Library Officials Scramble to Cover Construction Cost Overruns

Unforeseen structural issues are among the problems that have left Mastics Moriches Shirley Community Library officials scrambling to cover cost overruns they’re projecting to be at least $3 million for the renovation of the main library and new annexes. Other cost increases may come into play as alternates to the original plan are considered, they reported.

When contractors opened the walls at the library’s main facility on William Floyd Parkway, they discovered major deficiencies not anticipated in the original estimates. The elevator shaft was found to be made out of wood and steel beams for the walls and ceiling were not properly installed when the 45,000-square-foot library was first built in the 1980’s, according to Joseph Maiorana, president of the library board of trustees.

Inflation and supply chain issues in the wake of the COVID crisis have also weighed heavily on the construction budget, along with the addition of specialized septic systems to the design of the three facilities and other alternatives added after the original plans were submitted for voter approval. Suffolk County has promised $169,000 in grant monies to offset the cost of the Innovative and Alternative Onsite Wastewater Treatment Systems, which are expected to minimize nitrogen from entering the area’s groundwater.

“When we first started this, no one had ever heard of COVID,” said Kerri Rosalia, library director. “We were very unlucky to have gone out to bid in the middle of a pandemic.” She estimated that the district’s capital program, which also includes the construction of new satellite branches on Neighborhood Road in Mastic Beach and Montauk Highway in Shirley, will go over budget by about $3 million due to the structural deficiencies found in the main library and other issues. The projects were expected to be covered though $22.7 million in borrowing approved by voters in a 2019 referendum and $4 million from the library’s reserve fund. About $16.6 million has been spent so far, according to Rosalia.

Both the library director and the trustee president were adamant about not going back to the community for additional borrowing. They’re looking to cut costs through a “value engineering” review by the construction team and additional monies from the library’s reserve fund. “We are scaling back and may have to make some tough decisions,” she said, indicating that space used by the staff would be considered for cuts before any public areas. The director said she will continue to extract savings from the operating budget to offset the capital projects, but did not provide specifics. The library has already received $800,000 in construction grants from the state and Rosalia said the library will continue to pursue outside funding.

According to library spokesman Mark Grossman, officials are exploring various alternatives to the original plan presented to the voters and final decisions on what to exclude are currently being considered. These include the installation of glass partitions, raised flooring to accommodate cables and other wiring, cabinetry, parking lot features, and a portico at the entrance, according to library officials. An “oversight” by the architect required the addition of a sprinkler system, Grossman said.

While library officials reported $3 million in overruns due to the unforeseen issues, they would not comment on what additional monies would be spent when the alternatives are taken into consideration. Grossman explained that the project “has a lot of moving parts” and the library could not provide an estimate of cost overruns beyond the $3 million at this time. The design team is still reviewing what items can be omitted to generate savings, and the process will take time, Grossman said. Requests by the South Shore Press for an estimate of potential cost increases is being considered an inquiry under the Freedom of Information Law, according to Grossman, and would not be provided as of press time. Library officials also would not say how much in operating funds they expect to convert to the library’s reserve to pay for the capital projects.

Shifting operating costs approved by the voters to the construction budget raised concerns among residents who called for any operating fund surpluses to be returned to the taxpayers. “Using operating money to pay for cost overruns for the capital program is completely wrong,” said Kenneth Olivo, a candidate for the library board and local chamber and civic officer. “They are robbing Peter to pay Paul. They are spending money with no regard or transparency to the taxpayers. I will not allow this to continue if I am a member of the board. They need a complete financial audit.” Olivo said. His opponent in the trustee’s race, incumbent Joseph Furnari, did not respond to requests for comment on the construction funding.

Mastic Park Civic Association Director Ray Keenan said his group hosted a recent meeting with library officials to discuss the upcoming budget and the ongoing projects. “It’s remarkable to me that these folks propose a budget increase when we've had no library for a year and a half,” Keenan stated. “And the other issue that gets me is rolling over the budget surplus year after year into a reserve fund to pay for the construction projects. These surpluses should be returned to the taxpayers.”

Others questioned how rent surpluses, early retirement savings and other unspent budgeted items would be handled with the construction overruns looming over library expenses. “What do Manorville residents get from the hundreds of thousands of dollars they send the district without even having a main branch?” one taxpayer asked.

The library is in the process of borrowing the remaining funds approved in the 2019 referendum, Rosalia reported. Interest rates are expected to be higher than previous bonding due to the Federal Reserve raising rates in an effort to curb the inflation that has descended over the U.S. economy. A request by the South Shore Press for interest rates, payoff duration, and other costs for past borrowing and the anticipated bonding is also pending with the library.

After celebrating the opening of the Mastic Beach annex in January, Rosalia noted a significant uptick in the issuance of library cards. “People who didn’t have the means to visit the main library can now walk to the annex,” the library director said. “It’s really heartwarming to see so many residents enjoying our services.” According to the director, the new Moriches Annex is complete and should be open next month. The main library reconstruction is slated for completion in 2024 or early 2025, Rosalia projected. Along with the Neighborhood Road branch, library services are currently available at the Herkimer Street recreation center.

The library’s annual vote will take place April 4 with the trustees proposing a $10,613,000 budget with a 1.4 percent tax increase, a levy below the state’s tax cap. The spending represents a $148,499 increase over last year and includes $778,876 in capital funds already approved in the 2019 referendum. If the vote were to fail, spending would revert to the current budget, Rosalia pointed out. Library services amount to about $680 per year for the average home in the district.

Details of the spending plan are available on the library’s website with an informational meeting scheduled for March 27 at the Mastic Recreation Center on Herkimer Street. The vote will take place at the Mastic Beach annex from 9 a.m.-9 p.m.