RECOMMENDATION TO THE DULLES CORRIDOR AND FINANCE COMMITTEES

Transcription

1 RECOMMENDATION TO THE DULLES CORRIDOR AND FINANCE COMMITTEES Proposed Amendment to the Regulation that Establishes Toll Rates for Use of the Dulles Toll Road November 2018

2 Purpose To brief the Dulles Corridor and Finance Committees (Committees) on input received from the public and the Dulles Corridor Advisory Committee (DCAC) on the proposed Dulles Toll Road (DTR) toll rate increase and potential DTR toll collection options and operational improvements. To request that the Committees approve and recommend to the Board of Directors adoption of a regulatory amendment to increase the toll rates on the Dulles Toll Road. 2

3 Review the reasons for periodic adjustments to DTR toll rates, Summarize the Airports Authority s regulatory process for adjusting DTR rates, Provide an overview of public comments on the proposed toll rate increases at the DTR ramp and mainline toll plazas, Describe public input on potential toll collection options and DTR operational improvements, Outline a proposed action plan developed by the Airports Authority staff and advisors, Summarize input from the DCAC, and Discussion Outline Recommend adoption of the proposed regulatory amendment increasing DTR toll rates. 3

4 Background The Airports Authority must implement periodic toll adjustments to operate and maintain the DTR, to pay DTR debt service obligations and to comply with bond rate covenants. A projected toll rate schedule was initially made public in 2009 when the first DTR revenue bonds were issued. Modifications were made in 2012 and Financial Planning Assumption in 2009 without TIFIA or State Grants Current Estimates with TIFIA and State Grants Year Mainline Ramp Cost of Full Trip * Mainline Ramp Cost of Full Trip * 2009 $0.75 $0.50 $1.25 $0.75 $0.50 $ $1.00 $0.75 $1.75 $1.00 $0.75 $ $1.25 $0.75 $2.00 $1.25 $0.75 $ $1.50 $0.75 $2.25 $1.50 $0.75 $ $2.75 $1.75 $4.50 $1.75 $1.00 $ $2.75 $1.75 $4.50 $2.50 $1.00 $ $2.75 $1.75 $4.50 $2.50 $1.00 $ $2.75 $1.75 $4.50 $2.50 $1.00 $ $2.75 $1.75 $4.50 $2.50 $1.00 $ $4.00 $2.75 $6.75 $2.50 $1.00 $ $4.00 $2.75 $6.75 $3.25 $1.50 $ $5.00 $3.75 $8.75 $4.00 $2.00 $ $6.00 $4.75 $10.75 $4.75 $2.50 $ $7.00 $5.75 $12.75 $5.50 $3.25 $ $8.00 $6.75 $14.75 $6.25 $3.75 $ $9.00 $7.75 $16.75 $7.00 $4.25 $ * Mainline plaza toll plus one ramp transaction

5 Background, continued Cost of Full Trip * (Mainline plaza toll plus one ramp transaction) Mainline Ramp Total 2013 $1.75 $1.00 $ $2.50 $1.00 $ $2.50 $1.00 $ $2.50 $1.00 $ $2.50 $1.00 $ $2.50 $1.00 $ $3.25 $1.50 $ $4.00 $2.00 $ $4.75 $2.50 $ $5.50 $3.25 $ $6.25 $3.75 $10.00 The current disclosure and investor expectations regarding future toll rates, shown in the schedule to the left, include an assumed toll rate increase in calendar year This schedule was published in the Comprehensive Traffic and Revenue Study, 2014 Update. * Order of magnitude estimates based on numerous assumptions, including no future debt restructurings $7.00 $4.25 $

6 Millions Projected Net Toll Revenue and Debt Service Coverage* $250 $200 $150 $100 $50 $ First Senior DTR Debt Service Subordinate DTR Debt Service Net Revenue After Toll Road O&M with Proposed Toll Rate Increases Second Senior DTR Debt Service (net of State funding for interest) Junior DTR TIFIA Loan Payments Net Revenue Required to Maintain Minimum 1.20x Debt Service Coverage * Based on preliminary estimates from the Comprehensive Traffic and Revenue Study, 2018 Update prepared by CDM Smith using the 2019 toll rates in the proposed regulatory amendment; amounts subject to change. 6

7 Millions Projected Net Toll Revenue and Debt Service Coverage with No Toll Rate Increase $250 $200 $150 $100 $50 $ First Senior DTR Debt Service Subordinate DTR Debt Service Net Revenue After Toll Road O&M with No Toll Rate Increase Second Senior DTR Debt Service (net of State funding for interest) Junior DTR TIFIA Loan Payments Net Revenue Required to Maintain Minimum 1.20x Debt Service Coverage 7

8 Airports Authority s Regulatory Process Notice of Public Hearings and Public Comment Period on Proposed DTR Toll Rate Increases Notice for three public hearings was published on June 25, The public was invited to submit written comments between July 2 and August 3 at the public hearings, on the Airports Authority s website, via and regular mail. Information about the public hearings and the public comment period was provided in print and digital banner advertisements in local newspapers in English and Spanish. Reminders were posted regularly to social media and sent to the Airports Authority s stakeholder distribution lists. Public Hearing Dates and Locations July 11, 2018 July 17, 2018 July 19, :00 to 8:00 p.m. 5:00 to 8:00 p.m. 5:00 to 8:00 p.m. Spring Hill Elementary School South Lakes High School Stone Bridge High School McLean, VA Reston, VA Ashburn, VA

9 Airports Authority s Regulatory Process, continued Provide information on the Proposed Toll Rate Increases The Airports Authority proposed to amend its regulation that establishes the toll rates for the Dulles Toll Road. The proposed amendment, if adopted, would increase the Dulles Toll Road toll rates in the following manner, effective January 1, 2019: Vehicle Class Mainline Toll Plaza Tolled Ramp Entrances/Exits From To From To 2-axle $2.50 $3.25 $1.00 $ axle $5.00 $6.50 $2.00 $ axle $6.25 $7.75 $2.50 $ axle $7.50 $9.00 $3.00 $ or more axles $8.75 $10.25 $3.50 $4.50 9

10 Airports Authority s Regulatory Process, continued Provide additional information on the Dulles Toll Road and the Metrorail Project The information provided at the public hearings addressed the following subjects: Dulles Toll Road operations and the E-ZPass program; Dulles Corridor improvements; The Metrorail Silver Line Project; and The Finance Plan and other financial information relating to funding the operations of and improvements to the Dulles Toll Road and construction of the Metrorail Silver Line Project. This information was provided in a series of display boards relating to each subject area with Airports Authority staff members assigned to each area to answer questions. Copies of the public hearing brochure, informational exhibits, traffic study and Q&A are available at 10

11 Airports Authority s Regulatory Process, continued Solicit public input on potential toll collection options and operational improvements to assist with ongoing planning efforts for the DTR. The Airports Authority invited comments on the following topics: 1) Whether the proposed increase of $1.25 in the cost of a Dulles Toll Road typical trip should be allocated as proposed between the mainline toll plaza and ramps (i.e., a $0.75 increase at the mainline toll plaza and a $0.50 increase at the tolled ramps) or should be allocated in a different manner between the mainline plaza and ramps; 2) Whether, at a future date to be determined, the Dulles Toll Road s toll plaza lanes that allow customers to pay in cash should be converted to E-ZPass only (or open road tolling), similar to newer toll facilities; 11

12 Airports Authority s Regulatory Process, continued 3) Whether, at a future date to be determined, credit cards should be accepted in certain Dulles Toll Road toll lanes, similar to the Dulles Greenway and other toll facilities; and 4) Whether any other operational improvements should be made to the Dulles Toll Road. 12

13 Report on Public Comments A total of 52 individuals attended the three public hearings. During the comment period, 181 individuals and 3 organizations submitted a total of 190 comments. The 190 comments conveyed a total of 363 views, positions and recommendations on the proposed toll rates (187) and on the four posed questions (176). Not Provided, Metro DC, 5 17 Loudoun County, 24 Fairfax County, 135 Stated Residence of the 181 Individuals Submitting Comments The summary data provided above is not intended to be a substitute for the information provided in the Report on Public Comments prepared for the Airports Authority. 13

14 Report on Public Comments, continued Comments on the proposed toll rate increases can be grouped in the following general categories: Comments by General Category A toll rate increase will make the toll road unaffordable and divert traffic to local streets Alternative sources of funding for the Silver Line should be pursued to reduce or eliminate the toll increases Number of Comments Increasing DTR toll rates to fund the Silver Line is not fair 23 Do not increase toll rates 20 General support for the toll increases as proposed 7 The summary data provided above is not intended to be a substitute for the information provided in the Report on Public Comments prepared for the Airports Authority. 14

15 Report on Public Comments, continued Question 1: Should the proposed increase of $1.25 in the cost of a typical DTR trip be allocated as proposed between the mainline toll plaza and ramps or allocated in a different manner? Comments by General Category Increase the ramp toll rate as proposed at all or at certain ramps; no increase or a smaller increase than proposed at the mainline toll plaza Increase rates at the mainline toll plaza and the ramps to rates other than the proposed rates Allocate the toll increase between the ramps and mainline toll plaza as proposed Number of Comments Do not increase the toll rates 7 Increase the mainline toll rate as proposed; no increase or a smaller increase than proposed at the ramps 2 The summary data provided above is not intended to be a substitute for the information provided in the Report on Public Comments prepared for the Airports Authority. 15

16 Report on Public Comments, continued Question 2: Should the DTR toll plaza lanes that now allow customers to pay in cash be converted, at some point in the future, to E-ZPass only lanes (or open road tolling)? Comments by General Category Number of Comments Full Conversion of Cash to E-ZPass 19 Partial Conversion (leave one cash lane at each location) 13 No Conversion of Cash to E-ZPass 12 The summary data provided above is not intended to be a substitute for the information provided in the Report on Public Comments prepared for the Airports Authority. 16

17 Report on Public Comments, continued Question 3: Should credit cards be accepted in certain Dulles Toll Road toll plaza lanes at some point in the future? Comments by General Category Number of Comments Accept credit cards; eliminate cash option 20 Accept credit cards; retain at least one cash lane 11 Do not accept credit cards 7 The summary data provided above is not intended to be a substitute for the information provided in the Report on Public Comments prepared for the Airports Authority. 17

18 Report on Public Comments, continued Question 4: Should any other operational improvements be made to the Dulles Toll Road? Comments by General Category Miscellaneous suggestions involving repaving or restriping the road, improving certain exit ramps, adding another HOV lane, allowing HOV to travel toll-free, and tolling in one direction only Mitigate toll-related incentives for traffic to avoid the mainline toll plaza and to use local streets instead Number of Comments Implement distance-based tolling 7 No operational improvements necessary 7 The summary data provided above is not intended to be a substitute for the information provided in the Report on Public Comments prepared for the Airports Authority. 18

19 Dulles Corridor Advisory Committee (DCAC) The Airports Authority consults with the DCAC with respect to any proposed toll rate adjustment, but DCAC consent or approval of toll rate adjustments is not required under the agreements with the Commonwealth of Virginia. The DCAC, which has eight members (two representatives each from the Commonwealth, Fairfax County, Loudoun County, and the Airports Authority) met on October 11, In addition to receiving updates on the construction and financing of the Rail Project, the DCAC was briefed on the public comments received on the proposed DTR toll rate increases and potential DTR toll collection options. Some comments contained suggestions and concerns that cannot be addressed without additional technical analysis and/or consultation and coordination with other transportation agencies. The Airports Authority staff discussed a potential action plan with DCAC members that could help ensure potential opportunities are properly evaluated and developed. 19

20 Action Plan Discussed with the DCAC 1. Implement the proposed toll rate increase as presented to the public and reserve an option to modify toll rates at specific ramp locations in calendar year The same toll rate is charged at all tolled ramp locations, and there are some ramp locations that are not tolled. It may be possible to address potential traffic diversion issues along the eastern end of the DTR corridor by reducing the toll rate at the Spring Hill Road ramp locations or by imposing tolls at the Route 7 ramp locations that are currently not tolled. The potential ramp tolling options would have to be evaluated based on the technical feasibility of collecting different tolls with existing or new technology, the estimated implementation costs and the potential impacts on safety, traffic flow and toll revenue. This action would enable the Airports Authority to meet its financial obligations while evaluating ramp tolling options. 20

21 Action Plan Discussed with the DCAC, continued 2. Work with VDOT, Fairfax County and Loudoun County to identify and evaluate potential strategies for enhancing mobility in the Dulles Corridor. In addition to evaluating potential ramp toll rate options, the Airports Authority would work with VDOT and the Counties to identify other potential opportunities to address traffic issues along the DTR corridor. Any mobility strategies that are developed would be advanced through appropriate transportation planning and project approval processes. 21

22 Dulles Toll Road Mainline and Ramp Locations $1.00 $1.00 $1.00 $ 1.00 Centreville Rd. Reston Pkwy. Hunter Mill Rd. Leesburg Pike (SR 7) Spring Hill Rd. I-495 Capital Beltway $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $2.50 $1.00 $1.00 SR 123 Dulles International Airport LEGEND Dulles Toll Road Dulles Access Highway Buses Only Sully Rd. (SR 28) Mainline Toll Plaza Ramp Toll Plaza $1.00 Herndon Monroe Park & Ride Lot $1.00 $1.00 Fairfax County Pkwy. (SR 7100) $1.00 $1.00 Wiehle Ave. $ 1.00 Trap Road $ 1.00 Current DTR Toll Rates (2018) before implementation of proposed toll increase Mainline Toll Ramp Toll 2-axle vehicle $2.50 $ axle vehicle $5.00 $ axle vehicle $6.25 $ axle vehicle $7.50 $ or more axles $8.75 $3.50 $2.50 $1.00 $1.00 I-66 West Falls Church Metro 22

23 DCAC Recommendations 1. Concur with Airports Authority staff and advisor recommendation to implement the proposed toll rate increase as presented to the public and to reserve an option to modify toll rates at specific ramp locations in calendar year Concur with Airports Authority staff and advisor recommendation to work with VDOT, Fairfax County and Loudoun County to identify and evaluate potential strategies for enhancing mobility in the Dulles Corridor. 3. Include the Northern Virginia Transportation Authority in a collaborative effort to improve mobility in the Dulles Corridor and ensure that adequate funding is secured for any new initiatives. 4. Continue the ongoing efforts to mitigate future DTR toll rate increases by working with the funding partners to pursue new sources of funding for construction and/or to offset the financing costs for the Metrorail Silver Line Project. 23

24 RECOMMENDATION That the Finance and Dulles Corridor Committees approve the actions set out in this recommendation, and that the Committees recommend to the Board of Directors that it take the following actions: 1. Adopt an amendment to the Metropolitan Washington Airports Authority Regulations which will establish the following toll rates for the Dulles Toll Road, effective January 1, 2019: Vehicle Class Mainline Toll Plaza Tolled Ramp Entrances/Exits 2-axle $3.25 $ axle $6.50 $ axle $7.75 $ axle $9.00 $ or more axles $10.25 $

25 RECOMMENDATION, continued 2. Reserve an option, which may be exercised by the Board of Directors no later than the close of calendar year 2020, to reduce the toll rate (from $1.50) at one or more of the currently tolled ramps at the DTR s Springhill Road and Route 7 intersections, and to establish a toll rate (at $1.50 or less) at one or more of the ramps at the Route 7 intersections that are currently not tolled; 3. Instruct staff to work with the Virginia Department of Transportation, Fairfax County, Loudoun County and, as appropriate, the Northern Virginia Transportation Authority to identify and evaluate (i) potential new strategies and initiatives for enhancing mobility in the Dulles Corridor (including the potential toll rate actions described above in paragraph 2), and (ii) sources of funding for any such strategies and initiatives; and 4. Instruct staff to continue the Airports Authority s ongoing efforts to mitigate future DTR toll rate increases by working with the funding partners to pursue new sources of funding for construction and/or to offset the financing costs for the Metrorail Silver Line Project. 25

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27 Dulles Toll Road RECOMMENDATION RECOMMENDATION PAPER TO THE DULLES CORRIDOR AND FINANCE COMMITTEES ADOPTION OF AMENDMENT TO THE REGULATION ESTABLISHING TOLL RATES ON THE DULLES TOLL ROAD NOVEMBER 2018 That the Dulles Corridor and Finance Committees approve, and recommend that the Board of Directors take, the following actions: 1. Adopt an amendment to the Metropolitan Washington Airports Authority Regulations (Regulations) which establishes new toll rates for the Dulles Toll Road (DTR), as shown below in Table 1 on page 2 of this report and in Attachment A, including for two-axle vehicles a toll rate of $3.50 at the DTR mainline toll plaza and a rate of $1.50 at the DTR tolled entrance/exit ramps, effective January 1, 2019; 1 2. Reserve an option, which may be exercised by the Board of Directors no later than the end of calendar year 2020, to reduce the toll rate (from the new rate of $1.50) at one or more of the currently tolled ramps at the DTR s Springhill Road and Route 7 interchanges, and to establish a toll rate (at $1.50 or less) at one or more of the ramps at the Route 7 interchange that are currently not tolled; 3. Instruct staff to work with the Virginia Department of Transportation, Fairfax County, Loudoun County and, as appropriate, the Northern Virginia Transportation Authority to identify and evaluate (i) potential new strategies and initiatives for enhancing mobility in the Dulles Corridor (including the potential toll rate actions described above in paragraph 2), and (ii) sources of funding for any such strategies and initiatives; and 4. Instruct staff to continue the Airports Authority s ongoing efforts to mitigate future DTR toll rate increases by working with its funding partners to pursue new sources of funding for construction and/or to lower the financing costs of the Metrorail Silver Line project. 2 1 This amendment revises Section 10.1 of the Regulations and establishes new toll rates for the DTR. Section 10.1 falls within Part 10 of the Regulations, and the amendment also makes certain technical revisions to other sections in this part. The amended Part 10 is attached as Attachment A. Section 10.1, as amended, shows the new DTR toll rates (which will become effective January 1, 2019) for various types of motor vehicles based on their number of axles. These new rates are the same as the proposed toll rates which were the subject of the public hearings and public comment period described in the Background portion of this report. 2 A proposed resolution adopting this recommendation is attached as Attachment B.

28 Dulles Toll Road BACKGROUND A. Public Hearings and Public Comments on the Proposed DTR Toll Rate Increases At their June 20, 2018, meeting, the Dulles Corridor and Finance Committees of the Airports Authority s Board of Directors authorized staff to initiate the process for amending the Airports Authority regulation which establishes toll rates for the DTR. The Committees also authorized staff, during this process, to conduct public hearings and seek public comment on a proposed set of toll rate increases (shown below in Table 1), as well as on four specific questions relating to operations of the DTR (set out below in Table 2). Table 1 - Proposed Toll Rate Increases Vehicle Class Main Line Toll Plaza Tolled Entrance/Exit Ramps From To From To 2-axle $2.50 $3.25 $1.00 $ axle $5.00 $6.50 $2.00 $ axle $6.25 $7.75 $2.50 $ axle $7.50 $9.00 $3.00 $ or more axles $8.75 $10.25 $3.50 $4.50 Table 2 - Questions Presented for Public Input 1. Should the proposed increase of $1.25 in the cost of a typical Dulles Toll Road trip be allocated as proposed between the mainline toll plaza and ramps (i.e., a 50-cent increase at the ramps and a 75-cent increase at the mainline plaza) or should it be allocated in a different manner between the ramps and mainline plazas? 2. At a future date to be determined, should the Dulles Toll Road s toll plaza lanes that allow customers to pay in cash be converted to E-ZPass only (or open road tolling), similar to newer toll facilities? 3. At a future date to be determined, should credit cards be accepted in certain Dulles Toll Road toll plaza lanes, similar to the Dulles Greenway and other toll facilities? 4. Should any other operational improvements be made to the Dulles Toll Road? On June 25, 2018, the Airports Authority published a notice in The Washington Post (attached as Attachment C) that, among other things, described the proposed DTR toll rate increases, stated the four specific operational questions on which the Airports Authority was seeking public input, 2

29 Dulles Toll Road provided information regarding three public hearings that would be held on the proposed toll rate increases, explained how information on the proposed increases could be obtained and how written comments on the proposed increases could be submitted outside of the public hearings, stated that the period for the submission of comments would run from July 2, 2018, through August 3, 2018, and invited members of the public to submit comments on the toll rate increases and the four posed questions during the comment period. In addition to the notice in The Washington Post, notice of these three public hearings was provided in a variety of ways. Print and/or digital banner advertisements were placed in the Fairfax Times, Loudoun Now, Loudoun Times-Mirror and Washington Informer. Spanish language advertisements were placed in the Washington Hispanic and El Tiempo Latino. Public hearing notices were posted on the Airports Authority s website ( Reminders were also posted regularly to the Airports Authority s Twitter account which were retweeted by media outlets. And blasts were distributed to the Airports Authority s customer and stakeholder distribution lists. The notice published in The Washington Post stated that translators would be available at each public hearing to assist Spanish-speaking attendees. In addition, the notice stated that individuals wishing other translation services for additional languages should contact the Airports Authority at a specific number at least 72-hours in advance of the hearing. The notices also indicated that American Sign Language interpreters would be available for the hearing impaired at each hearing. Public hearings were conducted on the dates and locations shown in Table 3. Table 3 - Public Hearing Dates and Locations July 11, 2018 July 17, 2018 July 19, :00 to 8:00 p.m. 5:00 to 8:00 p.m. 5:00 to 8:00 p.m. Spring Hill Elementary School South Lakes High School Stone Bridge High School 8201 Lewinsville Road South Lakes Drive Hay Road McLean, VA Reston, VA Ashburn, VA At each public hearing, information was provided to attendees in four subject areas: Dulles Toll Road operations, including information provided by the Virginia Department of Transportation about the E-ZPass program; Dulles Corridor improvements; The Metrorail Silver Line project; and The Finance Plan and other financial information relating to funding the operations of and improvements to the Dulles Toll Road and construction of the Metrorail Silver Line project. This information was provided in a series of display boards relating to each subject area, and through Airports Authority staff members assigned to each area. In addition, at each hearing, attendees were invited to prepare and submit written comments on the proposed rate increases 3

30 Dulles Toll Road and on the four specifically posed questions, or to convey their comments verbally to a recorder who then transcribed the comments. The first public hearing, which was held on July 11, 2018, at Spring Hill Elementary School in McLean, was attended by 25 individuals. The second hearing, which was held on July 17 at South Lakes High School in Reston, was attended by 12 individuals. And the third hearing, which was held on July 19 at Stone Bridge High School in Ashburn, was attended by 15 individuals. During the comment period, 181 individuals and 3 organizations submitted a total of 190 comments to the Airports Authority. 3 These comments were submitted in a number of ways: through forms that were filled out and submitted by attendees at the public hearings; as verbal comments provided by hearing attendees and transcribed by a recorder at the hearings; via an on-line comment form available on the MWAA website; and as written comments sent by mail or . A report summarizing the submitted comments is attached as Attachment D. Verbatim copies of all submitted comments, arranged by the name of the submitting organization or individual, are provided in Exhibit B to that summary report. Of the 181 individuals submitting comments who responded to Airports Authority requests for information, (i) 121 stated that they currently use the Dulles Toll Road, (ii) 48 stated they use or plan to use the Metrorail Silver Line, and (iii) 164 provided the location of their residence; of the latter 164 individuals, 135 (82%) were residents of Fairfax County, 24 (15%) resided in Loudoun County, and 5 (3%) indicated they lived elsewhere in the Washington, D.C., region. The 190 submitted comments varied in their content. Some only addressed the subject of the proposed toll rate increases; others only addressed the questions on which the public had been invited to comment (some responding to all four of the questions and others fewer than the four); and still other comments addressed both the subject of the proposed rate increases and one or more of the posed questions. All told, these 190 submitted comments conveyed a total of 363 views on the proposed toll rates (187) and on the four posed questions (176). B. Dulles Corridor Advisory Committee Consideration of Proposed DTR Toll Rate Increases On October 11, the Dulles Corridor Advisory Committee (DCAC) was briefed by Airports Authority staff on the proposed DTR toll rate increases that had been presented during the public hearings, on the public hearings themselves, and on the comments provided during the public 3 The number of submitted comments (190) totaled more than the number of commenting individuals (181) and organizations (3) because 5 of the 181 individuals provided comments on more than one occasion. The 190 submitted comments were considerably fewer than the 584 comments submitted in 2012 when the Airports Authority last adopted increases to DTR toll rates. 4

31 Dulles Toll Road comment period. DCAC also was presented with a proposed action plan by staff consisting of the following actions the Airports Authority would undertake relating to the proposed toll rate increases and in response to the comments provided during the public comment period: Adopt and approve the DTR toll rate increases which had been presented to the public during the public comment period; Reserve an option, to be exercised by the Airports Authority, to modify toll rates at certain ramp locations at the eastern end of the DTR; and Work with the Virginia Department of Transportation (VDOT) and Fairfax and Loudoun Counties to identify and evaluate potential strategies for enhancing mobility in the Dulles Corridor. After discussion, the DCAC adopted the following positions and asked that they be forwarded to the Committees and Board of Directors: Concur with an amendment of the Airports Authority DTR toll rate regulation which will increase toll rates, effective January 1, 2019, to the levels that had been proposed during the public hearing and comment process; Concur with the Airports Authority s reserving an option to modify toll rates at certain DTR ramp locations at the eastern end of the toll road; Concur with the Airports Authority s working in the future with VDOT and Fairfax and Loudoun Counties to enhance mobility in the Dulles Corridor (including in connection with the traffic diversion issues at the DTR s eastern end that had been presented in some of the public comments); Recommend that the Northern Virginia Transportation Authority be included among the entities with which the Airports Authority would work to enhance mobility in the Dulles Corridor; and Recommend that an additional action be taken by the Airports Authority, namely, that the Airports Authority continue working to mitigate future DTR toll rate increases by working with its funding partners to pursue new funding sources for construction of the Metrorail Silver Line project and/or to lower the financing costs of the project. DISCUSSION In the following pages, the 190 comments submitted during the public comment period are summarized, and responses are provided to the principal views they expressed. Part A addresses comments directed at the proposed increases to the DTR toll rates; Part B addresses comments directed at the four questions that had been presented for public input. A. Comments in Response to the Proposed Toll Rate Increases All but three of the 190 submitted comments addressed the subject of the proposed increases in DTR toll rates. The views on this subject fell into the five categories and are summarized in the following five numbered paragraphs. Following each paragraph, a response is provided to the views expressed in the paragraph. 1. The unfairness of the rate increases (23 comments). These comments addressed the unfairness of the rate increases. This unfairness, the comments stated, stemmed from the fact 5

32 Dulles Toll Road that they cause users of the DTR to fund a substantial portion of the cost of constructing the Metrorail Silver Line project, while many individuals who will benefit from the Silver Line project are not being asked to contribute to this construction cost. The unfairness also stemmed, the comments stated, from the disproportionate burden the increased toll rates will place on users of the DTR in that they are funding almost half of the construction cost of the Silver Line project. A significant part of that burden, the comments stated, should be allocated to residents and businesses throughout the entire metropolitan area who will benefit from the Silver Line but are not being asked to pay for its construction. In short, these comments stated that basic fairness requires that a far lower share of the cost of constructing the Silver Line should be paid by users of the DTR, and that a far higher share should be paid by individuals who will directly and substantially benefit from the project once it becomes fully operational. Response. The current allocation of responsibility for funding construction of the Metrorail Silver Line project reflects policy decisions and agreements made at the federal, state and regional levels over the past two decades and well before construction of the project commenced in These decisions and agreements have resulted in the following allocations of funding responsibility: (i) 25% of the cost of the Silver Line project is to be funded by Fairfax County, Loudoun County and the Airports Authority (as operator of Dulles International Airport); (ii) approximately 25% of the cost is to be funded by grants and other forms of funding from the federal government, the Commonwealth of Virginia and the Northern Virginia Transportation Authority; and (iii) the remaining 50% of the cost is to be funded by the proceeds of DTR revenue bonds. In this regard, it should be noted that use of DTR revenues to fund rail mass transit in the Dulles Corridor has been the policy of the Commonwealth of Virginia since the early 1990s, well before the Airports Authority assumed control of the DTR. 4 There are, of course, many individuals who will benefit from the Silver Line project once it is fully operational and who are not contributing to the cost of its construction. But that is true of every major infrastructure project. However, in the case of the Silver Line project, construction funding is coming from a particularly wide range of sources, including sources at all levels of government federal, state and local as well as from the Airports Authority. The federal government has contributed $900 million in grant funds and has provided a low-interest loan of $1.278 billion under its Transportation Infrastructure Financing and Innovation Act (TIFIA) loan program. Overall, the 4 The use of DTR revenues to fund rail transit and other improvements in the Dulles Corridor has been the policy of the Commonwealth since September At that time, the Commonwealth Transportation Board (CTB) directed the development of a "multi-modal transportation program, including rail service, as its transportation objective for the Dulles Corridor, and did so with the understanding that the program should be funded to the extent possible by revenues derived from the Dulles Toll Road. The CTB determined that not less than 15% of the DTR s net surplus revenue would initially be used or set aside for transit-related improvements in the corridor. In September 2001, the CTB directed that, beginning in fiscal year 2003 and continuing thereafter, no less than 85% of the DTR s net surplus revenues be set aside for mass transportation initiatives in the Dulles Corridor. And in February 2005, the CTB approved an increase in the DTR toll rates, effective in May 2005; affirmed that no less than 85% of DTR existing surplus net revenues be dedicated for mass transit and rail in the Dulles Corridor; and directed that the additional toll revenue generated from the May 2005 toll rate increases be dedicated to what later became known as the Metrorail Silver Line project. 6

33 Dulles Toll Road Commonwealth of Virginia has contributed more than $585 million to the project, and the contributions of Fairfax and Loudoun Counties are now estimated to total almost $1.2 billion. In addition, the Northern Virginia Transportation Authority has contributed $60 million. In addition, the owners of real property in the Dulles Corridor whose property values are likely to increase by virtue of the Silver Line project are contributing to the project s construction. Fairfax County is funding the majority of its contribution to the project (now estimated at approximately $916 million) from tax revenues generated by a special tax levied on certain commercial and industrial property in the county. The county established a special tax district for Phase 1 of the Silver Line project in 2004, and a special tax district for Phase 2 in December Loudoun County also has established two similar tax districts which will assess a special tax on property owners to help fund the county s contribution to the Silver Line project (now estimated at approximately $273 million). 2. The impacts of the rate increases upon the commenting individual (109 comments). This category of comments addressed impacts that the proposed toll rate increases would have upon the individuals making the comments. A subset of these comments pointed to the high cost to use the DTR that the rate increases would produce. Several of these commenters mentioned they were retired on fixed income. Others stated that the increased tolls would make the toll road unaffordable, and require them to use other roadways. Others said that proposed rate increases would make the DTR a roadway only available to the wealthy. A second subset of comments in this category were authored by residents of areas north of the eastern end of the DTR who stated that their local streets are experiencing substantial non-local, cut-through traffic. These comments conveyed the view that the toll which is charged at the mainline toll plaza is a cause of this cut-through traffic in that the toll is a disincentive for drivers traveling between Interstate 495 (or Route 123) and Route 7 to use the DTR. Instead of using the toll road, these drivers, the commenters indicated, are diverting to local streets, and are causing these streets to carry a volume of traffic they are not designed to handle. Response. The Airports Authority recognizes the impacts that toll rate increases can have on individual users of the DTR. However, under its longstanding agreements with the Commonwealth of Virginia, the Airports Authority is obligated over time to establish toll rates on the DTR at the levels necessary to finance construction of the Metrorail Silver Line project and other transportation improvements in the Dulles Corridor. The toll rate increases currently proposed, like those adopted in 2009 and 2012, are designed to fulfill those obligations by producing toll road revenues in future years that are necessary to meet debt service requirements on the $1.3 billion in outstanding DTR revenue bonds. With respect to the comments which spoke to cut-through traffic on residential streets north of the DTR, the Airports Authority does not believe that a causal relationship between the proposed toll rate increases (or the toll rate at the mainline plaza), and the diversion of traffic to these neighborhood streets has yet to be established. At the same time, the Airports Authority recognizes the concerns underlying these comments. Staff is therefore recommending that the Airports Authority work with the VDOT and Fairfax County (i) to study that possible relationship between DTR toll rates and the diversion of traffic described in these comments, and, if a relationship is determined to 7

34 Dulles Toll Road exist that is causing a significant level of diversion, and (ii) to identify and evaluate strategies that may mitigate the level of diversion. In a related recommendation, staff is recommending that, in taking action at this time on the proposed toll rate increases, the Airports Authority reserve an option to adjust toll rates at certain DTR locations at a later date i.e., an option to reduce the toll rate at one or more of the currently tolled ramps at the DTR s Springhill Road and Route 7 interchanges, and to establish a toll rate at one or more of the ramps at the Route 7 interchange that are currently not tolled. 3. Alternative sources of funding in lieu of the rate increases (28 comments). These comments conveyed the view that the Airports Authority and its Silver Line partners should find additional funding sources to fund the Silver Line construction which would enable the proposed toll rate increases to be eliminated or lowered. Five additional funding sources were identified by comments. One was the Washington Metropolitan Area Transit Authority (WMATA) which, the comments stated, should assess a fee on present and future users of the Silver Line that would be used to help pay for its construction. The second source was Fairfax and Loudoun Counties which, the commenters thought, should tax property owners, businesses and others with financial interests along the Dulles Corridor that will be significantly advanced by the Silver Line. The third source was airlines at Dulles International Airport which, the comments stated, will financially benefit from the Silver Line and the Metrorail station at the airport. The fourth source was the Dulles Airport Access Highway and the revenue that could be raised by tolling the highway. Several comments recommended making the highway a high-occupancy toll lane facility, like the express lanes on Interstate 495, and others stated the view that it was only fair that drivers using the airport be assessed tolls. The final source was additional funding from the Commonwealth of Virginia via a regional tax or an increase in the gas tax applicable to the region. Response. As already noted, the current allocation of responsibility for funding construction of the Silver Line project reflects policy decisions and agreements made at the federal, state and regional level over many years and well before construction of the project began. Included among those policy decisions, for example, was a policy adopted in 2000 by the WMATA Board of Directors that requires the local jurisdiction in which an extension of the Metrorail system is to be built to secure all capital funding for the extension project. This policy meant that WMATA would not fund any part of the Silver Line construction cost and that all sources of the project s funding would need to be developed by the Commonwealth of Virginia and its Northern Virginia local jurisdictions. Included among these agreements, for example, was the 2007 agreement among Fairfax County, Loudoun County and the Airports Authority to pay for 25% of the total cost of constructing the Silver Line project. Notwithstanding these longstanding policy decisions and agreements, the Airports Authority and its funding partners have consistently recognized the need to minimize, to the maximum extent possible, toll rate increases on the DTR by pursuing, at both the federal and state level, additional sources of funds to construct the Metrorail Silver Line project. These efforts have produced following new funding sources since 2008: $450 million in grant funding from the Commonwealth of Virginia; $60 million in grant funding from the Northern Virginia Transportation Authority; and 8

35 Dulles Toll Road $1.278 billion in low-interest loan funding from the federal Department of Transportation under its TIFIA loan program. The Airports Authority and its funding partners have no plans to discontinue their search for new sources of funds that would help minimize the need for future DTR toll rate increases. A number of specific alternative sources of funding for the Silver Line s construction were identified in the comments. These sources are identified below and a response to each is provided. Users of the Dulles Airport Access Highway and airlines and other businesses operating at Dulles Airport. Response. As part of decisions and agreements made years ago, the Airports Authority itself will fund 4.1% of the total capital cost of the Silver Line project (now estimated at approximately $233 million). The Airports Authority has determined to provide this funding from net revenues generated from the operation of the airports and from passenger facility charges that may be imposed under federal law upon passengers using the airports operated by the Airports Authority. Thus, users of the airports, including airlines and passengers, are making substantial contributions toward the Silver Line project cost. In addition, the Airports Authority has made a significant amount of its property (e.g., along the Dulles Access Highway and the Dulles Connector Road, and within Dulles Airport itself) available to the Silver Line project at no cost. Fairfax and Loudoun Counties and property owners, businesses and others within the counties having financial interests along the Dulles Corridor. Response. As earlier noted, both Fairfax and Loudoun Counties are contributing substantially to the Silver Line s construction costs, and are taxing the owners of commercial properties within the special tax districts the counties have established along the route of the Silver Line. Moreover, both counties have assumed the cost of constructing five parking garages that will service five of the six Phase 2 Silver Line stations. In addition, the counties will, over the years following the opening of the Silver Line, be contributing annually to the Silver Line s operating deficits. The counties and their taxpayers have played a major role in funding the Silver Line. WMATA and current and future users of the Metrorail system. Response. As noted, it has been WMATA s policy since 2000 that construction of extensions to the regional Metrorail system (like the Silver Line extension) will not be funded by WMATA or by users of the Metrorail system, but rather by the local jurisdictions in which the extension is built. On the other hand, WMATA policy is that it will assume responsibility to operate and maintain a Metrorail extension once it is completed and made a part of the regional Metrorail system, and will assume the entirety of the annual costs to perform that operating and maintaining responsibility. This is the case here. Following the completion of Phase 1 of the Silver Line and its adoption into the Metrorail system, WMATA has operated and maintained the rail line and has covered all of the resulting costs. 9

36 Dulles Toll Road And WMATA will do the same following completion of Phase 2 of the Silver Line. 4. General opposition to rate increase (20 comments). These comments expressed opposition to the proposed toll rate increase and conveyed no particular views as to the reason for their opposition. Response. A response to these general opposition comments cannot be made, other than to incorporate the responses in this paper to comments expressing particular reasons for opposing the proposed increases in toll rates. 5. General support of rate increases (7 comments). These comments agreed with the rate increases as proposed. Response. Not applicable. B. Comments in Response to the Specifically Posed Questions Of the 190 submitted comments, 176 addressed one or more of the four specific questions on which the public was asked to comment. The views that were conveyed by these comments are summarized below for each of the four questions, and a response to the views, which is more in the form of an observation, is then given. 1. Should the proposed increase of $1.25 in the cost of a typical Dulles Toll Road trip be allocated as proposed between the mainline toll plaza and ramps (i.e., a 50-cent increase at the ramps and a 75-cent increase at the mainline plaza) or should it be allocated in a different manner between the ramps and mainline plaza? Fifty-five submitted comments addressed this question. Seven of these comments agreed with the allocation between the mainline plaza and ramp tolls reflected in the proposed rate increases. Forty-eight comments disagreed with that allocation. Twenty-six of these 48 comments favored a lower-than-proposed rate or no rate increase at all at the mainline plaza, while applying the proposed rate at all ramps or at certain ramps such as Spring Hill Road (which some commenters stated should have a toll equal to the toll at the mainline plaza). Thirteen of the comments favored rates both at the mainline plaza and at all (or certain) ramps that varied from the proposed rates. Seven other comments indicated disapproval of the proposed allocation because they opposed any rate increase at any toll plazas. And the remaining two comments favored applying the proposed increase rate at the mainline plaza, but not increasing the ramp toll rate at all. Response. Less than 30% (55) of the 190 submitted comments addressed this question. These comments varied considerably and did not convey a single or predominant view. Approximately half of the comments (26) supported an allocation of the toll rate increases that would reduce or eliminate entirely the $0.75 rate increase at the mainline toll plaza, and would either apply the $0.50 increase at the tolled ramps or add to that increase at certain ramps. Approximately a quarter of the comments (13) favored rates at the mainline plaza and the ramps which deviated from the proposed rates. Two comments supported the proposed rate increase at the mainline plaza but called for no increase at the tolled ramps. 10

37 Dulles Toll Road 2. At a future date to be determined, should the Dulles Toll Road s toll plaza lanes that allow customers to pay in cash be converted to E-ZPass only (or open road tolling), similar to newer toll facilities? Forty-four comments addressed this question and expressed the following views. a. No conversion of cash lanes to E-ZPass only lanes (12 comments). These comments opposed any conversion of cash lanes to the E-ZPass system and favored retaining the current cash lanes at the mainline toll plaza and the ramps. b. Complete conversion of cash lanes to E-ZPass only lanes (19 comments). These comments favored converting all cash lanes at the mainline toll plaza and ramps to E-ZPass only lanes, thus moving the DTR to an all-electronic-toll facility. These comments noted that this system is widely used in the region, and would lead to greater efficiencies on the DTR, both for drivers and for the Airports Authority which could avoid the personnel costs associated with the cash lanes. c. Partial conversion of cash lanes to E-ZPass only lanes (13 comments). These comments favored converting some but not all cash lanes to E-ZPass only lanes, and they recommended that at least one lane at the mainline plaza and ramps should continue to allow for cash and/or credit card transactions. Response. Only 23% (44) of the 190 submitted comments addressed this question. Almost 75% of these comments (32) supported converting cash lanes to EZ-pass only lanes, though 13 of the comments recommended that at least one cash lane be retained at the mainline toll plaza and the ramps. Slightly more than a quarter of the comments (12) did not favor any conversion of cash lanes to EZ-pass only lanes. 3. At a future date to be determined, should credit cards be accepted in certain Dulles Toll Road toll plaza lanes, similar to the Dulles Greenway and other toll facilities? Thirty-eight comments addressed this question and presented the following views. a. Support the use of credit cards (31 comments). These comments generally favored providing a credit card payment option in some DTR toll lanes without distinguishing between lanes at the mainline toll plaza or at the ramps. The comments saw this as a good operational change which would benefit DTR users by providing another payment option and, in addition, would enable a reduction in or elimination of number of personnel required to staff toll booths. Twenty of these comments supported providing a credit card option at the mainline plaza and all tolled ramps, and removing entirely the pay-by-cash option. The other eleven comments indicated it would be advisable to retain at least one cash lane at all toll locations to allow a method of payment other than E-Z Pass for those who do not have a credit card or E-ZPass. A few comments went further to express that other forms of payment should be explored, and suggested the use of Apple Pay, Google Pay and debit cards. b. Do not support use of credit cards (7 comments). These comments did not support, and recommended against, the use of credit cards, with some commenters 11

38 Dulles Toll Road stating the fear of identity theft and the fact that not all users of the DTR have access to credit cards. Response. Twenty percent (38) of the 190 submitted comments addressed this third question. Over 80% (31) of the comments favored providing DTR users with the opportunity to pay tolls by credit card. Two-thirds (20) of those comments also favored eliminating the opportunity for users to pay tolls by cash, while the remainder (11) favored retaining the pay-by-cash opportunity. 4. Should any other operational improvements be made to the Dulles Toll Road? Thirty-nine comments addressed this open-ended question. These comments presented the following views. a. Mitigate avoidance of mainline plaza (11 comments). These comments addressed the use of neighborhood streets north of the DTR in McLean by non-local, cutthrough vehicle traffic. The comments expressed the view that this use of neighborhood streets, at least in significant part, is by drivers who are traveling in both directions between Interstate 495 (or Route 123) and Route 7 (and areas west of Route 7), and are using local streets in between 495 and Route 7 to avoid paying a toll at the DTR mainline toll plaza. For instance, some of these comments stated the view that vehicles traveling southbound on 495 and heading to destinations west of Route 7 avoid the DTR, and the toll at the mainline toll plaza, by exiting 495 prior to the toll road, use neighborhood streets to reach Route 7, and then take the Route 7 entrance ramp to westbound DTR (where no toll is charged). Other comments conveyed the view that drivers traveling eastbound on the DTR avoid the mainline toll plaza and its toll (i) by exiting the toll road onto Route 7 westbound (where no toll is charged) and eventually entering local streets and proceeding east to connect to 495 or Route 123, or (ii) by exiting the DTR at Spring Hill Road (paying the exit ramp toll which is less than the mainline plaza toll), then turning north onto Spring Hill and eventually using local streets to travel east to 495 or Route 123. The comments conveyed the general view that the toll assessed at the DTR mainline toll plaza serves as a disincentive for drivers to use the toll road, and leads drivers instead to use local streets to reach their destination. To address this perceived problem, eight of the comments recommended the creation of a dedicated lane along the DTR for trips between 495 and Route 7 which would not be tolled at all or would have a toll rate substantially less than the mainline plaza toll rate. 5 The comments stated that this toll-free or toll-reduced dedicated lane would encourage drivers to use the DTR to travel back and forth between 495 (or Route 123) and Route 7, rather than using local streets for this short-hop trip. Five of these submitted comments described an alternative recommendation which would relocate the DTR mainline toll plaza to a new location west of Route 7. Moving the mainline toll plaza west of Route 7, the comments suggested, would 5 Comments suggesting a dedicated lane did not specify if this lane was for eastbound drivers or westbound drivers, or both. 12

39 Dulles Toll Road reduce the incentive for drivers to avoid the DTR and the mainline plaza toll and, instead, to cut-through residential streets north of the toll road. One comment suggested tolling all entry and exit ramps for Route 7. Response. These 11 comments paralleled the segment of comments earlier addressed (see pages 7-8). These comments, and the views they conveyed, are part of the basis for the second and third recommendations outlined at the outset of this paper i.e., (i) the reservation of an option for the Board, before the end of calendar year 2020, to reduce the toll rate at certain tolled ramps at the eastern end of the DTR, and to establish a toll rate (not more than $1.50) at certain ramps at that end of the toll road that are currently not tolled; and (ii) an evaluation by the Airports Authority, working with VDOT and Fairfax County, of two questions: whether there is any significant relationship between toll rates on the DTR and the use of neighborhood streets north of the toll road between Interstate 495 and Route 7 by non-local, cut-through traffic; and, in the event such a relationship is determined to exist that is resulting in significant traffic diversion, whether that diversion would be meaningfully diminished by the Airports Authority s exercise of the reserved option regarding ramp rates at the toll road s eastern end. b. Implement distance-based tolling (7 comments). These comments stated that a tolling system which ties the amount of tolls assessed DTR drivers to the distance they travel on the toll road would be more equitable than the current toll rate system, and they recommended its adoption at some point in the future. Response. The DTR was designed as a toll facility where users would pay a fixed toll as they passed certain toll collection points, rather than paying a toll that varied based upon the distance travelled. Advances in tolling technology may enable alternate pricing methodologies to be considered for use on the DTR in the future. c. Miscellaneous improvements (14 comments). These comments included a variety of suggested improvements for the DTR, including repaving the road, having more clearly marked lanes, adding a third eastbound lane on the DTR (Route 267) from the mainline toll plaza all the way to Route 123, improving the eastbound exit ramp from DTR (Route 267) to Route 123 east, improving the eastbound exit ramp from DTR (Route 267) to 495 north, studying the assessment of one-way only tolls (i.e., assessing tolls only on vehicles traveling eastward or westward), allowing HOV vehicles to use the DTR toll-free, and adding another HOV lane in each direction. Response. The Airports Authority has established a Renewal and Placement Program and a Capital Improvement Program to provide funds to preserve and improve the DTR. Some of the miscellaneous improvements identified in these comments may be considered in the future by the Airports Authority in developing the components of these programs. d. No improvements needed (7 comments). These comments stated a preference for no operational improvements on the DTR, either because the commenters felt the 13

40 Dulles Toll Road CONCLUSION toll road was fine as-is or because they believed making no improvements would mean lower costs which would mean lower rate increases. Response. Not applicable. One-hundred and ninety public comments were submitted on the proposed DTR toll rate increases and the four specific questions on which the public was invited to comments. These comments were generally quite thoughtful and well conveyed. They focused on a number of issues presented by the proposed toll rate increases, and provided a range of reasonable views on the increases, as well as on the four questions. The vast majority of the comments opposed the proposed rate increases and argued, for a variety of reasons, that the increases, in whole or in part, should not be adopted. These comments opposing the proposed toll rate increases are, however, in contrast to the multiple public policies and decisions regarding the financing of a rail line in the Dulles Corridor dating back to the early 1990s. The comments also stand in contrast to the agreements made over a decade ago between the Airports Authority and the Commonwealth of Virginia, under which the Airports Authority would assume responsibility (i) to operate and maintain the Dulles Toll Road over a 50-year period, (ii) to construct the Metrorail Silver Line project, (iii) to finance a part of the cost of this construction using revenues from the DTR, and (iv) to accomplish this financing by setting toll rates on the DTR at the levels required to produce those revenues. In a major sense, therefore, the comments are directed more to the multiple policy determinations made years ago than to the present decision whether to increase DTR toll rates. In staff s view, the comments as a whole do not provide a basis for the Airports Authority to decline to increase DTR toll rates to the levels now required to meet its obligations to use DTR revenues to help finance construction of the Silver Line project and to ensure that DTR revenues are sufficient each year to meet the debt service requirements associated with all outstanding DTR revenue bonds (now at the approximate level of $1.3 billion). At the same time, the comments raised traffic diversion and related issues which, in staff s view, warrant further consideration by the Airports Authority, and this further consideration is included in staff s recommendations. Staff, therefore, recommends that the Dulles Corridor and Finance Committees approve, and that they recommend to the Board of Directors that it take, the following actions: 1. Adopt an amendment to the Metropolitan Washington Airports Authority Regulations (shown in Attachment A) which establishes new toll rates for the Dulles Toll Road, including for two-axle vehicles a toll rate of $3.50 at the DTR mainline toll plaza and a rate of $1.50 at the DTR tolled ramps, effective January 1, 2019; 2. Reserve an option, which may be exercised by the Board of Directors no later than the end of calendar year 2020, to reduce the toll rate (from the new rate of $1.50) at one or more of the currently tolled ramp plazas at the DTR s Springhill Road and Route 7 14

41 Dulles Toll Road interchanges, and to establish a toll rate (at $1.50 or less) at one or more of the ramps at the Route 7 interchange that are currently not tolled; 3. Instruct staff to work with the Virginia Department of Transportation, Fairfax County, Loudoun County and, as appropriate, the Northern Virginia Transportation Authority to identify and evaluate (i) potential new strategies and initiatives for enhancing mobility in the Dulles Corridor (including the potential toll rate actions described above in paragraph 2), and (ii) sources of funding for any such strategies and initiatives; and 4. Instruct staff to continue the Airports Authority s ongoing efforts to mitigate future DTR toll rate increases by working with its funding partners to pursue new sources of funding for construction and/or to lower the financing costs of the Metrorail Silver Line project. Prepared by Attachments Office of General Counsel Office of Finance November

42 ATTACHMENT A Dulles Toll Road

43 Proposed Amendment to Part 10 (Dulles Toll Road) of the Metropolitan Washington Airports Authority Regulations, Increasing Toll Rates on the Dulles Toll Road, effective January 1, 2019 PART 10 - DULLES TOLL ROAD (Effective January 1, 2019) Tolls for Use of the Dulles Toll Road. (1) The tolls applicable to the Dulles Toll Road (also known as the Omer L. Hirst Adelard L. Brault Expressway) shall be as follows: Vehicle Class Main Line Plaza Tolls Ramps 2-axle $3.25 $ axle $6.50 $ axle $7.75 $ axle $9.00 $ or more axles $10.25 $4.50 (2) Except for persons permitted free use of toll facilities under Virginia Code , it shall be unlawful for any person operating a vehicle to use the Dulles Toll Road without payment of the tolls set forth in this section. Note: In Resolution 18-, adopted November 14, 2018, the Airports Authority reserved the option, which may be exercised no later than December 31, 2020, to reduce the toll rate from $1.50 at one or more of the currently tolled entrance/exit ramps at the Dulles Toll Road s Springhill Road and Route 7 interchanges, and to establish a toll rate at $1.50 or less at one or more of the entrance/exit ramps at the Dulles Toll Road s Route 7 interchange that are currently not tolled. Under Resolution 18-, in the event this option is not exercised by the Airports Authority before the end of 2020, the option shall automatically expire and may not thereafter be exercised Penalty. Persons violating Section 10.1 shall be liable for a civil penalty, consistent with Virginia Code , as follows: (1) for any violation not addressed in paragraphs (2) through (4) of this section, a penalty of $50; (2) for the first violation occurring after, and within 12 months of, the violation described in paragraph (1) above, a penalty of $100;

44 (3) for the first violation occurring after, and within 24 months of, the violation described in paragraph (2) above, a penalty of $250; and (4) for each violation occurring after the violation described in paragraph (3), and within 36 months of the violation described in paragraph (2) above, a penalty of $500; provided, that, for a first conviction of a person violating Section 10.1, the total amount for the first conviction shall not exceed $2,200, including civil penalties, unpaid tolls and administrative fees, regardless of the total number of violations the person is convicted of on the date of that first conviction Unpaid Tolls and Administrative Fee. In addition to the penalty described in Section 10.2, and subject to the limitation in that section pertaining to a person s first conviction for violating Section 10.1, persons violating Section 10.1 shall be liable, in connection with each violation, for the unpaid toll and an administrative fee designed to recover the expense of collecting the unpaid toll.

45 ATTACHMENT B Dulles Toll Road

46 Dulles Toll Road Proposed Resolution Amending the Metropolitan Washington Airports Authority Regulations Which Establish Toll Rates for the Dulles Toll Road and Related Matters WHEREAS, The Metropolitan Washington Airports Authority (Airports Authority) operates the Dulles Toll Road (DTR) pursuant to a Permit and Operating Agreement (POA), dated as of December 29, 2006, between the Virginia Department of Transportation (VDOT) and the Airports Authority; WHEREAS, Under the terms of the POA, responsibility to establish and adjust toll rates for use of the DTR lies solely with the Airports Authority; WHEREAS, Under the terms of the POA, the Airports Authority is obligated to finance and construct the Dulles Corridor Metrorail Project (Project), an extension of the Washington, D.C., regional Metrorail system running from the West Falls Church Metrorail station on Interstate 66 in Fairfax County, along the Dulles Connector Road and the Dulles Airport Access Highway, through the Tysons Corner area of Fairfax County, to and through Washington Dulles International Airport (Dulles Airport), to a western terminus at Route 772/Ashburn in Loudoun County; WHEREAS, The Project is being constructed in two phases, with Phase 1 running from Interstate 66 to Wiehle Avenue in Reston, Virginia, and Phase 2 running from Wiehle Avenue through Dulles Airport to Route 772 in Loudoun County; WHEREAS, In 2014, construction of Phase 1 of the Project was completed in 2014 and revenue operations on this completed phase of the Project were initiated by the Washington Metropolitan Area Transportation Authority (WMATA); WHEREAS, Construction of Phase 2 of the Project is underway and substantial completion is projected for latter part of 2019; WHEREAS, Pursuant to a plan for the financing of the Project and capital improvements to the DTR and to its rights and obligations under the POA, in November 2009 the Airports Authority established three sets of new toll rates for the DTR, with the different sets becoming effective on January 1 of 2010, 2011 and 2012; and, in November 2014, the Airports Authority established two sets of new toll rates, with the different sets becoming effective on January 1 of 2013 and 2014; WHEREAS, Pursuant to the plan of finance for Project and DTR improvements and to its rights and obligations under the POA, the Airports Authority has issued approximately $1.3 billion in Dulles Toll Road revenue bonds debt secured entirely by revenues generated by the toll road to help fund the construction of the Project and capital improvements to the DTR; WHEREAS, In June 2018, staff presented a set of potential new DTR toll rates, to become effective on January 1, 2019, to the Dulles Corridor and Finance Committees

47 Dulles Toll Road (Committees), along with a recommendation that the Committees authorize staff to initiate the process for amending Part 10 of the Airports Authority Regulations (Regulations) which part establishes toll rates for the DTR, and the Committees provided the authorization; WHEREAS, On June 22, 2018, notice was published in The Washington Post (i) of the proposed amendment to Part 10 of the Regulations, the proposed new DTR toll rates and the effective date of these rates, (ii) of the dates, times and locations of three public hearings on the proposed amendment, and (iii) of the opportunities available to members of the public to submit comments on the proposed amendment during a formal 30-day comment period. The notice also stated four specific questions regarding the proposed toll rate and certain potential operational changes to the DTR (Questions), and invited the public to present comments on them; WHEREAS, Public hearings on the proposed amendment were conducted on July 11, 2018, in McLean, Virginia, on July 17, 2018, in Reston, Virginia and on July 19, 2018, in Ashburn, Virginia; WHEREAS, Over approximately 52 members of the public attended these hearings, and 190 comments on the proposed amendment and the Questions were submitted by individuals and organizations during the comment period; WHEREAS, A report summarizing the public comments (as well as containing the comments themselves) (Report) and a separate staff paper responding to the comments have been submitted to the Committees and the Board of Directors; WHEREAS, In October 2018, staff presented to the Dulles Corridor Advisory Committee (DCAC) a summary of the comments made during the 30-day public comment period on the proposed new DTR toll rates and the Questions, and a proposed series of actions that staff intended to later submit to the Committees and the Board of Directors for consideration, including adoption of the proposed amendment to Part 10 of the Regulations; and the DCAC concurred in the staff s proposed series of actions and recommended additional actions; WHEREAS, At its meeting on November 14, 2018, the Committees received and discussed the Report, the staff paper, the public comments, and the recommendations and views of the DCAC adopted during its October 2018 meeting; concluded that it is necessary and appropriate to establish the proposed increased toll rates for the DTR; and voted to recommend to the Board that it (i) approve the proposed increases to the DTR toll rates that had been the subject of the public hearing and comment process and adopt the proposed amendment to Part 10 of the Regulations which would formally establish the new rates, effective January 1, 2019 (as provided in the first resolved paragraph of this Resolution), (ii) reserve an option to the Airports Authority, to be exercised by the Board no later than the end of calendar year 2020, regarding adjustments to toll rates at the entrance/exit ramps at certain DTR interchanges (as provided in the second resolved paragraph of this Resolution), and (iii) that it instruct staff to undertake certain actions in cooperation with the Virginia Department of Transportation, Fairfax County, Loudoun County and the Northern Virginia Transportation Authority (as provided in the third and fourth resolved paragraphs of this Resolution); WHEREAS, After considering the Report, the staff paper, the public comments, the recommendations and views of the DCAC, and the recommendations of the Committees, the

48 Dulles Toll Road Board has determined that it is necessary and appropriate and in the best interests of the Airports Authority to authorize and take the following actions; now, therefore, be it RESOLVED, That Part 10 (Dulles Toll Road) of the Metropolitan Washington Airports Regulations shall be and is hereby amended, effective January 1, 2019, to read as follows: PART 10 - DULLES TOLL ROAD (Effective January 1, 2019) Tolls for Use of the Dulles Toll Road. (1) The tolls applicable to the Dulles Toll Road (also known as the Omer L. Hirst Adelard L. Brault Expressway) shall be as follows: Vehicle Class Main Line Plaza Tolls Ramps 2-axle $3.25 $ axle $6.50 $ axle $7.75 $ axle $9.00 $ or more axles $10.25 $4.50 (2) Except for persons permitted free use of toll facilities under Virginia Code , it shall be unlawful for any person operating a vehicle to use the Dulles Toll Road without payment of the tolls set forth in this section. Note: In Resolution 18-, adopted November 14, 2018, the Airports Authority reserved the option, which may be exercised no later than December 31, 2020, to reduce the toll rate from $1.50 at one or more of the currently tolled entrance/exit ramps at the Dulles Toll Road s Springhill Road and Route 7 interchanges, and to establish a toll rate at $1.50 or less at one or more of the entrance/exit ramps at the Dulles Toll Road s Route 7 interchange that are currently not tolled. Under Resolution 18-, in the event this option is not exercised by the Airports Authority before the end of 2020, the option shall automatically expire and may not thereafter be exercised Penalty. Persons violating Section 10.1 shall be liable for a civil penalty, consistent with Virginia Code , as follows: (1) for any violation not addressed in paragraphs (2) through (4) of this section, a penalty of $50; (2) for the first violation occurring after, and within 12 months of, the violation described in paragraph (1) above, a penalty of $100;

49 Dulles Toll Road (3) for the first violation occurring after, and within 24 months of, the violation described in paragraph (2) above, a penalty of $250; and (4) for each violation occurring after the violation described in paragraph (3), and within 36 months of the violation described in paragraph (2) above, a penalty of $500; provided, that, for a first conviction of a person violating Section 10.1, the total amount for the first conviction shall not exceed $2,200, including civil penalties, unpaid tolls and administrative fees, regardless of the total number of violations the person is convicted of on the date of that first conviction Unpaid Tolls and Administrative Fee. In addition to the penalty described in Section 10.2, and subject to the limitation in that section pertaining to a person s first conviction for violating Section 10.1, persons violating Section 10.1 shall be liable, in connection with each violation, for the unpaid toll and an administrative fee designed to recover the expense of collecting the unpaid toll; 2. That an option shall be and is hereby reserved, which may be exercised by the Board of Directors no later than the close of calendar year 2020, for the Airports Authority to reduce the toll rate (from $1.50) at one or more of the currently tolled entrance/exit ramps at the Dulles Toll Road s Springhill Road and Route 7 interchanges, and to establish a toll rate (at $1.50 or less) at one or more of the entrance/exit ramps at the Route 7 interchange that are currently not tolled. In the event this option is not exercised by the Airports Authority before the end of calendar year 2020, the option shall automatically expire and may not thereafter be exercised; 3. That Airports Authority staff are hereby directed to work with the Virginia Department of Transportation, Fairfax County, Loudoun County and, as appropriate, the Northern Virginia Transportation Authority to identify and evaluate (i) potential new strategies and initiatives for enhancing mobility in the Dulles Corridor (including the potential toll rate actions described above in resolved paragraph 2), and (ii) sources of funding for any such strategies and initiatives; 4. That Airports Authority staff are hereby directed to continue the Airports Authority s ongoing efforts to mitigate future Dulles Toll Road toll rate increases by working with its funding partners to pursue new sources of funding for construction and/or to lower the financing costs of the Metrorail Silver Line Project; and 5. That this Resolution shall be effective upon its adoption. For consideration by the Dulles Corridor and Finance Committees and the Board of Directors on November 14, 2018

50 ATTACHMENT C Dulles Toll Road

51

52

53 ATTACHMENT D Dulles Toll Road

54 DULLES TOLL ROAD Proposed Toll Rate Increases Report on Public Comments October 2018

55 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments October 2018 Contents 1. INTRODUCTION SUMMARY OF PUBLIC COMMENTS EXHIBITS... 9 i

56 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments 1. INTRODUCTION At their June 20, 2018, meeting, the Dulles Corridor and Finance Committees of the Airports Authority s Board of Directors authorized the Authority staff to initiate the process for amending the Airports Authority regulation which establishes the toll rates for the Dulles Toll Road (DTR). The Committees also authorized staff, during this process, to conduct public hearings and seek public comment on a proposed set of toll rate increases (shown below in Table 1), as well as on four specific questions relating to operations of the DTR (set out below in Table 2). TABLE 1: Proposed Toll Rate Increases Tolled Ramp Main Line Toll Plaza Entrances/Exits Vehicle Class From To From To 2-axle $2.50 $3.25 $1.00 $ axle $5.00 $6.50 $2.00 $ axle $6.25 $7.75 $2.50 $ axle $7.50 $9.00 $3.00 $ or more axles $8.75 $10.25 $3.50 $4.50 TABLE 2: Questions Presented for Public Input 1. Should the proposed increase of $1.25 in the cost of a typical Dulles Toll Road trip be allocated as proposed between the mainline toll plaza and ramps (i.e., a 50-cent increase at the ramp plazas and a 75-cent increase at the mainline plaza) or should it be allocated in a different manner between the ramp and mainline plazas? 2. At a future date to be determined, should the Dulles Toll Road s toll plaza lanes that allow customers to pay in cash be converted to E-ZPass only (or open road tolling), similar to newer toll facilities? 3. At a future date to be determined, should credit cards be accepted in certain Dulles Toll Road toll plaza lanes, similar to the Dulles Greenway and other toll facilities? 4. Should any other operational improvements be made to the Dulles Toll Road? On June 25, 2018, the Airports Authority published a notice in The Washington Post (attached as Exhibit A) that, among other things, described the proposed DTR toll rate increases, stated the four specific operational questions on which the Airports Authority was seeking public input, provided information regarding three public hearings that would be held on the proposed toll rate 1

57 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments increases, explained how information on the proposed increases could be obtained and how written comments on the proposed increases could be submitted outside of the public hearings, stated that the period for the submission of comments would run from July 2, 2018, through August 3, 2018, and invited members of the public to submit comments on the toll rate increases and the four posed questions during the comment period. In addition to the notice in The Washington Post, notice of these three public hearings was provided in a variety of ways: print and/or digital banner advertisements in the Fairfax Times, Loudoun Now, Loudoun Times-Mirror and Washington Informer. Spanish language advertisements were placed in the Washington Hispanic and El Tiempo Latino. Public hearing notices were posted on the Airports Authority s website ( reminders were also posted regularly to the Airports Authority s Twitter account which were retweeted by media outlets; and blasts were distributed to the Authority s customer and stakeholder distribution lists. The notice published in The Washington Post stated that translators would be available at each public hearing to assist Spanish-speaking attendees. In addition, the notice stated that individuals wishing other translation services for additional languages should contact the Authority at a specific number at least 72-hours in advance of the hearing. The notices also indicated that American Sign Language interpreters would be available for the hearing impaired at each hearing. Public hearings were conducted on the dates and locations shown in Table 3. TABLE 3: Public Hearing Dates and Locations July 11, 2018 July 17, 2018 July 19, :00 to 8:00 p.m. 5:00 to 8:00 p.m. 5:00 to 8:00 p.m. Spring Hill Elementary School South Lakes High School Stone Bridge High School 8201 Lewinsville Road South Lakes Drive Hay Road McLean, VA Reston, VA Ashburn, VA At each public hearing, information was provided to attendees in four subject areas: Dulles Toll Road Operations, including information provided by the Virginia Department of Transportation about the E-ZPass program; Dulles Corridor Improvements; The Metrorail Silver Line Project; and The Finance Plan and other financial information relating to funding the operations of and improvements to the Dulles Toll Road and construction of Metrorail Silver Line project. This information was provided in a series of boards relating to each subject area, and through Authority staff members assigned to each area. In addition, at each hearing, attendees were 2

58 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments invited to prepare and submit written comments on the proposed rate increases and on the four specifically posed questions, or to convey their comments verbally to a recorder who then transcribed the comments. The first public hearing, which was held on July 11, 2018, at Spring Hill Elementary School in McLean, was attended by 25 individuals. The second hearing, which was held on July 17 at South Lakes High School in Reston, was attended by 12 individuals. And the third hearing, which was held on July 19 at Stone Bridge High School in Ashburn, was attended by 15 individuals. During the comment period, 181 individuals and 3 organizations submitted a total of 190 comments to the Authority 1. These comments were submitted in a number of ways: through forms that were filled out and submitted by attendees at the public hearings; as verbal comments provided by hearing attendees and transcribed by a recorder at the hearings; via an on-line comment form available on the MWAA website; and as written comments sent by mail or . Verbatim copies of all submitted comments are provided in Exhibit B in two parts. Part 1 includes all comments submitted by organizations. Part 2 includes all comments submitted by individuals, arranged alphabetically by last name. Of the 181 individuals submitting comments who responded to requests for information made by the Authority, (i) 121 stated that they currently use the Dulles Toll Road, (ii) 48 stated they plan to use the Metrorail Silver Line, and (iii) 164 provided the location of their residence; of these latter 164 individuals, 135 were residents of Fairfax County, 24 resided in Loudoun County, and 5 lived elsewhere in the Washington, D.C., region. The 190 submitted comments varied in their content. Some only addressed the subject of the proposed toll rate increases; others only addressed the subject of the posed questions regarding DTR operations, some responding to all four of the questions and others fewer than the four; and still other comments addressed both the subject of the proposed rate increases and one or more of the posed questions. All told, these 190 submitted comments conveyed a total of 363 views on the proposed toll rates (187) and on the four posed questions (176). 1 Five of the 181 individuals provided comments on more than one occasion. 3

59 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments 2. SUMMARY OF PUBLIC COMMENTS A. Comments in Response to the Proposed Toll Rate Increases All but three of the 190 submitted comments addressed the subject of the proposed increases in the toll rates. The views on this subject fell into the following categories and are summarized below. 1. The unfairness of the rate increases (23 comments). These comments addressed the unfairness of the rate increases based upon the use of the increased DTR revenue they will produce to fund construction of the Metrorail Silver Line project. This unfairness, the comments stated, stemmed from the fact that many individuals who will benefit from the Silver Line project are not being asked to pay for its construction. The unfairness also stemmed, the comments stated, from the burden that the toll rates place on users of the DTR in that they are funding almost half of the construction cost of the Silver Line project. A significant part of that burden, the comments stated, should be allocated to residents and businesses throughout the entire metropolitan area who will benefit from the new Silver Line but are not being asked to fund its construction. In short, these comments stated that basic fairness requires that a far lower share of the cost of constructing the Silver Line should be paid by users of the DTR and that a far higher share should be paid by individuals who will directly and substantially benefit from the project once it becomes fully operational. 2. The impacts of the rate increases upon the commenting individual (109 comments). A segment of these comments addressed the financial impact that the proposed toll rate increases would create for the individuals submitting the comments. Several of these commenters mentioned they were retired on fixed income. Others mentioned the increased tolls would make the toll road unaffordable for their use, and they would need to use other roads to avoid the DTR. Others mentioned the toll road was becoming a road for the wealthy due to the size of the toll rates that are being proposed. Negative impacts of the rate increases were also expressed in comments submitted by residents north of the DTR who are experiencing non-local, cut-through vehicles on their local streets which they believe would normally use the DTR if it were not for the toll rate at the mainline toll plaza. These comments conveyed the view that the toll at the mainline toll plaza is a major disincentive for drivers traveling between Interstate 495 or Route 123 and Route 7 to use the DTR and that these drivers, instead of using the DTR, are using their local streets. The comments stated that this non-local, cut-through traffic is causing their local streets to carry a volume of vehicles that they are not designed to handle. 3. Alternative sources of funding in lieu of the rate increases (28 comments). These comments communicated the view that the Authority and its Silver Line partners should find additional funding sources to fund the Silver Line construction which would enable the proposed toll rate increases to be eliminated or lowered. Five additional funding sources were identified by comments. One was the Washington Metropolitan Area Transit Authority which, the comments stated, should assess a fee on present and future users of the Silver Line that would be used to help pay for its construction. The second source was Fairfax and Loudoun 4

60 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments counties who the commenters thought should tax property owners, businesses and others with financial interests along the Dulles Corridor which will significantly benefit from the Silver Line. The third source was airlines at Dulles International Airport which, the comments stated, will also financially benefit from the Silver Line and the Metrorail station at the airport. The fourth source was the Dulles Airport Access Highway and the revenue that could be raised by tolling the highway; several comments recommended making the highway a HOT lane facility, like the express HOT lanes on 495, and others stated their view that it was entirely fair to toll drivers using the airport. The fifth source was additional funding from the Commonwealth of Virginia via a regional tax or an increase in the gas tax applicable to the region; generally, these comments focused on spreading the cost of the Silver Line Project throughout the region since the benefits of the project to extend beyond the Dulles Corridor. 4. General opposition to rate increase (20 comments). These comments expressed opposition to the proposed toll rate increase and conveyed no particular views as to the reason for their opposition. 5. General support of rate increases (7 comments). These comments agreed with the rate increases as proposed. B. Comments in Response to the Specifically Posed Questions Of the 190 submitted comments, 176 addressed one or more of the four specific questions on which the public was asked to comment. The views that were conveyed by these comments are summarized below for each of the four questions. 1. Should the proposed increase of $1.25 in the cost of a typical Dulles Toll Road trip be allocated as proposed between the mainline toll plaza and ramps (i.e., a 50-cent increase at the ramp plazas and a 75-cent increase at the mainline plaza) or should it be allocated in a different manner between the ramp and mainline plazas? Fifty-five submitted comments addressed this question. Seven of these comments agreed with the allocation between the mainline and ramp plaza tolls reflected in the proposed rate increases. Forty-eight comments disagreed with that allocation. Twenty-six of these 48 comments expressed support for the increase to be allocated differently than proposed; some favored a lower or no increase at all at the mainline plaza, while applying the proposed increases at all the ramp plazas or at certain ramps such as Spring Hill Road (which some commenters stated should have a toll equal to the toll at the main line plaza). Thirteen of the comments supported an entirely different allocation than the proposed allocation in that they favored rates at the mainline and at all (or certain) ramps that varied from the proposed rates. Seven other comments indicated disapproval of the proposed allocation because they opposed any rate increase at any toll plazas. And the remaining two comments favored applying the proposed increases at the mainline plaza but not increasing the ramp toll rates at all, or just stated the allocation should be different but failed to provide an alternative allocation. 5

61 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments 2. At a future date to be determined, should the Dulles Toll Road s toll plaza lanes that allow customers to pay in cash be converted to E-ZPass only (or open road tolling), similar to newer toll facilities? Forty-four comments addressed this question and expressed the following viewpoints. a. No conversion of cash lanes to E-ZPass only lanes (12 comments). These comments opposed any conversion of cash lanes to the E-ZPass system and favored retaining the current cash lanes. b. Complete conversion of cash lanes to E-ZPass only lanes (19 comments). These comments favored converting all cash lanes at the ramps and mainline toll plazas to E- ZPass only lanes, thus moving the DTR to an All-Electronic-Toll facility. These comments noted that this system is widely used in the region, and it would lead to greater efficiencies on the DTR, both for drivers and for the Airports Authority which could avoid the personnel costs associated with the cash lanes. c. Partial conversion of cash lanes to E-ZPass only lanes (13 comments). These comments favored converting some but not all cash lanes to E-ZPass only lanes, and they recommended that at least one lane should continue to allow for cash and/or credit card transactions. These comments appeared to favor retaining at least one cash lane at the mainline plaza and at all ramps since none expressly suggested retaining a cash lane at fewer than all toll plazas. 3. At a future date to be determined, should credit cards be accepted in certain Dulles Toll Road toll plaza lanes, similar to the Dulles Greenway and other toll facilities? Thirty-eight submitted comments addressed this question and presented the following views. a. Support the use of credit cards (31 comments). These comments generally favored providing a credit card payment option in some DTR toll plaza lanes without distinguishing between ramps or mainline plazas. The comments saw this as a good operational change which would benefit DTR users by providing another payment option and, in addition, would enable a reduction in or elimination of number of personnel required to staff toll booths. Twenty of these comments supported providing a credit card option at the ramp and mainline plazas and removing entirely the pay-by-cash option. The other eleven comments indicated it would be advisable to retain at least one cash toll booth at all toll plazas to allow a method of payment other than E-Z Pass for those who do not have a credit card or who lack an E-ZPass. A few comments went further to express that other forms of payment should be explored, and suggested the use of Apple Pay, Google Pay and debit cards. b. Do not support use of credit cards (7 comments). These comments did not support and recommended against the use of credit cards, with some commenters stating the fear of 6

62 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments identity theft and the fact that not all uses of the DTR have access to credit cards. 4. Should any other operational improvements be made to the Dulles Toll Road? Thirty-nine submitted comments addressed this open-ended question. These comments presented the following views. a. Mitigate avoidance of mainline plaza (11 comments). These comments addressed the use of neighborhood streets north of the DTR in McLean by non-local, cut-through vehicle traffic. The comments expressed the view that this use of neighborhood streets, at least in significant part, is by drivers who are traveling in both directions between Interstate 495 (or Route 123 east of 495) and areas west of Route 7, and are using local streets in between 495 and Route 7 to avoid paying a toll at the DTR mainline toll plaza. For instance, some of these comments stated the view that vehicles traveling southbound on 495 and heading to destinations west of Route 7 avoid the DTR and the toll at the mainline toll plaza by exiting 495 prior to the toll road, use neighborhood streets to reach Route 7, and then take the on-ramp to westbound DTR from Route 7 (where no toll is charged). Other comments conveyed the view that drivers traveling eastbound on the DTR avoid the mainline toll plaza by (i) exiting the toll road onto Route 7 westbound (where no toll is charged) and eventually entering local streets and proceeding east to connect to 495 or Route 123 or (ii) exiting onto Spring Hill Road (paying an exit ramp toll), then turning north onto Spring Hill Road and eventually using local streets to travel east to 495 or Route 123. The comments expressed the view that the tolls assessed at the DTR mainline toll plaza serve as a disincentive for drivers to use the toll road, and lead drivers instead to use local streets to reach their destination. To address this problem, eight of the comments recommended the creation of a dedicated lane along the DTR/Route 267 for trips between 495 and Route 7 that would allow for toll-free usage or usage with tolls substantially less than they are now. 2 The comments stated that this toll-free or tollreduced dedicated lane would encourage drivers to use the DTR to travel back and forth between 495 or Route 123 and Route 7, rather than, as now, using local streets for these short-hop trips. Five of these submitted comments also described an alternative recommendation which is to relocate the DTR mainline toll plaza to a new location west of Route 7. The comments suggested that moving the mainline toll plaza west of Route 7 would reduce the incentive of many non-local drivers who, the commenters believe, now cut-through residential streets north of the toll road to avoid the mainline toll plaza. One comment suggested tolling all entry and exit ramps for Route 7. 2 Comments suggesting a dedicated lane did not specify if this lane was for eastbound drivers or westbound drivers or both. 7

63 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments b. Implement distance-based tolling (7 comments). These comments stated that a tolling system which ties the amount of tolls assessed DTR drivers to the distance they travel on the toll road would be more equitable than the current toll rate system, and they recommend its adoption at some point in the future. c. Miscellaneous Improvements (14 comments). These comments included a variety of suggested improvements for the DTR, including repaving the road, having more clearly marked lanes, adding a third eastbound lane on the DTR/Route 267 from the main line toll plaza all the way to Route 123, improving the eastbound exit ramp from DTR/Route 267 to Route 123 east, improving the eastbound exit ramp from DTR/Route 267 to 495 north, studying the assessment of one-way only tolls (i.e., only on vehicles traveling eastward or traveling westward), allowing HOV vehicles to use the DTR tollfree and adding another HOV lane in each direction. d. No improvements needed (7 comments). These comments stated a preference for no operational improvements on the DTR, either because they felt the toll road was fine as-is or because they felt making no improvements would mean lower costs which would mean lower rate increases. 8

64 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments 3. EXHIBITS EXHIBIT A Copy of The Washington Post Advertisement EXHIBIT B Verbatim Copies of all Comments Part 1: Comments received from organizations Part 2: Comments received from individuals, sorted alphabetically 9

65 Dulles Toll Road Proposed Toll Rate Increases Report on Public Comments EXHIBIT A Copy of The Washington Post Advertisement A-1