Demorest manager outlines $441,071 ARPA spending plan; vote delayed while sewer‑bore contract is negotiated

Demorest — City Manager Mark Musselwhite presented a proposed set of projects the council could fund with American Rescue Plan Act (ARPA) dollars at the Nov. 12 meeting, but the council did not vote on the list pending resolution of a separate contractor dispute.

Musselwhite laid out estimated costs for proposed ARPA uses: SCADA $148,945; a water‑system model $73,000; a Toccoa connection $39,000; contribution toward a GEFA grant $40,000; purchase/installation of 17 fire hydrants $96,626; and fire department turnout gear, hose and storage $43,500. The total of those line items is $441,071.

Musselwhite told the council he was still in discussions with the sewer‑bore contractor to determine expenses if the city cancels that contract. City Attorney Thomas Mitchell said the contractor has asked the city to pay for half the cost of a machine the contractor purchased to complete the work and recommended staff negotiate terms with the contractor rather than immediately approving ARPA allocations tied to that contract. Musselwhite said the city must identify ARPA uses by Dec. 30, 2024.

Why it matters: ARPA funds are a limited, time‑sensitive resource; committing them without resolving outstanding contract liability could carry financial risk. The items presented would affect water and fire infrastructure in Demorest.

What happens next: Staff will continue negotiations with the sewer‑bore contractor; the ARPA spending list will return to council for action after the contract issues are clarified and staff can present final cost implications.