1375 - Cashless Parking July 2011

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DELEGATED POWERS REPORT NO.

SUBJECT:

Control sheet

Al l of the fo llowing act ions MUST be completed at each stage of the process andthe signed and dated report MUST be passed to Governance Service for publ ishing

Al l reports

1. Governance Services receive draft report Name of BGO J eremy Williams

Date 19.07.2011

2. Governance Services cleared draft report asbeing constitutionally appropriate

Name of BGO J eremy Williams

Date 03.08.2011

3. Finance clearance obtained (report author tocomplete)

Name of Fin. officer J ohn Hooton

Date 01.08.2011

4. Staff and other resources issues clearanceobtained (report author to complete)

Name of Res. officer

Date

5. Trade Union response received (Staffingissues only)

Name of TU rep.

Date

6. Legal clearance obtained from (report author tocomplete)

Name of Legal officer Robert Prater

Date 21.07.2011

7. Policy & Partnerships clearance obtained

(report author to complete)

Name of P&P officer J ulie Pal

Date 19.07.2011

8. Equalities & Diversity clearance obtained(report author to complete)

Name of officer J ulie Pal

Date 19.07.2011

9. The above process has been checked andverified by Director, Head of Service or Deputy(report author to complete)

Name Declan Hoare

Date 05.08.2011

10. Signed & dated report, scanned or hard copyreceived by Business Governance forpublishing

Name of BGO Paul Frost

Date 10.8.2011

11. Report published by Business Governance towebsite

Name of BGO Paul Frost

Date 10.8.2011

Officer reports:

1375


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ACTION TAKEN BY CABINET MEMBER(S) UNDER DELEGATEDPOWERS (EXECUTIVE FUNCTION)

Subject Re-provision of Parking Services

Cabinet Member(s) Cabinet Member for Environment

Date of decision05 August 2011

Date decision comesinto effect

15 August 2011

Summary This report details the intention to remove Pay and Display parkingmachines in the borough, so that the current pay and display parking

places will operate as cashless only.

Officer Contributors Neil Richardson, Highways Manager

Gavin Woolery-Allen, Senior Engineer

Status (public or exempt) Public

Wards affected All except Colindale, Coppetts and Oakleigh Wards.

Enclosures Appendix : Equalities Impact Assessment (EIA)

Reason for exemption fromcall-in (if appropriate)

Not applicable


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1. RELEVANT PREVIOUS DECISIONS

1.1. Delegated Powers report of the Director of Environment and Transport on 27thFebruary 2009, titled Cashless Parking reviewed the trial of cashless parking inoff street car parks and approved the appointment of Verrus (UK) Ltd to providecashless parking services borough wide for two years.

1.2. Delegated Powers report of the Interim Director of Environment and Operationsand the Director of Commercial Services dated 24 March 2011, titled Extensionof Contract with Verrus UK Ltd to provide cashless parking services across the

borough gave authorisation to obtain a quote from a single supplier (Verrus UKLtd) to continue the cashless parking service on existing terms, and gaveauthorisation to accept the quote received from Verrus UK Ltd and to purchasethe cashless parking service until the new arrangements for delivery of the entireparking service are in place.

1.3. Cabinet report of the Cabinet Member for Environment & Operations on 29th

November 2010, title Future of the Parking Service sought authority to initiateprocurement for a new Parking Service to be provided externally which isanticipated to provide the Council with a significantly more efficient service andfinancial savings, and allow the Council to provide a better more efficient parkingservice to citizens.

1.4. Delegated Powers report of the Interim Director of Environment and Operationson 18th March 2011, titled Contract with PayPoint Ltd to provide a cash option to

the cashless parking services across the borough gave authorisation to obtain aquote from a single supplier (PayPoint Ltd) to provide a cash option to thecashless parking service on existing terms, and gave authorisation to accept thequote received from PayPoint Ltd and to purchase the service until the newarrangements for delivery of the entire parking service are in place.

2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS

2.1. The removal of the aging and underperforming pay and display infrastructure onthe streets and in car parks as part of the modernisation of the Parking Service,in conjunction with the Councils intentions to adopt alternative forms of cashpayment as outlined in this report, and the current pay by phone paymentmethod, contributes to One Barnets principals of A relentless drive for


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the existing high maintenance and running costs, problematic enforcement, andimpact on income.

3.2. As a consequence this payment method is considered to be no longer viable,particularly as the existing alternative service option for paying to park via thePay by Phone or Cashless technology is inexpensive to set up and administer.This is now well established in the borough with almost half of all transactionsmade in this way.

3.3. The current supplier also offers an alternative payment option using community

shops as part of its branded PayPoint service.

3.4. This is a cash payment system which allows motorists to pay for parking usingcash or card at selected convenience stores on a walk-up basis. This transaction isthen logged on the Pay by Phone system so that enforcement can take place asnormal. There are currently 84 of these within the borough.

3.4 There is a risk that members of the public without mobile phones will beexcluded, but this is mitigated by the provision of pay points and it is consideredthat this cash option will overcome the objections of those who cannot or will notopen a parking account using a mobile phone and bank card, and will resolvepotential equalities issues. It will, therefore, complement the removal of pay anddisplay machines in the borough where this facility already exists and enableconsiderable savings to be made by removing both cash collection andmaintenance obligations.

3.5 Paypoint will also have a side benefit of increasing customers to the chosen retailoutlets, and although no additional PayPoint locations are to be actively identifiedas a result of this scheme, utilising of existing outlets will help the boroughs towncentres address the councils Successful London Suburb objective.

3.6 There is some concern regarding objections from some residents and membersof the public surrounding the complete removal of all cash payment options from

on-street and car parks. The City of Westminster researched this issue prior totheir implementation of entirely cashless parking. They concluded that there isno statutory requirement for cash payment options to be maintained.

3.7 Westminster, has confirmed that the opposition to going completely cashless intheir borough was minimal and for the majority of users the adaptation to


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by taking into account the needs of protected groups who are likely toexperience potential adverse impacts

5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance& Value for Money, Staffing, IT, Property, Sustainabi lity)

5.1 Estimated costs for the necessary signage work would be approximately160,000 and will be funded from the 2011/12 Capital allocation for theDirectorate.

5.2 In addition, the removal of machines including making good the footway wouldentail civil works estimated in the region of 80,000, again to be funded from the2011/12 Capital Account.

5.3 The removal of the pay and display machines would also require amendments toTraffic Management Orders to remove the machine as a payment option.Statutory procedures do not require any consultation to take place for an

amendment of the payment method in this case a Minor Order will be used toremove the pay at machine option, and facilitate the Paypoint method whereapplicable.

5.4 Revenue estimates including expenditure and savings for in year and full yearare: The full year figure is a notional sum as this activity lies within scope of theoutsourced parking contract and all expenditure will be included in that.

() Cost / (Savings) 2011/12

() Cost / (Savings )Full Year

Pay by Phone fees (additional cost) 40,000 80,000

Pay and display maintenance costs (100,000 (200,000)

Pay and display running costs (10,000 (20,000)

Cash collection costs (110,000 (220,000)

Staffing costs (E&O) (45 000 (100,000)

Totals (225,000 (460,000)

5.5 There are clearly significant positive operational, environmental, short and longterm financial benefits associated with the removal of the pay and displaymachines. The removal of the pay and display machines will make a positivecontribution to the Councils aspirations of improving the street scene byremoving clutter Operational obligations regarding rechargeable services and


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Finance as to what staffing impact the removal of pay and display machines willhave as there will no longer be a financial reimbursement to them to provide the

on-street cash collection service.

6. LEGAL ISSUES

6.1. The Council as Highway Authority has the necessary legal powers to operateparking enforcement through the Traffic Management Act 2004 and introduce or

amend Traffic Regulation Orders through the Road Traffic Regulation Act 1984.

6.2. The removal of the pay and display machines is governed by Regulation 21(b)(i)of the Local Authorities Traffic Orders Procedure Regulations 1996 by a minororder to vary the existing order under section 35 or 46(2) of the Road TrafficRegulation Act 1984, regulating the method, or requiring the use of apparatus,by which any charges for the use of a parking place are to be paid.

7. CONSTITUTIONAL POWERS

7.1 Part 3 (Responsibility for Functions), paragraph 3.3 of the Councils Constitutionstates that Cabinet Members powers include the power to discharge theexecutive functions that fall within their portfolio, whether or not they are alsodelegated to officers, except for matters specifically reserved to Council, Cabinetor Cabinet Committees.

7.2 Part 3 (Responsibility for Functions), paragraph 3.2 of the Councils Constitutiondetails the responsibilities of the Cabinet Member for Environment which includesall matters relating to the development and management of the environment,including: the street scene including pavements and all classes of roads; parkingprovision; and transport and transport initiatives.

8. BACKGROUND INFORMATION

8.1. In order to cater for known demands across the borough, the Council hasintroduced pay and display schemes where motorists pay the relevant tariff atthe time of parking in order to park within the relevant parking places.

8.2. The usual payment method for paying for parking has been using coins.


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8.5. Due to increased vandalism and the associated costs of pay and displaymachines and as part of the Parking Services modernisation aspirations; in

September 2008 a trial of two cashless parking methods was conducted acrossthe Councils chargeable off street car parks.

8.6 Having considered the merits of the trial, against what the Council were trying toachieve, the trial was considered a success, which ultimately resulted in adecision being taken that cashless payment as an alternative to the traditionalpay and display coin method be rolled out borough wide, with the supplier, Verrus(UK) Ltd ultimately appointed to provide their pay by phone cashless parkingservices for two years with effect from March 2009.

8.7 The initial contract with Verrus (UK) Ltd expired in March 2011, and a DelegatedPowers Report outlining the Councils intentions to extend the workingrelationship with Verrus (UK) Ltd for at least an additional year, has been agreed.

8.8 The Verrus (UK) Ltd pay by phone technology was rolled out to cover on-street

parking places in J une 2010, again as an alternative to the pay at machineoption.

8.9 Prior to the cashless payment system being introduced, if a pay and displaymachine was not working, motorists were required to find an alternative machine,but ultimately would be permitted to park for free. Such is the varying nature ofthe parking controls across the borough, that even if a nearby machine wasavailable it would not necessarily accord with the parking place motorists

originally parked in. However the introduction of the cashless parking optionresulted in an enforcement policy change, as the expectation of motoristschanged to having to either pay at the machine or by phone, or risk receiving aPenalty Charge Notice.

8.10 To date pay by phone transactions account for nearly 50% of all pay-at-time-of-parking transactions demonstrating growing acceptance from the public of thenew technology. The continuing problems with operating an aging pay and

display machine stock leads to the conclusion that the Council should removethem and that motorists would therefore be required to use a cashless paymentoption.

8.11 Removing cash payments for on and off street seems the logical approach as itlowers maintenance and cash collection costs reduces the potential for theft and


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(i) consideration be given to the cost/benefit of all cashless payment options forparking (including debit card/credit card, pay by phone, Pay Point and pre-

payment, or a combination of these) before any decision is taken to implement anentirely pay by phone system for parking operations across the borough;(ii) that consideration be given to the feasibility of introducing the Easy Park pre-payment parking system which is in operation in a number of European countries.

8.14 The Parking Service is currently being market tested and the process is atInvitation to Tender stage. Bidders for the operation of the service are beingrequired to provide a method statement to specify how they intend to developcashless options which would be easy for users to park without the use of cash.Further work to optimise cashless parking will be undertaken with the successfulcontractor which will include examination of the options suggested by theOverview and Scrutiny Committee.

9 LIST OF BACKGROUND PAPERS

9.1 None

10. DECISION OF THE CABINET MEMBER

I authorise the following action

10.1 Payment for parking services be re-provided as described in this report .(In particular the removal of Pay and Display machines from the Boroughson and off-street paid for parking places following the provision ofalternative methods of payment.)

Signed Brian Coleman

Cabinet Member for Environment

Date 05.08.2011


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Appendix

E&O Equalities Impact Assessment

Project/Policy/Service/ Title: Borough wide removal of pay at machine parking facility

Brief Description: Motorists currently pay the relevant tariffs at the time of parking in order to park within the relevantparking places. The traditional method for paying for parking has been using coins via a pay and display machinealthough in recent years the Council has adopted a pay by phone cashless payment method, where the motorists usetheir credit or debit cards to pay for a session of parking. Due to ongoing problems with an inefficient pay and displaymachine infrastructure, the Council are proposing to remove all the pay and display machines in the borough.

Author: Gavin Woolery-Allen

Date: 12/4/2011Service / Dept: Environment and Operations

Contents

1. E&O Equalities Impact Assessment Evidence

2. Action Plan

3. Additional Notes


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1. E&O Equalities Impact Assessment Evidence

EIA question Guidance EIA Narrative Sources ofEvidence(where relevant oravailable)

1a What is the purpose andobjectives of the proposedproject, service change or new

policy?

For new projects, use the aims & objectivesfrom project brief

The purpose of this project is to removethe pay at machine option in the relevantparking places on-street and in variouscar parks across the borough.

The removal of all pay and displaymachines is envisaged to result insignificant financial savings through aelimination of maintenance and runningcosts, and a reduction in staff costs. It isalso envisaged that the machine removalwould have a positive environmentalimpact through an improved street scene

and an elimination of the threat of theftand vandalism.

It is planned to remove all the pay anddisplay machines in the borough bySeptember 2011.

Financial elementdetailed in report ofCabinet member forEnvironment on 25 J uly

2011 Borough wideremoval of Pay atMachine parking facility

1b What data is available on

customers/service users?

List service held data &

consultation results (includeanecdotal/staff knowledge,quantitative and qualitativedata)

Identify user groups

Ensure consultation/data is asrepresentative as possible.

Check for any planned parallelconsultation.

Identify any missing information

Users of the current pay and display

machine facility include potentially allmotorists using on street parking and carparks in the London Borough of Barnet.

Alternative method of payment exists viapay by phone technology, and dataexists which indicates that this option ofpayment has become increasinglypopular since its inception, and now

amounts to nearly 50% of all pay at time


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and how it will be obtained of parking transactions.

This indicates that the coin option via payand display machines whilst still beingregularly utilised is diminishing asacceptance of the pay by phone facilityincreases.

1c i) Will the project, servicechange or new policy have anyimpact on each of the equalit iesgroups?

Male & female People of different ages

People with different ethnicbackgrounds

People with different sexualorientations

People with disabilities People with different

religious beliefs

ii) Has any adverse impact orpotential discrimination beenidentified for any group/s?

Use existing &/or new data and considereach group separately.

i) Where appropriate, think about: Service take up - whether all

groups will use the service/sService outcomes what theservice outcomes will be for

different groups Service quality will all groups

get the same quality of service Customer satisfaction whether

all groups are likely to equallysatisfied with services

Customer access will anygroups will have difficulty findingout about services, contacting us orusing our services.

ii )Explain what, and how, any negativeimpact affects group/s.

Is there any unlawfuldiscrimination, barriers orexclusion, failure to promoteequality?

Assess level of impact.(High,Medium,Low)

As the changes would require payment tobe made solely using telephones,consideration has been given to whichsectors of the community would beimpacted upon.

Research indicates that that growth inmobile phone ownership since 2001/2increased from 65 % to 81 % in 2009*and mobile phone take-up in England foradults (considered to be 15+) as 90 % ofindividuals in Q1 2010** so a relativelysmall percentage of motorists in Barnetwould potentially be impacted by theremoval of the pay at machine option.

*Source: Living Costs and Food Survey,Office for National Statistics

** Source: Ofcom research Q1 2010

It is not considered there will be adverseimpact on a gender, sexual orientation orreligious belief basis as the changes will

affect these groups equally.

The only age group envisaged to beaffected by the project are the elderly as itis considered they are less likely to beaccustomed to utilising a mobile phone inthe methods necessary to pay for theirparking sessions by phone. It isconsidered that technology could also


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discriminate against the infirm anddisabled.

In addition, customers who do not speakEnglish as their first language may feeldiscriminated against if they are unable tounderstand the instructions correspondingto the cashless payments.

It is considered that the removal of payand display machines across the boroughwould have a significant impact on certainsectors of the community who, due totheir personal circumstances , may not beable, or be comfortable using the pay byphone technology.

1d Will the project, service changeor new policy have any impacton any other groups not listedabove?

Issues may arise for other groups, suchas cyclists, shop owners, people livingin different areas of the borough, peopleon different incomes etc.

The removal of pay and display machinesmay in theory deter motorists from visitinglocal amenities due to not wishing toutilise the existing pay by phonetechnology, which could have an impacton the viability of certain areas.

1e Does the project, service

change or new policy enhanceBarnets reputation as a goodplace to live and work?

Think wider context:Other council & directorate initiatives,current local and national issues andhow this particular policy, service,project adds to that narrative. Whatcumulative effect may it have on publicperception of Barnet?

The removal of the aging andunderperforming pay and displaymachines and movement to the existingpay by phone option will contribute to theCouncils aims of offering a better servicewith less money, improve the street scenethrough a reduction of street furniture,increase footfall in town centres andultimately improves public confidence inthe parking regime in the borough.

1f Does the project, servicechange or new policy appear tofavour or have benefitsexclusively for one section ofthe community?

Consider risks & opportunities forcommunity cohesion and managingperceptions

The removal of pay and display machineswill not favour or have benefits exclusivelyfor one section of the community.

1g Have any negative impacts beenidentified which can not beremoved or reduced?

Some times a negative impact can not be

The justification required here needs toclearly explain why no action can betaken and give evidence to show dueregard has been given to the

The cost to the Council of removing theexisting pay and display infrastructure willbe subject to a large initial cost, althoughthis will be mitigated through the overall


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removed or reduced. eg. if the resultant actionwould cause greater negative effects or cannot be justified on other grounds.

consequences. savings of servicing and maintaining thepay and display infrastructure.

It is acknowledged that some customersmay feel unsafe using their mobile phonein a public area.


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2. Action Plan

Any mitigating action required to address identified negative impacts should be entered on to the Action Plan.

Identified issue requiringaction to remove ormitigate effect

Guidance Key action required Progressupdate

1. a) The removal of the pay atmachine service will require

customers to use adebit/credit card and a mobilephone to pay for a parkingsession. Customers who donot have either will not beable to use the service.

b) The elderly, infirm ordisabled may not be able oraccustomed to using theirmobile phones to utilise thepay by phone system

c) Members of the public maynot be inclined to utilise the

pay by phone system.

d) The removal of pay anddisplay machines may determotorists from visiting localamenities

e) Members of the public

Consider the following -are there;

1. Identified gaps inconsultationdata/information (bespecific)2. Identified impacts forservice take up,outcomes, quality,customer satisfaction &access (be specific)3. Identified potentialdiscrimination or adverseimpact for particulargroup/s(be specific)4. Identified impacts for

other non equalitiesgroups (be specific)Identified riskedperception of bias infavour of sections of thecommunity

Implementation of alternative cash optionconcurrent with the pay and display machineremoval, in the form of utilising Paypoint a cash payment system which allowsmotorists to pay for parking using cash orcard at selected convenience stores on awalk up basis. The transactions would thenbe logged on the pay by phone system.

The incorporation of this cash option shouldbe sufficient to overcome the objections ofthose who do not have a mobile phone or adebit/credit card, and will go some way toresolving potential equalities issues relating tolanguage issues, elderly and disabled accessto the service, and the impact on localamenities across the borough.

Although paying for a parking sessionthrough Paypoint would only be available atexisting Paypoint outlets, it is considered

that these outlets are situated in areaswhere there are subject to more transientparking, and could increase customerfootfall in certain retail premises throughoutthe borough.

It is envisaged that the Paypoint option beintroduced prior or concurrent to the pay and

display machine removal to ensure a cash


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whose first language is notEnglish may not be able tounderstand the pay byphone instructions

option is available at all times.However, it is acknowledged that therecould always be individuals who due topersonal circumstance or inclination, maynot be comfortable, or willing to utilise thepay by phone technology.

2. Members of the public maynotbe aware of the intentions toremove the pay and displaymachines

Press releases, advertising in local media, inthe public domain and on the councilswebsite will be undertaken to prepare thecommunity for the changes, with a view topromoting sign-up to the pay by phonetechnology

Pay at machine signage will be replaced bypay by phone signage in each parking

place, and additional supplementary how touse signage will also be erected

3. Physically challenged groupsof the community will find itdifficult to gain access to ashop to utilise the PayPoint

option of paying for a parkingsession.

Paypoint is an option only at locations wherethis facility already exists. Disabled Badgeholders can park for free at pay and displayparking places and the removal of the payand display machines will not remove this

entitlement. For those without badges, thepay by phone option would allow disabledusers to pay for parking from or near theirown cars.

3. Additional Notes

Legal implications

It is not considered that there are any legal implications associated with the complete removal of all cash paymentsfrom on-street and off-street parking facilities. It is considered there is no statutory requirement for cash paymentoptions to be maintained. However, whilst there are no specific legal issues, this Equalities Impact Assessmentidentifies that there may be opposition from residents and users.

Documents

1375 - Cashless Parking July 2011