GREENFIELD — Even with the help of a nearly $1 million grant from the U.S. Department of Agriculture, the fire station budget is approximately $2.75 million short of its expected project cost amid rising construction prices.
“I think it’s important to understand this is not a Greenfield problem,” commented Fire Chief Robert Strahan. “This is a global problem. I’ve talked to a lot of fire chiefs sitting in the same position with their projects. … The inflation and the cost of construction and how bids are turning out … is telling of the overall picture of construction in municipal projects.”
With a bid total of $14.47 million, which includes all alternates, Northampton-based D.A. Sullivan & Sons was the low bidder for general contractors at last week’s bid opening, bringing the overall cost of the project to $21.7 million, according to Project Manager Neil Joyce. Subcontractor bids — which include masonry, glass and glazing, plumbing and electrical — were also received in August.
“(The U.S. Department of Agriculture grant) is for the … outbuilding and some equipment and emergency operations-type of equipment for the fire station, to the tune of the full amount we requested of $978,000,” Mayor Roxann Wedegartner told members of the Fire Station Building Committee on Thursday evening. “That is a substantial and really wonderful grant. … We were excited. Our excitement was quickly tempered by the fact we opened bids and found out we were over budget.”
The previously approved $18 million budget included $2 million for the temporary fire station on Hope Street, which firefighters moved into in September 2021. The new fire station is being built on Main Street near Coombs Avenue.
The mayor said the city has a plan to meet the $21.7 million total in a way that minimizes the impact on taxpayers.
“We put together a nice funding stack to have a minimal direct impact on the taxpayer, doing everything we can not to raise and appropriate, but rather to find money that can be suitably used for this,” she said.
To compensate for the $2.75 million shortfall, Wedegartner is asking for City Council to appropriate $750,000 in bond premium and $1 million in capital stabilization. Additionally, $500,000 in borrowing will be requested.
“If you recall, the (Greenfield Public) Library Foundation was raising $2 million,” she explained. “Their intent was to give a significant portion of that $2 million back to the city to reduce the borrowing on the library; therefore freeing up some ‘space’ … in the debt ceiling, or ability to borrow. We will be using $500,000 from borrowing that really comes from rescinding the $500,000 we already have in hand … and putting it toward the city.”
All requests received the first reading from City Council earlier this week.
Wedegartner said she will also provide another $500,000 in American Rescue Plan Act (ARPA) funding, bringing her contribution in ARPA funding for the fire station construction project to $2 million.
Fire Station Building Committee Co-Chair Butch Hawkins said the city, which anticipates breaking ground on the new station sometime this fall, has 30 days from Aug. 24 to accept the contractor’s bid. He noted City Council meets Sept. 21, which means — pending support from councilors — the committee will have to meet Sept. 22 to vote on an adjusted budget.
“We’re going to be right up against the finish line,” Hawkins said.
Reporter Mary Byrne can be reached at mbyrne@recorder.com or 413-930-4429. Twitter: @MaryEByrne.