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Vermillion council pauses $58,600 engineering task order for Highway 50 utility crossing after cost concerns
Summary
Councilors questioned a Banner Associates estimate that put probable construction costs at $608,000 and asked staff to seek competing engineering proposals; members took no action on Task Order 5 and asked staff to return with options by early March.
Vermillion city staff presented a task order for design work on utility crossings under Highway 50 and the city council declined to approve it after extended questions about cost and scope.
Shane, the city's utilities staff lead, said Banner Associates proposed a two-phase scope — preliminary and final design — priced as a lump-sum, not-to-exceed $58,600 for engineering services. He also said Banner’s estimate of probable construction cost came in at $608,000, a number he said was driven largely by two steel encasement pipes included as a worst-case assumption. "Their estimate came in at $608,000 which is substantially higher than the estimate that I gave you," he said. "That pipe…was a little over $300,000 in additional costs."
Councilors pressed staff on why Banner included encasement pipe and whether the Department of Transportation would require it. Shane said Banner was conservative in its worst-case estimate and that staff would work with DOT during design to explore alternatives that could lower the price. Jose, responding on project history and procurement, explained that the city previously entered a master engineering agreement and that task orders follow from that agreement.
Several councilors asked for a second opinion and for staff to solicit comparable proposals from other firms in the region. Councilor Murrah said she wanted "smooth projects" and faster timelines after past delays; other members expressed concern for fiscal stewardship and asked that staff request prices from other firms in the DOT 'bullpen' list. Shane said the $58,600 figure is a maximum not-to-exceed amount and could come in lower depending on negotiations and the DOT's requirements.
After discussion, no member moved to approve Task Order 5. The council directed staff to seek additional proposals and bring options back to a future meeting, with staff suggesting March 2 as a target date for council action.
