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Recommendations to Improve the Customer Experience - Smart Meter Pilot Project Copyrighted January 22, 2019 City of Dubuque Action Items # 5. ITEM TITLE: Recommendations to Improve the Customer Experience Based Upon the Smart Meter Pilot SUMMARY: City Manager recommending that the City move forward with creating a comprehensive plan for the implementation of a Smart Parking Services Platform. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Smart Meter Pilot-NNM Memo City Manager Memo Staff Memo Staff Memo THE CTTY OF Dubuque �" ui���eNe�ary DUB E 'il��i;' Masterpiece on the Mississippi Z°°' Z°'Z 2013 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Recommendation to Improve the Customer Service Experience Based Upon the Smart Meter Pilot DATE: January 17, 2019 The City of Dubuque is experiencing a growing demand for parking options in its Central Business District. This demand is due to the consistent growth of tourism, and the development of business opportunities and employment that is bringing more people into our city. The Central Business District is composed of the Downtown area, the Port of Dubuque and the Historic Millwork District. The City finds itself faced with finding solutions to accommodate our residents, visitors and business by providing parking options that offer the best parking experience specifically in the districts that are experiencing an increase in commercial and residential growth. The Parking Division manages thirteen surface parking lots in the downtown area and two surface parking lots in the Port of Dubuque. The surface parking lots in the downtown area have a capacity of 488 and 521 spaces in the Port of Dubuque. The parking lots operate on a combination of monthly reserved parking and parking meters. The parking ramps in the downtown area have a space capacity of 2803 and the ramp in the Port of Dubuque has 1069 spaces. The Division manages 1859 street and lot parking meters. These meters have time increments of 20 minute, 40 minute, 1 hour, 2 hours, 4 hours and 10 hours. The City's current parking plafform is a mixture of on-street and off-street parking provided by lots, ramps and street parking. The parking system is not an integrated plafform. Under the current system we do not have the means to offer the most efficient and effective parking experience to our residents, visitors and commercial community. The efficiency and effectiveness of the City's parking system are impacted by the following factors: Capacity — The lack of a centralized parking system that offers technological and digital updates via apps or digital signage for available parking in the area versus looking for spaces in ramps, lots or on the street Type of user— Monthly or regular parking patrons can find the available spaces more efficiently than infrequent visitors because they are familiar with the layout of the parking facility and typically know where the spaces will be available when they are parking. On-street vs. Off-street — On-street parking spaces are less efficient than off-street spaces, due to the time it takes patrons to find vacant spaces and unclear signage that typically accompanies on-street parking systems. In addition, patrons are generally limited to one side of the street at a time and often must parallel park in traffic to use the space. Smart parking provides options and ideas for a more improved parking experience. The ideal system will allow the integration of all of the existing platforms into one system. This system will provide real time data gathering, notification of parking availability via app and digital signage, cashless parking, and options for time extensions that will reduce parking violations. Smart parking offers opportunities to increase utilization of the current parking system through the application of demand management strategies. The concept of parking demand management incorporates the use of smart growth principles that focus on equitable operating policies, pricing strategies, and public transit initiatives. A smart parking system encourages proactive parking management strategies as an effective tool in mitigating the amount of additional future parking supply that is required by maximizing the utilization of existing parking resources. Current parking meter hardware is dated and it lacks the ability to integrate with smart parking technology. In early 2018 per the recommendation of the Transportation Services Department the City began to explore the option of smart parking by looking at smart meter options. After reviewing presentations from several vendors, the City chose to enter into a trial program with Municipal Parking Services, Inc. ("MPS") starting Tuesday, October 2, 2018 through Friday, November 2, 2018. MPS proposed a pilot using equipment installed and operated at no cost to the City. For 31 days residents and visitors had the use of 10 meters and 2 SafetySticks covering 21 spaces in mutually agreed upon locations. During the pilot period there were 3,348 parking transactions; 16°k were credit card transactions. The pilot provided a snapshot of how an integrated Smart parking system can optimize the customer's parking experience using innovative ways to alleviate traffic congestion and improve the parking experience. The pilot demonstrated that a smart parking platform is needed to accommodate the growing business and residential populations in the Downtown, Millwork and Port districts. 2 It is the recommendation of Director of Transportation Services Renee Tyler that the City move forward with creating a comprehensive plan for the implementation of a Smart Parking Services Platform. The platform will focus on improving the customer experience and it will integrate smart parking technology for the commercial and residential populations in the Downtown, Millwork and Port Districts using digital signage, apps and smart meters to alert residents and visitors of available parking. Step I. The commission of a comprehensive parking study that will provide an update of current inventory that will provide the basis for determining equitable parking options for the residential and commercial population within the area. Step II: Using the data gathered from the study construct an RFP for an integrated platform. Criteria will include the ability to provide Smart Realtime Technology to include digital signage, smart meters, an integral database that links all equipment used to operate ramps, meters, and parking kiosks. Funding criteria should be explored during this RFP. I recommend that the City look at nontraditional funding such as a pay performance agreement structured on a revenue split based on net revenue after all meter related expenses have been covered (similar to the agreement proposed by MPS) or a municipal lease agreement that allows a negotiated payment over a term period. Step III: The analysis of the pilot data showed that the Downtown District street parking is most heavily utilized in the following corridors: Main Street (South End to 14th Street), the Federal Building (both sides of 6th) and Locust Street (1 st to 14th Street). The Main Street District has 197 metered parking spaces with 33 metered permits between 11 th and 13th street. Locust has 185 metered parking spaces and there are 60 meter permits integrated throughout the area. There are 18 meters in front of the Federal Building with no meter permitted parking. Upon the award of the RFP for the Smart Parking Platform is my recommendation to focus the initial rollout of this project in the Main Street, Federal building and Locust Street parking districts. The initial RFP will also address the use of parking ramps and how they integrate into the smart meter concept. This will allow the City to provide more effective parking solutions to the citizens and visitors while providing better enforcement coverage to two of the busiest sections of the city. Due to the anticipated growth from the influx of a commercial and residential population in the Millwork District smart meters can be installed in the newly opened lots on 9th and Elm and 11 th and Elm. These lots are currently unmetered with 4 hours parking monitored by Parking Enforcement Officers. However, the effectiveness of these meters may not be realized until both sides of Washington between White and Elm are metered. 3 After conversion of these key on-street parking areas, surface lots and the parking ramps, the City will move to integrate the remaining public parking through this multiyear phased approach. I concur with the recommendation and respectfully request Mayor and City Council approval. .L�1Gt3'i�+'1 � ��fx�L�/1tr "-,. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Renee Tyler, Director of Transportation Services 4 Dubuque THE CITY OF � D <J � E All•Amer�caCitY Masterpiece on the Mississippi 1 I I I I�' zwo.zmi•zma•zm� TO: Michael C. Van Milligen, City Manager FROM: Renee Tyler, Director of Transportation Services SUBJECT: Recommendations to Improve the Customer Experience Based Upon the Smart Meter Pilot DATE: January 11, 2019 Introduction The City of Dubuque ("City") is experiencing a growing demand for parking options in its Central Business District. This demand is due to the consistent growth of tourism, and the development of business opportunities and employment that is bringing more people into our city. The Central Business District is composed of the Downtown area, the Port of Dubuque and the Historic Millwork District. Addressing parking issues such as variable on-street paid parking in the commercial district, residential permit parking, parking validation programs, parking requirements for new development, a parking information campaign, increasing the parking inventory, shared parking arrangements and additional enforcement of existing regulations has been ongoing. The City finds itself faced with finding solutions to accommodate our residents, visitors and business by providing parking options that offer the best parking experience specifically in the districts that are experiencing an increase in commercial and residential growth. Per a 2008 study performed by Walker Parking Consultants the areas of growth were correctly identified as the Downtown, Millwork and Washington districts. Background The Parking Division manages thirteen surface parking lots in the downtown area and two surface parking lots in the Port of Dubuque. The surface parking lots in the downtown area have a capacity of 488 and 521 spaces in the Port of Dubuque. The parking lots operate on a combination of monthly reserved parking and parking meters. i The parking ramps in the downtown area have a space capacity of 2803 and the ramp in the Port of Dubuque has 1069 spaces. The Division manages 1859 street and lot parking meters. These meters have time increments of 20 minute, 40 minute, 1 hour, 2 hours, 4 hours and 10 hours. The 2008 parking study projected a future need for parking in the Warehouse District (Millwork) due to the abundance of available commercial space slated for redevelopment and the lack of existing parking supply. Long-term recommendations from the 2008 report advised the City to consider the development of a public parking platform that satisfies public demand and influences development by providing for future needs. Discussion Our current parking platform is a mixture of on-street and off-street parking provided by lots, ramps and street parking. The parking system is not an integrated platform. Under the current system we do not have the means to offer the most efficient and effective parking experience to our residents, visitors and commercial community. The efficiency and effectiveness of the City's parking system are impacted by the following factors: Capacity — The lack of a centralized parking system that offers technological and digital updates via apps or digital signage for available parking in the area versus looking for spaces in ramps, lots or on the street Type of user— Monthly or regular parking patrons can find the available spaces more efficiently than infrequent visitors because they are familiar with the layout of the parking facility and typically know where the spaces will be available when they are parking. On-street vs. Off-street — On-street parking spaces are less efficient than off-street spaces, due to the time it takes patrons to find vacant spaces and unclear signage that typically accompanies on-street parking systems. In addition, patrons are generally limited to one side of the street at a time and often must parallel park in traffic to use the space. After the 2013 launch of the Passport Meter system which allows cashless parking via a phone app, the City began to look at smart parking solutions in early 2018. Smart parking provides options and ideas for a more improved parking experience. The ideal system will allow the integration of all of our existing platforms into one system. This system will provide real time data gathering, notification of parking availability via app and digital signage, cashless parking, and options for time extensions that will reduce parking violations. Smart parking offers opportunities to increase utilization of the current parking system through the application of demand management strategies. The concept of parking demand management incorporates the use of smart growth 2 principles that focus on equitable operating policies, pricing strategies, and public transit initiatives. A smart parking system encourages proactive parking management strategies as an effective tool in mitigating the amount of additional future parking supply that is required by maximizing the utilization of existing parking resources. A first look at parking solutions to modernize our current meter system resulted in the FY2013 implementation of the Passport system. Passport allows residents and visitors to use credit cards or coins for parking payment. It also provides an option for extending parking sessions. Unfortunately, Passport does not support or provide the components needed to integrate the City's lots, ramps and street parking into one platform. Additionally, current parking meter hardware is dated and it lacks the ability to integrate with smart parking technology. In early 2018 per the recommendation of the Transportation Services Department the City began to explore the option of smart parking by looking at smart meter options. After reviewing presentations from several vendors, the City chose to enter into a trial program with Municipal Parking Services, Inc. ("MPS") starting Tuesday, October 2, 2018 through Friday, November 2, 2018. MPS proposed a pilot using equipment installed and operated at no cost to the City. For 31 days our residents and visitors had the use of 10 meters and 2 SafetySticks covering 21 spaces in mutually agreed upon locations. During this period, 3 meters were installed at lower Main between the blocks of 1 st and 2nd, 3 were installed on Main in the 9th block and 5 meters were installed at 9th and Jackson. During the pilot period there were 3,348 parking transactions; 16°k were credit card transactions. This trend is consistent with the results of our Passport program where we see card transactions are trending monthly at 18-20°k. An integrated parking platform will provide more succinct options for residents and visitors in their ability to park. The pilot provided a snapshot of how an integrated Smart parking system can optimize the customer's parking experience using innovative ways to alleviate traffic congestion and improve the parking experience through: - Smart meters are designed to be customer-friendly, drivers can pay with a credit card, coins, or through a parking app. Parking can also be paid remotely by app - Providing immediate assistance in areas where parking is a commodity with significant violations. - Optimal parking achieved through an increase of traffic flow. - Assisting with pollution reduction through a decrease in driving and idling time thereby cutting emissions ultimately reducing the global and environmental footprint. - The creation of new technological revenue streams that include reward systems to residents for compliance and adverting opportunities for local business. 3 - Optimization of existing parking through the use of tiered payment options depending upon parking space location and time of day. - Provides a measurable increase in pedestrian safety and parking enforcement. Parking lot employees and security guards contain real-time lot data that can help prevent parking violations and suspicious activity. License plate recognition cameras can gather pertinent footage. Also, decreased spot-searching traffic on the streets can reduce accidents caused by the distraction of searching for parking. - The parker can take more time for shopping, medical visits, or tourism activities while away from the car and the parking meter without fear of receiving a ticket for violation. - Providing real time data for parking trends, over time, a smart parking solution can produce data that uncovers correlations and trends of users and lots. These trends can prove to be invaluable to lot owners as to how to make adjustments and improvements to drivers - A decrease in administrative and operational costs due to more automation and less manual activity. This saves on labor cost and resource exhaustion. - Increased service and brand image — a seamless experience can really skyrocket a corporate or commercial entities brand image to the user. Whether the destination is a retail store, an airport or a corporate business office, visitors will surely be impressed with the cutting edge technology and convenience factors. - The integration of a smart parking platform will give our Parking Enforcement Officers ("PEO") the ability to focus on other areas in the City that are regulated by permit parking. - An overall better parking experience for our residents and out of town guests. The pilot demonstrated that a smart parking platform is needed to accommodate the growing business and residential populations in the Downtown, Millwork and Port districts. The City is anticipating a new wave of growth with Dupaco Credit Union ("Dupaco"). Dupaco recently announced its plans to expand its operations to the Millwork district. This expansion plan requires a detailed block by block breakdown of available off street parking inventory and long-term parking beginning on or before December 31 , 2019. Dupaco's expansion terms will require the City to move forward with planning a smart parking platform that will accommodate future parking and transportation needs through the development and integration of Smart Realtime Technology. 4 In FY19 $424,499 was allocated for operational and capital cost for upkeep and meter replacement of the current system. Operational & Capital Cost for Current Meter System: $424,499 5zso,000 5zzi,ssa 5zoo,000 5iso,000 5iao,000 5ioo,000 $72,946 $50,000 $0 Meter Replacement(Capital Meter Maintenance(Operations) Parking Meter Enforcement Budget)FY19 As illustrated in the graph, $130,000 has been set aside for meter replacement in FY19. Recommendation It is the recommendation of Transportation Services that the City move forward with creating a comprehensive plan for the implementation of a Smart Parking Services Platform. The platform will focus on improving the customer experience and it will integrate smart parking technology for the commercial and residential populations in the Downtown, Millwork and Port Districts using digital signage, apps and smart meters to alert residents and visitors of available parking. Step I. The commission of a comprehensive parking study that will provide an update of current inventory that will provide the basis for determining equitable parking options for the residential and commercial population within the area. J Step II: Using the data gathered from the study construct an RFP for an integrated platform. Criteria will include the ability to provide Smart Realtime Technology to include digital signage, smart meters, an integral database that links all equipment used to operate ramps, meters, and parking kiosks. Funding criteria should be explored during this RFP. I recommend that the City look at nontraditional funding such as a pay performance agreement structured on a revenue split based on net revenue after all meter related expenses have been covered (similar to the agreement proposed by MPS) or a municipal lease agreement that allows a negotiated payment over a term period. This period is an ideal time for consolidation of the various merchant card processers into one. Step III: The analysis of the pilot data showed that the Downtown District street parking is most heavily utilized in the following corridors: Main Street (South End to 14th Street), the Federal Building (both sides of 6th) and Locust Street (1 st to 14th Street). The Main Street District has 197 metered parking spaces with 33 metered permits between 11 th and 13th street. Locust has 185 metered parking spaces and there are 60 meter permits integrated throughout the area. There are 18 meters in front of the Federal Building with no meter permitted parking. Upon the award of the RFP for the Smart Parking Platform is my recommendation to focus the initial rollout of this project in the Main Street, Federal building and Locust Street parking districts. The initial RFP will also address the use of parking ramps and how they integrate into the smart meter concept. This will allow the City to provide more effective parking solutions to the citizens and visitors while providing better enforcement coverage to two of the busiest sections of the city. Due to the anticipated growth from the influx of a commercial and residential population in the Millwork District smart meters can be installed in the newly opened lots on 9th and Elm and 11 th and Elm. These lots are currently unmetered with 4 hours parking monitored by Parking Enforcement Officers. However, the effectiveness of these meters may not be realized until both sides of Washington between White and Elm are metered. After conversion of these key on-street parking areas, surface lots and the parking ramps, the City will move to integrate the remaining public parking through this multiyear phased approach. 6 It is recommended that Economic Development, Planning and Transportation Services work together to create a plan that will service the needs of these Districts and anticipate future parking and transportation service needs to ensure that we are meeting the parking and transportation needs of all our residents and visitors in the most equitable manner. VRT Attachments (4) Cc: Jill Connors, Director of Economic Development Gus Psihoyos, City Engineer, Engineering Laura Carsten, City Planner, Planning Jodi Johnson, Operations Supervisor, Transportation Services Meter Revenue Summary There were at total of 3,348 parking transactions during the smart meter pilot. 16% were credit card transactions. Smart Meter Pilot - Meter Revenue Summary - Coins and Credit Cards $i,600 $1,400 Meter Revenue 285 Main Pilot 890 Main Pilot Jackson Street 7otal Pilot $1,200 SM159 00 5616A5 5497A5 f1,572.50 5146 10 5148 50 533�1 08 f628.68 $1,000 $100.85 5127.49 583.11 Total 5605.10 576d.95 5231.13 52.201.12 $800 $600 $400 $200 $0 ■ ■ 285 Main Pilot 890 Main Pilot Jackson Street Pilot Total ■Coins ■Credit Card Coin vs Credit Card Use 285 Main Pilot 890 Main Pilot Jackson Street Total Pilot • 791 1,340 687 2,818 -. . 124 145 261 530 • '-• - � 14% 10% 28% 16% -. . Total 915 1485 948 3348 8 Meter Revenue Summary (continued) Meter Revenue Oct-Dec 2018 5�0,000.00 5eo,000.00 5so,000.00 5ao,000.00 5ao,000.00 5zo,000.00 5io,0005° III 1■1 1I1 I ■■■ 1I1 ■1� Passport Bluff Locust Main lowa Central Millwork Total ■December ■November ■October October November December Passport $12,223.00 $ 9,868.25 $ 9,807.05 Bluff $ 6,585.00 $ 3,192.84 $ 6,921.00 Locust $ 7,996.00 $ 9,024.00 $ 5,960.00 Main $16,094.00 $15,021.00 $10,104.00 lowa $ 2,726.00 $ 2,844.00 $ 3,200.00 Central $ 8,227.96 $ 9,910.93 $ 5,271.00 Millwork $ 3,861.00 $ 6,131.38 $ 3,104.00 Total $57,712.96 �$55,992.40 $44,367.05 9 Violations Comparison During the pilot period more violations were recorded than the same period in 2017. This can be attributed to several factors: • The 2017 violations were the instances when a PEO happened to be at an expired meter at the right time • The 2018 violations include every single violation when a vehicle was parked at the smart meter— no PEO had to be present to record the violation Meter Violations at Smart Meter Locations during same period: 2017 vs 2018 450 400 235 Main St 390 Main St 9761ackson St 2017 Meter Violations 39 55 53 2018:Did Not Pay 133 65% 197 54% 215 55% 350 2013:TimeExceeded 100 35% 168 46% 177 45% 2013 Total 238 365 392 300 250 200 150 100 50 0 285 Main St 890 Main St 976 Jackson St ■2017 2018 Did Not Pay ■2018 Time Exceeded 10 Violations Comparison (continued) Meter Violations at Smart Meter locations during same period: 2017 vs 2018 aoo 350 300 250 200 150 100 5� ■ . ■ 285 Main St 890 Main St 976Jackson St ■2017 Meter Violations �2018 Detected Violations: Did Not Pay and Time Exceeded ll