Showing posts with label enforcement. Show all posts
Showing posts with label enforcement. Show all posts

Monday, March 18, 2013

Parking Operations Design - A Lesson

I had an interesting email conversation with a General Manager (names removed of course) of a major parking equipment provider the other day. It started out as a discussion on the article about supply and demand economics, or actually the theory of Constraints, and how to get to 100% occupancy. The discussion ended up with a summary of how I see the purpose of parking and how the purpose of parking serves the city. This is a sort of step by step guide to designing a city’s parking operation. These tips will also give you the ability to micro-manage parking.
 
Parking operations systems can be simple. Here are some of the basics;
 
  • The purpose of parking is to support economic activity. An economist will argue that even a visit to a park, University or Hospital has an economic impact. Christchurch City Council's Long Term Plan has some wording around 'Community Outcomes' for parking, but in the end, they all add up to mean, at its highest level, supporting economic activity.
  • Measure what is happening on the street. On-street parking is the bellwether of all activity in the city. Its the nervous system of the body of the city. If construction or retail picks up, it will be reflected on the street. If the area becomes dead, the street will tell you. You can measure the fact that a new off-street car park opened by the data you get from the on-street machines, and then you amend your prices. Measuring what is happening on the street will tell you how to approach your pricing. You also don’t need to purchase sensors to start with. You can measure occupancy and utilization (Utilization is occupancy over a period of a day). 
  • Set up zones or precincts of the right size and shape to affect the parking load or activity in the local area, be it a mall, a university or a commercial district. Christchurch has 16 (draft) zones. Having zones that are too big creates abstract pricing. Abstract prices will support activity somewhere in the city at some stage, but will be too high in some and too low in others. Prices must be just right ... all the time. Having smaller zones allows you to micro-manage your pricing and modern technology can now help you to micro-manage parking. Zones also allow you to set zoned permanent on-street parking or residential parking in certain zones only.  
  • Link pricing to occupancy. Managing your demand to 85% occupancy, not higher or lower. This will make sure that the retailers are happy as you can't get more customers into a retailers car park than the capacity of a car park. Extra cars are just people circulating and not shopping. Retailers rarely understand this. Retail's issue is one of capacity and management of that capacity, not price. If shoppers don't come, drop the price. If they do and its overcrowded, raise the price. You still cant get more customers in than the number of car parks, so price is irrelevant other than to maintain occupancy. 
  • Enforce to support parking operations. The purpose of enforcement is to support the parking operation's designed plan. If the plan is not right, it only hinders economic activity because too many tickets are issued. One of my mantras is 'your level of parking enforcement is equal to the level of mis-understanding of your parking operation'. Enforcement also gives you some good signals that the parking operation is not right, by the number of tickets being issued or a change in the number of tickets being issued. 
  • Get the parking decisions closer to the operation. Politicians generally only know about price when they deal with parking. They don't understand the other issues that make up the price. I'm not saying they don't want to know. They are busy people. So education is best so the best decisions are based on occupancy, not price.
  If you manage to get all of this past the politicians, you will have a fully functioning, parking operation that is responsive to the many detected changes in the city's on-street activities..... and it will support economic activity. Simple. The perfect parking operation is one designed to read and respond to on-street, off-street, public, private and institutional parking signals.
  
Technology must fit into this plan. The decision on the type of technology to buy is the last decision made. We sometimes get our priorities back to front by purchasing equipment without understanding the design of the parking operation nor the purpose of the parking, first.
  The key understanding that must be made here is that this system will work in Hospitals, Airports, commercial structures, on-street and shopping malls. When run well, it will enhance the customer experience and not hinder it. It will ensure greater use of the car parks and manage the peaks.
 
The bigger key message is that we often don't design our parking operations well in the first place nor do we re-design it when it needs help.
 
 
Kevin Warwood
Parking Operations Designer
 
 
 
These views are my own.

Thursday, March 7, 2013

Spy-Car Demise – Replacement Revenue is in the Occupancy Gap

This article in the Dominion Post, Wellington in New Zealand, is an example of what we are starting to see around the world, city’s parking revenues declining as compliance climbs.  This is a good thing …. Well mostly.  Revenue is still missing in the gap between occupancy rates.

There are some interesting issues here that will allow Wellington to get a system that services the main purpose or parking, to support economic activity and get its occupancy up to the stated aim of 75%.



Council claims its occupancy is at 58%.  The design of its parking operation is clearly imbalanced or not quite right.  If it responded to the occupancy data it is getting, it would have dropped the price by now to encourage a higher occupancy rate.  It may even utilise a multiple price system where the evening rates are set separately to encourage the night time parking.  This is greater utilisation of the parking resource.  Whatever it does, it should be designing a parking operation to aim at occupancy, not revenue.  The revenue is the outcome of better occupancy and a better designed parking operation.

One of the major retailer’s answers was to suggest that Council get control of more off-street parking to encourage more people back into the city.  I suspect that, being a typical retailer, they want a car park full of people, circulating and queuing to get into their shops.  This is a bad sign, not a good sign.  Issues about retail are normally about capacity of the car park.  A well designed parking operation’s goal is full occupancy.  If you have a full car park, then that is the amount of shoppers you are going to get. If the car park is overflowing, you don’t get extra shoppers, you get people sitting in cars and getting upset.  The best car park operators are the private ones as their main goal is occupancy.  I suggest the retailers look elsewhere for answers, i.e. on-street pricing regimes, rather than who is operating the car park.

With the retirement of the spy-car, the Council is having some budget issues.  That is what this article is about.  Extra revenue can be gained in the gap between 58% and 75% occupancy.  This gap can be easily made up by improving the design of the car park operation and introducing variable pricing.  If the Council aims at getting a higher occupancy, such as the international best practice figure of 85%, then the revenue the Council is looking for is the figure between 58% and 85%.  That will make up for the missing revenue from the retirement of the spy-car.  Make occupancy the goal and not revenue.  Everyone will be happier.



This is the personal opinion of the writer.

Saturday, November 17, 2012

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

Cr Duncan McCann and Frogparking chief executive Don Sandbrook.


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.

Tuesday, October 9, 2012

Dunedin Hospital - A case of the frog boiling slowly.

Dunedin has been in the midst of a Hospital Parking crisis for sometime.  Infringing preganant woman is an extreme step to realise that.  Might be a case of the frog being boiled slowly.


http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10839111

Tuesday, September 18, 2012

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 27th 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 15th 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



Friday, January 27, 2012

Car Park / Lot / Parkade Analysis

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Business Analysis Services offered to evaluate, cost and recommend new or existing car parks, from loss makers to additions to your portfolio.

I have been involved in car parking for many years from managing;
  • Airports
  • Hospitals
  • Universities
  • Toll Roads
  • Multi-story car parks
  • Large government departments
  • Property companies
  • Small car park contracts
  • Operations
  • Evaluation/feasibility
Also equipment set up, RFP and tender processes and new technologies.  I have also spent some time concentrating on improving loss makers and contract re-negotiation. 

Send me an email to kevin.warwood@gmail.com and we can discuss your needs. 

Kevin Warwood

Monday, December 5, 2011

The Hospital Parking Conundrum

In modern Health care facilities, there are generally two methods for the control of parking, charging and enforcement, and in most cases the issues of charging for parking in hospitals are a 'contstraint' issue and not just about the money.

Most parking professionals, who have in healthcare parking, know that the main culprits on site are the staff who will park anywhere and use their status to escape the consequences of their actions (very big generalisation here). A clearly defined area for staff parking is required and then (especially if no charging is used) a complete and high tech Enforcement solution is required, with fines that will make the culprits think twice about repeating their actions. Being soft on these issue are just a method of creating problems in the future. Toughen up and back the patients and staff who want to park and follow the rules and isolate those who make the need for high technology and enforcement a must.

Hospital parking is the most complicated business case in parking, especially on the large hospital sites. To control the site is always going to be difficult and will never get full buy in from the users as you are annoying all parties of users.

If you take away the fees in this case, you must replace them with a full Enforcment system or the same doctors who complain that it impedes their practises will be complaining about the same thing as patients will struggle to find a car park.

 

 Hospital parking fees should be scrapped, journal says

November 28, 2011
Richard J. Brennan
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Parking at North York General Hospital on Monday. The Canadian Medical Association Journal is calling for free parking at hospitals, saying exorbitant fees are interferring with patient care.

TARA WALTON/TORONTO STAR
 

It’s time hospitals abolished parking fees for the sake of their patients, according to the Canadian Medical Association Journal.
In an editorial, the respected publication states hospital parking amounts to nothing more than user fees and is subsequently an impediment to health care.
Putting the proceeds toward health care runs counter to the Canada Health Act’s objectives and could become the subject of a legal challenge, writes Dr. Rajendra Kale, the journal’s interim editor-in-chief.
“Some patients (who have often waited several weeks to see a doctor) try to end a consultation abruptly when they realize that they will have to pay for an additional hour for parking,” he writes. “This is parking-centred health care, which is not compatible with patient-centred health care.”
David Montgomery, president of Haldimand War Memorial Hospital in rural southwestern Ontario, agreed.
“My own personal philosophy is that we shouldn’t have to charge patients and visitors. We should be doing whatever we can to make it easier for them to seek out care,” he said.
Montgomery added that War Memorial’s “favourable financial position” has helped them avoid parking fees — a luxury not afforded by many other Canadian hospitals that rely on the revenue as a source of additional income.
“We think what they are recommending is absurd and totally unrealistic,” Tom Closson, chief executive officer of the Ontario Hospital Association, told the Toronto Star on Monday.
It’s important to remember the province funds only 74 per cent of all hospital costs, or $17.2 billion, while hospitals in Ontario spend $23 billion, Closson added. “This is a portion of . . . what they need to pay the difference.”
The editorial notes hospital parking fees were abolished in Scotland in 2008.
“Little needs to be said about the plight of patients undergoing regular dialysis or chemotherapy who need to make an endless number of trips to the hospital,” Kale writes. “And what about parents who have to drive sick children to hospital?”
Many Canadians have no option but to drive, given the size of the country and the fact specialists are often located in larger urban centres, Kale argues.
Natalie Mehra, director of the Ontario Health Coalition, a public health advocacy group, said scrapping “exorbitant” hospital parking fees makes perfect sense.
“What it means is that’s it’s a levy on the elderly and family members of people who are ill or people who are ill and require hospital care. It’s almost like charging them a user fee to see their doctor,” she said.
The CMAJ says the amount hospitals generate through parking fees is only a small amount of their overall budgets — in some cases, about 1 per cent.
Closson said that may not sound like a lot of money, but it represents $230 million a year across Ontario. “It’s quite a significant revenue source,” he said.
In Atlantic Canada, Cape Breton’s district health authority began rolling out paid parking to its hospitals in the mid-1990s to fund medical equipment purchases, said district spokesman Greg Boone.
Four of the district’s six critical care hospitals now charge patients and residents $3 each time they enter the parking lot. The fee, though small compared with the rate of major urban hospitals, is expected to generate over $900,000 this year for hospital programs, services and equipment, Boone added.
Justine Jackson, a senior vice-president and chief financial officer at Toronto’s University Health Network, said hospitals everywhere are looking to “make money so we can do more health care.” The network’s three hospitals — Princess Margaret, Toronto General and Toronto Western — net about $6.5 million annually in parking fees.
“It’s not quite a user fee because patients do have a choice,” Jackson said. “They don’t have to drive. They can take public transit. So the fact that they prefer to drive is a choice they make.”
At Queen’s Park, Health Minister Deb Matthews noted “parking fees do not fall under the Canada Health Act,” so the province can’t control them.
But Matthews said people should raise the matter with their local hospital, pointing out some already give special rates to some dialysis patients or parents of children in neonatal units. “I would urge hospitals to have an open mind when people come with concerns about the fees,” she said.
Pamela Fralick, president and CEO of the Canadian Healthcare Association, said in a “perfect world” it would be great to abolish parking fees. “But if we do remove this source of revenue, something has to give and my question would be what it is that we give up?”
With files from Robert Benzie and Niamh Scallan

The lowdown on parking rates — and revenues
Sunnybrook Hospital
1,200 parking spaces.
$4 per half-hour, $23 max per day at Bayview main campus (all figures are regular weekday rates)
Approximately $6 million projected parking revenue for this year
“About 90 per cent of parking fees go to fund scientists’ salaries and 10 per cent for research administration,” said Sunnybrook spokesman Craig Duhamel. “It would really be a major blow to our research infrastructure and our ability to pay for scientists salaries (if parking fees were abolished).”

North York General Hospital
1,700 parking spaces at the general site
$4 per half-hour, $18.50 max per day
$5.5 million projected parking revenue (for all sites)
Money raised from parking covers the cost of maintaining the lots and supports programs, said spokeswoman Elizabeth McCarthy. “If we didn’t have this money, we would have to consider cutting some services.”

The Hospital for Sick Children
970 parking spaces
$5 per half-hour, $30 max per day
4.5 to $5 million in parking revenue per year
Parking fee revenue is used to offset the hospital’s operating costs, said hospital spokeswoman Matet Nebres. “If this funding source was lost, SickKids would have to find other sources of revenue to support its current level of activity,” she added.

The Scarborough Hospital
599 parking spaces.
$3.50 per half-hour, $14 max per day
$3.6 million projected parking revenue for this year
Revenues support patient care

Mount Sinai Hospital
109 parking spaces.
$4 per 20 minutes, $20 max per day
$1 to 1.5 million projected parking revenue for this year
“Commercial and retail ventures, such as parking, generate much needed revenue to help support Mount Sinai’s programs and equipment upgrades to best serve our patients,” Mount Sinai spokesman Rob McMahon said.

St. Michael’s Hospital
20 parking spaces.
$4 per half-hour, $20 max per day
$122,000 projected parking revenue for this year
Funds are used to offset the hospitals operating costs-

University Health Network
1,238 parking spaces at Toronto General Hospital; 604 parking spaces at Toronto Western Hospital
$4.50 per half hour, $28 max per day
$7 million projected parking revenue for this year
“UHN generates net revenue of seven million dollars per year which is the equivalent of seven ICU beds or approximately 30 medical beds,” says Justine Jackson, University Health Network’s senior vice president and chief financial officer. “If we didn’t charge for parking, we would have to find the equivalent amount in savings which would affect patient care.”
Niamh Scallan

Tuesday, November 29, 2011

Rugby Cup Parking in New Zealand

All is in readiness for World Cup parking in New Zealand


With the Rugby World Cup only one sleep away here in Auckland, I have to admit that the mind does stray from the job at hand and the tasks that revolve around increasing revenue off a 6m x 2.5m block of land in the CBD are of minor concern today. The anticipation of such a big event in a small country like New Zealand is anticipation of an All Black win rather than the crowds of people who will flood the city for the opening night and the planned entertainment over the next 2 months. The plans are in place, the flags are all up, the rules have been published in the newspapers. And yet I allow myself a little rub of the hands as I think of the people flowing through Auckland Airport, through a car park in our portfolio, into the CBD and one of the many car parks that belong to the company and hopefully not too many into the Hospital, yet another car park in the portfolio. For parking, this will be a big event as well. All is in readiness.


A vague comparision with New Zealand and one of the major rugby challangers for the coveted rugby crown, South Africa, is a small trip into rugby/parking fantasy, especially since I have never been to SA.

New Zealand has mostly two main commercial rivals in the parking business, with a group of smaller businesses and local councils in the melee also. The 'Red' Parking company is by far the largest of the companies and is based out of Australia while being owned out of Hong Kong. They have a dominant market share created by being one of the first on the scene and has held over many years. The 'blue' Parking company is a fierce rival and has a large market share in the Auckland and Wellington markets.


The local councils are present and at varying levels of competency, mostly measured by their requirement to compete. An example of this is the Auckland City Council which has just spent many millions upgrading its very large CBD sites with the latest in technology from SkiData equipment, Meter-Eye vehicle guidance systems, a fully functional centralised control room, major over-road VMS signage for empty bay counting on the main roads into the city and dynamic signage at each car park. The investment has extending to Meter-Eye in streets and off street which may lead to a far smaller enforcement team as the signals from the meters lead fewer officers directly to cars overstaying their welcome in the busy retail precincts.


At the other end of the scale, tourist town Taupo, decided not to go down the track of charging for street parking and introduced the same meters to signal the end of your 60 minute stay to an enforcement officer, who would write you an infringement notice on the spot. There are the small vacant development lots with a pay and display meter but mostly parking in New Zealand is high tech as a result of high labour costs and high competition.


Apart from labour costs, I suspect their also may be one or two other differences between parking in South Africa and New Zealand, being the resistance to towing vehicles and resource consenting.


There is a general move away from towing in New Zealand as property law allows the owner to display terms and conditions upon entering the site. If you don’t abide by those terms and conditions, the owner can level an infringement fee similar to a fine as a local officer might level, for breach of contract. There is now a lot more revenue in levelling infringements than there is in accepting a ‘commission’ for allowing a tow truck company to operate out of your site and is a major growth area in parking revenue.


Resource Consents are an area where the local council enforces the ‘use’ of the land in the CBD and if parking is not a permitted activity, as deemed by the Resource Management Act, then the parking company must apply for a ‘departure from the consent’ to operate a commercial car park. The result of this is that the future of the small car park being set up on a development site in the city has now gone.


I do suspect that one thing will always be the same between South Africa and New Zealand and anywhere else in the world for that matter, the public will still resist paying for parking and we, as professionals, will still have to be on our toes in this business and the rugby competition will be fierce. All is in readiness.