E5. ARPA Grant Award Accept.Public Works
CITY OF-0V1%""k46201 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) Competitive Grant —
Round 2
Meeting Date: July 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 67t' 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 (LFRI 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 (MAG)— 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.
The City submitted Round 2 competitive grant applications in January 2022 for several water,
sewer, and wastewater treatment plant projects. On June 24, 2022, the Governor awarded the
City of Kalispell Competitive Grants for four projects. Projects, grant amounts, and city
matching funds are as follows:
1IPage
City Utility Projects Est. Cost
Competitive
Required Matching Amount
Grant
Kalispell Wastewater
WWTP
Treatment Plant Fermenter
$2,016,362
$1,000,000
$1,016,3621
Rehabilitation
Sewer
Kalispell Wastewater
Collection/
Treatment Plant Influent
$721,011
$347,957
$373,0542
WWTP
Pipe and Diversion
Structure Reconstruction
Sewer
Kalispell Sewer
Collection
Replacement on 1st and
$1,652,687
$694,000
$958,6873
2nd Ave EN to Nevada St
Kalispell Noffsinger
Water
Spring Water Source
$2,515,271
$1,000,000
$1,515,2714
Replacement
1. Matching funds are allocated in FY 22/FY23 WWTP Fund: line items 922/358/110/353
2. Matching funds are allocated in FY 22/FY23 WWTP/Sewer Funds (5310 &5311). Line items 110/950/353
3. Matching funds are allocated in FY 22/FY23 Sewer Fund: line items 110/210,218,231,345,373,528
4. Matching funds are allocated for FY 22/23 Water Fund: line items 355/925/110/353
FISCAL IMPACT: The projects require matching funds from the City as described in the
table above. All required matching funds have been allocated in the FY 22 and FY 23 budgets.
RECOMMENDATION: It is recommended Council accept the ARPA Grants for the
following projects and amounts:
1. Kalispell Wastewater Treatment Plant Fermenter Rehabilitation
a. Competitive Grant Amount: $1,000,000
2. Kalispell Wastewater Treatment Plant Influent Pipe and Diversion Structure Reconstruction
a. Competitive Grant Amount: $347,957
3. Kalispell Sewer Replacement on 1st and 2nd Ave EN to Nevada St
a. Competitive Grant Amount: $694,000
4. Kalispell Noffsinger Spring Water Source Replacement
a. Competitive Grant Amount: $1,000,000
ATTACHMENTS: Office of the Governor - ARPA Water and Sewer Letter of Awards
2 1 P a g e
OFFICE OF THE GOVERNOR
STATE OF MONTANA
GREG GIANFORTE
GOVERNOR
June 24, 2022
Doug Russell, City Manager
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
RE: Notice of ARPA Water & Sewer Infrastructure Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Infrastructure Competitive Grant award in the
amount of $1,000,000 for the Kalispell - WWTP Fermenter Rehabilitation Project.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
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 you
directly with more information in the upcoming weeks. In the meantime, if you have any questions,
please contact Samantha Kemp, the ARPA Grant Manager at the DNRC, at (406) 444-6477 or
samantha.kemp@mt.gov.
Sincerely,
GREG GIANFORTE
Governor
STATE CAPrroL • 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
GREG GIANFORTE
GOVERNOR
June 24, 2022
Doug Russell, City Manager
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
RE: Notice of ARPA Water & Sewer Infrastructure Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Infrastructure Competitive Grant award in the
amount of $347,957 for the Kalispell - WWTP Influent Pipe and Diversion Structure
Reconstruction Project.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
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 you
directly with more information in the upcoming weeks. In the meantime, if you have any questions,
please contact Samantha Kemp, the ARPA Grant Manager at the DNRC, at (406) 444-6477 or
samantha.kemp@mt.gov.
Sincerely,
7�5
GREG GIANFORTE
Governor
STATE CAPrroL • 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
GREG GIANFORTE
GOVERNOR
June 24, 2022
Doug Russell, City Manager
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
RE: Notice of ARPA Water & Sewer Infrastructure Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Infrastructure Competitive Grant award in the
amount of $694,000 for the Kalispell - Sewer Replacement on 1st and 2nd Ave EN to Nevada St
Project.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
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 you
directly with more information in the upcoming weeks. In the meantime, if you have any questions,
please contact Samantha Kemp, the ARPA Grant Manager at the DNRC, at (406) 444-6477 or
samantha.kemp@mt.gov.
Sincerely,
7�5
GREG GIANFORTE
Governor
STATE CAPrroL • 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
GREG GIANFORTE
GOVERNOR
June 24, 2022
Doug Russell, City Manager
City of Kalispell
201 1 st Ave E
Kalispell, MT 59901
RE: Notice of ARPA Water & Sewer Infrastructure Grant Award
Dear Doug Russell:
KRISTEN JURAS
LT. GOVERNOR
On behalf of the State of Montana, it is my pleasure to notify you that City of Kalispell has been
conditionally approved for an ARPA Water & Sewer Infrastructure Competitive Grant award in the
amount of $1,000,000 for the Kalispell - Replacement of Noffsinger Spring with a Water Well
Source Project.
Montana is leading the nation in making critical water and sewer infrastructure investments, with more
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 you
directly with more information in the upcoming weeks. In the meantime, if you have any questions,
please contact Samantha Kemp, the ARPA Grant Manager at the DNRC, at (406) 444-6477 or
samantha.kemp@mt.gov.
Sincerely,
7�5
GREG GIANFORTE
Governor
STATE CAPrroL • P.O. Box 200801 • HELENA, MoNTANA 59620-0801
TELEPHONE: 406-444-3111 • FAx: 406-444-5529 0 WEssrrE: www.MT.Gov