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Council approves low bid for new Waukesha Water Utility operations center; city says no additional rate impact
Summary
The council approved the low bid to build a new Water Utility Operations Center, using WIFIA funds and other sources; officials said the project remains under the Public Service Commission-approved amount and will not change water rates beyond previously announced increases.
The Waukesha City Council approved a low bid for a new Waukesha Water Utility Operations Center on May 20, the council record shows.
Alderman Kelly and Water Utility staff described longstanding space and condition problems at the current facility, which dates to 1889 for administrative space and 1972 for the garage. The utility conducted a needs study and design work and publicly bid the project on May 6; nine bidders responded, staff said.
Dan Kelly, a Water Utility official, told the council the project will be paid using excess WIFIA funds from a larger water-supply project and borrowing at a favorable rate. “We are borrowing the money at 1.16% over 38 years,” Kelly said, adding the Public Service Commission had approved a $25,300,000 budget for the project and initial bids came in under that figure. He also said the utility received a separate $4,000,000 federal grant to cover demolition of excess sites, and staff expected to remain under the PSC-approved amount once furniture, moving and related costs are included.
Council members asked about the project budget and specific alternates, including an alternate for a bulk-fill water station to allow external tankers to pay by card to refill. Kelly said the fill station would allow commercial customers and others to fill trucks without renting a hydrant meter and that the utility would not discriminate against neighboring municipal users who set up accounts and pay for service.
A motion to approve the low bid was made, seconded and approved by council vote. City staff said the financing plan will not change previously projected water rates for the larger supply project and that lower-than-expected bids helped keep the project within budget.
