2023.05.15 RESO 2023-8 ARPA Funds for Roads

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CITY OF HUGO RESOLUTION 2023-8 RESOLUTION AUTHORIZING ROAD MAINTENANCE EXPENDITURES FROM THE AMERICAN RESCUE PLAN ACT FUNDS UNDER THE STANDARD ALLOWANCE ELECTED UNDER THE REVENUE LOSS PROVISION OF THE CORONAVIRUS LOCAL FISCAL RECOVERY FUND WHEREAS, Congress adopted the American Rescue Plan Act(ARPA) in March 2021, which included$65 billion in recovery funds for cities across the country. WHEREAS, In May 2021, the US Department of Treasury(Treasury)published the Interim Final Rule describing eligible and ineligible uses of funds, as well as other program provisions, sought feedback from the public on these program rules, and began to distribute funds. WHEREAS, $1,668,411.91 was received by the City of Hugo (City)pursuant to the ARPA. WHEREAS, on January 6,2022, Treasury issued the Final Rule. The Final Rule delivered broader flexibility and greater simplicity in the program,reflective of feedback in the comment process. WHEREAS,the Final Rule offered a standard allowance for revenue loss of up to $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation. WHEREAS,recipients that selected the standard allowance could use that amount, in many cases their full award, for general government services, with streamlined reporting requirements. WHEREAS, general government services generally include any service traditionally provided by a government, unless the Treasury has stated otherwise. The Final Rule provided that government services expressly recognized by the Treasury included,but were not limited to, (a) road building, road maintenance and other infrastructure; (b) general government administration, staff and administrative facilities; and (c)provision of police, fire and other public safety services. WHEREAS,the City,by virtue of Resolution 2022-18, elected to take the standard allowance available under the revenue loss provision of the American Rescue Plan Act in the amount of $1,668,411.91 to be used for the general provision of government services. WHEREAS,the City Council,has identified road maintenance projects,which in the judgement of the Council, qualifies as a permitted use of the ARPA Funds, in the direct support of the provision of governmental services, which consists of the Birch Tree Ponds Area Street Improvement Project and additional unexpected road maintenance projects that need to be completed due to the unprecedented freeze-thaw cycle that took place Spring of 2023 that wreaked havoc on City roads.