The Deer Park City Council has voted to settle a dispute with Halme Construction over the city’s aeration lagoon project. The decision was made during a special City Council meeting on August 27, where city leaders chose mediation over litigation to resolve the matter. 

A disagreement between the City of Deer Park and Halme Construction regarding charges for the city’s aeration lagoon project has been resolved. The Deer Park City Council recently voted to settle a dispute that had centered on an outstanding bill of $124,700, which Halme Construction believed was owed to them. Following mediation, both parties reached an agreement that the city would pay a settlement of $50,000 to avoid the potential costs and risks associated with going to court.

The settlement was approved by the council in a 6-1 vote.

When contacted for comment, a representative from Halme Construction declined, stating that he did not believe there was a story to be told.

In a social media post, Council Member Jason Upchurch stated, “The city decided to settle with the company we used to create our aeration lagoon… Both parties entered into mediation and agreed to settle the dispute with Deer Park paying Halme $50k.” In an interview after the August 27 meeting, Upchurch also implied that the core of the issue was a differing interpretation of the contract’s terms. He stated that he understood council member Fred Senn’s sentiment and reasoning for his no vote on the settlement.

In a separate phone interview on August 28, Council Member Fred Senn explained his position on the matter. According to Senn, the dispute arose because Halme Construction hired a subcontractor to remove old solid waste; however,  a miscalculation resulted in an extra sum being owed to the subcontractor. Senn stated that Halme did not submit a change order for the additional cost. He voted against the settlement because he believed the city should have continued to negotiate for a lower amount and that the risk was worth it. He also expressed a broader concern that contractors should avoid underbidding projects with the intent of making up the profit margin through change orders.

Both Upchurch and Senn agreed that the financial implications of taking the case to court were significant. They estimated that the city’s legal costs would exceed $100,000, and this amount would not be recoverable even if the city were to win the case. The council members also noted that it is standard for the city to expect contract costs to vary within 1-5% of the total original bid.

Sources:

• Facebook Jason Upchurch – Deer Park Councilman’s DPGazette.com/4emdx Accessed August 28th, 2025
• Interview Jason Upchurch August 27th, 2025
• Phone Interview Fred Senn August 28th, 2025