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ON-STREET PARKING METER CONSIDERATIONS
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RECOMMENDATION
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Summary
The theft of a substantial number of parking meters in the downtown area has had a negative financial impact on the City of Stockton. While efforts have been made over the last two years to secure the meters, including arrests, the current number of existing meters is approximately 250, down from 1,700 in 2015. The target number of on street metered or paid spaces going forward is between 1,200 and 1,300, as some of the previous locations in the outlying areas are no longer needed. Due to the reduction of parking meters, the Parking Authority revenues were down $182,000 in FY 2016-17 and are expected to be reduced further in FY 2017-18. The lack of meters is not only affecting the Parking Authority’s revenue but has also become a detriment to downtown businesses. These businesses need parking spaces to be limited by time to allow availability of these spaces for customers. The City continues to enforce those who exceed posted time limits but this does not address the ongoing revenue and operational issues.
DISCUSSION
Background
The theft of a substantial number of parking meters in the downtown area has had a negative financial impact on the City of Stockton. As a remedy to the meter theft issue, there has been some success with a more costly installation of the mechanical meters, which includes additional cement, stronger pipes, and welding of the mechanisms. This installation process can also be utilized with technology-based cash/credit or credit only meters; however, there is still a concern over eventual damage and theft.
In the parking industry, outdated mechanical coin only meters are phasing out, as cities are investing in digital models that accept cash and credit cards or exclusively credit cards. Credit card only meters or payment machines are attractive because they don’t have the theft value that cash meters do which are currently being used downtown. The downside to technology-based meters and other payment machines is the initial investment and monthly costs associated with data requirements. However, examples from other cities show an increase in revenue that can help offset the new data charges. More parkers pay based on the increased convenience in payment options. There is also some concern that credit card only machines do not provide an opportunity for payment for those who don’t have credit cards.
The investment must be made to restore on-street payment options with industry standard technology used in current parking equipment. A 2015 parking study recommended that the City of Stockton or the Parking Authority should improve the parking operation by implementing new payment options with new technology solutions. The City has made some strides in that direction by offering the ParkMobile app, allowing credit card or PayPal payments from smartphones, and installing pay by space equipment in the lots. However, a more comprehensive renovation of the program is needed and today’s technology can give Stockton new options for obtaining payment on the streets, including larger, centrally located pay-by-plate/space machines; mobile app only spaces; and credit card accepting “smart meters.” Additionally, the parking garages in town will still accept cash payments.
Present Situation
Currently, the City is at a strategic decision point which requires policy direction before moving forward with implementation. Specifically, whether to continue to accept cash payments for on-street parking and if so, the best, most secure and convenient means of doing so.
The industry options most commonly used include:
1) Pay by Plate/Space Machines - This option includes larger payment machines placed in the middle or at the ends of a block that allows parkers to pay by credit card, parking app, or can also be programmed to accept cash. The parker will enter the vehicle license plate number and enforcement will check for payment by accessing the data with smartphones. There is no need for the parker to return anything to their car for proof of payment, making use convenient.
2) Smart Meters or Credit Card Only Meters - New technology based meters will accept credit card payment at each meter and can also accommodate parking app payments. Without the presence of cash in the meter, the hope is that thieves will not see value in stealing the mechanism. Credit card meters can also include the option to take coins. As a precaution, additional measures will be utilized during installation to secure the meters, if this option is utilized.
3) Smart Phone Payment Only - Implementation will include instructional signage where meters used to be located that will explain to parkers how to access the app and pay using a smartphone and credit card or PayPal. Signage will also indicate nearby cash accepted spaces for those who do not wish to or cannot pay with the parking app.
Overall, the best solution for Stockton may be to utilize a combination of the options listed above based on user needs, services, businesses in the adjacent area, and overall parking demand. In the meantime, the remaining cash only meters will continue to be used with extra measures for installation and time limits strictly enforced.
A pilot program using a combination of these options will be conducted to determine the most effective approach for providing on-street parking in the future.
FINANCIAL SUMMARY
The Parking Authority Fund has Capital dollars allocated for technology improvements for on-street systems, as well as additional fund balance that can be appropriated, if or when necessary.