Item 3.9 Wellhouse 3 Water Treatment Plant Approve Plans and Specifications and Authorize the Bid Process
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Utilities Utility Manager Neidermeier March 23, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
Consent
AE2S Engineer Hanson
City Administrator/Finance Director Flaherty
3.9 – Wellhouse No. 3 Water
Treatment Plant
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 approval of authorization to solicit bids for the implementation of Wellhouse
No. 3 Water Treatment Plant project.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The existing Otsego Wellhouse No. 3 is in the southwest portion of the City and currently combines water from three (3)
municipal supply wells. The facility provides chemical treatment only and does not include filtration. To improve water
quality concerns, the City is proposing to add filtration and expanded treatment capabilities at Wellhouse No. 3.
Final design has been completed for a new pressure filtration water treatment plant (WTP) to treat water from
Wellhouse No. 3 and a new well to be constructed at the WTP site. The proposed WTP will include pressure filtration for
manganese, iron, and radium removal; a backwash recovery and reclamation tank; chemical storage and feed systems;
standby generator power; and a bulk water fill station.
Plans and specifications have been prepared, and the project is ready to solicit bids from qualified general contractors.
The project will be advertised on the City website and QuestCDN in accordance with Minnesota public bidding statutes.
Construction contract terms and conditions are consistent with those used on previous City construction projects and
have been reviewed by the City Attorney.
AE2S’s opinion of probable construction cost for the bid package is $13,910,000. The Public Works Subcommittee
reviewed and provided a recommendation to consider authorization for project advertisement at its February 18, 2026,
meeting.
Construction phase services and instrumentation and controls (I&C) programming for the WTP will be provided by AE2S.
Construction services support is anticipated to be approximately 7–8 percent of the construction bid cost for a project of
this size, with I&C services estimated at $220,000. Final AE2S fees will be presented with the bid award.
If approved, the project will be advertised in April, with bids opened in May. The City Council is expected to consider
awarding the construction contract at the May 11, 2026, meeting. Substantial completion of the project is scheduled for
February 28, 2028.
Project funding is anticipated to be a combination of a federal Congressional Directed Spending grant, an “emerging
contaminants” grant (for which the project qualifies due to manganese removal), and a low-interest loan through the
State Revolving Fund.
Several related projects will occur concurrently with the Wellhouse No. 3 WTP project, including:
• Transmission water mains between Wellhouse No. 3 and the WTP
o Design: February 2026 – April 2026
o Bidding: Winter 2026
o Construction: Summer 2027 – Fall 2027
• Well 12
o Drilling Well: May 2026 - July 2026
o Well Pump Quote Package Development: Spring 2027
o Well Pump Procurement and Installation: Fall 2027
SUPPORTING DOCUMENTS ATTACHED:
• Drawing from “Otsego Wellhouse No. 3 Water Treatment Plant” Dated February 20, 2026
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion for authorization to solicit bids for the implementation of Otsego Wellhouse No. 3 Water Treatment Plant
project.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 601 – Water Utility
Yes