Mount Vernon council authorizes Kokosing CMAR agreement for $46.2 million wastewater upgrade

Mount Vernon—City Council on Oct. 28 authorized the administration to enter a qualifications-based Construction Manager at Risk (CMAR) agreement with Kokosing Industrial Inc. to advance design and secure a guaranteed maximum price (GMP) for the city—s wastewater treatment plant phosphorus and solids improvements project.

Safety Services Director Zalyers, who led the presentation, said the city is at roughly 30% design and needs to move the project forward to meet regulatory and operational needs. "This is one of the most important infrastructure investments Mount Vernon will make over the next decade," Zalyers said, adding the upgrades are necessary to meet state and federal discharge requirements and to add redundancy to aging systems.

Why it matters: Zalyers told council that Ohio EPA phosphorus limits require significant nutrient reductions by 2027 and that the existing facility cannot meet the new standard without upgrades. The improvements would add biological nutrient removal, chemical phosphorus precipitation, upgraded solids-thickening and dewatering equipment, modernized electrical and SCADA controls, backup generation and redundant switchgear, and process redundancy to keep the plant operational through construction.

Scope, schedule and cost: At 30% design the administration presented a total estimated construction cost of $46,200,000. Zalyers said Kokosing—s proposed delivery schedule showed substantial and final completion in just over two years from mobilization, shorter than competing firms and a factor in selection.

Procurement and CMAR rationale: Under the CMAR model, the contractor joins earlier in the design process to provide constructability reviews, real-time cost estimates and scheduling, and to offer a guaranteed maximum price at the end of the design phase. Zalyers and Arcadis engineers Joe Jacobs and Dan Garnett said that approach reduces the risk of later change orders and cost overruns versus a traditional design-bid-build model.

Funding and rate integration: The utility is an enterprise fund; Zalyers said the project will be financed primarily through Ohio EPA—s Water Pollution Control Loan Fund (WPCLF) administered by the Ohio Water Development Authority (OWDA), with repayment structured over 20 to 30 years after construction. The administration also reported it is pursuing federal grant opportunities, including a previously requested $5,000,000 congressional directed spending request. The city—s rate model already accounts for this project and, according to staff, anticipates the previously discussed wastewater rate increases of roughly 11% in each of 2026, 2027 and 2028 to cover planned debt service and other projects in the utility program.

Council questions and clarifications: Council members asked about inflow and infiltration (I&I) and whether the utility is treating stormwater. Public works staff said the city will install strategic flow meters in the collection system, perform smoke testing and use CCTV inspection to identify downspouts, cracked laterals or mains contributing to excess flow. Council also pressed administration on CMAR fee mechanics; staff said Kokosing guaranteed a CMAR fee of 4.5% of the base construction cost in the current proposal and that the fee would move with changes in base construction cost reflected in the final GMP.

Formal action: Council suspended the rules for three readings and adopted Resolution 2025-106 authorizing the safety service director to enter into a qualifications-based CMAR contract with Kokosing Industrial Inc. for the Mount Vernon wastewater treatment plant phosphorus and solids improvements project. The motion to suspend and the subsequent adoption were approved by roll call vote of the members present.

What stays uncertain: The $46.2 million figure reflects 30% design; a final GMP will be determined as design advances and may change. Zalyers emphasized the administration will seek low-interest loans and grant/forgiveness opportunities to reduce ratepayer burden and will return to council if the project scope or estimated cost materially changes.

Next steps: With authorization to execute the CMAR agreement, Kokosing will collaborate with Arcadis to complete detailed design, develop the GMP and finalize financing applications to the WPCLF/OWDA. The administration said it will post a dedicated project web page with financial summaries and provide regular updates to council and the public.