HomeMy WebLinkAboutAgenda - 01-24-2017 - 8-a - Orange County Bus and Rail Investment Plan Updates - Durham-Orange Light Rail Financial Update and Chapel Hill Bus Rapid Transit Project UpdateORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 24, 2017
Action Agenda
Item No. 8-a
SUBJECT: Orange County Bus and Rail Investment Plan Updates: Durham-Orange Light
Rail Financial Update and Chapel Hill Bus Rapid Transit Project Update
DEPARTMENT: Planning and Inspections
ATTACHMENT(S): INFORMATION CONTACT:
Travis Myren, Deputy County Manager,
919-245-2308
Jeff Mann, GoTriangle General Manager,
919-485-7424
Brian Litchfield, Chapel Hill Transit
Director, 919-969-4908
PURPOSE: To update the Board of County Commissioners on two capital projects contained in
the Bus and Rail Investment Plan (BRIP):
• A financial update on the Durham-Orange Light Rail Transit project that resulted in no
additional local funds being needed in a base case scenario; and
• An update on the Chapel Hill North-South Corridor Bus Rapid Transit project and related
costs.
BACKGROUND: The BRIP in Orange County governs the allocation of transit taxes and fees
to various transit services. Over the next three months, the Board of Commissioners along with
the other parties to the Plan will be asked to consider updates to the Plan. Two significant
projects contained in the Plan include the Durham-Orange Light Rail Transit (D-O LRT) Project
and the Chapel Hill Bus Rapid Transit (BRT) project.
Update on Financial Status of the D-O LRT Project – On December 5, 2016, the Board of
County Commissioners adopted a non-binding memorandum of understanding to help address
a $250 million projected funding shortfall in the D-O LRT Project. This memorandum was
intended to support GoTriangle’s application to the Federal Transit Administration (FTA) for the
federal share of the project. Since that time, GoTriangle’s financial advisor has restructured
project financing in a way that eliminates the need for additional local funds in a “base case”
scenario. The base case is a scenario where current assumptions on project costs and
revenues are sustained throughout the duration of the project.
During this report, GoTriangle staff will explain how the funding gap was eliminated in the base
case scenario and the sensitivity analysis that was included in its application to the FTA that
shows the conditions under which additional local funds may be required if current assumptions
do not hold.
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The Board of Commissioners also directed the County Manager to engage a consultant to
conduct an independent review of finances and value engineering choices for this project. The
County has executed an agreement with its financial advisor, Davenport & Company, to review
the financial model. GoTriangle staff has indicated that the value engineering options will not be
evaluated until the agency has an engineer under contract to proceed with the future design of
the project. As a result, staff will identify a consultant unrelated to the project after that decision
has been made. The Board also directed the Manager to contact Durham to initiate discussions
of reevaluating the split in funding based on changes in mileage and differences in economic
development opportunities between the two counties. The County Manager’s Office has
initiated this scheduling request.
The full scope of the D-O LRT Project will be reviewed as part of the County’s update of the
BRIP in Orange County. The allocation of taxes and fees to this project, as well as other
portions of the BRIP, will be considered as part of the Plan update. Based on the current
schedule, the Board will receive a presentation of the initial draft Plan during a work session on
February 16, receive the final draft on March 7, and consider approval of the Plan on April 4.
Chapel Hill Transit Update on North-South Corridor BRT Project – The Board of Commissioners
also requested a review of the Chapel Hill BRT Project and its related costs. The Town of
Chapel Hill completed an alternatives analysis for the project. Subsequently, the Metropolitan
Planning Organization approved an amendment to the Locally Preferred Alternative (LPA) and
to the Metropolitan Transportation Plan to expand the scope of the project. The new LPA has
been submitted to the FTA to enter project development.
The current BRIP identifies a total project cost of $24.5 million while the expected cost of the
new LPA is currently estimated at $125 million. The current BRIP dedicates $6.1 million in local
transit taxes and fees, or approximately 25% of the total costs, to this project. The proposed
revision to the BRIP would increase the allocation of Orange County’s transit taxes and fees to
$37.7 million. This increase will also be part of the upcoming update to the BRIP scheduled for
February and March with possible approval April 4.
FINANCIAL IMPACT: There is no cost associated with receiving the reports.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this agenda item. Public Transportation provides opportunity for access to jobs and services
to many individuals.
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or
ethnic background; age; military service; disability; and familial, residential or economic
status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
RECOMMENDATION(S): The Manager recommends the Board receive the reports and ask any
questions.
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