Title
Approval of a Resolution to authorize a loan from the Georgia Environmental Facilities Authority (GEFA) in an amount not to exceed $1,200,000 to finance the design and construction of the South Atlanta Street Waterline Project.
Presented by Stuart Moring, Director
Body
Item Summary:
This action authorizes execution of the required GEFA loan documents. The project consists of a 12" waterline construction along South Atlanta Street which was approved in November 2008. The project cost is estimated at $1,200,000 and the loan will provide for contingency funding of unforeseen events such as pipe removal costs. General terms of the loan include an interest rate of 3.89% per annum for 10 years, with an origination fee of 1%.
Committee or Staff Recommendation:
This loan application was approved by Mayor and Council at their regular meeting of November 17, 2008.
Financial Impact:
Upon approval of this action, the amount of expenditures for Fund 505, Cost Center 440C, Account 541420 and Project 09ENV016 will be authorized up to $1,200,000 to be recognized when received. Other Financing Sources for Fund 505, Account 393000, Proceeds from Long Term Liability will authorized up to $1,200,000, recognized when received.
The City's obligation to repay the loan will be in the form of a Promissory Note. The loan will provide for immediate fund availability and will be repaid over a 10-year term from Water system revenues, Fund 505, Cost Center 440C, Accounts 581100, Principal - Long Term Debt and 582100 Interest - Long Term Debt. The total amount of principal and interest each year is estimated at $145,041.48.
(over)
Presented by:
Stuart A. Moring, P.E., Director of Public Works/Environmental