PART 1
(OPEN TO THE PUBLIC)
ITEM NO.
REPORT OF THE DIRECTOR OF DEVELOPMENT SERVICES
TO THE LEAD MEMBER OF DEVELOPMENT SERVICES
ON 4th November 2002
FOR DISCUSSION ON 28th October 2002
TITLE : Decriminalised Parking – Financial Issues.
RECOMMENDATIONS : That approval be granted to:
1. Increase Off Street Car Parking Charges within the City of Salford.
2. Introduce charges to the Monton off street car park.
3. Increase the payment made by the Council to the parking enforcement contractor, Central
Parking System by 90p on every fully paid Penalty Charge Notice (PCN) issued by them, to
facilitate the introduction of Digital Photography.
EXECUTIVE SUMMARY : Decriminalised Parking Enforcement has now been in operation within
the City of Salford since April, 2001. The scheme covers all aspects of parking both on and
offstreet and financial projections indicate that the scheme will not meet the 2002/03 parking
budget by a shortfall of some £200,000. As it is now three years since off street car parking
charges were increased in the City, it is proposed that these charges be increased
throughout the City and that charging be introduced to the off street car park in Monton,
Eccles.
Also, following the introduction of Decriminalisation, it has become apparent that evidence of
parking contraventions observed by Parking Attendants and disputed by motorists can be
difficult to corroborate, especially where there are no independent witnesses. It is now
standard practice in several other Decriminalised Authorities for Parking Attendants to
photograph offending vehicles enabling that photograph to be produced to the motorist at all
stages of dispute, up to and including independent adjudication. It is intended to start this
practice in Salford but as it was not included within the original contract specification, Central
Parking System require payment to undertake the function. It is considered that an extra
payment to them of 90 pence for each paid penalty charge notice would be an appropriate
amount.
BACKGROUND DOCUMENTS : 1. Contract Specification
(Available for public inspection) 2. Report to Lead Member dated 18th November, 1999.
Asa ASSESSMENT OF RISK :
The measures proposed are in response to the requirement for the decriminalised parking
regime to be self financing. The increased parking charges should raise revenue levels and
although increased charges by the enforcement contractor will reduce some revenue
from each PCN paid, this should be offset by improved collection rates.
THE SOURCE OF FUNDING IS :
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Decriminalised Parking Enforcement
LEGAL ADVICE OBTAINED:
Yes
FINANCIAL ADVICE OBTAINED: Yes
CONTACT OFFICER : Mr W L Earnshaw, Group Engineer, Parking Services. Tel 793 2158
WARD(S) TO WHICH REPORT RELATE(S) : All
KEY COUNCIL POLICIES :
Local Transport Plan
DETAILS (Continued)
1. Overview
1.1 Income from car parking in Salford is made up from the following elements:
Pay and Display Car Parks at Salford Precinct, Eccles and Swinton
Penalty Charge Notices issued for on and off street infringements
Contract Parking at Salford Precinct and Eccles
Pay and Display machines, Controlled Parking Zone
Income for providing enforcement on car parks at Morrisons, Eccles and Salford
Shopping City.
1.2 The majority of this income is obtained from the issue of Penalty Charge Notices
resulting from motorists committing parking infringements. Based on current issue rates by
the enforcement contractors, Central Parking System (CPS), it is estimated that some 33500
PCNs will be issued during the current financial year.
1.3 Although it is difficult to estimate the exact amount of income which can be generated
from PCN issue, the following table does give some indication of the total amount of revenue
that may be expected.
Forecasted Salford PCN income based on 33500 issue at 2001/02 recovery
rates
Recovery Rates
Lower Rate (£30)…………………………………… 52%
Higher Rate (£60)…………………………………. 10.3%
After Charge Certificate (£90)……………………… 0.4%
Not Paid…………………………………………….. 37.3%
(15% of total issue cancelled – approx. 10% of total issued to debt registration
12.3% not traced etc.)
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PCNs Paid
Number
Income £s
Lower Rate …………………….. 17420 ……………………….. 522600
Higher Rate …………………….. 3451 ………………………
207060
After Charge Certificate …………..134 …………………………. 12060
Not Paid ………………………….12496
(Cancelled ………………………… 5025)
(To debt registration ……………… 3350 Approx. 10% of total issue)
Potential Income after bailiff action at 30% recovery rate …….. 95475
Total ……………………………………………………………….. 837195
This formula is based on recovery rates experienced in London Boroughs following the
introduction of decriminalisation in the 1990s. It has been adapted to the actual recovery
rates achieved in Salford since the scheme was introduced.
Previous recovery estimates could only be based on those experienced in London, which
vary considerably.
Other Income (based on 2001/02 figures)
Charges to Morrisons for car park enforcement ………………….10800
Charges to Novembre Properties for enforcement ……………….36000
Contract Parking ……………………………………………………. 76580
Pay and Display, CPZ ………………………………………………. 65000
Off street car parks ………………………………………………… 250657
Grand Total ……………………………………………………. £1,276,232.
1.4 The contract parking element includes income from the Eccles multi-storey car park
which is contract only at this time. However, two long term customers have recently notified
the Council that they no longer require the facilities of the car park due to downsizing of the
operation of one and relocation of the other.
1.5 Another organisation has been identified as possibly requiring spaces from February
2003, but the potential annual loss in revenue from the withdrawn custom at this time is in
the region of £30,000 and the above figure reflects this amount.
1.6 The Council’s parking budget for the current year is approximately £1.5 million and as
can be seen from the above information, there could be a shortfall of over £200,000.
-
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1.7 There are a number of long term options available to assist in reducing and overturning
this shortfall such as extending the Controlled Parking Zone (CPZ) and the introduction of
Pay and Display machines in other areas of the City. However, these possible solutions
require much further investigation and assessment.
1.8 In the short term however, there are areas which can be addressed to increase potential
revenue.
2.0 Options
2.1.1 Increase Car Parking Charges.
2.1.2 It is now three years since parking charges were increased in Salford with the
exception of those on-street within the CPZ area.
2.1.3 Current and proposed increases in charges are as follows:
2.1.4 Salford and Swinton Car Parks:
Current charges:
0 – 2 hours:
50p
Over 2 hours: £1.50p
Proposed charges:
0 – 2 hours:
70p
Over 2 hours: £2.00p
2.1.5 Eccles Car Parks:
John William Street, Precinct and Multi-storey Apron.
Current charges
0 -- 3 hours:
50p
3 – 4 hours: £1.00p
4 – 6 hours: £1.50p
Over 6 hours: £5.00p
Proposed Charges:
0 – 3 hours:
70p
3 – 4 hours: £1.50p
4 – 6 hours: £ 2.00p
Over 6 hours: £5.00p (No change)
Irwell Street and St Marys Road:
Current charges:
0 – 3 hours:
50p
Over 3 hours: £1.50p
Proposed charges:
0 – 3 hours:
70p
Over 3 hours: £2.00p
Based on the income from these car parks during a typical month (ie April, 2002) these
proposed increases should attract extra revenue of some £73,700 per year, taking into
account a possible 20% reduction in demand due to the effect of increased charging.
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2.1.6 Annual Contract Parking:
Current charges ex VAT:
Proposed charges ex VAT:
Eccles Multi-Storey – Covered:
£300.00
Uncovered: £225.00
£336 (£395 inc. VAT)
£251 (£295 inc. VAT)
Surface level car parks - £200.00
£230 (£270.25 inc VAT)
The proposed increases for contract parking based on the current number of contracts held
would produce extra revenue of £11646.
2.2 Introduce parking charges to Monton Village Car Park.
2.2.1 This issue has been explored previously and was met with strong resistance by
residents and traders in Monton.
2.2.2 This car park, situated in Partington Street and centrally located for the Monton
shopping area, has one hundred and eight spaces and surveys indicate regular use
throughout the day. There are daytime restrictions on the several side streets in Monton with
exemptions for residents and the potential for revenue is considerable.
2.2.3 It is proposed that charging be introduced onto this car park between 0800 and 1800
hours, Monday to Saturday as follows:
0 – 3 hours:
50p
Over 3 hours: £1.00p
Contract:
£ 270.25 per year. (£230 ex VAT)
2.2.4 Although there will be set-up costs to introduce charging on the car park, it would be
intended to keep this at a minimum.
2.2.5 The main expenditure would be in relation to the purchase and installation of a Pay
and Display machine but this could be minimised by re-locating an existing machine from the
CPZ which is currently under-used.
2.2.6 Whilst it is difficult to accurately estimate the level of revenue possible from this car
park, if the minimum charge was applied over 317 chargeable days based on seventy five
cars using the car park each day, it would be possible to raise almost £11900 revenue. This
does not take into account potential contract parking, longer stay or vehicle turn over which
would increase that figure.
2.3 Increase On-street parking charges in the Controlled Parking Zone.
2.3.1 As Pay and Display machines and the current charging regime was only introduced
on-street in May, 2002, it is thought that charges at this stage should not be altered until
parking patterns have been established. Revenue from the CPZ when charging was initially
introduced was disappointing but usage has increased and current levels indicate an
income of £65000 achievable this financial year.
2.3.2 Current charges are £1.00 per hour with a maximum period of two hours; return
prohibited for one hour.
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2.3.3 Certain areas within the CPZ are still under-used and there has been a relaxation of
the two hour maximum permitted parking in these areas to encourage more use.
2.3.4 The City of Manchester which borders onto the area has recently increased charges
and this may have a beneficial effect on Salford with motorists taking advantage of the
cheaper rates.
2.4 Introduction of Digital Photography to aid Enforcement
2.4.1 Since Decriminalised Parking was introduced in the City of Salford in April, 2002, it
has become apparent that evidence of parking infringements obtained by Parking
Attendants, which consists of the Penalty Charge Notice (PCN) produced by hand held
computer and pocket book notes based on their observations, is not always sufficient to
prove that infringement.
2.4.2 The Council has a duty to fully consider representations from motorists and all
available evidence must be taken into account. Experience has shown that there are many
instances when it is difficult to sufficiently establish the facts to the extent where there is little
doubt that the infringement occurred.
2.4.3 One of the many reasons given by motorists as to why they have not responded to
PCNs is that they did not receive the Notice. Obviously the only evidence of PCN issue at
that stage is that of the Parking Attendant and any decision by the Council regarding a
challenge and also by the National Parking Adjudication Service if considering an appeal,
can only be based on that evidence.
2.4.4 There are many other circumstances where PCNs are disputed, for example, being
parked out of bay, parking on yellow lines, not displaying disabled permits, not displaying
pay and display tickets; all of which depend on the word of the Parking Attendant against the
motorist.
2.4.5 There have been times when the integrity of the Parking Attendant is called into
question and again, it can be difficult to establish the facts especially where there is no
independent evidence.
2.4.6 Conversely, it is has been suspected that on at least one occasion, a motorist has
attended an adjudication hearing accompanied by a witness who has corroborated
inaccurate evidence and indeed whose presence at the time of the incident was in fact
doubted.
2.4.7 Several other Local Authorities who operate Decriminalised Parking Enforcement,
issue their Parking Attendants with cameras so that offending vehicles can be photographed
in contravention of regulations. The absence of a ticket or permit in the vehicle can also be
recorded as well as evidence supporting the issue of a PCN.
2.4.8 This has been found to assist greatly in dealing with representations, maximising
revenue collection and in reducing the number of cases progressing to adjudication. Where
cases do proceed to adjudication, a photograph can also help in deciding the case and
reducing the number of appeals being adjudged against the Council.
2.4.9 It is proposed to introduce such a system in Salford issuing the Parking Attendants
with digital cameras.
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2.4.10 It is further proposed that the equipment will be provided and the system mainly
administered by the Council Parking Section but there are certain functions such as training,
maintenance and storage of equipment (battery charging etc), collation of data; which must
be carried out by the parking contractor.
2.4.11 As this was not a contract specification requirement, the contractor of course requires
remuneration for this extra function and after much discussion, it has been agreed that an
appropriate way forward would be to pay CPS the sum of 90 pence for each issued PCN,
paid in full by the motorist. This would be in addition to the existing payment of £1.00 for
each fully paid PCN and based on current estimated issue rates, would involve an extra
annual payment of some £21000 to CPS.
2.4.12 The extra revenue raised through fewer disputed PCNs and costs saved in
investigating protracted challenges together with the reduced number of cases expected to
progress to adjudication or debt registration, should quite easily fund this increased payment
which would be of benefit to both the Council and contractor.
2.4.13 As this extra payment would be a departure from the fixed charges agreed under the
provisions of the contract, approval is sought to progress this issue in addition to the options
outlined for increased parking charges.
3.0 Other Measures
3.1
Review of Decriminalised Parking Enforcement
3.1.1 As it is now some eighteen months since the regime was introduced in Salford,
Argonaut Services, a company who undertook initial training of Council staff in relation to
Decriminalisation, have recently reviewed all aspects of the operation as part of that ongoing
training process. The review was requested by the Parking Services Section in order that the
operation could be independently assessed in respect of both the Council and contractor to
ensure that procedures and best practice were being followed. Although their findings are
yet to be presented, if opportunities to reduce costs or increase revenue are identified, these
will be considered and reported upon.
3.2
Deployment of Parking Attendants.
3.2.1 Deployment and working methods of Parking Attendants have recently been reviewed
and the contractors have been asked to reduce the numbers of Attendants deployed to a
maximum of twenty each day during the week, fifteen on Saturdays and four on Sundays.
3.2.2 This is a departure from previous deployment figures which stood at thirty Parking
Attendants deployed per day during the working week.
3.2.3 Based on maximum deployment being met each day, the reduction would represent a
saving in charges to the City of Salford of £170,000 per year, however as that maximum was
not always achieved, a more realistic figure would be in the region £100,000.
3.2.4 Parking Attendants have been patrolling in pairs since May of this year as a health and
safety measure following an unprecedented number of assaults on them.
3.2.5 This does not seem to be a measure taken in other Authority areas and apart from
districts in Salford where Attendants could be perceived as being vulnerable, solo patrolling
has been reintroduced.
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3.2.6 It is of concern that by reducing the numbers of deployed Attendants, PCN issue rates
may fall, in turn reducing revenue. It is however, considered that Attendants were not
operating at their full potential especially when working in pairs. This situation has been
raised with the contractor and will be monitored.
3.3 Introduction of Charges on other car parks.
3.3.1 There is scope for charging to be introduced on other car parks in Salford and this
possibility is being explored.
3.3.2 One such car park for example, is situated at Worsley Court House which provides
parking for visitors to that area but is also used, because of its close proximity to the
Motorway network, by car sharing commuters.
3.3.3 Whilst not wishing to discourage such use, this car park has a good quality surface and
is well maintained which of course incurs expenditure. This could be offset by imposing
charging, not necessarily in line with town centre locations but sufficient to cover
maintenance costs with the possibility of also raising revenue.
3.4
Liquidated Damages
3.4.1 Central Parking System are contracted to undertake parking enforcement on behalf of
the City of Salford in accordance with specified standards. If they do not satisfactorily meet
these or comply with them, defaults points are awarded against them on a monthly basis.
3.4.2 Each point awarded has a monetary value of £1.00 and they are awarded in various
amounts according to the contravention, again monthly.
3.4.3 Liquidated Damages have been enforced since the start of this year resulting in a total
amount of £17060 being registered as sundry debts against CPS up to August, 2002.
(£11600 since April 2002)
3.4.4 It would not be unreasonable to point out that relationships between the City of Salford
and CPS have at times been strained due to the Council’s perception of poor service level
provision and this has been raised with them. On their part, CPS have levelled blame at the
Council suggesting that imposition of Liquidated Damages is not the best way to progress
matters. At the most recent meeting with CPS management, it was agreed that a
comprehensive report of suggested measures to improve matters would be forwarded to the
Council. However the only proposals received related to Digital Imaging and maintenance of
road marking lines and waiting restriction signs, both of which were financially unacceptable.
4 Summary
4.1 If the aforementioned measures in relation to increased parking charges were taken, the
potential increase in revenue could be summarised as follows:
Surface level car parking
Contract parking (multi-storey and surface)
Monton car park
Potential savings to be made by reducing Parking Attendant deployment
£
73700
11646
11900
100,000
Total
197246
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4.2 There is also the potential for an increase in the recovery of outstanding Penalty Charge
Notices through the use of digital imaging. This has been found to reduce the number of
challenges and improve collection rates by as much as 10% where it has been introduced in
other Authority areas. Although at current payment levels, there will be a cost to the Council
of some £21000 for CPS to undertake this function, if a similar recovery rate was applied to
the estimated 12500 PCNs not paid in Salford, it could result in the recovery of an extra
£34000.
4.3 Deducting the extra payment made to CPS, it would be possible to raise a surplus of
£13000 in addition to facilitating a more efficient system of enforcement.
4.4 Taking these factors into account, potential extra revenue projected over a twelve month
period could be further summarised as follows:
Potential extra revenue as above
Potential extra revenue as a result of digital imaging
Total
£
197246
13000
210246
(offset against potential loss of 238000)
4.5 These figures are based on a full year’s operation taking into account implementation of
the recommendations. However, the position in relation to the current financial year still
indicates a potential loss as previously indicated if the status quo is maintained but the
reduced deployment of Parking Attendants, which will start to take effect from the 4th
November, 2002 could reduce staffing charges by as much as £50000.
4.6 It is requested that consideration be given to all the proposals outlined.
Malcolm Sykes
Director of Development Services
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