ITEM NO.
REPORT OF THE MANAGING DIRECTOR OF URBAN VISION PARTNERSHIP LIMITED
TO THE LEAD MEMBER, PLANNING
ON MONDAY 3rd OCTOBER, 2005.
TITLE :
DECRIMINALISED PARKING ENFORCEMENT - UPDATE
RECOMMENDATIONS :
That this report be noted
EXECUTIVE SUMMARY : Decriminalised Parking Enforcement has now been in operation in
Salford for a little over four years. Despite problems at its inception, the scheme is now
running relatively smoothly with little traffic congestion caused by inappropriately parked
vehicles, relatively few complaints and low media attention. Such schemes should be self
financing from Penalty Charge Notice income and overall, this is more or less the case.
Whilst financial considerations are of major importance in relation to Decriminalised Parking
Enforcement, the benefits gained through increased levels of enforcement result in improved
Traffic Management and Road Safety assisting with the Council’s aim to reduce collisions.
BACKGROUND DOCUMENTS : NPAS Annual reports.
(Available for public inspection) DPE Contract Specification.
ASSESSMENT OF RISK: Not applicable
SOURCE OF FUNDING: Decriminalised Parking Enforcement.
COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES
(or his representative):
1. LEGAL IMPLICATIONS
Provided by : Pauline Lewis
2. FINANCIAL IMPLICATIONS
Provided by : Nigel Dickens
PROPERTY (if applicable): N/A
HUMAN RESOURCES (if applicable): N/A
CLIENT CONSULTED: YES
CONTACT OFFICER :
Mr William L Earnshaw, Group Engineer, Parking Services.
WARD(S) TO WHICH REPORT RELATE(S): All
KEY COUNCIL POLICIES: Local Transport Plan
DETAILS (Continued Overleaf)
1.
Background.
1.1
Decriminalised Parking Enforcement (DPE) was introduced in Salford under the
provisions of the Road Traffic Act, 1991 in April, 2001 placing the responsibility for
enforcement of most Traffic Regulation Orders (TROs) relating to parking both on and
off-street upon the Council.
1.2
A decision was made to appoint a contractor to undertake operational enforcement by
the deployment of Parking Attendants and following a successful tender submission,
Central Parking System (UK) Ltd, (CPS) part of an international parking control
company, were contracted to provide the service for an initial term of five years.
1.3
The remit for CPS was to enforce regulations on all streets in the city with the
exception of a small number of roads for which the Police retained responsibility and all
Council owned Pay and Display car parks.
1.4
The essential element of DPE is to remove the administration of illegal parking from
the Criminal Justice system and to deal with those matters under Civil Law. Offences
become contraventions and fixed penalty notices, which impose a fine and are
ultimately processed through the Criminal Courts, are replaced by Penalty Charge
Notices (PCNs) which can be appealed through an independent tribunal, the National
Parking Adjudication Service, (NPAS).
1.5
The Council also entered into arrangements to manage car parks owned by Novembre
Properties (Salford Shopping City) and Wm Morrison Supermarkets PLC in Eccles, all
of which were made subject to TROs and as such enforceable under the 1991 Act. The
financial arrangements between the Council and these clients consisted of a
management fee charged to the car park owners and the retention by the Council of
any income resulting from the issue of PCNs.
1.6
Penalty levels are determined by Central Government and at the moment, except for
PCNs issued in the London area, are £60.00 for each contravention. This amount must
be reduced to £30.00 if paid within fourteen days of the date of issue of a PCN but if it
remains unpaid, it rises to £90.00.
1.7
Warrants may be issued by the Traffic Enforcement Centre (TEC) based at the County
Court in Northampton empowering bailiffs to recover outstanding penalties on behalf of
the Council.
1.8
Two bailiff companies, Drakes and Jacobs, are currently contracted to the Council to
provide this service, all costs being recoverable from the debtor.
1.9
There is a fee of five pounds to register debts with the TEC which again is recoverable
from the debtor raising the maximum amount owed to the Council in respect of any
PCN to £95.00.
2.
Contractor Performance – Central Parking System
2.1
As with any new venture, difficulties were encountered at the commencement of the
contract and it would be fair to say that the first twelve months of the scheme were
beset with problems. Most of these related to procedures not being correctly followed
and high staff turnover which resulted in contract default penalties being awarded
against the company.
2.2
The fact that four different Contract Managers had been employed on the scheme in
the first two years did not help matters but the fifth who was in post for about twelve
months did achieve an improvement in all areas including Parking Attendant
recruitment. As a result, performance improved and default penalties reduced.
2.3
The current Contract Manager has been in post for a little over twelve months and has
been employed on the contract since its inception gaining promotion through the
company. This has brought a degree of stability to the contract and is reflected in an
improvement of staff retention which is notoriously poor throughout the industry as a
whole for a variety of reasons.
2.4
Whilst CPS have previously been subject to local media interest and a recent national
TV programme utilising an undercover reporter who gained employment with the
company, when considered in context with the nature and volume of their business,
publicity has not been excessively adverse.
2.5
This is especially so when compared with neighbouring Authorities who have been
subject to criticism on many occasions. However, when most of these reports are
analysed, the facts are often inaccurate and sometimes sensationalised presumably to
attract greater readership rather than portray the true picture.
2.6
Although problems still exist within the contract, some of which are ancillary to the
main business, these would appear to be ever changing and are dealt with
appropriately.
2.7
To summarise, although the performance of CPS was initially disappointing, it has
steadily improved over the contract period to a satisfactory level which has in the main
been sustained over the last two years.
3.
Contractor Performance – Drakes and Jacobs, Bailiffs.
3.1
Bailiffs are an essential part of any DPE scheme for the purposes of recovering
penalties from motorists who simply will not or who do not wish to pay.
3.2
Three bailiff companies were initially appointed on a temporary basis for a twelve
month period.
3.3
This proved to be a useful exercise and gave some insight into the problems
associated with debt recovery.
3.4
Following this trial period, tenders were invited from interested companies which
resulted in Drakes and Jacobs being appointed for a three year term from January
2004.
3.5
Both companies are achieving similar recovery rates which although are not as high at
14% to 16% as could be anticipated (20% or above) levels of customer complaint are
negligible in what after all is an extremely difficult business.
3.6
Bailiff services are not rechargeable to the Council as all costs, which can be
considerable, are recovered from the debtor.
3.7
Both companies are extremely professional in their approach and operate within strict
legal and contractual guidelines with reference in particular to social issues and
personal circumstances of debtors.
3.8
To summarise, performance in general is satisfactory although recovery levels could
be improved. This has been pointed out to both companies who have offered
assurances that this will be addressed.
4.
Financial Issues.
4.1
Revenue received from parking enforcement is used to finance the scheme with any
surplus being be used for traffic management projects.
4.2
Preliminary estimates of the numbers of PCNs likely to be issued in Salford were
considered to be in the region of 35000 per year and potential enforcement contractors
were asked to tender on that basis.
4.3
In addition to other costs, CPS who process notices and payments, are paid a fee for
each notice issued and a further fee for each notice fully paid to cover administration
costs.
4.4
In compliance with Council policy, warning notices as opposed to PCNs are issued to
the holders of disabled parking permits who fail to display their badges correctly. This
is done on a maximum of two occasions but any third or subsequent contravention is
dealt with by way of a PCN.
4.5
The issue of these notices remain constant and account for approximately 7% of all
contraventions dealt with. CPS are paid the same administration fee in respect of a
warning notice as for a PCN.
4.6
Most are issued for a first contravention which indicates that the level of misuse is quite
high.
4.7
Whilst the estimated issue levels have never been fully realised, actual issues are not
far behind and the last financial year saw the production of 33000 PCNs and warning
notices.
4.8
Due to many explanations ranging from pleas of mitigation, compassionate grounds or
abandoned stolen vehicles for example, to any number of valid reasons being provided
for parking, some 30% of PCNs are cancelled at various stages. (This figure also
includes PCNs being written off due to the inability to trace vehicle owners which
accounts for approximately 12% of the notices issued.) However, it must be stated that
out of the number cancelled, few are due to errors made by Parking Attendants at the
point of issue, most cancellation reasons only becoming apparent at a later time.
Current payment levels would indicate an income rate of £35.00 for each PCN paid or
£25 each for all PCNs issued.
4.9
The warning notices issued in respect of disabled badge holders could represent a
total payment figure of approximately £70000 per year had these been dealt with by
way of PCN.
4.10 Since the implementation of the scheme, 14800 warrants have been issued but only
2600 have been executed by bailiffs representing an overall recovery rate at that stage
of 17.6%. Nevertheless, this translates to cash payments to the Council of £248000
(incurring no extra costs) which would not have been made without debt recovery
action.
4.11 The major obstacle with debt recovery and PCN payment avoidance is still the
inaccuracy of vehicle owner records but changes introduced by the DVLA in relation to
registration and licensing of vehicles should eventually have some positive effect in the
future. Unfortunately, the individual who persists in avoidance of all aspects of identity
recording, including vehicle ownership, will continue to evade responsibility.
4.12 In addition to contractual payments to CPS being funded by the scheme, annual fees
are paid to NPAS to fund the tribunal system at a rate of 60p per PCN issued. (£19200
based on issue rate of 32000).
4.13 Morrisons’ Superstore have now terminated their contract with the Council to manage
the Eccles Car Park. This will result in a loss of approximately £70000 per year
revenue comprising of £10,800 management fees and the remainder, PCN income.
4.14 Income levels were adverse for the last financial year in comparison to that forecasted
and as a result, the Budget Scrutiny Committee have requested that income forecasts
for the current year be adjusted to reflect a more accurate picture of what is
achievable. It should be noted that no additional budget was given for this as it was
expected that this would be accommodated within the approved budget for
Development Services. Whilst financial considerations are of major importance in
relation to Decriminalised Parking Enforcement, the benefits gained through increased
levels of enforcement result in improved Traffic Management and Road Safety
assisting with the Council’s aim to reduce collisions.
4.15 Total income from on and off-street parking charges including that from PCN issues for
the last financial year may be summarised as follows:
£
 Pay and Display machines – On street ………………………..…115,252
 Pay and Display machines – Off street …………………………..215,430
 Contract parking (surface level and multi-storey)……………….. 97,888
 Management fees (Novembre properties, Morrisons) ………… 47,120
 Penalty Charge Notices……………………………………………. 856,545
 Total…………………………………………………………………1,332,235
Budgeted Income………………………………………………….1,500,000
Expenditure in respect of contractor payments………………………….. 843,792
Less 3% retention (under provision of contract)……………………………25,313
Total amount paid…………………………………………………………….818,479
Tender sum……………………………………………………………………875,125
4.16 Current PCN issue levels would indicate a slightly higher level of income for 2005/06
despite the Morrisons contract termination although this could fluctuate over the winter
months dependant upon staff deployment, traditionally affected by recruitment and
retention problems at that time of year.
4.17 Budgeted income for the year 2005/06 is summarised as follows:



£
Off street Pay and Display & Penalty Charge Notices………….383,500
On street Pay and Display & Penalty Charge Notices………..1,037,000
Total……………………………………………………………….. 1,420,500

Actual Income both on and off street (month 5)……………….
640,556
Projected contractor payments 2005/06…………………………….. 912,000
4.18 Car parking income should increase during this year particularly in respect of the
Eccles multi-storey facility which will be fully occupied following the re-location of
Council and Urban Vision staff. Increased use of the Church Street car park in Swinton
has also become evident following the introduction of charges on the privately owned
town centre development.
5
National Parking Adjudication Service. (NPAS)
5.1
NPAS is an independent tribunal service which provides an avenue of appeal to the
motorist whose previous representations have been considered and rejected by the
Council.
5.2
All Adjudicators are legally qualified as solicitors or barristers and are appointed by the
Lord Chancellor.
5.3
Adjudication case files are prepared by Council Officers and hearings can be
considered in the absence of the appellant, termed a postal hearing, or in person, the
choice usually being the appellants.
5.4
Some 800 cases in relation to PCNs issued in Salford have been referred to NPAS
since the scheme was introduced resulting from some 120000 PCNs issued.
5.5
The number appealed at this stage was quite high in the early days of the scheme but
as officers have become experienced in dealing with representations from motorists
and consideration of mitigation, the number is reducing.
5.6
It is considered that the Council operate the scheme in a fair and proportional manner
which has seen the number of Salford appeals referred to NPAS fall considerably to
only 102 (0.31%) during the last financial year of which approximately 40% were
allowed in favour of the appellant.
6
Current situation
6.1
Several changes have taken place in respect of the CPS contract since the start of the
scheme particularly in respect of technology intended to improve many aspects of
service provision.
6.2
In common with other Authorities, digital imaging was introduced two years ago to
assist all parties. Photographs are taken of each contravention which are invaluable
when dealing with representations or appeals in order to assist in evaluating the
circumstances. NPAS in particular find photographs very useful and they can also
corroborate a motorist’s version of events as well as support a contravention.
6.3
A new IT system was introduced this year by CPS which deals with all aspects of PCN
processing and integrates digital images into the system. Also included is the ability for
motorists to pay their penalties by automated telephone or internet facilities at any time
and photographs of their contravention can be viewed over the internet to assist them
with any decision to pay or challenge the PCN. These additional payment facilities
have enabled CPS to close the Parking Shop at Swinton, reducing costs to the
Council.
6.4
Recruitment and retention of Parking Attendants has improved due in part to a pay
increase partly funded by the closure of the Parking Shop resulting in a better standard
of service offered to the public by more experienced staff. Indeed, it is intended to
develop them as ‘Ambassadors’ of the Council who in addition to their enforcement
function, can assist members of the public when appropriate, providing information or
directions. This was demonstrated during the recent Salford Triathlon event where a
small number of Attendants were deployed at the Quays for that purpose.
6.5
Clamping and removal powers have been implemented in respect of repeat offenders
who deliberately do not register their vehicles so that they cannot be traced. Many
operational difficulties have been overcome to introduce this feature and matters have
only recently been finalised. However, a vehicle with twenty-seven outstanding PCNs
was about to be clamped soon after implementation which prompted the keeper to
return to it before the clamp was attached. Proof of identity was provided which will
enable enforcement action to proceed.
7.
Future Development
7.1
CPS were initially appointed for a term of five years with an option to extend the
contract by one year.
7.2
This option was exercised earlier in the year and the contract period will now terminate
in April 2007.
7.3
Consideration will soon have to be given to the future development of the scheme
particularly in relation to awarding a further contract or the feasibility of introducing an
‘in house’ operation.
7.4
Other areas of enforcement falling within the Council’s responsibility such as litter and
dog fouling could also be considered for inclusion under one umbrella but the legal
implications for Parking Attendants dealing with other matters still require clarification.
8.
Recommendations
8.1
That this report be noted for information only.
Bill Taylor
Managing Director, Urban Vision Partnership Limited.