Box 21, Folder 5, Document 17

Box 21, Folder 5, Document 17

Summary of Remarks of W. Stell Huie at MARTA meeting,
November 7, 1967 - re Amendments to MARTA Legislation-1968

Section 9(c) requiring judicial review of the Authority's
rate making powers should be eliminated. It is necessary
that the Authority have the power to commit to bond pur-
chasers that it can establish rates sufficient to cover the
operating cost of the system.

Section 10: (a) eliminate the 6% interest limitation found
in 10(d).

(b) eliminate the requirement that the bonds be
sold by public competitive bidding found
in 10(h).

(c) eliminate the requirement that the bonds be
sold at par found in 10(h).

(ad) amend 10(g) to provide that all "obligations"
rather than just bonds will have the
qualities of negotiable instruments.

(e) amend 10(p) to provide that the procedure of
the revenue bond law as it now exists or_
may be hereafter amended will apply. It
appears that the 1965 version which has since
been amended may be referred to in the Act.



Section 13(b) must be clarified so as to eliminate any exces-
Sive drain of funds by reason of relocation payments which may
not be included in estimates of engineers. In this respect we
must check on the federal requirements as well as procedures
and policies established for relocation payments under other
laws.

Section 15(c) must be amended so as to provide that after a
validation proceeding no contract may be declared void by reason
of any conflict of interest.

Greater flexibility than is allowed by Section 17 needs to be
added for budgeting purposes; however it would appear that the
only must requirement herein is that a deficit budget should be
allowed during initial year's operations.

Section 18 which provides for inspection every three years by

an outside engineer is unreasonable and would be too expensive.
It should be eliminated. The trust indenture securing the bonds
will provide for adequate inspection for the interest of the
bond holders.

Section 24 must be amended so as to eliminate the requirement

that the contracts with participating governments be approved

in a referendum by submitting "the extent of the dollar amount
or amounts involved."
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Section 24 and Section 8(i) must be amended so as to authorize
the payment of participating governments of operating subsidies
if it should become necessary.

Section 24(e) should be amended to eliminate the last sentence
which says that the authority is subject to and limited by any
local act heretofore or hereafter enacted applicable to the
local governing body of any local government. This language
is troublesome and we don't know exactly what it means.

Section 24(k) should be amended to eliminate the prohibition
of the use by the City of Atlanta of “its public funds" to
support rapid transit when taxes are being levied by Fulton
and DeKalb Counties on subjects of taxation within the city
limits. Such provision could prevent the city from giving us
the benefit of their land office without cost and ceding to
us certain rights-of-way and benefits in public streets, etc.

Section 24(1) should be amended to authorize contributions and
support from any municipality in the five-county area rather
than limiting it to the defined term "local government" which

is limited to the City of Atlanta and the participating counties.

Section 2(j) should be amended so as to clearly authorize the
capitalizing of interest during construction as well as start-up
costs with respect to each section of the system as it is begun.
This section should also be amended so as to include the total
cost of the system as defined in 2(g).

Section 6(i-2) should be amended to eliminate the last sentence
or to make it clear how a showing that the leasing or purchasing
of a privately owned system is essential to rapid transit.

Section 8(e) should be amended to eliminate the payment of
attorneys’ fees to those suing the Authority for trespass.

Section 12 should be amended so as to provide the Authority
with the power of eminent domain.

Section 21(d) regarding the exemption of the Authority from
regulation by public service commission, etc. is ambiguous and
should be clarified.

Section 22 should be reworded so as to allow the Authority to
establish self-insurance reserves.