1. Managed Lanes and Bus Rapid Transit: Emerging New Financing Opportunities ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Ed Regan Senior Vice President

2. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates HOT / BRT: Better Together Managed and HOT Lanes Gaining Interest in U.S. Managed and HOT Lanes Gaining Interest in U.S.  SR 91 Express Lanes - Orange County  I-15 Managed Lanes - San Diego  I-10 (Katy Freeway) Managed Lanes - Houston  I-635 (LBJ Freeway) Managed Lanes - Dallas BRT Enjoying Resurgence BRT Enjoying Resurgence Today’s Presentation Looks at Examples of Potential New Synergies Between the Concepts Today’s Presentation Looks at Examples of Potential New Synergies Between the Concepts  A “highway” solution can also become a “transit” solution  Together they can provide a new framework for “High Quality Transportation”

3. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates A Look at the New I-10 (Katy Freeway) Project in Houston. A Look at the New I-10 (Katy Freeway) Project in Houston. A Look at I-15 in San Diego - Including Public Perceptions about Managed Lanes. A Look at I-15 in San Diego - Including Public Perceptions about Managed Lanes. The Potential for HOT / BRT Together. The Potential for HOT / BRT Together.  Hint: Think “Win - Win” Today’s Presentation

4. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Managed Lanes - The SR 91 Example

5. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates IH-10 Managed Lanes Houston Part of Major Katy Freeway Expansion Program. Part of Major Katy Freeway Expansion Program. Innovative Operational and Financing Solution to Difficult Congested Corridor. Innovative Operational and Financing Solution to Difficult Congested Corridor. Could be Important Model for Urban Freeway Expansion in the Future. Could be Important Model for Urban Freeway Expansion in the Future.

6. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Project Location Map

7. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Managed Lanes Access Configuration SH 6 BRT Park & Ride BRT Park & Ride Dairy Ashford Rd SH 8 Silber Rd BRT Park & Ride BRT Park & Ride N No Scale 6 10 6 88 Dairy Ashford Rd Sam Houston Tollway Sillber Rd Post Oak Ln Bunker Hill Rd

8. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Current and Planned IH-10 Configurations Planned Expanded Configuration General Purpose Lanes Reversible Carpool Lane General Purpose Lanes Current Configuration General Purpose Lanes General Purpose Lanes Future Managed Lanes

9. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Groundbreaking Project Cooperative “Public-Public” Partnership. Cooperative “Public-Public” Partnership.  TexDOT – State Agency  HCTRA – County Toll Agency  METRO – Regional Transit Agency  FHWA and FTA Tolls Used to Finance a Portion of the Major Expansion of an Urban Interstate. Tolls Used to Finance a Portion of the Major Expansion of an Urban Interstate.  HCTRA will provide $250 million in revenue bonds toward overall project cost Managed Lanes Replace Single Reversible HOV Lane. Managed Lanes Replace Single Reversible HOV Lane. Incorporation of Bus Rapid Transit. Incorporation of Bus Rapid Transit. Fully Electronic Open Road Tolling. Fully Electronic Open Road Tolling. Variable Pricing to Maintain Free Flow for BRT, HOV and Toll Users. Variable Pricing to Maintain Free Flow for BRT, HOV and Toll Users.

10. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Unique Transit Provisions Four Managed Lanes Replace Single Reversible Lane. Four Managed Lanes Replace Single Reversible Lane. METRO Provided up to 25% of Peak Period Capacity in Peak Direction. METRO Provided up to 25% of Peak Period Capacity in Peak Direction.  Express Busses  Three person Carpools Pricing will be Set to Maintain Free Flow for Transit / HOV’s. Pricing will be Set to Maintain Free Flow for Transit / HOV’s. TexDOT Agrees to “Buy Out” Remaining Bonds if Rail Constructed in Corridor in Distant Future. TexDOT Agrees to “Buy Out” Remaining Bonds if Rail Constructed in Corridor in Distant Future.

11. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Key Provision for Transit. Key Provision for Transit. HCTRA Agrees to Always Price the Managed Lanes to Assure 55 MPH Operating Speed - Even in Peak Hours. HCTRA Agrees to Always Price the Managed Lanes to Assure 55 MPH Operating Speed - Even in Peak Hours. Busses Have Free Usage - Plus Direct Access To/From BRT Center Park and Rides. Busses Have Free Usage - Plus Direct Access To/From BRT Center Park and Rides. Essentially a Four Lane, Two Directional Free-Flowing “Busway”. Essentially a Four Lane, Two Directional Free-Flowing “Busway”.  Shared with, and paid for by, toll paying vehicles (managed through pricing) Using Price to Manage Demand

12. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Typical Managed Lanes Access Peak Period Managed Lane CURRENT TOLL To Dairy Ashford $0.50 Free 1 or 2 Occupants HOV 3+ To $2.50 Free 610 To Bunker Hill $1.00 Free

13. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Typical Tolling Zones Police Car Guide Posts

14. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Toll Rate / Operations Profile Westbound P.M. Peak REVENUE REVENUE, $/TRAVEL PERIOD 3.25 1.652.15 4.905.957.057.608.209.203.805.456.508.70 0.002.75 4.35 THROUGH TRIP TOLL RATE ($) M/L VMT Total HOV3 LOV VMT, VEHICLE MILES TRAVELED/PERIOD THROUGH TRIP TOLL RATE ($) SPEED General Purpose Lanes Managed Lanes SPEED (MPH) THROUGH TRIP TOLL RATE ($) SPEED General Purpose Lanes Managed Lanes SPEED (MPH) THROUGH TRIP TOLL RATE ($) REVENUE REVENUE, $/TRAVEL PERIOD THROUGH TRIP TOLL RATE ($) M/L VMT THROUGH TRIP TOLL RATE ($) 3.25 1.652.15 4.905.957.057.608.209.203.805.456.508.70 0.002.75 4.35 Total HOV3 LOV VMT, VEHICLE MILES TRAVELED/PERIOD 3.25 1.652.15 4.905.957.057.608.209.203.805.456.508.70 0.002.75 4.353.25 1.652.15 4.905.957.057.608.209.203.805.456.508.70 0.002.75 4.35 3.25 1.652.15 4.905.957.057.608.209.203.805.456.508.70 0.002.75 4.353.25 1.652.15 4.905.957.057.608.209.203.805.456.508.70 0.002.75 4.35 20072015 Optimum Toll Rate

15. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Through Trip Toll Rates AM Peak AM Shoulder Mid-Day PM Shoulder PM Peak $2.20 2.15 1.10 $5.45 3.80 2.15 1.65 $6.75 5.45 2.15 AM Peak AM Shoulder Mid-Day PM Shoulder PM Peak $0.55 0.55 0.85 1.65 2.70 $1.10 1.10 0.85 3.25 4.35 $1.65 1.65 1.10 4.90 6.75 Eastbound Westbound 200720152022

16. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Peak Hour Traffic Distribution* LOV HOV-3+ CV Total 11,500 900 100 12,500 8,900 100 9,100 2,300 800 3,100 Eastbound - AM Peak Westbound - PM Peak 20.0% 88.9% 24.8% LOV HOV-3+ CV Total 11,400 800 300 12,500 9,400 100 300 9,800 2,000 700 2,700 17.5% 87.5% 21.6% Total Demand General Purpose Lanes Manual Lanes Managed Lanes Share * 2003 Levels at East Toll plaza

17. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Broad Support for the I-15 Managed Lanes Project Stakeholders Stakeholders  Elected Officials support the project  Technical stakeholders look to repeat previous success Focus Groups Focus Groups  Broad support for project, especially Bus Rapid Transit  Current FasTrak customers showed strongest support Intercept Surveys (50 carpoolers/50 transit riders along I-15 Corridor) Intercept Surveys (50 carpoolers/50 transit riders along I-15 Corridor)  92% of carpoolers thought FasTrak lanes were “fair to them”  94% of transit riders thought FasTrak lanes were “fair to them”

18. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Good Idea to Have Time Saving Option on I-15 Don’t Know 2% Strongly Disagree 3% Somewhat Disagree 4% Somewhat Agree 21% Strongly Agree 70%

19. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Approval of FasTrak Program on I-15 Approve 88% Don’t Know 1% Disapprove 11% Don’t Know 6% Disapprove 28% FasTrak Customer Other I-15 Users Approve 66%

20. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates FasTrak Program Reduces Congestion on I-15 Strongly Agree 65% Somewhat Agree 25% Somewhat Disagree 5% Strongly Disagree 5% Strongly Agree 42% Somewhat Agree 31% Somewhat Disagree 11% Strongly Disagree 14% Don’t Know 2% FasTrak Customer Other I-15 Users

21. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Don’t Know 5% Extend Express Lanes 37% Add Regular Lanes 26% Build Other Roads 21% Add Transit 11% FasTrak Customer Other I-15 Users Single Most Effective Way to Reduce Congestion on I-15 Extend Express Lanes 49% Add Regular Lanes 24% Build Other Roads 13% Add Transit 10% Don’t Know 4%

22. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates HOT/BRT: Better Together Win - Win Scenario. Win - Win Scenario.  Highway Side  Transit Side Innovative Integrated Finance Opportunity. Innovative Integrated Finance Opportunity. Potential Integrated “High Quality” Transportation Solution. Potential Integrated “High Quality” Transportation Solution.

23. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Key Ingredient: Value Pricing Manages Demand to Keep Lanes Flowing - Preserves Critical Time Savings Advantage. Manages Demand to Keep Lanes Flowing - Preserves Critical Time Savings Advantage.  For toll paying vehicles  For BRT (“Virtual” Busway) Generates Revenue. Generates Revenue.  For capital cost to get lanes built - (I-10 example)  For transit operating subsidies where HOV lanes exist (I-15 example) Highway / Transit Cross Subsidy Not Really an Issue. Highway / Transit Cross Subsidy Not Really an Issue.  Motorists are voluntarily paying a toll for time savings benefits they receive  Not simply a toll for the benefit of a mode they are not using Pricing Provides a “Built-In” Incentive to Shift to Transit Pricing Provides a “Built-In” Incentive to Shift to Transit

24. ENGINEERS PLANNERS ECONOMISTS Wilbur Smith Associates Bottom Line: Managed Lanes / BRT Together Can… Increase Efficiency of Existing HOV Lanes. Increase Efficiency of Existing HOV Lanes. Enhance Park & Ride Programs and Transit Services. Enhance Park & Ride Programs and Transit Services. Merge Roadway and Transit Systems, Making Most Efficient Use of Each. Merge Roadway and Transit Systems, Making Most Efficient Use of Each. Manage Demand Through Value Pricing. Manage Demand Through Value Pricing. Provide a Badly Needed New Source of Revenue. Provide a Badly Needed New Source of Revenue. Generate Strong Public Support - A True “Win - Win” Scenario Generate Strong Public Support - A True “Win - Win” Scenario