American Sewer Services lost contracts for a job at 25th and Wells -- where the KKK sticker was spotted -- and another bid for a project near 45th and Wells.
American Sewer Services also agreed to waive their right to protest or appeal the decision
The company's owner did not appear at the meeting, and the Council also approved a motion to subpoena the owner to appear.
Council members are also investigating whether the company can be barred from doing city contracts in the future, but as of now, they will still be allowed to bid.
The DPW commissioner said the company still has up to three contracts still open with the city.
Last month, the owner released a statement saying they're updating company policies to bar workers from carrying guns on project sites in Milwaukee.