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

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12 1 Commissioner McKee asked if the interest accrues to principal. 2 Jeff Mann said yes. 3 Commissioner McKee asked if it is known what the principal will have risen to in 2032. 4 Danny Rogers said this information can be obtained. 5 Commissioner McKee said he thinks it is around $550 million. 6 Commissioner McKee said in the life of these TIFIA loans, the original amount of the 7 loan is $400 million with the deferred interest raising it to $550m. He asked if the total interest 8 paid from 2032 to 2062 on the original loan could be identified. 9 Danny Rogers said that is in the finance plan, and he will get that information. 10 Commissioner McKee said he estimates it is about $750 million in interest at 5% 11 interest. 12 Danny Rogers said this information has been provided to staff previously, and he does 13 not have it on hand this evening, but he can obtain it. He said he does not think the total is that 14 high. 15 Commissioner McKee asked if the total of the interest and the principal paid by 2062 on 16 these loans could be identified. He thinks it may be over $1 billion. 17 Commissioner McKee asked if the total amount of interest and principle paid in 2062 on 18 the TIFIA loans is included in the $2.5 billion number presented before the BOCC, or does $2.5 19 million only take the plan to 2035. 20 Danny Rogers said $2.5 billion is the cost to build the project plus the interest that is 21 incurred during the term of the Full Funding Grant Agreement (FFGA). He said the cost of the 22 money being borrowed to finance the local share of that, outside of the window of the FFGA, is 23 not included in the $2.5 billion. 24 Commissioner McKee said all of his questions related to the TIFIA loans are not 25 included in the $2.5 billion. 26 Danny Rogers said only a portion of the interest that is within the current FFGA, where 27 the money is being borrowed to advance the federal participation, is what is eligible for federal 28 funds. He said incurred after that is not included in that cost. He said "after that" would be 29 2030. 30 Commissioner McKee said the first payment on the TIFIA loans are not made until 2032, 31 so none of them would be included. 32 Danny Rogers said the majority of the interest incurred on the TIFIA loans would not be 33 included in the $2.5 billion. 34 Commissioner McKee said with that the projects cross the $3 billion mark. 35 Jeff Mann said a lot of these questions will be answered in the Davenport report. 36 Commissioner McKee said the residents here tonight deserve answers. 37 Commissioner McKee said he appreciates Commissioner Jacobs question regarding a 38 plan for if the 1/2 cent sales tax falls short. He asked if there is 30% contingency. 39 Jeff Mann said yes. 40 Commissioner McKee asked if the average overrun on projects such as these is known. 41 Jeff Mann said two independent cost reviews have been done, and both reviews as well 42 as GoTriangle are confident in the overall cost estimate. 43 Commissioner McKee asked who would pay the difference, if the cost overrun goes to 44 40%. 45 Jeff Mann said the federal share is 50%, the state maximum share is 10%, the local 46 would have to absorb the remaining. He said the current cost share agreement has Orange 47 County at 23 percent. 48 Commissioner McKee clarified that the County will only pick up its share of any cost 49 overrun over 30%.