Minutes 11-17-2016 - Laserfiche WebLink

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14 Chair McKee said there is another stop point in June 2018 and asked, if everything is not in place at that point, could there be ramifications. Danny Rogers said the current stop point of beginning the engineering process by February, is firm. He said if it does not begin, the project falls out of the program. He said if the project is not ready with information or commitments to submit for the President's budget in June 2018, the project will not drop out of the New Starts program, but will be delayed a year. Chair McKee said his concern is receiving approval in April 2017 means a $60-70 million jump to move forward, and that they may get further in the process, and then find other surprises. He said all of this money may be spent, without getting through the project. Danny Rogers said entering into the contract in April means the pace of spending will increase each month. He said it does not mean $60-70 million will be spent, and there is a termination for convenience that will be included in the contract. He said a higher rate will be spent per month, and it is important to continue their side of the unknown of this equation to be more comfortable that GoTriangle can do its part. Council Member Palmer said a lot of money and energy has been expended to get to this point, and putting the breaks on a project, that will move our region into a greener and more connected future that facilitates job development, due to changes at the state and federal level is counter productive to the region's own interests. She said it must be determined if the project can move forward or if the vision should be abandoned. She asked if the reimbursement amount, which would be forfeited by not moving forward, could be identified. Danny Rogers said it depends on how much is spent in that gap time, and how long it takes to get back into the program. He said hundreds of thousands of dollars would need to be spent on a monthly basis to get back into the program, and the biggest cost would be the one year delay. Council Member Parker said there have been questions about the sales tax growth rates, and the numbers used in the presentation tonight are the 2014 numbers. He asked if newer sales tax projections are considered, what is the magnitude of the gap. Danny Rogers said a work has been procured from Moody's to put together growth rates for their sales tax. He said Orange County's numbers are lower than 2014, and Durham's was about the same. He said the $200 million is what is currently expected. Council Member Parker said come April more commitment and funds will be needed. He asked if more specific financial information is anticipated between now and April, such that the financial situation will become clearer, and the plug can be pulled if necessary, or is it full steam ahead at this point. Danny Rogers said the point of the checkpoints is to be able to stop and review at each step in the process. Alderman Seils asked if their expectations of the Metropolitan Planning Organization (MPO) could be outlined. Danny Rogers said they are asking the MPO for permission to show in the plan that additional local revenue will be put into the plan. Alderman Seils clarified that the Counties and the MPO are being asked to buy the project time in order to get into the engineering phase of the project, and figure out the specific financials. Danny Rogers said it is permission to say it is going to be done, permission to find out how it is going to be done and doing it committing the actual funds later. Alderman Seils said this process has been known all along, and the steps are of no surprise. He said the expenditures, up to this point being eligible for reimbursement, are something he spoke of in front of the Board of County Commissioners in 2012, and he said it is important to stay in the program to be eligible.