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2015 Long-Term Needs Study

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2015 Long-Term Needs Study TRANSFORMING THE CUSTOMER EXPERIENCE 2015 LONG-TERM NEEDS STUDY January 2016 LONG TERM NEEDS STUDY TABLE OF CONTENTS 1. INTRODUCTION.........................................................................................................................................1 2. TRENDS AND OPPORTUNITIES..............................................................................................................3 3. SCREENING AND PRIORITIZatiON......................................................................................................11 4. IMPLEMENtatiON PLAN.......................................................................................................................21 5. MOVING FORWARD................................................................................................................................23 i K-TAG – Everything’s New For nearly 20 years, the KansasLONG Turnpike hasTERM NEEDS STUDY given customers the ability to breeze through toll plazas and save money on tolls using K-TAG, the electronic toll-pay program. myktag.com This spring marked a seismic shift in the ORDER ONLINE TODAY! K-TAG program. The Turnpike marketing and Free applies to non-transferable sticker tags only. For more information visit myktag.com. communications team had undertaken a major market research project in 2013 in order to motorcyclists so those customers can now get a CHAPTunderstand whyER some Turnpike 1: travelers IN continueTRODU transferableCTI hard case tagON (which is typically $25) to use cash lanes rather than get a K-TAG. The for free when they provide a motorcycle license results were clear: Customers did not want to plate number. 1. What ispay the $15 Long for the Term non-transferable Needs “stickerStudy? tag” Another message the Turnpike heard from The 2015transponder Long Term required Needs to use the Study K-TAG (LTNS) lane. is a guidecustomers for leadership was that the K-TAGin addressing program was the too preservation, modernization and In response and beginning May 1, 2014, complex. This resulted in two major changes: The enhancementthe Kansas needs Turnpike of the Authority Kansas made Turnpike K-TAG systemtoll over discounts a 10-year for class 2 period.vehicles is Thenow 15% study for also serves as a resource for customerssticker and tags stakeholders free to all customers. to better Through understand the whyevery projects trip when drivers are selecteduse K-TAG (5%by forthe class Kansas Turnpike Authority (KTA). While newly developed myktag.com device-responsive 5 vehicles) and all new K-TAG accounts no longer the programwebsite, outlined as well as in through this staffedstudy outreach may eventschange to accommodaterequire fees or prepayment. evolving Customers customer need only and organizational needs, what will not change isthroughout KTA’s commitmentKansas, Turnpike tocustomers serving can itsnow customers. activate accounts using a credit or debit card, which activate K-TAG accounts and receive as many free gets charged monthly only for the tolls accrued. transponder tags as they have cars in which to put Customers spoke and the Kansas Turnpike 2. Why isthem. a new study needed? listened. The result is a simplified program that The KansasThe Turnpike Turnpike also Authority’s listened to a special last LTNSgroup of was conductedmakes activating in 2010 a K-TAG and account identified free and improvements easy for a 10-year period customers, motorcycle riders. The non-transferable for everyone. through 2020.K-TAG Sincesticker tagthat is time,not an KTA’sideal solution philosophy for has evolved due to changing trends, customer expectations and partnership opportunities. In response to these changes KTA updated the LTNS in 2015 to reflect its new initiatives and prioritize projects. New Partnerships Changing Trends Technology Advances In 2013, KTA and the Kansas Department of Economic conditions have improved and New technology has played a key role in KTA Transportation (KDOT) formalized their working customer usage has increased on the Turnpike service improvements. KTA can now offer partnership. Legislation gave the agencies the since the5 2010 LTNS. These trends have enhanced electronic toll collection (ETC) ability to work more closely together to deliver enabled KTA to undertake new initiatives for services through interoperability agreements. transportation solutions more efficiently. One enhancing and modernizing the Turnpike’s The ultimate goal is to provide a more seamless, of the first joint initiatives was the KTA/KDOT service capabilities. For instance, the K-TAG convenient experience for KTA customers Transportation Summit in Emporia. program was redesigned to be more convenient traveling across state lines. for customers. 3. What goals are established for the study? KTA established five goals for LTNS projects. These goals serve as guidelines for KTA leadership and staff, giving them a framework in which to make daily operational decisions and deliver longer-term capital improvement projects. IMPROVE MAINTAIN & PRESERVE Mission safety and the Turnpike system To provide safe, economical, high-quality efficiency transportation service to our customers. MODERNIZE ENHANCE Vision the Turnpike customer experience system To leverage customer-driven partnerships and technology to advance transportation BE GOOD PARTNERS in Kansas. to deliver Kansas transportation solutions 1 INTRODUCTION 4. What process was used to complete the study? The LTNS was developed through a three-phase planning process (illustrated below). This process helped KTA identify and prioritize existing and future system needs using a dozen different criteria. Projects were reviewed against known resources to determine funding strategies. The Kansas Turnpike Authority Board approved the LTNS in late 2015. PHASE ONE PHASE TWO PHASE THREE Candidate Project Identification Project Screening & Prioritization Implementation Plan Vision & Goal Setting 1. Determine Universe of Competing Project Needs Select Projects 1. Preservation Projects 2. Evaluate & Screen Projects for Program Feasibility Delivery Schedules & Phasing 2. Modernization Projects 3. Retain Feasible Projects Estimate Project Costs 3. Enhancement Projects 4. Prioritize Projects for 10-year Program Outline Funding Strategy 5. How is the LTNS organized? The LTNS is intended to be an easy-to-follow reference document that will be used regularly by KTA leadership and staff, planning partners, customers and LTNS chapters outline the other interested stakeholders. The document uses a question-and-answer style information required for the that defines technical terms and includes graphics to more easily illustrate the decision-making and prioritization LTNS process, analysis and findings. of KTA’s 10-year program; they include: Interested stakeholders can view the LTNS and executive summary online at: www.ksturnpike.com/about. • Chapter 1: Introduction – provides an overview of the study and its key purpose and goals. • Chapter 2: Trends and Opportunities – summarizes the traffic, toll revenue, safety and other trends. • Chapter 3: Screening and Prioritization – gives an overview of the projects and the process used to select and prioritize them. • Chapter 4: Implementation Plan – outlines implementation costs, schedule, expenditures and funding strategy for delivering the LTNS program. • Chapter 5: Moving Forward – provides an overview of study findings and next steps for moving forward with delivery of the 10-year program. 2 LONG TERM NEEDS STUDY CHAPTER 2: TRENDS AND OPPORTUNITIES The LTNS process includes an evaluation of recent and anticipated traffic, toll revenue, safety and other trends that can influence the improvement needs of the Turnpike system. 1. What are the recent and anticipated traffic trends for the Turnpike? Economic conditions have improved and customer usage has increased on the Turnpike since the 2010 LTNS. New electronic tolling programs focused on enhanced customer service have also resulted in significant growth for Turnpike travel, especially in the past year. The map below shows the average daily traffic on the Kansas Turnpike in 2015. Kansas Turnpike 2015 Average Daily Traffic* 1 6 1 , 9 1 6 1 4 6 9 , 1 7 3 6 , 7 , 2 , 8 8 , 1 3 Kansas City 3 2 7 0 1 3 , 7 6 3 6 2 3 !"a$ 5 (! (! !"a$ 1 Topeka (! 7 (! (! , (! (! 1 1 6 7 1 , 1 , 6 Lawre 1 nce 1 5 3 9 7 7 5 2 6 , , 2 8 3 5 1 , , , 1 4 5 9 8 6 4 4 2 8 3 3 2 3 ,9 %&d( 86 (! Ix 3,7 85 3, 824 !"`$ (! Emporia 6 ,9 8 1 6, Iz 83 !"`$ 4 7 ,0 (! 60 Average Daily Traffic 7 (one direction of travel) ,2 4 6, %&b( 7 1 93 , 6 (! 8 1 - 4,000 6 1 8 (! 8 ,0 7 4,000 - 6,500 , 8 ,0 7 8 1 9 ,6 1 0 9 4 6,500 - 9,000 6 7 (! ,6 7 1 (! ,4 9 (! 7 3 ,79 0 In 9,000 - 15,000 Wichita 8 5 (! ,69 1 (! 7, 8 3,928 431 15,000+ (! 6 ,547 12,778 (! 13,961 (! Toll Plaza/Exit 12,718 22,422 22,029 0 10 20 Miles I (! The thickness of the band shows the level of traffic on each segment. For example, segments of the Turnpike that experience heavier traffic, 1 8,20 8,080 such as between Topeka and Lawrence on I-70, have a thicker band. The traffic volumes on the (! top/left of the Turnpike are for Southbound traffic and *Fiscal Year ended June 30, 2015 (Unaudited) 3 the bottom/right volumes are for Northbound traffic. TRENDS AND OPPORTUNITIES Recent Traffic Growth Since 2010, total traffic on the Turnpike system has grown more than two percent annually. In comparison, the previous decade from 2000 to 2009 experienced an What factors contributed to average growth rate of one percent annually which can be attributed to
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