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Fairhope council approves multiple infrastructure contracts and financing steps, including $14M pipeline grant application and a $30M short-term warrant
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Summary
Council approved staff requests to pursue a $14 million PHMSA pipeline grant, awarded a $1.89 million contract for a FEMA-funded hurricane safe room, authorized design and CE&I contracts for sidewalks, and approved a term sheet to extend and increase short-term financing to $30 million while the city prepares longer-term bonds.
At its April 13 meeting the Fairhope City Council approved a package of infrastructure, grant and financing steps intended to complete utility replacements, sidewalk improvements and an emergency safe room.
Utility staff asked for and received authorization to apply for a U.S. Department of Transportation / PHMSA pipeline safety and modernization grant to fund remaining cast-iron replacement phases. "This is just for you to give us an opportunity to go out and ask for $14,000,000 from the government," Wes said during the work session; council later voted to authorize submission of that grant application.
Council also awarded the hurricane safe-room construction contract to Roy Lewis Construction with a bid not to exceed $1,891,800. Staff said FEMA had budgeted $2,740,000 for the project and that the facility, located at the Pecan Building parking area, will shelter first responders and include generator, kitchen and shower facilities.
Engineering contracts for sidewalk work were approved: a not-to-exceed $25,000 design contract to Sawgrass Consulting and CE&I services to Neil Schafer (not-to-exceed $36,892.58) for projects that are 80% MPO-funded with a 20% local match.
On municipal finance, the council approved a term sheet to extend short-term borrowing previously arranged through Webster Bank, increasing the facility from $25,000,000 to $30,000,000 and extending maturity six months. Finance staff said the additional liquidity will bridge cash flow while staff pursues longer-term bond financing, and that the team will assess bank and municipal-market options before a permanent decision.
All the above items were approved by council vote. Staff said many projects are grant-supported or already in the capital program; final contracting and budgeting steps will follow normal procurement and grant-administration procedures.
