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Staff Report
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Report To: Joint Committees
Date of Meeting: June 19, 2023
Submitted By: Rob Maciver, Deputy CAO/Solicitor
Reviewed By: Rob Maciver, Deputy CAO/Solicitor
File Number:
Report Subject: Payment Modernization
Recommendations:
Report Number: LGS-023-23
Resolution#: JC-071-23, C-093-23
By-law Number:
1. That Report LGS-023-23, and any related delegations or communication items, be
received;
2. That all single-space parking meters in downtown Bowmanville be transitioned to a
mobile parking application payment option in accordance with the contents of Report
LGS-023-23;
3. That all pay and display parking meters be converted to accept credit card and debit
card payments in accordance with the contents of Report LGS-023-23;
4. That all single-space parking meters in downtown Bowmanville be removed;
5. That the by-law included as attachment 1 to Report LGS-023-23 be enacted; and
6. That all interested parties listed in Report LGS-023-23, and any delegations, be
advised of Council's decision.
Municipality of Clarington
Report LGS-023-23
Report Overview
Page 2
This Report sets out a recommended approach to move towards a cashless approach to
paid parking as part of the Payment Modernization Initiative Report CAO-10-23. It is
expected that both financial and productivity efficiencies will be realized due to the
implementation of the recommendations. Significant planning and effort will be undertaken to
ensure a robust communications and engagement strategy is undertaken to inform the
public.
1. Background
1.1 The Municipality continuously explores opportunities to enhance processes and provide
services that are more efficient.
1.2 As part of Report CAO-10-23, Payment Modernization Council passed resolution #GG-
097-23 to implement a cashless payment system.
1.3 Previously to the cashless initiative, Council adopted Resolution #GG-023-22
requesting a report on the possibility of installing paid parking meters at the municipal
waterfront parking lots.
2. Removal of Paid Parking Meters
2.1 Paid municipal parking in Clarington is currently only in effect for a portion of historical
downtown Bowmanville, corresponding more -or -less to the Bowmanville Business
Improvement Area. In this area, there exists both on -street, single -vehicle parking
spaces regulated by single-space parking meters, as well as paid parking lots regulated
by centralized meters that print individual parking permits.
2.2 The rationale for paid parking is that it is necessary to create parking turnover and to
prevent vehicles from occupying parking spaces in front of businesses for extended
periods.
2.3 Single-space parking meters are the oldest type of parking regulation device. These
devices are coin -operated, and they require considerable effort to reprogram. Revenue
from these devices must be manually collected, and utilization statistics are not easily
generated.
2.4 Due to the limited lifespan of the equipment and inflationary factors, the cost to
maintain and operate single-space parking meters continues to escalate.
Municipality of Clarington
Report LGS-023-23
Page 3
2.5 Approximately 140 of the 171 existing parking meters require immediate upgrade or
replacement. Each meter costs approximately $500.00 to replace, and when meters
were last installed in 2021, the installation cost was $1,500 for 25 meters. It is
estimated that the elimination of single-space parking meters would result in a cost
avoidance of $70,000 over 5 years. There would be additional cost avoidance
attributable to reduced maintenance and repair. Upon the removal of single-space
parking meters, MLE Officers would no longer be required to collect coins or perform
any meter maintenance, allowing them to direct their efforts to more meaningful
activities.
2.6 It is proposed that single-space parking meters will be removed and replaced with the
mobile parking payment system explained below.
2.7 If approved by Council, Staff in Public Works will coordinate the removal of existing
single-space parking meters with the work projected to be completed in October 2023.
3. Mobile Parking Payment Application
3.1 Earlier this year, through a competitive procurement process, HotSpot Parking Inc. was
awarded a contract to provide Clarington with a mobile parking payment solution that
will allow users to pay for parking using their mobile device. There is no cost to the
Municipality for this technology; the vendor's revenues are generated solely through
end -user fees.
3.2 This parking payment application operates by a license plate -based system that allows
users to pay for parking directly from a mobile device. The customer can purchase
parking time before getting out of their vehicle or without going to a machine avoiding
inclement weather and snowbanks while trying to make a payment.
3.3 Other benefits to customers using the mobile parking payment application include:
- Convenience;
- A notification to the customer's mobile device when the time is about to expire;
- The ability to add more time to your parking spot (up to the maximum time limit);
- The ability to end a parking session early and be refunded for the remaining time;
and
- Enhanced personal safety.
Municipality of Clarington Page 4
Report LGS-023-23
3.4 Signage is proposed at regular intervals throughout the paid parking zone to inform the
public of the payment options through the use of the mobile application ("app"), QR
code, text SMS or website.
3.5 Activation of the mobile parking payment application for downtown Bowmanville is
scheduled for August 1, 2023.
3.6 A brief transition period is proposed during which both coins and mobile payments
would be accepted. Following the removal of the single-space parking meters as
described above, the mobile payment application will become the exclusive method of
parking payment for on -street, single -vehicle parking spaces.
4. Municipal Parking Lot Pay -and -Display Machines
4.1 There are currently five Municipal parking lots with pay -and -display machines that
accept coins only.
4.2 Two existing machines have reached their end -of -life and require replacement at a cost
of $7,500 each. One pay and display machine (coin only) has been budgeted for
replacement in 2023.
4.3 Coin -operated machines encounter frequent mechanical issues, and maintenance
costs are not insignificant. Malfunctioning machines also detract from the ability to
generate revenue and negatively affect the image of the Municipality while providing
constant enforcement challenges for Municipal Law Enforcement.
4.4 It is proposed that the five current machines be upgraded to remove coin payment and
to accept credit card or debit card payments instead. The estimated cost of these
upgrades for all five meters is $17,500.
4.5 To be adapted to accept credit and debit card payments, an additional fee is required to
allow price adjustments, report revenue collected, and monitor utilization on our five
pay and display machines. This would result in an overall cost increase of $155 per
month.
4.6 If approved by Council, Staff would work to have these upgrades completed as soon as
possible.
4.7 As an additional payment option, the mobile parking payment application will be
available for use in the downtown parking lots on the same timetable as described
above for on -street parking.
Municipality of Clarington
Report LGS-023-23
5. Waterfront Parking
Page 5
5.1 Council Resolution #GG-023-22, directed Staff to report back the possibility of installing
paid parking meters at the municipal waterfront parking lots. Given the earlier
recommendation to eliminate parking meters in downtown Bowmanville, Staff do not
consider parking meters to be the optimal solution. If Council wishes to pursue paid
parking at these locations, it is recommended that the mobile parking payment
application be used, as outlined in this report.
5.2 With the onset of the digital parking payment application, it is entirely feasible to
implement paid parking in areas where infrastructure limitations have formerly
presented a barrier. With technology now available to provide a solution, the pertinent
issue for Council to consider is whether parking fees are desirable at areas outside of
downtown Bowmanville, such as recreational waterfront parks.
5.3 Revenue is generated from paid parking both in the form of parking fees, and fines
levied for parking without a permit. In addition to the obvious benefit of generating
revenue for the Municipality to offset the expenses associated with the maintenance of
waterfront parks, parking fees may also help to alleviate overcrowding issues that have
resulted from the swelling popularity of these waterfront areas.
5.4 However, public reaction to the introduction of parking fees may prove to be an
unpopular decision among residents and visitors. For that reason, any decision to
impose fees should be carefully considered.
5.5 Clarington has seven waterfront park areas used recreationally by residents and
visitors. The parking accommodations in each area are at different stages of
improvement.
5.6 Bond Head Park and Port Darlington East Beach Park are currently the only waterfront
locations with developed paved parking lots and designated parking spaces. These
developed areas are currently the only practical locations to impose parking fees.
5.7 There may be future potential to introduce paid parking at the Glen Parkette, Port of
Newcastle Park, Port Darlington West Beach Park, Bowmanville Leash -Free Dog
Park/Bowmanville Harbour Conservation Area, and Courtice Waterfront when these
areas have been improved.
5.8 Utilization of the mobile parking payment application would be efficient and economical
for both implementation and long-term administration and maintenance. Signage would
be the only cost associated with collecting parking fees in the waterfront locations, at
an estimated cost $150 per sign (20-30 signs initially) plus approximately $3,750 for
initial installation.
Municipality of Clarington
Report LGS-023-23
Page 6
5.9 This approach would align with the Municipality's broader payment modernization
initiative, as well as the parking payment trends being seen in areas of other
municipalities including Ajax; Pickering; Cobourg; Saint John, New Brunswick; and Red
Deer, Alberta.
5.10 If parking fees were to be imposed at Bond Head Park and/or Port Darlington East
Beach Park, additional parking restrictions would be recommended for the surrounding
streets and side streets to ensure that it is not advantageous for individuals to park
outside of the paid parking areas to avoid payment of the parking fee.
5.11 Appropriate fees for parking would be required to be established through amendments
to the Traffic By-law. To stay consistent with current parking fees in downtown
Bowmanville, Staff would recommend a fee of $1.00 per hour, but with a higher daily
maximum of $10.00.
5.12 Given the mainly seasonal use of these waterfront areas, it would be recommended
that fees be imposed for the period of May 1 - October 1 and between the hours of 5:00
a.m. — 11:00 p.m.
5.13 Municipalities that operate cashless payments at waterfront and recreational parking
areas are Ajax, Pickering, Uxbridge, Ramara, Oro-Medonte, and Tobermory. Apart
from Coburg, all municipalities provide local residents free parking in waterfront areas.
Various approaches are utilized for issuing parking passes to residents and may be
labour-intensive.
6. Financial Considerations
Cost Avoidance
6.1 Savings of approximately $7,000 per year in maintenance costs would be achieved by
the elimination of the single-space parking meters.
6.2 Over the next five years, approximately $70,000 of costs can be avoided by eliminating
the need for replacement of the existing parking meters.
6.3 A coin counter and pay -and -display machine have been budgeted for a total of $15,000
in 2023. A second machine will be required for replacement in the next two years at
approximately $7,500. These costs can all be avoided by the adoption of the
recommendations in this report.
6.4 In total, approximately $127,500 in costs would be avoided over the next 5 years if the
recommendations contained in this report are approved.
Municipality of Clarington Page 7
Report LGS-023-23
Expenses
6.5 It is anticipated that the work to physically remove the single-space parking meters will
be performed by Staff in the Public Works Department, resulting in minimal cost.
6.6 The upgrades to the pay -and -display machines will cost approximately $17,500 and will
be funded from the existing budget.
6.7 There are minimal costs associated with the mobile parking payment application.
Transaction fees to use the services are minimal and are charges directly to the end
user. For example, the user is charged $0.20 per transaction when payment is initiated
using the HotSpot mobile application.
6.8 There is a credit card processing fee of 2.99% on all parking payments and which cost
is borne by the Municipality.
6.9 There is a cost to the Municipality of $150.00 for each additional sign that may be
needed to inform the public about the mobile parking payment application.
Productivity Savings
6.10 Approximately five hours per week of MLE Officer time is currently dedicated to the
collection of coins and performing maintenance on parking meters. Two MLE Officers
are required to spend approximately three hours per week counting the coin collected.
This represents approximately 572 hours per year of MLE Officer time that can be
redirected to more meaningful enforcement activities.
6.11 Staff in the Public Works Department are also routinely called upon to assist with the
maintenance of the meters. Approximately 140 hours per year are spent between two
Light Equipment Operator II's performing this maintenance. Additional productivity
would be seen in the winter during snow removal from the sidewalks, as meters would
no longer be an obstacle.
7. Communications and Engagement Considerations
7.1 Upon approval by Council, MLE Staff will work together with the Communications
Division to develop a comprehensive communication plan to generate awareness of the
new mobile parking payment application and the elimination of coin payments.
7.2 Staff have connected with the Bowmanville BIA to communicate the changes in
advance to ensure they are educated and informed. The MLE Manager will be
attending a further meeting of the BIA to provide a demonstration of the mobile parking
payment application.
Municipality of Clarington
Report LGS-023-23
Page 8
7.3 As mentioned above, there will be a brief transition during which parking payments will
be accepted by either the mobile parking payment application or by coins. The
communications plan will provide a clear indication that all coin payments for on -street
parking will be eliminated with the removal of the parking meters anticipated for
October 2023.
8. Concurrence
This report has been reviewed by the Deputy CAO/Treasurer who concurs with the
recommendations.
9. Conclusion
It is respectfully recommended that Council approve the staff recommendations
contained within this report.
Staff Contact: Duncan Anderson, Manager Municipal Law Enforcement,
danderson@clarington.net
Attachments:
Attachment 1 —Traffic By-law Amendments
The following interested parties will be notified of Council's decision:
Bowmanville BIA
THE CORPORATION OF
THE MUNICIPALITY OF CLARINGTON
ICYAW-1VITAKIYAdr
Being a by-law to amend the Traffic Bylaw 2014-059
WHEREAS the Council of The Corporation of the Municipality of Clarington deems it
desirable to amend Traffic By-law 2014-059.
NOW THEREFORE be it enacted:
1. Section 1 of By-law 2014-059 is amended by adding the following definition:
"parking control device" means any device or technology implemented for the
purpose of controlling paid parking or stopping of any vehicle.
2. Sections 25 and 26, of By-law 2014-059 are amended by deleting the words
"parking meter" and replacing them with the words "parking control device".
3. Section 28 of By-law 2014-059 is deleted and replaced with:
In any location where paid parking is in effect in the Municipality, no person shall
park any vehicle in a parking space unless they have paid the fees in accordance
with Schedule 5 or Schedule 6 of this By-law.
4. Subsection 34 of By-law 2014-059 is deleted and replaced with:
No person shall park a vehicle or permit a vehicle to remain parked in a designated
paid parking space that has been signed to indicate that it is not to be used.
5. Sections 27, 29, 30, 31, and 32 of By-law 2014-059 are deleted.
6. Schedule 5 of By-law 2014-059 is renamed "Paid Parking Zones on Highways".
7. Schedule 6 of By-law 2014-059 is renamed "Paid Parking Lots".
8. This by-law comes into effect on the day it is passed.
PASSED this XX day of XX, 2023.
Adrian Foster, Mayor
June Gallagher, Municipal Clerk