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What’s this “variable rate pricing” all about?

(125th in a series of posts on parking)

So we said Council is going to consider two topics from the Bethlehem Parking Authority tonight at the Public Safety meeting:

1) increasing the parking fine structure

2) adopting variable rate pricing

We discussed the fines, now variable rate pricing.

Here’s the report on variable rate pricing prepared by the BPA consultant Kimley-Horn:

BPA Variable Rate Memorandum 8-28-19

Right now, Gadfly believes, the meter parking rate of $1.50/hr. is universal — all places, all times — throughout the City whether you are out on West Broad, in front of the Moravian Book Shop, or tasting a dainty at Lit.

Variable rate pricing —also known as demand-responsive pricing, or performance pricing—means setting curbside parking meter rates based on demand in a block or zone at a particular time of day. The goal is to make sure there are always a few open spaces per block and encourage people to park only as long as they need. Theoretically, this arrangement should enable more customers to shop or eat in a business district.

In other words, parking could be cheaper on West Broad than at the Moravian Book Shop or cheaper Tuesday morning at Lit than Friday night.

In other words, a parking space might be worth more on the 500 block of Main St. on a summer Friday evening than it would on a Tuesday morning.

In other words, the same parking space might even cost different prices at different times of the same day.

Get it?

The question is, should the Bethlehem Parking Authority adopt variable rate pricing?

This concept of variable rate parking entered Gadfly’s wordhouse before he was Gadfly, in the middle of 2018 when there was public discussion of the major parking study done by DESMAN for the Bethlehem Parking Authority.

As part of his approval of the increase of parking meter rates that went into effect January 1, 2019, the Mayor requested that the BPA “consider” variable rate pricing. The Mayor was responding to urging by some members of the public and of City Council in doing so.

The corollary and more basic question is, what current problem would variable rate pricing address?

Gadfly is not sure what that problem is.

Gadfly wishes that problem were identified, isolated, and presented for the consultant to specifically address in the report.

As is, we have a general report on variable rate pricing that is not specifically focused on any reason for the inquiry in the first place.

So Gadfly finds it hard to judge the consultant’s report, which does not recommend the City adopt VRP.

Gadfly remembers these things relevant to VRP from that 2018 public discussion:

That said, these sections of the consultant report stood out to Gadfly:

Without a specific problem to address, Gadfly is not sure how to judge the consultant’s conclusion that VRP is not recommended for us:

Based on our review of the Desman report and on our own research conducted as part of this project, Kimley-Horn does not believe that performance-based, dynamic, or progressive on-street parking rates should be implemented at this time. This opinion is based on the fact that curbside utilization is relatively low, there are no large concentrations of intense demand, current monthly and hourly rates are low and offer no variability between on-street and off-street transient rates, and the level of effort and cost required to collect the necessary performance data is prohibitive given the size of the BPA and its budget. The City and BPA could pilot test variable rates based on location and/or time of day for specific streets or blocks but significant surpluses on adjacent streets/blocks and within nearby off-street lots and garage would suggest that the increased rates would simply drive parkers to these other areas of lesser utilization.

Perhaps a pilot program?

Gadfly is just not sure where discussion of this issue will go with Council or if there is an issue here that we should be concerned about.

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