In January 2007, Spencer was awarded the Distinguished Service Award by the Huntsville/Madison County Chamber of Commerce. Later that year Spencer was embroiled in controversy when the fire chief she had appointed resigned after only 18 months on the job. It emerged that he resigned after Spencer confronted him over alleged sexual harassment for his conduct toward a city employee, for which the city was later sued. In 2008, this suit was settled, and the city reportedly was not required to make any payment to the plaintiff.