DECEMBER 12, Parking Meter and Time Limit Preliminary Evaluation

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1 Parking Meter and Time Limit Preliminary Evaluation

2 / PAGE 2 Executive Summary The following report evaluates the effects of new SFpark parking meters and extended time limits on meter revenue and parking meter-related citations during the first six months of 2011, before SFpark made any demand-responsive meter rate adjustments. As part of SFpark, the SFMTA has installed new, credit card-enabled meters at about 7,000 of the City s 26,800 metered parking spaces since early The SFMTA also extended time limits at SFpark meters to four hours, and in some places time limits were eliminated altogether. The new meters had the following effects: Parking meter-related citations decreased by 35 percent at the new meters compared to a 21 percent decrease at meters that were not upgraded. Net meter revenue (not including parking meter-related citations) increased by 20 percent at the new meters, compared to the rest of the City s older meters that generated 7 percent less revenue than the previous year. Extending time limits in April tripled the net revenue increase at the new meters from 11 percent in January through March to 37 percent in May and June. Adding together meter revenue and meter-related citations, the new meters are generating more revenue than meters that were not upgraded compared to last year. Combined revenue at the new meters decreased by about 3 percent, while combined revenue decreased by 14 percent at meters that were not upgraded. In 2012 the SFMTA will evaluate whether the new meters lower coin collection or meter maintenance costs, the effect of demand-responsive pricing, as well as complete a more thorough, longer-term evaluation of how SFpark has affected overall parking revenues, whether from meters, citations, garages, parking tax, or other sources.

3 / PAGE 3 Overview As part of SFpark, the San Francisco Municipal Transportation Agency (SFMTA) has installed new meters that accept both coins and SFMTA parking cards as well as credit cards at about 7,000 of San Francisco s 26,800 metered on-street parking spaces since the start of This report evaluates the effects of those new parking meters. It compares data from over 4,500 metered parking spaces that had old meters from January to June 2010 and new meters from to January to June 2011, and also evaluates the effects of lengthening parking time limits (implemented in April 2011) in SFpark areas. Specifically, this report evaluates how: New parking meters affected gross and net meter revenue New parking meters affected parking meter-related citations Longer time limits affected parking meter revenue Longer time limits affected parking meter-related citations New meters and longer time limits affected parking behavior (e.g., overall occupancy and how long people park) In addition to enabling the SFMTA to implement SFpark, the new meters are part of the agency s strategy to make paying for parking more convenient, and shift parking revenue away from parking tickets and towards payment at the meter. At older parking meters that only accept coins and SFMTA parking cards, compliance rates are relatively low, and citations are common. By making it easier to pay both by accepting credit cards and by extending time limits the SFMTA hopes to increase compliance and reduce the need for citations. Just as the SFMTA is working to reduce fare evasion on Muni, the agency is striving to increase compliance at the meter. Evaluating the new meters This report evaluates the new parking meters in comparison to the older meters they have replaced. It uses several metrics, including revenue, operation costs, citations, and parking space occupancy levels. Parking revenue and citations vary from year to year for a variety of reasons. In order to control for this, the report also includes an evaluation of the same revenue metrics for meters that were not upgraded. This provides a clearer picture of how much revenue has varied across the city for other reasons, and how much of the variance is uniquely attributable to the new meters or extended time limits. The key question for this report is whether increases in revenue at the new parking meters make up for the added cost of operating them and for any lost revenue as a result of fewer citations, all other factors being equal. The report does not analyze changes to coin collection costs because data is not yet available, but these costs may decrease at new meters.

4 / PAGE 4 This report is presented with the caveat that this is a preliminary analysis, and while some trends are evident, this report is by no means conclusive. In 2012, the agency will update its evaluation of their performance. Chart 1: Year-over-year change in revenue: Year-Over-Year Change in Revenue: % 40% 20% 0% 20% 40% 60% 80% January February March April May June Meters upgraded to smart meters (gross) Meters upgraded to smart meters (net) Old meters that were not upgraded Citations at meters that were upgraded to smart meters Citations at meters that were not upgraded to smart meters Findings 1. New meters increased gross revenue. Gross revenue at the new meters increased by 29 percent in the first half of 2011 compared to the old meters in place during the first half of New fees associated with the new meters, such as credit card fees and data transmission fees, reduced the total revenue gain by about a third. Accounting for these additional costs, the net increase in revenue compared to 2010 was about 20 percent. During the same period, revenue at meters that were not upgraded decreased by 7 percent. o o Credit cards accounted for about a quarter of the total number of transactions at the new meters, but over half the revenue, because people who used credit cards tended to purchase larger amounts of time. Areas with higher meter rates, like Fisherman s Wharf and Downtown, had larger percentage increases in revenue as a result of the new meters compared to areas with lower rates like the Mission and the Marina.

5 / PAGE 5 2. Longer time limits further increased revenue. The combination of accepting credit cards and extending time limits increased revenue. Extending the time limits to four hours or removing them altogether at the new meters doubled the year-over-year increase in gross revenue from about 20 percent in January through March 2011 (before time limits were extended at SFpark meters) to about 46 percent in May and June 2011 (after time limits were extended at SFpark meters). 3. New parking meters reduced parking citations. Parking meter-related citations dropped by 35 percent at the new meters compared to 2010, compared to a 21 percent drop at meters that were not upgraded. The combined revenue from meters and citations at the new meters was 3 percent lower than in 2010, compared to the meters that were not upgraded, which had a 14 percent decrease. The new meters shifted the ratio of revenue towards greater income from payment at the meter and less from citations. In 2010, at the old meters, 55 percent of revenue came from payment, with 45 percent from citations. In 2011, after the new meters were installed, 70 percent of revenue was from meter payment, with 30 percent from citations. 4. New parking meters and extended time limits did not significantly change parking behavior. During the analysis period, parking occupancy and length of stay did not change significantly in areas with new meters and longer time limits, even though meter revenue increased.

6 / PAGE 6 Meter Data Evaluation Methodology Meters included in the sample San Francisco uses two types of next-generation meters on its streets that accept credit cards. The first model is a single-space meter, similar in appearance to traditional parking meters, and the other model is a multi-space meter that manages several spaces from one machine. Both accept credit cards in addition to coins and the SFMTA parking card, and both immediately transmit transaction data back to the SFpark database. They are also both capable of being programmed remotely, and can charge different rates at different times of day. This report compares the performance of the older parking meters in the first six months of 2010 with the performance of the new meters at the same parking spaces in the first six months of This includes about 4,300 single-space meters and 55 multi-space meters that manage about 230 parking spaces. Not all new parking meters are included in the sample; some were installed in spaces that did not previously have parking meters, and others were installed after the start of the full six-month evaluation period. All of the parking spaces included in the sample meet the following criteria: Must have been previously covered by a MacKay single-space meter (which do not accept credit cards) for the entire period between January 1, 2010 to June 30, 2010 Must have been covered by a new meter that accepts credit cards for the entire period between January 1, 2011 and June 30, 2011 Must be in an SFpark pilot area Must be an automobile parking space (motorcycle parking is not included) Just under two-thirds of San Francisco s parking meters that accept credit cards meet all of the above criteria, for a total of about 4,513 total spaces (4,284 single-space IPS meters and 35 Duncan multi-space meters covering about 229 parking spaces). Revenue data for meters that were not upgraded is also included in many of the following sections for comparison to the new meters. In this report, IPS sample meters or single-space sample meters refer to the 4,284 spaces covered by IPS meters that meet all the criteria above. Duncan sample meters or multi-space sample meters refer to the 229 parking spaces covered by multi-space Duncan parking meters that meet all the criteria above. For both samples, year-over-year comparisons are based on comparison to the exact same parking spaces in the first half of 2010, which were then covered by MacKay single-space parking meters that did not accept credit cards. Taken together, the single-space sample meters and the multi-space sample meters comprise the full smart meter sample of 4,513 meters. All of the meters in the smart meter sample are SFpark meters, though some SFpark meters are not included in the sample. In addition, MacKay sample meters refer to the 16,032 spaces covered by older MacKay meters that were not upgraded in 2011 and did not have their time limits extended, and thus serve as a citywide control group. The MacKay sample meters do not accept credit cards.

7 / PAGE 7 Figure 1: Parking meters evaluated in this report New IPS parking meter New Duncan parking meter Older MacKay parking meter

8 / PAGE 8 Figure 2: SFpark pilot areas All of the next-generation meters evaluated in this report are located in the seven SFpark pilot areas, shown below.

9 / PAGE 9 Meter Revenue Overview Parking meters have lagged behind the rest of the world when it comes to ease of payment. Customers have been able to use credit cards to pay for just about anything for decades, but until recently, parking meters, particularly single-space meters, have only accepted coins and custom parking smart cards. One of the premises of SFpark is that by making it easier to pay for parking, next-generation meters will increase the amount of revenue the SFMTA collects at parking meters. At the old meters, when a customer parks, the amount of time they purchase is often limited by the number of quarters they have in their pocket or car. At smart meters, customers can easily pay for as much parking as they want using a credit card, including buffer time to reduce the possibility of receiving a citation. Until recently, drivers in San Francisco were also limited by short time limits at parking meters, which typically allowed people to pay for one or two hours. At SFpark meters, including all meters evaluated in this report, time limits have been extended to four hours or eliminated altogether because SFpark uses price to achieve availability goals instead of time limits. The limits were extended over the course of several weeks in mid-april 2011, midway through the six month evaluation period, allowing this report to analyze the revenue impacts of this change. Please note that all revenue figures refer to gross revenue (not including additional transaction costs the SFMTA pays) unless stated otherwise. Changes in overall revenue The year-over-year increase in revenue for the new meters evaluated in this report is significant. During the first six months of 2011, revenue at parking meters that were not upgraded to smart meters decreased by 7 percent, while new meters included in this evaluation had revenues 29 percent greater than the older meters that they replaced.

10 / PAGE 10 Chart 2: Change in gross parking meter revenue in first six months of 2010 and 2011: Smart meter sample and MacKay sample meters 60% 50% 40% 30% 20% 10% 0% MacKay sample Smart meter sample (gross) 10% 20% 30% January February March April May June Table 1: Average gross revenue per meter: Smart meter sample Average Revenue Per Meter Month Change January $133 $167 26% February $137 $166 21% March $167 $192 15% April $159 $194 22% May $152 $229 50% June $161 $228 42% TOTAL $909 $1,176 29%

11 / PAGE 11 Chart 3: Average gross revenue per meter: Smart meter sample $250 $200 $ $ $50 $0 January February March April May June On the whole, the old meters that were replaced by the next-generation meters were not unusual in their revenue performance prior to being upgraded. The MacKay meters that were later upgraded to smart meters averaged $152 in monthly revenue in the first six months of 2010, compared to the MacKay meters that were not upgraded, which averaged $131 during the period (a 16 percent difference). In the first six months of 2011, the MacKay sample meters decreased to $123, while the smart meter sample meters increased to $196 (59 percent higher than the MacKay sample average during that period). Changes in payment mode Today, about a quarter of San Francisco s meters accept credit cards, a change from early 2010 when customers could only pay with coins and SFMTA parking cards. The citywide average amount of credit card revenue per month has increased steadily throughout 2011, without reducing coin or parking card revenue in the process. Average credit card revenue nearly doubled between January and June, even as combined parking card and coin revenue held steady.

12 / PAGE 12 Table 2: Average revenue per meter by payment mode in 2011: Smart meter sample Month Credit Card Revenue Parking Card Coin Total January $68 $18 $80 $167 February $70 $17 $79 $166 March $82 $20 $90 $192 April $93 $20 $81 $194 May $128 $19 $82 $229 June $129 $20 $79 $228 Chart 4: Average revenue per meter by payment mode in 2011: Smart meter sample $140 $120 $100 $80 $60 Credit Card Parking Card Coin $40 $20 $0 January February March April May June At the next-generation meters that accept credit cards, credit card payments have captured the majority of payment by value: At smart meter sample meters, credit card payments accounted for 57 percent of revenue in June 2011.

13 / PAGE 13 Total average monthly revenue per meter at smart meter sample meters during the first half of 2011 grew from $167 to $228, entirely due to the growth in credit card revenue. Table 3: Share of revenue by payment mode in 2011: Smart meter sample Month Credit Card Revenue Parking Card Coin January 41% 11% 48% February 42% 10% 48% March 43% 10% 47% April 48% 10% 42% May 56% 8% 36% June 57% 9% 34% Chart 5: Share of revenue by payment mode in 2011: Smart meter sample 60% 50% 40% 30% 20% Credit Card Parking Card Coin 10% 0% January February March April May June As a result of the increase in average credit card payment size, credit cards grew as a share of payment mode at the smart meter sample meters (Table 3), but not through taking the existing market from coins or parking cards. This is further illustrated by the average transaction size for credit cards compared to

14 / PAGE 14 parking cards and coins: while credit cards averaged $4 or more by June 2011 at smart meter sample meters, coin transactions averaged well under $2. The introduction of credit cards seems to have enabled customers to pay for much more parking than they could in the past with coins: a customer can easily pay for $4 of parking with a credit card, but the equivalent payment in cash would require 16 quarters far more than most people have readily available. Changes in payment by area The revenue performance of the new parking meters is notably correlated to meter rates, with revenue at higher-rate areas increasing by larger percentages than revenue at lower-rate areas. The smart meter sample meters are spread across seven different neighborhoods, corresponding with SFpark s pilot areas. These are the Civic Center, Downtown, Fisherman s Wharf, the Marina, the Mission, and South Embarcadero. Table 4: Change in revenue by area in the first six months of 2010 and 2011: Smart meter sample Area Average Hourly Rate Year-overyear revenue growth Fillmore $2.00 9% Marina $2.00 7% Mission $2.00 7% Civic Center $ % Fisherman's Wharf $ % Downtown $ % South Embarcadero $ %

15 / PAGE 15 Chart 6: Change in revenue by area in the first six months of 2011 compared to 2010 (with average hourly rate in parentheses): Smart meter sample 80% 70% 60% 50% 40% 30% 20% 10% 0% Fillmore ($2.00) Marina ($2.00) Mission ($2.00) Civic Center ($2.65) Fisherman's Wharf ($2.99) Downtown ($3.45) South Embarcadero ($3.48) One possible explanation for the variance in meter revenue by rate area is that at meters with higher rates, customers are more likely to use their credit card and are therefore more able to add extra time to avoid a ticket. Previously, customers may not have had enough coins to add their desired cushion. This effect is especially strong with extended time limits, which allow customers to add even more cushion time. Effects of time limit changes In addition to installing new parking meters that make it easier to pay, the SFMTA extended the time limits for parking at all SFpark meters. Previously, most meters allowed people to park for just one or two hours. During the course of April 2011, time limits at all SFpark meters were either extended to four hours, or the time limit was removed altogether. Extending the time limits appears to be responsible for a large increase in revenue at these meters in the months after the change: In the first three months of 2011, prior to the extended time limits, revenue at the smart meter sample meters included in this evaluation increased by 26 percent in January, 21 percent in

16 / PAGE 16 February, and 15 percent in March, compared to the same months the previous year, before the installation of smart meters (see Table 1). In the two full months after time limits were extended, May and June, revenue at the smart meter sample meters increased by 50 percent and 42 percent respectively compared to 2010 (see Table 1). While the smart meters were already greatly outperforming their predecessors before time limits were extended, the time limit extension seems to have doubled the increase at the smart meter sample meters.

17 / PAGE 17 Chart 7: Number of transactions by payment mode in 2011: Smart meter sample 800, , , , , ,000 Coin Parking Card Credit Card 200, ,000 0 January February March April May June Chart 8: Average transaction size by payment mode in 2011: Smart meter sample $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Credit Card Parking Card Coin Total $1.00 $0.50 $0.00 January February March April May June

18 / PAGE 18 An analysis of the total number of transactions per month and the average transaction size reveals the following: The number of transactions stayed about the same at the new meters (Chart 7), but this was coupled with a large increase in the average transaction size (Chart 8). Credit cards payments grew faster as a share of total revenue at the new meters after the time limit change in April (Table 3). There are two likely explanations for the increase in transaction size: Extended time limits, in conjunction with the ability to pay with a credit card, may have eliminated some meter feeding. Instead of filling a meter with coins to their maximum amount every few hours, more customers may now be simply paying for all the time they want at once. The increase in overall parking revenue seen at the new meters after time limits were extended may also be the result of the same phenomenon discussed in the previous section: like the ability to pay with a credit card, extended time limits give customers more flexibility to err on the side of caution and pay for more time than they anticipate using, as opposed to coin transactions with shorter time limits, which restrict customers ability to pay for larger amounts of time. (Meters do not zero-out when customers overpay, however, so the next person to park at a space may not have to pay as much, since some time may remain on the meter. This would tend to reduce transaction sizes.) There is one more important consideration in evaluating the effect of extended time limits. When time limits were extended in April at new meters included in this evaluation, the default payment amount for credit cards was increased. Before April, the credit card default amount was $0.25, and customers could increase their purchase amount in $0.25 intervals. After April, the default credit card amount was set to two hours worth of parking, which varies in cost depending on the rate area. For instance, meters that charge $2 an hour were set to a default of $4, and meters that charge $3 an hour were set to a default of $6. Customers can still adjust the payment amount in $0.25 increments. It is likely that the default amount affected how much time customers chose to purchase, although it is not possible to separate out the effect of the changed default time from the effect of extended time limits, since they were rolled-out simultaneously.

19 / PAGE 19 Meter Costs Overview The new features of next-generation parking meters come with new costs. There are five primary ongoing fees associated with the new meters that the older meters do not have: a communications services fee (essentially a wireless data plan), a gateway fee for each credit card transaction, merchant fees and activity charges for credit card payment processing, and a licensing fee for the meter management system software associated with the new meters. This section evaluates how much of the revenue growth at the new meters was offset by these new fees. This does not include certain important factors, such as changes in maintenance cost and coin collection cost, since there is not adequate data available yet. Table 5: Ongoing Costs: IPS sample meters and Duncan sample meters Fee IPS Duncan Communications $24/year $420/year per services fees per meter meter MMS licensing fees $18/year per meter N/A (bundled with communications) Gateway fee $0.16 per transaction $0.06 per transaction Merchant fees Varies Varies Bank of America activity charges Varies Varies Some of these fees are fixed at a per-meter annual rate, and others are per-transaction (or a hybrid of both) (Table 5). Because some costs are fixed, the share of total revenue that goes towards fees declines as transaction sizes increase. In the following charts and tables, gross revenue refers to the total amount of revenue collected at the meters, and net revenue refers to revenue minus all of the costs described above (not including collection costs). None of the meters had these additional costs in the first half of 2010 (aside from collection costs), so this report does not distinguish gross revenue and net revenue for that period. This is also the case for the MacKay sample meters, which do not have additional costs (aside from collection).

20 / PAGE 20 Results The added costs associated with the next-generation meters considered in this evaluation are less than their additional revenue. Table 6: Gross and net revenue during the first six months of 2010 and 2011: Duncan sample meters and IPS sample meters IPS Sample Meters Revenue ($1,000s) Duncan Sample Meters Revenue ($1,000s) Combined Smart Meter Sample Meters Revenue ($1,000s) Month (gross) 2011 (net) (gross) 2011 (net) (gross) 2011 (net) January $576 $722 $666 $24 $31 $28 $600 $753 $694 February $592 $716 $660 $26 $33 $30 $618 $750 $690 March $725 $824 $760 $30 $44 $40 $755 $867 $801 April $687 $831 $769 $31 $45 $41 $718 $876 $811 May $660 $986 $925 $27 $47 $43 $687 $1,033 $969 June $696 $986 $925 $29 $41 $38 $726 $1,028 $962 Total $3,937 $5,065 $4,705 $167 $240 $220 $4,104 $5,308 $4,925 Table 7: Percent increase in gross and net revenue during the first six months of 2011 compared to 2010: Duncan sample meters and IPS sample meters IPS Sample Meters Gross Net Increase Increase Duncan Sample Meters Gross Net Increase Increase Combined Smart Meter Sample Gross Net Increase Increase Month January 25% 16% 28% 16% 26% 16% February 21% 11% 28% 16% 21% 12% March 14% 5% 45% 33% 15% 6% April 21% 12% 47% 35% 22% 13% May 50% 40% 70% 57% 50% 41% June 42% 33% 39% 28% 42% 33% Total 29% 20% 44% 31% 29% 20%

21 / PAGE 21 Chart 9: Change in total parking meter revenue (gross and net) in first six months of 2010 and 2011: MacKay sample meters and smart meter sample 60% MacKay sample Smart meter sample (gross) Smart Meter Sample (net) 50% 40% 30% 20% 10% 0% 10% 20% 30% January February March April May June At the IPS meters included in this evaluation (4,282 single-space meters): New fees were equivalent to about a third of the additional revenue the meters brought in compared to In total, the new fees associated with the IPS sample meters added up to $0.36 million in the first six months of 2011, while the total growth in revenue was $1.13 million during that period (Table 6). After fees, net revenue grew by 20 percent compared to 2010, before the smart meters were in place. In the two months after time limits were extended, IPS meter net revenue total revenue minus extra fees grew by 36 percent. At the Duncan meters included in this evaluation (covering 229 parking spaces): Fees were equivalent to about 28 percent of the increase in revenue. New fees totaled $20,406 during the first six months of 2011, and the total year-over-year increase in revenue was $72,871. After fees, net revenue grew by 31 percent. The higher share of fees at Duncan meters may be partially due to the much smaller fleet size.

22 / PAGE 22 Table 8: Net change in revenue per space in first six months of 2011 compared to first six months of 2010: Duncan sample meters and IPS sample meters Net increase in revenue per space Combined Month IPS sample meters Duncan sample meters smart meter sample January $21 $17 $21 February $16 $18 $16 March $8 $44 $10 April $19 $47 $21 May $62 $68 $62 June $53 $36 $52 Total $179 $229 $182 As Table 8 illustrates, the net increase in revenue per parking space over just half a year is sizeable $182 for the smart meter sample meters particularly after time limits were extended in mid-april. These results suggest that, while credit cards come with additional fees for the SFMTA, their additional revenue more than offset their costs. Enabling customers to pay with credit cards also enables them to purchase more time, which ultimately covers the extra fees and increases customer convenience and satisfaction.

23 / PAGE 23 Citations Overview One of the goals of SFpark is to make paying for parking more convenient and shift the share of parking revenue that comes from citations towards that from payment at the meter. After introducing meters that accept credit cards and coins, as well as extending parking time limits, citation issuance has decreased more at SFpark meters than the citywide average. Interpreting the citation data The citation data in this analysis presents information about the number and value of parking meterrelated citations issued, not the amount actually collected, since not all citations are paid in full. As a result, the actual share of revenue from citations is somewhat smaller than included here. It is also important to note that citation rates increased by $2 on April 1, For example, citations that used to be $53 increased to $55 and citations that used to be $63 increased to $65. Monthly citation revenue data was not readily available before March 2010, so this only affects one month of data, and has a relatively small impact compared to other factors. The multi-space sample meters are not included in this analysis because of their very small sample size (229 parking spaces) and the difficulty of determining citation location data for them. Results As anticipated, parking meter-related citations decreased once SFpark meters were installed, roughly in proportion to the net increase in revenue from payment at the meters. The net effect was a small drop in revenue (from meter payment plus citations) compared to the previous year. This compares very favorably, however, to meters that were not upgraded, which had a much larger decrease in total revenue (meter payments plus citations), despite a smaller decrease in citation revenue.

24 / PAGE 24 Table 9: Value of citations issued in March through June of 2010 and 2011: MacKay sample meters Citation Revenue Month Change March $1,786,913 $1,506,085-16% April $1,715,800 $872,080-49% May $1,469,855 $1,371,485-7% June $1,276,680 $1,163,195-9% Table 10: Net revenue per meter in March through June of 2010 and 2011, including citation revenue and regular revenue: MacKay sample meters Citation Value Per Meter Meter Revenue Total Revenue Per Meter (Payment and Citations) Change in Total Revenue Per Meter Month 2010 Citation Revenue 2011 Citation Revenue 2010 Meter Revenue 2011 Meter Revenue Total Revenue 2010 Total Revenue 2011 $ % March $111 $94 $145 $120 $256 $214 -$42-16% April $107 $54 $134 $123 $241 $177 -$64-27% May $92 $86 $131 $130 $223 $216 -$7-3% June $80 $73 $133 $127 $212 $199 -$13-6% Total $390 $306 $543 $500 $933 $807 -$126-14% Table 11: Value of citations issued in March through June of 2010 and 2011: IPS sample meters Citation Revenue Month Change March $627,550 $448,890-28% April $585,495 $258,460-56% May $543,450 $369,450-32% June $446,925 $356,505-20%

25 / PAGE 25 Table 12: Number of citations in the first six months of 2010 and 2011: IPS sample meters Number of Citations Month Change January 7,445 7,513 1% February 9,406 7,094-25% March 10,840 7,411-32% April 9,815 4,258-57% May 9,088 6,068-33% June 7,480 5,840-22% Table 13: Net revenue per meter in March through June of 2010 and 2011, including citation revenue and regular revenue: IPS sample meters Citation Value Per Meter Net Meter Revenue (after subtracting costs) Total Revenue Per Meter (payment and citations) Change in Total Revenue Per Meter Month 2010 Citation Revenue 2011 Citation Revenue 2010 Meter Revenue 2011 Meter Revenue Total Revenue 2010 Total Revenue 2011 $ % March $148 $106 $169 $178 $317 $283 -$34-11% April $138 $61 $160 $180 $298 $240 -$58-19% May $128 $87 $154 $216 $282 $303 $21 7% June $105 $84 $163 $216 $268 $300 $32 12% Total $519 $338 $646 $789 $1,165 $1,126 -$39-3% Overall revenue impacts: At the single-space SFpark meters, the average value of citations issued per meter decreased by 35 percent in early 2011 compared to the same period in 2010, before SFpark meters were installed. Factoring in the increased revenue from payment at the meter, net revenue was down by 3 percent at single-space SFpark meters. Despite the small net decrease in revenue, SFpark meters outperformed parking meters that were not upgraded, which had a smaller drop in the value of citations issued (21 percent) but also had a significant drop in revenue from payment at the meter, leading to a net revenue decrease of 14 percent.

26 / PAGE 26 Thus, while the city s older parking meters had a net decrease of 14 percent in revenue from payment at the meter and citations, the SFpark meters had a smaller decrease of 3 percent. Citation revenue has been decreasing at parking meters for the past several years, but it is not being offset by increased revenue from the meters themselves at the city s older meters. SFpark meters have also improved the ratio of revenue from payment at the meters versus citations: In March through June of 2010, before SFpark meters were installed, the ratio of revenue from payment at the meter was 55 percent at spaces that were eventually upgraded. Revenue from citations was 45 percent. In March through June 2011, after SFpark single-space meters were installed in those spaces, the ratio of revenue from payment at the meter increased to 70 percent, with 30 percent of revenue from citations. At meters that were not upgraded, the ratio of revenue from payment at the meter was 58 percent in March through June 2010 and increased to 62 percent in March through June While the ratio of payment to value of citations issued improved somewhat at meters that were not upgraded, the increase was much smaller than at SFpark meters, and was mostly due to a decrease in citations, without a corresponding increase in revenue from payment at the meter. Effects of extending time limits: With only two months of data available before and after the change, respectively, it is difficult to draw conclusions, but from the limited data available, extending time limits appears to increase revenue from payment at the meter without decreasing citations. As Table 11 and Table 12 illustrate, extending the time limits at SFpark meters does not seem to have decreased citations. There is significant variability in the number and size of citations written, but little evidence that extending time limits in late April 2011 led to a decrease in citations in the following two months. As a result, net revenue from citations and payment at the meter at the single-space SFpark meters was about 10 percent higher in these two months than it was in the previous year. While metered spaces that were upgraded to SFpark meters had a greater decrease in value of citations issued than the city s older meters did between 2010 and 2011 (35 percent versus 21 percent), it is impossible to determine how much of the difference is due to the new meters, and how much is attributable to other factors, including meter location.

27 / PAGE 27 Table 14: Value of citations issued by area in March-June 2010 and 2011: IPS sample meters Average Citation Total Value of Citations Issued Value per Meter Area (and hourly rate) Meter Count % Change Area 1: Downtown ($3.50) 1,573 $699,925 $541,580-23% $445 $344 Area 2: Downtown Periphery ($3.00) 362 $137,658 $78,170-43% $380 $216 Area 3: Neighborhoods ($2.00) 1,848 $1,041,710 $665,645-36% $564 $360 Area 4: Fisherman's Wharf ($3.50) 461 $323,140 $146,855-55% $701 $319 Total 4,244 $2,202,433 $1,432,250-35% $519 $337 Table 15: Value of citations issued by area in March-June 2010 and 2011: MacKay sample meters Average Citation Total Value of Citations Issued Revenue per Meter Area (and hourly rate) Meter Count % Change Area 1: Downtown ($3.50) 2,185 $1,236,051 $914,680-26% $566 $419 Area 2: Downtown Periphery ($3.00) 2,841 $973,047 $820,960-16% $343 $289 Area 3: Neighborhoods ($2.00) 11,006 $4,040,150 $3,177,205-21% $367 $289 Total 16,032 $6,249,248 $4,912,845-21% $390 $306 Further examination of the citation data by area reveals some surprising results at the new meters. At meters that were not upgraded, citation value declined relatively evenly at all rate areas (see Table 15). Downtown meters had the largest decrease in citation value, while citations at the neighborhood main streets declined somewhat less. The patterns at SFpark meters are notably different: high-rate meters in Downtown actually had a smaller drop in citation value than downtown meters that were not upgraded (23 percent versus 26 percent), while neighborhood meters posted a sharper drop (36 percent) (see Table 15). The new meters downtown not only had the largest gains in payment revenue, they also had less precipitous drops in citation value, suggesting that SFpark meters did not necessarily cause an additional decline in citations despite bringing in additional payment revenue. The new meters seem to have had a more direct impact on citations at Fisherman s Wharf, which used to have the highest value of citations issued per meter in the city. At those meters, revenue from payment at the meter increased by 40 percent, but value of citations issued decreased by 55 percent. The introduction of the new meters seems to have aided visitors in complying with the rules, ultimately

28 / PAGE 28 generating roughly the same net revenue as the previous year. It is likely that by making it easier for visitors to pay for parking, the SFMTA has made it much easier for visitors to avoid parking tickets, and thus improve their overall experience in San Francisco. Many other types of parking-related citations across the city have decreased in the past several years, for reasons that are not fully known, in some cases by even larger percentages than the drop at SFpark meters. Clearly, additional undetermined factors are involved. This warrants further examination in the future. The SFMTA Enforcement Division reports that enforcement levels and deployment patterns were roughly the same between 2010 and 2011, so changes in enforcement patterns do not appear to be a significant factor in this citywide drop in citations.

29 / PAGE 29 Occupancy Overview The SFMTA began collecting occupancy data at metered parking spaces in SFpark pilot areas in early 2011, using electronic sensors installed in the pavement. Occupancy data is not available for 2010, so it is not possible to compare occupancy at the new meters to the previous year, before the new meters were installed. However, this data can be used to analyze the impacts of extending time limits at SFpark meters during April There are also two neighborhoods that have parking sensors but still have older meters: the Inner Richmond and West Portal. Time limits were not extended at these meters, so they serve as an occupancy data control group to the SFpark meters. The before period includes weekdays from February 10, 2011 to March 31, The after period includes weekdays from May 1, 2011 to June 30, This evaluation is preliminary and does not take into account other factors, such as possible seasonal variations in parking demand, which later analysis will evaluate. Results Preliminary occupancy data reveals that: Overall occupancy at single-space parking meters that accept credit cards increased by about 5 percent after time limits were extended, while overall occupancy increased by less than 1 percent at West Portal and Inner Richmond meters, where time limits were not extended. After time limits were extended, a larger share of parking sessions lasted more than an hour. At meters that switched to no time limits and meters that switched to four-hour time limits, the average share of parking sessions of more than four hours increased by about the same amount. The increase in parking occupancy after time limits were extended at single-space nextgeneration meters (5 percent) was much smaller than increase in gross revenue, which was about 25 percent (in addition to the increase in revenue that accompanied the installation of meters that accept credit cards). Table 20: Change in share of parking sessions by length of stay before and after time limit change: IPS sample meters and control meters Average Length of Stay Singe-space meters: 4 hours Singe-space meters: No limit Control Meters <1 hour -3.7% -1.9% -1.7% 1-2 hours 1.2% 0.1% 0.7% 2-4 hours 1.3% 0.4% 0.5% 4-8 hours 0.6% 0.8% 0.2% 8+ hours 0.5% 0.5% 0.2%

30 / PAGE 30 Table 21: Average occupancy before and after time limit change New Time Limit Before After 4 hours 61% 66% No Limit 59% 64% Control (No change) 70% 71% These results suggest that extended time limits may have increased overall occupancy and parking session lengths slightly.

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