CITY COUNCIL: Route 156 West Corridor Project Update

Memorandum
To: Member Agencies
From: Debra L. Hale, Executive Director
Subject: Route 156 West Corridor Project Update
The Transportation Agency recognizes the congestion relief, safety and local access benefits of
the proposed widening and other improvements to Highway 156 between Castroville and
Prunedale. The Agency has made this project its top underfunded highway priority. Tolling is
being considered as an option for paying for the project to allow its construction in the near-term.
TAMC staff is presenting an overview of the 156 project and the use of tolling to finance state
highway projects to all interested member agencies.
DISCUSSION:
Overall, the Route 156 West Corridor Project will:
 Improve safety along the corridor and facilitate access to the Oak Hills community;
 Provide traffic congestion relief for 32,000 vehicles per weekday;
 Support visitor travel and goods movement in this heavily-traveled corridor.
Specifically, Phase I of the Route 156 West Corridor Project will construct four new lanes from
Castroville Blvd. to near the US101/156 interchange. The existing Highway 156 will become a
county frontage road that runs from Castroville Blvd. to Highway 156. A new interchange will
be constructed at Castroville Blvd. and Hwy 156. A small frontage road will be constructed at
Meridian to Meridian Spur to remove local traffic from Highway 156. Phase 2 will reconstruct
the US 101/ Highway 156 interchange and reroute the traffic from San Miguel Canyon Road
through that new interchange. Attachment 1 is a project description and map.
One option to pay for construction of the State Route 156 Widening project is congestion pricing/
tolling. The Transportation Agency contracted with Samer Madanat, a professor of engineering and
Director of the Institute of Transportation Studies at University of California, Berkeley, to evalute
the potential for using tolling to fund the SR 156 Widening project. Professor Madanat’s analysis
concludes congestion pricing/tolling is a viable funding option for funding Phase 1 of the project, at
a price of $1-2 per vehicle over 10 to 20 years, in two directions, with all vehicles paying.
The Transportation Agency has reviewed the tolling proposal with its Board of Directors, the
Monterey County Hospitality Association and the homeowners associations along the corridor.
Some of the questions related to tolling can currently be answered; others will require a specific set of studies. Attachment 2 is a set of frequently asked questions (and answers). The following
questions require additional study:
• Given a 30 year collection period, how high will the toll need to be under these scenarios:
o to pay for Phase 1;
o to pay for Phase 1 and 2;
o to provide a substantial locals discount; and,
o to collect the toll in one direction only.
• How much will traffic divert to other streets or highways from the toll road?
• How much will need to be set aside to pay for state and local administration costs?
• Can other improvements be included, such as a Blackie Road connection to Castroville Blvd?
• How will the project benefit the region’s economy?
• What are the local oversight options?
TAMC will consider issuing a request for consultant proposals to conduct a traffic and revenue
study, economic analysis and additional peak/non-peak/event weekend traffic counts. The estimated
cost for this study will range from $60,000 to $75,000. Caltrans has agreed to share in the cost. The
Transportation Agency and Caltrans expect to decide jointly whether or not to move forward with
the tolling proposal by the end of 2012. If the decision is made to move forward, construction on
Phase 1 could begin as early as 2016.
The Transportation Agency has directed staff to carry out a public outreach plan to gain public
input on the tolling proposal. That plan includes public workshops in June, presentations at City
Council meetings in June and July, and a follow up set of presentations after the study is done.
FINANCIAL IMPACT:
Widening of Highway 156 and construction of a full interchange at Castroville Boulevard,
Phase 1, is estimated to cost $104.2 million. Construction of a new interchange at US 101 with a
rerouting of the San Miguel Canyon interchange, Phase 2, is estimated to cost an additional
$150 million. Currently TAMC has nearly $44 million in state funds allocated to the project,
which leaves an unfunded gap of $60 million for Phase 1. Adding in Phase 2 would raise the
unfunded cost to $210 million. Waiting for traditional funding sources from the state would
delay the project construction from 10 to 20 years.
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Highway 156 West Corridor – Phase 1
PROJECT BENEFITS
The internationally known
Monterey Peninsula is accessible
only via two-lane roads. One of
those is Highway 156, heavily congested
during the summer and for special events. As
a result, Hwy 156 is a major interregional
bottleneck. Phase I would construct 4 new
lanes from Castroville Blvd to near the
US101/156 interchange . The existing Hwy156
would become a county frontage road that
runs from Castroville Blvd to Hwy 156. A new
interchange would be constructed at
Castroville Blvd and Hwy 156. A small
frontage road would be constructed at
Meridian to Meridian Spur to remove local
traffic from Hwy 156.
A future Phase 2 would improve the US
101/Hwy 156 interchange.
In partnership with:
 Provides traffic congestion relief for
32,000 vehicles per weekday
 Supports $2 billion per year visitor
economy
 #1 transportation priority for the
hospitality industry
 Facilitates movement of valuable
goods to market, supports $3.8 billion
per year agricultural industry
 Improves safety at intersections and
local access

Phase 1 Total Project Cost: $104.2 million
PROJECT DESCRIPTION
Estimated schedule - subject to funding
Project Complete 2019
Begin Construction 2016
Design 2015
Right-of-Way 2015
2013
Environmental
Review Complete
COST ESTIMATE
PHASE 1 PROJECT SCHEDULE
Looking westbound on Highway 156
Transportation Agency for Monterey County Updated March 2011
55-B Plaza Circle, Salinas, CA 93901  (831) 775-0903  www.tamcmonterey.org
Highway 156 - Phase I
New Four Lane to US 101
179
Highway 156 West Corridor
Transportation Agency for Monterey County
55-B Plaza Circle, Salinas, CA 93901  (831) 775-0903  www.tamcmonterey.org
PROJECT LOCATION

Using Tolling to Finance a Highway Project
Some Questions and Answers
1. Why can’t important projects be funded with the taxes I already pay?
In the Monterey Bay Region, gasoline tax revenues are the primary source of funding for local
road and highway projects. No road funding (in the three-county area) comes from property
taxes, sales taxes or motor vehicle fees. Gas tax revenues are insufficient to meet our
transportation needs, primarily because gas taxes have not been raised since 1994 – when gas
prices were only about $1.11 cents per gallon. Because gas taxes are set per gallon, not as a
percentage of the cost, rising gas prices do not result in more revenue for road projects. In fact,
when the price of gasoline rises people drive less, so we collect less revenue per person as the
price of gasoline has gone up over the past several years.
There are other reasons why gas tax revenues do not meet our transportation needs. First, our
cars are more fuel efficient now, so motorists are buying less gas to travel the same distance –
but they're causing the same wear and tear on roads. Second, due to inflation, construction
projects cost about 50% more than they did in 1994. And that isn’t counting the fact that there
are more environmental regulations than there used to be—the simple cost of doing business is
higher. Conclusion: it costs more to build transportation projects than it used to, and we have
less money to pay for them.
2. What are the advantages of using tolls to fund a project?
The advantage of tolling is that it allows construction of a project much sooner than waiting for
state or federal funds to become available. For instance, tolling will allow construction of the
Highway 156 improvement project from 15 to 20 years sooner than waiting to save up scarce
state and federal funds. In addition, tolls are basically a user fee for those who drive on the
road. As a user fee, tolls more fairly charge the cost of the facility to those who benefit from it
than other revenue options.
3. Will drivers have to stop and pay a toll? Wouldn’t that cause more congestion?
No, with today’s modern technology there is no need for traditional toll booths. Tolls can be
collected 100 percent electronically–without vehicles stopping to pay. As is done on the San
Francisco Bay Area bridges, electronic tolls can be collected with a transponder, about the size
of a credit card. Drivers install the transponder on the inside of their car’s windshield. On the
tolled facility, an overhead antenna links the transponder to your account information, and
deducts the correct toll from a prepaid account. In the Bay Area, approximately 60 percent of
travellers have transponders. Vehicles without transponders would have their license plate
photographed and they would receive a bill or could prepay the toll. Emergency responders
(police, fire, ambulances, etc.) will have the ability to use the toll road without paying the toll.
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4. How much will the tolls be?
The toll must be set to cover the costs of constructing, operating, maintaining and sometimes
designing the project. In addition, administration costs for the toll must be covered. A
preliminary study estimated that Phase 1 of the Highway 156 project (widening, frontage road,
Castroville Boulevard interchange) could be constructed with tolls of approximately $2 per
vehicle in each direction. Including all or part of Phase 2 (interchange reconstruction at Highway
101) would raise the cost of the toll, as would having the toll in one direction only and discounts
for local residents and/or businesses. It is unlikely that visitors would be willing to pay a toll
higher than they pay on San Francisco Bay Area bridges, about $5 one way, or slightly higher
during peak travel periods.
5. Can there be a tolling discount for local residents and/or businesses?
Yes, there could be a special discount pass that local residents and/or businesses could buy
upon proof of residency that could substantially discount or eliminate their need to pay a toll.
Discount passes would require a higher toll for those who do pay.
6. What other costs besides project construction could be included in a toll?
The cost to design, operate, maintain a road project, plus the costs to administer a toll, could be
included in the toll financing package. In some areas, other local road improvements or parallel
transit service is also funded out of toll revenues. The decision on what to include in the tolling
package can be made by the local and state governing agencies overseeing the project; in
Monterey County that would be the Transportation Agency for Monterey County and Caltrans.
7. How do you keep people from using alternate routes to avoid the tolls?
Experience elsewhere has shown that if travelers find the toll road saves them time and money,
they will choose it over other parallel roads. In order to determine how much traffic would be
diverted to other local roads or highways, and how much revenue the toll will raise, a traffic and
revenue study must be conducted prior to receiving state approval to install a toll facility.
8. What is the process for implementing a toll road?
California state law allows for the implementation of tolls under certain circumstances. The
proposed toll project must improve traveler mobility, safety and operations, provide
quantifiable air quality benefits, and address projected demand (essentially, be financially
feasible). The desired steps are as follows:
• Conduct a traffic and revenue analysis to confirm financial feasibility
• Evaluate mobility, safety/operations, air quality benefits and environmental impacts
• Decide project and tolling characteristics,
• Present proposal and obtain approval from the California Transportation Commission
• Obtain approval from the local partner, i.e. Transportation Agency for Monterey County
• Issue a request for consultant team proposals
• Evaluate the proposals and select a consultant team.
• Approve an agreement between the consultants and public partners.
Decisions can be made locally at several points in the process as to whether to continue, and
what features to include in the project and the toll financing scenario.
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9. What other funding sources besides tolls could be used to pay for highway projects?
Transportation projects throughout California are paid for primarily with fuel taxes, sales taxes,
development impact fees and federal earmarks. Other ideas proposed locally include hotel tax
increase, a business improvement district and an event tax.
Transportation sales taxes (1/2 cents per dollar) have been proposed in the Monterey Bay Area
in 2006 and 2008. In both instances, the required 2/3 voter approval was not achieved. Voters
in 18 other counties have approved such sales taxes for transportation and are considered “selfhelp”
counties. These local revenues allow these counties to leverage other state and federal
matching funds that are not available to other counties.
The twelve cities and the County of Monterey have approved regional traffic impact fees that
are paid when new developments are built. The Fort Ord Reuse Authority also requires new
developments to pay traffic fees to compensate for their impact on local roads and highways. A
total of nearly $30 million has been budgeted from these impact fees for the Highway 156
improvement project, for instance, but due to the slow pace of development it is uncertain
when these funds will be available.
10. Can tolls ever expire?
Yes, it can. The toll agreement can be set up to allow tolls to be removed when the project is
paid for. The decision to include a “sunset date” can be made as part of the final agreement on
whether or not to toll the facility.
11. Who will oversee the administration of the toll over time?
There are many governing structures that can be implemented as part of a toll facility. It can be
overseen by a local public entity, such as the Transportation Agency for Monterey County, it can
be overseen by Caltrans, it can be overseen by a private concessionaire, or there can be a publicprivate
partnership that administers the facility. This governing structure would be established
before the tolling agreement is approved.