On February 8th, Chicago Mayor Richard M. Daley announced a plan to outsource meter management to a private firm that would use congestion pricing mechanisms by altering rates to coincide with the times of day when there is peak parking demand.
The following article is
a collaboration of MPC Associates Emily Tapia and Karin
Sommer.
On February 8th, Chicago Mayor Richard M. Daley announced
that he is considering a plan to significantly change public parking in the
city. A major component of the plan
involves installing digital machines at the city’s 36,161 metered spaces. This technological upgrade would allow
motorists to pay for parking using their cell phones and credit or debit cards,
as well as give the city more dynamic control over the pricing of meter
rates. The proposal to outsource meter management to
a private firm suggests that vendors explore congestion pricing mechanisms by
altering rates to coincide with the times of day when there is peak parking
demand.
Congestion pricing is a tool that is
gaining popularity across the country and world as a way to ease traffic
gridlock. The tenet behind
congestion pricing is simple: increase costs for service when there is the
greatest demand to encourage users to seek alternatives. For automobile travel, congestion
pricing often refers to charging drivers who use the most crowded roads at
rush-hour a higher fee than those who travel on alternate routes or during
non-peak periods.
Mayor Daley’s parking plan applies the concept of
congestion pricing to parking.
Motorists who park in heavily used areas – whether on the street or in
public garages - during times of high demand would be charged a higher
fee.
The
most successful congestions pricing proposals also incorporate improved
alternatives. For example, whenLondon first implemented cordon pricing for its
central area in 2002, it simultaneously increased transit service by adding
1,000 additional buses. Chicago could enhance its proposal by
increasing transit service.
Implementing a form of congestion pricing for
parking in Chicago will contribute to a healthier city and
produce benefits beyond congestion reduction. For those with no other option than to
drive, congestion pricing means fewer cars on the road and a faster commute
time. With traffic moving faster,
city bus service is able to move more efficiently, easing the commute time for
transit users. Environmentally,
congestion pricing results in cleaner air and lower fuel consumption of gas, as
cars do not spend as much time idling in traffic or circling the block for
parking.
Responses to the city’s Request for Qualifications are due March
14 and will be followed by a second round to select a high-bidder. The city anticipates closing the deal in
the third-quarter of this year.