Contractor says Port Huron is withholding payment for 515 River Street job; city manager says attorney will respond

Oakwood Building Company told the Port Huron City Council on Oct. 14 that it has not been paid for work on the 515 River Street contract and requested that city officials review the contractor’s June pay application.

Ignacio Balsamo, president of Oakwood Building Company, said the firm has worked since 1989 and requested payment for the June application. His wife, Ashley Balsamo, also addressed the council and urged staff to review contract definitions and the project timeline; she asserted the company recycled materials rather than hauling them to a specific landfill and said that discrepancy is the basis for the city's withholding of payment.

City Manager James Freed responded in his administrative report that the city's attorney would respond to the company's letter, that contract violations alleged by the city are under review, and that the city stands by decisions made regarding contract enforcement. Freed also said the city has significant concerns about egregious contract violations on other projects and that the city attorney would follow up appropriately.

Oakwood representatives asked for clarification and prompt resolution because the unpaid contract has led to personal financial strain. Balsamo said, in sum, "I want to get paid and I need to get paid for that." The mayor asked the city manager to provide the council with an explanation of the contractor review and reasons for nonpayment.

No formal motion or vote was taken on the item during the meeting; the city manager indicated a written response from the city attorney would be provided.