By Ray Barrington
News-Chronicle
The suburbs got a pitch for water sales today from Green Bay - which hasn't made up its mind whether to make a deal or not.
Both Ashwaubenon's water advisory committee and the Central Brown County Water Authority heard details of Green Bay's likely proposal for a 25-year deal to sell water at 17 percent above bulk rate, the increase going to pay for future expansion.
But Tim Nixon, vice president of the Green Bay Water Commission, emphasized that he was at the meetings only to answer questions, not to negotiate.
"I don't have anything to negotiate," he said. He won't until Tuesday, when the City Council gives approval or denies it to the proposal backed by the Water Commission. If it does, negotiations can start.
The commission's proposal is based on both Ashwaubenon and the authority - which represents Allouez, Bellevue, De Pere, Howard, Lawrence and Ledgeview - buying water. Under it, the city would sell water at its bulk rate plus 17 percent per 1,000 gallons to the suburbs.
The bulk rate is the rate charged to the city's largest customers, such as paper mills. Green Bay estimates its bulk rate in 2005 would be $1.48, and the suburbs would pay $1.73. The 17 percent addition would be used to pay for further expansion over the 25 years of the contract.
A past offer had suburbs paying 25 percent above the bulk rate and would have included interest income of about $36 million for the city.
"We didn't know where that 25 percent was going," said Ashwaubenon village president Norbert DeCleene. "Now we know where the 17 percent is going." After the contract ends, Nixon said, the Public Service Commission is expected to take over setting rates for the combined water system.
Nixon emphasized that the numbers were the best estimates available and were conservative.
One comment by Nixon - that Green Bay would save $5 million on expansion it would need anyway - worried some authority members.
"I want to find out more about that number," said authority president Roy Simonson.
In general, however, both Ashwaubenon and the authority seemed pleased with the plan, and very pleased with the atmosphere the talks have now compared to the often fractious bargaining before Green Bay Mayor Jim Schmitt fired all city water commissioners last year.
"I like what I hear," said Ashwaubenon village trustee Tim Woodworth. "It's different, and greatly appreciated," Simonson said. He added, however, that until financial consultants to the authority had looked at the numbers, the suburbs couldn't make a final judgment.
Suburban well water is dipping continually lower, and much of it is tainted with radium and will not be usable after new standards go into effect in 2006.
Nixon said that the deal also was the first step in a regional solution, and that it was possible the makeup of water control in the area could change before the contract ends.