19750121 r-75-2RESOLUTION No.
R-75-2
RES~SUTION PROVIDING FOR ADDITIONAL CONTRIBUTIONS
FOR CONSTRUCTION OF A REGIONAL RAPID RAIL
TRANSIT SYSTEM
WHEREAS, on January 9, 1970, the City of Fairfax entered into
a Capital Contributions Agreement with the Washington Metropolitan
Area Transit Authority (WMATA) and others providing that capital
contributions to construct a regional rapid rail transit system
were to be made by local political subdivisions; and,
WHEREAS, said Agreement provides that the contributions re-
quired of each political subdivision be recomputed five years after
December 9, 1969, the date of the start of construction of the
transit system; and,
WHEREAS, WMATA has failed to fulfill the 1970 Capital Con-
tributions Agreement by not making this recomputation~ and
WHEREAS, WMATA is unable to make such recomputations at this
time; and,
WHEREAS, it appears probable from the best estimates presently
available that upon such recomputation the amounts previously paid
by the City of Fairfax may equal or exceed the share of capital
contributions to be allocated to it; and,
WHEREAS, said Agreement provides that no political subdivision
shall be required to pay capital contributions in an amount in ex-
cess of its allocable share of net project costs as then recomputed
pursuant thereto.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
Fairfax that the Mayor and the City Clerk be, and they hereby are,
authorized to enter into an agreement for and on behalf of the City
of Fairfax, substantially in the form attached hereto, with WMATA
pursuant to a resolution duly adopted thereby, providing for the
contribution of an additional amount toward said construction by
the City of Fairfax upon agreement by WMATA to recompute the capital
contributions required of the City of Fairfax on or before June 30,
1975, and to refund with interest at 6% per annum any portion of
such additional contributions determined to be in excess of the
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allocable share of net pro~ect co8t8 attr±b~table to the C±t~ of
Fairfax pursuant to such recomputation.
WHEREAS, the Washington Metropolitan Area Transit Authority
advises that it has been determined that funding of the construc-
tion program for Fiscal Year 1975, and the first six months of
Fiscal Year 1976, exclusive of funds required for facilities for
the handicapped, will require funds in excess of the sums specified
on the Capital Receipts Schedule in the aggregate amount of
$145,500,000 and $120,000,000, respectively.
WHEREAS, the Washington Metropolitan Area Transit Authority
proposes to raise said funds through the issuance and sale of its
revenue bonds in.the principal amount of $97 million during Fiscal
Year 1975, and in the principal amount of $80 million during the
first six months of Fiscal Year 1976, pursuant to Section 9(c) of
P.L. 92-349, which provides for the guarantee by the United States
of such bonds, conditioned upon 50 percent matching non-federal
grants.
WHEREAS, the Washington Metropolitan Area Transit Authority
has requested each of the parties to the Capital Contributions
Agreement and Guaranty Agreement to provide their allocable share
of the required matching grants.
NOW, THEREFORE, BE IT FURTHER RESOLVED that upon execution of
an agreement substantially in the form attached hereto on behalf of
the City of Fairfax and WMATA, in the event the Washington Metro-
politan Area Transit Authority issues and sells its guaranteed
revenue bonds as set forth herein and subject to the condition that
each of the parties to the Capital Contributions Agreement and
Guaranty Agreement other than the City of Fairfax, agrees to the ac-
celeration of their payments under said Agreements in accordance with
the revised Capital Receipts Payment Schedule, the City of Fairfax
agrees and consents to make a payment in the total amount of
$304,000.00, being the same amount which would have been required on
January 1, 1975, pursuant to the said Capital Contributions Agreement
if no recomputation had been required by said Agreement on
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December 9, 1974, and had the City of Fairfax consented to the ac-
celeration of payments thereunder as requested by WMATA.
Adopted: January 21, 1975
Attest:
- Ci~ C~e~k
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THIS AGREEMENT
made and entered into this 3Qth day of January , 1975, by and
between CITY OF FAIRFAX, VIRGINIA, a municipal corporation (herein-
after referred to as "City"), party of the first part; and the
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY, a body corporate
and politic created by interstate compact between Maryland, Virginia
and the District of Columbia (hereinafter referred to as WMATA),
party of the second part.
WHEREAS, on January 9, 1970, the City entered into a Capital
Contributions Agreement with WMATA and others, providing that capital
contributions to construct a regional rapid rail transit system were
to be made by local political subdivisions; and,
WHEREAS, section 3.3(a) of the said Agreement provides that
the capital contributions required from each political subdivision
will be recomputed on a date five years after the start of construc-
tion of the transit system, or July 1, 1974, whichever is the later
date; and,
WHEREAS, construction of the transit system began December 9,
1969; and,
WHEREAS, WMATA has not yet made the recomputation required on
December 9, 1974, because it has not developed the basic data for
making such recomputation, including the adoption of a fare structure
and the implementation of a revised financial plan to accommodate
certain cost overruns encountered in the construction of the transit
system; and,
WHEREAS, it appears probable from the best estimates of the
said basic data presently available that upon the making of the re-
quired recomputation, the capital contributions previously paid by
the City may equal or exceed the share of net project costs to be
allocated to it; and,
WHEREAS, section 3.3(f) of the said Agreement provides that no
political subdivision shall be required to pay capital contributions
in an amount in excess of its allocable share of net project costs
as then recomputed pursuant to section 3.3; and,
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WHEI~A$, the sa±d Agreement makes no prov±s±on for the refund
of e×cess contr±but±ons made by a s±ngle pol±t±cal subd±v±s±on e×-
cept ±nsofar as the aggregate amount of all cap±tal contr±but±ons
e×ceeds def±n±t±ve net project costs; and,
WHEI~A$, WMA~A des±res that the City make add±t±onal contr±-
but±ohs pend±ng the development of the bas±c data necessary to per-
form the sa±d reoomputat±on renu±red on Dece~er 9, 1974; and,
WHEREAS, the City is unwilling to make any such additional
contributions unless provision is made for the refund to it of con-
tributions in excess of its allocable share of net project costs as
required to be recomputed on December 9, 1974; and,
WHEREAS, section 12(e) of Article V of the Washington Metro-
politan Transit Authority Compact creating WMATA provides that WMATA
may "Receive and accept such payments, appropriations, grants, gifts,
loans, advances and other funds, properties and services as may be
transferred or made available to it by any signatory party; (or)
any political subdivision or agency thereof...and to enter into
agreements to make reimbursement for all or any part thereof"; and,
WHEREAS, section 12(f) of the said Compact provides that WMATA
may "Enter into and perform contracts, leases and agreements...with
any political subdivision or agency of any signatory party...";
and,
WHEREAS, the Mayor and Clerk of the City have been authorized
by a resolution duly adopted by the City Council to enter into this
Agreement for and on behalf of the City; and,
WHEREAS, the General Manager of WMATA has been authorized by a
resolution duly adopted by the Board of Directors of WMATA to enter
into this Agreement for and on behalf of WMATA.
Now, therefore, THIS AGREEMENT
W I T N E S S E T H,
that for and in consideration of the covenants and agreements herein-
after mentioned, to be kept and performed by the City and WMATA, and
upon the conditions hereinafter set out, the parties hereto do agree
as follows:
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1. WMATA will take action to develop the basic data necessary
to perform the said recomputation required on December 9, 1974, im-
mediately. It is understood that the development of such data in-
cludes the adoption of a fare structure and the implementation of
a revised financial plan to accommodate certain cost overruns en-
countered in the construction of the transit system.
WMATA agrees to recompute the capital contributions required
from the City in accordance with the development of the said basic
data on or before June 30, 1975.
2. Pending the development of the said basic data and re-
computation of the capital contributions required from the City as
hereinabove provided, the City shall make an additional payment in
the amount of $304,000.00, being the same amount which would have
been required on January 1, 1975, pursuant to the said Capital
Contributions Agreement if no recomputation had been required by
said Agreement on December 9, 1974, and had the City of Fairfax
consented to the acceleration of payments thereunder as requested
by WMATA.
3. Upon recomputation of the capital contributions required
from the City pursuant to section 1 hereof, any payments made by
the City in excess of its allocable share of net project costs as
then recomputed shall be refunded immediately to the City together
with interest at the rate of six per centum (6%) per annum from
the date hereof.
4. In the event that WMATA fails to recompute on or before
June 30, 1975, the capital contributions required from the City as
provided hereinabove, any and all payments made by the City pursuant
hereto shall be refunded immediately to the City together with in-
terest at the rate of six per centum (6%) per annum from the date
hereof.
5. Nothing contained herein shall constitute a waiver or
excuse of any breach of the Capital Contributions Agreement. It is
agreed that the City shall retain any rights, remedies or choses
in action which may now or hereafter possess and this agreement shall
not estop the City from pursuing such rights, remedies or choses in
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action in any such manner as it may deem appropriate, including the
prosecution of an action at law or in equity in any court of com-
petent jurisdiction against WMATA or others.
WITNESS the following signatures and seals.
(SEAL)
ATTEST:
CITY OF FAIRFAX, VIRGINIA,
a municipal corporation,
City ~lekk
By
(SEAL)
WASHINGTON METROPOLITAN AREA
TRANSIT AUTHORITY, a body
corporate and politic created by
interstate compact between Maryland,
Virginia and the District of
Columbia,
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