Utility Committee Agenda Packet - 6:35 PM

City of Oconomowoc Utility Committee Aldermen: Schellpeper, Chairman / Jungwirth, Secy / Welch Tuesday, October 06, 2026 - 6:35 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 accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: (262) 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Consider/recommend Resolution 26-R3406 Budget Amendment to Increase the 2026 Lead Water Service Line Budget b. Consider/recommend Resolution 26-R3407 to Join WPPI Group Filing for New Parallel Generation Rates Pgs-1 and Pgs-2 c. Consider/recommend Resolution 26-R3408 to Purchase Two Used Plow Trucks from City of Waukesha 3. Adjourn Gina Kozlik, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1 P:\Committee and Council\Memos\Consider_Act - 2026 Lead Service Line Replacement Budget Amendment.docx MEMORANDUM WATER UTILITY Date: October 6, 2026 To: Mayor, Common Council, and Utility Committee From: Kevin Kaari, Utility Manager Re: Consider/act on Resolution 26-R3406 Budget Amendment for Lead Service Line Replacements RELATES TO THE STRATEGIC PLAN Strategic Goal- II – Improve and Maintain our Infrastructure/Facilities BACKGROUND In September of 2026 the Water Utility had an Action Level Exceedance (ALE) for lead found during routine water sampling, therefore the City was required to send out public notification of the findings. This prompted homeowners to investigate their own private lateral situation with some choosing to replace their lead water service line immediately. When a homeowner initiates a lead water service line replacement and the Utility owned portion is also lead, the public side must be replaced at the Utility’s expense within 45 days. ADDITIONAL ANALYSIS The contractors hired by residents to replace their private laterals are available at the same time to replace the City owned public side laterals. There are cost savings involved for efficiency that the Water Utility would like to take advantage of. The approved 2026 Capital budget of $75,000 for lead lateral replacements would require additional funds to cover the unexpected increase in replacements driven by the ALE notice. FINANCIAL IMPACT Known lead service line replacements to be done in 2026 require another $100,000 to cover costs. The funding would come from Water Reserves and be applied to Capital account 602-573-7000 Work Order #226004. RECOMMENDATION Staff recommend a budget amendment to increase the 2026 Lead Service Line Replacement budget by an additional $100,000 for a total of $175,000 SUGGESTED MOTION Motion to approve Resolution 26-R3406. 2 P:\Committee and Council\Resolutions\Resolution 26-R3406 Budget Amendment for Lead Service Line Replacement.docx RESOLUTION NO. 26-R3406 RESOLUTION AUTHORIZING A BUDGET AMENDMENT TO INCREASE THE 2026 LEAD SERVICE LINE REPLACEMENT BUDGET WHEREAS, lead water service line replacement needs for 2026 have increased due to the number of homeowners initiating the replacements of their private side service line; and WHEREAS, the Utility is required to replace the public side, if also made of lead material; and WHEREAS, to accomplish the required work, the Water Utility will need an additional $100,000 to replace the public side in conjunction with the private side work. NOW THEREFORE, BE IT HEREBY RESOLVED, the Common Council approves a budget amendment adding $100,000 to the 2026 Lead Service Line Replacement budget with funds from Water Reserves. Note: Budget Amendments require a super majority vote for approval. DATED: October 6, 2026 CITY OF OCONOMOWOC By: _______________________ Matt Rosek, Mayor ATTEST: _____________________ Gina Kozlik, Clerk 3 P:\Committee and Council\Resolutions\Resolution 26-R3407 Parallel Generation Rates.docx RESOLUTION NO. 26-R3407 RESOLUTION APPROVING OCONOMOWOC UTILITIES JOINING WPPI GROUP FILING FOR NEW PARALLEL GENERATION RATES WHEREAS, on September 15, 2026, Committee of the Whole discussed joining Wisconsin Public Power, Inc. Energy (WPPI) and other member utilities in a group filing with the Public Service Commission for new parallel generation rates; and WHEREAS, the new rates will lower the amount Oconomowoc Electric Utility pays for customer’s excess generation from rooftop solar units to the same price we pay WPPI for wholesale energy; and WHEREAS, the proposed new rates allow existing parallel generation systems to be grandfathered into a ten (10) year continued retail rate payment; and WHEREAS, any new parallel generation customers will begin at the wholesale rate paid to WPPI; and WHEREAS, Utility staff recommend joining the WPPI group parallel generation Pgs-1 and Pgs-2 rate filing. NOW THEREFORE, BE IT HEREBY RESOLVED, the Common Council approves joining WPPI Group Filing for New Parallel Generation Rates DATED: October 6, 2026 CITY OF OCONOMOWOC By: _______________________ Matt Rosek, Mayor ATTEST: _____________________ Gina Kozlik, Clerk 4 P:\Committee and Council\Memos\Consider Act - Electric Utility - Join WPPI Group Filing for new Parallel Generation Rates.docx1 MEMORANDUM ELECTRIC UTILITY Date: October 6, 2026 To: Mayor, Common Council and Utility Committee From: Kevin Kaari, Utility Manager Re: Consider/act on Resolution 26-R3407 Approving Oconomowoc Utilities to Join WPPI Group Filing for New Parallel Generation Rates RELATES TO THE STRATEGIC PLAN N/A BACKGROUND During the Committee of the Whole meeting on September 15, 2026, we discussed joining Wisconsin Public Power Inc. Energy (WPPI) and other member utilities in an upcoming group filing for new “parallel generation” rates for our customers. As discussed, the new rates will lower the amount we pay for a customer’s excess generation from their rooftop solar to the same price we pay WPPI for wholesale energy. ADDITIONAL ANALYSIS The proposed tariff allows existing parallel generation systems to be “grandfathered” so we will continue to pay them at the retail rate for the next 10 years. Any customers adding parallel generation after the new rate is passed will begin at the new rate immediately. FINANCIAL IMPACT Over the past 12 months, the amount credited for excess generation has cost the utility over $57,000. Paying retail rates for the excess energy from parallel generation customers unfairly increases costs for all other electric customers in our City. RECOMMENDATION Oconomowoc Electric recommends that we join the WPPI group rate filing for the new proposed parallel generation rates Pgs-1 and Pgs-2. SUGGESTED MOTION Motion to approve Resolution 26-R3407 5 P:\Committee and Council\Memos\Consider Act - Fleet Department - Consider Act Purchase of Used Plow Trucks from City of Waukesha.docx1 MEMORANDUM FLEET DEPARTMENT Date: October 6, 2026 To: Mayor, Common Council and Utility Committee From: Kevin Kaari, Utility Manager Re: Consider/act on Resolution 26-R3408 Approving Purchase of Used Plow Trucks from City of Waukesha RELATES TO THE STRATEGIC PLAN II. Improve and Maintain our Infrastructure/Facilities A. Maintain Our Existing Infrastructure 1.e. Fleet – Inventory/develop funding replacement cycle BACKGROUND DPW Trucks #51 and #38 are two important plow trucks for the City of Oconomowoc. Truck #51 is a 2014 International WorkStar 7400 4x2 dump truck configured as a single-axle plow truck equipped with a wing. The Long-Term Financial Plan (LTFP) for capital funds was to replace this truck in 2031. Truck #38 is a 2011 International WorkStar plow truck with the same engine model as Truck #51. The LTFP was to replace this truck in 2028. Truck #51 was recently brought in for service due to an engine misfire and lack of power. The truck was taken into River City Truck, who diagnosed the truck with complete engine failure. It should be noted that there are well-documented problems with the MaxxForce DT engine platforms that both Truck #51 and Truck #38 have. This engine has been discontinued due to its poor performance. ADDITIONAL ANALYSIS There are two potential options to repair the engine on Truck #51. 1) An in-frame engine overhaul costs $20k to $25k 2) A long-block engine replacement costs up to $40k. Even after the repair, we will still have a MaxxForce engine powering the truck as it cannot be outfitted with a different engine. Another unique option has been presented to us. The City of Waukesha currently has two 2018 Freightliner M2 108 SD plow trucks available with less miles and hours than Truck #51. The City of Waukesha is accelerating their replacement of these two plow trucks in order to replace them with a newer model before the emissions standards change. The City of Waukesha is willing to sell us one of their plow trucks for 6 2 $45,000. If we are serious about this option, there is also the possibility of purchasing the other City of Waukesha plow truck to replace truck #38, the 2011 model with the problematic MaxxForce engine. The 2018 trucks from the City of Waukesha would be re-assessed in 10 years before placing them back into the long-term Capital plan for full replacement in approximately the years 2037 and 2038. Current costs for full replacement units are $330,000 each. As the City of Waukesha trucks are yellow in color, we would like to consider adding a decal wrap to change the trucks to Oconomowoc’s standard white with red stripe to match the rest of the Public Works fleet. They would also need to have the brine and salter units added to the overall costs. If Council approves the purchases, the 2011 International truck #38 would be sold at auction once removed from service. FINANCIAL IMPACT City of Waukesha truck purchase price: $45,000 Brine & salter additions: $13,000 Decal estimate: $ 6,000 Total cost per used 2018 City of Waukesha plow truck: $64,000 RECOMMENDATION The Fleet Department recommends purchasing two 2018 International plow trucks from the City of Waukesha, adding the brine and salter units and doing a white decal wrap. SUGGESTED MOTION Motion to approve Resolution 26-R3408 7 P:\Committee and Council\Resolutions\Resolution 26-R3408 Purchase of Used Plow Trucks from City of Waukesha.docx RESOLUTION NO. 26-R3408 RESOLUTION APPROVING PURCHASE OF USED PLOW TRUCKS FROM CITY OF WAUKESHA WHEREAS, the Department of Public Works fleet has two plow trucks with compromised or failing engines; and WHEREAS, the cost of replacing the engine in the failed truck is $40,000; and WHEREAS, the cost of overhauling the compromised engine is between $20,000 to $25,000; and WHEREAS, the failing plow trucks are not scheduled for replacement until 2028 and 2031 at an estimated cost of $330,000 each; and WHEREAS, the City of Waukesha has available for sale two 2018 Freightliner plow trucks that are compatible with our fleet; and WHEREAS, the City of Waukesha can offer these trucks for sale for $45,000 each, the added brine and salter units cost $13,000 per truck and decals wraps are $6,000 each; and WHEREAS, the overall cost to purchase the trucks from the City of Waukesha and outfit to align with the City of Oconomowoc Fleet is $64,000 each, a total of $128,000; and WHEREAS, these two 2018 Freightliners should last ten years with replacement anticipated in 2037 and 2038, saving the City the cost of purchasing new for seven to nine additional years. NOW THEREFORE, BE IT HEREBY RESOLVED, the Common Council approves the purchase of two 2018 Freightliner Plow Trucks from the City of Waukesha. Note: This is a budget amendment that requires a super majority vote for approval. DATED: October 6, 2026 CITY OF OCONOMOWOC By: _______________________ Matt Rosek, Mayor ATTEST: _____________________ Gina Kozlik, Clerk 8