California Construction Trucking Association (CCTA)

Perhaps I have chosen the wrong song title for this month’s article. Maybe “Troubled Bridges Over our Waters” or even “Cry Me a River” would better apply. However, since I pride myself on my “oldies-but-goodies” memory bank, we will go with the original S&G hit song from 1970.

An issue that has recently grabbed my attention is the huge increase in bridge tolls in the SF/Oakland Bay Area, which took effect on July 1, 2011.

A few years ago, I attended several meetings held to discuss these proposed increases, and of course I spoke out about our (CDTOA members’) opposition to these increases. It worked at least for a while, but now we have to pay the bridge toll piper!

Could there have been a worse time to do something like this? Don’t these folks know we are in the middle of the worst recession in over 75 years? You have to wonder, has our current government ever seen a fee or tax they didn’t like or need to feed the beast?

So while they gave us a one-year exemption from the original 2010 toll increase, we have now seen these increases take place, and they are proving toxic to our small trucking business members. The higher charges are the first of a two-phase toll increase, which began on July 1, 2010 and will more than double tolls for five-axle truckers on seven state-owned bridges and the Golden Gate Bridge, which is run by a special district. Yes, just another special government district with only 800 employees, all with high salaries, great benefits, and pensions. You know, the takers!

Of course, the voters, mostly motorists with their new Priuses, Leafs, or Volts (two-axle green cars), will not be too badly affected; their tolls are currently $6 with a $1 discount for FasTrak™ on most Bay Area bridges.

The toll for a five-axle truck soared from $11.25 to $18 (60% if you’re counting) on the Bay, Antioch, Benicia, Carquinez, Richmond-San Rafael, San Mateo, and Dumbarton bridges. Less than a year from now (July 1, 2012) the five-axle truck toll rises to $25 (only a 122%). The Golden Gate Bridge, which is managed by the Golden Gate Bridge District., will charge a five-axle truck $22, up from $15 (45%). Next July, the toll will climb to a mind-boggling $30 (100%). Discounts are given on these bridges to drivers who use FasTrak.
The Bay Area Toll Authority decided to phase in the higher tolls after truckers complained over a year ago that a full increase, all at once, was unfair to transportation companies who fix their customer freight fees for extended periods—18 months or more is common practice.

I can only hope that you are working for a broker who will reimburse you for these out-of-pocket tolls in a timely manner. This should be listed on your sub-haul agreement as a (weekly or bi-weekly) re-imbursement and should not be subject to a broker fee or any other fee. 

I have discussed this with numerous brokers in the Bay Area and have learned that this is exactly how the majority of them do it. However, as is always the case, we also have some brokers who are in fact charging a broker fee on these expenses when they reimburse or settle with you whenever you agree. I would hope you aren’t being exploited and allowing this behavior.

If you are, maybe you should consider addressing it now! One of our members, for example, is currently on a haul which takes him across the Richmond/San Rafael Bridge eight times a day, for a daily cost of $144.00. He is working for a broker who promises to reimburse him, but is charging a 7% broker fee, and includes that fee for an additional $201.60 for his bridge tolls. When I was told this, my response was, “Are you kidding me?” He said no, and I said why?

I believe it is only a matter of time until, after crossing these bridges numerous times a day, most small trucking companies with tight cash flow will find their business model unsustainable.

We are all certainly aware that living in California once had many advantages, but more and more our state has mostly disadvantages to offer. There’s the loss of value in our homes (with no end in sight), unemployment at 12%, and regulations that are strangling our businesses wherever we turn. From CARB’s truck replacement rules to overpriced diesel to contractors bidding work too cheaply and stiffing all the subs, including the trucker, as they go. We are seeing the tipping point that will have to force change for our industry.
So, how in the world did these cities, the state, and the bridge districts and authorities justify raising these tolls, especially to these astronomical levels?

Well, according to the Bay Area Toll Authority, “this comprehensive toll increase package is needed to finance seismic retrofits of the Antioch and Dumbarton Bridges and will offset the increased cost of debt financing (borrowing) resulting from financial market turmoil that began in 2007. And to offset reduced toll revenue stemming from fewer vehicles crossing the bridges for several years.”

Isn’t anyone a little offended by all this mismanagement by our local government? First they say it’s for seismic retrofits, and then they blame financing costs because our credit ratings are so abysmal here, and then have the nerve to fess-up and explain in their usual tortured manner that because the tolls are so high, fewer people are using the bridges, and therefore (they) will have to charge those that do more—a lot more! And truckers? Sure, we’ll really screw them because they can just easily pass their costs onto their customers and their customers can pass them on – the uber-rich Bay Area residents!

Hey there, Toll Authority and Bay “Special” District, we in the trucking business also have some issues with debt financing. We have a lot of debt and no financing. Anyone tried going to the bank lately for a loan? Our credit cards are maxed out, there is no such thing as a home equity loan, so it looks like the only option for paying bridge tolls is to not make the house payment or pay the other bills, and to hope and pray that your check arrives from your broker on time. To pay a broker fee on this is, in my opinion, absurd, and if this is happening to you, I hope you will speak up and get it stopped.

At some point it may be necessary to approach the contractors and ask for their help with the FasTrak electronic toll collection program, as I do not see any possible way for a large majority of our truckers to continue paying these high tolls and then wait for the reimbursement.

I had a haul years ago (when I trucked) and had to cross the new Carquinez Bridge numerous times a day. It seems petty to even mention it now, as my toll for a 3-axle dump truck was $4, but it added up. The contractor did purchase script for us and handed them out daily, but script is now a thing of the past, being replaced by FasTrak.

I leave you with this: Realize that it is every bit as important to be a good business person as it is to know how to drive a truck. Read those sub-haul agreements thoroughly (there are some real doozie agreements out there today). You need to protect yourself, and the only way to do that is to educate yourself. That’s part of the reason why CDTOA is here!