The Sherman city council approved a project on Tuesday that will make use of its new stormwater utility fee. The council awarded a bid and authorized the execution of a contract with Vessels Construction for the Setting Suns Drainage Project Phase 1.

Information in the city’s agenda packet shows that the Setting Suns Estates neighborhood came into the city in 1968 through annexation and since that time, its residents have experienced periodic flooding. The construction project awarded is aimed at stopping that flooding through proper design and construction. The project will be completed in phases and the council awarded the contract for the first phase this week.

The project will cost $175,631 and will be paid for using the city’s storm water utility fee. That fee collects $1 a month on city utility bills from customers with one equivalent residential unit, which works out to about 3,400 square feet of impervious area. Customers with less than that amount of impervious area on their property pay less than $1 and those with more pay per equivalent residential unit that they have on their property. City staff have estimated the fee will bring in $458,000 per year for infrastructure projects.

The first phase of the project, according to previous statements by city staff, will include a flume down the center of the subdivision and then future phases will involve some culvert crossings and some ditch repair work.

Herald Democrat Managing Editor William C. Wadsack contributed to this report.