Update on SR 520 Toll Rates

Joint Transportation Committee

July 15, 2010

Craig Stone, P.E.Toll Division Director

Paula Hammond, P.E.Secretary of Transportation

Steve ReinmuthChief of Staff

Dave Dye, P.E.Deputy Secretary

Commissioner Dick FordWashington State Transportation Commission

Agenda

• Background of Toll Rate Process

Craig Stone

• Recap of toll assumptions and potential exemptions

Craig Stone

• Traffic and Revenue Results

Craig Stone

• Preliminary Commission Recommendation for Purposes of

Financial Analysis

Commissioner Ford

• Next Steps

Craig Stone

2

Background on Toll Rate Process

• ESHB 2211 directed the Commission to set a variable

schedule of toll rates to maintain travel time, speed and

reliability on the corridor and generate the necessary

revenue required to meet the redemption of bonds and

interest payments on bonds.

• The Commission began the discussion of issues

regarding toll rates in December 2009.

• Since December, the Commission has reviewed updated

information regarding the SR 520 project, traffic and

revenue, and finance planning.

3

Recap of Toll Assumptions(Preliminary Items Under Consideration for the Final SR 520 Toll Rates)

Two-tier toll schedule

– Base schedule for pre-paid Good to Go! accounts

– Higher schedule (+ $1.50) for Pay by Mail transactions

Variable tolls

– Higher tolls during peak times and lower tolls off-peak

– Weekend variable tolls on a different, lower schedule

Toll escalation to keep pace with inflation over time

No overnight tolls during construction period

Trucks pay a multiple of the auto toll based on axle count

Toll exemptions

– Transit, private coaches and agency sanctioned vanpools exempt per

UPA

– WSP, WSDOT bridge maintenance vehicles, vehicles on emergency calls

4

Initial SR 520 Toll Scenarios for

Investment Grade Analysis

Scenario A: Toll Schedule from Tolling Implementation Committee

Scenario 7

Focus is a balance of revenue and throughput.

Scenario B: Revenue Maximizing Toll rates

Focus is revenue.

Scenario C: Optimize Traffic Throughput on SR 520

Focus is on traffic management.

Scenario D: Scenario A PM toll rates with higher AM and Off Peak tolls

Focus is a balance of revenue and throughput, but with a bit more focus

on revenue by raising off peak tolls.

Originally Scenario “C” was crafted for traffic operations, however the traffic results from

the other three scenarios provided the traffic operations benefit to SR 520 and as such

Scenario “C” is no longer carried forward.

5

FY 2011 Peak Hour/Direction Speed Change: SR 520 Toll Financial Scenarios A, B, D

5

5

5405

405

405

90

90

520

520

99

99

509

99

518

169

202

900

522

522

PugetSound

167

LakeSammamish

405

522

5

524

522999

203

203

90

Edmonds

Lynnwood

Burien

Kingsgate

Bothell

Shoreline

Renton

RedmondKirkland

BellevueSeattle

FY 2011 PM $3.50

Eastbound

I-405 South EndA: minimal changeB: minimal changeD: minimal change

SR 522A : ~ 5 mph slowerB: 5 to 10 mph slowerD: ~ 5 mph slower

I-5 North EndA: minimal changeB: minimal changeD: minimal change

I-90A: 5 to 10 mph slowerB: 10 to 15 mph slowerD: 5 to 10 mph slower

5

5

5405

405

405

90

90

520

520

99

99

509

99

518

169

202

900

522

522

PugetSound

167

LakeSammamish

405

522

5

524

522999

203

203

90

FY 2011 AM $2.80

WestboundEdmonds

Lynnwood

Burien

Kingsgate

Bothell

Shoreline

Renton

RedmondKirkland

BellevueSeattle

I-405 South EndA: minimal changeB: minimal changeD: minimal change

SR 522A : ~ 5 mph slowerB: 5 to 10 mph slowerD : ~ 5 mph slower

I-5 North EndA: minimal changeB: minimal changeD: minimal change

I-90A: 5 to 10 mph slowerB: 10 to 15 mph slowerD: 5 to 10 mph slower

SR 520 GPA: ~ 20mph fasterB: ~ 20mph fasterD: ~ 20mph faster

SR 520 GPA: ~ 20mph fasterB: ~ 20mph fasterD: ~ 20mph faster

April refers to the Current Toll Rate Setting and Initial Investment Grade Analysis

TIC is the Tolling Implementation Committee analysis from the summer/fall of 2008

Tolls are shown in FY year of analysis and are assumed to increase at 2.5% per year6

$0 M

$100 M

$200 M

$300 M

$400 M

$500 M

$600 M

$700 M

$800 M

Prior 2010 2011 2012 2013 2014 2015 2016 2017

Fiscal Year

Sources and Uses after Financing – Scenario D Tolls

Unfunded Gap

Toll Backed Bonds

Pay-As-You-Go Net Toll Revenues

Bonds Secured by Federal Funding

Pay-As-You-Go Federal Funding

Nickel, TPA & Other State Funding

$2.48 B Floating Bridge, Landings & Eastside ($2.62 B before sales tax deferral)

Program Cost (after sales tax deferral) = $2.48 BState Funding = $0.55 BFederal Funding = $0.86 B

• 91% Bond Proceeds• 9% Pay-As-You-Go Federal Funding

Toll Funding = $1.07 B• 44% Triple Pledge Toll Bonds• 50% Stand-Alone Toll Revenue Bonds• 6% Pay-As-You-Go Net Toll Revenues

Under Scenario D assumptions, the $2.62 B

Project Financing Looks Promising…

7

Alternative D.1 – 2.5% Annual Increases • 15% Step in FY 2017 • AM = PM

Alternative 4.1 – 2.5% Annual Increases• No Step Increase • AM = PM

Scenario D – 2.5% Annual Increases • 20+% Step Increase in All Rates • AM < PM Initially

Scenario A – 2.5% Annual Increases • 20% Step Increase in Peak Rates • AM < PM

Alternative Toll Schedule Financial Results

Financial Capacity Comparison of Toll Scenarios A and D

with Commission Alternatives 4.1 and D.1

8

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Fiscal Year

Scenario A

Scenario D

Alternative 4.1

Alternative D.1

Max Revenue Tolls

Comparison of AM Peak Toll Rates

Preliminary Analysis for

Financial Planning Purposes 9

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Fiscal Year

Scenario A

Scenario D

Alternative 4.1

Alternative D.1

Max Revenue Tolls

Comparison of PM Peak Toll Rates

Preliminary Analysis for

Financial Planning Purposes 10

Spring 2011 Weekday Toll Rates –

Alternative 4.1

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

12–1 A

M

1–2 A

M

2–3 A

M

3–4 A

M

4–5 A

M

5–6 A

M

6–7 A

M

7–8 A

M

8–9 A

M

9–10 A

M

10–11 A

M

11 A

M –

12 P

M

12–1 P

M

1–2 P

M

2–3 P

M

3–4 P

M

4–5 P

M

5–6 P

M

6–7 P

M

7–8 P

M

8–9 P

M

9–10 P

M

10–11 P

M

11 P

M–12 A

M

Weekday SR 520 Bridge Initial Toll Rates in FY 2011 — Alternative 4.1

Pay-by-Mail (Post-pay) Toll Rates

Good to Go! (Pre-paid Account) Toll Rates

Week-day

AM Peak Maximum

Weekday PM Peak

Maximum

No tolls assumed to be charged between

11 PM and 5 AM during the pre-

completion period

11Preliminary Analysis for

Financial Planning Purposes

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

12–1 A

M

1–2 A

M

2–3 A

M

3–4 A

M

4–5 A

M

5–6 A

M

6–7 A

M

7–8 A

M

8–9 A

M

9–10 A

M

10–11 A

M

11 A

M –

12 P

M

12–1 P

M

1–2 P

M

2–3 P

M

3–4 P

M

4–5 P

M

5–6 P

M

6–7 P

M

7–8 P

M

8–9 P

M

9–10 P

M

10–11 P

M

11 P

M–12 A

M

Weekend SR 520 Bridge Initial Toll Rates in FY 2011 — Alternative 4.1

Pay-by-Mail (Post-pay) Toll Rates

Good to Go! (Pre-paid Account) Toll Rates

Weekend Maximum

No tolls assumed to be charged between

11 PM and 5 AM during the pre-

completion period

Spring 2011 Weekend Toll Rates –

Alternative 4.1

Preliminary Analysis for

Financial Planning Purposes 12

Weekdays Weekends

Good

To Go!

Pay-by-

Mail

Good

To Go!

Pay-by-

Mail

12–1AM

1–2AM

2–3AM

3–4AM

4–5AM

5–6AM 1.80$ 3.30$

6–7AM 3.10$ 4.60$

7–8AM

8–9AM

9–10AM 3.10$ 4.60$

10–11AM

11AM –12PM

12–1PM

1–2PM

2–3PM 3.10$ 4.60$

3–4PM

4–5PM

5–6PM

6–7PM 3.10$ 4.60$

7–8PM

8–9PM

9–10PM

10–11PM

11PM –12AM Toll-free Toll-free Toll-free Toll-free

Toll-free Toll-free Toll-free Toll-free

1.80$ 1.10$ 3.30$ 2.60$

1.65$ 3.15$ 2.50$ 4.00$

2.20$ 3.70$

3.80$ 5.30$

1.10$ 2.60$

3.80$ 5.30$

1.65$ 3.15$

2.50$ 4.00$

Spring 2011 Toll RatesAlternative 4.1 Summary

• $3.80 weekday peak toll

starting in FY 2011

• $2.20 maximum weekend toll

• Pay-by-Mail toll $1.50 higher

• 2.5% annual escalation

• No step increase in FY 2017

– $1.25 overnight toll added

Preliminary Analysis for

Financial Planning Purposes 13

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

12–1 A

M

1–2 A

M

2–3 A

M

3–4 A

M

4–5 A

M

5–6 A

M

6–7 A

M

7–8 A

M

8–9 A

M

9–10 A

M

10–11 A

M

11 A

M –

12 P

M

12–1 P

M

1–2 P

M

2–3 P

M

3–4 P

M

4–5 P

M

5–6 P

M

6–7 P

M

7–8 P

M

8–9 P

M

9–10 P

M

10–11 P

M

11 P

M–12 A

M

Weekday SR 520 Bridge Initial Toll Rates in FY 2011 — Alternative D.1

Pay-by-Mail (Post-pay) Toll Rates

Good to Go! (Pre-paid Account) Toll Rates

No tolls assumed to be charged between

11 PM and 5 AM during the pre-

completion period

Week-day

AM Peak Maximum

Weekday PM Peak

Maximum

Spring 2011 Weekday Toll Rates –

Alternative D.1

Preliminary Analysis for

Financial Planning Purposes 14

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

12–1 A

M

1–2 A

M

2–3 A

M

3–4 A

M

4–5 A

M

5–6 A

M

6–7 A

M

7–8 A

M

8–9 A

M

9–10 A

M

10–11 A

M

11 A

M –

12 P

M

12–1 P

M

1–2 P

M

2–3 P

M

3–4 P

M

4–5 P

M

5–6 P

M

6–7 P

M

7–8 P

M

8–9 P

M

9–10 P

M

10–11 P

M

11 P

M–12 A

M

Weekend SR 520 Bridge Initial Toll Rates in FY 2011 — Alternative D.1

Pay-by-Mail (Post-pay) Toll Rates

Good to Go! (Pre-paid Account) Toll Rates

Weekend Maximum

No tolls assumed to be charged between

11 PM and 5 AM during the pre-

completion period

Spring 2011 Weekend Toll Rates –

Alternative D.1

Preliminary Analysis for

Financial Planning Purposes 15

Weekdays Weekends

Good

To Go!

Pay-by-

Mail

Good

To Go!

Pay-by-

Mail

12–1AM

1–2AM

2–3AM

3–4AM

4–5AM

5–6AM 1.60$ 3.10$

6–7AM 2.80$ 4.30$

7–8AM

8–9AM

9–10AM 2.80$ 4.30$

10–11AM

11AM –12PM

12–1PM

1–2PM

2–3PM 2.80$ 4.30$

3–4PM

4–5PM

5–6PM

6–7PM 2.80$ 4.30$

7–8PM

8–9PM

9–10PM

10–11PM

11PM –12AM Toll-free Toll-free Toll-free Toll-free

Toll-free Toll-free Toll-free Toll-free

1.10$ 3.10$ 2.60$ 1.60$

1.65$ 3.15$ 2.25$ 3.75$

2.20$ 3.70$

3.50$ 5.00$

1.10$ 2.60$

3.50$ 5.00$

1.65$ 3.15$

2.25$ 3.75$

Spring 2011 Toll RatesAlternative D.1 Summary

• $3.50 weekday peak toll

starting in FY 2011

• $2.20 maximum weekend toll

• Pay-by-Mail toll $1.50 higher

• 2.5% annual escalation

• 15% step increase in FY 2017

– 50¢ increase in peak toll

– 30¢ increase in early morning /

late evening toll

– $1.25 overnight toll added

Preliminary Analysis for

Financial Planning Purposes 16

Preliminary Commission PositionAs of July 15, 2010

• Based upon preliminary data and analysis submitted to date, the

Commission has identified a draft preliminary base AM/PM range of peak

rates for 2011 of $3.50 - $3.80 with rates varying at lesser amounts during

off-peak times.

• This preliminary range of rates is subject to change as the Commission

receives more data and analysis. It has been identified now only to allow

for the advancement of developing detailed financial plans and refined

traffic modeling.

• The Commission will release its official toll rate & policy proposal for

public input in November 2010 and rates will not take effect until

January 2011.

17

Next Steps

18

Questions?

For more information, please contact:

Craig Stone, Director

WSDOT Toll Division

at

206-464-1222, or StoneC@wsdot.wa.gov.

19