MBA Worries About Project Costs, Even as Tolls Rise
By Karen Gould

Beginning March 1, travelers crossing the Mackinac Bridge will pay more at the toll booths following a seven-year rate increase plan adopted by the Mackinac Bridge Authority, Friday, December 21.

Since its November 2 announcement that it would raise Mackinac Bridge tolls significantly in just 60 days, the Mackinac Bridge Authority received opinions from 271 people. Some convinced the board that commuters would be directly hurt by a proposed 50¢ hike, others demonstrated that tourism and commercial trucking would suffer from raises.

"We've listened to very passionate pleas by a lot of people," observed Kirk Steudle, Michigan Department of Transportation director and bridge authority member, at a special meeting in Detroit Friday, December 21, prior to adoption of a modified toll structure that stretches increases through 2014 and softens sharp initial jumps.

The toll structure calls for a more gradual increase than the two rate proposals in November, but ends with higher tolls ($4.50 instead of $4 for a car) at the end of seven years than were originally proposed.

The increases begin March 1, instead of January 1.

Commuter tolls will go up 10¢ each year, but who will qualify as a commuter has yet to be decided. For now, everyone does, so long as they cross the bridge at least once in 365 days. That program will be reviewed by the end of the year.

Also to be reviewed will be whether commercial haulers, such as logging trucks who cross frequently, will eventually be offered a discounted rate.

The Authority said it intends to review the toll plan in 2013, suggesting additional adjustments as it monitors traffic volume and toll revenue to raise cash for a $40 million painting project and a $190 million deck replacement plan. Much of the revenue increase is now deferred toward the end of the schedule. Selling bonds to raise additional money is still being considered.

In 2014, the Authority will be engineering the deck replacement will be about four years away from actual reconstruction.

"The challenge for the Authority is to forecast traffic revenues accurately and estimate the deck replacement costs accurately at a time when heavy construction costs have been increasing very rapidly due to world demand for products such as steel and petroleum," said Bob Sweeney, executive secretary to the Authority. "Any bonding would take place between 2018 and 2023, and may cover forecasting shortfalls."

Of the toll schedule, Mr. Steudle said, "I think this is a reasonable approach and a good compromise."

According to board member Murray Wikol, the Authority took into account bridge maintenance, operations, administration, and capital expenditures in making the deci- sion. Each board member also read the transcripts from three public hearings and other communications received about the issue.

Board member Dan Musser said the new rate structure will be more reasonable for commuters.

"It is more fair on the people who need it the most," he said.

But Authority members also worry about looming inflation.

"I'm supportive of these adjustments to soften the financial impact," Mr. Wikol said of the toll schedule, "but I probably will lay awake at night wondering if we did enough."

"It's a delicate balance," he said. "On a $200 million program, I think this is the correct balance of doing what is prudent for the bridge in terms of safety, maintenance, and operations, and still being gentle on the traveling public. I hope this is enough. I sit here today and think that, very well, our costs could be 300, 350 million [dollars], and then we will potentially have to take further action."

Traffic projections include a 2% decrease in bridge crossings through 2009. From 2010 to 2017, engineers predict a 1% increase in traffic. During deck replacement construction from 2018 to 2023, traffic is expected to decrease by 10%. Once the deck is replaced, the Authority projects a 1% per year increase in bridge travelers.

"The construction is a great unknown for us," said Bill Gnodtke, who chairs the board. "In some respects, I liken it to Labor Day 365 days a year, because we are going to be down to two lanes just like we are during the bridge walk."

The only public comment received at the 45 minute Detroit meeting was from George Berghorn, director of forest policy

for the Michigan Forest Products Council, which represents wood and paper mills and large private land owners. He asked for more study of truck fees before establishing a toll increase and requested a commuter discount for carriers based on the number of crossings they make.

Mr. Wikol called a commuter program for truckers a "viable idea," that the board would look into, although he said trucks create the most wear and tear on the bridge.

"Weight and speed," he said, "are the biggest enemies of the Mackinac Bridge."

Mr. Gnodtke said he thought the new rate structure offered a "reasonable increase" for commercial carriers, noting the first incremental increase of 50¢ per axle.

Since the Bridge Authority stopped selling commuter tokens in November, it has issued 3,000 debit cards, holders of which receive the prevailing commuter rate. Bridge staff believes that 82% of them will make fewer than 150 crossings a year and about 50% will make fewer than 50 crossings. As more user data becomes available, however, the board hopes to devise a commuter policy that discourages casual use.

The prepaid commuter cards can be scanned by toll takers or by automatic scanners at unmanned toll booths and can be used by drivers of passenger cars that are not towing a boat, snowmobile, trailer, or any object. Vehicles that are towing items can set up a special debit account.

A $5 card activation fee and a minimum $40 deposit is required for these cards, and during discussion of a commuter policy December 21, the board agreed that, while a higher minimum deposit would discourage casual card users, it could be a hardship for some seasonal workers and residents.

"I think it is a very lenient and fair program compared to the tolling industry," said Mr. Wikol of the interim commuter policy. "We can always tweak it down the road."

No refunds will be issued for those closing their card account, and those not using their card for a year will also forfeit their deposits.

The Authority next meets March 20 in Lansing, and July 10 and July 11 on Mackinac Island.