TOLL COLLECTION

2012-07-30: When both are fully costed modern tolls now cost less to collect than fuel taxes according to a report for Reason by Daryl Fleming, a veteran toll industry consultant who works under the eTrans Group moniker.

The South Jersey Transportation Authority (SJTA) board formally decided today to privatize manual toll collection services on the Atlantic City Expressway voting to accept a bid from Faneuil Inc of Hampton VA. At the board's monthly meeting the outsourcing resolution was passed unanimously.

Faneuil and three others responded to an August 29/30 RFP for toll services September 15.

The resolution reads:

The New Jersey Turnpike has reached a settlement with two unions representing its 800+ toll collectors that provides for significant pay cuts and only guarantees jobs pending implementation of all-electronic tolling. In return the Turnpike will not pursue outsourcing or privatization of cash toll collection services.

The New Jersey Turnpike has deferred a board of directors vote on plans to outsource cash toll collection. Due to be considered at the meeting Wednesday (Apr 27) the matter is being deferred a while. Spokesman Tom Feeney told reporters today: "We’re still wrapping up various issues."

The union representing toll collectors on the New Jersey Turnpike (called IFPTE Local 194) is seeking an injunction in federal court to prevent any further move to outsource toll collection services without the requirement that union members have job preference - called the 'right of first refusal' of jobs.

The New Jersey Turnpike Authority has put back by a week the deadline for bids for a toll collection staffing contract. A spokesman said this was at the request of several prospective bidders.  They needed more time.

The Turnpike recently amended the RFP to eliminate a preference for toll collectors laid off. Contractors were initially required to give former Turnpike collectors 'right of first refusal' on jobs. But the toll collectors union was using this provision to try and scare bidders off completely.

New Jersey Turnpike Authority officials say Teamsters Local 194 has been interfering in their outsourcing of toll collector services to a private contractor, and running a campaign to undermine the chances of the Turnpike getting competitive bids. And they say the union was exploiting a provision in the RFP that would have given union members a preference ("right of first refusal") to jobs.

Twenty four companies sent their people along to the New Jersey Turnpike's tour of Interchange 11 Monday - part of the process of soliciting proposals for contracted cash toll collection services. Interchange or Exit 11 is in Woodbridge where the  Turnpike crosses the Garden State Parkway and the US9 highway.

25 toll lanes wide IC11 toll plaza is a formidable operation.

The New Jersey Turnpike Authority plans to issue a Request for Proposals (RFP) for toll collection services early in the new year, a spokesman told TOLLROADSnews today. He said the plan is to eliminate around 300 collectors at the Turnpike proper and 175 at the Garden State Parkway if contracting out proves a significant savings.

The New Jersey Turnpike Authority will be formally seeking bids for toll collection and cash handling services in December to replace some 700 high-cost salaried employees. James Simpson the chairman of the Turnpike Authority and state commissioner of transportation said this after an authority board of directors meeting today.

"It has become a monopoly," he said of toll collection referring to its high costs and labor union dominance.