Drafter
Clerk 06/17/2004
Title
AN ORDINANCE authorizing the executive to enter into an agreement with the state Public Works Board regarding loan financing of the Hidden Lake pump station.
Body
BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Findings:
A. King County is constructing capacity improvements to its Hidden Lake pump station system consisting of replacement of the pumping station, construction of a new upstream storage pipeline, and replacement of the downstream Boeing creek trunk.
B. The capacity of the said system will be increased from four million three hundred thousand gallons per day to five million five hundred thousand gallons per day and the risk of sewage overflows during rainstorms will be greatly reduced. The new pump station will be more reliable, will meet current codes and design practices and will include odor and noise control.
C. King County has been offered a low interest loan from the state Public Works Trust Fund to finance $10 million of the $26,870,500 million cost of the project. Entering into a loan agreement with the state Public Works Board for $10 million at an interest rate of one-half of one percent will save King County $11,987,946 in interest costs over thirty-five years (approximately $3,106,003 present value) when compared to conventional bond financing.
SECTION 2. The executive or the executive's designee is hereby authorized to enter into an agreement with the state Public Works Board, substantially in the form of
Attachment A to this ordinance, for $10 million in loan financing for the Hidden Lake pump station project, total costs of $26,870,500.