hot lanes on i-77
DESCRIPTION
HOT Lanes on I-77. An imminent calamity. Jan 14, 2013. What is a HOT Lane?. High Occupancy Toll Lane Vehicles meeting occupancy requirements use for free, others pay toll Toll varies based on congestion Offers drivers a choice Manages congestion. Source: MUMPO I-77 FAQs April 17, 2012. - PowerPoint PPT PresentationTRANSCRIPT
HOT Lanes on I-77An imminent calamity
Jan 14, 2013
What is a HOT Lane? High Occupancy Toll Lane
Vehicles meeting occupancy requirements use for free, others pay toll
Toll varies based on congestion
Offers drivers a choice
Manages congestion
Source: MUMPO I-77 FAQs April 17, 2012
How will the I-77 HOT lanes work?
Lanes monitored with electronic and video
Users with transponders have tolls deducted from pre-paid account (no toll booths)
Non-transponder users photographed and mailed bill
Source: MUMPO I-77 FAQs April 17, 2012
The Problem
Phase 1: Single GP lane in both directions from I-485 to exit 28:
~$50M
Phase 2: Single GP lane in both directions from exit 28 to exit
36: ~$75M
Source: Meeting with Bill Coxe, Sept 20, 2012; “I-77 HOT Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, Oct. 10, 2012
The Initial Solution
Source: “I-77 Feasibility Study HOV-HOT Lanes Conversion”, Parsons- Brinkerhoff, May 6, 2010
Current Funding
Now that $27M + $15M have materialized, what if…
Source: MUMPO 2012- 2018 TIP, Adopted
We Used It For GP Lanes?
A $13M Gap Keeps Us From a General Purpose Lane, Phase 1
The Initial Proposal – TIP 5405 HOT
Source: “I-77 Feasibility Study HOV-HOT Lanes Conversion”, Parsons- Brinkerhoff, May 6, 2010
But the initial proposal did not have enough toll paying miles in it, so…
Add HOT Lanes
Convert HOV to
HOT Lanes
The Current Proposal
Source: “I-77 HOT Lanes Project Overview NCSITE Lunch N’ Learn”, August 21, 2012; “I-77 Widening Update”, MUMPO (Bill Coxe), Sept 19, 2012; “Billions invested in Roads”, Charlotte Observer, Jan 14, 2013
Let’s look at the projects in Mecklenburg…
5405 & 3311C
27.5 Miles of HOT Lanes
Cost: $550M
5405
HOV–HOT Lane $7M
2nd HOT Lane $50M
Source: MUMPO 2012- 2018 TIP (Adopted); KRN Analysis
3311C
Issue Cost
I-277 Connector $$$$M
Widen Lanes $16.5M
Environmental $$$
Source: I- 3311E; “I-77 Local Officials Meeting”, August 1, 2012
The Current Proposal
?
The Real Cost of HOT Lanes
HOT Lanes Require $300M+ Investment- 6X GP Lanes
Items in Red- No benefit to LKN
The HOT Lane
Financial Model
Requires Substantial Additional
Investments
Source: ibid, I-77 HOV- HOT Lane Conversion Fact Sheet, Mar 10, 2010
HOT Lanes GP Lanes
Construction 50.0$ 50.0$
HOV-HOT Conversion
7.0$ -$
Additional HOT Lane
50.0$ -$
Widen Lanes in Charlotte
16.5$ -$
I-277 Connector $$$$ -$
Downtown Cleanup
$$$
HOT Lane Operating Cost
100.0$ -$
P3 Profit 100.0$ -$
Center Dropdown Lanes
$$$ -$
Total: 323.5$ 50.0$
Phase 1: Widening I-77 from Exit 23 to Exit 28
The Real Cost of HOT Lanes- 2
Paying for the whole pizza but getting only a slice
Construction
HOV-HOTConversionAdditional HOT Lane
Widen Lanes inCharlotteI-277 Connector
Downtown Cleanup
HOT Lane OperatingCostP3 Profit
HOT Lanes GP Lanes
Construction 50.0$ 50.0$
HOV-HOT Conversion
7.0$ -$
Additional HOT Lane
50.0$ -$
Widen Lanes in Charlotte
16.5$ -$
I-277 Connector $$$$ -$
Downtown Cleanup
$$$
HOT Lane Operating Cost
100.0$ -$
P3 Profit 100.0$ -$
Center Dropdown Lanes
$$$ -$
Total: 323.5$ 50.0$
Phase 1: Widening I-77 from Exit 23 to Exit 28
About That $50M GP Lane…
$37M Public Funds +
$13M funding gap…
…that end up costing us over $300M!!
HOT Lanes and Congestion
HOT lanes rely on congestion
More congestion = more profit
Atlanta: I85 vs I77
Just How High Will Those Tolls Be?Sources: “First year of HOT lanes brings drivers…”, Atlanta Journal Constitution, Oct 12, 2012; GDOT; “Metro Atlanta’s toll lanes are not part of the solution…” Brian Gist, Dec 11, 2011; MUMPO 2010 Traffic Counts
I85 I77Number of GP Lanes 12 4Traffic Counts, GP Lanes (vpd) 271,500 96,000 Vehicles per GP Lane 22,625 24,000
HOT Lane Distance (Miles) 15.5 27Number of HOT Lanes 1 2HOV 3+ 3+Capital Cost ($M) 56 550
Operating Cost ($M) 3.90 2.0Operating Cost/Mile 0.25 0.07
Yr 1 Revenues (11mo) 3.05 ??
Highest Toll ($) 5.95 ??
HOT Lane Options
HOT Lane Restriction
Highest Throughput
Best for P3
Lower Cost
Lowest Throughput
HOT Lane
Capacity
Low: 2 PPV High: 3 PPV
Low: 1 Lane
High: 2 Lanes
“HOV 2+ require substantial subsidies from the state”
Source: “I-77 Feasibility Study HOV-HOT Lanes Conversion”, Parsons- Brinkerhoff, May 6, 2010
HOT Lanes & Congestion
HOT lanes are expected to have “minimal impact to the travel speed in the existing general purpose lanes.”- “Comments on Environmental Documents for TIP
Projects I-3311 C and I-4750 HOT”, MUMPO memo dated October 4, 2012
HOT Lanes Will Ensure Congestion, Not Relieve It
HOT Lanes & the Future
Unplanned Revenue Impacting Facility
Compensation Event
Source: “I-77 HOT Lane Project Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, October 15, 2012
HOT Lanes and Our Future Q: “Will there ever be an opportunity to
construct GP lanes along I-77 under the P3 scenario?”
A: “The answer is technically “yes” but it would almost certainly cost the public much more than the cost of construction and… it would be an ongoing cost through the remaining life of the contract.”
Source: “I-77 HOT Lane Project Discussion with Cornelius Town Board”, email from Bill Coxe to Andrew Grant, October 15, 2012
HOT Lanes Put Us in a Contractual Straightjacket
Some Existing HOT LanesCA 91 ORANGE COUNTY
I 15 SAN DIEGO
I85 ATLANTA
US 290 HOUSTON
I-77 HOT Lanes
Mooresville
Davidson
Cornelius
Huntersville
Combined Population:
~150,000
Source: US Census Bureau, 2010
A Quick Comparison
CityHOT Lane
Length (Mi)
Served Population
(000)
Public or Private
Tolls Pay for Construction?
Orange County SR 91 10 3,055 Public NoHouston US 290 13 1,500 Public NoAtlanta I-85 16 1,317 Public NoSan Diego I-15 20 1,500 Public NoLKN I-77 28 150 Private Yes
Source: “A Guide for HOT Lane Development,” FHA, 2003
Economic Burden
Population Supporting One Mile of HOT Lane
People
(Thou
sand
s)
LKN Citizens Bear >15x the Burden of Other HOT LanesSource: “A Guide for HOT Lane Development,” FHA, 2003
306
11585 75
50
50
100
150
200
250
300
350
SR 91 US 290 I-85 I-15 I-77
Additional Economic Burden: I77 vs I85
$107
$0.10
$0.20
$0.30
$0.40
$0.50
I85I77
$0.003
Annual Liability, Per Person
I77 I85Capital $550M $0Term 50YrsCapital/Yr $11M $0
Op Cost $3M $4MProfit $2M $0
Total Annual Cost $16M $4M
What’s Going On?
Expect tremendous future congestion
Future taxpayer subsidy
Significant public money put into project
SC vs NC: Tax Comparison
Rock Hill (SC)Lake Norman
(NC)Corporate Income Tax 5.00% 6.90%Gas Tax (c/gal) 16.8 39.2Gas Tax + State Excise Tax 35.2 57.8Gas Tax Rank 47 6Sales Tax 7.00% 8.75%Interstate 8 GP Lanes Toll Lane
Source: NC Fast Facts 2013, John Locke Foundation; tax-rates.org; sctax.org; taxfoundation.org
6 Lanes
8 Lanes
HOT Lane
6 Lanes
Location
8 Lanes
6 Lanes
The Bedroom Community is located…
HOT Lanes on I-77:HOT Lanes on I-77:
1. Cost more- much more- than GP lanes2. Require additional improvements with
no benefits to LKN commuters3. Ensure congestion instead of relieving it4. Limit our ability to make future
improvement5. Lock us into an agreement with a
private company for 50years6. Negatively impact our economy
An Expensive, Non-Solution That Limits Future Improvements and Negatively Impacts Our Economy
What Should Our Leaders Do?
Convene an ad hoc task force to develop general purpose lane alternatives
Convince the NCDOT to postpone awarding the contract until all alternatives have been vetted
What Can I Do?
Contact your town/county commissioners and request they establish the task force
Attend wideni77.org working session
Spread the word!
