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Gardner officials plan to redeploy city funds after National Grid cites $873,560 charge for Rear Main project
Summary
City officials were told National Grid’s recent cost breakdown raised the city’s estimated back charges from roughly $260,000 to a nonstandard customer cost of $873,560; the department will prepare a resolution to move previously authorized and unspent project funds to cover the difference and bring it to finance and then the council.
Director Stevens told the Gardner City Economic Community Development Committee on March 11 that a recent, long‑delayed cost breakdown from National Grid shows a nonstandard customer charge of $873,560 for necessary electrical upgrades on the Rear Main Street project, a figure far above the project’s earlier internal estimate of about $260,000.
Stevens said National Grid returned its formal cost components only in February 2026 after roughly three years of back‑and‑forth. He said an additional $26,320 was listed as a system improvement cost that National Grid will pay, but the $873,560 nonstandard cost would fall to the city. "Those amounts were the best guess that the engineering team and this team that created this OPC had for the estimate," Stevens said, adding the city previously proceeded without a finalized National Grid cost sheet.
Committee members pressed for clarity about oversight and the timeline for the estimate. The chair asked Stevens to compile supporting documentation — a timeline, email threads and the original engineering files — so finance and the full council can review the history and decisions that led to the variance. Stevens agreed to prepare a packet for the finance committee and said the department plans to submit a resolution to redeploy previously authorized funds to cover the overrun.
Stevens outlined specific available sources that staff proposes to use if the finance committee and council approve the redeployment: roughly $454,000 of unexpended funds from the Wilkins Road paving project and remaining unexpended portions of prior awards to the Rear Main project (including previously identified grant and bond proceeds). He emphasized there is limited additional funding beyond those previously allotted and said staff will not allow further overruns beyond the amounts already identified.
The committee took no formal action on the resolution in that meeting; members stressed that the item must go to the finance committee because it is financial in nature and that the finance committee and then the full council will decide whether to approve moving the funds. The chair said a clear, dated packet would help councilors and the public understand "where the money can go from, where it was supposed to go, how much we thought we were going to need and how we got here."
Next steps: Stevens will prepare the documentation and place the resolution on the finance committee agenda; finance and, if approved, the council will consider formal reallocation of funds.
