drafter
Clerk 09/29/2006
Title
AN ORDINANCE authorizing the King County executive to enter into amendments to King County's agreements for sewage disposal.
Body
STATEMENT OF FACTS:
1. King County provides or will provide sewage treatment and disposal service to approximately thirty-six cities, special districts and other entities ("local agencies") in western King County, southern Snohomish county and northern Pierce county through long-term agreements for sewage disposal ("basic agreements").
2. These basic agreements, most of which terminate in 2036, have provided the security for the King County wastewater treatment system bonded debt.
3. King County's preferred term for its wastewater system debt is approximately thirty-five years. This debt term corresponds to the projected life of the assets to be financed, allows King County to take advantage of favorable long-term interest rates and minimizes the impact of the debt on the annual sewer rates and sewage treatment capacity charges when compared to shorter-term debt.
4. King County is proposing to the local agencies an extension of the basic agreements so that they will remain in full force and effect until July 1, 2056. This will allow those agreements to constitute security for thirty-five-year debt as King County finances wastewater system improvements contemplated in its Comprehensive Water Pollution Abatement Plan. Timely conclusion of the extension process is extremely important as King County prepares for major debt issuances in 2007, 2008 and 2009 to finance significant elements of its Comprehensive Water Pollution Abatement Plan. The impact of issuing the debt planned for 2007 and 2008 with terms that match the current expiration date of the agreements is twenty-eight cents on the county's monthly sewer rate and three dollars on the monthly capacity charge when compared to thirty-five-year debt.
5. King County is also proposing amendments to the basic agreements that will enabl...
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