City official: South Willis project pushed to Jan.–Feb.; $2.1 million unauthorized withdrawal under audit

The council heard an update on a delayed street project and an ongoing financial audit. Laverne Wiggin asked about the timeline and penalties for the South Willis/South Broad Street project and whether missing contract penalties had been enforced. An unidentified city official said crews discovered a leaking water main during excavation, which required replacement and extended the work timeline.

"They are on target and feel very confident," the official said, adding that the contractor now estimates substantial completion on Jan. 14 and final completion on Feb. 14. The official said crews would complete pressure testing, finalize grading and proceed to paving once testing clears.

Wiggin pressed whether the original liquidated-damage penalties tied to the Oct. 1 completion date remained enforceable. The official said no liquidated damages have been enforced to date, the city agreed to grant an extension because of the water-main issue, and the original penalty "will be enforced" if the contractor misses the extended date.

Wiggin also raised media reports and public concern about a $2,100,000 shortfall in city funds. The unidentified official confirmed that a $2,100,000 unauthorized withdrawal has been identified and that auditors are investigating where the funds went. The official said, on the record, staff believe the funds were moved into the general fund for day-to-day operations but that auditors are still working to determine specifics.

The council did not take a formal vote on enforcement at the meeting. City staff said they would provide a precise penalty amount from the contract and report audit findings when available.

Next steps described by staff include completing testing of the replaced water main, finishing driveway and concrete work, and moving into final grading and paving. The official did not provide a date for when the audit findings will be concluded.