Lebanon — City councilors voted begrudgingly to dedicate another $1.7 million to a sewer improvement project at Wednesday night’s meeting.

The appropriation brings the project’s total cost to about $6.5 million, not including interest payments on a long-term bond that will be paid off by the city’s sewer rate payers. About half of the $1.7 million appropriation comes from contractor payment claims, which the council hopes will be whittled down in negotiations that include the city attorney and public works staff.

“I think that this situation is very frustrating to say the least,” Councilor Karen Liot Hill said. “I think sometimes we have to do things that are unpleasant because in the end, the work has to be done.”

When it comes to construction projects, sometimes a worst-case scenario comes to fruition, Liot Hill said, and the city can only hope that negotiations will lower the overall cost for ratepayers.

“We are not taking this lightly and we will look at all possible financial records, anything that’s required to make sure that this decision is validated,” said Councilor Sarah Welsch, adding that the vote is a part of that process.

The project’s price tag has more than tripled since the council first approved construction in 2012 to replace about 1.4 miles in sewer lines along the Route 120 corridor. Since then, the original $2.1 million estimate was increased by $1.87 million after additional design work.

The council also appropriated an additional $750,000 in July after the discovery of a pipe sleeve under Interstate 89 was in need of replacement.

Although that last appropriation contained about $350,000 in contingency funds, tunneling slowed after contractors encountered dense rocks. Hoyle, Tanner and Associates, a Manchester-based engineering firm, initially estimated that navigating the rocks would take 100 hours, but contractors have now spent more than 500 hours installing almost 300 feet of casing for the sewer line, Public Works Director Michael Lavalla told the council earlier this month.

The project is important for a number of developments along Route 120 that are awaiting completion of the line.

Increasing costs and overtime claims led some councilors to question whether appropriating more money would do much good. Both councilors Clifton Below and Bill Finn voted against the measure.

“I have a very bad taste in my mouth about this,” Finn said. “I think it’s a travesty.”

Below said he felt like approving the funding would send the wrong signal to contractors. Since not all claims have been agreed to, he said, he didn’t feel comfortable appropriating money for them.

Dan Nash, an engineer and Zoning Board member, said he agreed with the council that the project should continue, but he also urged the city to investigate what went wrong. Nash is also working with ICV Holdings of New Hampshire on its project to build an apartment building off of Route 120 that has plans to connect to the future sewer line.

“I suspect that there have been some errors of design, contract administration and construction,” Nash said, and an independent review might be helpful when looking to future projects.

“I think it should go forward, but I think you ought to take a close look at what happened,” he said.

Liot Hill said councilors would take Nash’s recommendation under advisement.

Although the council voted to approve and apply to fund the project, it was not clear on Wednesday when construction would begin again or when it will be completed.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.