By Rich Larson
The Northfield City Council has agreed to pay $25,000 to settle a threatened lawsuit stemming from construction of a new culvert along the Mill Towns Trail.
The council unanimously approved the settlement following a closed session Tuesday night. City Administrator Ben Martig said the contractor had initially sought approximately $178,000 for additional costs and delays it claimed resulted from increased water flowing into the construction area.
The culvert work was part of the Wall Street Road project, a cooperative effort between the City of Northfield and Rice County.
Martig said the dispute developed after the city removed a beaver dam upstream from the construction site as part of its regular stormwater maintenance. The removal released water that had accumulated behind the dam while the contractor had the culvert construction area open.
The contractor maintained that the additional water flooded the work area, causing delays, additional work and other expenses.
The city, however, disputed responsibility for those costs. Martig said the construction contract specifically required the contractor to have adequate dewatering and pumping capacity available at the site, and the city maintained those requirements had not been fully met.
After consulting with attorneys and the League of Minnesota Cities Insurance Trust, city officials negotiated the $25,000 settlement.
Mayor Erica Zweifel said the council was not pleased about using public money to settle a disputed claim, but had to weigh that expense against the potential costs and uncertainty of litigation.
Zweifel said settling a claim of approximately $178,000 for $25,000, with no admission of fault and a full release from future claims, was the most prudent financial decision available to the city.
Martig said the project came in under budget and still has contingency money available. The $25,000 will therefore be paid from funds already allocated to the project, and the city will not seek additional money from Rice County.
Martig acknowledged that better internal coordination could have prevented the problem, particularly regarding the timing of the city’s beaver dam maintenance.
Despite the dispute, Martig said the overall Wall Street Road project went smoothly and should improve vehicle and pedestrian safety while also enhancing the appearance of the area.
Rich Larson is the owner and General manager of KYMN Radio. Contact him at rich@kymnradio.net
