HRM Parking Implementation Study - Final Report - Dillon 2012-03-06

7/31/2019 HRM Parking Implementation Study - Final Report - Dillon 2012-03-06

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Parking Implementation Study

Final ReporMarch 2012

Halifax Regional Municipality


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Halifax Regional MunicipalityParking Implementation Study, Draft Report March 2012

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Table of Contents

1.0 Introduction...................................................................................................................1

2.0 On-Street Parking Pay Station Technologies ...............................................................22.1 Pay Station Technologies .....................................................................................22.2 Hardware Size and Placement ..............................................................................42.3 Power Needs........................................................................................................42.4 Maintenance Requirements ..................................................................................42.5 Ability to Accommodate Motorcycles..................................................................52.6 Weather Issues .....................................................................................................5

2.7 Warranties............................................................................................................6

3.0 Pay Station Technology Costs .......................................................................................73.1 Capital Costs........................................................................................................73.2 Maintenance.........................................................................................................73.3 Management ........................................................................................................83.4 Purchasing/Financing Options..............................................................................93.5 Summary ...........................................................................................................10

4.0 Considerations and Next Steps....................................................................................114.1 Creating a Specification for HRM......................................................................11

4.2 Peer Municipality Discussions ...........................................................................124.3 Communication with Businesses and the Public .................................................124.4 Changes to Daily Operations and Staffing..........................................................134.5 Timing ...............................................................................................................14


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1.0 IntroductionDillon 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 projectahead.


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2.0 On-Street Parking Pay Station TechnologiesThe 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 TechnologiesThe 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 Pay and Display Pay-By-Plate Pay-By-Space

Advantages Reasonably inexpensiveto implement

Reasonably well knownby users

Dont require spaces on-street to be designated

Enforcement is visible(i.e. walking thestreets)

Can typically achieve10% more parkedvehicles than withmarked spaces

Eliminates the costsassociated withrepainting andmaintaining parkingspace markings

Enforcement can bedone remotely

Cant transfer proof ofparking (pass-back)

Dont require spaces on-street to be designated

Can accommodatemotorcycles easily

Flexibility in increasingpaid parking time

Potential for higherrevenues

Eliminates the costsassociated withrepainting andmaintaining parkingspace markings

Enforcement can bedone remotely

Can accommodatemotorcycles easily

Flexibility in increasingpaid parking time

Can re-use individualmeter posts for spacesignage

Disadvantages Proof of parking ticketscan be transferredbetween users (pass-back), resulting in a lossof revenue

Individual enforcementof each vehicle isrequired

Snow on the windshieldincreases enforcementtime

Cannot as easilyaccommodate

motorcycles Cant increase paid

parking time by phone;need to return to machineand pay for more time

A number of userscannot rememberlicense plate

Enforcement equipmentcan be expensive

Enforcement can bedifficult for closelyspaced vehicles

Snow build up onlicense plates can resultin enforcement issues

Relies on links tosoftware to confirm

parking violations Some glitches with

adding time haventbeen ironed out yet withsuppliers

Not widelyrecommended bysuppliers currently

Requires spaces on-street to be designatedand signed

Requires motorists toremember their spacenumber can be anissue if trying to addtime remotely by phone

Enforcement equipmentcan be expensive

Relies on links tosoftware to confirmparking violations

Some users can utilizeresidual time from aprevious user, resultingin lost revenue

Some glitches withadding time haventbeen ironed out yetwith suppliers


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2.2 Hardware Size and PlacementAll 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 NeedsWhile 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 RequirementsTypically, 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 MotorcyclesBoth 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 IssuesAs 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 simplyincrease the frequency in maintaining the silicone seals on the machine. The salty fog doesnt

really affect the electronic operation of these machines.

2.7 WarrantiesMost 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 CostsCosts 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 CostsIn 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 MaintenanceAll 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 ManagementBoth 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 parkingby 10-15%. This is due to the removal of delineated parking stalls.


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3.4 Purchasing/Financing OptionsPrecise 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 manufacturersfor 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 SummaryBased on our review of industry material/documentation and discussions with suppliers of on-

street 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 StepsOutside 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 HRMIn 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 DiscussionsThere 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 PublicIt 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 therate structure will be invaluable.

HRM may consider creating:

Overall communications plan Newspaper advertisements Brochures

Flyers Regular meetings with stakeholder groups4.4 Changes to Daily Operations and StaffingThe 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 TimingBeginning 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 morecommon; and

the warmer weather may also make the walk to and from a Pay and Display machine seemless 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


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

MEMO

TO: David McCusker, P.Eng.

FROM: Mike Walters, P.Eng.

DATE: 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.


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

ResponsesQuestion

Cale Systems Precise Parklink MacKay Meters

Capital Costs

What is the approximate capital cost perPay Station for each technology?

Pay and Display - $9,000 each for a coin and credit card machinePay by Space - $9,250 each for a coin an d credit card machine.

Pay by license - $12,500 for a coin and credit card machine.

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

Without knowing the configuration, (P&D/PbyS/PbyPlate) or the paymenttypes accepted (coins/city card/credit card/bill/cell phone) it is difficult to

give a capital cost. Depending on the specific configuration you are lookinat, anywhere between $8,000 and $11,000 per machine.

What is the typical installation cost perPay Station unit? Please indicate the costfor a typical solar installation and a hard

wired installation.

For seven machines, the total cost would be $2,000. This includestravel and accommodations for our installer. The price is the same foreither a solar or hard wired machine. This city would need to provide

an electrician to do the final electrical termination on the AC poweredmachines.

Again depends on quantity, proximity to each other. Who will prepareconcrete? Is there power for the A/C units? A/C is usually reserved forextreme cold so that heaters can be installed. Our electricians are

licensed. Solar units just get placed and anchored. Precise Solarmeters have been cold tested by an independent third party, andfunction to -36 degrees.

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 a new location, and a new 'pad' is required, we would provide (includedthe cost of the machine) a machine anchor to be installed while pouring thconcrete. We can also install units using chemical anchors.

Installation/commissioning of the unit on the prepared site, would beincluded.

Does the technology require or benefit

from specialized monitoring equipment

for enforcement? If so, please provide theunit price. Please indicate if theequipment is required or optional. Howmany 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 vehicleswindow.Pay by Space and Pay by License - we recommend using an iPad withinternet 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 areNOT RECOMMENDED.Regular pay and display fits well with any solution currently in use bythe municipality for enforcement purposes. (no new costs unless city

opts for new handhelds.)

Depending on t he technology:

PandD - Nothing specialized needed for enforcementPbyS - 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 notspecialized, with the only requirement being that it must have internetcapabilities. Using this hand held, the enforcement officer, would log intoour remote space manager and get the same information as they would see

the ticket print out.PbyPlate - The same type of hand held as noted above (could be phone, PDiPad, tablet, computer, etc). The enforcement officer would log into ourremote plate manager, and would see a list of plates paid or not paid.....ortype in a specific plate to see whether or not it was paid or not paid.

Maintenance Costs

What is the price per Pay Station unit ortransaction?

There is no transaction charges from Cale. Transactions typically arehandled by the payment gateway such as Moneris, Chase Paymentechamong others. We do charge $65/machine per month for Cale Weboffice which includes: Communicat ion fees using Rogers Wirelessnetwork; credit card processing up to the bank processor under

PCI DSS level 1 Certification; software support; updates and unlimiteduser access. This cost is included in the rental option.

Again depends on quantity and service plan option chosen. We usuallycustom 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, asmost cites have existing mainten ance personnel. MacKay does provide a o

year parts and labour warranty, with extended warranty options available.Should a maintenance contract be required by the city, we would certainlyentertain this request, as we have a large office in Halifax currently, and athe only parking manufacturer, east of Montreal. As our Head office is inNew Glasgow N.S, support would not be an issue.

Please indicate the service relationship asto the use of local subcontractors or themunicipalitys staff and any

estimates/guarantees for service times.

We don't feel a sub-contractor would be needed. There are many siteswhere the distance from our nearest technician is more than 1,000 kmfrom the nearest service depots. In these cases, the customers take care

of any routine issues themselves. We also deal with a number of largercities that choose to do all of their own maintenance. As an example,

we have successful sites in Thunder Bay and Timmins among otherswhere the first line of service is done by the customer.

As for response time, we typically ship out replacement parts within 24hours and you will be provided with a technicians cell number.

It is possible for the municipal staff to handle almost all maintenance.We already do this with a number of municipalities. All of the partsare plug and play, trouble shooting for difficult issues would be

supported by our H.O. in Toronto 24/7. If the number of metersreaches a significant quantity, Precise would look at opening a local

office to support the municipality.

See above, but we believe the municipality's staff would have no problemsservicing any MacKay equipment. We have provided the City of Halifaxwith all of their parking equipment for the past 40+ years.

What would an approximate unit cost befor the municipality to undertake themaintenance themselves?

There would be no extra charge if the municipality took care ofthe maintenan ce themselves. In fact, we encourage our customers totake care of non-warranty issues. This year we held successful

training courses in Montreal (English and French) and Ontario.

Dependent on quantity, but usually considered a tuck-in solution. These machines are very easy to maintain, as all of our components are pand play. Having said this, the cost to the municipality for maintaining thequipment themselves would be very minimal.


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ResponsesQuestion


For maintenance plans that involve theuse of municipal staff, do you providetraining on proper maintenance?

At the time of the installation, we would provide full training on thehardware and software. The equipment is modular inconstruction and components are easily swapped out if needed.

Yes. We could provide training at point of install. Usually 2 days, 1st

day theory and practical, 2nd day all practical.Should a maintenance plan be required that uses municipal staff, MacKaywould provide training to said staff at no additional cost.

Are there additional costs for training? No this is included. NoNo, training would be included in price of machine.

What is the duration of the trainingcourse?

See attachment for a description of on-site training that would beproposed.

Usually 2 days, 1st day theory and practical, 2nd day all practical.Depending on the number of staff, and equipment installed, a trainingsession could last anywhere from 1-3 days. Having said this, MacKay hasoffice in Halifax. Should additional training be required, we are a 5-minudrive away. (Located on Barrington)

What is the approximate ratio of PayStation units per municipal maintenancestaff?

We don't have any figures to present; however, the machines aredesigned to be maintenan ce free. The only regular maintenance shouldbe refilling tickets and changing the coin boxes. As an example, the

City of Montreal did a study of maintenance on their 1,500 machinesand found that, on average, the first major maintenance issue occurredat 52 months, and this included vandalism.

If you are talking about 7 units, 1 person is way too much. 2 staff per100 units is a close approximation. This includes staff handling paperreplenishment, parts exchange, trouble shooting, etc.

This ratio differs in every city, so I cannot give you an accurate number.

Would providing maintenance for thetechnology require municipal staff to bebonded?

No, the access to coin box is in a reinforced vault with a unique key. Aservice person would not have access to the cash section.

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. Basedon the design of our equipment, cash could be collected by a bondedindividual, whereas the day-to-day machine administration could beperformed by someone else. You may also get by collecting coin

without a bonded individual if the key that accesses the coin in acanister is not available to the individual. They can collect the coincanister, but not the coin in the canister. Most municipalities have thetransit operation count the coin as they are equipped to perform that

function. The ticket and electronic parts area are segregated byseparate control keys.

This would be up to the city

What is the typical service life for a PayStation?

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

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

Service life could be anywhere from 7-10 years. However, as technologycontinues to move so quickly, most municipalities start thinking aboutreplacing th ese types of units every 5-7 years. Just think of what your

computer was 10 years ago. As MacKay is continuously on the leading edof technology, upgrades are always available.

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 andchange paper. There are many independent companies we deal withthat do a very good job at this.

We could offer a Turn-Key solution. Precise handles everything

from cash collection, replenishment, maintenance, etc. All themunicipality does is cash the revenue checks.

MacKay is a parking solution specialist, providing hardware, software and

service to clients all over the world. Having said this, we wouldrecommended that an y city in the Atlantic provinces manage their ownsystem, as there is no reason to subcontract these services with MacKaybeing in the back yard of the majority of these cities.

How is revenue collected from the Pay

Stations and distributed to themunicipal ity? How often is this done?

For credit card transactions, we believe that it is very important that all

of the revenue collected at the machine goes to the municipality andnone of it to the machine provider. We provide the gateway from theparker to the credit card company but don't touch the money.The deposit is typically placed in the municipalitys account from yourpayment processor early on the next business day.

Our meters have sensors that trigger alarms back at H.O. indicating the

unit has reached a pre-determined threshold . In essence they ask tobe collected before they get full. This helps increase efficiencies byeliminating having to manually check meters only to find they dontneed collection.

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.

Are your devices PCI Level 1 compliant? 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 are the only Parking Management company with a PCI Level 1

Compliant Internal Closed Loop solution.

Yes absolutely. As well as PA-DSS.


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ResponsesQuestion


VISA LINK to their Global list of PCI DSS Validated ServiceProviders

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 whichsuppliers are level 1 compliant.

Do you provide any guarantees for revenueincreases?

No, we don't take part in either negative or positive revenue changes Based on real life applicati on. We cant account for interruptions toparking 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 adesignated area without increasing the footprint of the parking area.This works as follows: in delineated stalls, they exist in a size thatmust accommodate all vehicles. In pay and display the lines areremoved and the usual increase in available parking is approximately

10%-15%. Obviously this increase should positively affect revenues ifthe core parking area is currently at or near capacity.

A properly maintained and enforced parking system will always yieldrevenue. Having said this, it is impossible for anyone to guarantee revenue

increase unless raising rates, and changing by-laws (changing hours ofoperation for example) are taken in consideration.

Do you provide options for enforcement?If so, please detail any service tiers at a

unit price level.

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

We currently have our own enforcement department and could makearrangements based on the size of the project.

No, enforcement is the responsibility of the city. (They do a very good jobthis already!)

Purchasing / Financing Options

What types of payback arrangements canbe made for purchased hardware?

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 wouldcredit the municipality $285/machine per month towards the purchaseprice. If the municipality wants the equipment removed we wouldcharge them $2,000 total for the removal.

Lease/Rent/Pur chase. I recommend the lease option as it offsets thecost 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 clientcould rent the machines for a 12-month term, or some mutually agreedto 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 inaddition to this cost.

If purchasing/financing options are required, we can cross that bridge.

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

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

Yes. On a monthly basis and at the end of the project.Yes absolutely. Using our back end system, the city has all transaction,audit, occupancy, reconciliation, location, and alert information at theirfingertip s. MacKay equipment uses the most powerful back office softwar

(called MacKay Sentinel) in the parking industry, and further informationcan be found by following this link:

http://www.mackaymeters.com/Products/Sentinel.aspx


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Cale Systems Proposed Training

HARDWARE AND SOFTWARE TRAINING

Module Duration Who should attend

Hardware

CollectionPaper replacement

Components cleaning

1st

line troubleshooting

Preventative maintenance

Minimum of4 hours ormore - asneeded

1st

line Technical staff and OperationManagement

CWO Software

CWO overview Administration staff, Parking Manager

Finance module Administration, Finances staff, ParkingManager

Operation module Operation staff, Parking Manager

Maintenance module Operation staff, Parking ManagerCredit Cards module Administration, Finances staff, Parking

Manager

Administration

Minimum of2 hours or

more - asneeded

Parking Manager

Ongoing support will also be provided by our technical staff based in Ontario andQuebec.

Cale Systems Pay-by-Space Enforcement Report


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Cale Systems Pay-by-License Enforcement Report


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Cale Systems Two Sample Revenue Breakdown Reports

Documents

HRM Parking Implementation Study - Final Report - Dillon 2012-03-06