David Ungemah, senior planning manager at Parsons Brinckerhoff, shares his thoughts on the "Innovative Funding & Financing" panel at the 2012 Charlotte Chamber Transportation Summit.

1. Managed Lanes
More than a Revenue Tool
© Parsons Brinckerhoff, 2012.

2. David Ungemah
Parsons Brinckerhoff National Managed Lanes Director
2012 CHARLOTTE CHAMBER
TRANSPORTATION SUMMIT
April 13, 2012 © Parsons Brinckerhoff, 2012. 2

3. We’re Paying Less, Driving More
April 13, 2012 © Parsons Brinckerhoff, 2012. 3

4. As Fuel Economies Go Up,
Revenues Go Down
Light Duty Truck Passenger Vehicle Hybrid Electric Vehicle
20 mpg 30 mpg 50 mpg 0 mpg
NC Tax Fed Tax NC Tax Fed Tax NC Tax Fed Tax NC Tax Fed Tax
Miles / Year
$ 0.39 $ 0.18 $ 0.39 $ 0.18 $ 0.39 $ 0.18 $ 0.39 $ 0.18
20,000 $ 392 $ 184 $ 261 $ 123 $ 157 $ 74 $ - $ -
15,000 $ 294 $ 138 $ 196 $ 92 $ 118 $ 55 $ - $ -
10,000 $ 196 $ 92 $ 131 $ 61 $ 78 $ 37 $ - $ -
April 13, 2012 © Parsons Brinckerhoff, 2012. 4

5. Restoring Purchasing Power
• Federal tax increase of 10¢ just to restore
purchasing power from 1998 (AASHTO)
April 13, 2012 © Parsons Brinckerhoff, 2012. 5

6. A Story of Fiscal Concerns
• A Nation of Debtors
• National: $15.6 Trillion
• State: $1.1 Trillion
• Local: $1.7 Trillion
• Long term policy needs
• Social Security: $7 Trillion
• Trust fund exhausted in 2036
• Medicare gap: $38 Trillion
• Trust fund exhausted in 2014
April 13, 2012 © Parsons Brinckerhoff, 2012. 6

7. Transportation Consequences
• Transportation
Reduction
maintenance and in
Increase
improvement is New
In Urban
Congestion
expensive ($5+ Capacity
Trillion)
The Widening
• … But doing nothing Transportation
is also expensive … Depression Funding & Inflation &
Of Total
Service Gap Wage
Tax
Decline
• … Yet it’s unlikely Revenue
to change given
all the other Erosion of
issues this Economic
country faces. Vitality
April 13, 2012 © Parsons Brinckerhoff, 2012. 7

8. Looking Ahead
• “One Size Fits All” doesn’t work anymore
• Restore the “User Pays” principle
• New technologies open new doors
April 13, 2012 © Parsons Brinckerhoff, 2012. 8

9. OK, so now what?
THE LINK TO MANAGED
LANES
April 13, 2012 © Parsons Brinckerhoff, 2012. 9

10. Fighting Congestion
• Reduces Capacity
When Needed Most
• Hinders Commerce
• Costs $100+ Billion
Annually
• Expensive
Infrastructure to
Resolve
April 13, 2012 © Parsons Brinckerhoff, 2012. 10

11. April 13, 2012 © Parsons Brinckerhoff, 2012. 11

12. What If?
• Guaranteed
Congestion Free
Freeway Lanes
• Safe and Reliable
Travel
• Long Term Return
on Investment
April 13, 2012 © Parsons Brinckerhoff, 2012. 12

13. What are Managed Lanes?
What are they? What are the benefits?
• Dedicated Lanes • Greater throughput
• “Freeway within a • Transit & carpools
Freeway”
• Travel time reliability
• Proactively Managed
• Decreased fuel
• Real-time response to
supply and demand consumption
• Preservation of • Improved air quality
Capacity • Revenue generation
April 13, 2012 © Parsons Brinckerhoff, 2012. 13

14. Managed Lanes Design
• Initially tolled managed lanes were fully-separated
facilities.
SR-91 I-25
I-15 I-10
4/23/2012 © Parsons Brinckerhoff, 2011 14

15. Managed Lanes Design
• New Managed Lanes are more integrated into the
freeway with less physical separation.
SR-167 I-95
I-85 I-35W
4/23/2012 © Parsons Brinckerhoff, 2011 15

16. More Efficiency
Each lane is moving
1400 vehicles at 25
mph
Each lane is moving
1500 vehicles at 60
mph
April 13, 2012 © Parsons Brinckerhoff, 2012. 16

17. Transit Compatibility
April 13, 2012 © Parsons Brinckerhoff, 2012. 17

18. Managed Lanes Generate
Revenue
April 13, 2012 © Parsons Brinckerhoff, 2012. 18

19. The Challenge of Managed
Lanes
Gee, Wally. Why
• I’ve already would you put a
paid for it! toll on a freeway?
• Don’t trust
government
with more of
my money
• Tolls never go
away!
• Unfair to (fill
in the blank)
April 13, 2012 © Parsons Brinckerhoff, 2012. 19

20. Imagining the Benefits
• There is no reason to put up with
congestion anymore
• Active observation and management
• Restores user pay principle
• Helps pay for the specific capacity needed
April 13, 2012 © Parsons Brinckerhoff, 2012. 20

21. WHAT’S HAPPENING IN
NORTH CAROLINA?
April 13, 2012 © Parsons Brinckerhoff, 2012. 21

22. Charlotte Region Fast Lanes
April 13, 2012 © Parsons Brinckerhoff, 2012. 22

23. Charlotte Region Fast Lanes
April 13, 2012 © Parsons Brinckerhoff, 2012. 23

24. I-77 Public-Private Partnership
• New Managed Lanes
• Convert existing HOV lane
• Extend facility north / south
• Expand two lanes in each direction
• Private Partners
• Revenue risk by private entity
• 50 Year agreement
• Maximize private financing;
minimize public funds
• Dynamic pricing
April 13, 2012 © Parsons Brinckerhoff, 2012. 24

25. FINAL THOUGHTS
April 13, 2012 © Parsons Brinckerhoff, 2012. 25

26. What If We Could…
• Build projects by leveraging new
funding without increasing taxes?
• Empower local governments to invest
in needed roadways?
• Right-size our highway system, so as
to reduce project costs and other
impacts?
April 13, 2012 © Parsons Brinckerhoff, 2012. 26

27. David Ungemah
ungemah@pbworld.com
April 13, 2012 27
© Parsons Brinckerhoff, 2012.