|
November 10, 195
The Honorable Charley E. Johns, Acting Governor
Capitol Building
Tallahassee, Florida
The Florida State Turnpike Authority herewith submits this
special report, reviewing progress made during the first full
year of operations by the members of the Authority appointed to
office during your administration.
This report will be primarily concerned with the affairs
of the Authority as related to the financing and preliminary
stages initial to conztruction of ProJect No. One of the Sunshine
State Parkway; presenting an up to date account of the courses of
action pursued to carry out the tack authorized by law to a
successful conclusion with the least possible interruption or de-
lay, consistent with sound and efficient administration. To this
end, the Authority has always endeavored to follow to the best of
its ability the expressed legislative intent.
A good deal of the context of this report is already a
matter of public record. In this regard we refer to our first
annual report dated March 30, 1954 and related reports of our
expert advisers. However, it appears proper to review events
and deeds which have transpired in chronological sequence in
order to present a concise and composite picture of the progress
made during the period covered by this report.
After suspending all members of the previous Authority, on
November 11, 1953, you appointed Marvin D. Adams Chairman. Sub-
sequently, on various dates you appointed the other members of
the Authority so that by December 2. l953-the full complement of
members required by law was achieved.
As soon as a sufficient number of members constituting a
quorum were available, the Authority held a meeting with purpose
of reviewing the deeds and policies of the previous Authority
and planning the future course of action of the current
administration.
In keeping with their intended scope of action. the
Authority set about organizing a staff whose activities are con-
centrated chiefly in administrative matters, legal matters and
right of way acquisition. It then obtained the services of
highly reputed advisers in various fields whose duties lie in
assisting the Authority in the proper execution of its aims in
building a turnpike.
Page 6
various financial houses led us to the conclusion that the firms
of Smith, Barney a Co. and B. J. van Ingen a Co. had more ex-
perience in turnpike financing than any of the others. We there-
fore resolved that if we could get the advice and counsel of both
firms Jointly, we would have the outstanding team of financial
consultants. We approached these firms with the offer to engage
their services at a Joint fee of 1/8 of 15 of the amount of the
bond issue with the understanding that they would each engage a
Florida firm to aid them and with a further understanding that the
bonds would be marketed at public sale and that neither of the
firms would be allowed to benefit financially through the organi-
zation of any syndicate or syndicates engaged in the purchase f
the securities. We were very pleased that these outstanding f rms
accepted our proposal, and we feel that we have had the advice of
true experts who will be able to bring the bond issue to market at
public sale and that it will be marketed at a low coat comparable
to similar issues even though our total bond issue is small com~
pared to those of New Jersey, Ohio, Pennsylvania and Indiana.
"He next looked into the question of consulting engineers.
The previous Authority had employed for the preliminary work the
firm of Reward, Needles, Tasman a Bergendoff, who had associated
with them two Florida en ineering firms, Radar Engineering Company
of Miami and Smith a Oil espic of Jacksonville. Their preliminary
report had been received by the previous Authority, and a second
phase or a more detailed report had been ordered. In looking over
the field of consulting engineers we found that three of the most
outstanding firms with broad experience in turnpikcs. bridges and
tunnel engineering were Howard, Needles, Tammen and Bergendoff,
J. E. drainer Co., and Parsons, Brinckerhoff, Hall a Macdonald.
"Investigation of other turnpikes and their experience in
financing revealed the fact that the Maine Turnpike, the New Jersey
Turnpike and the west Virginia Turnpike all had experienced long
delays and large additional costs in financing due to the fact that
their bonds were originally sold on estimates too low to provide
the necessary financing and that revised estimates were necessary
and additional financing required at higher interest rates, and
after long, expensive delays. It was a rather significant fact
in all three turnpikes that had unfortunate experiences the con-
sulting engineers were Edward. Needles, Tamen s Bergendoff. We
therefore felt that we should look elsewhere fer consulting
engineers whose approach to the problem of cost would be more
realistic and therefore eliminate the possibility of having a long
delay and expensive refinancing as had occurred in the three states
named. At the meeting of the previous Authority held on July 10,
1953 a representative of the firm of J. E. Greiner Company had
stated that I'it would take about 9 months to complete this study
and put it in shape where it could be used for financing the
pchect." We felt that a delay of such a time would do tremendous
Page 7
harm to the project and therefore dec-ded to contact Parsons,
Briyc.erhoff, Hill and Macdonald and see whether or not they
could underta e th a project at a reasonable fee and whether their
Wur load was such that they ovuld -mmediately put qualified men
on the Job 00 ing t ward rap-d completi n. Our Authority had
n.t gone t: the experse of employ-ng any staff engineer. and we
were at that time loo ing for ergineer ng advice to the State Road
Department and pr.ncipa 1y t Mr Sam Turnbull, chief Engineer.
I discussed the matter w;th Mr Turnbull, and he stated that in
has spin on Parsons, Brincxerhoff, Hall & Macdonaid were thoroughly
capable and that he had wor.ed with them and new intimately of
their work and that he could recommend them highly to us. Mr.
Turnbull then offered to call Mr. hacdonald, the senior partner of
the firm, which he did from his phone at the State Road Department
on December 9, 1953 and told Mr. Macdcnald that he had recommended
the Parsons firm to us o be employed as consulting engineers. he
then turned the telephone over to me. and I arranged with Mr.
Macdonald to send Mr. auade, one of his partners, to Miami to meet
With the Authority and discuss their possible employment. Mr.
zuade met with our Authority on December 15, 1953 as did also
representatives of Radar Engineer-ng Company and Smith a Gillespie,
the associates of Howard, Needles, Tamm.n a Bergendoff, who had
prepared the prelimdnary survey. Mr. zuade agreed to mane us a
proposal, and on December 31, 1953 his proposal was accepted by
the Authority and his firm was employed as consulting engineer for
a fee of 1.9% of the actual cost of construction. It should be
borne in mind that this fee is not based on the bond issue, nor
does it include right-of~way, engineering and architectural ser-
vices, administration, contingencies, interest during construction,
bond discount, or cost of financing. We had made certain that this
fee quoted to us by Parsons, Brinckerhoff, Ball & Macdonald and
which was accepted by us was in line with proJecte much larger than
ours, and it was deemed fair and reasonable.
"We found in daCUSSlng the question of employment of bond
counsel that there were two or three law firms in the United States
that had more experience in revenue bond financing than the others.
Two of these firms were Mitchell & Pershing and Caldwell, Marshall,
Trimble & Mitchell. We interviewed Mr Robie Mitchell of the firm
of Mitchell a Pershing and Mr. Trimble of the firm of Caldwell,
Marshall, Trimble & Mitchell. While we did not fool that the em-
ployment of bond counsel should be on a monetary basis, yet we did
feel that we should find out from each of these men what fee they
would expect to handle this bond issue. Mr. Robie Mitchell made
us a written proposal under date of December 16, 1953 in which he
agreed to erform the schices required for a fee of '... a base
harge of £15,000 plus a charge of not less than no; per $1,000 bonc
fi/zs of 15), and not more than 50¢ per $1,000 bond (1/20 of 39,
depending upon the dif"cultita encountered and the amount of work
required, such per ha. irgu within these limits to be mutually
agreed upon.
Page 8
we figure their fee would be $58,000 on the present estimated
financing. We then discussed the matter with Mr. Trimble or
Caldwell, Marshall, Trimble & Hitchell, and in his letter dated
January 25. 1953 he agreed that his fee would not exceed
$50,000. Under date of February 5. 1954 the Authority passed
a resolution unanimously authorizing the employment of the firm
of Caldwell, Marshall, Trinble e hitchcll as bond counsel.
"From early in January until February we received letters
requesting opportunities to make proposal: for work by a number
or section engineering firms. Under date or January 18, 195 we
sent questionnaires to the following firms:
Bail, Horton & Associates of Brcdcnton
Maurice H. Counell & tssociatea, Inc. of Miami
Gee & Jonson of West Palm Beach
M. B. Carrie of Ninni
H. H. Green of Gslncsville
Bennett, Fleming, Corddry & Carpenter, Inc.
or Daytcna Beech
Rader Engineering Company of Mirmi
Reynolds, Smith & Hills of Jacksonville
Smith & Gillespie of Jacksonville
Williams & Kretzert of Senford
"Under date of March 15, 195h the Authority unanimously
authorized the Chairman to negotiate contracts with the following
firms for services to be perforMed 03 than in accordance with
their letters of proposal at a figure set opposite their re-
spective names as follows:
yesi n Su ervision Total
Section Reder Engineering Co. 3.7;} 5.75% 67505
1:
Section 2: Maurice H. Connell
e Associates and
PeLeuw & Brill 3.70 3.00 6.70
Section 3: Gennett, Fleming,
Corddry e Cerpcnter.Inc.3.gg 3.20 6.50
Section R: Reynolds, Smith & Hills 3. 3.10 6.70
Section 5: Smith a Gillespie 3.50 3.ho 6.90
Section 6: mil, Horton &
Assoc: ates and
Capitol Engineering Co. 3.90 2.90 6.80
In the nder contract the Authority is to receive a credit
of $25,000 for work prayiously done.
ADDITIONAL SERVICES
AERIAL SURVEYS
Page 9
"One of the first things that had to be done in order to
get the project under way was to have an aerial survey made of
the proposed route. The firm of Persons, Brinckerhoff, Hall &
Maodonald recommended that they employ the firm known as the
'Air Survey Corporation' of Arlington, Va for furnishing two
sets of controlled mosaic sheets of the Sunshine state Parkway
route from Hollywood to Ft. Pierce. The Authority authorized
Parsons, Brinckerhoff, Hall a Macdonald to obtain this survey im-
mediately by letter of acceptance dated January 20, 1954 in line
with a proposal made by Air Survey Corporation to Parsons,
Brinckerhoff. Hall & Macdonald under date of January 13, 195k.
Under date of February 5, 1954 we were advised that the Air Survey
Corporation had completed the aerial photography on the project
and that it had been received in their office in Arlington, Vb.
This work was billed as out-of-pockot expense by Parsons,
Brinckerhoff, Hall & Macdoneld as a separate item from the monthly
g:llings for work performed by Parsons, Brinckerhoff, Hall and
cdonald.
Our section engineers commenced their work immediately
after our Authority gave them notification to proceed, and it was
not long before the engineering work had progressed far enough to
necessitate the letting of boring contracts. All of the boring
contracts were Open to public bid, and we received two or more
sealed bids on all of them which were opened publicly. It is an
interesting fact to note that the total of boring contracts let
to date amount to $19&,666.50, which is $11,995.00 under the
engineers' estimate of $206,661.50. It should be borne in mind
that all of these contracts on borings were made between the
boring contractors and the section engineers, but since the
Authority ultimately would have to pay the bill, we felt that we
should supervise the letting of thesecontrscts Just the same as '
if they had been contracts let by the Authority itself to be sure'
that they were with responsible firms and at the lowest cost
possible.
Soil and Material Tastings
"We had hoped that the State Road Department would be able
to handle the testings for the Authority inasmuch as they have
facilities, personnel, and equipment. We therefore wrote the State
Road Department under date of April 21, l95h asking if they could
handle these tests for us. We were advised by letter on April
23, 195 by the State Road Department that'....due to our expanded
road program our Testing Laboratory is do swamped with work that
it will not be possible for them to do soil testing for your
Authority. We then wrote to the Attorney General under data
of April 21, 195h asking whether or not the testing would be con.
sidered professional services or whether it would be necessary
to take public bids before letting contracts for this type or
45
Page 10
service. We were advised by the Attorney acnersl's office under
date of April 27, 1954 that 'It sppears....thnt this is pro-
fessional, or in tho nature or professional work, and, therefore,
in my Opinion, it is not coworco by Section 0 (l3) requiring comp
petitivo bids. Nu haVo therefore followed the procedure of
selecting the most capable engineering firms to do the testing
and will continue to do so until such time as the State Road De-
partment's worL load has been reduced sufficiently to oncble them
to handle this work for us.
P131 rating
"Up to the present time no large printing contracts have
been necessary with the single exception of tho Brinting or the
Trust Agreement. Under date of April 18-19, 195 the Authority
published advertisements for nice for this printing Job, and on
April 2b, 195 the sealed bids were Opened, and the contract for
the printing or the Trust Agrccment rnd tho Official Statement of
the Authority which will be necessary in the marketing of the
bonds was awarded to the Rrsnalin Press of Miami.
Trustees and P3115; Agony;
"The selection of trustees and paying agents for a bond
issue or this magnitude is very important. The Authority con-
sidered the recommendations 0: the financial advisers as to the
typo of banking institution thrt should be selected to perform
these services. It was rccozmncndoo by the financial advisers that
an outstanding bank in tho New York area be selected as trustee
but the Authority felt that in addition we should have some
Florida institution act as co-trustec, and therefore at the meeting
of the Authority held in Gaincsville on January 22. 1958 the
Authority selected the Hanover Bonk or new York City and the First
National Bank of Miami as co-trustecs and at the some meeting
selected the Chemical Bank & Trust Company of New York City and
the Florida National Bank & Trust company of Miami as paying agents;
Since that timc it hrs been recommended that the Authority name an
additional paying agent in tho hid-west because of the large volume
of Turnpike Bonds which Will 00 held by financial institutions in
the Mid-West, and therefore it is the purpose of the Authority to
select as additional paying agents the First National Bank or
Chicago. No oios were taken loading to the selection of these
banking institutions inasmuch as the Authority learned in discus-
sing tinincial matters with other Authorities that banking
services were considcrci prcfessionul services and that the banks
selected should be those whose size, experience and personnel were
such as to lend divnnty and security and gusrinty continued service.
There has been scmo criticism or the Authvrity in the selection of
these institutions by at least one institution which was not among
those selected, but the Attorney General has ruled that the
Page 11
Authority is entirely within its rights in selecting the insti-
tutions on the basis or service rather than entirely on the basis
of price. The Authority is satisfied that the institutions se-
lected will perform these services at a rate comaensurrte with the
volume of work to be done, but no official contracts have been
signed with these institutions, nor will there be until after the
institutions have made a final study of the Trust Agreement to
ascertain the amcunt of services required and have made a proposal
to the Authority outlining their fee for these services.
ab-Leveljridsss
"Early in December various engineering firms approached the
Authority requestixg rpportunltie: to rake proposais'for the two
bridges, one over the South_Frrk 01 New River, and the other over
the St. Lucie Croas-Btate_93ne]. The previous authority had
planned through their cngincers, Howard, Needles, Tnmmcn 1nd
Bergendofr, to crrct bascule or draw bridges at these two locations.
The Authority felt that it should reserve decision on these bridges
until after the final report of Coverdale & Colpittc, hoping that
the final report would show sufficient earnings to enable the
authority to eliminate the necessity or having draw bridges on
the Parkway. When the final repcrt was in dated March 15, 195,
we were agreeably surprised to find that it projected sufficient
additional revenue to enible us to consider the elimination or
draw bridges, which are considered to be one of the worst evils on
any high-speed toll highway. The U. S. Engineers told the
Autho ty originally that it would be necessary to build high
levoi bridges with a horizontal clearance or 90 feet.end a minimum
vertical clearance of 80 test. This requirement caused the
Authority to have to accept the increased cost estimate provided
by the consulting engineers of $0,000,000 to take care or the
additional cost of those two h1gh~level bridges. Since that time,
hOcher, we have been given assurance that we can build the South
Bridge with a vertical clearance or only #0 feet, but it will
still be necessary to provide vertical clearance or 80 feet on
the Nurth Bridge. The Authority has considered the proposals of
three engineering firms for the construction of these bridges.
The firm of Hardcaty d Hanover proposed to design and supervise
construction or the St. Lucie Bridge for a combined fee of 6%,
and E. L. Pavlo proposed to design ind supervise the construction
of the South Bridge in Brewerd County for a tee of 7-l/. The
Authority reca:VUd a proposal from the firm or D. B. Steinman for
the design and supervision or both bridges at a fee or 6;. The
Authority anchortzcd the employment of D. B. Steinmsn to design
and supervise corztv'cr:cn cf both bridges for a fee of 6% at their
meeting held in inliunassce on June 3, 1954.
SerVLce Are.s
"The plans or service facilities for the Parkway are of
Page 12
necessity in a static state. This is caused by some ambiguity in the
leggusge of the Statute. The law reads as follows: '...the sale of
fo prepared and ready for consumption with attendant non-alcoholic
beverages.', which is obviously a form of restriction. Just to what
limit this language was intended we did not Know.
"In tslxing to many of the senators and representatives about
their interpretation, we found practically all of them said that the
purpose was to proVide as fine restaurant facilities as found on
other turnpikes but to eliminate the possibility of 'shopping centers
motels or hotels located on the Turnpike which would compete with
adJacent private enterprise.
"We, however, felt that this matter should be cleared up befoz
validation so that we would Know what figures to use in the budget
for financing. We trcrefere reerrcd the matter to the Attorney
General's office for an station on April 2!, 19 h. we were surprisec
and shocked to receive an cpznion on key 7, 19 which stated that
the eating facilities were to be restricted to 'wrapped sandwiches'.
'On page 27 of the Traffic & Berni Report it shows esti-
mated earnings from concession revenue of 359,000 the first year and
increasing to $1,028,000 by 1980.
"The loss of the rajor portion of this is anticipated if the
serVice facilities do not include ncrplete restaurants such as pre-
vail on the Pennsylvania and New Jersey Turnpikes and similar to
those planned for Ohio. Rew Yoru and Indiana.
"Our traffic and earnings engineers and our financial con-
sultants tell us that fine JerVice facilities should not be considers
'frills' for they materially help to induce traffic to the Parkway
and substantially add iwportant income even more proportionately
money spent in any other wsy.
"The cost ff the serVice facilities has been the subject of
considerable discussion and has caused some misunderstandings. Since
nothing has been decided as yet as to what can be built, we refer yet
to the traffic and earnings engineers and our financial consultants
and consulting engineers together with our bond counsel for their
recommendations "
TRAFFIC AND EARNINGS
In November of 1953 when the present Authority was appointed,
it ordered Coverdale and Colpitts. the Traffic and Earnings engineers
to continue "Part 11" of the work contracted for by the State Road
Departmen: on June 26. 1053. [his contract had been ratified by the
previous Ad3h0f1ty at i-n meeting on June 9 and 10, 1953. This
Part II" of the work and commenced in the summer of 1953 with the
h05,000-in:crview traffic survey taken by the State Road Department
staff and a large numter of temporary employees under the direction
of the Traffic and Earnings engineers.
Page 13
The work of processing the traffic data from the 05,000-
interview survey continued through January 1954, and the final
figures were compiled in February of 195 and made available to
the Authority at a joint meeting of the Turnpike Authority and
the State Road Department in Miami on Thursday, February 11.
These figures were included in the final report of estimated
traffic and earnings which was published under date of March 15,
195.
On June 9, 195a the Authority authorized Coverdale and
Colpitts to make a study of alternate routes from the northern
terminus of Project No. l to Jacksonville or the Georgia line.
One route was to be studied following generally the Coast, and
the other a more inland route serving Orlando and other Central
Florida cities. The deep: or these studies of relative traffic
and earnings expectancies is contained in a letter from Coverdale
and Colpitts dated August 27. 195.
PREPARATION nos PERMANENT FINANCING
The financial consultants to the Authority have been working
since early in 1953 in the preparation of a financial plan de-
signed to enable the Authority to secure upon favorable terms the
fUnds needed for the construction or Project No. 1 of the Sunshine
State Parkway.
These consultants have worked with our bond counsel and our
traffic and earnings engineers to the end that we have a Trust
Agreement which embodies the proposed Revenue Bond financing. This
Trust Agreement provides, among other things, for:
a) The custody and application of the proceeds of the bonds
with the safeguards and restrictions customary in major toll-
supportcd construction projects;
b) The initial issuance of an amount of bonds calculated
to be sufficient to provide funds for the construction of the
Miami-Fort Pierce Turnpike (Project No. l);
c) The issuance of additional bonds for the constructioncf
a Northerly Extension from Fort Pierce to Duval County or Nassau
County at such time as the Contracts essential to Project No. 1
have been let and certain earnings tests can be met;
d) The issuance of additional bonds for further extension
of the Turnpike or for needed capital imprOVements to the Turnpike,
all subject to certain earnings and coverage tests;
e) The custody and application of the revenue to be
derived from the operation of the Turnpike System, including cov-
enants relating to the charging and collection of tolls;
Page 14
r) Insurance of the Turnpike System, employment or engin-
eers, maintenance of proper records and accounts and investment
or funds of the Autnority;
Remedies or bondholders in the event or default or
failure or the Authority to abide by its covenants.
The contract with our financial ancultente provides that
they will also prepare an Official Statement descriptive of the
Florida State Turnpike Authority with "specimen copies" of the
bondc to he used in the financing. This work will be completed
as soon as validation proceedings are finished.
ENGINEEETNG PHASE
Early in January, 1934, the TUrnpike Authority accepted the
proposal of Persona, Eflneucrhnf, Hail a macdoncld for engineering
services as general consultants. Cowpl=tion or the traffic and
earnings and engineering reports was immanent and it was agreed to
utilize the alignment recommended therein with minor modifications
as necessary and desirable.
In accordance with the Enabling Act, it was decided to de-
sign a modern parkway with as many safety features as were found
feasible. "to dimln;ch the prcnent handicap and hazards and pro-
mote safety on the congceced highways in Florida." In accordance
with modern parkway deaign. a gently curving alignment with a wide
and varying median. particularly in the lower cost areas, was
adopted to reduce the dangers of "driver hypnosis, headlight
glare, and median collLSIOWa. Provisionur adequate shoulders on
roadway and bridgeanas eetahiiahed to provide continuous protec-
tion to traffic. To cvzid needieca traffic interruptions, fixed
bridges at the two anor neVigable screams were concidered and
round feasible. These and other features were incorporated in the
design.
To facilitate the design, accurate air maps of the line
were prepared. For financing purpocea. preliminary eatimatea of
costs or construction and coat of maintenance and operation were
prepared. To these were added estimates of cost of right of way,
legal and administrative coat and an allowance for contingencies
to determine the cost or the project. Design criteria were
essentially completed early in March.
Meanwhile, qualification questionnaires were sent to
interested engineern and the answe:e enc.yzed. As a result, the
line was divided into six megor sections and two sub-sections
(the two major bridged). B; the early ;;13 of March. preposalc
based upon a complete reanripcicn of Services had been accepted
by the Authority from six selected Section Engineers.
Page 13
The work of processing the traffic data from the 05,000-
interview survey continued tnrvuyh January 195, and the final
figures were compiled in February of 195h and made available to
the Authority at a joint meeting of the TUrnpike Authority and
the State Road Department in Miami on Thursday, February 11.
These figures were included in the final report of estimated
traffic and earnings which was published under date of March 15,
195.
On June 9, 195h the Authority authorized Coverdale and
Colpitts to make a study of alternate routes from the northern
terminus of Project No. l to Jacksonville or the Georgia line.
One route was to be studied following generally the Coast, and
the other a more inland route serving Orlando and other Central
Florida cities. The Soup? of these studies of relative traffic
and earnings expectancies is c ntained in a letter from Coverdale
and Cclpitts dated nLgust 2?, i954.
pm:me res Pmnum rmmcma
The financial consultants to the Authority have been working
since early in 1953 in the preparation of a financial plan de-
signed to enable the Authority to secure upon favorable terms the
funds needed for the construction or Project No. l of the Sunshine
State Parkway.
These consultants have worked with our bond counsel and our
traffic and earnings engineers to the end that we have a Trust
Agreement which embodies the proposed Revenue Bond financing. This
Trust Agreement provides, among other things, for:
a) The custody and application of the proceeds of the bonds
with the safeguards and restrictions customary in major toll-
supported construction projects;
b) The initial issuance of an amount of bonds calculated
to be sufficient to provide funds for the construction of the
Miami-Fort Pierce Turnpike (Project No. l);
c) The issuance of additional bonds for the constructioncf
a Northerly Extension from Fort Pierce to Duval County or Nassau
County at such time as the contracts essential to Project No. 1
have been let and certain earnings tests can be met;
d) The issuance of additional bonds for further extension
of the Turnpike or for needed capital improvements to the Turnpike,
all subject to certain earnings and coverage tests;
0) The custody and application of the revenue to be
derived from the operation of the Turnpike System. including cov-
enants relating to the charging and collection of tolls;
INDEX
Page
Introduction 1
Activities of the Authority 2
Financing and Costa 3
Statement or Enrnpike Coats A a B
Budget for Financing 5A
Excerpts from June 21, 195k Statement of Authority 5
Traffic and Earnings 12
Preparation for Permanent Financing 13
Engineering Phase 1
Right of Way 16
Legal Activities 18
Closing (Last Paragraph) 19
Exhibit I and Notes 20A-25
Page 16
awaiting advertisement for bids. As scoh as bond proceeds become
available, contracts will be advertised, and it is estimated that
construction or the project will be completed within eighteen
months.
RIGHT OF MAY
Shortly after the first of the year the Chairman of the
Turnpike Authority made arrangements for the organization of a
Right of Way Department. Several employees who were familiar
with right of way acquisition were recruited from the State Road
Department, and the Right or Nay Department office for the
Turnpike Authority was organized and set up in West Palm Beach,
Florida under the overall direction or the Chief Right of Hay
Agent for the State Road Dsraximent. west Palm Beach was chosen
as the location for the said hight of way office because it is a
mid-point between the beginning and ending points of the author-
ized Parkway, and because the central location could best service
the area as well as the section engineers, appraisers, etc. In
addition to the Right of Way Director mentioned above the Right
of Way Department employed a Right of Way Attorney, two Right of
Way Agents together with needed clerical help.
In addition to the West Palm Beach office, there was es-
tablished a separate branch office in Dania, Florida for the
purpose of immediate supervision of Sections 1 and 2 or the
Parkway. This office, or course, was under the direction of the
central West Palm Beach office.
Arrangements were made with major abstract companies
operating in the various counties through which the Parkway is to
pass for performing title work, and work incidental thereto, in-
cluding title searches and certificates or titles.
The State Road Department of Florida had designated and
dedicated a limited access Freeway extending from 27th Avenue in
Miami and in a generally northerly direction running Esrallel
with U. S. No. 1. This road was begun sometime in 19 5, and in
the intervening years only about three miles north or the Dade
County line have been constructed. The Turnpike Authority felt
that this would be the logical place to begin the Sunshine State
Parkway and run upon the existing line designated by the State
Road Department up to approximately Pompano Beach, from there
swinging west over the Seaboard Airline Railroad and continuing
northerly running approximately three ndles west of U. S. No. 1
all the way to its terminus at Fort Pierce. A detsied study was
wade of the right of way acquired by the State Road Department
for State Road 9 and of the property needed along this route for
the Parkway. Additional right of way is required from the terminus
at Hollywood Boulevard all along the route of State Road 9. This
is in addition to the right of way previously acquired by the
State Road Department.
Page 17
The section engineers under the general supervision of the
consulting engineers surveyed and located and made the general
determination of the right of way widths to be acquired for the
Parkway. As requests were received from the section engineers
the Right of way Department secured title information from the
various abstract companies and forwarded this to the section
engineers for their use in preparing proper legal descriptions
for the necessary right of way.
At the some time, the Right of Way Department utilized the
services of lecal realtors and appraisers on a fee basis to appraise
prelisdnarily the properties in the counties and localities in which
they reside and maintain their business. The appsisers work under
the direct supervisicn of the Director of Right of Way and the
Right of Ray Attorney It was felt that by utilizing the services
of local realtors LJC appraiiers that the property owners would
feel that the Auth)rity employed men who knew the local values and
problems arising on each individual parcel, and that these men
could serve as good-will ambassadors in each community through
which the Sunshine State Parkway passes. in connection with making
the preliminary appraisal. an estimate was obtained from the ap-
praisers for the cost of additional right of way necessary for the
construction of a feeder read from the terminus of the Parkway to
a point Just south of the Oslo overpass in St. Lucie County.
Also in connection with appraisals of properties involved
in the right of way for the Parkway, the Right of Way Department
contacted numerous other Turnpike Authorities throughout the
country and requested from them information concerning their em-
ployment of appraisers and a detailed study was made of the
replies received with a law toward following the best and most
economical method possible in employing appraisers for the final
appraisal of the Parkway. After consideracle study, consideration
and consultation it was decided that the preferable plan for em-
ploying appraisers for the proposed Parkway was on a per-parcel
payment basis and on a perday payment basis. Appraisers have
already been employed in Palm Beach, Martin and St. Lucie Counties,
and they have been furnished maps, legal descriptions, aerial
photographs and other pertinent data necessary in their work. Pro-
posals from appraisers in Broward and Dede Counties are now being
considered for the purpose of awarding the appraisal work for that
part of the Parkway which lies in Broward County.
The Right of Hay Department is working very closely with the
various section engineers through their field offices in securing
maps and other pertinent data so that the work of determining
the recorded title owner, appraising, negotiating and execution
of instruments will proceed without loss of time and as far
ahead of awarding of contracts as possible.
Page 18
As the right of way maps, legal descriptions and other data
needed for the acquisition of right of way are received by the
West Palm Beach Right of Way Department, each is carefully checked
and corrections made where necessary. No separate right of way
engineering force for performing this work was considered neces~
sary or Justified in view of the availability of the section
engineers who are trained and are experts in that work. The
Director of Right of Way and his staff examine all title informa-
tion, appraisals, so as to be able to recommend approval of
agreements and condemnation prior to final approval by the
Authority. As each right of way map and property description is
checked, a parcel number is assigned to each individual parcel.
In addition, the maps are checked for streets, roads, canal cross-
ings, railroads and utility lines. Each parcel is checked for
liens and encumbrances. Apprapriate instruments are prepared on
each parcel, and streets, Loads, canal crossings. railroads and
public utility lines are grouped together with the view in mind
of preparing resolutions fer the various governing authorities to
execute. Numerous revisions of maps and descriptions of properties
are continuously received from the section engineers by the Right
of Way Department. These are carefully checked, corrections made
where necessary, and the respective instruments revised accordingly
Survey and Location Maps were prepared by the section
engineers under the supervision of the Right of Way Department.
These maps were closely checked before they were filed and recorded
with the various Clerks of the Circuit Court in the counties
through which the Parkway passes.
The Right of way Department spent considerable time also in
preparing a compilation of figures on the original estimate on the
cost of right of way for the Parkway and cost based on the present
contemplated plans and on a reduction of the right of way to 300
feet. It was concluded from this study that the severance damage
cost on the presently proposed width of the right of way and on a
reduced width would be approximately the same.
In conclusion, the Right of Way Department of the Turnpike
Authority has been set up with the idea in mind to be able to
acquire all the necessary right of way required for the Parkway
in the most economical manner possible and without loss of time.
It is felt that by utilizing the methods proven best of acquiring
right of way by the State Road Department and other Turnpike
Authorities throughout the country that the Right of Way Depart-
ment would be able to secure all necessary right of way before the
various contracts are let for the construction.
LEOAL ACTIVITIES
Since the filing of the first annual report. the legal
affairs of the Authority have continued to be handled by the office
Page 19
of the Attorney General. One member of the Attorney General's
staff has an office in the offices of the Authority and has avail-
able to him the entire facilities of the Attorney General's office
in Tallahassee. These services have consisted of advice and
counsel in the preparation of various legal documents used in the
Turnpike Specifications; the preparation of contracts between the
Authority and its consulting and section engineers; work in coopera-
tion with the right of way division in the preparation of deed forms
and other legal problems involved in the acquisition of right of
way and handling all other affairs of the Authority of a legal
nature.
On June 15, 195 an injunction suit was filed against the
Authority in Broward County, Florida by various property owners
and taxpayers, the intent of which was to test the constitutionality
of the Turnpike Act and to erjcin the Turnpike Authority from so-
quiring the right of way of State Road No. 9 which is owned by the
State Road Departnent. This cause of action is now pending on a
motion to dismiss filed by the Attorney General's office on behalf
of the Authority.
On June 21, 195 an almost identical suit was filed in Palm
Beach County by various property owners and taxpayers, which suit
is likewise pending on motions to strike and motions to dismiss
filed by the Attorney General for the Authority.
A petition for validation of bonds proposed to be issued by
the Authority in the amount of $89,000,000 was filed by the
Attorney General's office in conjunction with the Authority's bond
counsel in the circuit court of Leon County on the 13th day of
July, 195. This petition has been attacked by way of motions to
dismiss by the State's Attorney for Leon County and by the same
counsel who represent the plaintiffs in the Palm Beach and Broward
County cases. Likewise, attorneys representing Governor Elect
Leroy Collins have attacked the petition as anicus curiae. The
State Road Department also intervened in this suit. Legal argu-
ments consumed some six days after which the court allowed all
parties to file briefs in support of their contention. The time
for filing of all briefs including reply briefs has now expired,
and therefore the validation proceedings are pending the decisiOn
of the court on defendants motions to discuss and the Authority's
motion to strike various parts of the defendents' answer.
The Authority feels that even thongh a favorable opinion on
the validation will come from the circuit court in Leon County that
this should be followed by a confirming opinion from the Florida
Supreme Court before advertising for bids in the sale of the bonds
to finance the project.
Probably the most discouraging thing that has happened this
year has been the long delay in the bond validation proceedings
Page 20
which has seriously retarded our progress in the sale of the bonds
and the commencement of construction. Prompt validation of the
bonds with the resultant sale during the past few months or at the
present time when the market is very favorable would have saved
a tremendous amount or time and money and would have made possible
the completion of the road, ready for use by the winter of 1956.
We are certain, however, that since the road has been declared
economically feasible by the traffic and earnings engineers and
since the Authority has complied with every detail or the Turnpike
Act, the bonds will eventually be validated and the project
commenced.
Much of the data contained in this report is from separate
reports made by our varicus technical advisers.
As soon as a favorahle decision is received from the courts
on the validation proceedings, advertisements for the letting of
the contracts can be published, the contracts let and actual
construction commenced.
In compliance with the Turnpike Act and the request of the
Governor, we have asked our traffic and earnings consultants to
conduct a survey on two routes extending from the northern terminus
of Project No. 1. That report is promised to be completed by them
before the end of 195a.
The Authority takes this opportunity to express its thanks
and appreciation to the Governor, the Attorney General and his
start and the officers or the State Road Department for their
continued cooperation. The Authority will persevere in its efforts
to obtain the objectives envisioned by the Legislature in the
Florida Turnpike Act.
Respectfully submitted,
FLORIDA STATE TURNPIKB AUTHORITY
VB 0 ems, SW
35
20A
RXHIBII~ -l CMARISO! OP COETS 0F VARIOLB mm moans-£8
Flor ldn
Turngiko
111103.50 of Turnpike $ 100.8
Construction Cost (excl. Contingency) 71,500,000 (1)
A) Cost per .110
1 Total 709,325
2 Actual Construction 577.133
3 Right-of-Hny 61:,L8!+
It Bnglnaering h'l,6i9
5) Utility Adjustments 8,033
6) Miscellaneous 11,657
Contingency Reserve
2.) Mount. 7,100,000
8) $ of construction Cost 10$
Bond Issue 89,000,000
A) Bonds per mile 682,937
hunched Construction Period 18 months
Interest hauled
A Amount 8,338 750
B Rate 3 3/ (2)
C Number 01 Months 30
Financing Costs
A) Bond Discount 2,225,000
1) Dollars per bond 25.00
B) Miscellaneous (legal, Printing,
Fiscal .dvice, Bond Prepara-
tion, etc.) 300,000
0) Tom Financing Costa 2,525,000
1) Dollars Per Bond 28.150
Deduction for Interest
was of Construction Fund 168,750
(Continued)
01110
Tamika
2hl.h
t
257,595,638
1,067,090
929.53)
#6381
78,2h8
8,959
12,8142
25,760,362
10$
326,000,000
1,350,165
35 maths
10,611; 167
3 h2/170
7,82%,000
' 210.00
a 333%?
26.o
6,700,003
Page 21
NOTES TO EXHIBIT 1
COMPARISO 0F COSTS OF VARIOUS TURNPIKB
'-'"_'""'PRGIEUTS"'"""
.--
..n --
Notes
(1) $500,000 for reimbursement of State Road Department
added to Engineer's estimate to make issue comparable
with others shown.
(2) Assumed as of this date. Actual figure to be determined
at competitive bidding.
(3) These items apparently included in Construction Cost.
The Kentucky Turnpike will be forty miles long, the one in
Massachusetts 123 miles ltng, the Indiana Turnpike 156 miles long,
the Ohio Turnpike 241.3 miles long, and the Florida Turnpike
100.8 miles long. It should be borne in mind, however, that the
Florida Turnpike will have in addition a newly constructed feeder
road coming or! of U. 8. No. 1 above Ft. Pierce, and the cost or
the Florida Turnpike includes not only the cost or that feeder road
but the improvement of State Road 607 north or Ft. Pierce. Our
budget includes the cost of these roads in addition to the 100.8
miles or actual Turnpike.
It is easier for the public to understand the cost of the Turnpike
when it is converted into the cost per mile. This, or course, is
accomplished by dividing the total cost figure by the actual
number of miles. Also in this study we set up separately the
construction cost, the contingency reserve, and the bond issue or
tota1 financing cost.
mammor: cm
The construction cost or the Massachusetts Turnpike is $l,h79,3hl
per mile, the Indiana Turnpike $1,3h5,057 per mile, the Ohio
Turnpike $1,067,030 per mile, the Kentucky Turnpike $786,250 per
mile, and the Florida Turnpike $709,325 per mile. This cost in
cludes the actual construction, the right or way, the engineering,
the utility adjustments, and an item for miscellaneous other
expenses, but does not include the contingency reserve nor the
financing costs.
The actual construction costs are (excluding right or way,
engineering, utility adJustments, and miscellaneous) for
lasaachusetts $1,231,292 pe: mile, for Indiana 1,129,102 per
mile, tor Ohio s 29,520 pcr mile, for Kentucky 56,250 per mile,
and for Florida 577,133 per mile.
Page 22
gage on HA!
The southern portion or the Sunshine State Parkway from Ft. Pierce
through Hollywood must of necessity be built close enough to the
cities on the so-cslled "Gold Coast" to relieve the serious traf-
fic problem presently incurred by residents and tourists travelling
through or between cities in this area. In order to be feasible
the road must be built close enough to these cities to enable the
motoring public to enaoy the speed and safety of the Turnpike with-
out going too far by detour to use the facilities. It therefore
follows that the right or way for the southern section or the
Sunshine State Parkway through this "Gold Coast" area is much more
expensive than it would be if it were possible to build it out in
the Everglades or through cheaper land. The right of way cost per
mile for the five turnpikos presently planned are as follows:
Massachusetts $81.15 per mile
Ohio 46,&91 "
Kentucky 50,000 "
Florida 6H,h8u "
Indiana 61,256 '
ENGINEERING COSTS
Engineering costs are usually compared on a percentage basis, but
in this study we are presenting "hesc costs both on a cost per
mile and a percentagccr the construction cost On s cost per mile
basis the engineering fees of Kentucky are 366 250 per mile, of
Massachusetts $102,512 per mile, of Ohio $3 £8 per mile, of
Indiana $103 90H per mile, and of Florida u7,619 per mile. These
costs converted to a percentage of the actual construction are as
follows:
Ohio 8.55
Indians 9.2%
Kentucky 10.1%
Massachusetts 8.3;?
Florida 8.
UTILITY ADJUSTMENTS
Unfortunately for the Turnpike Authority the Legislature saw fit
to draw the Turnpike bill in such a way as to require the Turnpike
Authority to pay for the costs or removal and relocation of prac-
tically all of the public utilities (telephone, power lines and
water lines) unless these utilities were actually in the right of
way of an existing road which is to be taken over by the Turnpike
Authority. The costs for utility adJustmcnts for the five states
are anticipated to be as follows:
ptnd pun enaqenaq aqq Aq pentagon or Renew Btu; 'sqeoo Sutouuur;
pue anaosaa Kouaautquoo equamqanrpc thttqn 'SuraaaUISua 'xeu
go qqrJ Fuvpnrout wanna uctqrtaqquoc an: (IE surequoo qotqu put
pauoaaoq at notqn qunouc qaqz a; nnaar puoq aq; JO aunoue Iago: oq;
anssx 6363
ioor uptdota
Snnt cuvrpux
g'fr aaqocnq39332x
)O'OI otuo
SB'OI Kxanauax
:8UIAOIIOJ an:
gooIJaa aequaoaad oz poqaaauoa uaqn pun asoo uotqonaqsuoo teaoq
aqq JO assauaoaad e auaeaadaa asanoo JO sanaasaa £ouautzuoo eeaq;
ooo'oor'L aptaota
oootnoSe caaaenuoeesvu
oSa'9oa'E Monauax
2920 LSa oruo
uuntpuI
ooo't t'oE¢
:auotto;
av 91 Kpnqs era: 81 DOJOAOO snatduanq asaqq Rq dn :9: anaeeaa
Kouasurquoo an; 'cpuoq an: JO auouoatzaa an: on atqatraAa a:
quad: gen 31 uotqsno stq: pun saaeu19ua car pun Auraoqqnv an: xq
peanutqeaaopun oq qou tttu qoaroad an: seq: saean puoq an: sauce:
on anoua atqeextc BAJBBOJ KauaSuyquoo u punumooaa asuuta 'xnuxaua
0304s autqsuns aqq :o apuoq enuanea oqq Sutceuoand u: peacoaaaut
aq tttn BAGIIBQ on oqu caanaq squnmqeenut pue axuaq 'aatuud
auoo aouuancur aq: 99 none saanq puoq peaaorastqdcs JO apnataav
aqq Suzanna squeqtnsuoo toroueutz nu; sotouaSuIzuco J03 aaaac
~04 E dn :98 04 aanquaA assuranq zuapnad Aaana JO sand sun at 31
RAHESEH ADHEONILNOO
'epraota 40: LGgttt
pue nuvrpux JOJ cru'gat 'sqqaanqoessou do; 0939tg 'oruo Jo;
aweatt xanausx Jo: attu dad ooSLt aq 0: peavwrasa adv swan:
snoauettaostm JO apnatztnm a SUIJBAOO sasuadxa paqaoottaun aqum
szsnzaxa Hormonumsuoo snoauvaquEEi
u Esng enraota
aatgc aaaoanuoesevu
u S a Buetpur
. a 3'9 IXOWQGSX
atru and 5969 otqo
Page 2
During this year the Authority held twenty-one regular or
special meetings, including a joint meeting with the members or
the Board or the State Road Department. The latter was brought
about of necessity to request the necessary financial aid author-
ised by law in order to accelerate the preliminary phase of
operations.
In summary, the accomplishments of the Authority since
November 11. 1953 are highlighted by the events which have
brought about progress in preliminary planning to a point where
the design phase or the turnpike project is almost 95 completed.
In fact. conclusion of this stage or operations has been delayed
only as a result or pending litigation over bond validation pro-
ceedings which has prevauted permanent financing of the project
and thus disrupted the impetus 01 an accelerated program which
would have seen the beginning or construction within this period.
acnvrnm or. was amour!
The policies evolved from the concerted etrorts of the
members of the Authority have all been predicated toward the goal
of placing into operation at the earliest possible date a turn
pike project comparable to similar projects in other states. To
this end we have contrived to base all major decisions on antieio
pated results which provide maximu: benefits to the general public.
consistent with sound economic principles.
In attempting to achieve the objectives stated above the
Authority set about hiring expert advisers whose services have
provided invaluable aid to the Authority. The events leading to
this action and the detail in connection with their employment
need not be repeated here as they can easily be obtained by
reference to the 'Statement by the Authority', dated June 21,
1953 which has been made a part or this report.
The results of this decision began to take concrete form
soon after our traffic and earnings engineers, Coverdale and
Colpitts. compiled a comprehensive report published under date
or March 1'. 195a. Having determined the economic feasibility
of the project, we called together all or our advisers and set
about proceeding toward our goal with a well planned scheme of
Operations intended to accelerate the preliminary stages initial
to construction.
First or all, the Chairman or the Authority obtained the
legal opinions or the Attorney General's office to determine
whether or not the Authority was within its legal jurisdiction in
requesting advances from the State Road Department to meet an
accelerated program prior to the sale or bonds. Having been
informed that the intended scope or this program was within the
Page 2&
out only on appropriate vouchers representing actual cost of the
individual items as progress is made. Ohio has marketed their
bonds at an interest rate of 3-i/u, Indiana marketed theirs at
3-1/25, Massachusetts marketed its at 3.3% and Kentucky at 3.Q§.
We will not be able to market our bonds until after the validation
proceedings are completed and all law suits which mi t affect the
issuance of the bonds properly adjudicated. While t a Turnpike
Authority Law passed by the Legislature authorizes the Authority
to market its bonds in any way that the authority may deem advis-
able, the Authority itself has decided that they will be marketed
in public competitive bidding. If the validation proceedings are
completed in the near future we hope to market our bonds during
the very favorable bond market which exists today and which may
not exist a few months hence. That is one of the reasons why we
are anxious to complete validation proceedings as scon as possible
in order to gain the advantage of a favorable bond market and hope
that we can get an interest rate comparable to the quality of bond
which we expect to offer. It is too early to Judge exactly what
interest rate we can expect. Florida has never been able to ob-
tain as low an interest rate on bonds originating in this state as
have other more settled areas such as Massachusetts, Ohio, Kentucky
and Indiana. We think it is fair, therefore, to anticipate that
we will be fortunate to market our bonds at public sale at an
interest rate somewhere around 3.75%.
gunner) Imssssr
when the bonds for a turnpike are sold interest thereon commences
immediately. There is of course no revenue from the turnpike to
pay these interest charges until after the turnpike is completed.
The bond buyers therefore require that there be an amount set up
and held by the trustees to pay interest during the time of con-
struction. This interest must of necessity come from the proceeds
of the bond sale until such time as the turnpike is open to traffic.
The amount of time therefore that is required to complete the
project is of Vital importance, because the sooner the project is
completed and revenue starts to flow in the sooner the revenue will
catch up with interest on the bonds. In the various trust agree-
ments there is an item which is sot aside from the proceeds of the
bonds to pay interest during the time of construction. This is a
cushion for the investors to bu sure that the bonds will not be in
default as to interest before revenue commences. This amount of
money is called "funded interest". In the case of Ohio this
amounted to $40,614,167 and contemplated interest for #6 months.
In the case of Indiana the funded interest" was $37,975,000 and
represented 6-1/2 months. In the case of Kentucky with their
short forty mile turnpike, tho "funded interest" amounts to only
$3,272,500 and represents thirty months. In the case of
Massachusetts the "funded interest" is $27,604,500 and represents
G2.
rage 25
#2 months. Our engineering has proceeded so well that we believe
we will be able to commence actual construction immediately after
the sale or our bonds, and therefore our Financial Consultants
have agreed to reduce the amount or "funded intereot" for Florida
to only $8,3N3 750 which represents interest on the $89,000,000
at 3-3/35 for thirty months.
would come
It has been proven by experience that a considerable amount of
money is saved over a long period of time by marketing the bonds
at what is known as a discount. In other words, the bonds are
sold at less than par, and the difference between that figure and
the par value c: the bonds represents the profit to the financial
syndicate underwriting 'hr bond issue and to the hundreds or finan-
cial houses and bond dealers and banks who will participate in the
retail distribution of the bends. All or the bonds will be $1,000
denomination as have been those marketed by the other states under
study. Kentucky was able to narzet th-ir bonds at a very low dis-
count, but an explanation is perhaps warranted in this case. The
state of Kentucky agreed that the entire revenue from their turn-
pike would go to the paying of interest and the retire-ants of the
bonds. In other words, the state of Kentucky guaranteed the main-
tenance of the turnpike. In the case of the Sunshine State Parkway
this is estimated to amount to $1.300,000 the first year and over
$2,000,000 by the 25th year. In the case or the Florida lurnpiko
there is no credit or faith of the stats of Florida pledged behind
these bonds, and the entire'costs of maintenance mus be borne by
the Turnpike and paid for by it before the net revenue can be used
to pay the interest on the bonds and provide for their retirenent.
The other turnpikes marketed their bonds at a discount at $22.50
per bond for Indiana, $22.50 per bond for Massachusetts, .00 per
bond for Ohio. we say be optimistic, but we have reason believe
that with the quality or our proJect we may be able to finance this
issue for a discount not to exceed $25.00 per bond.
63
Page 3
limits and meaning of the "Turnpike Act", the Chairman then re-
quested and obtained approval from the officials of the State
Road Department to continue to pay the eXpensea of the Turnpike
Authority Until the bonds are sold at which time the State Road
Department is to be reimbursed in full for all advances of monies
made to the Authority. Secondly, our general consulting engineers,
Persons, Brinckerhoff, Hall and Hecdonald, were instructed to
coordinate the efforts of the section engineers in developing
designs, right of way maps, initial sub-surface explorations and
soils testing and other related work.
We also instructed our financial censultants and bond
counsel to proceed as rapidly as possible in preparing trust in-
dentures and other related documents pertinent to the sale of
bonds. In this connection, Ceapzte cre fact that our total bond
issue is small compared to :23 issues of similar projects, the aim
of the Authority and its advisers has been to bring to market at
public sale a low cost bond issue.
Since the aforementioned decision took form, the sccomplish~
menta of all those concerned has been most gratifying. We are now
at a stage where initial construction can take place as soon as
validation proceedings are favorably resolved. In summary, the
design phase is in its closing stages; the trust indenture is
completed and bonds ready for sale, all preliminary work of the
right of way department such as title reports, appraisals, etc.
has been done; our contract administration documents are all in
order and all parties interested in bidding have been rated and
classified; and design tracings are nearly all finalized and blue-
print reproduction can take place immediately.
We have been criticized by some factions for allegedly
wasteful practices concerning the overall estimated cost of this
project. Because of the importance of this project and because of
the interest in its success as evidenced by the general public, we
were prompted to make a study of the costs of our proJect as com-
pared to other first class toll roads presently under design,
financing or actual construction. The results of that study as
shown by Exhibit I do not in any degree Support the contentions
of our critics. This exhibit shows a comparison of costs of vari-
ous turnpikes on a per mile cost basis. It will be noted that
the cost for Florida is less than half that of Massachusetts,
almost half of Indiana's, about 70$ of Ohios and considerably
less than Kentucky's.
FINANCING AND COSTS
Bonds to finance the project have not yet been issued, yet,
a great deal of preliminary work has been done. This has been
possible through the cooperation of the officers of the State
Page A
Road Department who have advanced funds to the Authority for pre-
liminary operations preceding actual construction, as provided
for by the statutes. All funds and payments for services
rendered will be reimbursed to the State Road Department at the
time of sale of bonds. In effect, this produces a savings of
approximately $275,000 of interest per month prior to the sale of
the bonds.
The following tabulation represents the actual expenses of
the Authorit during the preliminary phase of operations: (See
page RA and B)
The preceding statement reflects the expenditures accrued to
date by administration. As shown, even before the Authority came
into existence the State Road Department had spent $27H,259.ll for
studies related to the turnpike project, which sum is being
charged to the Authority. The previous Authority members incurred
expenditures in the amount of $116,079.12, which we are obviously
charged with. Our administration has incurred costs amounting to
$2,261,253.93 which is approximately 85$ of the total cost to date
of $2,651,592.16. Considering we started with practically nothing
and have brought the project to within 90$ completion of the pre-
liminary phase initial to construction, we believe the costs
incurred by this administration reflect economy-wise prudence and
sound administration. Needless to say, we are grateful to the
officers of the State Road Department in making possible our
economy minded operation by advancing to us funds by which action
the Authority has saved approximately $2,200,000 in interest
payments.
As of September 30. l95h the State Road Department's latest
tabulation shows cash disbursements of $2,l76,569.03 on behalf of
the Authority. This sum includes the $27,259.11 previously
mentioned above. Therefore, the actual cash disbursements on be-
half of the Authority as of September 30 amount to $1,902,309.92.
It may be interesting to note that administrative and
organization expense of $87,29u.37 amount to only about 3% of
total costs to date and only about 16% of the total budgeted amount
of $550,000.
The project presently being designed is the one studied by
the traffic and earnings engineers and on which their estimate of
earnings is based. In line with the experience of toll road
authorities in other states, our general consulting engineers
have revised our estimate to meet current construction conditions
for the intended scope of the project instead of having below par
estimating which would compel additional borrowing in the future
to complete the project.
mm mm, 006'!
I M13114?! 8mm:
8:1 one and Wages
Profanionnl Ber-Vices
Travel and Bab-istenne
Stationery 3. Office Supplied 1,039.32
Printing. Binding, Phono-
sut a. Blueprints
BED Ruin-ant Capetown:
TOTAL W! W);-
KING, 008T & FEASIEILIIY
8mm
man AND W:
Salaries and has.
Section Minoan has
Explontory Boring Coats
Soils laboratory Costs
General Cono'thot-co Fees
Inuuxrol.ty Inourzol.Ig' runner-l iv
an Irior mucus men. mm Auth.
11/11/5 to
IOZE 2h
(M)
to 6111/53 to
6/10/1223 11/10 53
¢ $
22,516.62 17,800.19
213,636.63 61,621.30
18,518 2b 23,261.22
216.73
19.312
41:32.03: -al
211129111. 1251___022-92
Aarisl Photography and Suney
Blueprint 1 Reproduction
MAL 1:316! AID
3mm
RIGHT or HR:
Marian and wage-
Profeoaioml Sax-vices
Travel and 8 :boistenoe
275.19
Office Rental I Janitor Service.
lephoac, Talon-6pm Poona: I. Utilities
MAL RIGHT 0? HA! COSE
Whig
(continued)
66,338.05
66,3,2-05
3350-00
1623.393-93
17h 852 15
row. Coot.
to
12:31am
3,550.0
1.523, 3.97
17h, 52.1?
99)
sum or mm 0031's
emsmm 55
Incurred by Incurred br Incurred by
8323 Prior Previous A-Ith. Present A1111 Tom Coats
to 6/11/53 to 11;11/53 to to
6/1011253 ngmzsa m/ggsh 10(2151:
WWW AND ORGANIZATION:
Salome: and wages 5,883.61 331950.37 38,833.91
meessioml Services 500.00 15,339.90 1,539.65 6,689.51
Travel and 8-Ibslsteme 8213.167 6,128.78 7,553.2:
stationery a. Offzm r;u;p1.1es 378.83 2,031.50 3,066. :
Printing, Binding, Pmuztnt
a. Blueprints 62.20 3,971 61 h,o36.81
8RD Equipmnt Opemticn 293.37 558 72 852.09
Office and Equipment 50:11:11 3 ,727.1s2 3,727.h&
Office Equipment :1 Fixtama 1h, 2.1.06 1h,622.o(
Telephone, Telegraph 6 Image 5,663.15 53:63.15
orncuu Bond Premium; 5. Insurance 1,253.66 1,253.66
Clipping Service 113.70 113.70
Inga Advertiacmnt, Court Fees
a. Stencgraphic 351.20 351.80
Conference Expense. 81.79 261.79
Transportation, height & Cameo 355.03 355.08
Office Equtpmnt Maintenance __ ___. 2kg £.2
MAI. ADMISTRATICH 8:
ORGANIZATION 500.00 10,183.38 76,011.22
t s I g t
"m 060.11 115,03: .*2 4261,2532; 2,651,202: .16
Page 5
The most notable fact about this administration's operations
is the assurance that the initial budget will not be exceeded. In
fact, for the past six months, monthly revision of construction
estimates by our section engineers has yet to exceed the costs
reflected by the estimates of our consulting engineers.
Any discussion at this late date concerning the increase
between our current estimate and estimates prepared by engineers
for the former Authority is purely academic. So much controversy
over the fact has taken place that it is now public domain. How-
ever, we would like to point out we have strived to build for this
state a first class toll road. Thinking has always been along this
line. Therefore, such decisions as preference of high level
bridges over draw bridges; complete restaurant facilities over
snack bars, etc. have been made only after we learned how much of
a financial asset these features would be.
The following is a breakdown of the Authority's capital
budget. Despite criticism to the contrary, we believe it to be
representative of a sound and economical project designed to meet
future expansion. (See page SM
EXCERPTS FROM STATEMENT MADE BY THE CHAIRMAN OF
THE AUTHORITY JUNE 21, 1954
"We found in our study that the previous Authority had a
preliminary traffic and earnings report made by an outstanding
firm. Coverdale & Colpitts, and we interpreted the exchange of
letters between the Authority, the Road Department and Coverdale
e Colpitts to mean that they wanted them to complete the second
phase or their work, which would be the comprehensive report which
was published under date of March 15, lgsh. We told Coverdale &
Colpitts to expedite this report as rapidly as possible so that
there would be continuity and no delay between the administrations
of the two Authorities.
We next found in reading the minutes of the previous
Authority that this Authority was about to engage the firms of
Blythe a 00., Reynolds & Co. and Sullivan, Nelson and does as
fiscal agents. we had fresh in our minds the Supreme Court de*
cision on the 'Mismi Case' wherein considerable question had been
raised in the Court's opinion as to the propriety and possible
legality of financial firms acting in a dual capacity as fiscal
agents and negotiating privately for financing on which the same
fiscal agents would be the recipients of substantial financial
gain through the marketing of the bonds. Our Authority immediateny
passed a resolution stating that it would be the policy of the
Authority to market the Turnpike revenue bonds only through public
sale, and we therefore looked for independent financial advisers.
Thorough research into the qualifications and experience of
wmzswzng
Cost of Ur e undnr Soction Engineer- *
Section
Section
Section
Section
Section
Section
aw
C" -.n Tu)
mucosrorm-monmcms
High Level Bridge at South For): of Nov River
High level Bridge Q1: St. Lucie C-nol
Phoder Ro-d U.8. #; to Route 50?
Improvement to Route .507
Subsurface Exploratime and Material Testing
Commie-mom
Utilities 8- 81:11:13: Relocction
Signs, Tntfic Lines 8: Markers
Maintenance a. Police Buildings
Administratiw Building
Service Areas
Toll collection Building. 6- Bauth
Lighting
MAI. 0081 O? W
Engineering & Architect'rnl Service-
Adninistntion & Legal Bewieea
Hsintenance In Operating Equipment
Right-arms" in Cost of Reg 1111118 Bight-otJhy
Non Beau-ring Cost- to Butabli-h Administration
MAL COSTS mom WGBMIB a m OF WORK!
Contingencies (10%)
10ka arm's WITHOUT 0061's 0? FINANCING
Interest. During Construction
(8%.3hh.ooo less $h50,ooo interest earned)
Fincnchl Costa 5. Bond Diocmmt
Preliminan upon Reimbumblo to 8.8.1).
TOTAL (1351 OF FINANCING
'J
§§§§§
v
a
0
3-: .0
953039
run):
g Ifgxod
F
§-'"_
§§§§§§§§ § §
f
5.323
.§§§§§5§
§§§§
ig§
§
VI
s§a§§
§§§§§
:E 9
w
§§ §
3
§
§
3:!
33
§§
a
g F'
§ §
' Includes Clearing and Gmbbins, Grading. Huck Blanket 8- Spa-lasing,
Dr-ime, Fencing. Guard 3-11, Paving. Detours and H-intonance of Traffic,
Streun .na Ditch Relccqtion, (work done bv Authorities contractor) and
Structures and Interchange Bridges.
PAGE 1
I El h--,eA, 1 I-Irl The~~~~~~~ ~~~~ ...r.d ..t.u.pk.At.it eewt tini3 i Nlp c"al reot ejern rgru aeduil h frtf year~~ ~ ~~~ of:eaisb h ebrso ~entoiyapiTed Afiedrn orarln t'iin
PAGE 2
dim jonlwewuh. v the tt ndn thm, ffnac losla t eapocedtett ra ihteofe oeg t ..i ......e atajIt e / o 1 fth nt te bd i. wt h nertnigta hy ol ahegg Plrd imt i hmadwt utnrudrtnigta h '9d53 l emaktda uli aeadtatnihro h ;ir -ol be It oe obnfcfnnial aog h rai PaUa ofay1n2 aeo sniae nae i h ucaeo
PAGE 3
PP -PP >PP P. -L 'd m n n ~ ~ ~ ~ ~ ~ ~~lth 1on t-.eep1-,o mlo gaystf nieead were ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1 Itta ielo:n o raerrgavc othe Itt l ad
PAGE 4
4+
PAGE 5
"Oe f hEfiBCth~g tltha t b dnli odzr t
PAGE 6
ervice. We were ate of April 27, essional, or ir .D t:y opit-J an, it -r.:t 1 51ve 10 da electirig the rnr-n m;l W11] crrtt]r:uc >artraent's L.;ark 1 :handic th-s wo Pri r.ting ilTrs +. -. +.1..,.
PAGE 7
ly 1g, tAuthority ~ ~ ~ ~ ~ ~ ~ ~ h. .s ......... isMgt n eecig h is
PAGE 8
P-g 12 ....... 8,00 ......0 00 ~ ~ ~ ~ 7 10000,0.00 0.00 0000 lh '000' 00000.0 000000 ne00000y000. 8,ti 03a-e Th0,000. 0.se 0,000m 0.00u0 00 00h00 0 80gua d. Ihtte T .r 00000,0000 0 .0 000 0re e a ready 0or 0pt0on ... ..0 ........ beverage,.h Zhic -11vosy omo esrejn Js ow limi thi laguag wa Intr~dd wedidnot rhw
PAGE 9
P-ga. 13 The weerk ef" per-ce:!:15ng t~-e tv-iTie cart's fro-t the 4C5,000irterview survey c:-:.ta:au.:-i te..' -. --i. J: 01:ary 19 | -:.r-1 t ".16 fj ym1 flirures were curi.1l en .' n 1:,..l-reii. :/ af' ~. i;: 3:t nn ~ :;ir.cac-21;. 'l 1:31.: t a the ja: L;i:.ri ty a t '' j : in--. n,.e t irr .'n' thc. Turnpir .:'0.172.:2'. ty r rol tha St;>t.: Pro:! De prt:.ic.nt i r, 1-1:517:[ .n 7%030-17, Fat 'u.-ry 1-j. Iheae fi BUrt 3 %.70 1.||''~.U'ite | -1 --.0.0. O r-:'3 I -k.f' -,riz.f -."..;t 1..:31.00 traffic tri.i 2:tri.irgs whl i:t w:10 ruiliehc.:] imde:r G--tc. of Bhech li 1991. cn Tune o 195 the lunN3ri e es!: sr 7:n C::verele and Calpitts te r:At :' stay ei 2..terne.tt: r:sures fra't tht: n::ethern tur..liriurj of Pr::6teL fe. L t.c. Jtack: "r.wil'.e er tile Dempi:1 lir.e. One re:ute me t:. a. a'aj -.al. E :..1: 6:--:1:gralrthe Crst and the cth:!r a c::x tr.: -:.: ..I ,:e: y .t., -C:-.!.:-.no -.r.:: Cther Ct:r.tr-:,1 F1:rirm ::! ti.:;-s. 2:1.. .---.: ':::. .. alusta _f r..:lti.-!ve trgffic and enrrali,--ci e geei:-.' .. -.:. .: : .,t-..Li:ed al :: 1.:.i:t-,.e e...r. t2.:.are".110 ent1 C:. 101t ts l'l-.,:.:1 .A isti r:. C .M .. E MID:ITIO)] I'Cd 1:~|Njl:UUNI' F-}1;'.NCT[.iD Tilt fir1ar:ci:-.I caraniitn-,ite t.: the :-:aiberity have oc:cn working Sit~a0c' CT'' y l'i 12-_13 :I ri tjic. p:N.-:tP'21.1 Il of :i'it:7.rief :11. )113ri 60Sir|Tiert t : ( ri::!:le' '.|:e: .:u--_17. p i t .:.-. :-. .-'rgarappy]-.] fun -ta .earicd fe: Gu: c.:a::,tru -.-.,: 1-, i e .L 10 i :.0 the Eur:Chiria Blaid ??ire-L'l-!y There e::ncul tats Ir.ve r:re:-l t-.'itti eur bc.nel :: u or bl''afflC r'.it-:1 enPPi 1: 3.:. _1131[:66-00 i: 611: C n t 7,r. 117 -r rurumrat '::his:1 c..r-:.:~1e a tjte 97:-.7 :n,....1 Mer. E 1.i C 63101: 'Itin Tt'uut gree:-leitt pn. vil:3 .c iter... .,t:h...P th r ...r : a) 'l'he cust:.:1y :-uni am '.ont '. e.rt e th. Ur--r0 :0 the ad with thu elf's-upr in ,: n:.. c [-7_00-1 313 c ., ...r t. SUpJ---art-.:ta C :":t'aG Uru0 ti Crj f:-;-c j C:' a j b) Ths. Italt : 31 _smi::..,,.:s c -' :_n e .1:rt of iso e ~.eul;iten te be sitiTiciot t,, pavisc aus, 's ne ttruce:11 of _a j-lia'|13 -F :-rt l.-..res: Turrpil::: ( p_, je.::t 7: , ) c) 'It3 nal:alce ci' n 1 ij ti.. s; i honde c.N1::tract~c:i rr 0 Northerly e'::te:ision f:-ar, F..t.t flece ] c....? Ly or N:103su 0097.0) dl ELICit ij -16 as L|-.g. c..-t-i r-igt3 c:M t have hoor: 101; rr..i t;t yt:-_ir. c-o 1a er:--: c r b ..t il '1'.1... tsamerice : 2 71.t ..u-1 --. ther extcmc1-:2, Of the Turr;pl.--C 01' 17. O r.ee ( -----3.t--ri X.i a al'l sub.;c et t-: GertM r. ...ar -ca..; :.1. ; c-)' TheCU-,te.fi ;:.1:,i -L' r.111 .,f h 1 e .t. GP.0110t! "'elatitei. _, t 1:1 6:2 -,,-i_ I ge
PAGE 10
-t .l.+ I") Iner:21c: .f Cli-; tir -.. ;~!:,:lte::r:, el;r:pi -yrterit 60 r::igiliC!(.:'f-i "|s! '. I st... ri la11' -.. :'el |JP i _0-:1' i'-: -.l' .1 -tu 'I s !! I i .1 ."'Eleri a -f O-At'05 Of t 30 d:t21-.li fil jhille...:11:a of i all .h-: 1.-.. .it iri die ..re:ta .L' leftil l 1-l' fa:.iure --I the "utit : r t-.:..: L. t :1 t:i ::9 ::11.tn Elle CC'it r -I0 .1.::[2 i "., C .|.i'-L|.!':. -t.G 92:-;1-. .-B 131"--t i.h+.g' td i | 0) 3:: ] ---: |..: i -:..I OL:.tc -;.:11-.1. -r :-Li'se .l' th-j Fl''Mr~r: Extc T:. .-.-ci. -r er".2 ":.-.-i::::ri .:... :!s.: 1-h.L.:.n..ir. to e us... .-r.r. -. "~2; -:.1-:: wili ::e ee:.y!ate:j rG i! --Or:L' VitiiskE..t. J.'l-. .-:d 11_ d ::.r's .:-. 3:'.I. Str'ly -:.: -. ----' --1.. --:7-. :Mii.:-. r .ty race:J: ted the prejst:~1 if F. --. .. ---:1 's --ii e I-';_-ati :-.:.1 i 1--t' ;--_-3.11".:-.1-1ri services as -..; .-. ..,. :' .. -:. ..=-f -:b': i r.li~I J-2 :n-.-; ClilTiirigS Ef|d 41.J ..... ....-... : .. 112." .? ": "t:.1: -71e rit. i l i".: a !!: -3-'' d Et~utDj.a tigal t--.:.. .-. ,-. .-..... :!-t.:7..a '.:3-11 ::jrs-ar 'ri:-lii'intic.cas y rieecalytry -.1. ..r .51c, Til Me:'r. --.:_ .-. ---.r: 11: nr.: se' it war iecid al to 2''ic', 6. T '.rn't". ::-.' .:' ... '' ...! -|. -' C ..|10 f-D:11'l:.!. "''/---...: ... .-)i allZrii siB al-.d J. .--!;--' :'--.200'; 21 -.1::.. 0 ..... -. ..--.". I' .L'i.. t t 0-.1.121 rai t|"i rii>id 1-r> 9".'1"l:: i "! f ... --: -..C 'dI .1. 1 .i.a :C! '..''ille -12] Val'NiG!", ';i ..":1., ..-.--1 il-. ---.-.!' -1 S 2 Ed",/it&'l b -re-...l!CC I :-.e .-. .:P..-."-:P --:-.-| t ('i--ll's: girit. 1;': .-:1: s: .'.! -.: ..., ':..'/1.:.I..i. .' -:.. ."".. ICam att roartway -.-.rad '.I' -...... .--: -i -..-!-i---: --------'--'02:0tiDr tc ti' .2, T:. -.-. j i ---.. .." '. -'--'.r-.a r-.:31-::s iixed bridy 3 -il.. -.11 : 1.E rr:.._ C ...: 5 .:a .-~ .. :-1.: : a : w .:tr-..| i'Outi:i I 0:Albl..). 'I |.:: :;ral .. .a:-f-.--... ..r.,. ws.r'-.: .-2.: ).fr .Eud I.:1 the ol':Cil'l'. r's ?:.12 t -.! tro. :.h.: GC:' t ., 23:'.. 2 %.-r.': c' i:t--.p::: ..f t u iirie W-E'."2"-j':sil'--3:l. In:-firI-ilV:131_-..P| -:-7:-. E ._' N. i r!" I 2"'-? --:l".. "i:.i t.":3 OI" Note -:0 m r -:i,:'u: C1-.-11 -s. -i ..O '. .::--.. .: :-:::-. -9.. -.---I on ;-::'a ]3DepEU-:''i. 1~--. !!".Cain I-:N :CC -:'' -.: .". ". -.' ..-.:'1. :. E :-t .a : 2 N.'.3legt) :->r:.: :Mt-i.111!:: ....'. v.: e..i. -. ...r. -::..i era i.rr:r; j :-r -.:-:r.:.l ii.:.:Gra i es tO d,-.i.-----=iirie ti.e :J --3-. C "., 7" .i.-.1-t 0:4 UC:1'"j:1 1-;'.1 L %2015.|. ti i;! 9.:,!--J.dias' UN' -. I-leMI:d-lij E 911. .I i 2. -!: -:'" -di L .'-:'=" '.:'i=:2 '.;d-Pe E:=1-r.t. I". iliter'Q:lt:-! ---ri:-.'-rt::--:: i: .-i i -.. -... -1 .si ... 1, r:: -e ::Isi t., 1-hi:Tir.= 1;;:-::div'..i:-l 1:.=:-::..-.. --r -.:' .. -.r '::-:-: :ti-----. ..-(the te::: :;-.:.r:-_; ... ..... .. s. 1 -.t--:-: ; --y--:-ais t|aad t:::a! -.e..rir,1 .!.e : -.=-. .-e i l' :: -:1 -:. ca -..: .. ; -. 0:3 ., : c.-et( j by rill. ,.,til: rd t.;, 19 .: v:1:< ... :.:rze i,1. .:1: -n,-1:..:... t-.:..
PAGE 11
The oko rcssn h r. hwsre otnul n a
PAGE 12
In -rod 1, -4
PAGE 13
PI.. 16
PAGE 14
Pag 17 The~~~~~~~~. .eto .......r ..e h eea spriino h W Esltn einr svEYE d n oae n aetegrea d .........u .f .h ......t .....id..t e cqiedfr h PRkONy A0r1190wr rcie fo h scinenie .h .ih .. ...y .eatetscrdtteifrainfo h
PAGE 15
1~g 1. n e d e f r .h ..q. .i i o .f .i i .w ay a r e c i e b WetPamBec R hto WyDeatmet bhi crfly hc 2-nd cor P-n aeweencear. N eaaergto a enierngfre-p -f-ag hswr wscnierdhcs say r usifed3 vewofte valailtyo -th --to enier h r rInid e petfs in t h lwr.. the1. Dircto ofRigt o Wy ad ba saffexain al tile nfomy 1-.n .-hasas tha. ob bl orcmen prvlo -gre m1t & Pd ,penn t o p i eto f nl.o. vl y h A -hriy AI ec ih fwympan rprydsrpin checked, ~ ~ ~ ~ b. t, clnur, asge t ghiniiul prIn addition, ~ y t t'I .ap ...... ch1,dfr teeascna ros ings ralroas ad uilit lies.Eachparel s chcke .o lin n rcmbac_ j rpiaeiarmhs r rprdo each -p I-el bn te0,trs aa cosns algd -uyeuiiylnsar rue oehrwihteve nmn by thp-in re o u i n o h Ii u o e n n u hr iti, T:xecute .l N u'yj e iios o m p nd d s r pt on .f b r p rt e me n tn usyr evd omhe etin ngne yth gt of ay epatmnt.Thee ae AOTIVyITed oretin md
PAGE 16
oftl. Ath.ne -daea Or!mfero h Atre Gnrl etaff ~ ~ ~ ~ ~ ~ ~ ..... .a .nofc t h fie fteAtoiyadhsaal .bl .... ... .h rtr aiiiso h tonyGnrlsof inTalhaseThs srit h av --.1 ite -. dv 1fa thne .h peaaino aroslgldcmet sdi h .unpk .......tins .h rprto fcotat ew h Autortyan is onulin ad ecio egihere -o-k -ooe tionwit th riht o wa diisin 2 theprearaionothe d om anIhe 1e p le n le 1 h 1* ito o igto .a .... .adln .. te fareo h uhriyo ea n-ture.
PAGE 17
..... ..s ..iul etre u bn-h amneen fcntut Ir romp .1iato 'f he 1.rus bte byte o 1-
PAGE 18
20A FEtBIT 71 COMPARISON OF COP,= OF GRIOlt TulUPIKE FSCJELIS Florida Cilla Indlana Ur-ip.l.hu Torppike ten-dke Mileng-a of Tarnpike 100 .5 241A 156 construction Cost (n;tcl. Contingericy) 71,500,0CC (1) 2)7,523,638 3)9$29,000 a) Cost per mile 1) T-otn& 709,32', 1,067,090 1,345,057 2) :.etual Construction 67?,3 920,~j20 1,129,102 3) Right-of-my 61.,ilw 46,Wl 61,236 4) ~rk.glaietrin:', 0 ; 69 78, 249 103,900 5) istility aljustra;11-s da 33 0,909 25,363 6) Mi Deell:me-::us 11, 657 16942 25,410 Ccutigency B.nerve ) 011104-10 7,100,000 25,760,362 30 ,171,000 B) $ oi' Cor.at.,actiu'l COGL Iff ll3 14. 1 i Bond. Isac 93,C00 ,000 ~i2ECCO,000 2610,000 ,0C0 E) Bu:Ids per me of .:037 1, 350,4)=7 1,794,071 Estirated Construct.ion leriod 18 ::ciits 34 eenths 30 1/2 moni.hs Interest Fimded a) ;r.;r.int 8,343,7)c 40,614,1&/ 37,975,000 E) Rue 3 3/ab (2) 3 1/W 3 1/25 C) Nulibt'r of Months -10 46 46 1/2 Financi:ig Cos-.s :..)2and Disecas 2,225,000 7424,000 6,3cc,000 l) Doll:ars per bond 2-).00 -24.00 22.50 B) MiscelleAcous (LI:gel, Pri:lting, Fiscal ...dvics Band Preparation, et.c.) 300,CCO 902,033 300,000 C) Tctal Financing Costs 2,59".,000 8,729 433 6/X'l,_000 1) IloLars Pa:Bond 23, W 26.80 23.(0 Nduction for Irtemst earninggs of Ccnaruction Fund 4;M6750 6,700,0;-0 6575,000 (Contalwad)
PAGE 19
22g 22V -(3) 22-20-22-222-2,. COMPAR130111 11 $1,479,341USTUtN~l (22222) 2 $ 22,00 2o reimbu 22emen ofl S2ate 222ad2Depar 2 22 th oter shwn The2 Ke2u k T2r2p,20 2.21 b 2222y222e 22n,2 02n2002n Ma 4cuet 2 /in c h nin trip e16e e og theOhi TrnpkeW~l :ile lngan th For56,5,mik 7,133 -ie o-. I budb ari 0mrd oeeta h
PAGE 20
KM~ ~~ ~~ ...K~ .. K.KK ........? ..K...... .IR ..... .. -K tc p o K th SunKM ne KKKKKK P a KKKm KK Khog olwo KMKKKKK 6fnc Kiybebitcoe nuh h ciie n h s-cled"ol Cat"t rliv teKeiKKtrf
PAGE 21
11-0 -H321 ....... .A ..A...A.A1T.AA Am AAA-AAAnAua AAAAAAVAmAA AAAAAAAAAAAAAAd AAAAAAAAAAAnAA .A AJos~ oeugo sg Am AAAA AA AA4A '6AOAAAAoAAA AAA'A$AAA A A 9AA'A AA AAA nAAAAAAAA AA u'ESAAAAAAAAAAAASAuI AA AAA'A AAAA A0s EnsS~gmSpAAAA mytdun sg qd a ng
PAGE 22
toge ke -t th or fth I-at .o Deatet. _h l ,te ,s ruh
PAGE 23
3/2, 3333333333 3rk 3e it a 3,33, .nd 3,r33uky3a3.5 33333333333 ..3..3 .....3333333.3 3,n3t3b3 33 t n d pr333d3333r333ml 33d333, 33l33t3 3th 333333333f 33333,d3 I33p3y I333333d.33,33the3 A h y p3b33 3tri th A t3333rk3 3t 33 d 33333y333y333t33h3333333333y3m 3 33333d33s 3be th3 Auth3333y3333lf333 de333 th333they 3333333m3rk33. .3333333333mp3,333333dd3.3I333333l,3333n33333d3ng.ar
PAGE 24
0 -.. 11%0 0 00000 000 I mn :hs thu. en i e r n e r c e e o w l h t w eI -dv rgre r t y ioueth m t b "Ise bnwe"fo lr 30300000 $0340000 ihrpeetsitrs nth 8,0, t. 0-/4 00000' ... 0th0. 0 0 at 000h00 00 0n0000000d000u. 0n '00e 000rd00, 0000 00nd000r0 000ai di000ut 0000000 $0.5 0000000 000l of00h0000d0000 be $.,0000 000y0000000w0. bl t aaretthi OO00000090O OradlO 000a000000l000d0 -onbu nepln in er p arned n.hi a .Te 0t t ..d et c Y $ -r e h t t e e t r r v m e f o h i u n piewu d otepyn f neet-a h rtrmnso
PAGE 25
1 a
PAGE 26
Hoad Department who have advinced runds tc the Authority for prelimirsry cperatione preceding :ctual construction, as provided for by the statutes, All rundo and paymehts for services rendered will be reint-ursed to the State Rcad Departnerat at the tJee of sale of tonds. In effect, tais produces a savir gs of approximately $275,000 of interest per month prior to the sale of the bonds. The following tabulation represents the actual expenses of the Authority during the preliminary phase of operations! (See page hA and 4B) The preceding statement reflects the expenditures accrued to date by adednistratier. As shown, even before the tuthority came into existence the state pnac -apartment had apent $274,259,11 for studies eclated to the curryake project, which sum 18 beir.g charged to the Authority. -fbe provirus Authort ty mammers incurred expenditut-es in the an-.ount of $116,379.12, which we are o~pviously charged with. Our administration nas 1nourred costs amountir.g to $2,261,253.93 which is approxinately 85% of the total cost to date of $2,651,-92.16. considering we started with practically nothing and have brought the project to withja 934 c:HapleGio. of the pre11m1nary phase initial to const ruction, we believe the costa irtcurred by this administration rcij.eet economy-wise prudence and sound administration. Need]eso tr. Gay, we are grateful to the officers of the State Road Department in making possible our economy minded operation by advancing to us funds by which action the Authority has Gaved 1pproximately $2,230,000 in interest payments. As of September 30. 1954 the State Road Department's latest tabulation showc cash disbursements of $2,176,569.03 on behalf of the Authority. This swa includos the $274,2~9.11 prcViously mentioned above, There Core, the actual cash dinbursements on behalf of the Author1ty as of September 30 amount to $1,902,309.92, It may be interesting to note that administraGive and orgard zatior, expense of $37,296.37 1mourt tc only about 35 of total costs to date and only about 16% of the total budgeted amount of $550,000. The project presently beir.g designed is the one studied by the traffic and learning ergineers and on which their estimate of earnings is based. Ir, line with the experierce of tall road -utherities in other states, our genovel consulting engineers have revised sur estimate to meet current construction conditions for the intended scope of the project instead of hav$pg below par estimating which WGuld compel additional borrowing in the Puture to .omplete the project.
PAGE 27
SEATwLT S3 T h~l7PJ 3 _1 -73,3733rae .33 3733.3737773DPro 37,337.33 33,3th 30Pr 7en 377. 3t3.C3t t 3, 7'37 3, /533 t771/ ,/5 t 3t 3r7 f377 3777333r737 3 .3 1(21 9 6,3 3.37,.5 .9 3737373u7p73737 -p737 ::.7 7u7 3 7 .3 7.7673 T337'['A 3733333 E7L 337A3.3 33A3:-3
PAGE 28
ST ~ ~ ~ ~ ~ 1 1"'""7FTEIIEC5r
PAGE 29
is the assurance that the in1tial budget will not be exceebed. In fact, for the past six months, monthly revision of cane traction estimates by our sectior, englheers has yet to exceed the coste reflected by the estimates of Jur consulting engineers, Any discursion at thia late date corcerning the increase between our current estimate and estimates prepared by engineers for tae former Authority is purely acade110, So much controversy over the fact has taken place that it is now pubJic domain. KyWever, we would ilke to pojnt out we have arrived to b-uild for this State a first class toll road. Think1ng his alw.ya been along thia line. Therefera, such decisions as preference of high 'evel bridges over dr-.w bridges; Boiralete restaurant facilities over snack bars, etc. have t.so msde ursly after we learned how much of a floancial asset these features would be. Ite following is a breakdown of the Authority's capital budget. Despite criticism to the contriry, We be]ieve it to be representative of a 5-Jund Urd scorenical project designed to meet Duture expansion. (See page 5A) EXCERFTS FRox STATEMM MADE BY TfG CHAlRMAN OF T!f3 ACTRORITI J-JNE 21, --954 We found ir our study that the previous Authat-a ty had a preliminary traffle and earninCs report made by an yutstanding flem, Coverdale & Colpitto, ard wE interpreted the eXChange of letters between the kuthority, the Road Department and Coverdale Colpitis tc meln that they Wanted them to complete the neoend phase of their Wor<, which would be the comprebEnBiVe report Which was published under date of March 15, 1954. We told Coverdale & Colpitte to expedite this report as rapidly as possible so that there would be continuity arad no de-my between the administrations of the two Authorities. "We naxt found 13 reading the minutes of the previgus Authority that this Authority was about to engage the firms of Blythe & Co., Reynolds & Co. and Sullivan, Nelsen and >>03 as fiscal ager.ts. We had fresh in our minds the Supreme Court decision on the 'Miami Case' whereit considerable ydestion had been raised in the Cyurt's opard on as to the propriety and possible legality Of financial firms acrirag in a dual capicity as fiscal agents and negotiating privately for finaricing on which the same fiscal agents would he the ree,.pa ents of substintial f3 nancial gain through the marketing of 1.he bonds. Our Authority inmediately passed a reso ution st&tir g that it would be the policy of the Authority to market the rarnploe revenue tionds only through public sale, and we therefore louxed for independent financial advisers. Thor-ough research into the qualifications and experience of
PAGE 30
Mab 'rc PrpIMMrs rnrTr n etn
|
