Red Oak council approves voluntary annexation, awards Pier Street sewer contract and OKs $373,450 settlement

The Red Oak City Council on a unanimous vote approved a voluntary annexation, awarded a low bid for a Pier Street sanitary sewer project and authorized a settlement related to a contractor default, while hearing departmental reports on finance, public works and public safety.

The council adopted Ordinance 24-043 to voluntarily annex about "395.44422 plus or minus acres" into the city limits and incorporated an attached service plan. Mayor opened and closed the public hearing and the measure passed on a 5–0 roll call after staff displayed maps showing parcels already inside city limits and those proposed for annexation.

Council also adopted Resolution 24-105 to award a contract for the Pier Street 10-inch sanitary sewer project. Jared Benford, the city's director of public works, said the project runs about "2,300 linear feet" along Pier Street and that the city received seven bids; the lowest was from LA Banda LLC at about $816,000, well under the $1.5 million budgeted for the year. Benford said the low bid plus a 10% contingency will still leave savings for future impact projects. "This project is about 2,300 linear feet running along Pier Street," Benford told council.

Public Works also reported completion of an EPA-required service line inventory that identified 31 galvanized service lines on the system; staff said galvanized lines are not lead but can absorb metals from earlier fittings. Benford said the city will notify affected residents by the end of the week and that 29 of the 31 had already been replaced on the city side, leaving two city-side replacements to plan.

After an executive session under Texas Government Code §§551.071, .072 and .087, the council returned and moved to approve items pulled from the consent agenda (items 14–16) and then considered a motion presented by city counsel and management to approve a settlement agreement among Hargrove Development, Western Surety (the performance bond holder) and the City of Red Oak related to a contractor default. The agreement calls for payment in the amount of $373,450 payable to the city and Hargrove, with authorization for the city manager to sign releases after review by the city attorney; the motion was made and seconded.

Council also approved routine consent items (items 1–13) and appointments to boards and commissions, including library advisory board changes and a reappointment to the Parks & Recreation Commission. Finance staff reported sales tax collections up about 10.25% year-to-date and building permit revenues at roughly 231% of budget; the city reported overall general-fund revenues and expenses remain within budgeted ranges.

The meeting concluded after votes and administrative reports; council members indicated no outstanding questions on the major items and adjourned after approving the listed measures.