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Home My WebLink About2003 04 28 Regular A Feasibility Study Presentation on Toll Road042803 Commission Meeting Regular "A" Feasibility Study Presentation on Toll Road COMMISSION AGENDA ITEM A Apri128, 2003 Meeting Consent Informatiornal Public Hearing Regular X M / Dept. Authorization REQUEST: City Manager requesting the City Commission to receive a presentation by Randy Fox, Turnpike Planning Manager addressing issued raised by the Commission regarding a Feasibility Study on State Road 417. PURPOSE: This Agenda Item is needed to provide the Commission with additional information the Commission desires regarding S.R. 417. CONSIDERATIONS: On December 7, 2002 representatives of Florida Turnpike Enterprises provided a report to the City Commission regarding the results of a feasibility study evaluating the feasibility of reducing tolls on S.R. 417 between S.R. 434 and Red Bug Lake Road. The report failed to satisfy the Commission's concerns and questions which resulted in the Commission directing the City Manager to request additional information from Turnpike Enterprises. On January 30, 2003 the City Manager forwarded a letter to the Director of the Turnpike Enterprises which was answered in a letter of March 6, 2003. On March 14, 2003 the City Manager requested Turnpike Enterprises to schedule a presentation to the Commission at the April 14, 2003 meeting, to which they consented. FUNDING: Not Applicable. 042803Commission Meeting Regular "A" Feasibility Study Presentation on Toll Road Page 2 Of 2 RECOMMENDATIONS: The City Manager recommends that the Commission hear the report to be provided by Turnpike representatives and to provide the City Manager with any direction it deems necessary. ATTACHMENTS: 1) December 9, 2002 Regular Agenda Item "A". 2) City Manager Letter of January 30, 2003. 3) City Manager Letter of February 25, 2003. 4) James Ely Letter of March 6, 2003. COMMISSION ACTION: 120902 Regular A TRIP Results COMMISSION AGENDA ITEM A December 9, 2002 Bering Consent Informational Public Hearing Regular X Mgr. / Dept. Authorization REQUEST: City Manager requesting the Commission to receive a report from the Florida's Turnpike Enterprise on the results of the Toll Rebate Incentive Program (TRIP), a one-year pilot program to reduce tolls on State Road 417 between State Road 434 and Red Bug Road. PURPOSE: This agenda item is needed to advise the City Commission the results of the one- yearpilot program. CONSIDERATIONS: The Florida Turnpike Enterprise performed cone-year pilot program to determine the feasibility of reducing traffic on local roads by reducing tolls on SR 417 thereby encouraging motorists to use SR 417. The one-year pilot program included a toll reduction for all Sun Pass and E Pass users. Sun Pass and E Pass users received a toll reduction of up to 44-cents per trip, for trips between S.R. 434 and Red Bug Road. FUNDING: None RECOMMENDATION: It is recommended that the Commission receive the presentation of Mr. Joey Gordon, Regional Planning Administrator for Central Florida's Turnpike Enterprise. ATTACHMENTS: None COMMISSION ACTION: CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Ronald W. McLemore City Manager January 30, 2003 James Ely, Executive Director Turnpike Enterprise Post Office Box 613069 Ocoee, Florida 34761-3069 Dear Sir: On December 9, 2002 Representatives Joey Gordon, Regional Planning Administrator and Saad Shbaklo, Senior Transportation Engineer, Turnpike Enterprises, Turkey Lake Road, Ocoee, Florida, presented the results of the authority's study regarding the feasibility of reducing the toll rates on S.R. 417 between S.R. 434 and Red Bug Lake Road. Your representatives attempted to justify why the rates along this section of the comdor was .30 per mile rather than what was reported to be .12 1/2 per mile for other sections of the toll road system. Their attempts were not successful and it was obvious to everyone present that your representatives did not understand the basis upon which your rate is structured. In all fairness to your representatives, they did point out that they were not the appropriate people to provide this discussion. Therefore, the Commission has directed me to contact you and to arrange a date convenient to you to appear before the Commission to answer some questions, including the following: 1. What methodology is utilized for developing your toll rates? 2. Why is the toll for this section of road based upon .30 per mile rather than the .12- 1/2 per mile rate which the Commission believes to be the standard rate? 3. A proposal was forwarded to the authority to federalize S.R. 417 making it a part of the interstate system. That proposal was based upon the belief that it would be less costly in monetary and political capital for the Federal Government to take ownership of S.R. 417 and defease the outstanding debt in the alternative to widening I-4. This was based upon the belief that the removal of tolls and the savings of time resulting from bypassing downtown Orlando for motorists who do not have a downtown Orlando destination would result in motorists electing to use S.R. 417 in large numbers, thus reducing I-4 traffic dramatically. In addressing this question, I think it would be appropriate to advise you that you have some very astute and accomplished business people on the Winter Springs Commission with extensive financial management backgrounds and experience with local, state, and federal government policy making. They clearly understand the ways in which bond holders can be make whole in the restructuring of debt, and the ability of local, state, and federal officials to develop special law and means to deal with unique issues. For example, Jacksonville eliminated their toll road system through the passage of: a sales tax by local referendum to fund the debt and operations of their system of toll roads. Therefore, if the reason is political rather than financial I would suggest that you explain the dynamics of that. If you need any additional information from me regarding this matter, please don't hesitate to contact me at your convenience. Sincerely, /~ / Ronald W. McLemore City Manager ~JP cc: Mayor and Commission 01/03 Letters/Central Florida Toll Road Authority Page 2 of 2 ~~NTER~ ~ ~ u cn Ircorporrted \ ]959 _ / ~. Ronald W. McLemore Ciry Manager February 25, 2003 James Ely, Executive Director Turnpike Authority Post Office Box 613069 Ocoee, Florida 34761-3069 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 REFERENCE: FEASIBILITY STUDY: SR 417/Red Bug Lake Road Dear Mr. Ely: On January 30, 2003 I sent a letter requesting that you come before the City Commission to answer questions regarding the authority's above referenced feasibility study. As of this date I have had no response. After reviewing the attached letter, or if you need additional information, please don't hesitate to contact me at 407-327-5957 to arrange a time for you to come before the City Commission regarding this matter. Sincerel G~ '2t~' ' Ronald W. McLemore City Manager ~Jp cc: Mayor and Commission Attachment U:\Docs\Word\Letters\Year 2003\Feb 03\Expressway Authority Second Request.doc <: ~; <~" JEB BUSH Florida's Turnpike Enterprise GOVERNOR P.O. Box 613069 Ocoee, Florida 34761 March 6, 2003 Ronald W. McLemore, City Manager City of Winter Springs 1126 East State Road 434 Winter Springs,. Florida 32708-2799 Dear Mr. McLemore: MAC 1 3 2003. CITY OF W I tdTER a~'R1AK3$ CITY FW.L c~.c~lc~(~>~ C ~~~~~~~ LIAR ~ 3 2003 CITY G CI`ty ManagePRINGS The following information is provided in response to the questions raised in your letter dated January 30, 2003. Turnpike staff are available to appear before the City Commission if additional information is desired. What methodology is utilized for developing your toll rates? The Turnpike uses an efficient pricing tool that ensures consistency throughout the system while balancing our customer's needs and toll equity for all patrons to the maximum extent feasible. The initial 12 miles of the Seminole Expressway extended from SR 426/Aloma Avenue to US 17/92/Airport Boulevard. A traveler completing the entire route was charged a single toll of $1.50. at the mainline barrier located on the north side of Lake Jesup for a total fee of 12.5 cents per mile ($1.50 divided by 12 miles). This toll per mile is consistent with the rate used on similar toll roads in the state. With the recent extension of the Seminole Expressway to I-4, the distance traveled for the $1.50 toll is now 18 miles. Why is the toll for this section of road based upon $.30 per mile rather that the $.125 per mile rate which the Commission believes to be the standard rate? The average system-wide toll rate on the Seminole Expressway was 12.Ei cents per mile when it was established at a public hearing before the opening of the facility in 1994. Toll rates are based on the entire distance a vehicle may travel before paying another toll or exiting the facility. For example, a vehicle entering the facility at SR 434 to travel south may exit the facility at Aloma Avenue without paying. additional tolls. The toll rate for this movement is $.75 for a distance of six miles, which is equal to 12.5 cents per mile: A small proportion of travelers choose to make a shorter distance trip and exit at Red Bug Lake Road. .°J Mr. Ronald W. McLemore March 7, 2003 Page Two A proposal was forwarded to the authority to federalize SR 417 making if part of the interstate system. The Turnpike Enterprise is not aware of any proposal to "federalize" SR 417. The issue of eliminating tolls on SR 417 has been raised on a few occasions since the facility opened in 1994 as one suggestion for reducing traffic volumes on I-4. However, these proposals have lacked sufficient support due to the absence of adequate funding sources. A substantial amount of state or federal revenues would be needed to pay for ---=the°bonds=used-~to-finance construction=of~the facility-and the-recurring expenses-for law enforcement and the continued maintenance of the facility. These expenses are currently funded completely through toll revenues and do not reduce the funds available for other transportation improvements in the region. Turnpike Enterprise staff are available to appear before the Commission to discuss these or any other Turnpike issues in greater detail. Please feel free to contact Randy Fox, Turnpike Planning Manager, at (407) 532-3999 ext. 3041 to answer additional questions or to schedule a presentation. nce~ely, C~~%~^-~ mes L. Ely, DPA ecutive Director JLE/RF/emd c: The Honorable John F. Bush, Mayor The Honorable Robert S. Miller, District/Seat 1 The Honorable Michael S. Blake, District/Seat 2 The Honorable Edward Martinez, Jr., District/Seat 3 The Honorable Sally McGinnis, District/Seat 4 The Honorable David W. McLeod, District/Seat 5 Nancy Clements, Turnpike Enterprise Randy Fox, Turnpike Enterprise Date: 042803 The following was provided to the City Commission by Mr. Fox during the discussion of Regular Agenda Item "A" on 04/28/03. ~~~ .. ~- ~y, ~. ~ ~~ ~~ ~` ~-~ err ~~- a1 a -A'.~. X ... . ._ wv..~, o _....__.. fl 4 ,_,.., _ - ~,~ . - s ,~..a ~ f ~~._.. E ~ ~~ ._.... o 3