SCC Item 1. South Central Water Treatment Plant Project UpdatesOtsego Council Work Session Meeting July 26
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South Central Water Treatment
GMP Award &
AE2S Amendment
Presented by: Advanced Engineering and Environmental Services, LLC (AE2S)
July 2026
Summary of Topics
•System Wide Treatment Review
•Project Scope
•Site Plan Review
•CMAR Process Review
•CMAR Guaranteed Maximum Price (GMP)
•AE2S Amendment
•Project Cost Summary
•Timeline/Schedule
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SCC Item 1.
Otsego Council Work Session Meeting July 26
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Systemwide Treatment Planning
Long-Term Systemwide Map
Locations for future treatment at Wellhouse 1,
Wellhouse 2, and NCWT not yet determined
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Otsego Council Work Session Meeting July 26
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SCWT Project Scope
FACILITY TREATMENT STORAGE DISTRIBUTION SITE & SYSTEMSRECLAMATION
•Treatment area
•Administrative space
•Maintenancegarage
New 2,700 gpm groundwater treatment facility with expansion capacity to 4,500 gpm
•Four (4) operational
filters
•Infrastructurefor two
(2) additionalfilters
•Chemical feed systems
•750,000 gallon finished
ground storage
reservoir (clearwell)
•High services pumps
and wetwell
•Bulkwater fillstation
•Water Tower 4 control
vault
•Backwash holding
tanks and recovery /
reclamation systems
•Site utilities, stormwater
management, lift station,
roads, and site restoration
•HVAC, mechanical, electrical
systems, instrumentation,
and backup generator
DISTRIBUTION
Process Flow Diagram
FILTERS (4)HMOFLUORIDECORROSION INHIBITORBACKWASH
RECLAIM TANKS CHLORINECHLORINECHLORINECLEARWELL
EXPANSION
CLEARWELL AND HIGH
SERVICE PUMPING
OTSEGO SOUTH CENTRAL WATER TREATMENT PROCESS
WATER
SUPPLY WELLS
CLEAN, SAFE WATER FOR OUR COMMUNITY
PROCESSES WITHIN TREATMENT BUILDING
AVAILABLE
CLEARWELL
EXPANSION
PHASE 2
FILTERS (2)
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Otsego Council Work Session Meeting July 26
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Site Plan
McAllister Ave NELandscaping/Screening Plan
PINUS SYLVESTRIS
SCOTCH PINE
(30’-60’ MATURE)
CELTIS OCCIDENTALI
COMMON HACKBERRY
(40’-60’ MATURE)
GLEDITSIA TRIACANTHOS
HONEY LOCUST
(30’-70’ MATURE)
SYRINGA PEKINENSIS 'SUNDAK'
COPPER CURLS PEKING LILAC
(20’-25’ MATURE)
Screening on north side of site covered by
City’s site seeding contractor at end of project
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CMAR Process
Construction Manager at Risk (CMAR)
Rice Lake Construction Group
Phase 1
Pre-Construction
•CMAR collaborates with
Owner and Engineer
•Reviews design and
schedule
•Develops cost model for
estimated costs
•Owners approves GMP
•CMAR proceeds with
construction
•CMAR assumes cost risk
above GMP
Agreement between
Owner and CMAR for
pre-construction services
Phase 2
GMP Development
•CMAR solicits competitive
bids for individual work
packages
•Reviews bids/costs with
Owner and Engineer
•Establishes a Guaranteed
Maximum Price (GMP)
Phase 3
Construction
Agreement amended to
include a Guaranteed
Maximum Price (GMP)
What is a GMP?
Cost of Work
The actual cost to
build the project
Including Owner
allowances, labor,
materials, equipment,
subcontractors,
permits, and
temporary facilities
Construction
Support Costs
Project-specific
management &
support costs
Typ. % of the
Cost of Work
CMAR
Contingency
Controlled by CMAR
Covers construction
means, methods,
and execution risks
% of Support Costs +
Cost of Work
Owner
Contingency
Controlled by City
Covers unforeseen
conditions, scope
changes, and
owner-directed
changes
% of Support Costs
+ Cost of Work
CMAR Fee
CMAR’s overhead
and profit
Covers business
expenses,
management, and
earnings for taking
on the project
Fixed % applied to
everything
Guaranteed Maximum Price (GMP):
•The maximum amount the Owner will pay for the defined scope of work, with
the CMAR responsible for delivering the project within that established cost.
ANY UNUSED CONTINGENCY IS
RETURNED TO THE OWNER AT THE
END OF THE PROJECT
+ CMAR FEE
Guaranteed Maximum Price
Negotiated w/ Owner Reviewedw/ Owner Negotiated w/ Owner Owner Determined
EstablishedDuring
CMAR Award
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Otsego Council Work Session Meeting July 26
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Establishing Cost of Work
CMAR completed a pre-qualification process with prospective bidders
Approved bidders were sent bid package
Bids were received on June 30 and reviewed with AE2S and City on July 6
Items that were further reviewed by CMAR and Engineer
•No bids received for floor hatches
•No bids received for HVAC controls
•Joint Sealant low bidder was over 50%
lower than other bidders
•Alternative manufacturers were
included in bids
•Bidders included a potential deduct for
eliminating waterproofing admin and
garage footings
•Electrical bidders included price for
additional breaker panel required by
utility
GMP Breakdown
South Central Water Treatment Project
GMP Breakdown
CostItem
$ 2,183,704DIV 01 - Construction Support Costs
$ 331,000DIV 01 - Owner DirectedAllowances
$ 26,265,106DIV 02 thru 46 - Cost of Work
$ 863,394CMAR Construction Contingency (3%)
$ 575,596Owner Construction Contingency (2%)
$ 1,595,766CMAR Fee (6%)
$ 31,814,567 Total Guaranteed Maximum Price
July 15, 2026: Reviewed GMP with Public Works Subcommittee
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Otsego Council Work Session Meeting July 26
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AE2S – SCWT Construction Services Amendment
South Central Water Treatment
$ 2,388,800SCWT Construction Services – Phase
$ 1,329,700Phase 060: Construction Administration
$ 942,500Phase 061: Construction Observation
$ 116,600Phase 070: Post-Construction
$ 638,300SCWT I&C Programming -Phase
$ 423,300Phase 080: Instrumentation and Controls (I&C) - SCWT
$ 215,000Phase 081: Telemetry and Existing Sites Controls Modifications
$ 3,027,100Total Engineering Services Amendment 1
South Central Wellfield Phase 1B
•Amendment for future well construction services will be required after completing
design and bidding
•Design and bidding is included in original agreement and is expected to occur in
Spring 2027
SCWT - Total Project Cost Summary
$ 31,862,207CMAR Total
$ 47,640CMAR Design Services
$ 31,814,567Guaranteed Maximum Price (GMP)
$ 5,370,268Soft Costs (Planning/Design Costs)
$ 3,930,700AE2S Engineering Design/Bidding & Construction Services Costs
$ 638,300Programming and I&C
$ 31,650HAA (survey, staking, CMAR process, wetland delineation, as-builts, etc.)
$ 37,618Geotech Investigation
$ 75,000Special Inspections (est.)
$ 60,000 Security and IT Equipment (est.)
$ 50,000Site Seeding and Landscaping (est.)
$ 312,000City Procured I&C Items (est.)
$ 125,000Furnishings (est.)
$ 50,000Utilities (est.)
$ 40,000Building Permit (est.)
$ 20,000Other – (misc/legal/admin) (est.)
$ 37,232,475Total Project Cost
SCWT 2026 CIP Amount: $35.8M
Total Project Cost (2026 and beyond): $ 35,900,202
Expended thru 2025
-$1,332,273
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Additional Cost Considerations
Power and control equipment, & increased generator size for on-site wells
Process piping and instrumentation for on-site wells
Inclusion of Phase 2 filters construction with Phase 1
Modifications to Water Tower 4 entrance drive
Water Tower 4 valve vault for level control
Reduced clearwell size
Schedule
2026 2027 2028 2029
July 27, 2026
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Otsego Council Work Session Meeting July 26
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QUESTIONS?
Otsego South Central Water Treatment
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