June 24, 1999

To:Budget Review Committee

From:President, Toronto Parking Authority

Subject:Proposed Changes to On-Street Meter Rates and hours of Operations to Harmonize Practices in the Seven Former Municipalities

Purpose:

This report will deal with the amendment to the rates, duration times and hours of operation of the on-street meter program throughout the City of Toronto. The recommended actions will establish an implementation framework for the city as a whole. At the request of an area Councillor, the Authority will review locations where special conditions may apply to determine if special meter rates or practices are justified.

Funding Sources, Financial Implications and Impact Statement:

At the present time the average hourly rate (excluding residential meters) is $0.83 per hour. When fully implemented at the target rate, the average hourly rate will be $1.41 per hour. At the first interim stage, the average will be $1.36 per hour.

Recommendations:

It is recommended that City Council:

1. Establish three basic meter rate zones. The zones will be designated A, B & C. The basic rate in Zone A will be $2.00 per hour; the basic rate in Zone B will be $1.50 per hour and the basic rate in Zone C will be $1.00 per hour.
2. All meters are to be set to operate from 08:00 to 21:00 from Monday to Saturday and from 13:00 to 21:00 on Sundays and holidays (except where peak period parking restrictions apply).
3. The maximum duration of stay will be set at 2 hours at all locations from 08:00 to 18:00 Monday to Saturday and three hours during evenings Monday to Saturday and from 13:00 to 21:00 Sundays and holidays.

Council Reference/Background History:

The recommended changes are representative of procedures and rates which were in effect in the former municipalities and have been synthesized as the "best practices" from the old cities. With respect to price, the recommended rate changes are within the rate setting framework that City Council delegated to the Authority at its meeting of July 29, 30, and 31, 1998. The rationale for these changes is described in detail below.

Comments and/or Discussion and/or Justification:

RATES:

The table below indicates the number of metered parking spaces and the rates charged within the six former municipalities at the time of amalgamation.

The former City of York utilized a single rate at all metered spaces. The former Cities of Scarborough and Etobicoke also essentially employed a single rate with a few high priced meters in Scarborough and some very low priced meters in Etobicoke utilized to control overnight parking. The majority of the metered spaces in the former Borough of East York were at a single rate, however, there were two higher priced areas. The former City of Toronto utilized two price zones with the higher priced zone in the central area. There were a few higher priced meters on Spadina Avenue. The former City of North York had the most highly targeted rates with three rates for three different types of commercial areas and a residential overnight rate. The three rates were applied to areas depending on their proximity to the City Centre, and the intensity of parking demand in the area.

As previously indicated, the rates and operating practices proposed are intended to reflect the best practices of the former municipalities. In selecting best practices to harmonize rates, the following additional principles were adhered to:

1. Equity:Similar areas should be treated in a similar manner. Each user within an area should receive similar treatment.
2. Simplicity:The rates should be easily communicated to the customers. The reason a specific rate was selected for an area should be easily understood.
3. Predictability:Users should be able with some reasonable certainty to predict the rates which will apply in the area they are intending to visit.
4. Affordability:Rates in an area should reflect the ability of the typical area patrons to pay and the underlying price structure for goods and services in an area. Where the Authority has off-street facilities in an area, the rates should reflect those in effect in the off-street lots.
5. Turnover:On-street spaces should be utilized for short duration parking activities consistent with providing enough time for the completion of a normal activity by the user.
6. Revenue:Revenue should be maximized so far as the revenue maximization is consistent with the above principles.

In addition to reviewing the rates within the seven former municipalities, rates at on-street meters

in other North American cities were reviewed to ensure that the proposed rates are within the normal

practices in other jurisdictions. The following table indicates the maximum rates that were in effect at meters in the various jurisdictions.

As may be seen, the maximum rate in Toronto is at or below those in effect in most other cities of comparable or somewhat smaller size.

The proposed rates and practices are intended to reflect two objectives. Firstly, to have rates which generally reflect the underlying economic activity in the area. Secondly, to be consistent as far as possible with the practices in the former municipalities. It was decided to have a range of rates rather than a single rate across the entire city. This approach was utilized in varying degrees in the former Cities of Toronto and North York, and also in the former Borough of York. Upon reviewing the urban structure of the city's commercial areas, it was determined that there are essentially three types of commercial districts. The first is characterized by high intensity, large scale commercial activity as the underlying land use. These would be areas defined as high density commercial areas or regional commerce centres in the Official Plans of the former municipalities. These areas are defined as Zone A. The remaining groups are in local or neighborhood commercial areas. These neighbourhood commercial areas may in turn be differentiated into high activity and low activity zones, or Zones B and C respectively. Zone B is characterized by extremely high utilization levels at the on-street meters with all meters being occupied for long periods of the day. Commercial space is characterized by high rents and low vacancy rates. The low activity zone is characterized by lower utilization levels with meter parking generally available at all but the busiest periods. The underlying retail strips or neighborhoods in Zone C tend to be characterized by lower levels of economic activity often with large format retail space and higher commercial vacancy rates.

The basic hourly meter rates of $2.00, $1.50 and $1.00 were selected for Zones A, B and C respectively. The Zone A price is consistent with the highest rate which was charged in the former City of Toronto and is at or below the highest rates in comparable North American cities. All of the meters recommended for inclusion in Zone A are in the former City of Toronto. The Zone C price of $1.00 per hour was selected based on the rate setting practices from the former City of York which had an effective meter programme with this as the minimum rate. The Zone B rate of $1.50 per hour represents an average of the Zone A and Zone C price, is consistent with the highest rates in effect in the former East York, and is equivalent to an update to the $1.25 rate which was in effect in the former City of North York. The $1.25 rate was last charged approximately three years ago and utilization levels at meters employing this rate have remained very high. Zones A and B are outlined on Maps 1 and 2 of this report. Map 1 indicates the zone boundaries in the Central Area of the City while Map 2 indicates the remainder of the city. Any meters not indicated on Maps 1 and 2 are defined as Zone C.

While these rate changes are seemingly large in some areas, they should be considered with regard to events of the last 10 years. The $2.00 rate will be almost totally restricted to meters in the Central Area of the former City of Toronto. These meters were last subject to a rate change in September of 1988. Due to inflation, the real rate at these meters has been declining since this time. In addition, changes to the Federal and Provincial Sales Tax laws have reduced the city's share of the meter revenue by a further 15% from its 1989 level. It should be noted that at time of this last rate change, TTC single ride fares were $1.05 and have, with the recently approved fare increase, risen to $2.10, which represents the same percentage change as is being recommended at the street meters.

HOURS OF OPERATION:

The overwhelming majority of on-street metered spaces in the former municipalities had a basic set of operating hours of from either 08:00 or 09:00 to 18:00 from Monday to Saturday with charges not applying in evenings or on Sundays. In addition, at least half of the metered locations had peak period restrictions which applied in either the morning or evening peak period or both. Of the approximately 1500 meters (10% of supply) which incorporated evening charges at amalgamation, about 500 were utilized in Etobicoke and North York to provide residential overnight parking. The remaining approximately 1000 were located in scattered location in the Central Area of the former City of Toronto, in the North York City Center and at a few of the busy retail strips in York.

Despite the fact that the practice of charging for the evening at on-street meters was not widespread in the former municipalities, it is being recommended that this become the standard procedure. The exclusion of the evening hours, historically, reflects the fact that meter operations have not evolved at the same pace as commercial business practices. In the past, the city's commercial areas were only active in the daytime. This is no longer the case as many of the city's retail/commercial areas have become strongly oriented towards nighttime activity with the lengthening of retail operating hours, and the expansion of restaurant and entertainment activity. It should be noted that all of the off-street carparks operated by the Authority incorporate evening operating hours and these facilities experience extremely high usage levels in many areas. Council recently agreed to extended operating hours within the Greektown B.I.A. with the support of the local business community.

DURATION OF STAY:

Maximum allowable duration of stay within the former municipalities varied from allowing a one-hour maximum (Toronto, York) to allowing a two-hour maximum (North York, Etobicoke, Scarborough) or a mix of the two (East York). The table below indicates the regulations which were in effect in the former municipalities.

It was determined to implement a two hour maximum duration of stay at all locations. This approach was selected for two reasons. Firstly, the practice is in place at many locations already and has proven to be effective in accommodating slightly longer trips without substantially reducing turnover. Many trips such as medical appointments while short term, cannot usually be accommodated by a one hour duration. Secondly, extending duration and stay resolves the problem of accepting two dollar coins. Given the proposed meter rates, a two hour duration would be equivalent to a $2.00 payment at the least expensive meter. Therefore, the patron would be purchasing time for all of the coin tendered. The practice of accepting $2.00 coins, but only allowing $1.00 of parking has been a particular concern within the former City of York. Shorter duration meters may be installed at particular locations on a case by case basis where warranted.

STAGING OF IMPLEMENTATION:

In many cases, the proposed rate increases represent very large increases to the rates. For example, in the high activity retail strips in the former City of Toronto such as Bloor West Village and north Yonge Street the existing rates are $0.50 per hour, and the proposed rates are $1.50 per hour. Therefore, it is proposed that in no circumstance a rate increase of more than 100% be implemented, and that where rates are changed at this time, no further change be implemented without further review of the impact of the first charge, and that in no event a second rate change be undertaken sooner than one year following the first. Due to boundary issues in some locations, it is being proposed that no rate changes be implemented at this time despite the fact that the 100% threshold would not be breached. For example, on Eglinton Avenue West, between Bathurst Street and the Allen Expressway, rates are $1.00 per hour on the south side and $0.50 per hour on the north side. Therefore, it is proposed that the north side be equalized with the south side at this time and that any further increase for the south side be delayed. Where these boundary issues exist, they will be addressed as the detailed changes to the by-law schedules are processed (refer to implementation section below).

IMPLEMENTATION:

The implementation of the proposed amendments will entail three specific actions to be undertaken:

1. Amendments to the by-law schedules. The implementation of changes to hours of operation, rates and durations of stay will require the amendment of hundreds of entries in the schedules to the various by-laws of the seven former municipalities. (These by-laws have not been consolidated at this time). These amendments will be brought forward on the Council Order Paper as they are prepared.
2. The meter equipment will need to be reprogrammed to calculate the new rates and hours of operation. As this will entail the reprogramming of approximately 15,000 individual mechanisms, the implementation will occur four to six weeks to implement change over a period of several months based on labour force capacities.
3. In most areas, the signage on the street will need to be changed to reflect the new regulations. The changes to the street signage will need to be co-ordinated with the City's Transportation Department.

The above three tasks will need to be co-ordinated and an implementation schedule developed. It will require approximately two months to prepare the amended schedules to the by-laws once Council approval for the generic rate zones presented in this report has been obtained. Therefore, if this report is adopted at the July 1999 Council meeting, the amended by-law schedules would be available for Council's first fall meeting. Once the by-law amendments have been adopted, it will take approximately six weeks to physically alter the meter mechanisms and adjust the on-street signage. This schedule has been prepared with the assistance of the Transportation Department and the City Solicitor's office. Any delays to the approvals will cause a subsequent delay to the implementation process.

SPECIAL PRACTICES

This report recommends an overall framework for the implementation of meter rates and practices for the City as a whole based on the nature of the underlying land use and commercial activity in the various zones. However, within these overall zones there may be localized conditions that require special practices to be implemented. These would include requirements for short term (15 minute) meters in loading zones, and relaxation of charges in the vicinity of community centres, etc., at off-peak times. These types of practices will be adopted as amendments to the blanket regulations in consultation with the local ward Councillors as the need for these arise.

Financial Implications

The average hourly rate at existing parking meters is $0.83 per hour. Following the full implementation of the first set of rate changes, the average hourly rate will rise to $1.36 per hour. At full implementation of the target rates for Zones A, B, and C, the average hourly rate will reach $1.41 per hour. Following full implementation of rate changes, the on-street meter operations should generate annual revenues of about $18,000,000 annually as compared to the current $12,000,000 (estimated). It is felt that this number has the potential of increasing as the Authority continues to improve its operations and maintenance practices, and continues to upgrade the on-street technology. Approximately half of the additional revenue will be due to rate increases and half to the extended operating hours.

Conclusions:

The changes to rates and hours of operation at on-street meters recommended in this report will harmonize meter operations across the seven former municipalities. The rates and practices recommended represent a compendium of best practices from the former municipalities and are consistent with meter operations in other North American cities of comparable size. The rates being recommended for implementation will still result in reasonably priced parking, and represent, in many cases, adjustments that reflect real changes to prices over the past ten years and a pass through of Federal and Provincial tax changes.

Contact Names:

Maurice J. Anderson

President

Telephone:(416)393-7276

Facsimile:(416)393-7352

Nick Spensieri

Director, On-Street Operations

Telephone:(416)393-7288

Facsimile:(416)393-7352

Ian Maher

Director, Planning & Analysis

Telephone:(416)393-7291

Facsimile:(416)393-7352

______________________________

Maurice J. Anderson, President

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Attach.

File: June99\budgetrev(report)council