presented to Southeast Florida FSUTMS Users Group presented by Don Vary Cambridge Systematics, Inc. November 2, 2007 Assessment of Southeast Florida Road User Costs

2 Agenda Project Overview Review of Methodologies Values Developed

3 Assessment of Road User Costs Project Overview District 4 starts to build economic assessment framework Develop localized and statewide values for Travel time Vehicle operating costs Transit being considered separately Develop flexible spreadsheet applications Assess localized travel costs in construction zones

4 Project Overview Steps Conduct literature reviews Determine key markets, factors Conduct data review, collection, analysis Develop values ($/mile) Conduct workshops −Methodology −User group

5 VOC Development of Vehicle Operating Costs Methodology for Auto and Truck VOCsNational State Local Sources Adjustment Factors Cost Parameters Fuel Costs DepreciationFinance Fuel Tax Sales Tax Licensing and Registration Tires Maintenance and Repairs Insurance City/Highway Conditions Speed

6 Vehicle Operating Costs Methodology – Basic Parameters/Assumptions Vehicle class types Autos – compact, mid-size, large, minivan, SUV Trucks – single-unit and combination-unit Driving range Auto – 12,000-15,000 miles per year Truck – 100,00 miles per year Driving conditions Operations in urban setting (35 mph) Vehicle age Autos – 10-year old vehicle Trucks – costs averaged over 5 100,000 miles/year

7 Vehicle Operating Costs Methodology – Fuel Costs, Consumption Rates Fuel prices Energy Information Administration Consumption rates Auto – Truck – MDOT VOC study Small Size Vehicle (mpg) Medium Size Vehicles (mpg) Large Size Vehicles (mpg) Overall Fuel Efficiency (mpg) $0.074/mile$0.096/mile$0.11//mile$0.097/mile Single-Unit Truck (mpg) Combination-Unit Truck (mpg) 96.5 $0.248/mile$0.343/mile Consumption Rates and Costs/Mile

8 Maintenance and Repairs Methodology – Costs/Mile Contacted dealerships Function of Cost of oil/filter changes (3K) Regular tune-ups (30K) Prevailing shop rates Single-Unit Truck Combination-Unit Truck $0.063 (11.2%) $0.084 (10.7%) Small Size Vehicle Medium Size Vehicles Large Size Vehicles $0.03$0.03$0.04 Cost per Mile

9 Tires Methodology – Costs per Mile Contacted local dealerships Function of Mileage between changes (45K) Cost of new tire set Statewide and local wage rates Small Size Vehicle Medium Size Vehicles Large Size Vehicles $0.01$0.01$0.02 Single-Unit Truck Combination-Unit Truck $0.030 (5.3%) $0.040 (5.1%) Cost per Mile

10 Insurance Methodology – Cost per Mile Allstate – quotes for leased and owned vehicle by vehicle type Auto and truck Average uses Standard policies Small Size VehicleMedium Size VehiclesLarge Size Vehicles $0.10$0.09 Single-Unit TruckCombination-Unit Truck $0.013 (2.3%)$0.064 (8.1%) Cost per Mile

11 Depreciation Methodology – Cost per Mile Autos – Based on Kelly Blue Book Function of age and mileage based depreciation by region Information collected by vehicle class and brand name Trucks – MNDOT Study (5-8 cents/mile) Small Size VehicleMedium Size VehiclesLarge Size Vehicles $0.16$0.17$0.25 Single-Unit TruckCombination-Unit Truck $0.05/mile$0.08/mile Cost per Mile

12 Finance Charges Methodology – Costs per Mile Capital One Interest rates Autos – 4.39% Trucks – 11.0% Small Size Vehicle Medium Size Vehicles Large Size Vehicles $0.04$0.04$0.06 Single-Unit Truck Combination-Unit Truck $0.013 (2.3%) $0.036 (4.6%) Cost per Mile

13 License and Registration Fees Methodology and Fee, Costs per Mile Local tax collection offices Differ by weight Other components are a flat fee Single-Unit Truck Combination-Unit Truck $165.60$ $0.001 (0.2%) $0.001 (0.1%) Small Size Medium Size Vehicle Large Size Vehicle $157.60$157.60$ $0.003$0.003$0.004 Fee and Cost per Mile

14 Taxes Methodology Local option gas tax Localize state gas figures to counties Florida transportation tax source primer on county tax rates Sales tax Florida Department of Revenue Incorporate tax into finance charges

15 Low-Range Vehicle Operating Costs-Southeast Florida Results

16 $78,800$56,198Annual Total Vehicle Operating Cost $0.788$0.563Total Vehicle Operating Cost $0.001 (0.1%)$0.001 (0.2%) License and Registration $0.036 (4.6%)$0.013 (2.3%) Finance Charges $0.130(16.5 %)$0.130 (23.1%) Depreciation $0.064 (8.1 %)$0.013(2.3%) Insurance $0.040 (5.1%)$0.030 (5.3%) Tires $0.084 (10.7%)$0.063 (11.2%) Maintenance and Repairs $0.090 (11.4%)$0.065 (11.5%) Fuel Tax $0.343(43.5%) $0.248 (44.0%) Fuel Cost Cost/mile 100,000 Mileage per year City City/Highway Condition 45 Speed (mph) 55Vehicle Lifespan (Years) Combination- Unit Truck Single-Unit Truck Vehicle Class Attributes Proposed Truck Operating Costs Southeast Florida Results

17 Spreadsheet Calculator VOC Variables Vehicle mix Annual average mileage Average vehicle lifespan Stop-and-go scenarios – city or highway conditions Average speed scenarios Tires change frequency scenarios Tires change costs per job Oil change frequency scenarios Oil change costs per job Maintenance and repairs frequency scenarios Maintenance and repairs costs per job Fuel costs Fuel taxes Fuel economy License and registration costs Sales taxes Finance rates and charges Vehicle life span Annual insurance costs

18 Development of Travel Time Values Methodology Determine Markets Develop Generalized Values Develop Localized Values Validate/Test Reconcile with VOC Markets Literature Review Income/Wage Data Survey Traffic Counts Apply Model Post Processor Sketch Planning

19 Methodology Potential Market Segmentations Segmentation Type Sample Segmentation Details Age 15-24, 25-34, 35-44, 45-54, 55+ Attitudinal Characteristics of Traveler Sensitivity to Pricing, Time Savings, Stress, etc. Gender Male, Female Income Personal, Household Industry Private, Government, etc. Level of Employment Full-Time, Part-Time, Unemployed, Self-Employed, Housewife, Student, Retired Mode Bus, Truck, Auto, Transit, In/Out-Vehicle Occupation Sales, Professional, Clerical, Precision, Production and Crafts, etc. Purpose of Travel Business, Personal, Commute, Home-to-Work, Home-to-Other Time-of-Day Peak, Off-Peak (continued next slide)

20 Methodology Potential Market Segmentations (continued) Segmentation Type Sample Segmentation Details Travel Time Trip Distance Truck – Driver Payment Method Hourly, Other Truck – Fleet Type For-Hire, Private Truck – Load Truck Load, Less-than-Truck Load Type of Development Urban, Rural Type of Travel Local, Intercity, Carpool, Alone, Passenger, Driver Vehicle Class Small Auto, Light Truck, Heavy Truck, 4-Axle Combination, etc. No Segmentation

21 Value of Time by Market for Personal Travel 50%$10.58/Hour$10.83/Hour Personal (visitor) 50%$10.58/Hour$10.83/Hour Personal (local) 60%$12.69/Hour$13.01/HourCommuter $43,994$45,061 Wage-all Industries Percent of Wage Rate Southeast Florida National Source:US Census National Income and Product Account. AASHTO Red Book. Values in 2004 dollars

22 Value of Time for On-the-Clock Travel $25.80/Hour $25.80/Hour $27.19/Hour $27.19/Hour Total ($2004) $22.24$23.44 Hourly ($2000) $46,621$48,753 Total Compensation ($2000) $35,585$37,502 Wages ($2000) FloridaAverage SoutheastNational On the Clock TTV Component Source:National Income and Products Accounts, Bureau of Economic Analysis, U.S. Census Bureau. Values in 2004 dollars

23 Value of Time and Proportion of Travel by Trip Purpose$ %0%90%0%Nonhome-based $11.345%0%95%0% Home-based Unknown $ %0%90%0% Home-based Other $10.590%5%95%0% Home-based Social/Recreational $10.580%0%100%0% Home-based School $10.590%5%95%0% Home-based Shopping $12.690%0%0%100% Home-based Work $25.80$10.83$10.58$12.69 Average On-the- Clock Visitor Personal Local Personal Commute Source:National Income and Products Accounts, Bureau of Economic Analysis, U.S. Census Bureau. Values in 2004 dollars

24 9:00- 11:30 a.m. 1:30- 4:30 p.m. Value of Time and Proportion of Travel by Time-of-Day$11.63$11.92$11.92$11.82$11.79$11.76Average 16%22%32%46%32%16%Nonhome-based 1%1%1%1%1%0% Home-based Unknown 25%21%21%20%25%20% Home-based Other 16%8%6%5%7%3% Home-based Social/ Recreational 3%5%10%3%3%16% Home-based School 13%11%11%14%16%3% Home-based Shopping 25%32%20%11%16%40% Home-based Work Other 4:30- 6:30 p.m 11:30 a.m.- 1:30 p.m. 6:30- 9:00 a.m. Source: Southeast Florida Home Interview Survey.

25 Combination- Unit Trucks Distribution of Traffic and TTVs by Functional Classification$ %1.6%0.4%95.9% Urban Collector $ %1.2%0.2%97.8% Urban Minor Arterial $ %1.7%0.2%97.1% Urban Other Principal Arterial $ %2.2%0.5%94.7% Urban Principal Arterial – Other Frwys/Exprswys $ %2.4%0.6%92.2% Principal Arterial – Interstate $ %3.7%0.3%88.9% Rural Major Collector $ %2.9%0.2%93.2% Rural Minor Arterial $ %2.9%0.4%89.7% Rural Principal Arterial – Other $ %2.8%0.6%80.1% Rural Principal Arterial – Interstate TTVs Single-Unit Trucks Buses Personal Vehicles Source: FDOT District 4 Traffic Monitoring System.

26 Distribution of Traffic and TTVs by Vehicle Classification$31.10$31.10$118.55$19.86 Total Vehicle TTV Average Occupancy $25.80$25.80$11.68$12.65 Per-Person TTV 100%100%5%10%On-the-Clock 10%10%Visitor/Personal 70%55%Local/Personal 15%25%Commute Combination- Unit Trucks Single-Unit Trucks Buses Personal Vehicles Source: National Household Travel Survey, National Transit Database, Team consensus

27 SEFRUC Survey Telephone survey administrated to random sampling of 5,000 households in Southeast Florida 200 completed surveys Calls made early evening/late evening weekdays/weekends Questions related to Socioeconomic characteristics Trip making characteristics Stated preference questions

28 SEFRUC Survey Results 2004 Dollars Travel time values for all trips fall in the range of $8-$12 Consistent with previous findings from national sources that have been adjusted for use in Southeast Florida Respondents attach a higher value to work trips than nonwork trips $12 versus $8, when un-weighted, or $10.30 and $7.40 when weighted by age distribution in the population Higher income respondents have a higher value of time than lower-income residents $7.80 versus $16.70 un-weighted by age distribution, or $7.90 and $11.20 when weighted by age distribution in the population

29 RUC for Construction Projects TTI – 1999 study Used MicroBenCost Lookup tables −Texas conditions −Cost per day per mile, 10% trucks VOC values −$12/hour for Texas ($11 for Florida) OHIO – Construction Incentive Program $1.6K/day (32.5K maximum) Florida – D5 bonuses SR 434$7K/day ($600K maximum) I-4 Polk County$10K/day ($2M maximum) ADT Rural 4-Lane Suburban 4-Lane VOC + TTV Cost per day per mile 20,0005,8006,800 50,00015,80020,600