Cabinet Member Report Meeting or Decision Maker: Cabinet Member for Business Date: 30 May 2013 Classification: General Release Title: Bay Sensor Procurement Strategy Wards Affected: All Key Decision: Added to the list of forthcoming Key Decisions on 12 February 2013, meaning a decision can be made from 22 March 2013 onwards Financial Summary: Earmarked funding for the project has been set aside. A phased rollout of the project is recommended with Phase 1 focussing on West End, subsequent phases subject to business case Report of: Leith Penny Management – Strategic Director for City 1. Executive Summary 1.1. The continued challenge of managing traffic in a city with high parking demand, congestion, and imbalances of bay occupancy in neighbouring streets has led to a trial of sensor technology, which gives customers access to live parking availability. 1.2. The technology has helped customers to make an informed decision when parking, and had a positive effect on occupancy distribution and payment avoidance. 1.3. There are further benefits to integrating the technology with the traffic marshalling service as part of the wider 2014 parking strategy, which are detailed further in this report. Page 1 of 17 1.4. This report seeks approval for a roll-out of bay sensor technology in paid for and disabled parking bays in two phases, the West End, and subject to a further review, across the city. 2. Recommendations 2.1. That the Cabinet Member for Business approves the recommendations to: Appoint a single operator to provide end-to-end sensor technology and a real-time parking data solution, including on-going maintenance and support, for a period of 3 years from 2013/14 (with 2 years’ extension provision) via an open procurement process. Install bay sensor technology at all paid for and disabled bays in Westminster in a two phased approach; an initial deployment in central Parking Zones E, F3/6 and G, and following a review and business case justification and subject to formal Cabinet Member approval, deployment to all remaining Zones. Provide real-time parking availability to customers via free of charge web and Smartphone applications to help motorists make an informed decision on parking. Make use of a reserve of £1.5 million carried over from the 2011/12 financial year in order to fund the capital expenditure for this project; operating costs will be funded by the additional income generated by a projected increase in occupancy. 3. Reasons for Decision 3.1. The main benefits to be gained from the expansion of the concept are fourfold; A more balanced distribution of parking; moving demand away from oversubscribed to lower occupancy locations Increased occupancy in underutilised bays Reduced payment avoidance, and improved compliance in paid for spaces Improve the customer experience of parking within the City Page 2 of 17 4. Background, including Policy Context 4.1. The diverse nature of Westminster and its multiple users creates high demand for the limited parking space available; city-wide parking occupancy averages levels of more than 70%, and often in excess of 80% in the West End where demand for space is most acute. The associated problems of congestion and poor air quality are often compounded by the time taken for motorists to find parking as they drive around the city searching for availability. 4.2. A survey of commuting motorists in dense urban cities (including London) by IBM in 2011 found that, on average, 30% of the urban traffic is due to drivers looking for parking, and the average search time in a city such as London is 15 minutes. 4.3. Evidence from Pay by Phone transactions has shown the supply of and demand for parking bays is often mismatched in neighbouring areas, with saturated and under-used parking often close by. Studies of parking demand in the Leicester Square area revealed wide variance in occupancy in adjoining streets. This data analysis informed the new Marshalling approach to managing the area, where motorists are directed away from the square into nearby areas of low occupancy. 4.4. It was this initial concept of redistribution that led the Parking Service to seek out new ways of working to manage the kerbside, and adopt new technologies to dynamically react to these acute problems and an ever changing environment. 5. Sensor technology 5.1. Bay sensors provide a real-time record of parking bay occupancy. The technology works using equipment installed on, or underneath, the carriageway which detects vehicles by means of infra-red or magnetic signals. If a vehicle is parked over the sensor a signal bounces back to the sensor and the sensor will register that the bay is occupied. This information is then sent to a nearby data receiver (zone controller) mounted on a lamp column, which in turn sends the data back to a central server which transfers the data for all sensors onto a base map. Each sensor/bay is displayed on a map of parking spaces either as a red (occupied) or green (unoccupied) space. The colour status for each bay changes over time as vehicle movements are registered by the technology. This data can be viewed in real-time, but can also be used to generate various reports and profiles such as occupancy over a period, periods of stay, vehicle movements etc. 5.2. Crucially, the live data can also be integrated with customer Smartphone applications to provide real-time parking availability for motorists to help them make an informed choice on parking and potentially address the imbalance of occupancy in neighbouring streets, freeing up space for other users, and increase compliance. Page 3 of 17 6. Proof of Concept 6.1. Parking undertook a Proof of Concept (POC) of vehicle sensing technology between August and October 2012, to test if the technology could be successfully deployed in a busy urban on-street environment, and to see if by providing customers with live parking availability, could we positively affect customer parking behaviour, and make it easier and quicker for a motorist to find a parking space. 6.2. As part of horizon scanning innovations in technology, Town and City Parking (Smart Parking) offered to demonstrate the capability of the sensor technology and associated IT “Smartrep” reporting system. Supply of equipment and training were provided by TCP at no cost. The development of a Smartphone application was provided by Parkopedia. The only financial costs incurred by the council included the sensor installation crews (TranServ), development of two Smartphone applications, and a business and resident letter drop. 6.3. The appropriateness of the equipment for use on Westminster’s streets was ratified through internal peer review. In addition, engagement with Street Lighting and Road Management helped to minimise the impact on the kerbside. For example, It was determined that zone controller boxes be installed where possible behind existing lamp column signage to minimise their visual impact. 6.4. In total, 187 sensors covering 144 spaces were installed in five streets; Savile Row, Sackville Street, Jermyn Street and Burlington Gardens (all in Parking Zone E), and St John’s Wood High Street (Zone C1). These locations were selected as they reflect the wide range of demands placed on the city’s finite parking space; from an outer zone high street, to locations very close to the West End where the high demand for kerb side space is residential, commercial and recreational. 6.5. Sensors were installed at all bays in the five streets, including pay by phone, resident, disabled, loading, and diplomat. The quantities of sensors for each bay type are listed below: Bay type Pay by Phone Resident Disabled Diplomat Loading Doctor Taxi Car club Spaces 104 25 7 3 2 1 1 1 144 Page 4 of 17 6.6. The strategic indicators by which Westminster measured the successes of the pilot were: A successful implementation of sensor technology and broadcast of real-time data to motorists. To measure changes in occupancy and compliance, and any reduction in payment avoidance. To build up a picture of motorist behaviour and detailed trend analysis to better understand how the on-street parking assets are being utilised. 7. Proof of Concept - Findings 7.1. The proof of concept trial was a success. As well as successfully implementing the technology and Smartphone applications on time and to budget, the following observations were made: Payment avoidance decreased by 2.3% on average across all locations. A real increase in paid occupancy income of 2.56%. In two adjoining streets, Savile Row and Sackville Street, a shift in utilisation at the paid for bays was evidenced 7.2. All sensors and zone controllers were installed to schedule over a two week period in August, with the minimum of disruption to parking and the highway. The technology used in the solution successfully captured and managed the real time parking occupancy. 7.3. The Smartphone ‘Park Right’ applications were made publicly available from 17th October and proved to be popular with over 5,500 downloads during the trial period (more than 17,500 to date) and an average of 385 location searches a day since October. 7.4. A screenshot of the application showing Savile Row and Sackville Street is included below. The icons represent the various bay types and use red/amber/green signalling to indicate availability. Page 5 of 17 7.5. The apps received mainly positive customer reviews, and an extensive and positive media campaign (on radio, TV news, and press and industry publications), helped demonstrate the technology and promote the benefits of the app to customers. 7.6. As was expected, data from the sensors showed high occupancy levels at all locations (often in excess of 80% during peak periods) and predominantly shortstays and high turnover of vehicles. The overall increase in purchased time of 2.56% during the period can be attributed to the availability of real-time data positively affecting motorist behaviour. With the data to hand, motorists spend less time searching for available spaces, resulting in an increase in overall parked time. 7.7. Giving customers instant access to a wider picture of parking availability can also lead to self-regulation of imbalances in occupancy, along the principles of the Marshaling model adopted in Leicester Square. This was best evidenced in the shift in occupancy from Savile Row to the adjoining and relatively under-occupied Sackville Street. Page 6 of 17 7.8. The graph below details this occupancy shift and shows the average weekly utilisation of the paid for bays in both streets. At the start of the trial in week 1, utilisation of bays in Sackville Street was 48%, compared to 81% in Savile Row. By week 11 this had shifted to 51% and 76%. Average Weekly Paid for Utilisation 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 45.00% 40.00% Sackville Street Savile Row Linear (Sackville Street ) Linear (Savile Row ) 7.9. Enabling motorists with live availability of parking spaces encourages compliance and has resulted in a reduction of payment avoidance; between the start and end of the proof of concept the gap between the parked time and purchased time (the total time vehicles were parked recorded by sensors, versus the total time purchased recorded by PayByPhone) reduced by 2.3%. Whereas there remain legitimate reasons why motorists may not pay, e.g. loading and unloading, the physical appearance of the sensors may also have positively contributed as a deterrent to motorists avoiding payment. 7.10. The graph below shows how the gap between parked and paid for time has reduced. At the start of the trial (Period 1) the variance between paid time and actual time was 10.31%, this reduced to 8% by the end of the trial (Period 2). Page 7 of 17 Period 2 Period 1 2 1 7.11. As well as assisting the motorist, it is envisaged that data from sensors will enable a step change in the understanding and analysis of motorists’ behaviour. Trends can be analysed over time to accurately measure parking pressures, attain detailed comparative trend analysis and draw robust and meaningful conclusions; conventional vehicle count surveys only provide a ‘snap-shot’ in time. This information can then be used to inform the strategy for how the kerbside and parking provision is configured and managed in the future. 8. Integration with Traffic Marshalling 8.1. There are clear traffic management benefits to be gained by integrating real-time parking data with the new Marshalling concept. 8.2. The innovative use of Marshals is part of a new approach to improve parking compliance and help to manage the flow of traffic in areas of high demand. Marshals’ primary objective is to assist motorists to park compliantly. Marshals make use of historic occupancy trends to re-direct drivers from areas of prohibited parking and loading to where there is traditionally spare capacity. A key outcome of their use in Leicester Square (where the concept was first trialled) was an increase in casual parking utilisation of c.7% in the surrounding area. The success of Marshalling is fundamental to the 2014 parking strategy; the approach has recently been extended to the HOLBA (Heart of London Business Alliance) district, and will eventually be deployed city-wide. 8.3. It follows that giving Marshals access to real-time parking availability will enhance their ability to deliver the positive outcomes and improve the customer experience of parking. If a driver is unaware of the smartphone application or doesn’t have the technology to use it then this information can be provided Page 8 of 17 directly by Marshals from the kerb-side. With real-time data to hand, Marshals will be able to assist and re-direct motorists looking for parking in potentially prohibited areas into nearby available parking space. 8.4. As a result, drivers will spend less time searching for space (improving traffic flow), be less inclined to park non-compliantly (hence reducing the number of penalties they receive), and fewer on-street resources will be needed to maintain compliance. 9. Soft Market Testing 9.1. Following the placing of a Prior Information Notice, used to inform potential bidders about forthcoming contracts, in November 2012, a soft market test was carried out to gain insight into the sector, to better understand the potential supplier base, and to test the market’s response to our proposed solutions and gain feedback on our current approach. Although this category of service is new to local authorities and on-street parking enforcement, the technology has been successfully deployed in off-street locations for a number of years. 9.2. A high-level specification was provided, and from the 14 responses received, all respondents believed that the high level specification was deliverable. 9.3. Other findings to note: 10. The providers’ technology is either sunk into the highway or surface mounted, some are flush with the highway or with a raised profile – depending upon the installation method this affects the installation time. All solutions require technology (Data collector) to be implemented on-street to relay data from the sensor to the back office database. Data collectors which can either be solar or mains/battery powered. Installation time for 10,000 sensors ranges from 10 weeks to 18 months. The average time is between 4-6 months All suppliers agreed that a contract term of 3+2 would be acceptable. One responder stated that typically contracts for this technology are between 3-5 years. Procurement strategy 10.1. The proposed strategy is to appoint a single operator through an open procurement process, which will provide on-going maintenance and support. 10.2. The contract, which will be directly managed by Parking will deliver the following; Page 9 of 17 On-street technologies to detect the real time presence of a vehicle and provide on-going maintenance and support for the duration of the contract. A requirement to work with existing WCC contractors to install the technology and to facilitate on-going support and maintenance. Provide a back office solution that collates and visualises data using mapping, and is capable of producing occupancy and movement reports for analysis. Provide a free of charge Smartphone application for real time on-street parking availability. Provide a solution to allow Civil Enforcement Officers/Marshals to view real time parking availability at on-street locations from their hand held devices. 10.3. Evaluation will be weighted 50% on price, and 50% on technical merit (including hardware and software functionality, maintenance and support, smarphone solution, and future technology). The weighting reflects the importance of a sound technical solution as vital to delivering our project objectives. 10.4. The contract duration is proposed to be 3 years with the option to extend for a period of up to 2 years. 10.5 A separate procurement activity for technology and on-street resource, the 2014 Parking Re-let Strategy, is also underway. The new operating model behind that strategy, and in particular how Marshals are deployed and making it easier for the customer to find available parking, is dependent on the bay sensor technology integrating with the kerbside management and customer solution. Delivering the bay sensor technology solution in advance of that procurement activity will ensure service readiness. 11. Implementation 11.1. It is recommended that the sensor technology and access to real-time data is rolled out across the city at paid for and disabled parking bays in two phases. 11.2. Phase 1 will incorporate the areas where parking pressure and congestion are heaviest - the West end areas of G Zone, E Zone and F3/6 Zones. To implement sensors across the West End would require the implementation of 2,971 sensors. Although only representing a third of the total 10,000 bays city-wide, the West End Zones account for a high proportion of activity at 50% of overall transactions. 11.3. The contract deliverables will be formally reviewed post implementation, during March 2014. Providing that the West End implementation delivers a set of key Page 10 of 17 critical success factors (see paragraph 11.4 below), then phase 2, which includes deployment to the remainder of the city, can then be called on. 11.4. The success of Phase 1 will be evaluated against the following criteria; Technology complying with defined KPIs for availability, Speed of data transfer, Fault level and rectification service levels being met. Occupancy levels Payment avoidance metrics being met. 11.5. A customer survey will be undertaken to further understand behavioural changes and gain user feedback on the applications, and there is also potential to engage with internal audit to assess the technical delivery. 11.6.Activity Date Issue OJEU notice and ITT (open) May-13 Contract award and Implementation plan Oct / Nov 2013 Phase 1 implementation Nov 2013 to Jan 2014 Phase 1 Review March 2014 Phase 2 implementation August to Nov 2014 11.7. Implementation timescales will be dependent on the technical solution, but it has been advised that to deploy bay sensor technology to 10,000 bays will take between 4 and 6 months (on average) to implement and assuming an award date of this contract in November 2013, a lead time of 1-3 months to carry out Phase 1 has been estimated. 11.8. Parking will work closely with key internal stakeholders throughout the process, to gain necessary approvals and to minimise the impact on street furniture and the kerb-side. 11.9. The City Council’s highways maintenance contractors will implement the technology. The Council’s service provider has a proven experience of implementation from the trial and will reduce risk of damage to the highway and assets, and require less Parking management to deliver. Page 11 of 17 12. Financial Implications 12.1 Sources of funding A reserve of £1.5 million was carried over from the 2011/12 financial year in order to fund the capital expenditure for this project, called “Kerbside Management sensor reserve”. This is proposed to be used for the procurement and installation of Phase 1. Any recommendation for future phases will be based on review points built in to the programme; the first is scheduled in March 2014. A Phase 2 roll out could be extended to resident or other non-income generating bays, as well as paid for bays across the remainder of the city. 12.2 Potential Returns & Assumptions Year Number Sensors deployed West End 1 2 3 4 5 -£96,700 -£96,700 -£96,700 -£96,700 2971 Costs Purchase of equipment Installation of equipment Ongoing Maintenance costs -£496,770 -£157,598 Total Project Costs -£654,368 -£96,700 -£96,700 -£96,700 -£96,700 Income variations Additional casual parking income Total occupancy & bay sensor Var £112,498 £547,997 £726,552 £816,722 £816,722 0.65% 2.50% 1.00% 0.50% 0.00% £17,419,946 £112,498 £17,855,445 £547,997 £18,033,999 £726,552 Total costs/income -£541,870 £451,297 £629,851 £720,021 £720,021 Cumulative position -£541,870 -£90,573 £539,278 £1,259,299 £1,979,320 Total income Total Income Variations NPV £18,124,169 £18,124,169 £816,722 £816,722 £1,567,092 Table 1 above shows forecast position based on implementation of Stage 1 Only *Net Present Value (NPV) represents projects return taking into consideration time value of money. Future cashflows are discounted at a fair rate to consider WCC cost of capital. Phase 1 will provide a positive return on investment over the contract period – breaking even early in year 3. This is based on the increase in occupancy and reduction in payment avoidance. Capital Expenditure for equipment purchase; Phase 1 & 2 = £2,108,975 (Phase 1 only = £654,368) Operating Expenditure over 5 year contract; Phase 1 & 2 = £979,425 (Phase 1 only = £386,801) Net Present Value(NPV) Phase 1&2 = £2.23m (Phase 1 - £1.567m) Page 12 of 17 Income movements have been calculated based on evidence from the proof of concept. The model considers a 3% increase in income due to reduced payment avoidance with a further 1.5% increase in relation to increased occupancy due to improvements in customer information and advanced awareness of availability. Costs are based on indicative prices provided by Smart Parking, the company used for the Proof of Concept, tender costs could vary depending on supplier. 13. Legal Implications 13.1 Section 122 of the Road Traffic Regulation Act 1984 sets out the matters to which a local authority must have regard when exercising its functions under the Act, including securing the provision of suitable and adequate parking facilities on and off the highway. Case law indicates that the generation of income is not a relevant matter for the purpose of Section 122, even though the exercise of the Council’s powers may incidentally lead to increased income. 13.2. Trip hazards caused by ground sensors could potentially lead to claims against the Council. The specification for the sensors will set out the minimum acceptable profile above the road surface, and will stipulate that road mounted sensors should be as flush as possible with the carriageway. Sensors will sit outside of the footway, within 1 metre of the kerb. In this way it is hoped that claims will be kept to a minimum. 13.2. No TMO implications. 14. Staffing Implications 14.1. It is not anticipated that there will be any staffing implications directly affecting the Council arising from this report, however in the longer term it is expected that efficiencies in deployment generated by the sensor technology will result in a reduction in the on-street workforce. 15. Consultation 15.1. Key stakeholders in Street Lighting, Highways and Planning have been consulted with throughout. For the trial, planning approval for equipment was gained through internal governance, and Street Lighting and Highways continue to be closely involved in shaping the technical solution and will evaluate the sections of the tenders appropriate to their unit. 15.2. A workshop presentation was given at a recent St John’s Wood Area Forum (November 2012). Those attending were all local residents of St John’s Wood. The feedback from the workshop was really positive. One resident said that it Page 13 of 17 was great to see Westminster deliver an innovative parking solution and that some of the negative media attention was unjust. Further workshops will be held at all affected forums before roll-out in each Zone. 15.3. Statutory consultation is not required as no amendments will be necessary to traffic management orders If you have any queries about this Report or wish to inspect any of the Background Papers please contact: Simon Morgan, Performance Improvement Officer, smorgan@westminster.gov.uk BACKGROUND PAPERS: Bay Sensor Proof of Concept – End of 3 month review NB: For individual Cabinet Member reports only For completion by the Cabinet Member for Business Declaration of Interest I have <no interest to declare / to declare an interest> in respect of this report Signed: Date: NAME: State nature of interest if any …………………………………………………………..…… ………………………………………………………………………………………………….. (N.B: If you have an interest you should seek advice as to whether it is appropriate to make a decision in relation to this matter) For the reasons set out above, I agree the recommendation(s) in the report entitled Bay Sensor Procurement Strategy and reject any alternative options which are referred to but not recommended. Signed ……………………………………………… Cabinet Member for Business Date ………………………………………………… Page 14 of 17 If you have any additional comment which you would want actioned in connection with your decision you should discuss this with the report author and then set out your comment below before the report and this pro-forma is returned to the Secretariat for processing. Additional comment: …………………………………….…………………………………… ……………………………………………………………………..…………………………… …………………………………………………………………….……………………………. If you do not wish to approve the recommendations, or wish to make an alternative decision, it is important that you consult the report author, the Head of Legal and Democratic Services, Chief Operating Officer and, if there are resources implications, the Director of Human Resources (or their representatives) so that (1) you can be made aware of any further relevant considerations that you should take into account before making the decision and (2) your reasons for the decision can be properly identified and recorded, as required by law. Note to Cabinet Member: Your decision will now be published and copied to the Members of the relevant Policy & Scrutiny Committee. If the decision falls within the criteria for call-in, it will not be implemented until five working days have elapsed from publication to allow the Policy and Scrutiny Committee to decide whether it wishes to call the matter in. Page 15 of 17 Appendix A Other Implications 1. Resources Implications - None 2. Business Plan Implications The proposals in this report are in accordance with the Parking Service business plan for 2014. 3. Risk Management Implications - None 4. Health and Wellbeing Impact Assessment including Health and Safety Implications 4.1. A potential risk has been suggested around people driving whilst using their smartphone or tablet. As part of the Communicaitons strategy, a message will go out on the app to suggest drivers stop compliantly at the kerb-side before checking availability. The existing ‘ParkRight’ application utilises existing driver guidance applications (i.e. SatNav) for drivers once a parking bay has been selected. This functionality provides traditional turn by turn directions to the destination. 4.2. The above requirements will be detailed within the Procurement Specification as needing to be deliverable from Day 1 of a smartphone application. As well as operating as a stand-alone application, there is potential for the service to be integrated with satellite navigation systems. 4.3. Similarly, the icon signals can be calibrated so as not to encourage drivers to compete for a small number of available spaces. For example, a red icon could indicate availability of between 0-2 spaces, amber 3-5 and green 5+. 5. Crime and Disorder Implications - None 6. Impact on the Environment 6.1. A risk has been mentioned that the added convenience of the service will encourage drivers into Westminster and subsequently add to congestion. However, it is arguable that the convenience of a real-time solution would not be enough of an economic incentive to result in a modal shift away from public transport. The solution will more likely assist those individuals and companies who already choose to drive in the city. 6.2. The benefits of reduced time to park should result in improvements in air quality (Nitrogen Oxide NOx & Particle Matter PM10) and Noise pollution. Page 16 of 17 6.3. As part of the review of Phase 1, a customer survey will be conducted in partnership with colleagues in City Planning to measure any affects on air quality, travel time analysis, and sustainable travel in order to provide an environmental assessment. 7. Equalities Implications - None 8. Staffing Implications – None 9. Human Rights Implications - None 10. Energy Measure Implications 10.1. A small electrical feed will be required from lamp columns to power Zone Controller boxes. The ground sensors will be battery or solar powered. 11. Communications Implications 11.1. Parking is a sensitive issue for residents, workers, businesses and visitors. An ongoing dialogue with service users and other stakeholders is a vital part of our approach. In addition to transforming the service the City Council provides for users, we are also seeking to influence the attitude of users encouraging them to take responsibility for parking in a compliant manner. 11.2. A proactive media relations and a strategic publicity campaign explaining to customers the benefits of the service will play a vital role in the successful delivery of the model. Our communications plan will be developed to compliment the City Council’s new approach to Kerbside Management so that we can engage with service users and inform them about our plans. 11.3. The successful communication activities undertaken during the trial, which would be re-deployed on a larger scale include: Extensive and high profile media campaign (national press, radio and TV news, industry publications) promoting benefits of the scheme On-street signage. Including explanation of concept, intelligent Quick Response (QR) codes and web-links to the application Texts to existing high-volume Pay by Phone users New pages on the Westminster Website Workshops at area forums 11.4. The smartphone applications and website and associated marketing will be done under a branding agreed between the operator and the City Council. Page 17 of 17