Sources of Revenue:

Other Fund Parkways Authority Budget

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

In order to make an accurate estimate of effects on costs and revenues, it would be necessary to have the studies done by our Traffic Engineers and Consulting Engineers as called for in our Trust Indenture. The costs of the studies would have to be negotiated but could be significant. Another consideration to the above mentioned studies being done would be the extreme seasonality of motorcycle riding which would necessitate traffic surveys and observations at different times of the year to determine the overall impact. This bill does not impact the General Revenue Fund of the State of West Virginia since the Parkways Authority receives no tax revenues or other funds from the State.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2004 Increase/Decrease (use"-")	2005 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	0	0
Personal Services	0	0	0
Current Expenses	0	0	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	0	0

Explanation of above estimates (including long-range effect):

Unknown.

Memorandum

The following information is relative to the consideration of the above referenced bill: A motorcycle is defined as a vehicle authorized to travel on interstate highways. It must also be licensed and fees are charged for registration and taxes are paid on the purchase just like cars and trucks. From both a service and safety perspective, the Parkways Authority provides service areas, rest stops, snow removal, courtesy patrol and police protection by West Virginia State Police to protect patrons of the Turnpike from speeders and hazardous drivers. All of the above benefit the motorcyclists as well as the rest of the traveling public. The WV Turnpike vehicle classification system is based upon the number of axles and the height of the vehicle. The new toll system, which costs approximately $10 million, cannot be modified to accommodate weight consideration without a complete re-haul at considerable expense. The current classification system recognizes nine classes of vehicles and was developed after an in-depth study aimed at equity and compatibility with other toll systems. A study by the Parkways Authority's toll consultant revealed that almost all facilities charge the same rate for motorcycles and passenger cars. A research of 40 agencies operating over 120 toll facilities have identified only four agencies that differentiate between passenger cars and motorcycles. All four are bridge/tunnel or ferry facilities. Motorcycles, as on other toll facilities, are classified in the same category as passenger cars with a toll of $1.25. Any consideration given to reducing the toll for a motorcycle would require a major re-write and re-programming of the toll classification system software or require toll collectors to manually override the system and input the new toll. Either of these methods would be unsatisfactory because of expenses incurred, loss of audit and the inequity that would be created. To reduce tolls for motorcycles because of weight would advance the theory that other passenger cars, such as a Volkswagen, should pay a lower toll because of its weight. The current toll classification system is equitable. The Turnpike has experienced no toll increases since 1981 in spite of inflationary periods affecting labor, equipment and materials procurement. On January 1, 1994, a new Parkways Authority Commuter (PAC) Card was offered to commuters and travelers on the WV Turnpike. This discounted toll pass can generate savings of up to 84% to daily commuters. In accordance with the existing Trust Agreement between the bondholders and the WV Parkways Authority the schedule of Turnpike tolls currently in effect for the Turnpike shall not be reduced unless there has been filed with the Trustee for at least thirty days prior to the effective date of the reduction: (1) A certificate of the Traffic Engineers, giving effect to the completion of any Turnpike facility or improvement which has been commenced or which has been financed through the sale of Turnpike bonds and setting forth estimates of Turnpike toll for the then current and next succeeding five fiscal years, on the basis that no additional traffic on the Turnpike will result from the reduction in tolls; (2) A certificate of the Consulting Engineers setting forth, for each of the fiscal years and on the assumption specified in the certificate of the Traffic Engineers being delivered pursuant to (1) above, separate estimates of the operating expenses and the amount necessary to provide for a reserve for Renewal and Replacement costs of the Turnpike; and (3) Certificate of an Authorized Officer of the Authority stating that: (i) the Authority is not in default in the performance or observance of any covenants, conditions or agreements of provisions with respect to the Turnpike bonds contained in the Trust Indenture, (ii) the amount on deposit in the Reserve Account securing the Turnpike bonds is at least equal to the Reserve Account Requirement for the Turnpike bonds, (iii) the Net Subsystem Revenues of the Turnpike are not less than 150% of the debt service on the Turnpike bonds, and (iv) based upon the certificates then being delivered pursuant to (1) and (2) above, the difference in the current and each of the next five fiscal years between the Turnpike tolls and the Operating Expenses of the Turnpike will be at least 100% of the debt service for the Turnpike bonds plus the amount necessary to provide for a reserve for Renewal and Replacement Costs. It is the position of the Authority that since motorcycles derive the same benefits and services as other motorists, they should not be granted any relief from tolls. However, should this bill be passed in view of the facts presented in this note, all requirements of the Trust Indentures and Tri-Partite Agreement would have to be met and the Authority Board would have to approve before any reduction in tolls could take effect.

Person submitting Fiscal Note: Gregory C. Barr, General Manager
Email Address: gregbarr@wvturnpike.com