HomeMy WebLinkAbout20023044.tiff TM TRANSMITTAL MEMORANDUM
Northwest Parkway Project
A Public Highway Authority
555 Eldorado Boulevard, Suite 130, Broomfield, Colorado 80021
nwo®northwestoorkwou.orq
Phone: 303-466-0567 Fox: 303-404-3049
TO: NWP Investors
FROM: Jill Lamoureux
CC:
DATE: Thursday, November 14, 2002
SUBJECT: Northwest Parkway Bond Disclosure Document
Enclosed is the bond disclosure document for the 3'd Quarter of 2002. The PDF file
con also be found on the What's New section of our website
(www.northwestporkwo .orq). Please feel free to contact me if you have any
questions or concerns.
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2002-3044
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Northwest Parkway
Public Highway Authority
Construction Update
for the period July 1, 2002
through September 30, 2002
PAR A AY
November 15, 2002 �'
TABLECONTENTS
OVERVIEW 1
Northwest Parkwa9 Public Highway Authority, Project Description, Plan
of Finance, Design/Build Contractor
PROJECT PROGRESS SUMMARY 1-2
ROW, Design/Build Contractor, Schedule Status, Design,
Geotechnical/Permits & Clearances/Utilities, Construction
PROJECT FINANCIAL HIGHLIGHTS 3
Overall Financial Status, Capital Budget, Change Order Status,
Contingency Fund Status
INVESTMENTS 3-4
Construction Fund, Debt Service Reserve Fund, Capitalized Interest Fund
BUDGET 4
BOND FINANCING 4
THE PEOPLE BEHIND THE PROJECT 5
NWP Board of Directors, Senior Staff, Core Consulting Group
MAP BACK COVER
RR Northwest Parkway Public Highway Authority
dik 555 Eldorado Boulevard, Suite 130
Broomfield, Colorado 80021
Telephone: 303-466-0567
ERY1 PROJECT PROGRESS .
OVSUIUMRR.Y
The Northwest Parkway ROW
_ Public Highway Authority The right-of-way budget includes the estimated costs for
The Northwest Parkway Public Highway Authority is a polit- right-of-way acquisition including associated relocation
ical subdivision of the State of Colorado established in June costs. The Authority is required to deliver on the contract
1999 with all the powers, duties and privileges provided by schedule approximately 564 acres of right-of-way.
the Public Highway Authority Law. The Board of Directors of
the Authority is currently composed of one elected official Western States land Services ("WSLS") is under contract to
the Authority to lead the effort in right-of-way acquisition.
from each of the City of Broomfield, the City of Lafayette,
More than a dozen other contractors specializing in areas
and Weld County, Colorado. In the 2nd quarter of 2002 the such as title work, surveying, appraisals and condemnation
City of Arvada applied to the Board of Directors and was law support WSLS in their acquisition efforts. Under the
approved for an affiliate membership to the Authority. The terms of the Design-Build Contract, the Authority was obli-
Authority is responsible for the financing, construction and gated to deliver right-of-way to the contractor in three
operation of the toll highway to be known as the Northwest phases.
Parkway.
As of September 30, 2002 the Authority has obtained pos-
Project Description session of all of the 564 acres of right-of-way it is obllgat-
The Northwest Parkway will consist of the existing two-mile ed to deliver under the Design-Build Contract. Of this, 452
acres are fee simple takes and the remainder is mode up
Interlocken Loop From State Highway 128 to Tape Drive (Just
by easements.
south of the intersection with 96th Street) connecting with
the nine-mile limited access toll highway being constructed Phase One of the acquisition extends from I-25 at the east
on the northwestern perimeter of the Denver metropolitan terminus of the Project to just east of Rock Creek, near the
area that will link the Interlocken Loop to I-25. U.S. 287 interchange. The Authority met all of its obliga-
tions under the Design-Build Contract to deliver this right of
Also under construction is the final segment of the E-470 way by December 25, 2001.
tollroad which is to connect with the Northwest Parkway at
Phase Two begins just east of Rock Creek and ends just
1-25,providing access to and from regional employment cen-
west of the 104th Street grade separation. Phase Two
ters and retail centers and facilitating travel from the north- right-of-way was delivered within 270 days of contract
western metropolitan area to points east and south, includ- signing with the exception of one parcel relating directly to
ing Denver International Airport. utility relocations which was ultimately determined not to
be required.
The Northwest Parkway project is expected to benefit from
a barbell effect of two major developments on either end of Phase Three begins at the end of Phase Two and extends
the project, with the existing Interlocken development on to the end of the Project on 96th Street. The Phase Three
the southwest and o new 3,000 acre planned and zoned properties were delivered successfully by the contract
development called Preble Creek on the northeast. deadline of June 30, 2002.
Plan of Finance Of the purchases which have been finalized or hove had
value determination set to date, the overall right-of-way
The Northwest Parkway Public Highway Authority costs have been under the allocated budget amount. For
("Authority") closed on project financing in June 2001 and the ROW obtained via eminent domain, there remain 11
simultaneously gave a notice to proceed to the Design- parcels that have not yet received value determinations.
Build Contractor—Northwest Parkway Constructors("NPC"). Based on the information currently available, the Northwest
The plan of finance (see further description under "Bond Parkway expects that sufficient budgetary resources hove
financing") provides for the funding of construction costs been set aside for the acquisition and court costs for those
under the Design-Build Contract and other capital costs, as parcels.
well as Authority administrative and operation/maintenance 4,14
costs through the construction period, as well as amounts v
due certain reimbursement agreements. In addition, the 'y' ________
plan of finance provides for debt service reserves, capital-
ized interest, contingency funds, bond insurance premiums
and issuance costs. -
1
Design/Build Contractor during this period. NPC received approval from the City of
The Design-Build Contract between the Northwest Parkway Broomfield for the Water and Sewer License and the
Public Highway Authority and the Northwest Parkway Boulder County Floodplain Permit. NPC also received per-
Constructors, a Colorado joint venture, of Klewit Western Co. mit approval from Colorado Division of Water Resources for
and Washington Group International, Inc. was executed on the Laramie Fox Hills Aquifer and the General Purpose
June 28, 2001. The full notice to proceed was issued on Water Wells.
June 28, 2001 simultaneous with financing closing. The con-
tract provides for the road to open to traffic by December Construction
31, 2003 with revenue collection to begin on the Project Work on the Northwest Parkway Structures during this peri-
Guaranteed Substantial Completion date of February 29, od Included the installation of the east concrete abutment,
2004. The final acceptance of all Items included in the prof- wing walls and the columns at the eastbound roadway
ect is scheduled to be completed by the Project Guaranteed over Rock Creek at the US 287 interchange. The concrete
Final Acceptance of June 1, 2004. decks for the Huron and Sheridan Bridges were poured.
Concrete columns for the BNSF (Burlington Northern Santo
Schedule Status Fe Railway) Spur Bridge were also installed.
As of the reporting period ending September 30, 2002 the
construction contract Is 44.3% complete (based on NPC removed the I-25 detour and resumed bridge foundo-
approved work). The overall completion milestones for the tion and substructure work on the ramp from eastbound
project remain on schedule. The civil design work is 91.7% Northwest Parkway to northbound I-25 at the I-25 Inter-
complete. change. Work on the I-25 interchange included dry finish
and concrete coating on the median piers at the romp from
The work is being conducted in four Sections. Section One northbound I-25 to westbound Northwest Parkway and the
extends from the connection with E-470 east of I-25 to eastbound Northwest Parkway to northbound I-25 ramp.
Huron Street,Section Two extends from Huron Street west to Embankment protectors and guardrail were installed at the
120th St., Section Three extends from 120th west to 104th I-25 northbound and southbound bridges and at the 160th
and Section four extends from 104th southwest to US 36. Avenue Bridge. Caissons for the Varible Message Sign
bridge and cantilever sign structure on northbound I-25
were also completed.
Design
During this period, NPC continued design work in Sections The 160th Avenue Bridge over I-25 and the Huron Street
One, Two, Three and Four(Al, A2, A3 and A4 respective- Bridge over Northwest Parkway were completed and
ly). Design activities included additional design package opened to traffic during this period.
submissions and review of submittals and drawings. In
Section One Request for Information submittals for NPC continued embankment operations between US 287
drainage design were reviewed and shop drawings for and Rock Creek. Excavations of two romps at the US 287
bridge design were also reviewed. Coordination meetings interchange took place (Ramp J and part of Ramp K). NPC
continued with various jurisdictions, utilities and the finish operations worked on subgrode and base to Lowell
Colorado Department of Transportation ("CDOT"). The Blvd. Drainage work included the placement of the Ramp J
geotechnical investigations also continued and ore In the drainage at the US 287 Interchange. Work on the Toll Plaza
process of being completed on a project wide basis. The included the completion of the excavation for the Toll Plaza
following major packages were submitted to the Authority Tunnel and Main Building. The tunnel slab was completed.
for their approval during this period: A4 Grading and
Drainage, A4 Bridges, A3 Bridge Packages; A4 Utility ,
Packages; A3 Utility for Xcei Energy; Toll Plaza Grading and i ,
Drainage and the Toll Plaza Building Final Design. The t-
Authority released the Toll Plaza Tunnel package for con- z
struction during this period.
GeotechnicaUPermits &
Clearances/Utilities
NPC submitted Final Design in Section Four on Xcel Energy at
104th Street and the City of Louisville Water Line Sleeves
2
3.) 404 permit for Rock Creek; 4.) engineering definition for
PROJECT FINANCIAL the Neumann Flood Ploin;5.) engineering definition for a gas
HIGHLIGHTS and oil road crossing; 6.) o credit for decreasing the thick-
ness of bose course for asphalt paving; 7.) increase the size
of the concert box culvert at Station 275; 8.) initial piping for
Overall Financial Status the De-Icing system; 9.) MSE walls; 10.) ROW fencing for
The total capitol budget for the Northwest Parkway was Boulder County; 11.) eliminated construction scope for Rock
originally $242,637,528, excluding contingency funds. Creek; 12.) Class 2 backfill material; 13.) remediotion of haz-
After adjusting for all change orders through September ardous waste at Dillon Road; 14.) plug and abandon CDOT
30, 2002 the total capital budget is $243,665,199 monitoring wells; 15.) irrigation crossing for Patina Lease
excluding the contingency fund budget. That amount Rood; 16.) remediation of petroleum stained soils at US 287
includes the Design-Build Contract covering all construc- and Dillon Rood; 17.) design costs for Pulte Homes utility
tion; a contract with E-470 for early I-25 Interchange sleeves; 18.) construction costs for Pulte Homes utility
design; Program Management costs including construction sleeves; and 19.) City of Lafayette utility sleeves.
oversight and all right-of-way acquisition activities. The
amount of expenditures through September 30, 2002 The net change orders approved as of September 30, 2002
total $162,332,324. The payments to NPC Included in total $1,900,330. Items 17 and 18 were financed by Pulte
that total are $81,948,466. Homes Corporation with a check and a letter of credit in the
amount of $608,978. The City of Lafayette will finance item
Capital Budget 19 in the amount of$177,196.
The original Contract Amount of the Design-Build Contract
was $187,637,528. Change orders approved through Contingency Fund Status
September 30. 2002 have Increased that amount to The allocated budget for Contingency is $18,763,753, inciud-
$189,537,858. There hove been thirty-eight contract ing expected interest earnings over the life of construction.
changes authorized, with a total cost impact of Approved change orders total $1,900,330. However, after
$1,900,330. However, three change orders in the amount adjusting for third party funded change orders, the net
of $786,174 hove been funded by Pulte Homes charge against the original contingency fund is currently
Corporation and the City of Lafayette. Therefore, the net $1,114,156 which adjusts the allocated budget amount to
impact on the contingency funds through September 30, $17,649,597.
2002 is a transfer of $1,114,156. Nine of the change
orders were technical no cost changes and nine were for INVESTMENTS
allowances already provided for in the Design-Build INVESTMENTS
i 1Y1`1! 7
Contract. This contract amount covers all costs associated
with the design and construction of the Northwest Construction Fund
Parkway including such activities as:design,paving, inter- At the time of closing, $245,114,354 was invested in an
change and crossing structures, landscaping, communica- Investment Agreement with Trinity Funding Company, which
dons, toll plazas and operations facilities, and toll collet- submitted the successful bid.
tlon system. The total value of approved work earned
Bond proceeds in the Construction Fund which were not
through September 30, 2002 is $83,913,499 or 44% of
invested in that Investment Agreement are invested by the
the contract. In accordance with Colorado State law, the
Trustee In either a Wells Fargo money market fund or the RBA
10% retainage on the first 50% of the contract
Colorado Local Government Liquid Asset Trust.
($8,391,349) is being held by the Authority in securities
in lieu of retainage.
Debt Service Reserve Fund
Change Order Status (a) $36,161,406.28 of the Senior Bond proceeds were
Invested for the Senior Debt Service Reserve Fund in Debt
Thirty-eight change orders have been approved to date.
Nine of these were technical, no cost changes to the con-
Hypo- and Vereinsbank AG, New York Branch, which was the
Service Reserve Forward Delivery Agreement with Boyerische
tract performance criteria. One change order was a cred-
successful bidder.
it for a global settlement on oil and gas facilities. Nine
(b) $5,078,244.75 of the First Tier Subordinate Lien Bonds
change orders were also no cost changes that replaced
proceeds were used to enter into a Reserve Fund Agreement
allowances in the Design-Build Contract. The remaining
for the First Tier Subordinate Debt Service Reserve Fund with
nineteen change orders include: 1.) a global change with
Lehman Brothers Special Financing Inc., which was the suc-
the contractor for Toll Plaza improvements, credits for con-
crete box culverts, pavings changes, elimination of bridge cessful bidder.
lugs and pier shape changes; 2.) removal of lead paint; 3
Capitalized Interest Fund The 100% toll-revenue bodied start-up toll road received
The capitalized interest amount from the bond proceeds of bond insurance from both Ambac and FSA resulting in a pos-
$43,047,440.50 was invested in on Investment Agreement itive reception of Northwest Parkway Authority bonds in
with RIG Matched Funding Corp. This Investment the market. The financing plan received investment grade
Agreement is expected to provide returns which, when underlying ratings from all three rating agencies: Standard
combined with interest flowing from the Debt Service &Poor's and Fitch rated the Senior Bonds BBB-and Moody's
Reserve, will provide the necessary interest payments Investors Service rating them a Boa3. The Subordinate
through the capitalized interest period. Bonds received Moody's Dal rating and a BB-plus From
Standard & Poor's.
BUDGET
The Authority originally adopted -the 2002 budget on The Sources and Uses for the Northwest Parkway Bond
December 18,2001. Upon completion of the 2001 audit, a
budget hearing was held and the amended budget which issue are estimated as follows:
included all corryforward amounts for capital items was
adopted by the Northwest Parkway Authority Board on April
30, 2002. SOURCES OF FUNDS:
2002 Amended Budget Series 2001A Bonds $175,720,000
(Current interest)
REVENUES
Series 20018 Bonds 79,865,792
Investment Income $9,892,500
(Capital Appreciation)
TOTAL REVENUES $9,892,500, Series 2001C Bonds 108,371,280
EXPENDITURES (Convertible Capital Appreciation)
Salary Expenses $630,000 Series 2001D Bonds 52,465,000
Operating Expenses 355,000 (First Tier Subordinate)
Professional Services 819,432 Colorado Department of Transportation 723,000
Furniture & Fixtures 50,000 Net Original Issue Discount (4,025,562)
Debt-Related 85,842,343 TOTAL SOURCES $413,119,510
Capital 239,263,583
TOTAL EXPENDITURES $326,960,358
Note: Development Stage Company-all budgetary expenses USES OF FUNDS:
covered from Bond proceeds and investment income. Design-Build Contract Price $179,819,232
(net of interest earnings)
Other Costs of the Project (1) 104,738,219
Capitalized Interest 2001A, 2001D 43,047,440
BOND FINANCING Debt Service Reserve Accounts 41,239,651
Cost of Issuance/Underwriters Discount 26,617,107
The Northwest Parkway Public Highway Authority issued Project Contingency 17,657,861
approximately $364 Million of insured Senior Bonds and (available for Project Costs)
approximately $52 Million of Subordinate Bonds in June
2001 to fund the construction of the Northwest Parkway toll TOTAL USES $413,119,510
road project. The Underwriters were George K Baum & (1) Includes right-of-way acquisition, project oversight
Company and Bear, Stearns & Co. Inc. PBConsult Inc. was engineering services, administrative costs, and
the financial consultant and provided the chief financial amounts due under reimbursement agreements.
officer for the Authority. A.G.Edwards&Sons, Inc.was the
financial advisor. Vollmer Associates conducted the traffic
and revenue study with PBConsult Inc. providing the eco-
nomidland use inputs for the study.
4
THE PEOPLE BEHIND
THE PROJECT
Board Of Directors: Authority Senior Staff
Sue Klempan, City of Lafayette Stephen D. Hogan — Executive Director
Chairman of the Board Richard Bauman — Chief Engineer
Alternate —Tom Houge, City of Lafayette Steven Bobrick — Business Manager
Pamela Bailey Campbell — Chief Financial Officer
Hank Stovall, City and County of Broomfield (PBConsult Inc)
Vice-Chairman of the Board
Alternate - Karen Stuart, City and County of Authority Core Consulting Team
Broomfield
Norman Lovejoy — Consulting Engineer
Glenn Vaad, Weld County Ed Icenogle —General Counsel
Secretary/Treasurer of the Board Erin Smith - Lead Right-of-Way Counsel
Alternate — Robert Masden, Weld County Mark May— Right-of-Way Counsel
Commissioner Mark Shotkoski—Project Oversight Engineering Firm Manager
Fred Niehaus — Public and Governmental Relations
Ex-Officio Directors Carolyn McIntosh — Special Governmental Counsel
Howard Kenison — Special Environmental Counsel
Joe Jehn — Colorado Transportation Commission
Alternate - Tom Norton, Colorado Department of
Transportation
Mary Blue — Regional Transportation District
Alternate — Wally Pullium, Regional Transportation
District
tea`-a
Joel Rosenstein — Interlocken Consolidated Metropolitan ' r ' ft i
District
Lorraine Anderson — City of Arvada
Alternate - Don Allard, City of Arvada
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PARKWAY
Northwest Parkway Public Highway Authority
555 Eldorado Boulevard, Suite 130
Broomfield, Colorado 80021
Telephone: 303-466-0567
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