Utility outlines $34.4 million capital plan, updates operations center progress

Utility staff briefed the commission on the Waukesha Water Utility’s proposed 2026 Capital Improvement Plan and provided a construction update on the new Operations Center.

Construction update: staff said the utility has received the building permit, installed site security fencing and gates, and began plumbing under the slab. City inspectors have been onsite and city engineering is confirming whether the project’s on-site pond includes a liner; if a liner is required the utility said the work would be credited back if one is found. Wall panels are in production at StoneCast Products in Germantown, with installation targeted for early October.

2026 capital plan highlights: staff presented the utility’s capital history and a first-draft capital budget for 2026. The total capital budget presented for 2026 is $34.4 million. Staff said approximately $33.8 million is allocated across listed projects and that $4.0 million in grants has been identified to cover abandonments, PLCs, Wi‑Fi cell drops and certain water chemistry improvements.

Major line items discussed (figures stated by staff): Wi‑Fi/cell drops for remote sites and cameras (listed at $254,000) to provide real‑time remote viewing and support the EPA-required Risk and Resilience Assessment; water main replacements of about 18,800 feet (roughly 1% of system mains, about 3.5 miles) focusing on multiple city streets; 20 hydrant replacements ($247,000); 40 valve replacements ($385,000); meter replacement activity (amount not specified in the discussion); the new Operations Center completion costs (presented as 17.5, described as the finishing of the operations center); an enterprise resource planning (ERP) software and process improvement project budgeted at $835,000 (staff said cloud hosting will add an annual cost and that a detailed breakout will be provided at a later meeting); fleet replacements (three vehicles) and SCADA upgrades including PLC replacements at 10 facilities and phase‑2 air‑mux radio installations.

Staff also reviewed plant abandonments slated for next year, listing Wells 56, 10, 11, 12 and 13; radium treatment removals at Wells 38 and 10; Lathers well and Hillcrest Reservoir among the sites referenced. For abandonments and certain equipment upgrades staff said they are planning to use a $4.0 million grant that had been applied for and discussed earlier.

Financing and cash: staff presented projected cash balances, citing an August ending cash balance of about $50.9 million and a projected year‑end cash of roughly $49 million under current assumptions. The presentation included WIFIA borrowing plans and available general obligation authorization from the city; staff said some borrowing will likely be required in 2027.

Staff emphasized that this presentation is a first look for discussion only, with final approvals expected in November. Commissioners asked about integration between camera/Wi‑Fi projects and SCADA monitoring, annual cloud costs tied to the ERP upgrade, and coordination with city street projects to reduce costs for trenching and paving work.