Agenda item

Roy Clark – Parking Services Manager, provided evidence as part of the Committee’s review into payment modernisation across key resident services, focussing on the ways that residents and customers can pay for parking within Hillingdon.

The Committee was informed that the Council’s Parking Services receives a number of payments for parking services, including permits, suspensions, Penalty Charge Notices and payments for parking in on-street parking bays and within the Council’s car parks.

Payments for parking permits average £234k per annum and payments can be made online through a third party payment provider, by cheque or postal order, or by telephone. As all permit and visitor voucher applications are received by post, cash payments are not encouraged. However, on occasion cash is received by post and in such instances, the cash is banked as normal. Additional visitor vouchers can be purchased at Hillingdon libraries. A newly introduced parking ticket system allows motorists to view CCTV footage, and pay or appeal fines, online.

Payments for parking bay charge suspensions and waivers to park on yellow lines during essential works average £116k per annum. Payments for parking suspensions/waivers can be made by cheque or payment card over telephone. For Penalty charge Notices (PCNs), the Council receive a total of £3.4m per year. Payments for PCNs can be made online via a third party supplier, by an automated telephone service or by cheque or postal order.

The two multi-storey car parks in Uxbridge (Cedars and Grainges car parks) operate a barrier control system with Pay on Foot machines. The machines accept banknotes, coins or contactless credit/debit cards. The average income from the car parks is £981k per annum.

The majority of other parking charges are received via Pay and display (P&D) machines, which account for a total of £1.9m per annum. The Council currently operates 252 Pay and display machines, that provide cheaper parking rates to owners of the Hillingdon First card. Use of these sites of predominantly short stay (i.e. ½ - 2 hours), and 75% of all payments are at the Hillingdon First cheaper rate.

While Pay and display machines currently accept coins only, advances in technology now allow for a cashless option via credit or debit cards, which also allows for use of the Hillingdon First cards.

Options for cashless machines include:

-       P&D machines with cash only facilities and a card payment system available through a mobile phone system (under this system coin only machines would remain and a separate mobile phone payment system would also be introduced).

-       P&D machines with a card only payment system fitted to the machine (under this system only a payment card reader would be available at the machines - there would be no coin payment option available).

-       P&D machines with cash and card payment facilities fitted to the machine (under this option motorists could pay with coins at the machine and there would also be a payment card reader fitted to the machine).

-       P&D machines with cash and card payment facilities fitted to the machine, and an additional card payment system available through a mobile phone system (under this option motorists could pay with coins at the machine and there would also be a payment card reader fitted to the machine.  There would also be a separate mobile phone payment system available).

There are benefits and drawbacks to all optional options, set out in detail within the appendix to the report. Introduction of cashless machines would reduce the risk of theft from the P&D machines. In addition to improving the range of options and ease of payments for motorists, cashless parking systems provide a cost benefit to the Council as there is less cash to collect, count and bank. The introduction of a mobile phone system would also reduce wear and tear on the machines, resulting in a longer term of life and less of a requirement for maintenance. However, officers are mindful of the need to retain a cash option.

The P&D machines have an expected working life expectancy of 10 years, and many are now at the end of that life and will need replacement. However, there would be significant financial implication to replacing, or updating machines to incorporate new technology. Replacement with a cash-only machine would cost £3,400 per machine. Replacement by a cash machine with integrated card reader would total £4,125 per machine. Replacement of all 252 machines across 4 years would therefore total £856,800 and £1,039,500, respectively. A competitive tendering exercise could help to confirm and/or reduce these estimates.

A mobile telephone/card payment system, which would operate independently of existing P&D machines, would provide a greater range of payment options to motorists without the requirement for large capital investment. The cost to implement such a system would total an estimated £10k, with ongoing annual expenditure of circa £3,500.

Members asked a number of questions, including:

How many P&D machines were currently active?

Currently, approximately 20 of the total 252 machines were out of service. These tended to be machines that were in less popular parking spots and that subsequently took very small amounts of money.

Were machines online or offline?

The machiens were currently online. If a machine had a card reader, it would need to be online in order to function.

Were contactless machines separate from card reader machines?

Machines could be fitted with dual options, to allow for card payments via pin code as well as by contactless. Alternatively, machines could be installed with the option of one or the other.

Would a mobile phone system include a smartphone app?

Yes, such a system would allow motorists to call and pay for parking via telephone, or via registration through a smartphone app.  Smartphone apps had the added benefit of storing payment details, car registrations and most used parking sites, as well as providing the option for virtual permits and visitor vouchers. Safeguarding options for single use of tickets, time allocations and similar, could be implemented dependant on how the system was configured.

Did the cost estimates outlined in the report include provision for changes to signage, handheld devices for parking wardens, etc.?

The cost implication to update signage was not included, though there were several cost-effective options available to the Council such as the use of vinyl sheets and laminated notices. A recent refresh of parking equipment for wardens meant that there was no need to replace current devices.

How did the machines currently report their status or cash deposits to the Council?

The current system allowed machines to report faults, allowed for changes to electronic messaging, and reported the amount of money within each machine, to Council officers. Machines in parking hotspots had their money collected 3 times a week. All machines, including machines that only collect low levels of income, are collected within a maximum of 2 weeks.

Members suggested that if a cashless option was implemented, signage and instructions at parking sites would need to be bright and clear.

Members suggested that future witnesses could include a charitable organisation that dealt with people in deprivation, such as Step Change.

RESOLVED:  That the report be noted.