Minutes 03-07-2017 - Laserfiche WebLink

Browse Search

13 Jeff Mann said two independent cost reviews have been done, and both reviews as well as GoTriangle are confident in the overall cost estimate. Commissioner McKee asked who would pay the difference, if the cost overrun goes to 40%. Jeff Mann said the federal share is 50%, the state maximum share is 10%, the local would have to absorb the remaining. He said the current cost share agreement has Orange County at 23 percent. Commissioner McKee clarified that the County will only pick up its share of any cost overrun over 30%. Jeff Mann said the federal share will be 50% of the declared amount when the project enters into engineering. He said the local share would have to absorb cost overruns, as well as if state funding did not materialize at the full ten percent. Commissioner McKee asked if the project runs $200 million over the 30% in the plan, would Orange and Durham counties pick up the cost in its entirety. Jeff Mann said GoTriangle is working with partners to find ways to defray these costs, but in general, yes the funds would come from the local share. Commissioner McKee said one resident said GoTriangle Special tax board can levy a tax, and asked if this is accurate. Jeff Mann said no. He said the special tax board authorizes a tax only once the voters approve it. Commissioner McKee asked if funding comes up short, then it would have to go back to a referendum. Jeff Mann said if it were a sales tax, he believes that would be the case. Commissioner McKee asked if the guarantor for all of these bonds and loans could be identified. Jeff Mann said GoTriangle would issue the debt, which would be secured by the assets of the system. Commissioner McKee asked if the County has any liability at all. Jeff Mann said to his knowledge that is correct. Commissioner McKee asked John Roberts if he concurred with that conclusion. John Roberts said he is not sure that he does concur. He said he is at a loss for the tax questions. He said as far as he knows, there is no other tax available for transit, as the County has already committed its limited sales tax option. He said anything else would have to come from the legislature. Commissioner Burroughs referred to the 4% sales tax growth assumption, and asked Jeff Mann if he could comment on that assumption. Jeff Mann said Moodys Analytics were hired to conduct an analysis of the sales tax growth rate in both Orange and Durham counties, which was the source for that number, which Moodys deems to be the most realistic forecast moving forward. Commissioner Burroughs said finances are her main concern, and she is interested in discussion with Durham about the proper shares, given the realistic opportunity for economic development, given the location of the stations. Commissioner Burroughs referred to the idea of the public hearing, and said the public would be able to comment at the April 18th meeting and she said she does not feel a separate hearing is needed. She said the public is always welcome to send emails, which can sometimes be more effective. Chair Dorosin said he does not see the substantive difference between what happened this evening, and a public hearing. He agreed with Commissioner Burroughs. Commissioner Price asked if, given the risks involved with the funding of the LRT, the outcome for bus service and other transportation could be explained.