What Were the Options?

Evaluating Every Path Toward a Reliable Water Future

Evaluating the Options

In 2023, the City worked with its engineering team to complete a 20-year Life Cycle Cost Analysis. This analysis compared three alternatives using consistent criteria:

  • Construction and capital costs (treatment plants, transmission mains, buy-in fees)
  • Operations and maintenance (O&M)
  • Reserve funds for replacement of pumps, controls, and other short-lived equipment
  • Wholesale water purchase fees (where applicable)
  • Salvage value (the residual system value after 20 years)
  • Present worth adjustment (bringing all numbers into today’s dollars for fair comparison)

Alternative 1 – Build a New 3 Million Gallon per Day (MGD) Water Treatment Plant
 

  • Capital Cost: $27.5 million proposed cost (includes contingency for federal Buy America Build America compliance)
  • Annual O&M: $1.45 million
  • Reserve fund: $370,000 per year
  • Salvage Value: $13.7 million
  • 20-Year Life Cycle Cost: $49.5 million

Alternative 2 – Connect to Miami County Rural Water District 2 (RWD 2)
 

  • Capital Cost: $39.1 million (includes $18 million capacity buy-in, $5.1 million in storage upgrades, and $16 million to build 11.5 miles of transmission main)
  • Water Purchase Fee: $3.97 per 1,000 gallons
  • Annual O&M: $917,000
  • Reserve fund: $103,000 per year
  • Salvage Value: $19.6 million
  • 20-Year Life Cycle Cost: $59.5 million

Note: A 1.5 MGD option was reviewed, but it cannot meet Osawatomie’s peak demand.

Alternative 3 – Connect to the Marais Des Cygnes Public Utility Authority (MDCPUA)
 

  • Capital Cost: $11.9 million (7.5-mile transmission main and capacity fee)
  • Water Purchase Fee: $8.45 per 1,000 gallons
  • Annual O&M: $917,000
  • Reserve fund: $103,000 per year
  • Salvage Value: $6 million
  • 20-Year Life Cycle Cost: $65.7 million

Engineering Conclusion

Building a new City-owned water treatment plant is the most cost-effective long-term choice, providing full control over supply and avoiding expensive wholesale purchase agreements. The numbers made it clear: building our own plant is the best financial choice for Osawatomie. This step represents the culmination of years of study and planning, and it positions Osawatomie to finally replace an aging system with one that ensures safe, reliable, and sustainable water service for generations to come.

Water Plant Project - Continued Reading

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