In the third and final section of his opus, The High Cost of Free Parking, UCLA Professor Donald Shoup identifies ways to overcome technological and political barriers in the way of charging market-priced rates for parking (we reviewed earlier sections of the work in MTR #s 505, 506 and 509).

   The first obstacle is relatively easy to address.  Shoup describes several new takes on the traditional parking meter, which was invented by a member of the Oklahoma City Chamber of Commerce in 1935.  Most American parking meters haven’t changed much in the 70 years since. But recent years have seen significant advances.

   Pay-and-display and pay-by-space meters are used in New York City, Aspen and Berkeley and differ from traditional meters in that they control multiple spaces. They also have the benefit of allowing cash, credit card, smart card and even cellphone payments. Personal in-vehicle meters, also employed by Aspen and in Arlington, VA, allow parkers to pay without stepping out of their cars.  Drivers key the appropriate parking zone, insert their parking smart card, and display the meter in the windshield.  Payment is deducted until the driver returns and switches off the meter.  In several European cities, drivers pay for parking with their cellphones by calling a city parking number and keying in license plate and parking zone (cell payment is also a popular way to pay London’s congestion charge). An in-vehicle transponder allows control officers to determine if the car is paying and parked legally.  The EU is also exploring using Global Positioning System satellites to pay for parking.

   Beyond their convenience, the principal advantages of modern payment methods is that parking rates can be adjusted to respond to demand.  During peak parking periods, rates can be adjusted upward to ensure a rough balance between supply and demand, reducing some trips and also cutting back on cruising for parking.

   Of course the bigger obstacle to charging for parking (evident in the recent tempest over NYC metered Sunday parking) is politics.  Resistance to increasing parking rates and putting a price on previously free parking is strong.  Shoup says it can be overcome via parking benefit districts. 

   Under such a plan, the district would receive some or all of parking revenue, rather than see it disappear into a city’s general fund coffers.  The district would use the funds for transportation and community improvements such as sidewalk cleaning, landscaping, storefront facades, bicycle and walking paths, etc.  The establishment of parking benefit districts helps make metered parking more palatable to curbside shop owners and residents.  Both groups can see a clear link between the coins deposited in parking meters and improvements in their districts.       

   Two southern California cities currently employ parking benefit districts: Old Pasadena and San Diego.  Old Pasadena’s Parking Meter Zone (PMZ) brought in $1.3 million in 2001 and helped transform a dying commercial district into a vibrant and popular destination for shoppers and diners.  The PMZ chair credits parking revenue for turning Old Pasadena around, saying, “This might seem silly to some people, but if not for our parking meters, it’s hard to imagine that we’d have the kind of success we’re enjoying.  They’ve made a huge difference.  At first it was a struggle to get people to agree with the meters.  But when we figured out that the money would stay here, that the money would be used to improve the amenities, it was an easy sell.”

   San Diego returns 45 percent of parking meter revenues (amounting to almost $2.2 million in 2002) to three Parking Meter Districts.  An Uptown District uses its funds to revitalize commercial streets, improve the walking environment, establish focal points for transit services and increase off-street parking. San Diego’s meters carry the mantra: “Small Change for Big Changes.”

   In residential areas, concerns about charging for curb parking can be ameliorated by giving residents the right to park for free.  In this way, only “outsiders” are paying for parking, and their contributions go toward improving the neighborhood. 

   NYC recently introduced new parking meters which accept pre-paid smart cards for payment. This makes parking more convenient. But unfortunately, peak premiums seem a distant prospect while NYCDOT promotes cheap and easy curb parking.  A new ad on its website invites Manhattan motoring: “Driving to the Theater District? Use On-Street Parking – Only $2.00 per hour.” 

   That said, Mayor Bloomberg, in announcing the new meters, noted that the new technology could allow DOT to one day charge variable, demand-driven parking rates.

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