Needham to roll out pay-by-phone parking app; service fee charged to users

The Finance Committee heard Jan. 8 that the town plans to roll out a pay-by-phone parking payment service around April 1 that will let motorists pay by phone at meters in and near Needham Center.

A staff member told the committee the town completed a competitive bid and selected a vendor whose pricing the town judged favorable to the community. “Their pricing structure is so much more favorable to the community that we think that it’s likely more communities will go towards that product in the future,” the staff member said. Signage and instructional materials will be installed at meters and details will be affixed to meter hardware to let motorists know how to use the app; the vendor will cover those signage costs under the contract, the committee was told.

The service will be optional for motorists; coins will remain an accepted payment method. The service includes a vendor convenience charge on top of the meter fees and that fee will be borne by the customer rather than the town. Committee members asked whether pay-by-phone systems increase parking revenue; a committee member summarized vendor claims that overlap of paid sessions can slightly increase revenue but noted towns usually report single-digit percentage changes at most.

The town expects to roll out the app to meters covering the town center and says the system will allow plate-linked payments so a parked space’s remaining paid time is attached to the vehicle rather than to a physical coin. The committee was also told the town will absorb some internal labor costs for set-up and that overtime in the public works highway budget will be used to cover staff time for installation and outreach.