FOR INFORMATION ONLY
BOROUGH OF POOLE
TRANSPORTATION ADVISORY GROUP – THURSDAY 31 JULY 2008
REPORT OF HEAD OF TRANSPORTATION SERVICES
MOBILE PHONE PARKING USING DEBIT AND CREDIT CARD
1. Purpose of Report and Policy Context
1.1 This report is for information and outlines the introduction of mobile phone parking using debit and credit card for a trial period of six months commencing on 1 August 2008 (or as soon as possible thereafter). The trial will allow the benefits to be evaluated ahead of a full procurement process.
1.2 The system will be introduced in car parks and on-street pay and display bays, excluding multi-storey car parks and those car parks that offer customers money back on parking i.e. supermarkets and Broadstone Storey Lane.
2. Recommendation
2.1 Members are asked to note that RingGo (Cobalt Telephone Technologies) will provide mobile phone parking using credit and debit card payments for a trial period of six months. Subject to the success of the trial then interested companies will be invited to tender for the permanent provision of this customer benefit on a two or three years contract.
3. Background
3.1 The pay and display machines in car parks and on-street currently only accept coins and do not accept payment by credit or debit card. Given the age of the existing pay and display machines, it is not possible to adapt the machines to accept a cashless option of payment. The pay and display machines are becoming increasingly unreliable and due for replacement in 18 – 24 months.
3.2 Providing customers the facility to pay for their parking by credit and debit card is considered to be a good customer benefit. The proposed RingGo system compliments the existing payment arrangements and can be put into place with little cost and effort. In addition to increasing options for customers, a cashless parking arrangement is also expected to bring about efficiency savings and an increase in car parking revenue.
3.3 RingGo mobile phone parking using credit and debit card is working successfully in the neighbouring authorities of Bournemouth and Christchurch. However introducing a trial in the Borough of Poole will allow the advantages of such a system to be determined more accurately and will allow the system to be operationally proven ahead of a full procurement process and the award of a 2 or 3 year contract.
3.4 RingGo is a leading supplier and award winning company of automated telephone transaction solutions. In addition to being the supplier of mobile phone parking for Bournemouth and Christchurch, RingGo also provides this technology in a number of parking authorities such as Portsmouth, Liverpool, Reading, Taunton and Oxford.
3.5 The set up and implementation takes between 3-4 weeks. In order to have this customer benefit in place for August, a decision on whether or not to proceed was required by 30 June 2008. The decision to proceed with the trial was taken jointly by the Portfolio Holder and Head of Transportation Services. An outline on how the system works is given in appendix 1.
4. Costs
4.1 Indicative costs are identified in the table below:
Set Up Costs
(one off cost) / £3000* / Bank accreditation, configuration of telephone number, training and project managementSignage / Free of charge / Notices for 82 machines will be required and supplied by the provider
Operational Costs:
Mobile phone call costs, software and rental / £1,950* for 6 months of the trial / 15 deployed CEOs each using a mobile phone. Mobile phone provided free of charge by RingGo
Annual Transaction Charges for credit and debit card use / £1,906 approximately for 6 months of the trial / Based on 5% of projected uptake (reference Bournemouth)
*Costs are exclusive of VAT and will be met from existing budgets.
4.2 A convenience charge of 20p per transaction is charged to the customer, which is payable to RingGo. The convenience charge is paid to RingGo through the Council’s monthly invoicing arrangements.
5. Financial Benefits
5.1 It is difficult to determine with any accuracy what the financial benefits might be of introducing this customer benefit. An increase in revenue may be derived through enhanced compliance, from top-up payments (to extend time) and reduction in ticket transfers. There may also be a reduction in cash handling inefficiencies and in losses associated with theft and out of order pay and display machines. Given the age of the existing machines and their increasing unreliability, the latter is particularly relevant since credit and debit card payments provides an alternative to payment by cash using the pay and display machines.
5.2 Borough of Bournemouth experienced a 4% switch from cash to cashless parking within 12 months of the system being implemented. However the uptake in the town car parks was higher at 10% and continues to rise.
5.3 The following table provides an outline of where an increase in revenue may be derived. Whether or not these expectations are realistic will be better determined following the introduction of the trial:
Greater Compliance. Research shows that motorists might have paid for additional parking if it had been easy to do so. / 0.25% of parking incomeTop-up Payments. Motorists are more likely to use the easier payment method to top up parking. / 1.5% of parking income
Transaction Value Uplift. Motorist are able to purchase time not limited by available cash in their pockets and will purchase more parking time than is needed. / 2% of parking income
Reduction of Transferred Tickets. It is not possible to transfer pay and display tickets from one motorist to another. / 0.25% of parking income
Total potential increased revenue / £38,000 pa based on 4% of income from the car parks and on-street machines identified as being in scope
6. Risks
6.1 It is possible that the up take of the system by customers is too small to justify the continuation of the service beyond the trial period. The result will be the loss of the set up costs and signage, which amount to £3000. Mobile phone rental, cost and software costs may also be lost on a pro rata basis.
6.2 RingGo may not be the preferred supplier of the service following a procurement process. If this should be the case, then the set up costs would be lost. Signage and telephone number are however transferrable to a new service provider.
6.3 The increased revenue expectations might take a number of years to realise as the system becomes established and the payment habits of the motorist change in preference for the cashless option of paying for parking. Increased compliance may also reduce the number of Penalty Charge Notices issued although it is difficult to determine the extent of this (if at all).
6.4 The results of the trial shall be presented to this Group and if considered to be beneficial it could then be recommended that procurement for the scheme on a permanent basis be progressed.
Julian McLaughlin
Head of Transportation Services
Name and Telephone Number of Officer contact:
Kay English (01202) 262150
TAG310708T3D
APPENDIX 1
HOW DOES THE SYSTEM WORK?
· The system is quick and easy to use, simple to enforce and provides good management reporting facilities. It is cost effective to implement and is supported by a helpdesk and call centre to quickly resolve any issues that may arise (the helpdesk and call centre are operational 24 hours of the day/365 days of the year). Boroughs of Bournemouth and Christchurch implemented RingGo after a lengthy review of alternatives and have provided good verbal references.
· The RingGo system offers a “turn up and go” service which is available on demand. It is tokenless and based on vehicle registration number. It is also “membership-lite” since unlike other systems available the motorist is not constrained by a membership obligation.
· Motorists will park as normal and have the option of paying for parking by credit or debit card using their mobile phone as an alternative to paying by cash. The customer will be notified of this alternative through clearly displayed signage, which will be branded Borough of Poole and quote a local 01202 number.
· All calls will be answered automatically at one of RingGo’s three UK data centres using voice-processing software. The system detects the calling line identity of the mobile phone, which acts as a unique identifier to prevent fraud and provide a fast track service. All major credit and debit cards are accepted in line with the Council’s requirement.
· Using speech recognition technology, the customer is asked to provide details of their vehicle such as colour, make and registration number.
The motorist will also be asked to specify parking time required and given an option for an SMS payment confirmation to be sent. The customer is asked for their credit and debit card information after confirmation of amount charged is given. The system captures vehicle and card information, which provides a fast tracking service for repeat customers. The transaction time is around 40 seconds. If the customer experiences any problems with the automated service there is a help line facility.
· Customers are able to check on their transactions by accessing the RingGo website, which includes the facility to download monthly statements and receipts including VAT information.
This is particularly beneficial for business parking users. It is reported that as many as 40% of all users of RingGo visit the web site.
· Customers will be able to extend their parking (subject to the maximum stay permitted) by simply calling the 01202 number and giving their vehicle registration number. Although it is a fully automated service, there is the option for customers to be connected to an agent if necessary.
· The Civil Enforcement Officers (CEOs) are able to check for paid parking using a mobile phone pre-loaded with specialised software to facilitate the system. The CEO will be able to use search facilities to download the vehicle registration number via GPRS. There is also the facility to call a “checkline” if in the unlikely event GPRS coverage is unavailable.
· If a vehicle is not displaying a pay and display ticket, then the CEO will enter the vehicle registration number using the normal touch-screen or keypad functionality on the phone. If a match is found then the duration of the paid parking is displayed.
· All parking transactions whether complete or incomplete are recorded and there is a full audit trail. This is particularly important should a Penalty Charge Notice (parking ticket) be issued for failing to pay for parking. Information relating to transactions may be used as evidence in an appeal.
· For reasons of security and probity monies collected through the mobile phone parking option are paid directly into the Borough of Poole bank account through a merchant service provider. In effect RingGo act as an agent processing funds.
PROMOTION
It is important that customers are aware of the option to pay for parking using their phone and credit/debit cards. This would be promoted by using a set of standard design heavy weight self-adhesive vinyl stickers and aluminium signs for post and wall mounting. The signage will be tailored for the Borough of Poole and will be in corporate style, colour etc.
It is also proposed that the local media be informed through the Council’s communication team to promote the implementation of the trial as a “good news story”.
CONSULTATION
Advice on the trial length and procurement process thereafter has been sought from the Council’s procurement officer.
Finance and audit have indicated their support and will work closely with RingGo to ensure a smooth implementation of the trial.
This customer benefit is likely to improve the town’s viability and tourism opportunities. For example easier parking for those using the beach car parks will encourage more visitors who may otherwise have visited Bournemouth because of the easier payment options for parking. The Town Centre manager supports this view.
REFERENCES
Good verbal references have been received from Oxford City Council who recently changed provider to RingGo and Borough of Christchurch.
The Parking Services Manager at Bournemouth also provided a written reference confirming that no major problems with the service had been encountered since implementation in 2006 and that the system had been a “big hit with customers”. It was also positively received by the local media.
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