City approves $5.78 million settlement over aquatic center construction defects

The Newport City Council approved a settlement resolving construction‑defect claims related to the city’s aquatic center, authorizing a $5,781,000 payment and directing the city manager to execute the settlement agreement.

Parks and Recreation Director Mike Kavanaugh reviewed the project’s timeline: architect selection in 2014, contractor engagement in 2015 and opening in 2017. During the COVID period the city discovered construction defects and undertook inspections, testing and mediation. Kavanaugh said the city engaged outside counsel (Volyn & Wilkinson) and mediation assisted in reaching a negotiated figure.

Kavanaugh told the council the city pursued multiple rounds of mediation and arrived at a settlement threshold of $5,781,000; the presentation credited the city’s attorney and mediator for bringing the parties to agreement. Councilor Emond moved to approve the settlement with Pavilion Construction Northwest, LLC, et al., for $5,781,000 and to authorize the city manager to execute the agreement; the motion was seconded and the council approved the settlement by voice vote.

Councilors praised staff and counsel for resolving a long‑running dispute. No further procedural steps were described in the hearing beyond authorization for the city manager to sign.