HomeMy WebLinkAbout20030534.tiff TM TAANSMIITAL MEMORANDUM
Northwest Parkway Project
A Public Highway Authority
555 Eldorado Boulevard, Suite 130, Broomfield, Colorado 80021
nwo@northwestoarkwou.org
Phone: 303-466-0567 Fax: 303-404-3049
TO: NWP Investors
FROM: Jill Lamoureux
CC:
DATE: Wednesday, February 12, 2003
SUBJECT: Northwest Parkway Bond Disclosure Document
Enclosed is the bond disclosure document For the 4th Quarter of 2002. The PDF file
can also be found on the What's New section of our website
(www.northwestparkwov.orq). Please feel free to contact me if you have any
questions or concerns.
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Northwest Parkway
Public Highway Authority
Construction Update
for the period October 1, 2002
through December 31, 2002
February 15, 2003
- TABLE Of CONTENTS
OVERVIEW 1
Northwest Parkway 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
,11 Northwest Parkway Public Highway Authority
555 Eldorado Boulevard, Suite 130
Broomfield, Colorado 80021
Telephone: 303-466-0567
OVERVIEW PROJECT PROGRESS
SUMMARY
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
from each of the City of Broomfield, the City of Lafayette, the Authority to lead the effort in right-of-way acquisition.
and Weld County, Colorado. In the 2nd quarter of 2002 the More than a dozen other contractors specializing in areas
City of Arvada applied to the Board of Directors and was such as title work, surveying, appraisals and condemnation
approved for an affiliate membership to the Authority. In law support WSLS in their acquisition efforts. Under the
the 4th quarter of 2002 Jefferson County also applied to the terms of the Design-Build Contract, the Authority was obli-
Board of Directors and was approved for an affiliate mem- gated to deliver right-of-way to the contractor in three
bership to the Authority. The Authority is responsible for phases.
the financing,construction and operation of the toll highway
to be known as the Northwest Parkway. As of December 31, 2002 the Authority has obtained pos-
session of all of the 564 acres of right-of-way it is obligat-
ed to deliver under the Design-Build Contract. Of this, 452
Project Description
acres are fee simple takes and the remainder is made up
The Northwest Parkway will consist of the existing two-mile by easements.
Interlocken Loop from State Highway 128 to Tape Drive (just
south of the intersection with 96th Street) connecting with Phase One of the acquisition extends from 1-25 at the east
the nine-mile limited access toll highway being constructed terminus of the Project to just east of Rock Creek, near the
on the northwestern perimeter of the Denver metropolitan U.S. 287 interchange. The Authority met all of its oblige-
area that will link the Interlocken Loop to 1-25. tions under the Design-Build Contract to deliver this right of
way by December 25, 2001.
The final segment of the E-470 toll road which is to connect
with the Northwest Parkway at 1-25 was completed in the Phase Two begins just east of Rock Creek and ends just
4th quarter of 2002, providing access to and from regional west of the 104th Street grade separation. Phase Two
right-of-way was delivered within 270 days of contract
employment centers and retail centers and facilitating tray- signing with the exception of one parcel relating directly to
el from the northwestern metropolitan area to points east utility relocations which was ultimately determined not to
and south, including Denver International Airport. be required.
The Northwest Parkway project is expected to benefit from Phase Three begins at the end of Phase Two and extends
a barbell effect of two major developments on either end of to the end of the Project on 96th Street. The Phase Three
the project, with the existing Interlocken development on right-of-way was delivered successfully by the contract
the southwest and a new 3,000 acre planned and zoned deadline of June 30, 2002.
development called Preble Creek on the northeast. Of the purchases which have been finalized or have had
Plan of Finance value determination set to date, the overall right-of-way
costs have been under the allocated budget amount. For
The Northwest Parkway Public Highway Authority the ROW obtained via eminent domain, there remain 10
("Authority") closed on project financing in June 2001 and parcels that have
simultaneously gave a notice to proceed to the Design- not yet received
Build Contractor—Northwest Parkway Constructors ("NPC"), value determine s '*1 3' -->,, , "
The plan of finance (see further description under "Bond ' tions. Based on the - -.
Financin information current ,,,,tg„
g") provides for the funding of construction costs
ly available, the
under the Design-Build Contract and other capital costs, as h {
Northwest Parkway $
well as Authority administrative and operation/maintenance
expects that suffi � 1' :� _
costs through the construction period, as well as amounts cient budgetary s-`. T''—``
due certain reimbursement agreements. In addition, the resources have -- — .4
plan of finance provides for debt service reserves, capital- been set aside for
ized interest, contingency funds, bond insurance premiums the acquisition and f ° <1
and issuance costs. court costs for those `
parcels. 1
Design/Build Contractor Geotechnical/Permits &
The Design-Build-Contract between the Northwest Parkway Clearances/Utilities
Public Highway Authority and the Northwest Parkway In November, the contractor received approval from the
Constructors, a Colorado joint venture, of Kiewit Western Co.
and Washington Group International, Inc. was executed on frColorado the Dheartmenut tinof utility permitsn to extend the US
June 28, 2001. The full notice to proceed was issued on 287. for construction also ty ceie for pr and or
June 28, 2001 simultaneous with financing closing. The con- weekend/holiday The contractor from received approval for
tract provides for the road to open to traffic by December December
wo work the City of Broomfield for
December work.
31, 2003 with revenue collection to begin on the Project
Guaranteed Substantial Completion date of February 29,
2004. The final acceptance of all items included in the proj- Construction
ect is scheduled to be completed by the Project Guaranteed Work on the Northwest Parkway during this period includ-
Final Acceptance of June 1, 2004. ed completion of small cuts and subexcavation from the Toll
Plaza to 120th. The contractor continued finishing slopes
Schedule Status and placing topsoil throughout the project. Lowell
Boulevard was opened to traffic in December. Work was
As of the reporting period ending December 31, 2002 the started on the South Sack Creek Drainage structure and the
construction contract is 60% complete (based on approved contractor began placing underdrains in Section Two subex-
work). The overall completion milestones for the project cavation areas. Work on pip
ing in Section
remain on schedule. The civil design work is 96.5% com- P P Three and a-
120th Street took place during this period. The NPC finish-
plete. ing crew completed finishing grade up to Lowell boulevard.
Material was hauled fronrI-25 to fill subexcavated holes
The work is being conducted in four Sections. Section One from the Toll Plaza to 120th. The backfill of the Toll Plaza
extends from the connection with E-470 east of 1.25 to tunnel began during this period.
Huron Street, Section Two extends from Huron Street west to
120th St., Section Three extends from 120th west to 104th Paving continued in the 4th quarter on the mainline
and Section Four extends from 104th southwest to US 36. Northwest Parkway. There is no more asphalt paving antic-
ipated until the spring. All bridge substructure work was
Design completed in November except for dry finish. Dry finish is
During this period, NPC continued design work in Sections anticipated to resume in the spring with the return of warm
One, Two, Three and Four (Al - the 1.25 interchange area, weather. Superstructure fieldwork accomplished this peri-
A2 -from Huron Ave. to 120th Ave., A3 -from 120th Ave. to od included expansion joint installation at the ramp from
104th Ave. and A4 - from 104th Ave. to 96th St. respec- Northbound I-25 to Westbound Northwest Parkway. The
tively). In Section One, Request for Information submittals structural steel erection was completed on the ramp from
for geotechnical, roadway and drainage design were Northbound 1.25 to Westbound Northwest Parkway and the
reviewed and shop drawings for bridge design were also ramp from Westbound Dillon Rd. Steel deck installation
reviewed. In Section Two, Request for Information submit- began on the ramp from Eastbound Northwest Parkway to
tals for geotechnical design were reviewed and roadway Northbound 1.25.
design Finishes Packages were submitted for review. In
Section Three, work was continued on Mechanically NPC continued work on the Northwest Parkway Structures
Stabilized Earth (MSE) wall submittal reviews. Roadway during this period. In Section Two, the caissons for a pier
design Request for Construction finishes packages were at 120th over Northwest Parkway were drilled and placed
submitted during this period and the coordination of the and the columns were formed, placed, and cured. In
design for wetlands development began. In Section Four, Section Three, slope paving at Eastbound and Westbound
geotechnical shop drawings were reviewed and work was Northwest Parkway over the ramp that will carry westbound
continued for drainage design. The Authority released two Dillon Rd. under the Northwest Parkway was finegraded,
packages for construction: A4 Finishes and A2 Grading and formed, placed, and cured. Additionally, an abutment for
Drainage for the Mainline Toll Plaza. NPC submitted final Northwest Parkway over Rock Creek Westbound was also
design for water main and sanitary sewer sleeves, electric formed, poured, and cured. Span girders for Northwest
and gas at 96th Street during this period. Parkway over Rock Creek Eastbound and Westbound were
erected. In Section Four, the block MSE walls at 104th
Street over Northwest Parkway were started; the pier
columns for Northwest Parkway over BNSF Mainline
Eastbound and Westbound and a pier cap for Northwest
2 Parkway over two ramps were formed, poured, and cured.
changes; 2.) removal of lead paint; 3.) 404 permit for Rock
PROJECT" FINANCIAL - Creek; 4.) engineering definition for the Neumann Flood
HIGHLIGHT
�^ Plain; 5.) engineering definition for a gas and oil road cross-
`k ing; 6.) a credit for decreasing the thickness of base course
for asphalt paving; 7.) increase the size of the concert box '_-
Overall Financial Status culvert at Station 275; 8.) initial piping for the De-Icing sys-
The total capital budget for the Northwest Parkway was tem; 9.) MSE walls; 10.) ROW fencing for Boulder County;
originally $242,637,528, excluding contingency funds. 11.) eliminated construction scope for Rock Creek; 12.) Class
After adjusting for all change orders through December 31, 2 backfill material; 13.) remediation of hazardous waste at
2002 the total capital budget is $244,342,306 excluding Dillon Road; 14.) plug and abandon CDOT monitoring wells;
the contingency fund budget. That amount includes the 15.) irrigation crossing for Patina Lease Road; 16.) remedia-
Design-Build Contract covering all construction; a contract tion of petroleum stained soils at US 287 and Dillon Road;
with E-470 for early I-25 interchange design; Program 17.) design costs for Pulte Homes utility sleeves; 18.) con-
Management costs including construction oversight and struction costs for Pulte Homes utility sleeves; 19.) City of
all right-of-way acquisition activities. The amount of Lafayette utility sleeves; 20,) Toll Plaza canopies; 21.) relo-
expenditures through December 31, 2002 total cate 160th Avenue bridge Variable Messaging Sign; 22.)
$199,450,102. The payments to NPC included in that application of graffiti proof sealant to MSE walls; and
total are $114,945,753. 23.) water line sleeves.
Capital Budget The net change orders approved as of December 31, 2002
The original Contract Amount of the Design-Build Contract total $2,577,437. Items 17 and 18 were financed by Pulte
was $187,637,528. Change orders approved through Homes Corporation with a check in the amount of$608,978.
December 31, 2002 have increased that amount to Funds are also being provided by the City of Lafayette for
$190,214,965. There have been forty-four contract item 19 in the amount of $177,196 and the Colorado
changes authorized, with a total cost impact of Department of Transportation for item 21 in the amount of
$2,577,437. However,three change orders in the amount $86,485.
of $872,659, have been funded by Pulte Homes
Corporation, the City of Lafayette and the Colorado Contingency Fund Status
Department of Transportation, Therefore, the net impact The allocated budget for Contingency is $18,763,753, includ-
on the contingency funds through December 31, 2002 is a ing expected interest earnings over the life of construction.
transfer of $1,704,778. Ten of the change orders were Approved change orders total $2,577,437. However, after
technical no cost changes and ten were for allowances adjusting for third party funded change orders, the net
already provided for in the Design-Build Contract. This charge against the original contingency fund is currently
contract amount covers all costs associated with the $1,704,778 which adjusts the allocated budget amount to
design and construction of the Northwest Parkway includ- $17,058,975.
ing such activities as: design, paving, interchange and
crossing structures, landscaping, communications, toll INVESTMENTS
plazas and operations facilities, and toll collection sys-
tem. The total value of approved work earned through
December 31, 2002 is $114,945,753 or 60% of the con- Construction Fund
tract. In accordance with Colorado State law, the 10% At the time of closing, $245,114,354 was invested in an
retainage on the first 50%of the contract is being held by Investment Agreement with Trinity Funding Company, which
the Authority in securities in lieu of retainage. submitted the successful bid.
Change Order Status Bond proceeds in the Construction Fund which were not
invested in that Investment Agreement are invested by the
Forty-four change orders have been approved to date.
Trustee in either a Wells Fargo money market fund or the AAA
Ten of these were technical, no cost changes to the con-
tract performance criteria. One change order was a cred- Colorado Local Government Liquid Asset Trust.
it for a global settlement on oil and gas facilities. Ten
change orders were also no cost changes that replaced
allowances in the Design-Build Contract. The remaining
twenty-three change orders include:
1.) a global change with the contractor for Toll Plaza •
improvements, credits for concrete box culverts, pavings
changes, elimination of bridge lugs and pier shape
Debt Service Reserve Fund
(a) $36,161,406.28 of the Senior Bond proceeds were BOND I A CI
invested for the Senior Debt Service Reserve Fund in a Debt
Service Reserve Forward Delivery Agreement with The Northwest Parkway Public Highway Authority issued
Bayerische Hypo- and Vereinsbank AG, New York Branch, approximately $364 Million of insured Senior Bonds and
which was the successful bidder. approximately $52 Million of Subordinate Bonds in June
(b) $5,078,244.75 of the First Tier Subordinate Lien Bonds 2001 to fund the construction of the Northwest Parkway toll
proceeds were used to enter into a Reserve Fund road project. The Underwriters were George K Baum &
Agreement for the First Tier Subordinate Debt Service Company and Bear, Stearns&Co. Inc. PBConsult Inc.was the
Reserve Fund with Lehman Brothers Special Financing Inc, financial consultant and provided the chief financial officer
for the Authority. A.G. Edwards & Sons, Inc. was the linen-
which was the successful bidder. cial advisor. Vollmer Associates conducted the traffic and
revenue study with PBConsult Inc. providing the
Capitalized Interest Fund economic/land use inputs for the study.
The capitalized interest amount from the bond proceeds of
$43,047,440.50 was invested in an Investment Agreement The Senior Bonds received bond insurance from both Ambac
with AIG Matched Funding Corp. This Investment Agreement and FSA resulting in a positive reception of Northwest
is expected to provide returns which, when combined with Parkway Authority bonds in the market. The financing plan
interest flowing from the Debt Service Reserve, will provide received investment grade underlying ratings from all three
the necessary interest payments through the capitalized rating agencies: Standard & Poor's and Fitch rated the
merest period. Senior Bonds BBB-and Moody's Investors Service rating them
a Baa3. The Subordinate Bonds received Moody's Bat rat-
ing and a BB-plus from Standard & Poor's.
BUDGET The Sources and Uses for the Northwest Parkway Bond issue
The Authority originally adopted the 2002 budget on are estimated as follows:
December 18, 2001. Upon completion of the 2001 SOURCES OF FUNDS:
audit, a budget hearing was held and the amended
budget which included all carryforward amounts for Series 2001A Bonds $175,720,000
capital items was adopted by the Northwest Parkway (Current Interest)
Authority Board on April 30, 2002. The Authority Series 2001B Bonds 79,865,792
adopted the 2003 budget on December 17, 2002. (Capital Appreciation)
Upon completion of the 2002 audit, a budget hearing
will be held and an amended budget which includes Series 2001C Bonds 108,371,280
all canyforward amounts for capital items will be (Convertible Capital Appreciation)
adopted by the Northwest Parkway Authority Board.
Series 2001D Bonds 52,465,000
2002 Amended 2003 Adopted (First Tier Subordinate)
Budget Budget Colorado Department of Transportation 723,000
REVENUES Net Original Issue Discount (4,025,562)
Investment Income $9,892,500 $5,873,000
TOTAL SOURCES $413,119,510
TOTAL REVENUES $9,892,500 $5,873,000
EXPENDITURES USES OF FUNDS:
Salary Expenses $630,000 $860,782 Design-Build Contract Price $179,819,232
Operating Expenses 355,000 741,100 (net of interest earnings)
Professional Services 819,432 460,000 Other Costs of the Project (1) 104,738,219
Furniture& Fixtures 50,000 50,000 Capitalized Interest 2001A, 2001D 43,047,440
Debt-Related 85,842,343 4,050,03Debt Service Reserve Accounts 41,239,651
Capital 239,263,583 (858,882) Cost of lssuance/UndenvritersDiscount 26,617,107
TOTAL EXPENDITURES $326,960,358 $5,873,000 Project Contingency 17,657,861
(available for Project Costs)
Note: Development Stage Company-all budgetary expenses
covered from Bond proceeds and investment income. The TOTAL USES $413,119,510
2003 budget will be amended to include all carryforward
(1) Includes right-of-way acquisition, project oversight engineering
services, administrative costs, and amounts due under
4 reimbursement agreements.
PEOPI f
THE ' ,
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
_ Associate Members Carolyn McIntosh — Special Governmental Counsel
Howard Kenison — Special Environmental Counsel
Lorraine Andersen - City of Arvada
Alternate - Don Allard, City of Arvada
Michelle Lawrence- Jefferson County
Alternate - Richard Sheehan, Jefferson County
Ex-Officio Directors
Joe John - Colorado Transportation Commission t
Alternate - Tom Norton, Colorado Department of
Transportation
Mary Blue - Regional Transportation District
Alternate -Wally Pullium, Regional Transportation - ..
District r --
Joel Rosenstein - Interlocken Consolidated Metropolitan
District
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WELD COUNTY
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Northwest Parkway Public Highway Authority
555 Eldorado Boulevard, Suite 130
Broomfield, Colorado 80021
Telephone: 303-466-0567
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