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23 <br /> That's just one of the many reasons to retain Davenport and Company to evaluate the new <br /> project plan when it comes out. Even if they discover that everything is fine, their fee is a small <br /> price to pay for those assurances. <br /> For our new commissioners, in 2017, Davenport was the first to fully quantify the project interest <br /> payments of over$800 million dollars payable until 2062. If GoTriangle's powerpoint <br /> presentation is any indication, those numbers will go up. Also— Davenport helped everyone <br /> understand the cash balances, which were unacceptable to your board. That's why private <br /> investors were brought into the mix. Its now possible that GoTriangle will ask your board to <br /> backstop costs that you couldn't afford in 2017. <br /> As others have said, it's important that Davenport look at the project costs, debt and <br /> contingency and how that has changed since 2017. Even if you protect the $149.5 million <br /> dollar cap (and we hope you do), Orange County as no protection over debt increases. <br /> There are also questions about operating costs and whether the transit taxes will be sufficient to <br /> pay for them. Last summer the Herald Sun reported that GoTriangle was planning to borrow <br /> money for operations — but we've not heard anything since. <br /> In 2017, the project cash flows were tight but Durham had healthy reserves. That may change if <br /> Durham assumes hundreds of millions of dollars in additional costs. If the project gets into <br /> trouble, what recourse will Orange County have? <br /> The saying goes "trust but verify". It would be great to learn that everything looks great— but <br /> you will only know for sure if you retain Davenport to look at the finances. <br /> Thank you <br /> Julie McClintock endorsed hiring Davenport so it can dig into this new financial <br /> model, how the additional costs will be paid for, and if the central services and schools can <br /> be protected. She said many in the community appreciated the resolution passed last fall <br /> that limited the Board's spending on this project to $149.5 million, plus interest. She said <br /> there is a petition asking the Board to stick to this resolution, which has 366 signatures thus <br /> far. She said Davenport can evaluate the transit tax revenues, but she would also like to <br /> note the following items in the risk category: ridership estimates seem ambitious, given that <br /> this is one fixed route that does not include the airport, RTP or Raleigh; this may not <br /> mitigate traffic as hoped; the loss of affordable housing; and gentrification. She said is also <br /> especially concerned for Chapel Hill Transit. <br /> Commissioner McKee said this mentions a $30,000 cap, and asked if this is straight <br /> forward reprocessing as before, would it not be that much. <br /> Travis Myren said it comes in the same general format, and the costs would be <br /> lower. <br /> Commissioner McKee asked is there a retainer fee if Orange County engages <br /> Davenport, but ends up not using Davenport; simply for having Davenport on hold. <br /> Travis Myren said a termination provision would need to be available for any reason, <br /> and the County would pay Davenport for any work completed to date, and Davenport would <br /> turn over any work completed to date. <br /> Commissioner Dorosin clarified that they are still waiting to get final numbers from <br /> GoTriangle, and there is nothing to review at this time. <br /> Travis Myren said that is correct. <br />