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Northwest Parkway Public Highway Authority
Construction Update
J� For the Period Ending 3/31/04
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C?.vst=x/t As-cr1C',¢ 2004-1498
OVERVIEW 1
Northwest Parkway Public Highway Authority, Project Description,
Plan of Finance,
PROJECT PROGRESS SUMMARY 1-2
ROW, Design/Build Contractor, Schedule Status, Design, Geotechnical, Permits
& Clearances, Construction
PROJECT FINANCIAL HIGHLIGHTS 3
Overall Financial Status, Capital Budget, Change Order Status, Contingency
Fund Status
INVESTMENTS, BUDGET 3-4
BOND FINANCING 4
THE PEOPLE BEHIND THE PROJECT 5
NWP Board of Directors, Senior Staff, Core Consulting Group
MAP BACK COVER
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
TM TRAA$AUTTAt MEMORAADUAI
Aorthwert Parkway
Public Highway Authority
3701 florlhwer!Parkway. Broomfield.Colorado 80020
iill@nwpky.org
Phone: 305-535-1200 Com: 503.1043049
TO: NWP Investors
FROM: Jill Lamoureux
CC:
DATE: Friday, May 14, 2004
SUBJECT: Northwest Parkway Bond Disclosure Document
Enclosed is the bond disclosure document for the 1st
Quarter of 2004 . 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 .
oVERVIETV PROJECT
PROGRESS
The Northwest Parkway Public Highway
Authority AS 1...11/711A
17
The Northwest Parkway Public Highway Authority is a politi-
cal subdivision of the State of Colorado established in June
1999 with all the powers, duties and privileges provided by
the Public Highway Authority Law. The Board of Directors of ROW
the Authority is currently composed of one elected official The right-of-way budget includes the estimated costs for
from each of the City and County of Broomfield,the City of right-of-way acquisition including associated relocation costs.
Lafayette, and Weld County, Colorado. In the 2n°quarter of The Authority delivered on the contract schedule approxi-
2002 the City of Arvada applied to the Board of Directors and mately 564 acres of right-of-way.
was approved for an affiliate membership to the Authority. In
the 4th quarter of 2002 Jefferson County also applied to the Western States Land Services ('WSLS"), under contract to
Board of Directors and was approved for an affiliate member- the Authority, led the effort in right-of-way acquisition. More
ship to the Authority. The Authority is responsible for the than a dozen other contractors specializing in areas such as
financing,construction and operation of the toll highway to be title work,surveying, appraisals and condemnation law sup-
known as the Northwest Parkway. port WSLS in their acquisition efforts. Under the terms of the
Design-Build Contract,the Authority delivered right-of-way to
Project Description the contractor in three phases.
The Northwest Parkway consists of the two-mile Interlocken
Loop from State Highway 128 to Tape Drive(just south of the The Authority has obtained possession of all of the 564 acres
intersection with 96 Street)connecting with the nine-mile of right-of-way it was obligated to deliver under the Design-
limited access toll highway constructed on the northwestern Build Contract. Of this, 452 acres are fee simple takes and
perimeter of the Denver metropolitan area that links the Inter- the remainder is made up by easements.
locken Loop to 1-25.
Phase One of the acquisition extended from 1-25 at the east
The final segment of the E-470 toll road which connects with terminus of the Project to just east of Rock Creek, near the
the Northwest Parkway at 1-25 was completed in the 4s"guar- U.S.287 interchange. The Authority met all of its obligations
ter of 2002, providing access to and from regional employ- under the Design-Build Contract to deliver this right of way by
ment centers and retail centers and facilitating travel from the December 25, 2001.
northwestern metropolitan area to points east and south, in-
cluding Denver International Airport. Phase Two bean just east of Rock Creek and ended just
west of the loe Street grade separation. All of the required
The Northwest Parkway project is expected to benefit from a phase Two right-of-way was delivered within 270 days of con-
barbell effect of two major developments on either end of the tract signing.
project,with the existing Interlocken development on the
southwest and a new 3,000 acre planned and zoned develop- Phase Three began at the end of Phase Two and extended
ment called Preble Creek on the northeast. to the end of the Project on 96'"Street. The Phase Three
right-of-way was delivered successfully by the contract dead-
Plan of Finance line of June 30,2002.
The Northwest Parkway Public Highway Authority Of the purchases which have been finalized or have had
("Authority")closed on project financing in June 2001 and value determination set to date,the overall right-of-way costs
simultaneously gave a notice to proceed to the Design-Build have been under the allocated budget amount. For the ROW
Contractor-Northwest Parkway Constructors("NPC"). The obtained via eminent domain,there remain two parcels that
plan of finance (see further description under"Bond Financ- have not yet received value determinations. Based on the
ing") provides for the funding of construction costs under the information currently available,the Authority expects that
Design-Build Contract and other capital costs, as well as Au- sufficient budgetary resources have been set aside for the
thority administrative and operation/maintenance costs acquisition and court costs for those parcels.
through the construction period,as well as amounts due un-
der certain reim-
bursement agree-
ments. In adds ' •
ton,the plan of • t"
finance provides , 4 .- '.
for debt service ."6i'' ' ri
reserves,capital-
¢ed interest, con I Tie h
tingency funds,
bond insurance 1 ,...t: H, -
ea ri
premiums and I - . .t -
issuance costs.
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1
Design/Build Contractor Operations Report
The Design-Build Contract between the Authority and the The Northwest Parkway opened to traffic on November 24,
Northwest Parkway Constructors, a Colorado joint venture of 2003. As an incentive to new customers, all customers drove
Kiewit Western Co.and Washington Group International, Inc. free until December 8,2004. EXpressToll customers contin-
was executed on June 28,2001. The full notice to proceed ued to drive free through December 31, 2003. EXpressToll is
was issued on June 28,2001 simultaneous with financing the Denver area branding for the transponder system that
closing. The contract provided for the road to open to traffic allows non-stop use of the toll roads.
by December 31, 2003 with revenue collection to begin on
the Project Guaranteed Substantial Completion date of Feb- In this quarter at the Authority mainline Toll Plaza over 997
ruary 29, 2004. The road opening was achieved on Novem- customers applied for EXpressToll accounts. A total of
ber 24,2003 and revenue collection began on December 8, 11,946 new EXpressToll accounts were opened this period
2003. The final acceptance of all items included in the project through the EXpressToll website,service centers and area
is scheduled to be completed by the Project Guaranteed Final retail outlets. Because the Authority was able to take advan-
Acceptance of June 1, 2004. tage of their existing customer base of over 117,000, all EX-
pressToll tags are functional on both the Northwest Parkway
Schedule Status and E-470.
As of the reporting period ending March 31, 2004 the con- The Authority through an Intergovernmental Agreement with
struction contract is 99%complete(based on approved E-470 Public Highway Authority has contracted with Mile High
work). The overall completion milestones for the project re- Toll Services (MHTS)to perform operation services for the
main on schedule. The civil design work is 100%complete. Parkway including manual toll collection and violation proc-
essing. MHTS is a division of Parsons Brinckerhoff.
The work has been conducted in four Sections. Section One
extends from the connection with E-470 east of I-25 to Huron The Operations of the Parkway continue to enhance as each
Street, Section Two extends from Huron Street west to 120th month progresses. Key activities during ramp-up have in-
St., Section Three extends from 120"west to 104'"and Sec- p g p p
104th cluded finalizing policies and procedures for elements includ-
tion Four extends from southwest to US 36. ing,the manual toll collection process and detailed auditing of
and Section Four extends from 104t southwest to US 36. the same.The EXpressToll transactions are processed by E-
470 customer service center. Detailed data files are ex-
Design changed electronically transferring transactions to E-470 and
During this period, NPC completed all design work. EXpressToll status files to the Parkway.All of these transac-
tions are verified and audited as well.
Geotechnical/Permits & The Authority has entered into a three-year contract for road-
Clearances/Utilities side, roadway and facilities maintenance with American Civil
No permits were applied for or received during this period. Constructors(ACC). ACC handles all snow removal on the
Parkway and operates the Parkway's Courtesy Patrol as well.
Construction
The right of way fencing was completed in January. Law enforcement and incident management on the Parkway
Work on the substantial completion punch list items con- is handled by the City of Broomfield Police Department
through an Intergovernmental Agreement with the Authority.
tinued throughout the period. Both the Broomfield Police and the Metro North Fire District
have responded to any occurrences as
needed. Both have done an excellent
job of meeting the Parkways requests
and requirements.
TRAFFIC SUMMARY
Toll collection for cash customers be-
gan on December 9,2003 and on Janu-
ary 1,2004 for ETC customers. Total
.I. transactions in January were 176,760.
Average daily transactions(ADT)for
January were 5,702. Total transactions
in February were 173,986,with an ADT
of 6,000 which is a 5%increase from
January. Total transactions for March
" ,, were O4,782 with an ADT of 6,606
�—..a which is a 10%increase from
r 1'I` *^I t February.
I Ss I•
`
2
11) eliminated construction scope for Rock Creek;
PRO/)�)< *'E"-v r7` 12) Class 2 backfill material; 13) remediation of hazardous
f s(�. L waste at Dillon Road; 14)plug and abandon CDOT monitor-
ing wells; 15)irrigation crossing for Patina Lease Road; 16)
J'i I,\iT 4 A'( L remediation of petroleum stained soils at US 287 and Dillon
Road; 17)design costs for Pulte Homes utility sleeves; 18)
H1161/16H
7 r c s construction costs for Pulte Homes utility sleeves; 19)City of
I l X rs L[�J[� � Lafayette utility sleeves; 20)Toll Plaza canopies; 21) relocate
160th Avenue bridge Variable Messaging Sign; 22)application
Overall Financial Status of graffiti proof sealant to MSE walls; 23)access road from
The total capital budget for the Northwest Parkway was origi- Lowell Blvd.to Toll Plaza;24)water line sleeves; 25) reme-
nally$242,637,528, excluding contingency funds. After adjust- diction for environmental issues at 96 St.; 26)additional
ing for all change orders through March 31,2004 the total capi- video cameras, road signage and paving work;27)enhance-
tal budget is$244,992,541 excluding the contingency fund ment to UG conduit;28)credit for non-conforming concrete
budget.That amount includes the Design-Build Contract cover- work; 29)Woods access road;30)cancellation of trans-
ing all construction; a contract with E-470 for early I-25 inter- ponder order; 31)additional mapping work; 32)telephone
change design; Program Management costs including con- system enhancement;33) access road for maintenance yard;
struction oversight and all right-of-way acquisition activities. 34)fossil display for the Toll Plaza; 35)additional mile marker
The amount of expenditures through March 31,2004 total sign posts;36)soil enhancement at the Toll Plaza; 37)demo-
$231,152,864. The payments to NPC included in that total are lition of vacant property on right-of-way; 38) installation of
$191,603,557. radio equipment;39) installation of water line to Toll Plaza;
40)additional wiring for phone system; 41)plug and abandon
two additional CDOT wells;42) additional ramp traffic signals;
43) radio equipment for Broomfield;44)expand existing
Capital Budget
The original Contract Amount of the Design-Build Contract was crossovers;45)asphalt overlay at Dillon Rd. ramp; 46)equip-
The Change t through Conch c1, ment purchase for maintenance facility; 47) additional Toll
2004 1 , 28.inc han that ordersamo approvednt to 1 arch There have Plaza signage; 48) road opening traffic control; 49)additional
ad-
been seventy-seven contract changes authorized,with a total droadway signage; 50) drainage co enhancements; 51)reimburse-
cost impact of$3,978,421. However, six change orders, in the meat in interchange ief signage;i 52)contractor 53) tolladditional ide
amount of$1,338,301, have been funded by Pulte Homes Cor-
signage,lieu of early opening incentive; 53) bridge
poration,the City of Lafayette,the City and County of Broom-
field signage, and 54)Toll Plaza water treatment system.
and the Colorado Department of Transportation. In addi-
tion one change order was funded as a transfer from the North- The net change orders approved as of March 31,2004,2003
west Parkway Right-of-Way budget in the amount$285,107. total$3,978,421. Pulte Homes Corporation financed items 17
Therefore,the net impact on the contingency funds through and 18 with a check in the amount of$608,973. Funds are
March 31,2004 is a transfer of$2,355,013. Ten of the change also being provided by the City of Lafayette for item 19 in the
orders were technical no cost changes and eleven were for amount of$177,196 and by the City and County of Broom-
allowances already provided for in the Design-Build Contract. field for item 39 in the amount of$465,647.The Colorado
This contract amount covers all costs associated with the de- Department of Transportation funded item 21 with a check in
sign and construction of the Northwest Parkway including such the amount of$86,485. $285,107 for item 11 was funded by
activities as: design, paving,interchange and crossing struc- transfer from Northwest Parkway Right-of-Way budget for
tures, landscaping,communications,toll plazas and operations work done by Boulder County to Rock Creek in the Right-of-
facilities,and toll collection system. The total value of ap- Way alignment.
proved work earned through March 31,2004 is$191,603,557
or 99%of the contract. In accordance with Colorado State law, Contingency Fund Status
the 10% retainage on the first 50%of the contract is being held
by the Authority in securities in lieu of retainage. The allocated budget for Contingency is$18,763,753, includ-
ing expected interest earnings over the life of construction.
Change Order Status Approved change orders total$3,978,421. However, after
adjusting for third party funded change orders and a transfer
Seventy-seven change orders have been approved to date.
Ten of these were technical,no cost changes to the contract from the Right-of-Way budget,the net charge against the
criteria. Two change order were credits for a original contingency fund is currently$2,355,013,which ad-
performanceglobal settlement on oil and gas facilities and for field office justs the allocated budget amount to$16,408,740.
maintenance. Eleven change orders were also no cost
changes that replaced allowances in the Design-Build Con-
tract. The remaining fifty-four change orders include:
1)a global change with the contractor for Toll Plaza improve- ,i ., Ns s f
ments,credits for concrete box culverts,pavings changes,
elimination of bridge lugs and pier shape changes;
2) removal of lead paint;3)404 permit for Rock Creek;4)engi- Construction Fund
neering definition for the Neumann Flood Plain;5)engineering (a) At the time of closing,$245,114,354 was invested in an
definition for a gas and oil road crossing; 6)a credit for de- Investment Agreement with Trinity Funding Company,which
creasing the thickness of base course for asphalt paving;7) submitted the successful bid.
increase the size of the concert box culvert at Station 275;8) (b) Bond proceeds in the Construction Fund which were not
initial piping for the De-Icing system;9) MSE walls; 10) ROW invested in that Investment Agreement are invested by the
fencing for Boulder County; Trustee in either a Wells Fargo money market fund or the AAA
Colorado Local Government Liquid Asset Trust.
3
r
Debt Service Reserve Fund
(a)$36, ,406.28 of the Senior Bond proceeds were in-
161 o " J ) Ti V .4 'V( 1 J iii f
vested for the Senior Debt Service Reserve Fund in a Debt BON if L ! i �6 i .E
Service Reserve Forward Delivery Agreement with Bay-
erische Hypo-and Vereinsbank AG, New York Branch,which
was the successful bidder. The Northwest Parkway Public Highway Authority issued
approximately$364 Million of insured Senior Bonds and
(b)$5,078,244.75 of the First Tier Subordinate Lien Bonds approximately$52 Million of Subordinate Bonds in June 2001
proceeds were used to enter into a Reserve Fund Agreement to fund the co-
nstruction of the Northwest Parkway toll road
for the First Tier Subordinate Debt Service Reserve Fund with project. The Underwriters were George K. Baum&Company
Lehman Brothers Special Financing Inc.which was the suc- and Bear, Stearns&Co. Inc. PB Consult Inc.was the
cessful bidder. financial consultant and provided the chief financial officer for
the Authority. A.G. Edwards&Sons, Inc.was the financial
Capitalized Interest Fund advisor. Vollmer Associates conducted the traffic and
p revenue study with PB Consult Inc. Providing the economic/
The capitalized interest amount from the bond proceeds of land use inputs for the study.
$43,047,440.50 was invested in an Investment Agreement
with AIG Matched Funding Corp. This Investment Agreement The Senior Bonds received bond insurance from both Ambac
is expected to provide returns which,when combined with and FSA resulting in a positive reception of Northwest
interest flowing from the Debt Service Reserve, will provide Parkway Authority bonds in the market. The financing plan
the necessary interest payments through the capitalized inter- received investment grade underlying ratings from all three
est period. rating agencies: Standard& Poor's and Fitch rated the
Senior Bonds BBB—and Moody's Investors Service rating
them a Baa3. The Subordinate Bonds received Moody's Bat
ll
rating and a BB-plus from Standard& Poor's.
The Sources and Uses for the Northwest Parkway Bond
' ebudge bewail
ew ' ssue are estimated as follows:
2003. uP� G' SOURCES OF FUNDS:
will beheld Straw budget'etch htludes all : '
caitg forward for l it items will be adopted by Series 2001 A Bonds $175,720,000
the N9elhvr�at}sotkalu �Boetd (Current Interest)
_____,..-713,-f.5-',.:',4-'-7. Series 20018 Bonds 79,865,792
(Capital Appreciation)
z' s ,06000
Series2001CBonds 108,371,280
Tog Rmr�we m$ 7 ,3 i7QQ .
(Convertible Capital Appreciation)
Series 2001 D Bonds 52,465,000
�' r^.,u (First Tier Subordinate)
"%` ` `"'�- `' ' . ' ,£x Colorado Department of Transportation 723,000
Net Original Issue Discount (4,025,562)
r= TOTAL SOURCES $413,119,510
PszYsssk ('' " .T,+ r 1 •r n
ti, :*y = s°'` USES OF FUNDS:
.r`
' 44
P. '' r9 4 Design-Build Contract Price $179,819,232
y l l (net of interest earnings)
't` " ` ' :' -rQ. fsl ��' Other Costs of the Project(1) 104,738,219
Capitalized Interest 2001 A,2001 D 43,047,440
tMlgpMll�lUMRI * ' � 1Sd71
r,yim * Debt Service Reserve Accounts 41,239,651
s-o-s�c t; 'Fx bx `s D� 'ter
x r i :4 ew Cost of Issuance/Unde writers Discount 26,617,107
: f ' Project Contingency 17,657,861
L = _, (available for Projei;el
ect Cost)
' certain at 'coveted from bon TOTAL USES $413,119,510
Y,.i nfn�
'- 'm�. _ � (1) Includes right-ot-way acquisition, project oversight engineering
services, administrative costs, and amounts due under
reimbursement agreements.
4
THE PE PLi a1 , TI_.)
THE /RolfCI
Board of Directors Authority Senior Staff
Glenn Vaad, Weld County- Chairman of the Board Stephen D. Hogan—Executive Director
Alternate— Robert Masden, Weld County Richard Bauman—Chief Engineer
Steven Bobrick—Business Manager
Karen Stuart, City and County of Broomfield—Vice- Benton Tempas—IT Director
Chairman of the Board Pamela Bailey Campbell—Chief Financial Officer
Alternate—Walt Spader, City and County of (Carter&Burgess, Inc.)
Broomfield
Authority Core Consulting Team
Chris Berry, City of Lafayette- Secretary/Treasurer
of the Board
Alternate—Kerry Bensman, City of Lafayette Norman Lovejoy—Consulting Engineer
Ed Icenogle—General Counsel
Erin Smith—Lead Right-of-Way Counsel
Associate Members Mark May—Right-of-Way Counsel
Mark Shotkoski—Project Oversight Engineering Firm
Manager
Lorraine Andersen—City of Arvada Fred Niehaus—Public and Governmental Relations
Alternate—Don Allard, City of Arvada Carolyn McIntosh—Special Governmental Counsel
Howard Kenison—Special Environment Counsel
Michelle Lawrence—Jefferson County
Alternate—Richard Sheehan,Jefferson County
Ex-Officio Directors
Joe Jehn—Colorado Transportation Commission
1 Alternate—Tom Norton, Colorado Department of
Transportation
Mary Blue—Regional Transportation District
Alternate—Wally Pulliam,
Regional Transportation District
Joel Rosenstein—Interlocken Consolidated
Metropolitan District
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Northwest Parkway Public Highway Authority
3701 Northwest Parkway
Broomfield, CO 80020
Telephone: 303-533-1200
Fax: 303-404-3049
www.nwpky.org
info@nwpky.org
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