ARPA funds discussed at Lewes joint meeting

Awarded nearly $1.8 million in funds from the American Rescue Plan Act, the City of Lewes, along with the Lewes Board of Public Works, discussed the best way to use those monies during a joint meeting March 28 at the Rollins Community Center.

Lewes, having already received half of the funds and expecting the other half later this year, has until the end of 2024 to obligate the funds to projects and must spend them by the close of 2026.

All members of mayor and council and the BPW were in attendance. Lewes City Manager Ann Marie Townshend began by discussing the very specific guidelines for ARPA funds’ use, which cover: premium pay related to COVID, revenue replacement, COVID mitigation, and water and wastewater infrastructure. The first two options were considered unnecessary, but Townshend discussed using ARPA funds related to COVID mitigation for such things as economic development to address homelessness and assist with affordable housing. 

When the focus turned to using ARPA funds for water and wastewater infrastructure, the BPW provided a list of capital improvement projects, and Mayor Ted Becker acknowledged some projects could possibly be completed in the 2022-23 time frame. BPW President Preston Lee said that list had also been sent to Delaware’s Department of Natural Resources and Environmental Control. 

BPW General Manager Austin Calaman said while the state has been allocated about $925 million, Lewes BPW has not received any of that money and has instead been pushed toward the new infrastructure bill, which focuses more on water services as opposed to wastewater management, something the BPW is currently strong in.

Calaman also expressed disappointment that there was less funding for clean water as opposed to drinking water, because the department already has money earmarked for clean water in projects such as pumping station improvements. BPW acknowledged there is potential to fund certain projects through infrastructure bill funds, but they don’t have a lot of the water projects that the bill is designed to help finance.

Charlie O’Donnell, a City of Lewes and BPW engineer, said applications to receive a portion of the $315 million being disbursed over the next five years are due Monday, April 25, and suggested completing and submitting as many applications as possible.

He said DNREC’s financial division will review all pre-applications and he believes recommendations will be made at the division’s June meeting. If any of Lewes’ submissions are chosen, DNREC will ask for a full application.

O’Donnell said in both the sewer and water projects, roughly 49 percent of the money must be in grants or principal forgiveness. A total of $40 million over five years has been made available statewide for sewer projects, while $90 million over five years has been made available for statewide water projects.

Lee noted that 51 percent of the money would have to be paid back, but that might be at a low interest rate. Panetta highlighted the potentially large BPW FY 2023 budget and pointed out that several Lewes issues could be helped by accepting the combination of grant and low-interest funding.

According to O’Donnell, with the money being made available, in addition to the $8 million already set aside, there could be a windfall of funds to help satisfy the needs of the aggressive budget.

One of the top budget priorities is the BPW’s ongoing headworks project, which Calaman would like to expand, following a study by consultant GHD and considering rising inflation. The BPW is seeking $1.3 million in funding to continue the project.

Another big priority, described by Calaman as similar to the ongoing Pilottown Road project, is a $14 million Cedar Street revitalization that would improve water and sewer infrastructure. Stormwater could also be approved, at a separate cost. The Cedar Street project will likely tie into another project, a potential joint venture aimed at cleaning up stormwater and fixing drainage at Lewes Beach and on surrounding roads. Officials discussed the possibility of using ARPA funds for the Lewes Beach project.

Repairs to Park Avenue and Johnson Avenue were discussed, but a study is needed to determine the priority level for the piping in the area, which could date from the 1940s and 1950s. O’Donnell said pipes can last a long time, and they would need to look at the condition before moving the project up or down on the priority list.

Officials ultimately agreed it was important to have as many infrastructure funding applications done as possible due to competition with bigger governments like Wilmington, Kent County and Sussex County, as well as western Sussex municipalities.

O’Donnell said he had already submitted several proposals to the Water Infrastructure Advisory Council, and he is familiar with the scoring system used to prioritize projects. Becker believes it will be a very competitive process across the state, and only the most urgent issues will be selected as priority projects.