Multi Space “Smart” Meters: ROI

Evaluation
By: Paul F. Roberts
 Provisos
• Only looking at question of ROI for multi-space
“smart” meters
• No serious evaluation or “bake off” of competing
vendors/platforms
• No input from Traffic Advisory Committee or
consideration of effects on parking
– Spill over to neighboring streets
– Changes to enforcement
• Tried to find most recent and reliable data
– Some data is old
– Calculations mostly “back of the envelope”
Parking is a Resource
 Expanded Parking Metering
• Objectives:
– Raise per space revenue!
– Provide convenience to shoppers, commuters
and residents
– Monetize unmetered spaces around commuter
and high traffic locations
– Provide better intelligence to town around
parking use/patterns
 Who I talked to:
• Jeff Conti –Belmont
• Floyd Carman - Belmont
• Sgt. Kevin Shea - Belmont
• Brad Gerratt – City of Cambridge
• Todd Kirrane – City of Brookline
• Steve Grassfield – City of Austin, TX
• Dan Kupferman – Parkeon Systems
• Dave Delaney - MacKay Meter Systems
Main Players
 Multi Space Meters: Advantages
• User Friendly
• Take Credit, Coin and Cash (optional)
– Credit option enables higher rates
• Attractive visually
– One to many ratio for meters/spaces
• Easy to administer
– Text, e-mail based notification when servicing needed
or problems encountered
• Higher per space revenue
– No spill over
 Multi Space Meters: Features(*)
• Coin, Credit, Cash & Smart Card
• Sleek design, small footprint, improves streetscape
• High-security cash protection & self-locking coin box
• Lighted, easy to use LED or LCD displays
• Wireless (WiFi or 3G) communications, real time credit
card authorization
– PCI and ADA compliant
• Remote wireless download of rates and messages
• Web based management (hosted by vendor or on
premises)
• Power supply from battery, municipal or solar
(*)varies by vendor
 Multi Space Meters
• Average 7-10 Spaces per meter
– Higher ratio for in-lot deployment
– Brookline: 850 single space meters replaced with
90 multi space meters
– Convenience (distance walked to meter) is the
limiting factor
• Alternative single head meter with
credit card
– MacKay and IBS Systems Offer
 Multi Space Meters
• Higher up front cost than single space meters
– $7,000 to $9,000/unit
• Important to note ongoing fees per meter:
– Management and maintenance
• $50-$75/meter/month
• Warranty $250 to $1,200/meter/year (optional)
– Carrier fees for 3G access
• $30 to $50/machine/month to Verizon, T-mobile, AT&T, etc.
• Avoidable if unit supports WiFi access with municipal WiFi
(Brookline)
 Multi Space Meters
• Vendor transaction processing fees
– Varies from vendor to vendor. Important to ask about
• Credit Card Processing Fees per transaction
– Can exceed cost of transaction for small time
purchases
• Regulatory compliance (PCI DSS)
– Less exposure when vendor handles CC processing
• Lifespan
– 10-12 years
 Multispace Meters
• Feedback: Todd Kirrane, Asst. Transp. Sec. City of Brookline
– RFP with Parkeon, Digital, Cale, Duncan, MacKay
– Pilot deployment of four machines in two lots
• 120 spaces total
– Removing 850 single space meters, replace with 90 multi space
meters
– Existing parking debit card system needed integration
– Muni WiFi integration
– Revenue up and maintenance costs down from pre-meter
– 2 FTE civilians cover 2,700 meters town wide and work as
crossing guards
– Moving from $.75/hour to $1.00/hour rate.
 Multi Space Meters
• Feedback: Steve Grassfield, Transp. Mgr, Austin, Texas
– Parkeon Meters
– $7,400/meter + $250 warranty/year
– 700 units cover 5,000 spaces, replace 3,800 Duncan single head
meters (plus expansion spaces)
– 64% of transactions credit card based
– 2.5m transactions in 2009 – increase of 29% y/y
• Citations declined from 115,000 to 90,000 (ease of payment)
– No change in enforcement requirements
– Revenue: $4m a year up from $2.9m with single head meters
• More spaces
– Suggest revenue or general obligation bond for meters?
Smart Meters: Right for Belmont?
 Recent History
• 2002 Belmont Center Parking Study
Committee (BSC Group)
– Originally commissioned to assess impact of fire
station construction/location
– Great and fairly recent data on parking
use/patterns
– Available online: http://bit.ly/d2HUnu
 Parking by the numbers
• Main parking areas: Off Street:
– Claflin St. Lot - ~140 spaces
– Macy’s Lot - ~62 spaces
– Town Hall Lot: ~39 spaces
– Cushing Square Lot: 54 spaces
– Waverly Square Lot: 38 spaces
Total: 333 spaces
Parking by the Numbers
 Parking by the Numbers
• Most used spaces: Off Street
– Claflin Street and Macy’s Lots (~140 and ~62 spaces):
• 76% and 73% utilization daily
• 193 and 105 vehicles parked/day (11 hours)
• 63% of Claflin St. Lot vehicles parked more than 4 hours
– Cushing Square Lot (54 spaces):
• 75% utilized daily
• 36% parked more than 4 hours
– Town Hall Lot (39 spaces):
• 78% utilized daily
• 58% of vehicles parked more than 4 hours
– Meters in use already
Multi Space Meters: Current
 Parking by the numbers
• Main parking areas: On Street
– Concord Ave: 113 Spaces
– Waverly Square: 106 spaces
– Common St. N & S of Trapelo: 72 spaces
– Leonard Street/Alexander Ave: 64 spaces
– Trapelo Road: 52 spaces
– Cushing Ave. 31 spaces
– Royal Road: 17 spaces
Total: ~512 spaces
 Parking by the Numbers
• Most Used Spaces: On Street
– Leonard Street/Alexander Ave (64 spaces):
• 77% daily utilization
• 1.7 vehicles/space/hour
• 5% parked more than 4 hours
– Trapelo Road (52 spaces):
• 64% daily utilization
• 1.5 vehicles/space/hour
• 6% parked more than 4 hours
Main Parking Areas: Leonard Street and Alexander
Main Parking Areas: Trapelo Road & Waverly Square
Main Parking Areas: Concord Ave. and Royal Road Area
 Parking by the Numbers
• All day parkers On- and Off Street
– Royal Road: avg. of 7.8 hours
– Claflin Street Lot: avg. of 5.9 hours
– Town Hall Lot: avg. of 5.6 hours
– Waverly and Cushing Square Lots: 4.0 hours
– Trapelo road: avg. of 4.0 hours
• Lots already have meters
• On Street offer chance for additional revenue
• Availability of free, on street parking depresses
use of metered parking
By the Numbers: Meter Revenue
 By the Numbers: Parking Passes
• Average Monthly Parking Permits (@$60/m)
– ~$100,000/year
• Belmont Ctr/Claflin St. Lot : 63 ($3,780/mo or
$45,360/yr)
• Cushing Square Lot: 40 ($2,400/mo or $28,800)
• Waverly Square Lot: 38 ($2,280/mo or $27,360)
By the Numbers: Non-Meter Revenue
• Time-limited parking
– Belmont Center, Cushing, Waverly, Trapelo Road
and Belmont Streets, etc.
– Three .25 parking enforcement officers
– Manual tracking and paper tickets
By the Numbers: Non-Meter Revenue
 By the Numbers: Meter & Pass
Revenue
• Claflin Street Lot:
– 140 spaces x 309 park-able days*
= $2.44/space/day (2010 meter+ pass rev of
$105.723)
• Cushing Square Lot:
– 52 spaces x 309 park-able days
=$2.21/space/day (2010 meter + pass rev of $35,529)
• Waverly Square Lot:
– 40 spaces x 309 park-able days
= $2.69/space/day (2010 meter + pass rev of $33,352)
(*) non-Sunday, non-holiday
 By the Numbers: Non Meter Revenue
• Average Revenue: FY 2007-2010: $167,000
– 512 spaces x 309 park-able days = ~$1.06/space/day
• Fluctuations due to staffing issues
– Health issues reduce enforcement and ticketing
• Spotty enforcement
– Enforcement focused on Belmont Center, Cushing and
Waverly
– Trapelo Rd. between Waverly and Cushing is
“sometimes”
– Belmont St. from Cushing Square to Cambridge line
sporadic to no enforcement
 Other Costs
• Processing Fees: Fy 2007- 2010 Avg. $18k
• Enforcement Officers: $60,613
– Three, part time parking enforcement officers
• Salary, benefits, uniforms
• Total: 70 hours/week
• 1 officer @ 4x5, 2 officers at 5x5
• Materials:
– Paper Tickets: $2,300
• Maintenance:
– Town does not track – sporadic costs for
parts/maintenance
Test Case: Royal Rd. Commuter Station
Test Case: Royal Rd. Commuter Station
 ROI: Royal Rd. Commuter Station
• Costs:
2 Meters @ $8,500 = $17,000(*)
$960 (yearly management, comms)
• Revenue:
17 Spaces @ $0.75/hour
Avg. Stay: 7.8 hours @ 100% utilization
Revenue: $5.85 x 309 x 17 = $30,730/year
• ROI: ~7 months
• Net to Belmont of ~ $297,000 over life of meters
(*) One meter may be an option
 ROI: Leonard St. Shopping District
• Costs:
8 Meters @ $8,500 = $68,000
$4,800 (yearly management, comms)
---------------------
$72,800 in first year, ~4,800 - $6,000/year after
• Revenue:
64 spaces @ $0.75/hour
10 hours/day (8:00am to 6:00pm) x 309 days
77% utilization
------------------------
$114.206.00
• ROI: ~7.5 months
• Net to Belmont of ~$1,094,000 over life of the meters
 Other Considerations
• ROI estimates don’t consider:
– Conservative on number of meters required
– Overlap (double metering) raises revenue
• No physical meter – parked car takes “slip” with it, new
car purchases new slip
– Enhanced ticketing enforcement
• Easier, faster, more efficient to check for slips than to
do visual monitoring for time violations
– Eight year old numbers on parking/utilization
– Increase in rates increases revenue, speeds ROI
 Other Considerations
• Street signage
• Staff Training
• Spill Over and enforcement on side streets
• Compliance!
• Collection
• Community push back (esp. merchants,
neighbors)
 Recommendations
• Belmont make a goal of raising per-space revenue
across town
– Meter enforcement of on-street parking using multi
space meters in choice locations
– Review of enforcement and meter rates esp. for
commuters
• Proper RFP to leading vendors
– Input from Traffic Advisory Committee, merchants
• Trial 1 year deployment at Royal Road Commuter
Rail Location to test ROI
– 1x or 2x meters
Thank You!
Questions?