Minutes 02-19-2019 Regular Meeting

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25 commitment is made from Duke. He said all indications point to great private funding interest. Commissioner Marcoplos said the backstop would exist to have a fund to backup while the other agreements are being signed. Commissioner Marcoplos said the Board passed a resolution that it would not spend any more than $149.5 million, and so he questions the need for this petition and proposal. He said Durham is well aware of this reality. He said in 2017 Davenport was asked to look at the entire project and the financing, which was a huge project. He said right now, the Board is waiting for a short list of numbers, and this request for an analysis from Davenport is premature. He said he would like to get information first, and then see what is needed. He said at the meeting last month, which upset everyone, there were many financial staff in that room, who have a good handle on what is going on. He said his point is that everyone wants to know what is going on and to protect Orange County, and the odds are good that there will be enough information to understand everything and to share it with the public, answering all questions. He said he is not in favor of committing to this analysis now, but he is comfortable with keeping Davenport on hold and using them after the numbers are received, and if questions still remain. Commissioner Dorosin said he tends to agree with Commissioner Marcoplos, but the information the Board is going to get is going to be very determinative. He said if Duke does not commit, or if the numbers are going to be exorbitant, the Board will not need Davenport to tell it to stop, as it will be obvious. Commissioner Dorosin agreed that this is a different situation than in 2017, and he feels like this time around it will be more obvious as to how to proceed. He said if it is not, then the Board can hire Davenport. He would like to get the information back first. Commissioner Greene said she thinks she agrees with Commissioner Dorosin, and she was not a part of the Board when it passed a resolution limiting spending at $149.5 million, but she supported it and is committed to that resolution. She said if Duke does not commit, the conversation is over. Commissioner Greene said she agrees with Commissioner Dorosin to wait for the numbers, and if they present a viable scenario then it may be valuable to engage Davenport. She said it may be wise to have Davenport on retainer now. Commissioner Bedford said she agrees with most of what has been said, but she has more questions if Duke does commit and there are more numbers in hand. She said this resolution seems to be pre-authorizing the Manager to engage Davenport if there are questions about the numbers, which is what she would support. She would like to compare Davenport's analysis form 2017 with one of current numbers, once these numbers are received. She said if Durham is hiring an outside firm, it seems to support the hiring of Davenport once there are numbers. Commissioner Bedford encouraged the Board to pass this resolution, and it is not about terminating the project, but rather understanding the numbers as a new cost share agreement is negotiated. Commissioner Marcoplos said a lot of these questions were answered in the original analysis. He said Orange County is not going to pay the numbers they are dealing with now, and it is wise to wait and see what will affect Orange County when the information on any of these additional costs is received. Commissioner Marcoplos said this financial burden is not on Orange County, and he recommends not pre-authorizing any analysis by Davenport, but wait and see what the numbers say. Commissioner Bedford said Orange County is responsible for the interest, and if the costs go up (even if these costs are assumed by Durham), Orange County is still responsible for the interest according to the cost sharing agreement.