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HomeMy WebLinkAboutReso 235-05 BARTDublinPleasantonStation RESOLUTION NO. 235 - 05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ***************** APPROVING A FUNDING AGREEMENT AMONG THE BAY AREA RAPID TRANSIT DISTRICT, THE ALAMEDA COUNTY SURPLUS PROPERTY AUTHORITY, THE CITY OF DUBLIN AND THE CITY OF PLEASANTON REGARDING THE WEST DUBLIN~LEASANTONSTATION WHEREAS, the Bay Area Rapid Transit District ("BART") owns certain property within the City on which it intends to construct a new West Dublin/Pleasanton station with parking and other facilities ancillary thereto (collectively, the "West Station"). BART will issue bonds (the "Bonds") to finance all or a portion of the construction of the West Station. In order to issue and sell the Bonds, BART must establish certain debt service reserves. WHEREAS, in connection with constructing the West Station, BART intends to ground lease and/or sell adjacent property owned by BART for development of hotel, apartment, retail or office facilities (the "Development Project"), which is expected to result in significant additional tax and fee revenue and other benefits to the Alameda County Surplus Property Authority, the City of Dublin, and the City of Pleasant on (collectively the "Funding Parties"). WHEREAS, BART intends to pay (i) debt service on the Bonds from sales tax revenue and from required debt service reserves, and (ii) operating, repair and maintenance costs attributable to the West Station using funds from its general fund. BART intends that funds paid for such debt service and such operating, repair and maintenance costs will be replenished from revenues derived from the West Station, such as fares and parking revenues, and from funds contributed to BART by the Funding Parties. WHEREAS, BART has asked the City, in consideration of BART issuing the Bonds for construction of the West Station, to contribute to BART an amount equal to $2,500,000, which funds would be used to establish sufficient debt service reserves. The other Funding Parties have been asked to make similar contributions. BART proposes that these contributions would be repaid by BART in the future provided that revenues derived from the West Station are adequate to pay the debt service and operating expenses. WHEREAS, BART and the Funding Parties have prepared the draft Funding Agreement attached hereto as Exhibit A and incorporated herein by this reference that sets forth the terms and conditions of the funding to be provided by the Funding Parties and the repayment thereof: ifany, by BART. WHEREAS, It is anticipated that certain minor changes to the Funding Agreement may be made prior to its being executed by each of the parties. NOW, THEREFORE BE IT RESOLVED THAT, the City Council of the City of Dublin does hereby find that the commitment of $2,500,000, which is anticipated to come from Tri-Valley Transportation Development Fees, will facilitate the construction of the West Station by making funds available to assist with debt service and that any use of such funds for operating, repair and maintenance costs is necessary in order for BART to agree to issue bonds for construction of the West Station; and Reso #235-05, Adopted 12/20/05 Page 1 of2 BE IT FURTHER RESOLVED THAT the City Council therefore approves the Agreement and authorizes the City Manager to execute the Funding Agreement in its final form provided that revisions to the Agreement do not substantially alter the content and form of the Agreement from that which is set forth in Exhibit A and such revisions are acceptable to the City Manager and City Attorney. PASSED, APPROVED, AND ADOPTED this 20th day of December 2005, by the following vote: AYES: Councilmembers Hildenbrand, McCormick and Zika, and Mayor Pro Tern Oravetz NOES: None ABSENT: Mayor Lockhart ABSTAIN: None cJ::c2d - I ~MayorProT m ATTEST: ~l~ ,. City Clerk Reso #235-05, Adopted 12/20/05 Page 2 of2 ?;td-. 2v TRP DRAFT 12116/0V DRAFT . ":>ubJ'-~ -to ~ch..ft FUNDING AGREEMENT This FUNDING AGREEMENT (this "Agreement"), dated as of , 2005 (the "Effective Date"), is entered into among San Francisco Bay Area Rapid Transit District, a rapid transit district established pursuant to Public Utilities Code Section 28500 et. seq. ("BART"), Alameda County Surplus Property Authority, a California public body, corporate and politic (the "Authority"), the City of Dublin, a California municipal corporation ("Dublin"), and the City of Pleasanton, a California municipal corporation ("Pleasanton", and the Authority, Dublin and Pleasanton, individually, a "Funding Party" and, collectively, the "Funding Parties"). Certain capitalized terms used in this Agreement are defined in Section I hereof. RECITALS A. BART intends to construct a new West Dublin/Pleasanton station with parking and other facilities ancillary thereto (collectively, the "West Station"). BART will issue bonds (the "Bonds") to finance all or a portion of the construction ofthe West Station. In order to issue and sell the Bonds, BART must establish certain debt service reserves. B. In connection with constructing the West Station, BART intends to ground lease and/or sell adjacent property owned by BART for development of hotel, apartment, retail or office facilities (the "Development Project"), which is expected to result in significant additional tax and fee revenue and other benefits to the Funding Parties. C. BART will pay (i) debt service on the Bonds from sales tax revenue and from required debt service reserves, and (ii) operating, repair and maintenance costs attributable to the West Station using funds from its general fund. Funds paid for such debt service and such operating, repair and maintenance costs will be replenished from Revenues (as defined below) derived from the West Station and from funds granted to BART pursuant to this Agreement. D. In consideration of BART issuing the Bonds for construction of the West Station, each Funding Party desires to grant funds to BART in an amount equal to the amount of its commitment set forth on Schedule I attached to and incorporated into this Agreement (each, a "Commitment") on the terms and subject to the conditions of this Agreement. E. On the Settlement Date, BART will repay the funds to the Funding Parties on a pro rata basis to the extent that they are not used by BART for the purposes described herein. F. BART and the Funding Parties desire to set forth herein the terms and conditions of the funding to be provided by the Funding Parties and the repayment thereof, if any, by BART. G. BART, Dublin and Pleasanton have entered into that certain Memorandum of Understanding dated as ofJuly 5, 2000 (the "MOD") with regard to financing construction of the EXHIBIT A tf~W T~"a The parties hereto intend that the terms and conditions contained in this Agreement shall replace and supercede the MOU and the terms and conditions contained therein. The parties therefore agree as follows: 1. Defined Terms and Interpretation (a) Defined Terms. The following capitalized terms have the following meamngs: "Operating Expenses" means, for any particular year, the collective costs and expenses incurred by BART relating to or in connection with the West Station, including without limitation, costs and expenses for operation, repair and maintenance; labor (including station agents, police and maintenance personnel); utilities; and supplies. In the Preliminary Proforma, Operating Expenses are described as "Station and Parking Expenses". "Person" means any natural person, partnership, corporation, association, business trust, limited liability company, or other entity, or any government or any political subdivision or agency thereof. "Proforma" means the proforma projections for Operating Expenses and Revenues as contained in Exhibit A hereto. The parties hereto acknowledge and agree that (i) the documents entitled "Project Cash Flows, Conservative Case" and "Project Cash Flows, Best Case" attached hereto as Exhibit A set forth the initial projections for Operating Expenses and Revenues for the West Station as of August 17, 2005 (collectively, the "Preliminary Proforma"), and (ii) such initial proforma projections shall be replaced with the final proforma projections for Operating Expenses and Revenues for the West Station upon closing of the Bond issuance and such final proforma projections shall constitute the "Proforma" hereunder. "Revenues" means, for any particular year, the collective revenues generated from the West Station, including the parking facilities ancillary thereto. In the Preliminary Proforma, Revenues are described as "Actual BART Revenue". "Revenue Service Date" has the meaning given in Section 2(b). "Settlement Date" means 180 days after the Termination Date; provided, however, if such date is not a business day in California, then the "Settlement Date" shall be the next business day. "Termination Date" means the 5th anniversary of the Revenue Service Date. (b) Interpretation. Except where otherwise expressly provided or unless the context otherwise necessarily requires, (i) references to Sections, paragraphs, clauses, Schedules or Exhibits without further reference are to Sections, paragraphs or clauses of, or Schedules or Exhibits to, this Agreement, (ii) reference to a Person includes its successors and permitted assigns, (iii) all references to a contract, agreement or instrument herein shall mean such contract, agreement or instrument and all exhibits, schedules and other attachments thereto, as any such contract, agreement or instrument may be assigned, amended, supplemented or 2 SF # 1009882 v4 5 '1J ~D otherwise modified in accordance with, and not otherwise in contravention of, the provisions of such contract, agreement or instrument, (iv) references to any term in this Agreement when used in the singular shall have the same meanings when used in the plural and vice versa, (v) "includes" or "including" means "including, for example and without limitation," and (vi) "or" is not exclusive. 2. Funding (a) Grant of Commitments. Subject to the conditions of and on the terms provided in this Agreement, each Funding party hereby grants to BART an amount equal to its Commitment which shall be disbursed to BART in two equal installments (consisting of 50% of such Commitment) on each of two dates as set forth in Section 2(b) (the "Funding Dates"). Each Funding Party's Commitment is independent of the other Funding Parties' Commitments, such that each Funding Party shall be required to fund its entire Commitment to BART notwithstanding any failure by another Funding Party to fund all or a portion of its Commitment. Each Funding Party's obligation to fund its Commitment is and shall be absolute and unconditional and is not, and shall not be, subject to any defense or right of set-off, counterclaim, deduction or any other legal or equitable defense that such Funding Party has, or hereafter may have, against any other Person (including BART) for any reason whatsoever. The parties hereto acknowledge that the consideration for each Funding Party's agreement to grant its Commitment to BART is BART's agreement to issue the Bonds for construction of the West Station. (b) Funding Notices. At least 10 days prior to each Funding Date, BART shall deliver to each Funding Party an executed notice in the form of Exhibit B attached to and incorporated into this Agreement (each, a "Funding Notice") specifying the Funding Date and that such Funding Party is required to fund 50% of its Commitment on such Funding Date. The Funding Date for the first installment of each Funding Party's Commitment shall be the closing date of the Bond issuance, which is currently estimated to occur in January 2006. The Funding Date for the second installment of each Funding Party's Commitment shall be the date that "revenue service" commences under the Bonds (the "Revenue Service Date"), which is currently expected to occur in January 2008. (c) Funding Instructions. Prior to 11:30 a.m., Oakland, California time on each Funding Date, each Funding Party shall pay 50% of its Commitment to BART by transferring such amount in immediately available funds into an account maintained in the name of BART (the "Account") as identified in the wire instructions attached to the Funding Notice 3. Use and Disbursements of Funds (a) Permitted Use of Principal. If Revenues are insufficient to cover (i) debt service for the Bonds, and (ii) Operating Expenses for the West Station, then BART shall be permitted to use, in its sole discretion, the funds deposited by the Funding Parties into the Account (the "Principal"). (b) Disbursements of Principal. Prior to disbursing Principal from the Account, BART shall deliver to each Funding Party an executed notice in the form of Exhibit C attached hereto (each, a "Disbursement Notice"), which Disbursement Notice shall have 3 SF #1009882 v4 (P7J 2-0 attached thereto a calculation indicating how BART determined the amount of Principal to be disbursed from the Account. Attached hereto as Schedule 2 is the methodology that BART will utilize in making such calculation. Each Funding Party hereby acknowledges and agrees that it shall have no right to challenge the disbursement amount set forth in the Disbursement Notice or BART's calculation thereof. (c) Investments and Interest. BART shall be permitted (i) to invest all funds deposited in the Account in accordance with BART's investment policy, as modified from time to time, and (ii) to disburse and otherwise segregate all interest that accrues on Principal in the Account into one or more accounts maintained in the name of BART (collectively, the "Interest Account") at any time and from time to time until the Termination Date; provided, that BART shall withdraw (or transfer to the Interest Account) all accrued interest from the Account no later than the Termination Date. All interest that accrues on the funds in the Account up to the Termination Date shall be for the benefit of BART; all interest that accrues on the Principal in the Account from the Termination Date through and including the Settlement Date shall be for the benefit of the Funding Parties. All interest that accrues on the funds in the Interest Account shall be for the benefit of BART. BART may use all accrued interest on funds in the Account up to the Termination Date, as well as all accrued interest in the Interest Account, for any purpose in BART's sole discretion. (d) BART Control of Account. As between the parties, BART shall have sole control over, and no Funding Party shall have any interest in or lien on, the Account, the Interest Account, or any funds or proceeds maintained in the foregoing, with the exception of those rights of repayment of the Principal to the Funding Parties pursuant to the terms of this Agreement. 4. Payments (a) Payment Amounts and Timing. On the Settlement Date, BART shall return to each Funding Party (i) any remaining Principal from the Account, and (ii) all interest on Principal in the Account that accrued from the Termination Date through and including the Settlement Date, in each case on a pro rata basis (with the amount of the Commitment funded by such Funding Party as the numerator and the total Commitments funded by all Funding Parties as the denominator). Except as set forth in this Section 4(a), BART shall have no obligation (i) to pay any interest, fees or other return on any Principal or (ii) to return any funds to the Funding Parties other than Principal (if any) that is in the Account on the Termination Date. For the avoidance of doubt, the parties hereto acknowledge and agree that BART shall have no obligation to return any funds to the Funding Parties if there are no funds in the Account on the Termination Date. (b) Method and Place of Payment. BART shall disburse to each Funding Party the funds required pursuant to Section 4(a) above, by check or wire transfer, as each Funding Party may so instruct BART in accordance with Section 9(c). 5. Representations, Warranties and Acknowledgments (a) BART hereby represents and warrants to the Funding Parties as follows: 4 SF #1009882 v4 '7 ~ 1'0 (i) the State of California. BART is a rapid transit district validly existing under the laws of (ii) The execution and delivery by BART of this Agreement and the performance of its obligations hereunder (A) have been duly authorized by all requisite district actions and proceedings, (B) do not and will not contravene or conflict with or cause any breach of default under any provision of any agreement or instrument to which BART is a party or by which it or any of its properties is bound, (C) do not and will not contravene or conflict with any applicable law, rule or regulation, and (D) do not and will not require any consent or approval of any Person that has not already been obtained. (iii) This Agreement has been duly executed and delivered by BART and constitutes the valid and legally binding obligations of BART, enforceable against BART in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws and subject to general equitable principles. (b) Each Funding Party hereby represents and warrants (only as to itself) to BART and the other Funding Parties as follows: (i) It is the type of entity indicated in the preamble and is validly existing under the laws of the State of California. (ii) lts execution and delivery of this Agreement and the performance of its obligations hereunder (A) have been duly authorized by all requisite actions and proceedings of its governing body, (B) do not and will not contravene or conflict with or cause any breach of default under any provision of any agreement or instrument to which it is a party or by which it or any of its properties is bound, (C) do not and will not contravene or conflict . with any applicable law, rule or regulation, and (D) do not and will not require any consent or approval of any Person that has not already been obtained. (iii) This Agreement has been duly executed and delivered by it and constitutes its valid and legally binding obligations, enforceable against it in accordance with the terms hereof, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws and subject to general equitable principles. 6. Operating Expenses Until the Termination Date, BART shall use commercially reasonable efforts to deliver to each Funding Party, within 45 days after each anniversary of the closing date of the Bond issuance, a written indication as to (a) whether actual Operating Expenses for the trailing 12 month period exceeded projected Operating Expenses for such period as set forth in the Proforma, and (b) whether actual ridership with regard to the West Station for the trailing 12 month period did not meet projected ridership for such period. 7. Events of Default 5 SF #1009882 v4 ZJ i"r't .rl,() o IliJ {..:(/ (a) By BART. The occurrence of anyone or more of the following events shall constitute a "BART Event of Default" (but only with respect to the Funding Party or Parties to which BART has committed the BART Event of Default): (i) BART defaults in the performance of or compliance with any of BART's obligations, covenants or agreements under this Agreement and such default continues unremedied for 30 days after written notice thereof to BART; or (ii) any representation or warranty made by BART in this Agreement contains any untrue statement of a material fact as of the Effective Date, and such misstatement remains material and continues unremedied for 30 days after written notice thereof to BART. (b) By Funding Parties. The occurrence of anyone or more of the following events shall constitute a "Funding Party Event of Default" (but only with respect to the particular Funding Party that committed the Funding Party Event of Default, such that a Funding Party Event of Default committed by a particular Funding Party shall not in itself constitute a Funding Party Event of Default of all Funding Parties): (i) A Funding Party fails to fund the portion of its Commitment within five days after the Funding Date when such funding is required under Section 2; (ii) A Funding Party defaults in the performance of or compliance with any of its obligations, covenants or agreements under this Agreement, other than those specified in Section 7(b)(i) above, and such default continues unremedied for 30 days after written notice thereof to such Funding Party; or (iii) any representation or warranty made by a Funding Party to BART in this Agreement contains any untrue statement of a material fact as of the Effective Date, and such misstatement remains material and continues unremedied for 30 days after written notice thereof to such Funding Party. 8. Remedies. Upon the occurrence of a BART Event of Default, the affected Funding Party shall be entitled to pursue and enforce against BART any and all of the rights and remedies available to it in law or equity. Upon the occurrence of any Funding Party Event of Default, BART shall be entitled to pursue and enforce against the Funding Party whose act, omission or misstatement formed the basis for such Funding Party Event of Default any and all ofthe rights and remedies available to BART in law or equity, including specific performance. 9. Miscellaneous. (a) No Waiver. No failure or delay on the part of a Funding Party in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder or thereunder. (b) Amendments, etc. No amendment, modification, termination or waiver of any provision of this Agreement, or consent to any departure by any party therefrom, shall be effective unless it is in writing and signed by the party against whom enforcement is sought, and 6 SF #1009882 v4 q 0/) 2-0 then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. ( c) Notices. Any notice, invoice, demand, offer or other written instrument required or permitted to be given pursuant to this Agreement (unless expressly permitted to be sent electronically) shall be in writing signed by the party giving such notice and shall, to the extent reasonably practicable, be sent by facsimile, and if not reasonably practicable to send by facsimile, then by hand delivery, overnight courier, or registered mail, to the other parties at the address set forth below: If delivered to BART: San Francisco Bay Area Rapid Transit District 300 Lakeside Drive, 16th Floor Oakland, CA 94612 Attn: Jeffrey Ordway, Manager of Property Development Fax: (510) 464-7673 If delivered to the Authority: Alameda County Surplus Property Authority 224 W. Winton Avenue, Room 110 Hayward, CA 94544-1215 Attn: Patrick Cashman, Director Fax: (510) 670-6374 If delivered to Dublin: City of Dublin 100 Civic Plaza Dublin, CA 94568 Attn: Richard Ambrose, City Manager Fax: (925) 833-6651 If delivered to Pleasanton: City of Pleasant on 123 Main Street P.O. Box 520 Pleasanton, CA 94566-0802 Attn: Nelson Fiahlo, City Manager Fax: (925) 931-5482 Each party shall have the right to change the place to which notice shall be sent or delivered or to specify one additional address to which copies of notices may be sent, in either case by similar notice sent or delivered in like manner to the other parties. 7 SF #1009882 v4 I D ~)2-0 (d) Timing of Receipt. Without limiting any other means by which a party may be able to prove that a notice has been received by the other parties, a notice shall be deemed to be duly received if (i) delivered by hand or overnight courier, the date when left at the address of the recipient, (ii) sent by registered mail, the date of the return receipt, or (iii) sent by facsimile, on the date of receipt by the sender of an acknowledgment or transmission report generated by the machine from which the facsimile was sent indicating that the facsimile was sent in its entirety to the recipient's facsimile number. If a party is required or permitted to respond to a notice from another party within a specified period, such period shall run from the date on which the notice was deemed received as above provided, and the response shall be considered to be timely given if given as above provided by the last day of such period. (e) Assignment. No party shall assign any of its rights, nor delegate any of its duties or obligations, under this Agreement; provided, however, BART may assign its rights under this Agreement, the Account (and the proceeds and funds therein) and the Interest Account (and the proceeds and funds therein) to any financing party or other party in connection with issuance of the Bonds. In the event that BART assigns its rights under this Agreement, BART shall not be released from its obligations under this Agreement. (f) Fees and Expenses. Each party shall bear its own costs and expenses incurred in connection with the negotiation, preparation, enforcement and collection of this Agreement, including all reasonable attorneys' fees and disbursements and court costs, except that if any action is instituted to enforce any of the provisions of this Agreement, the prevailing party in such action shall be entitled to recover from the other party or parties thereto reasonable attorneys' fees and costs incurred in connection with such enforcement or collection as part of the judgment. (g) Governing Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of California, and the parties submit to the non- exclusive jurisdiction of the Superior Court of the State of California for the County of Alameda, Oakland Division. (h) Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. (i) Headings. The Section and paragraph headings herein are for convenience only and shall not affect the construction or interpretation hereof. (j) Entire Agreement. This Agreement contains the full, final and exclusive statement of the agreement relating to the subject matter hereof. Any previous agreement or understanding among any of BART and the Funding Parties, whether written or oral, with respect to the subject matter covered by this Agreement, including the MOU, is hereby superseded. It is the express intent of the parties hereto that the terms and conditions contained in this Agreement shall replace and supercede the MOU and the terms and conditions contained therein. 8 SF #1009882 v4 IlD1J 1-0 IN WITNESS WHEREOF, the Funding Parties and BART have caused this Agreement to be duly executed as of the Effective Date. BART: San Francisco Bay Area Rapid Transit District By: Title: The Authority: Alameda County Surplus Property Authority By: Title: Dublin: City of Dublin By: Title: Pleasanton: City of Pleasanton By: Title: l2PfJ ~o EXHIBIT A to Funding Agreement PROFORMA [See attached.] i31J'ZO EXHIBIT B to Funding Agreement FORM OF FUNDING NOTICE Alameda County Surplus Property Authority r ] r ] Attention: City of Dublin [ [ Attention: City of Pleasant on [ ] [ ] Attention: Re: Funding Notice This Funding Notice is delivered to you pursuant to Section 2 of that certain Funding Agreement, dated as of , 2005 (the "Funding Agreement") among San Francisco Bay Area Rapid Transit District ("BART"), Alameda County Surplus Property Authority, the City of Dublin and the City of Pleasanton. All capitalized terms used and not otherwise defined herein have the respective meanings specified in the Funding Agreement. This Funding Notice constitutes a request for a Funding as set out below: 1. The requested Funding Date is ,200_. 2. The amount of the requested funding from each Funding Party is equal to Y2 of such Funding Party's respective total Commitment, which are the following amounts: (a) Alameda County Surplus Property Authority--$2,250,OOO; (b) City of Dublin--$1,250,OOO; and (c) City ofPleasanton--$500,OOO. 3. Funds shall delivered by wire transfer to BART in accordance with the attached wire instructions. This Funding Notice shall become effective upon receipt by each Funding Party, and each Funding Party shall make the funding requested hereunder no later than the Funding Date (or, if later, the date that is 10 days after such Funding Party received this Funding Notice). San Francisco Bay Area Rapid Transit District By: Title: I 1ft '10 EXHIBIT C to Funding Agreement FORM OF DISBURSEMENT NOTICE Alameda County Surplus Property Authority [ 1 [ 1 Attention: City of Dublin [ [ Attention: 1 ] City of Pleasanton r [ Attention: Re: Disbursement Notice This Disbursement Notice is delivered to you pursuant to Section 3 of that certain Funding Agreement, dated as of , 2005 (the "Funding Agreement") among San Francisco Bay Area Rapid Transit District ("BART"), Alameda County Surplus Property Authority, the City of Dublin and the City of Pleasanton. All capitalized terms used and not otherwise defined herein have the respective meanings specified in the Funding Agreement. BART shall disburse Principal from the Account as set out below: I. The amount of Principal to be disbursed from the Account is $ ("Disbursement Amount"), which amount has been determined pursuant to the calculation attached hereto. 2. The Disbursement Amount will be disbursed on 3. The Disbursement Amount shall be used to replenish funds paid by BART for: D Operating Expenses for the West Station. o Debt service for the Bonds. San Francisco Bay Area Rapid Transit District By: Title: SF #1009882 v4 COMMITMENT OF FUNDING PARTIES 130b20 Schedule 1 to Funding Agreement Funding Party Commitment Amount Alameda County Surplus Property Authority $4,500,000 City of Dublin $2,500,000 $1,000,000 City of Pleasant on SF # 1009882 v4 u.p %1,.0 Schedule 2 to Funding Agreement METHODOLOGY FOR CALCULATION Ridership x fares + parking revenues = revenue Station and parking expenses + debt service = expenses Compare revenue to expenses to determine whether there is either a net surplus or shortfall SF #1009882 v4