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22 <br /> 1 The Board considered voting to authorize the County Manager to sign an <br /> 2 agreement with Davenport & Company, LLC to provide a third party analysis of a new, <br /> 3 proposed financial plan for the Durham-Orange Light Rail Project at a cost not to exceed <br /> 4 $30,000. <br /> 5 Travis Myren presented this item: <br /> 6 <br /> 7 BACKGROUND: <br /> 8 On April 27, 2017, the Board of Orange County Commissioners adopted the Interlocal <br /> 9 Cost Sharing Agreement for the Durham-Orange Light Rail Transit Project as well as the <br /> 10 Orange County Transit Plan. As part of the Board's consideration of these items, the <br /> 11 County engaged its financial advisor, Davenport & Company, LLC, to conduct a third party <br /> 12 analysis of the proposed financial plan and report their findings to the Board of Orange <br /> 13 County Commissioners. <br /> 14 <br /> 15 The Article 43 Transit Sales Tax, a portion of Vehicle Registration Fees, and a portion of <br /> 16 rental car fees are used to fund transit projects approved in the Transit Plan, including the <br /> 17 light rail project. The 2017 Davenport analysis (attached) focused on long term borrowing <br /> 18 costs and annual cash flow needs. The analysis demonstrated that all of the projects <br /> 19 contained in the Transit Plan could be funded using transit revenues alone. <br /> 20 <br /> 21 GoTriangle is expected to propose an amended financial model due to new costs <br /> 22 associated with the Durham-Orange Light Rail Project. When the final proposed financial <br /> 23 model is completed, Board action at this time would allow the County Manager to <br /> 24 immediately engage the County's financial advisor to update the analysis completed in <br /> 25 2017 and offer any new observations associated with the new financial plan. The cost of <br /> 26 the analysis would be capped at $30,000. <br /> 27 <br /> 28 In order for the light rail project to proceed, a new Interlocal Cost Sharing Agreement and <br /> 29 an Amended Orange County Transit Plan will need to be approved by the Board of Orange <br /> 30 County Commissioners. GoTriangle is requesting these approvals during the month of <br /> 31 March to meet a State imposed April 30 deadline. <br /> 32 <br /> 33 PUBLIC COMMENT: <br /> 34 Joan Guilky said there have been major changes in the plan in the last year, <br /> 35 significantly increasing costs. She said the review last year from Davenport included <br /> 36 financing costs that had not been included in the GoTriangle reports. She said it is <br /> 37 essential to authorize Davenport to complete a new analysis, so that all parties can work <br /> 38 from the same facts and figures. <br /> 39 <br /> 40 Patricia Clayton read the following comments: <br /> 41 I am Pat Clayton I am speaking on behalf of the Northern Orange National Association for the <br /> 42 Advancement of Colored People (NAACP). <br /> 43 <br /> 44 We are gravely concerned about the escalating costs of light rail project, and large, last minute <br /> 45 issues and risks surrounding the project. That is why we are asking you to retain Independent <br /> 46 Financial advisors, Davenport and Company to evaluate the new project plan when it comes <br /> 47 out. <br /> 48 <br /> 49 At a minimum, we would like to hear Davenport's analysis of the project's costs, debt and <br /> 50 contingency, and risks to our schools and essential services. We are especially interested in <br />