Monticello approves $41.8 million guaranteed price for new water treatment plant

The Monticello City Council on May 26 adopted Resolution 2026-47 to amend the Construction Manager at Risk (CMAR) contract with Rice Lake Construction Group, setting a Guaranteed Maximum Price of $41,775,323 for a new centralized water treatment facility.

Public Works Director and City Engineer Matt Leonard told the council the CMAR completed procurement and presented the GMP; he said the total estimated project cost, including engineering and related expenses, is about $45 million. Funding noted by staff includes $11 million in state bonding, anticipated assistance from the Public Facilities Authority and utility-supported financing.

"Manganese is not currently regulated at the federal level," Leonard said when asked about water quality drivers for the project, adding the state monitors manganese as an emerging contaminant and that some communities are already treating for it. City Administrator Rachel Leonard said the City is taking a proactive approach to water-quality management and that a centralized facility will allow the city to treat water at the source rather than relying on individual homeowners.

The presentation recapped feasibility and design work and said construction will begin after final regulatory approvals, with completion anticipated in December 2028. The council voted unanimously to adopt the resolution (motion by Councilmember Hinz, seconded by Councilmember Martie).

The resolution authorizes amendment of the CMAR agreement to incorporate the GMP and move ahead with subsequent procurement and construction steps once regulatory permits and funding commitments are finalized.