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

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30 1 Mitch Brigulio said the counties, and local partners' share, is at about 55%; factoring in 2 the total cost of the project, the total interest and financing costs, the amount of the financing 3 that FTA will reimburse, etc. 4 Commissioner McKee asked if this information could be forwarded to the 5 Commissioners, with the details broken down. 6 Commissioner McKee referred to the packet, and said everything is financeable if you 7 are willing to mortgage to a certain point. He said the very next line discusses feasibility, and 8 that it is subjective, with which he agrees. He said the packet further reads: "given current 9 projections for project performance, Orange County's cumulative cash balances are not 10 sufficient in certain years to properly insulate the County from potential future financial support 11 requirements." He asked if Davenport stands by that statement. 12 Ted Cole said yes. 13 Commissioner McKee asked if, given these low cash balances, the likelihood of things 14 going perfectly for 40 plus years could be identified. 15 Ted Cole said he supposed it is as equally likely as unlikely, but there is a very thin 16 margin given the size of the project. He said 40-year projections are extremely difficult to do in 17 an accurate fashion. He re-emphasized that with the sales tax, it is one thing to get from year 18 one to year 40, on a 4% track over the long term; but it is another thing to hit every single year 19 with dollars growing. He said this model requires the dollars growing every year, and a delay in 20 the dollars made up in later years, does not necessarily work. 21 Commissioner McKee asked Jeff Mann where one could go to find information on the 22 resale value of used locomotives for light rail. 23 Jeff Mann said he could research this question, but typically these vehicles have a long 24 life, and he is unaware of an active resale market. 25 Commissioner McKee said the assets back the loans, and the only sellable asset he 26 sees are the carriages and locomotives, the land, and the buildings, with the rest being scrap. 27 He said he does not see $2.4 billion worth of assets. 28 Commissioner McKee said he submitted a list of questions to GoTriangle on Monday 29 through Travis Myren. He said these questions were from Dr. Ghysels. He said it is his 30 understanding that Dr. Ghysles tried to speak to Moody's, and Moody's would not speak to him, 31 as GoTriangle was the owner of the report. He asked if GoTriangle will answer the list of 32 questions in a timely fashion, and authorize Moody's to speak with Dr. Ghysels. 33 Mindy Taylor said GoTriangle did receive this request, and spoke with Moody's, who is 34 in the process of preparing a memorandum to address as many of the questions as possible. 35 She said some of the requested information is proprietary, and GoTriangle will need to review 36 its contract with Moody's. She said it is not typical to give this type of information away without 37 a non-disclosure agreement. 38 Commissioner McKee asked John Roberts if he could research whether the ownership 39 of that information belongs to GoTriangle, Moody's or the taxpayers. 40 Chair Dorosin said it is time to wrap up this conversation. 41 Commissioner Jacobs said he does not want to wrap this up, as this is one of the only 42 opportunities that the BOCC has to ask questions with both Davenport and GoTriangle in 43 attendance. He said the BOCC must get their questions answered. 44 Commissioner Rich referred to contingent liability, and she wanted to understand how 45 the County is being protected. She asked if this information could please be forwarded to her. 46 John Roberts said he will go back and look at comments and research this for the 47 BOCC. 48 Commissioner Burroughs said the cost-sharing agreement with Durham County at 82/18 49 does not work for her. She asked for all involved to talk to Durham about reducing the cost