Patrick Pauly Appointed Head of Milwaukee Water Works

Mayor Cavalier Johnson has nominated a new leader for Milwaukee Water Works (MWW).

Patrick Pauly will become the new head of the city-owned water utility, one of the more unusual divisions within the city. The superintendent position became available after Karen Dettmer was promoted in December 2021 to become interim Public Works Commissioner, then departed in April for a water-related job in the Biden administration.

The entity, heavily regulated by the state Public Service Commission, treats and sells Lake Michigan water to city residents and businesses as well as 15 other communities through a variety of wholesale and retail agreements. A $286 million, 36-miles-long project will soon bring the City of Waukesha online as a customer.

Pauly is quite familiar with how the utility works. He’s worked there since 1991 and held a variety of leadership roles since 2013. A licensed civil engineer with a degree from UW-Milwaukee, he’s climbed the ranks to become the manager of the water mains design section (2013), chief design engineer (2016), administration manager (2019) and interim superintendent (2019) following Dettmer’s promotion.

Now the mayor is moving to give Pauly the top job permanently. The Common Council must confirm the appointment, which runs through the end of Johnson’s term.

“I am here to speak about one of my least favorite topics: me,” said Pauly in appearing before the Public Works Committee on Wednesday morning. At a committee meeting shortly after becoming interim superintendent, Pauly said he didn’t even like to be referred to by the title.

“I am incredibly proud to represent the water works and the hundreds of the dedicated, knowledge members of the utility,” he told the committee. He praised the approximately 350 employees responsible for keeping the system working. “As our former superintendent Karen Dettmer used to say ‘the water never stops.'”

Pauly said he considers himself an “unlikely candidate” but also one that is “quite qualified.” He said he’s been able to learn a lot from the last three superintendents, Carrie Lewis, Jennifer Gonda and Dettmer.

“We have challenges in front of us certainly,” said Pauly, noting workforce stabilization issues first and foremost. MWW employees have been among the most vocal city employees to publicly raise the issue that turnover is high because work conditions are challenging and they could be paid more at other public entities or in the private sector.

In an attempt to both diversify and stabilize the workforce, MWW is a partner with Employ Milwaukee on a $2 million federal workforce training grant. The partners are aiming to attract and train new workers through a career exploration program for high school students and a job training program for low-income and underrepresented individuals. Pauly said it would help staff up the repair worker position.

“I don’t see it getting better,” said Alderman Mark Borkowski. He floated the idea of a citywide pay scale reconfiguration. “We are just financially not competitive.

Committee chair Robert Bauman brought up what he said was a reluctance by former Mayor Tom Barrett to “charge our customers the rate necessary to assure a top quality system.”

“Water is incredibly cheap,” said Bauman. “Everybody is hysterical about gasoline princes, but a gallon [of water] is what 3/10s of a cent?… The only way we maintain the system is by investing the money we generate by charging the rates.”

He asked Pauly directly if he favored raising the rates.

“Well it’s complicated,” said Pauly, noting that a rate case is underway before the Public Service Commission. As discussed publicly just before Pauly became the interim superintendent, the city is asking for only half of the rate of return (2.5%) that it received from its 2014 rate case.

He said a water main replacement program was successful, but now the system needed help upgrading its treatment plants.

“No one wants to hear rates are going up,” said the nominee, while noting that one penny buys three gallons of water.

Dettmer had previously floated the idea that the city could seek another rate increase once the Waukesha pipeline is operating.

Under its current configuration, the utility makes a payment in lieu of taxes (PILOT) to the city’s general fund every year. The 2022 rate case seeks a $14.4 million annual payment, up from $13.7 million. The “return on investment” the utility would generate is slated to be $11 million, down from $18.1 million.

According to a comparison of local rates compiled by MWW, the city currently has the cheapest water in southeastern Wisconsin. The proposed increase would put it at second-cheapest, $65.56, behind only the proposed Kenosha rate. Mequon and South Milwaukee have quarterly bills of nearly $120.

The superintendent also plays a key role in removing the publicly and privately-owned lead service lines that connect homes to the city’s water distribution system. MWW has a goal of replacing 1,100 of the approximately 70,000 remaining lead service lines this year, a target MWW officials said they are on track to meet.

Pauly said MWW officials meet regularly with Coalition on Lead Emergency (COLE) representatives about replacement strategies.

“Okay Pat. I look forward to your leadership on this,” said Ald. Russell W. Stamper, II after asking questions about the issue.

The committee unanimously endorsed Pauly’s appointment. The full council is expected to vote on the nomination at its July 28 meeting.

The 2022 city budget calls for the superintendent to be paid $114,009, an amount that Johnson could negotiate upward towards his salary of $147,336. The budget says the administration manager, Pauly’s current salary level, is to be paid $119,684.