Florida DOT to "explore" lease/concession or monetization of I-75 Alligator Alley

Florida DOT will be holding an industry forum in late April in Orlando to explore "monetization, including leasing" of Alligator Alley. Alligator Alley is the nickname adopted as a real name for the east-west highway on the southern end of I-75 - a 125km (78 mile) 2+2 lane expressway that runs from the northwestern suburbs of metropolitan Miami due west across the peninsula to Naples on the Gulf coast.

FDOT's director of finance Bill Thorp told us the department wants to assess the interest in the project.

"With trouble in the financial markets we'd like to see if there is still the appetite and the capacity" for a toll concession, Thorp said, "before we make the next moves." He said that the decision on whether to move forward to a formal procurement with Requests for Proposals would only be made if the department finds there is interest and capacity. Also the move to a procurement will need to be approved by the Secretary of Transportation, who he said is likely to have discussions with the Governor and with legislative leaders.

The department doesn't yet have in mind any particular concession except that it has to be within the limits set down by state law HB985.

The industry forum will be a one-day affair and an open meeting.

Most trips end to end

Much of Alligator Alley ("the Alley") is built across the Big Cypress National Preserve a northern extension of the swamps of the Everglades so it is almost entirely unpopulated en route and 90% or so of trips are coast to coast, going the full length of the road.

Toll revenue in 2007 was $23.5m based on average daily traffic of 23k. Traffic was growing at 5 to 7% annually until 2005 and has been flattish since - a reaction perhaps to the slowing economy and the toll increase. The alternative route to the Alley between the Miami area and southwest Florida is US41, a 2-lane road that is slightly more direct to and from central Miami from the west coast. It is a 2-lane uncontrolled access road but since most of it is straight and the countryside is unpopulated motorists can drive it quite fast, especially as speed limits are unlikely to be enforced.

Always a tollroad

Alligator Alley was built initially as a 2-lane undivided but controlled access tollroad based on toll revenue bonds issued in 1964. It was duplicated to 4 lanes divided 1986 to 1992 and operated as a tollroad with a toll plaza at each end, and two intermediate toll free interchanges. Toll revenue bonds issued in 1997 funded the improvements. Toll plazas were converted to one way tolling in 1999 with the West Plaza collecting eastbound tolls and the East Plaza westbound tolls.

Tolls were $1.50 for cars between 1969 and Feb 2006. They are now $2.00 for SunPass transponder customers and $2.50 cash. That is 2.56c/mile (1.6c/km) electronic toll and 3.2c/mile (2c/km) cash - among the lowest rates in the US and the world.

The Alley is a toll facility owned and operated by Florida DOT, not by the Florida Turnpike Enterprise which operates the major state toll facilities. Total operating and maintenance expenses in 2007 were $6.15m, 26% of toll revenues. The $6.15m broke down routine maintenance $3.19m, operating expense $2.95m. Costs have been rising sharply due to higher insurance costs and police patrols.

The tollroad doesn't have much seasonal variation in traffic though the hottest months of the year July and August are a bit below average.

Trucks (vehicles with 3 or more axles) at 10% on the Alley are well above average for Florida toll facilities. They provide 28% of the revenue. 37% of toll transactions are by SunPass transponders.

The Alley is the most direct expressway standard route between the Miami area and southwest Florida all the way up to Tampa. The only competitive expressway standard route is the Turnpike Mainline to Orlando and west on I-4.

The roadway is generally in good condition. A major resurfacing project is under way and will be complete before any concession could be put in place. 4 lanes provide plenty of capacity for many years to come with average traffic now only 23k/day.

The road is considered an important hurricane evacuation route for both coasts. Toll collection is suspended in that event.

Straightforward project, low tolls

Bill Thorp, finance director says the Alley is being presented for consideration for "monetization" because HB985 passed last summer authorizes the department to investigate raising revenue from toll concessions and other monetization means on non Florida's Turnpike toll projects. Several toll facilities are feasible candidates, he says, including the Sunshine Skyway bridge in the Tampa metro area. Others have not been ruled out but the department's approach is to look at the facilities one at a time.

The Alley is the first to be examined because it is relatively straightforward. It is considered attractive because costs are low and the toll potential is high given the very per-mile toll rates currently in place there.

Any concession will provide caps on toll rates, Thorp points out. The road will remain under state ownership and control according to the terms of the concession. The term of the concession will be up to 50 years unless special permission is granted for a longer term. The maximum allowed by law is 75 years.

The department is also required by law to do a valuation of the project as a public toll facility and this will be used as a 'comparator' with any bids received from the private sector.

Potential

We looked at comparisons. Tolls elsewhere in Florida are multiple of those on the Alley. Cars on Florida Turnpike Mainline pay over 9c/mile (5.75c/km), three times the per-mile charge on the Alley. In specifics the trip on the rural Mainline ticket system stretch Lantana MP88 to Ft Pearce MP152 (64 miles) is less than the distance of the Alley end to end (78 miles). The Turnpike's charge for 64 miles is $8.00 vs FDOT's $2.50 on the Alley's 78 miles.

Announcement see http://www.dot.state.fl.us/ under Latest News

traffic stats http://www.dot.state.fl.us/planning/statistics/trafficdata/AADT/aadt.htm

(We tried to get traffic counts for the competing US41 but we couldn't get any that made any sense from the obscure way FDOT presents them with lists of count stations and separate maps showing stations. Maybe someone with more patience can match count stations and map locations. Here in Maryland, the DOT has the right idea. They put the traffic count numbers right there on the map. Simple, readable.)

TOLLROADSnews 2008-03-21