FAIR OAKS, CA (MPG) - The Fair Oaks Recreation and Park District (FORPD) Board of Directors at its July 17 meeting considered a possible change order for Bobo Construction for an additional cost of $399,777 and a 168-day extension for the Village Park renovation project.

Before the board heard this item, Board Chair Ralph Carhart and Director Raymond James Irwin sat on an ad hoc committee and requested a legal review of the change order, the contract and the construction manual to determine whether the changes comply and to ensure district interests are protected.

Josh Horowitz, with the district’s general legal counsel, said that this is a reasonable request, based on his initial review and understanding the various weather and permitting delays that have plagued this project.

Horowitz advised that it would cost time and money to do a more exhaustive legal review and that the end result would be “a recommendation that this change order is reasonable and within contract, and you should go ahead and approve it.”

Director Irwin said his biggest concern was whether the change was in the scope of the district’s responsibilities. Horowitz said that issues such as “weather delays and constructability concerns” do generally fall on the owner.

Chair Carhart wondered why this change request was coming so late in the process. Horowitz said “this is pretty typical” for weather delays or other reasons that aren’t the fault of the contractor.

“It’s actually better for the owner to wait for everything to be accrued and accumulated so you understand the full scope and then you negotiate, based on that,” said Horowitz, rather than addressing another claim each day that the rain continues. This accrual process allowed the district to negotiate a better rate for the district, since Bobo was initially asking for approximately half a million dollars.

Horowitz also advised that denying the change order would lead to a process of litigation in which the district could end up being ordered to pay the cost anyway, in addition to legal fees.

“Based on what I’m seeing, I don’t think that’s a good use of resources,” Horowitz said. “Those resources would be better spent trying to move forward and continuing to work with this contractor, who is reputable and is performing. And that’s the best way to get the project done.”

Vice-Chair Delinda Tamagni asked whether it was possible they would have to consider changing orders relating to further rain delays before the project’s end.

District Administrator Mike Aho said that this change covers delays through March 2024 but it is possible that the project could incur more delays in the final months. For example, Aho said, as work on the road repaving is beginning, “don’t be surprised if the road continues to cause us grief.”

Carhart agreed that “It’s fraught with risk” and summarized the legal counsel’s advice that it would be best for the district to “bite the bullet and approve that request.”

During Public Comment on this item, Fair Oaks resident Chet Corcos said, “It just doesn’t seem like this construction company has an incentive to do this job on budget. It feels, to me, like you guys are getting kind of screwed with the deal we’re getting here. It’s taking too long. It’s costing even more and more.”

Director Darren Mounts said, “We’re just as frustrated as a lot of the community is. It’s a tough situation. We’ve had a lot of issues, a lot of delays, a lot of permit delays through Sac County. I mean, there’s a lot going on.”

Corcos asked what would happen if the district refused to pay the requested amount. Vice-Chair Tamagni replied, “Well, they would probably stop the construction and then we’ll go to court because they’re going to sue us.”

Director Irwin said, “So that’s another three years of nothing.”

Carhart said that this project is “complex,” with a number of facilities being upgraded at once, some that are more than 100 years old. During the process, Carhart said, many problems have been discovered that required new permits and reviews, which caused a “ripple effect” leading to even more delays,

Challenging the request, Carhart said, “would likely lead them down a difficult path that would cost a lot more and wouldn’t accomplish anything in the end.”

Director Irwin said, “Based on the legal recommendation, the wisest thing would be for us to pay this and continue to move forward and not cause any more delays.”

The Board of Directors voted unanimously to approve Bobo Construction’s change order request.

The next Fair Oaks Recreation and Park District Board of Directors meeting is scheduled for 6 p.m. Aug. 21 at the Fair Oaks Water District, 10326 Fair Oaks Blvd.