Staff recommends that Council approves three ARPA grants for $2 million each and a combined total of $6 million and authorizes the Mayor to sign the grant Agreements. 

The American Rescue Plan Act (ARPA) of 2021 provides state and local aid to make necessary investments in water and sewer infrastructure.  The Montana State Legislature passed HB 632 which directed the federal funds available under ARPA for use in Montana.  One of the grants established in HB 632 is the Competitive Grant Program.  To qualify for this Program, projects must be eligible under the Drinking Water State Revolving Fund or Clean Water State Revolving Fund which includes projects for treatment, transmission and distribution, source, storage, collection, reuse, and stormwater.  Further, projects must primarily address existing deficiencies rather than provide capacity for growth.  During the first round of Competitive grants, the City was awarded $2 million for each of the following projects:

• 2021 Water Main Replacements
• West End Plant and Raw Water Delivery
• Influent Lift Station

The grant Agreement for the 2021 Water Main Replacement project is attached.  DNRC is still working on the other two grant agreements.  The remaining agreements will be ready for the Mayor's signature by February 28, 2022 and will have the same terms as the attached agreement.

City Council may:

• Approve the three ARPA grant Agreements in the amount of $2 million each; or,
• Not approve.  If not approved, the City will be unable to receive the $6 million in grant awards.

The three projects that were awarded grant funds were included in the 5-year Capital Improvement Plan and already in progress.  Thus, no additional funds are required for the match.  The grant awards provide $4 million of revenues to the water fund and $2 million to the wastewater fund.