HomeMy WebLinkAbout20061464 TM TRANSMITTAL MEMORANDUM
Northwest Parkway
Public Highway Authority
3701 Northwest Parkway, Broomfield, Colorado 80020
jilt@nwpky.orq
Phone: 303-533-1200 Fax: 303-404-3049
TO: NWP Investors
FROM: Jill Lamoureux
CC:
DATE: Monday, May 15, 2006
SUBJECT: Northwest Parkway Bond Disclosure Document
Enclosed is the bond disclosure document for the 1st Quarter of 2006. The
PDF file can also be found on the Investor's section of our website
(www.nwpky.org). Please feel free to contact me if you have any questions
or concerns.
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The Northwest Parkway
Disclosure Document 2006
NW
For the period ending 03/31/06 4
PARKWAY
„,r t 1 'Y
TABLE OF CONTENTS I
.OVERVIEW 1
'CONSTRUCTION OF THE NORTHWEST PARKWAY 1
'SHERIDAN INTERCHANGE 2
z PROJECT FINANCIAL HIGHLIGHTS 3
INVESTMENTS 4
r
BUDGET 4
r I BOND FINANCING 4
1THE PEOPLE BEHIND THE PROJECT 5
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NW Northwest Parkway Public Highway Authority
3701 Northwest Parkway
' Broomfield, Colorado 80020
(S-4:11
Telephone: 303-533-1200
Fax: 303-404-3049
www nwpky.o rg
PARKWAY info@nwpky.org
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OVERVIEW operation/maintenance costs through the construction
period, and amounts due under certain reimbursement
The Northwest Parkway Public Highway Authority agreements. In addition, the plan of finance provides for
The Northwest Parkway Public Highway Authority debt service reserves, capitalized interest, contingency
(Authority) is a political subdivision of the State of Colo- funds, bond insurance premiums and issuance costs.
rado established in June 1999 with all the powers, duties
and privileges provided by the Public Highway Authority
Law. The Board of Directors of the Authority is currently CONSTRUCTION OF THE
composed of one elected official from each of the City and
County of Broomfield, the City of Lafayette, and Weld NORTHWEST PARKWAY
County, Colorado. In 2002 the City of Arvada and Jeffer-
son County applied to the Board of Directors and were
approved for affiliate memberships to the Authority. Ex-
Design/Build Contractor
Officio members include the Colorado Department of In order to construct the Northwest Parkway, a Design-
Transportation, the Regional Transportation District and Build Contract between the Authority and NPC, a Colo-
Interlocken Consolidated Metropolitan District. The Au-
thority is responsible for the financing, construction and rado joint venture of Kiewit Western Co. and Washing-
operation of the toll highway known as the Northwest ton Group International, Inc. was executed on June 28,
Parkway (Parkway). 2001. The full notice to proceed was issued on June 28,
2001 simultaneously with the financial closing. The con-
Project Description tract provided for the road to open to traffic by Decem-
The Northwest Parkway consists of the two-mile Inter- ber 31, 2003 with revenue collection to begin on the Pro-
locken Loop from State Highway 128 to Tape Drive (just ject Guaranteed Substantial Completion date of Febru-
south of the intersection with 96th Street) connecting with ary 29, 2004. The road opening was achieved on No-
the nine-mile limited access toll highway constructed on vember 24, 2003. The final acceptance of all items in-
the northwestern perimeter of the Denver metropolitan cluded in the project was granted by the Project Guaran-
area that links the Interlocken Loop to 1-25. teed Final Acceptance of June 29, 2004.
The final segment of the E-470 toll road which connects ROW
with the Northwest Parkway at 1-25 was completed in To acquire the right-of-way for the Northwest Parkway a
2002, providing access to and from regional employment budget was established that included all estimated costs
and retail centers and facilitating travel from the northwest- for right-of-way acquisition including property acquisi-
tion,metropolitan area to points east and south, including lion, legal, consultants and associated relocation costs.
Denver International Airport. The most recent construction Under the Design-Build Contract, the Authority was re-
work included completion of an Interchange and mainte- quired to deliver on the contract schedule approximately
nance facility at Sheridan Boulevard. 564 acres of right-of-way. The Authority has obtained
possession of all of the required right-of-way; of this, 452
Plan of Finance acres are fee simple takes and the remainder is made
The Authority closed on project financing in June 2001 up by easements.
and simultaneously gave a notice to proceed to the De-
sign-Build Contractor—Northwest Parkway Constructors All right-of-way purchases have been finalized or have
(NPC). The plan of finance (see further description under had value determinations. The overall right-of-way costs
Project Financial Highlights) provides for the funding of have been under the allocated budget amount. Remain-
construction costs under the Design-Build Contract and ng costs include legal and consulting fees; however, the
other capital costs, as well as Authority administrative and Authority expects costs to remain under budget.
1
SHERIDAN INTERCHANGE Interchange Status
Interchange Development In 2004, the Authority executed a contract with Carter Bur-
The original Authority plan included construction of an gess (CB) for design review and construction maintenance
interchange at Sheridan Boulevard no later than 2010. on the Sheridan Interchange project. The Sheridan Inter-
Current development activities in that vicinity indicated change project was constructed as a design, bid, build
that it would be beneficial to Authority revenues to project. The Authority selected SEMA as the general con-
open the interchange as soon as possible. Due to the tractor in February 2005.
fact that the majority of the Construction Contingency The contractor provided for an early opening on November
funds were not used from the original Design-Build 7, 2005. Toll collection for cash customers began on De-
Contract and associated mobilization costs, it was pos- cember 1, 2005, while EXpress Toll customers used the
Bible to complete the construction of the interchange interchange free of charge until January 1, 2006. The pro-
and still have a Contingency Fund balance. ject consists of on and off ramps from the Parkway to
The City and County of Broomfield required the Au- Sheridan, two unmanned toll booths with coin machines
thority to construct a permanent maintenance facility and automated Express Toll collection capability, inter-
rather than moving the temporary facility. The Author- change lighting, and interchange landscaping. In addition,
ity determined that the best site for the maintenance a change order was executed with NPC to provide con-
facility was east of the Sheridan Interchange location crete slab approach ramps. The construction budget for
on land owned by the Pulte Corporation. the interchange including the toll collection system installa-
tion is approximately $5,200,000 which is being paid from
As part of its Anthem development plan, the Pulte Cor- remaining contingency funds.
poration wanted to obtain land to hold for permanent
open space. The Authority owned land acquired for Operations Report
the purpose of holding for open space. The Authority EXpressToll is the Denver area branding for the trans-
has traded parcels of land with Pulte. There was no ponder system that allows non-stop use of the toll roads.
monetary consideration involved in this transaction. These transponders are functional on both the Northwest
The trade allowed the Authority to gain approval from parkway and the E-470 toll road.
Broomfield for construction of the permanent mainte-
nance site, and begin construction on both the site and In this quarter, 131 transponders were issued for new EX-
the Sheridan Interchange. Completion of the mainte-
press Toll accounts opened at the Parkway's mainline Toll
Hance site occurred November 2005. The Sheridan Plaza. A total of 8,181 new EXpress Toll accounts were
Interchange opened to traffic November 7, 2005 and opened in this period through the EXpress Toll website,
full toll collection began January 1, 2006. service centers and area retail outlets. Due to interopera-
Maintenance Facility Status bility agreements between the Authority and the E-470
In August 2004, the Authority entered a contract with Public Highway Authority (E-470), the Authority benefits
Eidos Architects, LLC to design a maintenance facil- from the entire EXpress Toll customers base of over
ity. The building was designed to meet strict aesthetic 206,191 accounts.
criteria from the City and County of Broomfield. The The Authority, through an Intergovernmental Agreement
project consists of covered parking for six snow plows, (IGA) with E-470, has contracted with Mile High Toll Ser-
a 1,500 sq. ft. office, a 1,000 sq. ft. storage area, a fuel vices (MHTS) to provide toll operations for the Parkway.
island for diesel and gasoline, storage tanks for anti- MHTS is a division of Parsons Brinckerhoff.
ice chemicals, covered storage for salt and sand, and
a separate building for vehicle maintenance. The con- The IGA also provides for the Authority to utilize the back
struction budget for the maintenance facility was office operations of E-470 for EXpressToll processing and
$1,46$1,460,000 which was paid from available contingency customer service functions.
funds. The final contract amount paid to design/build
contractor Pirnack Walters was $1,462,424. The pro- Operations of the Parkway are continuing smoothly as traf-
ject was completed November 20`05.SAP
fic steadily increases. Detailed auditing has shown that
//////�!!//L�('. MHTS contEXpressToll
ran to perform withineled the The
]j EXpressToll transactions that are handled by the E-470
customer service center are exchanged on a nightly basis
1 ;.14 EgiTri
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and payments are regularly audited by Authority staff. The
r = violation system continues to operate effectively.
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The Authority has entered into a three-year contract for PROJECT FINANCIAL HIGHLIGHTS
roadside, roadway and facilities maintenance with Ameri-
can Civil Constructors (ACC). ACC handles all snow re-
moval on the Parkway and operates the Parkway's Cour-
tesy Patrol. Maintenance work on the Parkway has pro- Original Capital Budget
ceeded as scheduled. The total capital budget for the Northwest Parkway at
financial closing was set at$242,637,528, excluding
Law enforcement and incident management on thePark- contingency funds. After adjusting for all change orders
way is handled by the City of Broomfield Police Depart- through December 31, 2005 the total capital budget is
ment through an IGA with the Authority. Both the police $246,330,230 excluding the remaining contingency fund
and the North Metro Fire District (NMFD) respond to any budget. The amount of expenditures through December
occurrences as needed and continue to meet the Author- 31, 2005 total $235,439,300. The payments to NPC for
ity's requests and requirements. The NMFD broke approved work included in that total are $191,615,337
ground on a new fire station along the Parkway which representing 100% of the contract.
was completed December 2005 and is currently opera-
tional. The original Contract Amount of the Design-Build Con-
tract was $187,637,528. Change orders approved
Traffic Summary through December 31, 2005 increased that amount to
Toll collections for both cash and EXpress Toll customers $191,615,337. There were eighty-one contract changes
began on January 1, 2004, after a system testing and authorized, with a total cost impact of$3,977,809. How-
marketing period following the opening. During this pe- ever, six change orders, in the amount of$1,269,788,
nod no tolls were initially assessed and then a period fol- were funded by third parties. In addition, one change
lowed during which tolls were charged only to cash cus-
tomers as an incentive for users to purchase EXpress order was funded as a transfer from the Northwest Park-
Toll privileges. way Right-of-Way budget in the amount$285,107.
There also was an adjustment for actual waterline costs
During the first full year of roadway operations, traffic lev- incurred.
els and toll revenues were significantly below initial pro-
jections. The Authority attributes these results to the eco-
nomic downturn experienced in the state over the past Sheridan Interchange Budget
several years and the resulting delay of development The budget allocated to the Sheridan Interchange is
within the corridor. The development activities in the cor- $7,750,000 which was transferred from the Contingency
ridor have increased in 2005 and 2006, and the Authority Budget. The allocated budget includes funds for design,
anticipates that traffic levels and toll revenues will im- construction and toll system implementation for the inter-
prove as development and natural ramp up occurs. The change and maintenance facility. Also included in the
Authority does not expect, however, that the initial reve- budget is a change order to the Design-Build Contract in
9 9 9
nue projections will be achieved in the short term. the amount of$86,782 for the concrete slab approach
The Parkway implemented a scheduled $.25 mainline ramps at the Sheridan Interchange. Expenditures
toll increase January 1, 2006. Total l transactions nli for through 2005 were $7,385,705. 2006 expenditures total
January $243,600. No further expenditures are expected making
2006 were 310,452. Average daily transactions
were 10 015 a 12.4% decrease from the final budget amount $7,629,305. Remaining funds
(ADT) for January
will be confirmed by the 2006 audit and will be trans-
December traffic. However, January 2006 transactions
° ferred back to the contingency budget.
were up 22.6/o over January 2005. Total transactions in
9 Y 9
February were 291,066, with an ADT of 10,395 which is a
3.8% increase over January. February 2006 transaction
were up 22.2% over February 2005. Total transactions Contingency Fund Status
for March were 334,305 with an ADT of 10,784 which is a The original allocated budget for Contingency was
a a
$18 763 753 including expected interest earnings over
3.7/o increase over February and a 13.2/° increase over P 9
March 2005. the life of construction. Approved change orders to the
original Design-Build contract total $3,977,809. How-
ever, after adjusting for third party funded change orders
Monthly Transactions and a transfer from the Right-of-Way budget, the net
charge against the original contingency fund is currently
400000 0. $2,422,914, which adjusts the allocated budget amount
■2005 to $16,340,839. The Authority has also transferred
200000 I •2006 $3,807,601 for start-up and mobilization costs and trans-
ferred an additional $7,750,000 for the Sheridan Inter-
0 2005 change and maintenance facility project. The remaining
Jan. Feb ivbr. unallocated Contingency Budget is $4,783,238.
3
INVESTMENTS The Senior Bonds received bond insurance from both Ambac and
FSA and, based on that insurance, were rated AAA. When issued in
2001, the Senior Bonds received investment grade underlying ratings
Construction Fund from all three rating agencies: Standard & Poor's and Fitch rated the
(a) At the time of dosing,$245.114,354 was invested in two Senior Bonds BBB—and Moody's Investors Service rated them Baa3.
separate investment Agreements with Trinity Funding When issued in 2001, the Subordinate Bonds received Moody's Ba1
Company,which submitted the successful bid. One ac- rating and a BB+from Standard&Poor's.
count has closed and the remaining balance was traps-
•
• ferred to a series of investments through the trustee, Fitch, Moody's and Standard and Poor's subsequently downgraded
while the second account will remain with Trinity Funding their underlying ratings in 2005. Standard & Poor's announced that
until December 2007. the underlying rating on the Senior Bonds was downgraded from
(b) Bond proceeds in the Construction Fund which were not BBB— to B— and the rating on the Subordinate Bonds was down-
invested in that Investment Agreement are invested by graded from BB+ to CCC. Moody's downgraded the underlying rating
the Trustee in either a Wells Fargo money market fund or on the Senior Bonds from Baa3 to B1 and the rating on the Subordi-
the AAA Colorado Local Government Liquid Asset Trust. nate Bonds from Ba1 to B3. Fitch downgraded their underlying rating
on the Senior Bonds from BBB— to BB-. The Senior Bonds remain
•
• Debt Service Reserve Fund insured and rated MA. Please contact the individual rating agencies
$36,161,406.28 of the Senior Bond proceeds were invested for•
for additional information.
the Senior Debt Service Reserve Fund in a Debt Service Reserve
Forward Delivery Agreement with Bayensche Hypo— and Ver-
• einsbank AG, New York Branch,who was the successful bidder. The Original Source and Uses for the Northwest Parkway Bond issue
are estimated as follows:
Capitalized Interest Fund
The capitalized interest amount from the bond proceeds of
$43,047,440.50 was invested in an Investment Agreement with Original Sources of Funds:
AIG Matched Funding Corp. This Investment Agreement is ex- Series 2001A Bonds $175,720,000
pected to provide returns which,when combined with interest (Current Interest)
flowing from the Debt Service Reserve,will provide the necessary Series 2001 B Bonds 79,865,792
• interest payments through the capitalized interest period. (Capital Appreciation)
Series 2001C Bonds 108,371,280
•
(Convertible Capital Appreciation)
2006 BUDGET Series 2001 D Bonds 52,465,000
(First Tier Subordinate)
The Authority adopted the 2006 budget on December 20, 2005. Colorado Department of Transportation 723,000
Upon completion of the 2005 audit, a budget hearing will beheld Net Original Issue Discount (4,025,562)
and an amended budget which includes all carry forward amounts
for capital items will be adopted by the Northwest Parkway Author- TOTAL ORIGINAL SOURCES
$413,119,510
ity Board of Directors.•
•
REVENUES Original Uses of Funds:
Design-Build Contract Price $179,819,232
) Investment Income $2,500,000 (net of interest earnings)
Toll Revenue 17,314,000 Other Costs of the Project(1) 104,738.219
Special Projects 2,000 Capitalized Interest 2001A, 2001 D 43,047,440
Miscellaneous Income 4001 Debt Service Reserve Accounts 41,239,651
• TOTAL REVENUES $19,821,000 Cost of Issuance/Underwriters Discount 26,617,107
Project Contingency 17.657,861
EXPENDITURES (available for Project Costs)
TOTAL ORIGINAL USES $413,119,510
': Capital $ 0
Debt-Related . 50,000 (1) Includes right-of-way acquisitions, project oversight engineering services,
Operating Expenses 4,227,945 administrative costs. and amounts due under certain reimbursement agree-
Administrative Adminla - u.
•
trative Expenses 775,000 men
Personnel Expenses 1,045,745
Professional Services 430,000
Furniture&Fixtures 50,000 Bond Restructuring
Contingency 25,000 Authority staff regularly monitors cash flow and revenue covenants
TOTAL EXPENDITURES $ 6,603,690 relating to the Authority's bond obligations and are continuing to ex-
plore several options relating to the Authority's outstanding bonds.
On November 2, 2005, the Board, acting recommendation the recommend n of
the staff and the Authority's financial advisor, RBC Dain Rauscher
BOND FINANCING Inc., authorized the staff to proceed with Bear, Stearns & Company
and George K. Baum & Company to pursue a proposed refunding of
a portion of the Authority's outstanding bonds and thereby restructure
The Northwest Parkway Public Highway Authority issued approxi- its bond obligations.
mate) $364 million of insured Senior Bonds
sand approximately
$52 million of Subordinate Bonds in June 2001 to fund the con- On December 16, 2005 the Authority announced that it was
str i
not dore-
ucton of the Northwest Parkway toll road project. The under- Portable with the pricing available in the market for the proposed re-
writers were George K Baum&Company and Bear. Stearns&Co. funding and terminated the offering in order to explore more cost ef-
Inc. PBConsult Inc. was the financial consultant and provided the fective options. The Authority expects to bring a new refunding struc-
chief financial officer for the Authority. A.G. Edwards&Sons, Inc. lure to market by year-end 2006.
was the financial advisor. Vollmer Associates conducted the traffic4
and revenue study with PB Consult Inc. providing the economic/
land use inputs for the study.
PEOPLE BEHIND
THE PROJECT
Board of Directors
Chris Berry, City of Lafayetter.=
Chairman of the Board r
Alternate— Chris Cameron 4l ,! j
Karen Stuart, City and County of Broomfield _ ,
Vice-Chairman of the Board ``
Alternate—Walt Spader
Glenn Vaad, Weld County
Secretary/Treasurer of the Board
Alternate— Robert Masden
Associate Members
Lorraine Anderson, City of Arvada fa yo'
Alternate — Don Allard 1 .�
-
Jefferson County
Ex-Officio Directors
Joe Jehn, Colorado Transportation Commission R
Alternate — Peggy Catlin, Colorado Department of .= -- _
-
Transportation --
Wallace Pulliam, Regional Transportation District
Alternate—Lee Kemp
Joel Rosenstein, Interlocken Consolidated Metropolitan
District
Alternate—Jeff Pretty
Authority Senior Staff Ed Icenogle—General Counsel
Erin Smith—Lead Right-of-Way Counsel
Stephen D. Hogan-Executive Director Icenogle, Norton, Smith & Blieszner, PC
Mark Shotkoski—Chief Engineer Mark May— Right-of-Way Counsel
Richard Bauman—Special Projects Coordinator May&Associates, PC
Steven Bobrick—Business Manager Kieth Fiebig—Project Oversight Manager
Benton Tempas—IT Director Carter& Burgess, Inc.
Jill Lamoureux—Finance Manager Mary Brown — Public and Governmental Relations
Pamela Bailey Campbell—Chief Financial Officer InterMountain Corporate Affairs
Carter& Burgess, Inc. Carolyn McIntosh—Special Governmental Counsel
Patton Boggs, LLP
Authority Core Consulting Team Howard Kenison —Special Environment Counsel
Lindquist, Vennum & Christensen P.L.L.P
Norman Lovejoy—Consulting Engineer Lisa Fenner—Financial Advisor
Lovejoy &Associates, Inc. RBC Dain Rauscher, Inc. 5
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Northwest Parkway Public Highway Authority
3701 Northwest Parkway
Broomfield, CO 80020
Telephone; 343-533-1200
ex: 303 4-30 9 }
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