Cook County News Herald

City agrees to $57,500 pool settlement




Grand Marais city councilors voted July 25 to sign a settlement agreement with Burbach Aquatics, ending a legal dispute that precluded the city’s participation in the planning and development of a new community center.

As outlined by City Attorney Chris Hood, the agreement stipulates that the city will pay $57,500 to settle Burbach’s claims that it was entitled to provide professional services related to the pool project (which will be part of the new community center) based on the terms of a 2005 contract it had with the city regarding “repair, renovation or replacement” of the Grand Marais municipal swimming pool.

Although Cook County has been moving the planning process forward with the development of preliminary plans for a new community center and aquatics facility, the city has refrained from participating in that process on the attorney’s advice while the litigation was ongoing. On Hood’s advice, council adopted a resolution stating that the city had taken no action regarding the planning of a new facility, and that the city had in fact abandoned and/or suspended the project as of May 2008.

Council voted in May of this year to initiate the litigation, and in June served Burbach with a complaint for declaratory judgment to have certain provisions of the contract thrown out. The May 9 resolution also affirmed the city’s “desire to support the Cook County community center’s future operations and maintenance…in an annual amount not to exceed the $156,000 average annual net operating loss the city incurs in operating and maintaining the city’s municipal swimming pool.” At that point, the county had put the project on hold pending a decision that would allow the city to take part in the planning process.

The document signed last week states that “Burbach and the city now agree to a full and final settlement of all claims arising out of the contract and the project to which the contract related, and to the termination of the contract.” The dollar amount was based on what the city attorney believed it would have cost had the matter gone to court; a much larger settlement amount had been suggested by the Wisconsin firm.

In addition, the agreement contains a “mutual nondisparagement” clause which states that the parties agree not to “disparage or defame each other in any respect or make any negative comments concerning their business relationship or the matters that were or could have been alleged in any lawsuit that could have been or has been commenced regarding the matters covered by this agreement.”

In other business:

Grand Marais Public Library Director Linda Chappell and Library Board President David Quick presented the library’s proposed 2013 budget request, a 4.4 percent increase over the current year. Under the terms of the joint powers operating agreement, if the increase is less than 5 percent, the county is also required to approve the budget; although the city owns the building, the city and county each pay half of the cost of operation.

The library officials noted that the increases are due to higher utility costs of the recently expanded building; additional hours for the part-time clerk occasioned by increased usage of the library by the public; and acquisition of materials now that there is more space to accommodate them.

Council approved the $273,722 proposed 2013 budget, which amounts to an approximate $5,500 increase for the city.

Parks Manager Dave Tersteeg gave an update of DNR plans for improvements to the public access boat launch located in the campground near the public works garages and noted that the park board had passed a motion of support for concept plans July 3. There was a lot of discussion about what would be moved where, and in the end the matter was referred back to the park board to come up with “more definition” on alternative locations for things such as an events pavilion, parking lot and boat launch.

However, council did go on record as supporting the “very preliminary” plan. Tersteeg said the plan will be further revised and brought back to council.

On Tersteeg’s recommendation, council voted to hire Laurel Maruska as a part-time front desk clerk at the campground.

After listening to complaints from Diane Nowers on behalf of her neighbors about loud late-night outdoor music which she called “deafening” and “unbelievable,” council directed City Administrator Mike Roth to visit the offending establishments and remind them of the terms of the ordinance which was revised two years ago.

Councilor Tim Kennedy pointed out that the tavern owners knew that the ordinance was provisional when it was adopted, and they agreed to police themselves and be responsible. Obviously, others said, if there are still so many complaints, they are not holding up their end of the deal.

Roth said if the complaints persist, council’s only options are to ban outdoor music altogether, change the permitted times in the ordinance, or to use meters to measure (and enforce) sound levels.



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