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Brentwood City Commission Agenda

Meeting Date:	06/12/2023
Res 2023-54 - Approval of American Rescue Plan (ARP) Grant Agreement with TDEC
Submitted by:	Chris Milton, Water & Sewer
Department:	Water & Sewer

Information

Subject

Res 2023-54 - Approval of American Rescue Plan (ARP) Grant Agreement with TDEC

Background

In 2021, Congress passed the American Rescue Plan (ARP) Act. This Act provided $1.9 trillion in federal funds to assist state and local governments across the U.S. with a wide range of activities. In August 2021, the State of Tennessee dedicated $1.35 billion of ARP funds allocated to the state by the U.S. Treasury for water, wastewater, and stormwater infrastructure projects. These funds are made available to local governments in the form of direct strategic project grants, competitive and non-competitive grants based on various eligibility criteria.

In 2022, the Water Services Department submitted an application for a non-collaborative grant in the amount of approximately $2.2 million dollars to aid in funding construction of the Carondelet neighborhood water line project. The Carondelet neighborhood water line replacement project includes replacement of approximately 20,000 feet of older water mains which was publicly bid in August 2022 with a contract awarded to Cunningham Construction in the amount of $4.9 million. Project costs above any available grant dollars are budgeted with Water & Sewer funds.

In April 2023, the City was notified that our grant application had been approved. Before grant funds are made available, the City must enter into a grant contract with TDEC, which obligates the City to all the terms and conditions outlined in the contract including commitment to fund the remaining project cost.

It should be noted, as staff discussed during the budget meetings with the Board, TDEC has yet to issue a final determination that Carondelet will qualify for the ARP funding. Although the Carondelet project was approved in the initial application submittal, the City awarded a construction contract prior to TDEC establishing the terms and conditions for qualifying a project. Specifically, TDEC issued project procurement guidelines that are more stringent than the City’s procurement policy or state procurement laws after the Board’s awarding of the Carondelet construction contract. The more stringent requirements are incorporated into the attached agreement. TDEC is working with the numerous grant applicants who initiated projects prior to their issuance of procurement guidelines this spring to reach a resolution. Should TDEC determine the procurement process for awarding the Carondelet project does not meet their minimum conditions, they have indicated that an amendment to this agreement would need to be executed to provide for a substitution project or projects procured per their requirements.

Should you have any questions, please contact Chris Milton.

Staff Recommendation

Staff recommends approval.

Fiscal Impact

Amount :	$2,201,675.15
Source of Funds:
Account Number:	412-16700-8053

Fiscal Impact:

Execution of this agreement is required for receipt of over $2.2 million in ARP funds through the TN Department of Environment and Conservation. The necessary remaining city funding for the Carondelet project is already programmed in the Water and Sewer Fund capital budget.

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Attachments
Resolution 2023-54
COB Contract # 2023-090
Signed Resolution
Signed Contract