Wadena County will receive money from a settlement agreement with the former manager of the Perham incinerator.
Wadena, Todd and Otter Tail counties and the city of Perham sued Barlow Projects Inc., former manager of Perham incinerator, claiming each county incurred damages. Wadena is part of a collaboration with other entities that burn waste at the incinerator.
At Tuesdays county board meeting, commissioners accepted a settlement that says Barlows insurer agrees to make payment to the counties and city of Perham not to exceed $808,881.89 total.
The counties and city will pay Barlow $220,000 by releasing funds held in escrow for Barlow for work provided at the incinerator, according to the settlement agreement.
Wadena Countys share of the roughly $800,000 hasnt been determined yet. But the payment will be split among the entities after attorney costs and special engineering reports are paid for.
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Under-represented expenses for steam production, incorrect projection of the cost per ton for waste costs and misrepresentation of electrical revenues and costs were among the issues outlined in the initial court records.
The counties entered into an agreement with Barlow in March 2001 and were told that the facility would be profitable and that steam would create enough cash flow to repay the bonds they had purchased to finance the incinerators design and construction, according to the complaint. The incinerator generates steam, which is sold to two companies in Perham.
The incinerator is now managed by the city of Perham. Deana Skov, solid waste/parks/planning and zoning director has said the incinerator is running well. An auxiliary boiler has been replaced at the incinerator and has allowed the facility to continue selling steam to other industries in Perham.
In other business, the board:
" Approved a recommendation to hire David Anderson as Wadena County veterans service officer. An interviewing committee of Commissioners Lane Waldahl and Dave Mattila, Auditor/Treasurer Char West and Jeff Burth of Minnesota Department of Veterans Affairs interviewed five candidates on Monday, and Anderson was the committees top choice. Commissioners approved offering the position to Anderson at 32 hours per week and $15.73 per hour.
" Accepted a tree planting bid from Reoh Forestry of Missouri to plant 13,500 trees for $945.
" Approved a conditional use application for Jesse and Sheila Finck to have a tubing and canoe operation from their property located in Bullard Township.
" Approved a 2006 contract with Widseth, Smith and Nolting for groundwater monitoring, reporting and annual surveying at the demolition landfill for $6,434.
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" Adopted a Wadena County Comprehensive Local Water Management Plan.
