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City test drives parking fix, tech firms eager to help
Date: June 20, 2005
Faced with almost $20 million in unpaid fines, a concerned business community, and a host of frustrated shoppers, Ottawa is ready to test drive a new high tech system to end the downtown parking controversy for good.

At present, coin-operated meters - almost 4,000 of them - regulate street parking in the city. Those meters are watched over by a squadron of 46 full-time parking enforcement officers and another 15 on the payroll part time, according to a source within the municipal government, who added that they earn about $23 per hour.

The parking system itself is the same one that has been around for decades without much in the form of evolution. Mechanical meters that need constant maintenance and replacement, coin collectors on the taxpayer's buck to empty them, and the inevitable tickets - many of which don't get paid in a timely
manner - have opened the doors to high-tech companies that want to shape a new parking frontier.

Though the possibility of full implementation is up to a decade away, companies such as Mint, Inc. of Toronto, U.S. firm EximSoft International and Vancouver's Verrus Technologies International are struggling to find footholds in what could eventually be a $500-billion global market.

 

 
Despite short-term challenges to widespread adoption, EximSoft chairman and CEO Diju Raha has little doubt that meterless parking is the way of the future. Darren Brown, OBJ

They're pioneering cashless, non-meter parking that would eliminate the capital expense of purchasing expensive new meters, the high maintenance cost associated with them, all the coin collectors, and some enforcement officers.

City of Ottawa director of traffic and parking operations Mike Flainek said a pilot project is only about a month away. "We've been talking with Mint now for well over a year," he said. "We're going to run a pilot project to see how it interfaces with our technology and enforcement personnel."

The six-month trial will see city enforcement patrollers equipped with the handheld devices to check on
cars in public lots. There is no current timetable to see how it would work on city streets.

"We're pretty keen on going this way and to see how it all turns out," Mr. Flainek added. "It's pretty new technology in North America, but it's huge in Europe."

Should the trial prove to be successful, a request for proposal would be issued for a larger test or to outfit a much larger segment of the city on a permanent basis.

"I think once people try this out, there will be no going back," he said.

In general terms, here's how the technology works:

Motorists register their name, address, cellphone number, make and model of car, licence plate, and credit card number with the company. Once that's done, they're given an identification code. When they want to park somewhere, they simply dial a number, follow the prompts, punch in the parking space number and how long they'll want to stay in that location. Because every meter is numbered, they could be used as markers, if nothing else. Current time limits would still stand, so no one could reserve the same spot on a street for more than a couple of hours.

The appropriate fee is deducted from their credit card - as is the fine if they stay past their allotted time. This eliminates deadbeat drivers who never pay their tickets and the associated court costs and increases immediate cash flow for the city. Customers even receive a reminder call on their cell 10 minutes or so before their time expires. If they're allowed more time in that spot, they simply request it and go on with their business without having to return to pump more coins into the meter.

The city would still need enforcement officers, but rather than walk up and down streets checking every meter, handheld wireless devices would facilitate their job greatly. They would be able to look down an entire block and know immediately if a car was occupying what was supposed to be an empty space. Thus, fewer staff would be required.

It's possible Ottawa could eliminate up to one-third of its patrollers. That adds up to 15 full-time employees at $23 per hour for an approximate total of $725,000 in savings after stat holidays and Sundays are taken out of the equation. It does not include the costs of benefits and other expenses such as uniforms and equipment. Perhaps another $100,000 could be reduced from the part-time staff, as well, pushing the total closer to $1 million a year.

Coin collectors could also be taken off the public books, leading to further savings.

While the concept seems to make sense, there are still many people who either have no cellphone, credit card or both. That's why the players in this game readily admit that full implementation is still down the road. However, they have little doubt that day will come.

"If you think of when the phone was invented," said EximSoft chairman and CEO Diju Raha, "Alexander Graham Bell offered the patent to Western Union for $100,000, but they refused it, saying no one would ever talk on the phone. Now, cellphones have exceeded landlines in North America. And cellphones are evolving so quickly that soon they may be used for everything, such as an e-wallet for personal identification like a driver's licence and even a passport."

As for not owning a credit card, Mr. Raha said those customers could simply pay a certain amount beforehand - as many cell customers do - and use that fund when parking.

"The beauty is you collect revenue without paying people to go to empty meters," added EximSoft technology vice-president Amalendu Chatterjee. "Instead of giving tickets, the fines come straight off their credit cards or their bank account. In the end, you want compliance to the rules, but you want to make it easier for everyone, too."

Verrus CEO Neil Podmore, who estimated his company now manages about 150,000 parking spaces, said the system alleviates stress on many levels, including scenarios such as car lights being left on in a private lot. "Once they're registered, the lot attendant can punch in the car's plate and get the information to call the customer to let him know."

In terms of private and city lots, another benefit is that customers can log on to the Internet to book their spaces before they even start their cars. Want to make sure there's a space available when you get to the theatre or the game? This is how you do it.

Used on a small-scale in British Columbia, Seattle, Denver, and around London, the idea has met with positive reviews.

Sandra Kurylo, director of financial services for the city of White Rock, B.C., said the system is working as well as advertised for the community 45 kilometres from Vancouver. "We've implemented the parking technology along eight kilometres of our waterfront. We're removing hundreds of meters because it works well and there are many benefits."

So far, so good, says White Rock mayor Judy Forster. "Now that this new parking service is complete, the shops and restaurants along Marine Drive will be patronized by more customers - and happier ones. No one likes digging for spare change or leaving a restaurant to add coins to their meter."

Some restaurants, she added, have their own accounts and will offer diners free parking for their business.

Ms Kurylo said the initial investment of $490,000 for the 900 parking spaces will be recouped within two years. Consultants have told her the life span of the technology should be about seven to 10 years, meaning White Rock will reap greater profits than ever for at least five years.

"But it's not just the money," she stressed. "It has increased security by eliminating theft, which protects the taxpayer's dollar, it has reduced customer and business complaints, and it has eliminated the cost of maintaining the old meters. It has achieved all our goals and more."

This article was published on June 20, 2005, Ottawa Business Journal By Scott Taylor
scott.taylor@transcontinental.ca

 

 
     
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