Loading...
R-14-63 RESOLUTION NO. R-14-63 A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A PAYMENT AGREEMENT IN AN AMOUNT NOT TO EXCEED $19,000,000 TO SATISFY THE CITY'S OBLIGATION DUE TO FAIRFAX COUNTY WATER AUTHORITY PURSUANT TO THE TERMS OF THE JANUARY 3,2014 ASSET PURCHASE AGREEMENT AND PROMISSORY NOTE WHEREAS, the City of Fairfax, Virginia (the "City") and Fairfax County Water Authority (FCWA) are parties to an Asset Purchase Agreement, dated January 3, 2014, pursuant to which FCWA acquired certain water system assets of the City (the "Agreement"). In connection with the transactions described in the Agreement, the City made and delivered to FCWA a Confessed Judgment Promissory Note, dated January 3, 2014; and WHEREAS, the Note provides that the City must (i) begin making interest payments commencing on the fifth anniversary of the Note, and (ii)pay all unpaid principal, interest and other sums due thereunder on the seventh anniversary of the Note. The Note permits, but does not require, the City to prepay the amounts due under the Note at any time; and WHEREAS, FCWA has requested that the City prepay the Note so that FCWA can fund certain operations relating to its water system, and the City has agreed to prepay the Note, all in accordance with the terms of this Payment Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fairfax, Virginia, that the City Manager is authorized to negotiate and execute a Payment Agreement with FCWA in an amount not to exceed $19,000,000 to satisfy the City's obligation due to FCWA pursuant to the terms of the January 3, 2014 Asset Purchase Agreement and Promissory Note, to be in a form approved by the City Attorney. Adopted this 23`d day of September, 2014. ca), Mayor ATTEST: City Clerk The vote on the motion to approve was recorded as follows: VOTE: Councilman DeMarco Aye Councilman Greenfield Aye Councilmember Loftus Nay Councilman Meyer Aye Councilmember Miller Aye Councilmember Schmidt Aye