How to choose a parking solution? What are appropriate objectives? What are the relevant metrics? What solutions are available on the market, how they differentiate? How new technologies like artificial intelligence can improve industry standard? Read in this paper.
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On-street Parking - white paper - 2010
1. White Paper ■ January 22, 2010 ■ version 0.2
PBYCALL
arking
www.pbycall.com
White paper ■ Low density parking management ■ Select appropriate to the time solution
2. WHITE PAPER
Company │ PBYCALL, Inc.
Focus │ IT, SaaS, artificial intelligence
Product │ next generation parking man-
agement infrastructure
Customers │ municipalities, communities,
parking lot owners and administrators
LEGAL NOTICE
Property │ printed material and
information if not mentioned otherwise are
CONTENTS
property of PbyCall, Inc.
Reproduction │ any distribution, 3 ABSTRACT .
reproduction and use of the document and PROBLEM
its parts in any form or by any means with-
out the prior written permission of the 4 Community challenges
author is subject for legal persecution and 4 Crumbling parking management infrastructure
fine. HOW IT WORKS
Copies │ additional copies of the
document are available upon request. 6 The product
6 Consumers’ perspective
7 Customers’ perspective
CONTACT HOW IT SOLVES PROBLEM
8 Costs
Contact | Mr. Terry Allen 9 Parking service quality | consumer
terry@pbycall.com 10 Parking service quality | parking authority
www.pbycall.com
Cell# 770 335 9702 APPENDIX
11 On-street parking 101
12 Government 101
PRODUCTION
Author │ Mr. Konstantyn Spasokukotskiy
konstantyn@pbycall.com
Cell# 404 579 4635
Copywriters │ Beyond Marketing
Concepts, LLC, Marietta, Georgia, USA
www.BEYONDmc.com
Phone# 770 294 5936
Publisher │ PBYCALL, Peachtree City,
Georgia, United States of America.
Printed │ Staples
signed to print January 27, 2010.
3. ABSTRACT
In this white paper
How to get proper parking solution
Make sure you are a city official, parking manager or can impact re-
spective decision making.
Does your municipality, community or property have systemic budget
deficit? Read #2.
Check if broad constituency has difficulties using on-street parking
meant to be convenient and quick.
Make sure you understand what is the role of good governance in
managing transportation infrastructure.
Learn the initial purpose and true objectives of parking. Read #3.
The truth about costs
Parking availability dictates economic growth and available tax base.
Parking availability is ultimately impacted by parking management
price tag. The lower are management cots, the better.
Parking cots are spread among multiple stakeholders. People rarely as-
sess total parking costs. For example, communal opportunity cots,
cross-department cots are factors to reconcile with.
Many on-street parking facilities are directly or indirectly debt-run and
subsidized.
Good quality on-street parking management for profit is possible.
What is PbyCall parking management solution
Instantly available solution. Customizable software is accessible
online. It runs on company's hardware platform. The SaaS service is deliv-
ered over the internet. The company does maintenance and development.
Once set up, the solution handles most parking business processes auto-
matically. It collects funds for purchased parking right and communicates
with consumers. It also does all dirty, routine work for parking managers
and enforcement personnel.
Outstanding industry performance in terms of minimal requirements and
maximum outcome. The solution is much easier and cheaper to deploy and
install on-site than any competing one. PbyCall delivers quality and finan-
cial performance metrics several times better than everything else.
4. PROBLEM
Challenges Urgency Required solutions
Urban average New parking manage-
City officials today have natural incentives to (administrate ment infrastructure type
make their communities attractive and eco- scarce space)
nomically advantageous. This task is jeopard- Economic top Lower total costs of
ized by several trends: rapid urbanization, (reduce costs of parking management
population aging, recessive global economy. services) (per parking transaction)
Urbanization > scarcity of space > Parking is a granular part of transportation
local economy slowdown | An uncon- and thus economic infrastructure. Every dol-
trolled urbanization process leads to inevi- lar spent or saved onto better US infrastruc-
table issues in the communities (see On- ture impacts economy with a multiplier 1.59.
street Parking 101). The community In parking it is twice the impact.
growth is limited. The already achieved
efficiencies are bound to extinction unless Parking solutions in use today are ob-
government intrudes. Uncontrolled growth solete. They do a poor job administrating
guarantees distressed communities given scarcity of space. Thee solutions are based on
the presence of permanent competition century-old assumptions — at a time when
among cities. transportation was limited to the wealthy few.
Many solutions being implemented today
Population aging > declining munici- typically prescribe who, where and how long
pal income > no funds to subsidize one parks. Indeed, the decision making while
services | If older population and high trying to park is complex and comprised of
retirees percentage, the price, that an aver- many factors. The factors are known only to
age person can pay for services, decreases. the individuals.
On the other hand, the relative costs of
conventional parking technology con- New paradigm for parking management is
stantly increase. Historically, municipali- required. It should resolve the issue in nowa-
ties stepped in for the consumer and subsi- days different environment, where parking
dized parking operations. That concept availability is very limited, but demand is
doesn’t work any more. high; the demand is also highly variable; time
-value correlation for parking transactions is
Slowing economy > declining income imprecise.
> higher pressure for improved ser-
vice quality | In recessive economies peo- For example, let us assume someone is late
ple tend to conserve their cash and usually for a meeting. The person normally antici-
spend money on their homes and necessi- pates long term parking (a garage two blocks
ties. Better internal efficiencies and do away). Being late this time incurs high devas-
more with less is a blueprint for businesses tating costs. Let’s say, a Japanese delegation
during tough economical times. It is also a is humiliated, a deal is lost, damage to the lo-
theme for successful municipalities that cal economy occurs. In this situation it would
want to provide better service for less have been better if the person had taken an
costs. They typically don't settle for sub- easily accessible parking spot (on-street park-
standard products. ing at the door), saving time and arriving on
5. time. Both the company and community omy. This part of costs is distributed among
would benefit. several entrenched stakeholders. Costs attri-
bution is often a politically impacted, complex
The new parking management principles process. A few people can and want to man-
should enable complex use cases but inher- age it. The quality measurement is easier but
ently prohibit public abuse. City officials are still neglected. Thanks to quality measure-
encouraged to look closely at the actual capa- ment not being part of rational decision mak-
bilities and limits of preferred parking man- ing, it is the major cause for confusion associ-
agement solutions. ated with parking technologies analysis and
judgment.
Parking solutions in use today are a
resource drain. The costs are spread City officials are encouraged to check the total
among consumers, parking authorities, po- costs of ownership (TCO) across all stake-
lice, property owners, etc. This way the actual holders or the service quality to costs ratio.
costs to community aren't evident. Many competing parking management solu-
tions don’t really reduce burden. They just
The success of particular parking manage-
differently distribute the costs among the
ment solution is best measured and dictated
stakeholders.
by the service quality/costs ratio.
For example, popular nowadays attempt to
In fact, quality almost always can be figured
reduce costs by installation of multi-space
out in costs terms. In parking though, the
parking meters cuts service quality and the
costs are typically attributed to direct parking
initial idea of quick convenience parking.
facility costs paid by municipalities. The ser-
Consumers loose productivity spending sig-
vice quality represents intangible costs (as a
nificant amount of time on parking rights
reciprocal value). For example, the intangible
purchase. The game of decreasing service
costs are comprised of the consumer’s time
quality driven by an opposing to increasing
and effort costs, the costs associated with em-
costs is essentially that, what most communi-
ployee’s efforts and lack of business robust-
ties play with their constituency today.
ness, the opportunity costs for the local econ-
6. HOW IT WORKS
The core product is leased capacity of a special- On-site installation example
ized, computerized processing center. It pro-
vides proper parking management, monitoring
and payment collection over internet and
phone. Customers share the total available ca-
pacity depending on their actual needs. The as-
signed capacity is adjusted by demand through
on-line web interface.
How it works for consumers | Consumers
are required to report beginning (check-in) and
termination (check-out) of parking. It is as-
sisted by using a number of supportive meth- What do consumers want?
ods. The entire process saves time and can be
accomplished on-the-go by anybody without Parking payment methods
prior knowledge or experience in using the sys-
coins
tem. Normally the entire process is five to ten 66%
punches, a few seconds. The initial contact in- 3%
formation is displayed on the road signs.
The system identifies consumers and the exact 83% 17%
parking spot they are using. While checking in 14%
consumers report their unique parking spot
9%
number. They can use natural voice speech, text banknotes
or picture messages. To make the process famil- 8%
phone
iar using phone, the parking spot identifier can credit card
pre-paid card
be part of a standard dialed number. By phone
consumers will be identified by the phone num- Source: Miami parking authority
ber (Caller ID) or by biometric features like
voice pattern, typical parking locations, etc. The
Credit | target group for the payments by credit/debit
system requires no previous registration. It can
card
be used instantly. The registration process
Billing | target group for a paper billing sent to cus-
(enrollment) is accomplished the first time the tomer’s address
system is used.
Payment by a credit card or paper billing to the
consumer’s address at the end of the month will
be available options.
7. How it works for cities | The munici-
Technology for the streets pal managers design and perform setup
STREET SITE for on-street parking facilities online.
Report start and Officer executes
end. citation
Upon completion they will be required to
issuance mark the streets appropriately.
The PbyCall center collects data about
Communicate 1
Check & process 8 consumer payments and facility usage for
dispatch to
reports back a specific every enabled facility. The data is auto-
upon taken action parking spot matically processed. There is usually no
2 7 human involved. The actual reported oc-
cupancy is dynamically compared with a
pattern in relation to time and space. En-
3rd party 3rd party forcement officers can now be effectively
Check-in/out 3
dispatched to specific parking spots with
Communicate
Parking terms 4
6 violation probability over a threshold. The
automated
dispatch orders are communicated
facility through standard communication equip-
ment like cell phones or police radio-
Virtual Police Patrol 5 PROCESSING SITE
dispatch. Enforcement will take only a
Call service number to report beginning and termination of a fraction of time formerly used. The system
1 parking period. provides strong electronic evidences in
case the enforcement is involved in a dis-
2 Use pure voice, text, web or pictures. Wired or wirelessly.
pute resolution.
Collect information about the number of used parking spot.
3
Identify user by password or biometrics. The customers pay for the service as it
goes on the per single parking event
Communicate parking rates, payment acceptance, inform (parking transaction) basis. The service
4 about purchased parking right. For vacancy targeting: the
fee is retained from the collected funds.
shorter you park the lower the rate. Set vacancy rate for the
parking spots based on actual demand. Process consumer The rest of the funds are transferred to
credit card and paper billing payments. the customers.
Check spot occupancy. Automatically monitor actual parking
5 demand. Use that and historical data to detect probable
parking violations.
Engage police officers on-demand. Communicate dispatch
6 orders to the enforcement officers.
Use basic cellular equipment or existent in-car communica-
7 tors and systems.
8 Report parking spot status and result of citation issuance.
8. HOW PBYCALL SOLVES THE PROBLEM | COSTS
PbyCall solution provides unprecedented PbyCall solution Advantages:
service quality. It beats all competitors on 1. makes most facilities profitable;
the major set of parameters. But even if you 2. close to none investment costs;
neglect quality, PbyCall solution is a quan- 3. pay-as-you-go, pay-for-performance, no
tum leap in tangible costs reduction. The money upfront;
result is the best quality/costs ratio in the 4. low operational expenses.
industry.
approx. $25 vs. $500 per parking spot. There is
By lowering the costs point the majority of
no charge upfront. You can deploy a full-scale
existent on-street parking facilities in the
facility and pay as-you-go as usage picks up.
USA will be profitable. It is true for any ac-
counting and costs aggregation method. No special equipment or skills are required to
Furthermore, new facilities can be estab- run the facility. The complexity is taken over by
lished in the areas where parking manage- a computer-aided processing center. The per-
ment is required but was too expensive. It sonnel is engaged on-demand. It attributes to
will provide additional funds to respective low phase-in training and operational costs.
municipalities.
Both parking authorities and consumers save
The rollout of PbyCall parking management time and money. An average parking transac-
approach is significantly less expensive than tion will create approx. $1.2 combined savings.
status quo. The installation costs are
maintenance,
payment collection
Direct municipality costs
30%
typical savings
historical parking facility costs
enforcement,
administration
maintenance 6%
best practice costs today
enforcement,
30% administration
hardware
50% service fee
PbyCall costs
maintenance 6%
30% enforcement 10%
hardware 6% hardware 2%
9. HOW PBYCALL SOLVES THE PROBLEM | QUALITY
PbyCall provides a solution at par with luxury Unique solution:
best-in-class parking management products.
1. convenient, easy to use service;
Now ordinary consumers can enjoy conven-
ient parking without any sacrifices. It makes 2. enables extended street coverage;
parking just and available. Streamlined proc- 3. supports all management paradigms
esses and intuitive user interfaces offer con- and payment concepts;
sumers unprecedented efficiency experience. 4. simple, guided facility administration
Parking administrators and enforcement per- and management;
sonnel honor that more complex operations 5. low work force skills and time demand;
actually require less concentration and re- 6. easy, quick roll-out for permanent and
sources than ever. An extensive automation temporary, special event parking facili-
and artificial intelligence take a significant ties;
part of complexity over.
7. enables perfect time-demand balance.
Particularly consumers save the hassle Ideal parking curve (see Parking 101);
paying for parking. The process can be ac- 8. robust operations, no drift out, low hu-
complished on-the-go as well as in conven- man error, fault tolerance and tracking.
ience of climate controlled car or building en-
vironment. There is no need to care about Corporate consumers can simplify and auto-
pockets full of coins. matically aggregate payments for their em-
ployees. In addition, the payments are due
Every consumer receives monthly parking post-factum.
usage reports alike the phone calls reports. It
can be used as a document for reimbursement PbyCall system provides a variety of commu-
if on a business trip. Or it can be used for be- nication interfaces. Consumer can use any
havioral analysis and future route planning. voice phone available: cellular phone at hand,
Best approach: vacancy targeting given space (continuous auctioning criteria) is
practically impossible to maintain. Though, it
Addressing the on-street parking manage- is possible to do so within a tolerance band.
ment issue of space scarcity in urban areas The targeted vacancy rate is a measure for the
isn’t a new phenomenon to deal with. In fact band. In practice it is a reserve to be given out
the whole development of economic systems until all market players receive updated price
solely addresses the issue of resource scar- information and have altered their behavior.
city. How to distribute evenly and not dis- A 15% vacancy targeting works in New York
criminatorily the available resources is a cen- City, adjoining boroughs and several Califor-
tral question for economists. The recent an- nia cities. The parking modus operandi curve
swer was the free market approach. This (see Parking 101) becomes nearly ideal.
means a resource auctioning to the highest The challenge: a successful implementation
buyer. of the approach requires a completely new
The best known and gaining ground ap- type of infrastructure. It must provide dy-
proach to follow the paradigm is vacancy tar- namic information handling at affordable
geting. It assumes that the exact balance of price. An upgrade for old parking meters isn’t
demand and supply in any given time at a economically justified.
10. a public payphone, business phone or a public and inquire parking rights for every and each
phone in foyer of any establishment. She can vehicle via a data base interface. It demands
use internet, web, email, SMS, phone app, etc. significantly more time and workload if the
interface isn’t utilizing an expensive proprie-
For the consumers not being able to get an tary device. In both cases the costs of enforce-
access to the said communications means a ment raise and process robustness decrease.
few high-tech parking meters with a conven- It effectively eats up all savings created else-
tional user interface can be added to the in- where by the pay-by-phone solution. It is
stallation mix. The devices are expensive but rarely a viable solution.
in limited numbers they don’t impact eco-
nomics of parking facilities significantly. A PbyCall takes care of these and other issues.
special parking rate keeps other consumers Managing best-in-class parking is hassle free.
away of hardware metered parking spots. The All required information is provided on-line.
high-tech meters report spot occupancy wire- Everybody without prior knowledge can now
lessly. setup and operate parking facilities. The en-
tire process takes hours instead of years
Parking authorities and cities that are plagued by continuous tweaking.
implementing modern parking management
paradigms typically encounter more complex The system maintenance is extremely simple
administration of parking. It goes all the way since no proprietary equipment is required.
up to a failure.
The system significantly reduces load on the
For example, the manually-performed dy- enforcement officers. Police can devote more
namic parking rates adjustment is a difficult time to productive activities like chasing real
and failure-prone task. It increases load on criminals. The parking enforcement load will
the personnel. It also requires a certain level be reduced more than in half. But the revenue
of theoretical sophistication. Anything less stream will increase, since the average viola-
than dynamic rate adjustment doesn’t bring tion catch rate also improves. People will be
desired results. incentivized to behave. Though, it is up to
managerial preferences how to setup the sys-
Another example is more complex and less tem and distribute available benefits: more
efficient enforcement processes on pay-by- personnel savings or less violations.
phone facilities. Police officers have to stop
PbyCall enables better coverage. All parking modes from a single source.
PbyCall enabled coverage
variable small
demand communities open-field & special events
service –20% underserved streets -80%
streets of interest for parking management
11. ON-STREET PARKING 101
Parking facilities can be divided in high-density (“off-street” parking, garages) and low-density
(“on-street” parking, private small “off-street” lots) parking. The on-street parking is a viable
solution for efficient and convenient parking.
Urbanization & scarcity of space | The global trend of exponential population growth is
likely to result in a dramatically increasing urban population (over 80% in US ). The future
density of urban population will increase. Along with it the local availability of public goods is
depleting; the ecology and roads are among them. The proverbial “parking wars” is an indica-
tor for growing social tensions. There is not enough parking available.
Scarcity of space & local economy | The initial problem is created by an increasing scar-
city of space. If parking isn’t managed properly, the most accessible parking spots are rarely
available. Then motorists have to switch to less accessible parking opportunities. This inevita-
bly implies higher time demand and costs. This demand is compared with the value of the busi-
ness at the end of the considered transportation route. Should the business value be worth less
than the cost to park, a serious danger and decrease in urban activity and thus economy will
occur. Proper low-density parking management is vital. It is foremost governmental function to
balance individual interests of constituency to solve the commons dilemma in parking.
Proper parking management & costs | The overall costs of goods and services dropped
dramatically during the recent decades. Mass manufacturing, economies of global scales and
technological advances are the contributors. On the other hand, the recent significant innova-
tion in parking was made more than 80 years ago by the introduction of parking meter. There-
fore, proper parking management becomes less and less affordable today. The majority of low
density parking facilities are debt-run or operate with inferior quality. Often both is true.
building new facilities Parking time = time for parking spot search +
parking availability
d
man
ide in
g walk time to destination + net parking period
d de
al rk
p ark pa
ease
ing n
ru
ide d Assumption: parking facility has limited
ncr
al ba
p &
ark
amount of parking spots available at any time.
d i
ing ild
w
man
rk
i nidea
g
lp the longer is a parking period, the more time is
d de
pa ark
ru
n in g available for parking search. It results in higher
ease
d- ide
ba al
pa chance to get a parking spot.
incr
& rk
ild in g
w
increasing competition
parking time
transaction costs
ide
al
pa
Actual parking management methods and natu-
rk
ing
id e
ral incentives to build more parking spots have
subsidy-
-prone
al
p ark immanent feature to provide poor economics
ing
id e
al
and multiple obstacles for operations of local
pa
rk ing business community.
ide
al
pa
rk
lost
ing
id e
An increase of parking management costs in-
business al
creasingly discourages local economic activity.
amount of parking transactions The same true for higher demand.
12. GOVERNMENT 101
The commons dilemma
Each man is locked into a system that compels
common wealth
him to increase his consumption without limit--
tive
r co
opera in a world that is limited. Ruin is the destina-
ehavio
serv
in g to
a self coope
ra tive b tion toward which all men rush, each pursuing
-in avior
coop
erativ
e behterest
servin his own best interest in a society that believes in
g to
a self- time the freedom of the commons. The payoff for
in teres
t se
immediate pay-off rving defecting behavior is higher than the payoff for
cooperative behavior. Tough, the total payoff
for defecting behavior is negligible in compari-
son with cooperative behavior’s total payoff.
A typical governmental task is to resolve Governmental function is to:
issues where free market fails. In the park-
ing case government has to enable system 1. elevate thinking on the next level of com-
for distribution of scarce resources while plexity above the individual’s interests;
properly balancing long-term with immedi-
2. spot relationship areas where individualistic
ate rewards. For example, a greedy behavior
behavior leads to issues in the society;
of individuals that likely to choose immedi-
ate reward should be discouraged. Govern- 3. provide solutions that allows individuals to
mental solution should reinforce rewards pursue their interests and stay in compli-
for the long-term savvy , cooperative behav- ance to the cooperation that is required by
ior. common interest.
approaches strategies to elicit cooperation typical solution characteristics
behavioral provision of physical alternatives limited opportunities or expensive
(easy)
regulation and enforcement failure-prone for dynamic processes
financial-economic stimulation effective in free market
cognitive organizational change easy solution for politics
(hard)
provision of information and education too many parties involved
social modeling and support no distinct implementation methods
changing values and morality extremely long time process