Staff recommends that City Council approve the resolution authorizing staff to apply for State of Montana Competitive Grant funds.

The American Rescue Plan Act (ARPA) distributed money to state governments to spur economic recovery.  The State of Montana passed HB 632 which establishes the parameters for distribution of the State's ARPA funds.  One of the state grants established in HB 632 is the State Competitive Grant Program. The City can apply for multiple grants up to a ceiling of $25M per project. HB 632 limits the funds to water, wastewater, and storm water infrastructure projects.  Water and wastewater projects should meet drinking water standards and reach portions of the city that are needing improvements or build pipelines and storage to meet usage needs. This includes failing treatment or distribution systems and should address water quality or pollution. Storm water is also an option and should focus on projects that address pollution so that the water can be treated and reused in an efficient and safe manner. 

Additionally, the State requires a match from the local government and a higher match means greater approval odds. There will be a “ranking” system for competitiveness that will be based on the match amounts, readiness to proceed, water and wastewater affordability, and how well the projects meet drinking water or clean water state revolving fund criteria.  As Billings is competing against other cities and counties, this project(s) should demonstrate a high level of necessity.  The timeline allows Billings to be able to pay for projects retroactively going back to March 3rd of 2021. The state competitive grant applications will need to be submitted by the July15, 2021.

Both water and wastewater have many projects included in the Capital Improvement Plan (CIP).  After review of the ranking system, staff selected projects that would score the highest for both water and sewer.  The criteria strongly favors projects that address existing deficiencies. The projects being planned for grant application are:

• Influent Lift Station (wastewater)
• Zone 6 Reservoir and Redundant Line (water)
• Water Storage Improvements Zone 1 (water)
• Staples Reservoir (water)
• West End Distribution and Treatment Plant (water)
• 2021 and 2022 Water Rehabilitation (water)

While there are many projects in the CIP that are important, these projects most closely meet the criteria of the competitive grant program.  A resolution authorizing staff to apply for these funds is required.  

City Council may:

• Approve the resolution authorizing staff to apply for ARPA State Competitive grants; or,
• Not Approve the resolution.  If the resolution is not approved, the City will not apply for ARPA State Competitive Grant funds.

ARPA grant funds up to $25M per project can be applied for up until July 15, 2021.  Each project must have a match for the grant funding.  City staff is planning to apply for several projects based on the July 6, 2021, City Council Work Session.  At that meeting, the list of projects for application will be determined.