Common Questions

Clearing up the biggest misconceptions about the project

We know there are questions and concerns about the project. Below are some of the most common ones, along with the facts.

"How is the new Water Treatment Plant being funded?"

  • Secured USDA Funding that includes:
    • $30 million USDA loan (40 years at 3.25% interest; annual payment ~$1.38 million)
    • $18 million USDA grant for water distribution system upgrades

This package not only funds the treatment facility but also allows Osawatomie to replace deteriorated waterlines and comply with the new federal Lead and Copper Rule. Wholesale purchase options with RWD 2 or MDCPUA would not have provided access to these distribution system grants.

"What are the next steps?"

  • Currently, the proposed timeline is:
    • 2025: Design phase underway using Construction Manager at Risk (CMAR) delivery to control costs.
  • 2026: Anticipated construction start following final USDA and KDHE review and permitting.
  • 2027–2028: Estimated completion of plant and distribution system upgrades.

“Will the water plant end up costing way more than what’s being said?”

  • The construction cost of the new water treatment plant is proposed at $27.5 million. This budget includes contingencies for federal requirements like BABAA and inflation leading to a higher estimated cost than other regional water treatment projects. 
  • Regional trends show a construction cost of $4 - $8 per gallon of capacity, Osawatomie’s proposed budget, with contingencies, is currently estimated at $9.20/gal. 
  • To manage costs, the City has chosen the Construction Manager at Risk (CMAR) delivery method, which brings contractors in early to identify savings and avoid overruns.
  • The $30 million USDA loan is spread over 40 years at 3.25% interest, with an estimated annual payment of $1.37 million.

“The numbers the City is putting out are false.”

  • The City’s cost estimates come from BG Consultants, a licensed engineering firm, and were peer-reviewed in a formal life cycle cost analysis.
  • A comparison with Midwest Engineering’s numbers shows differences largely in assumptions, such as whether long-term O&M, reserves, and salvage value are considered. The engineer's opinion of probable cost analysis is more comprehensive and transparent about all costs, not just construction. Other costs considered include water storage upgrades, telemetry and controls, geotechnical costs, and increasing pipe size to 16” to accommodate 3 MGD.
  • Using the numbers provided by RWD 2’s engineering firm for a 12” 11.5 mile transmission line, the capital cost to secure a 3 MGD capacity in Hillsdale and connect to RWD 2 would be $30.1 million. The capital cost to secure only 1.5 MGD capacity and connect to RWD 2 would be $21.1 million. However, that option barely meets peak flows, could create a water shortage risk during peak flows if there was a large fire or water main break and would not give room for future residential or commercial growth. Additionally, neither option addresses the need for distribution pipe upgrades throughout the system.

“Connecting to RWD 2 or MDCPUA would be cheaper and not raise rates.”

  • The Life Cycle Cost Analysis, completed in 2023, shows that connecting to either wholesale option is more expensive long-term.
  • Neither wholesale option provides funding for much needed distribution system upgrades and does not address federally mandated compliance with the Lead and Copper Rule.
  • Rates would still increase under this option, without the benefit of distribution system replacement or compliance upgrades.
  • In 2023, RWD 2 stated their water purchase rate at $3.97 per 1,000 gallons. Osawatomie requires a minimum of 750,000 gallons per day, which equals nearly $1.1 million per year just to buy the water. And that’s only part of the cost. This figure does not include the cost to finance construction of the 11.5-mile transmission main, the associated facilities required to deliver water into our system, or the critical investment still needed to upgrade Osawatomie’s aging distribution pipe network.

“The City’s existing water plant equipment is in fine condition and mismanagement is the real problem.”

  • Much of Osawatomie’s existing equipment is at or past the end of its useful life. Some components date back decades and are inefficient or noncompliant with current regulations.
  • Regular maintenance has kept the system running, but patching old equipment is not a long-term solution.
  • Independent engineering assessments confirm that replacement, not continued repair, is the most responsible path forward.

“Why does the City need 3 million gallons?”

  • Osawatomie’s new plant is being designed to treat a maximum of 3 million gallons per day (MGD) for redundancy, adequate fire protection especially during peak flows, water capacity during water main breaks, and to allow for residential and commercial growth without the need to make upgrades.
  • On a normal day, the City averages about 750,000 gallons, with higher use in the summer and a peak of 1.5 million gallons. The 3 MGD capacity ensures we can meet peak summer demand, have adequate fire protection and water levels during water main breaks, and support future growth.
  • Just as important, the 3 MGD design provides redundancy. The plant will actually be built as two separate 1.5 MGD treatment trains. This means the system can continue running at full daily capacity even if one train is taken offline for cleaning, maintenance, or repair. Our current plant has no such backup -- if something goes down, the whole community feels it. The new design creates a much more resilient, reliable process that protects Osawatomie residents and businesses from interruptions in service.
  • Additionally, the current Water Treatment Plant has a designed 3 MGD capacity. It was recommended in the Preliminary Engineering Review (PER) that Osawatomie maintain that treatment capacity. 

Key Takeaways
 

  1. A new City-owned water treatment plant is the most cost-effective long-term option.
  2. Wholesale purchase alternatives cost more and do not address failing distribution lines.
  3. The City secured a $30M USDA loan and $18M USDA grant, making it possible to replace both the treatment plant and critical waterlines.
  4. We are committed to keeping costs low through CMAR project delivery and transparent communication with the community.

Water Plant Project - Continued Reading

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