Halifax Regional Municipality

Parking Implementation Study Final Report

March 2012

Halifax Regional Municipality Parking Implementation Study, Draft Report

March 2012

Table of Contents
1.0 2.0 Introduction ...................................................................................................................1 On-Street Parking Pay Station Technologies ...............................................................2 2.1 Pay Station Technologies .....................................................................................2 2.2 Hardware Size and Placement ..............................................................................4 2.3 Power Needs ........................................................................................................4 2.4 Maintenance Requirements ..................................................................................4 2.5 Ability to Accommodate Motorcycles ..................................................................5 2.6 Weather Issues .....................................................................................................5 2.7 Warranties............................................................................................................6 Pay Station Technology Costs .......................................................................................7 3.1 Capital Costs........................................................................................................7 3.2 Maintenance.........................................................................................................7 3.3 Management ........................................................................................................8 3.4 Purchasing/Financing Options..............................................................................9 3.5 Summary ...........................................................................................................10 Considerations and Next Steps....................................................................................11 4.1 Creating a Specification for HRM ......................................................................11 4.2 Peer Municipality Discussions ...........................................................................12 4.3 Communication with Businesses and the Public .................................................12 4.4 Changes to Daily Operations and Staffing ..........................................................13 4.5 Timing ...............................................................................................................14

3.0

4.0

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1.0

Introduction

Dillon Consulting was retained by the Halifax Regional Municipality (HRM) to undertake a review of various on-street parking pay station technologies to determine an appropriate technology for application in HRM on a trial basis. This review involved: Discussing on-street parking pay station technologies with industry suppliers; and Determining costs associated with various aspects of the technologies. Further to this, the project involved discussion of issues outside of the choice of technology. This document presents the issues and next steps that HRM should consider when moving the project ahead.

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2.0

On-Street Parking Pay Station Technologies

The review of on-street parking pay station technologies involved researching readily available material in the industry, as well as speaking directly with parking industry suppliers (Cale Systems, Canadian Parking Equipment, iParked.ca, MacKay Meters, Precise Parklink, and WPS North America) who provide parking pay station products. The following subsections detail the advantages and disadvantages of various pay station technologies. Also noted are various aspects (hardware size and placement, power needs, maintenance needs, ability to accommodate motorcycles, weather issues, and warranties) of the technologies.

2.1

Pay Station Technologies

The three types of pay station technologies reviewed as part of this study were: Pay and Display; Pay-By-Plate; and Pay-By-Space. Pay and Display technology involves motorists parking their vehicle and purchasing time from a centralized machine. Proof of payment is provided by the machine in the form of a ticket that motorists display on their vehicle dashboard. Enforcement officers check the tickets displayed on vehicle dashboards to verify whether vehicles have paid for parking. Pay-By-Plate technology involves motorists parking their vehicle and purchasing time from a centralized machine. Motorists typically need to enter information about the location (block or zone) where theyre parked, their license plate, and the amount of time they wish to purchase. The machine can provide a receipt to the motorist to verify that they have purchased time, but there is no need for motorists to display that receipt to prove that they have paid for parking. Enforcement officers typically utilize license plate recognition equipment (which is linked to the software system that keeps track of vehicles that have paid for parking) to verify whether vehicles have paid for parking.

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Pay-By-Space technology involves motorists parking their vehicle and purchasing time from a centralized machine. Motorists typically need to enter their parking space number and the amount of time they wish to purchase. Enforcement officers can use reports generated by the pay station, or retrieve payment information wirelessly from a handheld device, to determine parking violations. (Traditional Pay-By-Space technology involved individually metered parking spaces). The advantages and disadvantages of these technologies are summarized in the following table.
Technology Advantages Pay and Display Reasonably inexpensive to implement Reasonably well known by users Dont require spaces onstreet to be designated Enforcement is visible (i.e. walking the streets) Can typically achieve 10% more parked vehicles than with marked spaces Eliminates the costs associated with repainting and maintaining parking space markings Proof of parking tickets can be transferred between users (passback), resulting in a loss of revenue Individual enforcement of each vehicle is required Snow on the windshield increases enforcement time Cannot as easily accommodate motorcycles Cant increase paid parking time by phone; need to return to machine and pay for more time Pay-By-Plate Enforcement can be done remotely Cant transfer proof of parking (pass-back) Dont require spaces onstreet to be designated Can accommodate motorcycles easily Flexibility in increasing paid parking time Potential for higher revenues Eliminates the costs associated with repainting and maintaining parking space markings A number of users cannot remember license plate Enforcement equipment can be expensive Enforcement can be difficult for closely spaced vehicles Snow build up on license plates can result in enforcement issues Relies on links to software to confirm parking violations Some glitches with adding time havent been ironed out yet with suppliers Not widely recommended by suppliers currently Pay-By-Space Enforcement can be done remotely Can accommodate motorcycles easily Flexibility in increasing paid parking time Can re-use individual meter posts for space signage

Disadvantages

Requires spaces onstreet to be designated and signed Requires motorists to remember their space number can be an issue if trying to add time remotely by phone Enforcement equipment can be expensive Relies on links to software to confirm parking violations Some users can utilize residual time from a previous user, resulting in lost revenue Some glitches with adding time havent been ironed out yet with suppliers

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2.2

Hardware Size and Placement

All three pay station technologies can be operated from a centralized machine that is roughly the same size (5.5 6 feet high, 1-1.5 feet wide, and 1-1.5 feet deep). Actual dimensions of the pay station machines will vary from manufacturer to manufacturer, but they are generally within the above-noted dimension ranges. There are no significant differences in the spacing of the machines along a city block for the individual technologies. Machines are typically spaced in such a way to accommodate approximately 10 parked vehicles. However, based on discussions with some suppliers, that number can decrease to 7-8 parked vehicles, and increase to 15 vehicles or more depending on the frequency of transactions. If the on-street parking area being serviced by pay station machines does not experience a significant amount of turnover, then the number of machines can be reduced. Reducing the number of machines helps the financing aspect, but reduces customer service, as motorists need to walk farther to pay for parking.

2.3

Power Needs

While it would be ideal to run power directly to the machines from an external power source, this is typically impractical in most urban environments. As a result, most machines being offered by manufacturers today operate on battery power. That battery is typically charged by a solar panel placed on the top of the machine. If the solar panel is disconnected from the battery, most machines can run for a number of days (some up to about 7 days) before losing power.

2.4

Maintenance Requirements

Typically, most machines require little maintenance. Obviously, there is a need to keep snow and ice from building up on the solar panels placed on top of the machine. Even with snow and ice build up, many machines can still operate for a couple of days; however, it is best to keep these areas clean and clear for optimal machine operating conditions.

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Most suppliers will offer a maintenance package for an end user; however, some suppliers find difficulty in selling these due to limited interest by customers.

2.5

Ability to Accommodate Motorcycles

Both Pay-By-Plate and Pay-By-Space technologies will accommodate motorcycles in a straightforward fashion. Pay and display equipment cannot as easily accommodate motorcycles due to the inability to simply put a proof of payment ticket on a dashboard. Some motorcyclists will place the ticket under the strap on their seat (to prevent it from blowing away in the wind). However, this does not prevent other motorists from simply taking a motorcyclists ticket for themselves. One option posed by a supplier is to provide motorcyclists with a hangtag (costing $1.50 - 2.00 each). The City of Ottawa distributes these hangtags free-of-charge to motorcyclists. That hangtag can have a pouch to display the ticket. However, this still doesnt eliminate the potential for other motorists to simply steal a motorcyclists ticket and use it for themselves. This can be solved by the provision of a ticket that is perforated; one half remains with the bike, with the other acting as a proof-of-purchase for the driver. For example, the cities of Kingston, ON and Saint John, NB utilize a perforated ticket. Another option proposed by a supplier is to have pay station machines configured for pay and display for vehicles, and Pay-By-Plate for motorcycles. This would allow the machines to cater to the majority of the parking population as pay and display and still accommodate motorcyclists in a secure fashion. However, it would involve some variations to enforcement, since enforcement officers are largely focused on reading dashboard tickets, and not concentrating on valid license plates.

2.6

Weather Issues

As noted earlier, there is a need to clear snow and ice from building up on the solar panels placed on top of the machines.

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Many manufacturers will claim that their machines can operate down to temperatures of -30 degrees Celsius or more. Some suppliers will have certificates to verify independent laboratory testing of the machines. It is understood that the trial area for the proposed pay station technology is exposed to high winds, etc. To counteract weather, most suppliers/municipalities will place the machines in a direction where the back of the machine faces the prevailing wind/elements. Usually, this involves placing the machines with their backs to the street. This is so that customers arent standing in snow banks while using the machines in the winter. To deal with local HRM weather issues, such as salty fog, many suppliers would simply increase the frequency in maintaining the silicone seals on the machine. The salty fog doesnt really affect the electronic operation of these machines.

2.7

Warranties

Most suppliers offer customers a one or two-year warranty on their products. This warranty would cover situations where coin metals and/or bank note materials change. Beyond that warranty time period, customers would need to have an extended warranty to cover these types of issues. Without an extended warranty, customers would be faced with conversion costs. Based on discussions with some suppliers, warranties, including extended ones, are very negotiable.

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3.0

Pay Station Technology Costs

Costs associated with purchasing, maintaining and managing on-street parking pay station machines were determined through discussions with industry suppliers. The following suppliers provided input to these costs: Cale Systems; Precise Parklink and MacKay Meters. Appendix A contains the answers received from the suppliers in their own words (except for minor edits to correct spelling and grammar).

3.1

Capital Costs

In general, the responding manufacturers indicated that the costs for the individual machines will vary based on the quantity purchased. The manufacturers presented costs ranging from $8,000 to $14,000 depending on technology and quantity purchased. However, it has been our experience that manufacturers will still have room for negotiation in their final price beyond their stated bulk purchase price when pursuing the final implementation. It would be worthwhile to keep this in mind when negotiating final costs. Costs for installation of the pay station units will vary based on the type of installation. It was generally indicated that the municipality would be required to construct the concrete pad and provide an electrician for final wiring of the pay station in the case of hard-wired units. Cale was the only manufacturer to provide an explicit cost of $2,000 for installation of the seven trial machines, but did not indicate requirements on HRMs part with regards to concrete. Officers enforcing Pay-By-Plate or Pay-By-Space parking would require handheld devices or some other solution. Both Cale and MacKay indicated that any internet-enabled tablet or smartphone would be suitable. Precise stated that a handheld device would be required in the range of $1,000-$14,000 implying that a custom device would be required. Alternately, a vehicle equipped with license plate recognition software could be used at a cost upwards of $50,000. The use of Pay and Display technology would not require the purchase or use of specialized equipment for enforcement purposes.

3.2

Maintenance

All of the responding manufacturers indicated that HRM staff would be able to maintain the equipment and the creation of a specific maintenance program with them would not be
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necessary. The machines in use today are largely plug and play and do not require significant knowledge to maintain. Larger maintenance issues would be handled from the nearest manufacturer office. The typical service life for a modern pay station is in the range of 7-15 years with maintenance being a key to longevity. Maintenance training would be provided to municipal staff at no additional cost. Precise estimated that a ratio of two maintenance staff per 100 machines would be sufficient. Typically, the machines are separated into individual locking components and maintenance staff would not necessarily need to be bonded if HRM would like to keep collection and maintenance staff separate.

3.3

Management

Both Cale and MacKay take a hands off approach to the management and enforcement of parking in a municipality, preferring to think of themselves solely as manufacturers. HRM would be responsible for bearing the cost and staff to manage and enforce the system. Precise, on the other hand, could optionally provide what they term a turn-key solution, wherein they would manage, maintain, and enforce parking for the municipality. HRM would simply receive the revenue check from Precise, who would handle all other aspects of operating and monitoring the parking infrastructure. Pricing for this solution was not provided by Precise. Two of the three manufacturers indicated that their machines can be remotely monitored so that their collection status can be determined without physically opening the machine, thereby reducing unnecessary effort. All offered devices are PCI Level 1 compliant, enabling secure credit card transactions. None of the responding manufacturers indicated a guarantee for increased revenue. Precise did indicate that Pay and Display (and presumably Pay-By-Plate) will increase the available parking by 10-15%. This is due to the removal of delineated parking stalls.

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3.4

Purchasing/Financing Options

Precise was the only manufacturer to specify that they offer lease, rent, and purchase options for their equipment. Though, this is likely common to all manufacturers. None of the manufacturers indicated options for payback arrangements when hardware is purchased. All of the manufacturers will be able to provide detailed reports for revenue collected during the trial period. Cale indicated a cost of $350 per machine per month for a trial period, which includes access to their backend software, Cale Web Office. They also indicated a total cost of $2,000 for installation, given that HRM provides an electrician for any hard-wired machines. They did not assign responsibility for creation of concrete pads for the machines. Therefore, a trial of 7 machines for a 12-month period would cost HRM approximately $31,400. If, at the end of the trial, HRM elects to keep the provided machines, Cale will credit $285 per machine per month towards the purchase of each machine a total credit of $23,940. If HRM would like the equipment removed, the total cost would be $2,000. Precise indicated that they could offer pay station machines for the trial period at a cost of $695 per machine per month for coin-only, or $795 per machine per month for coin, credit card, and GPRS communications. Shipping and installation would be an additional cost, which was not specified. At the specified costs for 7 machines for a 12-month period, this would result in a cost of $66,780, plus shipping and installation. Precise did not indicate what credit the municipality might receive if the machines are eventually purchased, nor did they provide a cost for removal of the machines after the trial. MacKay did not provide any cost estimates for the trial period. As mentioned previously, there is likely significant room for negotiation with the manufacturers for the costs indicated for the trial period. The manufacturers will likely be focusing on the eventual roll out of this technology across HRM and may be willing to reduce their prices knowing that this may aid their chances at being the selected manufacturer in the end. HRM has a strong bargaining position here.

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3.5

Summary

Based on our review of industry material/documentation and discussions with suppliers of onstreet parking pay station products, the best technology for a municipality to utilize is pay and display. It is: well known to both suppliers and the end users; the least expensive to operate; and the easiest to implement and enforce.

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4.0

Considerations and Next Steps

Outside of the discussion of the specific technology that HRM should choose, there are also a number of other considerations to consider when moving the project ahead. These will be just as important to the success of the trial, and later municipality-wide adoption, as the selection of the individual technology. This section provides a brief overview of some items for consideration.

4.1

Creating a Specification for HRM

In order to ensure that HRM is provided with parking technology that meets their needs and is not simply the manufacturers default off-the-shelf model - it will be necessary to seriously consider the specifications required and items that may be specific to HRM. This will greatly simplify the procurement process as the manufacturers can tailor their product and proposal to meet HRMs requirements. Comparison of bids during the procurement process will also therefore be much simpler. HRM staff can then rest assured that their needs will be met by the supplied technology, reducing the number of surprises after the installation of trial or permanent machines. Some items for consideration in creation of a specification are: Bilingual instructions and messaging; Clear and accessible customer interface (compliant with Nova Scotia Disabled Persons Commission Act); Payment methods (coin, credit, bill, smart card, cell phone); Real-time credit authorization; Provision of paper ticket and/or receipt; Accommodations for motorcycles; Upgrades for future changes in payment technology; Communication with a central management system for maintenance; Re-programmable through central management system or on-site; Ability to apply different rate structures at different times at different machines; Ability to permanently or temporarily modify rate changes or hours of service; Security features; and Climate considerations.

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4.2

Peer Municipality Discussions

There will no doubt be great value in discussing with other municipalities the realities to consider when choosing, implementing, and maintaining a parking technology that is, in most circumstances, wildly different to the current single-space, hard currency, disconnected machines currently in use by HRM. The effects that this change will have on the day-to-day operations alone (e.g. staffing, scheduling, IT considerations) are significant. This will be especially important should HRM decide to pursue a Pay-By-Plate or Pay-By-Space solution, as these are not currently as common, and are not as recommended as Pay and Display by the manufacturers involved in this discussion. Conversations with staff at these early adopter municipalities could prove invaluable. Discussions with peer municipalities should touch on issues such as: Staffing levels and their expertise; Enforcement issues/changes/equipment; Back end management; Maintenance agreements and issues; Inclement weather performance; Unforeseen issues; Resident/business concerns; and Revenue/cost changes.

4.3

Communication with Businesses and the Public

It will be important that HRM communicate clearly with businesses, community groups, major employers, and residents when rolling out the new technology for both the trial and full adoption. For example, the location selected for the trial period is directly adjacent to the Citadel High School. It will be important to understand how the on-street spaces are currently used by students and faculty, and what effect the new technology and introduction of paid parking may have there. Residents adjacent to the study area may also see an increased infiltration of vehicles parking on their streets. It may be wise to communicate the changes to these residents to reduce
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the potential for later complaints. Creation of an educational communication program in advance of implementation on the use and goals for the new parking technology (and revenue) will be valuable. The importance of communication such as this will be compounded several times when rolling the technology out on a larger scale (i.e., area-wide). As suggested in HRMs Regional Parking Strategy, it will be worthwhile to consider the creation of an internal Parking Group/Liaison. This group could manage the day-to-day parking operations, and interact with the local Business Improvement Districts, community groups, and the general public. HRM has indicated that their strategy is to create pricing signals to affect mode choice. Therefore, it will be important that the affected groups understand this. Having a consistent, focused communication plan when rolling out the new technology or changes to the rate structure will be invaluable. HRM may consider creating: Overall communications plan Newspaper advertisements Brochures Flyers Regular meetings with stakeholder groups

4.4

Changes to Daily Operations and Staffing

The movement to a modern pay station concept for parking will obviously involve changes to daily operations. Due to the order of magnitude difference between the trial and full implementation, not all of these issues may become apparent during the trial. These changes will directly affect the way that HRM approaches maintenance, enforcement, and administration of parking, necessitating a rethink on topics such as: Maintenance scheduling; Revenue collection; Staffing levels (enforcement, maintenance, administration); and Public relations.

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4.5

Timing

Beginning the trial in the summer of 2012 as originally planned may have some advantages: the warmer weather may lessen the demand for auto parking as walking and cycling are more common; and the warmer weather may also make the walk to and from a Pay and Display machine seem less onerous. As well, if HRM were to introduce the trial in colder months, motorists (who are already hurrying between their parked vehicle and their destination) may voice their frustration at having to complete an additional task (walking to the pay station to pay for parking) at this time of the year. Furthermore, given the time required to create a Request for Proposals, compare bids, place an order with a manufacturer, communicate with stakeholder groups and have the machines built, installed and operational, time may be running out to have the trial machines in place by the summer of 2012, as originally planned. The process should begin as soon as possible and adhere to a determined schedule.

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APPENDIX A MANUFACTURER RESPONSES TO COST QUESTIONNAIRE

MEMO
TO: FROM: DATE: David McCusker, P.Eng. Mike Walters, P.Eng. December 23, 2011

SUBJECT: HRM Parking Implementation Strategy Results of Cost Questionnaire to Suppliers OUR FILE: 11-5729

The intent of this memorandum is to document the feedback received from some industry suppliers regarding costs associated with purchasing, maintaining and managing on-street parking pay station machines. A draft questionnaire to suppliers was discussed during Dillons meeting with HRM staff on December 16, 2011. Given the quick turnaround required, only Cale Systems, Precise Parklink and MacKay Meters were able to provide some responses to the questionnaire. The text in the following table is the wording received from the suppliers themselves (i.e. in their own words), except for minor edits to correct spelling and grammar.

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692

Question Cale Systems Capital Costs What is the approximate capital cost per Pay Station for each technology? Pay and Display - $9,000 each for a coin and credit card machine Pay by Space - $9,250 each for a coin and credit card machine. Pay by license - $12,500 for a coin and credit card machine. For seven machines, the total cost would be $2,000. This includes travel and accommodations for our installer. The price is the same for either a solar or hard wired machine. This city would need to provide an electrician to do the final electrical termination on the AC powered machines. Precise Parklink

Responses MacKay Meters Without knowing the configuration, (P&D/PbyS/PbyPlate) or the payment types accepted (coins/city card/credit card/bill/cell phone) it is difficult to give a capital cost. Depending on the specific configuration you are looking at, anywhere between $8,000 and $11,000 per machine. Typically, it is the city's responsibility to run the required wires (if hard wired), as well as pouring a proper 'pad' for the machine installation. If this is a new location, and a new 'pad' is required, we would provide (included in the cost of the machine) a machine anchor to be installed while pouring the concrete. We can also install units using chemical anchors. Installation/commissioning of the unit on the prepared site, would be included. Depending on the technology: PandD - Nothing specialized needed for enforcement PbyS - Enforcement can be at the machine level, by way of a ticket printed by the machine, or by way of hand held. This said hand held is not specialized, with the only requirement being that it must have internet capabilities. Using this hand held, the enforcement officer, would log into our remote space manager and get the same information as they would see in the ticket print out. PbyPlate - The same type of hand held as noted above (could be phone, PDA, iPad, tablet, computer, etc). The enforcement officer would log into our remote plate manager, and would see a list of plates paid or not paid.....or type in a specific plate to see whether or not it was paid or not paid.

Assuming units need to process coin & credit card payments. Depends on quantity purchased, but approximately $9,000 - $14,000.

What is the typical installation cost per Pay Station unit? Please indicate the cost for a typical solar installation and a hard wired installation.

Again depends on quantity, proximity to each other. Who will prepare concrete? Is there power for the A/C units? A/C is usually reserved for extreme cold so that heaters can be installed. Our electricians are licensed. Solar units just get placed and anchored. Precise Solar meters have been cold tested by an independent third party, and function to -36 degrees.

Does the technology require or benefit from specialized monitoring equipment for enforcement? If so, please provide the unit price. Please indicate if the equipment is required or optional. How many of these monitoring devices are typically required per Pay Station unit?

Pay and Display - there is no special equipment for enforcement. Typically the enforcement process is visual with the officer writing a ticket based on verifying if the parker has a valid ticket in the vehicles window. Pay by Space and Pay by License - we recommend using an iPad with internet access. Attached are online reports that are used for Pay by Space and Pay by License enforcement.

This is only the case for Pay by Plate or Pay by Space. Costs can be substantial, as it is dependent on choice of enforcement option. Can go from $1,000 - $14,000 for the handhelds, depending on the solution. Vehicles with license plate recognition can cost upward of $50,000. Pay by Space and Pay by Plate are NOT RECOMMENDED. Regular pay and display fits well with any solution currently in use by the municipality for enforcement purposes. (no new costs unless city opts for new handhelds.)

Maintenance Costs What is the price per Pay Station unit or transaction?

There is no transaction charges from Cale. Transactions typically are handled by the payment gateway such as Moneris, Chase Paymentech among others. We do charge $65/machine per month for Cale Web office which includes: Communication fees using Rogers Wireless network; credit card processing up to the bank processor under PCI DSS level 1 Certification; software support; updates and unlimited user access. This cost is included in the rental option. We don't feel a sub-contractor would be needed. There are many sites where the distance from our nearest technician is more than 1,000 km from the nearest service depots. In these cases, the customers take care of any routine issues themselves. We also deal with a number of larger cities that choose to do all of their own maintenance. As an example, we have successful sites in Thunder Bay and Timmins among others where the first line of service is done by the customer. As for response time, we typically ship out replacement parts within 24 hours and you will be provided with a technicians cell number. There would be no extra charge if the municipality took care of the maintenance themselves. In fact, we encourage our customers to take care of non-warranty issues. This year we held successful training courses in Montreal (English and French) and Ontario.

Again depends on quantity and service plan option chosen. We usually custom tailor the plan around the clients needs. Can range from $150$450/machine per month.

Typically, MacKay does not get into Maintenance contracts with cities, as most cites have existing maintenance personnel. MacKay does provide a one year parts and labour warranty, with extended warranty options available. Should a maintenance contract be required by the city, we would certainly entertain this request, as we have a large office in Halifax currently, and are the only parking manufacturer, east of Montreal. As our Head office is in New Glasgow N.S, support would not be an issue. See above, but we believe the municipality's staff would have no problems servicing any MacKay equipment. We have provided the City of Halifax with all of their parking equipment for the past 40+ years.

Please indicate the service relationship as to the use of local subcontractors or the municipalitys staff and any estimates/guarantees for service times.

It is possible for the municipal staff to handle almost all maintenance. We already do this with a number of municipalities. All of the parts are plug and play, trouble shooting for difficult issues would be supported by our H.O. in Toronto 24/7. If the number of meters reaches a significant quantity, Precise would look at opening a local office to support the municipality.

What would an approximate unit cost be for the municipality to undertake the maintenance themselves?

Dependent on quantity, but usually considered a tuck-in solution.

These machines are very easy to maintain, as all of our components are plug and play. Having said this, the cost to the municipality for maintaining the equipment themselves would be very minimal.

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692

Question For maintenance plans that involve the use of municipal staff, do you provide training on proper maintenance? Are there additional costs for training? What is the duration of the training course? Cale Systems At the time of the installation, we would provide full training on the hardware and software. The equipment is modular in construction and components are easily swapped out if needed. No this is included. See attachment for a description of on-site training that would be proposed.

Responses Precise Parklink Yes. We could provide training at point of install. Usually 2 days, 1st day theory and practical, 2nd day all practical. No Usually 2 days, 1st day theory and practical, 2nd day all practical. MacKay Meters Should a maintenance plan be required that uses municipal staff, MacKay would provide training to said staff at no additional cost. No, training would be included in price of machine. Depending on the number of staff, and equipment installed, a training session could last anywhere from 1-3 days. Having said this, MacKay has an office in Halifax. Should additional training be required, we are a 5-minute drive away. (Located on Barrington) This ratio differs in every city, so I cannot give you an accurate number.

What is the approximate ratio of Pay Station units per municipal maintenance staff?

Would providing maintenance for the technology require municipal staff to be bonded?

We don't have any figures to present; however, the machines are designed to be maintenance free. The only regular maintenance should be refilling tickets and changing the coin boxes. As an example, the City of Montreal did a study of maintenance on their 1,500 machines and found that, on average, the first major maintenance issue occurred at 52 months, and this included vandalism. No, the access to coin box is in a reinforced vault with a unique key. A service person would not have access to the cash section.

If you are talking about 7 units, 1 person is way too much. 2 staff per 100 units is a close approximation. This includes staff handling paper replenishment, parts exchange, trouble shooting, etc.

If they are doing coin collections, yes. With reference to bonding many municipalities and are self-insurers. They may also carry third party liability insurance for theft of cash (transit process a lot of cash as would parking) and other assets. Based on the design of our equipment, cash could be collected by a bonded individual, whereas the day-to-day machine administration could be performed by someone else. You may also get by collecting coin without a bonded individual if the key that accesses the coin in a canister is not available to the individual. They can collect the coin canister, but not the coin in the canister. Most municipalities have the transit operation count the coin as they are equipped to perform that function. The ticket and electronic parts area are segregated by separate control keys.

This would be up to the city

What is the typical service life for a Pay Station?

We have many customers who have pay stations that have been in service for 10 to 15 years. There are even pay stations that have been in operation for more than 20 years.

Consider that we have units that are 15 years old and still on the street. Maintenance is everything.

Service life could be anywhere from 7-10 years. However, as technology continues to move so quickly, most municipalities start thinking about replacing these types of units every 5-7 years. Just think of what your computer was 10 years ago. As MacKay is continuously on the leading edge of technology, upgrades are always available. MacKay is a parking solution specialist, providing hardware, software and service to clients all over the world. Having said this, we would recommended that any city in the Atlantic provinces manage their own system, as there is no reason to subcontract these services with MacKay being in the back yard of the majority of these cities. Using our software, city staff can be advised in real time either via email, text message, or alert, when machines are ready to be collected.

Management Costs The relationship between your company, any subcontractors, and the municipality.

Cale doesn't provide any management services on the pay stations. Typically with a municipality they have the staff that empty meters and change paper. There are many independent companies we deal with that do a very good job at this. For credit card transactions, we believe that it is very important that all of the revenue collected at the machine goes to the municipality and none of it to the machine provider. We provide the gateway from the parker to the credit card company but don't touch the money. The deposit is typically placed in the municipalitys account from your payment processor early on the next business day. Yes, Cale Systems has been certified PCI, DSS level 1, Below are the are the links for Visa and MasterCard that list who is certified:

We could offer a Turn-Key solution. Precise handles everything from cash collection, replenishment, maintenance, etc. All the municipality does is cash the revenue checks.

How is revenue collected from the Pay Stations and distributed to the municipality? How often is this done?

Our meters have sensors that trigger alarms back at H.O. indicating the unit has reached a pre-determined threshold. In essence they ask to be collected before they get full. This helps increase efficiencies by eliminating having to manually check meters only to find they dont need collection. We are the only Parking Management company with a PCI Level 1 Compliant Internal Closed Loop solution.

Are your devices PCI Level 1 compliant?

Yes absolutely. As well as PA-DSS.

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692

Question Cale Systems VISA LINK to their Global list of PCI DSS Validated Service Providers Precise Parklink

Responses MacKay Meters

http://usa.visa.com/merchants/risk_management/cisp_service_provider s.html MASTERCARD LINK to their compliant service providers http://www.mastercard.com/us/sdp/serviceproviders/compliant_service provider.html You may want to check the list from time to time to confirm which suppliers are level 1 compliant. No, we don't take part in either negative or positive revenue changes

Do you provide any guarantees for revenue increases?

Based on real life application. We cant account for interruptions to parking such as construction, flooding, etc. What I can tell you is that pay and display increases the number of cars that can be parked in a designated area without increasing the footprint of the parking area. This works as follows: in delineated stalls, they exist in a size that must accommodate all vehicles. In pay and display the lines are removed and the usual increase in available parking is approximately 10%-15%. Obviously this increase should positively affect revenues if the core parking area is currently at or near capacity. We currently have our own enforcement department and could make arrangements based on the size of the project.

A properly maintained and enforced parking system will always yield revenue. Having said this, it is impossible for anyone to guarantee revenue increase unless raising rates, and changing by-laws (changing hours of operation for example) are taken in consideration.

Do you provide options for enforcement? If so, please detail any service tiers at a unit price level. Purchasing / Financing Options What types of payback arrangements can be made for purchased hardware?

No, typically the municipality does that. Most of the major parking management companies deal with us and could do that role if needed.

No, enforcement is the responsibility of the city. (They do a very good job of this already!) If purchasing/financing options are required, we can cross that bridge.

For the trial period we propose charging $350/machine per month, regardless of the type of machine. This includes our Cale Web Office. At the end of the trial, if you want to purchase the machines we would credit the municipality $285/machine per month towards the purchase price. If the municipality wants the equipment removed we would charge them $2,000 total for the removal.

Lease/Rent/Purchase. I recommend the lease option as it offsets the cost of the equipment and still allows the city the benefit of a revenue stream. One of the options we offer municipalities is a trial rental. Your client could rent the machines for a 12-month term, or some mutually agreed to term. Training would be provided so that the client is self-sufficient. Rentals vary from $695/month for coin only to $795/month for coin, credit card and GPRS communications. Shipping and installation is in addition to this cost. Yes. On a monthly basis and at the end of the project.

Can analysis be provided from the trial on the breakdown of revenue by type (coin, credit, etc.)?

Yes, there are many detailed reports that break out the totals. I have attached some of the reports for your reference.

Yes absolutely. Using our back end system, the city has all transaction, audit, occupancy, reconciliation, location, and alert information at their fingertips. MacKay equipment uses the most powerful back office software (called MacKay Sentinel) in the parking industry, and further information can be found by following this link: http://www.mackaymeters.com/Products/Sentinel.aspx

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692

Cale Systems Proposed Training

HARDWARE AND SOFTWARE TRAINING Module Duration Who should attend Hardware Collection Minimum of Paper replacement 4 hours or Components cleaning 1st line Technical staff and Operation more - as Management 1st line troubleshooting needed Preventative maintenance CWO Software CWO overview Administration staff, Parking Manager Finance module Administration, Finances staff, Parking Minimum of Manager 2 hours or Operation module Operation staff, Parking Manager more - as Maintenance module Operation staff, Parking Manager needed Credit Cards module Administration, Finances staff, Parking Manager Parking Manager Administration Ongoing support will also be provided by our technical staff based in Ontario and Quebec.

Cale Systems Pay-by-Space Enforcement Report

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692

Cale Systems Pay-by-License Enforcement Report

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692

Cale Systems Two Sample Revenue Breakdown Reports

235 Yorkland Boulevard, Suite 800, Toronto, Ontario, M2J 4Y8 Phone (416) 229-4646 -- Fax (416) 229-4692