The Vermillion City Council voted to contract S.E.H., Inc., of Sioux Falls to complete a drainage study budgeted at $70,000.
The action was taken at the council's regular meeting Monday night.
City Engineer Jose Dominguez said that despite the budgeted-for amount, the actual study will cost less.
"This study will be hopefully coming in for $51,000, which is what the contract amount is for," Dominguez said. "The end result of the drainage study will be to provide the city with a capital improvement plan for drainage improvements in certain areas of the city."
The proposal had been discussed at the council's last regular meeting, which took place Feb. 21.
At that time, Dominguez said the study would divide the city into storage basins, and each basin would be surveyed for some time into the future.
One of the major areas of focus will be land that is slated for future development, including the ground north of Main Street and west of Crawford Road.
They study also will look at the city's existing drainage policy to make sure it's "not being too strict or too lax," Dominguez said at the time.
According to a memo provided this week to the city council members, after two drainage areas are inventoried and modeled, a capital improvement plan will be provided to complete the modeling of remaining basins.
A further capital improvement plan will be provided to construct drainage improvements within the two drainage basins modeled.
The city also will be supplied with an implementation strategy which will be used to locate funding for the improvements and "also define triggers that will require the construction of a drainage improvement," the memo said.
The discussion was tabled Feb. 21 until discussions with S.E.H. could be completed.
Dominguez said at this week's meeting that the company took exceptions with two items on the contract: The multiplier the consultant was willing to charge the city, and also when invoice were due, and what type of interest would be charged to the city if it was delinquent in payments.
"As for the multiplier, we're going to keep (it) in there, as that's what the consultant pays his overhead with, and so forth," Dominguez said.
In terms of the interest rate, "we're going to be utilizing the state statute that sets the interest rate maximum as far as how it's going to be paid," he added.
S.E.H. was one of eight consultants that provided proposals to the city.
"We decide on these consultants based not only on monetary (amounts) and experience, but on expertise in the area," explained Council Vice-President Howard Willson.
The council voted unanimously to award the contract to S.E.H.