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Evaluating Pricing Strategies:
Application of the San Francisco Regional Pricing Model




                              Jesse Koehler, Transportation Planner
                                          TRB Annual Meeting 2010




       SAN FRANCISCO COUNTY TRANSPORTATION AUTHORITY
                       January 12, 2010
Overview

The Project
   San Francisco’s Mobility, Access, and Pricing Study (MAPS)

The Tool
   SFCTA Nine-County Regional Pricing Model (RPM-9 / CHAMP 4.0)

The Approach

The Upshot
   Lessons learned for modeling and planning practice
The Setting – San Francisco Bay Area
                           9 counties
                           101 cities
                           7.2 million people
                            (2006)
                           Highest per capita
                            income of any metro
                            area in the US
                           7,000 sq mi (1,120
                            urbanized)
Bush St, midday (Jan 2009)
Bush St, 8 am (Jan 2009)
3rd St, 8 am (Jan 2009)
Stockton St, 5 pm (Jan 2009)
Franklin St, 9 am (Jan 2009)
Divisadero St, 8 am (Jan 2009)
Stanyan St, 9 am (Jan 2009)
View from Treasure Island | Skyline today
Courtesy, SF Planning Department
View from Treasure Island | Approved Plans
Courtesy, SF Planning Department
View from Treasure Island | According to the Transbay Plan
Courtesy, SF Planning Department
MAPS – Context and Rationale

Countywide Transportation Plan
    Forecast increasing motorization; declining transit performance
    Called for further analysis of pricing to manage demand, raise funds
Regional and national trends and support for pricing policies
Local, regional, and state goals for:
    Transportation system management
    Economic competitiveness
    Core-focused regional growth
    Greenhouse gas reductions
MAPS – Key Questions

Is congestion pricing feasible and appropriate for San Francisco?
    System performance and network improvements
    Public acceptance and education
    Program costs and economic impacts
What are the characteristics of a potential pricing program?
    Geographic extent (zone boundary)
    Charge type (area vs. cordon)
    Pricing policy (fee level, time-of-day variance, discount policies)
Who pays?
How are individual travel behaviors forecast to change (or not)?
SF-CHAMP 3.0

Previous version of the SFCTA travel demand model
One of the first activity-based models used in practice
    Major investment studies
    Countywide planning
    New Starts forecasting


Lacked key capabilities required by the MAPS team
    Geographic extent
    Pricing representation and sensitivity
The Tool: Regional Activity-Based Pricing Model
RPM-9, aka CHAMP 4.0
Model improvements:
   Added feedback loops
   Expanded geography
   Explicit toll choice model
   Accessibility (mode choice logsums)
   Time-of-day choice (peak-spreading)
   Values of time (stated preference survey)
   More rigorous highway assignment; region-wide transit path building
   Charge type (area vs. cordon) and discount logic
   Computing power (“Can I have this tomorrow?”)
Approach to Model Development and Application
Develop the model in parallel with the planning study
    Three-phase model development process
    Deployable tools of increasing utility
    Iterate in tandem
Single team of planning and modeling staff
    Modelers invested in planning outcomes
    Planners knowledgeable regarding capabilities and limits of model
Customized output summaries and processing tools
    Run results available to planners in a consistent (but growing) format
    Planners understanding of activity model encourages tough questions
    Planners develop tools to further analyze/process model outputs
Disaggregate Results – Power and Peril
Facilitate key summaries at various levels/types of aggregation
Model directly informs multiple elements of feasibility analysis:
    Toll policy: what is the preferred shape, size, and fee structure?
    Revenue: transaction volume; impact of discounts
    Equity: who pays? how are low-income and zero-car HHs affected?
    Congestion mitigation: system performance (corridor, zone, city, region)
    Reinvestment: what is the impact of network improvement packages?
Every model has its limits, and sound planning judgment always applies
    Fully disaggregate results tempered by awareness of model’s capabilities
    Planners must keep in mind that outputs are not “data” in the strict sense
Scenario Comparison
                      A good toll policy:
                          Obtains mobility objectives
                          Minimizes impacts




                      Many policies we examined had
                      major pros AND major cons and
                      were eliminated from consideration.
Potential Scenarios for SF
                  


                                            




                             Congested Transit Segment
      Congestedwith
       Gateway
         Downtown
         Northeast
          Double             (travel speed below 8 mph)
      Streets in SF
      Parking Pricing
          Cordon
            Ring             Congested Auto Segment
                             (highway speed below 30 mph
                             road speed below 10 mph)


                                 
Scenario Comparison
Percent Difference in PM Volume



                                  Is somewhere in the
                                  middle just right?
Conclusion and Lessons Learned

Integrated team of planners and modelers integral to success
Sub-24 hour run-time crucial to extensive scenario testing approach
Understanding of model prompts planners to ask important questions
    Residential location, income level, geographic variations, modal impacts
Flexible/tailored summaries are of enormous value to all on team
Planners always want more from models
    These questions/requests help guide future model improvement efforts
Status of Congestion Pricing
   Summer/Fall 2009 Finalize study analyses
                        Refined transportation improvements
                        Pricing policy, discount policy
                        Economic analysis
                        Coordination with related efforts

   Study Timeline, Next Steps
                        Fourth round of public outreach (winter)
                        Board action (spring)
                        Potential next steps
                             Design & System Planning
                             Legislative Authority
                             Environmental Clearance
Thank you

          Jesse Koehler, Transportation Planner
          jesse.koehler@sfcta.org


          Co-Authors:
          Elizabeth Sall, Zabe Bent, Billy Charlton – SFCTA
          Greg Erhardt – PB




   SAN FRANCISCO COUNTY TRANSPORTATION AUTHORITY
                    January 12, 2010

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Evaluating Regional Pricing Strategies in San Francisco - Application of the SFCTA Activity-Based Regional Pricing Model

  • 1. Evaluating Pricing Strategies: Application of the San Francisco Regional Pricing Model Jesse Koehler, Transportation Planner TRB Annual Meeting 2010 SAN FRANCISCO COUNTY TRANSPORTATION AUTHORITY January 12, 2010
  • 2. Overview The Project San Francisco’s Mobility, Access, and Pricing Study (MAPS) The Tool SFCTA Nine-County Regional Pricing Model (RPM-9 / CHAMP 4.0) The Approach The Upshot Lessons learned for modeling and planning practice
  • 3. The Setting – San Francisco Bay Area  9 counties  101 cities  7.2 million people (2006)  Highest per capita income of any metro area in the US  7,000 sq mi (1,120 urbanized)
  • 4. Bush St, midday (Jan 2009)
  • 5. Bush St, 8 am (Jan 2009)
  • 6. 3rd St, 8 am (Jan 2009)
  • 7. Stockton St, 5 pm (Jan 2009)
  • 8. Franklin St, 9 am (Jan 2009)
  • 9. Divisadero St, 8 am (Jan 2009)
  • 10. Stanyan St, 9 am (Jan 2009)
  • 11. View from Treasure Island | Skyline today Courtesy, SF Planning Department
  • 12. View from Treasure Island | Approved Plans Courtesy, SF Planning Department
  • 13. View from Treasure Island | According to the Transbay Plan Courtesy, SF Planning Department
  • 14. MAPS – Context and Rationale Countywide Transportation Plan Forecast increasing motorization; declining transit performance Called for further analysis of pricing to manage demand, raise funds Regional and national trends and support for pricing policies Local, regional, and state goals for: Transportation system management Economic competitiveness Core-focused regional growth Greenhouse gas reductions
  • 15. MAPS – Key Questions Is congestion pricing feasible and appropriate for San Francisco? System performance and network improvements Public acceptance and education Program costs and economic impacts What are the characteristics of a potential pricing program? Geographic extent (zone boundary) Charge type (area vs. cordon) Pricing policy (fee level, time-of-day variance, discount policies) Who pays? How are individual travel behaviors forecast to change (or not)?
  • 16. SF-CHAMP 3.0 Previous version of the SFCTA travel demand model One of the first activity-based models used in practice Major investment studies Countywide planning New Starts forecasting Lacked key capabilities required by the MAPS team Geographic extent Pricing representation and sensitivity
  • 17. The Tool: Regional Activity-Based Pricing Model RPM-9, aka CHAMP 4.0 Model improvements: Added feedback loops Expanded geography Explicit toll choice model Accessibility (mode choice logsums) Time-of-day choice (peak-spreading) Values of time (stated preference survey) More rigorous highway assignment; region-wide transit path building Charge type (area vs. cordon) and discount logic Computing power (“Can I have this tomorrow?”)
  • 18. Approach to Model Development and Application Develop the model in parallel with the planning study Three-phase model development process Deployable tools of increasing utility Iterate in tandem Single team of planning and modeling staff Modelers invested in planning outcomes Planners knowledgeable regarding capabilities and limits of model Customized output summaries and processing tools Run results available to planners in a consistent (but growing) format Planners understanding of activity model encourages tough questions Planners develop tools to further analyze/process model outputs
  • 19. Disaggregate Results – Power and Peril Facilitate key summaries at various levels/types of aggregation Model directly informs multiple elements of feasibility analysis: Toll policy: what is the preferred shape, size, and fee structure? Revenue: transaction volume; impact of discounts Equity: who pays? how are low-income and zero-car HHs affected? Congestion mitigation: system performance (corridor, zone, city, region) Reinvestment: what is the impact of network improvement packages? Every model has its limits, and sound planning judgment always applies Fully disaggregate results tempered by awareness of model’s capabilities Planners must keep in mind that outputs are not “data” in the strict sense
  • 20. Scenario Comparison A good toll policy: Obtains mobility objectives Minimizes impacts Many policies we examined had major pros AND major cons and were eliminated from consideration.
  • 21. Potential Scenarios for SF   Congested Transit Segment Congestedwith Gateway Downtown Northeast Double (travel speed below 8 mph) Streets in SF Parking Pricing Cordon Ring Congested Auto Segment (highway speed below 30 mph road speed below 10 mph)  
  • 22. Scenario Comparison Percent Difference in PM Volume Is somewhere in the middle just right?
  • 23. Conclusion and Lessons Learned Integrated team of planners and modelers integral to success Sub-24 hour run-time crucial to extensive scenario testing approach Understanding of model prompts planners to ask important questions Residential location, income level, geographic variations, modal impacts Flexible/tailored summaries are of enormous value to all on team Planners always want more from models These questions/requests help guide future model improvement efforts
  • 24. Status of Congestion Pricing Summer/Fall 2009 Finalize study analyses Refined transportation improvements Pricing policy, discount policy Economic analysis Coordination with related efforts Study Timeline, Next Steps Fourth round of public outreach (winter) Board action (spring) Potential next steps Design & System Planning Legislative Authority Environmental Clearance
  • 25. Thank you Jesse Koehler, Transportation Planner jesse.koehler@sfcta.org Co-Authors: Elizabeth Sall, Zabe Bent, Billy Charlton – SFCTA Greg Erhardt – PB SAN FRANCISCO COUNTY TRANSPORTATION AUTHORITY January 12, 2010