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