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Gardner City council OKs transfer of about $3.3M in ARPA funds for wastewater project
Summary
The council authorized an interagency agreement allowing the City Administrator to transfer roughly $3.3 million in American Rescue Plan Act funds to the wastewater fund for a Southeast Carter area infrastructure project; construction is delayed pending environmental review.
The Gardner City Council voted to authorize the City Administrator to execute an interagency agreement that will allocate approximately $3,300,000 in American Rescue Plan Act (ARPA) funds to the city's wastewater fund to support a wastewater infrastructure project serving the Southeast Carter growth area.
Matt, addressing the council, said, "The 2021 American Rescue Plan Act, also known as ARPA, provided the city with approximately $3,300,000 from the coronavirus state and local recovery fund. These funds must be obligated by 12/31/2024, and they must be spent by 12/31/2026." He also noted that "the U.S. Treasury has clarified that a recipient may enter into an interagency agreement... and treat those funds as obligated for purposes of the state and local recovery fund." The council moved and approved the authorization by voice vote; an abstention was recorded and the motion was declared passed.
According to the presentation, the project includes a gravity interceptor, a new lift station and a force main to connect the new lift station to the existing sanitary sewer infrastructure at the South Lift Station. Staff told the council the city had planned to award a construction contract this year but that process has been delayed by an environmental review.
Under the interagency agreement the city will obligate ARPA funds and transfer them from the ARPA grant fund to the wastewater fund in accordance with the approved budget; staff recommended the City Administrator be authorized to execute the agreement.
Votes at a glance: - Consent agenda: approved by voice vote (Aye; one abstention noted). Motion passed. - New business — authorize City Administrator to execute ARPA interagency agreement: motion approved by voice vote; abstention noted; motion passed.
What happens next: Staff will proceed with executing the interagency agreement and obligating ARPA funds to the wastewater fund. The council was told environmental review remains a barrier to awarding the construction contract this year, and no construction schedule was finalized during the meeting.
