HomeMy WebLinkAboutAgenda - 04-20-2017 - 1 - Discussion Regarding the Draft Durham – Orange Light Rail Cost Sharing Agreement and Draft Orange County Transit Plan 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 20, 2017
Action Agenda
Item No. 1
SUBJECT: Discussion Regarding the Draft Durham — Orange Light Rail Cost Sharing
Agreement and Draft Orange County Transit Plan
DEPARTMENT: County Manager's Office and
County Attorney's Office
ATTACHMENT(S): INFORMATION CONTACT:
A. April 18, 2017 Draft Cost Share Agreement Travis Myren, Deputy County Manager,
B. Cost Share Scenario Options 919-245-2308
C. Recommended Changes to the Draft Orange Ted Cole, Davenport & Company, 804-
County Transit Plan 347-9690
D. Bus Expansion Memorandum John Roberts, County Attorney, 919-
245-2318
PURPOSE: To discuss a final draft of the Durham-Orange Light Rail Cost Sharing Agreement.
The final draft Agreement will be integrated into both the Orange County Transit Plan and the
Durham County Transit Plan. The Durham County Board of Commissioners will consider the
Durham County Plan on April 24th. The Board of Orange County Commissioners will consider
the Orange County Transit Plan on April 27th
BACKGROUND: In February, GoTriangle received direction from the Federal Transit
Administration that prescribed an April 30 deadline for updating the Orange County Transit Plan
and the Cost Sharing Agreement between Orange and Durham counties for the light rail project.
Since March, two Orange County Commissioners and two Durham County Commissioners have
met to negotiate the cost sharing percentages and other provisions of the agreement. They
have also discussed other non-financial changes to the Transit Plans.
The Draft Cost Share Agreement (Attachment A) specifies the amount of funding each County
will contribute to the project. It also contains provisions to manage future project uncertainties.
The negotiating committee reviewed a variety of different scenarios that adjusted the cost share
attributable to each County. One important output of those scenarios is the cash balance
available to each County after funding all of the elements of the Transit Plan. The cash balance
represents the amount of unallocated funds available to mitigate project cost overruns and
revenue shortages in any given year, but it is also the source of funds that would be available
for other projects. In Orange County, this is the source of funds that could be used to expand
bus service while in Durham County the cash balance could be applied to the commuter rail
project with Wake County.
2
Financial Scenarios
Davenport & Company has conducted a comparative analysis of four scenarios produced by
GoTriangle (Attachment B). The first is Scenario C which Davenport & Company evaluated and
presented during the April 4 meeting of the Board of County Commissioners.
The second scenario is Scenario M. This represents the financial model currently included in
the Draft Orange County Transit Plan. It distributes eighty-two percent (82%) of the capital cost
of the light rail project to Durham County and eighteen percent (18%) of the capital cost to
Orange County. For operating costs, it distributes eighty percent (80%) of the operating cost to
Durham County and twenty percent (20%) of the operating cost to Orange County. However,
this scenario produced low cash balances for Orange County with a minimum cash balance of
approximately $1 million in 2030.
To increase available cash balances in Orange County, additional scenarios were developed.
The primary difference between these scenarios and Scenario M is the application of
approximately $18 million in outside revenue or approximately two percent (2%) of the total local
share. This outside revenue is used to offset Orange County's contribution to the project. The
outside revenue is expected to be generated through the Funding and Community Collaborative
group that is working with corporate and institutional partners to secure private monetary and in-
kind donations. GoTriangle reports that most of the $18 million that is applied in the financial
model would be generated by right of way donations. The project budget included funding to
purchase right of way, so if those funds are no longer needed because they are donated, the
local share of the project cost can be reduced.
The third scenario, Scenario Z, attributes eighty-two percent (82%) of the capital cost of the light
rail project to Durham County, sixteen percent (16%) to Orange County, and two percent (2%)
to outside funding. For operating costs, it distributes eighty-one percent (81%) to Durham
County and nineteen percent (19%) of the operating cost to Orange County. This scenario also
models Durham County's cash balances if it contributed twenty percent (20%) of the capital cost
to the commuter rail project. Due to the infusion of outside resources, this scenario increases
Orange County's cash balances to a minimum cash balance of $4.9 million in 2019 and
produces higher cash balances in subsequent years of over $22 million.
Scenario EE distributes eighty-one and one half percent (81.5%) of the capital cost of the light
rail project to Durham County, sixteen and one half percent (16.5%) to Orange County, and two
percent (2%) to outside funding. For operating costs, it distributes eighty percent (80%) to
Durham County and twenty percent (20%) of the operating cost to Orange County through 2036
and eighty-one percent (81%) to Durham County and nineteen percent (19%) of the operating
cost to Orange County through the end of the debt repayment. This model increases Orange
County's cash balances to a minimum of $4.4 million in 2019 and higher cash balances in
subsequent years of over $16 million.
Risk Management
The Cost Share Agreement specifies that Orange County's share of the capital cost of the
project is $149.5 million which represents an $18 million reduction from Scenario M. The Cost
Share Agreement also includes provisions to manage risks associated with a long term project.
The uncertainty related to State and Federal funding is addressed in Paragraph 13 which states
that if Federal or State funds are not available or are reduced in an amount that would require
additional local funds, the parties to the agreement will meet to discuss responses. Those
3
responses could include modifying the schedule, reducing or phasing the scope of the project or
discontinuing the project.
The uncertainty related to project costs and revenue projections is addressed in Paragraph 14.
This provision requires GoTriangle to produce quarterly project reports. If those reports
demonstrate significant cost overruns or unmitigated funding shortfalls, the Agreement again
requires the parties to meet to discuss responses. This provision also provides that if the
parties cannot achieve consensus on a response, the Board of County Commissioners may
vote to withdraw from the Agreement and amend its Transit Plan accordingly.
The uncertainty related to the County's financial exposure is addressed in Paragraph 15 which
states that the County is not obligated to use any funds other than transit taxes and fees to pay
for the project.
Transit Plan Changes
The County Commissioners involved in the cost share discussions are also recommending non-
financial changes to the Transit Plans as follows.
• An evaluation of moving the Gateway station west to increase economic development
potential in Orange County.
• A provision to protect the New Hope Creek Watershed from any movement of the
Patterson Place station.
• A provision that requires that any changes to station location or alignment must be
approved by all of the parties to the agreement.
• Include the joint position to administer the Transit Plan in the Orange County Plan.
• A requirement to create an annual work plan that tracks Transit Plan implementation.
The work plan would be approved by the parties to the agreement.
• A commitment to pursue a strategic partnership for economic development specifically at
the Gateway and Woodmont stations. A framework for the partnership would be
accomplished by the end of the fiscal year.
• A requirement to revisit cost shares every four years as the Transit Plans are updated.
The final version of the Transit Plans will be amended to include language addressing these
requests.
FINANCIAL IMPACT: The Final Draft Cost Share Agreement allocates $149.5 million in
Orange County transit taxes and fees to the capital cost light rail project. Over the life of the
project debt, the Orange County's total contribution to the project would be between $321 million
and $331 million depending on the scenario that is used.
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.
4
• 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:
1. Receive the presentation; and
2. Discuss the Final Draft Cost Share Agreement and provisions to be included in the Final
Draft Orange County Transit Plan
Attachment A 5
IIUt IIII)ISCUSSION U IIUt SRAM
U M°°'IV IIU''°t IIIIIIIIII
ORANGE COUNTY, DURHAM COUNTY,
AND RESEARCH TRIANGLE REGIONAL PUBLIC TRANSPORTATION AUTHORITY
INTERLOCAL AGREEMENT FOR COST SHARING
FOR THE DURHAM-ORANGE LIGHT RAIL TRANSIT PROJECT
This Interlocal Agreement for Cost Sharing for the Durham-Orange Light Rail Transit (D-O LRT)
Project (Agreement) dated April , 2017, is entered into by and between Orange County (Orange), a
political subdivision of the State of North Carolina, Durham County (Durham), a political subdivision of
the State of North Carolina, and Research Triangle Regional Public Transportation Authority d/b/a
GoTriangle (GoTriangle), a regional public transportation authority. As used in this Agreement, Orange,
Durham, and GoTriangle may be referred to individually as a "Party" and collectively as the "Parties."
This Agreement is made pursuant to Article 20 of Chapter 160A of the North Carolina General Statutes
(N.C.G.S.) and N.C.G.S. § 105-508.1.
RECITALS:
WHEREAS, all Parties desire to provide for the future transportation needs of Durham and
Orange, understanding that enhanced mobility options will support a high quality of life, strengthen
economic development, and promote sustainability; and
WHEREAS, the Durham County Board of County Commissioners approved the first Durham
County Bus and Rail Investment Plan on June 27, 2011 (Durham BRIP); and
WHEREAS, Orange, Durham, and GoTriangle entered into the original Interlocal Agreement for
Cost Sharing for the D-O LRT Project on May 15, 2012 (2012 Cost Sharing Agreement); and
WHEREAS, the Orange County Board of County Commissioners approved the first Bus and Rail
Investment Plan in Orange County on October 2, 2012 (Orange BRIP); and
WHEREAS, the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization (DCHC MPO)
approved the Durham BRIP on June 22, 2011, and the Orange BRIP on October 10, 2012 (Orange BRIP
and Durham BRIP collectively, County BRIPs); and
WHEREAS, the GoTriangle Board of Trustees (GoTriangle Board) approved the Durham BRIP on
June 22, 2011, and approved the Orange BRIP on June 27, 2012; and
WHEREAS, the D-O LRT Project was included in both County BRIPs as a major capital investment;
and
WHEREAS, the Federal Transit Administration (FTA) issued its Record of Decision (ROD) for the
D-O LRT Project on February 11, 2016, and an Amended ROD on December 14, 2016; and
WHEREAS, in accordance with the FTA approvals, the D-O LRT Project is a 17.7-mile, 18-station
light rail transit service which will provide connections between University of North Carolina (UNC)
Hospitals, the UNC campus, the William and Ida Friday Center for Continuing Education, Patterson Place,
the South Square area, Duke University, the Duke University and Durham Veterans Affairs Medical
Centers, downtown Durham, east Durham, and North Carolina Central University; and
1
6
Olt IIII)ISCUSSION U Olt SRAM IV IIU'° IIIIIIIIII
WHEREAS, GoTriangle is seeking funds from FTA's Capital Investment Grant (CIG) Program (49
U.S.C. § 5309)for the D-O LRT Project; and
WHEREAS, the D-O LRT Project Cost Estimate which is eligible for federal participation, including
costs related to project development, engineering, construction, testing, commissioning, start-up, and
financing costs through the anticipated final year of disbursement of federal funds (projected to be
2032), is$2,476.3 million year of expenditure (YOE) (New Starts Project Cost); and
WHEREAS, GoTriangle receives and uses public monies, pursuant to N.C.G.S. Chapter 105,
Articles 43, 50, 51, and 52, to fund public transportation in GoTriangle's jurisdiction, including the
planning, financing, construction, maintenance, and operation costs of the D-O LRT Project; and
WHEREAS, there are four dedicated local revenue sources used to fund the D-O LRT Project and
other new transit projects and services in Durham and Orange: (1) Article 43 Half-Cent (0.5 percent)
Sales and Use Tax; (2) Article 50 Five-Percent (5 percent) Vehicle Rental Tax; (3) Article 51 Three-Dollar
($3) increase to GoTriangle Regional Vehicle Registration Fee; and (4) Article 52 Seven-Dollar ($7)
County Vehicle Registration Fee (collectively, Dedicated Local Transit Revenues); and
WHEREAS, in light of changes to the original funding assumptions in the County BRIPs, the
Parties have revised their funding strategy for the D-O LRT Project as follows: federal (50 percent
[$1,238.15 million YOE]), state (10 percent [$247.63 million YOE]), and local/other (40 percent [$990.52
million YOE]); and
WHEREAS, in order for the D-O LRT Project to advance to the Engineering Phase of the CIG
Program (Engineering Phase), at least 30 percent of the non-CIG share of the D-O LRT Project ($371.4
million YOE) must be deemed "committed" by FTA at entry to the Engineering Phase; and
WHEREAS, the Parties acknowledge that the total non-CIG share of the New Starts Project Cost
is $1,238.15 million YOE, of which $887.9 million YOE (71.7 percent) is committed from the Dedicated
Local Transit Revenues; and
WHEREAS, the Parties acknowledge that one hundred percent (100%) of non-CIG funds must be
deemed "committed" by FTA prior to GoTriangle's application for a Full Funding Grant Agreement,
which is anticipated to be submitted to FTA in calendar year 2019; and
WHEREAS, on February 16, 2017, GoTriangle received guidance from FTA explaining that
additional documentation would be necessary to update the estimated D-O LRT Project cost in the
County BRIPs, and to confirm that at least 30 percent of the non-CIG share (at least $371.4 million YOE)
is committed; and
WHEREAS, the Parties acknowledge material changes to the County BRIPs have occurred, as
defined in the 2012 Interlocal Implementation Agreement for Orange County Bus and Rail Investment
Plan and the 2013 Interlocal Implementation Agreement for Durham County Bus and Rail Investment
Plan, prompting the Parties to revise the County BRIPs; and
WHEREAS, on , the Durham County Board of County Commissioners adopted the
updated Durham County Transit Plan (2017 Durham Plan) and authorized the execution of this
Agreement; and
2
7
Olt IIII)ISCUSSION U Olt SRAM IV IIU'° IIIIIIIIII
WHEREAS, on , the Orange County Board of County Commissioners adopted the
updated Orange County Transit Plan (2017 Orange Plan) and authorized the execution of this
Agreement; and
WHEREAS, on , the DCHC MPO Board approved the 2017 Orange Plan and the
2017 Durham Plan (collectively, 2017 County Plans); and
WHEREAS, on , the GoTriangle Board approved the 2017 County Plans and
authorized the execution of this Agreement; and
WHEREAS, the D-O LRT Project remains a major capital investment of the 2017 County Plans;
and
WHEREAS, pursuant to the 2017 County Plans, Orange and Durham mutually desire to allocate
Dedicated Local Transit Revenues for the planning, construction, financing, and operation and
maintenance of the D-O LRT Project; and
WHEREAS, the Parties intend this Agreement to supersede the May 2012 Cost Sharing
Agreement, to memorialize a D-O LRT Project cost sharing plan, and to fully satisfy FTA's requirements
for entry into the Engineering Phase; and
WHEREAS, the Parties recognize the importance of the D-O LRT Project to Orange, Durham, the
Research Triangle region, and the State of North Carolina;
NOW, THEREFORE, the Parties hereto, each in consideration of the mutual promises and
undertakings of the other as herein provided, do hereby covenant and agree, each with the other, as
follows:
1. The effective date of this Agreement is the date first set forth above.
2. This Agreement supersedes the Parties' 2012 Cost Sharing Agreement.
3. The 2017 County Plans are specifically incorporated by reference as if the same were
fully set forth herein.
4. The New Starts Project Cost is$2,476.3 million YOE.The Parties acknowledge that as the
D-O LRT Project moves from preliminary design (30 percent) to final design (100
percent), as with any major capital project planned and constructed over a number of
years, the actual capital and financing costs may be subject to change and adjustment.
The Parties acknowledge that entry into the Engineering Phase establishes a maximum
CIG funding share of$1,238.15 million YOE.
5. As set forth in the 2017 County Plans, the Parties will seek to pay for the New Starts
Project Cost using a combination of federal (50 percent), state (10 percent), and
local/other (40 percent) funding sources. From the Dedicated Local Transit Revenues,
and as of the effective date of this Agreement, the Parties commit a total of $887.9
3
8
Olt IIII)ISCUSSION U Olt SRAM IV IIU'° IIIIIIIIII
million YOE to fund the New Starts Project Cost (County Contributions). The Parties
agree that total County Contributions shall not exceed 40 percent of the New Starts
Project Cost.
6. The share of the County Contributions committed by Durham shall be $738.4 million
(Durham Share).
7. The share of the County Contributions committed by Orange shall be $149.5 million
(Orange Share).
8. The Parties shall collaborate among themselves and with philanthropic, corporate,
institutional, non-profit, and other supporters to secure the remainder of the non-CIG
share from sources including, but not limited to: private monetary and in-kind
donations, other funds specifically identified to fund the Joint Development component
of the D-O LRT Project, and additional federal and state funds (as may become
available).
9. The costs to operate and maintain the D-O LRT system (O&M Cost) will be paid first
from light rail system fare revenues, with any remaining O&M Cost being paid from the
Dedicated Local Transit Revenues.
10. The division of responsibility for O&M Cost shall be allocated as follows: eighty percent
(80%) for Durham and twenty percent (20%) for Orange.
11. Without further approval from Orange and Durham, GoTriangle shall allocate and pay
for the Durham Share and the Orange Share of the New Starts Project Cost and shall
allocate and pay for the O&M Cost from the Dedicated Local Transit Revenues in
accordance with this Agreement and the 2017 County Plans.
12. GoTriangle may allocate and pay for the counties' respective shares of the New Starts
Project Cost from the Dedicated Local Transit Revenues on a pay-as-you-go basis and/or
by issuing debt with a par value up to the amount committed in Paragraph 5 above.
Consistent with North Carolina law and the 2017 County Plans, GoTriangle may use the
Dedicated Local Transit Revenues for the purposes of issuing and repaying debt.
13. If, during the term of this Agreement, federal CIG funds or state funds to be used for the
D-O LRT Project are cancelled, terminated, withdrawn, or otherwise become unavailable
for the D-O LRT Project, or if such federal CIG or state funds are reduced in an amount
that requires additional local revenues beyond the County Contributions, the Parties
shall meet within fifteen (15) business days to determine how to address the situation.
Such response may include, but not be limited to the following: a schedule delay in one
or more aspects of the D-O LRT Project; phased implementation of the D-O LRT Project;
a reduction in the scope of the D-O LRT Project; suspension of the D-O LRT Project;
working together to identify and pursue additional funding mechanisms to directly
support the D-O LRT Project from sources other than the Dedicated Local Transit
Revenues; a combination of these measures; discontinuation of the D-O LRT Project; or
other reasonable steps to mutually address the situation.
4
9
Olt IIII)ISCUSSION U Olt SRAM IV IIU'° IIIIIIIIII
If, after having meetings in good faith, the Parties do not reach consensus as to
reasonable steps to address the significant cost overrun or unmitigated funding
shortfall, a County Board of Commissioners may vote to withdraw from this Agreement
and amend its county transit plan accordingly.
If the Parties elect to discontinue the D-O LRT Project, the Staff Working Groups' shall
convene within twenty (20) business days to begin the process to develop new transit
plans for Orange and Durham so that funds generated by the Dedicated Local Transit
Revenues can be reallocated.
14. Upon entry into the Engineering Phase, GoTriangle will produce Quarterly
D-O LRT Project Reports in accordance with FTA requirements (Quarterly Reports) and
will share such Quarterly Reports with FTA, Orange, Durham, and DCHC MPO. In the
event of significant cost overruns or unmitigated funding shortfalls that require
additional local revenues beyond the County Contributions, as may be reflected in the
Quarterly Reports to FTA, the Parties shall meet within fifteen (15) business days to
determine how to address the situation. Such response may include, but not be limited
to the following: a schedule delay in one or more aspects of the D-O LRT Project;
phased implementation of the D-O LRT Project; a reduction in the scope of the D-O LRT
Project; suspension of the D-O LRT Project; working together to identify and pursue
additional funding mechanisms to directly support the D-O LRT Project from sources
other than the Dedicated Local Transit Revenues; a combination of these measures;
discontinuation of the D-O LRT Project; or other reasonable steps to mutually address
the situation. As used herein, "significant cost overruns or unmitigated funding
shortfalls" means either: (i) an annual decrease in total revenues from the Dedicated
Local Transit Revenues as set forth in the 2017 County Plans, as those Plans may be
amended, of 5%or more; or (ii) after entering the Engineering Phase, an increase in the
D-O LRT Project capital cost (including financing) as set forth in the 2017 County Plans,
as those Plans may be amended, of 5% or more; or (iii) an annual increase in the overall
project operating costs of the D-O LRT Project as set forth in the 2017 County Transit
Plans, as those Plans may be amended, of 5%or more.
If, after having meetings in good faith, the Parties do not reach consensus as to
reasonable steps to address the significant cost overrun or unmitigated funding
shortfall, a County Board of Commissioners may vote to withdraw from this Agreement
and amend its county transit plan accordingly.
If the Parties elect to discontinue the D-O LRT Project, the Staff Working Groups shall
convene within twenty (20) business days to begin the process to develop new transit
plans for Orange and Durham so that funds generated by the Dedicated Local Transit
Revenues can be reallocated.
1 As set forth in the Durham and Orange Implementation Agreements, the Staff Working Group for each
County Plan consists of one voting member and one alternate from each of the following entities: the
applicable county, GoTriangle, and DCHC MPO.
5
10
Olt IIU U S S IIU U U � IIU°°° IIU° SRAM IV IIU'° IIIIIIIIII
15. If the balance of the Dedicated Local Transit Revenues attributed to a county is
insufficient to meet that county's respective share of costs, then neither Orange nor
Durham shall be obligated to use revenues other than the Dedicated Local Transit
Revenues to pay its respective share.
16. If, after the effective date of this Agreement, the Parties are authorized to levy new
transit-specific taxes or fees, or if the limits of the Dedicated Local Transit Revenues are
expanded by the North Carolina General Assembly, this Agreement shall not obligate
the use of such additional revenues for the D-O LRT Project.
17. GoTriangle shall provide an annual report on the collection, allocation, and expenditure
of the Dedicated Local Transit Revenues to the elected governing boards of Durham and
Orange. GoTriangle shall provide to the governing boards of Durham and Orange copies
of its annual audit reports as those reports are related to the collection of transit
revenues in Durham and Orange, including funds collected pursuant to N.C.G.S. Chapter
105, Articles 43, 50, 51, and 52.
18. The term of this Agreement shall continue until the latter of June 30, 2037 or the final
maturity date of any debt issued in connection with the D-O LRT Project and payable
from the Dedicated Local Transit Revenues.
19. This Agreement may be terminated upon mutual agreement of the Parties. In the event
of termination prior to the expiration of the term set forth in Paragraph 18 or of any
extensions thereto, the Parties shall determine what obligations remain and how to
equitably distribute such obligations as they relate to the D-O LRT Project.
20. To be effective, any amendment, change, correction, extension, or termination of this
Agreement shall be in the form of a written instrument approved by the governing
board of each Party.
21. This Agreement shall be governed by and in accordance with the laws of the State of
North Carolina. All actions relating in any way to this Agreement shall be brought in the
General Court of Justice in the County of Durham, North Carolina.
22. Except to the extent provided otherwise in this Agreement, the Orange County Manager
shall designate persons to carry out Orange's obligations under this Agreement, the
Durham County Manager shall designate persons to carry out Durham's obligations
under this Agreement, and the General Manager of GoTriangle shall designate persons
to carry out GoTriangle's obligations under this Agreement.
23. All equipment, improvements, and interests in real property acquired under this
Agreement shall be the property of GoTriangle or another entity under separate
agreement and shall be subject to disposition as required under applicable law.
24. This Agreement is entered into by the Parties for their purposes only and does not
confer any rights, benefits, remedies, or privileges on any other person or entity.
6
11
Olt IIU U S S IIU U U � IIU°°° IIU° SRAM IV IIU'° IIIIIIIIII
25. If any provision of this Agreement is determined to be unenforceable by a court of
competent jurisdiction, such determination shall not affect any other provision of this
Agreement.
26. Pursuant to N.C.G.S. § 147-86.59, any person identified as engaging in investment
activities in Iran, determined by appearing on the Final Divestment List created by the
State Treasurer pursuant to N.C.G.S. § 147-86.58, is ineligible to contract with the State
of North Carolina or any political subdivision of the State. The Iran Divestment Act of
2015, N.C.G.S. § 147-86.55 et seq., requires the contracting party to certify that it meets
the requirements of the Iran Divestment Act. By execution of this Agreement, each
Party certifies that it is not on the Final Divestment List of entities that the State
Treasurer has determined engages in investment activities in Iran, and that it shall not
utilize in connection with this Agreement any subcontractor that is identified on the
Final Divestment List.
27. Each Party acknowledges that the individual executing this Agreement on behalf of the
respective party is authorized to execute the document and to bind the Party to the
terms contained herein. The Parties further acknowledge that they have read this
Agreement, conferred with their legal counsel, and fully understand the contents of this
Agreement.
28. A copy or facsimile copy of the signature of the individuals executing this Agreement
shall be deemed an original with each fully-executed copy of this Agreement as binding
as an original.The Parties agree that this Agreement can be executed in counterparts, as
triplicate originals, with facsimile signatures sufficient to evidence an accord to be
bound by the terms of this Agreement.
29. The terms and provisions herein contained constitute the entire agreement by and
among the Parties and shall supersede all previous communications, representations, or
agreements, either oral or written among the Parties with respect to the subject matter
herein.
IN WITNESS WHEREOF, this Agreement has been executed, in triplicate originals, on the part of
Orange County, Durham County, and GoTriangle by authority duly given.
INTENTIONALLY LEFT BLANK.
SIGNATURES CONTINUED ON PAGE FOLLOWING.
7
12
IIC IIU° IIU''°°I°° FOR DISCUSSION - NO I FOR IIU U °°I°°IV ROE
ATTEST: DURHAM COUNTY, NORTH CAROLINA
BY: BY:
TITLE: TITLE:
This instrument has been pre-audited in the Reviewed and approved as to legal form by
manner required by the Local Government Budget Durham County.
and Fiscal Control Act by Durham County.
George Quick Lowell Siler
Chief Financial Officer County Attorney
ATTEST: ORANGE COUNTY, NORTH CAROLINA
BY: BY:
TITLE: TITLE:
This instrument has been pre-audited in the Reviewed and approved as to legal form by Orange
manner required by the Local Government County.
Budget and Fiscal Control Act by Orange County.
Gary Donaldson John Roberts
Chief Financial Officer County Attorney
ATTEST: RESEARCH TRIANGLE REGIONAL PUBLIC
TRANSPORTATION AUTHORITY D/B/A
GOTRIANGLE
BY: BY:
TITLE: TITLE:
This instrument has been pre-audited in the Reviewed and approved as to legal form by
manner required by the Local Government Budget GoTriangle.
and Fiscal Control Act by GoTriangle.
Saundra Freeman Shelley Blake
Chief Financial Officer and Director of General Counsel
Administrative Services
8
Attachment B 13
Co ms o,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Gvangr:ll'vanait Plan Scenario ti.'ompairfs®n
The information shown s current as of the time of distribution.This information s preliminary and subject to change based upon ongoing d iso nn one with and updates by Gofriangle.
1 Scenario V=1 Cl .__. ._.28 V£4 M 33 73 7 40 VS RR .__.
2
3 Scenario Description Included In April 4th Scenario Requested for Under Consideration/ Under Consideration/
Davenport Presentation Draft 201.7 Orange Requested by Working Requested by Worlswig
Transit Plan Group Group
4
5 LIT Cost Shave Assumptions(Ducharm/Orange/Private)
6 Grapnel Coot w,2/'1S 52/18 82./'16/2 815/1..65320
7 Shared Borrowings S2/1S 82/1.8 S2/1S 81..5/1.8.5
Ope;rakons and Maintenance
9 Through 2036 .__. 8(/r( .__. .__.80/2�0 I./19 80./�0 .__.
10 After 2030 elate of Good Repair 80/20 50/90 8.1/.159 51../19
1.1. .__. .__. .__. .__.
12 Through 2.036 x,6/20 50/90 S:1/.1: 50/
(1 90
13 After 2035 S /2 .__. .__.80/20 81/19 81/1 .__.
1.4
15 GUrbore Wake CRT a Scenario.P -.. ScenarioP .__.
1.6
17 LIT iffitiall Capital Cost
1D F'TA IVew Starts(arrant.C apital Cots .._. .._. .._. .._. $ .._. 1.'1 14 984.214 $ .._.1.194)284 21.4 $ 1.894.284214. $ 1 1..94.184 914
1.9 elate Funding Capital Costs -__ .__. .__. .__. __.. 2 8.856,843 .__. 38,853843 233856,643 238,6 x6,843
20 In Wad Contributions
21 Orange County 3487,75ff .__. 3p 87.758 -.. 4487,758 .__.3,534,640
22 Durham County 15.8E8375 15.w88675 15,SSS.675 15.791 793
23 Joint Development.Grant.^, .__. .__. .__. .__. .__. .__. .__. .__.
24 Grange County 11.716.747 11.716.747 11 716.747 1,.042912
2li Our harp County .__. .__. .__. .__. __.. 5,.376,790 .__. 53,,76,3..96 53376,290 53,050525.
26' final`Share Pnvate Caplt al Campaign(First$131.2 rl'llliron Applied to Orange:CourAyl ..... ..... ..... ..... ..... 1£5 110.000 ...15.120,000
27 Lethal Sham Orange County -__ .__. __. .__. 15377242222 .__. 156,772422 138,652,422 1.43,1017 212
2H Local Share Durham County 714185.479 714. 85.479 714 185.479 709.830,690
29 Total LRT Initial Capital Cost $__.. 388.568,428 $ .__.y 388,568428 $ 2„388.568,428 $ 2,388,x(afi,428
30
31.LIT redo iffitiall Capital and Borrowing Cost.
32 F'TA IVew Starts Grant.Capita l rend Borrowing Costs ..... ..... ..... $ ..... 1.2391164.227 $ .....1.1.4.6:1:1240 $ 1...235417.397 $ 12:5.12661"1.
33 Slate Funding Capital and Borrowing Costs -__ .__. .__. .__. 7457733,697 .__. 244,861.1.67 245,026,598 244,939,841.
34 In Wad Contributions
35 Orange County 3487,758 .__. 3487.758 -.. 4487,758 .__.3,534,640
36 Durham County 15.FiE8375 15.w88675 15,SSS.075 15.791 793
37 Jong Development.Grant.^, .__. .__. .__. .__. .__. .__. .__. .__.
38 Grange County 11.716.747 11.716.747 11 716.747 1,.042112
39 Our ha rn County 5,.376,290 53,,76,396 3376,290 53,050525
40 final`Share Pnvate Caplt al Campaign(First$131.2 n'llliron Applied to Orange:County) ..... ..... ..... ..... ..... 1£5 110.000 ...15.120,000
4.1 Local Share Orange County -__ .__. __. .__. ,11.931,!349 .__. 31.0,664.1.41. 292 663,152 301,1 x47 5!5
42 Local Share Durham County 1.421.011...800 .1.415.247.75: 1..41>790.365 1.,406.983,067
43 Total LRT Initial Capital and Borrowing Cost -__ .__. .__. .__. $ 3,302.320,443 $ .__. 89342770 $ 3291497,054 $ 3,290,69 x,51.5.
44
45 Grange County LIP State of Good Repair through 20112
46' Cash Funding .._. .._. .._. .._. .._. .._. $ .._. >:x 652.485 $ .._. 22.682.4E5 $ .._. 17,945.360 $ 1 7.94£5 360
47 Debt Funding .__. .__. .__. .__. __.. 44.000.00(7 .__. 72.00(7.000 72,000,000 ...72!000,000.
48 Interest.and Borrowing Costs 3916326 10.77'11..1.5 10)773.1i 10.773115
49 Total State at Goods Refrain $ 93598,511 $ .__. 105,453603 $ __.101017,1.,478 $ 100,727.,478
50
131 tither Orange County Tax CDV:sthof Funding through 2045
52 Bus O&M f 1119.760.380 $ 1.9.66912.59 f 1.39669259 $ 1.:9.661'259...
53 DO LET.f. .__. .__. .__. .__. $ 8&.270.664 $ .__. 88.27(7.664 $ 3d 857.1.30 $ ...85.6 x7.,778.
¢34 Bu.,Facilities and Capital Projects(Inrludini Replacements) $ 7.501.643 $ S.059.476 $ 8,059476 $ S.059,476'
E5E5 Vehicles(Including Replacements).__ .__. .__. .__. $ 14.168348 $ .__. 14,247.696 $ -..14,247,696 $ 14,147,696.
230 Iry BRT Project(Constructon Costs) $ 6.1.25.000 $ 6825.000 $ 6,1.25.000 $ 6.1.25,000
237 Hillsborough Train Station Project(Construction Costs) $ 686,666 $ 653000 $ 686,000 $ 686,000
lib
59 Grange County belles Tax Aseaure faf ores
60 FY 201.7.2046 Moody,Baseline: Moodys Baseline Moody's Paseirne Moody's Baseline
61. FY 2047.2062 4.33%, .__. .__...71%, .__. 3.7130 3.71.% .__.
62
63 Grange County Financing.Aseaureptfiores
64 Locally Funded lOBs-InIf.•eLRT .._. .._. .._. .._. .._. $ .._. 659.000.000 $ .._. 67.500.000 $ .._. 72,500.000 $ 71.1x00,000
65 Grant Funded I_)ff.-Irnfatal 6(1.300,000 .__. 60,800.000 -...55,800,000 57,350,000
663' TIFIA Loan Inlf el I..RT 77.400.000 77.400.000 77,400.000 79.550,000
67 I_ocaily Funded ICBs-State at Good Repair .__. .__. .__. __.. 44.000,000 .__. 72,000.000 72,000,000 ...72,000,000.
68 Total Orange County Financing.. .._. .._. .._. .._. .._. $ .._. 2°50.700.660 $ .._. 177.160.000 $ .._277,700.000 $ 281.400,000.E
o.5 .__. .__. .__. .__. .__. .__. .__. .__. .__. .__.
70 Reserve)Assumptions
71 Cash Balance Maintain Positive Maintain Positive Maintain Positive Maintain Positive
Balance Balance Balance ['Balance
72 Op;ratmg Reserve 3Mrmih.,/25%of 3 Months/95%of 3Monihs/2b'/of 3 Months/15%of
CH/OPT Bus 0&M CH/OPT Bus O&M CH/OPT h..s 0&M CH/OFF Bus Ol
73 Debt Service Reserve 100 of Debt issued 10'%of Debt Issued 10%of Debt Issued 100%of Debt Issued
74
Ili Financial l-Ie ft Criteria
76 IWnimurn Aggregate.D'CR LOBS(Initial RTl 1.17x 1 19x 1 1.£5x 1..18x
77 Minimum Aggrnga Le DSCR Grant Funded LOBS(Initial LRi) 1.28x 134x 1..27x 1.31x
7H IWnimurn Aggregate.D'CR TIFIA&Staate,of Good Rcepair 1 21x 6 18x 1 0£5x 1..07x
79 Minirnurn Cash Balance During Construction-Orange(Fiscal Year) .__. .__. /1.2168,03(21.1. A . 7.303(2027) $4,990.825(2019)._. $4,362,360(201.9)__.
HO IWnimurn Cash Balance:After Construrton-Orange.(Fiscal Year) $21:x715(1045) $1.041870(1030) $19.57831. (1030) $1h.53.375(20)2;7)_
H1. Minmmnurn Cash Balance During Construction-Our harp(Fiscal Year) $34,983247(2021) $7,673391(2027) /3.669,460(2025) $3,427,523(2021)
£S2 IWnim urn Cash Balance After Construction Durham(Fiscal Year) .._. .._. $72.484154(10'19) $5'1.45..435(9029) $1820.398(2035)_. $['.4)1.0,091(1035)._
Davenport&Company LLC 1 18:49 1 4/19/2017
14
Attachment C
Recommended Changes to the Draft Orange County Transit Plan
1, 2, 3. Section 4.6 will be updated with a new sub-section:
"Agreements for Making Changes to the Project
As the project moves forward into the Engineering Phase, GoTriangle will evaluate changes to
the track alignment and station location at several sections to optimize the project's
performance and the counties' financial investment.The goals of these changes include
minimizing conflicts with vehicular& pedestrian traffic, and maximizing development
opportunities and access for transit passengers.
The Federal Transit Administration (FTA) requires GoTriangle to re-evaluate any change to the
project to assess the environmental effects of the proposed change. FTA requires GoTriangle to
evaluate the proposed change for its effects on the human and natural environment. If the
proposed change results in environmental effects, GoTriangle must demonstrate that the
effects would be avoided, minimized, or mitigated through the existing commitments in the
Amended Record of Decision before the change may be advanced in the design.
Before advancing the proposed design change, the FTA must review and concur with the
findings in the environmental re-evaluation. If FTA believes that additional environmental
documentation is required to further assess the environmental effects, FTA will instruct
GoTriangle to prepare and publish supplemental environmental documentation for public
review and inspection. This supplemental environmental documentation will include any
additional measures to avoid, minimize, or mitigate the effects of the change. The additional
measures to avoid, minimize, or mitigate the effects of the change are then included in an
Amended Record of Decision. This was recently completed for the addition for the design
refinement associated with the addition of a station at North Carolina Central University.
While all design changes must be comprehensively re-evaluated for environmental effects, not
all design changes will result in the preparation and publication of supplemental environmental
documentation or amendments to the Record of Decision. The FTA makes this determination.
At this time, GoTriangle is evaluating the following proposed refinements to the project design:
• A shift of the Patterson Place station towards the east, beyond Sayward Drive. As
previously stated, this proposed station refinement will be re-evaluated, just as all
proposed design changes for environmental effects. FTA must review this re-evaluation
and concur with the findings before GoTriangle can incorporate this proposed change
into the final design of the project.
GoTriangle is aware of the proximity of the Patterson Place station to New Hope Creek,
a sensitive watershed. GoTriangle must comply with all local and state regulations and is
required by FTA to carry out the mitigation commitments outlined in the Amended
15
Record of Decision as part of the project's design. Any private land development that
may result from the location of the station must comply with Durham City/County's
regulations, which include regulations about the environmental effects of development.
• A shift of the Gateway station to the west, away from 1-40. This change was
recommended by GoTriangle's transit-oriented development consultants in a station
area land-use study. If implemented, the proposed station refinement has the potential
to significantly increase the economic development opportunities for both counties at
that site. Again, this proposed refinement will be re-evaluated for environmental
effects. FTA must review this re-evaluation and concur with the findings before
GoTriangle can incorporate this proposed change into the final design of the project.
The approving Boards of this plan agree that any additions or deletions of stations along the D-
O LRT Project alignment would require approval by the Orange County Board of
Commissioners, Durham County Board of Commissioners, and DCHC MPO Policy Board, and the
GoTriangle Board. Changes to station locations that would be significant enough to require
approval by the GoTriangle Board of Trustees, such as the two changes described above, will be
presented in advance to the Orange County Board of Commissioners, Durham County Board of
Commissioners, and DCHC MPO Policy Board for their input."
4. Add a new subsection to Section 4—Administrative and Service Support will be amended to
include funding for a part-time position at the DCHC MPO to manage the ongoing work of the
Staff Working Group, including distribution of quarterly status updates on the Durham-Orange
Light Rail Transit project. The cost will be split between Orange County and Durham County
and funded at an annual amount of approximately$49,000, escalated annually.
5. Add a new subsection to Section 6—Annual Work Plans
Each year, the Staff Working Group will develop a Work Plan that sets forth the program of
transit capital and operating improvements to be undertaken using Tax-District Revenue.
The Work Plan will include:
• the Annual Budget discussed in Section 6.4
• the Multi-Year Capital Improvement Program discussed in Section 6.1
• the Multi-Year Operating Program discussed in Section 6.1
• project-specific agreements as discussed in Section 6.3
• an update of the long-term Financial Plan
The Work Plan would be presented to Orange, Durham, and DCHC MPO Boards each Spring
prior to consideration for approval by the GoTriangle Board and DCHC MPO Policy Board in May
for the upcoming fiscal year, beginning in May 2018.
16
6. Add to Section 4 -Two of the stations in the Project are near the border between Durham
County and Orange County and are located within the municipal limits of the Town of Chapel
Hill —Woodmont station and Gateway station. In this Plan, Orange County agrees to work with
Durham County to pursue strategic economic development partnerships around the sites of
these two stations."
7. Update Section 6.2– Light-Rail Cost-Sharing Agreement
"The Cost-Sharing Agreement as well as the County Transit Plan will be reviewed every four (4)
years."
17
Attachment D
nom oloolool 1101101101101101101101"
00000 11111111111111 IOINONIOINONIn
00 „Iv 00
0000 Illll�. I y1�11 I 1111 11111 111111
OD 11111111
April 19, 2017
TO: Board of Orange County Commissioners
FROM: Travis Myren
Deputy County Manager
Theo Letman
Transit Director
RE: Potential Expansion Bus Service
This memorandum is in response to Commissioners' questions regarding potential expansion bus service
that may be implemented if funding were available through Orange County's Transit Plan.
The Transit Director has reviewed seven service concepts that were developed as part of the 2012 Bus
and Rail Investment Plan but were not funded. Although these particular concepts would need to be
more thoroughly analyzed for potential ridership, fare revenue, and other changes that have occurred
since they were developed, they are intended to serve as a rough estimate of the amount of funding
that would be required to implement measurable new service. The Transit Director has estimated the
cost implementing these seven different service concepts in the table below. The total cost is
approximately$444,000.
Route/Service Estimated Estimated Total Estimated Total Annual
Service Hours Annual Days Estimated Operating Cost
Service Hours FY2018 Dollars
Expand Route 420 service to a total 3 250 750 $ 50,670
of 12 service hours
Expand U.S.70 midday service to
Durham and provide hourly 5 250 1,250 $ 84,450
headways
Hillsborough Circulator early 3 250 750 $ 50,670
morning/evening service
Hillsborough Circulator Weekend 6 52 312 $ 21,079
Service(Saturday)
Expansion of Route 420 Peak 4 250 1,000 $ 67,560
Service to Cedar Grove
18
Saturday Cross-County Service
(same as U.S.70 midday service) 5 52 260 $ 17,566
Expand Hillsborough Circulator to
provide half-hour headways 9 250 2,250 $ 152,010
Totals 6,572 $ 444,004
Bus Service Funding
The allocation of funding for expansion bus service is governed by an Interlocal Implementation
Agreement between Orange County, the Durham-Chapel Hill-Carrboro Metropolitan Planning
Organization, and Go Triangle. The original Agreement was approved in October of 2012 and specified a
funding formula for new bus services. The formula allocates sixty-four percent (64%) of expansion
funding to Chapel Hill Transit, twenty-four percent (24%) to Go Triangle for regional bus services
provided in Orange County, and twelve percent (12%)to Orange Public Transportation.
As a result of the funding formula, a total of approximately $3.7 million would need to be available in
the Orange County Transit Plan in order for Orange County to yield $444,000 for the expansion service.
Those funds would be distributed according to the following table.
Agency Percentage Amount
Chapel Hill Transit 64% $2,368,000
GoTriangle 24% $888,000
Orange Public Transportation 12% $444,000
TOTAL $3,700,000
These allocations are consistent with the provisions of the current Interlocal Agreement. However,
several changes have occurred since the original Interlocal Agreement was adopted that would suggest
an update is prudent. At the time the Agreement was adopted, Orange Public Transportation was a
nascent agency. Since that time, the County has responded to changes in demographics and service
demand by creating a Transportation Department, hiring a Director, and updating service plans. If the
light rail project proceeds in the Transit Plan, the transportation agencies in Orange County will also
need to discuss how the potential bus dividend will change the need for bus services and the funding
associated with those services. Any updates that are made to the Agreement will have an impact on the
total amount of funds that would need to be generated in order for Orange County to implement the
services described above.
We are working with GoTriangle and Davenport & Company to determine how much additional bus
service can be afforded in the current cost share scenarios. We intend for that information to be
available prior to the Board's work session on Thursday evening.
We hope that this information is helpful. Please contact me or Theo with any questions or concerns.
Page 12