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08 August 23, 2018 Toll policy and operationsComments are welcomed by the Commission. If you wish to provide comments to the Commission, please complete and submit a Speaker Card to the Clerk of the Board. MEETING AGENDA Toll Policy and Operations Committee Time: 11:00 a.m. Date: August 23, 2018 Location: Riverside County Transportation Commission County of Riverside Administration Center 4080 Lemon St, Third Floor, Riverside CA 92501 COMMITTEE MEMBERS Lloyd White / Nancy Carroll, City of Beaumont Deborah Franklin / Art Welch, City of Banning Jim Hyatt / Linda Molina, City of Calimesa Adam Rush / Clint Lorimore, City of Eastvale Dana Reed / To Be Appointed, City of Indian Wells Brian Berkson / Verne Lauritzen, City of Jurupa Valley Victoria Baca / Ulises Cabrera, City of Moreno Valley Michael M. Vargas / Rita Rogers, City of Perris Ben J. Benoit / Timothy Walker, City of Wildomar STAFF Anne Mayer, Executive Director Michael Blomquist, Toll Program Director AREAS OF RESPONSIBILITY Policies involving the Commission’s Toll Facilities Setting Tolls or Rates Considering Contracts with Vendors Working on the Toll Program Statewide and Federal Legislative Issues Regarding Tolling Outreach and Marketing of the Toll Facilities Interactions with Neighboring Jurisdictions Regarding Toll Matters User-Based Funding Programs and Future Opportunities for Toll Facility Development in Riverside County COMM-TPOC-00001 RIVERSIDE COUNTY TRANSPORTATION COMMISSION TOLL POLICY AND OPERATIONS COMMITTEE www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 11:00 a.m. Thursday, August 23, 2018 March Field Conference Room (Formerly Conference Room A) County of Riverside Administrative Center 4080 Lemon Street, Third Floor Riverside, California In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed 72 hours prior to the meeting, which are public records relating to open session agenda items, will be available for inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission’s website, www.rctc.org. In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal Transit Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance is needed to participate in a Commission meeting, including accessibility and translation services. Assistance is provided free of charge. Notification of at least 48 hours prior to the meeting time will assist staff in assuring reasonable arrangements can be made to provide assistance at the meeting. 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE 4. ELECTION OF OFFICERS 5.PUBLIC COMMENTS – Each individual speaker is limited to speak three (3) continuous minutes or less. The Committee may, either at the direction of the Chair or by majority vote of the Committee, waive this three minute time limitation. Depending on the number of items on the Agenda and the number of speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous minutes. Also, the Committee may terminate public comments if such comments become repetitious. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Committee shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items. Toll Policy and Operations Committee August 23, 2018 Page 2 Under the Brown Act, the Board should not take action on or discuss matters raised during public comment portion of the agenda which are not listed on the agenda. Board members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. 6.ADDITIONS/REVISIONS (The Committee may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Committee subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Committee. If there are less than 2/3 of the Committee members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda.) 7.TOLL PROGRAM OVERVIEW AND FISCAL YEAR 2017-2018 OPERATING RESULTS Page 1 Overview This item is for the Committee to: 1)Receive and file a presentation providing an overview of the Commission’s toll program and the results from the latest year of operations. 8.TOLL BUILDING PROJECTS OVERVIEW Page 14 Overview This item is for the Committee to: 1)Receive and file a presentation providing an overview of the Commission’s toll building projects. 9.RCTC EXPRESS LANES BRANDING Page 33 Overview This item is for the Committee to: 1)Receive and file a presentation regarding brand identity for the express lanes and status of the ongoing process. 10.RCTC 91 EXPRESS LANES TOLL POLICY Page 44 Overview This item is for the Committee to: Toll Policy and Operations Committee August 23, 2018 Page 3 1)Approve Resolution 18-014, “Amended and Restated Resolution of the Riverside County Transportation Commission Regarding the RCTC 91 Express Lane Toll Policy” 2)Forward to the Commission to conduct a public hearing at its October meeting. 11.COMMISSIONERS / STAFF REPORT Overview This item provides the opportunity for the Commissioners and staff to report on attended and upcoming meeting/conferences and issues related to Commission activities. 12.ADJOURNMENT The next Toll Policy and Operations Committee meeting is scheduled to be held at 11:00 a.m., Thursday, February 28, 2019, March Field, Third Floor, County Administrative Center, 4080 Lemon Street, Riverside. AGENDA ITEM 7 Agenda Item 7 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2018 TO: Toll Policy and Operations Committee FROM: Michael Blomquist, Toll Program Director THROUGH: Anne Mayer, Executive Director SUBJECT: Toll Program Overview and Fiscal Year 2017-2018 Operating Results STAFF RECOMMENDATION: This item is for the Committee to receive and file a presentation providing an overview of the Commission’s toll program and the results from the latest year of operations. BACKGROUND INFORMATION AND DISCUSSION: In December of 2006, the Commission approved the establishment of a toll program including the development of express lane projects and their future operation . The Commission opened its first express lane facility to customers in March 2017. A brief overview of the toll program and operating results from the first full fiscal year will be summarized. Attachment: Toll Program Overview PowerPoint Presentation 1 Michael Blomquist, Toll Program Director TOLL PROGRAM OVERVIEW AND 91 EXPRESS LANES FY2017/18 RESULTS Toll Policy and Operations Committee Meeting August 23, 2018 12 Why do we have a toll program? •Established 10-Year Western County Highway Delivery Plan in 2006 –Focus on four major corridors –Address unprecedented growth and demand –Act and deliver projects quickly –Need for closing major funding gaps •Tolling precedent: California and nationally •Desire to exceed Measure A requirements 23 Toll program milestones •Western County Highway Delivery Plan -2006 •State tolling authority: SR-91 (2008), I-15 (2009) •Federal tolling authority: SR-91 (2009), I-15 (2009) •91 Project Design-Build authority -2010 •91 Project design-build contract and project financing -2013 •91 Express Lanes open -2017 •I-15 toll and design-build contract awards and project financing -2017 •Purchase toll operations buildings -2017 34 Prepared to operate! 4 •Conducted an organization study –Planned opening day toll operations and agency structure –Planned future operations •Recruited and hired toll operations staff –Maintained a lean structure, hired experienced specialists •Purchased toll operations building –Build-to-suit for long-term operation needs •Executed toll operating contracts –private sector, OCTA, CHP, FSP, Caltrans 5 A new reality –we have an enterprise 5 •Customers –Provide benefit for a toll, customer-focused, service-oriented •Debt –91 Express Lanes borrowed $598M, 35-year pay back –15 Express Lanes borrowed $152M, 35-year pay back •Road maintenance and operations –Annual maintenance and periodic major rehabilitation –Manage traffic demand •Incident management –24/7/365 operations •Long-term horizon –Embrace industry change, future technology impacts6 Annual results –first full fiscal year:17-18 How many customers are using the lanes? Which destination did they prefer? 6 Actual Projected Regular Users 11.3 million 7.0 million Carpool (HOV3+) Users 3.2 million 2.5 million Total Users 14.5 million 9.5 million McKinley Avenue I-15 South Total Users 8.8 million, 61%5.7 million, 39% 7 Annual results –first full fiscal year:17-18 How much revenue was generated from the lanes? 7 Actual Projected Regular Users $47.5 million $18.9 million Carpool (HOV3+) Users $0.4 million $0 million Total Revenue $47.9 million $18.9 million 8 Annual results –first full fiscal year:17-18 What about the peak periods of travel? 8 Morning Peak: 4-10a.m. westbound Afternoon Peak: 2-8p.m. eastbound Carpool (HOV3+) Users 19%24 % Highest Toll $17.90 $16.40 Highest Traffic Hour 5 am,westbound 3,440 2 pm, eastbound, 3,290 9 Annual results –first full fiscal year:17-18 How many new 91 Express Lanes accounts were opened? How many transponders were issued? 9 Added in FY 2017-2018 Total Accounts 10,646 140,694 Transponders 16,996 213,993 10 Transponders in Circulation - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 BATA SBX LA Metro Sandag SR 91 TCA Grand Total 11 Annual results –first full fiscal year:17-18 Who operates the lanes for the Commission? 11 Annual Contract Value Cofiroute USA -Toll Operator, total staff: 101 -Anaheim TOC and back office -Corona Customer Service Center $6,098,628 Steve’s Towing -Customer Roadside Assistance $434,000 California Highway Patrol -Toll Enforcement $500,000 Caltrans -Routine lane maintenance $165,000 12 Thank you 1213 AGENDA ITEM 8 Agenda Item 8 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2018 TO: Toll Policy and Operations Committee FROM: John Tarascio, Toll Building Project Manager THROUGH: Michael Blomquist, Toll Program Director SUBJECT: Toll Building Projects Overview STAFF RECOMMENDATION: This item is for the Committee to receive and file a presentation providing an overview of the Commission’s toll building projects. BACKGROUND INFORMATION AND DISCUSSION: In support of the current and future needs of the Commission’s toll program, three building facilities have been identified to provide operations, maintenance and customer support services. A brief overview of the projects being undertaken to prepare these building facilities for service will be summarized. Attachment: RCTC Toll Building Program PowerPoint Presentation 14 RCTC’s Toll Building Program Toll Policy and Operations Committee August 23, 2018 115 Toll Building Program 1.I-15 Express Lanes Regional Operations Center (ROC) 2.91 Express Lanes Customer Service Center (91 CSC) 3.Facilities and Maintenance (FAM) Building 216 Building Locations Facilities & Maintenance Bldg. 120 N. Joy St. 91 Customer Service Center 301 Corporate Terrace Cir. Regional Operations Center 291 Corporate Terrace Cir. 317 I-15 Express Lanes Regional Operations Center (ROC) & 91 Express Lanes Customer Service Center (91 CSC) 418 Corporate Terrace Business Park Corporate Terrace Business Park •10-Acre Master Planned Development •Corporate Terrace Owners Association 519 291 & 301 Building Photos 620 ROC & 91 CSC Facility Descriptions •I-15 Express Lanes Regional Operations Center (ROC) –Required as Part of the I-15 Express Lanes Project (I-15 ELP) –Primary Functions: •Centralized Facility for I-15 Express Lanes Operations •Toll Operations Center •Back Office (Accounts, Call Center, Violations, Administration) •Lane and Office Technology Maintenance •91 Express Lanes Customer Service Center (91 CSC) –Current Facility Located in Corona (Sampson Ave. & McKinley St.) –Facility Being Relocated to 301 Corporate Terrace Building –Primary Functions: •91 Express Lanes Customer Account Administration & Service (Accounts, Call Center, Violations, etc.) •Future Consolidated 91 / I-15 Express Lanes Customer Service Center 721 History –ROC & 91 CSC •July 2016 (Ad-Hoc Committee Meeting) –Authorization to pursue the purchase of an existing office building to serve as ROC. •November 2016 (Commission Meeting) –Authorization to submit a purchase offer for 291 & 301 Corporate Terrace Cir. buildings •April 2017 –Finalized purchase of the 291 & 301 Corporate Terrace Cir. buildings •August 2017 –RCTC proposal to utilize 301 Building as new 91 Express Lanes CSC location •January 2018 –RCTC/OCTA agree to move forward with joint use I-15 / 91 Express Lanes CSC at 301 Building •June 2018 –Lease Agreement executed with OCTA for the joint use of the 301 Building as the 91 CSC. 822 •291 Building –Regional Operations Center (ROC) o Floor Area: 9,372 SF o Build-out Needs: Scope of Work RCTC Contracts o Project Highlights: Architect/Engineer Selected for Tenant Improvement Design……….……. November 2017 Commission Meeting Design of Tenant Improvements………………………………………………November 2017 to July 2018 Procurement of Construction Contractor……………………………………..July to August 2018 (Ongoing) Award Construction Contract………………………………………………….. September 2018 Commission Meeting Construction Build-out………………………………………………………….. September 2018 to May 2019 o Key Dates: Award of Construction Build-out Contract –9/12/18 Turnover Date to TSP (for Equipment Installation & Testing): 7/24/19 ROC BUILD-OUT 923 ROC FLOORPLAN SERVER ROOM CONTROL ROOM CALL CENTER RCTC OFFICES/ FUTURE USE 1024 •301 Building –91 Customer Service Center (91 CSC) o Floor Area: 6,355 SF o Build-out Needs: Scope of Work RCTC Contracts o Project Highlights: Architect/Engineer Services…………………………………………………… September 2017 Design of Tenant Improvements………………………………………………September 2017 to July 2018 Procurement of Construction Contractor……………………………………..July to August 2018 (Ongoing) Award Moving/Relocation Consultant Contract…………............................ July 2018 Award Construction Contract………………………………………………….. September 2018 Commission Meeting Construction Build-out………………………………………………………….. September 2018 to February 2019 o Key Date: Cutover Date to 301 Building: February 2019 91 CSC BUILD-OUT & RELOCATION 1125 91 CSC FLOORPLAN 91 & I-15 EXPRESS LANES CUSTOMER SERVICE COUNTER 91 EXPRESS LANES CALL CENTER 1226 Facilities & Maintenance (FAM) Building 1327 •Facilities and Maintenance (FAM) Building –Primary Functions: •Storage of I-15 Express Lanes Operations & Maintenance (O&M) Vehicles, Equipment, and Materials •Office for Maintenance Staff •General Maintenance Activities –History: •Acquired by the Commission During the SR-91 Corridor Improvement Project –April 2012 •Remnant Parcel After the SR-91 Corridor Improvement Project •Identified by Staff to Meet the Operations & Maintenance Needs for the I-15 Express Lanes –Facility Characteristics •Office Space: 3,056 SF •Warehouse Space: 7,675 SF •Land Area: 0.94 Ac. FAM BUILDING DESCRIPTION 1428 •120 N. Joy St. –Facilities & Maintenance (FAM) Building o Build-out Needs: Scope of Work RCTC Contracts o Project Highlights: Civil Engineer Selected for Sitework Improvements………………….……. November 2017 Commission Meeting Civil Engineering Design……….………………………………………………November 2017 to July 2018 Procurement of Construction Contractor……………………………………..July to August 2018 (Ongoing) Award Construction Contract………………………………………………….. September 2018 Commission Meeting Construction Build-out………………………………………………………….. September 2018 to May 2019 o Key Dates: Award of Turnover Date to Toll Services Provider (Kapsch): July 2020 FAM BUILD-OUT 1529 FAM BUILDING LOCATION OVERVIEW 1630 FAM BUILDING PHOTOS 1731 FAM BUILDING PARKING PLAN 1832 AGENDA ITEM 9 Agenda Item 9 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2018 TO: Toll Policy and Operations Committee FROM: Jennifer Crosson, Toll Operations Manager THROUGH: Michael Blomquist, Toll Program Director SUBJECT: RCTC Express Lanes Branding STAFF RECOMMENDATION: This item is for the Committee to receive and file a presentation regarding brand identity for the express lanes and status of the ongoing process. BACKGROUND INFORMATION: In March 2018, the Commission awarded Agreement No. 18-31-047-00 to Sherry Matthews, Inc., DBA Sherry Matthews Advocacy Marketing (Sherry Matthews). Branding of the RCTC Express Lanes was included in the Sherry Matthew’s scope of work. Sherry Matthews has been working with staff to establish the brand identity of the RCTC Express Lanes. The attached presentation provides information on the need for the creation of a brand identity for the express lanes and the status of the ongoing process. Attachment: RCTC Express Lanes Branding PowerPoint Presentation 33 Catherine Larson,Principal Consultant RCTC Express Lanes Branding Toll Policy and Operations Committee August 23,2018 134 Today RCTC Express Lanes Branding One Legacy Brand Two Faci lities Two Counties Two Agenci es Statewi de Transponder Legacy Brand + 235 2020 RCTC Express Lanes Branding RCTC’s Own Facility (I-15) + Future Faciliti es + Riverside Express + 336 New Brand Components •Umbrella name •Brand hierarchy for RCTC Express Lanes (I-15 and beyond) –91 Express Lanes and 15 Express Lanes become sub-brands of RCTC umbrella brand •Color Palette •Logo •FasTrak remains the transponder RCTC Express Lanes Branding 437 RCTC Brand RCTC Express Lanes Branding •Effective •Innovative •Solution-oriented •Informative •Responsible •Helpful •Empathetic 538 Program Name Quantitative online survey –Evaluated 7 names –June 11 –15,2018 –429 completed surveys –Respondents from Riverside,Orange and San Bernardino counties and work or live in Riverside County Ranked in Top 3 RCTC Express Lanes Branding 639 Color Palette RCTC Express Lanes Branding 740 Graphic Standards & Style Guide •Rolled out with the 15 Express Lanes Project •Used for all program communications including customer correspondence, website, collateral materials •Important for consistency RCTC Express Lanes Branding 841 Express Lanes Logo/Identity Attributes RCTC Express Lanes Branding •Speed •Convenient •Freedom •Connected •Integrated •Community •Modern •Streamlined •Clean 942 What’s next RCTC Express Lanes Branding •Finalize logo •Develop graphic standards and style guide •Update TPOC at next meeting 1043 AGENDA ITEM 10 Agenda Item 10 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2018 TO: Toll Policy and Operations Committee FROM: Jennifer Crosson, Toll Operations Manager THROUGH: Michael Blomquist, Toll Program Director SUBJECT: RCTC 91 Express Lanes Toll Policy STAFF RECOMMENDATION: 1)Approve Resolution 18-014, “Amended and Restated Resolution of the Riverside County Transportation Commission Regarding the RCTC 91 Express Lane Toll Policy” and 2)Forward to the Commission to conduct a public hearing at its October meeting. BACKGROUND INFORMATION AND DISCUSSION: In June 2012, the Commission adopted Resolution 12-019 “Resolution of the Riverside County Transportation Commission Regarding the RCTC 91 Express Lanes Toll Policy.” The policy adopted in June of 2012 was modeled after the Orange County Transportation Authority’s (OCTA) toll policy assuming that the OCTA and RCTC portions of the 91 Express Lanes would operate similarly and therefore demand could be stimulated or managed under identical policies. The Express Lanes opened in March of 2017 with demand far surpassing original projections. This has required frequent toll rate adjustments over the first 16 months to accomplish free-flow operations. The RCTC 91 Express Lanes are intended to provide free-flow travel throughout the two-lane section of the facility. However, at the eastern end of the project, where the two lanes diverge into single lanes in the eastbound direction, the facility can experience significant delays during some afternoon peak periods. A similar pattern can be observed in the morning where two single lanes merge into two lanes in the westbound direction, and traffic delays occur during the peak morning rush hours. Physical improvements and toll rate changes have been made to reduce delays at the eastern end, but backups continue to occur westbound in the morning and eastbound in the afternoon on certain key days of the week. 44 Agenda Item 10 The adopted toll policy provides for the use of time-of-day variable pricing and sets forth the methodology for adjusting toll rates. The policy established toll rates for each level of service (A through E) according to the Highway Capacity Manual using the same toll rate per mile used in the OCTA toll policy. The individual levels of service provide a range of traffic volumes per hour based on the capacity for a two-lane facility. As express lane congestion increases (i.e level of service decreases), the associated toll rate per mile increases to manage demand and seek to maintain free-flow travel. Through regular monitoring staff and its traffic consultant Stantec have determined that each of the single lanes have different traffic capacities. Additionally, the demand for the McKinley Street destination is greater than the I-15 south destination. After extensive review and analysis of the Express Lanes performance, the pricing methodology has been changed to accomplish free-flow travel for each destination point served by the overall facility. In short, if travel demand to or from McKinley Street is greater than it is for I-15, the toll should be correspondingly higher to ensure free-flow travel. The current policy, which allows for toll rate adjustments based on traffic volumes in the two-lane portion of the facility, does not allow for adjustments to address the available capacity of each of the single-lane segments of the facility. The unanticipated need to manage traffic for each single lane segment of the facility is the primary reason modifications to the toll policy are being sought. The adopted toll policy also provided staff with greater flexibility in making toll adjustments more swiftly during the facility’s ramp up period. The ramp up period was intended to address operational concerns in cases of limited or uncertain demand, not the higher-than-expected demand that has been realized by the success of the facility. The adopted policy allows for toll rate adjustments every 12 weeks. With only 16 months of historical data for the Commission’s portion of the 91 Express Lanes traffic volumes and demand have yet to provide a stable environment during peak periods. This unstable environment and excess demand during peak Eastern End Single-lane 45 Agenda Item 10 periods are requiring more frequent monitoring of traffic and toll rate adjustments to effectively manage the Commission’s portion of the 91 Express Lanes. Amendments to the toll rate policy are being recommended to address the need to manage traffic at the single-lane portions of the facility and to provide the ability to make more frequent toll rate adjustments when needed. There are four main components of the toll policy for which changes are being sought: 1) level of service hourly volumes, 2) super-peak volume triggers, 3) super-peak toll adjustment amounts, and 4) annual inflation adjustment. A change to each of the four components is being recommended to allow the 91 Express Lanes to meet the goals established in the toll policy. Level of Service Hourly Volumes The level of service hourly volumes are used to establish the hourly toll rate based on traffic volumes. Level of service refers to the quality of traffic operations for a specific traffic volume with level of service A being relatively congestion-free and level of service E becoming congested. The current policy includes two-lane vehicle per hour volumes for each level of service and associated toll rates per mile. The RCTC 91 Express Lanes have single lane volume per hour constraints at the eastern and end of the facility. After 16 months of observation, it is theorized that the volume for each single lane of the facility is constrained and differs because of a shortened sight distance when entering the single lane, the switching of lanes and cutting into the queue prior to the merge or diverge by users, and the merging of traffic from the left at the westbound merge. During congested periods, motorists are slowing at the merge and diverge and once they enter the single-lane portion of the facility they do not regain speed at the rate expected. In the eastbound direction, customers retain a larger than standard headway, or distance between their vehicle and the vehicle in front of them reducing the vehicle capacity of the eastbound single lanes. It is theorized that after sitting in a slowed condition, customers are not confident that the increased speeds will be retained and react cautiously leaving a larger than standard distance between cars. In the westbound, it takes motorists approximately ½ mile to regain speed after the merge point although the two-lane portion of the facility ahead of them is free-flowing. Additionally, the number of vehicles per hour that each of the single lanes can process is not equal. To manage congestion in each single lane, it is necessary to set the toll rate according to the number of vehicles per hour for each single lane. Staff has analyzed the vehicle per hour capacity for each single lane of the facility and proposes revising the vehicles per hour for each level of service as follows: 46 Agenda Item 10 McKinley 15 South LOS Vehicles per Hour Toll* Toll* A 0 - 400 $1.50 $1.90 B 401 - 800 $2.20 $2.85 C 801 - 1,000 $4.05 $5.15 D 1,001 - 1,200 $5.15 $6.65 E (EB McKinley) 1,201 – 1,300 $6.70 n/a E (EB 15 South) 1,201 - 1,400 n/a $8.55 E (WB McKinley) 1,201 - 1,350 $6.70 n/a E (WB 15 South) 1,201 – 1,400 n/a $8.55 *Toll rates represent amounts as of July 1, 2018. Super-peak Volume Triggers During super-peak periods, demand exceeds the highest volume in the level of service table. In order to manage demand during these periods of high volume, the current toll policy provides for incremental toll increases when more than 3,200 vehicles per hour in the two-lane portion of the facility occur. In order to enact super-peak toll increases for the individual single-lane portions of the facility, it is being proposed that the volumes, which trigger a toll increase, be adjusted to match the single-lane volume capacity for each of the four single-lanes of the facility as follows: McKinley 15 South Eastbound 1,300 to 1,350 1,400 to 1,450 >1,350 >1,450 Westbound 1,350 to 1,400 1,400 to 1,450 >1,400 >1,450 The proposed volumes correspond with the capacity of each single-lane as determined through 16 months of analyzing the operation of each of the single lanes. When an average hourly traffic volume reaches the volume shown in the table above a toll rate increase is enacted. A lower volume level (e.g. 1,300-1,350) will trigger a lower toll rate increase than a higher volume level (e.g. >1,350) as specified in the super-peak toll adjustment amounts. If after a super-peak toll increase has been enacted, traffic drops below 1,200 vehicles per hour in the eastbound direction or 1,250 in the westbound direction a super-peak toll decrease would be enacted. These volumes represent the free-flow vehicle per hour condition for each direction of travel in the single-lane portion of the facility. Super-Peak Toll Adjustment Amounts The current toll policy allows for a super-peak toll increase in increments of $.75 or $1.00 depending on the average hourly daily traffic volume. The $.75 and $1.00 were in established in 2003 by OCTA and have not been adjusted for inflation. Inflation has diminished the impact of current allowable adjustments. Staff recommends the current $.75 be increased to $1.00 and the 47 Agenda Item 10 current $1.00 be increased to $1.30 to match the approximate 30% inflation increase between 2003 and 2018. There is currently a super-peak toll decrease of $.50 when the super-peak volumes decline. Like the super-peak toll increase, staff recommends the $.50 be increased to $.65 for the 30% inflation impact. This change will be sufficient to stimulate growth in traffic when needed. Annual Inflation Adjustment The current policy provides for an annual inflation adjustment, equal to the annual increase in the toll service provider lump sum contract, for tolls each year on July 1st. The current toll service provider contract provides for a 2% annual increase, which is not relevant to the value of money to a 91 Express Lanes user. Staff recommends tolls be adjusted annually on July 1st by an inflation adjustment tied to the Consumer Price Index for the region. The annual inflation amount will apply to the level of service toll rates, the super-peak toll rates, and the super-peak toll increase amount. Staff Recommendation The attached amended and restated toll policy recommends improvements to the methodology for adjusting toll rates to address characteristics unique to the RCTC 91 Express Lanes and the much higher than expected demand. In order to meet the toll policy goals of optimizing throughput at free flow speeds and balancing capacity and demand to serve customers who pay tolls as well as carpoolers who are offered discounted tolls, amendments to the toll policy are required. The chart below summarizes the current and recommended toll policy. Component Current Policy Recommended Policy 1.Level of Service hourly volumes Two-lane vehicle per hour volumes and toll rates for both directions Single lane vehicle per hour volumes for each eastbound and westbound direction 2.Super-peak volume triggers Two-lane vehicle per hour: Toll increase (1st trigger, 2nd trigger) 3,200 - 3,299, >3,300 Single-lane vehicle per hour: Toll increase (1st trigger, 2nd trigger) Eastbound McKinley 1,300 - 1,350, >1,350 15 South 1,400 – 1,450, >1,450 Westbound McKinley 1,350 – 1,400, >1,400 15 South 1,400 – 1,450, >1,450 48 Agenda Item 10 Toll decrease 2,720 Toll decrease Eastbound 1,200 Westbound 1,250 3. Super-peak toll adjustment amounts Increase $.75 and $1.00 Decrease $.50 Increase $1.00 and $1.30 Decrease $.65 4.Annual inflation adjustment Equal to Toll Service Provider contract increase Inflation adjustment tied to the region’s Consumer Price Index The changes outlined above and incorporated in the revised and restated toll policy provide a more accurate representation of the RCTC 91 Express Lanes operational constraints and corresponding toll setting needs. Therefore, staff recommends approval of Resolution 18-014, “Amended and Restated Resolution of the Riverside County Transportation Commission Regarding the RCTC 91 Express Lane Toll Policy”. Staff has begun analyzing the impact of the 15/91 Express Lanes Connector that is scheduled to open for operations in 2021-2022, on this 91 Express Lanes toll policy. Staff will return with a revised 91 Express Lanes toll policy recommended for approval prior to the opening of the 15/91 Express Lanes Connector. Attachments: 1)Resolution 18-014,“Amended and Restated Resolution of the Riverside County Transportation Commission Regarding the RCTC 91 Express Lane Toll Policy” 2)Amended and Restated RCTC 91 Express Lanes Toll Policy 49 ATTACHMENT 1 RESOLUTION NO. 18-014 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION ADOPTING THE AMENDED AND RESTATED RCTC 91 EXPRESS LANES TOLL POLICY WHEREAS, the Riverside County Transportation Commission (the “Commission”) has been, in accordance with its legislative and regulatory authority, operating two tolled Express Lanes in Riverside County located between the Orange County Line and Interstate 15 (“RCTC 91 Express Lanes”); WHEREAS, the Commission adopted its original RCTC 91 Express Lanes Toll Policy on June 7, 2012; WHEREAS, the Commission retains the authority to add, delete, or otherwise modify its policies and procedures; WHEREAS, the Commission desires to amend and restate, in its entirety, the original RCTC 91 Express Lanes Toll Policy to address higher than expected traffic demand, traffic management in the single-lane portions of the facility, realized express lane capacity, and annual toll rate inflation adjustments. WHEREAS, the Commission provided notice of a public hearing regarding adoption of this Resolution in a newspaper of general circulation in accordance with Government Code section 6062a. NOW, THEREFORE, be it resolved by the Riverside County Transportation Commission as follows: Section 1. The Riverside County Transportation Commission hereby adopts the Amended and Restated RCTC 91 Express Lanes Toll Policy attached as Exhibit A. The details of the policy have been approved by the Commission, following the conduct of a public hearing, during its actions on October 10, 2018 and shall be communicated to the financial community, toll facility users, and the general public. 50 APPROVED AND ADOPTED this October 10, 2018. SIGNATURE PAGE TO RESOLUTION NO. 18-014 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION ADOPTING THE AMENDED AND RESTATED RCTC 91 EXPRESS LANES TOLL POLICY _____________________________________ Dana W. Reed, Chair Riverside County Transportation Commission ATTEST: _________________________________ Lisa Mobley Clerk of the Board 51 ATTACHMENT 2 EXHIBIT A AMENDED AND RESTATED RCTC 91 EXPRESS LANES TOLL POLICY [attached behind this page] 52 05/09/2012 EXHIBIT A RCTC 91 Express Lanes Toll Policy Adopted September 12, 2018 Goals The goals for the RCTC 91 Express Lanes toll policy are to: •Provide a safe, reliable, and predictable commute for 91 Express Lanes customers; •Optimize vehicle throughput at free flow speeds; •Pay debt service and maintain debt service coverage; •Increase average vehicle occupancy; •Balance capacity and demand to serve customers who pay tolls as well as carpoolers with three or more persons who are offered discounted tolls; •Generate sufficient revenue to sustain the financial viability of the RCTC 91 Express Lanes; •Ensure all covenants in the Financing Documents are met; and •Provide net revenues for Riverside Freeway/State Route 91 corridor improvements.1 Definitions Exhibit I, “Definitions”, clarifies terms used in this RCTC 91 Express Lanes Toll Policy. Super Peak Hours The toll adjustment goals for Super Peak hours are to: a) reduce the likelihood of congestion by diverting traffic to other hours with available capacity; b) maintain free flow travel speed in the RCTC 91 Express Lanes; c) maintain travel time savings; d) accommodate projected growth in travel demand and; e) ensure that the toll road generates sufficient revenue to effectively operate the toll lanes and maintain a strong debt service position. The toll for use of the RCTC 91 Express Lanes during a Super Peak hour shall be determined as follows: 1.Hourly and Daily Traffic Volumes will be monitored on a rolling 12-week period basis. The review period of 12 weeks may be reduced to a shorter period during times of Abnormal Traffic Volumes. In the case where traffic is stabilized for Super Peak hours, toll adjustments may be included in the Non-Super Peak for a quarterly adjustment. _________________________ 1 As allowable under Senate Bill 1316. 53 2. Hourly and Daily Traffic Volumes that exceed the Hourly and Daily Traffic Volume Increase Thresholds stated in the table below, will be flagged for further evaluation. Segment Hourly and Daily Traffic Volume Increase Thresholds EB McKinley 1,200 EB I-15 South 1,200 WB McKinley 1,250 WB I-15 South 1,250 3. Hourly and Daily Traffic Volume Increase Thresholds that are met six times in a 12- week period excluding Abnormal Traffic Volumes, shall have the Average Hourly and Daily Traffic Volume calculated and a toll increase will be applied according to the tables below: Eastbound McKinley Segment 15 South Segment Average Hourly and Daily Traffic Volume Toll Increase Amount Average Hourly and Daily Traffic Volume Toll Increase Amount >1,350 $1.30 >1,450 $1.30 1,300 to 1,350 $1.00 1,400 to 1,450 $1.00 See Exhibit II and III for the eastbound toll process flow. Westbound McKinley Segment 15 South Segment Average Hourly and Daily Traffic Volume Toll Increase Amount Average Hourly and Daily Traffic Volume Toll Increase Amount >1,400 $1.30 >1,450 $1.30 1,350 to 1,400 $1.00 1,400 to 1,450 $1.00 See Exhibit IV and V for the westbound toll process flow. 54 4. Hourly and Daily Traffic Volume Decrease Thresholds that fall below the volumes stated in the table below, will be flagged for further evaluation. Segment Hourly and Daily Traffic Volume Decrease Thresholds EB McKinley 1,200 EB I-15 South 1,200 WB McKinley 1,250 WB I-15 South 1,250 5. Hourly and Daily Traffic Volumes that fall below the Hourly and Daily Traffic Volume Decrease Thresholds six times in a 12-week period, excluding Abnormal Traffic Volumes, shall have the Average Hourly and Daily Traffic Volume calculated and a toll rate reduction applied according to the table below. Toll rates shall be reduced until pricing and volumes reduce to the non-super peak level of service (LOS) toll schedule. See Exhibit VI and VII for the toll reduction process flow. Non-Super Peak Hours Non-Super Peak hour toll rates will be set according to the vehicles per hour for single lane level of service (LOS) as set forth below. Toll rates were adopted on July 1, 2018 for each LOS reflecting the time-savings value to the driver as traffic moves into the next level of congestion. The adopted toll rates will increase annually by the Inflation Factor. Segment Hourly and Daily Traffic Volumes Toll Rate Reduction EB McKinley <1,200 $.65 EB I-15 South <1,200 $.65 WB McKinley <1,250 $.65 WB I-15 South <1,250 $.65 55 Level of Service Toll Schedule McKinley Toll* 15 South Toll* LOS Vehicles per Hour A 0 - 400 $1.50 $1.90 B 401 - 800 $2.20 $2.85 C 801 - 1,000 $4.05 $5.15 D 1,001 - 1,200 $5.15 $6.65 E (EB McKinley) 1,201 – 1,300 $6.70 n/a E (EB 15 South) 1,201 - 1,400 n/a $8.55 E (WB McKinley) 1,201 - 1,350 $6.70 n/a E (WB 15 South) 1,201 – 1,400 n/a $8.55 *Toll rates represents amounts as of July 1, 2018. Non-Super Peak Hourly and Daily Traffic Volumes will be reviewed on a quarterly basis beginning January 1, 2018. Non-super peak Hourly and Daily Traffic Volumes will be averaged for the quarter, excluding Abnormal Traffic Volumes. If the Average Hourly and Daily Traffic Volume varies from the currently priced LOS, the toll rate will be increased or decreased according to the Level of Service Toll Schedule table above. See Exhibit VIII (eastbound) and IX (westbound) for a non-super peak process flow. Discount Vehicles with three or more persons (HOV3+), zero emission vehicles (ZEVs), motorcycles, Department of Motor Vehicle issued disabled plates and disabled veteran plates are permitted to ride free in the RCTC 91 Express Lanes during most hours with valid a 91 Express Lanes Special Access Account. The exception is Monday through Friday 4:00 p.m. to 6:00 p.m. in the eastbound direction when these users pay 50 percent of the toll. Financing Requirements RCTC shall charge and collect tolls that generate enough revenue to maintain the Debt Service Coverage Ratios as required in the Financing Documents and to operate and maintain the RCTC 91 Express Lanes in a safe condition in accordance with all applicable laws and regulations. RCTC recognizes that it must maintain a strong debt service position in order to satisfy the covenants in the Financing Documents. The requirement to maintain Debt Service Coverage Ratios and comply with Financing Document and other financing covenants will supersede the specific policies for setting and modifying tolls and discounts. Holiday Toll Schedules Holiday toll schedules will be established using actual traffic volumes for the prior year holiday and the Level of Service Toll Schedule. Interpretation These policies are intended as guidance and may be amended or superseded at any time. 56 Exhibit I Definitions Abnormal Traffic Volumes – Any week, day, or hour where traffic volumes vary from those of prior weeks due to a holiday, incident, construction or other atypical occurrence. Average Daily and Hourly Traffic Volume - The sum of a specific day, hour, segment and direction for the period of time analyzed divided by the number of days included in the sum. A calculated average may have a tolerance of the lessor amount of ±5% or 50 vehicles applied to it in the application of the toll rate adjustments. Cash Available for Debt Service – for any Period, the excess, if any, computed on a cash basis, of: (1) the amount of RCTC 91 Express Lanes cash receipts during such Period from whatever source, including, without limitation, toll receipts, transponder revenues, and investment earnings, excluding: − proceeds of insurance, − proceeds of debt service letter of credit or other amounts held in or disbursed from the payment account, the debt service reserve account, the coverage account and the major maintenance reserve account, and − the proceeds of any bonds or loans issued or executed to provide capital improvements to the RCTC 91 Express Lanes, over (2) All Operating and Maintenance Costs incurred during such Period and not deducted in the computation of Cash Available for Debt Service in a prior Period. In computing Operating and Maintenance Costs for any Period, an appropriate prorating will be made for expenditures such as insurance premiums and taxes that would be prorated if the computation were to be made in accordance with Generally Accepted Accounting Principles. Debt Service – for any Period, all payments of principal, interest, premiums (if any), fees and other amounts made (including by way of prepayment) or required to be made by RCTC during such Period under the Financing Documents (debt service payments related to RCTC’s internal subordinated debt borrowings or application of revenues to pay RCTC’s sales tax revenue bonds are to be excluded from these calculations). In computing Debt Service for any Period prior to the issuance of any additional financing, subject to the specific terms of the Financing Documents, RCTC will give pro forma effect to the transactions contemplated by the Financing Documents and the use of proceeds of the additional financing. In computing Debt Service for any prospective Period, RCTC will estimate in good faith such payments on the basis of reasonable assumptions. Such assumptions will include the absence of any waivers of or amendments to any agreements and the absence of any optional or extraordinary mandatory redemption of existing financings. Debt Service Coverage Ratio – defined specifically in the Financing Documents, which specific provisions control the implementation and setting of tolls and discounts, but generally, for any 57 Period, the ratio of Cash Available for Debt Service for such Period to Debt Service for such Period. Financing Documents – the documents under which RCTC has issued toll revenue bonds or other financings, including financings with TIFIA, payable primarily from toll revenues. Fiscal Year – July 1 to June 30 Holiday – Any of the following holidays that occur or are recognized any day between Monday through Friday: New Year’s Day, Memorial Day, 4th of July, Labor Day, Thanksgiving and Christmas. Other days where traffic volumes differ from the average hourly and daily traffic volumes, due to a recurring holiday, may be added to the holiday schedule. Hourly and Daily Traffic Volume – the traffic volume for an hour, day, direction and segment of the Express Lane. Hourly and Daily Traffic Volume Increase Threshold - The Hourly and Daily Traffic Volume Increase Thresholds are used to determine when a Super-peak hour shall receive a toll increase. The threshold amounts are equal to the optimal throughput for each single lane in the facility as determined by analysis of operational conditions at traffic volumes during the first 16 months of operation. The threshold amounts will be reviewed regularly but no less than annually and following a change to the roadway that may impact capacity either favorably or unfavorably. Thresholds for super-peak toll increases may be adjusted based on a review of traffic information. Hourly and Daily Traffic Volume Decrease Threshold – The Hourly and Daily Traffic Volume Decrease Thresholds are used to determine when a Super-peak hour shall receive a toll decrease. The threshold amounts are equal to the actual traffic volume deemed to be less than the optimal capacity for maximizing volume while maintaining free-flow conditions for each single lane of the facility. The threshold amounts will be reviewed annually and following a change to the roadway that may impact the optimal capacity either favorably or unfavorably. Thresholds for super-peak toll decreases may be adjusted based on a review of traffic information. Inflation Factor - The product of the hourly toll times the CPI Index Adjuster for the region from January to December of the previous calendar year. The Inflation Factor will be applied to all toll rates as of June 30th prior to the start of the new fiscal year, the Non-Super-peak level of service toll schedule, and the Super-peak toll increase and decrease amounts. All tolls will be rounded up or down to the nearest $.05. Non-Super Peak – Hourly period that is not Super-peak. Operating and Maintenance Costs – defined specifically in the Financing Documents, but generally, all reasonable and necessary expenses of administering, managing, maintaining and operating the RCTC 91 Express Lanes and in accordance with the operation and maintenance agreements. Period – Length of time referring to an hour, day, week or month. 58 Super Peak – Hourly period, per day, and per direction with traffic volume use which meets or exceeds the following volume thresholds: Segment Hourly and Daily Traffic Volume Thresholds EB McKinley 1,300 EB 15 South 1,400 WB McKinley 1,350 WB 15 South 1,400 Week – 12:00 a.m. Sunday to 11:59 p.m. the following Saturday. 59 Exhibit II Toll Policy Decision Process Super Peak Eastbound – McKinley 60 Exhibit III Toll Policy Decision Process Super Peak Eastbound – 15 SB 61 Exhibit IV Toll Policy Decision Process Super Peak Westbound – McKinley 62 Exhibit V Toll Policy Decision Process Super Peak Westbound – 15 SB 63 Exhibit VI Toll Policy Decision Process Toll Decrease – Eastbound 64 Exhibit VII Toll Policy Decision Process Toll Decrease – Westbound 65 Exhibit VIII Toll Policy Decision Process Non-Super Peak – Eastbound 66 Exhibit IX Toll Policy Decision Process Non-Super Peak – Westbound 67