Pewaukee committee approves water-supply study, recommends Lake Michigan water via Waukesha

The City of Pewaukee Public Works Committee voted to approve a water supply service area plan and sent a recommendation to the council favoring purchase of Lake Michigan water via the Waukesha Water Utility while continuing study of groundwater options and interim projects.

Ben, a project consultant with Strand, told the committee the study responds to Department of Natural Resources requirements (NR 8 54) and new drinking-water rules. "Over $50,000,000 is needed to address water quality and quantity for the city in the next 5 years," he said, describing immediate capital and treatment needs driven by PFAS and radionuclide concerns.

The consultant team presented four high-level alternatives: remain on groundwater with additional wells and treatment, purchase water from Waukesha (which buys from Milwaukee), buy directly from Milwaukee via a new transmission main, or build a new regional plant. The study’s 50-year life-cycle cost estimates were: groundwater about $338 million, Lake Michigan via Waukesha about $329 million, Milwaukee direct about $355 million, and a delayed or "punting" strategy about $382 million. The consultants emphasized the estimates fall within margins of error and that non-monetary factors required by NR 8 54 — environmental effects, public health, sustainability and implementability — informed their recommendation.

Sydney Morgan, a project engineer with Strand, said the groundwater alternative would likely require roughly eight new wells over 50 years plus current and future treatment upgrades. "What we are expecting for this alternative over the next 50 years is 8 new wells," she said, noting land availability and emerging contaminant rules constrain the city’s options.

The team also summarized wholesale-rate assumptions: a conceptual Waukesha wholesale purchase rate of $5.83 per thousand gallons (which includes Waukesha’s costs and debt share) and Milwaukee’s wholesale rate near $1.62 per thousand gallons. The consultants noted Pewaukee’s usage would be a small share of Milwaukee’s total output — about 1.4% — and that PSC (Public Service Commission) review would vet rate fairness and project justification.

Consultants identified interim compliance projects the city should pursue regardless of long-term choice, including temporary PFAS treatment at Well 8 and drilling Well 13; Strand reported the city has submitted applications to the Safe Drinking Water Loan Program for those projects and that final engineering must be done by June 30 to meet application timelines.

Committee members pressed for clarity on demand assumptions, rate impacts and return-flow/wastewater costs; consultants said some wastewater-treatment and return-flow improvements would need study with Waukesha and Brookfield and that answers are expected in the coming months. A committee member urged greater public engagement before final decisions.

On a motion to approve the study and forward the consultant recommendation (while not ruling out groundwater studies), the committee voted in favor. The motion was made by the Chair and seconded by Ben; the committee recorded the ayes and carried the motion. The consultants will present the plan at a public hearing on Monday and the plan must be submitted to DNR by Dec. 31.

Next steps identified by consultants include further return-flow and water-rate studies, conversations with Waukesha and Milwaukee about supply and interconnection options, and hiring a financial consultant to refine rate and debt assumptions before the council acts.