Agenda - 04-27-2017 - 1 - Consideration of the Final Draft Durham – Orange Light Rail Cost Sharing Agreement and Final Draft Orange County Transit Plan

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2 draft removes the provisions that would allow an individual County Board of Commissioners to withdraw from the agreement. As an alternative, the Agreement adds a new paragraph fifteen (15) which describes a mediation and arbitration process to settle disputes that cannot be resolved voluntarily. Financial Analysis Based on the final cost share agreement, Davenport & Company has updated its financial analysis to represent the precise provisions of Scenario EE10-3 (Attachment B). The attached memo from Go Triangle (Attachment C) details the changes in this version of the financial model. This version adds the cost of an administrative position to administer the Transit Plans, the cost of a short range Bus Planning Study for Orange Public Transportation (OPT) and GoTriangle for services in Orange County, and corrects the amount for Bus Operations and Maintenance to reflect actual service increases next year. As a result of these changes, the minimum cash balance during construction is $3.77 million in 2019, and the minimum cash balance after construction is $15.39 million in 2030. Transit Plan The Final Draft Transit Plan (Attachment D) has been updated to include the final cost share percentages for the light rail project as well as a summary of assumptions in the financial plan (page 45). The Transit Plan was also updated to explicitly include an administrative position to administer the Transit Plans. Interlocal Implementation Agreement The allocation of funding for expansion bus service is governed by an Interlocal Implementation Agreement between Orange County, the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization, and Go Triangle. The original Agreement was approved in October of 2012 and specified a funding formula for new bus services. The formula allocates sixty-four percent (64%) of expansion funding to Chapel Hill Transit, twenty-four percent (24%) to Go Triangle for regional bus services provided in Orange County, and twelve percent (12%) to Orange Public Transportation. Several changes have occurred since the original Interlocal Agreement was adopted, and the Board discussed the possibility of renegotiating the provisions of the Implementation Agreement. GoTriangle has provided a letter to the Board of Commissioners expressing its intent to participate in those negotiations (Attachment E). The timeline for the discussions would include an initial meeting prior June 30, 2017 and completion of negotiations before November 2017. FINANCIAL IMPACT: The Final Draft Cost Share Agreement allocates $149.5 million in Orange County transit taxes and fees to the capital cost of the light rail project. The total amount of transit taxes and fees allocated by the Transit Plan through 2062 is $981.7 million. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this agenda item: Public Transportation provides opportunity for access to jobs and services to many individuals. • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY