HomeMy WebLinkAboutAgenda - 03-07-2017 - 7-a - GoTriangle Presentation on the Status of the Durham Orange – Light Rail Transportation (DO-LRT) Project 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 7, 2017
Action Agenda
Item No. 7-a
SUBJECT: GoTriangle Presentation on the Status of the Durham Orange — Light Rail
Transportation (DO-LRT) Project
DEPARTMENT: County Manager
ATTACHMENT(S): INFORMATION CONTACT:
1. February 16, 2017 Federal Bonnie Hammersley, 919-245-2306
Transportation Authority (FTA) Email Travis Myren, 919-245-2308
2. March 2, 2017 GoTriangle Email John Roberts 919-245-2318
Regarding FTA Revised Requirements
3. Light Rail Transportation-Bus and Rail
Investment Plan (LRT-BRIP) Timeline
PURPOSE: To receive a report from GoTriangle representatives on communications between
GoTriangle and the Federal Transportation Authority (FTA) related to the timeline for the
Durham Orange — Light Rail Transportation (DO-LRT) project, and discuss the implications of
the most recent information on the project and potential options for the project.
BACKGROUND: On February 16, 2017 GoTriangle received an email from the Federal
Transportation Administration (FTA) requesting clarification on documentation to proceed with
the Durham Orange — Light Rail Transportation (DO-LRT) project (Attachment 1). GoTriangle
drafted a letter on behalf of the Orange and Durham County Managers that was intended to
address the requested clarifications.
On March 2, 2017 GoTriangle reported that a letter from the County Managers would not offer
sufficient documentation on the financial commitments made by the counties. Rather, in order
for the project to proceed to the engineering phase, FTA is requiring approval of three (3)
updated documents related to the DO-LRT project (Attachment 2):
• Bus and Rail Investment Plan in Orange County;
• Implementation Agreement between Orange County, GoTriangle and the Metropolitan
Planning Organization (MPO); and
• Cost Sharing Agreement between Durham County, Orange County and GoTriangle.
The County has most recently been operating with the understanding that the Bus and Rail
Investment Plan and the associated agreements would be approved in June as outlined in
Attachment 3. GoTriangle has reported that FTA is requiring the documents be approved by
April 2017.
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Go Triangle representatives will present the timeline of events leading up to this most recent
communication from FTA and potential options for the project.
FINANCIAL IMPACT: This abstract is to provide information to the Board of County
Commissioners. As such there is no additional financial impact.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: ENABLE FULL CIVIC PARTICIPATION
Ensure that Orange County residents are able to engage government through voting and
volunteering by eliminating disparities in participation and barriers to participation.
RECOMMENDATION(S): The Manager recommends that the Board receive updated
information and consider options for the project.
Attachment 1 3
Lr
Tammy Bouchelle
From: Edwards, Tyrhonda (FTA) <tyrhonda.edwards @dot.gov>
Sent: Thursday, February 16, 2017 11:44 AM
To: Jeff Mann
Cc: Sinquefield, Robyn (FTA); McFadden-Roberts, Gail (FTA);Turk, Daniel (FTA);Whyte,
Dudley (FTA);Taylor,Yvette (FTA); Garliauskas, Lucy(FTA); Day, Elizabeth (FTA);Tammy
Bouchelle; Katharine Eggleston; Patrick McDonough; David Charters; Lei, Guanying
(FTA); Saundra Freeman; Danny Rogers
Subject: Durham- Orange LRT Project Follow-Up
1
Good Morning Mr. Mann, !`.
Thank you for speaking with us by phone on February 15 about your request for the Durham-Orange LRT project to
enter the Engineering phase of the Capital Investment Grant (CIG) program. This email serves to summarize the
conversation we had and further clarify the documentation needed by FTA to proceed. If you have any questions about
this information, please let us know.
Based on our review of the documentation provided to date by GoTriangle, FTA does not believe 30 percent of the non-
CIG funding is committed to the project as required to enter the Engineering phase. The local cost sharing agreement
provided by GoTriangle as proof of the local funding commitments is outdated, quoting a project cost of$1.3 billion
rather than the current$2.5 billion. The agreement clearly states that"in the event the capital costs exceed the current
estimated total of$1.3 billion,the parties agree to discuss a response to the situation. Such response may include but
not be limited to a schedule delay in one or more aspects of the LRT project, a reduction in the scope of the LRT project,
a combination of these measures, discontinuation of the LRT project, or other reasonable steps." Additionally,the
agreement does not specify the revenues each jurisdiction is willing to pay. Rather, it specifies only a percentage of the
total project cost assigned to each jurisdiction and that amount includes Federal funding, state funding(which the
agreement states would be 25 percent) and local funding. Given that we know the state funding will not exceed 10%
based on a state law passed since the local agreement was originally signed, it is unclear to FTA what exact dollar
amount the local funding partners have agreed to provide.
GoTriangle also provided FTA with recently signed Memoranda of Understanding(MOUs) between GoTriangle and the
three local jurisdictions. While these MOUs indicate the jurisdictions' continued support of the project,they specifically
say"the parties acknowledge the MOU does not create an enforceable fiscal obligation."
Other interlocal agreements submitted by GoTriangle also raise additional concerns regarding the commitment of local
revenues to the project. For example:
o The Implementation Plans for Durham and Orange Counties state that if there is an increase in the
Project cost of 10 percent or more it is deemed a "Material Change" and such a change is only effective
with the approval of the Durham and Orange Boards of County Commissioners,the Durham-Chapel Hill-
Carrboro MPO,and GoTriangle. It does not appear that these approvals from these jurisdictions have
been obtained by GoTriangle.
o Based on the financial plan submitted to FTA in December 2016, GoTriangle would need to issue limited
obligation bonds that would be secured with dedicated local revenues. The local funding agreements do
not include the planned amount of bond proceeds and local revenues that would be needed to make
debt service payments. Again, it is unclear to FTA whether the agreements would need to include this
information for GoTriangle to have the authority to issue the proposed debt.
4
In a written response provided by GoTriangle to FTA on January 12, it was stated that work is currently underway to
update the Durham and Orange Transit Plans and get more funding committed to the project. GoTriangle stated these
approvals were anticipated to be completed April 2017.
Therefore, FTA will provide GoTriangle until April 2017 to submit additional information to FTA documenting the
commitment of at least 30 percent of the non-CIG funding required to enter the Engineering phase. The documentation
submitted by GoTriangle must clearly identify the amount of non-CIG funds committed from a given revenue source and
demonstrate no further approvals would be necessary to obtain the funds from that source.
If GoTriangle is unable to provide the necessary documentation showing at least 30%of the non-CIG funding is
committed by the end of April 2017, no further extensions of the Project Development phase will be approved. Per
FTA's Final Interim Policy Guidance, "the project will automatically be withdrawn from PD. Project sponsors must
complete the work activities . . .before they would be allowed to apply for entry into the Engineering phase of the CIG
program. Any work performed after withdrawal from PD and prior to re-entry into Engineering would not be covered by
pre-award authority and would be ineligible for reimbursement at a future date should FTA ultimately award a
construction grant agreement."
Please contact us if you have any questions.
Thank you.
Tyrhonda Edwards
Federal Transit Administration
Office of Planning and Environment(TPE)
1200 New Jersey Ave, SE
Washington,DC 20590
Phone: 202-366-8521
CONFIDENTIALITY NOTICE:
The information in this message is confidential and may be legally privileged. It is intended solely for the addressee. If you are not
the intended recipient, any disclosure,copying,or distribution of this message,or any action or omission taken by you in reliance on
it, is prohibited and may be unlawful. Please immediately contact the sender if you have received this message in error.
2
Attachment 2 5
From: Travis Myren
To: Grea Wilder
Subject: FW: D-O LRT Update from FTA
Date: Thursday,March 02,2017 2:39:35 PM
Attachments: image001.cng
From: Mike Charbonneau [mailto:MCharbonneau @gotriangle.org]
Sent: Thursday, March 02, 2017 1:10 PM
To: ALL_BOCC_MANAGER_CLERK; commissioners @dconc.gov
Cc: county_manager @dconc.gov; Bonnie Hammersley
Subject: D-0 LRT Update from FTA
Please see the message below from GoTriangle General Manager Jeff Mann:
Dear Local Leaders,
GoTriangle staff has received a call from the Federal Transit Administration (FTA).
• In that conversation, the FTA stated that county letters will not be sufficient to satisfy their
required additional documentation of the commitment of at least 30 percent of the non-
federal funding for Durham and Orange counties' light rail project.
• Based on that conversation, it has been determined that updated Bus Rail Investment Plans
(BRIPs) are required, with approval by Durham and Orange counties,to satisfy the additional
documentation requested by the FTA.
• It is necessary for Durham County, Orange County, GoTriangle and the Durham-Chapel Hill-
Carrboro Metropolitan Planning Organization (DCHC MPO) to meet to discuss the options,
next steps and best path forward for the planned light rail project.
• According to their February 16 email, FTA is requiring additional information by the end of
April (2017) documenting the commitment of at least 30 percent of the non-CIG (non-
federal) funding required to enter the Engineering phase. That documentation must clearly
identify the amount of non-federal funding committed from a given revenue source and
demonstrate no further approvals would be necessary to obtain the funds from that source.
• According to FTA's pervious email, if the end of April 2017 deadline is not met no further
extensions will be given and Durham and Orange counties' light rail project will
automatically be withdrawn from the FTA Project Development process.
• If the project is withdrawn, once updated plans are approved, Durham and Orange counties'
light rail project application can be resubmitted to FTA for consideration, but there will be
increased costs associated.
6
• There are no guarantees that the project would be allowed back into the FTA New Starts
process to be considered for a Federal investment of more than$1 Billion in Durham and
Orange Counties.
Jeff Mann
General Manager
GoTriangle
4600 Emperor Blvd, Suite 100, Durham, NC 27703
P.O. Box 13787, RTP, NC 27709
Phone: 919.485.7424
E-mail: mann a)•atria nglle org
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Attachment 3 7
Schedule of BOCC Action Related to Light Rail Project and the
Bus and Rail Investment Plan
The timeline was developed with the understanding that June 2017 approvals met the FTA
requirements. GoTriangle will provide alternative timeline options on March 7, 2017.
Key Dates Action Items BOCC Action Responsible Parties
Requested for Information
BOCC Meeting Board of Commissioners to consider response Approval of County Manager's
March 7, 2017 to FTA on questions raised in February 16 response to FTA Office
email from FTA.
March 17, 2017 Go Triangle to issue new financial model to No BOCC Action Go Triangle Staff
delineate flow of funds between counties and
to run scenarios of allocation of funds among OC Financial Advisors
transit services. to analyze
Week of April 3rd—April OC Financial Advisors to meet individually Ask questions and County Manager's
13th with BOCC members on analysis of new request clarifying Office
financial model information
OC Financial Advisors
April 17 Draft Bus and Rail Investment Plans (BRIP) Review draft BRIP Go Triangle Staff
available
BOCC Meeting OC Financial Advisors present results of the Provide direction to OC Financial Advisors
April 18 financial model analysis Go Triangle
representative. No Go Triangle Staff
BOCC to provide direction to Go Triangle formal BOCC
representative on whether to proceed with required.
LRT engineering contracts.
Week of April 24, 2017 Present options on cost sharing agreement No BOCC Action County Manager's
with Durham County (Update LRT costs and Office
cost allocations between the counties)
BOCC representatives
Present options on Implementation on MPO and Go
Agreement (Update LRT Costs and Triangle Boards
acknowledge Material Change)
April 26, 2017 Go Triangle Board of Trustees to consider No BOCC Action Go Triangle Board of
engineering contracts Trustees
April 26—May 17 Public comment period on Draft Bus and Rail No BOCC Action Go Triangle
Investment Plan and presentations to Staff/MPO
municipal and County boards
BOCC Meeting Presentation to BOCC Ask questions and Go Triangle Staff
May 16, 2017 • Draft Bus and Rail Investment Plan request clarifying
• Updated Cost Share Agreement information
• Updated Implementation Agreement
BOCC Meeting Approval of Final Bus and Rail Investment Approval of Bus County Staff
June 6, 2017 Plan, Cost Share Agreement, and and Rail Investment
Implementation Agreement Plan and related
agreements