--Good Practice in Project Evaluation and Marketing: The San Diego Example-

BACKGROUND

"Good Practice in Value Pricing" is a series of briefs highlighting good practices in project planning, implementation and evaluation used in projects being funded under the auspices of the Federal Value Pricing Pilot Program. The purpose of the series is to provide assistance to current and potential partners in the Pilot Program, as well as to others interested in conducting value pricing initiatives as part of the local transportation planning process. Briefs will be issued periodically and will highlight projects and topics of interest to Pilot Program participants. This brief highlights practices used in the value pricing implementation project carried out by the San Diego Association of Governments (SANDAG) and the California Department of Transportation (Caltrans). The information in this brief is taken primarily from SANDAG's Phase II, Year 2 and Year 3 reports. All study reports for the Sandag project can be located at:

www.sandag.cog.ca.us/data_services/fastrak/library.

The Federal Value Pricing Pilot program provides funds to support the development, operation and evaluation of pilot tests of innovative road pricing, parking pricing and auto-use pricing projects. Value pricing, also known as congestion pricing or peak-period pricing, relies on market forces to reduce the waste associated with traffic congestion. Road pricing involves the use of fees or tolls for road use which vary by time of day or level of congestion. More information about the FHWA value pricing program can be found at: www.fhwa.dot.gov/policy/vppp.htm. Additional information about value pricing concepts and projects can be found at: www.valuepricing.org.

SAN DIEGO'S EXPRESS LANES PROGRAM

San Diego's value pricing project on Interstate 15 (I-15) is a multi-year demonstration that allows single-occupant vehicles (SOVs) to use the existing high occupancy vehicle (HOV) lanes on I-15 for a fee. The full implementation phase of the program, termed FasTrak, commenced in the Spring of 1998. With FasTrak, SOVs pay a per-trip fee each time they use the HOV lanes. The normal toll varies between $0.50 and $4.00 and is based on traffic levels in the HOV lanes and the time of day. FasTrak tolls are collected electronically via transponders and overhead antennas. The unique feature of this project is that fees change dynamically with the level of congestion on the HOV lanes. An earlier Express Pass phase charged a monthly fee for unlimited use of the Express Lanes. The goals of the project are to make better use of the existing capacity on I-15, while maintaining free-flow traffic conditions on the HOV lanes, and to generate revenues to support transit service in the corridor. While the FasTrak program has a number of features that have attracted worldwide attention, two key aspects of the program are highlighted in this brief: Project monitoring and evaluation and project marketing.

PROJECT MONITORING AND EVALUATION

The design of the monitoring and evaluation effort was developed jointly by Sandag, Caltrans, and FHWA, with support from consultants to those agencies. It's central features were:

• A traffic study which monitored and evaluated a wide range of quantitative data on traffic volumes, travel modes, vehicle speeds, travel times, violations, potential air quality changes, and cost of delay;
  
  
• An attitudinal panel study intended to assess travel behavior and attitudes regarding FasTrak. 1500 individuals were surveyed every 6 months. Survey participants included current and former Express Pass/FasTrak users, other I-15 commuters (both carpoolers and singleoccupant vehicles), and users of a control corridor (I-8).
  
  

A number of additional studies were conducted to deal with particular evaluation issues, including assessments of business impacts and land use.

Selection of a Control Corridor

Controls were critical for distinguishing between the effects of the value pricing project and the effects of other forces influencing the I-15 corridor, such as fuel prices, regional economic conditions, and so on. While no two travel corridors are identical in all respects, the study team believed it was nevertheless important to select a control corridor that would allow some reasonable comparative conclusions to be drawn. For all traffic-related studies, a relevant section of the I-15 main lanes coinciding with the location of the Express Lanes was selected as the study corridor, and, after review of several alternatives, a corresponding section of I-8 was selected as a control corridor. Both highways are major commuter routes linking residential areas to downtown San Diego, and the highway sections studied are roughly the same distance from downtown San Diego, I-15 to the north, and I-8 to the East. For other studies, such as the attitudinal panel study, the business study, and the land use study, relevant areas along the I-15 and I-8 corridors were identified from which sample travelers, businesses, and residences were randomly selected.

Data Collection

As shown in Table 1, evaluation data were collected at several points during the study period (at times selected to avoid interference from typical seasonal traffic changes). In addition, historical traffic data were gathered for the 7-year period preceding the study.

TABLE 1

Waves of Data Collection

Phase I

Pre-project Spring 1996

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus
• ParkRide - yes
• Land Use
• Attitudinal
• Business

Pre-project Fall 1996

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide
• Land Use
• Attitudinal
• Business

Expr. Pass Spring 1997

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide - yes
• Land Use
• Attitudinal
• Business

Expr. Pass Fall 1997

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide - yes
• Land Use
• Attitudinal - yes
• Business - yes

Phase II

FasTrak Spring 1998

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide - yes
• Land Use - yes
• Attitudinal - yes
• Business

FasTrak Fall 1998

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide - yes
• Land Use
• Attitudinal - yes
• Business - yes

FasTrak Spring 1999

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide - yes
• Land Use - yes
• Attitudinal - yes
• Business

FasTrak Fall 1999

In the following studies a "yes" denotes data was collected:

• Traffic - yes
• Bus - yes
• ParkRide - yes
• Land Use
• Attitudinal - yes
• Business - yes

The types of data collected included both aggregate traffic data on mode use, distribution of peak travel times, speed and travel time, as well as disaggregate data on individual travel behavior, such as individual's reported mode shifts and changes in departure times, traveler perceptions and attitudes, and perceptions regarding congestion, speeds, travel times and safety.

Assessment of Traffic Changes

The traffic study compared changes in traffic characteristics from the pre-project period (Fall 1996) to Phase I (Fall 1997) to evaluate the Express Pass program's effects on traffic. It then looked at changes from Fall 1997 to the end of the second year of FasTrak operation (Fall 1999) to assess the effects on daily traffic of switching to the transponder-operated program. Traffic changes were measured and tests were applied to determine whether the observed changes were statistically significant (at the 0.05 level). Changes were measured on the overall corridor level (Express Lanes and main lanes, combined), the Express Lanes, and the Main Lanes. Observed changes were compared to changes in daily traffic volumes in the I-8 control corridor. External factors that could have influenced observed traffic changes in the two corridors were noted in the report.

Changes in daily carpool volumes and singleoccupant vehicle (SOV) traffic were also measured, as were changes in the rate of SOV violations on the Express Lanes. In addition, traffic engineers continuously monitored the level of service provided by the Express Lanes, since state law authorizing the Express Lanes requires that free-flow traffic conditions (Level of Service C, or LOS C) be maintained. Of particular importance for the value pricing program, the efficiency of capacity utilization on the Express Lanes was measured by looking at the ratio of traffic volume during the peak period to the maximum peak-period traffic volume that could be maintained while still assuring LOS C. Traffic changes within the peak period were examined to determine whether peak "spreading" had occurred due to the higher fees during the height of the peak period. Time series data were used to ensure that peak spreading was not due to seasonal influences.

The traffic study also measured changes in vehicle classification and changes in vehicle occupancy on the I-15 main lanes and I-8. Changes in travel time and delay were observed using a car that moved at the prevailing speed of traffic.

Delay Costs and Air Quality Changes

The delay study estimated the value of time lost by commuters as a result of traffic delays during peak periods along a 6-mile section of the I-15 main lanes paralleling the Express Lanes. An estimate was also made for a similar length section of I-8. Delay costs were calculated based on the total amount of delay on covered sections as compared to free-flow conditions. Value of time (or willingness to pay to avoid delay) was estimated from household income data based on the assumption that value of time is related to wage rates. Estimates of changes in emissions of four main pollutants, volatile organic compounds, nitrogen oxides, particulate matter, and carbon monoxide, were made by modelling changes in related emission factors in grams per mile, average vehicle speeds, total vehicles and occupancy, and roadway length.

Attitudinal Panel Study

The Attitudinal Panel Study was intended to assess changes in travel behavior, attitudes, and perceptions over the life of the project. Interviews were held in five waves over the Fall 1997-Fall 1999 period. In each wave, the same questions were asked, and any attrition of the sample was replenished by refreshment samples to keep the sample size unchanged at 1500 respondents. Panelists were drawn from three sub-samples: (1) I-15 current and former ExpressPass/FasTrak program participants; (2) other I-15 users (both carpoolers and solo drivers); and (3) a control sample of I-8 commuters (both carpoolers and solo drivers). Because of the importance of monitoring the project's effects on carpoolers, they were oversampled in the initial wave to ensure adequate representation in later waves.

Comparisons across waves allowed the study team to identify changes that occurred over the study period, and to apply statistical and analytic techniques to help explain behavioral changes. Standard analysis of variance techniques were used to test whether there were significant differences in responses from I-15 users and the control sample. In the first interview wave cross-sectional data were used for analysis. Time series data were used for subsequent waves.

MARKETING THE FasTrak PROGRAM

A very effective FasTrak promotion program was designed by a marketing consultant to develop awareness of the program among I-15 commuters and the general public and to recruit program participants. A key element of the marketing program was the introduction of dynamic pricing where tolls vary with the level of congestion on the Express Lanes.

The marketing program relied on several approaches to communicate with the public, including video, audio, and written materials, and made special efforts to inform the media about the project. Of particular importance to the success of the program was the fact that the marketing program was used by SANDAG as a tool for informing project managers about reactions to the project and the need for program adjustments.

Because the FasTrak program had been preceded by an in-vehicle pass program, special efforts were made to assist the existing 900 ExpressPass customers in changing over to the new transponder program. Each customer was sent a transition letter which contained a toll schedule showing the maximum amounts users could expect to pay at various times of the day and an explanation of how to convert accounts to the FasTrak program. An incentive of $10 worth of free tolls was provided to customers who signed up via credit card.

A grand opening event for the FasTrak Customer Service Center (CSC) was held one week before the FasTrak program commenced. It included brief presentations by officials of the involved agencies, followed by a tour of the CSC to show media members how an account could be opened and a transponder obtained to use the Express Lanes as a solo driver. An Inland Breeze bus, the new express bus service funded by the project, was also displayed.

During the week the program opened, press kits were distributed to the media to promote the opening event. Included were an agenda for the event, a SANDAG press release, information about other FasTrak facilities in California, customer contacts for the media, a background piece on technology, an I-15 program newsletter, a FasTrak application/brochure, a photo of a transponder, a toll schedule, an express bus schedule, and an audio cassette tape explaining the program to customers.

Three days before project opening a press release was issued announcing the start of the program. The marketing consultant prepared and distributed customer communications materials, including brochures, applications, audio tapes, and newsletters.

A video press release was developed and distributed to the four major television stations. The video contained a detailed project description, a toll schedule, information on revenue use, a description of the CSC, and a summary of program goals.

An opening day media event was held at the Express Lanes facility. It included drive-alongs for media members with existing and new customers, as well as customer testimonials from carpoolers and Inland Breeze users.

The mailing of a quarterly I-15 Express News newsletter developed by the marketing consultant became a continuing activity of the Program.

After about 6 months of operation, SANDAG lowered the tolls during the shoulders of the peak period to encourage peak spreading. One week before this change commenced, correspondence was mailed to each user announcing the change. A press release was also issued informing the media about the change, the reasons for the change, and other program updates.

SANDAG also established an I-15 FasTrak website to include all program information, as well as application forms. The CSC periodically sent letters to customers describing updates on the program or responding to suggestions made by customers.

Once the CSC was opened, SANDAG made a concerted effort to collect and tabulate public response data. A subcontractor to the Phase II contractor collected information on telephone calls, faxes, e-mails, letters, and comments made in person. These responses were very useful for identifying problems and making any necessary program adjustments.

KEY LESSONS LEARNED

A number of important lessons were learned from the SANDAG pricing program about project monitoring and evaluation and about marketing a value pricing program.

• Use of some type of control, such as a control corridor, is essential for helping distinguish between effects of the pricing project and effects that are external to the project. A control corridor should be as similar as possible to the project corridor, but it may not be possible to find a location that shares all the characteristics of the project corridor.
  
  
• Care should be taken to identify and account for changes in economic or other forces that affect the project and control corridors differently. For instance, major construction projects in an area may have a substantial effect on traffic patterns.
  
  
• To help focus studies on key impact questions it is helpful to develop a series of questions relating to changes in the target and control corridors (e.g., what major external factors may have contributed to observed changes in each corridor).
  
  
• Establishing baseline (pre-project) data on key variables is critical for identifying changes in trends that might be due to the target project.
  
  
• Use of both aggregate (i.e., total travel) and disaggregate (individual travel behavior) data can provide checks on consistency of findings across studies and can enhance understanding of project effects over time.
  
  
• Use of statistical methods such as regression analysis and tests of significance can help sort out the influences of program variables and forces external to the project, and can help provide validity to study findings. Yet, because of the multiplicity of factors influencing traffic in a corridor, it may be impossible to isolate a pricing project's effects with absolute certainty.
  
  
• Panel surveys can be an excellent way of tracking changes in individual travel behavior, attitudes and perceptions about a project. Panels can provide important data on trip making and mode changes impossible to obtain in traffic studies. It is important to maintain consistency in panel survey instruments and sample size over time. Differences between observed project data and panelist perceptions can point project managers to areas where improved public education may be needed, just as panelist observations can be a useful guide in shaping program development.
  
  
• A strong media relations program is essential to project success. Key media members should be informed about the project and should be viewed as an important means of informing the public about the program. Vehicles for informing the press about the project include press kits, media events, newsletters and audio cassettes. It is important to track media coverage, whether it is positive, negative, or neutral, and to make adjustments as needed.
  
  
• A multi-media marketing program, including newspaper, television, and radio coverage, and publication of promotional materials can help bring public attention to the program and elicit greater customer participation in shaping the program and fostering support.

THE FUTURE OF PRICING IN SAN DIEGO

SANDAG's FasTrak program has been quite successful in meeting project goals and providing new transportation opportunities for local users. More of the capacity on the Express Lanes is being used than before the pricing program was initiated, yet free-flow traffic conditions have been maintained on the lanes. Project revenues have supported an express bus service in the corridor, one of the key goals of the project. Successful implementation of dynamic pricing has demonstrated the feasibility of the concept and has gained acceptance among users. Dynamic pricing was shown to be more effective in spreading traffic over the peak period, than were fixed monthly price schedules.

One of the chief initial concerns about this project was that it would harm carpooling, but this has proven not to be the case. The project has proven to be a successful way of providing new travel options, funding transportation alternatives, and financing increases in enforcement activities. Equity did not emerge as an important issue for the project, possibly because those who choose to use the Express Lanes are clearly better off, and those who continue to use the mixed-use lanes are not made worse off by the Express Lanes program.

Because of the successful demonstration of pricing in San Diego, the FasTrak project has been continued under authority of the Value Pricing Pilot Program and newly-enacted State legislation which allows the program to continue in operation until at least January 1, 2002. SANDAG is also seeking state legislation that would remove the sunset date from this project. In addition, plans are underway for a new pricing project which will extend the FasTrak program to a to-be-constructed HOV lane extension on I-15.

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