Go The Better Way - Northwest Parkway leased to Portuguese firm

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Greetings,

For quite a while, we have believed that the tolling authority (JPPHA) was not being honest about the NEED (or lack of) for the proposed private toll road in Jefferson County. Apparently, the Federal Highway Administration (FHWA) agrees with our concern.

In a letter (below) to the Denver Regional Council of Governments (DRCOG), the FHWA is telling the tolling authority to re-do the traffic projections on the toll road. During the DRCOG hearing a few months ago, many accused the JPPHA of cooking the books to make their traffic claims appear more substantial to justify the need for this road.

This recent development with FHWA is good news for several reasons.

It calls into question the road’s need - the City of Golden’s projections demonstrated that this toll road will NOT make money.
Calls into question the integrity of the tolling authority, and specifically Jefferson County Commissioners and the cities of Arvada and Broomfield.
If all goes well, the tolling authority will have to make realistic traffic projections that will have a profound affect on toll revenues and investors.
It will take more time and money to re-do the plan, and it must pass the “smell test” with the federal government.
If the federal government and DRCOG insist on transparency through this process of revising the tolling plan, it could spell bad news for the road. The JPPHA may not have a financially viable plan.

Don’t forget that the tolling authority is also asking tax payers to come up with $330-$500M in tax subsidies – basically we’re funding a private toll road that we don’t need, with money we don’t have. IF this road was viable, it should stand on its own two feet, but apparently not so. Moreover, the tolling authority’s plan calls for a non-compete agreement on Indiana Street, designed to slow traffic and force more traffic on to the toll road. I continue to be amazed that so few Arvada citizens care about this issue since it will have a profound affect on Arvada. It is incorrect to believe that only those who drive toll roads pay – we all pay.

As an important side bar, the plan to build this toll road is indicative of the dangers of allowing private companies to control infrastructure, and public-private partnership financing. Municipalities and entire countries (e.g. Greece) funding of projects has been backed by "toxic assets", and taxpayers shoulder the bailouts. Can it happen here? Absolutely, it already has. Recall the Northwest Parkway toll road in Broomfield. This toll road teetered on financial collapse due to “lower than expected” revenues. Broomfield tax payers are now on the hook, and were forced to lease this toll road to a foreign company for 99 years. The deal includes non-compete agreements to stop improvements on public roads that might negatively affect private tolling revenues. Essentially, Broomfield government is working to prop up a private company at the expense of their own citizens.

Rob Medina
President of CINQ - Citizens Involved in the Northwest Quadrant

U.S. Department of Transportation
Federal Highway Administration

Federal Transit Administration
Region VIII
12300 West Dakota Ave., Ste 310
Lakewood Colorado 80228

Federal Highway Administration
Colorado Division
12300 West Dakota Ave., Ste 180
Lakewood, Colorado 80228

June 15, 2010

Ms. Jennifer Schaufele
Executive Director
Denver Regional Council of Governments
1290 Broadway, Suite 700
Denver, CO 80203

Dear Ms. Schaufele:

Subject: Request of DRCOG for Additional Technical Work Associated with 2035 RTP (2009 cycle 2) Amendment and Conformity Determination

We are in receipt of the Denver Regional Council of Governments (DRCOG) 2009 Cycle 2 Amendments to the 2035 Metro Vision Regional Transportation Plan (RTP) and air quality conformity determination. You have requested Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) to find that the 2009 Cycle 2 RTP amendments conform to the State Implementation Plan, and meet requirements of Title 23 U3.C and the Clear Air Act. In accordance with the Clean Air Act of 1990. as amended, and 23 CFR 450, the U.S. Department of Transportation (U.S. DOT) is required to make conformity determinations of Regional Transportation Plans in non-attainment and maintenance areas. The FHWA Colorado Division office on behalf of the FTA Region VIII office, per the current Memorandum of Agreement for Transportation Planning Oversight (MOA), initiates the review of conformity determinations.

We are currently reviewing the conformity determination documentation associated with the RTP amendment as provided by DRCOG, As you know, DRCOG has received considerable public comments on the RTP amendment, with most focused on the proposed inclusion of the Jefferson Parkway toll facility into the DRCOG fiscally constrained RTF. Furthermore, FHWA has directly received commentary relating to this same project.

From our review of the RTP amendment and conformity determination information from DRCOG and JPPHA, we have determined data from the DRCOG travel demand model "was used as a base from which to develop more refined Parkway corridor forecasts to be used for traffic and-revenue project purposes." The JPPHA specifically consulted with local jurisdictions within the Jefferson Parkway study area to revise TAZ projections for households and employment in 2015 and 2035 and incorporated into the Revised 2009 Parkway dataset. These revisions are referenced in Table 1 of the July 2009 Jefferson Parkway RTP amendment request, which shows a two-percent increase in households (2,000) and a thirteen-percent increase in jobs (31,000) over the DRCOG forecasted number in the 2008 Cycle 2 data set
(2008-C2) dataset.

We also understand the Jefferson Parkway project proposed for inclusion in the DRCOG fiscally constrained RTP, labeled "Initial Phase", consists of building a main toll highway span from SH 128 to SH 93 and partial interchanges in certain locations. The Initial Phase project is estimated to cost $204 million. The JPPHA in its July 2009 application to DRCOG also describes the "Ultimate Project", which anticipates additional roadway improvements but these projects are currently unfunded and not included in the DRCOG fiscally constrained RTP.

At this time, we are requesting DRCOG agree to additional analysis, with the goal of helping to address questions that have been directed to FHWA concerning the Jefferson Parkway project. This request is being made to assist in our review of the conformity determination. We would expect DRCOG to engage the JPPHA in its capacity as project sponsor to be responsible for the completion of the technical work.

With this letter we are specifically asking for all of the following actions to be taken:

1. DRCOG Board of Directors agree to allow additional modeling and refinement of financial assessment to be done, and permit DRCOG staff to participate in this activity.

2. DRCOG direct JPPHA to perform additional modeling and incorporate results in the refinement of the Jefferson Parkway RTP amendment request, dated July 2009. To complete this task DRCOG will need to make their travel demand model available to JPPHA.

3. Use the latest version of the calibrated DRCOG travel demand model, rather than the modified 2008 Cycle 2 data set (Revised 2009 Parkway dataset) version used for the July 2009 RTP amendment request, to generate the vehicle miles traveled (VMT) and traffic volumes for the Jefferson Parkway project.

4. Run the DRCOG travel demand model using the fiscally constrained transportation network, without any network changes such as those listed in the July 27, 2009 STANTEC Inc. modeling memo included in the Jefferson Parkway RTP amendment request.

5. To comply with latest planning assumptions, use the DRCOG approved household and employment data when running the travel demand model.

6. JPPHA uses the DRCOG model inputs and travel demand model to run the Jefferson Parkway project proposal.

7. JPPHA prepares documentation of the travel demand model run results and makes refinements to Jefferson Parkway RTF Amendment application; including traffic and revenue projections.

8. JPPHA submits documentation to DRCOG.

9. DRCOG transmits JPPHA revised documentation to FHWA for review and consideration.

In absence of additional work above being completed to satisfy technical questions, FHWA and FTA will be unable to finish our review that the DRCOG RTP amendment and conformity determination have met the requirements of Title 23 HS.C and the Clear Air Act.

Please contact William Haas at (720) 963-3016 if any part of this request is unclear.

Sincerely yours,
Doug, Bennett
Acting Division Administrator

cc:
Mr. Steve Rudy, DRCOG
Mr. Steve Cook, DRCOG
Mr. Cliff Davidson, NFRMPO
Ms. Lisa Silva, APCD
Ms. Saudi Kohrs, CDOT
Mr. David Beckhouse, FTA
Mr. Tim Russ, EPA

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The following organizations endorse CINQ’s position: Colorado Environmental Coalition, Plan Jeffco, Friends of the Foothills, former Colorado Gov. Dick Lamm, Canyon Area Residents for the Environment (CARE), Blue Mountain Land & Homeowners Association, Apple Meadows Homeowners Association, Village at Mountain Ridge Homeowners Association, Meadow Run Homeowners Association, and Harmony Village Community Association.