Spencer faces $350K–$400K shortfall after Town Park low bid; board to seek value engineering and community fundraising

The Town of Spencer reported on Aug. 8 that the apparent low bid for the Town Park base construction came in at $2,440,000, leaving an estimated funding gap of about $350,000 to $400,000 against the town’s roughly $1.85 million construction budget.

Joe Morris, who joined the meeting by Zoom, said the low bid exceeded the budgeted amount and that the project team is pursuing ‘value engineering’ with the apparent low bidder to reduce costs without compromising overall quality. “The low bid was above the budgeted amount,” Morris said. “They are going to present to us by the end of next week a new proposal that would potentially get our prices closer together.”

The town described specific savings the contractor proposed and staff reviewed. Peter (staff) listed examples: substitute epoxy paint for ceramic restroom tiles, use brick instead of granite in selected locations, and reduce planting‑area excavation from 24 inches to 12 inches. “Those are the kinds of things…which we really appreciated,” Peter said, noting the contractor was confident it could deliver within the specified time frame.

Town leaders told the board they aim to get the contract amount under $2.2 million through negotiated changes and then cover the remaining gap with additional funding sources. The mayor said a budget ordinance will be needed to increase project appropriations with a matching revenue source that will be identified as funds are secured. The town plans to solicit grants, philanthropic gifts and sponsorships (for example, naming opportunities for a bandstand or benches) as part of a capital campaign.

If cost reductions and outside fundraising fall short, staff said the board will still consider authorizing a contract paired with a subsequent budget amendment that identifies the to‑be‑determined revenue source. Staff proposed asking the low bidder for revised pricing by next Friday, then recessing the August regular meeting to a date in the week of the 20th so the board can consider a budget amendment and, if appropriate, award the contract and authorize the town manager to execute it.

The town also reiterated schedule expectations: the contractor signaled readiness to start promptly and estimated a construction schedule in the neighborhood of nine to ten months, which staff said is important to meet event timelines tied to the park’s opening.

Next steps: staff will present revised bid numbers and a proposed budget amendment to the board at the recessed meeting tentatively scheduled for the week of the 20th (the board agreed to a 5:30 p.m. recessed start time during the pre‑agenda discussion), and the board will decide whether to award the contract and adopt the budget amendment.