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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: February 19, 2019 <br /> Action Agenda <br /> Item No. 6-d <br /> SUBJECT: Authorization to Contract with the County's Financial Advisor to Conduct a Third <br /> Party Financial Analysis of the New Financial Plan for the Durham-Orange Light <br /> Rail Transit Project <br /> DEPARTMENT: County Manager's Office <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Travis Myren, 919-245-2300 <br /> 2017 Davenport Financial Analysis <br /> PURPOSE: To: <br /> 1. Consider authorizing the County Manager to sign an agreement with Davenport & <br /> Company, LLC to provide a third party analysis of a new, proposed financial plan for the <br /> Durham-Orange Light Rail Project at a cost not to exceed $30,000; and <br /> 2. Consider authorizing staff to prepare a budget amendment that transfers funds from the <br /> Board Contingency line item (approximately $20,700) and the Manager's Miscellaneous <br /> line item to fund this analysis. <br /> BACKGROUND: On April 27, 2017, the Board of Orange County Commissioners adopted the <br /> Interlocal Cost Sharing Agreement for the Durham-Orange Light Rail Transit Project as well as <br /> the Orange County Transit Plan. As part of the Board's consideration of these items, the <br /> County engaged its financial advisor, Davenport & Company, LLC, to conduct a third party <br /> analysis of the proposed financial plan and report their findings to the Board of Orange County <br /> Commissioners. <br /> The Article 43 Transit Sales Tax, a portion of Vehicle Registration Fees, and a portion of rental <br /> car fees are used to fund transit projects approved in the Transit Plan, including the light rail <br /> project. The 2017 Davenport analysis (attached) focused on long term borrowing costs and <br /> annual cash flow needs. The analysis demonstrated that all of the projects contained in the <br /> Transit Plan could be funded using transit revenues alone. <br /> GoTriangle is expected to propose an amended financial model due to new costs associated <br /> with the Durham-Orange Light Rail Project. When the final proposed financial model is <br /> completed, Board action at this time would allow the County Manager to immediately engage <br /> the County's financial advisor to update the analysis completed in 2017 and offer any new <br />