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Open Road Tolling (ORT)p g ( )The MDX Experience
IBTTA Organization Management W k hWorkshopApril 11, 2011
SR 924 Gratigny Parkway
SR 112 Airport Expressway
SR 836 Dolphin Expressway
SR 874 Don Shula &SR 878 Snapper Creek
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Why ORT?
• 5 of the most heavily traveled
expressways in Miami‐Dadep y
• Limited right‐of‐way restricting
ability to expand system
• Toll‐free movements
• Projected 21% growth over the next 20 years in Miami‐Dade County
• Need for increased revenue stream to fund future improvements
• ORT Master Plan – Board Approval 2006
– Set framework to convert entire MDX system to electronic
The ORT Evolution
ytoll collection
– Set the recommended scenario to “close the system” with a goal to provide fairness to all users
– Sought to maintain the rate per mile per corridor prior to conversion to minimize impacts on the system users
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• Toll Policy – Board Approval 2008
– All vehicular movements on tolled portions of the MDX System
The ORT Evolution
p yshall be tolled
– As MDX converts every roadway to ORT• Un‐tolled vehicular movements shall be eliminated
• Per mile toll rate (excluding any Surcharge) approximately the same over the length of such expressway prior to Conversion
– Surcharge
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• Established from time to time by resolution of the Board• Sufficient to cover the cost to process and collect Toll By Plate transactions
• Approved concurrently with the Annual Operating Budget of the Authority
Laying the Foundation• Maximized SunPass usage
– Multi‐year, Multi‐level Outreach Program
• Maximized existing infrastructure to improve mobility
– Operational improvements
– Addition of auxiliary lanes
– Enhancements to existing interchanges
• Made provisions for user‐friendly technology
– Support of low‐cost transponder – accessible to ALL
– Protect user privacy ‐ transponder use anonymous
– Accommodate rental car users and taxis
– Accommodate tourists
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Benefits of ORT
• Better Service
• Safer Facilities
• Faster Travel Times
• Fuel Savings
• Increased through‐put
• Lower Carbon Emissions
• Lower Operating CostsLower Operating Costs
• Lower Future Construction Costs
• Funding for Future Improvements
The ORT Story
201455% of U
97% of Users will Pay
28% of Users Paid
42% of Users Paid
SR 924, SR 874, SR 878
2007
2010
2012
2013Users Pay
SR 112 Go‐Live
SR 836 East/West Go‐Live
SR 836 Central Go‐Live
,Go‐LivePilot ORT
SR 836 Extension
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$207,562
$200,000
$250,000
Revenue Actual/Forecast
FY 2005 ‐ FY 2020(In Thousands)
$58,651
$142,185 $171,505
$‐
$50,000
$100,000
$150,000
$
Existing System Full ORT
SR 924 Before and After ORT
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SR 874 Before and After ORT
34,088,265
41,389,714
35 000 000
40,000,000
45,000,000
Transactions by RoadwayFY 2011 & FY 2010
6‐Months (July ‐ December)
6,315,736
12,715,769
11,410,926
6,206,750 5 354 267
32,862,971
13,670,638
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
6,206,750 5,354,267 00
SR112
Airport
SR924
Gratigny
SR836
Dolphin
SR874
South Dade
SR878
Snapper Creek
Transactions ‐ FY 2011 Transactions ‐ FY 2010
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$30,253,459
$30,000,000
$35,000,000
Revenue by RoadwayFY 2011 & FY 2010
6‐Months (July ‐ December)
$7,281,771
$7,545,012
$16,607,042
$3,005,023 $6,470,114 $5,691,952
$25,638,990
$13,894,321
$‐$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
SR112 Airport
SR924 Gratigny
SR836 Dolphin
SR874 South Dade
SR878 Snapper Creek
Revenue ‐ FY 2011 Revenue ‐ FY 2010
$20,843,409
$20 000 000
$25,000,000
SunPass Revenue by RoadwayFY 2011 & FY 2010
6‐Months (July ‐ December)
$4,405,347 $5,724,724
$12,098,120
$2,262,753
$3,965,967 $4,060,994
$18,409,353
$8,851,692
$
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$‐$0
SR 112Airport
SR 924Gratigny
SR 836Dolphin
SR 874South Dade
SR 878Snapper Creek
SunPass ‐ FY 2011 SunPass ‐ FY 2010
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Revenue Distribution6‐Months (July to December)
FY 2010 FY 2011
$16,398,571 30%
$38,107,484 70%
FY 2010
$9,063,267 15%
$45,334,353 75%
$5,746,281 10%
FY 2011
Cash SunPass Cash SunPass Toll‐By‐Plate
Revenue CompositionFY 2011
Gross Revenue Adj d R
64.16%
21.70%
14.14%
Gross Revenue
75.37%
9.56%15.07%
Adjusted Revenue
SunPass Toll‐By‐Plate Cash SunPass Toll‐By‐Plate Cash
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• Investor based outlook • Customer based outlook
Finance Operations
• Investor based outlook
• Data – Financial reporting
– Revenue impact
• Reconciliation– Payments by Location
– Receivables
D dli d i
• Customer based outlook
• Data
– Performance measures
– Transaction volume
• Reconciliation
– Amounts by payment type
– Customer accounts– Deadline‐driven
• Trend Analysis– Receivable allowance
– Revenue forecasting & coverage
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Customer accounts
• Trend Analysis
– Traffic & revenue patterns
– Customer issues
• Investor based outlook
• Data – Financial reporting
• Customer based outlook
• Data
P f OperationsFinancial reporting
– Revenue impact
• Reconciliation– Payments by Location
– Receivables
– Deadline‐driven
• Trend Analysis– Receivable allowance
– Performance measures
– Transaction volume
• Reconciliation
– Amounts by payment type
– Customer accounts
• Trend Analysis
– Traffic & revenue patterns
One Common GoalBest Interest of MDX
Finance Operations
– Receivable allowance
– Revenue forecasting & coverage
Traffic & revenue patterns
– Customer issues
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Invoice / Enforcement Timeline
1st NoticeFee $3
(30 Days to P )
Late NoticeFee $5
(30 Days to P )
Toll Violation Notice (TVN)
$10 Fine + amt due(30 D t P )
Day 30
Day 60
Day 90
Day 190
Pay) Pay) (30 Days to Pay)
Day 120
Collection Agency
Registration
Uniform Traffic Citation (UTC)Registration Filing withg
Hold33% of amt due(60 Days to Pay)
gHold lifted
(30 Days to Pay)All fees & fines
Filing with M‐D Court
• SunPass
– Least expensive
T ll b Pl t
Toll Payment Options
• Toll‐by‐Plate
– Automatically captures the image of a vehicle’s license plate as the vehicle passes under toll gantry
• Images with no transponder read are sent to back office
Customers may pay INVOICES/TVN’s/UTC’s
– Web ‐ 33%Web 33%
– Lockbox (mail)– 41%
– Customer service representative – 25%
– Walk‐ins – less 1%
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• Charge covers the cost to process toll‐by‐plate transactions– Toll‐by‐Plate Charge = $0.15 / Gantry
• Administrative Invoice Fee covers the cost to mail in the
TBP Charge & Invoice Fee
invoice– Administrative Invoice Fee = $3.00
• Administrative Late Fee is associated with untimely payment of tolls and represents cost of funds– Administrative Late Fee = $5.00
• Third‐Party Collection Agency– NO cost to MDX ‐ small fee directly from customers
– Obtain payment from delinquent customers prior to moving to the UTC stage
– Maximize percentage of collected tolls
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• S. 316.1001 Payment of toll on toll facilities required; penalties.–
Uniform Traffic Citation (UTC)
– Failure to pay a prescribed toll is a noncriminal traffic infraction, punishable as a moving violation under chapter 318.
– Mandatory $100 fine for each violation of s. 316.1001">316.1001 plus the amount of the unpaid toll shown on the traffic citation for each citation issued.
– 3 points assessed against driving record
– Suspension of Driver’s License for failure to pay
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Applicable Accounting Guidance
• General Accepted Accounting Principal
FASB SFAC. 5Earned
FASB SFAC. 5
• International Accounting Standard 18
IAS 18
• Security Exchange Commission
SAB 101 (SAB 104)
Measurable
• Non GAAP Collectable
• Enterprise Fund – Accrual basis of accounting
MDX General Accounting
g
• Revenue recognized when earned / services have been rendered – Lane exit date/Billed date
• Revenue measurable– Toll Rate Policyy
• Collectability is reasonably assured – % uncollectable
• Bad Debt – Balance Sheet Method
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Regulatory Environment• Reporting Requirements
• Policy & Procedures
• Internal Controls
– Segregation Duties
– Accuracy & Completeness
– IT Controls
• Risk Assessment
– Financial Risk
– Public Trust
What’s the Target?
Financial Planning &
Sound Policies
Public Trust
Good Management Practices
RevenueRevenue Assurance
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