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Committee reviews $245,839 judgment payment tied to PAC renovation dispute
Summary
City treasury and public-works staff told the Public Works Committee that a proposed resolution would authorize payment of $245,839.08 to Construction Enterprises Inc. and counsel to satisfy a judgment arising from Tulsa Performing Arts Center lobby renovation disputes.
City treasury and public-works staff told the Public Works Committee that a proposed resolution would authorize payment of $245,839.08 to Construction Enterprises Inc. and several law firms to satisfy a judgment in case number CJ20232334 related to renovation work at the Tulsa Performing Arts Center (PAC).
Chad Becker of Treasury told the committee, “there is a sufficient cash balance in the sinking fund to pay this judgment,” and said the city would advance the payment ahead of levy placement and forward paperwork to the county for repayment over three years.
City staff described the underlying dispute as a construction-defect case arising from lobby renovations contracted for just under $2 million. Paul Zachary of Public Works said the contractor’s work produced workmanship disputes with subcontractors and with the city, and that the matter proceeded to mediation with an independent architect to assess what work was complete.
“Through mediation and with the help of city legal, we’re able to do so,” Zachary said. He told the committee the mediation split some findings in the city’s favor and some in the contractor’s favor and that the settlement figure represents the amount payable under the mediated resolution.
Staff said the settlement will pay subcontractors and resolve outstanding claims while project funds remain to complete the PAC’s unfinished work. Zachary said future contracting for the remaining work will be advertised and bid and will not be given away to the original contractor’s surety if possible.
Councilors pressed staff about whether the $245,839.08 amount was part of the original renovation contract and whether the lobby work was complete. Staff said the figure comes from the settlement and is to be paid from sinking-fund monies; the underlying contract amount was “just under $2,000,000” and the city did not pay the contractor for incomplete or deficient work.
Why it matters: The payment resolves a court-approved judgment and clears a disputed chapter in a public cultural facility’s renovation. Staff emphasized there are sufficient funds to pay the judgment and funds to finish the PAC work, and that mediation allowed subcontractors to be paid and reduced litigation risk.
No formal council vote on the resolution appears in the committee transcript; staff stated the resolution carries an emergency clause and will be on the council agenda later the same day.
