U.S. Department of Transportation

Federal Highway Administration

Federal Transit Administration

1

April 2009

Background

The Metropolitan Transportation Commission (MTC) is 

the transportation planning, coordinating, and financing 

agency for the nine-county San Francisco Bay Area. MTC’s 

region includes the nine counties of Alameda, Contra 

Costa, Marin, Napa, San Francisco, San Mateo, Santa 

Clara, Solano, and Sonoma, and 101 municipalities. The 

region has a population of approximately 7 million people 

with a projected growth of nearly 30 percent from 2000 

to 2030. The region is already the second most congested 

nationally as measured by the Texas Transportation Institute 

in 2007. The region is highly developed, and there is 

limited capacity-addition planned for the future. As a result, 

system management is a priority. 

MTC functions as the regional transportation planning 

agency, a State of California designation, and the region’s 

metropolitan planning organization (MPO), a Federal 

designation. The Commission’s work is guided by a 

19-member policy board and carried out by a staff of 

approximately 130 persons in Oakland, California.

The Metropolitan Transportation Commission (MTC) uses an objectives-driven, performance-based approach in its transportation planning 

for the San Francisco Bay Area. This approach focuses attention on transportation investments of highest priority. The agency assesses not 

only project-level performance, but also wide-ranging regional performance in relation to ambitious targets set by the agency. Projectlevel analysis using metrics defined for regional objectives results in a quantitative assessment of a project’s costs and benefits. To date, 

management and operations strategies, such as the agency’s Freeway Performance Initiative, have proven the most cost-effective. This 

type of freeway and arterial coordination can yield major benefits, though numerous challenges remain including data inconsistencies and 

reaching consensus on appropriate analysis tools. The agency recognizes that a range of strategies is needed to improve traffic in one of the 

Nation’s most congested areas.

Metropolitan Transportation Commission

San Francisco Bay Area 

Developing Regional Objectives and Performance Measures to Improve System Operations

Figure 1. Map of the MTC planning area.

Source: MTC.
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objectives that relies on analytic methods to predict 

impacts of investments on system performance. This would 

set up an analytic framework for monitoring of system 

performance. 

MTC used performance measures to evaluate projects 

in the past as part of the development of the regional 

transportation plan (RTP). In fact, the Commission is 

required under Senate Bill 1492 to establish performance 

measurement criteria on both a project and corridor level 

to evaluate and prioritize new investments for consideration 

in the RTP. In 2003, MTC conducted the required 

performance assessment for the Transportation 2030 Plan, 

but the evaluation results were available only after many of 

the key RTP investment decisions had been made. MTC 

Developing a PerformanceBased Metropolitan 

Transportation Plan

MTC began work in the summer of 2007 on the 

regional transportation plan update for 2035. It is 

anticipated to be complete in March 2009. The plan 

emphasizes performance, including quantifiable 

performance objectives and program and project 

assessment. MTC recognized that a performancebased planning approach would help focus attention 

on desired outcomes and would support investment 

decisionmaking to achieve measurable results. 

Developing regional performance objectives would 

allow for a more analytic approach to achieving policy 

Policy Framework

E’s GOALS PERFORMANCE OBJECTIVES

Maintenance & Safety Improve maintenance

Local streets & roads: Pavement Condition Index of 75 or better

State highways: distressed lane-miles no more than 10% of system

Transit: average asset age no more than 50% of useful life

Source: State and local strategic plans

Reduce injuries and fatalities

Motor-vehicle: 15% from today; bike/ped: 25% from 2000 levels

Source: State Strategic Highway Safety Plan

Reliability Reduce delay 

20% per capita from today (recurring and non-recurrent)

Source: Governor’s Strategic Plan

Freight

Clean Air Reduce VMT and emissions

VMT: 10% per capita from today

Particulate matter: 10% to 45% from today

CO2: 40% below 1990 levels

Source: State regulations and laws

Climate Protection

Access Improve affordability 

10% reduction in housing and transportation costs from today 

(low-income households)

Livable Communities

Figure 2. MTC’s overarching principles, goals, and related performance objectives that form its policy framework.

Source: MTC.

Economy Eniviron. Equity
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to help achieve each and every performance objective. 

However, the purpose of this analysis was to identify 

and advance high-performing, cost-effective projects for 

consideration in the fiscally constrained plan. The result 

was a quantitative analysis of project costs and benefits, 

relying largely on data generated through the regional 

travel demand model. One of the key measures used in this 

analysis was a combined benefit-cost measure capturing 

several elements:

•	 Reductions in delay (based on value of time associated

with the regional wage rate).

•	 Particulate matter emissions (based on health effects)

and greenhouse gas emissions.

•	 Collisions.

•	 Direct user vehicle operating costs.

Although each effect was also reported separately, all 

benefits were monetized for purposes of developing a 

benefit-cost ratio. In this calculation, when considering 

recurring and non-recurring delay (typically 80 to 90 

percent of the monetized benefit), delay reduction was 

by far the biggest component. Additional quantitative 

evaluation metrics were also used, such as cost per reduction 

in vehicles miles traveled (VMT).

An initial summary of some of these results are shown in 

Figure 3. 

As can be seen from this figure, MTC explored the overall 

benefits, benefit/cost ratio, and number of goals addressed 

by a wide range of different types of projects and programs. 

The initial analysis suggests that management and operations 

(M&O) strategies, including freeway management, high 

occupancy toll (HOT) lanes, and transit efficiency measures 

such as bus rapid transit and transit priority projects, are 

among the most cost-effective strategies.

decided that to inform investment trade-off discussions in 

the updated plan, it would be useful not only to conduct 

project-level performance assessments, but also to establish 

regional performance objectives with quantitative targets 

early in the process to help guide investment analysis.

The 2035 RTP seeks to achieve three overarching principles 

referred to as the Three E’s: Economy, Environment, 

and Equity. To help inform policy and assess investment 

scenarios, MTC developed a set of performance targets for 

each of these key principles, shown in Figure 2. Although 

the targets are viewed as ambitious, the Commission 

supported the use of these measurable objectives as “stretch” 

targets. The targets are intended to be used as a basis for 

comparison of plan alternatives and would be monitored 

over time. In January 2008, the Commission provisionally 

approved these performance targets.

Since the performance targets are at a regional level and are 

designed to support objectives-based investment decisionmaking, they cover a wide range of issues of importance to 

the region including congestion, air quality, and greenhouse 

gas emissions. Several of the specific performance targets 

reflect guidance from existing State regulations and plans. 

For instance, the target to reduce delay by 20 percent 

per capita reflects goals in the Governor’s Strategic Plan. 

However, because the performance objectives do not 

constitute legal mandates, the Commission may in the 

future consider changes, substitution, or deletion of the 

performance objectives. 

In the spring of 2008, MTC began conducting projectlevel analysis using the metrics that have been defined for 

the regional performance targets. Using metrics defined for 

the regional targets ensures that investment tradeoffs focus 

on determining which projects are most cost-effective in 

meeting the regional objectives. Individual projects and 

programs in the financially constrained plan do not have 
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Through the summer and fall of 2008, MTC analyzed 

investment alternatives. This process involved developing 

scenarios or packages of investments and policy approaches 

to explore how close MTC can get to achieving the regional 

performance objectives within a financially constrained 

plan. Although the planning process is still underway, 

the performance-based approach that is being taken 

in the metropolitan transportation planning process 

reflects an overall focus on performance metrics that has 

already been integrated into several of MTC’s investment 

programs. One of the most notable of these is the Freeway 

Performance Initiative.

Figure 3. Initial results of project performance assessment by MTC.

Source: MTC.
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MTC has learned through this process that non-recurrent 

congestion is a major problem in the region, accounting for 

30 to 60 percent of total delay. Additionally, it has seen that 

coordinating freeways and arterials can yield major benefits. 

MTC discovered that system management strategies can 

provide near term congestion relief, and has already had two 

successful ramp metering deployments. It has realized that 

the region also needs to better utilize transit and park-andride capacity.

Additional Challenges

and Lessons Learned

The process of building performance metrics into freeway 

management and the overall RTP have created a number 

of challenges, as well as opportunities and lessons. The 

challenges faced in managing congestion within the San 

Francisco Bay Area include not having enough data and 

experiencing issues with data consistency, particularly 

for purposes of examining the benefits of operational 

strategies that aim to reduce nonrecurring congestion. 

Other difficulties include selected appropriate analysis tools, 

calibrating the micro-simulation model, and achieving 

consensus on prioritization criteria.

MTC has learned that there is no single solution for 

congestion and that a range of strategies needs to be 

implemented. Additionally, it is important that the right 

people are at the table during planning and that they 

are committed to the process. Finally, a good detection 

infrastructure is vital to the collection of accurate traffic 

performance data from which useful investment decisions 

can be made. For instance, Caltrans and MTC use strategies 

such as tracking freeway congestion by county, identifying 

bottlenecks through detailed speed profiles, and using 511 

to make information available to the public.

Benefits of the Freeway

Performance Initiative

MTC’s Freeway Performance Initiative consists of 

concurrent corridor studies with an emphasis on effective 

management and operations as a means to improve system 

performance.

The Freeway Performance Initiative, a joint effort between 

the California Department of Transportation (Caltrans) and 

MTC, aims to improve system efficiency with active system 

management. The initiative is much like a strategic plan for 

the freeways. It will identify and prioritize a list of strategies 

and projects that will improve system performance through 

system management and by closing key gaps in freeway 

infrastructure to address bottlenecks effectively. Included 

in this initiative are strategies such as completing a highoccupancy vehicle (HOV) lane system, addressing freight 

issues, and infrastructure development and improvement. 

The analyses for the Freeway Performance Initiative are 

different from traditional corridor planning analyses, and 

focus on existing and future recurrent congestion caused 

by bottlenecks as well as existing non-recurrent congestion 

created by incidents. The performance measures used in the 

initiative include:

•	 Delay reduction – Vehicle hours reduced.

•	 Cost effectiveness – Cost/hours saved.

•	 Reliability – buffer index.

•	 Safety.

•	 Others, such as freight impacts, closing HOV gaps,

and local support.

The corridor studies are detailed macro- or microsimulations of each corridor, in contrast to the 

analysis of regional performance targets, which is 

based on the regional demand model. 
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Moving Forward

MTC will continue to develop the draft of their updated 

RTP, Transportation 2035, and the investment plan. MTC 

plans to consider how project performance assessment 

will weigh in light of local priorities. The agency will 

continue to monitor progress toward objectives through 

annual congestion monitoring and refine the state-of-thesystem report. MTC will also be implementing a freeway 

operations program, building off the lessons learned in the 

Freeway Performance Initiative. 

References

Metropolitan Transportation Commission, Memorandum: 

Transportation 2035 Proposed Performance Objectives, 

January 4, 2008. 

Metropolitan Transportation Commission, Memorandum: 

Transportation 2035 Project Assessment – Quantitative

Performance Evaluation, February 1, 2008. 

FHWA/FTA Webinar, Lisa Klein and Albert Yee, 

Metropolitan Transportation Commission, June 24, 2008.

AASHTO/FHWA Workshop on Congestion 

Management, Presentation by Albert Yee and John Wolf, 

Metropolitan Transportation Commission and Caltrans, 

September 27, 2007.

FHWA-HOP-09-047