2301 Maitland Center Parkway, Suite 300 Maitland, FL 32751 tel: 407 660-2552 fax: 407 875-1161 July 29, 2014 Ms. Sue Hopwood LeeWay Manager Lee County Department of Transportation 1366 Colonial Boulevard Fort Myers, FL 33907 Subject: Semiannual Traffic and Toll Revenue Report – Fiscal Year 2014 Lee County Toll Facilities Dear Ms. Hopwood: CDM Smith is pleased to submit the following Semiannual Traffic and Toll Revenue Report. This report addresses facility performance for the first half of Fiscal Year (FY) 2014, beginning October 1, 2013 and ending March 31, 2014. As with previous semiannual reports, the performance data presented herein is compared to data from the same period in the previous fiscal year. This document will follow essentially the same format as the FY 2013 semiannual report. Any changes in methodology or data sources will be noted in the document. Total Transactions and Toll Revenue Table 1 contains the total transactions and toll revenue for the three Lee County Toll Facilities over the first half of FY 2014, compared against total transactions and toll revenue from the same time period in the previous fiscal year. As indicated, total systemwide transactions increased by 3.9 percent. Transactions on all three Lee County Toll facilities increased over the same period in FY 2013. The largest increase occurred on the Cape Coral Bridge, with an increase of 5.6 percent over the first half of FY 2013. Transactions on the Sanibel Causeway and the Midpoint Memorial Bridge increased 3.8 percent and 2.3 percent, respectively, over the first half of 2013. Ms. Sue Hopwood July 29, 2014 Page 2 Table 1 Semiannual Transactions and Toll Revenue First Half, FY 2014 vs. FY 2013) Transactions Transactions Percent Revenue Revenue Percent FY 2014 Average Facility FY 2013 FY 2014 Change FY 2013 FY 2014 Change Toll Rate Midpoint Memorial Bridge3,753,3533,838,7842.3%$ 7,249,672$ 7,693,4636.1%$ 2.00 Cape Coral Bridge3,740,4453,948,9485.66,943,1927,603,0379.51.93 Sanibel Causeway1,613,5171,675,1933.87,765,7568,260,8316.44.93 Total9,107,3159,462,9253.9%$ 21,958,621$ 23,557,3317.3%$ 2.49 With respect to toll revenue, systemwide revenues for the first half of FY 2014 were approximately 23.6 million—an increase of $1,598,710, or 7.3 percent compared with the first half of FY 2013. In general, revenue growth on individual facilities, as well as the overall total for the three facilities, mirrors the growth pattern in transactions. The Sanibel Causeway continues to be the largest contributor of overall systemwide revenue, while the Midpoint Memorial Bridge surpassed the Cape Coral Bridge in revenue generation over the first half of the fiscal year for the third consecutive year. This is likely due to construction on the Cape Coral Bridge during the first few months of FY 2014, which was completed in November of FY 2013. The results for the first half of FY 2013 represent a milestone in an ongoing trend that has been occurring since the end of the last recession. From FY 2007 through FY 2011, systemwide transactions and revenues persistently declined, but at a diminishing rate. However, in FY 2012, and FY 2014, transactions and revenues for the first half of the fiscal year increased over the prior year. These results reinforce the observation that conditions in the region appear to be stabilizing and returning to a modest growth pattern after a period of decline that lasted several years. Table 2 shows monthly transactions by individual facility over the first half of the current and preceding fiscal years. The individual monthly results reinforce the observation of stabilizing conditions in the region. The three facilities experienced an increase in transactions during all six months. January appears as the strongest month in terms of year-over-year growth on the Midpoint Memorial Bridge. The month with the highest year-over-year growth on the Cape Coral Bridge and Sanibel Causeway was December. There is some variation between months but the overall trend is relatively stable. Some volatility among individual months is always expected, due to factors such as changing numbers of weekdays and weekends; changes in the days when holidays occur; and nonrecurring events such as accidents and special events. It is important to note that there was an additional weekday in December 2013, which is a potential contributor to the increase in total monthly traffic in FY 2014, especially on the Midpoint Memorial Bridge and Cape Coral Bridge. FY 2014 Semiannual Traffic and Toll Revenue Report – Lee County Facilities Ms. Sue Hopwood July 29, 2014 Page 3 Table 2 Comparison of Total Transactions for First Six Months First Half, FY 2014 vs. FY 2013) Midpoint Memorial Bridge CausewayCapeCoral Bridge Sanibel Percent Percent Percent Month FY 2013 FY 2014 Change FY 2013 FY 2014 Change FY 2013 FY 2014 Change October 625,261635,1281.6% 602,231638,1106.0% 223,447 232,3374.0% November 602,173603,4760.2588,185620,0765.4241,433250,4603.7 December625,163642,9482.8594,932635,7556.9246,076262,3526.6 January632,696653,9353.4647,560674,5934.2283,643289,0601.9 February604,138620,9602.8621,563659,3756.1286,199298,2324.2 March663,922682,3372.8685,974721,0395.1332,719342,7523.0 Total3,753,3533,838,7842.3% 3,740,4453,948,9485.6% 1,613,5171,675,1933.8% Detailed Transactions by Facility While the principal factor affecting toll revenue is the quantity of transactions, this is not a one-to- one relationship. Shifts in the distribution of transactions amongst various vehicle classes and payment types/ programs will influence the result, as can sales of subscriptions to discount and unlimited transaction programs. To illustrate how these trends have played out in FY 2014, Tables 3, 5 and 7 include comparative performance statistics for the first six months of the current and previous fiscal year by vehicle class and payment type, for each of the three facilities. They are complemented by Tables 4, 6 and 8, which show the shifting market shares of particular vehicle classes and payment types. Midpoint Memorial Bridge Table 3 shows a continuation in the shift toward full fare pay-as-you-go transactions on the Midpoint Memorial Bridge. Full Fare LeeWay transactions grew by 16.2 percent, while LeeWay Variable Discount transactions grew by 16.6 percent, over the first six months of FY 2014. Over the same period, LeeWay Reduced Fare transactions declined by 3.1 percent and Unlimited transactions declined by 5.9 percent. Also, motorcycle traffic declined by 7.0 percent or 1,874 transactions. This is the second year of decline in motorcycle traffic during the first six months of the year after two years of significant growth including 19.1 percent in FY 2012 and 10.3 percent in FY 2011. Large fluctuations in recorded motorcycle traffic in past years may have been due in part to known issues with the manner in which multiple motorcycles were recorded. Lee County developed a software revision designed to automate the process with the goal of limiting errors and reducing unwarranted fluctuations in motorcycle counts. FY 2014 Semiannual Traffic and Toll Revenue Report – Lee County Facilities Ms. Sue Hopwood July 29, 2014 Page 4 Table 3 Semiannual Transactions by Payment Type and Vehicle Class Midpoint Memorial Bridge (First Half, FY 2014 vs. FY 2013) Full Fare and Variable Pricing (2-Axle) FY 2013FY 2014Change% Change Cash1,597,3331,630,81533,4822.1% Full Fare LeeWay475,659552,61676,95716.2 Full Fare LeeWay Variable Discount134,741157,17122,43016.6 Subtotal – Full Fare and Variable2,207,7332,340,602 132,8696.0% LeeWay Discounted Programs (2-Axle Vehicles) LeeWay Reduced Fare961,191930,911- 30,280- 3.2 LeeWay Reduced Fare Variable Discount257,464250,481 - 6,983- 2.7 Subtotal – Reduced Fare1,218,6551,181,392- 37,263- 3.1% LeeWay Unlimited251,998237,009- 14,989- 5.9 Subtotal – LeeWay Discounted1,470,6531,418,401- 52,252- 3.6% All Vehicles Subtotal – 2-Axle Vehicles3,678,3863,759,00380,6172.2% Motorcycles26,71324,839- 1,874- 7.0 3+ Axle Vehicles48,25454,9426,68813.9 Subtotal – Toll-Paying Traffic 3,753,3533,838,78485,4312.3% Exempt/Nonrevenue36,77836,356- 422- 1.1 Total3,790,1313,875,14085,0092.2% Table 4 shows each vehicle type and payment category from Table 3 as a percentage of total transactions on the Midpoint Memorial Bridge. This is intended to illustrate the shifts that take place in payment types and vehicle classes from year to year, as these shifts can have a noticeable impact on revenue. This information also provides useful insight into how the facility is being used and may reflect the changing economic landscape. For instance, a boom in construction typically results in a higher percentage of transactions occurring in the “3+ Axle Vehicles” category while hard economic times often result in a reduction in Unlimited and other pre-paid transaction types. The first six months of FY 2014 saw continued reductions in market share under the various prepaid discount programs, as well as cash. Pay-as-you-go LeeWay market share grew by an almost equal amount. Cash and LeeWay Reduced Fare transactions continue to represent nearly three fourths of all transactions, despite continued reductions in the market share of these categories. FY 2014 Semiannual Traffic and Toll Revenue Report – Lee County Facilities Ms. Sue Hopwood July 29, 2014 Page 5 Due to the continuing shift away from cash and discount programs toward Full-Fare LeeWay transactions, overall market share among payments types has continued to change. Overall, Full- Fare LeeWay transactions saw an increase in market share of 1.7 percentage points, suggesting that former discount program subscribers were instead opting to pay full fares.