Boiling Spring Lakes approves $3.01 million change order to restart Pine Lake Dam work, reserves right to seek recovery from engineer

Boiling Spring Lakes — The Boiling Spring Lakes Board of Commissioners voted 4-0 Thursday to approve a $3,008,171.64 change order to restart repairs on Pine Lake Dam and passed a resolution saying the City will pursue legal avenues to recover costs from the engineering firm it says made design errors.

City Manager Gordon Hargrove told the board the dams project is fully grant-funded and that no Boiling Spring Lakes tax dollars are being used for reconstruction, and he described the current work as necessary because of what the City maintains were errors in the original engineering design. "The dams project is entirely grant-funded, with no BSL tax dollars being used for reconstruction," Hargrove said, and he added the City intends to hold the design team financially responsible.

The City manager outlined two options for moving forward: compel the engineering firm to pay up front, a step legal counsel warned would likely trigger a lengthy court battle and delays; or authorize the City to pay now—using interest earned on restricted grant funds—so work can continue while the City pursues recovery through legal channels. Hargrove said the latter path avoids activating the bond and helps expedite reopening of E. Boiling Spring Road, while noting that funds are sufficient "as long as the City does not experience significant weather events that could potentially damage the dams."

Commissioner Justin Lovin urged residents to contact elected officials directly amid social media misinformation, saying the Board and City Manager are sharing what they can but some matters must be handled through the city attorney. "You just need to ask," Lovin said, encouraging direct communication.

Commissioner Kim Sherwood framed the decision in contract terms, explaining that both the contractor, Sequoia Services LLC, and the consulting engineer, McGill Associates P.A., were asked for recommendations on how to proceed after the design change and that differences in proposed pricing had delayed McGill's guidance. She said moving forward now is preferable to waiting months for new negotiations. "If they delay and wait for prices to be negotiated further, the project could be delayed by another six months or more," Sherwood said, and she moved to approve the change order.

Hargrove said the City had earlier discussed a rough estimate of about $2.1 million for the revision; the formal change order now totals $3,008,171.64. He told the board the contractor is entitled under the contract to adjust pricing given the redesign and the passage of three years since the original estimates.

The Board approved the change order 4-0. It then adopted a City resolution that authorizes the change order and "expressly reserves the right to hold McGill financially accountable for all expenses and damages the City may incur" as a result of the redesign. The resolution was approved by the same 4-0 vote.

The meeting closed with a motion to adjourn at 5:45 p.m. The City said it will proceed with the change order to advance repairs while pursuing "all legal means to recover these costs," and did not set a specific timeline for recovery or for full reopening of E. Boiling Spring Road.