Uncertainty Lingers Around Melrose Library Project Costs

MELROSE, MA — Rising product costs and product shortages are forcing Melrose officials to rework elements of the city's $21 million library renovation project.

Recent cuts and adjustments to the project have initially kept cost projections in line with the planned budget, according to an update last month from City Planner Denise Gaffney.

The city now has little room left for additional adjustments, though, if costs continue to rise as the city gets set to collect and review contractors' bids.

With still volatile financial conditions, Gaffney said that she could not rule out the possibility of the city needing more money to complete the library project.

The Melrose Public Library closed at its main West Emerson Street location on Aug. 12 to begin a move to a temporary home at the Beebe School on West Foster Street.

Years in the making, projected library renovations at West Emerson Street come funded through a combination of city money, a Massachusetts Board of Library Commissioners grant and contributions from the Melrose Library Board of Trustees.

Last week, Gov. Charlie Baker announced an additional $500,000 for the project to support sustainability measures in the new library structure.

Gaffey wrote in her update last month, though, that uncertainty in the construction industry could prompt contractors to “hedge their bets” and return higher-than-expected bid prices for what the City Council approved as a $21 million library project using a $10.8 million city bond in October of last year.

City Councilor’s Robb Stewart and Mark Garipay initiated conversations with the city about cost concerns in recent weeks, asking the administration of Mayor Paul Brodeur for an update on the financial outlook for the library.

Gaffey’s response was included in last week’s City Council agenda packet.

“It took me a while but I did and still do support the library project,” Garipay wrote in an email to council colleagues that was attached to Gaffey's comments.

“But I want to make sure we are kept informed during the project and that we do not have any surprises with an additional fund(ing) request,” he continued.

“It is not possible to completely ease your concerns or to tell you that the appropriation that the Council approved will be adequate to cover the full costs of the project given how unprecedented this situation is and how dramatically the market has changed since the authorization occurred last year,” Gaffey wrote in her email to Garipay.

Gaffey said the city had heard from industry experts that bids could come in above expectations.

As a result, she said, the team working on the library project has been making adjustments to prepare, modifying the project to remove some items or swap more expensive materials for cheaper or more easily accessible alternatives.

While Gaffey did not itemize specific cuts, she said the team has also removed items from the base scope of the project that they could add back in as alternatives if bids are favorable.

She said that the city’s most recent cost estimate as of Aug. 15 still had the project on budget after recent cuts.

“But we all remain concerned that, despite our best efforts, we could see high bids,” Gaffey said.

While the team has made cuts, Gaffey said the city is looking to keep the project scope in line with initial goals for this work, which included various programming space and other facilities upgrades to meet the more than 100-year-old library’s modern needs.

The city is also bound by some grant guidelines in order to still receive funding from the Board of Library Commissioners.

“We never had a lot of room or scope reductions because the new building will be only slightly larger in programming space than the existing building,” Gaffey said. “We can’t make the building smaller and meet the needs of the library or remain in compliance with the requirements of the grant funding agency.”

As Melrose faces cost concerns, other area communities are grappling with their own funding questions around large-scale building projects.

In Stoneham, officials announced earlier this month that they were considering trimming aspects of their planned new high school project due to inflation, supply chain issues and workforce challenges.

“The reality is we’re seeing things cost more and are more difficult to access not only on school projects but across the board – from fuel to labor and supply chain impacts on material and equipment,” Todd McCabe of Consigli Construction company said in a statement from the Stoneham School Building Committee.

Gaffey said Melrose is “pursuing every opportunity” to secure other funding sources to offset cost increases for the library project, including grant applications, incentive money for sustainability measures, fundraising and possible American Rescue Plan Act dollars.

In the meantime, the city has pushed its original deadline for bids from Sept. 14 to Sept. 28, according to Melrose Director of Economic Recovery and Business Development Lauren Grymek.

Grymek told Patch last week that the delay aims to generate additional interest in the project while giving contractors time to bring teams through the library building to ask clarifying questions.

Gaffey said officials would provide an additional update on the project once bids come in.