Agenda - 04-18-2017 - 8-a - Minutes

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19 1 Commissioner McKee referred to the state funding contribution on $238 million plus, 2 and asked if this represents the 10% of the project of which has been spoken previously. 3 Ted Cole said that is the 10% of the $2.38 billion of the project. 4 Commissioner McKee said if it scored a little over 8, why is the abstract number of "10" 5 being used. 6 Ted Cole said he will get that answer for him. 7 Commissioner McKee said he is concerned, as a project cost of $2.388 billion is being 8 shown, but the true cost is $3.3 billion. He asked if there is a reason why the true cost is not 9 being shown, since that is what will have to be paid. 10 Ted Cole said both numbers are correct, and show the upfront costs versus the cost of 11 what must be borrowed to build. 12 Commissioner McKee asked if $2.388 billion is shown in the Federal Transportation 13 Administration (FTA) application, and if this is the maximum amount of which the federal 14 government will pay 50%. 15 Ted Cole said yes. 16 Commissioner McKee said that would leave everything over $2.388 billion to be borne 17 by Orange and Durham Counties, which jacks the percentage that Durham County and Orange 18 County will have to pay from 40% to at least 52%. He said going with the 52% estimate, 19 Orange County would pay $394 million. 20 Ted Cole said yes, when the interest expense is pulled into the numbers. 21 Commissioner McKee said that does not include the state of good repair borrowing. 22 Ted Cole said yes. 23 Mitch Brigulio, from Davenport, said the numbers are moving around a little bit, but what 24 is included in the Transit Plan and the FTA document is around $2.46 million range. He said 25 the difference between the $2.388 million and $2.46 million is the financing costs that are 26 eligible to be reimbursed by FTA. He said that is the financing cost during the construction 27 period. 28 Mindy Taylor, GoTriangle Senior Financial Analyst, said FTA wants to see not only the 29 capital costs of the project, but the portion of financing costs that are eligible for federal 30 reimbursement. 31 Commissioner McKee asked if the financing cost, covered by FTA, only goes out to 32 2032 or 2035. 33 Mindy Taylor said it is until 2032, which is the amount of time it takes to disperse the 34 federal funding share. 35 Commissioner McKee asked if the Counties incur every dollar thereafter. 36 Mindy Taylor said yes. 37 Commissioner Jacobs said every time the costs are mentioned, the cost to which the 38 speaker is referring should also be mentioned. He said a lot of people see that the project 39 costs have jumped, and he said this is because GoTriangle went from present dollars to year of 40 expenditure dollars, and this should also be restated with frequency; all in the effort for 41 transparency. 42 Commissioner Price referred to the Transportation Infrastructure Finance and Innovation 43 Act (TIFIA) debt funding, and asked if there is limit to the amount for which the project would be 44 eligible. She said her concern is that the state funding is not guaranteed, and wonders what will 45 happen if more funds need to be borrowed. She referred to the New Starts grant, and heard 46 that these will only be available for projects that are shovel ready within 90 days. 47 Mitch Brigulio said TIFIA funding has to be applied for through the federal government, 48 and there is no set cap to what can be applied for, but the loan will be awarded based upon the 49 application and what the government feels is the right number to award. He said part of this is 50 driven by what the revenues and expenditures are and what can be paid back.