Council approves $75,000 contract for stormwater utility feasibility study

After an earlier work-session briefing on drainage utilities and billing methodologies, the Sunnyvale Town Council on April 13 approved a contract with NewGen Strategies and Solutions to perform a feasibility study for a stormwater (drainage) utility. The contract amount was described by staff as not to exceed $75,000.

Matthew Garrett of NewGen presented “Stormwater 101,” explaining the statutory vehicle (Local Government Code §552, Subchapter C), the proposed cost-of-service approach based on impervious-area analysis, and recommended deliverables: a GIS impervious-data layer, an impervious-area billing dataset, and a feasibility report outlining potential rates and an adoption timeline. Garrett said a typical study timeline is about 120 days and that the study provides a 'go/no‑go' decision, not an immediate adoption of a new fee. “It is a user fee‑based program…we would develop an impervious dataset and a drainage billing dataset,” Garrett said.

Councilmembers asked whether fees would be imposed by council action or by voter approval; Garrett and staff said adoption is a council decision with statutory notice requirements and public hearings. Council also discussed the balance between capital projects and ongoing operations, and staff noted that a feasibility study would help the town align potential fees with specific drainage uses and grant opportunities. After discussion, Councilmember Finch moved and Councilmember Garland seconded approval of the contract; the motion passed 6–0.