NDOT to hold open house on I-15, U.S. 95 toll lanes

By Jeff Pope

Thursday, March 5, 2009 | 10:18 a.m.

At a time of diminished state revenues, the Nevada Department of Transportation has a new idea for funding construction — let someone else pay for it.

NDOT is floating its idea to residents for a private-public partnership as a way to build the proposed toll express lanes on Interstate 15 and U.S. 95.

The state agency is hosting an open house on its I-15/U.S. 95 Demonstration Project at the YMCA Centennial Hills, 6601 N. Buffalo Drive, from 4 to 7 p.m. tonight.

The partnerships are long-term contracts between the government and private companies as a way of funding water projects, hospitals, roads, schools and power plants without taxpayer money.

The private investor would fund all of the construction, collect tolls and maintain the lanes for the duration of the contract with the state. In exchange, the state would have oversight on compliance of designs and laws and possibly receive a percentage of the tolls through a revenue sharing program.

The partnerships have been successful in other cities, because projects can be done faster and often to higher standards than government-built projects, said Andy Garbutt, managing director of KPMG, financial adviser for the project.

Infrastructure projects are less risky than other business ventures, because investors know the enterprises are long term and the public will use them, he said. And because the private operator would make money only on tolls, it would be motivated to ensure traffic flowed smoothly and safely.

“Because the only repayment source for debts that the (company) has comes from the revenues that are generated from tolls, the bankers are actually the friends of the public sector,” he said. “They wield the big stick.”

The private partnership could make up the difference in lost revenue from gas taxes and save taxpayers the projected $1 billion price tag to build the express lanes.

“We used to be over-relying on the gas tax to fund all of our improvements. That’s no longer a reliable source and I don’t think it will ever be the same,” said Jenica Finnerty, NDOT senior project manager.

The new express lanes will be free to transit buses, emergency vehicles and preregistered carpools with three or more passengers. Solo drivers and vehicles with less than three occupants who use the new lanes will be charged a toll.

As cars pass under signs on the toll lanes, a transponder located behind the rearview mirror would register the use and deduct the current charge from a prepaid account.

The private entity would set toll fees, which would rise with congestion in the express lanes.

When the lanes are completed, traffic could navigate the 19 miles of the project from the McCarran International Airport to Ann Road in 20 minutes at 55 mph.

The lanes would have dedicated flyover ramps at interchanges at Interstate 215, the Spaghetti Bowl and Summerlin Parkway.

“They can fly up and over from the middle of I-15 to the middle of 95,” Finnerty said. “Today you have to merge all the way over to the right, hit the exit and then merge back in with traffic. All of that goes away.”

The project also would include direct-connecting ramps from the express lanes to Oakey Boulevard, Harmon Avenue and Hacienda Avenue to provide access to employee parking at Strip resorts.

Before anything can happen with the project, the State Legislature must enact a bill allowing the state to charge tolls and use video cameras to catch those who don’t pay.

The proposed law is still a bill draft that should be introduced within the next week, Finnerty said.

Law enforcement agencies have tried to get a bill passed to allow traffic cameras for enforcement several times with limited success. Cameras can be used only to enforce traffic laws if held by an officer or mounted in a police vehicle.

The legislation would allow cameras only for this project and would make sure cheaters pay, Finnerty said.

“You don’t ever want to be paying for something knowing the person in front of you got in for free,” she said.

NDOT also wants the toll system to be compatible with those in neighboring states and is studying the possibility of adding the transponders in rental cars.