The Stillwater City Council approved Monday an agreement to reimburse Alpha Omicron Pi for almost $179,000 to replace an old two-inch water line with a new eight-inch water line during construction of the sorority's new house.
Stillwater Mayor John Bartley said the sorority is paying to have the water line replaced on its property and will pay for a water replacement that city would have to have done near their property as well.
"We had already had plans to replace the water lines in that area including that block where they are located," Bartley said. "It is an old two-inch water line that is not providing adequate supply to that area. "They are actually to pay for and build not their only their stuff but the whole new water line going down Pine to Sixth Street. The City is going to reimburse them for the city's part of it. They are doing the work and we are going to pay them back."
The Council also approved a resolution which allows Stillwater Medical Center to refinance old debt and borrow almost $5million extra to cover the cost of purchasing the Warren Clinic last summer.
Bartley said borrowing at a much reduced interest rate of 1.69 percent and reducing the term to five years will probably save the hospital authority almost $4.5 million.
"For them this a very smart business decision because it refinances the debt and cuts the maturity from a 10-year payback to a five-year payback," he said. "The reduced interest rate and reduced payback time will result in an almost $4.5 million savings in interest expense."