Thursday, February 2, 2012

Mayor signs Utilities lines of credit

Posted By on Thu, Feb 2, 2012 at 4:48 PM

Steve Bach
  • Steve Bach
Mayor Steve Bach has signed off on lines of credit for Colorado Springs Utilities, after initially refusing to do so.

Bach's refusal to sign the documents was first reported by the Independent here. At the time, Bach said he felt uncomfortable signing the documents, which held Utilities and the city potentially liable for millions, without knowing much about them.

But his refusal to sign was tantamount to a veto, despite the fact that the City Charter specifically excludes the mayor from Utilities decisions. Lawyers consulted by the Independent said the mayor may not have had the right to refuse to sign, as reported http://www.csindy.com/colorado/mayor-may-not/Content?oid=2417024.

Mayor Bach signed Utilities line of credit documents today

In his role as Chief Executive Officer of the City of Colorado Springs, Mayor Steve Bach has signed revised documents for Colorado Springs Utilities’ lines of credit. The Mayor requested a review of the lines of credit, while also asking that the process be competitively bid. After consultation with Colorado Springs Utilities’ management as well as a legal review and amendments, the Mayor was willing to sign the documents.

“This was a business decision made by the City Council in its capacity as the Utilities Board. I signed the documents after the language in the documents was changed to ensure that The City of Colorado Springs has no contingent liability for this indebtedness,” said Mayor Bach.

Today the documents signed renewed a $50 million line of credit and created a new $25 million line of credit. With two previous $25 million lines of credit, this brings the total line of credit for Colorado Springs Utilities to $125 million.
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