HomeMy WebLinkAbout20042568 TM TRAAUflITTAl MEAIORAADUAI
northwest Parkway
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Public Highway Authority
5701 BoAhweA Parkway. Broomfield. Colorado 00020
fill@nwpku.orq
Phone: 505.555-1200 fox: 505.9045049
TO: NWP Investors
FROM: Jill Lamoureux
CC:
DATE: Tuesday, August 17 , 2004
SUBJECT: Northwest Parkway Bond Disclosure Document
Enclosed is the bond disclosure document for the 2nd
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 .
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Northwest Pctrkwciy
Disclosure Document
2' 004
For Period Ending 6/ 30 / 04
TABLE OF CONTENTS
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
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
nwpky.org
h
OVERVIEW PROJECT PROGRESS SUMMARY
The Northwest Parkway
Public Highway Authority ROW
The Northwest Parkway Public Highway Authority is a politi- The right-of-way budget includes the estimated costs for
cal subdivision of the State of Colorado established in June right-of-way acquisition including associated relocation
1999 with all the powers, duties and privileges provided by costs. The Authority was required to deliver on the con-
the Public Highway Authority Law. The Board of Directors of tract schedule approximately 564 acres of right-of-way.
the Authority is currently composed of one elected official
from each of the City and County of Broomfield, the City of Western States Land Services ("WSLS"), under contract
Lafayette,2002theand of Arvada
da applied
Colorado. In the 2nd quarter of to the Authority, led the effort in right-of-way acquisition.
was the CityforArvada appi membershipto the toof the DeAuthctors and More than a dozen other contractors specializing in ar-
In the approved an affiliate f to Authority. eas such as title work, surveying, appraisals and con-
the In 4th quarter of 2002 Jefferson County also applied to
Board of Directors and was approved for an affiliate mem- demnation law supported WSLS in their acquisition ef-
bership to the Authority. The Authority is responsible for forts. Under the terms of the Design-Build Contract,
the financing, construction and operation of the toll high- the Authority was obligated to deliver right-of-way to the
way known as the Northwest Parkway. contractor in three phases.
Project Description The Authority has obtained possession of all of the 564
The Northwest Parkway consists of the two-mile Interlocken acres of right-of-way it is obligated to deliver under the
Loop from State Highway 128 to Tape Drive (just south of the Design-Build Contract. Of this, 452 acres are fee simple
intersection with 96th Street) connecting with the nine-mile takes and the remainder is made up by easements.
limited access toll highway constructed on the northwestern!;
perimeter of the Denver metropolitan area that links the Phase One of the acquisition extended from 1-25 at the
j Interlocken Loop to 1-25. east terminus of the Project to just east of Rock Creek,
near the U.S. 287 interchange. The Authority met all of
The final segment of the E-470 toll road which connects with its obligations under the Design-Build Contract to deliver
the Northwest Parkway at 1-25 was completed in the 4th this right-of-way by December 25, 2001.
j quarter of 2002, providing access to and from regional em-
ployment centers and retail centers and facilitating travel from Phase Two began just east of Rock Creek and ended
the northwestern metropolitan area to points east and south, just west of the 104th Street grade separation. Phase
including Denver International Airport. Two right-of-way was delivered within 270 days of con-
tract signing with the exception of one parcel relating
The Northwest Parkway project is expected to benefit from directly to utility relocations, which was ultimately de-
barbell effect of two major developments on either end of the termined not to be required.
project, with the existing Interlocken development on the
new 3 000 acre planned and zoned
and a southwest of Phase Two and
development called Preble Creek on the northeast. Phase Three began at the end
ex-
tended to the end of the Project on 96th Street. The
Plan of Finance Phase Three right-of-way was delivered successfully
The Northwest Parkway Public Highway Authority by the contract deadline of June 30, 2002.
("Authority") closed on project financing in June 2001 and Of thepurchases which been finalized have had
simultaneously gave a notice to proceed to the Design-Build valued sion set haveto date, the overall or right-of-way
had
Contractor—Northwest Parkway Constructors ("NPC"). The
plan of finance (see further description under "Bond Financ- costs have been under the allocated budget amount.
ing") provides for the funding of construction costs under the For the ROW obtained via eminent domain, there re-
Design-Build Contract and other capital costs, as well as Au- mains one parcel that has not yet received a value de-
thority administrative and operation/maintenance costs termination. Based on the information currently avail-
through the construction period, as well as amounts due un- able, the Authority expects that sufficient budgetary 1
der certain reimbursement agreements. In addition, the plan resources have been set aside for the acquisition and
of finance provides for debt service reserves, capitalized court costs for that parcel.
interest, contingency funds, bond insurance premiums and
h issuance costs.
.\r : orls. ,41 _
II
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I
6 _
j Design/Build Contractor Operations Report
The Design-Build Contract between the Authority and The Northwest Parkway opened to traffic on November
the Northwest Parkway Constructors, a Colorado joint 24, 2003. As an incentive to new customers, all custom-
venture of Kiewit Western Co. and Washington Group ers drove free until December 8, 2004. EXpressToll
International, Inc. was executed on June 28, 2001, si- customers continued to drive free through December 31,
multaneous with financing closing. The contract pro- 2003. EXpressToll is the Denver area branding for the
vided for the road to open to traffic by December 31, transponder system that allows non-stop use of the toll
2003, with revenue collection to begin on the_Project roads. The main points of transponder distribution are
Guaranteed Substantial Completion date of February via the existing E-470 distribution system.
29, 2004. The road opening was achieved on Novem-
In this quarter at the Parkway's mainline Toll Plaza, 346
ber 24, 2003, and revenue collection began on Decem-
ber 8, 2003. The final acceptance of all items included customers applied for EXpressToll accounts. A total of
12,229 new EXpressToll accounts were opened this pe-
in the project was scheduled to be completed by the riod through the EXpressToll website, service centers
Project Guaranteed Final Acceptance of June 1, 2004. and area retail outlets. Because NWP was able to
Actual Guaranteed Final Acceptance was achieved take advantage of their existing customer base of over
June 29, 2004. 142,067, all EXpressToll tags are functional on both the
Northwest Parkway and E-470.
Schedule Status
As of the reporting period ending June 30, 2004, the The Authority, through an Intergovernmental Agreement
construction contract is 100% complete (based on NPC with E-470 Public Highway Authority, has contracted
approved work). The civil design work is 100% com- with Mile High Toll Services (MHTS) to operate the Park-
plete. way. MHTS is a division of Parsons Brinckerhoff.
The work was conducted in four Sections. Section One The operation of the Parkway is proceeding smoothly.
extends from the connection with E-470 east of 1-25 to The ETC transactions that are handled by the E-470
Huron Street, Section Two extends from Huron Street customer service center are exchanged on a nightly ba-
west to 120th St., Section Three extends from 120th sis. The audit of ETC transactions has continued to
west to 104th and Section Four extends from 104th show few variances. The violation system is currently
southwest to US 36. in place and is running smoothly.
Design The Authority has entered into a three-year contract for
roadside, roadway and facilities maintenance with
All design work was completed in the previous period. American Civil Constructors (ACC). ACC handles all
snow removal on the Parkway and operates the Park-
Geotechnical/Permits & Clearances/Utilities ways' Courtesy Patrol. Maintenance work on the Park-
No permits were applied for or received during this pe- way has proceeded as scheduled. ACC is currently
riod. identifying the most effective location to add additional
living snow fence in preparation for the winter.
Construction
Work on the Substantial Completion punch list items Law enforcement and incident management on the
continued throughout the period and was completed at Parkway is handled by the City of Broomfield Police De-
Final Acceptance. The Authority is currently identifying partment through an Intergovernmental Agreement with
and correcting items that are warranty issues with NPC. the Authority. Both the Broomfield Police and the North
Project Warranty expires one year after Substantial Metro Fire District respond to any occurrences as
Completion which was reached on February 28, 2004. needed. The Fire District has broken ground on a new
facility along the Parkway, which is scheduled to be
The Authority is beginning work on the planning, design completed December 2005.
and construction of a permanent maintenance facility
along with the Sheridan Interchange. A contract for de-
sign review and construction maintenance with Carter Traffic Summary
Burgess will be executed in the next period. Toll collection for cash customers began on Decem-
ber 9, 2003, and on January 1, 2004, for ETC custom-
ers. Total transactions in April were 203,202. Aver-
age daily transactions (ADT) for April were 6,773, a
2.5% increase over March traffic. Total transactions
in May were 216,231, with an ADT of 6,975 which is a
3% increase from April. Total transactions for June
:; were 222,801, with an ADT of 7,427 which is a 6.5%
increase over May.
2
Dillon Road; 14) plug and abandon CDOT monitoring wells; 15)
PROJECT FINANCIAL irrigation crossing for Patina Lease Road; 16) remediation of pe-
HIGHLIGHTS troleum stained soils at US 287 and Dillon Road; 17) design costs
for Pulte Homes utility sleeves; 18) construction costs for Pulte
Homes utility sleeves; 19) City of Lafayette utility sleeves; 20) Toll
Overall Financial Status Plaza canopies; 21) relocate 160th Avenue bridge Variable
The total capital budget for the Northwest Parkway was Messaging Sign; 22) application of graffiti proof sealant to MSE
originally $242,637,528, excluding contingency funds. After walls; 23) access road from Lowell Boulevard to Toll Plaza; 24)
adjusting for all change orders through June 30, 2004, the waterline sleeves; 25) remediation for environmental issues at
total capital budget is $244,991,929 excluding the 96th Street; 26) additional video cameras, road signage and pav-
contingency fund budget. That amount includes the ing work; 27) enhancement to UG conduit; 28) credit for non-
Design-Build Contract covering all construction; a contract conforming concrete work; 29) Woods access road; 30) can-
with E-470 for early 1-25 interchange design; Program cellation of transponder order; 31) additional mapping work; 32)
Management costs including construction oversight and all telephone system enhancement; 33) access road for mainte-
right-of-way acquisition activities. The amount of nance yard; 34) fossil display for the Toll Plaza; 35) additional
expenditures through June 30, 2004, total $229,570,470. mile marker sign posts; 36) soil enhancement at the Toll Plaza;
The payments to NPC included in that total are 37) demolition of vacant property on right-of-way; 38) installation
$191,615,337. of radio equipment; 39) installation of waterline to Toll Plaza; 40)
additional wiring for phone system; 41) plug and abandon two
Capital8udget additional wells; 42) additional ramp traffic signals; 43) radio
The original contract amount of the Design-Build Contract equipment; 44) expansion of existing crossovers; 45) asphalt
overlaywas $187,637,528. Change orders approved through June maintenance at Dillon ; ) ramp; l Toll6) equipment signage;purchase for
30, 2004, have increased that amount to $191,615,337. facility; 47) additional Plaza 48) road
There have been eighty-one contract changes authorized, opening traffic control; 49) additional roadway signage; 50)
with a total cost impact of $3,977,809. However, six change sdrainage ditch enancements; 51)m additional f interchange
orders in the amount of $1,338,301 have been funded by incentive;centiv; 52) contractorddi toll reimbursement in lieu of early opening
53) additional bridge signage; 54) Toll Plaza water
Pulte Homes Corporation, the City of Lafayette, the City and treatment system; 55) fire access road sign, and 56) a
County of Broomfield and the Colorado Department of subcontract for wetlands monitoring.
Transportation. In addition, one change order was funded as
a transfer from the Northwest Parkway right-of-way budget in The net change orders approved as of June 30, 2004 total
the amount of $285,107. Therefore, the net impact on the $3,977,809. Pulte homes Corporation financed items 17 and 18
contingency funds through June 30, 2004, is a transfer of with a check in the amount of $608,973. Funds were also
$2,354,401. Ten of the change orders were technical no cost provided by the City of Lafayette for item 19 in the amount of
changes and eleven were for allowances already provided for $177,196 and by the City and County of Broomfield for items 39
in the Design-Build Contract. This contract amount covers all and 43 in the amount of $465,647. The Colorado Department of
costs associated with the design and construction of the Transportation funded item 21 with a check in the amount of
Northwest Parkway including such activities as: design, $86,485. Item 11 was funded by a transfer of $285,107 from the
paving, interchange and crossing structures, landscaping, Northwest Parkway right-of-way budget for work done by Boul-
communications, toll plazas and operation facilities, and toll der County to Rock Creek in the Right-of-Way alignment.
collection system. The total value of approved work earned
through June 30, 2004, is $191,615,337 or 100% of the Contingency Fund Status
contract. In accordance with Colorado State law, the 10% The allocated budget for Contingency is $18,763,753, including
retainage on the first 50% of the contract is being held by the expected interest earnings over the life of construction. Approved
Authority in securities in lieu of retainage. These securities change orders total $3,977,809. However, after adjusting for third
will be released pending confirmation of no outstanding part funded change orders and a transfer from the Right-of-Way
claims. budget, the net charge against the original contingency fund is
currently $2,354,401, which adjusts the allocated budget amount
Change Order Status to$16,409,352.
Eighty-one change orders have been approved to date. Ten of
these were technical, no cost changes to the contract perform-
ance criteria. Four change orders were credits for a global set-
tlement on oil and gas facilities, field office maintenance, lost
revenue during bridge work, and deletion of a soil enhancement
change order. Eleven change orders were also no cost changes INVESTMENTS
that replaced allowances in the Design-Build Contract. The re-
maining fifty-six change orders include:
Construction Fund
1) a global change with the contractor for Toll Plaza improve- At the time of closing, $245,114,354 was invested in an
ments, credits for concrete box culverts, paving changes, elimi- Investment Agreement with Trinity Funding Company, which
nation of bridge lugs and pier shape changes; 2) removal of lead submitted the successful bid.
paint; 3) 404 permit for Rock Creek; 4) engineering definition for
the Neumann Flood Plain; 5) engineering definition for a gas Bond proceeds in the Construction Fund which were not invested
and oil road crossing; 6) a credit for decreasing the thickness of in that Investment Agreement are invested by the Trustee in
base course for asphalt paving; 7) increase the size of the con- either a Wells Fargo money market fund or the AAA Colorado
crete box culvert at Station 275; 8) initial piping for the de-icing Local Government Liquid Asset Trust.
system; 9) MSE walls; 10) ROW fencing for Boulder County; 11)
eliminating construction scope for Rock Creek; 12) Class 2
backfill Material; 13) remediation of hazardous waster at 3
___ T - - _-.
Debt Service Reserve Fund BOND FINANCING
(a) $36,161,406.28 of the Senior Bond proceeds
it were invested for the Senior Debt Service Reserve Bond Financing
NI'.. Fund in a Debt Service Reserve Forward Delivery The Northwest Parkway Public Highway Authority issued ap-
• Agreement with Bayerische Hypo— and Vereins- proximately 5364 million of insured Senior Bonds and approxi-
; bank AG, New York Branch, who was the success-
mately $52 million of Subordinate Bonds in June 2001 to fund the
Ak ful bidder. construction of the Northwest Parkway toll road project. The under-
;. writers were George K Baum & Company and Bear, Stearns & Co.
Capitalized Interest Fund - Inc. PBConsult Inc. was the financial consultant and provided the
' .. (b) The capitalized interest amount from the bond
chief financial officer for the Authority. A.G. Edwards & Sons, Inc.
kil
proceeds of $43,047,440.50 was invested in an was the financial advisor. Vollmer Associates conducted the traffic
Investment Agreement with AIG Matched Funding and revenue study with PB Consult Inc. providing the economic/land
use inputs for the study.
Corp. This Investment Agreement is expected to
provide returns which, when combined with interest The Senior Bonds received bond insurance from both Ambac and
flowing from the Debt Service Reserve, will provide FSA resulting in a positive reception of Northwest Parkway Author-
the necessary interest payments through the ity bonds in the market. The financing plan received investment
capitalized interest period. grade underlying ratings from all three rating agencies: Standard &
Poor's and Fitch rated the Senior Bonds BBB—and Moody's Investors
Service rated them Baa3. The Subordinate Bonds received
II Moody's Bat rating and a BB-plus from Standard & Poor's.
The Source and Uses for the Northwest Parkway Bond issue are
2004 BUDGET estimated as follows:
The Authority adopted the 2004 budget on De- Sources of Funds:
cember 23, 2003. Upon completion of the 2003 Series 2001A Bonds $175,720,000
audit, a budget hearing was held and an (Current Interest)
amended budget which includes all carryfor-
kI ward amounts for capital items was adopted by Series 2001B Bonds 79,865,792
. ' the Northwest Parkway Authority Board on June (capital Appreciation)
29, 2004. '. Series 2001C Bonds 108,371,280
I (Convertible Capital Appreciation)
I
'' REVENUES Series 2001D Bonds 52,465,000
Subordinate)(First
Investment Income $3,600,000 Colorado Department of Transportation 723,000
Toll Revenue 6,320,000
Net Original Issue Discount (4,025,562)
TOTAL REVENUES $9,920,000 TOTAL SOURCES $413,119,510
EXPENDITURES Uses of Funds:
Capital $40,325,426 Design-Build Contract Price $179,819,232
Debt-Related 67,470,028 (net of interest earnings)
Operating Expenses 4,350,810
104,738,219
Costs of the Project(1)
Salary Expenses 987,896
Other1
Professional Services 686,184 Capitalized Interest 2001A,2001D 43,047,440
Furniture & Fixtures 50,000
Debt Service Reserve Accounts 41,239,651
TOTAL EXPENDITURES $113,870,344
Cost of Issuance/Underwriters Discount 26,617,107
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
income. services, administrative costs, and amounts due under
reimbursement agreements.
4
I
PEOPLE BEHIND
THE PROJECT
Board of Directors ;..iiitj � Y
p J
Glenn Vaad, Weld County - Chairman of the Board I i
Alternate — Robert Masden, Weld CountyZit
Karen Stuart, City and County of Broomfield — Vice-
Chairman of the Board
Alternate —Walt Spader, City and County of Broomfield
Chris Berry, City of Lafayette - Secretary/Treasurer of the
Board
Alternate — Kerry Bensman, City of Lafayette
"Illea
Associate Members ' ;;rr,
Lorraine Andersen—City of Arvada
Alternate — Don Allard, City of Arvada _ aw
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Michelle Lawrence—Jefferson County ..
Alternate — Richard Sheehan, Jefferson County `
Ex-Officio Directors
Joe Jehn—Colorado Transportation Commission ,.
Alternate — Peggy Catlin, Colorado Department of a
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
5
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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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