oregon’s road usage charge program - sb810 implementation 2015 aashto audit conference july 21,...

Oregon’s Road Usage Charge

Program -SB810

Implementation

2015 AASHTO Audit Conference July 21, 2015

Motivations for Change in Road FundingDeclining revenue & increasing unfairness of fuel tax

Changes to nation’s vehicle

fleet

CAFE standard to 54.5 MPG by

2025

Societal inequity resulting from new vehicle purchases

Defining Road Usage ChargeA fee charged for the distance a vehicle is driven

Count the milesand fuel

Administer the program

Collect the tax

SB 810 Overview• 5,000 volunteer vehicles

• Restrictions by MPG categories

• Operational on July 1, 2015

• 1.5 cents per mile

• Credit for fuels tax

• Mileage reporting choices

• Personal information protection

• Minimal enforcement provisions

The Project: Road Usage Charge Program – SB810 Implementation

Scope Schedule Budget

$8.1 millionCreate business line

Engage account managers

Develop ODOT systems

Recruit volunteers

Wages36%

OT 2%

Other Payroll

15% Legal

2%

Prof. Serv.41%

IT1%

Rent2% Other

1%

SB810 Effective

Contracts Signed

Operational Trial

Go Live

July 2013

November 2014

April – June 2015

July 2015

December 2015Project Closes

RUCAS dev startsJuly 2014

The volunteer experience

Volunteer Experience – Start up

1. Select provider 2. Sign up and select from the offerings

3. Install mileage reporting device

Daily volunteer experience

4. Drive

Volunteer experience - Billing

What bill your charges are on

How it looks

How you payWhen you pay

Account manager dependent

5. Account settlement

Azuga uses a prepaid wallet

Verizon charges your credit card monthly

Sanef invoices quarterly if threshold met

The RUC System

Design principles

Open architectureTax payer choices

Scalable

15

Policy Neutral

Geographically Unlimited

Who manages account

How miles are counted

How much data to share

ODOT Account Manager

Bank

ODOT

Mileage Collection

Commercial Account Manager(s)

Reporting

Transaction Processing

Account Management

Oregon Road Usage ChargingOpen System Concept

Mileage and fuel data

$ Tax Reconciliation

Public Outreach

EvaluationManager Volunteer

Manage Account Managers

Monitor & Reporting

Inquires & Issue Resolution

Tax Collection

DMV

Accounting

Mileage Collection

Mileage CollectionAccuracy

Requirement Precision

Miles and Fuel +/- 5%

In / out of state ½ mile

Public / Private Miles 50 feet

Mapping• ODOT certified map providers to

standards• ODOT did not provide the maps

• Technology and processes validated in upfront certification

• Beginning and ending odometer collected• Mileage data sent to ODOT

– For monitoring weekly – Can be used to study trends and anomalies

• All error data is sent to ODOT• ODOT has authority to audit

Verifying Mileage data

Account Managers

Account Managers

• Collect data• Process transactions• Manage mileage reporting device• Manage RUC payer accounts

– Account setup– Billing / Refunds– Customer service

• Provide customer web portal• Report and remit tax to ODOT• Report monitoring data to ODOT

Functions of the account manager

Account ManagersThe RUC Market

• Choose market• Advanced Reporting• Offer value added

services

Commercial Account

Managers

• Accept any volunteer• Basic Reporting (no GPS)• No value added

services

ODOT Account Manager

Account Manager compliance

• Up front certification• Contract

• Service level agreements• Key performance indicators

• Noncompliance impacts payments

Certification process

Pre-contract

Initial Certification

Step 1 Step 2

Submit/Review Qualification

Documentation

Conduct/Witness Product

Demonstrations

Formal Certification

Step 3 Step 4 Step 5

Conduct Self Certification

Integration Testing

Systems Acceptance

Testing

Post contract

• System Uptime & Scheduled Maintenance– Online service available

99.9% of a 24/7 site– Exception for scheduled

maintenance

• Change & Configuration Management– Monthly report

summarizing changes, effect & impact (ODOT & RUC payer)

• Daily, Monthly, Quarterly Reports– VIN summary– Errors & events– RUC revenue

• Quarterly Reports– VIN summary– Errors & events– RUC revenue

Contract RequirementsService Level Agreement

• Incoming Calls• Email • Inquiry resolution• Escalated inquiry

resolution

• Monthly reporting:• Call activity report• Inquiry classification

report (billing, program, general, MRD reporting, feedback, other

• Inquiry resolution

Contract Requirements

Key Performance Indicators

ODOT

Operations

ODOT will have 5 staff to perform program functions

ODOT Operations

Processes for: • Compliance

• Contract Administration

• Accounting

• Program management • Volunteer & Public Engagement

Now

Very little

Vs.

Requires experience with operations

Future

???

Penalties and interest

Many applications used for RUC

Built on ODOT standard infrastructure

RUC Administration SubsystemODOTs RUC specific – Custom developed application

Interface to DMVRequired to validate registration

Communications

WHO

Communications

Contracted services (PRR)

Project team

WHAT

Account manager toolkits

Social media

Traditional media

Website

HOW

Research

Outreach

Branding

CommunicationsMarketing & Communications Strategies

• Continue recruiting volunteers

• Change messaging if all available spots are full

• Continue marketing the concept– Social Media– Blog

CommunicationsSupport for operations

Next Steps

• Project– Write Transition

Plan– Document

Lessons Learned– Develop a

Roadmap to Viability

– Finish other project deliverables

• Program– Oversee account

managers– Collect tax– Manage

volunteers– Resolve

issues/inquiries– Monitor and

report

TransitionOverlap of Project and Operations

Post 7/1

- Refine processes- Monitor compliance

(contract administration, key performance measures, etc.)

- Monitor volunteer activity- Execute evaluation plan- Projects?

Next StepOperations

OperationsReporting Dashboard

Activities after launch