City considers $13 million for water treatment plant

The City turned off the water in Olney July 25 due to another breach in the water lines. This recent incident occurred just a couple of weeks after the first special-called financial committee meeting of the City council held July 12 at 5 p.m. The sole purpose of the meeting was to discuss the plan to move forward with a reconstructed water treatment plant.

Mayor Rue Rogers said, “I love Olney and want to see Olney continue to grow and prosper. The water project is a big project that will have immediate implications, but also set us up for the next 50 years where we will have good water and [allow] the town to continue to be sustainable.”

The financial committee comprises members of Olney City Council, Mayor Rue Rogers, Mayor Pro Tempore Tom Parker, and residents of Olney. They are volunteering their time and offering insight to complete the project timely and efficiently. Members present included: Mayor Rue Rogers, Mayor Pro Tem Tom Parker, Tommy Kimbro, Sonja Gray, Clancy Myers, Bob McQuery, Jackie Griffin, Oscar Munoz, Coach Dylan Ballard, Phil Jeske, Megan Widner and Harrison Wellman.

Regarding the cost of a reconstructed treatment plant, Parker said, “We have a serviceable plant that has operated for 100 years that we are looking to replace for $13 million.” Parker said the estimate is based on current construction costs provided by the engineering company, and he added that the price could rise if the City does not move forward expeditiously.

“That $13 million is an estimate in today’s dollars. Just turn on the television; if they’re telling us that inflation is going to be double digits, it’s going to be steep double digits. So, the sooner we can do this, the better off we’re going to be. The cost could easily become a $15 to $20 million project if we wait even two years,” Parker stated.

With the $13 million price tag, consumer bills will inevitably increase between $30 and $50, which Jeske estimated.

What does a new wastewater treatment plant mean for the citizens of Olney? Parker explained, “In a nutshell, a new treatment plant may lead to an increase in monthly utilities that could range from 35 percent to 55 percent.”

Parker said the footprint is large enough to allow this project to be completed in phases.

“The new plant will be phased in by building one section at a time, which allows production to remain online. This would cause a shift 75 to 100 ft to the east. We will make the best use of the infrastructure that we currently have.,” Parker said.

According to the timeline that the Council shared with the Financial Committee, the City council began the discussion about the water treatment plant in September 2020.

Parker said, “The previous Council considered a self-contained skid unit that gives a million gallons in production. The life expectancy is between three and six years. Given the environment we are in, the cost would be estimated at $8 million with a 15-year life expectancy. If we replace what we have, we can produce 145 million gallons of water a year. The income from that is $1.7 million and with the cost at $1.3 million. It is a huge amount of production that goes through the existing plant. What it ultimately produced in revenue 1.7 on a $3 million budget. Without the plant, you remove a considerable amount of revenue.”

For more information about the first meeting, visit www.CityOfOlneyTx.com.

City Council meetings are held every second and fourth Monday.