HomeMy WebLinkAboutMinutes 11-17-2016 1
APPROVED 1/24/2017
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
CHAPEL HILL TOWN COUNCIL
HILLSBOROUGH BOARD OF COMMISSIONERS
CARRBORO BOARD OF ALDERMEN
November 17, 2016
ASSEMBLY OF GOVERNMENTS
The Orange County Board of Commissioners met with the Towns of Chapel Hill,
Carrboro and Hillsborough for an Assembly of Governments meeting on Thursday, November
17, 2016 at 7:00 p.m. at Whitted Building in Hillsborough, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Earl McKee and Commissioners
Mark Dorosin, Barry Jacobs, Renee Price, Bernadette Pelissier and Penny Rich
COUNTY COMMISSIONERS ABSENT: Mia Burroughs
COUNTY ATTORNEYS PRESENT: Staff Attorney Annette Moore
COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager
Travis Myren and Clerk to the Board Donna Baker (All other staff members will be identified
appropriately below)
CHAPEL HILL TOWN COUNCIL MEMBERS/STAFF PRESENT: Mayor Pam Hemminger, Ed
Harrison, George Cianciolo, Maria Palmer, Nancy Oates, Michael Parker, Sally Greene and
Town Manager Roger Stancil
CHAPEL HILL TOWN COUNCIL MEMBERS ABSENT: Council Members Jessica Anderson
and Donna Bell
CARRBORO BOARD OF ALDERMEN MEMBERS PRESENT/STAFF: Mayor Lydia Lavelle,
Aldermen Damien Seils, Bethany Chaney, Sammy Slade and Town Manager David Andrews.
CARRBORO BOARD OF ALDERMEN MEMBERS ABSENT: Aldermen Jacquelyn Gist,
Randee Haven O'Donnell, Michelle Johnson
TOWN OF HILLSBOROUGH COMMISSIONERS/STAFF: Mayor Tom Stevens, Town
Commissioners Brian Lowen, Evelyn Lloyd, Kathleen Ferguson, Jenn Weaver, and Town
Manager Eric Peterson
TOWN OF HILLSBOROUGH COMMISSIONERS ABSENT: Commissioner Mark Bell
Welcome, Call To Order and Opening Comments
Chair McKee called the meeting to order at 7:11 p.m., and welcomed everyone to the
Whitted Building.
Mayor Lavelle added her welcome, and said Alderman Haven O'Donnell, Alderman
Johnson and Alderman Gist would not be attending tonight.
Mayor Hemminger added her welcome, and said that said Council Member Bell and
Council Member Anderson could not attend tonight.
Mayor Stevens welcomed the group to Hillsborough, and said Commissioner Mark Bell
will not be able to attend tonight.
Chair McKee said Commissioner Burroughs could not attend this evening, and
Commissioner Elect Mark Marcoplos is in attendance.
Bonnie Hammersley said Ed Kerwin from Orange Water and Sewer Authority (OWASA)
is here tonight to address any questions on the OWASA information item at the end of the
agenda.
No questions were asked.
2
1. Introduction of New County Arts Director and Update on County Arts
Activities/Future Goals
Bonnie Hammersley introduced the new Orange County Arts Commission Director,
Katie Murray.
Katie Murray reviewed the following background information, and PowerPoint
presentation:
Over the last two months, Orange County Arts Commission (OCAC) Director Katie Murray has
been meeting with stakeholders in the arts community to determine the future direction of the
Commission. Historically, the primary role of OCAC has been one of grant funder to artists
and arts organizations. While this will remain a significant role of the commission, the director,
as well as County Management and the OCAC Advisory Board, believe the commission can
serve the arts community of Orange County in a more significant way.
In addition to grants, a needs assessment has resulted in the identification of several areas of
assistance for the County's arts community.
1. Promotion/Marketing
Most of the 177 arts-related organizations within the county are nonprofit organizations with
limited marketing budgets, working to promote only their own programs and projects. The
OCAC can help to further promote arts happenings for the entire county through an enhanced
social media presence, an improved e-newsletter, a more engaging website and new media
campaigns.
2. Unification of arts community
One common complaint among arts stakeholders has been a lack of communication within the
arts community, both within similar groups (i.e. theater groups, galleries), organizations within
the same community, and communication among the three primary communities of Chapel Hill,
Carrboro and Hillsborough.
3. Coordination of county-wide arts projects
Again resulting from the fact that most county arts entities are working within the confines of
the nonprofit world (limited resources and time), most organizations are strictly focused on their
own mission. There is a lack of projects that benefit the greater arts community and promote,
on a larger scale, the arts of Orange County. The communities within Orange County are
heavily saturated in the arts. This fact, combined with a demonstrated commitment to the arts
by County management and the Board of County Commissioners, means that Orange County
could potentially serve as a major arts destination. By helping to promote, unify and
contribute to the overall arts community, the OCAC will serve as the catalyst to make the
arts a primary identity and economic driver for Orange County.
The resulting goals from these observations are to be determined at the Arts Commission
retreat on Saturday, November 19, 2016.
The Arts and Orange County
A Summary of the state of the arts in Orange County, NC
Orange County Arts Commission
Katie Murray
3
How Does Orange County Compare?
Orange vs Wake vs Durham vs Buncombe vs national average
Arts Indicators
• Arts activity: levels of participation and production
• Resources: arts revenue and organization resources used in the arts
• Competitiveness: the arts relative to other community markers
• Local Cultural Character: attributes that differentiate our community
Arts Indicator 1: Arts Activity
• Highest in 4 of 9 Arts Activity Markers among Orange, Wake, and Durham Counties
• Higher than Buncombe County in 7 of 9 markers
• Higher than the national average in 8 of 9 markers
Highlights: Arts Activity
• Adult population attending live performing arts
o 19% higher than Wake
o 27% higher than Durham
o 50% higher than Buncombe
o 45% higher than national average
• Nonprofit cultural expenditures per capita
o 30% higher than Wake
o 8% higher than Durham
o 55% higher than Buncombe
o 86% higher than the national average
Arts Indicator 2: Resources
• Highest in all 23 Resource Markers among Orange, Wake, Durham Counties
• Higher than Buncombe County in 16 of 23 markers
• Higher than the national average in 16 of 23 markers
Highlights: Resources
• Total nonprofit arts orgs per capita
o 104% higher than Wake
o 70% higher than Durham
o 24% higher than Buncombe
o 60% higher than national average
• Nonprofit arts revenues per capita
o 74% higher than Wake
o 32% higher than Durham
o 158% higher than Buncombe
o 129% higher than national average
Highlights: Resources
• Working artists per 100K population
o 97% higher than Wake
o 56% higher than Durham
o 11% lower than Buncombe
4
o 233% higher than national average
Arts Indicator 3: Competitiveness
• Higher in 5 of 7 Competitiveness Markers among Orange, Wake, and Durham Counties
• Higher than Buncombe County in 6 of 7 markers
• Higher than the national average in all markers
Highlights: Competitiveness
• Arts and Culture share of all establishments
o 41% higher than Wake
o 50% higher than Durham
o 5% higher than Buncombe
o 140% higher than national average
• Working artist annual income
o 72% higher than Wake
o 36% higher than Durham
o 43% higher than Buncombe
o 75% higher than national average
Arts Indicator 4: Local Cultural Character
• Higher in 6 of 7 Character Markers among Orange, Wake and Durham Counties
• Higher than Buncombe County in 5 of 7 markers
• Higher than the national average in 3 of 7 markers
Highlights: Character
• Visual and Performing arts degrees per 100K population
o 4x more than Wake
o 2.5x more than Durham
o 3.5x more than Buncombe
o 2x more than national average
Areas of Need
• Promotion/Marketing
o Expanded OCAC social media presence to include twitter and Instagram
o Improved monthly e-newsletter highlighting the arts community
o Production of an Orange County Arts Map (2017)
o More useful and informative website
o Better utilization of media contacts to promote the arts in Orange County
• Unification and Communication
o Formation of Orange County Creatives group on Facebook to "start the
conversation"
o Hosting "Listening Sessions" and social events to improve and unify arts
community (2017)
• Coordination of County-Wide Initiatives
o Researching county-wide programs and projects including research projects,
public art and events
Maximizing the Potential of the Arts Community
Challenges
5
• Funding
o All current external funds (NC Arts Council) are spent on local arts grants
o More programs require more funding
o Exploring options: grants, events, sponsors, the selling of an item to raise funds
• Fragmented Resources
o Conducting Arts Resource Survey among town managers
o How do we make sure each resource is being fully utilized? How do we make
sure we're not duplicating efforts? How do we work in collaboration to
accomplish more?
• Getting the Arts in the Conversation
o Almost every municipal project, tourism campaign, or economic development
initiative is an opportunity to incorporate the arts and promote Orange County as
and arts destination!
Mayor Lavelle welcomed Katie Murray, and said the Town of Carrboro looks forward to
her work in Orange County.
Mayor Hemminger said greetings to her, and encouraged the importance of marketing
the County's entire arts programming to all segments of the population.
Alderman Slade arrived at 7:29 p.m.
Alderman Chaney said it is important for the elected bodies to understand the kinds of
calculators that should be used when thinking about the arts and their contribution to the
economy. She said it is important to highlight and support the residents of color in our
community.
Katie Murray said the Arts and Economic Prosperity Study is currently being completed,
the results of which will come in March 2017. She said these results will help measure the
impact of arts in our communities. She echoed the comments about giving light to artists of
color.
Commissioner Price encouraged Katie Murray to look at Winston Salem and Forsyth
County as well.
Mayor Stevens commended Orange County for the use of the Whitted facility to
highlight the arts, such as exhibiting the paper hand puppets recently.
Commissioner Pelissier asked if the University of North Carolina (UNC) is included in
arts discussions.
Katie Murray said yes.
Mayor Hemminger asked if the Arts Commission is cross-promoting.
Katie Murray said yes.
Mayor Hemminger said the Town of Chapel Hill is having a lantern festival for the
Chinese population in January 2017, and encouraged all residents to participate.
Commissioner Rich said Katie Murray was part of the hand puppet parade.
2. Economic Development— Five Minute Updates from County and Towns on
Projects and Possibilities Related to Industry, Retail and Agriculture, With
Discussion Following Each Update
Chair McKee said he would like the County and each town to give a 5-minute update.
ECONOMIC DEVELOPMENT REPORT: ORANGE COUNTY
6
Steve Brantley, Orange County Director of Economic Development, made the following
PowerPoint presentation:
Economic Development Report
November 17, 2016
Assembly of Governments Meeting
Agricultural Economic Development
• Orange County Food Council working to build a local food system that ensures:
o Health
o Sustainable agriculture
o Access for all local residents
• Piedmont Food & Agriculture Processing Center (PFAP)
o Continues to incubate new food processing businesses
o Now offers expansion potential at the County's newly renovated "Cedar Grove
Park & Community Center"
• New Initiatives - Efforts underway to have the County:
o Potentially lease the 400-acre "Breeze Farm"agriculture training facility
o Create a public-private partnership to facilitate a higher level of effectiveness
19th Annual Orange County Agriculture Summit - February 27th 2017
Orange County Visitors Bureau
• N. C. Department of Agriculture collaboration to develop a new smart media App
(called North Carolina Farms) highlighting Orange County's:
o Fresh food markets
o Farm tours
o "Pick your Own" produce farms
• Launched the "All Are Welcome" LGBT friendly campaign
(Won Platinum award from Destination Management Association of N. C.)
• During the year:
o Served 12,000 walk-in visitors
o Distributed over 50,000 visitors guides and maps
• Tourism services provided to the Towns included:
o Hillsborough Handmade Puppet Parade
o Carrboro's Music Festival
o Chapel Hill's Festival
• Launching North American Travel Journalists Association conference to bring 100
national travel writers to the County spring 2017
Small Business Promotion
• LAUNCH Chapel Hill
o Lease was renewed for 3 more years
o Will double in size to add more co-working space
o Assisted 63 entrepreneurial start-up firms since 2013;
o Currently hosting the 6th cohort
o 23 full-time and 55 part-time jobs were supported by 7 LAUNCH firms in 2016
• Orange County Economic Development's new web-based searchable database listing
all identified Orange County firms.
7
• Article 46 financial programs to support the growth, expansion & retention of Orange
County's small businesses. (1/4 cent sales tax for economic dev.)
Business Recruitment Efforts
• Wegmans Food Markets, Inc. recruitment by the County & Town of Chapel Hill
o $1.7 million annual retail sales tax and property taxes for the County and all 3
towns
o 350 full-time equivalent jobs
• Buckhorn Economic Development District—BOCC approved funding the "Efland Sewer
to Mebane Phase II Extension"utility line extension in early 2016.
• Morinaga America Foods, Inc.
o Grand opening held in early in 2016
o Company has reached its' Phase One employment target of 90 jobs
o Now operating 2 production shifts
• SWOT Analysis - Upcoming release of a request for proposals (RFP) to conduct a
SWOT analysis (strengths, weaknesses, opportunities, threats) for properties the 3
Economic Development Districts.
• Business Recruitment Efforts
ECONOMIC DEVELOPMENT REPORT— TOWN OF HILLSBOROUGH
Shannon Campbell, Economic Development Planner, Town of Hillsborough, made this
presentation:
• She said they have been busy on King Street.
• The Town Public Information Office and Economic Development are working together
to improve the resources available on the Town's website to prospective business
owners and those looking to start and expand business in Town. The Town would like
to engage with small business owners and entrepreneurs more.
• The Town's Economic Development Planner is now the first and main point of contact
for those looking to start, relocate, or expand their business in Town. This position can
assist with questions regarding land use, zoning, parking, obtaining building permits,
availability property and vacancies in existing buildings within the Town of Hillsborough.
• The Town continues to work with the real estate brokers to market available retail
locations at Waterstone, Oakdale Village, Hampton Pointe, and vacant anchor tenant
space at the North Hills Shopping Center.
• The Town has been working closely with the Orange County Economic Development
Office which has graciously assisted in providing existing data and reports to help the
Town entice new business. The County Economic Development Office has also been
helpful and inclusive of Town Economic Development Staff in meetings and
discussions that involved properties in the Town limits.
• The Town is confidentially working with a number of businesses offering restaurant,
retail, recreation/entertainment, and general services.
Mayor Stevens extended a welcome to Ms. Campbell, who has been with the Town for
about a year.
ECONOMIC DEVELOPMENT REPORT— TOWN OF CHAPEL HILL
Dwight Bassett, Economic Development Director, Town of Chapel Hill presented this
presentation:
8
• We are operating under a Commercial Development Strategy that was developed
2015- 2016 with the Vision of"Taking our place on the map of like cities for research
and development."
• Working with our Engineering division to evaluate what might be built on the Wallace
Parking Deck. We are thinking this could be reduced rate office space and we might
partner with a private developer to see this happen.
• We are looking at starting a Maker organization to help facilitate the interest of people
who are moving into the Maker industry. They have held one organizational meeting.
• Working with UNC to think about critical strategies related to Entrepreneurship and the
possibility of creating an Innovation Council to help grow our private support for
entrepreneurs. It would have strong private section representation to help encourage
involvement from that sector.
• Continue to work with County staff on drafting an Incentives Policy for further
consideration.
• We are working with our Parking division to explore growing our parking opportunities
in downtown and having a greater percentage under single management.
• Working with Planning Dept. to draft an advanced manufacturing/research/flex zone for
approximately 50 acres off Millhouse Road. The Town has a concept plan for about 1/3
of the property and it could accommodate up to 390,000 sq ft.
• Working with multiple developers to help move approved projects forward and meet the
Town's interest in retail and office space.
ECONOMIC DEVELOPMENT REPORT— TOWN OF CARBORO
Trish McGuire, Planning Director, made this presentation, and referred to the 6 projects
below that were in their report in their abstract:
Project Description Current Status Next Steps Tenants
Lloyd Farm Property - Old
Fayetteville and NC Hwy 54
• 116,000 sq ft mixed use development to include a grocery store, commercial outparcels
and multi-story 200 unit senior living complex.
• Under review by the Board of Aldermen.
• Scheduled for the December 6th Board meeting
• Tenant: Harris Teeter
South Green — South Greensboro and NC Hwy 54
• 43,500 sq ft retail development
• Approved by Town
• Major improvements underway at South Greensboro to NCDOT storm water and
OWASA waterlines
• Tenant: Announcing Soon!
Shelton Station North Greensboro and Shelton Street
• 22,706 retail/office and 90 units residential rental units
• Retail/office is under construction
• Vertical construction for residential portion of the project will begin in the fall
• Tenant: UNC School of Medicine (12,000 sq ft)
9
Inara Court— 102 Fidelity Street Single Family Residential
• 6 - 15 units
• Approved conditional rezoning and LUO text amendment 6/28.
• Review of SUP plans begin again once resubmitted
• Tenant: n/a
New Hotel — Hilton Garden Inn
• 145 rooms
• Approval existing CUP modification
• Anticipated construction early 2017
• Tenant: n/a
PTA Thrift Shop Expansion 103 Jones Ferry Road
• 5300 sq. ft.
• office/retail space
• Under construction Expected completion December 31, 2016
• Tenant: Youth Worx—A nonprofit collaborative venture focused on youth
Town Commons
• Renovation of existing Town Commons
• Plans approved by Board of Aldermen
• Project is out for construction bids
Parking Study
• A study of parking in Downtown Carrboro
• Consultant has been collecting data from the community including surveys, parking
counts, focus group discussions
• Final report due to the Board of Aldermen in November 2016.
Active Projects Map Online: http://gis.ci.carrboro.nc.us/iCarrboro/cCurDev.html
Commissioner Ferguson referred to the SWOT Analysis, and asked Steve Brantley if
he is looking at areas outside of the Economic Development Districts (EDDs).
Steve Brantley said, as of now, the study is limited to the three EDDs in Orange
County.
Town Council Member Cianciolo referred to the Visitor's Bureau (VB), and said it is
important to include, in the marketing campaign, that Orange County is not only a great place
to visit, but also a great place to do business. He said the VB and the Town Council are
working on this.
Mayor Hemminger commended the partnerships among the governing entities, and
encouraged them all to look for more opportunities for economic development.
Council Member Palmer said a significant art space could be included in the old Town
Hall building, and stressed the importance to work together to make this space usable. She
said Orange County is a great place for cycling tourism, and suggested marketing this more
heavily.
Alderman Slade said when the quarter cent tax was approved there was a 10-year
plan, which is currently at the halfway point. He would like to see an update on the intentions
for these funds against how these funds have actually been spent. He said it may be time to
consider what to do with the next 10 years. He said 60% of Article 46 sales tax are allocated
10
to infrastructure around EDDs, and after 10 years these funds may be available for other
things. He said one allocation is for small businesses, with 0-16% designated annually, and
the language of being self-sufficient. He said he wanted to understand what self-sufficient
meant. He said there are two models of economic development: to support local businesses
and recruitment of outside businesses. He is interested to see an analysis of these two
models in the coming future.
Chair McKee said some local grant funds have gone to community businesses, and he
asked if Steve Brantley could provide the full information on this.
Steve Brantley said a booklet will soon be released that will have information in it for all
businesses that have received Article 46 funds.
Chair McKee asked if the repair to the Carrboro sewer line was paid in part by sales tax
money.
The answer was yes, in the amount of$37,500.
Alderman Chaney said at last night's Triangle J Council of Governments (TJCOG)
meeting there was a presentation on local food councils, and she was surprised at a statistic
that there is a huge gap between the farmer and market. She said Orange County is doing
well compared to other rural counties, because Orange County has done a great job at
working with their local farmers.
Chair McKee recognized Commissioner Jacobs who has been at the forefront in
leading this process in Orange County.
Commissioner Jacobs said the Hillsborough Farmer's Market was dedicated to
Congressman David Price, who has one of the only congressional districts in the Country
where the number of farms is increasing. He said the wings at Cedar Grove Community
Center have been preserved, with one being used for storage for agricultural products. He
said Piedmont Food and Agriculture Processing Center (PFAP) plans to rebrand itself, and will
use part of the storage space. He said Seal the Seasons is the largest customer at PFAP.
3. Durham-Orange Light Rail Transit Update
a) Updated Cost Projections
GoTriangle staff provided the Orange County Bus and Rail Investment Plans
Frequently Asked Questions document in the agenda packet.
Jeff Mann, General Manager of GoTriangle, said the financial plan has been impacted
by external factors and has changed some of their assumptions: reduction in state funds;
change in the how quickly federal funds can be drawn down; revised and lower growth rates of
sales taxes. He said it is a critical time in the process.
Danny Rogers, Light Rail Project Director, made the following PowerPoint presentation:
Durham-Orange Light Rail Transit
Project Update to Orange County Assembly of Governments
November 17, 2016
Status of Durham-Orange LRT
• Entry into Engineering
• Financial Plan and Funding Needs
• Addition of NCCU Station
Entry Into Engineering
• On-schedule to complete submittal to FTA by December 31, 2016
11
o Anticipated approval by FTA is by the end of February, 2017
• Biggest issue remaining is Financial Plan
o FTA funding assumptions change
o Funding Gap Remains
o 30% of Non-New Starts funding must be committed
• Revenues dedicated in the Plan meet this requirement
• Remainder must be planned
• Entry into Engineering Schedule is Critical
o FTA has required D-O LRT to be in Engineering by March or must drop out of
New Starts Program
o Project expenses incurred when project is not in the process are not eligible for
future FTA reimbursement
o Cost to date for project are reimbursable upon obtaining Full Funding Grant
Agreement (FFGA)
State and Federal Transit Funding Changes Since Approval of Plan
Bus Service
• State: 7.5%
• Local: 92.5%
Vehicles, Bus Stops, Park and Rides
• Federal: 80% 4 38%
• State: 10% 4 8%
• Local/Other: 10% 4 54%
Light Rail, Commuter Rail
• Federal: 50% 4 50%
• State: 25% 4 10%
• Local/Other: 25% 4 40%
Bus Rapid Transit
• Federal: 50% 4 70%
• State: 25% 4 0%
• Local/Other: 25% 4 30%
Hillsborough Train Station
• State: 90% 4 91%
• Local: 10% 4 9%
Local Transit Revenues (Shared by Bus and Rail) (graph)
Sales Tax by Article (graph)
D-O LRT Capital Funding Sources (graph)
Financial Model Notes
1. Both scenarios use forecasts developed by Dr. Walden in 2014
2. Baseline Scenario assumes FTA disbursements of$125 million per year
3. Scenario One reduces FTA disbursements to $100 million per year
4. All Scenarios assume 10% State participation
Funding Gap
12
Gap = Lowest projected cash balance in system cash flow
• Assumes maximum borrowing while maintaining minimum 1.15x net debt service
coverage ratio (DSCR)
• Assumes reserves have been fully funded (operating, debt service, capital asset
management)
• Funding for expanded Bus Operations, revised Chapel Hill BRT project, and NCCU
Station included in analysis
Ways to Resolve the Funding Gap
Scenario 1: 10% State Funding, Walden 2014 Forecast, $100M FTA Cap-graph
Next Steps
• Obtain approval from Orange County Board of County Commissioners to submit
financial plan to FTA that includes planned additional local funding at their December
5, 2016 meeting and they would be asking Orange County to:
o "Subject to and contingent upon any authorizations required by Orange County,
including the Orange County Board of Commissioners, Orange County agrees
to cooperate with the municipalities within the county and work together to
identify, develop, and implement additional funding mechanisms to directly
support the D-O LRT Project by October, 2019."
• Obtain similar approvals from Durham (November 29, 2016) and the DCHC MPO
(December 14, 2016).
• Continue to work with local partners to define details of additional local revenue
sources to have available for reference prior to approving Final Design phase of
General Engineering Consultant contract in April 2017.
• Note: No additional local funds will be spent on the D-O LRT Project prior to receiving
a Full Funding Grant Agreement (FFGA) from FTA in 2020.
13
III. „lr, 141 o n I/l
���rlr�� ���� ��������rr���ll�ll�������///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////rra
GoTriangle Complete DOLRT application to Sign contract, begin DOLRT Apply to include DOLRT
fiction Engineering Phase Engineering Phase in President's Budget
Provide non-binding letter of intent to work Review/Approve updated Commit any local funds
_ocal Gov't Action w/GoTriangle to identify funds to complete county Transit Plans with be part of DOLRT
DOLRT planned revenue assumptions financial plan
staff Working Work with GoTriangle to refine County Present revised plan to elected Review Plan Progress
3roup Transit Plan Assumptions officials w/GoTriangle
'rivate Partners Provide non-binding letters of intent for Additional commitments Sign agreements to
land/other commitments identified make commitments offic
Town Council Member Cianciolo asked Danny Rogers if he could identify when the
Federal Transportation Administration (FTA) dropped the cap from $125 to $100 million.
Danny Rogers said this information was received in the last 3 weeks.
Town Council Member Ciancolo asked if up until that time there was no gap.
Danny Rogers said yes.
Town Council Member Cianciolo asked what will happen if the FTA funding drops back
to $75 million.
Danny Rogers said the $100 million has been the bar that the FTA has used for a
while.
Chair McKee said there is a new day in Washington, and it is an unknown. He asked if
money spent will be reimbursed, if approval is not received in April.
Danny Rogers said if there is a full funding grant agreement with FTA, and all money
spent so far is eligible for reimbursements. He said if engineering does not begin by the end
of February, the project will fall out of the New Starts program. He said if the project is able to
get back into the New Starts program, the time period between leaving the program and being
reinstated, would not be eligible for reimbursement. He said if the project does not proceed at
all, then no monies are eligible for reimbursement.
Chair McKee said this is the first he has heard of this information in the last six years.
14
Chair McKee said there is another stop point in June 2018 and asked, if everything is
not in place at that point, could there be ramifications.
Danny Rogers said the current stop point of beginning the engineering process by
February, is firm. He said if it does not begin, the project falls out of the program. He said if
the project is not ready with information or commitments to submit for the President's budget in
June 2018, the project will not drop out of the New Starts program, but will be delayed a year.
Chair McKee said his concern is receiving approval in April 2017 means a $60-70
million jump to move forward, and that they may get further in the process, and then find other
surprises. He said all of this money may be spent, without getting through the project.
Danny Rogers said entering into the contract in April means the pace of spending will
increase each month. He said it does not mean $60-70 million will be spent, and there is a
termination for convenience that will be included in the contract. He said a higher rate will be
spent per month, and it is important to continue their side of the unknown of this equation to be
more comfortable that GoTriangle can do its part.
Council Member Palmer said a lot of money and energy has been expended to get to
this point, and putting the breaks on a project, that will move our region into a greener and
more connected future that facilitates job development, due to changes at the state and
federal level is counter productive to the region's own interests. She said it must be
determined if the project can move forward or if the vision should be abandoned. She asked if
the reimbursement amount, which would be forfeited by not moving forward, could be
identified.
Danny Rogers said it depends on how much is spent in that gap time, and how long it
takes to get back into the program. He said hundreds of thousands of dollars would need to
be spent on a monthly basis to get back into the program, and the biggest cost would be the
one year delay.
Council Member Parker said there have been questions about the sales tax growth
rates, and the numbers used in the presentation tonight are the 2014 numbers. He asked if
newer sales tax projections are considered, what is the magnitude of the gap.
Danny Rogers said a work has been procured from Moody's to put together growth
rates for their sales tax. He said Orange County's numbers are lower than 2014, and
Durham's was about the same. He said the $200 million is what is currently expected.
Council Member Parker said come April more commitment and funds will be needed.
He asked if more specific financial information is anticipated between now and April, such that
the financial situation will become clearer, and the plug can be pulled if necessary, or is it full
steam ahead at this point.
Danny Rogers said the point of the checkpoints is to be able to stop and review at each
step in the process.
Alderman Seils asked if their expectations of the Metropolitan Planning Organization
(MPO) could be outlined.
Danny Rogers said they are asking the MPO for permission to show in the plan that
additional local revenue will be put into the plan.
Alderman Seils clarified that the Counties and the MPO are being asked to buy the
project time in order to get into the engineering phase of the project, and figure out the specific
financials.
Danny Rogers said it is permission to say it is going to be done, permission to find out
how it is going to be done and doing it committing the actual funds later.
Alderman Seils said this process has been known all along, and the steps are of no
surprise. He said the expenditures, up to this point being eligible for reimbursement, are
something he spoke of in front of the Board of County Commissioners in 2012, and he said it
is important to stay in the program to be eligible.
15
Mayor Lavelle said the voters voted for light rail, and having a few more months to feel
more grounded is reasonable.
Commissioner Pelissier said there have been suggestions made of scrapping the light
rail and doing a bus rapid transit system instead. She said it is her understanding that
stopping now would require a total re-start, a loss of funds spent thus far, would take five to
seven years, and would end up costing the same amount of money as the light rail system.
Danny Rogers added that the money spent so far would not be eligible.
Mayor Hemminger said the need and the desire for this project is out there, and more
information is being received, and she wants it to work. She said Chapel Hill has a vested
interest in the bus transit to get to the light rail stops. She said Orange County has a huge
decision to make as it does not get that much benefit out of it, with the stations outside of the
Gateway Station, and that one is still in Durham County. She said having Orange County
commit to 23% of this gap scares her.
Mayor Hemminger said she was unaware of the BRT in Chapel Hill being a part of this
equation. She said she hoped the sales tax will go up. She said there is a lot more to be
discovered, and there are a lot of opportunities and holes. She said if there is a commitment
to funding these numbers, then they need to figure out how. She asked if the UNC Council
Estate has been asked for permission for the right of ways.
Danny Rogers said UNC said it would pursue the issue. He said this is the plan, and
he said there is precedent in North Carolina for that Right of Way donation with UNC-
Charlotte.
Mayor Hemminger said it is important to understand what resources will be needed to
be able to fund these extra figures.
Danny Rogers said these numbers are included in the financial plan.
Council Member Ed Harrison said for any Bus Rapid Transit project to even approach
the effectiveness of the Light Rail project, it would have to be about the same alignment, which
would be complicated.
Commissioner Pelissier said assuming the Orange County Board of County
Commissioners will work with GoTriangle to find the funding, there are still not many
opportunities for benefits for Orange County as compared to Durham County. She said the
percentage distribution between Orange and Durham counties is a placeholder, and there
could be negotiations with Durham County.
Danny Rogers said he failed to point out, on the timeline, that this is a complimentary
concurrent updating for the BRT for Orange County and Durham County.
Council Member Parker asked if the parties that will be making the decision in April,
could be identified.
Danny Rogers said the final responsibility rests with the Board of Trustees for
GoTriangle. He said that Board will want to know the intentions of the governmental entities
and what they are going to do. He said the signatories are Orange County, Durham County,
MPO, and GoTriangle,
Jeff Mann said an updated Orange County Bus and Rail Investment plan will be
presented in the spring. He said the Orange County BOCC can approve it, or not.
Town Council Member Cianciolo said he wanted to understand the issues of cost
reimbursements. He said assuming all is completed successfully by 2028, and the FTA sends
reimbursement funds, he asked if GoTriangle then writes a check to Orange County.
Danny Rogers said the reimbursements are for money they have spent, to pay off the
debt.
Town Council Member Cianciolo said it has to be a decision that focuses on the costs
going forward, as money spent to date is gone, for all intents and purposes. He said it must be
decided if this project is deemed to be beneficial.
16
Danny Rogers said if the project falls out of the program, whilst decisions are trying to
be made and money is spent, those funds are not eligible for reimbursement. He said getting
to engineering is time sensitive, and allows far more specific information to be gathered prior to
making decisions about major financial commitments.
Alderman Chaney said Town Council Member Cianciolo's point is well taken. She
asked if the number of people, who will get out of their cars if this project is built, is known.
Danny Rogers said about 24,000 per day.
Patrick McDonough, Manager of Planning for GoTriangle, said just under 27,000 riders
per day, when including the NCCU station; and another 20,000 when including the bus trips to
and from the various light rail stations.
Alderman Chaney said that is a lot of people who will benefit from this project. She
said she hoped that the Board of County Commissioners will think about getting to the next
step. She said they want to achieve the goal so badly, and it is the proportion that has
changed not the cost. She said there is a risk here but she, as a taxpayer, is willing to take
that risk.
Commissioner Jacobs said he suggested on Tuesday night, the need to re-negotiate
the formula with Durham. He said before moving forward in April, he would like to know who is
going to do the value engineering. He said he would like to see independent value
engineering, and he asked if there is a development coordinator to solicit funds from the
universities and the private sector.
Commissioner Jacobs said, at some point, the BOCC will need information from Chapel
Hill about the extension of the BRT, the tripling of the cost, and why the BOCC has not been a
part of this conversation. He said the topic of affordable housing along the light rail also needs
to be revisited.
Mayor Hemminger said the Town Council was working today to see what is happening
with the BRT, since they just heard about this. She said the Town would work on the
affordable housing request. She said three of the stops are UNC owned and will not include
affordable housing. She said Glenn Lennox is already built out, and the only other
opportunities are the Woodmont and Gateway stations.
Town Commissioner Weaver said she wanted to speak up for those in the northern part
of the County, and she sees the benefit to the light rail project. She said there are a lot of risks
and unknowns, but this current step is really important, and she does not want to lose sight of
the bigger picture and overall benefits.
Commissioner Pelissier said sometimes risks have to be taken, and voting to at least
look at funding options is not that big of a risk. She hopes her colleagues will vote in favor of
doing so. She said light rail will add to affordability.
Commissioner Jacobs said just because the Board of County Commissioners asks
tough questions, it does not indicate any lesser commitment to light rail and affordability. He
said the BOCC will have to deal with the consequences of adding more funding.
Alderman Slade said the engineering phase is rapidly approaching, and asked if it is
realistic that GoTriangle will be able to meet the deadline.
Danny Rogers said the process is on track, and if a financial plan is in place they
should be in good shape to submit it to FTA. He said it would then wait to be seen as to how
FTA reacts to said plan.
Commissioner Rich said the Board of County Commissioners is supportive of this
project, and it would be a shame to throw this all away. She commended Commissioner
Pelissier for all of her hard work on this.
Chair McKee asked if, funding gap aside, there is a firm, written commitment from Duke
to pick up any Right of Way (ROW).
17
Danny Rogers said Duke has made a commitment to donate the ROW, and is putting
together a letter of intent to that effect.
Chair McKee asked if there is a commitment for $25 million, or if that is for the ROW.
Danny Rogers said the ROW would be in the line above that. He said the $25 million is
a goal of funding from private donors, and the end total may be higher. He said that process
takes time.
Chair McKee asked if UNC or NCCU has made any commitment, given that they are
state entities. He said he assumed Council of State will have to be involved there.
Danny Rogers said UNC and NCCU are not expected to give money, but are able to
clear a path for them such as clearing some land, or building facilities further back in order to
leave room for the light rail.
Chair McKee said he does not agree that the $200 million is the only funding gap. He
said today the state funding has gone from $400 million, to $160 million on 10%. He said the
County has not yet agreed to pick up the extra $40 million, at $4 million a year. He also is
unsure of Durham's commitment. He said there may be a commitment of intent, but not of
money.
Danny Rogers said a commitment of intent is the only thing being sought at this time.
Chair McKee said it is important to be realistic about the gap, which is over $400 million
at this point in time.
Danny Rogers said the change in the state participation is as Chair McKee describes.
He said GoTriangle puts the revenue growth, which comes through the sales tax, into the
financial model, and also puts in the borrowing opportunities that are available. He said that
which is left is the gap that cannot be covered. He said the current commitment allows
GoTriangle to say the 30% share can be covered, and the part beyond that must receive
approval. He said that is planned.
Chair McKee said the real stop point for making a decision is the end of December
2016. He said the Board of County Commissioners must decide whether or not to issue a
letter of intent by that time.
Danny Rogers reread the slide, which outlined what the Orange County Board of
County Commissioners will need to do, and the BOCC will need to issue a letter of intent at its
December 5th meeting.
Chair McKee said a letter of intent does carry with it the implication that Orange County
will come forward to filling this funding gap.
Danny Rogers said a letter of intent means that the BOCC is committed to working
together to fill this gap.
Chair McKee said Orange County is being asked to commit to $4 million per year for 10
years to fill the federal gap. He said he fears that Orange County will end up spending $8
million per year to fill the federal funding gap, as well as the state-funding gap.
Danny Rogers said it is very complicated.
Jeff Mann said the same amount of federal funding will be received, but it will take
longer for it to come. He said it will be 50% of funding, distributed in $100 million per year
increments, as opposed to $125 million per year. He said the result is that more will have to
be borrowed up front.
Chair McKee said he will concede that point, but he is still seeing $4 million per year,
for 10 years, that the taxpayers of Orange County will have to pay.
Chair McKee said paying for this will require a minimum of a three cent tax increase.
He said the voters approved a transit tax, but this conversation no longer relates to that tax.
He said the voters did not approve coming back at a later date to cover a gap that is not of
their making. He said he does not think the state will correct this issue.
18
Danny Rogers said the BOCC is being provided accurate information in order to make
an informed decision.
Council Member Parker asked if there is any chance that this gap will get smaller.
Danny Rogers said there are reasons to be optimistic, but there may be other surprises
coming down the pike.
Chair McKee asked if GoTriangle would be open to an independent analysis of the
engineering and financial plan.
Jeff Mann said the FTA conducts an independent analysis of the financial plan
throughout the process.
Chair McKee asked if GoTriangle is open to Orange County having a consultant, at the
County's expense, review the financial plan before moving forward.
Jeff Mann said yes, but there may not be time before December.
Saundra Freeman, GoTriangle Chief Financial Officer, said three consultants have
already reviewed the financial plan, and what Chair McKee is proposing will take several
months to complete.
Chair McKee asked if GoTriangle is willing to give Orange County additional time to
conduct an independent financial analysis.
Saundra Freeman said yes, an independent analysis would be fine, but the timing is
tricky.
Jeff Mann said there is a hard deadline, of the end of 2016, to submit a financial plan,
with a request to enter engineering. He said the plan must be submitted by the end of
December, and there is insufficient time to complete an analysis before then, but one could be
done at some time.
Chair McKee said he felt that he is being backed into a box, and the timeframe is so
short. He said the level of detail is so great, and the implications for the taxpayers of Orange
County are so critical.
Saundra Freeman said GoTriangle is convening a financial consortium, which will
include the appropriate financial staff from Orange County, to walk through the model. She
said a great deal of detail will be provided through that process.
b) Extension to North Carolina Central University (background)
Danny Rogers reviewed the following background, and made the following PowerPoint
presentation:
In February 2016, GoTriangle received a Combined Final Environmental Impact Statement
(FEIS)/Record of Decision (ROD) for the Durham-Orange Light Rail
Transit (D-O LRT) project from UNC Hospitals in Chapel Hill to Alston Avenue in
Durham. In response to comments received during that process, GoTriangle started
to evaluate the option to extend the project south on Alston Avenue to a station near North
Carolina Central University (NCCU). Preliminary engineering and ridership
forecasts found the station to be feasible and capable of generating high ridership.
GoTriangle is currently studying the natural environment and community impacts, as
well as addressing state, federal, and local funding constraints.
Recent guidance from the Federal Transit Administration (FTA) indicates that the DO LRT
project must enter the News Starts Engineering phase by February 2017. In order to meet this
milestone, allow the NCCU station to advance into the next phase along with the other parts of
19
the project, and ensure that the entire new alignment qualifies for the 50% Federal match, the
Durham-Chapel Hill-Carrboro Metropolitan
Planning Organization (DCHC MPO) has initiated two actions: 1) The extension needs to be
included in its Locally Preferred Alternative (LPA) and 2) the extension needs to be included in
its 2040 Metropolitan Transportation Plan (MTP).
At its October 19 meeting, the MPO Board released the amendments for public comment,
which is taking place through November 29, and held a public hearing on November 9, 2016.
The Durham City Council and Durham Board of County Commissioners (BOCC) endorsed the
amendments in September and October, respectively. The Orange County BOCC received a
presentation on the extension at its meeting on November 15.
NCCU Station
• FTA issued a combined Final Environmental Impact Statement/Record of Decision
(FEIS/ROD) on the D-O LRT Project in February, 2016
• In response to comments, FTA and GoTriangle committed to look at some specific
refinements including analyzing the feasibility of extending the alignment to NCCU
o Early analysis indicated that the extension is feasible
o FTA determined that s Supplemental Environmental Assessment (EA) would be
required
Proposed NCCU Station Location
Current Activities
• The Supplemental EA on the NCCU LRT Station Refinement is now available for
Public Review and Comment until Dec 7, 2016
http://ourtransitfuture.com
NCCU James E. Shepherd Memorial Library
Main Branch of the Durham Public Library
GoTriangle's Administrative Office
• DCHC MPO to vote on Metropolitan Transportation Plan Amendment to include
NCCU Station on December14, 2016
Questions
Alderman Seils said he is appreciative of this station. He asked if there is an
expectation that the addition of this leg will increase the scoring process.
Danny Rogers said the project scored really well, and this addition will make the project
better.
Alderman Slade said he hoped the next leg of the light rail will be in Carrboro.
5. Greene Tract- Deferred
Chair McKee noted that the time is 10:02 p.m. He said the next item is not critical and
can be given as an information item. He said to let the Managers come back with a proposal
for a task force.
Mayor Hemminger said she hoped there would be a task force to get moving on this
topic, and agreed with the Managers working together to come back with a strategic process.
Mayor Lavelle agreed.
20
Alderman Slade said he hopes the task force will look at the work done in the Rogers
Road community as a starting point from which to move forward.
Commissioner Dorosin asked if the charge of the task force could be identified. He
said a task force sounds like reinventing the wheel again; and it is important to know what is
being sought. He said affordable housing is a universal goal, and said perhaps an RFP is
next.
Mayor Lavelle said to have Managers to come up with something, and let the Mayors
and the Chair be the task force and provide feedback to the respective boards.
Commissioner Rich said some points are in the abstract, and provides a starting point.
Mayor Hemminger said that is why she asked the Managers to come back with a
strategic process.
Chair McKee said when this topic was put on the agenda he noted that he is at the
same point, with the Green Tract now, that he was 10 years ago with the Rogers Road
Community Center. He said he is tired of this topic going nowhere, and is ready to make a
plan and take action, or stop talking about it altogether.
Commissioner Price said a deadline should be set for establishing a plan.
Commissioner Jacobs said this was discussed at the joint meeting with Chapel Hill
months ago, and staff was asked to take their vision and put it on to paper. He said that would
be a reachable goal. He said a strategic plan must reflect how the elected officials think
currently, which includes mixed-use development.
Alderman Chaney said there must be a grocery store within a mile of a low-income
housing tax credit application site, if any type of multi-family units is planned.
Chair McKee asked if it is agreeable to have the Managers put together a unified
proposal for the three boards.
There was general consensus.
Commissioner Price said the community is being left out of this discussion.
Chair McKee said it is important to keep it concentrated at the beginning, in order to
keep things moving.
Mayor Lavelle said a starting point would be to have a meeting between the Managers,
the Mayors and the Chair. She said the community will not be excluded.
Commissioner Price said she is outnumbered, but feels the community should be
included from the start.
Chair McKee said to start with the Managers, the Mayors and the Chair.
DEFERRED
a) Brief Historical Update
The Greene Tract (164 acres) was acquired in 1984 and came to Orange County as an asset
of the Solid Waste Fund. The 1998 Interlocal Solid Waste Agreement (amended April 12,
2000) established the three owning partners for a 104 acre parcel. The remaining 60 acres,
long held by Solid Waste, is in the process of being transferred to an asset of the General
Fund to be used for preservation and low impact recreation purposes.
Although there has been considerable discussion about the future of the Greene
Tract, no formal action has been taken by the BOCC since 2002. And although not specific to
the Greene Tract, multiple Historic Rogers Road Area (HRRA) small area studies and planning
efforts have been conducted by the local governments over the last 15 years that referenced
the Greene Tract.
21
Over the last few years, the local governments have pursed the construction of a Rogers Road
Community Center and the design of the Rogers Road Sewer Project. More recently, the
Historic Roger Road Area (HRRA) staff workgroup (local government management, planners,
and Orange Water and Sewer Authority (OWASA)) has been reviewing and developing two
new initiatives:
1. The Community First planning program. The Jackson Center was hired by the joint
governments to work with Rogers Road stakeholders to create a guide and recommendations
for future of the community.
2. Multi-Jurisdiction Technical Environmental Scan of the Greene Tract. Many cultural and
environmental aspects have been researched and updated. Over the years there have been
many options (based on various studies) discussed as possible future uses of the 104 acres
jointly owned by Orange County, Chapel Hill and Carrboro. Listed below are the options that
have been explored:
1. Joint Affordable Housing could be planned for 18.1 acres and the remaining 85.9 acres
would remain join open space.
2. The 104 acre tract should remain as open space to be protected by conservation
easements.
3. The acreage for affordable housing could be placed in the Land Trust.
4. Chapel Hill Carrboro City Schools requested that part of the Greene Tract be reserved for a
future elementary school site. An approximate 11 acre area south of the 18 Affordable
Housing site was considered.
5. Rename the property to recognize the headwaters of Bolin Creek, Booker Creek and Old
Field Creek.
The Greene Tract map is in the abstract which shows the proximity of the various
aforementioned parcels.
b) Potential Task Force
The possibility of forming a task force to develop concrete recommendations relative to the
Greene Tract has been a topic of discussion. A task force could potentially consist of
representatives from governmental bodies and community stakeholders and provide
recommendations on affordable housing, a school site, and other potential uses for the
Greene Tract.
5. INFORMATION ITEMS (Written Updates — Not for Specific Discussion)
a) OWASA Update of the Long Range Water Supply Plan
b) Agricultural Support Enterprises in the Rural Buffer
c) Solid Waste Financial Report
d) Rogers Road — Mapping Our Community's Future Report
The meeting adjourned at 10:12 p.m.
Earl McKee, Chair
Donna Baker
Clerk to the Board