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The Northwest Parkway NW
Disclosure Document
2005
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�- For the period ending 06/30/05 $a
PARKWAY
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inm TM TRANSMITTAL MEMORANDUM
Northwest Parkway
Public Highway Authority
3701 Northwest Parkway, Broomfield, Colorado 80020
jill@nwokV.orq
Phone: 303-533-1200 Fox: 303-404-3049
PARKWAY
TO: NWP Investors
FROM: Jill Lamoureux
CC:
DATE: Friday, July 28, 2005
SUBJECT: Northwest Parkway Bond Disclosure Document
Enclosed is the bond disclosure document for the 2nd Quarter of 2005. The PDF
file con also be found on the Investor's section of our website (www.nwoku.orq).
Please feel free to contact me if you hove any questions or concerns.
TABLE OF CONTENTS
OVERVIEW 1
CONSTRUCTION OF THE NORTHWEST PARKWAY 1
I
SHERIDAN INTERCHANGE 2
PROJECT FINANCIAL HIGHLIGHTS 3
INVESTMENTS 4
BUDGET 4
BOND FINANCING 4
THE PEOPLE BEHIND THE PROJECT 5
W Northwest Parkway Public Highway Authority
3701 Northwest Parkway
' Broomfield, Colorado 80020
Telephone: 303-533-1200
Fax: 303-404-3049
PARKWAY www.nwpky.org
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- rado joint venture of Kiewit Western Co. and Washing-
thorit thority is responsible for the financing, construction and
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. Current construction work Under the Design-Build Contract, the Authority was re-
ncludes completion of an Interchange and maintenance quired to deliver on the contract schedule approximately
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 ing 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
R
board meeting and the project completion date is sched-
SHERIDAN INTERCHANGE uled for November 2005. Work this quarter included com-
pletion of the building foundations and the placement of
Site Selection slabs for the off ice and garage buildings.
The original Authority plan included construction of an
interchange at Sheridan Boulevard no later than 2010.
Current development activities in that vicinity indicated
that it would be beneficial to Authority revenue&to
open the interchange as soon as possible. Due to the ' r
fact that the majority of the Construction Contingency -
funds were not used from the Original Design-Build
Contract and associated mobilization costs, it is possi- __
ble to complete the construction of the interchange y
and still have a Contingency Fund balance.
A critical path item to the construction of the Sheridan — -------r % 1.60.----7-,
1
Interchange is to move the current temporary mainte- -� ' — ��
nance facility. This is due to the fact that the tempo- — =t`�
rary maintenance facility now sits in the middle of the
proposed west bound on-ramp from Sheridan to the Interchange Status
Parkway. In 2004, the Authority executed a contract with Carter Bur-
gess The City and County of Broomfield is requiring the Au- (CB) for design review and construction maintenance
thority to construct a permanent maintenance facility on the Sheridan Interchange project. Design of the Sheri-
rather than moving the temporary facility. The Author- dan Interchange is 100% complete.
ity has determined that the best site for the mainte- The Sheridan Interchange project will be constructed as a
I nance facility is east of the Sheridan Interchange loca- design, bid, build project. The Authority selected SEMA as
tion on land currently owned by the Pulte Corporation. the general contractor in February 2005. The contractor
tans to have the interchange open to traffic by January
As part of its Preble Creek development plan, the p p
Pulte Corporation wanted to obtain land to hold for ing 2006 contingent df ramps on from the h. The wpray toct Sherconsidans ,
, on-build-
ng on and off from Parkway to Sheridan, con-
, permanent open space. The Authority owned land struction of two unmanned.toll booths with coin machines
acquired for the purpose of holding for open space. and automated Express Toll collection capability, inter-
The Authority has traded parcels of land with Pulte. change lighting, and interchange landscaping. In addition,
There was no monetary consideration involved in this a change order has been executed with NPC to provide
transaction. The trade allowed the Authority to gain concrete slab approach ramps. The construction budget
approval from Broomfield for construction of the per- for the interchange including the toll collection system in-
manent maintenance site, and begin construction on stallation is approximately$5,200,000 which is available
both the site and the Sheridan Interchange. Comple- from remaining contingency funds.
tion of the maintenance site is scheduled for Novem-
ber 2005. Completion of the Sheridan Interchange is During this quarter, construction work on the interchange
scheduled for January 2006. Both schedules are included shoulder closures at the eastbound and west-
, weather dependent. bound ramp tie-ins, ramp embankment and utilities place-
ment, and toll booth construction.
Maintenance Facility Status
In August 2004, the Authority entered a contract with Operations Report
Eidos Architects, LLC to design a maintenance facil- EXpressToll is the Denver area branding for the trans-
ity. The preliminary design work is 95% complete. ponder system that allows non-stop use of the toll roads.
The building is being designed to meet strict aesthetic These transponders are functional on both the Northwest
criteria from the City and County of Broomfield. The Parkway and the E-470 toll road.
project will consist of covered parking for six snow
plows, a 1,500 sq. ft. office, a 1,000 sq. ft. storage In this quarter, 155 transponders were issued for new EX-
area, a fuel island for diesel and gasoline, storage pressToll accounts opened at the Parkway's mainline Toll
tanks for anti-ice chemicals, covered storage for salt Plaza. A total of 10,026 new EXpressToll accounts were
and sand, and a separate building for vehicle mainte- opened in this period through the EXpressToll website,
nance. The construction budget for the maintenance service centers and area retail outlets. Due to interopera-
facility is $1,420,000 which will be paid from available bility agreements between the Authority and the E-470
contingency funds. The Authority recommended and Public Highway Authority (E-470), the Authority benefits
received approval to contract with Pirnack Walters as from the entire EXpressToll customer base of over
the design/build contractor at the November 2004 182,300.
2
The Authority, through an Intergovernmental Agreement Total transactions for April 2005 were 287,589. Average daily
(IGA)with E-470, has contracted with Mile High Toll Ser- transactions (ADT)for April were 9,586, a .6% increase from
vices (MHTS) to provide toll operations for the Parkway. March traffic. Total transactions in May were 312,953,with an
MHTS is a division of Parsons Brinckerhoff. The IGA ADT of 10,095 which is a 5.3% increase over April. Total trans-
actions for June were 320,187 with an ADT of 10.673 which is a
also provides for the Authority to utilize the back office
o erations of E-470 for EXpressToll processing and cus- main 5.7no increase over averaging May. Year-over-year this transaction 00 . re-
p p strong 42/o compared to point in 2004.
tomer service functions.
Operations of the Parkway are continuing smoothly as
traffic steadily increases. Detailed auditing has shown Monthly Transactions
that MHTS continues to perform within industry stan-
dards. The EXpressToll transactions that are handled by 400,000
the E-470 customer service center are exchanged on a 300,000
nightly basis and payments are regularly audited by Au- 200,000 ■fo! I ` ' '
thority staff. The violation system continues to operate 100,000 ' i C '
effectively. r '
fM 2004
The Authority has entered into a three-year contract for LL zoos
roadside, roadway and facilities maintenance with Ameri- 2
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-
ceeded as scheduled. PROJECT FINANCIAL HIGHLIGHTS
Project Warranty ended on February 28, 2005, one year
after substantial completion was reached on February 28, Original Capital Budget
2004A portion of warranty items were completed by The total capital budget for the Northwest Parkway at financial
2004.
. Warranty period ending date. Other p items that closing was set at$242,637,528, excluding contingency funds.
require moderate weather conditions were transferred to After capital alibu for all $246,330,230 3 0 excluding throud June 30, 200n the
total budget is the remaining
a new Warranty Deferred List that was completed by contingency fund budget. The amount of expenditures through
June 15, 2005. June 30, 2005 total $235,410,392. The payments to NPC for
approved work included in that total are$191,615,337 repre-
Law enforcement and incident management on the Park- senting 100% of the contract.
way is handled by the City of Broomfield Police Depart- •
ment through an IGA with the Authority. Both the police The original Contract Amount of the Design-Build Contract was
and the North Metro Fire District (NMFD) respond to any $187,637,528. Change orders approved through June 30,2005
occurrences as needed and continue to meet the Author- increased that amount to$191,615,337. There were eighty-one
ity's requests and requirements. The NMFD has broken contract changes authorized, with a total cost impact of
ground on a new fire station along the Parkway which is $3,977,809. However, six change orders, in the amount of
scheduled to be completed December 2005. $1,269,788,were funded by third parties. In addition, one
change order was funded as a transfer from the Northwest
Parkway Right-of-Way budget in the amount$285,107. There
also was an adjustment for actual waterline costs incurred.
Traffic Summary
Toll collections for both cash and EXpress Toll customers Sheridan Interchange Budget
began on January 1, 2004, after a system testing and The budget allocated to the Sheridan Interchange is$7,625,000
marketing period following the opening. During this pe- which was transferred from the Contingency Budget. The allo-
riod no tolls were initially assessed and then a period fol- cated budget includes funds for design, construction and toll
lowed during which tolls were charged only to cash cus- system implementation for the interchange and maintenance
tomers as an incentive for users to purchase EXpress facility. Also included in the budget is a change order to the
Toll privileges. Design-Build Contract in the amount of$86,782 for the concrete
slab approach ramps at the Sheridan Interchange.
During the first full year of roadway operations, traffic lev-
els and toll revenues were significantly below initial pro- Contingency Fund Status
jections. The Authority attributes these results to the eco- The original allocated budget for Contingency was$18,763,753,
c-
nomic downturn experienced in the state over the past including expected interest earningsovernal the life igof -Build
con-
several years and the resulting delay of development trac Approved$3, ,809. orders r,o the after adjusting djust D for irdilp tract total $3,977,809. However, for third party
within the corridor. The development activities in the cor- funded change orders and a transfer from the Right-of-Way
ridor have increased in 2005, and the Authority antici- budget,the net charge against the original contingency fund is
pates that traffic levels and toll revenues will improve as currently$2,422,914,which adjusts the allocated budget
development and natural ramp up occurs. The Authority amount to $16,340,839. The Authority has also transferred
does not expect, however, that the initial revenue projec- $3,807,601 for start-up and mobilization costs and plans to
tions will be achieved in the short term. transfer an additional $7,625,000 for the Sheridan Interchange
and maintenance facility project. The remaining unallocated
Contingency Budget is$4,908,238. 3
INVESTMENTS BOND FINANCING
• Construction Fund Bond Financing
(a) At the time of closing,$245,114,354 was invested in two The Northwest Parkway Public Highway Authority issued approxi-
mately $364 million of insured Senior Bonds and approximately $52
separate Investment Agreements with Trinity Funding•
Company,which submitted the successful bid. One ac- million of Subordinate Bonds in June 2001 to fund the construction of
count has closed and the remaining balance was trans- the Northwest Parkway toll road project. The underwriters were
ferred to COLOTRUST,while the second account willl- George K Baum & Company and Bear, Stearns & Co. Inc. PBCon-
remain with Trinity Funding until December 2007. suit Inc. was the financial consultant and provided the chief financial
officer for the Authority. A.G. Edwards&Sons, Inc. was the financial
(b) Bond proceeds in the Construction Fund which were not advisor. Vollmer Associates conducted the traffic and revenue study
invested in that Investment Agreement are invested by with PB Consult Inc. providing the economic/land use inputs for the
the Trustee in either a Wells Fargo money market fund or study.
the AAA Colorado Local Government Liquid Asset Trust.
The Senior Bonds received bond insurance from both Ambac and
Debt Service Reserve Fund FSA resulting in a positive reception of Northwest Parkway Authority
$36,161,406.28 of the Senior Bond proceeds were invested for bonds in the market. The financing plan received investment grade
the Senior Debt Service Reserve Fund in a Debt Service Re- underlying ratings from all three rating agencies: Standard & Poor's
serve Forward Delivery Agreement with Bayerische Hypo— and and Fitch rated the Senior Bonds BBB— and Moody's Investors Ser-
i Vereinsbank AG, New York Branch, who was the successful vice rated them Baa3. The Subordinate Bonds received Moody's Bat
bidder. rating and a BB-plus from Standard& Poor's.
Capitalized Interest Fund Fitch and Moody's have both affirmed their underlying ratings for the
The capitalized interest amount from the bond proceeds of Senior and Subordinate Bonds and have issued negative outlooks.
$43,047,440.50 was invested in an Investment Agreement with To-date no review has been undertaken by Standard and Poor's.
AIG Matched Funding Corp. This Investment Agreement is Please refer to the individual rating agencies for further information.
expected to provide returns which,when combined with interest
flowing from the Debt Service Reserve,will provide the neces- The Source and Uses for the Northwest Parkway Bond issue are
sary interest payments through the capitalized interest period. estimated as follows:
Sources of Funds:
2005 BUDGET
Series 2001A Bonds $175,720,000
The Authority adopted the 2005 budget on No- (Current Interest)
vember 23, 2004. Upon completion of the 2004 Series 2001B 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
the Northwest Parkway Authority Board of Direc-
tors (Convertible Capital Appreciation)
at the May 24, 2005 meeting. Series 2001D Bonds 52,465,000
(First Tier Subordinate)
REVENUES Colorado Department of Transportation 723,000
Investment Income '$3,800,000 Net Original Issue Discount (4,025,562)
Toll Revenue 10,414,000
Miscellaneous Income 5,000 TOTAL SOURCES $413,119,510
TOTAL REVENUES $14,219,000 Uses of Funds:
Design-Build Contract Price $179,819,232
(net of interest earnings)
EXPENDITURES Other Costs of the Project(1) 104,738,219
Capital $ 34 242 967 Capitalized Interest 2001A, 2001D 43,047,440
Debt-Related 58,051,783 Debt Service Reserve Accounts 41,239,651
Operating Expenses 3,861,843
Administrative Expenses 775,000 Cost of Issuance/Underwriters Discount 26,617,107
Personnel Expenses 960,668 Project Contingency 17,657,861
Professional Services 530,901 (available for Project Costs)
Furniture& Fixtures 50,000
Contingency 25,000 TOTAL USES $413,119,510
TOTAL EXPENDITURES $98 498162 (1)Includes right-of-way acquisitions,project oversight engineering services.admin-
e > istrative costs,and amounts due under certain reimbursement agreements. 4
I
I
PEOPLE BEHIND
THE PROJECT
Board of Directors " -74-4,444t."-
"` "' 4
Chris Berry, City of Lafayette
Vice-Chairman of the Board
Alternate— Kerry Bensman
Karen Stuart, City and County of Broomfield - _ . '
Chairman of the Board _ -
Alternate—Walt Spader
Glenn Vaad, Weld County
Secretary/Treasurer of the Board
Alternate— Robert Masden ..
i
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Associate Members r
Lorraine Anderson, City of Arvada ''` " 4w'
Alternate — Don Allard •
Jefferson County
Ex-Officio Directors
Joe Jehn, Colorado Transportation Commission - '
•
Alternate — Peggy Catlin, Colorado Department of • • 'C'
Transportation ! .rte
Wallace Pulliam, Regional Transportation District !~
Alternate—Lee Kemp
Joel Rosenstein, Interlocken Consolidated Metropolitan
District
Alternate — Gwen Anderson
Authority Senior Staff Authority Core Consulting Team
Stephen D. Hogan—Executive Director
Richard Bauman—Chief Engineer Norman Lovejoy— Consulting Engineer
Steven Bobrick—Business Manager Ed Icenogle— General Counsel
Benton Tempas—IT Director Erin Smith — Lead Right-of-Way Counsel
Pamela Bailey Campbell—Chief Financial Officer Mark May— Right-of-Way Counsel
(Carter& Burgess, Inc.) Mark Shotkoski — Project Oversight Engineering
Firm Manager
Mary Brown— Public and Governmental Relations
Carolyn McIntosh —Special Governmental Counsel
Howard Kenison —Special Environment Counsel
5
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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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