Balancing Equity and Efficiency: The Case for Congestion Pricing on Highway 37.

 "Road Pricing in Singapore."

© 2007 VK35.

CC BY-SA 3.0.

via Wikimedia Commons.

Highway 37 is once again making headlines. A recent article by Susan Wood for The North Bay Business Journal announced that the California Transportation Commission has endorsed a Metropolitan Transportation Commission proposal to institute a toll on State Route 37. The exact toll figure is yet to be established, but it's expected to reflect the $7 charge for San Francisco Bay Area bridges, projected to rise to $8 by 2025. The toll approval includes two amendments, namely regional income-based discounts and revised guidelines for toll hearings. The projected toll's purpose is to help fund the $430 million expansion of the highway, currently carrying over 35,000 vehicles per day, predominantly from Solano County and the City of Vallejo.

The toll implementation on Highway 37 should consider the integration of a congestion pricing system, where fees vary based on traffic volume. This approach addresses several critical policy principles. Higher charges during busy hours promote vertical equity, as those choosing to drive at such times are often more financially able. It might also enhance efficiency by discouraging traffic during peak times, facilitating more effective highway use. Despite being more intricate than a single flat toll, current technology can simplify comprehension and compliance with variable pricing. Revenue sufficiency might be amplified by earning more during peak periods, contributing to highway upgrades. Congestion pricing might spur economic growth by reducing traffic and rendering the highway more attractive to businesses and commuters. It may also be more politically acceptable than a flat toll, as it provides drivers the option to evade higher costs by traveling during quieter periods. This approach's potential improvements in efficiency and equity might enhance the overall effectiveness of the toll policy. Hence, the adoption of congestion pricing for Highway 37 could better align with the tenets of an effective and fair policy, optimize the highway's efficiency, and secure the required revenue for its upgrades.

In contrast, a flat toll without supplemental congestion pricing has inherent shortcomings. While it exhibits horizontal equity by holding all drivers equally responsible, it lacks vertical equity as it is uniformly applied regardless of income. Public acceptability varies, with some considering it essential and others protesting the increased commuting cost. The toll is intended to cover a substantial portion of the $430 million needed for road enhancements, but a $250 million funding shortfall suggests potential insufficiency. Without price signals to enhance roadway efficiency or encouragement for better usage, a flat toll may prove deficient in areas like vertical equity and revenue sufficiency. Consequently, it could be less politically viable.

Potpourri for Friday, May 19, 2023.

"CA-37 at Sears Point."

© 2007 Aztecrosales.

CC BY-SA 3.0.

via Wikimedia Commons.

The Thursday edition of the Press Democrat headlined three stories, each focusing on local roadway issues. The first, by Susan Wood, reported that the Metropolitan Transportation Commission had unanimously agreed to impose a toll on California's State Route 37. The toll aims to generate funding for upcoming enhancements to the highway. These include adding a lane and raising the entire route to combat flooding. The widening project, costing $430 million, and a $6 billion flood prevention initiative are due to start in 2025 and will span multiple years until completion. However, it's important to note that no plans have been formulated to manage potential increased traffic on the Napa River Bridge, a possible alternative route for those wishing to avoid the toll.

Madison Smalstig wrote about commencement of a $29 million repair program targeting nearly 50 miles of Sonoma County roads. The project, planned for this summer, involves paving, sealing cracks, and removing vegetation to address the poor conditions of these roads. Despite over $203 million invested in the past, the overall condition of the county's extensive 1,368-mile road network has only marginally improved. To elevate the roads to a "good" to "very good" standard, the county estimates a necessary investment of $954 million over two decades, amounting to about $47.7 million annually. The topic of road financing issues and the subpar condition of Sonoma County's roads has been a recurring theme on this blog.

Lastly, Amelia Parreira describes a new development in Petaluma. The City Council gave a green light to proceed with the proposed Caulfield crosstown connector bridge. Estimated to cost $48.5 million, the project involves the construction of a 300-foot movable bridge over the Petaluma River. Expected to be operational by 2026, the bridge will improve citywide connectivity and reduce traffic congestion. It will not only serve drivers but also provide a more accessible route for pedestrians and cyclists. Given the longstanding bottleneck at D Street and the peculiar layout near the 101/116 interchange in Southern Petaluma, the construction of this bridge, first proposed in 2006, seems like a logical solution. This highlights the prolonged timelines all too often required to implement meaningful transportation projects in Sonoma County.

Santa Rosa's Caritas Homes: Addressing the Housing Crisis Amid Fairness Concerns.

 Mural by Christopher Statton and Megan Wilson, 2015

© Ponderosa Templeton 2017

CC BY-SA 4.0

via Wikimedia Commons.

Sarah Edwards of the Press Democrat writes today about new housing in Santa Rosa. Tenants will soon be selected to fill 33 affordable apartments in downtown Santa Rosa, as part of Burbank Housing's two-phase Caritas Homes development. The project aims to provide 126 units in total to address the housing shortage in North Bay. The first building of the Caritas Homes development is set to be completed by July 1, with half of the first phase's residents being chosen through an April 21 lottery and the remaining units allocated for those experiencing homelessness. The development will be located at 340 and 360 Seventh St., catering to households earning between 40% and 60% of the area median income or those with a Sonoma County Housing Choice Voucher or Section 8 voucher.

Caritas Homes will consist of two identical buildings, each with 63 units, offering studio, one-bedroom, and two-bedroom apartments. The first 30 units in each building will be reserved for people experiencing homelessness. The development will also feature a secured parking garage, indoor community room, outdoor gathering space, and indoor bicycle storage. The first building cost $44 million to build, while the second will require $47 million due to inflation and rising construction costs.

Sonoma County behavioral health services and Catholic Charities will be available to support tenants who were previously homeless. The project, which provides around 90 units per acre, is different from the existing construction in downtown Santa Rosa. The development was initiated in response to the chronic housing shortage, which was further exacerbated by the 2017 Tubbs Fire, destroying 5,000 housing units in Sonoma County.

Two items struck me about this article. Firstly, the development doesn't look like 90 units per acre at all; instead, it looks attractive and friendly, with a mix of two, three, and four-storey elevations. The architects should be commended for that. Secondly, a more challenging and emotional point is that housing allocation is being determined here by a lottery system. Deciding where someone lives is a very high-stakes matter to decide on chance. The article mentions that around 10,000 people are on waiting lists for housing in the county, and nearly 3,000 are homeless. In a society that emphasizes distributive justice, resources should be allocated unequally only to the extent that it benefits the least advantaged members of the community. Instead of a lottery system, a  better way would involve assessing needs and prioritizing those in the most vulnerable situations. Only then will our shared sense of fairness be addressed, one of the crucial requirements of any effort to address our housing crisis.

Carriage Court in Santa Rosa.

"A mobile home park in West Miami, Florida"

By Dr Zak 

https://tinyurl.com/22c4uctp

In Wikipedia, CC BY-SA 3.0

https://tinyurl.com/2y9chhga 

Carriage Court, a mobile home park for seniors in Santa Rosa, it is reported today by the Press Democrat's Marisa Endicott, is being converted to an all-ages park by new management company Harmony Communities. The company claims that the change is necessary for the park to stay afloat and make a profit. However, residents are concerned about potential displacement and culture shift, as many of them rely on fixed incomes and have limited options if costs increase. The change comes in response to Santa Rosa's new mobile home rent control ordinance, which limits how much park owners can raise rent, according to Nick Ubaldi, regional manager for Harmony Communities. 

Residents are also worried about Harmony Communities' track record of litigation over evictions and rent increases. The company is involved in multiple lawsuits across the state and has a reputation for strict rule enforcement and eviction attempts. The Golden State Manufactured-home Owners League has noted that Harmony's "reputation is terrible." The director of communications for Harmony Communities identifies as a crude epithet, Heywood Jablóm, a false name and a classic sign of a bad actor. Indeed, Mariah Thompson, a staff attorney with California Rural Legal Assistance, noted that Harmony Communities will "often just see what they can get away with[.]” 

Mobile home parks, especially in American culture, are stereotypically viewed as lower-income housing for occupants living at or below the poverty line who have low social status. As Wikipedia notes, despite the advances in trailer home technology, the image survives. Residents, especially the elderly, can be targets for unscrupulous business practices. 

Here, Ubaldi is contending that an updated rent control ordinance, designed to protect senior citizens, is in fact the source of senior citizens' distress. This is an obvious attempt to reverse victim and offender, which is harmful to the democratic process, beyond the specific harm it inflicts on the residents of Carriage Court. Sowing confusion and undermining accountability only weakens the norms we all rely upon to effectively address our housing crisis, which is bad and getting worse. Ideas, like housing, are more of a public good, like a forest, than a commercial context, like a marketplace.  We all must recognize that public discourse is vulnerable to the same damage that can be suffered by the woods should the balance between individual advantage and long-term sustainability be violated callously.

The Mandela Rules.

Nelson Mandela. (1994, Oct. 4).

© John Mathew Smith 2001

Use by Permission, Wikipedia.

Approximately 90 inmates at the Sonoma County Main Adult Detention Facility (the county jail, sometimes abbreviated "MADF") recently participated in a 10-day hunger strike (Press Democrats, paywalled) to demand more time out of their cells, improved visitation hours, and lower commissary costs. The strike was initiated by the G module on March 23, whose out-of-cell time is limited, sometimes to an hour or less each day, which family members and friends say is insufficient for them to shower, make calls, or prepare meals from commissary items. Visitation and communication have also been impacted, with limited hours and staff shortages affecting both visitation and out-of-cell time. 

The jail has faced previous criticism for its management of inmate communication. A June 2021 civil grand jury investigation revealed high phone call costs and commissary markups. It also noted that there had been a diversion of funds intended for jail programming to staff salaries and other purposes.

As Nelson Mandela observed, "[n]o one truly knows a nation until one has been inside its jails. A nation should not be judged by how it treats its highest citizens, but its lowest ones." Sonoma County should strive to meet the standards set by the Nelson Mandela rules. The grand jury investigation and the hunger strike have brought attention to at least six separate rules (22-23, 42-43, 58, 103) that appear to have been violated in this area. 

Addressing these issues benefits the whole County, as maintaining a fair and just society requires the even-handed administration of the jail. This is widely recognized -- The California Democratic Platform, for example, acknowledges that family support is a key factor in determining the success of a person once they are released from prison. By investing in programs that facilitate visitation, communication, and re-entry planning, we can help improve the overall well-being of those affected by incarceration. This approach not only benefits the individuals and families directly involved but also contributes to a stronger and more resilient community.

Ultimately, the legitimacy of all our institutions hinges on their ability to treat everyone fairly, regardless of their social standing. Ensuring that Sonoma County adheres to the Nelson Mandela rules is a step toward fostering a more compassionate and just society. By addressing the grievances highlighted in the grand jury investigation and hunger strike, we can work together to create a future where every Californian's rights are respected and upheld. This will only serve to strengthen our communities and promote the values of fairness, equality, and justice.

Grayer Angels.

Kim, Richard. (2012, June 22). The Nation. 

https://tinyurl.com/2j3vyfvu

In a recent Press Democrat article, Phil Barber discusses Braver Angels, an organization run and co-founded by David Blankenhorn, who was a proponent of Proposition 8, which was designed to ban same-sex marriage. Notwithstanding that, the article seeks to present Braver Angels in a positive light, discussing a recent meeting held in Petaluma. But Barber fails to address Blankenhorn's past actions, which may contribute to the very polarization the organization seeks to remedy.

Some background on Blankenhorn's work illuminates the issue. As Richard Kim noted in his piece in the Nation, Blankenhorn's Institute for American Values "has attacked single mothers, championed federal marriage promotion as welfare policy, railed against cohabitation and no-fault divorce, and opposed access to new reproductive technologies. One of his institute’s latest crusades has been against anonymous sperm donors (because they lead to “fatherless” children, an abiding preoccupation of his)." This amounts to a comprehensive assault on some of the most powerless groups in our society, with little evidence to support the positions themselves.

The article takes a one-sided approach to highlighting Braver Angels' stated mission to bridge the political divide through dialogue, empathy, and understanding. With 92 chapters and events in all 50 states, the organization seems to target an older demographic, as evidenced by its appeal to the rapidly growing gray population in America. However, this approach has obvious limitations with younger generations, who face unique challenges and navigate their social and political lives through social media and identity-driven communities.

Young people today grapple with unprecedented economic hurdles and may feel alienated by Braver Angels' workshops, which cater to an older generation that enjoyed greater economic stability. Participating in these workshops could very well exacerbate young people's feelings of financial insecurity and anxiety. Furthermore, young people often engage with political discussions through the lens of their identity, which they defend and support in online communities. Braver Angels' approach, then, might feel more like (and might indeed be) an attempt to dismantle a protective shield rather than extend a hand of understanding. There are some members of the local community, such as Mary Munat, who are involved in the organization, who are trusted, and who I think mean well. But given the group's president's past and continuing actions, and the fact that nearly 10% of the money raised by the organization goes directly to Blankenhorn, it is tough to see how such concerns can be mitigated. 

Acknowledging the unique challenges faced by younger generations, such as economic insecurities and the importance of identity, is critical in seeking to create a more inclusive and resonant political discussion. Only then can we genuinely bridge the troublesome divide that so many have come to recognize is our central challenge to furthering public trust, without which all efforts in government come to naught. 

@econbartleby and @billswindell at @TheEconomist and @NorthBayNews, respectively.

As I lamented the result from St James' Park this morning, I looked for an insightful article from The Economist. A nice part of focusing on one piece is the chance to learn about the writer. Knowing these journalists grow up and live in a certain context humanizes them. For example, I ran across a piece by Motoko Rich of the New York Times a few years ago, and was surprised to find she grew up in the small town literally next door in Sonoma County.

Philip Coggan

available at https://shrtm.nu/EYpO

So, today, it's the Bartleby columnist, Philip Coggan. He's a graduate of Sidney Sussex College, one of the constituent colleges at Cambridge University. His work at the Financial Times, authorship of several books, and awards won belies his skill, but details on his person are scarce. He has a feed at Medium, though, where his words on the loss of a pet say much. It recounts how he, his daughter, and his wife said goodbye, recalling Philip's loss of his own father as a child:

"We take small pleasures from our pets. The purr of a cat as it is stroked; the excitement of a dog as it chases a ball; the occasional bursts of madness as a cat attacks a piece of string or a dog chases its own tail. They create a rhythm to the day; the morning feed, the afternoon walk, the night-time arrival of cat on bed, eager for shared bodily warmth. And there is satisfaction from a relationship that is so uncomplicated; in return for food and affection, the dog or cat will stay around. There are no arguments; no sudden estrangements. These small joys help us through the long days and nights. My cat will no longer be the first to greet me when I open the front door. How can I not be sad that he’s gone?"

Julian Richer

available at https://shrtm.nu/o5fQ

Perhaps fitting for a financial journalist with such a sense of the personal, the piece this week is his writing on the appropriately-surnamed Julian Richer.  Richer made his fortune in peddling high-end audio equipment in the UK, from stores cheekily named "Richer Sounds." Richer's parents had both worked for Marks & Spencer (for an American, think maybe Macy's), and he entered the business at fourteen.  Coggan draws attention to Richer for the unusual fact that Richer has planned to give away much of his wealth to his employees.

When asked why, Coggan writes that Richer claims inspiration from the nearly 40-year-old book "In Search of Excellence." Richer maintains (and Coggan appears to agree) that the case studies therein illustrate that top performing companies treat both customers and employees well. "Organizations that create a culture based on fairness, honesty, and respect reap the rewards ... [t]hey attract motivated staff who are there for the long haul."

Coggan does not concede that Richer's arguments are ones for general application. He notes that Richer Sounds' turnover is a mere $157 million. That about matches the four supermarkets in the little City of Sonoma. However, he points out that the UK's high street retailers and supermarkets (M&S, Asda) have sought Richer out for his insight, suggesting lessons for the business community as a whole.

The point Coggan doesn't quite tease out (and I give him the benefit of the doubt here, for the column is a brief one), is that Richer, while not running a family business, is definitely in the family business.  His folks were retailers.  His approach to employees mirrors many family businesses in my part of semi-rural California. Bill Swindell of the Santa Rosa Press Democrat made this point five years ago, with his article "All in the Family." Swindell's quote from Marcus Benedetti (Clover-Sonoma) sums it up, as the CEO of the longtime dairy said "I look at myself as a temporary steward of something I can pass on to my children."

Over the past months and years, increasingly, navel-gazing about the raison d'être of companies has been a recurrent theme in the business press. The Economist has been no different. Contemporary capitalism often feels simultaneously disconnected from place while focused on individual cults of personality, provoking something of a crisis. It has not always been thus. When so many large business organizations in the United States came into existence in the Gilded Age, the personalities involved were known to one another, and the ownership thereof was often family-based, if dysfunctional.  Discomfort with family-type structures may therefore be present for good reasons -- embarrassing, emotional strife was and is common, messy details are inevitable, and nothing saps a meritocracy like nepotism.

Business is replete with family fortunes won-and-lost, the proverbial "shirtsleeves to shirtsleeves in three generations." It is understandable then, that with family life often resembling nothing so much as a blooper reel, that businesses would have a long-deep discomfort with management principles that may very well be family-derived. What irony there is, then, in the unstated suggestion of Mr. Coggan's piece — that at the core of successful businesses, those impersonal machines of prosperity, is the resiliency, reciprocity, and, yes, care for one another upon which family depends?