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Item 3.8 South Central Water Treatment Project Pay Application 2 Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier November 9, 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent AE2S Engineer Hanson/Julson City Administrator/Finance Director Flaherty 3.8 – Pay Application for South Central Treatment 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 Pay Application #2 to Rice Lake Construction Group. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The amount requested under Pay Application No. 2 is consistent with the project progress completed to date. This pay application includes completed work and stored materials totaling 3.1% of the Guaranteed Maximum Price (GMP). In accordance with Minnesota Statute, the City is withholding 5% retainage on completed work, which currently totals $49,015.12. No contingency funds were utilized during this pay period. The table below summarizes the current status of the CMAR and Owner contingencies. Contingency CMAR Contingency Owner Contingency Original Amount $ 862,604.00 $ 575,069.00 Amount Used to Date $ 0.00 $ 0.00 Amount Remaining $ 862,604.00 $ 575,069.00 Percent of Contingency Used 0.00% 0.00% SUPPORTING DOCUMENTS ATTACHED: • Pay Application #2 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve Pay Application #2 in the amount of $478,378.42 to Rice Lake Construction Group for work completed on the South Central Water Treatment project. BUDGET INFORMATION FUNDING: BUDGETED: Fund 601 – Drinking Water Utility Yes 10/30/2026 Application Date: a. 5% x $980,302.42 Work Completed b. 5% x $0.00 Stored Materials (Date) (Date) (Date) EJCDC No. C-620 (2002 Edition) Prepared by the Engineers' Joint Contract Documents Committee and endorsed by the Associated General Contractors of America and the Construction Specifications Institute. By:Date: Approved by: Funding Agency (if applicable) (Public Works Director) is approved by: Contractor’s Certification The undersigned Contractor certifies that:(1)all previous progress payments received from Owner on account of Work done under the Contract have been applied on account to discharge Contractor's legitimate obligations incurred in connection with Work covered by prior Applications for Payment;(2)title of all Work,materials and equipment incorporated in said Work or otherwise listed in or covered by this Application for Payment will pass to Owner at time of payment free and clear of all Liens,security interests and encumbrances (except such as are covered by a Bond acceptable to Owner indemnifying Owner against any such Liens,security interest or encumbrances);and (3)all Work covered by this Application for Payment is in accordance with the Contract Documents and is not defective. Payment of: (Line 8 or other - attach explanation of other amount) Payment of: is recommended by: (Line 8 or other - attach explanation of other amount) (Engineer) 8. AMOUNT DUE THIS APPLICATION $478,378.42 9. BALANCE TO FINISH, PLUS RETAINAGE $0.00 TOTALS CHANGE ORDERS (Column G on Progress Estimate + Line 5 above) $30,801,065.70NET CHANGE BY $0.00 $0.00 $452,908.88 $0.00 6. AMOUNT ELIGIBLE TO DATE (Line 4 - Line 5c) 7. LESS PREVIOUS PAYMENTS (Line 6 from prior Application) 4. TOTAL COMPLETED AND STORED TO DATE (Column F on Progress Estimate) 5. RETAINAGE: $980,302.42 Project: Otsego South Central WTP Contract: All Construction Owner's Contract No.: Number Additions Deductions 2. Net change by Change Orders 1 3. CURRENT CONTRACT PRICE (Line 1 ± 2) $0.00 $31,785,448.00 10/30/2026Application Period To: Contractor’s Application For Payment No. 2 Contractor's Project No.: 26-27 $931,287.30 $49,015.12c. Total Retainage (Line 5a + Line 5b) To (Owner): City of Otsego From (Contractor): Rice Lake Construction Group Via (Engineer): AE2S $49,015.12 Application for Payment Change Order Summary Approved Change Orders 1. ORIGINAL CONTRACT PRICE $31,785,448.00 : ___________________________________ 10/30/2026 (Owner) $478,378.42 11/4/2026 page 2 of 7 Rice Lake Construction Date of application 10/30/2026 Pay App #2 Work completed through: 10/30/2026 B C D E % Balance to Pay Item Number Scheduled Value From Previous Application (C+D) Materials Presently Stored (not in Col D) (F) Finish Section No. Value Application (C + D) Stored (not in C or D) (C + D + E) B (B - F) 011000 General Requirements 011000.01 General Conditions $ 1,882,899.00 $ 28,241.38 $ 29,829.55 $ 58,070.93 3.08% $ 1,824,828.07 011000.02 Bond and Insurance $ 298,806.00 $ 298,806.00 $ - $ 298,806.00 100.00% $ - 12100 Project Allowances 12100.01 - Chemical Feed $ 137,000.00 $ - $ - $ - 0.00% $ 137,000.00 12100.02 - Lab Equipment $ 12,000.00 $ - $ - $ - 0.00% $ 12,000.00 12100.03 - Electronics & Appliances $ 22,000.00 $ - $ - $ - 0.00% $ 22,000.00 12100.04 - Network, SCADA & Telemetry $ 160,000.00 $ - $ - $ - 0.00% $ 160,000.00 033000 BP-3.1 Cast-In-Place Concrete WTP 033000.01 - Material 1,777,103.73$ $ 4,850.00 $ 150,250.00 $ 155,100.00 8.73% $ 1,622,003.73 033000.02 - Labor 2,787,319.42$ $ - $ 111,450.00 $ 111,450.00 4.00% $ 2,675,869.42 Clearwell 033000.03 - Material 650,770.38$ $ - $ - $ - 0.00% $ 650,770.38 033000.04 - Labor 1,020,708.52$ $ - $ - $ - 0.00% $ 1,020,708.52 Site 033000.05 - Material 75,088.89$ $ - $ 4,880.78 $ 4,880.78 6.50% $ 70,208.11 033000.06 - Labor 117,774.06$ $ - $ 7,655.31 $ 7,655.31 6.50% $ 110,118.75 034500 BP-3.2 Precast Concrete 034500.01 - Material 1,687,109.00$ $ - $ - $ - 0.00% $ 1,687,109.00 034500.02 - Labor 562,370.00$ $ - $ - $ - 0.00% $ 562,370.00 042000 BP-4 Masonry 042000.01 - Material 84,934.00$ $ - $ - $ - 0.00% $ 84,934.00 042000.02 - Labor 255,456.00$ $ - $ - $ - 0.00% $ 255,456.00 051200 BP-5.1 Metals & FRP 051200.01 - Material 248,381.00$ $ - $ - $ - 0.00% $ 248,381.00 Item Total Completed and Stored to Date (C + D + E)Description This Period page 3 of 7 Rice Lake Construction Date of application 10/30/2026 Pay App #2 Work completed through: 10/30/2026 B C D E % Balance to Pay Item Number Scheduled Value From Previous Application (C+D) Materials Presently Stored (not in Col D) (F) Finish Section No. Value Application (C + D) Stored (not in C or D) (C + D + E) B (B - F) Item Total Completed and Stored to Date (C + D + E)Description This Period 051200.02 - Labor 190,542.00$ $ - $ - $ - 0.00% $ 190,542.00 051200.03 - Allowance for Clearwell Ladders 12,945.00$ $ - $ - $ - 0.00% $ 12,945.00 071325 BP-7.1 Waterproofing 071325.01 - Material 124,558.00$ $ - $ - $ - 0.00% $ 124,558.00 071325.02 - Labor 25,614.00$ $ - $ - $ - 0.00% $ 25,614.00 075300 BP-7.2 Roofing 075300.01 - Material 478,005.00$ $ - $ - $ - 0.00% $ 478,005.00 075300.02 - Labor 103,605.00$ $ - $ - $ - 0.00% $ 103,605.00 078400 BP-7.3 Joint Sealants 078400.01 - Material 21,800.00$ $ - $ - $ - 0.00% $ - 078400.02 - Labor 53,095.00$ $ - $ - $ - 0.00% $ 21,800.00 081113 BP-8.1 Doors & Frames 224,945.00$ $ - $ - $ - 0.00% $ 224,945.00 083113 BP-8.2 Floor Access Doors 23,259.00$ $ - $ - $ - 0.00% $ 23,259.00 083613 BP-8.4 Overhead Doors 083613.01 - Material 23,399.00$ $ - $ - $ - 0.00% $ 23,399.00 083613.02 - Labor 6,020.00$ $ - $ - $ - 0.00% $ 6,020.00 084313 BP-8.5 - Aluminum Framed Storefronts 084313.01 - Material 72,070.00$ $ - $ - $ - 0.00% $ 72,070.00 084313.02 - Labor 56,950.00$ $ - $ - $ - 0.00% $ 56,950.00 099610 BP-9.1 Coatings 099610.01 - Material 105,298.00$ $ - $ - $ - 0.00% $ 105,298.00 page 4 of 7 Rice Lake Construction Date of application 10/30/2026 Pay App #2 Work completed through: 10/30/2026 B C D E % Balance to Pay Item Number Scheduled Value From Previous Application (C+D) Materials Presently Stored (not in Col D) (F) Finish Section No. Value Application (C + D) Stored (not in C or D) (C + D + E) B (B - F) Item Total Completed and Stored to Date (C + D + E)Description This Period 099610.02 - Labor 429,845.00$ $ - $ - $ - 0.00% $ 429,845.00 100000 BP-10 General Construction 100000.01 - Material 146,970.00$ $ - $ - $ - 0.00% $ 146,970.00 100000.02 - Labor 558,154.00$ $ - $ - $ - 0.00% $ 558,154.00 100000.03 - Building Logo Signage 16,200.00$ $ - $ - $ - 0.00% $ 16,200.00 100000.04 - Building Lettering 6,025.00$ $ - $ - $ - 0.00% $ 6,025.00 211300 BP-21 Fire Suppression 211300.01 - Material 41,700.00$ $ - $ - $ - 0.00% $ 41,700.00 211300.02 - Labor 71,280.00$ $ - $ - $ - 0.00% $ 71,280.00 221005 BP-22 Plumbing 221005.01 - Material 796,941.00$ $ - $ 44,200.00 $ 44,200.00 5.55% $ 752,741.00 221005.02 - Labor 566,302.00$ $ - $ 11,326.04 $ 11,326.04 2.00% $ 554,975.96 230000 BP-23 HVAC 505,000.00$ $ - $ - $ - 0.00% $ 505,000.00 230000.01 - Allowance for HVAC Controls 175,000.00$ $ - $ - $ - 0.00% $ 175,000.00 260000 BP-26 Electrical 260000.01 - Mob/Permit 45,200.00$ $ 45,200.00 $ - $ 45,200.00 100.00% $ - 260000.02 - Sitework/Underground - Material 39,000.00$ $ - $ 1,950.00 $ 1,950.00 5.00% $ 37,050.00 260000.03 - Site Work/Underground - Labor 63,100.00$ $ - $ 3,155.00 $ 3,155.00 5.00% $ 59,945.00 260000.04 - Building Under Ground - Material 80,000.00$ $ - $ - $ - 0.00% $ 80,000.00 260000.05 - Building Under Ground - Labor 95,000.00$ $ - $ - $ - 0.00% $ 95,000.00 260000.06 - Conduit - Material 215,000.00$ $ - $ - $ - 0.00% $ 215,000.00 260000.07 - Conduit - Labor 210,000.00$ $ - $ - $ - 0.00% $ 210,000.00 260000.08 - Boxes/Devices - Material 45,000.00$ $ - $ - $ - 0.00% $ 45,000.00 260000.09 - Boxes/Devices - Labor 41,000.00$ $ - $ - $ - 0.00% $ 41,000.00 page 5 of 7 Rice Lake Construction Date of application 10/30/2026 Pay App #2 Work completed through: 10/30/2026 B C D E % Balance to Pay Item Number Scheduled Value From Previous Application (C+D) Materials Presently Stored (not in Col D) (F) Finish Section No. Value Application (C + D) Stored (not in C or D) (C + D + E) B (B - F) Item Total Completed and Stored to Date (C + D + E)Description This Period 260000.10 - Wire And Cable - Material 415,000.00$ $ - $ - $ - 0.00% $ 415,000.00 260000.11 - Wire And Cable - Labor 149,935.00$ $ - $ - $ - 0.00% $ 149,935.00 260000.12 - Fixtures - Material 149,000.00$ $ - $ - $ - 0.00% $ 149,000.00 260000.13 - Fixtures - Labor 64,000.00$ $ - $ - $ - 0.00% $ 64,000.00 260000.14 - Gear - Material 410,000.00$ $ - $ - $ - 0.00% $ 410,000.00 260000.15 - Gear - Labor 40,000.00$ $ - $ - $ - 0.00% $ 40,000.00 260000.16 - Low Voltage Rough-In - Material 46,000.00$ $ - $ - $ - 0.00% $ 46,000.00 260000.17 - Low Voltage Rough-In - Labor 42,000.00$ $ - $ - $ - 0.00% $ 42,000.00 260000.18 - Equipment Connections - Material 30,500.00$ $ - $ - $ - 0.00% $ 30,500.00 260000.19 - Equipment Connections - Labor 35,000.00$ $ - $ - $ - 0.00% $ 35,000.00 260000.20 - Fire Alarm - Material 18,000.00$ $ - $ - $ - 0.00% $ 18,000.00 260000.21 - Fire Alarm - Labor 12,000.00$ $ - $ - $ - 0.00% $ 12,000.00 260000.22 - Voice Data - Material 17,500.00$ $ - $ - $ - 0.00% $ 17,500.00 260000.23 - Voice Data - Labor 12,400.00$ $ - $ - $ - 0.00% $ 12,400.00 260000.24 - Generator - Material 441,305.00$ $ - $ - $ - 0.00% $ 441,305.00 260000.25 - Generator - Labor 7,500.00$ $ - $ - $ - 0.00% $ 7,500.00 260000.26 - Integrator - Material 1,325,968.00$ $ - $ - $ - 0.00% $ 1,325,968.00 260000.27 - Lightning Protection - Material 48,671.00$ $ - $ - $ - 0.00% $ 48,671.00 260000.28 - Lightning Protection - Labor 2,500.00$ $ - $ - $ - 0.00% $ 2,500.00 312316 BP-31 Earthwork and Site Utilities Excavation 312316.01 - WTP 887,901.70$ $ 75,736.00 $ 113,602.00 $ 189,338.00 21.32% $ 698,563.70 312316.02 - CW 221,975.60$ $ - $ - $ - 0.00% $ 221,975.60 Backfill 312316.03 - WTP 380,529.30$ $ - $ - $ - 0.00% $ 380,529.30 312316.04 - CW 95,132.40$ $ - $ - $ - 0.00% $ 95,132.40 Site Utilitites 330110.01 - Fresh Water 541,244.35$ $ - $ - $ - 0.00% $ 541,244.35 page 6 of 7 Rice Lake Construction Date of application 10/30/2026 Pay App #2 Work completed through: 10/30/2026 B C D E % Balance to Pay Item Number Scheduled Value From Previous Application (C+D) Materials Presently Stored (not in Col D) (F) Finish Section No. Value Application (C + D) Stored (not in C or D) (C + D + E) B (B - F) Item Total Completed and Stored to Date (C + D + E)Description This Period 330110.02 - Storm Water 189,110.50$ $ - $ - $ - 0.00% $ 189,110.50 330110.03 - Raw Water 359,743.00$ $ - $ - $ - 0.00% $ 359,743.00 330110.04 - Overflow 230,754.00$ $ - $ - $ - 0.00% $ 230,754.00 330110.05 - Sanitary 159,148.15$ $ - $ - $ - 0.00% $ 159,148.15 42319 BP-40 Process Pipe 42319.01 - Material 2,561,320.00$ $ - $ - $ - 0.00% $ 2,561,320.00 42319.02 - Labor 667,951.00$ $ - $ - $ - 0.00% $ 667,951.00 412314 BP-41 Bridge Cranes 412314.01 - Material 149,850.00$ $ - $ - $ - 0.00% $ 149,850.00 412314.02 - Labor 31,600.00$ $ - $ - $ - 0.00% $ 31,600.00 431116 BP-43.1 Blower & Filter Equipment 574,778.00$ $ - $ - $ - 0.00% $ 574,778.00 432001 BP-43.2 Sample Pumps 3,185.00$ $ - $ - $ - 0.00% $ 3,185.00 432113 BP-43.3 Vertical Turbine Pumps 296,797.00$ $ - $ - $ - 0.00% $ 296,797.00 432115 BP-43.4 End Suction Centrifugal Pumps 46,622.00$ $ - $ - $ - 0.00% $ 46,622.00 432270 BP-43.5 Bulk Water Fill Station 43,267.00$ $ - $ - $ - 0.00% $ 43,267.00 463111 BP-43.6 Chorine Gas Equipment 319,978.00$ $ - $ - $ - 0.00% $ 319,978.00 . 463320 BP-46.1 Process Equipment Install 463320.01 - Material 27,462.00$ $ - $ - $ - 0.00% $ 27,462.00 463320.02 - Labor 249,299.00$ $ - $ - $ - 0.00% $ 249,299.00 page 7 of 7 Rice Lake Construction Date of application 10/30/2026 Pay App #2 Work completed through: 10/30/2026 B C D E % Balance to Pay Item Number Scheduled Value From Previous Application (C+D) Materials Presently Stored (not in Col D) (F) Finish Section No. Value Application (C + D) Stored (not in C or D) (C + D + E) B (B - F) Item Total Completed and Stored to Date (C + D + E)Description This Period 500000.01 Owner Contingency $ 575,069.00 $ - $ - $ - 0.00% $ 575,069.00 500000.02 CMAR Contingency $ 862,604.00 $ - $ - $ - 0.00% $ 862,604.00 500000.03 CMAR Fee 1,594,306.00$ $ 23,912.81 $ 25,257.56 $ 49,170.36 3.08% $ 1,545,135.64 $ 31,785,448.00 $ 476,746.19 $ 503,556.23 $ - $ 980,302.42 3.08% $ 30,752,050.58 GROSS:113,602.00 RETAINAGE:5,680.10 NET:107,921.90 PREVIOUS PAYMENTS:75,736.00 GROSS:5,105.00 RETAINAGE:255.25 NET:4,849.75 PREVIOUS PAYMENT:45,200.00