Lake Placid council approves budget correction, tables police station contract while seeking cost cuts

The Lake Placid Town Council on Oct. 13 approved an ordinance correcting the town's fiscal year 2025-26 budget on first reading and postponed awarding a contract for a new police department building amid debate over rising construction costs and funding sources.

The council voted to adopt Ordinance 2025-16 on first reading, which repeals Ordinance 2025-11 and replaces the budget attachment with a corrected version. Council members approved the motion on first reading after staff said the change corrects an earlier, inadvertently included version and does not affect compliance with the state's truth-in-millage requirements.

The budget discussion quickly shifted to the planned police station. Staff told the council the town received three bids; the low bid was from Simcoe Construction at $2,000,002.99. The town currently has $1.6 million encumbered for the project, leaving a shortfall of roughly $700,000 before contingency. Town staff recommended accepting the low bid and directing the administrator to work with the contractor on value-engineering options. The town is seeking an additional legislative grant of about $800,000; if awarded, those proceeds would reimburse reserves.

Council members, the police chief and residents debated whether to move forward immediately or pause to seek savings. The town administrator said staff can present a value-engineered contract for council approval but urged that funding be secured before executing an agreement. The town finance director confirmed the infrastructure reserve currently held by the town can cover the shortfall if necessary but that council preference was to avoid drawing on reserves if grant funds materialize.

After discussion, the council voted to table awarding the contract for one week to allow the town to pursue value-engineering talks with the low bidder and assemble a contract for council review that reflects any adjustments. The motion to table passed in a recorded vote.

Why it matters: The police station has been a multi-year project for the town and is tied to reserve balances and grant applications. Approving the corrected budget preserves state compliance and moves the ordinance to second reading; tabling the construction award gives staff time to firm up savings and confirm whether external grant funding will arrive.

Council members and officials said they expect to return next week with a recommended, value-engineered contract and clearer funding path. If the town proceeds without grant reimbursement, the infrastructure reserve would be used to cover the delta and would be replenished only if the grant is later awarded.

Votes and next steps: Ordinance 2025-16 passed on first reading (motion and roll call recorded on Oct. 13). The council directed staff to return to the council within one week with a value-engineered contract recommendation and a funding plan before any contract is executed.

Supporting remarks ' Mayor John Holbrook opened the hearing on the budget correction and presided over debate. Police Chief (name not provided in the meeting packet) urged timely construction to avoid further cost escalation. Town Administrator Charlotte Rodriguez described the process for correcting the advertised budget attachment and later confirmed timelines for staff work on the bid and contract.

What the council did not do: No construction contract was signed at the meeting. Council members declined to award the bid without value-engineering and a contract in hand.

Looking ahead: The ordinance will return for a second reading and final adoption at a later meeting. The council expects to consider a finalized contract for the police station within the week after staff completes negotiated value-engineering and presents a funding plan.