E2. Acceptance of ARPA GrantsPublic Works
CITY OF-0V1%""k46 201 lst Avenue East-
ALISPELL Kalispell, Montana 5991
Phone (406) 758-7940
Report To: Doug Russell, City Manager
From: Susie Turner, PE, Public Works Director
Subject: Acceptance of American Rescue Plan Act (ARPA) Minimum Allocation
Grant and Competitive Grant
Meeting Date: January 18, 2022
BACKGROUND: The American Rescue Plan Act (ARPA) was signed into law March 11,
2021 to address the COVID-19 pandemic. The ARPA provides state and local aid to make
necessary investments in water, sewer and storm infrastructure. The 67th Montana Legislature
passed House Bill 632 which directed the federal funds available for use in Montana and
established how the funds can be distributed. There are three sources of funding the City may
receive associated with ARPA eligible water and sewer projects.
1. Local Fiscal Recovery (LFR.) Funds — Directly allocated to the City based on CDBG
formula. Kalispell is estimated to receive $6,274,867.
2. HB 632 State Fiscal Recovery Funds - Minimum Allocation Grant (MAGI Directly
allocated, noncompetitive, based on gas tax formula. Match is required to receive MAG.
Kalispell is directly allocated $3,554,001 and the required match is $1,568,717. LFR
funds may be used for match.
3. HB 632 State Fiscal Recovery Funds - Competitive Grant— up to $2 million / project.
Match amount is required and will be a factor in the funding decisions, in addition to
project description, problem and solution, level of readiness, project schedule and budget.
Grant allocation ranking and preference will be based on four areas.
a. Public Health and Safety — uses existing SRF ranking scheme (documented risk)
b. Readiness to Proceed — hired an engineer, planning complete, construction to begin
in 24 months
c. Affordability — rates vs median household income (MHI)
d. Match —LFR, MAG, and local government funding sources can be used as the
match.
Each funding source has prescribed requirements for the application, schedule, and completion
process. For all funding sources funds must be obligated by December 31, 2024 and spent by
December 31, 2026. Obligated is defined as contracted and ready to be spent.
1IPage
The City submitted grant and funding applications on July 15, 2021 for several water, sewer, and
storm projects in consideration of the City's capital improvement plan, ARPA project eligibility
requirements, and ranking criteria for the competitive grant.
On October 8, 2021, the Governor awarded the City of Kalispell Competitive and Minimum
Allocation Grants for Water, Sewer, and Stormwater projects. Projects, grant amounts, and city
matching funds are as follows:
Competitive
Minimum Required
Grant
City Utility Projects Est. Cost'
Allocation Matching
Grant Amount
(MAG)
Replacement of Original
Sewer and 1920s Era Water and $7,122,718
$2,000,000
$3,554,001' $1,568,717'
Water Sewer Mains in Downtown
Kalispell
WQ Treat Unit -Main and
Storm Wyoming St Outfall — $755,532
$377,766
$377,7663
MS4 TMDL Action Plan
WQ Treat Unit Ashley
Storm Creek Drainage - Pt Ave $1,056,528
$528,264
$528,2644
W and 8th Ave W— MS4
TMDL Action Plan
1. Kalispell's maximum MAG allowance will be applied to the water/sewer project. Adjustment from
original application of $3,460,715 to $3,554,001 will be approved in January 2022.
2. Matching funds are allocated in ARPA Local Fiscal Recovery Fund.
3. Matching funds are allocated in FY 22 Storm Fund: line items 954/956
4. Matching funds are allocated for FY 22/23 Storm Fund: line items 969/356/358
FISCAL IMPACT: The projects require matching funds from the City as described in the
table above.
RECOMMENDATION: It is recommended Council accept the APRA Grants for the
following projects and amounts:
1. Replacement of Original 1920s Era Water and Sewer Mains in Downtown Kalispell
a. Competitive Grant Amount: $2,000,000
b. Minimum Allocation Grant: $3,554,001
2. WQ Treat Unit -Main and Wyoming Street Outfall— MS4 TMDL Action Plan
a. Competitive Grant Amount: $377,766
3. WQ Treat Unit Ashley Creek Drainage - V Ave Wand 8th Ave W— MS4 TMDL Action Plan
a. Competitive Grant Amount: $528,264
ATTACHMENTS: Office of the Governor - ARPA Water and Sewer Letter of Awards
2 1 P a g e
GREG GIANFORTE
GOVERNOR
October 8, 2021
Doug Russell
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
OFFICE OF THE GOVERNOR
STATE OF MONTANA
THE S
T
RE: Notice of ARPA Water & Sewer Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that the City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Competitive Grant award in the amount of
$2,000,000.00 and Minimum Allocation Grant award in the amount of $3,460,715.00 for the Kalispell
Replacement of Original 1920's Era Water and Sewer Mains in Downtown Kalispell Project.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
than 80 percent of them supporting our rural communities. Projects such as this help address the critical
water and sewer infrastructure needs of our local communities, allowing them to prepare for long-term
growth and take action to address immediate community needs. I appreciate the planning and dedication
that your community has taken to advance this critical project, so that all Montana communities and
families may thrive.
Please note that pursuant to section 28 of HB 632, if a local government awardee or any of its authorized
agents have health regulations related to COVID-19 that are more strict than those imposed by the state
in effect at the time a grant is awarded, the grant will be reduced by 20 percent. In your application, you
were required to certify whether relevant regulations were in effect. Please update the Department of
Natural Resources and Conservation (DNRC), in writing, if that has changed between the date you
submitted your application and the date of this award letter.
Staff at the Montana Department of Natural Resources and Conservation (DNRC) will contact the City
of Kalispell directly with more information in the upcoming weeks. In the meantime, if you have any
questions, please contact Erin Wall, the ARPA Program Manager at the DNRC, at (406) 444-3022 or
erin.wall@mt.gov.
Sincerely,
GREG GIANFORTE
Governor
STATE CAPITOL • P.O. Box 200801 • HELENA, MoNTANA 59620-0801
TELEPHONE: 406-444-3111 • FAx: 406-444-5529 0 WEBsrrE: www.MT.Gov
OFFICE OF THE GOVERNOR
STATE OF MONTANA
THE S
GREG GIANFORTE
GOVERNOR-
0
October 8, 2021 `
Doug Russell
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
RE: Notice of ARPA Water & Sewer Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that the City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Competitive Grant award in the amount of
$377,766.00 for the Kalispell Stormwater Quality Treatment Facility- Main and Wyoming Street Outfall
to the Stillwater River Project.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
than 80 percent of them supporting our rural communities. Projects such as this help address the critical
water and sewer infrastructure needs of our local communities, allowing them to prepare for long-term
growth and take action to address immediate community needs. I appreciate the planning and dedication
that your community has taken to advance this critical project, so that all Montana communities and
families may thrive.
Please note that pursuant to section 28 of HB 632, if a local government awardee or any of its authorized
agents have health regulations related to COVID-19 that are more strict than those imposed by the state
in effect at the time a grant is awarded, the grant will be reduced by 20 percent. In your application, you
were required to certify whether relevant regulations were in effect. Please update the Department of
Natural Resources and Conservation (DNRC), in writing, if that has changed between the date you
submitted your application and the date of this award letter.
Staff at the Montana Department of Natural Resources and Conservation (DNRC) will contact the City
of Kalispell directly with more information in the upcoming weeks. In the meantime, if you have any
questions, please contact Erin Wall, the ARPA Program Manager at the DNRC, at (406) 444-3022 or
erin.wall@mt.gov.
Sincerely,
GREG GIANFORTE
Governor
STATE CAPITOL • P.O. Box 200801 • HELENA, MoNTANA 59620-0801
TELEPHONE: 406-444-3111 • FAx: 406-444-5529 0 WEssrrE: www.mT.Gov
OFFICE OF THE GOVERNOR
STATE OF MONTANA
THE S
GREG GIANFORTE
GOVERNOR-
0
October 8, 2021 `
Doug Russell
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
RE: Notice of ARPA Water & Sewer Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that the City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Competitive Grant award in the amount of
$528,264.00 for the Kalispell Stormwater Treatment Facilities Project -Priority Ashley Creek Drainage
Basins from TMDL Action Plan.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
than 80 percent of them supporting our rural communities. Projects such as this help address the critical
water and sewer infrastructure needs of our local communities, allowing them to prepare for long-term
growth and take action to address immediate community needs. I appreciate the planning and dedication
that your community has taken to advance this critical project, so that all Montana communities and
families may thrive.
Please note that pursuant to section 28 of HB 632, if a local government awardee or any of its authorized
agents have health regulations related to COVID-19 that are more strict than those imposed by the state
in effect at the time a grant is awarded, the grant will be reduced by 20 percent. In your application, you
were required to certify whether relevant regulations were in effect. Please update the Department of
Natural Resources and Conservation (DNRC), in writing, if that has changed between the date you
submitted your application and the date of this award letter.
Staff at the Montana Department of Natural Resources and Conservation (DNRC) will contact the City
of Kalispell directly with more information in the upcoming weeks. In the meantime, if you have any
questions, please contact Erin Wall, the ARPA Program Manager at the DNRC, at (406) 444-3022 or
erin.wall@mt.gov.
Sincerely,
GREG GIANFORTE
Governor
STATE CAPITOL • P.O. Box 200801 • HELENA, MoNTANA 59620-0801
TELEPHONE: 406-444-3111 • FAx: 406-444-5529 0 WEssrrE: www.mT.Gov