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Thorp council denies Pay Application #25 amid delays as audit notes federal funding for wastewater project
Summary
Council heard a 98.7% complete update on the new wastewater treatment plant, approved a clean FY2024 audit noting federal funding, and voted 5-0 to deny Pay Application #25 from Staab Construction Corporation citing missed completion timelines and financial impacts.
Mayor Richard Wnek presided over the council meeting where Short Elliott Hendrickson engineer David Walter reported the Wastewater Treatment Plant project is 98.7% complete, with punch-list work remaining.
Amber Danielski of Clifton Larson Allen LLP reviewed the city’s FY2024 audit and said a Special Audit had been required because the city received federal funds over audit thresholds, largely loans and grants tied to the wastewater plant; she reported a clean opinion after working with departments. Clerk/Treasurer Michele Pogodzinski had earlier reviewed the city’s financial reports and noted sewer numbers may shift in the plant’s first year of operation.
Alderperson Abramczak pressed for clarity on the project’s final completion date, noting the project had been slated to finish in October 2024 but was delayed because sludge spreading could not occur in winter; the work moved to spring 2025, which Abramczak said has caused lost revenue for the city and the farmer renting the land. Following that exchange, the council moved to deny Resolution 2025-05-01, which would have approved Pay Application #25 from Staab Construction Corporation. The motion to deny (mover: Abramczak; second: Rosemeyer) passed on a roll call vote, 5-0.
Council separately approved resolutions declaring official intent to reimburse expenditures from borrowing, including a general borrowing resolution and two targeted declarations for the State of Wisconsin Environmental Improvement Fund – Clean Water Fund Loan Program and the Safe Drinking Water Lead Service Line Program; those motions passed unanimously. Council also approved Resolution 2025-05-05, adopting the 2024 Consumer Confidence Report for the water utility.
The council’s actions leave contract payment for Pay Application #25 unresolved in terms of contractor receipts; the denial reflects council concern about timetable and associated fiscal impacts. The audit and reimbursement resolutions aim to preserve the city’s ability to finance and document expenditures related to the plant project.
What happens next: council has denied payment approval for Pay Application #25; staff and the city’s project manager will need to report back with schedule and payment clarifications before a subsequent payment action can proceed.
