CDOT Now Dominated By Two Out-Of-State Companies And Scores Of Consultant Firms

CDOT Now Dominated By Two Out-Of-State Companies And Scores Of Consultant Firms

Part II Of A Now III Part Series

by Charles C. Bonniwell

After the publication of our initial segment in November, “CDOT IN TOTAL DISARRAY,” the Chronicle has been inundated with additional information from present and former CDOT employees as well as other interested parties. As a result, what was originally envisioned as a two-part series has now been expanded to a three-part series, with the final installment coming in our January 2020 edition.

1950s Road: The Boulder Turnpike was originally constructed in 1952 as a toll road.

Coloradans are increasingly spending hours stuck in traffic, some of which is unnecessary, insiders tell the Chronicle. Former and current employees of the Colorado Department of Transportation (CDOT), as well as in-state contractors, assert that the state agency formed in 1917 to direct the transportation needs of the state “no longer builds roads” but simply now makes schedules that are seldom accurate. The primary goal at CDOT has become avoiding blame or liability for the botched schedules and/or designs resulting in massive additional costs for CDOT projects and long delays in road projects being completed. The schedules have been weaponized by CDOT to use against contractors when projects are delayed or run over budget, even where the primary blame should fall on CDOT.

CDOT once revered for competence and non-partisanship has become a political football whose overall mission is increasingly unclear and muddled. Governor Jared Polis, upon coming into office, replaced highly respected and seemingly well qualified Michael Lewis (who had been appointed by then Governor Hickenlooper) with 35-year-old history major Shoshana Lew. She is the daughter of Jack Lew, the former Chief of Staff of President Obama and later his Secretary of the Treasury. Ms. Lew was reportedly hired by Governor Polis as a personal favor to former First Lady Michelle Obama. In interviews with media, including Colorado Public Radio, she has strikingly avoided discussing roads and instead emphasizing bike lanes, buses, light rail and multi-modal transportation. Her failure to respond to and, in some cases, even understand questions from callers on “The Mandy Connell Show” on 850 KOA Radio, caused her to be banned from the show which has a tradition of featuring the head of CDOT to discuss transportation issues in Colorado. CDOT employees indicate that she so dislikes traffic in the Denver area that she has an employee chauffeur her around town, a luxury few Coloradans can afford.

Sinkhole: The original toll road lasted over 60 years. The new revision constructed in 2014 lasted only five years without major repairs.

With transportation dollars relatively scarce in Colorado and the state legislature unlikely to increase any funding any time in the foreseeable future, making funding as cost efficient as possible would logically be of paramount importance to CDOT, but the opposite appears to be the case. In 2013 the legislature did away with the requirement that all public projects in excess of $50,000 had to be “awarded by competitive bid.” In its place it provided for the “best value” model in which bids come in as either (1) Design Build (DB); or (2) Construction Management/General Contractor (CMGC). Insiders view the “best value” as totally subjective and little more than a new form of manipulating the system so that two large out-of-state construction firms could be awarded 81% of all major construction projects distributed by CDOT in the last seven years.

The two firms are Kraemer North America, LLC, a subsidiary of the massive Japanese construction firm Obayashi Corporation and Kiewit Corporation, a Fortune 500 construction company based in Omaha, Nebraska. In-state contractors indicate that Timothy Maloney of Kraemer North America was extraordinarily effective in shepherding through CDOT and the state legislature the change in awarding contracts under the comically false title “Keep Jobs in Colorado Act.” Prior to its enactment the majority of CDOT projects went to in-state firms. Set below are the $3.7 billion in major projects awarded over the last seven years by CDOT:

Mastermind: Tim Maloney, Vice President at Kraemer North America, LLC, successfully ramrodded the change in the bidding procedure through CDOT and the Colorado Legislature.

To apply to be awarded a DB or CMGC costs firms tens of thousands of dollars. Insiders indicate that CDOT encourages firms to apply in order to make the process look above board. But the in-state contractors are then rejected on the basis that they have never done a large DB or CMGC project. It is becoming increasingly difficult to con in state firms to submit bids which they cannot win with the massive project almost inevitably going to Kraemer or Kiewit or other international firms like Flatiron Construction, a subsidiary of the massive German conglomerate HOCHTIEF.

In turn, Kiewit and Kraemer don’t even want to have to prepare bids in the semi sham process as they are costly and time consuming, so they have come up with a new method by using the so-called “change order” scheme. Ordinarily a “change order” is a change in an existing project that is different from what was originally contemplated, but words can be manipulated to mean whatever someone wants.

Embattled: CDOT Executive Director Soshana Lew has incurred increasing demands for her resignation due to her lack of qualifications and performance at the job she currently holds at CDOT.

Regarding the over $300 million project to build express lanes on I-25 from State Highway 402 to Fort Collins rather than having to go through a bidding process, Kraemer got CDOT to simply declare that it was going to do a “change order” to the $250 million project for express lanes from State Highway 66 to State Highway 402. Little did it seem to matter that the so-called “change order” was larger than the entire original project and a wholly different section of I-25.

Cost Of Consultants

The massive costs of CDOT projects is in large part due to the so-called “best value” method of bidding rather than “lowest bidder,” but it is significantly exacerbated by the utter dependence on outside consultant firms largely staffed with former CDOT employees who have retired with PERA pensions at relatively young ages. CDOT no longer has the in-house capacity to perform many of the everyday functions that it once did 20 years ago. Determining which outside consultants to utilize is once again on a subjective basis and a consultant without a significant number of former CDOT employees has little chance of being awarded a contract. Moreover, CDOT employees have no incentive to look after the taxpayers when dealing with former work colleagues. Furthermore, many of those now in CDOT plan to join a consultant once they are eligible to retire under PERA and hope for similar lenient treatment when they are on the outside.

Monumental Headquarters: Road funds have been scarce but CDOT built itself a massive, five-story, $160 million headquarters located at the intersection of West Howard Place and Federal Boulevard.

In May 2019 the Colorado State Auditor did a Performance Audit of CDOT and found that problems with 80 of the 84 CDOT agreements with consultants including “unapproved consultant labor rates, contracts without proper approvals and contract terms that did not comply with state requirements.”

While it was generally known that outside consultants significantly added to the cost of CDOT projects the full extent of the problem was not previously quantifiable. The chart below is based on very recent internal CDOT calculations and if anything underestimates the problem in which consultant fees have averaged over the last four years $226,500,000 per annum adding 32.5% to the cost of CDOT projects.

Specific Projects

Next month the Chronicle will examine three particular projects which are:

•           The $1.3 billion 10-mile Central 70 Project;

•           The $226 million 12.5-mile C-470 Project;

•           The $500 million I-25 North Expansion Lanes.

The delays, the cost overruns, the crony bidding and other problems on these projects help identify the major concerns with today’s dysfunctional Colorado Department of Transportation.

Celebrating 70 Years Of Rose Medical Center WWII General’s Virtues Still Inspire Hospital

Celebrating 70 Years Of Rose Medical Center WWII General’s Virtues Still Inspire Hospital

by Chris DeGusto

The legacy of General Maurice Rose has been forever etched into the walls of Rose Medical Center. Aside from renaming the hospital after the WWII 3rd Armored Division commander 70 years ago, a new museum tucked into the lobby now boasts a stone fixture to signify the namesake’s dedication by General Dwight D. Eisenhower.

Marshall Fogel, author of Major General Maurice Rose, compared the relationship between Rose and Eisenhower to two other notable figures in American history.

“Grant was to Lincoln what Rose was to Eisenhower,” said Fogel of the former generals and U.S. presidents at Rose Medical Center’s 70th anniversary celebration in November.

Fogel was invited to speak at the commemoration and helped unveil “one of the most iconic paintings in WWII history,” according to the author. A 1948 painting of General Rose was restored and hung on display outside of the museum. Fogel told the Glendale Cherry Creek Chronicle that he came to the hospital with his parents when he was eight-years-old and saw that very same painting. His curiosity sparked, Fogel would turn six years of work into his biography of Rose.

“I always wondered about him. I said, ‘someday I’m going to find out,’” Fogel told the Chronicle. “The longer I researched him — which is hard because the records were difficult to find — the more I realized you can’t make this stuff up.”

Rose was killed in combat during the war, and at the time was the highest-ranking officer of Jewish background. The Rose Medical Center was built to “serve every need and every creed” and was the first hospital to hire a black doctor, Edmond Noel. Stories about Rose’s military prowess are innumerable, and Fogel said he finds it fitting that General Rose is side by side the hospital’s contributions to the community of all cultures and faith.

“From my heart, to revive the legacy of someone that important who was raised in Denver, who legitimately was a war hero and gave his life for his country, and the richness of the legacy of why they built this hospital to honor [Rose] has meant a lot to me,” said Fogel.

Kyle Wright, who helped Fogel construct his book, told the Chronicle that he met Fogel while working as a server, and that the two quickly became friends with similar interests.

“We would talk all the time, I would help him with computer stuff. One thing led to another and [Fogel] ended up showing me this giant portfolio he made of [General Rose’s] information. He asked me if I wanted to help him with it, and I jumped right into it,” said Wright.

The passion that Fogel exuded for Rose and his legacy was complimented at the ceremony by other speakers and those in attendance.

“Our goal is to remain in the same location and to serve this community and to uphold the values that were set forth when the hospital started,” said President and CEO of Rose Medical Center Ryan Tobin in an interview with the Chronicle. “I think we still live by those values today so our goal is to continue the mission.”

Rabbi Jeffrey Kaye spoke of the commitment to patients and families of Denver by following the examples of compassion and excellence set forth by Rose Medical Center visionaries. In her speech, Lt. Gov. Dianne Primavera officially declared Nov. 7 “The Power of Doing Right Day,” a tribute to the ceremony’s theme.

The life of Rose has inspired many, and the hospital has grown to be one of Denver’s most recognized. Rose Medical Center has been named among the nation’s top 100 hospitals by IBM Watson for 12 years in a row.

But the Rose Medical Center has not just garnished a reputation as a paramount hospital, but also as a workplace that feels like home.

One former member of the Rose Medical Center public relations team told the Chronicle that returning to the hospital to celebrate the 70th anniversary felt like a reunion.

“[Rose Medical Center] is really an important part of my life,” said Beverly Petry. “People who have worked here have always felt more like a family than just business colleagues. There’s something in the DNA of Rose. It’s really about the focus on patients and being collegial with doctors and that’s never changed.”

Kindness Yet In 2020!

Kindness Yet In 2020!

“Candles burning low, lots of mistletoe, lots of snow and ice everywhere we go.” Those were the words that made Stevie Wonder a miracle of popular music. This is the season when words set to music melt our hearts. Thus as this year — seemingly more than any other — comes to an end, “We’ll take a cup of kindness yet, for Auld Lang Syne.”

As we bid farewell to 2019 and turn our thoughts to 2020, we reflect on the year just past and ponder what to change about ourselves, our lives and our community.

Here are our choices for shopping, dining and entertainment to fill the holidays with food, fun and good fortune plus an auspicious New Year full of kindness yet:

3          See a live-action adaptation of the beloved children’s tale How The Grinch Stole Christmas as he comes down from his mountaintop home to DCPA’s Buell Theatre stage Dec. 3-8. Information: 303-893-4100.

3          Attend this year’s Jewish Family Services Winter Soiree honor event at Infinity Park Event Center Dec. 5, 6 p.m. Information: 720-428-4633.

3          Take the kids for sandwiches and treats at the Oxford Hotel Dolls’ Tea with ballet recital Dec. 8, 11 a.m. and 2 p.m. Information: 303-628-5400.

3          Wear a tacky sweater for the Christmas Sweater 5K run-walk at Wash Park Dec. 15, 9 to 11 a.m. Information: coloradorunnersevents.com.

3          For a relaxing weekend break from the busy holiday shopping season go to Denver’s original brunch spot since 1971, the Bull & Bush Brewery. Brunch served from 10 a.m. to 3 p.m. Information: 303-759-0333.

3          For your holiday travel needs and great gifts go to Colorado’s top luggage store for nearly 40 years, Paradise Baggage. Select from premium travel luggage that’s both sensible and stylish. Information: 303-320-4646.

3          Allow the Colorado Symphony to march you into 2020 playing polkas, waltzes and marches at Boettcher Dec. 31. Information: 303-893-4100.

3          Then go to the 16th St. Mall to see New Year’s Eve Fireworks synced to music to sparkle the city, 9 p.m. and midnight. Information: 303-233-8837.

3          Don’t miss Denver Botanic Gardens’ signature holiday event for three decades, the Blossoms of Light now through Jan. 3. The holiday extravaganza transforms the York Street site into a twinkling winter wonderland. There are fresh and exciting new features this year including a 360-degree immersive light experience along with each year’s fun fan favorites, 5-9 p.m. Information: 720-865-3500.

Beyond diet and workout pledges, as the ball drops and we pop champagne with family and friends, remember the New Year stands for change. As we sing the Old Scottish folk song Auld Lang Syne, we hope the nuance of the song’s message resonates with us even if most of us don’t know the lyrics or even the song’s name.

As we pass the moments before midnight, consider 2020 as an opening to replace this year’s social media bitterness and hatred with brimming cups of kindness.

The song’s rhetorical question suggests, “a cup o’ kindness” should be had in order to look back on the past and begin to build for the future. It will make life so much better for family, friends and those around us “for the sake of old times.” It is a chance to spark new friendships and rekindle those we’ve allowed to fade. Happy New Year!

 — Glen Richardson

The Valley Gadfly can be reached at newspaper@glendalecherrycreek.com.

The Winners And Losers Of Legalized Sports Betting In Colorado

The Winners And Losers Of Legalized Sports Betting In Colorado

The Winners And Losers Of Legalized Sports Betting In Colorado “One of the worst things that can happen to you in life is to win a bet on a horse at an early age.”
Dan McGoorty

by Luke Schmaltz

On May 14, 2018, in a lawsuit filed by the State of New Jersey, the Supreme Court of the United States ruled that the Professional and Amateur Sports Protection Act (PASPA) of 1992 was unconstitutional. Removal of this piece of anti-gaming legislation opened the sports betting floodgates. Currently, a deluge of widely accessible sports wagering is fanning out across the nation and is steadily flowing to the north, to the south, across the Midwest and toward the west coast.

Mobile Betting: Emptying your bank account is just a click away. App-based betting means no more waiting in line at the wagering window.

After the Garden State legalized sports betting one month later, other states began following suit (19 total to date) including New York, Pennsylvania, Iowa, Illinois and most recently, Colorado. Currently, 18 more states including Kansas, Missouri, Texas and California are introducing similar legislation that will allow anyone with an internet connection or a mobile device to get in on the action. The indications are two-fold — pointing to massive tax revenues for state programs along with daunting potential for negative social impact.

In Colorado, the ballot measure that passed by a narrow margin on November 5 will grant the 33 licensed casinos in Black Hawk, Central City and Cripple Creek the ability to offer betting on collegiate, professional, Olympic and motor sports. Beginning in May 2020, wagers can be placed in person at a casino sportsbook or online from anywhere in the state. The second part of that allowance is where the issue compounds. Widespread accessibility equates to more tax revenue and at the same time means more inexperienced gamblers and folks who are simply prone to addictive behavior will be blowing kisses from afar at lady luck.

The Good

Colorado Proposition DD passed by the thinnest of margins — 50.8% to 49.2% to be exact — which equates to about 20,000 votes or so. It can be safely surmised that the idea won favor with voters because it was introduced in conjunction with a previously passed bill applying a 10% flat tax on sports betting.

This means that a sizable chunk of net sports betting revenue will flow directly to the coffers of the Colorado Water Conservation Board. These funds will be leveraged to implement the state’s water plan (introduced by the office of former Governor John Hickenlooper) to meet agricultural needs and the demands of a booming population. This explains the appeal of the measure across so many demographics within a populace that is seemingly more concerned with infrastructure planning, economic growth and environmental issues and less adamant about the right to legally gamble on Sunday’s big game.

For those who are adamant about their right to legally wager on sports, the money is doubled, so to speak. Not only can they gamble the game of their choosing without breaking the law, they can skip waiting in line at the betting window and play the odds from the convenience of their homes.

The Bad

Now that anyone in Colorado over 18 will soon be able to gamble on any game at any time from anywhere, there’s an excellent chance that the more pertinent issues listed above may be further obscured by this newfangled vice. The best way to speculate on what is in store for our Rocky Mountain State is to look back to New Jersey, where sports betting has been legal for over a year. Officials from the Council of Compulsive Gambling of New Jersey (CCGNJ) are expressing concern over the fact that a 2019 Rutgers University survey discovered that 6.3 percent of state residents have a gambling disorder — three times the national average. Executive Director Neva Pryor explains: “It’s that accessibility that makes it

Legal In 2020: Sports betting will be legal in Colorado starting in May 2020. Bet on any aspect of any sport in real time from anywhere.

[gambling]

so easy.” Meanwhile, CCGNJ co-founder Arnie Wexler attests: “Two years from now you won’t be able to get a seat in a Gamblers Anonymous room because … people that never would gamble on sports illegally are now gambling on sports.”

This is due largely to the fact that participants are using online sportsbooks like FanDuel and DraftKings and/or mobile apps developed by individual casinos. The convenience of digital wager placement and the allure of immediate payment have direct appeal to those who subscribe to the instant gratification mindset. Couple that with rampant cell phone addiction that is already in place for many, and you have another “double your money” scenario. On this side of the coin, however, the odds play on the inherent weaknesses of those prone to compulsive behavior.

The Ugly

Initially, the top four major professional athletic leagues — NFL, NBA, MLB and NHL — opposed legalization of sports gambling. Yet, since PASPA was overturned they have all quickly assimilated into the marketplace to secure their cut of the action. The NFL has inked a sponsorship deal with Caesars Palace while the other three leagues have similar contracts in place with MGM Grand.

Instant: Legalized sports betting has instant gratification appeal.

The four entities above, along with boxing, golf, horse racing, tennis, wrestling and many more (that means you, college sports) have well-documented histories of game fixing, rigging schemes and gambling infestations of many stripes. Now that the leagues themselves have a direct interest in betting revenue, gambling terms like “house rules” and “the fix is in” may take on meaning of a never-before-seen magnitude.

What’s more, ESPN and FOX Sports 1 both have shows dedicated to sports betting. As the phenomenon sweeps the nation state by state, the ubiquity of it all could spell a distinct change in how events are called by sportscasters. Wager and odds-based commentary may become the dominating aspects of the live broadcast narrative rather than the facts of the contest at hand.

Finally, to top it all off with a formidable one-uppance, not only can mobile app gamblers wager on an event when it is still underway, they can also bet on just about any aspect of the game at hand. At any point during play, a bettor can wager on such factors as Brandon Allen getting sacked a certain number of times, Jamal Murray hitting his next three-pointer or whether Nolan Arenado connects with the next fastball. Whatever the sport — that’s one way to empty out a bank account in record time.