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HOT Lanes on I-77

HOT Lanes on I-77. Widen I-77. March 3, 2015. The Purpose of P3 Legislation. Problem: Congested roads. Limited funding. A Solution: Tolls. Source: I-77 Mobility Partners Brief in Favor of Motion to Strike and In Opposition to Preliminary Injunction, p17. I-77 Corridor is Heavily Congested.

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HOT Lanes on I-77

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  1. HOT Lanes on I-77 Widen I-77 March 3, 2015

  2. The Purpose of P3 Legislation Problem: Congested roads. Limited funding. A Solution: Tolls. Source: I-77 Mobility Partners Brief in Favor of Motion to Strike and In Opposition to Preliminary Injunction, p17.

  3. I-77 Corridor is Heavily Congested “Plaintiff does not dispute the facts that I-77 suffers from severe traffic congestion or that increased lane capacity is needed to improve mobility in the Project Area.” --- I-77 Mobility Partners Brief in Favor of Motion to Strike and In Opposition to Preliminary Injunction, p3 (emphasis added)

  4. Stantec Memos

  5. NB Afternoon Commute- Oct 2011 Cornelius Huntersville Mooresville Davidson Segment Travel Speed (mph) Charlotte Source: I-77 HOT Lanes Technical Memorandum #1, p. 11, Stantec, Mar 8, 2012

  6. SB Morning Commute- Oct 2011 Cornelius Mooresville Huntersville Davidson Segment Travel Speed (mph) Charlotte Huntersville Cornelius Source: I-77 HOT Lanes Technical Memorandum #1, p. 11, Stantec, Mar 8, 2012

  7. The Problem Congested stretch of four lane road from ~mm21 to exit 36 “In both the Northbound and Southbound directions, congestion is attributable to high demand for the two-lane sections of I-77.” Source: I-77 HOT Lanes Technical Memorandum #1, Stantec, Mar 8, 2012; p.11.

  8. A Solution • Add a general purpose lane in both directions • 13 miles • $80- 130M (est) Source: “I-77 Feasibility Study,” Parsons Brinkerhoff, December 7, 2009

  9. The Current HOT Lane Solution • Privately Operated Toll Lanes • 27.5 Miles • $655 M Source: NCDOT Press Release, April 11, 2014

  10. Difference General Purpose Lanes Toll Lanes • ~13miles 27.5miles • ~$100 million $655 million (All taxpayer funds) ($118M taxpayer funds) • 2-4 lanes All of RoW • Able to expand U.R.I.F. No improvements for 50 years

  11. Why the difference? Majority of travel time savings Majority of Cost Source: RFP

  12. The Cost Of Toll Lanes Source: I-77 JLTCO Report, 4-25-14, WI77 analysis

  13. Taxpayer Obligation • Taxpayer Contribution $88M • For private tolling lanes • Taxpayer Bonus Allocation $30M • For improving private toll lanes • Taxpayer Subsidy $75M • To cover potential revenue shortfalls Capital Contribution: $118M Taxpayer Exposure: $193M Private Project Likely Costs Taxpayer More Than Public Project Source: I-77 JLTCO Report, 4-25-14; CRTPO Meeting Agenda, Feb 18, 2015

  14. How the HOT Lanes Work • Built and operated under an exclusive 50 year contract • Vehicles with 3+ occupants use lane for free • Electronic Tolling- no toll booths • Guaranteed minimum speed • No limit on tolls • “Congestion pricing” • More congestion in “free” lanes = higher price to use toll lanes Business Model Ensures Congestion

  15. Toll project ensures congestion- 1 • “One inherent but sobering assumption in all this is that the GP lanes (in any project) are/were congested and for the most part, would remain congested, for this is why the justification for an express lane exists in the first place. No one wants congestion in the GP lanes. So the express lane provides an option, not a full solution. Indeed, if congestion in the GP lanes ever dissolves, than (sic) the incentive to use an express lane would dissolve too.” Neil SpillerProgram Manager, Access ManagementFHWA Office of Operations- Office of Travel Managementemail communication approved by FHWA Public Affairs Office,Feb 4, 2013 (emphasis added)

  16. Toll project ensures congestion- 2 • “The analysis included in the (toll project) indicated modest improvements to average travel speed (all vehicles) and person trips processed with minimal impact to the travel speed in the existing general purpose lanes.” -- MUMPO TCC I-77 Task Force Meeting August 8, 2012 RFP Issues memo, August 13, 2012 Bill Coxe, Chair, Technical Coordinating Committee, Mecklenburg-Union Metropolitan Planning Organization

  17. Toll project ensures congestion - 3 Average Commute Time In GP Lanes- Charlotte to Mooresville Commute Time Lengthens By An Hour per Day Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

  18. Toll project ensures congestion- 4 “A result of increasing tolls with the objective of maximizing revenue is that the HOT lanes would operate under a condition where their utilization would be well below capacity thus by definition, not providing the maximum congestion relief in the corridor.” Source: I-77 HOT Lanes Technical Memorandum #4, p 12, Stantec, May 21, 2012 (emphasis added) Private Toll Lanes Are Not a Solution for I-77

  19. Project Purpose “2.2 Summary of Project Purpose The purpose of the proposed action is to provide immediate travel time reliability along I-77 from Uptown Charlotte to the Lake Norman area. Because the project is designed to address an immediate need, the opening and design years are both proposed for 2017.” (emphasis added) I am unable to find “travel time reliability” in any NCGS

  20. Toll Rates 2015 $20 Round Trip When Toll Lanes Open (2011 dollars) Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

  21. Toll Rates 2035 $40 Round Trip In Twenty Years (2011 dollars) Source: I-77 HOT Lanes Technical Memorandum #6, Stantec, Sept 4, 2012

  22. Total Toll Revenue (50 Yrs) $13,688,380,000 Or $91,250 for every LKN resident Source: I-77 HOT Lanes Technical Memorandum #7, Stantec, Sept 5, 2012

  23. Debt Service & Operating Expense CA 91 I-95 MIA HOU, DEN, MSP, SAN + 6 OTHERS Historically high tolls required from second smallest metro area Source: Financial Plan, (Comprehensive Agreement),Cintra, June 26, 2014; WI77 Analysis; “Managed Lane Pricing Guide”, FHWA, 2012

  24. A New Funding Paradigm: STI • Passed summer 2013 • HB 817 • Replaces Equity Formula • More data-driven • Using objective criteria

  25. The Legislature has determined congestion mitigation is a priority • GS 136-189.11.1 Transportation Investment Strategy Formula The P3 Toll Project Fails This Priority

  26. NCDOT STI Scores for Hypothetical I-77 GP Projects Source: “STI & I-77” press release, NCDOT, July 24, 2014 How Does This Rank Against Other Statewide Projects?

  27. Highest scoring funded project  I77 GP Project  I77 GP Project 73 “Statewide” funded projects  I77 GP Project  I77 GP Project Lowest I77 scores higher than 25 funded projects Projects to be funded Projects unfunded I-77 GP project through Lake Norman Lowest scoring funded project Source: STI 9-24-14 STI 3.0 Total Score 377 Unfunded Projects A General Purpose Lane Project Would Likely Be Funded Under STI…

  28. Short time to wait for answer • “Under the STI law all projects that were projected for construction after July 1, 2015 are subject to scoring under the new funding formula.” • “Because the I-77 North Managed Lanes (North of I-277) project is scheduled to begin construction before July 1, 2015 it is not subject to the new law and was not scored under STI.” NCDOT has discussed tolling I-77 since 2007. Source: “STI & I-77” press release, NCDOT, July 24, 2014

  29. Conclusions • The I-77 HOT Lane Project • Does not solve the congestion problem • Burdens middle and low income commuters with high tolls or excessive, increasing congestion- it’s a rich man’s road • Siphons $13.6B out of our local economy • Essentially eliminates the possibility of improvements for 50 years • Involves substantial taxpayer obligation for a private project from which a private company will profit • Costs the taxpayer more than a public project • Carries significant risk of default • Does not serve the public interest 50 years of tolling can wait another four months.

  30. In Summary • The private toll lane project does not serve the public interest • It does not alleviate congestion… it ensures it. 50 years of tolling can wait another four months.

  31. STI Corridor Cap • “No more than 10% (or about $200 million) may be assigned to any one project or group of projects within the same corridor during a five year period.” • …”I-77 South projects would out score, and use all of the corridor funds available for at least the next ten years….” • “Right of way purchase for the I-77 South projects begin in 2024, with actual construction still further out.” Rather than a 10 year wait, we have a 9 year window to widen I-77 Source: “STI & I-77” press release, NCDOT, July 24, 2014

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