In This Issue

	Gov. asks Ohio Turnpike to Avoid Toll Increase
	Secretary Peters Looks at Federal Funding Alternatives
	Beltway HOT Lanes Need Funding
	Commission Rejects Mass Transit Upgrade
	Metra Banking on State Money for 2007 Budget
	Gas Tax Revenue Cut by High Gas Prices
	D.C., Hampton Roads Fail Evacuation Test
	Indiana a Model in Privatizing Highways
	New Option Proposed for Penn. Funding Crisis
	Galena Bridge Cost Soars

Gov. asks Ohio Turnpike to Avoid Toll Increase

BEREA, Ohio – Ohio Governor Bob Taft is requesting that the Turnpike Commission avoid a toll increase after lower truck tolls have sharply reduced truck traffic and improved safety on parallel highways, said the governor’s top official Monday. The proposed increases could challenge enhanced safety on highways near the turnpike throughout northern Ohio, said the director of the Ohio Office of Budget and Management, Tim Keen.

“Based on the results we have seen over the last 21 months, Governor Taft believes that the Turnpike Commission should not take any action that would jeopardize continued improvements,” Keen said.

Truck traffic on the turnpike during the first eight months of this year increased 23 percent compared with the same period in 2004, before truck tolls were lowered to make it more affordable to truckers, said Keen. The commission began trying to lure truckers away from secondary roads in January 2005 with a temporary 25% discounted rate.

Tolls on short trips may remain the same with the proposed increase, because they would be rounded to the nearest quarter. However for a vehicle traveling the full distance of the 241-mile highway between Indiana and Pennsylvania would go from $8.95 to $10.25, an increase of 14.5 percent.

Turnpike executive director Gary Suhadolnik has said that the adjustments should not divert the truck traffic by reverting to the previous, higher truck tolls. The commission is expected to address the matter at its Dec. 11 meeting.

Secretary Peters Looks at Federal Funding Alternatives

National– U.S. Transportation Secretary, Mary Peters, said Monday that the federal government shouldn’t be expected to contribute as much to the cost of improving the nation’s transportation systems as it has in past decades.

Peters advises state and local governments to consider innovative new financing methods including the advanced drive-through toll systems. She says her top priorities are improving transportation safety, increasing reliability and productivity, and taking a new look at programs and funding for ground transportation, followed by aviation.

While Peters says it is too early for her to discuss specific changes to the federal government’s role, she believes that President Bush and Congress will be offered a variety of options to consider after a 12-member federal commission completes a broad study currently underway.

“What are the appropriate funding sources, what are the needs, what is in the nation’s best interests – all of those questions are before the commission right now,” she said. Peters has long been an advocate of private funding, such as tolls, and says the federal government should not stand in the way of state and local governments that want to approve taxes to fund specific transportation programs. She cited a sales tax increase for freeway construction and transit improvements in Phoenix as an example.

Beltway HOT Lanes Need Funding

Virginia - The companies selected to construct the high-occupancy toll (HOT) lanes on the Capital Beltway have not yet secured funding, their representatives reported to the Fairfax County Board of Supervisors Monday. However, they reported that they still hope to begin work on the project next summer.

Fluor Corp. and Transurban will partner with the state to add two lanes in each direction of the beltway for carpoolers, buses, and single-occupant commuters who will pay a toll based on traffic volume.

There has been “a very substantial increase in cost” due to double-digit inflation in construction material and the rise in fuel prices, said George Biediger, vice president for project development at Fluor. Interest rates have also been going up, which has reduced the companies’ financing capacity, he said. They are working with the Virginia DOT and federal government to make up the deficit.

Fluor and Transurban are also planning a similar project which will convert carpool lanes on I-95 and I-395 to develop a HOT lane network on three of the area’s main highways that would extend as far south as Fredricksburg. Both projects will be tied together in Springfield as phase eight of the ongoing Springfield Mixing Bowl reconstruction.

Commission Rejects Mass Transit Upgrade

Florida – In a 5-4 vote, county commissioners defeated a plan for $15 billion in improvements for mass transit in Broward County. The plan, which would stretch over the next 25 years, included building 65 miles of light rail lines, doubling the number of buses, and launching express bus routes on heavily congested roads. Now voters will have to make the decision about whether to increase the sales tax from 6 to 7 cents without knowing how their money will be spent.

Transit supporters fear the already controversial tax increase will be more difficult to pass if voters don’t know where the money is going.

“I’m very disappointed because this is a campaign based on education, education, and education,” said construction executive James Cummings, the leader of the pro-tax campaign. The group plans to lobby commissioners to change their minds, but early voting for the Nov. 7 election starts in less than two weeks.

The commission, which has been split on the tax for some time, was divided Tuesday over whether the plan promised too much by understating construction costs. The group also debated whether the combination of rail and bus service was correct and if the plan focused enough on the outer suburbs.

Commissioner Jim Scott, who was the key vote, switched sides after supporting scheduling the referendum this summer. “I don’t think this plan is together,” Scott said. “This keeps slipping along, and we’re now four weeks from the election and I have trouble putting my stamp of approval on this.”

Metra Banking on State Money for 2007 Budget

Illinois – Metra is calling for a heavy infusion of new money from Springfield in the unveiling of the $554 million budget released Friday. Metra, CTA and Pace, working under the Regional Transportation Authority, are lobbying Springfield Legislators to send billions of additional dollars toward public transportation for next year.

The continued diversion of capital funds for operating purposes is jeopardizing the service, said Metra officials. Over $68 million in capital funding for infrastructure, equipment, and maintenance was diverted this year; Metra estimates that $71 million could be diverted next year.

“Equipment breakdowns, slow zones and deteriorating facilities will begin to increase, and we will enter a downward spiral of diminished service and reduced ridership,” said Metra Chairwoman Carole Davis in a budget statement.

Springfield will be responsive to the challenges facing the transit agencies, according to state Rep. Julie Hamos (D-Evanston), chair of the House Mass Transit Committee. “ I think the legislature will take a hard look at the issue,” she said.

Gas Tax Revenue Cut by High Gas Prices

LANSING, Michigan – Even though prices at the pump are currently decreasing, the high prices this year have already taken a hit on Michigan road revenues. Gas tax revenue was considerably lower from January to July 2006 when compared to the same period in 2005 and 2004, according to recent numbers from the State of Michigan House Fiscal Agency.

“Many believe that, like the sales tax, fuel tax revenues increase as the cost of the gas increases, but that isn’t the case,” said Mike Nystrom, vice president of government and public relations, Michigan Infrastructure and Transportation Association. “In fact, they can’t be more wrong. Michigan’s flat fuel tax of 19 cents draws no benefit from rising fuel costs and road revenues actually go down when consumption drops.”

In the first seven months of 2006, gas tax revenues were $520.5 million, $5.2 million less than 2005 and $13.3 million behind 2004. While at the same time, sales tax revenues for the same period escalated $74.6 million over 2005 and $116.4 million above 2004. Sales tax primarily goes to education, not to roads.

The Michigan state department of transportation is facing an estimated shortfall of $700 million annually, and at least $2 billion more for its local roads.

This is further evidence of why the gas tax is not a sustainable means for funding transportation. The nature of the motor fuel tax is that it does not adjust with changing economic conditions which makes it an unreliable and diminishing resource. Sales tax on the other hand is just the opposite; it ebbs and flows with the economy providing a growing revenue stream. TW

D.C., Hampton Roads Fail Evacuation Test

Washington, D.C., Virginia – Washington D.C. and Hampton Roads, Virginia have been given failing marks in their ability to evacuate in an emergency by The American Highway Users Alliance in Washington. The group’s report card on emergency evacuation graded the 37 largest metro areas in the nation on the problems they face in a crisis. Twenty of the 37 examined received an F. Kansas City was the only area to receive an A for its evacuation capability.

Greg Cohen, president of the Alliance, said the Hampton Roads urban area received the F primarily for physical reasons. “There are some reasons that cannot be controlled,” he said. “You have the Atlantic Ocean on one side.” The second reason “is really your day-to-day traffic congestion. That is something we have not kept up with over the last 20 or 30 years,” said the former highway engineer.

Virginia Department of Transportation spokesperson, Jeff Caldwell, said that the state’s hurricane evacuation preparedness is a priority to state officials and that the state is continually working to improve evacuation plans.

Washington scored poorly on its roadway capacity, with its chronic traffic jams, which the report described as well below average.

Indiana a Model in Privatizing Highways

INDIANAPOLIS – States looking at privatizing major highways can look at Indiana’s experience with its East-West Toll Road which has seen quick financial rewards for the transportation department, along with higher tolls for drivers. Many states are considering privatization as a way to make up for decreasing budgets and to cover the costs of deteriorating roads.

New Jersey Governor Jon Corzine is looking at leasing the New Jersey Turnpike and other toll roads, and road privatization is appearing on ballots in Ohio and Illinois. The impact of such deals on operations and tolls is still up for debate.

A private Australian-Spanish company took over the 50-year-old, 157-mile Indiana East-West Toll Road which runs east between Chicago and the Ohio border. The foreign group will pay Indiana $3.8 billion to operate, maintain, and collect tolls on the road for the next 75 years.

Since taking control, private operator, the Indiana Toll Road Concession, has announced a $250 million expansion of the road’s western end, and installation of pay-without-stopping tolling technology will be completed by next September. So far, Indiana has earned $55 million in interest from the consortium’s payment, said state treasurer Tim Berry.

Motorists without the electronic transponder will be charged higher tolls in September, from $4.65, to $8. Commercial trucks’ rates have increased from $14.55 to $18. Eventually all motorists, including those with transponders, will pay higher tolls. The cost for the transponders has not yet been determined.

Indiana House Minority Leader B. Patrick Bauer, a Democrat, is still skeptical about the deal. “Ultimately, they are a private company that’s going to do what’s best for them.”

Phoenix Light Rail Chief Fired

PHOENIX, Arizona – Following a three-month ethics investigation, Metro has fired the construction chief for the Valley’s light rail system. Vicki L. Barron was hired as the company’s design and construction director in March 2005. She is the former construction chief of the Hiawatha rail line in Minneapolis which was completed on time and under budget.

Barron was let go as Metro prepared to release a report Wednesday on a complaint claiming she “applied undue and unnecessary pressure” to the contractor to hire her friend’s Minnesota-based firm, Transit Systems Development. Consulting firm PBS&J and PGH Wong Engineering, Inc. filed the claim against Barron, stating that she had pursued “any and all means to procure the services of TSD.”

Barron said she did not agree with the findings of the report, and her push to bring TSD was based on a “pronounced” need for assistance on utility relocation, which has caused challenges for the rail project. “All of my actions were with the best interests of the project and the agency in mind. I didn’t come here to fail. I’m disappointed I won’t get to fulfill my commitment because I really wanted to see this through,” she told the Arizona Republic in a phone interview.

The ethics investigation began more than a year after two consultants reported the matter to Metro CEO Rick Simonetta. PBS&J/Wong said in its letter of complaint that federal procurement rules obligated them to notify Metro of a “potential conflict of interest.”

Barron’s deputy at Metro, Brian Buchanan will take over as interim construction chief. The project is in important negotiations with several contractors to adjust the construction timeline to keep the 20-mile light rail line on schedule to open December 2008.

New Option Proposed for Penn. Funding Crisis

HARRISBURG, Penn. – A study released last Wednesday proposed regional taxes as a new option to help fund transportation improvements in some regions in the state. The Pennsylvania Economy League performed the study, in which 1.500 state resident were interviewed by telephone, and longer interviews were conducted with state and federal transportation experts.

The study reported that while the Legislature should allocate additional statewide funding to fix the crumbling roads and bridges, regional funding could also contribute to the solution.

Other recommendations from the League study include: “Prudent use” of long-term borrowing, such as bond sales, exploration of public-private partnerships, and that whatever transportation-funding fee increases are instigated, the money should be earmarked specifically for transportation and rise with inflation.

A task-force named by Gov. Ed Rendell will release its yearlong report in mid-November, which will hopefully give the transportation funding crisis much needed public attention.

State officials say the transportation crisis cannot be ignored any longer, as several bridges in the state are closed or have severe weight-restrictions because they can no longer handle heavy traffic. Also, mass transit agencies in Philadelphia and Pittsburgh are facing budget cuts in January that may force them to raise fares and possibly cut service.

In addition to Secretary Peters’ remarks that the federal government will likely play a smaller role in financing future projects, note that there are also several stories this week about the struggles of states and local communities trying to find ways to pay for desperately needed infrastructure. People want and need the projects and are increasingly looking to local and state elected officials to solve this problem. In the absence of leadership among elected officials, citizens seem very willing to tax themselves to get the job done. TW

Galena Bridge Cost Soars

Nevada - The Nevada Department of Transportation received bids last Thursday for the Galena Bridge project for at least $113 million more than was previously anticipated for the cost of the contract. Fisher Sand & Gravel Co., of North Dakota, submitted the lower of the two bids at $393.3 million. If accepted, their proposal to complete the stalled construction of the Galena Creek Bridge and the nine miles of freeway connecting the Mount Rose Highway and Washoe Valley will be the largest single construction contract in NDOT history.

The state's most recent engineering estimate for the job was $318.3 million, making it nearly $75 million less than the lower bid.

"Sure it's of concern. That's a lot of money," said Susan Martinovich, NDOT deputy director. She said the department must choose between the Fisher bid and the almost $415 million bid received from Kiewitt Western, Co., of Concord, Calif. within 30 days.

Original plans for the project to link the Reno area with Carson City entirely by freeway included two phases. Phase one would construct the Galena Creek Bridge and three separate, smaller bridges. The second phase was building a nine-mile stretch of six-lane freeway. Construction on the first phase was halted earlier this year when chief contractor Edward Kraemer & Sons said they had safety concerns regarding the safety of the bridge during construction.

When completed, officials hope the new freeway will divert up to 70 percent of the 40,000 cars daily that travel through Pleasant Valley, a residential area with a high accident rate. The state initially had a completion date of 2009, but that has now been pushed back to 2011.