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Council approves $25,000 second‑penny allocation for East Side water and sanitary sewer basin study
Summary
The council authorized use of previously pledged Grover Million funds — $25,000 from the city's second-penny allocation — to help pay for a $69,800 East Side utility infrastructure/facility plan intended to support future development.
The Vermillion City Council voted July 7 to authorize $25,000 of the city’s previously budgeted Grover Million pledge — the city’s second‑penny portion — to support an East Side water and sanitary sewer basin study and facility plan.
The study, estimated at $69,800 and to be completed by Banner & Associates, will analyze projected wastewater and water flows, the impact of potential development on trunk lines and how the area ties into the city’s existing utility systems. The council approved a resolution to release the second‑penny portion and to reimburse the VCDC when receipts are provided for eligible expenses.
Why it matters: city staff and the VCDC said a facility plan is typically required to qualify for state funding such as Department of Agriculture and Natural Resources grants or Community Development Block Grants; having the study on file could shorten future project timelines and support trunk-line funding requests.
Discussion and clarifications
John (city staff) reminded council members that the city’s 2025 budget included a $100,000 pledge to the Grover Million campaign, of which $75,000 was from the bed-and-board (BBB) fund and $25,000 from the second‑penny fund. He said the council in prior campaigns had required the VCDC to return receipts for second‑penny expenditures so the city could verify allowable uses under the fund’s economic-development restrictions.
Jim Peterson of the BCDC described the proposal as an “East Side facility plan” and said the study’s findings would be usable for many years and would strengthen future grant applications. Peterson said the VCDC would fund part of the study and submit receipts to the city for reimbursement of the second‑penny portion after the work is paid.
Councilors asked how detailed the environmental review and timeline would be. Staff explained the study will assess environmental constraints (wetlands and similar features) and identify need for trunk construction, but it is not itself a project-construction schedule; contractors would provide timelines and costs for specific construction once the plan validates needs and funding is available. City staff noted a previous 2023 Northeast Lift Station basin study is being used as a model: a base study lasts many years and may need only periodic updates.
Vote and implementation
Motion to approve the resolution authorizing use of Grover Million second‑penny funds for the East Side study passed by voice vote. Staff and the VCDC said the study will be coordinated with demolition and park construction work at the former Jolley School site, and the project is to be paid through the TIF district for that development. The council directed staff to accept vendor receipts and reimburse the VCDC for the eligible $25,000 portion.
Next steps
Banner & Associates (or a selected consultant) will produce the facility plan; staff and VCDC will coordinate timing with ongoing demolition and park construction so utility work and study timeline align with site readiness. The study’s completion will support later grant applications and detailed project scoping.
