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Item 3.10 Wellhouse No 4 Water Treatment Plant Amendment No 2 to Engineering Agreement Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier February 9, 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent AE2S Engineer Hanson City Administrator/Finance Director Flaherty 3.10 – Wellhouse 4 WTP STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City Staff is recommending City Council approve an amendment to the AE2S professional services contract for the Wellhouse No. 4 Treatment Improvements project. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: The City of Otsego has an existing professional services agreement with AE2S to provide engineering services for the Wellhouse No. 4 Water Treatment Improvements project. The original agreement included engineering design, bidding, and construction phase services based on assumptions of part-time construction support and limited on-site observation. Since the start of construction, project conditions have required a greater level and duration of engineering construction administration and on-site observation than originally anticipated. AE2S has provided increased on-site representation, contractor coordination, submittal and RFI review, QA/QC oversight, bi-weekly progress meetings, and construction documentation review to ensure construction accuracy and compliance. Construction schedule delays, increased field coordination needs, and a City-approved 11-day schedule extension have further increased the required level of effort. As a result, AE2S has requested an amendment to the Owner–Engineer Agreement to address additional construction administration, resident project representative (RPR) services, and associated support beyond the original scope. The amendment also includes additional plumbing design services required to address code changes identified during construction. The requested amendment totals $73,550.00. Approval of this amendment will increase the total not-to-exceed amount of the professional services agreement with AE2S to $1,166,250.00. AE2S Agreement Amount Original Agreement Amount + Construction & IC Services: $ 1,092,700.00 This Amendment Amount: $ 73,550.00 Adjusted Agreement Amount: $ 1,166,250.00 Construction Contract Amount Original Contract Amount: $ 6,840,000.00 Net Change Orders to Date: $ 139,459.86 Adjusted Contract Amount: $ 6,979,459.86 When viewed together, the construction change orders and amended engineering services agreement currently increase the project costs by $213,009.86, which represents approximately 62% of the project contingency in the financing package. With this month’s pay application from Market & Johnson, the construction contract is approximately 83.0% complete, and only limited additional changes are anticipated as the project progresses toward commissioning and startup. The proposal was presented to the Public Works Subcommittee on January 21, 2026. The City Attorney has reviewed the proposed amendment. Staff recommend approval of the amendment to allow AE2S to continue providing construction support services through project completion. SUPPORTING DOCUMENTS ATTACHED: • Amendment No. 2 to Owner-Engineer Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve “Amendment to Owner-Engineering Agreement, Amendment No. 2” – a professional services contract amendment in the amount of $73,550.00 with Advanced Engineering and Environmental Services, LLC. BUDGET INFORMATION FUNDING: BUDGETED: Fund 601 – Drinking Water Utility Yes Amendment No. 2 Page 1 AE2S PROJECT NO.: P05409-2020-010 AMENDMENT TO OWNER-ENGINEER AGREEMENT Amendment No. 2 Effective Date of Owner-Engineer Agreement: February 13, 2023 Owner: City of Otsego Engineer: Advanced Engineering and Environmental Services, LLC Specific Project: Wellhouse No. 4 Treatment Improvements Nature of Amendment: X Modifications of services performed by Engineer X Modification of payment to Engineer X Modifications to time(s) for rendering services Description of Modifications: a. The Scope of Services currently authorized to be performed by Engineer in accordance with the Agreement and previous amendments, if any, is modified as follows: • Additional on-site observation (RPR) services beyond the originally scoped part-time effort. • Additional plumbing design services required to address code changes. • Additional construction administration and RPR services associated with an 11-day construction schedule extension resulting from approved change orders. b. For the modifications of services set forth above, Owner shall pay Engineer the following additional compensation on an hourly basis, not to exceed $73,550.00 without written authorization from the Owner. c. The schedule for rendering services under this Amendment is modified as follows: • 11-day extension from the original 18-month substantial completion date. Agreement Summary: Original agreement amount: $ 390,200.00 Net change for prior amendments: $ 702,500.00 This amendment amount: $ 73,550.00 Adjusted Agreement amount: $ 1,166,250.00 Owner and Engineer hereby agree to modify the above-referenced Agreement as set forth in this Amendment. All provisions of the Agreement not modified by this or previous Amendments remain in effect. Amendment No. 2 Page 2 The Effective Date of this Amendment is February 9, 2026. OWNER: ENGINEER: City of Otsego Advanced Engineering and Environmental Services, LLC By: By: {{__evi__Signer1_es_:signer1:signature}} Date: Date: {{__evi__Dte1_es_:signer1:date:required}} Name: Name: Justin Klabo Title: Title: Operations Manager Amendment No. 2 Page 3 ADVANCED ENGINEERING AND ENVIRONMENTAL SERVICES, LLC 2026 HOURLY FEE AND EXPENSE SCHEDULE Labor Rates* Administrative 1 $73.00 Administrative 2 $88.00 Administrative 3 $103.00 Communications Specialist 1 $117.00 Communications Specialist 2 $137.00 Communications Specialist 3 $158.00 Communications Specialist 4 $190.00 Communications Specialist 5 $210.00 Construction Services 1 $140.00 Construction Services 2 $171.00 Construction Services 3 $190.00 Construction Services 4 $211.00 Construction Services 5 $232.00 Engineering Assistant 1 $94.00 Engineering Assistant 2 $111.00 Engineering Assistant 3 $140.00 Engineer 1 $152.00 Engineer 2 $182.00 Engineer 3 $213.00 Engineer 4 $246.00 Engineer 5 $264.00 Engineer 6 $279.00 Engineering Technician 1 $93.00 Engineering Technician 2 $117.00 Engineering Technician 3 $141.00 Engineering Technician 4 $158.00 Engineering Technician 5 $181.00 Financial Analyst 1 $126.00 Financial Analyst 2 $142.00 Financial Analyst 3 $171.00 Financial Analyst 4 $187.00 Financial Analyst 5 $209.00 GIS Specialist 1 $117.00 GIS Specialist 2 $142.00 GIS Specialist 3 $168.00 GIS Specialist 4 $188.00 GIS Specialist 5 $210.00 I&C Assistant 1 $112.00 I&C Assistant 2 $139.00 I&C 1 $166.00 I&C 2 $196.00 I&C 3 $221.00 I&C 4 $234.00 I&C 5 $246.00 IT 1 $145.00 IT 2 $196.00 IT 3 $241.00 Land Surveyor Assistant $107.00 Land Surveyor 1 $129.00 Land Surveyor 2 $156.00 Land Surveyor 3 $175.00 Land Surveyor 4 $193.00 Land Surveyor 5 $213.00 Operations Specialist 1 $112.00 Operations Specialist 2 $140.00 Operations Specialist 3 $173.00 Operations Specialist 4 $198.00 Operations Specialist 5 $222.00 Project Coordinator 1 $130.00 Project Coordinator 2 $145.00 Project Coordinator 3 $162.00 Project Coordinator 4 $178.00 Project Coordinator 5 $201.00 Project Manager 1 $229.00 Project Manager 2 $251.00 Project Manager 3 $269.00 Project Manager 4 $284.00 Project Manager 5 $303.00 Project Manager 6 $317.00 Sr. Designer 1 $199.00 Sr. Designer 2 $221.00 Sr. Designer 3 $238.00 Sr. Financial Analyst 1 $236.00 Sr. Financial Analyst 2 $257.00 Sr. Financial Analyst 3 $279.00 Technical Expert 1 $361.00 Technical Expert 2 Negotiable Amendment No. 2 Page 4 Reimbursable Expense Rates Transportation $0.83/mile Survey Vehicle $1.05/mile Laser Printouts/Photocopies $0.30/copy Plotter Printouts $1.00/s.f. UAS - Photo/Video Grade $100.00/day UAS/USV – Survey $50.00/hour Total Station – Robotic $35.00/hour Mapping GPS $60.00/day Fast Static/RTK GPS $50.00/hour All-Terrain Vehicle/Boat $100.00/day Cellular Modem $75.00/month Web Hosting $26.00/month Legal Services Reimbursement $302.00/hour Outside Services cost * 1.15 Geotechnical Services cost * 1.30 Out of Pocket Expenses cost * 1.15 Rental Car cost * 1.20 Project Specific Equipment Negotiable * Position titles are for labor rate grade purposes only. These rates are subject to adjustment each year on January 1.