By BRADEN LAMMERS
Braden.Lammers@newsandtribune.com
JEFFERSONVILLE — Four different tolling scenarios were presented to the Louisville and Southern Indiana Bridges Authority at its meeting Thursday as it continues to attempt to find a funding mechanism for the $4.1 billion Ohio River Bridges Project.
In several scenarios presented, tolling on bridges spanning the Ohio River could begin as early as 2013.
The first option presented would begin collecting money through tolls on both the Kennedy Bridge and the Sherman Minton Bridge in 2013.
“That’s a very aggressive tolling schedule...to get out there and get revenue early and quickly,” said Tim Sorenson, Kentucky division manager and senior project manager with Wilbur Smith and Associates, who was conducting a tolling study.
The group, along with Gary Valentine, project manager with the Ohio River Bridges, also presented a preliminary timeline for completion of the two new bridges across the Ohio River.
“Just looking at the elements of what can be done and the stages involved and the project development activities needed to be complete we think both bridges could be open by 2020,” Valentine said.
The hope is that construction on the East End would be completed first, in 2017, and downtown construction to be completed in 2020.
In the first scenario, tolling would begin on the new bridges in their respective completion dates.
An alternative to the first plan would take early tolling off of the Kennedy Bridge, but it would remain for the Sherman Minton and the new bridges when each is completed.
Scenario two would allow for no tolls on the I-64 — Sherman Minton Bridge — early tolling on the I-65 — Kennedy Bridge — and tolling on the new bridges in the years they open. An alternative to the second plan would again have no toll in place for the I-64 bridge and no early tolling on the I-65 bridge, but keep tolls in place on the East End and secondary I-65 bridge when they are completed.
The Second Street Bridge — Clark Memorial Bridge — was not included in any of the plans presented and when Chairman of the bridges authority Joe Prather was asked if it was still an option he said, “I don’t think so.”
“Every IDEM [Indiana Department of Environmental Management] plan that I’ve seen would leave [the Second Street Bridge] without tolls,” Prather said. “It gives someone who wants to totally avoid tolls the ability to do so.”
The options presented are still in the preliminary phase of planning and there are still several steps before the bi-state authority is able to implement anything.
Once a decision is made, delays are still a concern.
The time frame to get an investment grade study on tolling together may create problems because it must include a travel demand model that has not been completed.
“It’ll take some time to get that going,” Sorenson said. “A travel demand model takes...nine months to upgrade the model.”
Aside from the time frame how to pay for the completion of the work is still the most prominent issue facing the authority.
The focus has shifted to how, where, when and what type of tolling process to use.
One of the questions that was addressed was how much money could be generated by tolling.
Eugene Ryan, vice president and Chicago manager with Wilbur Smith and Associates discussed a “value of time” variable.
“We try to characterize how people would trade off the time savings that they would have for using the toll facility versus the toll that they would pay in what we call the value of time,” Ryan said.
As tolls are implemented traffic diversion may be a major factor for those that are unwilling to pay a toll.
“Pretty obviously as you look at tolling the facilities you’re going to have a decrease in traffic because some people are going to not want to pay that toll, a better level of service, a faster trip, a shorter travel time,” Ryan said.
Finding the optimum level of what people are willing to pay by using the bridges is the answer the group is trying to determine.
“This is the way you determine the toll rate you want to charge,” Ryan said.
Financing issues also lingered on securing public and private financing options to cut down on the cost of tolls and the amount of money the bridges authority may be forced to borrow.
“I understand that where you are now is uncomfortable because you have more questions than answers and you have more issues to consider than you have decisions,” said Susan Buse, senior associate with Wilbur Smith and Associates. “The tolls may support part of your program and there may be other parts that are supported by other sources.”
The tolling system that will be used was also presented, both modern systems.
Modern tolls can handle about 2,000 vehicles per hour versus about 700 for the old system where a driver pulls up to a booth and pays, Buse said.
One consists of taking a video snapshot of license plates as they cross the respective bridge and sending the owner of the vehicle a bill.
Another system is a tag or transponder technology where there is a device in the vehicle that automatically deducts money from an account.
Both systems presented are an electronic system that mitigates slowing traffic, creating idling time and in turn less impact on air quality, but they are not without their flaws.
For a bill later system there is a risk of not being able to collect the toll money.
“It’s a challenge for every authority that I’m aware of,” Buse said.
She referred to the system as having a significant risk of collection, but she would not offer a specific value on how much revenue is often lost.
The license plate scanning may also be a concern.“What we’re seeing in the state of Kentucky at our weight stations is the plate readers are only accurate about 50 percent of the time,” said board member Jamie Fiepke. “If we’re only getting 50 percent accuracy that is a huge issue that has to be addressed.”
Fiepke asked that the plate issue be addressed in the group’s study.
LEGISLATIVE IMPACT
State and federal legislation is also having an impact on the bridges authority moving forward.
The groundwork has been laid through state legislation to move the bi-state group closer to having official administrative action through a ratification process that must take place in both states.
“That ratification has to take place before we can take final action,” Prather said.
According to officials with the bi-state authority, the legislation that would ratify the authority for Indiana has passed through its House of Representatives and Senate and is currently ready for enrollment.
Kentucky legislation has passed out of the Senate and is currently before the House of Representatives, officials said.
Yet another issue is the federal impact on the Ohio River Bridges Project.
Co-Chairman of the bridges authority Kerry Stemler recapped the visit from U.S. Transportation Department Secretary Ray LaHood and the possible federal funding avenues that could be available to the complete the project.
In addition to the $600 million in transportation grant funding that may become available and funding through national infrastructure improvements, the extension of the transportation bill will have a vital role.
“The biggest opportunity for this project [LaHood] said could be in the months ahead with the six-year transportation bill known as reauthorization and deliberation,” Stemler said.
But the holdup on the reauthorization of the transportation bill through a block imposed by Sen. Jim Bunning, R-Ky, on federal legislation has stalled progress.
Bunning ended his block of a bill to extend unemployment and health insurance benefits, but the extension that has been offered by Congress will only extend 30-days.
“Obviously we’ll have to have some more action by Congress before the end of this month,” said Russ Romine, with the Kentucky transportation cabinet. “We hope to have a longer term short-term extension at least through the end of this calendar year and it is [the] hope that both the House, Senate and this administration can work together for a full reauthorization at some point next year.”
Direct effects to the bridges authority could be the loss of substantial amounts of possible federal funding.
The transportation fund is already in a precarious position.
The Highway Trust Fund has already borrowed about $15 billion transferred from the general fund and an additional $19 to $21 billion transfer will need to take place to keep it the fund solvent through the end of this year and into next year, Romine said.
“Full reauthorization is something that is desperately needed,” he said. “With this full reauthorization, we anticipate projects of national significance playing a large part in that reauthorization. Obviously this commitment, this board is positioned well to be first in line to seek such funding for projects of this significance."
