§ 102-671. Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Coverage means the required minimum percentage by which net operating revenues, as defined in this section, must exceed the highest annual principal and interest payment on the debt instruments used to finance the project. Such coverage requirement shall be contained in a contract between the borrower and the lender.

Facilities or the project means the raw water intake, raw water supply lines, raw water reservoir, water treatment plant and other related appurtenances in Fulton County, to be jointly constructed, owned and operated by the parties to this division.

Indirect costs means those reasonable and necessary costs incurred for a common or joint purpose benefiting more than one cost object, and such costs are not readily assignable to the cost objectives specifically benefited without effort disproportionate to the results achieved.

Net interest rate means the aggregate interest rate for debt instruments with several principal maturity dates and several coupon interest rates. The net interest rate is determined by multiplying each principal maturity amount by its corresponding number of years to maturity; and dividing the sum of these products into the total interest (plus or minus discounts or premiums, respectively) to be paid over the entire life of such debt instruments.

Net operating revenues means those remaining revenues generated by the sale of potable water produced by the facilities after all reasonable and necessary direct costs (including depreciation) and indirect costs of operating and maintaining such facilities have been paid.

Operating costs means those reasonable and necessary direct costs (including depreciation) and indirect costs of operating and maintaining the facilities. Indirect costs shall be determined in accordance with generally accepted accounting principles. Depreciation shall be calculated on a straight line basis over estimated useful life.

Project costs means those costs which are reasonable and necessary for the completion of the project including, but not necessarily limited to:

(1)

The cost of acquiring land, rights-of-way and easements;

(2)

Amounts paid for materials, equipment, labor, bond issuance, professional and other services, insurance and bonds under contracts awarded in connection with the project;

(3)

Any additional staff within either government necessary for project administration and contract management; and

(4)

Payment for temporary utilities and utility relocations related to and incurred during the project-in-progress period as may be agreed to by Atlanta and Fulton County.

Project costs incurred by Atlanta and Fulton County shall be free of any and all handling charges or special fees beyond those normally included in the conduct of business within the respective governments.

(Res. of 5-28-86, § 1)

Cross reference

Definitions generally, § 101-2.