Regional Transportation Council Workshop August 11, Ken Kirkpatrick, Counsel for Transportation

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1 Regional Transportation Council Workshop August 11, 2016 Ken Kirkpatrick, Counsel for Transportation

2 BACKGROUND TollTag Users Have a Higher Payment Rate than ZipCash Users Pilot Initiated at RTC Suggestion to TxDOT Test Ability to Cover Collection Risk for Pay-by-Mail/ZipCash Users Periodically Increase Pay-by-Mail Surcharge (at 90, 180 days) Market-Driven Approach to Increase Toll Tag Usage (currently 70% TollTag/30% Zip Cash on DFW Connector) Potential to Apply Lessons Learned to IH 35W Corridor (TxDOT has Collection Risk) 2

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4 WHAT IS THE COLLECTION RISK? TxDOT Concession CDAs (NTE, LBJ) Developer Entitled to Toll Transactions, Less Fees* TxDOT/NTTA Tolling Services Agreement NTTA Provides Toll Collection Services NTTA Remits Tolls Collected, Less Fees* to TxDOT Uncollected Tolls = Collection Risk Developer is Entitled to Uncollected Tolls * Transaction Fees 4

5 WHO BEARS THE COLLECTION RISK? FACILITY NTE (IH35W) NTE (IH820, SH 183) LBJ (IH35E to US75) Other Managed Lane Facilities COLLECTION RISK TxDOT NTTA NTTA Public Sector 5

6 WHAT IS THE DRIVING COLLECTION RISK? (IH 35W 3A/3B Example) IH 35W Managed Lanes Projected Opening: 2017/2018 ZipCash Tolls Subject to Premium Initial Transaction Assumptions: Toll Tags/ZipCash: 70%/30% Initial Collection Rate Assumptions: Toll Tags/ZipCash: 99.9%/60% ZipCash Generate Less Revenue at a Higher Cost Collection Risk is a Primarily a ZipCash/Video Tolling Issue 6

7 TOLLTAG PRIMER Regional Transportation Council Presented by: Kimberly Jackson Senior Director of Public Affairs

8 The Growth of a TollTag TollTag Technology Launched in North Texas NTTA becomes first in the nation to deploy this technology on the Dallas North Tollway

9 Six years later One Million Active TollTags

10 Another six years later Two Million Active TollTags

11 Three years later Three Million Active TollTags

12 Two years later Four Million Active TollTags (June 2016)

13 23,000 TollTags Issued Weekly

14 79.3% TollTag Penetration NTTA System TollTag Use at a Glance 77.3% TollTag Penetration Chisholm Trail Parkway 6M No. of transactions to increase TollTag Penetration 1% 746.1M Annual Transactions M Active TollTags

15 Transponder Adoption Benchmarks NTTA is among the leaders in the industry when it comes to the percentage of tolls being collected electronically, and may be near the upper limit of TollTag adoption % 67% 70% 70% 82% 81% 72% 80% % North Texas Tollway Authority Denver E- 470 Miami Dade Central Texas RMA NJ Turnpike Florida Turnpike Oklahoma Turnpike Authority Kansas Turnpike Authority HCTRA All-Electronic Toll Systems Source: Alvarez & Marsal NTTA 2016 County Review

16 Why Do Customers Have a TollTag? Source: 2014 NTTA Biennial Customer and Stakeholder Survey

17 Why Do Customers Have a TollTag? Source: 2014 NTTA Biennial Customer and Stakeholder Survey

18 Why Do Customers Have a TollTag? Source: 2014 NTTA Biennial Customer and Stakeholder Survey

19 Why Do Customers Have a TollTag? Source: 2014 NTTA Biennial Customer and Stakeholder Survey

20 Why Don t Customers Get a TollTag? 1 44% 2 25% 3 15% 76 Don't drive North Texas toll roads very often Source: 2014 NTTA Biennial Customer and Stakeholder Survey Don't feel comfortable with automatic withdrawals Have to deposit money upfront for automatic withdrawals

21 ZipCash Customer Frequency Unique IDs 15

22 Snapshot of a ZipCash Customer 52% Younger Female Mobile Budget Conscious

23 More about ZipCash Customers $2.63 $4.19 $1.60 Average toll rate Average TEXPress toll rate 44% Customers saying they travel once a month or less 61% Customers who received only one invoice a year 60% Customers on NTTA.org less than once a month

24 Two TollTag Options Same Benefits $40 Standard TollTag

25 Beyond Big Savings More Reasons to Get a TollTag Easy Account Management Convenient Airport Parking Good on toll roads in Texas & Oklahoma Best rates for TEXPress travel Fast Access Tollmate

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27 More TollTag Options Available Now: $19.99 Cowboys $22.99

28 TollTag Conversion Marketing and Communication Efforts Increase penetration on PGBT WE Promote interoperability with Oklahoma 55% penetration post one-year opening Deepen community outreach efforts and strengthen customer relations

29 New Marketing Campaign

30 New Marketing Campaign

31 New Marketing Campaign

32 New Marketing Campaign

33 ZipCash Invoice Update envelope Female

34 By the Numbers

35 Active TollTag Count by County 1,232, , , ,572 48,092 54,774 25,508 64,915 COLLIN DALLAS DENTON ELLIS JOHNSON PARKER ROCKWALL TARRANT

36 Unique ZipCash Customers by County (2015) 1,366, , , ,252 74,492 87,125 50,795 50,575 COLLIN DALLAS DENTON ELLIS JOHNSON PARKER ROCKWALL TARRANT

37 Breakdown: TollTag and ZipCash Transactions 800,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, Total TollTag ZipCash 31

38 We Need Your Help

39 provide a safe and reliable toll road system increase value and mobility options for our customers operate the Authority in a businesslike manner protect our bondholders partner to meet our region's growing need for transportation infrastructure.

40 Regional Marketing Campaigns: Next Steps Regional Transportation Council Workshop August 11, 2016 Amanda Wilson

41 Regional TEXpress Lanes Education Effort Regional Transportation Council directed education campaign Benefits of TEXpress Lanes targeted at general public and stakeholders/critics Campaign will include benefits of TollTags (convenient payment, lower tolls, HOV discounts with app) 2 2

42 Upcoming IH-30 Insider Campaign Part of the Value Pricing Pilot Program IH 30 is a test corridor for using incentives to encourage alternative commutes Campaign will run on TryParkingIt.com October 2016-April 2017 TollTag usage will be encouraged for HOV discounts on the TEXpress Lanes through the Drive On TEXpress app 3

43 Website linking to information about TEXpress Lanes, including TollTag, TXTag, EZ Tag information TxDOT Efforts 4

44 LBJ Express / North Tarrant Express Efforts features information on getting a TollTag, TX Tag or EZ Tag 5

45 TollTag Marketing and Next Steps on DFW Connector Workshop August 11, 2016 Mindy Mize, Program Manager, Transportation Marketing

46 RECOMMENDED MARKETING EFFORTS FOR DFW CONNECTOR PILOT PROGRAM TollPerks for New TollTag Customers Prize Giveaways Preloaded TollTags to Targeted Areas TollTag Sales at Inspection Stations in Targeted Areas TollTag Sales at Car Dealerships in Targeted Areas 2

47 TOLLPERKS FOR NEW TOLLTAG COSTUMERS Concept TollPerks Points can be Redeemed for Exclusive Rewards from Dallas-Fort Worth area Merchants Additional TollPerks are Given to New TollTag Customers TollTag Must be Tied to a Credit Card/Bank Account Market in Concert with Prize Giveaway Estimated Cost See Prize Giveaway Information 3

48 PRIZE GIVEAWAYS Concept One or More Grand Prizes for a Vacation Destination or North Texas Area Sporting Team Given Away New TollTag Customers are Entered into Drawing TollTag Must be Tied to a Credit Card/Bank Account Use Advertising Such as Billboards Along DFW Connector and Online/Digital Ads Estimated Cost Prize Pool: $5,000 Marketing: $40,000 4

49 PRELOADED TOLLTAGS TO TARGETED AREAS Concept Preloaded TollTags are Offered to High Use ZipCash Customers in Average to Low Income Zip Codes Using the DFW Connector $20 Credit is Offered, but TollTag Must be Tied to a Credit Card/Bank Account Use Direct Mail Piece to Advertise to Target Group of ZipCash Users on DFW Connector Target 10,000 Users Estimated Costs Incentives up to $200,000 Staff/Marketing up to $30,000 5

50 TOLLTAG SALES AT INSPECTION STATIONS IN TARGETED AREAS Concept TollTag Package are Offered to Costumers Going Through Annual Inspection Process TollTag Must be Tied to a Credit Card/Bank Account Target Inspection Stations Where Highest Concentration of Users of the DFW Connector Live Participating Inspection Stations Will Receive $5 per TollTag Sold Through NTTA Joint RTC/NTTA Staff Communication/Coordination Effort Estimated Cost $10,000 6

51 TOLLTAG SALES AT CAR DEALERSHIPS IN TARGETED AREAS Concept TollTag Package is Offered to Purchasers of Vehicles as a Part of Dealer Benefits Package (e.g. Free Oil Changes) TollTag Must be Tied to a Credit Card/Bank Account Target Dealerships Around Highest Concentration of DFW Connector Users Dealership Will Receive Incentive for Participating ($5 per tag Through NTTA) Joint RTC/NTTA Staff Communication/Coordination Effort Estimated Cost $10,000 7

52 REQUESTED ACTION FOR FULL RTC Request Approval of Up To $300,000 to Implement DFW Connector TollTag Marketing Efforts Source of Funds: Regional Toll Revenues (Regional Pool) Administratively Modify the TIP/STIP and Any Other Necessary Administrative or Planning Documents 8

53 CONTACT INFORMATION Ken Kirkpatrick Counsel for Transportation Mindy Mize Program Manager Transportation Marketing Amanda Wilson, A.I.C.P. Public Information Manager Community Outreach