All-electronic toll system prepared for 2012

Mention tolls and many drivers think of waiting in line to shove bills or coins at an attendant in a traffic-snarling booth.

Not so for the tolls that are all but a done deal for the Midtown and Downtown tunnels. The tolls will help pay for a second Midtown tube and for upgrades to the Downtown Tunnel.

By late next year, construction is expected to be under way - and so will toll collections. But the collections will be virtually invisible.

Using E-ZPass, vehicles will move at normal speeds under what's known as a gantry - a simple overhead structure with electronic readers that will debit a driver's prepaid toll account. Cars will be equipped with a transponder, a small box mounted on the windshield containing a computer chip with a unique identification code.

Don't have a transponder? A camera will snap a photo of your license plate and send a bill for the toll - plus a processing fee.

No toll booths. No cash payments. No delays.

That may be of some consolation to residents who are anxious about the return of tolls between Norfolk and Portsmouth.

"About eight of 10 people I talk to think there will be toll plazas and slowdowns," said Tony Goodwin, president of the Portsmouth Council of Civic Organizations. Last week, the group hosted representatives of the state highway department and the private consortium that will build and operate the new tunnel at a meeting.

The state is close to completing a $2.5 billion agreement with Elizabeth River Crossings LLC to build a parallel Midtown Tunnel, extend the Martin Luther King Freeway, make structural and mechanical upgrades at the Downtown Tunnel, and maintain the facilities for 58 years.

The private group, led by Skanska Infrastructure Development Inc. and Macquarie Financial Holdings Limited, has worked with the Virginia Department of Transportation more than three years to develop a project and a financial agreement.

The all-electronic tolling system will be the first in Virginia. Tolls are collected electronically on seven other highways in Virginia, but a cash option at toll booths is offered as well.

Tolls in Florida, Texas and Maryland already have all-electronic systems. Others are under development, David Boss, a project manager and engineer for Skanska, said in a phone interview. "It's a trend in the industry."

Boss said the Midtown/Downtown project cannot be built with traditional tolling.

"The idea of the project is to relieve congestion," he said. "Without all-electronic tolling, that would be nearly impossible."

Visitors to the area or residents who are unaware of the toll and don't have E-ZPass will still be assessed, only by mail. A camera mounted on the gantry will photograph license plates as cars and trucks pass. Vehicle owners without an active transponder will be sent a bill in the mail for the toll, plus a processing fee. While the fee has not been set yet, it will probably not exceed $3, Boss said.

Boss said fees may be waived for first-timers who then sign up for E-ZPass.

"We'll want to give people a chance to pay without being a violator," Boss said. "We want to build good will and give people a chance to pay.... We want people to be customers."

Frank Fabian, Virginia Department of Transportation senior project manager, said Elizabeth River Crossings plans to roll out an extensive marketing campaign for E-ZPass.

Motorists will be urged to set up E-ZPass accounts on the Internet, by toll-free phone or possibly at customer service centers. The minimum payment is $35 plus a $25 security deposit per transponder. The security deposit is waived if you choose to use automatic replenishment through a bank account with a backup credit card.

Ryan Pedraza, a program manager for the Office of Transportation Public-Private Partnerships, said details are still being worked out to provide walk-in outlets for E-ZPass.

Elizabeth River Crossings plans to erect the toll gantries on the Portsmouth side of each tunnel because the ramp configurations on the Norfolk side would make placement there more difficult, Boss said.

Goodwin said he worries about perceptions from that placement: "It will appear you're being charged to come into Portsmouth."

Even so, motorists moving in either direction, into Norfolk or Portsmouth, will pay the toll.

"To me, people don't have a choice - you're going to have to pay it or else you're not going to be able to get to your job," said Tanya Hodnett, of Churchland, whose husband commutes to Norfolk for work. "It's going to be a significant part of our budget."

The state expects to sign contracts with the private developers early next year. They had hoped to conclude the deal by the end of this year, but they're awaiting word from federal authorities on a competitive low-interest federal loan for which they're among a handful of finalists. The contractual delay, they said, will not delay the schedule.

The state and the developer are confident they'll be approved for a $422 million loan, which is critical for keeping tolls at the proposed levels. The state will contribute $395 million toward construction, and the remainder will be covered by private capital and toll collections.

Toll rates would initially be set at $1.59 off-peak and $1.84 during peak hours for cars using the Downtown and Midtown tunnels and $4.77 off-peak and $7.36 during peak hours for trucks. Tolls would be collected when construction starts sometime in the second half of 2012. Tolls on the Martin Luther King Freeway extension would be $1, or 50 cents for cars that used either of the tunnels. That toll would be collected only on the new section when it opens.

Rates will escalate over time, starting when substantial construction is complete in 2016. Increases would then be annual and limited to the greater of 3.5 percent or the Consumer Price Index.

The entire project would be done in 2017.

If the federal loan is not secured, tolls would have to be raised, the state's contribution would have to increase, or the scope of the project would have to be reduced so it's less expensive.

"We're very optimistic the loan will come through," said Dusty Holcombe, deputy director of the Office of Transportation Public-Private Partnerships.

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com