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Business News Transportation

Pay-by-Phone Technology Now Available for Cincinnati’s Parking Meters

Smart Meter IdentificationCincinnati city officials announced last week that the more than 4,000 smart parking meters that have been installed throughout the city are now functioning in coordination with a new mobile app payment system.

The announcement fulfills a long-held desire for motorists looking for more convenient ways to pay parking meter fees.

It is expected that such technology will help reduce the amount of tickets that are dolled out since drivers will now be able to refill their meter from anywhere, simply by using their phone. Those without smartphones capable of operating the PassportParking app will also be able to use their phones to reload meters by visiting http://m.ppprk.com, or by calling 513-253-0493.

“This enhancement is part of the City’s ongoing parking modernization plan to improve the quality and efficiency of the City parking system,” officials stated in a prepared release. “In accordance with these efforts parking rates were adjusted earlier this year, and motorists saw the introduction of prepay and extended hours.”

In addition to the convenience for parkers, the new technology also allows for local businesses to register so that they can discount the parking costs for their customers.

While the new technology will make payments easier and more convenient, it does not help motorists locate available on-street parking spaces, or utilize dynamic pricing that would encourage those looking for a parking space to navigate toward a lesser used area.

While dynamic pricing has been mentioned as a future possibility by both Mayor John Cranley (D) and City Manager Harry Black, it has not yet been made clear when that will take place.

“Pay-by-phone parking is representative of what we are doing across our organization. We are using technology to enhance services we offer our residents and visitors,” said City Manager Black. “This technology won’t replace more traditional means of paying to park at a meter, but it gives people a new, convenient option that makes visiting Downtown or business districts across Cincinnati easier.”

The mobile payment app, which charges a 25-cent convenience fee, will only work for on-street parking meters and kiosks – not off-street lots or garages. In order to properly use the system, drivers will be asked to input the zone, along with the meter number, into the application so that the payment can be traced to that particular space, and thus monitored by parking enforcement officers.

All of this comes after the contentious cancellation of the parking lease agreement put into place by Mark Mallory‘s administration in 2013.

Under that agreement, the City would have leased its on-street parking meters, along with a number of garages and lots, to the Port of Greater Cincinnati Development Authority, which then was to enter into operation agreement with Xerox. In return, the City would have received a large upfront payment, along with guaranteed annual payments.

The new structure maintains more control at City Hall, but it misses on the upfront capital, along with the guaranteed payments.

Instead, the City takes on the risk of meeting revenue projections and keeping operation and maintenance costs within their targets. One thing that remains the same is the presence of Xerox, although their role appears to have been greatly diminished from what it would have been under the Mallory administration deal.

So far the response to the new parking meters and payment functionality has been positive, although some neighborhood business districts, where the meters are arriving for the first time, have experienced some temporary glitches with pricing and hours of operation programmed into the meter.

Categories
News Transportation

New Center City On-Street Parking Rates, Hours of Enforcement Now In Effect

New parking rates and hours of operation went into effect for the Central Business District and Over-the-Rhine on Friday. The changes come after Cincinnati City Council approved the matter in November 2014.

Under the arrangement, 500 new electronic parking meters have been installed throughout Over-the-Rhine to complement the existing set already in place in the Central Business District. Over the coming weeks, the City of Cincinnati will also be installing 1,000 additional electronic meters throughout the Clifton, Hyde Park, Mt. Lookout, Northside, O’Bryonville, Oakley, and Pleasant Ridge neighborhood business districts, as well as key locations throughout Uptown.

The electronic meters, officials say, are meant to replace the old ones with newer models that accept credit card payments and are compatible with future plans for pay-by-phone technology and dynamic pricing structures. Pay-by-phone capabilities are expected to be operational by the middle of 2015.

While nearly a dozen neighborhoods will benefit from the new technology, only Over-the-Rhine will see its on-street parking policies change across the board. As part of the new policy, parking rates in Over-the-Rhine will double to $1/hour; while rates will remain set at $.50/hour and $2/hour in the other neighborhoods and in the Central Business District, respectively.

As of today, parking meters in the Central Business District and Over-the-Rhine will now also be in effect from 9am to 9pm Monday through Saturday, and 2pm to 9pm on Sundays. Parking hours of enforcement in the remaining 50 neighborhoods, meanwhile, will remain unchanged.

The sweeping changes are meant to help improve the performance of the City’s broken parking system. While many small business owners in Over-the-Rhine have expressed their support for the changes, especially in light of ongoing vandalism of meters in Over-the-Rhine, some believe they have been singled out following the cancellation of a previous agreement that would have raised rates and increased enforcement city-wide.

“I’m not opposed to longer meter hours and higher rates, but what upsets me, as an OTR resident and business owner, is the fact that our neighborhood has been singled out,” Jean-Francois Flechet, owner of Taste of Belgium, wrote in a Facebook post. “The same hours and rates should apply to other neighborhoods.”

The original Parking Lease & Modernization Plan approved in early 2013 was, of course, cancelled by Mayor John Cranley (D) almost immediately upon his arrival at City Hall at the end of 2013. While the mayor and many members of City Council bemoaned the previous plan, a similar plan appears to be taking shape, but in a piece-by-piece approach.

As like the original plan, new electronic meters are being installed that accept credit card payments and utilize dynamic pricing models, meters are being upgraded city-wide, and a contract has been signed with Xerox.

The Cranley Administration has not yet commented on plans for new hours or rates in the city’s remaining neighborhood business districts, where on-street parking meters exist, but they do say that they intend to systematically create multi-space parking that will “produce more aesthetically clean public right-of-way areas in Over-the-Rhine.”

This means that the newly retrofitted parking meters in the historic neighborhood will eventually be removed to make way for multi-space equipment, similar to what has been used in the Central Business District in the past. The upgraded parking meters from Over-the-Rhine will then be shifted to other neighborhoods throughout the city. This process, officials say, could begin as soon as this spring.

In addition to the specific focus on center city neighborhoods, the new parking policy differs from the previously approved plan by creating Sunday hours of enforcement. While the new Sunday hours of enforcement are only in effect for the Central Business District and Over-the-Rhine, it crosses what was considered a red line in the previous public debate over proposed parking changes.

All of the changes are expected to bring confusion to those parking in the affected areas, including a large group of people who drove to Christ Church Cathedral for the Boar’s Head & Yule Log Festival on Sunday. According to Michelle Dillingham, Director of Education at the Greater Cincinnati Coalition for the Homeless, parking enforcement officers ticketed many cars parked on the street during the event.

“I walked out of the Boar’s Head event that was barely an hour long and almost every car had a parking ticket on their windshield…on a Sunday and in front of a church celebrating 75 years of a Cincinnati tradition,” Dillingham wrote. “I don’t know, but it just rubbed me wrong.”

The former Cincinnati City Council candidate went on to say that she had two separate conversations with people, who lived outside of the center city, that were very upset by the situation and would reconsider visiting downtown again due to the aggressive parking enforcement.

City officials acknowledge that there will be a bit of a learning curve, and say they are working to improve awareness of the new rates and hours of enforcement by distributing flyers and working with groups like Downtown Cincinnati Inc. and the Over-the-Rhine Chamber of Commerce to inform drivers of the changes.

Categories
Business Development News Opinion Politics

EDITORIAL: Eight-Point Plan for Fixing Cincinnati’s Broken Parking System

Cincinnati Parking Meter
Broken and malfunctioning meters plague Cincinnati’s parking system. Photograph by Randy Simes for UrbanCincy.

We are continuing to look at opportunities inside City Hall that could help alleviate Cincinnati’s budget and pension liabilities, while also maintaining and improving service delivery.

In addition to the waste collection reforms that include a shift to a Pay As You Throw system, we will be making other specific policy recommendations that we feel will improve the quality of service delivery while also improving the City’s finances – ultimately working toward a long-term, structurally balanced budget.

Back in June 2010, UrbanCincy examined the finances of the city’s parking system. In this analysis, and comparison with cities from around the country, we discovered a broken system that was not performing the functions it needed to perform, and was not financially solvent.

As a result, we recommended a seven-year lease of all 5,700 of the city’s on-street parking meters. We estimated that such a deal could yield just over $3 million in annual payments, while also ridding the city of the associated financial liabilities. We did not estimate what an upfront payment could be due to the infinite number of variables that could affect that.

While much has changed politically since that time, the facts remain the same. Cincinnati’s parking system is broken, and is in need of immediate upgrades and reforms.

One of the first actions by the newly elected Mayor John Cranley (D), however, was to halt the signed Parking Lease & Modernization agreement, executed by former City Manager Milton Dohoney, which was structured to solve these exact problems. Under that deal the City would have leased four parking garages, one parking lot and all of the City’s on-street parking meters to the Port of Greater Cincinnati Development Authority.

The Port then agreed to work with Xerox to manage the system and implement comprehensive upgrades to the deteriorating and outdated system. This would have included electronic parking meters that accept credit cards, real-time parking availability data systems and the rehabilitation of existing lots and garages.

The deal would have also provided the City of Cincinnati with an upfront payment of $85 million, generated approximately $3 million in annual installment payments over the life of the agreement, and guaranteed approximately $98 million in capital investments into the system. For better or worse, that agreement has been jeopardized and we are essentially back at square one.

So where and what exactly is square one?

The City has been experiencing declining revenues from its parking assets for several years now. Revenue collections peaked years ago, but have been declining recently due to inadequate enforcement and the parking system’s poor state of repair. These assets require constant and expensive maintenance and upgrades, so virtually all of the money generated by the Parking System is spent maintaining the Parking System.

This is important. The Parking System does not generate any excess revenue for the city to use on other basic services.

In most years the Parking System is revenue neutral, meaning that the revenues it generates cover its expenses. This is acceptable, unless you are deferring maintenance costs in order to make the numbers match. This has been the case in Cincinnati for years, and has left the Parking System in terrible condition.

The situation has gotten worse in recent years as council has worked to balance the budget without laying off employees. In both 2010 and 2011, the city spent considerably more on the Parking System than it collected in an effort to keep it up to snuff. We are talking $3.6 million more in 2010 and $1.1 million more in 2011. This stopped in 2012 when the city cut its annual investments in the Parking System by several million dollars.

Cincinnati's Broken Parking System

For reference, investments in the Parking System today are approximately 38% lower than they were when the City invested $13.3 million into the Parking System in 2010. Over that same period, the parking fund balance has dropped from $12.5 million to $7.8 million.

Simply put: revenues are down, maintenance is being deferred and the parking fund is being depleted. This is not sustainable.

The recent proposal from the Cranley Administration, which was immediately and thoroughly rejected by just about everyone except five council members, does not address what the problems are, and therefore does not propose appropriate solutions for those problems.

The situation and trajectory is dire and UrbanCincy recommends that the City of Cincinnati move forward with upgrades to its Parking System immediately. Absent the previously agreed upon Parking Lease & Modernization deal or some other public-private partnership; here is how we suggest doing so:

  1. Issue bonds to upgrade all parking meters in the city to use the latest electronic payment collection and occupancy tracking technology. This would include pay-by-phone capabilities.
  2. Utilize the new technology to implement variable pricing structures that reflect real-time market demand. If there is a Bengals game downtown and meters near the stadium are packed, then the rates on those meters would increase, while meters further away would maintain lower rates. In neighborhood business districts the same would be true. When demand is high so should be prices. When demand is low, prices should drop accordingly to make it a more attractive option for those visiting our neighborhood business districts.
  3. Release a new application, website and text alert system that notifies drivers of parking space availability and informs them of the associated rates.
  4. Sell the city-owned parking lot at Third Street and Central Avenue so that it can be repurposed into a tax-producing property.
  5. Create a special lease agreement for city-owned parking garages and lots, so that the separate authority could manage advertising at these locations. The Ohio Revised Code currently does not grant cities authority to sell advertising in such a manner, but not allowing for advertisements is unnecessarily cutting off much-needed revenue. Let’s get creative so that we can maximize revenues without burdening our residents, businesses or visitors.
  6. Tear down the Garfield Garage, which is in greatest need of repair, and market the site to developers interested in building on it. Such a development agreement could include the provision of the same or greater number of parking spaces to be replaced – similar to the deal signed for the new residential tower to be built at Fourth and Race Streets in the place of the Pogue’s Garage. This will free the city from a major capital expense that would further deplete the parking fund in the near future.
  7. Tear down the Seventh & Sycamore Garage, which is the only thing blocking the construction of a $14.2 million, 115-room hotel and 725-space garage from being built in its place. The existing 450-space garage is also in poor condition and its removal would be another major liability coming off the City’s books.
  8. Conduct a citywide study to determine appropriate adjustments to the hours of operation for on-street parking meters on a neighborhood-by-neighborhood level.

Following through on these eight recommendations will allow the city to maintain ownership and control of its Parking System while also allowing it to make the necessary upgrades and improve the balance sheets for this portion of the budget. These changes will make the Parking System a revenue generating asset not just in rhetoric, but in reality.

The increased revenues will allow for the City to replenish the parking fund, make its upgrades and take additional revenue and use it to support other essential but non-revenue generating public services.