Agenda - 09-04-2018 6-b - Authorization for the Chair to Sign a Letter Regarding Measures to Address the State Funding Shortfall in the Durham-Orange Light Rail Project

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P During the adoption of the State Budget, the North Carolina General Assembly placed several limitations on the Light Rail Project. One of these limitations was to limit the maximum amount of State funding to $190 million. The light rail financial model that was included in the Orange County Transit Plan and the Cost Sharing Agreement assumed a total State contribution of ten percent (10 %) or $247.6 million. The $190 million limitation created a shortfall of $57.6 million. Consistent with the terms of the Cost Sharing Agreement, the parties convened an initial meeting on June 21, 2018 to begin discussing potential solutions to the funding shortfall. Orange County was represented by BOCC Chair Mark Dorosin and Commissioner Mark Marcoplos who met throughout the summer with two representatives from Durham County. Using updated financial modeling, GoTriangle demonstrated that Durham County's dedicated transit revenues were sufficient to compensate for the $57.6 million revenue shortfall created by the State. The negotiating team agreed to present this solution to their respective governing boards prior to September 7, 2018 when GoTriangle is required to submit a project progress document to the Federal Transit Administration. The negotiated solution for Durham County to commit additional dedicated transit revenue is recognized in two letters, one from the Chair of the Durham County Board of Commissioners and one from the Chair of the Orange County Board of Commissioners. Both of these letters are attached. The Durham County Board of Commissioners considered and approved its letter on August 27, 2018. Both Orange and Durham counties will be asked to formally amend the Cost Sharing Agreement and each County's Transit Plan to codify the change in funding commitments on a schedule that supports GoTriangle's application for a September 2019 Full Funding Grant Agreement. FINANCIAL IMPACT: The negotiated agreement between Orange County, Durham County, and GoTriangle does not create new financial obligations for Orange County. Orange County's contribution to the Durham - Orange Light Rail Project would remain at $149.5 million in year of expenditure dollars. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this agenda item: Public Transportation provides access to jobs and services to many individuals. • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF - SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends the Board consider authorizing the Chair to sign the attached letter to GoTriangle affirming Orange County's financial commitment and communicating a solution to the funding shortfall created by the State budget.