World Square Carpark

Scope:

The scope of this report is limited to an analysis of the current operational state ofthe World Square Car Park. It atternpts to ascertain the most pressing problernsfacing car park operations and enteftain possible solutions. This report should betreated as an overview of areas of concern from which it is hoped furtherdiscussion can be ens.endered.

Security:

Analysis of security within the car park has raised the following concerns:

a) Pitt Street Entry & Exit:At present, the Pitt Street Entry & Exit is not under surveillance. Recent arremprsto have the floorwalker and night security maintain an increased presence at pittStreet, should to some extent deter vandalism or tailgating. However, maintainingan increased presence requires that staffbe pulled from other security duties.

Customers, especially passcard holders, are aware of the lack of videosurveillance at Pitt Street. This should be addressed. Installation of cameras at pittStreet would be costly, however it would provide the greatest level of securify anclavoid the theft of parking and arrest the continued damage of boom-gates apdmachines. As an altemative, fake cameras can be installed with abundant signageinforming patrons that Pitt Street is now security protected. This should providean increased deterrent at a minimum cost. However, this should be seen as a stop-gap solution and the future business plans of the car park should include full videosurveillance with a clear car registration number in view. Should any car tailgate,the ability to check on them can be made immediatelv

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b) Securit), Gap:On-site security currently consists of a non-security floorwalker from l0:00 am ro6:00pm and a professional security dog patrol from 7:30pm to 1:30am Sunday toThursday and 6:00am Saturday and Sunday. This presents a gap of at least onetnd a half-hours during which there is no security presence. It is becomingapparent that thieves are waiting until this time to break into vehicles. It isproposed that as the car park closes directly on 1:00am Sunday to Thursday andhas few patrons at 6:00arn weekends, that professional security hours be adjustedto give maximum exposure in times when a greater level of vehicles are present.By adjusting the Sunday to Thursday security times to 1:00am finish, and theFriday and Saturday times to a 04:00am finish, six and a half hours can be saved,which can contribute towards bridging the 6:00pm to 7:30pm weekday securitygap. The start time for Security could be brought forward to 6:30pm without theadditional expenditure outlay.

c) Communication:The present communication between the daytime floorwalker or night security anclthe pay station is inadequate. Should the paystation attendant require assistance in

emergency situations, where the safety of staff and patrons is threatened, or ifspecific tasks and problems need to be attended to promptly, eg. If the car parkequipment breaks down, the floorwalker or security guard is typically notcontactable unless they initiate the communication as a regular check-in. Mobilecommunication is not possible due to the car park structure.

This problem can be overcome if two walkie-talkies are issued, one for thepaystation and the other for the security staff on duty. This will ensure thatcommunication is always possible, The added bonus of issuing walkie-talkies isthat the location of the daytime floorwalker can be ascertained at any time bymanagement.

d) Pay Station:The motion detectors for the security alarm require refitting, especially since thenew office inner wall has been erected. Most of the pay station including theentrance and safe are in blindspots. Intruders as thus able to gain access withoutsetting off the alarm. This point requires immediate attention.

There is unused security monitoring equipment in pay-station - 2 Monitors; 1Computer; I Multiplexer.

The unused monitors can be used for security monitoring purposes. The extramonitors can be set to watch additional points in the carpark that can alert thepaystation attendant to possible breaches of car park security. This will result insavings to the car park through a reduced level of theft and damage.

e) Security Resister:Security on/off site register, detailing the times on and off premises, using ticketentry time & validation time. This measure will prevent over-billing by thesecurity company when guards arrive onsite. This register should be regularlycompared against the invoices from Security Company.

0 Lockout Reqister:Lockout registers to illustrate the number of lockouts being preformed and howmuch money is being taken. This will ensure the car park is getting theappropriate fees from the Security Company.

g) Alarm-Monitoring:A report should be requested from the Security Company detailing the activationand deactivation of the pay station alarm. This will allow management tocompare the actual arrival and departure times of staff and contractors, withtimesheet and billed times to ensure the car park is not being overbilled, billed forthe time.

Each of the following types of personnel should be given a separate alarm code,not known to the others:

1. Management.2. Pay Station Attendants.3. Cleaners.

4. Security Lockout Personnel.5. Service Contractors w-hen required.

This will allow for identification of when each type of personnel is onsite andanomalies will become readily apparent, enabling management to take actionwhen personnel are onsite at inappropriate times.

h) Locks:The Goulburn Street exit machines are open and unlockable. This presents a highrisk of theft and damage, as customers and others have access to the machines.

g) Exit Roller Shutter:The Goulburn Street exit roller shutter is unable to be closed, providing a readyentrance to patrons if they are locked out after-hours, allowing them to easilydamage the boomgates to get their vehicles out of the car park. This also leads to aloss ofrevenue from these parkers.

The open roller shutter also provides homeless people access to the carpark.

h) VideoTapes:Presently only one video tape is allocated to the car park security monitoring.This tape is recorded over continuously. Should an incident occur in the car parkon one day, or after hours, the evidence will be lost as the tape is recorded overagain. To alleviate these there needs to be one security video tape for each day ofthe week, and should be changed daily in the morning. This will preserve anyevidence and should better monitor problems in the car park.

Rates and Cltarges

The following suggestions are designed to increase the car park revenue byaddressing customer needs:

o Introducing an evening capped fee of $15.00, where the customer needs to bein after 6.00pm and out before the car park closes at 1:00am. A comparison ofthe rates charged by World Square's most direct competition, Wilson Parkingon Goulburn Street, reveals thata flat rate of $6.00 is charged for entry after5:00pm and exit prior to midnight. This represents a substantial discount topatrons compared to World Square's hourly rate that can reach a maximum of$35.50. Customers are only required to walk two more blocks westward alongGoulburn Street to take advantage of Wilson Parking's discounted rate.

However, World Square holds a unique competitive advantage over WilsonParking on Goulburn Street due to its proximity to Chinatown and GeorgeStreet. Presently the inconvenience to customers of the additional distance ofWilson Parking's location is mitigated by the large difference in price.Introducing a capped nightly rate of $15.00 will attract a large number ofcustomers, as the fee difference no longer negates the increased distance andinconvenience of Wilson's location.

Revenue and Volume

A study of the revenue and volume of parkers over the past six month period to30th June 2001 (detailed in attached appenclices) reveals areas where focussedmarketing and promotional efforts can be directed to increase customer volumesand thus total revenue.

It has been found that the average spend for a daytime weekday parker (Shift A)is $10.71. This figure falls within the third tier of parking fees and indicates thatdaytime customers are utilising World Square car park for shorter stays. Theintroduction of an Early Bird parking fee should go toward enticing customers tostay for longer periods.

Graphical evidence (Weekday Shift A Customer Volume Graph) indicates rhat asteady amount of customers are parking during the daytime, corresponding to astable revenue stream. weekday volumes average 250 parkers per day. Liftingof the Sydney City Council morning peak curfew should see a dramatic increasein the amount of daltime customers. The hours from 7:00am to 9:30amweekdays represent a significant customer base that is presently unavailable toWorld Square due to curfew restrictions.

A stronger variance in the volume of customers parking in the evenings is shownin the weekday shirt B Customer volume Graph. This graph indicates thatcustomer volumes are weekday dependent, and no steady pattern appears. Suchvariance calls for the need for a focussed marketing and promotional campaignto lure additional parkers. Initiatives such as imptemeniing a cappea Sls.oonightly after 6:00pm rate and forming strategic alliances with significant localbusinesses should achieve this soal.

Presently the average spends for an evening parker is $14.66. Setting the cappedrate above this figure should preserve the current levels of revenue, *hitrtattracting a significant new cusiomer segment to the car park.

Customer Service

To improve customer loyalty and satisfaction serious consideration should begiven to marketing prices and developing pricing policies that are mindful ofcustomer needs and perceptions. An example of which may be to allowcustomers a standard grace period of five minutes after an hour's conclusion.This will avoid heated customer complaints and dis-satisfaction, which may leadto their boycotting of the car park on future occasions.

Another possible consideration may be to introduce specials that meet specificcustomer needs, such as having a mid-week special on Tuesdays when cinemapatrons frequent the George St cinemas. Such initiatives go toward buildingclient-relations and ensuring continued business for the car park.

If attention is paid to what the customers want, more patrons will be attracted tothe car park, as World Square will be seen as addressing the needs of its clientele.

In an effort to attract a larger portion of all day or business customers anEarlyBird rate of $30 can be introduced. Customers would be required to enterthe car park before 10.30am and leave between 5.00pm and 7.00pnr. Thispoint will become especially important when the Morning peak Hour Curfewis lifted by Sydney City Council.

As an alternative to the weekend structure of flat rates and surcharges aWeekend Special of $12 for 12 hours can be introduced. This would begin at2:00am on Saturday and continue to l:00am Monday. customers who parkedlonger than 12 hours would be levied the rate twice. This measure ihouldattract a greater number of night and early hour parkers, who are levied the flatrate and surcharge for relatively short stays.

Change weekend Surcharge to $11.00 Flat Rate. To avoid confusion andcustomer dis-satisfaction it is proposed to change the weekend surcharge to aflat rate. Effectively the rate structure would remain unchanged as thesurcharge works as a flat rate at present. The reason for altering the wordingis to avoid the word Surcharge that has negative connotations in thecustomer's mind and prefer the term Flat Rate that implies a barsain ordiscount.

The signage would therefore read:

weekends - 2.00am saturday to 7.30am Saturday $r1.00 Flat Rate7.30am Saturday to 3.00am Sunday $12.00 Flat Rate3.00am Sunday to 8.30am Sunday $11.00 Flat Rate8.30am Sunday to 1.00am Monday $12.00 Flat Rate

This clearly defines the rates and charges to customers avoiding the confusionand complaints that presently exist.

Strategic AIIionces

Strategic alliances can be established with major local businesses such as theCapitol Theatre, Metro Theatre, Entertainment Centre, Local Restaurants andHotels (IBIS and Avillion).

A slight discount can be offered to the patrons of these venues in an effort toattract a greater number of customers. This can be done by selling parkingvouchers to these establishments who would then onsell them to their customers ata small profit. The benefit of issuing vouchers is that they are not alwaysredeemed, as some are always lost or misplaced, or expire past their term. Thisindicates a clear profit for the car park. Added to this is that the money for theparking is taken in bulk and in advance.

O th e r Reco m nre n datio ns :

a) Petition Council to Remove CurfewWith regard to the World Square Site Development Management Plan (Reference96125), it is noted that as of 1997 there were 37,000 parking spaces currently

available in the City of that only 2,000 of these spaces were subject to a curfewrestriction and World Square car park represents a significant number of thosesubject to morning peak hour curfew restrictions.

Lifting of the curfew by Council will allow for a marked increase in car parkrevenue, as more customers are able to access the car park. The car park ismissing out on a significant amount of revenue due to the continued presence ofthe curfew. It is recommended that the Sydney City Council be petitionedimmediately to lift the curfew and allow access to this revenue source.

Scltedule of Fees

This amended schedule of fees is designed to reduce customer confusion.

Schedule of FeesWEEKDAYS

(1:00am Monday to 2:00am Saturday)

0 - l H rI -2 Hrs2 - 3 H r s3 - 4 H r s4 - 5 H r s5 - 6 H r s6 - 7 H r s7+ Hrs

$4.s0$9.00

$ 13.s0$18.00$22.s0$29.00$35.50$42.00

Overnight Surcharge (l:00am to 9:30am)

WEEKENDS(2:00am Saturday to 1:00am Monday)

. 2.00am Saturday to 7.30am Saturday

. 7.30an Saturday to 3.00am Sunday

. 3.00am Sunday to 8.30am Sunday

. 8.30am Sunday to 1.00am Monday

Lost TicketPublic Holidays (8.3Oam to 1:00am)

$ 1 1 . 0 0

$11.00 Flat Rate$12.00 Flat Rate$11.00 Flat Rate$12.00 Flat Rate

$42.00 Flat Rate$12.00 Flat Rate

Hours of Operation

Monday to Thursday 9:30am to I:00amFriday 9:30am to Monday I:00am

(Open 24 Hrs Fri & SaQPublic Holidays 8:30am to 0I:00am

Price includes GST & State Parkins Levv

Sales will increase tremendously.

After World Square's retail and commercial site is fully functional car park ratesand charges should naturally be reassessed, but whilst the site is in its currentundeveloped status, business focus should be on luring a greater number of carpark patrons.

Appendix

l. combined weekday and weekend volume and sales Figues By shift2. Weekday Only Volume and Sales Figures By Shift3. Graphs:

a. Shift A WeekdaY Volumeb. Shift A WeekdaY Revenuec. Shift B WeekdaY Volumed. Shift B WeekdaY Revenue /

Key to Graphs and Tables

. Weekday figures appear in non shaded cells.

. Weekend figures appear in grey shaded cells.

. Red blocks indicate missing data.

. Figures in red indicate estimated values.

. Tolls and averages appear for each month and for the six months from l't

January 2001 to 30ft June 2001.

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