Item 5.1 Wellhouse No 3 Water Treatment Plant
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Utilities Utility Manager Neidermeier May 26, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
AE2S City Administrator/Finance Director Flaherty
City Attorney Kendall
5.1 – Wellhouse No. 3 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 recommend the City Council accept bids and authorize construction of the Wellhouse No. 3 WTP.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
Wellhouse No. 3 Water Treatment Plant
Bids for the Wellhouse No. 3 Water Treatment Plant (WTP) project were received electronically at 3:00 p.m. on Tuesday,
May 19, 2026. A total of five (5) bids were received as shown on the attached bid tabulation. The bid, submitted by Rice
Lake Construction Group, provided a combined lump sum base bid of $9,194,600 and was deemed responsive and
responsible. Bid alternates are recommended to be rejected.
The project includes construction of a complete 3,000 gpm iron, manganese, and radium removal water treatment
plant, including a new 6,000-square-foot treatment facility, pressure filtration and chemical feed systems, backwash
reclamation tanks, mechanical and electrical systems, site improvements, and modifications to Wellhouse No. 3, along
with all associated piping, controls, utilities, and appurtenances necessary for a fully operational treatment system.
Certain major process equipment will be furnished by the City, with the Contractor responsible for coordination,
installation, integration, and all remaining work required to deliver a complete and functional facility in accordance with
the Contract Documents.
Rice Lake Construction Group, based in Deerwood, Minnesota, has extensive experience in water treatment plant
construction, has previously completed work for the City of Otsego, and is currently serving as Construction Manager at
Risk (CMAR) on the South-Central Water Treatment project. Staff and Engineering provide recommendations to accept
Rice Lake Construction Group’s bid for completing this work.
Pressure Vessel System Procurement
Bids for the Pressure Vessel System Procurement were received electronically at 10:00 a.m. on Thursday, May 14, 2026.
A total of two (2) bids were received as shown on the attached bid tabulation. The bid, submitted by Kurita America Inc.,
provided a combined lump sum base bid of $1,913,331 and was deemed responsive and responsible.
This procurement includes furnishing the pressure vessel system for the Wellhouse No. 3 Water Treatment Plant,
consisting of two double-cell, dual-media steel pressure filters with associated piping, valves, blower package, filtration
media, and related appurtenances necessary for the treatment process. The Seller is responsible for fabrication, off-site
storage, and delivery of the system, as well as providing on-site technical supervision for assembly, media loading, and
start-up assistance. All building construction, site work, mechanical, electrical, controls, unloading, installation, and
other work outside the defined system scope will be completed by others as part of the overall project.
Kurita America Inc., out of Minneapolis, Minnesota, has extensive experience in pressure filtration systems with
installations throughout Minnesota and internationally, including systems currently operating for the City of Otsego at
Wellhouse No. 4. Staff and Engineering provide recommendation to accept Kurita America’s bid for completing this
work.
AE2S Amendment #1 to the AE2S Professional Services Agreement
The original professional services agreement with AE2S included design and bidding phase services for the water
treatment plant project as well as Well 12. The proposed professional services amendment expands AE2S’s scope to
include construction administration, resident project representative services, post-construction services, controls
programming and integration, and communications services, as well as additional support for Well 12.
The amendment was reviewed by the Public Works Subcommittee on May 20, 2026, with a recommendation for
approval by the full Council. The City Attorney has completed an initial review of the amendment and will conduct a
final review prior to execution. A summary of the existing agreement and the amendment is included below:
Original Agreement
Water Treatment Plant
Permitting/Grant Coordination $ 71,700.00
Study and Report $ 22,300.00
Preliminary Design Phase $ 214,200.00
Final Design Phase $ 379,400.00
Bidding and Negotiating Phase $ 36,700.00
Well 12
Well Design and Coordination $ 61,800.00
Total Agreement Amount $ 786,100.00
Amendment #1
Water Treatment Plant
Construction Administration $ 481,600.00
Construction Observation/RPR $ 555,600.00
Post-Construction Services $ 56,800.00
Well 12
Well 12 Pump Sizing & Procurement $ 25,400.00
Well 12 Construction Services $ 40,900.00
Instrumentation & Controls (I&C) Phase Services
I&C Programming $ 273,400.00
Communications Phase Services
Communications Services $ 12,000.00
Total AE2S Amendment #1 $ 1,445,700.00
Adjusted Agreement Amount $ 2,231,800.00
Construction and Engineering costs associated with the Water Treatment Plant and instrumentation & controls services
under the original agreement and Amendment #1 are eligible for funding through the Drinking Water State Revolving
Fund (DWSRF) program. The overall project is expected to receive $1.5 million in EPA grant funding and $5 million in
DWSRF grant funding, with remaining eligible costs financed through the SRF loan program.
Well 12-related services will be allocated to Fund 601 – Drinking Water Utility in accordance with the City’s Capital
Improvement Plan. Communications services will be allocated to the appropriate project fund.
SUPPORTING DOCUMENTS ATTACHED:
• Presentation Slides
• Wellhouse No. 3 Water Treatment Plant - AE2S Recommendation
• Wellhouse No. 3 Water Treatment Plant – Bid Tab Summary
• Resolution 2026-43
• Pressure Vessel System Procurement - AE2S Recommendation
• Pressure Vessel System Procurement – Bid Tab Summary
• Resolution 2026-44
• Amendment to Owner-Engineer Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2026-43 Accepting Bids and Awarding Contract to Rice Lake Construction Group for the
Wellhouse No. 3 Water Treatment Plant Project in the amount of $9,194,600.
Motion to adopt Resolution 2026-44 Accepting Bids and Awarding Contract to Kurita America, Inc. for the Pressure
Vessel System Procurement in the amount of $1,913,331.
Motion to approve “Amendment to Owner-Engineering Agreement, Amendment No. 1” – a professional services
contract amendment in the amount of $1,445,700 with Advanced Engineering and Environmental Services, LLC.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 601 – Water Utility
Yes
May 20, 2026
City of Otsego
Adam Flaherty
City Administrator
13400 90th St NE
Otsego, MN 55330
Re: Wellhouse No. 3 Water Treatment Plant Project – Bid Award Recommendation
AE2S Project No.: P05409-2023-008
Dear Mr. Flaherty:
Bids were received at 3:00 p.m. on Tuesday, May 19, 2026 electronically for the above referenced
project. A total of five (5) bids were received, all of which were opened via the virtual bidding
platform and read aloud. Pursuant to our review of the bid received, it appears that it was
completed in accordance with the bidding requirements. A bid tabulation is enclosed with this
letter for your review.
A summary of the Bid Tabulation is below for your reference.
Bidders
Base Bid
(WTP + Installation
of Filter Vessels)
Bid Alternate No. 1
(Field Installation of
Filter Trough & Air
Wash Grids)
Bid Alternate No. 2
(Alternate Control
System
Manufacturer)
Rice Lake Construction $ 9,194,600 + $ 50,000 No Bid
Municipal Builders, Inc. $ 9,203,219 + $ 14,740 No Bid
Journey Construction $ 9,898,000 + $ 17,299 No Bid
Magney Construction $ 9,913,000 + $ 35,000 No Bid
Gridor Construction $ 10,383,100 + $ 75,000 + $ 200,000
Engineer’s Estimate $ 11,910,000
City of Otsego
Wellhouse No. 3 Water Treatment Plant Project
Bid Award Recommendation
Page 2 of 2
AE2S has reviewed the bid results, conferred with City staff, and recommends that the City of
Otsego reject Bid Alternate No. 1 and Bid Alternate No. 2 and award the Base Bid construction
contract for the Wellhouse No. 3 Water Treatment Plant Project to Rice Lake Construction Group
as they were the lowest responsive and responsible bidder.
AE2S truly appreciates the opportunity to assist the City of Otsego with this important project.
you have any comments or questions regarding the bid results or the project in general, please
do not hesitate to contact me at 763-463-5036.
Sincerely,
Ryan Hanson, PE
Project Manager
Contractor Download/Acknowledge Addenda 1-4Bid Security00 43 29 Responsible Contractor Verification00 45 13 Bidder Qualifications Form00 45 19 Non-Collusion Affidavit00 45 36 MN Affirmative Action Certification00 45 46 Governmental Certifications00 41 00 Bid Form (Add #4)Contractor's License or Certificate of Renewal1 copy of DBE Solicitation LetterList of DBE Businesses solicited and datesvBid WorksheetBase Bid
Factory Installed Filter
Trough & Air Wash Grid
System
Alternate No. 1
Field Install Filter Trough
& Air Wash Grid System
Adder
Alternate No. 2
Alternate Control System
Manufacturer
Adder/Deduct
1 Rice Lake Construction Group $9,194,600.00 $50,000.00 No Bid
2 Municipal Builders, Inc. $9,203,219.00 $14,740.00 No Bid
3 Journey Construction $9,898,000.00 $17,299.00 No Bid
4 Magney Construction, Inc. $9,913,000.00 $35,000.00 No Bid
5 Gridor Construction, Inc. $10,383,100.00 $75,000.00 $200,000.00
Engineer's Estimate
Advanced Engineering and Environmental Services, LLC Ryan Hanson, PE
Water Tower Place Business Center
6901 E Fish Lake Rd, Suite 184
Maple Grove, MN 55369
Tel: 763-763-5036
Otsego Wellhouse No.3 Water Treatment Plant
City of Otsego
Otsego, MN
AE2S Project No. P05409-2023-008
Bid Opening Time 3:00 PM CDT Date Tuesday, May 19, 2026
$11,910,000.00
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2026-43
ACCEPTING BIDS AND AWARDING CONTRACT
WHEREAS, pursuant to an advertisement for bids for the construction of Otsego Wellhouse No. 3 Water Treatment Plant
Project, bids were received, opened on May 19, 2026 and tabulated according to law, and the following bids were received
complying with the advertisement; and
WHEREAS, it appears that Rice Lake Construction Group of Deerwood, Minnesota is the lowest responsible, responsive bidder.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The Mayor and City Clerk are hereby authorized and directed to enter into a contract with Rice Lake Construction
Group of Deerwood, Minnesota in the name of the City of Otsego for the Wellhouse No. 3 Water Treatment Plant
Project according to the plans and specifications therefore approved by the City Council and on file in the office of the
City Clerk.
2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bond made with their bids,
except that the bid bond of the successful bidder and the next lowest bidder shall be retained until a contract has
been signed.
2
ADOPTED by the Otsego City Council this 26th day of May, 2026.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
May 20, 2026
City of Otsego
Adam Flaherty
City Administrator
13400 90th St NE
Otsego, MN 55330
Re: Pressure Vessel System Procurement – Bid Award Recommendation
AE2S Project No.: P05409-2023-008
Dear Mr. Flaherty:
Bids were received at 10:00 a.m. on Thursday, May 14, 2026 electronically for the above referenced
project. A total of two (2) bids were received, all of which were opened via the virtual bidding
platform and read aloud. Pursuant to our review of the bid received, it appears that it was
completed in accordance with the bidding requirements. A bid tabulation is enclosed with this
letter for your review.
A summary of the Bid Tabulation is below for your reference.
Seller Bid Price
Kurita America Inc. $ 1,913,331
WesTech Engineering, LLC $ 1,984,485
Engineer’s Estimate $ 2,000,000
AE2S has reviewed the bid results, conferred with City staff, and recommends that the City of
Otsego award the procurement contract for the Pressure Vessel System Procurement to Kurita
America Inc. as they were the lowest responsive and responsible bidder.
AE2S truly appreciates the opportunity to assist the City of Otsego with this important project.
you have any comments or questions regarding the bid results or the project in general, please
do not hesitate to contact me at 763-463-5036.
Sincerely,
Ryan Hanson, PE
Project Manager
Otsego Pressure Vessel System Procurement
City of Otsego
Otsego, MN
AE2S Project No. P05409-2023-008
Bid Opening Time 10:00 AM CDT Date Thursday, May 14, 2026
Supplier Acknowledge/Download Addenda 1-2Bid BondBid Form (with evidence of signing authority)Qualifications Statement per Section 00 21 12, Article 3.03 Certification Affirming BABA Compliance per Section 00 21 12, Article 22.03vBid WorksheetPressure Vessel System Procurement
Lump Sum
1 Kurita America Inc. $1,913,331.00
2 WesTech Engineering, LLC $1,984,485.00
Engineer's Estimate
Advanced Engineering and Environmental Services, LLC Ryan Hanson, PE
Water Tower Place Business Center
6901 E Fish Lake Rd, Suite 184
Maple Grove, MN 55369
Tel: 763-763-5036
$2,000,000.00
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2026-44
ACCEPTING BIDS AND AWARDING CONTRACT
WHEREAS, pursuant to an advertisement for bids for the procurement of the Pressure Vessel System to be installed as part of
the Wellhouse No. 3 Water Treatment Plant Project, bids were received, opened on May 14, 2026, and tabulated according
to law, and the following bids were received complying with the advertisement; and
WHEREAS, it appears that Kurita America Inc. of Minneapolis, Minnesota is the lowest responsible, responsive bidder.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The Mayor and City Clerk are hereby authorized and directed to enter into a contract with Kurita America Inc. of
Minneapolis, Minnesota in the name of the City of Otsego for the Pressure Vessel System Procurement according to
the plans and specifications therefore approved by the City Council and on file in the office of the City Clerk.
2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bond made with their bids,
except that the bid bond of the successful bidder and the next lowest bidder shall be retained until a contract has
been signed.
2
ADOPTED by the Otsego City Council this 26th day of May, 2026.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
Amendment No. 1 to Owner-Engineer Agreement
Page 1
AE2S Project No.: P05409-2023-008
AMENDMENT TO OWNER-ENGINEER AGREEMENT
Amendment No. 1
The Effective Date of this Amendment is: __ May 26, 2026____.
Background Data
Effective Date of Owner-Engineer Agreement: November 25, 2024
Owner: City of Otsego, Minnesota
Engineer: Advanced Engineering and Environmental Services, LLC (AE2S)
Project: Otsego Wellhouse No. 3 Water Treatment Plant
Nature of Amendment:
__X__ Additional Services to be performed by Engineer
__X__ Modifications of payment to Engineer
__X__ Modifications to time(s) for rendering services
Description of Modifications:
A. Engineer shall perform the following Additional Services:
Water Treatment Plant
A1.07 Construction Phase
A. Upon successful completion of the Bidding and Negotiating Phase, and upon written
authorization from Owner, Engineer shall:
1. General Administration of Construction Contract: Consult with Owner and act as Owner’s
representative as provided in the Construction Contract. The extent and limitations of the
duties, responsibilities, and authority of Engineer as assigned in the Construction Contract
shall not be modified, except as Engineer may otherwise agree in writing. All of Owner’s
instructions to Contractor will be issued through Engineer, which shall have authority to act
on behalf of Owner in dealings with Contractor to the extent provided in this Agreement and
the Construction Contract except as otherwise provided in writing.
a. Loan Application: Consult with Owner to produce a completed State Revolving Fund
(SRF) loan application for the project financing. It is anticipated that Engineer will
complete the loan application relying upon project knowledge and previously completed
city reports with review and official submittal by Owner.
Amendment No. 1 to Owner-Engineer Agreement
Page 2
b. Financial Administration: Conduct Contractor payroll interviews, conduct certified
payroll verification, conduct American Iron and Steel compliance verification, consult
with Owner for loan draw amounts, and coordinate loan draw requests.
2. Resident Project Representative (RPR): Provide the services of an RPR at the Site to assist
the Engineer and to provide more extensive observation of Contractor’s work. Duties,
responsibilities, and authority of the RPR are as set forth in Exhibit D. The furnishing of
such RPR’s services will not limit, extend, or modify Engineer’s responsibilities or authority
except as expressly set forth in this Agreement.
3. Selecting Independent Testing Laboratory: If deemed necessary, assist Owner in the
selection of an independent testing laboratory to perform the services identified in Exhibit B,
Paragraph B2.01.O.
4. Pre-Construction Conference: Participate in and host a Pre-Construction Conference prior
to commencement of Work at the Site.
5. Schedules: Receive, review, and determine the acceptability of any and all schedules that
Contractor is required to submit to Engineer, including the Progress Schedule, Schedule of
Submittals, and Schedule of Values.
6. Baselines and Benchmarks: As appropriate, coordinate establishment (by others) of
baselines and benchmarks for locating the Work which in Engineer’s judgment are necessary
to enable Contractor to proceed.
7. Visits to Site and Observation of Construction: In connection with observations of
Contractor’s Work while it is in progress:
a. Make visits to the Site at intervals appropriate to the various stages of construction, as
Engineer deems necessary, to observe as an experienced and qualified design
professional the progress of Contractor’s executed Work. Such visits and observations
by Engineer, and the Resident Project Representative, if any, are not intended to be
exhaustive or to extend to every aspect of Contractor’s Work in progress or to involve
detailed inspections of Contractor’s Work in progress beyond the responsibilities
specifically assigned to Engineer in this Agreement and the Contract Documents, but
rather are to be limited to spot checking, selective sampling, and similar methods of
general observation of the Work based on Engineer’s exercise of professional judgment,
as assisted by the Resident Project Representative, if any. Based on information obtained
during such visits and observations, Engineer will determine in general if the Work is
proceeding in accordance with the Contract Documents, and Engineer shall keep Owner
informed of the progress of the Work.
b. The purpose of Engineer’s visits to, and representation by the Resident Project
Representative, if any, at the Site, will be to enable Engineer to better carry out the duties
and responsibilities assigned to and undertaken by Engineer during the Construction
Phase, and, in addition, by the exercise of Engineer’s efforts as an experienced and
qualified design professional, to provide for Owner a greater degree of confidence that
the completed Work will conform in general to the Contract Documents and that
Contractor has implemented and maintained the integrity of the design concept of the
completed Project as a functioning whole as indicated in the Contract Documents.
Engineer shall not, during such visits or as a result of such observations of Contractor’s
Amendment No. 1 to Owner-Engineer Agreement
Page 3
Work in progress, supervise, direct, or have control over Contractor’s Work, nor shall
Engineer have authority over or responsibility for the means, methods, techniques,
sequences, or procedures of construction selected or used by Contractor, for security or
safety at the Site, for safety precautions and programs incident to Contractor’s Work, nor
for any failure of Contractor to comply with Laws and Regulations applicable to
Contractor’s furnishing and performing the Work. Accordingly, Engineer neither
guarantees the performance of any Contractor nor assumes responsibility for any
Contractor’s failure to furnish or perform the Work in accordance with the Contract
Documents.
8. Defective Work: Recommend to Owner rejection of Work if, on the basis of Engineer’s
observations, Engineer believes that such Work (a) is defective under the standards set forth
in the Contract Documents, (b) will not produce a completed Project that conforms to the
Contract Documents, or (c) will imperil the integrity of the design concept of the completed
Project as a functioning whole as indicated by the Contract Documents.
9. Clarifications and Interpretations; Field Orders: Issue necessary clarifications and
interpretations of the Contract Documents as appropriate to the orderly completion of
Contractor’s work. Such clarifications and interpretations will be consistent with the intent
of and reasonably inferable from the Contract Documents. Subject to any limitations in the
Contract Documents, Engineer may issue field orders authorizing minor variations in the
Work from the requirements of the Contract Documents.
10. Change Orders and Work Change Directives: Recommend change orders and work change
directives to Owner, as appropriate, and prepare change orders and work change directives
as required.
11. Shop Drawings and Samples: Review and approve or take other appropriate action in respect
to Shop Drawings and Samples and other data which Contractor is required to submit, but
only for conformance with the information given in the Contract Documents and
compatibility with the design concept of the completed Project as a functioning whole as
indicated by the Contract Documents. Such reviews and approvals or other action will not
extend to means, methods, techniques, sequences, or procedures of construction or to safety
precautions and programs incident thereto. Engineer shall meet any Contractor’s submittal
schedule that Engineer has accepted.
12. Substitutes and “or-equal”: Evaluate and determine the acceptability of substitute or “or-
equal” materials and equipment proposed by Contractor, but subject to the provisions of the
Contract Documents.
13. Inspections and Tests: Require such special inspections or tests of Contractor’s work as
deemed reasonably necessary, and receive and review all certificates of inspections, tests,
and approvals required by Laws and Regulations or the Contract Documents. Engineer’s
review of such certificates will be for the purpose of determining that the results certified
indicate compliance with the Contract Documents and will not constitute an independent
evaluation that the content or procedures of such inspections, tests, or approvals comply with
the requirements of the Contract Documents. Engineer shall be entitled to rely on the results
of such tests.
14. Disagreements between Owner and Contractor: Render formal written decisions on all duly
submitted issues relating to the acceptability of Contractor’s work or the interpretation of the
Amendment No. 1 to Owner-Engineer Agreement
Page 4
requirements of the Contract Documents pertaining to the execution, performance, or
progress of Contractor’s Work; review each duly submitted Claim by Owner or Contractor,
and in writing either deny such Claim in whole or in part, approve such Claim, or decline to
resolve such Claim if Engineer in its discretion concludes that to do so would be
inappropriate. In rendering such decisions, Engineer shall be fair and not show partiality to
Owner or Contractor and shall not be liable in connection with any decision rendered in good
faith in such capacity.
15. Applications for Payment: Based on Engineer’s observations as an experienced and qualified
design professional and on review of Applications for Payment and accompanying
supporting documentation:
a. Determine the amounts that Engineer recommends Contractor be paid. Such
recommendations of payment will be in writing and will constitute Engineer’s
representation to Owner, based on such observations and review, that, to the best of
Engineer’s knowledge, information and belief, Contractor’s Work has progressed to the
point indicated, the Work is generally in accordance with the Contract Documents
(subject to an evaluation of the Work as a functioning whole prior to or upon Substantial
Completion, to the results of any subsequent tests called for in the Contract Documents,
and to any other qualifications stated in the recommendation), and the conditions
precedent to Contractor’s being entitled to such payment appear to have been fulfilled in
so far as it is Engineer’s responsibility to observe Contractor’s Work. In the case of unit
price work, Engineer’s recommendations of payment will include final determinations
of quantities and classifications of Contractor’s Work (subject to any subsequent
adjustments allowed by the Contract Documents).
b. By recommending any payment, Engineer shall not thereby be deemed to have
represented that observations made by Engineer to check the quality or quantity of
Contractor’s Work as it is performed and furnished have been exhaustive, extended to
every aspect of Contractor’s Work in progress, or involved detailed inspections of the
Work beyond the responsibilities specifically assigned to Engineer in this Agreement
and the Contract Documents. Neither Engineer’s review of Contractor’s Work for the
purposes of recommending payments nor Engineer’s recommendation of any payment
including final payment will impose on Engineer responsibility to supervise, direct, or
control Contractor’s Work in progress or for the means, methods, techniques, sequences,
or procedures of construction or safety precautions or programs incident thereto, or
Contractor’s compliance with Laws and Regulations applicable to Contractor’s
furnishing and performing the Work. It will also not impose responsibility on Engineer
to make any examination to ascertain how or for what purposes Contractor has used the
moneys paid on account of the Contract Price, or to determine that title to any portion of
the Work in progress, materials, or equipment has passed to Owner free and clear of any
liens, claims, security interests, or encumbrances, or that there may not be other matters
at issue between Owner and Contractor that might affect the amount that should be paid.
16. Contractor’s Completion Documents: Receive, review, and transmit to Owner maintenance
and operating instructions, schedules, guarantees, bonds, certificates or other evidence of
insurance required by the Contract Documents, certificates of inspection, tests and approvals,
Shop Drawings, Samples and other data approved as provided under Paragraph A1.07.A.11,
and transmit the annotated record documents which are to be assembled by Contractor in
accordance with the Contract Documents to obtain final payment. The extent of such review
by Engineer will be limited as provided in Paragraph A1.07.A.11.
Amendment No. 1 to Owner-Engineer Agreement
Page 5
17. Substantial Completion: Promptly after notice from Contractor that Contractor considers the
entire Work ready for its intended use, in company with Owner and Contractor, visit the
Project to determine if the Work is substantially complete. If after considering any objections
of Owner, Engineer considers the Work substantially complete, Engineer shall deliver a
certificate of Substantial Completion to Owner and Contractor.
18. Additional Tasks: Perform or provide the following additional Construction Phase tasks or
deliverables:
a. The visits described in Article A.1.07.A.7.a are anticipated to occur monthly, or more
frequently.
b. The Engineer shall document visits to the project site in writing on standard inspection
report forms with copies furnished to the Owner and Contractor.
c. Upon Substantial Completion, the Engineer shall provide a copy of the Certificate of
Substantial Completion to the Owner.
d. Attend city meetings, as needed, to provide a project completion, present applications
for payment, recommend the approval of change orders, and discuss other pertinent
matters.
19. Final Notice of Acceptability of the Work: Conduct a final visit to the Project to determine
if the completed Work of Contractor is such that Engineer may recommend, in writing, final
payment to Contractor. Accompanying the recommendation for final payment, Engineer
shall also provide a notice in the form attached hereto as Exhibit E (the “Notice of
Acceptability of Work”) that the Work is acceptable (subject to the provisions of Paragraph
A1.07.A.15.b) to the best of Engineer’s knowledge, information, and belief and based on the
extent of the services provided by Engineer under this Agreement.
B. Duration of Construction Phase: The Construction Phase will commence with the execution of
the first Construction Contract for the Project or any part thereof and will terminate upon written
recommendation by Engineer for final payment to Contractor. Subject to the provisions of Article
3, Engineer shall be entitled to an equitable increase in compensation if Construction Phase
services (including Resident Project Representative services, if any) are required after the original
date for completion and readiness for final payment of Contractor as set forth in the Construction
Contract.
C. Limitation of Responsibilities: Engineer shall not be responsible for the acts or omissions of any
Contractor, Subcontractor or Supplier, or other individuals or entities performing or furnishing
any of the Work, for safety or security at the Site, or for safety precautions and programs incident
to Contractor's Work, during the Construction Phase or otherwise. Engineer shall not be
responsible for the failure of any Contractor to perform or furnish the Work in accordance with
the Contract Documents.
A1.08 Post-Construction Phase
A. Upon successful completion of the Construction Phase, and upon written authorization from
Owner, Engineer shall:
Amendment No. 1 to Owner-Engineer Agreement
Page 6
1. Together with Owner, visit the Project to observe any apparent defects in the Work, assist
Owner in consultations and discussions with Contractor concerning correction of any such
defects, and make recommendations as to replacement or correction of defective Work, if
any.
2. Together with Owner or Owner’s representative, visit the Project within one month before
the end of the correction period to ascertain whether any portion of the Work is subject to
correction.
3. Perform or provide the following additional Post-Construction Phase tasks or deliverables:
a. Prepare an Operations and Maintenance Manual for use by Owner (2 hard copies plus
one electronic copy).
b. The Engineer shall prepare Record Drawings showing appropriate record information
based on Project annotated record documents received from the Contractor, and
furnishing such Record Documents to Owner as one (1) electronic PDF document.
B. The Post-Construction Phase services may commence during the Construction Phase and, if not
otherwise modified in this Exhibit A, will terminate twelve months after the commencement of
the Construction Contract’s correction period.
Well 12
A1.09 Well Pump Sizing and Procurement Phase
A. Upon successful completion of the well test pumping and written authorization form Owner,
Engineer shall:
1. Review well test pumping data and size the production well pump and establish design
operating conditions.
2. Prepare technical specifications for well pumping equipment (Work). If appropriate,
Specifications shall conform to the 50-division format of the Construction Specifications
Institute.
3. Prepare and furnish Bidding/Quoting Documents for review by Owner, its legal counsel, and
other advisors, and assist Owner in the preparation of other related documents. Owner shall
submit to Engineer any comments and, subject to the provisions of 6.01G.
4. Revise the Bidding/Quoting Documents in accordance with comments and instructions from
the Owner, as appropriate, and submit final electronic PDF copies of Bidding Documents, a
revise opinion of probably Construction Cost, and any other deliverables to Owner.
5. Assist Owner in advertising for and obtaining bids for proposals for the Work and, where
applicable, maintain a record of prospective bidders to whole Bidding/Quoting Documents
have been issued and received
6. Issue Addenda as appropriate to clarify, correct, or change the Bidding/Quoting Documents.
Amendment No. 1 to Owner-Engineer Agreement
Page 7
7. Provide information or assistance needed by Owner in the course of any negotiations with
prospective contractors.
8. Consult with Owner as to the acceptability of subcontractors, suppliers, and other individuals
and entities proposed by prospective contractors for those portions of the Work as to which
such acceptability is required by the Bidding/Quoting Documents.
A1.10 Construction Phase
A. Upon successful completion of the Well Design and Coordination Phase, and upon written
authorization from Owner, Engineer shall:
1. General Administration of Construction Contract: Consult with Owner and act as Owner’s
representative as provided in the Construction Contract. The extent and limitations of the
duties, responsibilities, and authority of Engineer as assigned in the Construction Contract
shall not be modified, except as Engineer may otherwise agree in writing. All of Owner’s
instructions to Contractor will be issued through Engineer, which shall have authority to act
on behalf of Owner in dealings with Contractor to the extent provided in this Agreement and
the Construction Contract except as otherwise provided in writing.
2. Resident Project Representative (RPR): Provide the services of an RPR at the Site to assist
the Engineer and to provide more extensive observation of Contractor’s work. Duties,
responsibilities, and authority of the RPR are as set forth in Exhibit D. The furnishing of
such RPR’s services will not limit, extend, or modify Engineer’s responsibilities or authority
except as expressly set forth in this Agreement.
3. Pre-Construction Conference: Participate in and host a Pre-Construction Conference prior
to commencement of Work at the Site.
4. Schedules: Receive, review, and determine the acceptability of any and all schedules that
Contractor is required to submit to Engineer, including the Progress Schedule, Schedule of
Submittals, and Schedule of Values.
5. Visits to Site and Observation of Construction: In connection with observations of
Contractor’s Work while it is in progress:
a. Make visits to the Site at intervals appropriate to the various stages of construction, as
Engineer deems necessary, to observe as an experienced and qualified design
professional the progress of Contractor’s executed Work. Such visits and observations
by Engineer, and the Resident Project Representative, if any, are not intended to be
exhaustive or to extend to every aspect of Contractor’s Work in progress or to involve
detailed inspections of Contractor’s Work in progress beyond the responsibilities
specifically assigned to Engineer in this Agreement and the Contract Documents, but
rather are to be limited to spot checking, selective sampling, and similar methods of
general observation of the Work based on Engineer’s exercise of professional judgment,
as assisted by the Resident Project Representative, if any. Based on information obtained
during such visits and observations, Engineer will determine in general if the Work is
proceeding in accordance with the Contract Documents, and Engineer shall keep Owner
informed of the progress of the Work.
Amendment No. 1 to Owner-Engineer Agreement
Page 8
b. The purpose of Engineer’s visits to, and representation by the Resident Project
Representative, if any, at the Site, will be to enable Engineer to better carry out the duties
and responsibilities assigned to and undertaken by Engineer during the Construction
Phase, and, in addition, by the exercise of Engineer’s efforts as an experienced and
qualified design professional, to provide for Owner a greater degree of confidence that
the completed Work will conform in general to the Contract Documents and that
Contractor has implemented and maintained the integrity of the design concept of the
completed Project as a functioning whole as indicated in the Contract Documents.
Engineer shall not, during such visits or as a result of such observations of Contractor’s
Work in progress, supervise, direct, or have control over Contractor’s Work, nor shall
Engineer have authority over or responsibility for the means, methods, techniques,
sequences, or procedures of construction selected or used by Contractor, for security or
safety at the Site, for safety precautions and programs incident to Contractor’s Work, nor
for any failure of Contractor to comply with Laws and Regulations applicable to
Contractor’s furnishing and performing the Work. Accordingly, Engineer neither
guarantees the performance of any Contractor nor assumes responsibility for any
Contractor’s failure to furnish or perform the Work in accordance with the Contract
Documents.
6. Defective Work: Recommend to Owner rejection of Work if, on the basis of Engineer’s
observations, Engineer believes that such Work (a) is defective under the standards set forth
in the Contract Documents, (b) will not produce a completed Project that conforms to the
Contract Documents, or (c) will imperil the integrity of the design concept of the completed
Project as a functioning whole as indicated by the Contract Documents.
7. Clarifications and Interpretations; Field Orders: Issue necessary clarifications and
interpretations of the Contract Documents as appropriate to the orderly completion of
Contractor’s work. Such clarifications and interpretations will be consistent with the intent
of and reasonably inferable from the Contract Documents. Subject to any limitations in the
Contract Documents, Engineer may issue field orders authorizing minor variations in the
Work from the requirements of the Contract Documents.
8. Change Orders and Work Change Directives: Recommend change orders and work change
directives to Owner, as appropriate, and prepare change orders and work change directives
as required.
9. Shop Drawings and Samples: Review and approve or take other appropriate action in respect
to Shop Drawings and Samples and other data which Contractor is required to submit, but
only for conformance with the information given in the Contract Documents and
compatibility with the design concept of the completed Project as a functioning whole as
indicated by the Contract Documents. Such reviews and approvals or other action will not
extend to means, methods, techniques, sequences, or procedures of construction or to safety
precautions and programs incident thereto. Engineer shall meet any Contractor’s submittal
schedule that Engineer has accepted.
10. Substitutes and “or-equal”: Evaluate and determine the acceptability of substitute or “or-
equal” materials and equipment proposed by Contractor, but subject to the provisions of the
Contract Documents.
11. Inspections and Tests: Require such special inspections or tests of Contractor’s work as
deemed reasonably necessary, and receive and review all certificates of inspections, tests,
Amendment No. 1 to Owner-Engineer Agreement
Page 9
and approvals required by Laws and Regulations or the Contract Documents. Engineer’s
review of such certificates will be for the purpose of determining that the results certified
indicate compliance with the Contract Documents and will not constitute an independent
evaluation that the content or procedures of such inspections, tests, or approvals comply with
the requirements of the Contract Documents. Engineer shall be entitled to rely on the results
of such tests.
12. Disagreements between Owner and Contractor: Render formal written decisions on all duly
submitted issues relating to the acceptability of Contractor’s work or the interpretation of the
requirements of the Contract Documents pertaining to the execution, performance, or
progress of Contractor’s Work; review each duly submitted Claim by Owner or Contractor,
and in writing either deny such Claim in whole or in part, approve such Claim, or decline to
resolve such Claim if Engineer in its discretion concludes that to do so would be
inappropriate. In rendering such decisions, Engineer shall be fair and not show partiality to
Owner or Contractor and shall not be liable in connection with any decision rendered in good
faith in such capacity.
13. Applications for Payment: Based on Engineer’s observations as an experienced and qualified
design professional and on review of Applications for Payment and accompanying
supporting documentation:
a. Determine the amounts that Engineer recommends Contractor be paid. Such
recommendations of payment will be in writing and will constitute Engineer’s
representation to Owner, based on such observations and review, that, to the best of
Engineer’s knowledge, information and belief, Contractor’s Work has progressed to the
point indicated, the Work is generally in accordance with the Contract Documents
(subject to an evaluation of the Work as a functioning whole prior to or upon Substantial
Completion, to the results of any subsequent tests called for in the Contract Documents,
and to any other qualifications stated in the recommendation), and the conditions
precedent to Contractor’s being entitled to such payment appear to have been fulfilled in
so far as it is Engineer’s responsibility to observe Contractor’s Work. In the case of unit
price work, Engineer’s recommendations of payment will include final determinations
of quantities and classifications of Contractor’s Work (subject to any subsequent
adjustments allowed by the Contract Documents).
b. By recommending any payment, Engineer shall not thereby be deemed to have
represented that observations made by Engineer to check the quality or quantity of
Contractor’s Work as it is performed and furnished have been exhaustive, extended to
every aspect of Contractor’s Work in progress, or involved detailed inspections of the
Work beyond the responsibilities specifically assigned to Engineer in this Agreement
and the Contract Documents. Neither Engineer’s review of Contractor’s Work for the
purposes of recommending payments nor Engineer’s recommendation of any payment
including final payment will impose on Engineer responsibility to supervise, direct, or
control Contractor’s Work in progress or for the means, methods, techniques, sequences,
or procedures of construction or safety precautions or programs incident thereto, or
Contractor’s compliance with Laws and Regulations applicable to Contractor’s
furnishing and performing the Work. It will also not impose responsibility on Engineer
to make any examination to ascertain how or for what purposes Contractor has used the
moneys paid on account of the Contract Price, or to determine that title to any portion of
the Work in progress, materials, or equipment has passed to Owner free and clear of any
Amendment No. 1 to Owner-Engineer Agreement
Page 10
liens, claims, security interests, or encumbrances, or that there may not be other matters
at issue between Owner and Contractor that might affect the amount that should be paid.
14. Contractor’s Completion Documents: Receive, review, and transmit to Owner maintenance
and operating instructions, schedules, guarantees, bonds, certificates or other evidence of
insurance required by the Contract Documents, certificates of inspection, tests and approvals,
Shop Drawings, Samples and other data approved as provided under Paragraph A1.10.A.11,
and transmit the annotated record documents which are to be assembled by Contractor in
accordance with the Contract Documents to obtain final payment. The extent of such review
by Engineer will be limited as provided in Paragraph A1.10.A.11.
15. Substantial Completion: Promptly after notice from Contractor that Contractor considers the
entire Work ready for its intended use, in company with Owner and Contractor, visit the
Project to determine if the Work is substantially complete. If after considering any objections
of Owner, Engineer considers the Work substantially complete, Engineer shall deliver a
certificate of Substantial Completion to Owner and Contractor.
16. Additional Tasks: Perform or provide the following additional Construction Phase tasks or
deliverables:
a. The visits described in Article A1.10.A.5.a are anticipated to occur monthly, or more
frequently in order to observe well drilling, testing, alignment, well video review, test
pumping, pump installation, startup and commissioning, and substantial/final completion
inspections.
b. Review testing and capacity test data and document results in a technical memorandum.
c. Upon Substantial Completion, the Engineer shall provide a copy of the Certificate of
Substantial Completion to the Owner.
d. Attend city meetings, as needed, to provide a project completion, present applications
for payment, recommend the approval of change orders, and discuss other pertinent
matters.
17. Final Notice of Acceptability of the Work: Conduct a final visit to the Project to determine
if the completed Work of Contractor is such that Engineer may recommend, in writing, final
payment to Contractor. Accompanying the recommendation for final payment, Engineer
shall also provide a notice in the form attached hereto as Exhibit E (the “Notice of
Acceptability of Work”) that the Work is acceptable to the best of Engineer’s knowledge,
information, and belief and based on the extent of the services provided by Engineer under
this Agreement.
B. Duration of Construction Phase: The Construction Phase will commence with the execution of
the first Construction Contract for the Project or any part thereof and will terminate upon written
recommendation by Engineer for final payment to Contractor. Subject to the provisions of Article
3, Engineer shall be entitled to an equitable increase in compensation if Construction Phase
services (including Resident Project Representative services, if any) are required after the original
date for completion and readiness for final payment of Contractor as set forth in the Construction
Contract.
Amendment No. 1 to Owner-Engineer Agreement
Page 11
C. Limitation of Responsibilities: Engineer shall not be responsible for the acts or omissions of any
Contractor, Subcontractor or Supplier, or other individuals or entities performing or furnishing
any of the Work, for safety or security at the Site, or for safety precautions and programs incident
to Contractor's Work, during the Construction Phase or otherwise. Engineer shall not be
responsible for the failure of any Contractor to perform or furnish the Work in accordance with
the Contract Documents.
I&C Programming Services
A1.10 I&C Programming Services
A. Upon successful completion of the Bidding and Negotiating Phase, and upon written
authorization from Owner, Engineer shall:
1. Cell modem procurement and installation.
2. Project controls planning and coordination items.
3. Preliminary configuration and commissioning of the following equipment:
a. Control panel components including programmable logic controller (PLC), operator
interface terminal (OIT), network switch, and network access point.
b. Instrumentation including flowmeters, radar level transmitters, temperature transmitters,
pressure transmitters, and analytical equipment.
c. Variable frequency drives and motor starters.
d. Chemical feed pumps and associated equipment.
e. Filters valves.
4. PLC programming associated with local water treatment controls within Wellhouse 3.
5. PLC programming associated with telemetry communications (within Water Tower 2 PLC).
6. PLC programming associated with SCADA graphics and alarming (within West WWTF
PLC).
7. OIT programming associated with the operator interface located within the new Wellhouse
3 control panel to include local monitoring and controls adjustments.
8. OIT programming associated with the operator interface located within existing Wellhouse
3.
9. SCADA programming within West WWTF SCADA system (system monitoring, alarms
management, pumps and filters controls, chemical feed controls, reclaim controls, etc).
10. Programming associated with integration of Wells 4, 5, and 11 with Wellhouse 3 controls.
11. Configure alarming within Win-911 alarm notification software.
Amendment No. 1 to Owner-Engineer Agreement
Page 12
12. Wellhouse 3 water treatment controls startup and commissioning.
13. Operator training.
14. Wellhouse 3 control panel schematics modifications.
15. Provide OWNER with PLC programs and documentation.
Limited Equipment Warranty
ENGINEER MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO
ANY PRODUCTS MANUFACTURED BY A THIRD PARTY, INCLUDING ANY (A)
WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A
PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY;
WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF
PERFORMANCE, USAGE OF TRADE OR OTHERWISE. ENGINEER’S SOLE
RESPONSIBILITY TO OWNER WITH RESPECT TO ANY EQUIPMENT OR
COMPONENTS AND PARTS MANUFACTURED BY A THIRD PARTY AND
INCORPORATED INTO THE EQUIPMENT SHALL BE TO PASS THROUGH TO THE
OWNER SUCH ORIGINAL EQUIPMENT MANUFACTURER'S AVAILABLE PRODUCT
WARRANTY. THE REMEDIES SET FORTH IN THE MANUFACTURER’S TERMS
SHALL BE THE OWNER’S SOLE AND EXCLUSIVE REMEDY AND ENGINEER’S
ENTIRE LIABILITY FOR ANY BREACH OF THIS LIMITED WARRANTY.
Communications Phase Services
A1.11 Communications Phase
A. Engineer shall:
1. Develop project website to highlight overall drinking water quality goals, efforts, and
community impact. This initial setup to include the following projects: WH4 Water
Treatment, WH3 Water Treatment, Hydrogeologic Evaluation, and South-Central Water
Treatment.
2. Website design will be aligned with City of Otsego brand guidelines for a cohesive look to
city materials, and will include interactive elements, backlinks to city website for related
additional information, timeline(s) if applicable, and mapping GIS mapping.
3. Engineer will conduct initial drone video/photo documentation of specified sites for inclusion
in the project website launch.
4. Coordinate with Owner staff to review and finalize content.
· Exhibit D is hereby incorporated and is attached as Attachment 1.
· Exhibit E is hereby incorporated and is attached as Attachment 2.
Amendment No. 1 to Owner-Engineer Agreement
Page 13
B. For the Additional Services set forth above, Owner shall pay Engineer the following additional
compensation:
Water Treatment Plant
Construction Administration $ 481,600.00
Construction Observation/RPR $ 555,600.00
Post-Construction Services $ 56,800.00
Well 12
Well 12 Pump Sizing & Procurement $ 25,400.00
Well 12 Construction Services $ 40,900.00
I&C Phase Services
I&C Programming $ 273,400.00
Communications Phase Services
Communications Services $ 12,000.00
C2.02 Compensation for Resident Project Representative Basic Services – Hourly Method of
Payment
A. Owner shall pay Engineer for Resident Project Representative Basic Services as
follows:
1. Resident Project Representative Services: For services of Engineer’s Resident
Project Representative, the Hourly amount indicated in this Amendment for RPR.
The amount includes compensation for the Resident Project Representative’s
services. Appropriate amounts have been incorporated in the amount to account for
labor costs, overhead, profit, and expenses related to the Resident Project
Representative’s Services.
2. Reimbursable Expenses: In addition to the amount, Engineer is also entitled to
reimbursement from Owner for the following RPR Reimbursable Expenses: included
in the RPR estimate.
3. Resident Project Representative Schedule: The hourly amount set forth in this
Amendment is based on part-time RPR services on a 40-hour workweek Monday
through Friday providing part-time RPR over 22 months of active construction to the
substantial completion date of March 31, 2028. Due to the nature of the project,
supplemental RPR will be provided during critical project timeframes (i.e. below
grade installations, large concrete pours, technical installation, etc.). Modifications to
the schedule shall entitle Engineer to an equitable adjustment of compensation for
RPR services.
C. Change in time for services (days or date, as applicable):
· Conclusion of the Warranty Period, which is anticipated to be May 31, 2029.
Amendment No. 1 to Owner-Engineer Agreement
Page 14
Agreement Summary:
Original agreement amount: $ 786,100.00
Net change for prior amendments: $ 0.00
This amendment amount: $ 1,445,700.00
Adjusted Agreement amount: $ 2,231,800.00
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.
OWNER: ENGINEER:
By:
By:
Print
name:
Print
name:
Grant Meyer
Title:
Title:
Chief Executive Officer
Date Signed:
Date Signed:
Exhibit D - Resident Project Representative
Page 1
This is EXHIBIT D, consisting of 5 pages, referred to in and part
of the Agreement between Owner and Engineer for
Professional Services dated May 26, 2026.
Duties, Responsibilities, and Limitations of Authority of Resident Project Representative
Article 1 of the Agreement is supplemented to include the following agreement of the parties:
ARTICLE 1 - SERVICES OF ENGINEER
D1.01 Resident Project Representative
A. Engineer shall furnish a Resident Project Representative (“RPR”) to assist Engineer in observing
progress and quality of the Work. The RPR may provide full time representation or may provide
representation to a lesser degree. RPR is Engineer’s representative at the Site, will act as directed by and
under the supervision of Engineer, and will confer with Engineer regarding RPR’s actions.
B. Through RPR's observations of the Work, including field checks of materials and installed equipment,
Engineer shall endeavor to provide further protection for Owner against defects and deficiencies in the
Work. However, Engineer shall not, as a result of such RPR observations of the Work, supervise, direct,
or have control over the Work, nor shall Engineer (including the RPR) have authority over or
responsibility for the means, methods, techniques, sequences, or procedures of construction selected or
used by any Constructor, for security or safety at the Site, for safety precautions and programs incident
to the Work or any Constructor’s work in progress, for the coordination of the Constructors’ work or
schedules, or for any failure of any Constructor to comply with Laws and Regulations applicable to the
performing and furnishing of its work. The Engineer (including RPR) neither guarantees the
performances of any Constructor nor assumes responsibility for any Constructor’s failure to furnish and
perform the Work, or any portion of the Work, in accordance with the Construction Contract Documents.
In addition, the specific terms set forth in this Amendment are applicable.
C. The duties and responsibilities of the RPR are as follows:
1. General: RPR’s dealings in matters pertaining to the Work in general shall be with Engineer and
Contractor. RPR’s dealings with Subcontractors shall only be through or with the full knowledge
and approval of Contractor. RPR shall generally communicate with Owner only with the knowledge
of and under the direction of Engineer.
2. Schedules: Review the progress schedule, schedule of Shop Drawing and Sample submittals,
schedule of values, and other schedules prepared by Contractor and consult with Engineer
concerning acceptability of such schedules.
3. Conferences and Meetings: Attend meetings with Contractor, such as preconstruction conferences,
progress meetings, job conferences, and other Project-related meetings (but not including
Contractor’s safety meetings), and as appropriate prepare and circulate copies of minutes thereof.
4. Safety Compliance: Comply with Site safety programs, as they apply to RPR, and if required to do
so by such safety programs, receive safety training specifically related to RPR’s own personal safety
while at the Site.
Exhibit D - Resident Project Representative
Page 2
5. Liaison:
a. Serve as Engineer’s liaison with Contractor. Working principally through Contractor’s
authorized representative or designee, assist in providing information regarding the provisions
and intent of the Construction Contract Documents.
b. Assist Engineer in serving as Owner’s liaison with Contractor when Contractor’s operations
affect Owner’s on-Site operations.
c. Assist in obtaining from Owner additional details or information, when required for proper
execution of the Work.
6. Clarifications and Interpretations: Receive from Contractor submittal of any matters in question
concerning the requirements of the Construction Contract Documents (sometimes referred to as
requests for information or interpretation—RFIs), or relating to the acceptability of the Work under
the Construction Contract Documents. Report to Engineer regarding such RFIs. Report to Engineer
when clarifications and interpretations of the Construction Contract Documents are needed, whether
as the result of a Contractor RFI or otherwise. Transmit Engineer’s clarifications, interpretations,
and decisions to Contractor. ,
7. Shop Drawings and Samples:
a. Record date of receipt of Samples and Contractor-approved Shop Drawings.
b. Receive Samples that are furnished at the Site by Contractor, and notify Engineer of
availability of Samples for examination.
c. Advise Engineer and Contractor of the commencement of any portion of the Work requiring a
Shop Drawing or Sample submittal, if RPR believes that the submittal has not been received
from Contractor, or has not been approved by Contractor or Engineer.
8. Proposed Modifications: Consider and evaluate Contractor’s suggestions for modifications to the
Drawings or Specifications, and report such suggestions, together with RPR’s recommendations, if
any, to Engineer. Transmit Engineer’s response (if any) to such suggestions to Contractor.
9. Review of Work; Defective Work:
a. Report to Engineer whenever RPR believes that any part of the Work is defective under the
terms and standards set forth in the Construction Contract Documents, and provide
recommendations as to whether such Work should be corrected, removed and replaced, or
accepted as provided in the Construction Contract Documents.
b. Inform Engineer of any Work that RPR believes is not defective under the terms and standards
set forth in the Construction Contract Documents, but is nonetheless not compatible with the
design concept of the completed Project as a functioning whole, and provide recommendations
to Engineer for addressing such Work; and
c. Advise Engineer of that part of the Work that RPR believes should be uncovered for
observation, or requires special testing, inspection, or approval.
Exhibit D - Resident Project Representative
Page 3
10. Inspections, Tests, and System Start-ups:
a. Consult with Engineer in advance of scheduled inspections, tests, and systems start-ups.
b. Verify that tests, equipment, and systems start-ups and operating and maintenance training are
conducted in the presence of appropriate Owner’s personnel, and that Contractor maintains
adequate records thereof.
c. Observe, record, and report to Engineer appropriate details relative to the test procedures and
systems start-ups.
d. Observe whether Contractor has arranged for inspections required by Laws and Regulations,
including but not limited to those to be performed by public or other agencies having
jurisdiction over the Work.
e. Accompany visiting inspectors representing public or other agencies having jurisdiction over
the Work, record the results of these inspections, and report to Engineer.
11. Records:
a. Maintain at the Site orderly files for correspondence, reports of job conferences, copies of
Construction Contract Documents including all Change Orders, Field Orders, Work Change
Directives, Addenda, additional Drawings issued subsequent to the execution of the
Construction Contract, RFIs, Engineer’s clarifications and interpretations of the Construction
Contract Documents, progress reports, approved Shop Drawing and Sample submittals, and
other Project-related documents.
b. Prepare a daily report or keep a diary or log book, recording Contractor’s hours on the Site,
Subcontractors present at the Site, weather conditions, data relative to questions of Change
Orders, Field Orders, Work Change Directives, or changed conditions, Site visitors, deliveries
of equipment or materials, daily activities, decisions, observations in general, and specific
observations in more detail as in the case of observing test procedures; and send copies to
Engineer.
c. Upon request from Owner to Engineer, photograph or video Work in progress or Site
conditions.
d. Record and maintain accurate, up-to-date lists of the names, addresses, fax numbers, e-mail
addresses, websites, and telephone numbers (including mobile numbers) of all Contractors,
Subcontractors, and major Suppliers of materials and equipment.
e. Maintain records for use in preparing Project documentation.
f. Upon completion of the Work, furnish original set of all RPR Project documentation to
Engineer.
12. Reports:
a. Furnish to Engineer periodic reports as required of progress of the Work and of Contractor’s
compliance with the progress schedule and schedule of Shop Drawing and Sample submittals.
Exhibit D - Resident Project Representative
Page 4
b. Draft and recommend to Engineer proposed Change Orders, Work Change Directives, and
Field Orders. Obtain backup material from Contractor.
c. Furnish to Engineer and Owner copies of all inspection, test, and system start-up reports.
d. Immediately inform Engineer of the occurrence of any Site accidents, emergencies, acts of
God endangering the Work, possible force majeure or delay events, damage to property by fire
or other causes, or the discovery of any potential differing site condition or Constituent of
Concern.
13. Payment Requests: Review applications for payment with Contractor for compliance with the
established procedure for their submission and forward with recommendations to Engineer, noting
particularly the relationship of the payment requested to the schedule of values, Work completed,
and materials and equipment delivered at the Site but not incorporated in the Work.
14. Certificates, Operation and Maintenance Manuals: During the course of the Work, verify that
materials and equipment certificates, operation and maintenance manuals and other data required
by the Contract Documents to be assembled and furnished by Contractor are applicable to the items
actually installed and in accordance with the Contract Documents, and have these documents
delivered to Engineer for review and forwarding to Owner prior to payment for that part of the
Work.
15. Completion:
a. Participate in Engineer’s visits to the Site regarding Substantial Completion, assist in the
determination of Substantial Completion, and prior to the issuance of a Certificate of
Substantial Completion submit a punch list of observed items requiring completion or
correction.
b. Participate in Engineer’s visit to the Site in the company of Owner and Contractor, to determine
completion of the Work, and prepare a final punch list of items to be completed or corrected
by Contractor.
c. Observe whether all items on the final punch list have been completed or corrected, and make
recommendations to Engineer concerning acceptance and issuance of the Notice of
Acceptability of the Work (Exhibit E).
D. Resident Project Representative shall not:
1. Authorize any deviation from the Construction Contract Documents or substitution of materials or
equipment (including “or-equal” items).
2. Exceed limitations of Engineer’s authority as set forth in this Agreement.
3. Undertake any of the responsibilities of Contractor, Subcontractors, or Suppliers, or any
Constructor.
4. Advise on, issue directions relative to, or assume control over any aspect of the means, methods,
techniques, sequences or procedures of the Work, by Contractor or any other Constructor.
Exhibit D - Resident Project Representative
Page 5
5. Advise on, issue directions regarding, or assume control over security or safety practices,
precautions, and programs in connection with the activities or operations of Owner or Contractor.
6. Participate in specialized field or laboratory tests or inspections conducted off-site by others except
as specifically authorized by Engineer.
7. Accept Shop Drawing or Sample submittals from anyone other than Contractor.
8. Authorize Owner to occupy the Project in whole or in part.
Exhibit E – Notice of Acceptability of Work
Page 1
This is EXHIBIT E, consisting of 2 pages, referred to in and part
of the Agreement between Owner and Engineer for
Professional Services dated May 26, 2026.
NOTICE OF ACCEPTABILITY OF WORK
PROJECT:
OWNER:
CONTRACTOR:
OWNER’S CONSTRUCTION CONTRACT IDENTIFICATION:
EFFECTIVE DATE OF THE CONSTRUCTION CONTRACT:
ENGINEER:
NOTICE DATE:
To:
Owner
And To:
Contractor
From:
Engineer
The Engineer hereby gives notice to the above Owner and Contractor that Engineer has recommended final payment
of Contractor, and that the Work furnished and performed by Contractor under the above Construction Contract is
acceptable, expressly subject to the provisions of the related Contract Documents, the Agreement between Owner and
Engineer for Professional Services dated ______, and the following terms and conditions of this Notice:
CONDITIONS OF NOTICE OF ACCEPTABILITY OF WORK
The Notice of Acceptability of Work (“Notice”) is expressly made subject to the following terms and
conditions to which all those who receive said Notice and rely thereon agree:
1. This Notice is given with the skill and care ordinarily used by members of the engineering
profession practicing under similar conditions at the same time and in the same locality.
2. This Notice reflects and is an expression of the Engineer’s professional opinion.
3. This Notice is given as to the best of Engineer’s knowledge, information, and belief as of the Notice
Date.
4. This Notice is based entirely on and expressly limited by the scope of services Engineer has been
employed by Owner to perform or furnish during construction of the Project (including observation
Exhibit E – Notice of Acceptability of Work
Page 2
of the Contractor’s work) under Engineer’s Agreement with Owner, and applies only to facts that
are within Engineer’s knowledge or could reasonably have been ascertained by Engineer as a result
of carrying out the responsibilities specifically assigned to Engineer under such Agreement.
5. This Notice is not a guarantee or warranty of Contractor’s performance under the Construction
Contract, an acceptance of Work that is not in accordance with the related Contract Documents,
including but not limited to defective Work discovered after final inspection, nor an assumption of
responsibility for any failure of Contractor to furnish and perform the Work thereunder in
accordance with the Construction Contract Documents, or to otherwise comply with the
Construction Contract Documents or the terms of any special guarantees specified therein.
6. This Notice does not relieve Contractor of any surviving obligations under the Construction
Contract, and is subject to Owner’s reservations of rights with respect to completion and final
payment.
By:
Title:
Dated:
2026 Hourly Fee and Expense Schedule
Page 1
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
2026 Hourly Fee and Expense Schedule
Page 2
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.
Otsego PWSC Meeting May 261Wellhouse 3 WTP –Project Award &AE2S AmendmentPresented by: Advanced Engineering and Environmental Services, LLC (AE2S)May 26, 2026Summary of Topics•Project Scope/Design•Bidding Costs•AE2S Amendment•Project Cost Summary•Funding•Timeline/Schedule12
Otsego PWSC Meeting May 262Project Scope ·Wellhouse No. 3 WTP: New WTP buildingMedia filtration and chemical additionBackwash recovery systemHVAC, mechanical, electrical system and standby generator Wellhouse 3 modifications·Well 12: Drilling, development, test pumping, and installing pumping equipment·Transmission Main:Raw WM between WH3 and WTPFinished WM between WTP and LabeauxProject Design WTP34
Otsego PWSC Meeting May 263Bidding Costs $ 11,107,931Total Low Apparent Bidders:(Rice Lake Construction Base Bid + Kurita America Inc.)•Pressure Vessel Procurement•Two (2) Bids received•Low Apparent Bid - $1,913,331 (Kurita) •Engineer’s Estimate = $2,000,000•Water Treatment Plant•Five (5) Bids received•Low Apparent Bid - $9,194,600 (Rice Lake Construction)•Engineer’s Estimate = $11,910,000AE2S – Construction Services AmendmentWell 12FeePhase$ 25,400Phase 051: Well 12 Equipment Quote Package Development$ 40,900Phase 062: Well 12 Drilling and Equipment Installation – Construction Services$ 66,300Total Construction Phase Services Amendment – Well 12Water Treatment Plant$ 1,094,000Construction Services - Phase$ 481,600Phase 060: Construction Administration –WTP & Filter Procurement$ 555,600Phase 061: Construction Observation – WTP & Filter Procurement$ 56,800Phase 070: Post-Construction$ 273,400I&C Programming - Phase$ 273,400Phase 080: Instrumentation and Controls (I&C)$ 1,367,400Total Construction Phase Services Amendment – WTPAdditional Marketing ServicesFeePhase$ 12,000Phase 130: Marketing and Communications Marketing$ 1,445,700Total for AE2S Services - Amendment 1 56
Otsego PWSC Meeting May 264Marketing ServicesWTP Total Project Cost Summary$ 11,663,328WTP Construction Total$ 11,107,931Low Apparent Bidders:(Rice Lake Construction Base Bid + Kurita America Inc.)$ 555,397Construction Change Orders Contingency (5%)$ 2,283,218Soft Costs (Planning/Design Costs)$ 1,818,300AE2S Engineering Design/Bidding & Construction Services Costs$ 273,400Programming and I&C$ 10,000HAA (surveying, staking, and as-builts)$ 32,850Geotech Investigation$ 63,668Special Inspections$ 30,000Security and IT Equipment$ 20,000Site Seeding and Landscaping$ 35,000Other – (misc/legal/admin – 0.25% of Project Cost)$ 13,946,546Total Project CostCIP Amount: $15,936,10078
Otsego PWSC Meeting May 265Project Funding•FundingCongressionally Directed Spending: $1.5MEmerging Contaminants Grant: up to half of the non-EPA amount•Estimated at $5MBalance: SRF Loan •WILLcover: WTP, WH3 upgrades, transmission main•WILL NOT cover: Well 12Project SchedulesEstimated Completion DateProject Task / PhaseWTPMay 26, 2026Project Award – City CouncilJune 2026 – March 2028WTP ConstructionWell 12June 2026 – September 2026Well 12 Drilling & Test PumpingSummer 2027Well 12 Quote Package DevelopmentFall 2027Well 12 Pump InstallationTransmission Main (by Hakanson Anderson)Fall/Winter 2026Project Advertisement/BiddingSummer 2027Transmission Main Construction 910
Otsego PWSC Meeting May 266QUESTIONS?Otsego Wellhouse 3 WTP11