Terrell council authorizes emergency contract for water and sewer repairs behind QT; not to exceed $50,000

The Terrell City Council on Feb. 11 authorized the city manager to execute an emergency services contract for repairs to both a water line and a sanitary sewer near manhole MH4 behind the QT at 300 Highway 20, approving the contract in an amount not to exceed $50,000.

City staff told council heavy rains in January washed out soil under a water line and an adjacent sewer line at Kings Creek, causing the manhole to drop roughly 2 feet and prompting an immediate repair to stop a sanitary sewer overflow. Utility staff awarded immediate mobilization to a contractor with prior experience working for the city so crews could stop the leak and limit environmental exposure while staff completes final pricing.

Public Works and Utilities staff said the emergency work was already mostly complete at the time of the discussion; initial contractor invoices and staff checks put the current estimated cost at roughly $35,000. Council heard the staff recommendation to authorize the city manager to finalize contracts once the exact scope and price were known. Staff identified the funding source for the work as the city’s utility capital reserve (pay-as-you-go) fund.

Councilmembers pressed staff about how the not-to-exceed figure was chosen. Staff said they intentionally listed a larger ceiling ($150,000) on an earlier agenda posting to avoid delaying response while final scope was unknown. After updated contractor numbers arrived on Feb. 11, staff recommended lowering the authorization to $50,000; the mayor’s motion adopted that lower cap. Council also asked for a post-project report showing final costs, a breakdown of water versus sewer expenses and before/after photos.

The motion to authorize the city manager to execute an emergency contract with Elite Construction/Mulching (contractor name appears in packet/transcript with minor variations: “Elite Mulching,” “Elite Construction and Mulching LLC,” “Lehi Construction Mulching LLC”) carried unanimously with those present. Councilmembers were told emergency payments follow usual invoice and approval processes and are paid on standard city terms (typically 30 days once the invoice is approved).

Council asked whether the repair was a temporary “band‑aid” or a permanent fix. Staff said the work includes concrete encasement, raising and re‑setting the manhole, a new lid, bolting and ring, and encasing the water line across the sewer line to meet Texas Commission on Environmental Quality (TCEQ) requirements; staff described the work as intended to last for decades and to bring the installation in line with modern construction/permit standards.

Councilmembers asked staff to return a full closeout report to the council with final invoice amounts and photographic documentation.

Notes: the contractor mobilized under the city’s emergency procurement policy because the failured lines were actively leaking and causing environmental exposure; staff said three‑bid competition is typical for non‑emergency work but is not practical in acute emergency response.