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25 Case Study #3: ‘Just Right’ Pricing – Redwood City, California In Redwood City, California, the city sets meter rates to achieve an 85 percent occupancy rate for curb parking downtown; the rates differ by location and time of day, depending on demand. The city returns the revenue for added public services in the metered district, and downtown Redwood City will receive an extra $1 million a year to pay for increased police protection and clean sidewalks. The merchants and property owners all supported the new policy when they learned the meter revenue would pay for added public services in the downtown business district, and the city council adopted it unanimously. Performance-based prices create a few curb vacancies so visitors can easily find a space, the added meter revenue pays to improve public services, and these public services create political support for the performance-based prices. Most cities keep their meter rates constant throughout the day and let occupancy rates vary in response to demand. Instead, cities can charge different prices at different times of day to keep occupancy at about 85 percent. In Redwood City, the meter rates are higher in the central spaces because demand is higher there. The goal is to balance supply and demand everywhere, all the time. Most cities also limit the length of stay at meters so long-term parkers won’t monopolize the under- priced curb spaces. After Redwood City adjusted meter rates to guarantee the availability of curb spaces, it removed the time limits at meters. This unlimited-time policy has turned out to be popular with some drivers, who can now park for as long as they are willing to pay. The demand-determined meter rates create turnover at convenient curb spaces, and most long-term parkers tend to choose cheaper spaces in off-street lots. Source: adapted slightly from Donald Shoup, ‘Cruising for Parking’, in Access, No. 30 (Spring 2007), pp. 16-22 Case Study #4: Downtown Ann Arbor ‘go!pass’ Working in conjunction with the Ann Arbor Area Chamber of Commerce, the City of Ann Arbor, and the Downtown Development Authority (DDA), the Ann Arbor Transportation Authority (AATA) introduced the go!pass in 1999. It is an unlimited usage transit pass available to all employees within the DDA boundaries. The program is designed to alleviate traffic and parking congestion downtown by encouraging employees to choose alternatives to commuting by single-occupancy vehicle. The pass is free to employees, and participation in the program by businesses is voluntary. The go!pass was completely funded by the City of Ann Arbor and the DDA for the first two years. Beginning in the third year, employers must pay $5 annually per worker for all full-time firm employees in order to participate (participation by part-time employees is optional). The remaining balance is paid for by the DDA. Average weekday use of the go!pass is around 1,100 boardings; a study estimated that this saves roughly 112 car trips into the downtown per day. This estimate is down considerably from 2001 because the number of passes in circulation dropped when individual firms began to be charged for the go!pass. The go!pass enjoys a high degree of employee recognition, and half of the go!pass holders indicated that the pass is an important benefit of their job. The value of the go!pass extends beyond the car trips that it saves. Employees value the pass beyond its actual use; it seems that its availability as an option – even if just for occasional or backup use – is appreciated. Nearly 85% of employees who have received the pass have used it at least once. For employers, the pass provides a way to improve employee accessibility to their location; this would hold particularly true for employers who rely on non-driving employees. Source: “Evaluation of getDowntown go!pass program” , November 2005 – Prepared for the getDowntown Program by the Urban and Regional Research Collaborative at The University of Michigan