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The Northwest Parkway NW
Disclosure Document
2004
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TABLE OF CONTENTS
OVERVIEW 1
CONSTRUCTION OF THE NORTHWEST PARKWAY 1
SHERIDAN INTERCHANGE 2
PROJECT FINANCIAL HIGHLIGHTS 3
INVESTMENTS 4
BUDGET ‘ 4
BOND FINANCING 4
THE PEOPLE BEHIND THE PROJECT 5
NW Northwest Parkway Public Highway Authority
3701 Northwest Parkway
' Broomfield, Colorado 80020
Telephone: 303-533-1200
Fax: 303-404-3049
www.nwpky.org
PARKWAY
info@nwpky.org
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OVERVIEW CONSTRUCTION OF THE
The Northwest Parkway Public Highway Authority NORTHWEST PARKWAY
The Northwest Parkway Public Highway Authority
(Authority) is a political subdivision of the State of Colo- Design/Build Contractor
rado established in June 1999 with all the powers, duties In order to construct the Northwest Parkway, a Design-Build
and privileges provided by the Public Highway Authority Contract between the Authority and NPC, a Colorado joint
Law. The Board of Directors of the Authority is currently venture of Kiewit Western Co. and Washington Group Inter-
composed of one elected official from each of the City and national, Inc. was executed on June 28, 2001. The full notice
County of Broomfield, the City of Lafayette, and Weld to proceed was issued on June 28, 2001 simultaneous with
County, Colorado. In the 2"° quarter of 2002 the City of financing closing. The contract provided for the road to open
Arvada applied to the Board of Directors and was ap- to traffic by December 31, 2003 with revenue collection to
proved for an affiliate membership to the Authority. In the begin on the Project Guaranteed Substantial Completion date
4th quarter of 2002 Jefferson County also applied to the of February 29, 2004. The road opening was achieved on
Board of Directors and was approved for an affiliate mem- November 24, 2003 and revenue collection began on Decem-
bership to the Authority. Ex-Officio members include the ber 8, 2003. The final acceptance of all items included in the
Colorado Department of Transportation, the Regional project was completed by the Project Guaranteed Final Ac-
Transportation District and Interlocken Consolidated Met- ceptance of June 29, 2004.
ropolitan District. The Authority is responsible for the fi-
nancing, construction and operation of the toll highway ROW
known as the Northwest Parkway (Parkway). To acquire the right-of-way for the Northwest Parkway a
budget was established that included all estimated costs for
Project Description right-of-way acquisition including property acquisition, legal,
consultants and associated relocation costs. Under the De-
The Northwest Parkway consists of the two-mile Inter- sign-Build Contract, the Authority was required to deliver on
locken Loop from State Highway 128 to Tape Drive (just the contract schedule approximately 564 acres of right-of-
south of the intersection with 96th Street) connecting with way. The Authority has obtained possession of all of the re-
the nine-mile limited access toll highway constructed on quired right-of-way; of this, 452 acres are fee simple takes
the northwestern perimeter of the Denver metropolitan and the remainder is made up by easements.
area that links the Interlocken Loop to 1-25.
Of the purchases which have been finalized or have had
The final segment of the E-470 toll road which connects value determination set to date, the overall right-of-way costs
with the Northwest Parkway at 1-25 was completed in the have been under the allocated budget amount. For the ROW
4th quarter of 2002, providing access to and from regional obtained via eminent domain, there remains one parcel that
employment centers and retail centers and facilitating has not yet received a value determination. Based on the
travel from the northwestern metropolitan area to points information currently available, the Authority expects that suf-
east and south, including Denver International Airport. ficient budgetary resources have been set aside for the ac-
Current construction work includes completion of an Inter- quisition and court costs for that parcel.
change at Sheridan Boulevard.
Plan of Finance
The Authority closed on project financing in June 2001 and
simultaneously gave a notice to proceed to the Design- ;-
Build Contractor— Northwest Parkway Constructors * ./ °
(NPC). The plan of finance (see further description under
Project Financial Highlights) provides for the funding of
construction costs under the Design-Build Contract and
other capital costs, as well as Authority administrative and
operation/maintenance costs through the construction pe-
riod, and amounts due under certain reimbursement
agreements. In addition, the plan of finance provides for
debt service reserves, capitalized interest, contingency a d:
funds, bond insurance premiums and issuance costs. __ 1
with Pirnack Walters as the design/build contractor at the
SHERIDAN INTERCHANGE November 2004 board meeting. The Authority expects to
receive a building permit from Broomfield and begin con-
struction in April 2005 and complete construction of the
Site Selection maintenance facility by September 2005.
The original Authority plan included construction of an
interchange at Sheridan Boulevard no later than 2010.
Current activities in that vicinity indicated that it would
be beneficial to Authority revenues to open the inter-
change as soon as possible. Due to the fact that the
majority of the Construction Contingency funds were not
used from the Original Design-Build Contract and asso-
ciated mobilization costs, it is possible to complete the II iI
construction of the interchange and still have a Contin- u011iIIIiIIII� VIII
gency Fund balance. i
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A critical path item to the construction of the Sheridan r..,
Interchange is to move the current temporary mainte- FUTURE MAINTENANCE YARD
nance facility. This is due to the fact that the temporary
maintenance facility now sits in the middle of the pro- Interchange Status
posed west bound on-ramp from Sheridan to the Park- In the 3rd quarter 2004, the Authority executed a contract
way. with Carter Burgess (CB) for design review and construction
maintenance on the Sheridan Interchange project. Roadway
The City and County of Broomfield is requiring the Au- design work and coordination with contractors were the major
thority to construct a permanent maintenance facility tasks completed this quarter. The CB team also assisted in
rather than moving the temporary facility. The Authority the preparation of the contractor bid package with the Author-
has determined that the best site for the maintenance ity. CB submitted the Final Design Review Package in De-
facility is east of the Sheridan Interchange location on cember 2004. Design of the Sheridan Interchange is 100%
land currently owned by the Pulte Corporation. complete.
As part of its Preble Creek development plan, the Pulte The Sheridan Interchange project will be constructed as a
Corporation desires to obtain land to hold for permanent design, bid, build project. The Authority expects to select the
open space. The Authority owns land acquired to hold contractor in February 2005 and have the interchange open
for open space. Following discussions and negotia- to traffic by January 2006 contingent on weather. The project
tions, the Authority has agreed to trade parcels of land consists of building on and off ramps from the Parkway to
with Pulte. There is no monetary consideration involved Sheridan, construction of two unmanned toll booths with coin
machinter-
in this transaction. Once the trade has been finalized, change e lighting,and automated toll collection capability,thetoll
s
the Authority can gain approval from Broomfield for con- tthe rm . and ion, ac change ng ordernd has toll beenb and
at the ramp. In addition, a order has executed
struction of the permanent maintenance site, and begin with NPC to provide concrete slab approach ramps. The de-
construction on both the site and the Sheridan Inter- sign and construction budget for the interchange and mainte-
change. Completion of the maintenance site is sched- nance facility is approximately $6,815,000 which is available
uled for September 2005. Completion of the Sheridan from remaining contingency funds.
Interchange is scheduled for January 2006. Both
schedules are weather dependent. Operations Report
The Northwest Parkway opened to traffic on November 24,
2003. As an incentive to new customers, all customers drove
Maintenance Facility Status free until December 8, 2004. EXpressToll customers contin-
In August, the Authority entered a contract with Eidos ued to drive free through December 31, 2003. EXpressToll is
Architects, LLC to design a maintenance facility. The the Denver area branding for the transponder system that
preliminary design work is 90% complete. The building allows non-stop use of the toll roads. These transponders
is being designed to meet strict aesthetic criteria from are functional on both the Northwest Parkway and the E-470
the City and County of Broomfield. The project will con- toll road.
sist of covered parking for six snow plows, a 1,500 sq.
ft. office, a 1,000 sq. ft. storage area, a fuel island for In this quarter, 352 transponders were issued for new EX-
diesel and gasoline, storage tanks for anti-ice chemi- Plaza. A total of 12,579 new EXpressToll accounts were
press
all accounts opened at the Parkway's mainline Toll
Gals, covered storage for salt and sand, and a separate Plaza.
building for vehicle maintenance. The construction opened in this period through the EXpressToll website, ser-
vice centers and area retail outlets. Due to interoperability
budget for the maintenance facility is $1,200,000 which agreements between the Authority and the E-470 Public
will be paid from available contingency funds. The Au- Highway Authority (E-470), the Authority benefits from the
thority recommended and received approval to contract entire EXpressToll customer base of over 168,000. 2
The Authority, through an Intergovernmental Agreement(IGA)
with E-470. has contracted with Mile High Toll Services PROJECT FINANCIAL HIGHLIGHTS
(MHTS) to operate the Parkway. MHTS is a division of Par-
sons Brinckerhoff. The IGA also provides for the Authority to
utilize the back office operations of E-470 for EXpressToll Original Capital Budget
processing and customer service functions. The total capital budget for the Northwest Parkway at final
closing was set at$242,637,528, excluding contingency
Operations of the Parkway are continuing without incident as funds. After adjusting for all change orders through Decem-
traffic steadily increases. Detailed auditing has shown that ber 31, 2004 the total capital budget is $246,330,230 exclud-
MHTS continues to perform within industry standards. The ing the remaining contingency fund budget. That amount in-
EXpressToll transactions that are handled by the E-470 cus- cludes the Design-Build Contract covering all original Park-
tomer service center are exchanged on a nightly basis and way construction; a contract with E-470 for early 1-25 inter-
payments are regularly audited by Authority staff. The viola- change design; Program Management costs including con-
tion system continues to run smoothly. struction oversight and all right-of-way acquisition activities.
The amount of expenditures through December 31, 2004 to-
The Authority has entered into a three-year contract for road- tal $235,359,455. The payments to NPC included in that total
side, roadway and facilities maintenance with American Civil $235,359,455. The payments to NPC included in that total
ar
Constructors (ACC). ACC handles all snow removal on the are $191,615,337.
Parkway and operates the Parkway's Courtesy Patrol. Mainte-
nance work on the Parkway has proceeded as scheduled.
ACC continues to assist the Authority in identifying warranty The original Contract Amount of the Design-Build Contract
issues. was $187,637,528. Change orders approved through De-
cember 31, 2004 increased that amount to $191,615,337.
The Authority has been working on identifying warranty items There were eighty-one contract changes authorized, with a
on the roadway and at the Toll Plaza Building. Project War- total cost impact of$3,977,809. However, six change orders,
ranty expires February 28, 2005, one year after substantial in the amount of$1,269,788, were funded by Pulte Homes
completion was reached on February 28, 2004. Some war- Corporation, the City of Lafayette, the City and County of
ranty items will be completed by Project Warranty period end- Broomfield and the Colorado Department of Transportation.
ing date. Other items that require temperature/weather permit- In addition, one change order was funded as a transfer from
ting will be completed at a later date as agreed upon between the Northwest Parkway Right-of-Way budget in the amount
the Authority and NPC. $285,107. In addition, there was an adjustment for actual
waterline costs incurred. Ten of the change orders were
Maintenance work on the Northwest Parkway has consisted of technical no cost changes and eleven were for allowances
routine roadway and roadside maintenance work. ACC is already provided for in the Design-Build Contract. This con-
currently handling snow and ice maintenance, as well as per- tract amount covered all costs associated with the design and
forming emergency repairs. Two new signs have been in- construction of the Parkway including such activities as: de-
stalled on the Parkway for the new Exempla Good Samaritan sign, paving, interchange and crossing structures, landscap-
Hospital. Currently, Avista Adventist Hospital is working on
ing, communications, toll plazas and operations facilities, and
sign placement on the Parkway.
toll collection system. The total value of approved work
On December 1, 2004, the Authority contracted with NEC to earned through December 31, 2004 on the original Design-
install two Variable Message Signs at each end of the Park- Build Contract is $191,615,337 or 100% of the contract.
way. Notice to proceed has been issued and mobilization
work has begun. This project is expected to be completed by Sheridan Interchange Budget
June 2005. The budget allocated to the Sheridan Interchange is
$6,815,386 which was transferred from the Contingency
Law enforcement and incident management on the Parkway is Budget. The allocated budget includes funds for design, con-
handled by the City of Broomfield Police Department through struction and toll system implementation for the interchange
an IGA with the Authority. Both the Broomfield Police and the and maintenance facility. Also included in the budget is a
North Metro Fire District(NMFD) respond to any occurrences change order to the Design-Build Contract in the amount of
as needed and continue to meet the Authority's requests and $86,782 for the concrete slab approach ramps at the Sheri-
requirements. The NMFD has broken ground on a new facil- dan Interchange.
ity along the Parkway which is scheduled to be completed De-
cember 2005. Contingency Fund Status
Traffic Summary The original allocated budget for Contingency was
Toll collection for cash customers began on December 9, 2003 $18,763,753, including expected interest earnings over the
and on January 1, 2004 for EXpressToll customers. Total life of construction. Approved change orders total
transaction for October were 257,697. Average daily transac- $3,977,809. However, after adjusting for third party funded
tions (ADD for October were 8,313, a .4% increase over Sep- change orders and a transfer from the Right-of-Way budget,
tember traffic. Total transactions in November were 251,312, the net charge against the original contingency fund is cur-
with an ADT of 8,377 which is a .8% increase over October. rently $2,422,914, which adjusts the allocated budget amount
Total transactions for December were 286,417 with an ADT of to $16,340,839. The Authority has also transferred
9,239 which is a 10.3% increase over November. The large $3,807,601 for start-up and mobilization costs and plans to
December increase may indicate a seasonal effect from the transfer an additional $6,815,386 for the Sheridan Inter-
Flatirons Mall on the west end of the Parkway and Denver In- change and maintenance facility project. The remaining unal-
ternational Airport on the east end. located Contingency Budget is$5,717,852.
3
INVESTMENTS BOND FINANCING
Construction Fund Bond Financing
(a) At the time of closing, $245,114,354 was invested The Northwest Parkway Public Highway Authority issued approxi-
n an Investment Agreement with Trinity Funding mately $364 million of insured Senior Bonds and approximately $52
iCompany, which submitted the successful bid. million of Subordinate Bonds in June 2001 to fund the construction of
(b) Bond proceeds in the Construction Fund which the Northwest Parkway toll road project. The underwriters were
were not invested in that Investment Agreement George K Baum & Company and Bear, Stearns & Co. Inc. PBCon-
are invested by the Trustee in either a Wells Fargo suit Inc. was the financial consultant and provided the chief financial
money market fund or the AAA Colorado Local officer for the Authority. A.G. Edwards& Sons, Inc.was the financial
Government Liquid Asset Trust. advisor. Vollmer Associates conducted the traffic and revenue study
with PB Consult Inc. providing the economic/land use inputs for the
study.
Debt Service Reserve Fund
(a) $36,161,406.28 of the Senior Bond proceeds were in- The Senior Bonds received bond insurance from both Ambac and
i vested for the Senior Debt Service Reserve Fund in a Debt FSA resulting in a positive reception of Northwest Parkway Authority
Service Reserve Forward Delivery Agreement with Bay- bonds in the market. The financing plan received investment grade
erische Hypo—and Vereinsbank AG, New York Branch,who underlying ratings from all three rating agencies: Standard & Poor's
was the successful bidder. and Fitch rated the Senior Bonds BBB— and Moody's Investors Ser-
vice rated them Baa3.The Subordinate Bonds received Moody's Bat
Capitalized Interest Fund rating and a BB-plus from Standard& Poor's.
(b)The capitalized interest amount from the bond proceeds Fitch and Moody's have both affirmed their underlying ratings for the
of$43,047,440.50 was invested in an Investment Agree- Senior and Subordinate Bonds and have issued negative outlooks.
ment with AIG Matched Funding Corp. This Investment To-date no review has been undertaken by Standard and Poor's.
Agreement is expected to provide returns which,when Please refer to the individual rating agencies for further information.
combined with interest flowing from the Debt Service Re-
serve,will provide the necessary interest payments through The Source and Uses for the Northwest Parkway Bond issue are
the capitalized interest period. estimated as follows:
Sources of Funds:
2004 BUDGET
Series 2001A Bonds $175,720,000
The Authority adopted the 2004 budget on De (Current Interest)
cember 23, 2003. Upon completion of the 2003 Series 2001 B Bonds 79,865,792
audit, a budget hearing was held and an (Capital Appreciation)
amended budget which includes all carry for Series 2001C Bonds 108,371,280
ward amounts for capital items was adopted by (Convertible Capital Appreciation)
the Northwest Parkway Authority Board on June!
29, 2004. Series 2001D Bonds 52,465,000
(First Tier Subordinate)
REVENUES Colorado Department of Transportation 723,000
Investment Income $3,600,000 Net Original Issue Discount (4,025,562)
Toll Revenue 6,320,000
TOTAL SOURCES $413,119,510
TOTAL REVENUES $9,920,000 Uses of Funds:
Design-Build Contract Price $179,819,232
EXPENDITURES (net of interest earnings)
Capital $40,325,426
Debt-Related 67,470 028 Other Costs of the Project(1) 104,738,219
Operating Expenses 4,350,810 Capitalized Interest 2001A,2001D 43,047,440
Salary Expenses 987,896
Professional Services 686,184 Debt Service Reserve Accounts 41,239,651
Furniture & Fixtures 50,000
Cost of Issuance/Underwriters Discount 26,617,107
TOTAL EXPENDITURES $113,870,344 Project Contingency 17,657,861
(available for Project Costs)
Note: The Northwest Parkway Public Highway,
Authority is considered a Development Stage TOTAL USES $413,119,510
Company. Therefore, all budgetary expenses!
are covered from bond proceeds and investment (1) Includes right-of-way acquisitions, project oversight engineering services.
administrative costs, and amounts due under certain reimbursement agree- 4
income. ments.
PEOPLE BEHIND
THE PROJECT
Board of Directors
Glenn Vaad, Weld County - Chairman of the Board .,. .
Alternate — Robert Masden, Weld County
Karen Stuart, City and County of Broomfield — Vice- E
Chairman of the Board
Alternate —Walt Spader, City and County of Broomfield
Chris Berry, City of Lafayette - Secretary/Treasurer of the ``>
Board - . •fir
Alternate — Kerry Bensman, City of Lafayette
Associate Members
Lorraine Andersen—City of Arvada 4 r,
Alternate — Don Allard, City of Arvada • a
i w
Michelle Lawrence—Jefferson County
Alternate — Richard Sheehan, Jefferson County
Ex-Officio Directors
Joe Jehn—Colorado Transportation Commission
Alternate — Peggy Catlin, Colorado Department of •
Transportation
Mary Blue—Regional Transportation District
Alternate—Wally Pulliam, Regional Transportation
District
Joel Rosenstein—Interlocken Consolidated Metropolitan
District
Authority Senior Staff Authority Core Consulting Team
Stephen D. Hogan—Executive Director Norman Lovejoy—Consulting Engineer
Richard Bauman Chief Engineer Ed Icenogle—General Counsel
Steven Bobrick— Business Manager Erin Smith— Lead Right-of-Way Counsel
Benton Tempas—IT Director Mark May—Right-of-Way Counsel
Pamela Bailey Campbell-Chief Financial Officer Mark Shotkoski— Project Oversight Engineering
(Carter& Burgess,Inc.) Firm Manager
Fred Niehaus—Public and Governmental
Relations
Carolyn McIntosh —Special Governmental Counsel
Howard Kenison—Special Environment Counsel
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Northwest Parkway Public Highway Authority
3701 Northwest Parkway
Broomfield, CO 80020
NW
Telephone: 303-533-1200
fax: 303-404-3049
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