2017-050-E Finance - Davenport & Company, LLC for consulting services re GoTriangle

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DocuSign Envelope ID:A6400E9C-C30B-4768-894A-52E96E6C93A4 DAVENPORT& COMPANY January 12, 2017 Mr. Gary Donaldson Chief Financial Officer Orange County 200 South Cameron Street Hillsborough, NC 27278 Dear Mr. Donaldson: Per our recent conversation, am pleased to present this proposed Contract Addendum to our Financial Advisory Agreement dated February 18, 2016 (the "Agreement"). The purpose of this addendum is to acknowledge that certain Financial Consulting Services related to the. Go Irian& Durham and Orange Transit Plan will be treated under the Special Projects section of our Agreement. These Financial Consulting Services may include, but are not imited to the project description and scope of services described below, The Pro:ect GoTriangle has updated the Durham and Orange Transit Plan to incorporate revisions to the construction costs/timing estimates, State Funding, and Sales Tax projects, among other factors. Based upon the updates to this plan, GoTriangle has identified a shortfall in project funding of appr)ximatdy $250 million. In order to move forward with the potential Federal Transit,Administration Funding ("PTA"), the Durham-Orange Light Fail Project must enter the Final Design phase by February 2017;to accomplish this schedule, GoTriangle requested that Orange County consider adopting a non-binding Memorandum of Understanding to cooperate with GoTriange on the development of an updated Financial Han. Additionally, GoTriangle has indicated that in order to maintain the proposed construction schedule under FIA requirements, Amendments to the, Orange County Bus and Rail Investment Plan will need to be considered in April 2017 and a final decision tu commit any local funds included in the financial plan will be needed by June 2018. GoTriangle has presented a preliminary updated Financial Plan that includes additional local funding commitments from Orange County and Chapel Hill of$40 million ($4.0 million per year for a period of ten years). Orange County has requested that Davenport, in our capacity as financial advisor to the County, provide an independent review and ,:!,ssessment of the proposed Financial Han. Scoee of Services • Conduct Independent Review of documentation, financial models, analysis ;rid proposals provided by GoTriangile Staff and Consultants; • Interact with GoTriangle staff and consultants (with County approval) to analyze relevant models and concepts related to funding the Project; • Identify ipotentia opportunities to enhance the Project financial models as it relates to baseline assumptions, sensitivity analyses and overall funding approach; • Develop additional Financial Models and Analyses, as appropriate; Member NYSE I FINRA I SIPC Page 1