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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5 WHEREAS, GoTriangle is seeking funds from FTA's Capital Investment Grant (CIG) Program (49 U.S.C. §5309)for the D-O LRT Project; and WHEREAS, the D-O LRT Project Cost Estimate which is eligible for federal participation, including costs related to project development, engineering, construction, testing, commissioning, start-up, and financing costs through the anticipated final year of disbursement of federal funds (projected to be 2032), is$2,476.3 million year of expenditure (YOE) (New Starts Project Cost); and WHEREAS, GoTriangle receives and uses public monies, pursuant to N.C.G.S. Chapter 105, Articles 43, 50, 51, and 52, to fund public transportation in GoTriangle's jurisdiction, including the planning, financing, construction, maintenance, and operation costs of the D-O LRT Project; and WHEREAS, there are four dedicated local revenue sources used to fund the D-O LRT Project and other new transit projects and services in Durham and Orange: (1) Article 43 Half-Cent (0.5 percent) Sales and Use Tax; (2) Article 50 Five-Percent (5 percent) Vehicle Rental Tax; (3) Article 51 Three-Dollar ($3) increase to GoTriangle Regional Vehicle Registration Fee; and (4) Article 52 Seven-Dollar ($7) County Vehicle Registration Fee (collectively, Dedicated Local Transit Revenues); and WHEREAS, in light of changes to the original funding assumptions in the County BRIPs, the Parties have revised their funding strategy for the D-O LRT Project as follows: federal (50 percent [$1,238.15 million YOE]), state (10 percent [$247.63 million YOE]), and local/other (40 percent [$990.52 million YOE]); and WHEREAS, in order for the D-O LRT Project to advance to the Engineering Phase of the CIG Program (Engineering Phase), at least 30 percent of the non-CIG share of the D-O LRT Project ($371.4 million YOE) must be committed at entry to the Engineering Phase; and WHEREAS, the Parties acknowledge that the total non-CIG share of the New Starts Project Cost is $1,238.15 million YOE, of which $887.9 million YOE (71.7 percent) is committed from the Dedicated Local Transit Revenues; and WHEREAS, the Parties acknowledge that one hundred percent (100%) of non-CIG funds must be committed prior to GoTriangle's application for a Full Funding Grant Agreement (FFGA), which is anticipated to be submitted to FTA in calendar year 2019; and WHEREAS, on February 16, 2017, GoTriangle received guidance from FTA explaining that additional documentation would be necessary to update the estimated D-O LRT Project cost in the County BRIPs, and to confirm that at least 30 percent of the non-CIG share (at least $371.4 million YOE) is committed; and WHEREAS, the Parties acknowledge material changes to the County BRIPs have occurred, as defined in the 2012 Interlocal Implementation Agreement for Orange County Bus and Rail Investment Plan and the 2013 Interlocal Implementation Agreement for Durham County Bus and Rail Investment Plan, prompting the Parties to revise the County BRIPs; and WHEREAS, on , the Durham County Board of County Commissioners adopted the updated Durham County Transit Plan (2017 Durham Plan) and authorized the execution of this Agreement; and