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Bunker Hill Village council approves ARPA MOU to obligate federal relief funds for water‑system work over lone dissent
Summary
The City Council voted 4‑1 on Nov. 19 to approve a memorandum of understanding intended to obligate American Rescue Plan Act funds for water‑system engineering and construction oversight; Councilmember Keith Brown opposed the MOU, calling its language problematic.
Bunker Hill Village’s City Council voted 4‑1 on Nov. 19 to approve a memorandum of understanding designed to obligate federal ARPA (CLFRF) funds toward evaluation, repair and replacement of the city’s water system.
The MOU lays out that the funds may be used for engineering, procurement, construction and related costs for water and sewer lines, treatment and pumping facilities, meters and hydrants. City staff told Council that Treasury guidance allows certain interagency agreements to qualify as an obligation for SLFRF purposes if they set specific deliverables, are assented to by parties and do not disclaim binding effect.
Why it mattered: the City must obligate its ARPA allocation by Dec. 31, 2024, and expend funds by Dec. 31, 2026. Bunker Hill Village received $976,964.69 in CLFRF funds; staff proposed using part of those funds to advance near‑term water infrastructure work that staff say is ready to proceed.
Council discussion and vote: City Administrator Gerardo Barrera presented the MOU and noted the project scope and the Treasury’s tests for an acceptable interagency agreement. Councilmember Keith Brown said he was dissatisfied with the MOU’s wording and questioned its necessity and enforceability as a legal instrument; his objection was recorded but did not carry the motion. Councilmember Eric Thode moved to approve the MOU, Councilmember Carl Moerer seconded, and the motion passed 4‑1 with Brown voting no. The record shows City Administrator Barrera left the room following the vote.
The MOU does not itself award construction funds to a contractor; it is intended to establish the City’s obligation of federal funds to a defined project so the City meets SLFRF rules. Staff told Council that Treasury would consider an interagency agreement to be an obligation if it sets a scope of work, is signed or otherwise evidences assent, and does not disclaim binding effect.
Next steps: Council subsequently approved a separate competitively bid construction contract to replace failing cast‑iron waterlines on Mayerling, Rhett and Tara; staff said they intend to apply ARPA funds toward that contract. The City must meet federal deadlines to avoid automatic lapse of unobligated funds.
