Assessment of Southeast Florida Road User Costs

Slide 1:Assessment of Southeast Florida Road User Costs

Slide 2:Agenda

Project Overview Review of Methodologies Values Developed

Slide 3:Assessment of Road User CostsProject Overview

District 4 starts to build economic assessment framework Develop localized and statewide values for Travel time Vehicle operating costs Transit being considered separately Develop flexible spreadsheet applications Assess localized travel costs in construction zones

Slide 4:Project Overview

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

Slide 5:Development of Vehicle Operating Costs Methodology for Auto and Truck VOCs

National State Local Sources Adjustment Factors Cost Parameters Fuel Costs Depreciation Finance Fuel Tax Sales Tax Licensing and Registration Tires Maintenance and Repairs Insurance City/Highway Conditions Speed

Slide 6:Vehicle Operating Costs Methodology � Basic Parameters/Assumptions

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

Slide 7:Vehicle Operating Costs Methodology � Fuel Costs, Consumption Rates

Fuel prices Energy Information Administration Consumption rates Auto � www.fueleconomy.gov Truck � MDOT VOC study Consumption Rates and Costs/Mile

Slide 8:Maintenance and Repairs Methodology � Costs/Mile

Contacted dealerships Function of Cost of oil/filter changes (3K) Regular tune-ups (30K) Prevailing shop rates Cost per Mile

Slide 9:Tires Methodology � Costs per Mile

Contacted local dealerships Function of Mileage between changes (45K) Cost of new tire set Statewide and local wage rates Cost per Mile

Slide 10:InsuranceMethodology � Cost per Mile

Allstate � quotes for leased and owned vehicleby vehicle type Auto and truck Average uses Standard policies Cost per Mile 50/100,000 Married 20 mile commute Insurance estimates were based on the rate for one 35-year-old married male driver with no violations or accidents in the past five years, the primary use of the vehicle being for local and regional business. Insurance levels are as follows: Bodily injury liability: $50,000 coverage limit per person and $100,000 cover�age limit by accident; Property damage: $10,000 per accident; Medical payments coverage: $2,000 per person; Personal injury protection: Full deductible; Collision: $250 deductible; and Comprehensive Insurance: $250 deductible. Insurance costs are regularly expressed in dollars per year; however for the pur�poses of consistency, insurance costs are expressed here in dollars per mile driven.50/100,000 Married 20 mile commute Insurance estimates were based on the rate for one 35-year-old married male driver with no violations or accidents in the past five years, the primary use of the vehicle being for local and regional business. Insurance levels are as follows: Bodily injury liability: $50,000 coverage limit per person and $100,000 cover�age limit by accident; Property damage: $10,000 per accident; Medical payments coverage: $2,000 per person; Personal injury protection: Full deductible; Collision: $250 deductible; and Comprehensive Insurance: $250 deductible. Insurance costs are regularly expressed in dollars per year; however for the pur�poses of consistency, insurance costs are expressed here in dollars per mile driven.

Slide 11:DepreciationMethodology � Cost per Mile

Autos � Based on Kelly Blue Book Function of age and mileage based depreciation by region Information collected by vehicle class and brand name Trucks � MNDOT Study (5-8 cents/mile) Cost per Mile It is expected that cars, sports-utility vehicles, and trucks lose around 20�percent of their purchase value within the first year of purchase. In addition, the auto�motive lease guide and the Kelly Blue Book estimate that nonluxury cars retain roughly 40�percent of their original cost by the end of the third year of purchase or lease. Residual values are highest among German cars and lowest among U.S. vehicle brands. On the other hand, luxury cars are expected to retain roughly 50�percent of their initial value over the same period. Age depreciation was determined by fixing the driving distance to zero and col�lecting data on cost of purchase for selected brand names by vehicle size (Toyota Corolla/Small-Size Vehicle, Ford Taurus/Medium-Size Vehicle, and Ford Crown Victoria/Large-Size Vehicle) on a yearly basis between ages 0 and 10. These brand names were shown to be the most popular in Southeast Florida according to findings on vehicle shares by brand name from the Florida Department of Motor Vehicles vehicle registration tag database. Depreciation by miles driven also was collected. For each represented vehicle make, purchasing costs were collected for zero, 60,000 (fifth year), and 90,000 miles (end of vehicle life span as recommended by FHWA�s Office of Highway Policy Information) driven. Miles and age driven depreciation costs were converted to yearly figures based on 12,000 miles yearly traveling conditions as recommended by the American Automobile Association. Findings indicated that depreciation rates for small vehicles were highest in the initial years of purchase and lowest towards the end of the life span. By the ninth year, small vehicles are anticipated to retain 9�percent of their initial pur�chase cost compared to 4�percent for medium-size vehicles and 4�percent for large-size vehicles according to findings from the Kelly Blue Book.It is expected that cars, sports-utility vehicles, and trucks lose around 20�percent of their purchase value within the first year of purchase. In addition, the auto�motive lease guide and the Kelly Blue Book estimate that nonluxury cars retain roughly 40�percent of their original cost by the end of the third year of purchase or lease. Residual values are highest among German cars and lowest among U.S. vehicle brands. On the other hand, luxury cars are expected to retain roughly 50�percent of their initial value over the same period. Age depreciation was determined by fixing the driving distance to zero and col�lecting data on cost of purchase for selected brand names by vehicle size (Toyota Corolla/Small-Size Vehicle, Ford Taurus/Medium-Size Vehicle, and Ford Crown Victoria/Large-Size Vehicle) on a yearly basis between ages 0 and 10. These brand names were shown to be the most popular in Southeast Florida according to findings on vehicle shares by brand name from the Florida Department of Motor Vehicles vehicle registration tag database. Depreciation by miles driven also was collected. For each represented vehicle make, purchasing costs were collected for zero, 60,000 (fifth year), and 90,000 miles (end of vehicle life span as recommended by FHWA�s Office of Highway Policy Information) driven. Miles and age driven depreciation costs were converted to yearly figures based on 12,000 miles yearly traveling conditions as recommended by the American Automobile Association. Findings indicated that depreciation rates for small vehicles were highest in the initial years of purchase and lowest towards the end of the life span. By the ninth year, small vehicles are anticipated to retain 9�percent of their initial pur�chase cost compared to 4�percent for medium-size vehicles and 4�percent for large-size vehicles according to findings from the Kelly Blue Book.

Slide 12:Finance Charges Methodology � Costs per Mile

Capital One Interest rates Autos � 4.39% Trucks � 11.0% Cost per Mile

Slide 13:License and Registration FeesMethodology and Fee, Costs per Mile

Local tax collection offices Differ by weight Other components are a flat fee Fee and Cost per Mile

Slide 14:TaxesMethodology

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

Slide 15:Low-Range Vehicle Operating Costs-Southeast Florida Results

Slide 17:Spreadsheet CalculatorVOC Variables

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

Slide 18:Development of Travel Time Values Methodology

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

Slide 19:MethodologyPotential Market Segmentations

(continued next slide)

Slide 20:MethodologyPotential Market Segmentations (continued)

Slide 21:Value of Time by Market for Personal Travel

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

Slide 22:Value of Time for On-the-Clock Travel

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

Slide 23:Value of Time and Proportion of Travelby Trip Purpose

$12.10 10% 0% 90% 0% Nonhome-based $11.34 5% 0% 95% 0% Home-based Unknown $12.10 10% 0% 90% 0% Home-based Other $10.59 0% 5% 95% 0% Home-based Social/Recreational $10.58 0% 0% 100% 0% Home-based School $10.59 0% 5% 95% 0% Home-based Shopping $12.69 0% 0% 0% 100% Home-based Work � $25.80 $10.83 $10.58 $12.69 � Average On-the-Clock Visitor Personal Local Personal Commute � Source: National Income and Products Accounts, Bureau of Economic Analysis, U.S. Census Bureau. Values in 2004 dollars

Slide 24:Value of Time and Proportion of Travel by Time-of-Day

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

Slide 25:Distribution of Traffic and TTVs by Functional Classification

$11.39 2.1% 1.6% 0.4% 95.9% Urban Collector $11.19 0.8% 1.2% 0.2% 97.8% Urban Minor Arterial $11.26 1.0% 1.7% 0.2% 97.1% Urban Other Principal Arterial $11.52 2.7% 2.2% 0.5% 94.7% Urban Principal Arterial � Other Frwys/Exprswys $11.80 4.8% 2.4% 0.6% 92.2% Principal Arterial � Interstate $12.22 7.1% 3.7% 0.3% 88.9% Rural Major Collector $11.72 3.6% 2.9% 0.2% 93.2% Rural Minor Arterial $12.12 7.0% 2.9% 0.4% 89.7% Rural Principal Arterial � Other $13.22 16.6% 2.8% 0.6% 80.1% Rural Principal Arterial � Interstate TTVs Single-UnitTrucks Buses Personal Vehicles Source: FDOT District 4 Traffic Monitoring System.

Slide 26:Distribution of Traffic and TTVs by Vehicle Classification

$31.10 $31.10 $118.55 $19.86 Total Vehicle TTV 1.2 1.2 10.15 1.57 Average Occupancy $25.80 $25.80 $11.68 $12.65 Per-Person TTV 100% 100% 5% 10% On-the-Clock 10% 10% Visitor/Personal 70% 55% Local/Personal 15% 25% Commute Combination-Unit Trucks Single-UnitTrucks Buses Personal Vehicles Source: National Household Travel Survey, National Transit Database, Team consensus

Slide 27:SEFRUC Survey

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

Slide 28:SEFRUC Survey Results 2004 Dollars

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

Slide 29:RUC for Construction Projects

TTI � 1999 study Used MicroBenCost Lookup tables Texas conditions Cost per day per mile, 10% trucks VOC values $12/hour for Texas ($11 for Florida) OHIO � Construction Incentive Program $1.6K/day (32.5K maximum) Florida � D5 bonuses SR 434 $7K/day ($600K maximum) I-4 Polk County $10K/day ($2M maximum)