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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27 Orange County Transit Plan April 25, 2017 As the staffs of GoTriangle, Orange County, and the Towns of • Project capital costs: Chapel Hill, Carrboro, and Hillsborough have implemented the o Durham: $738.4 million (YOE) 2012 Plan, more definition has been given to the services and o Orange: $149.5 million (YOE) projects that are expected to be delivered over the next 12 • Operating expenses (through June 30, 2036) years. Section 4 describes these projects and services, o Durham: 80 percent unfunded priorities from the 2012 Plan, and additional o Orange: 20 percent expansion that would remain unfunded in this Plan. • Operating expenses (after June 30, 2036) and State of As a major project which serves both counties, the cost of Good Repair costs construction, operations, and maintenance of the Durham- o Durham: 81 percent Orange Light Rail Transit Project is shared between the two o Orange: 19 percent county Plans using agreed upon percentage splits. In the 2012 Plan, the split was approximately 77 percent Durham, 23 Table ES-1 compares the Tax District Revenues used to fund percent Orange. The parties negotiated a new cost-split for projects and services between the 2012 Plan and this 2017 several reasons: Plan. • The scope of the D-O LRT Project was expanded. The In our evaluation of the ability of the Tax District Revenue to alignment now extends 0.6 miles further into Durham, accommodate reductions in state and federal funding availability, we assessed costs of projects and service, the with an additional station at North Carolina Central delivery schedule for projects and services, and the projected University level of borrowing. The projected borrowing capacity is linked • Changes to the alignment at the New Hope Creek directly to the assumptions about Tax District Revenue growth. Crossing extended the length of the alignment in In accordance with industry standards, the 2017 Plan uses a Durham baseline revenue forecast developed in late 2016 by Moody's • A station proposed for Orange County, Meadowmont Analytics, a well-regarded economic analytics firm. In Station, was replaced by Woodmont Station in Durham accordance with Federal Transit Administration (FTA)guidance, County the financial plan has also been evaluated using a downside forecast developed by the same firm,to understand the effects This Plan incorporates the cost split memorialized in a separate and potential mitigations that may be required to plan for less- cost-sharing agreement which has been executed than-expected sales tax growth. A detailed financial plan can simultaneously with the Plan. The cost-sharing agreement be found in Section S. Further explanation of the risks to the allocates expenses as follows: Final Page 3 of 65