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BACKGROUND: Virginias fast-growing Hampton Roads region (population 2 million) is surrounded by water rivers, bays, harbors and has the highest need to deal with choke points, especially at two tunnel crossings on the Elizabeth River. The preliminary estimate to construct a new tunnel, as well as improve the existing tunnels and a nearby highway, exceeded $2 billion. Funding of this magnitude was not available without a creative solution. In 2012, VDOT found the answer through one of Virginias first Public-Private Transportation Act (PPTA) partnerships with Elizabeth River Crossings LLC (ERC). ERC would design, construct, finance, operate and maintain the improved facilities. Improvements would include a new tunnel and repair of the two existing tunnels, plus repairs to a nearby highway. In exchange, the VDOT contract allowed ERC to charge tolls on the tunnels for 58 years. As there is literally no space for traditional tollbooths, all tolling would have be electronic, requiring tunnel users to have an E-ZPass transponder. With only some remote tolling facilities, the Hampton Roads market had little experience with tolling and, consequently, few E-ZPass holders. 1 Hampton Roads E-ZPass Campaign 7a) Issues/Crisis Management Communication Bridges, Tunnels and Traffic Choke Points Everywhere

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THE CRISIS UNFOLDS The GOOD: In 2012, VDOT orchestrated a public-private partnership (P3) contract with Elizabeth River Crossings LLC. The deal called for toll collections, starting in July 2013, to finance the new tunnels and other improvements. The BAD: The Hampton Roads market had limited experience with tolling. The two existing tunnels were not tolled. When tolls were announced to fund this improvement project, residents and businesses, especially in the city of Portsmouth, immediately reacted. Strong opposition formed. News media covered the escalating story. The city of Portsmouth sued VDOT to stop the tolls on the tunnels as tolling would have a relatively greater impact on its residents and businesses compared to those in the city of Norfolk, located on the opposite side of the tunnels. Media coverage was strongly negative about the tolling plan. The city of Portsmouth won the local court battle. The circuit court judge declared the tolls unconstitutional, saying the Virginia General Assembly exceeded its authority by delegating to VDOT "unfettered power" to set the toll rates "without any real or meaningful parameters. No tolling meant VDOT would have to cover the debt and fund the planned tolls. Meanwhile, ERC began construction. The Commonwealth of Virginia was now on the hook for more than $1 billion of debt. VDOT took the case to the Virginia Supreme Court. The high court expedited the case, but it was not clear when a ruling would be made. If VDOT won, tolling would begin as soon as possible. However, few residents in the region had E-ZPass transponders, and no one was about to get an E-ZPass with so many unknowns. On Oct. 31, 2013, the Virginia Supreme Court ruled the tolls were legal. But wait, theres more The UGLY: A new governor was elected five days later, on Nov. 5, 2013. He immediately pledged to eliminate, reduce or delay tolling on the two facilities. Again, no one was about to obtain an E-ZPass with so many unknowns. Meanwhile, construction continued, and VDOTs financial liability grew along with the public criticism. 2

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Final Decision: In early December 2013, the governor- elect dropped his call to eliminate tolling. VDOT saw mounting liability to its P3 partner. Tolling was set to begin on Feb. 1, 2014. The Impossible Task: In the face of public disappointment and continued active public protesting, VDOTs was tasked with getting: 75,000 75,000 new transponders issued and activated in 45 days - by Feb 1, 2014. 3 FINALLY, A GREEN LIGHT ALONG WITH AN IMPOSSIBLE TASK THE ENVIRONMENT: Here are some of the scores of stories and articles that appeared from mid-2013 through May 2014: Images advance automatically TV news story day tolls began Stories focus on the personal impact of the tolls, not the benefits of a new tunnel Negative coverage was routine Legal case is only one of the conflicts For several months, TV station has done Toll Patrol stories

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VDOT developed a creative strategic plan to tackle this issue Phase I: Advance the Benefits of the Project Strategy: With tolling ruled legal and the tolling start date up in the air, focus on information and education about the tunnel improvements, related community benefits and construction, which had already started Key Messages: Why improvements are needed; whats included; details surrounding the initial construction work to minimize commuter impact; community benefits Outreach: Mostly media and stakeholder relations, community and business briefings, and traffic radio report underwriting Timing: Conducted until a firm tolling start date is announced - from the first announcement about the P3 arrangement through the public outcry over tolling up to the final Virginia Supreme Court decision and actions by the governor-elect Phase II: Focus On E-ZPass Transponders Strategy: Once the tolling start date is set, hyper-focused on advancing E-ZPass accounts Key Messages: All-electronic tolling starts Feb. 1, 2014. You will need an E-ZPass. Heres how and where to obtain E-ZPass transponders. Outreach: Paid advertising targeting primary tunnel users in Norfolk and Portsmouth Promotions radio remotes and appearances on local feature programs Retail distribution - VDOT opened two new E-ZPass customer-service centers to issue E-ZPass transponders and recruited dozens of local retailers to serve as additional distribution points for the On-the-Go self-serve E- ZPass kit Timing: To begin after the final green light on tolling is announced. Given 2013 holiday advertising clutter and consumer distraction, the media ad campaign could not launch until Jan. 1, 2014. There would be fewer than 30 days before tolling began. It had to work. 4 VDOTs CRISIS MANAGEMENT PLAN VDOTs CRISIS MANAGEMENT PLAN VDOT Crafted a Two-Phase Crisis Management Plan

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TV: Primarily a Cable buy, three versions produced directing consumers to the website, phone or retail locations. PRINT: Newspaper strip ads, small space and display ads in major and community newspapers OUTDOOR: Traditional billboards/digital billboards, plus printed banners placed at tunnel entrances, and electronic messaging. STRAIGHT-FORWARD CREATIVE: The effort was built around clear, consistent messaging across all media vehicles TV, print, outdoor, highway banners, electronic message boards and online [slide is animated] 5 Click here when done with TV spot CLICK TO CONTINUE... ONLINE: Same messaging, using both display ads and dynamic search, to appear when and where targeted consumers go online and built custom landing page

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23 Community Events and 6 three-hour live radio remotes took place: Media Plan designed to cost-effectively deliver over 40 million impressions in three month period, running before and after the February 1 st start of tolling. MEDIA AND PUBLIC RELATIONS: APPROACH: Be visible across the typical day of a tunnel user/commuter. Use paid media as well as highly visible public relations activities. [Slide is animated slight delay] 6 CLICK TO CONTINUE... Six times VDOT representatives appeared on local talk shows:

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The needed $2 billion to keep Hampton Roads moving was not avail- able. VDOTs answer was a public-private partnership (P3) with Elizabeth River Crossings LLC. This financing arrangement not only made the project possible, it advanced P3s as a viable future solution for other road improvements across the Hampton Roads region and the Commonwealth of Virginia. If this P3 failed, the commonwealth would be responsible for $1 billion in new debt and P3s would face a more difficult road ahead. This project brought tremendous economic development benefits to the region, which were the key message points in Phase I of VDOTs communication outreach efforts: More than $1 billion in construction to be built by local companies More than 500 project-direct jobs More than 1,000 jobs in the community with related industries and suppliers Over 100 permanent facilities, maintenance and operations jobs Overall results: VDOT met and exceeded its goals and objectives. Today all-electronic tolling is in place and is operating smoothly on the two tunnels. The tunnel improvements and new tunnel construction are proceeding smoothly. VDOTs crisis-communications plan helped redirect the community conversation with measurable results. In a pre- and post-campaign survey, the number of mentions of tolling fell by 40 percent and the number of mentions of E-ZPass increased by 83 percent. Now the entire project is out of the news. 7 Objective #1: Make This Overall Initiative Successful, Help Direct the Community Conversation Market Survey: What Have You Heard? December 2013 Survey TOLLING March 2013 Survey E-ZPass

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Before VDOTs public information and education campaign, there were 128,000 E-ZPass transponders issued in the entire Hampton Roads market (presumably to people familiar with E-ZPass and who would use it when they traveled to other markets). It was estimated that less than 10 percent of this base number were regular Elizabeth River tunnel travelers. The 45-day goal for the retail-focused communications effort was 75,000 new transponders by toll launch Feb. 1, 2014. The following are the measurable results : The campaign WORKED! 86,000 new transponders were issued by Feb. 1, 2014. The campaign continued, bringing in 144,000 additional transponders since Feb. 1. Through May 2014, VDOT increased E-ZPass transponders in the market by 213 percent. 8 Nov. 1, 2013 Pre-campaign E-ZPass Transponders in Hampton Roads Feb. 1, 2014 Tolling Starts From Feb. 1 to May 31, 2014 128,000 214,000 272,000 +86,000 +144,00 0 Objective #2: Get 75,000 New E-ZPass Holders by Feb. 1, 2014 Measureable Results

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If tolls create less congestion at the two Elizabeth River tunnels, then negative attitudes against tolls could become more positive. In both morning and afternoon rush periods, a 10 percent reduction in the traffic volume could help mitigate most of the severe traffic congestion. A related campaign objective was to demonstrate this anticipated benefit. Variable pricing would reduce trips and shift trip times for others. Measurable result: Traffic volume is approximately 20 percent lower than in 2013. 9 Objective #3: Demonstrate How Tolling Helps Mitigate Congestion As the Hampton Roads region had only a couple of other tolled facilities, there were few E-ZPass holders in the market before this initiative. Tolling as one of the future funding options for improvements and new facilities could be easier to introduce if more people had an E-ZPass. A related campaign objective was to increase awareness and the likelihood to get an E-ZPass. The measurable result: Knowledge of how to obtain an E-ZPass increased by 31 percent and the number of residents who are likely to obtain an E-ZPass increased by 33 percent. Objective #4: Build Awareness and Future Demand for E-ZPass Transponders in the Market to Support the Possibility of Future Tolling on Other Facilities Pre-Campaign Traffic Counts Post-Campaign Traffic Counts Pre- Campaign 54% 85% Post- Campaign Know how to obtain an E-ZPass Pre- Campaign 49% 82% Post- Campaign How likely are you to get an E-ZPass Measureable Results 13,164,944 15,824,720

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1. DONT PANIC: No matter when the odds are seemingly stacked against you, dont panic. Keep the faith. It is possible to structure messaging and orchestrate a comprehensive public information and education program that can accomplish your DOTs goals and even exceed expectations. 2. KISS: Apply the Keep it Simple principle to your communications plan. Stay above the fray dont respond or engage in debate over sensational media coverage focusing on personal impacts. Stay hyper-focused on your core messaging advance both positive community impacts and how your DOT is doing everything to make this work. 3. LEVERAGE YOUR LIMITED BUDGET: Use your owned DOT media channels as much as possible to inform and educate motorists on what is happening and what they need to do DOTs website, 511, electronic messaging boards, banners and other signage on the actual facilities. 4. CREATE PARTNERSHIPS: Do not assume your media partners will go the extra mile unless you specifically ask them to help. Fund special partnerships that involve events, radio remotes and on- screen interviews on local lifestyle feature shows. All these extra efforts can make a difference. If you are advancing a retail action like get your E-ZPass transponder, make sure you have a strong retail presence in your own facilities and with partners DMV, local government administration offices, large and visible retailers, and others. 5. MAKE IT EASY FOR PEOPLE: Make sure all your outreach includes a strong and clear call to action. Let everyone know exactly what to do. Include toll-free phone numbers and create special online landing pages to make it easy for people to take action. 10 5 Key Lessons Learned 5 Key Lessons Learned VDOT Communications Divisions Takeaways From Managing This Crisis