A May 9 KMGH 7News “investigation” by reporter Tony Kovaleski misleadingly suggested that there was “an interesting connection between companies donating” to the FasTracks Yes! campaign and “the paydays that have followed.” In the report, Kovaleski and FasTracks opponents Republican Secretary of State Mike Coffman and Independence Institute president Jon Caldara insinuated that the Regional Transportation District (RTD) was involved in a “pay to play” scheme because it had awarded contracts to 28 companies that had donated to FasTracks Yes!, which supported the 2004 public transportation referendum.

However, as the Rocky Mountain News reported on May 7, of the 94 firms contracted to work on FasTracks, the majority (59) did not contribute to the FasTracks Yes! campaign. The News further reported that “35 firms working on FasTracks made donations totaling $542,570,” which was “15 percent of $3.63 million total.” It added, "[O]ne of the highest profile contracts so far, the construction management deal on the West Corridor, went to an experienced transit-building partnership of Herzog Contracting of St. Joseph, Mo., and Stacy & Witbeck of Alameda, Calif. Neither firm gave a dime to the campaign and beat out other bidders with both experience building other rail for RTD and a record of campaign donations." Kovaleski -- who did not mention the West Corridor management contract in his report -- noted that, according to RTD, “the 28 companies we cited in our report represent less than 5 percent of all contributors to the FasTracks campaign.”

Furthermore, in referring to Caldara only as a “former RTD board chairman,” Kovaleski did not inform viewers of Caldara's affiliation with the conservative Independence Institute or report the conservative think tank's unsuccessful opposition campaign to FasTracks. According to his biography on the Independence Institute website, Caldara was elected to the RTD board in 1994 and became chairman in 1998, his final year on the board.

After co-anchor Anne Trujillo noted that what Kovaleski “found” about FasTracks “was perfectly legal,” Kovaleski explained, “Legal, Anne, because the Supreme Court has ruled it's a company's First Amendment right to use its checkbook to support ballot measures.” He then added, “It's also our First Amendment right to tell you where RTD is spending your tax dollars.”

KOVALESKI: RTD says there is no connection between money donated and money paid in contracts after the election. But here's our analysis: 28 companies who donated to FasTracks have received contracts to do work. URS Corporation donated $30,000; it's received more than $1.1 million in business in the 24 months since the election. David Evans & Associates also contributed $30,000; its contracts currently total more than $3.3 million. Parsons Brinckerhoff Quade donated nearly $100,000 and has cashed RTD contract checks for more than $1.2 million. And Carter Burgess contributed $50,000 to FasTracks, and it's received payments from RTD totaling nearly $8 million.

After reporting these figures, Kovaleski asked Coffman if they passed his “smell test,” to which Coffman replied, “You know, it really doesn't.” Caldara then stated: “There is nothing illegal about what they've done. But there sure is something they should be ashamed of.” Later, after Kovaleski asked Coffman, “Does this look to you like it's 'pay to play'?” Coffman responded, “It does. I think on the surface it absolutely does. And I think the burden's really upon RTD to say that it's not.”

In contrast to the unsubstantiated allegations in 7News' report, the News reported on May 7 that "[s]ome of the firms working on FasTracks were big donors to the campaign to get voters to pass a sales tax increase to pay for the project. And some weren't." Like 7News, the News reported that “Carter & Burgess gave $50,000 to FasTracks Yes! So far, it has been paid nearly $7.9 million on contracts worth $18.9 million, with more to come.” The article also noted, “CH2M Hill donated $70,000 to the campaign and has a $5.1 million contract for the Gold Line environmental impact study. It is also a subcontractor on the U.S. 36 rail and highway projects.” However, contrary to Kovaleski's suggestion that there was a “pay to play” scheme, the News noted:

• Some firms already were working for RTD prior to the vote. PBS&J has been the lead consultant on the Interstate 70 East Corridor -- the FasTracks train to Denver International Airport -- since 2003. It has an $11.5 million contract and gave $19,000 to the campaign.
• Together, 35 firms working on FasTracks made donations totaling $542,570 -- 15 percent of $3.63 million total.
• Yet 59 other consulting firms on the project gave nothing to the campaign.
• And one of the highest profile contracts so far, the construction management deal on the West Corridor, went to an experienced transit-building partnership of Herzog Contracting of St. Joseph, Mo., and Stacy & Witbeck of Alameda, Calif. Neither firm gave a dime to the campaign and beat out other bidders with both experience building other rail for RTD and a record of campaign donations.
  

Colorado Media Matters previously noted a February 6 Kovaleski report which asserted without substantiation that "[i]llegal immigrants caught behind the wheel driving without a valid license ... [or] insurance" are a widespread problem in Denver.

From the May 9 broadcast of KMGH's 7News at 10 p.m.:

TRUJILLO: In tonight's “10:15 Difference,” investigators of 7News track the spending of the tax money you approved for the metro area FasTracks rail expansion. Investigator Tony Kovaleski has discovered an interesting connection between companies donating to the campaign and the paydays that have followed. And Tony, what you have found is perfectly legal.

KOVALESKI: Legal, Anne, because the Supreme Court has ruled it's a company's First Amendment right to use its checkbook to support ballot measures. It's also our First Amendment right to tell you where RTD is spending your tax dollars.

[begin video clip]

[voice-over of ad]: It's time to look beyond the highways. FasTracks. The time is now.

KOVALESKI: Voters clearly got that message.

KATIE TREXLER (news anchor, on morning after 2004 election): It passed, 59 percent to 41 percent.

KOVALESKI: Using public records, 7News analyzed the $3.6 million raised to support FasTracks.

KOVALESKI: Did the fundraising provide the money to make this successful?

MARIA GARCIA-BERRY: Absolutely.

KOVALESKI: Maria Garcia-Berry served as chairperson for FasTracks Yes!

KOVALESKI: Did RTD know who was giving what to FasTracks Yes!?

GARCIA-BERRY: Absolutely not. We had a separate finance committee.

KOVALESKI: RTD says there is no connection between money donated and money paid in contracts after the election. But here's our analysis: 28 companies who donated to FasTracks have received contracts to do work. URS Corporation donated $30,000; it's received more than $1.1 million in business in the 24 months since the election. David Evans & Associates also contributed $30,000; its contracts currently total more than $3.3 million. Parsons Brinckerhoff Quade donated nearly $100,000 and has cashed RTD contract checks for more than $1.2 million. And Carter Burgess contributed $50,000 to FasTracks, and it's received payments from RTD totaling nearly $8 million.

KOVALESKI: It's clearly not illegal, but does it pass your smell test?

COFFMAN: You know, it really doesn't.

CALDARA: You're absolutely right. There is nothing illegal about what they've done. But there sure is something they should be ashamed of.

KOVALESKI: Colorado Secretary of State Mike Coffman and former RTD board chairman Jon Caldara reviewed our contribution analysis. Both publicly opposed the FasTracks tax increase.

COFFMAN: You know, I think that the voters are, are right to question this.

CALDARA: It's not a contribution. It was an investment. And it is paying off.

KOVALESKI: Should voters say that Channel 7's making something out of nothing?

CAL MARSELLA (RTD general manager): I believe they should.

KOVALESKI: RTD stresses there is no nexus between contributions and contracts, no connection between donations and dollars after the vote.

MARSELLA: We awarded to the most qualified, best proposer. And whether they're a contributor or not is irrelevant to RTD.

KOVALESKI: Our analysis found this contribution: $100,000 from Siemens Transportation Systems, the builder of the light-rail cars. Following the election, RTD spent more than $50 million with Siemens. RTD exercised an option to purchase 34 new light-rail cars. The contract did not have to go out to bid -- a fact known by Siemens before it made the $100,000 contribution to the campaign.

KOVALESKI: By giving a hundred thousand dollars --

MARSELLA: Yes?

KOVALESKI: -- Siemens knew they had a guarantee of millions of dollars, if this passed.

MARSELLA: There was no guarantee, because we didn't -- there wasn't, we didn't give them any guarantee “if it passes, we will exercise the option.”

KOVALESKI: So 24 months after voters said “yes” to FasTracks, our analysis found more than two dozen companies have turned donations into dollars.

KOVALESKI: Does this look to you like it's “pay to play”?

COFFMAN: It does. I think on the surface it absolutely does. And I think the burden's really upon RTD to say that it's not.

[end video clip]

KOVALESKI: Now, RTD says it is not “pay to play,” stressing all contracts were competitively bid. It also points out the 28 companies we cited in our report represent less than 5 percent of all contributors to the FasTracks campaign. Legal and intriguing.

TRUJILLO: Well, what about the secretary of state's concerns, Tony?

KOVALESKI: Well, Anne, on that issue Mike Coffman says based on our investigation, he will request a legislative review of the contributions and the spending on FasTracks. So more to follow in the months to come.