibilities. Motion was made and seconded (J. Wamser, J. Blackwood) to recommend that staff pursue the blue line alternative with the rear connection to ProHealth. Motion passed unanimously. 6. Public Comment - Please limit your comments to two minutes. If further time for discussion is needed, please contact your District Alderperson prior to the meeting. There were no public comments. 7. Adjournment Motion was made and seconded (J. Wamser, J. Blackwood) to adjourn the meeting at 5:09 p.m. Motion passed unanimously. Respectfully Submitted Magdelene Wagner Director of Public Works DRAFT Page 6 of 61 City of Pewaukee - New Agenda Item Agenda Language: Presentation and Discussion Related to Ehlers 2025 Sewer Rate Study Phase 1. (Wagner/Mueller) Sub Item Agenda Language: Background Provided By: Magdelene Wagner/Jane Mueller Background: The Sewer Utility embarked on a rate study last year with Ehlers to evaluate the rates being charged by the Sewer Utility to its customers to support the operation and maintenance of the sanitary sewer system. Ehlers made the presentation at the February 16, 2026 Common Council meeting discussing the Sanitary Sewer Rate Study Phase 1. The Council directed Ehlers and staff to complete Phase 2 of the Sewer Rate Study and provide a rate adjustment resolution at a future meeting. Fiscal Impact: Recommended Motion: Page 7 of 61 City of Pewaukee, WI 2026 Sewer Rate Study Phase 1: Long-Range Cash Flow Analysis January 19th, 2026 Common Council Meeting Page 8 of 61 2 Rate Structure & Other Considerations Fair and Equitable Develop Self Sustaining Rates Sewer Rate Study Purpose Page 9 of 61 3 Phase 1: Revenue Requirement Compares revenues of the utility to its expenses to determine the overall level of rate adjustment Phase 2: Cost of Service Equitably allocates the revenue requirements between the various customer classes of service Phase 2: Rate Design Design rates for each class of service to meet revenue needs of the utility along with any other rate design goals and objectives Sewer Rate Study Process Page 10 of 61 4 •Ehlers to identify rate revenue adjustments necessary for fiscal sustainability (1.4 debt coverage & healthy reserves) and moderate one-time adjustments •Our Process  Historical Rate and Financial Performance  Future Projections  O&M and Depreciation  Funding Project(s): Debt vs. Cash  Rate Impact How do we determine Self-Sustaining Rates? Page 11 of 61 5 Rate Revenue Determination Cash Basis + Op. and Maint. Expenses + Taxes/Transfer Payments + Debt Service (P&I) + Capital funded from rates - Less Non-rate Revenue = Total Revenue Requirements Utility Basis - PSC + Op. and Maint. Expenses + Taxes/Transfer Payments + Depreciation + Rate of Return on Rate Base - Less Non-Rate Revenue = Total Revenue Requirements How much revenue should we generate from user rates? Page 12 of 61 6 Historical Rate Performance Rates inadequate on a cash basis. Rates inadequate on a utility basis (method used by PSC) •The City last adjusted rates in 2021 at 28% Page 13 of 61 7 Historical Financial Indicators •Reserves to fund deficits and capital (5 mo. Target) •Current assets estimated to be 27% depreciated Page 14 of 61 8 Current Capital Project List 2026-2031 Projects Funding 2026 2027 2028 2029 2030 2031 Totals Spice Creek Lift Station Rehab Cash 125,000 125,000 0 0 0 0 250,000 Kopmeier Lift Station Village of Pewaukee Cash 1,000,000 0 0 0 0 0 1,000,000 Kopmeier Lift Station City of Pewaukee Cash 0 0 150,000 1,000,000 0 0 1,150,000 Forest Grove Lift Station Upgrade/Replacement G.O. Debt 0 0 3,500,000 0 0 0 3,500,000 Forest Grove Lift Station Upgrade/Replacement Cash 0 1,000,000 0 0 0 0 1,000,000 Sherwood Lift Station G.O. Debt 1,250,000 2,750,000 0 0 0 0 4,000,000 Meadowbrook Lift Station-Rehab G.O. Debt 200,000 0 0 0 0 0 200,000 Meadowbrook Lift Station-Rehab Cash 0 2,250,000 0 0 0 0 2,250,000 Glacier Ridge Lift Station G.O. Debt 0 75,000 850,000 0 0 0 925,000 Broken Hill Lift Station Expansion G.O. Debt 0 0 0 0 0 3,500,000 3,500,000 Broken Hill Lift Station Expansion Cash 0 0 0 200,000 200,000 400,000 Lift Station Security Upgrades Cash 25,000 25,000 25,000 25,000 25,000 25,000 150,000 Trailer - Tools/equipment Cash 0 0 0 0 15,000 10,000 25,000 Sewer Jetter(Shared w/stormwater) Cash 18,000 18,000 18,000 18,000 18,000 18,000 108,000 Sherwood Forest/Busse Rd G.O. Debt 200,000 3,800,000 0 0 0 0 4,000,000 Rolling Ridge Sewer I G.O. Debt 175,000 1,600,000 0 0 0 0 1,775,000 Rolling Ridge Sewer II G.O. Debt 0 200,000 1,750,000 0 0 0 1,950,000 Kopmeier sewer re-lay under Pewaukee lake G.O. Debt 2,900,000 0 0 0 0 0 2,900,000 Lindsay Road - Balmer Park to Swan Road Cash 0 0 0 0 100,000 0 100,000 Lindsay Road - Balmer Park to Swan Road G.O. Debt 0 0 0 0 0 1,500,000 1,500,000 Sanitary Sewer Lining Cash 0 0 0 500,000 750,000 0 1,250,000 Sanitary Sewer Lining G.O. Debt 500,000 500,000 500,000 0 0 750,000 2,250,000 SCADA software upgrade (sewer portion) Cash 10,000 10,000 10,000 10,000 50,000 37,500 127,500 PLC & Control Upgrades (sewer portion) Cash 22,500 22,500 22,500 25,000 25,000 27,500 145,000 Radio Upgrade - SCADA (sewer portion) Cash 0 25,000 25,000 0 0 0 50,000 Surveying equipment (sewer portion) Cash 0 0 0 0 0 17,500 17,500 Mapping GIS (sewer portion) Cash 0 0 0 0 7,500 7,500 15,000 Utility Truck (sewer portion) Cash 41,000 46,500 37,500 37,500 42,500 42,500 247,500 Utility Computers and mobil devices (sewer portion) Cash 4,250 5,000 5,000 5,000 5,000 5,000 29,250 Utility Billing Software (sewer portion) Cash 11,000 0 0 15,000 0 0 26,000 ESRI - Software for GIS & Open Gov (sewer portion) Cash 0 0 0 0 0 10,000 10,000 Furniture/Remodel (sewer portion) Cash 17,500 10,000 0 0 0 0 27,500 Actual CIP Costs 6,499,250 12,462,000 6,893,000 1,835,500 1,238,000 5,950,500 34,878,250 Sources of Funding 2026 2027 2028 2029 2030 2031 G.O. Debt 5,225,000 8,925,000 6,600,000 0 0 5,750,000 26,500,000 Cash 1,274,250 3,537,000 293,000 1,835,500 1,238,000 200,500 8,378,250 Total 6,499,250 12,462,000 6,893,000 1,835,500 1,238,000 5,950,500 34,878,250 Page 15 of 61 9 Current Capital Project List Highlights •Estimated Capital Projects in 2024 total $4,437,085 •Estimated Capital Projects in 2025 total $3,319,500 •Estimated Capital Projects in 2026 total $6,499,250 •Year-end cash balance 2023 $20,790,513 •Borrowing anticipated for Capital projects in 2026, 2027, 2028 and 2031 Page 16 of 61 10 Do Nothing – Cash Depleted by 2029 Page 17 of 61 11 10-year Cash Flow Analysis Page 18 of 61 12 •Plan keeps reserves at minimum target Projected Reserves 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Reserves - Actual vs. Target Target Ending Cash Page 19 of 61 13 Impact on Avg. Res. Bill: Percent increase Year Increase Sewer Operating REU Charge1 Sewer Administrativ e Charge2 Utility Bill (Quarterly) Change Over Prior Year Utility Bill (Annual) Change Over Prior Year % of MHI (112,093) Year 2025 110.30 30.70 141.00$ 564.00$ 0.50% 2025 2026 14.65% 126.45 35.20 161.65$ 20.65$ 646.60$ 82.60$ 0.58% 2026 2027 14.65% 144.97 40.35 185.33$ 23.68$ 741.30$ 94.70$ 0.66% 2027 2028 14.65% 166.21 46.26 212.47$ 27.14$ 849.87$ 108.57$ 0.76% 2028 2029 14.65% 190.55 53.04 243.59$ 31.12$ 974.35$ 124.47$ 0.87% 2029 2030 3.00% 196.27 54.63 250.89$ 7.31$ 1,003.58$ 29.23$ 0.90% 2030 2031 3.00% 202.15 56.27 258.42$ 7.53$ 1,033.68$ 30.11$ 0.92% 2031 2032 3.00% 208.22 57.95 266.17$ 7.75$ 1,064.69$ 31.01$ 0.95% 2032 2033 3.00% 214.47 59.69 274.16$ 7.99$ 1,096.63$ 31.94$ 0.98% 2033 2034 3.00% 220.90 61.48 282.38$ 8.22$ 1,129.53$ 32.90$ 1.01% 2034 2035 3.00% 227.53 63.33 290.85$ 8.47$ 1,163.42$ 33.89$ 1.04% 2035 Total Change over planning period 149.85$ 599.42$ Notes: 1. The current Sewer operating charge takes into considerationg the annual Operating, Maintenance and Debt expenses of the utility then assigns a cost per residential equivalent unit (REU). 2. The Sewer Administrative charge consideras administrative charges like billing, accounting and insurance and charges quarterly per customer fee. Sewer Page 20 of 61 14 •Phase 2 allocation of costs to define appropriate variance between Operating Charge and Administrative Charge •Continually define long term capital needs •This plan identifies the minimum recommended revenue adjustments given all current facts and circumstances with following goals  Max use of cash while maintaining reserves benchmark  Keep “All-in” Debt Coverage around 1.4 (minimum recommendation) •Identify other ratemaking goals (if any) Sewer: Recommendations TONIGHT’s ACTION: Consensus on sewer rate approach Page 21 of 61 15 Questions? Page 22 of 61 City of Pewaukee - New Agenda Item Agenda Language: Presentation and discussion related to SEWRPC Sanitary Sewer Service Area Update. (Mueller/Wagner) Sub Item Agenda Language: Background Provided By: Jane Mueller/Magdelene Wagner Background: The Utility has had several inquiries about providing municipal sewer and water service to several areas of the City for potential new development. The most recent interest is for development of the northwest quadrant of the City. At a meeting with Southeastern Wisconsin Regional Plan Commission (SEWRPC) last year, SEWRPC staff advised the City to prepare a request for consideration of a Sanitary Sewer Service Area Plan Update instead of a smaller plan amendment which was previously considered for smaller geographical areas due to that age of our Sanitary Sewer Service Area Plan and the amount of acreage we area adding. This is a critical plan for any Wisconsin Department of Natural Resources approval of sanitary sewer extensions within the community. Last week, City staff submitted the request to SEWRPC to review the remaining "unmapped and unsewered" areas of the City to include them in a City of Pewaukee Sanitary Sewer Service Area Plan. SEWRPC will review all environmental areas in the City, topography, and adjacent communities to our current plan as well as our current and future sewer capacity. SEWRPC's plan update/review is expected to take up to one year to complete. Fiscal Impact: Recommended Motion: Page 23 of 61 Page 24 of 61 Page 2 BACKGROUND CITY OF PEWAUKEE SANITARY SEWER The City of Pewaukee (City) owns wastewater collection and conveyance facilities that serve its residential, commercial, institutional and industrial dischargers. According to the 2020 United States Census, the City has a population of approximately 15,914. The City operates and maintains 12 sanitary lift stations and approximately 77 miles of sanitary sewer within the current Sewer Service Area (SSA). Figure 1.01-1 (Source: Strand Associates) illustrates the existing SSA, which follows the City’s municipal boundary. Lake Pewaukee Sanitary District (LPSD) also operates a sanitary sewer system within the corporate limits of the City. LPSD operates the collection system on the south and west sides of Pewaukee Lake, as well as lands within the Town of Delafield on the north and west ends of the lake. Portions of the City and LPSD’s sewage flows through a common conveyance pipe (owned by LPSD) to the Village of Pewaukee. The City has purchased approximately 17.48% capacity in the Fox River Water Pollution Control Center (FRWPCC), the regional wastewater treatment plant located in the City of Brookfield. The FRWPCC provides treatment for some of the flow from the Village of Menomonee Falls and all flows from the Village of Pewaukee, the City of Pewaukee, LPSD, the Town of Brookfield Sanitary District No. 4, and the City of Brookfield. A small portion of the City’s wastewater is treated by the City of Waukesha Wastewater Treatment Plant (WWTP). The City participates in multiple intergovernmental agreements (IGAs) with neighboring communities. Shared sanitary sewer infrastructure is maintained between the City and the Village of Pewaukee, LPSD, the Town of Brookfield and the City of Brookfield. Shared segments of infrastructure include sanitary sewer interceptors and lift stations which are governed by IGAs between the respective municipalities. The City owns and maintains 12 sanitary sewer lift stations with approximately 4.2 miles of force main of varying sizes. The City also maintains five flow metering stations throughout the collection system to monitor flows within each sewer flow basin. Page 25 of 61 Path: S:\MAD\4600--4699\4621\011\Drawings\GIS\Figures\Basin Boundaries 11x17.mxd User: danc Date: 3/4/2022 Time: 9:16:42 AM CITY OF PEWAUKEE SEWER SERVICE AREA (SSA) AND FRWPCC WASTEWATER MASTER PLAN CITY OF PEWAUKEE WAUKESHA COUNTY, WISCONSIN FIGURE 1.01-1 4621.011 City of Waukesha Meadowbrook No. 1 Meadowbrook No. 2 LPSD Tributary Area Kopmeier Glacier Ridge Ryan Park Overhill No. 1 Swan View Broken Hill No. 2 Broken Hill No. 1 Overhill No. 2 Trinity/Green No. 2 Springdale Estates Jericho Quarry Bluemound Industrial No. 2 Bluemound Industrial No. 1 Gun Club No. 3 Gun Club No. 2 Trinity/Green No. 1 Gun Club No. 1 Still River No. 2 Still River No. 1 Spice Creek Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), (c) OpenStreetMap contributors, and the GIS User Community / 0 1,500 3,000750 Feet Legend Sanitary Sewer City Limits Page 26 of 61 Page 3 SEWER SERVICE AREA PLANNING FOR THE CITY OF PEWAUKEE The Southeastern Wisconsin Regional Planning Commission (SEWRPC) completed a regional sewer service area plan for the multiple municipal agencies within the Pewaukee sewer service area in June 1985. The Regional Planning Commission adopted the report that same month. Subsequent plan amendments occurred in the following years: • Amended December 1986 (Town of Pewaukee and City of Waukesha) • Amended March 1997 (Town of Pewaukee) • Amended June 2002 (City of Pewaukee and City of Waukesha) • Amended December 2005 (City of Pewaukee) PROPOSED SANITARY SEWER SERVICE AREA The current sanitary sewer service plan for the City is documented in SEWRPC Community Assistance Planning Report No. 113. The City is requesting a comprehensive review of the City’s Sewer Service Area Plan with an eye to the future. The City requests that all currently unsewered lands within the City limits be included in the City’s SSA plan. The proposed additions to the current City sanitary sewer service area are illustrated in Figure 5.03-1 (Source: Strand Associates). In 2023, the City worked with Strand Associates to prepare a Sanitary Sewer Master Plan. Strand Associates conducted a comprehensive review of the City’s existing sewer facilities and infrastructure and evaluated existing and future sewer flow projections using hydraulic modeling. Strand Associates conducted detailed evaluations in several areas where there is anticipated development in the near future. Appendix A (Source: Strand Associates; see link below) contains the City of Pewaukee Sanitary Sewer Master Plan. Please note the following sections for reference in preparing the Sewer Service Area Plan: Section 1 – Introduction Section 2 – Sanitary Sewer System Review Section 3 – Lift Station Capacity Assessment Section 4 – 2022 Flow Monitoring Study Section 5 – Summary of Existing Flows and Future Flow Projections Section 6 – Sanitary Sewer Hydraulic Modeling Section 7 – Focused Study Areas Section 8 – Recommended Capital Improvement Plan Link to Appendix A https://www.dropbox.com/scl/fi/apcnzf8024cgwpnz78161/Appendix-A-Pewaukee-Sanitary- Sewer-Master-Plan.pdf?rlkey=gw6t75ezd5swlvaem6ixdzm4r&st=na9s94qj&dl=0 Page 27 of 61 Path: S:\MAD\4600--4699\4621\011\Drawings\GIS\Figures\Development Areas 11x17.mxd User: Danc Date: 8/14/2023 Time: 7:57:46 AM SANITARY SEWER SERVICE EXTENTS FOR EACH PLANNING PERIOD WASTEWATER SYSTEM MASTER PLAN CITY OF PEWAUKEE WAUKESHA COUNTY, WISCONSIN FIGURE 5.03-1 4621.011 ¬«24 ¬«11 ¬«3 ¬«23 ¬«1 ¬«2 ¬«25 ¬«21 ¬«20 ¬«22 ¬«15 ¬«4 ¬«19 ¬«13 ¬«14 ¬«17 ¬«9 ¬«8 ¬«7 ¬«18 ¬«16 ¬«12 ¬«5 ¬«10 ¬«6 EB I94 WB I94 STH 16 CTH F CTH M STH 190 STH 164 CTH SR CTH SS CTH JJ CTH G CTH JK CTH Y USH 18 LINDSAY RD NORTHVIEW RD CTH T SILVERNAIL RD CTH J STH 318 CTH KE CTH DR CTH KF GREEN RD DUPLAINVILLE RD SWAN RD GLACIER RD CTH FT CTH K WEYER RD PAUL RD WATERTOWN RD HICKORY ST MAIN ST OAKTON RD WOODRIDGE LN N UNIVER SITYDR AVIATIONDR W O LF R D GUMINA RD BUSSE RD EMSLIE DR QUI NLANDR PARKAVE E WISCONSIN AVE ROLLINGRIDGE DR BIRCH DR WWISCONSIN AVE FIELDSID E RD RUBEN DR CAPITOL DR IMPERI AL DR EASY ST PATRICK LN PRIVATE RD STONE RIDGE DR JOHNSON DR S ARATOGARD E MAIN ST ALLEY PEBBLE VALLEYRD PINE ST LAKEVIEW DR CECELIA DR DELAFIELD ST AVALON DR DORA L RD AIRPOR T RDALDORO DR SUNKIST AVE EB I94 ON RAMP SUSSEX ST BARTLETT DR OAK ST LOUISAVE LAKESIDERD MEADOWOODLN RIDGEVIEW PKWY W ARRO WHEAD TRL ROCKY POINT RD GATEW AY RD LAKE ST KOSSOW RD NORTH AVE STARDUST DR SUNNYRIDGE RD ANN RITA DR SIERRA DR MORRIS ST HIGH ST HILLCREST DR W ESTFIELD WAY KOPMEIER DR BURNINGWOOD LN ISHNALATRL STILL RIVER DR DE CARLIN DR ROUNDY DR LAKEFIELD DR HILLWOO D BLVD SPRINGDALE RD WOODLAND DR FATIMA DR MARY LYNN DR ALM ESBURY AVE LAKE PARKDR WOODBUR N RD MIDDLEFIELD RD B UTLE RDR ENTERPRISE AVE RE D FOX DR WB I94 OFF RAMP WB I94 ON RAMP PARKLAW N DR S HEPHERDSWAY ROUGH HI LL RD SPRING HILL DR OLD NOR TH SHO RE DR CATSKILLRD OAKRIDGE DR PARKHILL DR RIVER RD SHADY LN N GRANDVIEW BLVD WBSTH 16 OFF RAMP SUNSET DR EB STH 16 ON RAM P WILDWOODLN SYLVAN TRL EB I94 OFF RAMP EASTM OUND DR YENCH RD GREENWA Y TER BROOK PARK DR TALLGRASSCIR OAK CIR PITZKA RD S AWGR ASS LN BRYN DR TENNYSON DR COACHMAN DR KERI CT OAK HI L L LN MARJEAN LN MIAMI DR ROGER RD RIVERWOOD DR CHICORYLN LANCELOT DR QUAIL CT SCOT DR RIDGEL INE DR CR EST LN ARCH ERYDR BARBERRY ST JOSEPH RD ABERDEE NDR SHELLEY LYNN DR EPARKWAYMEADOW CIR CARMELITE RD WALNUT TRL TOWER PL PETERS DR DUNDEE RD W ILDERNESS WAY KATHRYN CT BEAVERCT HUGHES LN LORI LN RIVER LN W ATER ST ATLANTIC DR PRIVATE RD PRIVATE RD WB I94 ON RAMP PRIVATE RD WB I94 OFF RAMP SUSSEX ST WBI94ONRAMP PRIVATE RD CTH JK PRIVATERD CTH G USH 18 STH 318 PRIVATE RD HIG H ST P RIVATERD STH 190 STH 16 CTH JJ PRIVATE RD OAK ST STH 164 PRIVATE RD CTH DR LAKE ST Legend Existing 2035 2050 City Limits / 0 1,500 3,000750 Feet Basin 1 - Gun Club No. 1 2 - Gun Club No. 2 3 - Gun Club No. 3 4 - Meadowbrook No. 1 5 - Meadowbrook No. 2 6 - Spice Creek 7 - Kopmeier 8 - Glacier Ridge 9 - Trinity/Green No. 1 10 - Trinity/Green No. 2 11 - Overhill No. 1 12 - Overhill No. 2 13 - Broken Hill No. 1 14 - Broken Hill No. 2 15 - Still River No. 1 16 - Still River No. 2 17 - Bluemound Ind. No. 1 18 - Bluemound Ind. No. 2 19 - Jericho 20 - Swan View 21 - Ryan Park 22 - Springdale Estates 23 - Quarry 24 - LPSD Tributary Area 25 - City of Waukesha Aerial Source: Google Maps Page 28 of 61 Page 4 NEIGHBORING COMMUNITY OUTREACH In May 2025, the City sent an informational letter to adjacent communities and agencies advising them of the City’s intent to further define and update its Sewer Service Area for future planning purposes (Exhibit 1). Letters were sent to the following (Exhibit 2): City of Brookfield Village of Lisbon Town of Brookfield Sanitary District No. 4 Town of Merton Dela-Hart WPCC Village of Pewaukee City of Delafield Village of Sussex Town of Delafield Sussex WWT Lake Pewaukee Sanitary District City of Waukesha Village of Hartland COMMUNITY RESPONSE The City received responses from the following communities: • City of Brookfield (Exhibit 3) • Village of Hartland (Exhibit 4) • City of Waukesha (Exhibit 5) • Village of Pewaukee (Exhibit 6) To date, the City has received no objections to its pursuit of an updated Sanitary Sewer Service Area Plan, and no communities have requested to include additional areas in the revised service plan. Page 29 of 61 Ja ne E. Mueller, Utility Manager Department of Public Works Water & Sewer Utility W240N3065 Pewaukee Road • Pewaukee, WI 53072 Phone: (262) 691-0804 • Fax: (262) 691-5729 Email: publicworks@pewaukee.wi.us Ma y 8, 2025 D ear Neighbor: T he City of Pewaukee is embarking on a Sanitary Sewer Service Area (SSA) Plan Update with the Southeast Wisconsin Region Plan Commission (SEWRPC). This update aims to identify areas of the City of Pewaukee that are not currently included in a mapped SEWRPC SSA. A s you are a neighbor to the City of Pewaukee border or an adjacent SSA Wastewater Treatment Plant (WWTP) operator, we are notifying you of our planning efforts in accordance with SEWRPC’s procedures. If you are aware of any potential SSA changes that should impact the City of Pewaukee SSA or could be considered in the City of Pewaukee SSA update, we kindly ask that you notify us of these changes by June 4, 2025. T his SSA Plan Update is intended to address all anticipated changes for the next 10 to 20 years. These changes: • May include any addi�ons or dele�ons to the exis�ng SSA, • May include any boundary adjustments between two or more adjacent SSAs, • Are intended to foster comprehensive and coopera�ve sewer service area planning, and • Should be consistent with the local community’s comprehensive plan and with the tributary WWTP’s Facility Plan. It is important to note that incorporating the changes now helps avoid the need for future SSA Amendments and additional public hearings. C urrently, the City of Pewaukee has received inquiries regarding sewer service in Sections 4, 5, and 6; areas generally located north of Highway 16, south of Lynndale Road (CTH JK), west of Sussex Street, and east of the city limits. However, we will pursue the inclusion of the remaining unmapped areas of the City of Pewaukee in our SEWRPC planning efforts. I f you wish to request the inclusion or removal of any areas in this SSA update, please provide the following to the City of Pewaukee and SEWRPC: • A map iden�fying the area(s) to be added to and/or removed from the SSA; • The planned land uses for the area(s); • Es�mated sewage flows from each planned land use; • Confirma�on that these changes are consistent with the municipal’s comprehensive plan; • Projected sewage flows from any major an�cipated developments or redevelopments not already accounted for in the WWTP Facility Plan; • A leter of support for the proposed plan changes from the WWTP . (Over) Exhibit 1 Page 30 of 61 Page 2 Note: This proposed update specifically pertains to the Pewaukee SSA, which flows to the Fox River Water Pollution Control Center and the City of Waukesha WWTP. Please direct your responses or questions to Jane Mueller, Utility Manager, by June 4, 2025, for inclusion in our planning process. Sincerely, Jane E. Mueller Utility Manager Page 31 of 61 May 8, 2025 D avid Buechl Tom Koepp Village of Pewaukee Lake Pewaukee Sanitary District 235 Hickory Street N25W27534 Oak Street Pewaukee, WI 53072 Pewaukee, WI 53072 T ony Skof Tom Grisa Sanitary District #4 City of Brookfield 645 N. Janacek Road 2000 N. Calhoun Road Brookfield, WI 53045 Brookfield, WI 53005 Al ex Damien Michelle Luedtke City of Waukesha Town of Delafield 201 Delafield Street W302N1254 Maple Avenue Waukesha, WI 53188 Delafield, WI 53018 R ob Minnema Dan Green Dela-Hart WPCC Village of Lisbon 416 Butler Drive W234N8676 Woodside Road Delafield, WI 53018 Sussex, WI 53089 Ju dith Neu Jon Baumann Village of Sussex Sussex WWTP N64W23760 Main Street N59W23551 Clover Drive Sussex, WI 53089 Sussex, WI 53089 S andee Policello Donna Hann Village of Hartland Town of Merton 210 Cottonwood Avenue PO Box 128 Hartland, WI 53029 North Lake, WI 53064 T om Hafner City of Delafield 111 Main Street Delafield, WI 53018 Exhibit 2 Page 32 of 61 Exhibit 3 Page 33 of 61 Page 34 of 61 Exhibit 4 Page 35 of 61 Exhibit 5 Page 36 of 61 Exhibit 6 Page 37 of 61 City of Pewaukee - New Agenda Item Agenda Language: Discussion and possible action regarding the Intergovernmental Agreement Between the City of Pewaukee and Waukesha County Regarding the Municipal Recycling Dividend Program. [Wagner] Sub Item Agenda Language: Background Provided By: Magdelene Wagner Background: As many of you are aware, Waukesha County is the responsible unit (RU) for many communities, including the City of Pewaukee, in Waukesha County which was designated in 1990. As part of the designation, the City is obligated to follow Waukesha County's recycling program and take all our recycling material to their designated location. The location since 2015, was the Joint Material Recovery Facility (MRF) located in the City of MIlwaukee. The MRF experienced a fire in May 2023. The fire significantly damaged the infrastructure at the facility. In response, Waukesha County completed a study to determine the best way to move forward with the recycling processing. In 2024, the County let a request for proposals for Recycling Processsing and Marketing which it ultimately awarded to Waste Management (WM) in Germantown, WI. Since May 1, 2025, the City's recycling hauler has been dropping our materials at WM for processing. The County is requesting we update the IGA with the new location. They also updated some language throughout the IGA. Several communities attempted to discuss terms of the IGA with the County which was met with resistance. In the end, the legislation related to RU's has no way to allow communities to opt out of the designation of the County as our RU. Without support from the legislation and the County unwilling to change or add language to the IGA, there is little we can do to change the IGA. Items we asked the County to consider were: 1. Add language back into the IGA to protect the City from additional hauling costs if we are required to take our recycling to another facility. This language was in previous agreements, but removed in this IGA. The County stated that the City's are protected by the County's contract with WM, although the City is not specifically mentioned. The County argued that the term "COUNTY" in their contract includes all 25 communities under their umbrella of RU. In addition, they have stated WM is responsible for all recycling dropped at the center and any potential re-routing of materials which the County had this responsibility under the old IGA and MRF operations. 2. Add language that the County must convene a group meeting prior to adjusting the MRF Fund's Working Capital (ceiling and floor) limits to allow for input and justification of the adjustment. The County is stating they will do this, but will not add the language Page 38 of 61 into the IGA. 3. Add language to understand the Education Program which the County is responsible for to allow better flow of information to the communities to support their education outreach and verification of meeting the state requirements. The County is stating they will do this, but will not add the language into the IGA. 4. Open transparency of the budget related to the program. The County is stating that we can review the budget at anytime online but they are not going to allow the communities to help them create the budget for this program. After several emails, phone calls, and a meeting, the County will not change the language in the IGA and encourages all communities to sign the agreement. They have sent a notice of termination for the existing agreement, which will expire 1 year from the date of the termination letter per the current IGA. The termination of the IGA does not change where we take our recycling, but will eliminate us from the potential dividend payments in the future. At this time, the City Staff have exhausted the discussion regarding the IGA with the County. In order to preserve the possibility of dividend payments for the program, Staff recommends signing the agreement. Staff will continue to press the County for more transparency and will continue the discussion with other communities about IGA and future possibilities. The City has partnerships with the County on many functions and it is important to maintain a good working relationship with the County. Fiscal Impact: Recommended Motion: Committee recommend approval of the agreement to the Common Council for further action. Page 39 of 61 Page 40 of 61 Page 41 of 61 Page 42 of 61 Page 43 of 61 Page 44 of 61 Page 45 of 61 Page 46 of 61 Page 47 of 61 Page 48 of 61 Page 49 of 61 Page 50 of 61 Paul Farrow Dale R. Shaver County Executive Director Waukesha County Department of Parks and Land Use September 5, 2025 Re: 2026 Recycling Dividends and Tip Fees To Whom It May Concern, We extend our gratitude for your ongoing partnership in the Waukesha County Recycling Program. In 2021, Waukesha County engaged municipal partners to update Intergovernmental Agreements procedures concerning dividends and potential tip fees for the recycling program. Consistent with these practices, we are communicating our decisions regarding the 2026 fiscal year in advance of forthcoming budget processes. Working Capital to evaluate options for dividends and potential tip fees for 2026 recycling partner community budgets. Despite the MRF Fund Working Capital falling below the designated floor balance of $3.1 Million, as established in the IGA with our community partners, Waukesha County has elected not to issue tip fees for the 2026 fiscal year. This decision is influenced by the promising potential of our newly signed 10-year recycling processing agreement with Waste Management of Wisconsin, effective May 1, 2025. This agreement provides favorable conditions and outlook, indicating that the issuance of tip fees over the next decade will likely be unnecessary. This strategic achievement sets our program apart from others across the United States, as most programs charge tip fees. Waukesha County remains committed to delivering ongoing, timely updates and appreciates your cooperation in ensuring a successful recycling program. For any questions, please reach out to the Waukesha County Recycling and Solid Waste Supervisor, Abbie Liedtke at aliedtke@waukeshacounty.gov or (262) 896-8317. Thank you, Alan Barrows Land Resources Manager Land Resources Division Page 51 of 61 WM Forecast Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Tonnage 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 Processing Fee (3% increase/year) 79.75 82.14 84.61 87.14 89.76 92.45 95.23 98.08 101.02 104.06 Revenue Share 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% Waste Disposal Fee 54 55.62 57.29 59.01 60.78 62.60 64.48 66.41 68.41 70.46 Residue Rate 10.77% 10.77% 10.77% 10.77% 10.77% 10.77% 10.77% 10.77% 10.77% 10.77% ACR Estimate 100 100 100 100 100 100 100 100 100 100 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Revenues Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Landfill fees - State Grant 972,683 972,683 972,683 972,683 972,683 972,683 972,683 972,683 972,683 972,683 Investment income 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Material sales 1,692,975 1,689,433 1,685,786 1,682,029 1,678,160 1,674,174 1,670,069 1,665,841 1,661,486 1,657,000 Education Fee/Miscellaneous 67,913 67,913 67,913 67,913 67,913 67,913 67,913 67,913 67,913 67,913 Total Revenues 2,833,571 2,830,029 2,826,382 2,822,625 2,818,756 2,814,770 2,810,665 2,806,437 2,802,082 2,797,596 Expenses Personnel 412,591 441,439 450,268 459,273 468,459 477,828 487,384 497,132 507,075 517,216 Operating 120,000 91,000 91,910 92,829 93,757 94,695 95,642 96,598 97,564 98,540 Processing fee 2,023,258 2,083,955 2,146,474 2,210,868 2,277,194 2,345,510 2,415,875 2,488,352 2,563,002 2,639,892 Interdepartmental 20,981 21,401 21,829 22,265 22,711 23,165 23,628 24,101 24,583 25,074 Indirect Costs 64,375 65,663 66,976 68,315 69,682 71,075 72,497 73,947 75,426 76,934 Management Services 48,900 49,389 49,883 50,382 50,886 51,394 51,908 52,427 52,952 53,481 Total Expenses 2,690,105 2,752,846 2,827,339 2,903,933 2,982,688 3,063,667 3,146,935 3,232,557 3,320,601 3,411,138 Operating Income/(Loss) 143,466.06 77,183.09 (956.86) (81,307.23) (163,931.93) (248,896.77) (336,269.45) (426,119.68) (518,519.20) (613,541.87) 10 Year Income Gain/(Loss) (2,168,893.83) Page 52 of 61 Effective May 1, 2025 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF PEWAUKEE AND WAUKESHA COUNTY Regarding the Municipal Recycling Dividend Program THIS INTERGOVERNMENTAL AGREEMENT (“Agreement”) is between the City of Pewaukee (“Municipality”) and Waukesha County – Department of Parks and Land Use (“County”) a body corporate and politic. The City of Pewaukee a municipal corporation and County may be referred to individually or collectively in the Agreement as the “Party” or “Parties” respectively. RECITALS WHEREAS, since 1990, the County has served as a “Responsible Unit” (“RU”) for recycling under Chapter 287 Wisconsin Statutes for twenty -five (25) participating communities through a Resolution , including the Municipality; WHEREAS, the public/private partnership at the County-owned Material Recovery Facility in Waukesha has allowed the County to provide participating communities over $ 20 million in tax relief (“dividend payments”) and numerous services at no cost, such as recyclable processing, public education programs, household recyclable containers, special event containers and regional recyclable drop-off boxes; WHEREAS, between 2007 and 2012, a series of independent and joint studies were completed by both the County and the City of Milwaukee (“City”) to determine the best future path for recyclable processing to adapt to the industry trend of single sort collection and processing systems; WHEREAS, in 2014, after completing a competitive joint request for proposal (RFP) process, the County and City executed an intergovernmental agreement and concurrent contracts with a private company to design, build and operate a Joint City/County MRF in Milwaukee (“Joint MRF”), which began processing single sort recyclables for both communities in March 2015; WHEREAS, in 2021, the County and participating communities convened a Recycling Dividend Workgroup to discuss financial support for municipal recycling costs; and WHEREAS, in accordance with the final recommendations of the Recycling Dividend Workgroup, a formulaic approach will be utilized in determining when dividend payments may be made to participating communities as financial support for municipal recycling costs, and when tipping fees may be charged to participating communities in order to maintain an appropriate MRF Fund Working Capital balance. Page 53 of 61 Effective May 1, 2025 WHEREAS, on May 31, 2023, the Joint MRF experienced a fire which left the building and equipment significantly damaged, rendering it unable to accept recyclables for processing; and WHEREAS, on November 13, 2024, Request for Proposal (“RFP”) #2024034 Waukesha County Materials Recycling Processing and Marketing was released; and WHEREAS, on April 22, 2025 the Waukesha County Board of Supervisors ordained Service Contract 2024034 for Processing of Recyclable Materials for Waukesha County with Waste Management of Wisconsin, Inc., which is on file in the Office of the County Clerk; NOW THEREFORE , in consideration of these premises, the County, serving as the RU, and the Municipality, as a participating community, hereby agree as follows: SECTION 1 SERVICES BY THE MUNICIPALITY a. Delivery of Recyclables to MRF . The Municipality shall, through its solid waste collection contract, require: 1) all recyclables to be hauled directly to a designated facility as directed by Waukesha County (the “MRF”). As of May 1, 2025, the designated recycling facility is the Waste Management of Wisconsin, Inc. materials recycling facility located at W132N10487 Grant Dr. Germantown, WI 53022 ; and 2) the Municipality’s solid waste collector (“SWC”) to coordinate with the County and the MRF operator the delivery of recyclables to the MRF at times that maximize efficiencies at the scale and tip floor and minimize traffic back-ups. b. Downtime. In the event that the designated recycling facility is unable to receive or process recyclable material to its full capacity as a result of a planned or unplanned downtime event, the designated facility operator is contractually obligated to Waukesha County to continue to operate, if feasible and commercially practical, to the extent of its reduced capacity and find an alternative solution wherein the remaining recyclable material is responsibly processed at a self -certified materials recovery facility and under the guidelines of the contract with Waukesha County at no additional cost to the County. c. Record Keeping and Reporting. The Municipality shall keep records and, through an Internet- based County reporting system, provide annual data required to complete DNR Recycling Grant application and annual reports in accordance with the Waukesha County Code of Ordinances. Additionally, the Municipality shall, through their solid waste collection contract, require their SWC to keep records, provide the necessary data and reports to the County, maintain compliance with applicable state or local codes, program rules, and to comply with the requirement for delivery of recyclables to the MRF. This includes, but is not limited to, providing up-to-date information on haul routes, collection days, and contamination. d. Collection Contracts. The Municipality shall provide the County a current copy of their solid waste collection contract including any future amendments or contracts. Page 54 of 61 Effective May 1, 2025 e. Solid Waste Collection Contract Compliance Requirements . The Municipality shall attach and incorporate the attached Exhibit B into the terms of their solid waste collection contract, which describes the Municipality’s solid waste and recycling hauler requirements contained in this Agreement. f. Responsible Contact. Municipality will designate an individual to serve as the Responsible Contact to receive recycling updates from the County and participate in the Recycling Dividend Workgroup as further defined in this Agreement. SECTION 2 SERVICES BY THE COUNTY a. Educational Program Services . The County will provide educational program services in accordance with the requirements of an “effective recycling program” under Chapter NR 544 Wisconsin Administrative Code. b. Effective Recycling Program . The County will provide compliance assurance as required of an “effective recycling program” under Chapter NR 544 Wisconsin Administrative Code. c. Recycling Updates. The County will provide recycling updates, including but not limited to current contamination rates and current material sale rates. These updates shall be provided to the Municipality’s Responsible Contact every two months. d. Annual Planning and Implementation Meeting. The County will host an annual program planning and implementation meeting to provide a comprehensive program update to the Municipality. e. Components and Calculations. The County will annually provide a list of included components and a calculation for the additional recycling services and education partnership portions of the dividend. f. Recycling Dividend Workgroup. The Recycling Dividend Workgroup is composed of volunteer Responsible Contacts from participating communities. The County shall meet with the Recycling Dividend Workgroup as needed and will take into consideration any recommendations of the Recycling Dividend Workgroup on program elements. SECTION 3 PAYMENTS AND FEES a. Dividend Payments . Commencing in 202 2, County will calculate dividend payments to Municipality for inclusion in the following budget if as of December 31st of the preceding year in Page 55 of 61 Effective May 1, 2025 which the dividend payment is to be calculated, (1) the MRF Fund’s Working Capital is above the cap set by the County and as further defined in Exhibit A, Section 1 and (2) the recycling program’s audited financial statements show a positive cash flow at the close of the Waukesha County fiscal year as verified in the County’s Annual Comprehensive Financial Report. i. Working Capital is defined as the current assets minus the current liabilities, exclusive of the following: 1) Funds specifically reserved for equipment repairs or upgrades; 2) Grant funds received in excess of the state’s basic recycling grant; and 3) The recycling consolidation grant to Responsible Units. ii. Positive cash flow is defined as the positive net change in Working Capital from the previous year. b. Tipping Fees. Tipping fees may be charged to the Municipality if as of December 31 st of the preceding year in which the tipping fee is calculated, the MRF Fund Working Capital is below the floor set by the County and as further defined in Exhibit A, Section 1. Municipality shall pay any tipping fees in accordance with the terms of this Agreement. c. Calculation of Dividend Payments and Tipping Fees. Any dividend payments or tipping fees shall be determined by County in accordance with Exhibit A, which is hereby incorporated into the terms of this Agreement. d. Timing of Payments and Fees . County will provide status updates regarding estimated dividend payments or tipping fees throughout the auditing and budgeting process. A final invoice if applicable will be issued by March 1 and final payments shall be made by April 1 in the year following the year in which the fee or payment was calculated. Illustration: Audited financials of 2021 are released May 1, 2022. These results are used to determine if there is a dividend payment or tipping fee and the total amount. Staff will calculate each participating community’s dividend payment or tipping fee, communicate that to the Municipality, and incorporate it into the budget for the following year. By March 30, 2023 an invoice will be provided (if necessary) and payment will be made by April 1, 2023. SECTION 4 MISCELLANEOUS a. Entire Agreement. This Intergovernmental Agreement between the City of Pewaukee and Waukesha County Regarding the Municipal Recycling Dividend Program constitutes the entire, final, complete, and fully integrated agreement between the parties with respect to the subject matter hereof and supersedes and replaces all prior agreements effective May 1, 2025. b. Authority and Responsibilities . Nothing in this Agreement forfeits any RU rights and responsibilities of the County, or any other Municipality or County’s rights or responsibilities under state or local laws. The County remains responsible for implementing a recycling education program for residents of the Municipality and for complying with other requirements of an “effective recycling program” under Chapt er NR 544 Wisconsin Administrative Code. Page 56 of 61 Effective May 1, 2025 c. Responsible Contacts. Upon execution of this Agreement, the County, and the Municipality each shall designate in writing a primary person as a Responsible Contact to be responsible for carrying out the activities described in this Agreement. d. Review and Amendments. All changes to the main body of this Agreement shall be mutually agreed upon between the Parties and shall be in writing and designated as written amendments to this Agreement. The County has the authority to change the MRF Fund Working Capital cap and floor balances identified in Exhibit A upon providing twelve months’ advance written notice of any changes to the Municipality. e. Effective Date and Term. Upon execution by both parties, t his Agreement shall become effective on May 1, 2025, and shall remain in effect until December 31, 2034, unless otherwise terminated in writing by either party upon a one (1) year written notice to the other party. Termination of this Agreement does not alter the County’s status as the Responsible Unit or the Municipalit y’s responsibilities as a participating community in the Responsible Unit. f. Severability. If any clause, provision or section of this Agreement be declared invalid by any Court of competent jurisdiction, the invalidity of such clause, provision, or section shall not affect any of the remaining provisions of this Agreement. g. Notices. Any and all notices regarding termination of this Agreement shall be in writing and deemed served upon depositing same with the United States postal Services as “Certified Mail, Return Receipt Requested”, Addressed to the Municipality at: City of Pewaukee ATTN: City Clerk W240N3065 Pewaukee Road Pewaukee, WI 53072 and to the County at: Recycling and Solid Waste Supervisor Abbie Liedtke aliedtke@waukeshacounty.gov Department of Parks and Land Use 515 W. Moreland Blvd., Room AC 260 Waukesha, WI 53188 262.896.8300 Page 57 of 61 Effective May 1, 2025 h. Binding Agreement. This Agreement is binding upon the parties hereto and their respective successors and assigns. WAUKESHA COUNTY: By: ________________________________ Date: __________________ Dale R. Shaver, Director - Department of Parks and Land Use MUNICIPALITY By:________________________________ Date: _______________ Name Attest: ______________________________ Name, Clerk EXHIBIT A Dividend Payment and Tipping Fee Formula SECTION 1 MRF FUND WORKING CAPITAL The County will set the MRF Fund Working Capital cap and floor balances to be utilized in determining when a dividend payment or tipping fee will be issued. The County has identified the following minimum balances, excluding grant issued funds and segregated funds for equipment repair and maintenance and efficiency improvement, to be utilized in determining when a dividend payment or tipping fee will be issued: Cap $3,500,000.00 Floor $3,100,000.00 Page 58 of 61 Effective May 1, 2025 The County has the authority to change the MRF Fund Working Capital cap and floor balances upon providing twelve months’ advance written notice of any changes to the Municipality. Any changes to these balances will be based upon several factors including but not limited to market conditions, net commodity revenue, the analysis and recommendations of a third -party vendor and input from local subject matter experts. SECTION 2 DIVIDEND CALCULATION Dividend payments will be determined when (1) the MRF Fund Working Capital is above the cap identified in Section 1, and (2) the recycling program’s audited financial statements of the preceding year show a positive cash flow as defined in Section 3(a) of the Agreement. The Dividend payment calculation will be determined by the County based on County’s audited financial statements. This amount shall be divided between the participating communities in the Responsible Unit. The formula utilized by County to determine a Municipality’s dividend payment will be based on the following considerations: • 50% of the dividend will be based upon the proportion of the 5-year average of total eligible costs the Municipality paid for eligible recycling expenses. • 35% of the dividend will be based upon the number of eligible households in a participating community as a proportion of the total number of eligible households in the program. Eligible households, as defined under Wisconsin Administrative Code NR Chapter 544.04(4), will be identified by the Municipality’s January hauling invoice from the SWC or, if not available, according to the County’s GIS system. A multiplier of 1, 1.2, 1.4, 1.6, 1.8, or 2 will also be incorporated based on the distance the Municipality is located from the Joint MRF with 1 being the nearest and 2 being the furthest in proximity to the Joint MRF. • 7.5% of the dividend will be based upon additional recycling services Municipality provides for its residents or all County residents for a minimum of 12 months. In order to qualify, Municipality must provide evidence of said services that is satisfactory to the County. A list of qualifying services and the corresponding scores will be provided on an annual basis to the participating communities. The number of services provided and whether the services are provided to all County residents or the participating community’s residents will earn the Municipality a score of 0, 0.5, 2, or 3. A numerical assignment of 3 represents the highest number of services provided. • 7.5% of the dividend will be allocated based on education and outreach partnership opportunities in which a Municipality collaborates with the County. A list of qualifying opportunities and the corresponding scores will be provided on an annual basis to the participating communities. The number of services provided and whether the services are provided to all County residents or the municipalities’ residents will earn Municipality a score of 0, 1, 2, or 3, with 3 being the highest number of qualifying opportunities. Illustration: Municipality “Y” has a 5-year average of total eligible recycling costs of $500,000 and the 5-year average of the total eligible recycling costs for all participating communities is $7,000,000. Municipality “Y” has 4,760 eligible households and the total number of eligible Page 59 of 61 Effective May 1, 2025 households for all participating communities is 200,000. Municipality “Y” is located 38 miles away from the Joint MRF, earning a multiplier of 2 for its eligible household points. Municipality “Y” also provided additional services for all County residents earning an additional recycling services score of ‘2’ and partnered on education and outreach with the County, earning an education and partnership score of ‘3’. The total number of additional service points for all participating communities is 14.5 and the total number for education and outreach partnership points is 20. In this illustration, the total dividend available to be divided is $100,000. Accordingly, Municipality “Y” will receive the following: 1) 7.14% or $3,570 for its 5-year average of total eligible recycling costs in proportion to the total eligible recycling costs for all participating communities; 2) 4.76% or $1,666 for its eligible households in proportion to the total number of eligible households in all participating communities after factoring in the multiplier for proximity to the Joint MRF; 3) 13.79% or $1,034 for additional recycling services; and 4) 15% or $1,125 for education and outreach partnership opportunities. Therefore, Municipality “Y”s total dividend payment, after taking into account all of the aforementioned considerations, would amount to $7,395. SECTION 3 TIPPING FEE CALCULATION Tipping Fees may be charged to the Municipality and Municipality agrees to pay same when (1) the MRF Fund Working Capital is below the floor identified in Section 1 . The tipping fee calculation will be determined by the County based on the County’s audited financial statements. This amount shall be divided between the participating communities in the Responsible Unit according to the following formula: Fee = EH*[(F-B)/TH] Whereas: • EH = Number of eligible households in a municipality, as defined under Wisconsin Administrative Code NR Chapter 544.04(4), which will be identified by the Municipality’s January hauling invoice from the SWC or, if not available, according to the County’s GIS system • F=MRF Fund Working Capital floor • B=Balance of the MRF Fund Working Capital as defined by Section 3(a) of the Agreement and Exhibit A, Sec. 1 • TH = Total eligible households from all participating communities in the County’s RU, as defined under Wisconsin Administrative Code NR Chapter 544.04(4), which will be identified by the municipalities’ January invoices from the SWCs or, if not available, according to the County’s GIS system. Page 60 of 61 Effective May 1, 2025 EXHIBIT B Collection Contract Compliance Items Related to Waukesha County’s Municipal Recycling Dividend Program The Contractor shall comply with the provisions below, which are required to maintain eligibility for payments from Waukesha County (“County”) through an intergovernmental agreement (IGA) with [insert Municipality name] or Local Unit of Government (“LUG”). In case of conflict with other provisions of this Contract, this Exhibit shall prevail. A. Recycling Container Provisions 1. Recycling Container Standards. All recycling containers shall be for single sort recycling and shall meet County standards for in-mold educational labeling, identifying recyclable and non- recyclable/hazardous materials. All containers shall have a 10-year warranty. 2. Distribution and Use of Recycling Containers. Contractor shall, by the dates specified in this Contract, distribute recycling containers to each household/unit served under this Contract. Contractor shall ensure these containers are only used for recycling. Contractor shall notify any non-complying household/unit at the time non-compliance is observed, and shall track and report a summary of non-compliance to the LUG monthly. 3. Distribution of Educational Materials. Contractor shall attach educational materials to the top of each recycling container upon delivery of the containers, as noted above. The educational materials will be provided to the Contractor by the County at no cost to the Contractor. 4. Contractor Report on Containers. Contractor shall provide the County an annual (calendar year) report by March 1 each year on the number and size(s) of recycling containers used within the LUG, including the number of households/units. B. Direct Haul Provisions 1. Direct Haul. Contractor shall deliver all recyclable materials collected under this Contract to the designated facility identified as Waste Management of Wisconsin, Inc. MRF located at W132N10487 Grant Dr. Germantown, WI 53022 2. Delivery Protocol. Contractor shall coordinate delivery times with the County and the MRF operator (i.e., Waste Management of Wisconsin, Inc.) to maximize efficiencies at the truck scale and tip floor and minimize traffic back-ups. For all recyclable deliveries to the MRF, Contractor shall comply with the County Protocol, which is subject to periodic updates to meet the stated intent. 3. Record Keeping and Reports. Contractor shall keep records and provide all requested data and reports to the County as needed to administer the IGA and maintain compliance with applicable state or local codes, program rules, and the protocol for delivery of recyclables to the MRF. This includes, but is not limited to, providing up-to-date information on haul routes, collection days and times, and vehicles used to collect recyclables. 4. Alternate Processing. In the event the MRF is unable to accept recyclables the Contractor shall deliver recyclable materials to an alternate location for a designated time, as directed by the County. Page 61 of 61