A veteran Minneapolis firefighter who became the face of I-35W bridge rescue efforts last summer has won an $8,500 legal settlement from the city.

Fire Capt. Shanna Hanson said that former Fire Chief Bonnie Bleskachek defamed her in a radio comment about a fight between two fire captains at a fire scene. The comment also violated data practices law, she said.

A one-shift suspension issued to Hanson will be rescinded and material will be removed from her disciplinary record, under the settlement approved Friday by the City Council. Hanson alleged that the suspension resulted from the other captain having a previous personal intimate relation with Bleskachek.

Hanson is the firefighter who strode into the river with just a life preserver and a rope securing her to the shore after the bridge collapsed, trying to locate survivors in shredded vehicles.

In other action Friday, the council:

• Approved a new street resurfacing program that's designed to pave the city streets sooner and cheaper. But the new surface of up to two inches of asphalt will last just 10 to 15 years, compared with more thorough renovations, which are lagging.

City engineers say they won't apply the technique to streets clearly needing more work. Most residents will pay about 75 percent of the cost through assessments on their property of about 16 cents per square foot.

• Imposed new license conditions on Gabby's Saloon and Eatery, 1900 Marshall St. NE., in response to years of community complaints about parking issues and behavior problems created by weekend patrons of the bar.

The sanctions include a $10,000 penalty and a $15,000 charge for police time, submission of a plan to control operating and livability issues, and the elimination of free drink specials. The council delayed imposing a 438-patron limit on the bar until there's court direction on whether that's legal.

• Approved Mayor R.T. Rybak's nomination of Susan Segal as city attorney, and recognized Jay Heffern, who served in the job for 11 years. Heffern was cited for overseeing the city's legal approach in winning more domestic violence convictions, settling the Hollman public housing desegregation case, ending 30 years of federal oversight of firefighter hiring, settling the American Iron lawsuit involving a riverfront metal shredder and winning an airport noise settlement. Heffern credited his staff.

Steve Brandt • 612-673-4438