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HomeMy WebLinkAboutAgenda - 03-22-2012 - 7dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 22, 2012 Action Agenda Item No. ~_ SUBJECT: Orange County Transit Plan - Oran e/Durham Transit Cost Share DEPARTMENT: Commissioners Office PUBLIC HEARING: (Y/N) No ATTACHMENTS: INFORMATION CONTACT: Bernadette Pelissier, BOCC Chair, 245-2130 Frank W. Clifton, Jr., Manager, 245-2300 Craig N. Benedict, Planning Director, 245-2592 PURPOSE: To consider authorizing the Board Chair to continue discussions with Durham County officials towards a mutually agreed Light Rail Transit (LRT) finro county cost share agreement. BACKGROUND: Orange County's proposed Bus and Rail Investment Plan (OCBRIP) is a mixture of transit modes; LRT, additional new and expanded bus service, dedicated bus lanes, and small capital projects (such as park and ride lots and/or train or bus stations). The OCBRIP is constrained by the revenue sources of a potential '/ cent sales tax and vehicle registration fees. Therein, how much monies are allocated to the different transit modes are critical to balance the comprehensive transit program. The largest portion of the revenue would be expended on the construction and operation of LRT which is proposed as a 17.4 mile segment between UNC Chapel Hill and Alston Avenue in Durham. This expenditure is the vast majority of the revenue stream depending on how the cost of the entire LRT line is shared between Orange County and Durham County (i.e. Orange County/Durham County Cost Sharing Agreement). What cost share to Orange County affects the revenues remaining for investment in the other elements of the OCBRIP. OPTIONS A contingent of Orange County and Durham County officials have been meeting over the last couple months to `fine tune' an equitable cost sharing agreement. On March 15, 2012 at a BOCC work session, five options were discussed and the middle or third option from the March 2, 2012 Orange County/Durham County informal meeting was conceptually chosen to proceed towards finalization. This option proposes $316.2 million (100% with 50% federal, 25% state and local shares each), or $79.05 million local Orange County share. Durham's complementary share would be $1.0618 billion total which includes their $265.45 million local share. 2 PROVISIONS General Fund The BOCC also stated at the work session that the future agreement must include provisions that there is no financial exposure to Orange County that would cause general fund dollars to be expended in the future for LRT, whether it was capital or operating. The sensitivity to the potential of cost overruns and the limitations in sales tax revenue growth as compared to Durham County was cited as an important consideration. Re-examination of Agreement; Updates and Thresholds The agreement should also include provisions to re-examine the Orange County/Durham County cost sharing agreement if revenues or costs vary a yet to be determined percentage (5% for discussion purposes). Maintenance of Proposed Bus Service Hours Proposed bus service hours should also be maintained irrespective of the costs allocated to LRT with consideration for the reinvestment of rail dividend hours (i.e. when rail routes replace existing bus service, how do you convert to additional bus hours or projects). Small Capital In addition, the cost sharing proposal should also not affect Orange County's intent to allocate monies to the Hillsborough passenger train station (i.e. Amtrak at this time). ACTION This agenda item, if approved, would allow the Board Chair and the assigned contingent to forward to Durham County, the joint county's cost share proposal and allow their full county board to discuss and confirm before institutionalizing the agreement. In addition, Orange County representatives could further `negotiate' within the parameters of this tentative proposal. This item and agreement would return for formal BOCC approval at a later date. FINANCIAL IMPACT: There is no direct financial implication with this item. RECOMMENDATIONS: The Manager recommends the Board discuss and consider authorizing the Board Chair to continue discussions with Durham County officials towards a mutually agreed Light Rail Transit (LRT) two county cost share agreement.