AGENDA #9

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Report on Automatic Pay Stations and Reconfiguration of Lot 5

DATE: May 12, 2003

The purpose of this memorandum is to provide information regarding the selection of a vendor and installation of two pay stations for Town Parking Lot 5. This memorandum also recommends reconfiguration of Lot 5 to establish better parking arrangements for hourly customers.

Adoption of the attached resolution would authorize the reconfiguration of Lot 5 in order to provide public access to both the Franklin Street and Rosemary Street portions of the lot.

Enactment of the attached ordinance would appropriate $44,000 from the fund balance of the Parking Fund to finance the installation and maintenance of two pay stations in Lot 5.

BACKGROUND

Lot 5, located at the corner of West Rosemary and Church streets, was purchased in the 1980s to provide additional parking in the Downtown area during planned construction on the site of old Lot #1. Prior to the opening of the Wallace Parking Deck in 1993, the Town operated hourly attendant parking in Lot 5. This was discontinued in 1994, about one year after the opening of the Wallace Parking Deck because of the declining use of the lot and the cost of maintaining an attendant.

Lot 5 has 170 parking spaces. Of these, there are 104 separate spaces on the Franklin Street side of the Lot, which are gate controlled. These spaces are leased in the following ways:

70 are leased to FGI
29 are leased to the University
5 are leased to individuals.

In April 2002, the Council instructed the Manager to evaluate options regarding parking vending systems. The Council also requested reconfiguration of Lot 5 in order to provide public access to the Franklin Street portion of the lot, thereby increasing the potential usage of the lot.

The possible redevelopment of Lot 5 is a component of the Town’s Small Area Plan. On April 28, 2003, the Council adopted a resolution authorizing the Manager to issue a Request for Qualifications for economic development consultant services for development of Lots 2 and 5. The consultant will work with Council and staff in the process of issuing a Request for Proposals for development of the lots and, if the Council decides to proceed, entering into a development agreement and managing the development process. The deadline for responding to the Request for Qualifications is May 30.

DISCUSSION

The Council has expressed interest in establishing a new parking permit vending system in Lot 5. Automatic pay stations would operate in Lot 5 without any barrier gates or parking meters. The lot would be left open, and all spaces would be numbered. There would be two pay stations installed in the lot, adjacent to the main pedestrian walkways, for accessibility.

With an automatic pay station, parking patrons could:

Park in numbered spaces.
Enter the space number at the automatic pay station, with the amount of time they intend to occupy the space.
Pay for the amount of time requested, with cash, coins, credit cards, and “smart cards.”
Receive a printed receipt and place it on the dashboard of the car. The receipt would show an expiration time.

Signs would indicate which spaces are available for public use and which are leased.

The table below compares pay stations to metered or staffed parking operations.

Advantages	Pay Stations	Metered Operations	Parking Attendants
	· Variety and convenience of payment methods, including coin, bills, credit or debit card, or “smart” card if desired.	· Less costly to operate than attended parking when demand for parking is light	· Provides personal service and human contact
	· Date- and time-stamped receipts, providing verification to help resolve citation disputes.	· The simplified mode of operation offers reasonable return on investment.	· Can reduce damage claims and theft because of the presence of an attendant.
	· Date- and time-stamped receipts, providing verification to help resolve citation disputes.		· An attended operation would allow better control of a mix of hourly and rental parking based on need.

Advantages

Pay Stations

Metered Operations

Parking Attendants

· Less costly than an attendant operation when parking demand is light.

· Increased revenue due to inability to “piggyback” from previous customer.

· Allow variable rate structures

Disadvantages	Pay Stations	Metered Operations	Parking Attendants
	· Would cost about $44,000 initially, including the cost to install electric service lines, plus Town labor costs to move meters and signage	· Requires patrons to have coins on hand. Patrons now are able to purchase a maximum of 2 hours, requiring multiple coins.	· More costly than pay station or metered alternative because of the personnel costs. Two additional parking lot attendants and some additional contract attendant hours would result in an annual operating cost of about $35,630 based on current operations at 10 hours per day, six days per week.
	· Decreased gross revenues because of credit card fees.	· Requires continuous enforcement if heavily used.	· Requires the purchase of new fee computers and refurbishing of attendant booth, totaling approximately $55,000.
	· Would require some initial staff training and public education.	· The threat of receiving a citation for an expired meter can limit attractiveness of using meters.
	· Relocation of existing meters, since meters would not be needed.

Other Considerations

Credit Cards

The automatic pay station offers patrons the opportunity to use credit cards. We note that there are costs to the Town to provide this feature. Town costs for the credit card feature include transaction costs of approximately 20 cents per transaction, plus 2% of the total transaction dollars, or about $1,200 per year; installation of a telephone line for approximately $500; and an Internet connection for credit card authorization at a cost of about $1,800 for dial-up hardware or about $3,000 for communications module hardware.

“Smart” Cards

An automatic pay station could be equipped with the capability of accepting “smart cards.” These are credit card-sized plastic cards with memory chips embedded on them, similar to a pre-paid telephone card. The smart card holds information in an electronic form.

We do not believe that smart cards are necessary for the system at this time, but could be developed later. Smart cards are available with a variety of options. Smart cards would be sold at the Parking Services Office and at the Town Finance Department. Although many patrons may choose to use credit or debit cards instead, there are some advantages to consider with smart cards. Smart cards would be available to those patrons who may not have credit cards or who are unable to obtain them due to bad credit. Smart cards could also be made available as gifts.

Coin Dispenser

The pay stations will accept bills and will dispense change in coins. If a patron pays for parking with a $5 bill and requests $4 in change, it will be dispensed in coins.

Reconfiguration of Lot 5

With the increased demand for hourly parking, particularly during evening hours, continuation of the current configuration of Lot 5 is not the most efficient use of this facility. However, complete elimination of monthly parking is not recommended, because hourly demand in the short-term is not likely to be sufficient to maximize the use of this facility.

The Town has leased parking to FGI since 1994. The current lease with FGI is on a month-to-month basis for 70 spaces. We believe that the University will continue to lease 29 spaces, and that individuals will continue to lease five (5) spaces.

The existing configuration of the lot provides public parking along the Rosemary Street side (Attachment 1). We propose the following changes, which are shown in Attachment 2:

· Locating public parking spaces on both Franklin Street and Rosemary Street.

· Locating public parking along the perimeter of the lot (67 spaces – one more than 66 because of removal of the gate barrier).

· Locating leased spaces generally in the interior of the lot (104 spaces).

· Removal of the entry gate and interior gate barrier.

· Locating one pay station on the Rosemary Street side, in the center island under the existing tree.

· Locating one pay station on the Franklin Street side, in the east end of the center island.

If demand for hourly parking increases, then the number of leased spaces can be reduced in response to the demand.

NEXT STEPS

If the Council adopts the attached resolution to reconfigure the lot and enacts the attached budget ordinance, we would then pursue installation of the pay stations in Lot 5 and would begin the public education process and notification process to leaseholders. We would also take the steps necessary to physically modify the parking layout.

In the longer term, redevelopment of Lot 5 may affect the placement of the existing equipment. The pay station equipment can be removed and relocated to another location.

CONCLUSION

We recommend that the Council adopt the attached resolution, which would authorize the reconfiguration of Lot 5 in order to provide public access to both the Franklin Street and Rosemary Street portions of the lot.

We also recommend enactment of the attached ordinance, which would appropriate $44,000 from the fund balance of the Parking Fund to finance the installation and maintenance of two pay stations in Lot 5.

ATTACHMENTS

Map of Parking Lot 5 (Existing Configuration) (p. 8).
Map of Parking Lot 5 (Proposed Configuration) (p. 9).

A RESOLUTION AUTHORIZING THE RECONFIGURATION OF LOT 5 IN ORDER TO PROVIDE PUBLIC ACCESS TO THE FRANKLIN STREET PORTION OF THE LOT (2003-05-12/R-6)

WHEREAS, Town Parking Lot 5, located at the corner of West Rosemary and Church streets, was purchased in 1990 to provide additional parking in the Downtown area during the pending construction of a new parking deck on Lot 1; and

WHEREAS, Lot 5 has 170 parking spaces, and of these, there are 104 separate spaces on the Franklin Street side of the Lot, which are gate controlled; and

WHEREAS, the Council asked the staff to consider a reconfiguration of Lot 5 in order to provide public access to the Franklin Street portion of the lot and possibly to increase the usage of the lot;

NOW, THEREFORE, BE IT RESOLVED that the Council of the Town of Chapel Hill hereby authorizes the reconfiguration of Lot 5 to accommodate the following changes:

· Locating public parking spaces on both Franklin Street and Rosemary Street.

· Locating public parking along the perimeter of the lot (67 spaces).

· Locating leased spaces generally in the interior of the lot (104 spaces).

· Removal of the entry gate and interior gate barrier.

· Locating one pay station on the Rosemary Street side, in the center island under the existing tree.

· Locating one pay station on the Franklin Street side, in the east end of the center island.

This the 12^th day of May, 2003.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2002 (2003-05-12-03/O-7)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2002” as duly adopted on July 26, 2002 be and the same is hereby amended as follows:

ARTICLE I

APPROPRIATIONS	Current Budget	Increase	Decrease	Revised Budget

OFF-STREET PARKING FUND	1,017,921	44,000		1,061,921


ARTICLE II

REVENUES	Current Budget	Increase	Decrease	Revised Budget

OFF-STREET PARKING FUND	1,017,921	44,000		1,061,921

Grants

This the 12th day of May, 2003.