Free Parking has Mixed Results on Retail in Nelson

In Nelson, at the top of New Zealand's South  Island or Te Waipounamu (Maori name), there is a hive of activity around trying to solve a main street retail parking problem.  Regularly the sunniest place in New Zealand, the issue is creating chills with some of the abuse hurled at the poor old Enforcement Officers, so much so that nelson may be showing it up as an unfriendly place.  Why?  Because they cant solve their retail parking problems.

Retail parking is a very simple issue to solve.  It’s straight up economics, not emotion, not traffic engineering, not planning, just economics.  It’s the balance of supply and demand.  Whether by time restriction or metered charging, its still just about economics.  This fact eludes most people.

I’m not sure the Council and the retailers have actually defined the issues here, so that would be a great place to start, so I will have a go here. 

1.         Provide enough parking for shopping customers to come and stay as long as they are shopping, and no longer.

2.         Provide some parking for the staff of those shops and commercial premises to park all day.

3.         Its not really a number three but I thought I would throw this in - Council will get its revenues anyway, either by parking meter or by enforcement (due to the extra traffic generated by free parking)….its never free.

There, done it.

Firstly, you have to understand how to manage the parking resource in the city. It is limited. There are only so many car parks to go around.  Generally, more people want them than there are car parks.  This makes it a scarcity so you must actively manage it.  But to what levels should you manage it?

In modern parking methodologies, the ‘occupancy rate’ is the Number 1 KPI in parking now.  You must set up your system to ensure full utilisation of parking, that is a working occupancy rate of around 60% to 85%.  Any higher, then the price should go up to control it (occupancies higher than 85% start to show signs of congestion).  Any lower then the price should go down to improve utilisation. 

There is a large amount of work now showing that people looking for car parks are up to 45% of the actual traffic in a busy city.  The answer to that is to get the pricing or time restriction signals right and then communicate that in depth so that the parking decision is made before you leave home or work.

Price is a tool but not the main goal ….. occupancy is the main goal of retail parking although retailers will try to jam you into their car parks anyway because parking relates directly to footfall and they generally don’t care about you until you get into the mall (see most malls in the country).

These days we have a lot of modern tools & technologies in the tool box to set up a modern parking system, pay and display machines, pay by phone, barrier gates, licence plate readers, parking sensors, signs, paint on the road, education and finally, parking enforcement officers.  You can use some or all of these together.  Taupo uses an enforcement only model, which is say P60-P120 with sensors on the street to keep the cars turned over.  Most big cities will use parking meters and pricing to turn cars over. 

New modern methods of setting up your parking operation work very well around the world and will be in New Zealand in no time, that is an inverse pricing method.  Most cities have a price per hour where each hour costs the same amount, e.g. $3.00 per hour plus a P120 time limit.  The new approach is to charge more for the extra hour and have no time limit.  The affect appears to be people who want to stay can – they don’t get forced out – but they must pay for the privilege.  This might look like,

1.         1st Hour - $2

2.         2nd Hour - $3

3.         3rd Hour - $5

4.         4th Hour - $7

As you can see, the rates climb significantly at the time you want to turn the car park over.  It also has the affect of being positive in nature versus the inherently negative enforcement and infringement approach; in fact it is proving around the world to reduce the need for enforcement significantly.

For staff and office workers, they can park in areas away from the parking for shoppers because, for a major proportion of them, if you can’t park shoppers, they wouldn’t have a job.  In this case you make it cheaper or with longer time limits where you want them to park to incentivise them away from the main shopping areas..  You can always improve public transport to incentivise them on to the bus (see my article on TDM here).

See, parking is easy to fix, you just need an economic bent.  Parking is about economics, not only traffic engineering or planning and certainly not just enforcement.  I suggest taking the more positive approach and organise the balance of supply and demand and cut the poor old Enforcement Officers some slack…. It’s the system, not them.

Kevin Warwood

Read the Article Here.....

These views are my own.

Frog Opens High Tech Car Park ...

Palmerston North has become home to what may be the world’s most high-tech carpark, where the amount drivers pay depends on how many spaces are available.

The 33-space carpark in the city’s Church Street has been kitted out with solar-powered sensors by local parking technology firm Frogparking that can tell which parks are occupied. Drivers pay for parking through their smartphone.

Frogparking has been providing ticketless parking systems to Palmerston North for a few years, but director Don Sandbrook said the new system was its most advanced yet, with cheaper parking if there were lots of spaces available and higher prices if they were nearly all taken. The tariff ranges from 50 cents to $2 an hour.

Regular patrons can use a GPS-enabled windscreen tag that will automatically bill their credit card, but there is no cash option.

Sandbrook said there was plenty of on-street parking nearby for “little old ladies” who found the technology complicated. “If you don’t have a smartphone, we don’t want you to park in the carpark.”

He believed everyone would be paying for all parking by smartphone within 10 years. “There will be no other way.”

Drivers pay only for the time they are parked and local retailers can send codes to customers’ smartphones that entitle them to have their parking fees refunded if they take up shopping offers.

A local cafe, Cafe Moxies, has been the first to do that, but three other retailers are offering parkers in-store discounts.

Sandbrook said Palmerston North could become the “world’s innovation hub” for the parking industry and help cities around the world revive their retail centres.

- © Fairfax NZ News

Read Article Here ...........

How do you deal with too much parking?

It's a conundrum facing many Cities.  How do you get 85% occupancy when
there are less than 60% of all spaces actually being used?

This is a question I ask here in Christchurch, New Zealand.  The context
is that after the earthquakes, there are now a large number of vacant
sites, awaiting developments, that are being used as car parks.  There
are 1,500 cars parking in 2,700 private off-street sites (all open-air
lots) in the CBD as no buildings are open yet.  So how do you control
parking to 85% when there aren't enough vehicles to get past 56%?

 

 The answer is to break the city into zones and manage the occupancies in
the zone separately, then set a wider 'working' occupancy goal of about
60% to 85%.  Don't use too narrow a 'band' around the 85% target, as
it's almost impossible to achieve at this stage where there is a lot of
vacancy.  Zone management then gives you the ability to relocate
vehicles around the city by pricing to affect the local activity level
in that local zone, for the purpose of maximising the utilisation of the
parking resource.  You may be able to offer higher prices where there is
a PT choice (by removing supply), higher prices where there is over-use
such as on the western edge of the Christchurch CBD today.  You can also
start to remove spaces for the purposes of better landscaping or other
mode changes.

 

Gap Filler Project - Christchurch

 

 

 

 

 

 

 

 

 

 

 

 

 

 We also know that we need to create and administer an operational system
that will be flexible enough, over time, to deal with the current
situation where there is too much supply; then change to a system where
the developments have occurred and we have a under-supply.

The final step if you like, is where the city is fully back to normal
and congestion is occurring and mode shift needs a bit of a boost, as
most cities require a mode shift in their transport plans these days.
To get the required mode shift, we may need to put in the plans that a
desire that public car parks are all managed to a guide of 85% but also
private car park resources (don't know how to enforce it yet) are also
managed to 85%.  That will see a large reduction in extra car parks, the
combining of car parks by neighbours and the use of car parks for other
uses.

That's the theory anyway.

 

Kevin Warwood

Starting All Over Again - Parking After an Earthquake

Hi all,

I promised I would include a video of my presentation to the Australian Parking Convention here so here it is.  Only its me doing it from home and not from the convention.

 

I have attached a couple of the videos I used as well to give you some perspective and context to what we are trying to achieve in Christchurch.

This video of the devastation of Christchurch is eye opening.  http://youtu.be/zFk7KnRALXk

The vision of the new Christchurch gives us some faith that the future is positive, even CERA is starting to understand how important parking is to a city in rebuild mode.

Its simple, parking supports 70% of all activity in a city.  To have parking support the rebuild of a city, parking must support 'economic growth or economic activity', to achieve that, parking must aim at full 'utilization' of parking spaces, of which the right fit of a 'modern parking methodology' and a 'modern parking technology' is vital.

Understanding what you have happening in the city is imporatnt.  You must be able to monitor the activity before you can respond with prices and restrictions in parking.  In Christchurch we develpoed a heat map of the activity.

I hope you all enjoy the video, but be aware its 30 minutes long so make a coffee to view it.

Happy holidays.

Kevin Warwood

The Frog That Went To Town - Modern Parking Technology meets Old School Enforcement

So what happens when a parking service grows organically over many years and loses sight of what they are meant to be there to do, what results they are meant to provide and who they are meant to serve?

This is an interesting group of questions because a lot of smaller, provincial size Council's or city's operations have grown up organically and not really understood why they are there now and what they are supposed to be providing for the town.

Blog readers will have understood my dismay at the New Zealand Parking Association conference this year, where every single session was an enforcement session. Not a single session looking to offer education on parking operations. This example and the article below in the Manawatu Standard (central North Island of NZ), clearly start to show a picture of cause and effect. If no one in Council understands the questions above, then enforcement is merely an unguided activity due to annoy everyone and serve no one.

I do suspect that there are a lot of these types of organically grown organisations around the world now, as modern parking technologies clash with old school enforcement models. My wish here is that Councils and cities recognise that this might refer to them and that they seek the help that is available through education or through consultants. If they don't, I believe they will eventually fall to pressure from retailers and the public, to find a solution fast, and will end up with a system that serves no one.

Parking systems must be created by design, especially with modern parking technology, as new technology exposes a lack of modern parking methodologies being employed, as in Manawatu. The first step is to understand why you have parking in the first place, adding modern parking methodologies and a suitable technology mix to match those methodologies and then tailoring the enforcement programme around that. Let me show you;

1.      Why have Parking? - To help support economic activity and its benefits.

2.      How does it do that? - By increasing parking utilisation and efficiencies.

3.      How do you increase utilisation of the resource? - By using a modern technology mix and modern parking methodologies.

Steps 1, 2 and 3 are all about parking operations, not enforcement. Parking enforcement is the ambulance at the bottom of the cliff, so to speak, and the level of enforcement is a result of the level of mis-match between the two. We need a good efficient enforcement team and their model must support parking operations, but it should not run parking. That’s cart before the horse stuff.

The Goal of Parking

Parking utilisation is having every single car park used as much as possible and as long as possible. This is the getting the right amount of cars in the right amount of spaces. Congestion, circulating, queuing, rage incidents, property damage and conversely vacancies are two sides of the same coin, inefficient operations. Most of the towns and cities talked about here have these symptoms.

To improve utilisation you must have the right mix of technologies to suit the chosen methodology, that is technology that allows you to micro-manage your parking to target the local activity. Organic systems don’t fit here and must be improved to deliver what the city or town demands, being improved economic activity, support for local businesses and an efficiently run parking system, with parking enforcement concentrating on behaviour change.Frog Parking is world class technology and it seems a shame to have it maligned by attaching it to an organically grown system.

 

Kevin Warwood

Don Sandbrook, CEO Frog Parking


http://www.stuff.co.nz/manawatu-standard/news/7962876/Parking-saga-The-other-side


Please note: Views expressed in this blog are personal.

Time For Choice from our Parking Conference

For many years I have been going to parking conferences and I look forward to them as well.  In many parts of the world and in many of them I have been astounded at the changing technologies that are shaping how we do things in the parking world, different companies that have come and gone and the wide range of methodologies that have been worked and re-worked (or even re-packaged) in an attempt to do things better. 

The common theme through all of these conferences, admittedly run by professional conference companies, is that they are wide in variety, topics and speakers.  The New Zealand Parking Conference, in Dunedin this year, has to be the narrowest of scope of programmes I have seen in a long time.  This is a programme entirely focussed on Enforcement, while Operations, Technology, Management, Valet, Marketing have been left out in the cold and untouched.

Look at the up coming British Parking association Conference programme on 27^th September 2012,

• The Parking Charges Debate
• Sustainable Towns
• Town Teamwork
• Parking Strategy
• Understanding Parking Behaviour
• Innovation and Technology Focus
• Maximising the Evening and Night Time Economy
• High Streets of the Future
• Accessible Towns
• Understanding and Exceeding Customer Expectations

This is a great programme and it covers all aspects of parking, except Enforcement, which is covered by the speakers they have.

Look at the October 15^th National Parking Association convention’s programme.  They run a choice of six tracks to mix and match from,

• Certified Parking Professional (CPP) - education
• Peak Performance - Smart Cities: The Next Wave in Transportation and Parking Management
• Technology - Smart Cities: The Future of Citywide Parking Management.
• Finance - Driving Performance: The Realities of Revenue Control, People, Process & Technology
• Valet - How To Deliver White Glove Service to Meet Rising Front Line Service Expectations
• Management & Operations - The Big 3: Revenue, Maintenance & Management

Nothing in here about Enforcement but they also cover topics in Airport and Hotel parking and have a valet Olympics for fun.

NZPA programme is,

• WOF & Licensing Enforcing
• Kerbside Discretions/Interactions/Explanations
• CCS Disability Action - update on new mobility cards
• Ministry of Transport Updates
• History of the Number Plate

I am thinking that the NZPA conference is so narrowly focussed that it has become a Council only jaunt and since Councils have a small market share, in the bigger cities anyway, they ignore the majority of the car parking market.

I hear that there is a Healthcare Parking conference planned for Christchurch in December this year, to coincide with the re-build of Christchurch.  Maybe there will be specialist conferences pop up to fill the large gap left by NZPA.  There is already an airport conference for Australasia that has a parking component in it, as parking is a huge part of airport operations these days.  Other specialist conferences should be welcomed as the topics mentioned above must be covered regularly in New Zealand.

I think there is a need for a Parking conference in New Zealand, that will cover all of the topics of parking, offer some education and give participants, and that means the private sector as well, a well earned choice of topics.  This will only create a closer and better performing sector that will deliver better and more consistent standards to the public of New Zealand.

Kevin Warwood