South Berwick holds public hearing on $750,000 owner-controlled contingency for $7.35M town-hall renovation

South Berwick held a public hearing Dec. 9 as it prepares to ask voters whether to permit the town to draw up to $750,000 from the undesignated fund as an owner-controlled contingency for an already approved $7,350,000 town-hall renovation.

Residents at the hearing said they support renovating the town hall but urged more clarity on fiscal effects. “My main concern is what will be your tax ramifications for spending,” said Jerome Bechera of 75 Mills Road, citing rising rates and concerns for seniors on fixed incomes. Finance staff replied the $7,350,000 package approved previously included a $6,000,000 bond and $1,350,000 drawn from designated funds, and the proposed $750,000 would come from the town’s undesignated savings and would require council approval before any use.

A trades-business owner, Melissa Costello of Boyd’s Corner Road, questioned the procurement approach and contract type, saying the construction contract was described as a guaranteed-maximum-price (GMP) arrangement and warning that asking taxpayer funds to increase contingency may conflict with risk allocations she expected under that contract type. “It’s a guaranteed maximum price contract with construction manager at risk,” she said, and urged clearer procurement language and opportunities for smaller local bidders.

Town staff said the town has roughly $8.41 million in its undesignated fund as of the numbers reported in the meeting, with obligations that leave roughly $2.9 million available after earmarks; they stressed that the $750,000 would be owner-controlled and would be spent only if the council later authorized it. Project representatives and a construction industry commenter described how contractor-held contingencies can be returned to the town if unused and that division-level savings might reduce overall contract value during construction.

Council members and staff said the request will go before voters at a special town meeting, because any appropriation above $10,000 must be approved by voters. Council members said the town will present a more detailed public briefing and itemized list of “must-haves” versus “nice-to-haves” at the special meeting so voters can judge the scope alongside the cost. The hearing closed and the council moved to other business.

The special town meeting to decide the contingency appropriation is on the warrant; whether voters approve the additional $750,000 will determine whether the project’s owner-controlled contingency can be accessed.