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ITEM NO: 4
Report To: EXECUTIVE CABINET
Date: 22 October 2014
Executive Member / Reporting Officer:
Councillor Peter Robinson – Executive Member (Land Use and Development)
Ian Saxon - Assistant Executive Director (Environmental Services)
Subject:
CAR PARKING CHARGES : REVIEW OF OPTIONS FOR CHARGING REGIME
Report Summary:
The report sets out the relationship between an affordable parking regime and economic activity, both for the trade and retail offer in town centres and the need for parking facilities throughout the rest of the Borough. It balances a variety of considered options for parking charges within the Borough, taking into account the recent closure of car parks and competition from other car park providers, whilst also recognising current income targets and projected outturns.
Recommendations:
To support the economic growth in town centres and to provide safe, high quality parking facilities across the Borough, Executive Cabinet is recommended to:
1. Approve the introduction of the following charging regime.
Up to half an hour parking £0.50 (unchanged)
Up to 3 hours parking £1.00
All day parking £2.00
2. Approve the introduction of pay and display parking at Stamford Street, Ashton (2 sites) and Mill Street and the market ground , Mossley, subject to relevant planning approval and the introduction of appropriate traffic regulation orders.
3. Approve that any changes within the maximum tariff range for pay and display car park charges as described in Appendix 1 (Current Car Park Tariffs by Zone) is taken via an Executive Decision and any increases to the maximum tariffs by a Key Decision, by the appropriate Executive Member.
Links to Community Strategy: Prosperous Tameside.
Attractive Tameside.
Supportive Tameside.
Policy Implications:
The issues discussed in this report could have a significant impact on the Council’s economic development policy, including;
Ashton Town Centre Redevelopment
Tameside Town Teams
Financial Implications:
(Authorised by the Borough Treasurer)
The report recommends the introduction of the following charging regime:
Up to half an hour parking £0.50 (unchanged)
Up to 3 hours parking £1.00
All day parking £2.00
This proposal will apply to all car parks in all Town centres, excluding any Car parks where the current charges are less, these charges will remain the same.
These changes are required in order to support economic growth within the borough and improve use of Town centres for businesses and the community.
The approximate projected income from the implementation of the proposed charges above is between £875k and £1.260k depending on the behaviour of car park users.
Any reductions to Pay & Display Charges will incur minimal costs for changes to machine and boards.
The introduction of any additional pay and display car parks, whilst having minimal set-up costs, will provide additional income for the Council.
Legal Implications:
(Authorised by the Borough Solicitor)
It is necessary to achieve an expedient balance between the relationship between car parking and the economic well-being of town centre economies and the income from pay and display parking and town centre activity. Other relevant considerations when considering the options are current pressures on Council budgets and the need to ensure that the car parks are not subsidised by the public in general. There are considerable costs relating to car parks which need to be covered including business rates, insurance and maintenance as well as enforcement costs.
Variations to Car Park charges may be made by notice under Section 35C of the Road Traffic Regulation Act 1984.
Risk Management:
It is important that the Council’s car park charging regime covers the costs of the service and are competitive with other service providers. In addition, consideration must be given to the wider economic impact of any proposed changes.
Appendix 5 to the report provides a detailed assessment of risk.
Access to Information: Any background papers or further information can be obtained from the report author, Alan Jackson, Head of Environmental Services (Highways), who can be contacted on:
Telephone: 0161 342 2818
e-mail: [email protected]
1. BACKGROUND 1.1 This report provides an update on the car parking facilities, charges and income across the
Borough. This follows the recommendations of Executive Cabinet on 8 November 2011 and subsequent reports to the Executive Board in January and June 2012, February 2013 and most recently 15 October 2015, which examined more closely the car parking charge levels.
1.2 Car parking charges and policy involve balancing the need for the Council to ensure the
provision of sufficient, high quality, safe, secure and affordable facilities that will provide the infrastructure to support both the shopping public and local traders and keep the roads free from congestion.
1.3 The Council recognises the relationship between car parking and the economic well-being
of town centre economies and the need to balance the income from pay and display parking and town centre activity.
1.4 Competition from free out of town and supermarket parking plus the availability of cheaper, private car parks in busy town centres must also be taken into consideration.
1.5 This report sets out the variety of options considered to encourage increased car parking on Council car parks (by reducing charges) and provide incentives for shoppers and traders to support economic growth within the Borough.
1.6 However, these options must also be considered alongside current pressures on Council budgets.
1.7 The following sections explore the relationship between car parking and town centre economic activity, the impact of car park closures on car parking ticket sales, the impact of competition from other providers, the speed of responsive by the Council to the prevailing economic climate and identifies a series of options for consideration.
1.8 Included in Appendix 1 is a breakdown of current car parking tariffs by zone and also
identifies each car park by zone. 2. SUPPORTING ECONOMIC GROWTH
2.1 One of the Council’s major drivers is to support economic growth. 2.2 Access to high quality, safe, secure and affordable car parking facilities plays a significant
role in supporting local economies. Feedback from Town Teams, Businesses and Shoppers 2.3 The issue of the level of car parking charges is an item constantly discussed in these
forums, with an overwhelming view that Council Car Park Charges are too expensive and stifling economic activity and growth.
Free Christmas Parking Offer 2.4 The Free Christmas Parking Offer has been warmly received by both the retail sector and
shoppers alike, although many would like the offer (Free parking in December) to be extended over a longer period.
3. OPPORTUNITIES TO SUPPORT ECONMIC ACTIVITY
Car Park Closures 3.1 One element of the Council’s long-term strategy for car parks is to explore the disposal of
identified car parks to support the greater economic good of the Borough. 3.2 With this in mind, the Council has taken the decision to close the following car parks for this
greater economic benefit:-
Camp Street, Ashton-under-Lyne Resiting of Tameside College and the redevelopment of the Town Centre.
Burlington Street, Ashton-under-Lyne
Cotton Street, Ashton-under-Lyne
Kynder Street, Denton
Transferred to New Charter Housing Trust for new homes build, attracting New Homes Bonus and increased Council Tax.
Hyde Multi-storey car park
(Beeley Street)
Demolition and sale of part of the car park bringing new business and jobs to support Hyde Town Centre.
3.3 The current re-development of Ashton Town Centre with the aim to stimulate economic
growth needs to be supported by the Council through its car parking offer. 3.4 These changes to the car parking offer, whilst resulting in a loss of ticket sales, have
provided the Council with the opportunity to review its charging policy to support both the town centre re-development and also to provide facilities for parking to support non-retail activity.
4 RECENT ACTIONS
New Car Parks 4.1 The introduction of car parks on Welbeck Street and Old Street Ashton whilst not in the
immediate town centre are mainly being used by visitors to the NHS building and staff, to which contract passes have been issued. This is part of the regeneration of the St Petersfield area also includes the building of a new multi storey car park.
Extension of Darnton Road Car Park 4.2 Works have been carried out to extend the number of spaces at the Darnton Road site.
This site, which is predominantly used by park users, hospital staff and visitors is on a separate zone (7) and is to be reviewed separately. Whilst an increase in charges may be considered recent publicity indicates that hospitals are charging too much and therefore we do not want to exceed any changes they may make.
Additional Car Parks 4.3 The Council also has the opportunity to introduce pay and display machines at additional
sites throughout the borough. 4.4 The new multi-storey car park at the St Petersfield development in Ashton (expected to be
in operation from February 2015 will provide parking for tenants currently occupying two car parks adjacent to Stamford Street West. These two sites will then become available for pay and display parking until they are developed according to the St Petersfield development plan. This can be achieved at minimal cost as they are currently in use as car parks with marked out bays, requiring only signing and the introduction of pay and display machines.
4.5 Similarly, pay and display car parking in Mossley at Mill Street and on the old market ground, which are both also marked with parking bays, could readily be introduced.
4.6 It is therefore recommended that the relevant planning approval and traffic regulation orders
are progressed to allow for the introduction of pay and display parking at these locations. 5. CURRENT SITUATION
Financial Projection
5.1 The current income target for car parking 2014/15 is £2,302,680, the current projected outturn as at quarter two revenue monitoring is £1,987,167, resulting in an anticipated under-recovery of car parking income of £315,513.
5.2 This takes into account both the pressures from car park closures and the recent actions above. However, the further influencing factor on the Council’s income is the impact of the competition from other car park providers.
Impact of Closure of Camp Street on Ashton Town Centre Parking
5.3 Following the closure of Camp Street car park it was expected that income at Henrietta
Street and Old Cross Street car parks would increase.
5.4 However, charges on these car parks are not competitive with other car parking facilities
within the town centre, with all day parking being offered from as little as £1 per day. 6 AVAILABLE OPTIONS Changes / Reduction in Tariffs 6.1 After listening to feedback on charges, a series of options and cost models have been
developed (summarised in Appendix 4) that will allow the Council to be more competitive (to regain market share) and also to provide an offer popular with both traders and shoppers.
6.2 Proposed new tariff levels are set out in Appendix 2 with financial models for these tariff
changes to provide up to half hour parking at 50p (unchanged); up to 3 hours parking for £1.00 and all-day parking for £2.00 are included in Appendix 3.
6.3 This modeling includes scenarios where the displaced ticket sales from closed car parks
are transferred to alternate Council car parks (from 0% to 100%). In addition, the model also demonstrates the impact of increases in overall ticket sales by 10% and 20%
6.4 This offer would provide an all year round option and not just for Christmas Improved Responsiveness to Economic Changes 6.5 Private Car Parks are quickly able to respond to the prevailing market trends and adjust
parking tariffs accordingly.
6.6 The Council has powers to vary charges on off-street parking places by making an order or by giving notice under Sections 35 and 35C of the Road Traffic Regulation Act 1984. In general, these powers have been utilised for the purpose of increasing parking charges.
6.7 Appendix 1 shows the current set tariffs for different parking zones and lengths of stay.
6.8 Working within these tariffs as maximum charges, the Council would be able to respond quickly to market forces by amending the charges both down and up, up to the maximum levels agreed.
6.9 This would require a minimum 21 days of advertising, both on the car park and in the
newspaper. 6.10 It is recommended that the approval for any changes within the maximum tariff range as
described in Appendix 1 (Current Car Park Tariffs by Zone) is taken via an Executive Decision and any increases to the maximum tariffs by a Key Decision, following appropriate consultation, by the relevant Executive Member.
7. EQUALITIES IMPACT
7.1 There is a current Equalities Impact Assessment for Car Parks already in place, which relates to drivers who are Blue Badge Holders.
7.2 Blue Badge Holders currently receive a further one hours parking in addition to time allocated by the tariff.
7.3 This will remain unchanged.
8. CONCLUSIONS 8.1 Car parking within town centres and adjacent to popular facilities provides the public with
access to shopping and other facilities and provides the foundation for economic activity. 8.2 In the current economic climate, trends have indicated that drivers are opting for cheaper
alternatives. Competition from other car park providers is starting to impact on the use of Council car parks.
8.3 With the development of Hyde Town Centre and the redevelopment of Ashton Town Centre
underway and associated closures of some town centre car parks, the Council has the opportunity to support the economic development, local traders and shoppers by delivering a car parking offer with tariffs that provide the balance between supporting this economic growth and income generated for the Council.
8.4 This is set against the Council’s current projected under-recovery of car parking income for
2014/15 (as reported at quarter two monitoring) is £315,513 against the Council’s target income of £2,302,680.
8.5 The Council needs to be able to react swiftly to respond to market forces and amend its
charges appropriately. 9. RECOMMENDATION 9.1 These are set out at the front of the report.
Appendix 1- Car Parking Tariffs and Zones
Car Park Zonal Bands
Zone Location Town
1 Henrietta Street Ashton Under Lyne
1 Church Street Ashton Under Lyne
1 Ashton Pool (Water Street) Ashton Under Lyne
1 Camp Street Ashton Under Lyne
1 Mulberry Street Ashton Under Lyne
1 Old Cross Street Ashton Under Lyne
2 Wimpole Street Ashton Under Lyne
2 Crown Street Ashton Under Lyne
2 Mill Lane Ashton Under Lyne
2 Union Street - Ashton Ashton Under Lyne
2 Cotton Street Ashton Under Lyne
2 Burlington Street* *(Part Open) Ashton Under Lyne
3 Beeley Street Hyde
3 Chapel Street Hyde
3 Clarendon Street Hyde
3 Cross Street Hyde
3 Grafton Street Hyde
3 Multi-Storey Hyde
3 Union Street Hyde
3 Water Street Hyde
3 Queen Street Denton
3 Kynder Street Denton
3 Castle Street Stalybridge
3 Melbourne Street Stalybridge
3 Rassbottom Street Stalybridge
3 Waterloo Road Stalybridge
4 Craven Street Droylsden
5 Greenside Lane Droylsden
6 Dukinfield Town Hall Dukinfield
6 Grafton Street Hyde
7 Darnton Road Ashton Under Lyne
8 Waterloo Road Stalybridge
Current Car Park Tariffs by Zone (£)
Up To
Zone ½ hr 1 hr 2 hr 3hr 4 hr All
Day
Sunday
(all
day)
1 0.50 N/A 1.80 2.50 N/A N/A 1.00/ 2.00
2 0.50 N/A 1.80 N/A 2.50 3.50 N/A
3 0.50 1.00 1.50 N/A 2.50 3.50 N/A
4 N/A 0.20 1.50 N/A 2.50 3.50 N/A
5 N/A N/A 0.20 2.00 N/A N/A N/A
6 N/A 0.20 N/A N/A 0.50 1.00 N/A
7 N/A N/A N/A 1.50 N/A 3.00 2.50
8 Contract Pass Only
9*
Appendix 2 (New & Proposed Tariffs)
Revised Car Park Tariff
Zone ½ hr
£ 1 hr
£ 2 hr
£ 3hr £
4hr £
All Day £
Sunday Sunday
£1 £2
1
0.50
1.00
1.00
1.00 -
-
1.00
1.00
2
0.50
1.00
1.00
1.00
1.00
2.00 -
-
3
0.50
1.00
1.00
1.00
1.00
2.00 -
-
4 -
0.20
1.00
1.00
1.00
2.00
-
-
5 -
-
0.20
1.00
-
-
-
-
6 -
0.20
-
-
0.50
1.00
-
-
7 -
-
-
1.50
-
3.00
-
-
8 Contract Pass Only
9* -
-
-
-
-
-
-
-
Changes to tariffs exclude Zone 7 Darnton Road, Ashton-under-Lyne
Appendix 3 : Projected Income (New Tariffs) versus Previous Income, Based on Percentage Changes in Ticket Sales
Income Difference
Up to 3 hr All day Total Up to 3 hr All day Total
Old Tariff Income £ 1,164,020.95 £ 191,470.88 £ 1,355,491.83
New Tariffs
Total (0% Transfer) £ 765,975.83 £ 109,336.17 £ 875,312.00 £ 398,045.12 £ 82,134.70 £ 480,179.82
Total (25% Transfer) £ 808,853.13 £ 110,705.38 £ 919,558.51 £ 355,167.82 £ 80,765.50 £ 435,933.32
Total (50% Transfer) £ 851,730.43 £ 112,074.59 £ 963,805.01 £ 312,290.52 £ 79,396.29 £ 391,686.81
Total (75% Transfer) £ 894,607.73 £ 113,443.79 £ 1,008,051.52 £ 269,413.22 £ 78,027.08 £ 347,440.31
Total (100% Transfer) £ 937,485.03 £ 114,813.00 £ 1,052,298.03 £ 226,535.93 £ 76,657.88 £ 303,193.80
Total + 10% increase £ 1,031,233.53 £ 126,294.30 £ 1,157,527.83 £ 132,787.42 £ 65,176.58 £ 197,964.00
Total + 20% increase £ 1,124,982.03 £ 137,775.60 £ 1,262,757.63 £ 39,038.92 £ 53,695.28 £ 92,734.19
The table above includes scenarios where ticket sales from closed car parks are transferred to other Council car parks at different percentage levels. The scenarios also cover an overall increase in ticket sales of 10% and 20%
Appendix 4 - OPTIONS CONSIDERED The Council has considered a variety of options in relation to Pay and Display parking
charges:
Do nothing. This would not be realistic as the likelihood is that usage will reduce.
Increase the car park tariffs. This, if ticket sales are maintained would generate additional income. However, an increase could have the opposite effect and dissuade members of the public from parking on Council car parks.
Consider if the Free Christmas Parking for Shoppers offer should be repeated.
Current signage to the car parks may be restricting the number of customers and improvements to signage may see increased usage. In particular Old Cross Street and Union Street need attention.
These are summarised in the table below, with a summary risks and mitigating actions in Appendix 5.
Options for Pay & Display Charges
Option Description Financial Impact
Required Actions / Comments
A Continue Free Xmas Parking Offer
-£17,500 None. All year offer
B Do Nothing Unknown None
C Reduce Pay & Display Charges Advertising – changes to machine tariffs *
C1 Charge £1 Union St (Ashton) car park on Saturday
-£1,650 Not recommended at present
C2 Change Sunday to £1 all day -£9,779 Not recommended at present
C3 Reduce evening charges to .50p -£18,400 Not recommended at present
C4 Introduce £1 for up to 3 hours -£39,039
to -£398,045
Recommended for approval -Ranges from 20% increase in total sales to worst case no transfer of ticket sales from closed car parks. See Appendix 3
C5 Introduce £2 for All Day Parking -£53,695
to -£82,135
C6 Remove charges at Dukinfield Town Hall
-£11,231 Not recommended at present
D1 Introduction of Pay & Display Machines at Mossley and St Petersfield sites
Generation of income
Planning approval, & advertising required
* Will incur minimal costs for changes to machine and boards
To implement any changes the Council would have to advertise the changes and consult with stakeholders. It would also have to consider any objections received before making the parking order, although any reduced tariffs would be unlikely to attract any objections.
Appendix 5 - RISKS
The potential risks are discussed in the table below, with an identification of the risks for the options above in Appendix 4.
Risks Associated with Pay & Display Charges Options
Any costs of this, via reduced income to the car parking service, should, in the overall grand scheme of economic development, be minimal.
Option (s)
Risk Seriousness of Consequences
Likelihood Mitigating Measures
A, B, Move is unpopular with motorists and businesses.
Medium High Advertising and contextual messages
B Change in Drivers behaviour – cheaper parking
Medium High Limited options to mitigate against this- Competitive reduced charges
B Change in Drivers behaviour - on street parking
Medium High Limited options to mitigate against this
B Change in Drivers behaviour alternative shopping trends
High High Limited options to mitigate against this -Competitive reduced charges
C Pay & Display Income falls
High High Limit any increase and monitor
D, Move is unpopular with motorists and businesses.
Medium High Advertising and contextual messages
A, B Loss of trade High High Changes to access Ashton Town Centre Development
A, B Loss of traders – businesses become unprofitable and re-locate
High High Town Teams Ashton Town Centre Development Competitive reduced charges
