City to pursue default judgment, at no cost

by Peter Jakey-Managing Editor

There was discussion at the July 7 meeting of the Onaway City Commission regarding the most prudent steps needed to collect a default judgment from the wastewater treatment plant engineer, Wilcox Professional Services.

The city filed lawsuits against the contractors involved in the construction of the plant when 9,000 gallons of ferric chloride was released between 2006 and 2010. The spill was discovered by city workers in October 2010.

The city prevailed in its suits. “We since have received a settlement from Glawe and their insurance company,” said mayor Gary Wreggleworth. Glawe Inc. of Alpena constructed the plant for the city.Wilcox ran into financial difficulties and never made a payment.

“So, our discussion was do we want to collect that ourselves or use the law firm we used who was our co-counsel on the lawsuit,” said Wregglesworth.

The city has decided to allow the law firm attempt to collect it and that firm will receive a percentage.

“They have more expertise at collecting that kind of thing and to not put more burden on our city attorney,” said Wregglesworth.

City manager Joe Hefele was looking for support of the concept, short of requesting a formal motion.

“We want to do it in a way where the city is not going to be paying anything, unless the money is collected,” said Hefele. “We won’t be paying anything, if nothing is brought in. I know from working with Mike in two different communities, we hav

e him stretched pretty thin, to dramatically be involved in this process.”

“It takes the risk off of us,” the mayor added.

Commissioner Bernie Schmeltzer believes a “thank you” letter needs to be sent to the lead attorney involved in the case as well as the firm Clark Hill and Associates.

City attorney Mike Vogler did not believe a motion was needed at the time. Ferric chloride is an acid used by the city to keep phosphorous in check within its lagoons. City workers discovered in October that an underground line, meant to carry ferric from the plant building to the lagoons, was cut.

The city believes the line was cut between 2003 and 2005, during the construction of the plant. Wilcox was employed by the city to design the plant and provide construction inspections.