In This Issue

	Illinois Moving Forward w/ $1 Billion Rail Plan
	Toll Roads Possible for Manatee
	Gas Tax may Subsidize Commuter Rail
	VDOT Opposed to Development Near Dulles
	U.S. Roads Sold to Foreign Companies
	Road Quality is Threatened as Asphalt Prices Rise
	Pennsylvania considers Public-Private Partnership
	Turnpike Board goes Public
	Council Proposes Lower Cost Plan

Illinois Moving Forward w/ $1 Billion Rail Plan

ELGIN, Ill. - Illinois-based Metra is forging ahead with plans to build a $1.1 billion suburb-to-suburb commuter rail system. The first of three public hearings was held last week to review alternatives to the proposed 55-mile Suburban Transit Access Route, which would eventually link the O'Hare International Airport along an Elgin, Joliet, & Eastern Railway track.

The STAR line would be useful because travel between the suburbs is greater than from the suburbs into Chicago, according to Metra. The line would feature new, passenger-only railroad tracks built within the median of I-90 and new tracks on the north-south EJ&E Railway, which commuter cars would share with freight cars, said David Kralik, Metra's STAR project leader.

Some of the other options the public is reviewing include adding bus routes on I-90 and Route 59, or developing dedicated bus lanes along these routes. The review of alternatives by Metra should be completed by this fall, but federal funding is not expected to be secured until 2010.

Toll Roads Possible for Manatee

MANATEE, Flor. - Florida's turnpike leader will address a local business group next week to state his opinion on the option of toll roads in Manatee and Sarasota counties.

James L. Ely, chief executive of Florida's Turnpike Enterprise, is scheduled to speak to the Argus Foundation about "User-financed Transportation in Florida," a concept the group believes should get more consideration in the state's financial struggle to improve and build new roads.

The Sunshine Skyway Bridge is currently the only toll facility in Manatee, and is operated by the enterprise. However, the enterprise is studying the feasibility of building a toll road from I-75 in northern Manatee to either I-95 in St. Lucie County or Florida's Turnpike.

Ely has been the turnpike system's chief since 1989, and his agency operates 460 miles of toll facilities statewide. He is also the incoming president of the International Bridge, Tunnel, and Turnpike Association.

Gas Tax may Subsidize Commuter Rail

Tenn. - Regional planners in Tennessee are considering an additional tax on each gallon of gas sold as an option to finance public transit projects.

"If we're going to start moving transit forward, we need to have a permanent funding source," said Jim McAteer, transportation planner at the Nashville Area Metropolitan Planning Organization, which is funding the study. Commuter rail lines in the region could certainly use the money, such as the East Corridor service that will run from Lebanon to Nashville, which begins service on Sept. 18.

The gas tax idea stems from a 2002 study that considered the various funding possibilities for the area's transportation system. The study also suggests a wheel tax, a sales tax, and a vehicle emission fee. Planners are updating the study to determine public support and how much revenue each source could generate.

"The gold standard (for commuter rail funding) has been a sales tax," said Steve Polzin, director of public transportation research at the University of South Florida. County governments would have to approve a local option gas tax before it could be implemented.

Tennessee isn't the only state searching for funding for transit systems. The Forum on Transportation Investment in Idaho recommended a permanent source of funding for their transit systems. Salt Lake County will have a property tax initiative on their ballot in November for four light rail projects that are close to construction. TW

VDOT Opposed to Development Near Dulles

CHANTILLY, Va. - The Virginia Department of Transportation is speaking out against the building of thousands of new homes near the Dulles Airport, saying it could create serious traffic problems.

The department says a proposal to bring up to 28,000 homes to the area would negatively impact traffic from around the airport to Fairfax and Prince William Counties. An analysis by VDOT showed the proposal would generate up to 300,000 car trips a day would create very congested traffic on regional roads such as the Dulles Greenway, Route 50, and Route 29 by 2025.

VDOT spokeswoman Joan Morris said it could cost hundreds of millions of dollars to prevent that kind of gridlock, aside from what is already being spent on current road improvements.

U.S. Roads Sold to Foreign Companies

WASHINGTON - Foreign companies are buying roads and bridges built by U.S. taxpayers. On the same day in June, an Australian-Spanish partnership paid $3.8 billion to lease the Indiana Toll Road, and an Australian company bought a 99-year lease on Virginia's Pocahontas Parkways.

An Australian company also collects the tolls from the U.S. side of the tunnel between Detroit and Windsor, Canada, as well as owning a bridge in Alabama.

Foreign companies have purchased infrastructure in Europe for years, while U.S. companies are just recently picking up on the trend of buying roads and bridges. Some experts in favor of the trend say private investors can raise more money than politicians because they are willing to raise tolls.

People drove 94 percent more highway miles between 1980 and 2004, according to the Federal Highway Administration. But new highway lane miles rose by just 6 percent.

Currently, about half of the states allow companies to build and operate roads. Many have recently changed their laws to do so.

Now New Jersey officials are considering selling 49 percent of the state's two biggest toll roads, Illinois may privatize the Illinois Tollway, and an Ohio gubernatorial candidate plans to sell the turnpike.

On the domestic side, Zachary Construction Co. of San Antonio was approved June 29 for a 50-year lease to build and run a toll road from Seguin to Austin for $1.3 billion.

Road Quality is Threatened as Asphalt Prices Rise

Tex. - Pothole projects could be set aside if asphalt prices continue to rise, says TxDOT. And larger projects could take more time to complete.

"We're going to get less for our money because we're able to do less with what we have. Does that mean that fewer projects get done? It could mean that," said Tracey Friggle, of TxDOT.

The crude oil used to make asphalt is reaching record highs, up more than $100 a ton from last year. The quality of the roads will eventually begin to suffer, as well as the time it takes to complete the projects.

The prices are also putting contractors in a financial bind, and their project budgets behind the curve. Since asphalt can be up to 50 percent of their cost, their overall expenses are skyrocketing.

Pennsylvania considers Public-Private Partnership

Penn. - Pennsylvania is considering a public-private partnership for a 24-mile, $2 billion section of a new toll road under construction between Pittsburgh and Morganstown. While the state continues to struggle to come up with up-front funding to build and maintain its highways, private companies may be an option to finance the initial costs of new construction.

The Pennsylvania Turnpike Commission is managing construction of the $4.3 billion, 70-mile Mon-Fayette Expressway, opening one section at a time. The highway will allow other Pittsburgh routes access to the turnpike.

So far just $1.8 billion is secured in state, federal, and turnpike funding for the project. The Turnpike Commission has had preliminary discussions with a private Australian investment company to foot the bill for the $1.9 billion Allegheny County section, near downtown Pittsburgh.

If the parties can agree, the investors would provide the money to build it, then sign a long-term lease, while the commission maintained ownership and operation rights, according to turnpike spokesman Carl DeFebo. The Allegheny County section is particularly expensive because of high property values in the area.

Turnpike Board goes Public

W.Virg. - Residents of West Virginia will finally have a say before the state Parkways, Economic Development and Tourism Authority will consider any recommendation to increase tolls on the West Virginia Turnpike.

The change comes after the public firestorm when last December, the authority raised tolls 60 percent, effective Jan. 1, with no prior public notice of the plan. The authority was not required to seek permission or discuss plans publicly because the organization had autonomy.

Amid the escalating controversy, Gov. Joe Manchin promised no fee increases without prior public notice would be made in the future and until he could obtain recommendations from consultants about the authority and turnpike operation.

Last Thursday, legal counsel for the authority outlined the actions ordered by the state Legislature last March, and the board adopted the procedures for appropriate notice of public hearings. And in conjunction with the state's Sunshine Law, the Parkways Authority has started its performance evaluation of the authority with the Legislative Auditor's Office, Performance, and Research Division.

There are a growing number of pseudo-public agencies throughout the country who are not quite private and yet not fully "government" in nature. Most observe what has become an expected standard of public accountability and openness in their deliberations and decisions. The public expectation for this standard is such that regardless of an agency's legal obligation, a failure in this regard will be seen in a dim light and result in this kind of response. TW