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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: January 24, 2017 <br /> Action Agenda <br /> Item No. 8-a <br /> <br />SUBJECT: Orange County Bus and Rail Investment Plan Updates: Durham-Orange Light <br />Rail Financial Update and Chapel Hill Bus Rapid Transit Project Update <br /> <br />DEPARTMENT: Planning and Inspections <br /> <br /> <br />ATTACHMENT(S): INFORMATION CONTACT: <br /> Travis Myren, Deputy County Manager, <br />919-245-2308 <br />Jeff Mann, GoTriangle General Manager, <br />919-485-7424 <br />Brian Litchfield, Chapel Hill Transit <br />Director, 919-969-4908 <br /> <br /> <br />PURPOSE: To update the Board of County Commissioners on two capital projects contained in <br />the Bus and Rail Investment Plan (BRIP): <br /> <br />• A financial update on the Durham-Orange Light Rail Transit project that resulted in no <br />additional local funds being needed in a base case scenario; and <br />• An update on the Chapel Hill North-South Corridor Bus Rapid Transit project and related <br />costs. <br /> <br />BACKGROUND: The BRIP in Orange County governs the allocation of transit taxes and fees <br />to various transit services. Over the next three months, the Board of Commissioners along with <br />the other parties to the Plan will be asked to consider updates to the Plan. Two significant <br />projects contained in the Plan include the Durham-Orange Light Rail Transit (D-O LRT) Project <br />and the Chapel Hill Bus Rapid Transit (BRT) project. <br /> <br />Update on Financial Status of the D-O LRT Project – On December 5, 2016, the Board of <br />County Commissioners adopted a non-binding memorandum of understanding to help address <br />a $250 million projected funding shortfall in the D-O LRT Project. This memorandum was <br />intended to support GoTriangle’s application to the Federal Transit Administration (FTA) for the <br />federal share of the project. Since that time, GoTriangle’s financial advisor has restructured <br />project financing in a way that eliminates the need for additional local funds in a “base case” <br />scenario. The base case is a scenario where current assumptions on project costs and <br />revenues are sustained throughout the duration of the project. <br /> <br />During this report, GoTriangle staff will explain how the funding gap was eliminated in the base <br />case scenario and the sensitivity analysis that was included in its application to the FTA that <br />shows the conditions under which additional local funds may be required if current assumptions <br />do not hold. <br /> <br />1