Dear Ms. Chetoka,

I have received your emails dated December 20 and 30, 2004 and offer the following responses to your questions. For the sake of clarity I have restated your questions contained in the two aforementioned emails and provided responses following them.

Q: Does your office verify specific bonded toll road projects for compliance with legislated feasibility requirements in order to track FTEs performance?

No, current statutes do not require the Turnpike Enterprise to verify that specific projects meet the economic feasibility requirements after projects open to traffic. Florida State Statute 338 very clearly delineates the procedures to be followed in estimating a potential Turnpike projects economic feasibility. The Turnpike Enterprise is required to prepare detailed project cost estimates prior to receiving legislative approval to construct the project. Additionally, we are required to prepare and certify traffic and revenue forecasts prior to issuing the revenue bonds needed to fund project construction. However, we do assess the performance of all our facilities every year and document that performance in our annual report.

Q: Is Suncoast Parkway 1 currently meeting legislated feasibility?

When the Suncoast Parkway 1 was approved for construction the economic feasibility test was based on toll revenue projections for the 5th and 15th year of operation. The Suncoast Parkways first full year of operation occurred in fiscal year 2003. Therefore the 5th year of operation will not occur until fiscal year 2008. So while we annually review and report on all of our projects individually and our system as a whole; we would not be able to perform an exact comparison to the legislatively mandated feasibility test for the Suncoast Parkway 1 until the end of fiscal year 2008.

Q: If FTE deems Suncoast Parkway 1 is meeting feasibility, are there reports showing their methodology in reaching a conclusion?

Again, this could not actually occur until the end of fiscal year 2008 and is not legislatively mandated.

Q: If Suncoast Parkway 1 is not meeting its financial feasibility, is it FTEs policy to expand a losing project and just let the mainline pay for it?

Any expansion project undertaken by Floridas Turnpike Enterprise must independently pass the legislatively mandated test of economic feasibility irregardless of the performance of other Turnpike facilities across the State.

Q: Has a toll feasibility study been done for the Suncoast Parkway 2?

To date we have not conducted a toll feasibility study for the Suncoast Parkway 2. Preliminary toll feasibility studies are not performed until the Project Development and Environment Study is complete.

Q: Did the citizens of the State of Florida have to pay for insurance for Floridas Turnpike Enterprise to get its current bond rating?

No, the Turnpikes bond rating I referred to was an upgrade in the Turnpike's underlying credit rating and is not associated with any purchase of bond insurance on any given bond issue.

I trust this information answers your questions. Feel free to contact the Suncoast Parkway Project 2 PD&E Study Project Manager Nathan Silva at 407.264.3412 if you have any further questions or would like additional information.