OK I grinded just against where the head was sitting flush to get the head off so there is still a bit of metal before that weld I can file flat and ill put a bronze washer on. Thanks for the help!I'm sure a file will work fine. As long as you don't go through the weld to the inner sleeve on the frame completely. If you do, id suggest welding it again and machining it back to near flat/square again. This pivot on the frame will see a good deal of stress. Think of the stress it has when the axle moves and pushes on it. There is a lot of leverage and force being applied.
A bronze washer is probably a good idea either way.
A side note, the picture you took looks like it is close. The original weld was just inside where you cut. Looks like the sleeve was put through the frame bracket and welded. I'm not an expert, but if you don't grind into the welded area, you should be good.
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