April 29, 1999
To:Audit Committee
From:City Auditor
Subject:Thefts From Parking Meters
Recommendations:
It is recommended that this report be received for information.
Background:
At its meeting of March 1, 1999, the Audit Committee requested the City Auditor to review,
with the appropriate parties, the issue of loss of revenue because of theft from parking meters
and report thereon to the Audit Committee.
Comments:
Council, at its meeting of July 29, 30, and 31, 1998, delegated the maintenance, operation and
management of all City off-street municipal and on-street metered parking facilities to the
Toronto Parking Authority (TPA). With this delegation implemented, TPA is now responsible
for some 15,000 on-street metered parking spaces.
Upon assumption of the on-street metered parking operations in 1998, staff of TPA performed
analyses highlighting revenue losses primarily in the downtown core of the former City of
Toronto. After investigating several possible causes for these losses, it was discovered that the
problem was most evident in the downtown core. With approximately 4,000 parking meters,
most of which were outdated, it was determined that meters were being broken into and the
cash stolen or the meters were being jammed. This tampering caused meters to be temporarily
inoperable causing a further loss of revenue. TPA responded to this problem in three ways.
First, it was determined that the best way to stop thefts from meters was to replace the old
meters with newer, more tamper resistant equipment. The necessary equipment was identified
and ordered in September of 1998 shortly after TPA took over the meter operations. In
addition, TPA, subject to receiving appropriate approvals, is upgrading equipment in general
to more "pay and display" machines which are even further tamper-resistant and result in
lower operating costs.
Second, while waiting for the new meters to arrive, TPA staff made more regular visits to
collect from, and repair as necessary, these older meters.
Thirdly, TPA reported the matter to the Toronto Police who, in conjunction with a private
security firm hired by TPA, monitored high risk meter routes hoping to apprehend individuals
responsible for meter tampering. This operation was extremely successful and approximately
one hundred individuals were charged with theft from the meters.
The first 1,500 new meters ordered in September 1998 were received and installed in high
volume parking revenue areas by the end of November 1998. The balance of the meter
replacement project is expected to be completed by the end of May 1998.
Staff of TPA continue to closely monitor revenues and have observed the changes in revenue
patterns expected as a result of the meter replacement program. Revenue monitoring will
continue to ensure that the anticipated results are achieved upon completion of the meter
replacement program.
As part of Audit Service's ongoing work plan, the City Auditor will review the revenue
analysis prepared by TPA staff and where appropriate, will suggest additional or revised
procedures with a view to improving revenue controls.
Conclusions:
TPA staff have responded effectively to the theft from meters problem and will continue to
monitor meter tampering on an ongoing basis. Staff are also in the process of implementing a
plan for equipment changes which should preempt the possibility of the meter theft problem
moving to different areas of the City in the future. The matter has been appropriately dealt
with at the TPA Board level where progress will continue to be monitored and action taken as
necessary.
Contact Name and Telephone Number:
Jerry Shaubel, Director of Audits, 392-8462
Jeffrey Griffiths
City Auditor
