LNV Engineer Jose DeLeon said some sewer lines are lower than the lift station, causing a negative vacuum that sends gas back up in a line going to the Refugio Shopping Center.
The gas is affecting the offices of Dr. Gary Wright and the Appraisal District.
The measure was passed unanimously.
The council also awarded Grant Works the bid to manage the $300,000 Community Development Block Grant that will replace tanks and upgrade the water system.
LNV Engineering was awarded the engineering bid on the project.
Also, the council approved creating a second police sergeant position within the Refugio Police Department.
The current sergeant has become the Refugio school district campus resource officer.
The new position would mean a $600 a year raise for an existing police officer within the department.
The council also approved a proposed tax rate of 86 cents for every $100 of property value.
The council set Sept. 3 and Sept. 10 for public hearings on the proposed tax rate.