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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2004 - RESOLUTION 2004-034 STATING CITY COUNCILS RECOMMEN ITEM NUMBER: 24 AGENDA ITEM SUMMARY DATE: March 2, 2004 FORT COLLINS CITY COUNCIL STAFF: Mark Jackson SUBJECT Resolution 2004-034 Stating City Council's Recommendations Regarding "Toll Roads" to the Colorado Tolling Enterprise. RECOMMENDATION Staff recommends adoption of the Resolution. EXECUTIVE SUMMARY The Colorado General Assembly created the Colorado Tolling Enterprise(CTE)in 2002,within the Department of Transportation (CDOT), specifically for the purpose of identifying potential future toll corridors throughout the State and to study the feasibility of implementing toll roads. The CTE is examining tolls only on new roads and new capacity(lanes)on existing highways. The CTE has identified several corridors in Northern Colorado for further study as potential toll roads or additional toll lanes, including I-25 and US-287. The CTE Board has requested written public comment regarding this study. Transportation staff recommends that the City of Fort Collins not support further exploration of tolling mechanisms along the I-25 Corridor in Northern Colorado due to concerns about usage,cost recovery, and potential precedent for future tolling of existing facilities. The CTE should instead focus its attention, effort and resources on the proposed new toll road,railroad and utility corridor in a new alignment on the eastern plains from north of Fort Collins to south of Pueblo. BACKGROUND Faced with increasing budget pressures and competition for scarce resources, State and Federal governments are turning their attention to new sources of dedicated highway funds, and are increasingly willing to examine ways of obtaining these funds directly from the users. The Colorado General Assembly created the Colorado Tolling Enterprise(CTE) in 2002, within the Department of Transportation(CDOT),specifically for the purpose of identifying potential future toll corridors throughout the State and to study the feasibility of implementing toll roads. The CTE is examining tolls only on new roads and new capacity (lanes) on existing highways. Tolls on existing highway lanes are not under consideration. Highway user fees have become a politically attractive alternative to increasing existing taxes or generating new taxes to fund transportation infrastructure. Revenues from toll facilities could also generate funds for new and/or improved non-toll highways. March 2, 2004 -2. Item No. 24 The rekindled interest in toll roads or lanes also reflects a market-based approach to reducing congestion on facilities at peak hours of use. As more people accept the premise that you cannot build your way out of congestion,toll facilities offer drivers the option of trading cost versus delay. Drivers can choose to use the non-toll highways when delay or cost is not an issue for that particular trip, or at lower demand periods of the day. Drivers can also choose to pay a fee to access less congested facilities during peak hours of travel, avoiding congested non-toll roads and increasing travel efficiency. Potential benefits of toll roads/lanes: • Adopting a "Pay As You Go" philosophy directs more infrastructure costs to the user, rather than imposing new or extended taxes. • Toll roads offer drivers additional travel options at times and locations of heavy congestion, hypothetically reducing additional congestion on these non-toll facilities. • Revenues from toll roads may be used for other statewide transportation improvements. • Motorists still have the option of driving in the free, existing lanes. • Adding a toll choice on underutilized High Occupancy Vehicle (HOV) lanes offers a better return on the infrastructure investment. High Occupancy Toll (HOT) lane users can share lanes with transit and carpool/vanpools. Concerns about toll roads/lanes: • Toll facilities are effective only when non-toll roads/lanes are congested. • Toll lanes added to existing non-toll highways may not be used to the extent necessary to pay for themselves if existing lanes remain free of charge. • There are examples of toll lanes added to existing lanes that have not successfully paid for themselves as originally projected. • Extreme cost of building, operating and maintaining toll roads makes credit risky for private entities. Some private ventures have been bought out by government, or gone into receivership due to insufficient traffic. • Public resistance against paying additional fees to access highway facilities. • Equity issues. Opponents argue that toll lanes/roads can only be used by those who can afford them. Northern Colorado corridors identified for further study: A preliminary screening exercise by the CTE has identified 38 roads/alignments throughout Colorado as potential toll road candidates. Candidate toll roads to be looked at further as part of the Statewide Toll Feasibility Study include the following Northern Colorado facilities: • Interstate 25 between I-70 and Fort Collins • Interstate 25 between Fort Collins and the Wyoming state line • US-287 between SH-1 (LaPorte) and the Wyoming state line • US-34 between I-25 and US-85 • New Front Range alignment from north of Fort Collins to south of Pueblo (commonly known as "Super-Slab") March 2, 2004 -3- Item No. 24 Concern for precedent: Although the CTE is currently limiting its research and recommendations to new roads or new additional capacity on existing highways, there is the potential that tolling could be extended to existing non-toll lanes in the future. Colorado Senator Wayne Allard has reportedly offered an amendment to the transportation authorization bill (SAFETEA) which would allow toll lanes to be added to existing interstate highways in Colorado. The next step would then be for a bill to be introduced in Congress to allow the existing lanes to also be tolled. Congress has given exceptions for tolling existing interstate highways in other states in the past. There is the potential that legislation could be introduced allowing the existing "free" lanes of I-25 to be converted to toll facilities sometime in the future. STAFF RECOMMENDATION: Transportation staff believes there are several areas of concern warranting caution on the part of the City of Fort Collins in regards to the CTE. While the CTE effort may prove beneficial in certain areas of the State,staff feels that the addition of tolling lanes on or near the I-25 Corridor should not be encouraged. The potential precedent for converting the non-toll I-25 lanes to pay lanes in the future leads staff's concerns. Staff strongly suggests that tolling the entire six lanes of I-25 is not an acceptable future scenario. The one major north-south corridor in Colorado should not be a toll road. Transportation staff recommends that the City of Fort Collins not support further exploration of tolling mechanisms along the I-25 Corridor in Northern Colorado due to concerns about usage,cost recovery, and potential precedent for future tolling of existing facilities. The CTE should instead focus its attention, effort and resources on the proposed new toll road, railroad and utility corridor in a new alignment on the eastern plains from north of Fort Collins to south of Pueblo. ATTACHMENTS February 7, 2004 staff memo regarding toll roads/lanes background and issues RESOLUTION 2004-034 OF THE COUNCIL OF THE CITY OF FORT COLLINS STATING ITS RECOMMENDATIONS REGARDING "TOLL ROADS" TO THE COLORADO TOLLING ENTERPRISE WHEREAS, in 2002 the Colorado General Assembly created the Colorado Tolling Enterprise(the"Enterprise")within the Department of Transportation for the purpose of identifying potential future toll corridors throughout the State and studying the feasibility of implementing toll roads; and WHEREAS,the Enterprise has identified several Northern Colorado highways/corridors for study including Interstate 25 and U.S. Highway 287; and WHEREAS,substantial concerns exist as to the usage and cost recovery of a toll road/lanes in the Interstate 25 Corridor area; and WHEREAS, the potential exists that legislation could be introduced allowing the existing "free" lanes of Interstate 25 to be converted to toll facilities sometime in the future; and WHEREAS, the Enterprise Board has requested written public comment regarding this study. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby submits the following recommendations to the Board: 1. That the Colorado Tolling Enterprise should not consider the Interstate 25 Corridor or routes proximate to the Corridor as potential candidates for new toll roads or for adding additional toll lanes to the existing highway. 2. That the Enterprise should instead focus its attention,effort and resources on the proposed new toll road, railroad and utility corridor in a new alignment on the eastern plains from north of Fort Collins to south of Pueblo. Passed and adopted at a regular meeting of the City Council held this 2nd day of March, A.D. 2004. Mayor ATTEST: City Clerk iaTransportation Services Transportation Planning Cityof Eort Collins MEMORANDUM TO: John F. Fischbach, City Manager FROM: Ron Phillips, Transportation Service Director Mark Jackson, Transportation Planning Manager RE: Colorado Tolling Enterprise, Toll Road Information& Issues DATE: February 7, 2004 BACKGROUND Faced with increasing budget pressures and competition for scarce resources, State and Federal governments are turning their attention to new sources of dedicated highway funds, and are increasingly willing to examine ways of obtaining these funds directly from the users. The Colorado General Assembly created the Colorado Tolling Enterprise (CTE) in 2002, within the Department of Transportation(CDOT), specifically for the purpose of identifying potential future toll corridors throughout the State and to study the feasibility of implementing toll roads. The CTE is examining tolls only on new roads and new capacity(lanes)on existing highways. Tolls on existing highway lanes are not under consideration. Highway user fees have become a politically attractive alternative to increasing existing taxes or generating new taxes to fund transportation infrastructure. Revenues from toll facilities could also generate funds for new and/or improved non-toll highways. The rekindled interest in toll roads or lanes also reflects a market-based approach to reducing congestion on facilities at peak hours of use. As more people accept the premise that you cannot build your way out of congestion, toll facilities offer drivers the option of trading cost versus delay. Drivers can choose to use the non-toll highways when delay or cost is not an issue for that particular trip, or at lower demand periods of the day. Drivers can also choose to pay a fee to access less congested facilities during peak hours of travel, avoiding congested non-toll roads and increasing travel efficiency. TYPES OF TOLL FACILITIES The CTE is examining the feasibility of several types of toll road facilities, including: • New toll roads on new alignment and right-of-way • Managed lanes added to existing highways with varying fees and access by time of day(e.g. value/congestion pricing on HOT/HOV lanes) • Elevated grade-separated highway/roadway. Toll Road Memo February 8, 2004 Page 2 of 4 • Reversible toll lanes • Truck toll lanes Toll road enterprises can take several different forms. They can be public entities, funded and managed by government(e.g. M3 in Europe), or private entities that control and manage the road. Toll road enterprises can also be a combined public/private undertaking. NORTHERN COLORADO ROADS IDENTIFIED FOR STUDY A preliminary screening exercise by the CTE has identified 38 roads/alignments throughout Colorado as potential toll road candidates. Candidate toll roads to be looked at further as part of the Statewide Toll Feasibility Study include the following Northern Colorado facilities: • Interstate 25 between I-70 and Fort Collins • Interstate 25 between Fort Collins and the Wyoming state line • US-287 between SH-1 (LaPorte)and the Wyoming state line • US-34 between I-25 and US-85 • New Front Range alignment from north of Fort Collins to south of Pueblo (commonly known as "Super-Slab") ARGUMENTS FOR TOLL ROADS/LANES • Adopting a"Pay As You Go"philosophy directs more infrastructure costs to the user, rather than imposing new or extended taxes. • Toll roads offer drivers additional travel options at times and locations of heavy congestion, hypothetically reducing additional congestion on these non-toll facilities. • Revenues from toll roads may be used for other statewide transportation improvements. • Motorists still have the option of driving in the free, existing lanes. (This effort is not examining adding tolls to existing roads.) • Adding a toll choice on underutilized High Occupancy Vehicle (HOV) lanes offers a better return on the infrastructure investment. High Occupancy Toll (HOT) lane users can share lanes with transit and carpool/vanpools. ARGUMENTSASSUES AGAINST TOLL ROADS/LANES • Toll facilities are effective only when non-toll roads/lanes are congested. • Public resistance against paying additional fees to access highway facilities. Note: research suggests that this resistance lessens as congestion increases on non-toll facilities and more adversely affects travel behavior. • Equity issues. Opponents argue that toll lanes/roads can only be used by those who can afford them. The term "Lexus Lanes" is often used in this argument. Note: research on existing toll roads/lanes suggests this is not the case. Toll facilities are used by drivers of all economic classes. Toll Road Memo February 8, 2004 Page 3 of 4 • Public sensitivity to setting and changing(raising)toll charges can affect desirability of toll facilities. • Extreme cost of building, operating and maintaining toll roads makes credit risky for private entities. Some private ventures have been bought out by government, or gone into receivership due to insufficient traffic. • Overly optimistic projections of traffic and resulting revenue affect credit quality ratings of toll road efforts, often leading to downgraded projects. • When faced with toll roads without a proximate non-toll alternative, some drivers may choose to use local roads in urban areas,potentially raising congestion on these facilities. • Tolls for trucks will likely raise objections from the Motor Carriers industry, citing interference with interstate commerce. EXAMPLES OF EXISTING TOLL ROAD/TOLL LANE FACILITIES A Minnesota Star Tribune article (01/26/04) identified 475 toll road projects worldwide; the majority of these projects are in Asia. Cost for these projects total $228 billion dollars. In the United States, toll roads accounted for 4,657 miles of the nation's 3.8 million miles of streets and roads. Several toll road/lane feasibility projects similar to the CTE are currently underway throughout the country. Examples of existing toll roads in Colorado include E-470 and W-470 in the Denver metropolitan area. High Occupancy Toll (HOT)lanes are operating successfully in California in Orange County and San Diego. REFERENCES "Toll-road trend reaching Minnesota". Bob von Stemburg, Star Tribune, Minnesota. Published 01/26/04. "Some like it HOT: High-occupancy toll lanes work best on high-traffic roads". Anthony Downs, Brookings Institution. Governing Magazine,May 2002. Toll Roads: a review of recent experience. Congressional Budget Office Memorandum. February, 1997. High-Occupancy Vehicle/Toll Lanes: How do they operate and where do they work?" Joy Dahlgren. Intellimotion-PATH,University California-Berkeley. Volume 8,No. 2, 1999. Texas Transportation Institute, Texas A&M University. HOT-Pricing Glossary Draft. 2003 Colorado Statewide Tolling Enterprise Annual Report(draft). Colorado Department of Transportation. January 15,2004. Toll Road Memo February 8, 2004 Page 4 of 4 2002 Colorado Statewide Tolling Enterprise Annual Report. Colorado Department of Transportation. January 15,2003. "Asian Toll Road Development Program: Review of recent toll road experience in selected countries and preliminary tool kit for toll road development."World Bank Ministry of Construction, Japan. May 1999.