2024-10-Reallocation of Unspent ARPA Funds

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DocuSign Envelope ID: 367FCF1 C-76A5-40DB-805C-A6E1 CDEF2584 referred to COW 2/20/24 RESOLUTION NO. 2024-10 BY: Baker, Bullock, Kepple, Marx, Rader, Shachner, Strebig A RESOLUTION to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force after the earliest period allowed by law, authorizing the Mayor and/or Director of Finance or Director of Law to allocate all unspent funds from the American Rescue Plan Act ("ARPA") and all ARPA funds not, yet encumbered or contracted for expenditure for previously identified projects to the City's sewer and water projects for the modernization and construction of the City's water and sewer system; WHEREAS, the City of Lakewood received funds in the amount of $47,219,575 through ARPA; WHEREAS, since the passage of ARPA, the U.S. Department of Treasury has promulgated various sets of regulations governing the use of ARPA funds by municipalities; WHEREAS, certain of the City's previous allocations of ARPA funds may no longer fit within eligible uses of the funds under the evolving Treasury regulations; WHEREAS, it is necessary to reallocate these funds to other projects that fit within the eligible uses of ARPA funds; WHEREAS, the City faces the need for approximately $300,000,000 for Sewer Improvement Projects required by the Consent Decree among the City, Ohio Environmental Protection Agency, and the U.S. Environmental Protection Agency for sewer modernization and upgrade to its aging infrastructure; WHEREAS, based on the Treasury regulations, the City's direct investment in municipal sewer and water infrastructure projects is an eligible use of ARPA funds; WHEREAS, a reallocation of ARPA funds to the City's water and sewer projects reflects sound financial risk management and is in the best interests of the taxpayers of Lakewood; and WHEREAS, as set forth in Section 2.12 of the Third Amended Charter of the City of Lakewood, this Council by a vote of at least two thirds of its members determines that this Resolution is an emergency measure and that it shall take effect immediately, and that it is necessary for the immediate preservation of the public peace, property, health and safety, and to provide for the usual daily operation of municipal departments in order to prudently reallocate certain ARPA funds to best ensure their eligible use under ARPA; now, therefore, BE IT RESOLVED BY THE CITY OF LAKEWOOD, OHIO: Section 1. That all unspent ARPA funds and ARPA funds not yet encumbered or contracted for expenditure for previously identified projects are hereby allocated to the City's water and sewer projects to effect the modernization and construction of the City's aging water and sewer system.