Michael Klein presented on Albany Parking Authority's implementation of progressive on-street parking rates. The new rates eliminated time limits, increased turnover, supported economic development, and improved financial performance. Data showed the progressive rates increased parking space turnover without changing occupancy levels. The new rates also generated more revenue while reducing the payback period for multi-space meters. Overall, the presentation concluded the progressive rates approach was successful for Albany Parking Authority.
1. Michael Klein, CAPP
Executive Director Albany Parking Authority
Progressive On-Street Rates Eliminate Time Limits, Enhances
Customer Service, Generates Turnover, Supports Economic
Development, and Improves the Bottom Line
Presented at the June 2012 IPI Conference and Exposition
Implementing On-Street
Market Based Rates
17. • The right price is the lowest price for ~ 85% occupancy
• The right price will vary by block, time and day of week
• Parking is like a spot market in land rental
Credit: Don Shoup
Right Pricing
45. • Complaints of the 2-hour limit – meetings
• Exposed to tickets – want to do the right thing
• Off street parking – not close enough
General
Challenges
46. • Albany is the Capital of New York
• Significant amount of visitors
• State employees – feeding meters
Unique
Challenges
47. • On-street parking for one hour = $1
• Off-street parking is at least $20 for the first hour
• How long would you cruise rather than paying the
higher rate? Credit: Don Shoup
Cruising
50. # of Spaces # of M-S Annual Annual Dollars Projected Investment Payback
Block Face W/O H/C Meters Time Limit
Cash CashKey T`otal
Per Space New Revenue
Per Space
Period
State - Broadway - James - North 5 1 2 HR
$11,926.15 $30.50 $11,956.65
$2,391.33 $358.70 $2,000 5.6
State - Eagle - Lodge - South 21 2 2 HR
$42,957.25 $108.25 $43,065.50
$2,050.74 $307.61 $952 3.1
State - Green - Broadway - South 6 1 2 HR
$13,394.65 $41.25 $13,435.90
$2,239.32 $335.90 $1,667 5.0
State - Lodge - Eagle - North 26 3 20 MIN & 2 HR
$47,432.45 $344.25 $47,776.70
$1,837.57 $275.63 $1,154 4.2
State - Lodge - Pearl - South 25 3 20 MIN & 2 HR
$55,383.00 $251.25 $55,634.25
$2,225.37 $333.81 $1,200 3.6
State - Pearl - Green - South 8 1 1 HR
$15,004.05 $105.25 $15,109.30
$1,888.66 $283.30 $1,250 4.4
State - Pearl - Lodge - North 10 1 2 HR
$23,523.55 $107.75 $23,631.30
$2,363.13 $354.47 $1,000 2.8
Grand Total or Average 101 12 $209,621 $988 $210,609 $2,085 $312 $1,188 3.8
Phase 1
Budget Plan
51. Budgeted for 15% revenue increase
Phase 1
0
200
400
600
800
1000
1200
1400
COST PER SPACE PROJECTED NEW
REVENUE
PAYBACK PERIOD
Series1
52. Phase 2
• Budgeted for 15% increase
• Better indicator due to 1:1 replacement
• Actual increase 29%
54. • Budgeted CAPEX of $10,000/MSM
• Meter (installed)
• Signs (installed)
• Parking Ambassador program
• Marketing
55. Budgeted OPEX - no change
• Increase in back office expense
• Credit/Debit Card processing costs
• Decrease cost in labor
• Various puts and takes for maintenance
57. • Actual revenue better – due to progressive rate structure
• Actual OPEX – still too early to report on results
58. Future Plans
• Phase 3 – continue migration
• Incorporate Smart Single-space meters
• Pay by cell phone add-on
• Integrated payments & enforcement systems
• Other virtual systems
59. RECAP
• We must be willing to think differently – simpler
• The progressive rate structure WORKS!!!!
• Signage – consistent, clean and simple
60. • Marketing Matters
• Engage and listen to our customers
• Analytical focus – believe in the research
61. THANK YOU FOR ATTENDING
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