Agenda - 06-05-2012 - 5a - Laserfiche WebLink

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30 1 utilizing light rail vehicles ('LRT Project") as an important element in meeting their future 2 transportation needs and supporting efficient, sustainable development patterns; and 3 4 Whereas, the Parties acknowledge that the LRT Project will be managed, planned, 5 constructed, maintained and operated by the TTA according to each jurisdictions Bus and Rail 6 Investment Plans ("BRI Plans") as respectively adopted or subsequently modified by the 7 Parties, which plans, once adopted shall be incorporated herein by reference; and 8 9 Whereas, pursuant to NCGS §105-508.2 (Article 43) and Chapter 105 Articles 50 and 10 51, revenues will be collected by the Secretary of the North Carolina Department of Revenue 11 and distributed to TTA to fund public transportation in TTA's jurisdiction including the 12 construction, maintenance and operation of the LRT Project; and 13 14 Whereas, the Parties have bargained to agreement on an equitable division of 15 responsibility to pay for the Costs of the LRT Project. 16 17 Now therefore, in light of the mutual covenants contained herein and provided that the 18 LRT Project moves through planning and construction as set forth in the BRI Plans as may be 19 modified from time to time, the Parties hereby agree as follows: 20 21 1. The total capital cost for the LRT Project through 2035 is estimated to be $1.378 22 billion dollars as of the date of this Agreement. For purposes of this Agreement 23 capital costs include only planning and construction of the LRT Project ("Capital 24 Costs") which is estimated at 13 years and are a portion of the total Costs. Over the 25 coming years the Parties acknowledge that the LRT Project will move from 26 preliminary to final design, which will result in a more precise project description and 27 more accurate Capital Costs. As a result of this and as with any major capital 28 project planned and constructed over a number of years, the Parties understand that 29 the estimated Costs of the LRT Project may be subject to change and adjustment. 30 31 2. Subject to Section 5 herein and based upon a total Capital Cost estimate of $1.378 32 billion for the LRT Project, it being anticipated the LRT project will be funded 50% by 33 the federal government and 25% by the state government, Durham's share 34 (including federal, state and local transit tax proceeds) of this total shall be $1.061.8 35 billion and Orange's share (including federal, state and local transit tax proceeds) of 36 this total shall be $316.2 million. This division of responsibility for Capital Costs 37 reflects percentage shares of 77.05% for Durham and 22.95% for Orange. 38 39 3. Subject to Section 5 herein, and due to the change in costs following planning and 40 construction, the Parties agree that the division of responsibility for operations and 41 maintenance costs of the LRT Project in percentage shares of 76.05% for Durham 42 and 23.95% for Orange. 43 44 4. The Parties agree that the funds used to pay for the Costs of the LRT Project shall 45 come from the M2 cent transit sales tax revenues received pursuant to NCGS 105- 46 508.2 and other transit revenues which may be used for this purpose, including but 47 not limited to rental car taxes and vehicle registration fees levied and received 48 pursuant to Chapter 105 Articles 50 and 51 by TTA. TTA shall allocate and pay for 49 the respective shares of planning, construction, operations, and maintenance Costs 50 from the revenues received in accordance with this Agreement and the BRI Plans.