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Item 3.8 Wellhouse No 4 Water Treatment Plant Amendment No 3 to Engineering Agreement Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier August 24, 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent AE2S Engineer Hanson City Administrator/Finance Director Flaherty 3.8 – 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 through the contractual substantial completion date. AE2S was scoped to provide construction support services through Construction Contract's substantial completion date. The Contractor was unable to meet the Contract's substantial completion date and did not achieve substantial completion until 78 days later. As a result, AE2S continued providing construction administration, Resident Project Representative (RPR), and associated support services during this period, which was beyond the services included in the original scope. AE2S is requesting an amendment to the Owner-Engineer Agreement to compensate for the additional construction administration and RPR services provided during the 78-day period between the contractual substantial completion date and actual substantial completion date. The requested amendment totals $44,900. Approval of this amendment will increase the total not-to-exceed amount of the professional services agreement with AE2S to $1,211,150. The proposal was presented to the Public Works Subcommittee on August 19, 2026. City staff have reviewed the amendment request and find it reasonable and consistent with the project’s needs. The City Attorney is currently reviewing the proposed amendment language, with no expectations for comments. Staff recommend approval of the amendment to allow AE2S to continue providing construction support services through project final completion. SUPPORTING DOCUMENTS ATTACHED: • Amendment No. 3 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. 3” – a professional services contract amendment in the amount of $44,900 with Advanced Engineering and Environmental Services, LLC. BUDGET INFORMATION FUNDING: BUDGETED: Fund 601 – Drinking Water Utility Yes Amendment No. 3 Page 1 AE2S PROJECT NO.: P05409-2020-010 AMENDMENT TO OWNER-ENGINEER AGREEMENT Amendment No. 3 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 construction administration and RPR services associated with a 78-day construction schedule extension. b. For the modifications of services set forth above, Owner shall pay Engineer the following additional compensation on an hourly basis, not to exceed $44,900.00 without written authorization from the Owner. c. The schedule for rendering services under this Amendment is modified as follows: • 78-day extension from the substantial completion date established in previous amendments. Agreement Summary: Original agreement amount: $ 390,200.00 Net change for prior amendments: $ 776,050.00 This amendment amount: $ 44,900.00 Adjusted Agreement amount: $ 1,211,150.00 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. 3 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. 3 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.