ADMINISTRATIVE REPORT Date: December 21, 1995 TO: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: Parking Meter - Operations Review RECOMMENDATION A. THAT Council approve a three year parking meter replacement program as outlined in this report, and detailed in Appendix A at an estimated cost of $2,728,000. Funds for this would be provided from increased parking meter revenues of approximately $900,000 for 1996 and $1,900,000 annually thereafter. B. THAT Council approve the parking meter rate changes for 1996 and 1997 as detailed in Appendix B. C. THAT Council authorize the Director of Legal Services to bring forward the necessary by-law changes to reflect the parking meter rate changes. COUNCIL POLICY Council policy is to provide parking meters to improve street use with the support of local businesses; set parking meter rates to reflect market rates and require cost reductions or revenue enhancements to offset any increased expenditures. SUMMARY Staff have undertaken a detailed review of the parking meter operation. This review has looked at theft and vandalism mitigation, parking meter equipment, and parking meter rates. A number of initiatives are being taken to eliminate theft and vandalism problems. These include the hiring of a loss prevention consultant who is working actively with staff and the Police, increased Police action, more frequent collections, and redesign of meter fasteners. It is recommended that new electronic parking meter equipment be purchased to replace over 1000 existing empty spaces and the 3500 remaining mechanical meters over a 3 year period. These "hardened" meters will reduce maintenance costs, increase rate and coin flexibility, and accept smart cards. Detailed costs are shown in Appendix A. Parking meter rates have been reviewed. Existing rates are generally well below off street rates and should be adjusted to continue to control parking for short term use. It is recommended that rates be adjusted over a two year period, as shown in Appendix B. The additional revenues from the meter rate changes will offset the proposed expenditures. Staff are also reviewing the hours of meter operations in response to Council's recent request, and are reviewing the organizational structure of the parking meter operations. These items will be reported to Council early in 1996. PURPOSE This report recommends an accelerated meter replacement program that will harden meters to deal with a recent and growing vandalism and theft problem, and to provide a higher level of public convenience with electronic mechanisms that can use prepaid smart cards. The report also recommends rate changes in 1996 and 1997, that will offset meter replacement costs and better reflect off- street rates. BACKGROUND In May 1995 Council reviewed a report about on-street parking control equipment and approved the following: THAT Engineering Services continue its ongoing review of on-street parking equipment options to insure that the technology used by the City of Vancouver provides the best value for the citizens of the City. Currently, electronic parking meters provide the best value with the potential for future use of debit card technologies. THAT the General Manager of Engineering Services in Consultation with the Director of Permits and Licenses and Director of Finance evaluates the options for an In Vehicle Parking Meter (IVPM) program, initially for use by commercial vehicles, and report back to Council. THAT a consultant be retained to assist staff in reviewing the security of Vancouver's parking meter operations and its structure at an estimated cost of $40,000. Funds for this work to be provided from the Parking Meter Replacement Reserve. On June 20,1995 Council approved the purchase of parking meters to replace meters that had been damaged or destroyed by vandals and to expand into newly approved metered areas. Since then, the 800 new meters with electronic mechanisms and hard cases have been purchased and installed in the core area of the downtown. These meters are functioning well and add a significant degree of security to the City's parking meter operations. They also provide the City with the opportunity for smart card use. Unfortunately the older mechanical parking meters have again become the subject of vandalism and theft. These problems were minor until the job action in 1994. Since then, the meters have been a target of many different types of vandalism, from the removal of meters from posts, to more recently the destruction of meters on their posts. There has also been a growing problem with the use of keys copied from stolen meter heads. It is currently estimated that 550 meters are missing, totalling 1028 meter spaces. There are a number of initiatives being taken to stop vandalism against meters. These include increased enforcement actions, more frequent coin collections, hardening of existing meters, and the restoration of damaged or recovered stolen equipment. THEFT AND VANDALISM MITIGATION Engineering and Corporate Services together with the Police Department have developed a plan to eliminate the current loss of parking meters. As approved by Council a loss prevention consultant has been hired and the consultant has now recommended a number of mitigation measures which are being implemented. The police are working closely with the Engineering Department to deal with the theft and vandalism. Through enforcement action a number of arrests have been made. Frequent collection of coins is an important element in reducing the current problem and the level of meter collections has been increased. The new hard meter cases and the recent improved meter head attachment methods have been very successful in guarding against the types of theft we are currently experiencing. Staff have also developed a system to change and rotate locks, thus making illicit keys useless. PARKING METER EQUIPMENT The recent purchase and installation of electronic meters for 800 spaces was a big step to improving the overall meter operations. These meters' housings are much harder than most of the existing meters, and the electronic mechanisms can accept various coins, including the new two dollar coin being introduced early in 1996, and various rate and time combinations. They also have the capability to be retrofitted to accept a smart card for payment. The smart card option would provide an increased level of convenience to the public and could significantly reduce or eventually eliminate cash in the parking meters. The City is now missing meters for over 1000 spaces and these need to be replaced. Meters for 400 of these spaces have been purchased as an extension of our previous meter tender so that crews can install them as they retrofit and secure the existing meters. The City has 3500 remaining mechanical parking meters and many of these continue to be susceptible to the current problems. The actions being taken by staff will mostly eliminate theft and damage problems; however, it is recommended that the older mechanical meters be replaced over the next three years with new hardened electronic meters. Two hundred of these meters are old Duncan meters that have reached the end of their expected life. The balance are POM meters that are 5 years old and have another 5+ years of life. The replacement of these meters will reduce maintenance costs, further reduce the possibility of vandalism, allow greater coin and rate flexibility, and add smart card use. With the purchase of more electronic parking meters the City would be in a position to introduce a smart card option. This could be done if the City marketed its own card or we could wait for generic cards to be issued through financial institutions. The full scale use of these cards is expected in 1997. In 1996 several financial institutions, including Van City, will initiate a retail trial of a debit card that the City could use. Staff are continuing to examine the possible use of the In Vehicle Parking Meter (IVPM) for commercial vehicle use and will report separately on this option. EQUIPMENT UPGRADES The following equipment purchases and upgrades are recommended to complement the recommended meter purchase and to improve the parking meter operation to deal with the immediate problems. Collection carts - new secure collection carts have been built and the collectors are now using them. However, further improvements are needed to achieve optimum use, estimated to cost $12,000. Vehicles - The current vans need changes to accommodate the new collection carts. These changes are estimated to cost $9,000. An additional van is also required for a new collection crew. This van should be leased on a temporary basis, until the current problems subside, with an annual cost for the lease and operating expenses of $6,000. Field Communications - The collectors' existing radios have reached the end of their useful life. It is recommended that they be replaced at an estimated capital cost of $2,000. Meter Auditor - An upgraded hand held Electronic Auditor that tests meters, changes rates and provides audit information is required for the City's new McKay electronic meters. The estimated cost of this equipment is $5,000. Computer software/inventory control - improved software is required to enhance the City's parking meter record keeping system and expand the existing bar coding. The cost of this equipment is estimated to be $4,000. METER RATE CHANGES Council policy is that parking meter rates should reflect off- street rates to minimize circulating traffic, and that they should be set to provide short term parking for area visitors. A balanced rate between parking meter rates and off-street parking rates will increase the availability of on-street parking space, reduce long-term parking usage, typically by employees, and reduce the traffic congestion created by people looking for parking spaces. Parking meter rates are generally below off-street parking rates. The last parking meter rate changes were made by Council in June 1994 and some meter rates have not been changed for 10 years. It is proposed that parking meter rates be changed over the next two- year period. The proposed rate changes are detailed in Appendix A. The average meter rate would increase to $1.05 per hour in 1996 and $1.25 per hour in 1997 compared with the present average meter rate of $0.92 per hour. The average off-street parking rate is approximately $2.00 per hour. These rate changes are greater than inflation and will bring rates closer to off- street rates. CONSULTATION WITH MERCHANTS This report has been discussed with a number of merchant groups. They recognize the importance of meters to control parking in their business areas. They support the move to electronic meters and are very interested in the potential for smart card operations. They also do not have a problem with the meter rate changes proposed in the report. METER OPERATION HOURS In response to Council's recent request, Staff are reviewing the hours of operation of meters to see if there is merit in extending their use into the evening or to Sundays. This review will include discussions with local business groups and will be reported to Council early in 1996. PERSONNEL / ORGANIZATIONAL CHANGES The organizational structure of the parking meter operations is being reviewed, and suggested improvements to this operation will be the subject of a report to Council in early 1996. This review will consider short term and long term staff needs, and the consolidation of meter maintenance and collection functions. FINANCIAL IMPLICATIONS The current vandalism and theft has a significant impact on the City's parking meter revenues. In 1995 it is estimated that the City will have lost approximately $500,000 primarily due to the damage caused to the meters; 1028 meter spaces currently do not have meters. If this damage were to continue it is estimated that the City could lose over $1,000,000 in 1996. The purchase of new hard meters combined with other security measures that staff are taking are stopping the losses. The costs to provide replacements for the vandalized meters and 3500 existing mechanical parking meters is estimated to be $2,220,000. It is recommended that this replacement take place over the next three years, with 1,600 new meters purchased each year beginning in early 1996. The detailed costs of this purchase and related expenditures are shown in Appendix A. To fund this work it is recommended that parking meter rates be adjusted as noted in Appendix B. The meter rate change involves the purchase and installation of various meter parts at a total cost of $40,000 (shown in Appendix A). These recommended rate changes are estimated to increase parking meter revenues by approximately $900,000 in 1996 and a further $1,000,000 in 1997. * * * * *