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Fairhope will move forward with safe-room work despite temporary FEMA reimbursement lapse
Summary
Staff told council the FEMA period-of-performance for a hazard-mitigation safe room expired June 20 because of federal processing delays; staff recommended issuing a notice to proceed so contractors can mobilize while the city seeks a POP extension and reimbursement, and council expressed conditional agreement.
City staff updated council on a FEMA hazard-mitigation grant to build a roughly 4,200-square-foot first-responder safe room on the PCON campus and said the project is important to provide shelter and staging for utility and public-works response during high-wind events. Staff explained that, because of federal delays after a partial government shutdown, the project's FEMA period of performance (POP) expired on June 20 and FEMA had not yet issued an extension.
Staff warned the council that "we cannot submit any reimbursements for funds expended on this project between the time that we expired on the 20th until we get the new one," but that once FEMA issues the POP extension the city can file for reimbursement for the interim expenditures. Staff said the contractor is ready and compliance work is largely complete; issuing a notice to proceed would let the contractor mobilize but it could be 30–45 days before the first pay request is submitted.
Council members discussed the financial exposure of paying contractor invoices ahead of formalized federal approval. Staff said they were comfortable moving forward and cited precedent (other municipalities in the county are proceeding) and ongoing work with the state's EMA and the federal delegation to secure timely processing. The worst-case scenario, staff said, would require heightened effort by the city's federal delegation to obtain reimbursement — staff described this as a paperwork and timing risk, not a categorical denial of funds.
Staff described the safe room as a high-wind-rated facility that can be used for daytime training and meetings when not used as shelter, and noted the larger grant could cover up to $2.2 million while the constructed amount was reported to be roughly $1.8 million and came in under the estimate.
Ending: Council expressed general support for issuing the notice to proceed while staff continues to pursue a POP extension; staff will proceed with contract management and return to council for any pay requests as required by procurement rules.
