East Lyme — The committee charged with deciding how to dole out $3.79 million in federal pandemic relief aid wants to spend $3.23 million on town projects and services, with the remainder going directly to small businesses or nonprofit organizations.

A report released Wednesday by the American Rescue Plan Committee includes big ticket Public Works Department requests on the town side for $750,000 to recoat the water tank on Boston Post Road and $600,000 to upgrade the Niantic sewer pump station. The projects were based on informal estimates, according to documents provided by the committee, and would have to go through the bid process if approved for funding.

The East Lyme Police Department asked for $466,161 to switch to police department radio hardware that's compatible with the state communications system. Police Chief Mike Finkelstein said the quote from Utility Communications, the town's vendor for all communications systems, does not have to go through the bid process.

The funding, part of the $1.9 trillion American Rescue Plan that funnels $2.6 billion to municipalities in Connecticut to help respond to the coronavirus pandemic, is administered according to guidance from the U.S. Department of the Treasury. The municipal advocacy group Connecticut Conference for Municipalities, or CCM, released an explainer of the dense, 437-page treasury department document to help put into context the various ways money can be used by the state's 169 cities and towns.

CCM described the program not only as a way to address economic recovery, but also to "address long-term issues that haven't been adequately dealt with before, while balancing ever-changing local needs with declining support from the state and federal governments."

The committee was established by the Board of Selectmen on Jan. 5. That's after officials, under the leadership of former First Selectman Mark Nickerson, allocated the first $1.6 million of the town's overall $5.46 million allocation on what were identified as immediate needs, including a roof for the public safety building and the reconstruction of one of the town's wells.

The committee report said the committee prioritized public safety, mental health and social services, and utility infrastructure when evaluating projects in order to narrow down a $5.45 million list of requests from Town Hall department heads.

Out of the $461,945 allocated by the committee for small businesses and nonprofits, the committee allocated $33,000 for three small businesses while the rest went to nonprofit groups. The committee rejected seven small-business applications and one application from a nonprofit organization.

The report said the committee's eight members — representing selectmen, finance board members, small businesses, nonprofit organizations and the community at large — calculated a score for each application before deciding whether to accept or reject it.

Subcommittee member Pandy Wohler, during a presentation at Wednesday's Board of Selectmen meeting, said applications were rejected due to factors including insufficient information, previous funding or for not fitting into the committee's focus on making a "direct and timely impact on a larger number of people."

She said committee members agreed the goal was "economic recovery, not economic development."

Member Aileen Cahill told selectmen the committee put together an application for small businesses and nonprofit organizations and developed a process for getting the word out. The applications were released on the town website on Jan. 30 with an application deadline of Feb. 22.

Publicity included public service announcements on the town's cable channel and a message on the electronic bulletin board outside the Town Hall, according to the report. Members said the Niantic Main Street organization promoted the applications on social media and through an email blast.

Committee member Rich Steel, who represented the Board of Finance, said the committee evaluated the $1.56 million in requests from businesses and nonprofits before it evaluated the town projects.

"And so they weren't slighted by any lack of money. The slight that did occur, though, is that for a town our size, we only received 30 applications," he said. "We made a good-faith effort to get out there, to be transparent, to have the public be aware, but I think we missed the boat on some aspects."

He said a longer window to submit an application and more outreach to the public is needed.

Members also recommended allocating $75,000 for emergency management if future pandemic needs arise and $25,000 for legal fees and administrative costs, according to the report. That leaves $5,206 unappropriated.

Municipalities have until the end of 2024 to decide where the money is going, and two years after that to actually spend it.

Selectmen will vote on the committee's recommendations at their next meeting on April 6.

e.regan@theday.com