City attorney: mediation yielded low offers; discovery and depositions advance case after alleged $32 million river damage

City Attorney Tom briefed the board on litigation stemming from damage to river infrastructure, saying recent mediation produced offers far below the city's position but new discovery and depositions have revealed previously unknown information.

Tom said a federal magistrate oversaw mediation before Christmas and that the opposing side "came back with, virtually nothing." He added the court granted the city's motion to compel discovery in part and that depositions are being scheduled, which "puts us into a bit of a better case." Tom said the opposing company, Marquette, is still contending it has "no liability to speak of," despite causing what Tom described as $32,000,000 in damage to one of the locks and dams on the Arkansas River.

Tom also told the board the city is "under a federal mandate to get this done or face fines up to $30,000 a day," which the city cited as a reason to continue repairs while litigation proceeds. Board members asked whether pursuing grant funding would reduce damages recoverable in litigation. Tom said grant awards "should not impact anything dealing with the award of damages" but cautioned a state grant could seek reimbursement if the state paid for repairs.

Tom said the city was working with outside counsel, that additional discovery had revealed "interesting information," and that, if the city's question with the league over payment amounts is resolved, the settlement will be on the Feb. 3 agenda for possible approval.