City and County of Broomfield, Colorado CITY COUNCIL AGENDA MEMORANDUM

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1 CITY COUNCIL AGENDA MEMORANDUM City and County of Broomfield, Colorado To: Mayor and City Council From: Charles Ozaki, City and County Manager Prepared by: Kevin Standbridge, Deputy City and County Manager Meeting Date Agenda Category Agenda Item # February 10, 2015 Council Business 11 (d) Proposed Resolution No , Authorizing the City and County of Broomfield to Provide the Jefferson Agenda Title: Parkway Public Highway Authority $200,000 in 2015 for Project Costs Summary On May 13, 2008, the City Council approved a resolution authorizing Broomfield to enter into an Establishing Contract (Contract) with the City of Arvada and Jefferson County to form the Jefferson Parkway Public Highway Authority (JPPHA). The Contract was updated and approved by the City Council on August 24, The purpose of the JPPHA is to see the Jefferson Parkway designed, financed, constructed, operated and maintained from SH 128 in Broomfield to SH 93 and approximately 64 th Avenue in Jefferson County. The Contract provides that each of the three parties to the IGA have equal votes on the JPPHA Board and that the three parties will equally divide the operating costs of the JPPHA. The current proposed alignment for the highway is included on Attachment 1 A summary of costs paid to date by Broomfield is included in this memorandum. To date, Broomfield has contributed $1,320,000 towards operations of the Authority and $933,334 toward Right-of-Way (ROW) acquisition. The Rocky Flats ROW was acquired on December 31, 2012, following a favorable ruling in Federal Court. The approved 2015 budget for JPPHA operations is $978,400. The proposed resolution authorizes $200,000 as Broomfield s one-third share of the costs of 2015 operations for the JPPHA. The budget includes the carry-forward of $381,084 in unexpended 2014 funds. A copy of the approved 2015 budget is included as Attachment 2. Key 2015 objectives for the JPPHA include completing litigation regarding the Rocky Flats ROW parcel, acquiring the few remaining small ROW parcels, initiating the process with the Colorado Department of Transportation for permitting access points for the Parkway with state highways (the 1601 process), and proceeding on a concessionaire agreement for the financing, construction, and operation of the roadway. The recent formation of the WestConnect Coalition is expected to address some of the issues which have hindered the JPPHA as it moves forward. The City Council approved Broomfield s participation in the Coalition on January 27, The approved 2015 City and County of Broomfield budget includes $200,000 in the Capital Improvement fund for this proposed purpose. Proposed Resolution authorizes payment of $200,000 in 2015 for Broomfield s one-third share of JPPHA project costs. Relationship to Northwest Parkway The Concession and Lease Agreement with the Northwest Parkway LLC (BRISA) provides that if a beltway is completed from the current terminus north of US 36 to SH 93 by 2020, the Northwest Parkway Public Highway Authority will be entitled to $40 million, currently held in escrow, pending completion. The agreement also provides that if the Northwest and Jefferson Parkways extend to SH 93, BRISA will contribute the final $60 million toward construction of the Northwest Parkway from its current terminus to SH 128. Recent discussions with BRISA suggest that the availability of these monies will be based on the terms of the Agreement and that BRISA advancing funds other than by the terms of the Agreement is highly unlikely. Relationship to Broomfield/Northwest Parkway IGA At the time the Concession and Lease Agreement was under negotiation, the Northwest Parkway Public Highway Authority requested that Broomfield enter an Intergovernmental Agreement (Northwest Parkway IGA) providing terms regarding the extension of the regional beltway to the south and west. That IGA was approved by the City Council in August of Generally, the IGA provides that Broomfield will work to see the beltway extended from SH 128 to SH 93. Prior Council Action On March 11, 2014, the City Council approved Resolution No , authorizing payment to the JPPHA. Total payments to date by Broomfield to the JPPHA are $2,253,334. The City Council approved the Establishing Contract for the Jefferson County Public Highway Authority on May 13, 2008, and the restated contract on August 24, 2010 (Resolution No ). Financial Considerations Sources and Uses of Funds Source of Funds 2015 Capital Improvement Fund $200,000 Total Sources of Funds $200,000 Use of Funds Negotiation of concession agreement. $200,000 Total Uses of Funds $200,000 Alternatives Do not approve the resolution. Proposed Actions/Recommendations Based on the above, it is recommended That Resolution No be adopted. 11(d) - Page 1

2 Jefferson Parkway Public Highway Authority Projects Costs - Page 2 Establishing Contract and Appointments BACKGROUND The City Council authorized an Establishing Contract for the Jefferson Parkway Public Highway Authority (JPPHA) on May 13, The City Council has appointed Mayor Ahrens and Mayor Pro- Tem Stokes as its current representatives to the JPPHA Board. The Board has been meeting since May of The Establishing Contract was updated in 2010, primarily to add one new board member from each member jurisdiction. There are now six board positions, two for each of the founding members of the JPPHA. The JPPHA has not hired staff. The City of Arvada provides staff to serve as the Interim Executive Director of the JPPHA and to perform other duties, primarily financial. The Interim Executive Director acts at the direction of the JPPHA Board. The JPPHA Board has discussed the hiring of a contract Executive Director as the project moves closer towards construction, but has not yet chosen to do so. Jefferson Parkway Feasibility Testing The JPPHA is testing the financial feasibility of the proposed Jefferson Parkway. The feasibility testing includes pursuing opportunities with a private partner to design, finance, construct, operate, and maintain the parkway. The Authority has obtained the necessary approvals from the Denver Regional Council of Governments (DRCOG) and the Colorado Department of Transportation (CDOT) to proceed to the next phase. In 2013, the JPPHA engaged Goldman, Sachs and Company to provide financial consulting services to the project. The engagement was put on hiatus in 2014 until such time that a new financial proposal is developed or reviewed by the Authority. The updated, July 27, 2011, Confidentiality and Exclusivity Agreement between the JPPHA and Isolux provides key milestones for the parties toward the completion of a concession agreement. Isolux is based in Spain and is a multi-national corporation that finances, designs, builds, and operates transportation and energy conveyance systems throughout the world. Isolux was the chosen proposer through an RFQ process conducted by the JPPHA in late 2010 and At this time, the Agreement with Isolux is on a month-to-month basis. The Authority and its engineering consultants have reviewed the work completed for the CDOT from the Environmental Impact Study (EIS) of the Northwest Quadrant, identified design and construction alternatives that reduce costs, and prepared revised estimates for the overall project cost. A map showing the current proposed alignment of the Jefferson Parkway is included as Attachment 1 to the memorandum. SCOPE OF WORK AND BUDGET The 2015 scope of work includes the following items: Completion of ROW acquisition for the remaining few, small parcels. Jefferson County and Arvada are providing funding for the JPPHA to acquire a key parcel at the intersection of SH 72 and the Parkway. Continuation of negotiation with Isolux for Concession Agreement. Initiation of work with CDOT for permitting for Parkway access points at state highways. 11(d) - Page 2

3 Jefferson Parkway Public Highway Authority Projects Costs - Page 3 Conclusion of the litigation regarding the Rocky Flats ROW. The recent formation of the WestConnect Coalition is expected to address some of the issues which have hindered the JPPHA as it moves forward. The City Council approved Broomfield s participation in the WestConnect Coalition on January 27, The Authority s 2015 budget includes revenues of $600,000 and expenditures of $978,400. The budget includes the carry-forward of $381,084 in unexpended 2014 funds. A copy of the 2015 budget is included as Attachment 2. The Authority has agreements in place for legal services, administrative operations, and auditing. To date, Broomfield has paid $1,320,000 toward this work; $100,000 in 2008, $300,000 in 2009, $100,000 in 2010, $220,000 in 2011, and $200,000 in each of 2012, 2013 and Broomfield has also contributed $933,334 for the acquisition of the Rocky Flats right-of-way for the road. The total contributed to date by Broomfield to the JPPHA is $2,253,334. There is $200,000 in Broomfield s adopted 2015 Capital Improvement budget for Broomfield s one-third share of the JPPHA s operating costs. Rocky Flats Wildlife Refuge ROW The United States Fish and Wildlife Service (USFWS) began an Environmental Assessment (EA) in late spring of The purpose of the EA was to accommodate the expansion of the Rocky Flats Wildlife Refuge (Refuge) by the addition of Section 16. Section 16 is at the southwest corner of the Refuge along SH 93, and was determined by the USFWS to be desirable as an addition to the Refuge. The USFWS took title to the Section 16 property on December 31, The addition of Section 16 to the Refuge occurred through a multi-party acquisition which included the JPPHA, Arvada, Jefferson County, Boulder and Boulder County and conveyance to USFWS. The transaction also included the State Land Board, the Rocky Flats Natural Resource Damages funds, and LeFarge. The conveyance of the easterly 300 of the Refuge to the JPPHA for Right-of-Way on December 31, 2011, occurred in part, because the JPPHA contributed $2.8 million to the acquisition of Section 16 (Broomfield contributed 33% of the JPPHA funds for the acquisition). The $2.8 million was the appraised value, by USFWS, of the 300 ROW. The EA was completed in late 2011, and in December 2011 and early 2012, the City of Golden, Town of Superior, Wildearth Guardians, and Rocky Mountain Wild filed suit in Federal Court alleging, generally, that the EA process was faulted. The JPPHA prevailed in Federal Court; the plaintiffs appealed to the 10 th Circuit Court of Appeals. Though oral arguments were heard by the appellate Court in the fall of 2013, the court has yet to render its decision. In December 2011, Broomfield committed and paid $933,334 as Broomfield s one-third share of the approximately $2.8 million ROW cost. REIMBURSEMENT AGREEMENT In 2014, the City Council approved a Reimbursement Agreement with the Authority to obtain reimbursement for costs incurred in the development of the tollway from the selected partner. It is likely that the reimbursement will be at a later date once the facility has begun to generate a positive cash flow. 11(d) - Page 3

4 Jefferson Parkway Public Highway Authority Projects Costs - Page 4 The IGA provides that reimbursement amounts be updated annually by the parties. Northwest Parkway Public Highway Authority In the fall of 2007, the Northwest Parkway Public Highway Authority entered into a Concession and Lease Agreement with the Northwest Parkway, LLC, which is controlled by Brisa Auto-Estradas de Portugal, S.A. (BRISA) and Companhia de Concessões Rodoviárias, for the operation of the Parkway. The Northwest Parkway Public Highway Authority is staffed by the City and County of Broomfield under a contract with the Authority. The Concession and Lease Agreement provides that if the Northwest Parkway is completed from its current terminus north of US 36 to SH 128 and the Jefferson Parkway is completed from SH 128 to SH 93 by 2020, the Authority will be entitled to $40 million being held in escrow pending completion. It also provides that if the combined Parkways extend to SH 93, BRISA will contribute the final $60 million toward construction of the Northwest Parkway from its current terminus to SH 128. At the time the Concession and Lease Agreement was under negotiation, the Authority requested that Broomfield enter into an Intergovernmental Agreement (Northwest Parkway IGA) providing general terms regarding the extension of the regional beltway to the south and west. That IGA was approved by the Broomfield City Council in August of Generally, the Northwest Parkway IGA provides that Broomfield will work with BRISA to see the beltway extended from SH 128 to SH 93. Recent discussions with BRISA suggest that the availability of these monies will be based on the terms of the Agreement and that the likelihood of BRISA advancing funds other than by the terms of the Agreement is highly unlikely. BROOMFIELD S BUDGET Broomfield s approved 2015 budget includes $200,000 in the Capital Improvement Fund for the Jefferson Parkway operations. A sources and uses of funds summary is presented below. Broomfield s share will help pay the costs of the items listed. Source of Funds 2015 Capital Improvement Fund $200,000 Total Sources of Funds $200,000 Use of Funds Negotiation of concession agreement $200,000 Total Uses of Funds $200,000 PROPOSED RESOLUTION NO Proposed Resolution No would approve a 2015 payment of $200,000 to the Jefferson Parkway Public Highway Authority for Broomfield's share of the 2015 operating costs of the JPPHA. Staff recommends adoption of the Resolution. 11(d) - Page 4

5 Jefferson Parkway Public Highway Authority Projects Costs - Page 5 ATTACHMENT 1 11(d) - Page 5

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