1. British Parking Association Model Contract East Herts Council June 2010

2. BPA Model Contract Our Vision “We hope that within 3-5 years all UK local authorities using private contractors will also use the model contract. “By standardising contracts, we can help boost confidence in parking enforcement. By offering quality measurement, we hope that the private parking enforcement industry can be seen as part of the parking solution, not the problem. “Better training and the new model contract should lay to rest the criticism that decriminalised parking is more about collecting revenue than controlling parking.” Keith Banbury, Chief Executive, BPA (April 2005)

3. House of Commons Transport Select Committee Report

4. Traffic Management Act 2004 Guidance The Secretary of State recommends that enforcement authorities use a balanced SLA or model contract, such as the one developed by the British Parking Association.

5. BPA Model Contract Contract Overview focuses on qualitative performance measurement, such as staff training and correct issue of tickets discourages financial targeting of contractors, particularly based on ticket issue numbers and incentives or bonus schemes for staff which are also based on ticket numbers encourages standard training to be undertaken by all enforcement contractors and as recommended by Statutory Guidance emphasises parking enforcement for traffic management purposes, rather than for revenue raising, as emphasised in Statutory Guidance

6. ‘Old Style’ Contracts Bills of quantities can make it hard to work out exactly what is being charged for Management fees are often included in prices, not separated out Defaults often lead to adversarial situations between client and contractor It can be cheaper for the contractor to pay defaults that it would be to put the contract right Contracts are sometimes not specific enough to allow defaults to be charged anyway

7. BPA Model Contract Snapshot: Many local authorities with CPE have outsourced to private companies Consequence: Private companies are seen to be acting independently, and in their own interests Model Contract… standardises parking provision, offers greater transparency and confirms the control base

8. BPA Model Contract Snapshot: Where there is no standard contract or shared set of rules Consequence: Local authorities are left open to criticism and challenge through disparity Model Contract… encourages like-for-like measurement of services

9. BPA Model Contract Snapshot: Bespoke contracts are expensive Consequence: Local authorities are not seen as offering best value for public money Model Contract… focuses on value and quality

10. BPA Model Contract Snapshot: Bespoke contracts can be out of date before the end of their fixed term Consequence: New technology is often only introduced as part of a re-tender – this could mean a 5 year wait Model Contract… encourages innovation and continuous improvement throughout the contract’s lifespan

11. BPA Model Contract Snapshot: Public/media criticism of parking enforcement services is growing Consequence: This is often interpreted as problems with the contract – including target setting by the local authority, and creates suspicion of wrongdoing Model Contract… reduces confusion by shifting focus from quantative to qualitative measures

12. BPA Model Contract The Challenge encourage best practice within the industry improve quality and standard of service of the parking enforcement sector improve staff retention, training and personnel support encourage like-for-like measurement of services

13. BPA Model Contract The Solution The BPA Model Contract is based on key principles: a partnering approach, founded on openness and trust a sharing of risk performance related payments linked to accurate measurement of performance through Key Performance Indicators incentives for service providers to seek out innovative ways of reducing target costs employing appropriately qualified CEOs who are motivated, well trained and suitably remunerated

14. BPA Model Contract The Contract: allows the local authority to determine the scope of enforcement features core KPIs, which can be tailored by the local authority and worked into the contract as a phased approach to the service simplifies financial arrangements between a local authority and enforcement provider sets out clear guidelines for dispute management /…

15. BPA Model Contract../continued allows the local authority clear comparison between providers at tender stage and to measure performance following contract award on an agreed basis provides a clear comparison on quality issues – eg training and remuneration sets out an ‘open book’ agreement between local authority and service provider includes change management principles, to allow both local authority and provider flexibility to the benefit of service provision

16. BPA Model Contract Examples of Quantity Focused Core KPIs (Old Contract) PCNs - numbers Clamps - numbers Removals - numbers Defaults

17. BPA Model Contract Effective parking enforcement Good Quality, motivated and informed CEOs Issue of Good Quality PCNs Level of compliance Car pound operations Efficient clamping and removal operations Abandoned vehicles Full and timely reporting of all defective lines/signs Customer handling Administrative procedures Examples of Quality Focused Core KPIs (Model Contract)

18. Remuneration CONTRACT SUM OVERHEADS PROFIT Subject to regular audit and assessment Subject to monthly measurement of Quality of Service through KPI s TARGET COSTS (Direct Costs)

19. Cost Schedule Telecommunications 3 Pound-Utilities Only 2 Premises/Base 1 Cleaning 3 Fuels/Oils/Greases 2 Stationary and Documentation 1 Uniforms and Associated Equipment 4 General Office Equipment 3 Radio/Telecoms 2 IT Hand Held System 1 Vehicles – Trucks 5 Vehicles – Vans 6 Vehicles – Cars 7 Clamps 9 Vehicles – Two Wheelers 8 CCTV Operators 13 Suspension Staff Counter Staff 12 11 Onboard CEOs 10 Drivers Clamping Van 9 Drivers Removal Truck 8 Pound Admin/Counter Staff 7 Pound Manager 6 Admin. Staff inc. Quality and Monitoring 5 Parking Attendants – Basic 4 CEOs - Senior 3 Supervisor 2 Contract Manager/Assistant CM 1 Labour and Staff Rates to coverall on- costs including but not limited to benefits, NI, travel costs, etc Equipment to include all costs of leasing repair, maintenance, consumables, replacements, etc Premises including all associated costs Materials Including delivery,distribution and removal as necessary Annual Target Cost Annual Rate QuantityDescriptionTypeItem ANNUAL TARGET COST CONTRACT SUM Maximum % Addition for Performance Related Payment%

20. Key Performance Indicators Focus on the key service deliverables, which ensure that a good quality service is delivered. Reward good performance. Provide incentives for achieving and maintaining performance. Can be reviewed annually and revised if needed – making them flexible over the life of the contract.

21. Key Performance Indicators Effective parking enforcement –Coverage of patrol requirements –Minimum number of deployed CEO’s –Removals and clamping Good quality, motivated and informed CEO’s –Initial training –Regular assessments of training, on-going delivery –Staff retention –Standard of CEO appearance, courtesy and helpfulness –Level of complaints and complaints handling

22. Key Performance Indicators Issue of good quality PCNs –Cancellations due to CEO error –Void tickets Customer and other services –IT – availability, reliability, responses to problems –Customer and processing services –Banking – timely, accurate, reconciliations –Suspensions

23. Performance Related Payment Mechanism PRP starts at +2 Bits until performance data is available. Performance for Month 2 is reviewed in Month 3 If targets were achieved, PRP increases + 1 Bit If not, PRP decreases – 1 Bit This line shows what happens if the Service Provider meets all targets as specified every Month. To maintain +6 Bits, the Service Provider must continue to meet KPI targets as specified, Otherwise the PRP goes down one Bit per month (down to Zero, then 2 Bits per month) 4 Months + 1 + 2 + 3 + 4 + 5 + 6 - 6 - 5 - 4 - 3 - 2 Maximum PRP 0 - 1 Bits 57231869101112131514161718 Minimum PRP In Month 4 et seq., the performance related payment goes up or down each Month, depending on whether performance targets are met in the previous Month. This line shows what happens if the Service Provider fails to meet targets. Bits as necessary deducted from PRP due to Service Provider. If the payment falls below zero, then Bits are doubled, that is, 2 Bits are added or deducted in any Month. Other management action instigated. The KPI target rises over the life of the contract The Service Provider must do more to maintain the PRP.

24. BPA Model Contract Obligations on Local Authorities Provide a clear definition of policies and aims. Embrace a partnership approach. Share information with the Service Provider.

25. BPA Model Contract Benefits summary: change of focus quality/customer driven flexible innovative continuous improvement positive marketing improve enforcement efficiency improving working environment