3. ETC CUSTOMERS, BUSINESS RULES AND TOLL RATES SECTION 01.

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1 3. ETC CUSTOMERS, BUSINESS RULES AND TOLL RATES 1 SECTION 01.

2 ETC Customers Toll Rates 2

3 ETC Customers What is our business? Who is our customer? What do our customers consider valuable? Peter Drucker

4 ETC Customers What is our business? Who is our customer? What do our customers consider valuable? Sell Transportation Capacity (Finite Resource) All Willing to Pay the Toll/User Fee Time Savings Convenience Safety Reliability Peter Drucker

5 ETC Customers Registered Account Types Un-Registered Account Types 5

6 ETC Customers Registered Account Types Transponder-Based Accounts - using unique ID number(s) Pre-Paid Accounts Pre-Authorized Post-Paid Accounts Anonymous Non-Revenue Video/License Plate-Based Accounts - using identified license plate number(s) Pre-Paid Accounts Pre-Authorized Post-Paid Accounts Anonymous Non-Revenue (May include individual or multiple vehicles/fleet-type accounts) (May include individual or multiple vehicles/fleet-type accounts) 6

7 ETC Customers Un-Registered Account Types Video/License Plate-Based Accounts/Actions - using license plate numbers from image review Post-Paid Accounts Based on State/Local Laws or Rules Un-bundled or bundled trips Invoice mailed based on frequency May be billed at higher rates May include administrative fees May include time limits for payment May include late fees/penalties upon re-issue 7

8 ETC Customers Un-Registered Account Types Video/License Plate-Based Accounts/Actions - using license plate numbers from image review Post-Paid Accounts Based on State/Local Laws or Rules Un-bundled or bundled trips Invoice mailed based on frequency May be billed at higher rates May include administrative fees May include time limits for payment May include late fees/penalties upon re-issue Violations Based on State/Local Laws or Rules Un-bundled or bundled trips May include fines/penalties May include registration holds May include civil or traffic court hearings and judgements Collections 8

9 Example ETC, VTC and Violation Transaction Flow Transaction flow begins with a customer driving past an ETC tolling point. 9

10 Example ETC, VTC and Violation Transaction Flow Unreadable plates images may be retained for possible future matches. 10

11 Example ETC, VTC and Violation Transaction Flow Plate number matching goes through a waterfall with the first step being investigating a possible match to home ETC or video accounts. 11

12 Example ETC, VTC and Violation Transaction Flow Plate number matching goes through a waterfall with the first step being investigating a possible match to home ETC or video accounts. If no home toll agency matches occur, then a match with away accounts is attempted with external organizations. The order of the waterfall is based on the home agency back-office business rules. 12

13 Example ETC, VTC and Violation Transaction Flow Many agencies have a threshold for mailing a post paid invoice ($ amount or number of transactions). If the threshold is not met, the transaction may be held in a database until it is achieved. 13

14 Example ETC, VTC and Violation Transaction Flow Many agencies have a threshold for mailing a post paid invoice ($ amount or number of transactions). If the threshold is not met, the transaction may be held in a database until it is achieved. If the transaction meets rules for invoicing, the owner is identified (through a look-up), an invoice is created and mailed which allows a timeframe for payment 14

15 Example Unregistered Post-Paid Tolling and Violation Process The processing of Post-Paid Tolling and Violations places toll agencies into the RECEIVABLES business. The following examples shows the process to collect revenue and shrink receivables from unregistered using business rules. 15

16 Example Unregistered Post-Paid Tolling and Violation Process Many toll agencies place a time limit upon seeing an unregistered customer for the first time to ensure the customer does not undertake a large number of trips before the first invoice is sent. Here, the agency accumulates trips for up to seven days after first seeing the customer. 16

17 Example Unregistered Post-Paid Tolling and Violation Process The agency then sends a 1 st invoice giving the customer 30 days to pay. This invoice contains new transactions and any administrative fees associated with mailing the invoice. 17

18 Example Unregistered Post-Paid Tolling and Violation Process If the customer pays this invoice, the process would end here. 18

19 Example Unregistered Post-Paid Tolling and Violation Process If the customer does not pay, then the agency sends a 2 nd invoice containing the original transactions and fees, any new trips taken by the customer and any fees (including late fees) that may be associated with this invoice. The customer receives an additional 30 days to pay and if the invoice is paid in full, the process ends. 19

20 Example Unregistered Post-Paid Tolling and Violation Process If the customer does not pay the 2 nd invoice, the agency issues a Toll Violation Notice that contains the original transactions and fees from the first two invoices, any new trips taken by the customer and any penalties that may be associated with this notice. The customer receives an additional 30 days to pay and if the notice is paid in full (or resolved), the process ends. 20

21 Example Unregistered Post-Paid Tolling and Violation Process If the Toll Violation Notice goes unpaid, the toll agency sends the entire amount owed (and the records of the account) to an outside debt collection company. The debt collector typically has days to attempt to collect. If the customer pays, the process ends. Non payment establishes the failure-to-pay date (a Florida legal term). 21

22 ETC Example Business Rules Example Unregistered Post-Paid Tolling and Violation Process Once the account is returned unpaid from collections, the toll agency issues a formal Traffic Citation that places the case into either a civil court or judicial court hearing (traffic court). Adjudication is now in the hands of a magistrate and the judgement could result in loss of driving privileges. 22

23 Toll Rates Traditional Toll Rate Setting for Cash and ETC ETC/AET Indexed Rates AET Variable Rates/Congestion Pricing. 23

24 Toll Rates Traditional Toll Rate Setting for Cash and ETC Based on T&R Reports and Bond Covenants Based on Agency Policies/Coverage Ratios Based on Vehicle Classifications/Distance Cash Rates/ETC Rates (with or w/o differentials) Rate Increases (usually require approval) Discount Programs including HOV, fleets, volume usage. 24

25 Toll Rates ETC/AET and Indexed Rates ETC/Video price differentials Mileage-based tolls Trip tolls Annual increases based on various national indexes (like CPI) Increases can be by percentage and/or amounts Increases can be mandatory or discretionary (based on triggers). Toll Rates SunPass Toll-by-Plate Reversible Express Lanes $1.78 $2.03 East Main Plaza (78 th Street) $1.78 $ th Street $0.89 $ nd Street $0.59 $0.84 Plant Avenue $0.59 $0.84 West Main Toll Plaza $1.19 $1.44 Willow Avenue $0.89 $

26 Toll Rates AET Variable Rates/Congestion Pricing Managed Lanes (HOT and full price management) Time-of Day Pricing Congestion Pricing. 26

27 Summary ETC Customers Registered Account Types Un-Registered Account Types Example ETC, VTC and Violation Transaction Flow Example Unregistered Post-Paid Tolling and Violation Process Toll Rates Traditional Toll Rate Setting ETC/AET and Indexed Rates AET Variable Rates/Congestion Pricing Questions - Discussion 27