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Agreement capital costs include only planning and construction of the LRT <br />Project ( "Capital Costs ") which is estimated at 13 years and are a portion of <br />the total Costs. Over the coming years the Parties acknowledge that the LRT <br />Project will move from preliminary to final design, which will result in a more <br />precise project description and more accurate Capital Costs. As a result of <br />this and as with any major capital project planned and constructed over a <br />number of years, the Parties understand that the estimated Costs of the LRT <br />Project may be subject to change and adjustment. <br />2. Subject to Section 5 herein and based upon a total Capital Cost estimate of <br />$1.378 billion for the LRT Project, it being anticipated the LRT project will be <br />funded 50% by the federal government and 25% by the state government, <br />Durham's share (including federal, state and local transit tax proceeds) of this <br />total shall be $1.061.8 billion and Orange's share (including federal, state and <br />local transit tax proceeds) of this total shall be $316.2 million. This division of <br />responsibility for Capital Costs reflects percentage shares of 77.05% for <br />Durham and 22.95% for Orange. <br />3. Subject to Section 5 herein, and due to the change in costs following planning <br />and construction, the Parties agree that the division of responsibility for <br />operations and maintenance costs of the LRT Project in percentage shares <br />76.05% for Durham and 23.95% for Orange. <br />4. The Parties agree that the funds used to pay for the Costs of the LRT Project <br />shall come from the '/2 cent transit sales tax revenues received pursuant to <br />NCGS 105 -508.2 and other transit revenues which may be used for this <br />purpose, including but not limited to rental car taxes and vehicle registration <br />fees levied and received pursuant to Chapter 105 Articles 50 and 51 by TTA. <br />TTA shall allocate and pay for the respective shares of planning, construction, <br />operations, and maintenance Costs from the revenues received in <br />accordance with this Agreement and the BRI Plans. <br />5. The Parties agree that should the revenues discussed in Section 4 generated <br />in Orange and Durham counties be insufficient to meet each jurisdiction's <br />share of Costs, then neither Orange nor Durham shall be obligated to use <br />other revenues to pay its share of Costs. <br />6. In the event Capital Costs exceed the current estimated total of $1.378 billion, <br />the Parties agree to discuss a response to this situation. Such response may <br />include but not be limited to a schedule delay in one or more aspects of the <br />LRT Project, a reduction in the scope of the LRT Project, a combination of <br />these measures, discontinuation of the LRT Project, or other reasonable <br />steps to mutually address the increased Capital Costs of the LRT Project. <br />Page 12 <br />