Consumers are losing up to $36 on every parking meter card purchased, and could possibly lose up to $1.4M a month even as the parking rates remain higher than most in New York City – a city with an economy more than 517 times that of Guyana. The metered parking system, introduced by the Georgetown Mayor and City Council (M&CC) last year, is a simple one.

Between the hours of 07:00 hrs and 19:00 hrs, if drivers wish to park in any of the demarcated spots, they are required to purchase a parking meter card, which is then used to pay for parking via the parking meters.

The prices for the cards vary from $570 to $11,400. These prices are inclusive of the recently adjusted 14 per cent Value Added Tax (VAT). Finance Minister Winston Jordan on Monday said that VAT should not be charged on the cards. However, they are still being charged.

Meanwhile, the rate for parking is $50 for 15 minutes and an additional $8 (16 per cent of $50) for VAT – taking the total to GYD$58 for 15 minutes or $232 per hour.
But even though VAT has been reduced to 14 per cent, $8 (or 16 per cent) is still being charged.

A parking meter card purchased by Guyana Chronicle for $580 (on Monday) allowed for a maximum parking time of two hours since the value of the card was only $500. The two hours amounted to $464 (VAT inclusive).

NON-TRANSFERABLE 

And the balance? The $36 balance on the card could not be used due to the fact that it was not sufficient to purchase the minimum parking time – 15 minutes – nor was it transferrable. Similar cases would occur if the $5,700 or $11,400 cards were used; although the loss would be less.

Assuming an individual wishes to park for four hours a day, they would be losing $72 on their cards for that day, $360 a (five-day) week, and $1,440 a month. Should this be applied to 1000 drivers, it means that they would collectively be losing $1.4M per month.

This loss to consumers was acknowledged by Kit Nascimento, Consultant for Smart City Solutions (SCS) and National Parking Systems (NPS) – the private companies contracted by the Georgetown M&CC to manage and operate the parking meters. The companies receive 80 per cent of the total revenue generated from paid parking while the Council receives the remaining 20 per cent.

When asked if consumers would be losing money on the cards, Nascimento responded in the affirmative, reasoning that “it is standard operating procedures around the world”.

However, according to the New York City Government website, while there are several options to pay for parking, including the use of parking card as is the case in Guyana, payments with the card can be combined with coins to avoid wasting remaining balance on the card.

The website explains that, “This is helpful if a parking card has a very low value remaining” as it allows for the balance on the card to be fully utilised by being subsidised with the coins.
The website also details the hourly rates for parking in the five boroughs of NYC; the Bronx, Brooklyn, Queens, Staten Island and sections of Manhattan – all of which are US$1 per hour.

Current World Bank exchange rates indicate that this amounts to $206 per hour – $26 cheaper when compared to the rates in Georgetown.

Notable too, is the fact that NYC’s economy is more than 517 that of Guyana’s. Statistics from the City University of New York’s (CUNY’s) website show that NYC’s Gross Domestic Product (GDP) is US$1.6 trillion, while the World Bank has Guyana’s at US$3.1B.

But despite the rates being higher than those in a developed country, Nascimento explained that they were arrived at after extensive consultations. He said too that the rates are comparable to countries with similar GDP per capita, referencing “Mexico and Costa Rica.”

DIFFERENT STORY  
However, World Bank statistics show that the GDP per capita for Mexico is US$9,005 while Costa Rica’s is US$11,260. The international financial institution also has Guyana listed with a per capita GDP of only US$4,127 – the second lowest in this part of the hemisphere.

Similarly, the Gross National Income (GNI) per capita for the countries referenced by Nascimento, were US$10,400 for Costa Rica and US$9,710 for Mexico, while Guyana’s was US$4,090. These statistics were also retrieved from the World Bank’s website.

Earning an annual salary slightly above that range is Shondell Adams, who has been directly affected by the parking meters.

A driver, Shondell said that since the enforcement of metered parking, she has been forced to park some distance from her place of employ, to avoid having to pay what she described as a “hefty parking sum.”

The M&CC has begun charging drivers for metered parking and have been wheel-booting defaulting vehicles despite the parking meter by-laws not having been approved by Cabinet or published in the official Gazette.

“I don’t think it makes sense coming to work and then paying while you doing the Government work. It expensive because I tried it for the first few days and realise it ain’t make sense. I would got to spend like quarter of my salary to pay for parking a month. So what’s gonna happen to my bills and other commitments?” she questioned.

The mother of one said while she understands the need for City Hall to raise revenue to better manage its affairs, the way the Council went about introducing the meters was “wrong and inexcusable”, contending that the rates are “too high”. And Deputy Mayor of Georgetown, Sherod Duncan agrees with her.

TRANSPARENCY WANTING 
Duncan, who has protested the parking meter project, said while he is not opposed to the idea of having parking meters in the Capital City, he could not support this particular project, which, since its inception, lacked transparency.

According to him, the project could not be supported for several reasons, including the fact that the contract was signed outside of the purview of current Council, and it was never sent to tender.

After several of these issues surfaced, the Government requested both the Ministry of Finance and the Attorney General’s (AG) Chambers to examine the contract.

The Ministry of Finance’s review pointed out that if under the arrangements the tender and procurement procedures were breached, it was enough for Government to void the contract.

But Government has since said that it would only intervene if it is imperative, as they will not interfere in the affairs of an autonomous local government body.

Duncan added too that he could not support this project because parking fees must be “reflective of a minimum wage and a living wage”.

His claim of secrecy and lack of transparency regarding the projected has since been refuted by Mayor Patricia Chase-Greene – one of four Council members who was taken on a private trip to Mexico by SCS to observe the enforcement of metered parking in that country.

“It is my view that there is a group of individuals who wish to snatch this project and all of its benefits from the Council and the citizens for their own private enterprise and personal gain,” the Mayor has said. However, no figures have since been given with regards to how much revenue the project is likely to generate.

She charged too, that if any individual has evidence to suggest that there was any “underhand” dealing with regards to the project, then they should take same to the police.
But Duncan is not the only opposing force the Mayor has to deal with.

EMPTY SPOTS
Since becoming fully operational, citizens have rejected the metered parking system, with countless parking spots remaining vacant on a daily basis. This has even prompted Town Clerk Royston King to issue a statement asking citizens to support the initiative, which he believes will benefit the City.

Simultaneously, there is a “Say no to parking meters in Georgetown” movement calling for citizens to “starve the parking meters”. Several protests by this movement have been planned.

Additionally, an online petition introduced on Thursday has already received more than 300 signatures of citizens who reject the parking meters.

The petition states that most of the fines and measures which will be instituted, once the by-laws are approved, are “too high” in cost and have “unfair” penalties.

Should an individual fail to pay for parking while occupying a parking spot, his/her vehicle would be wheel-booted, and they will have two hours to pay a release fine of $8,000 + VAT.

If the individual tries to remove or interfere with the immobilisation device, that person could be fined $100,000 or spend three months in prison. After two hours of being immobilised, the vehicle would be towed and this would attract a towing fee of $12,000.

If the vehicle is damaged during this process, the individual will not be compensated by the M&CC. Impoundment fee is $7,000, and each day the vehicle remains impounded, an additional $7,000 will be charged.

Should an individual fail to pay these fines within 90 days, the M&CC can sell the vehicle at a public auction. Persons providing false or inaccurate names to wardens or City Constables run the risk of being placed before a magistrate and could be fined up to $50,000.