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New Richland weighs legal options after water‑treatment contractor misses deadlines; council approves personnel and small grants
Summary
The city reported a partially paid water‑treatment contract where work remains incomplete; staff recommended withholding further payments and exploring legal remedies. Council also approved a pay‑grade increase for Deputy Clerk Heather Christensen, reimbursed the administrator for seminar lodging, and approved an EDA grant payout for New Richland Liquor.
New Richland — City staff reported at the April 13 meeting that a water-treatment contractor paid $9,121.33 of a $27,364 contract in April 2025 has repeatedly missed milestones and a March 18, 2026 completion date in a contractor letter. The city administrator said staff would not render further payment until the project is completed and recommended pursuing document review and a demand letter or legal action to recover funds already advanced.
"No further payment should be rendered until the project was completed," the administrator said during the administrator's report, noting work completed to date (a cabinet and some wiring) but a lack of definitive completion documentation. Council instructed staff to gather records, consider a demand letter, and to consult the city attorney on possible next steps.
Administrative items approved at the meeting included a personnel action to advance Deputy Clerk Heather Christensen to pay grade 3, step 7 (noted in the meeting as $26.90/hour) following her annual review; council members discussed budget timing and approved moving her as proposed and budgeting the remainder in the next fiscal cycle. The council also approved reimbursing the city administrator $80.82 for lodging to attend a financing seminar and approved an EDA grant payout for New Richland Liquor that had been previously approved by the EDA.
In other business, staff proposed contracting estimates to repaint a peeling cinder-block wall on the city hall addition (materials estimated under $10,000; an earlier labor estimate of $5,500 was discussed) and suggested a student mural contest tied to community partners; council asked staff to gather bids and return next month.
What happens next: Staff will gather contract documents and bills of sale related to the water-treatment work, consult the city attorney on recovery options, and return with recommended next steps. Personnel and small-grant actions will be reflected in the city's payroll and disbursement records.
