B A Y A R E A T O L L A U T H O R I T Y 1 Toll Increase Options for the State-owned Bay Area Bridges BATA Oversight Committee Public Hearing on Proposed Toll Increase November 4, 2009

B A Y A R E A T O L L A U T H O R I T Y 2 Major Reasons Driving the Need to Increase Revenues Dumbarton/Antioch Seismic Retrofit Increased Debt and Operations Costs Traffic Decreases

B A Y A R E A T O L L A U T H O R I T Y 33 Antioch & Dumbarton Bridge Retrofits Antioch Bridge  STRUCTURE: Steel plate girder  OPENED: December 1978  RETROFIT STRATEGY: Install isolation bearings, strengthen superstructure and substructure  Retrofit Completion: 2012 Dumbarton Bridge  STRUCTURE: Steel box girder and pre-stressed concrete approach spans  OPENED: October 1982  RETROFIT STRATEGY: Install isolation bearings, strengthen superstructure and substructure for main span and approaches  Retrofit Completion: 2013

Total Project Costs – $750 Million Description Antioch ($ Millions) Dumbarton ($ Millions) CONSTRUCTION COST ESTIMATE (ESCALATION TO MID YEAR OF CONSTRUCTION) $98$195 CONTINGENCIES 4565 SUBTOTAL CAPITAL COST ESTIMATE SUPPORT COST ESTIMATE 3995 MITIGATION COST ESTIMATE 1310 RISK COST ESTIMATE TOTAL COST ESTIMATE $267$483 4

B A Y A R E A T O L L A U T H O R I T Y 5 Traffic Bridge Traffic Trends (FY 98/99 through FY 08/09)  Total traffic has declined 8% from FY  Reduction in toll paying traffic accounts for about $50 million in reduced annual revenues from 2005 model forecasts.  FY first quarter average daily traffic was about 2% more than the same period a year earlier. 5

B A Y A R E A T O L L A U T H O R I T Y Assumptions2008 Assumptions Term30-40 Years30 Years ProductTraditional Fixed – 33%Traditional Fixed – 75% Future Interest Cost3.56% %6.25% %  Increased debt cost accounts for about $35 million in added annual costs from 2005 model forecast. Debt Costs Current Forecast of Debt Cost vs. Assumed Debt Costs In 2005 Finance Model

B A Y A R E A T O L L A U T H O R I T Y 7 Funding Strategy  Pursue operating cost savings  Improve toll violation collections  Seek new fund sources  Increase tolls Dumbarton/Antioch Seismic Retrofit Debt & Ops. Cost Increases Traffic Decreases

B A Y A R E A T O L L A U T H O R I T Y 8 Funding Strategy  Operating cost savings  FY toll collection costs are estimated to be $2.5 million less than in FY  Improve toll violation collections  Toll Violations have decreased 25% from FY  In FY , violation collections exceeded expected toll revenues from violations by $6.6 million.  Seek new fund sources  AB 1175 adds Dumbarton & Antioch Bridges to Seismic retrofit Program.  Current forecast of $86 million ending balance in SRP Program Contingency.

Option #1 — $5 for autos, $3 for carpools, & $6 per axle for trucks. Option #2 — $5 for autos; $0 for carpools, & $10 per axle for trucks. Option #3 — 6 Bridges: Same as Option #1; Bay Bridge $6 for autos in peak and $4 for autos in non-peak (M-F), $5 for autos on weekends. $166 mil.$165 mil.$164 mil. Toll Revenue Options Toll Revenue Generation Estimates 9

B A Y A R E A T O L L A U T H O R I T Y 10 Toll Revenue Options Option #1:  Charges carpools for seismic retrofit portion of toll charges  All carpools would be required to obtain a FasTrak toll tag for reduced rate and FasTrak toll equipment would be required in all carpool lanes.  At $6 per axle, toll rates about double for trucks. Vehicle Class Current Toll Option #1 Proposed Toll Rates 2-Axle$4.00 $ Axle$6.00 $ Axle$8.25 $ Axle$11.25 $ Axle$12.00 $ Axle$13.50 $35.00 Carpool$0.00 $3.00

B A Y A R E A T O L L A U T H O R I T Y 11 Toll Revenue Options Option #2:  No charge for carpools  To maintain free passage for carpools, truck charge would need to be $10 per axle. Vehicle ClassCurrent Toll Option #2 Proposed Toll Rates 2-Axle$4.00 $ Axle$6.00 $ Axle$8.25 $ Axle$11.25 $ Axle$12.00 $ Axle$13.50 $55.00 Carpool$0.00

B A Y A R E A T O L L A U T H O R I T Y 12 Toll Revenue Options Option #3 Option #3 (Bay Bridge congestion pricing)  Preliminary analysis shows congestion pricing could reduce morning peak delay (maximum delay per vehicle) on the Bay Bridge by 15% to 30%.  Requires additional testing that the current toll collection system has the ability to charge varying tolls by time of day. Vehicle ClassCurrent Toll Option #3 Proposed Toll Rates 2-Axle$4.00 Bay Bridge –  Peak: M-F $6.00  Non-peak: M-F $4.00  Weekend: $ Axle$6.00 $ Axle$8.25 $ Axle$11.25 $ Axle$12.00 $ Axle$13.50 $35.00 Carpool$0.00 $3.00

B A Y A R E A T O L L A U T H O R I T Y 13 Implementation Schedule DateMeetingDiscussion October 14, 2009 BATA Oversight Committee Staff presents toll options November 4, 2009 Public Hearing #1 Oakland, CA Public comment on options November 17, 2009 Public Hearing #2 San Mateo, CA Public comment on options December 3, 2009 Public Hearing #3 Concord, CA Public comment on options December 9, 2009 BATA Oversight Committee Staff recommendation on toll option January 13, 2010 BATA Oversight Committee Committee action on toll increase January 27, 2010BATA Authority action on toll increase July 1, 2010Toll increase is effective

B A Y A R E A T O L L A U T H O R I T Y 14 Follow-up From Questions at the October 14, 2009 BATA Oversight Committee Meeting

B A Y A R E A T O L L A U T H O R I T Y 15 Truck Use by Bridge Weekday Peak (AM & PM) Weekday Non-Peak Avg. Daily Vehicles Avg. Daily Trucks % by Bridge Avg. Daily Vehicles Avg. Daily Trucks % by Bridge Antioch3, %2, % Benicia28,6951,0564%20,0951,3777% Carquinez26,5851,3735%26,0761,8257% Dumbarton15, %10, % Richmond18, %15, % Bay Bridge61, %52,5301,2063% San Mateo26, %18, % TOTAL181,2475,2793%146,2126,5455%

B A Y A R E A T O L L A U T H O R I T Y 16 Truck Registrations Average Daily (weekdays) Trucks on State-Owned Bridges Trucks California Registration Out of State Registration Percent Out of State 12,2748,5923,68230%  Non CA States with Highest Truck Bridge Use:  Oregon  Ohio  Nevada  Arizona  Arkansas  Washington

B A Y A R E A T O L L A U T H O R I T Y 17 History of Truck Toll Rates  Toll increase options begin to restore 1992 truck/auto per axle toll rate differentials. Per axle Auto Toll Rates vs. Truck Toll Rates

B A Y A R E A T O L L A U T H O R I T Y 18 Motivations to Carpool Survey Questions from Commute Profile 2005 Percentage “Yes” Sample Size If you could save $50 per month, would you be willing to try carpooling or transit to work? 42%1,778 If you could decrease your travel time by up to 15 minutes a day, would you be willing to carpool or use transit to get to work? 59%2,021  Commuters are influenced to carpool more by time than dollar savings.

B A Y A R E A T O L L A U T H O R I T Y 19 Use of Current Tolls  Current Toll Structure  Regional Measure 1 (1989)$1  Seismic Surcharge (1998)$1  Regional Measure 2 (2004)$1  Seismic Surcharge (2007)$1 TOTAL AUTO TOLL $4  Current Annual Toll Revenues  Regional Measure 1 (1989)$125 M  Seismic Surcharge (1998)$115 M  Regional Measure 2 (2004)$115 M  Seismic Surcharge (2007) $115 M TOTAL ANNUAL REVENUES$470 M TOTAL ANNUAL REVENUES$470 M

B A Y A R E A T O L L A U T H O R I T Y 20 Use of Current Tolls FY BATA Budget FY BATA Budget Bridge O & M$59 Administration$12 Financing Costs$32 Transit Transfers$73 BAIFA Transfer$99 Capital Transfer$32 Debt Service$307 TOTAL$614

Use of New Toll Revenues  New Funding Required – $160 million in new annual revenues:  Dumbarton & Antioch seismic retrofits –$75 million  Traffic decreases – $50 million  Debt cost increases – $35 million $160 million Dumbarton/Antioch Seismic Retrofit Debt & Ops. Cost Increases Traffic Decreases 21

B A Y A R E A T O L L A U T H O R I T Y 22 New Toll Revenues Sensitivity Analysis  A 1 percent drop in future debt costs would result in a need for $24 million less in annual new revenues.  Increasing traffic by 1 percent annually to 2004 levels would result in a need for $40 million less in annual new revenues.  Finance staff believes that current assumptions are needed to maintain AA ratings.

B A Y A R E A T O L L A U T H O R I T Y 23 Congestion Pricing Impacts on the Bay Bridge 27 min. 21 min. 18 min. 16 min. 15 min. 13 min. Delay Reduction (Maximum delay per vehicle) for Congestion Pricing Alternatives

B A Y A R E A T O L L A U T H O R I T Y 24 Congestion Pricing Options - AM Peak Period Vehicle Delay Most significant delays are between 6:30 a.m. and 8:30 a.m. on the Bay Bridge. Existing

B A Y A R E A T O L L A U T H O R I T Y 25 Average Household Income $60,078 East BayWest Bay  Average income for all Transbay travelers is above the Bay Area average household income level.  Low income workers comprise 15% of Eastbay and Westbay drive alone categories. Affordability: Household Income vs. Bay Bridge Peak Commuters

Affordability: Express Lane Findings Finding: Finding: The concept of pricing is popular among all income groups Annual Household Income of Peak Period Users (Orange County Express Lane) Finding: Finding: At any given time about 3/4 of vehicles in the toll lanes belong to low- and middle-income individuals. What do you think of allowing single drivers to use the carpool lanes by paying a toll (Minneapolis) ? 26

B A Y A R E A T O L L A U T H O R I T Y 27  Bay Bridge tolls have lagged transbay transit fares. Bay BridgeAC Transit*BART* Year Dollars Current2009Current2009Current $1.30$ $0.50$3.65$1.00$ $0.50$2.19$1.20$5.25$1.10$ $4.00 $8.00 $6.20 * Transit fares are roundtrip transbay fares. Affordability: History of Bay Bridge Corridor Tolls and Transit Fares

B A Y A R E A T O L L A U T H O R I T Y 28 Why Congestion Pricing on Bay Bridge?  Peak delays at the toll plazas, except the Bay Bridge, are minimal.  FasTrak ® customers only have delays at Dumbarton and Bay Bridges. Toll Bridge Maximum Delay Times (minutes) Minutes of Delay

B A Y A R E A T O L L A U T H O R I T Y 29 Comments may be sent to BATA by: Fax — —