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.




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