As penalties continue to frustrate Port Townsend Plaza shoppers, the City of Port Townsend has confirmed that the companies behind the paid parking systems have yet to acquire the proper licenses to operate within Port Townsend.

Finance Director Jodi Adams said that Hall Equities Group, Parking Revenue Recovery Services (PRRS), and Honk Mobile all hold Washington state business licenses; however, none has obtained the required city endorsement on their licenses to conduct business in Port Townsend.

Letters were mailed within the last month to the companies informing them of the requirement. However, as of this writing, no applications or endorsements appear in the state’s business licensing system, the Washington Department of Revenue’s Business Licensing Service (BLS).

“We’re working to get the businesses in compliance,” Adams said. “Many businesses are unaware of the requirement to obtain an endorsement on their Department of Revenue business license to do business in Port Townsend, so we try to work with them to come into compliance before we begin enforcement action.”

Adams said that the city can enforce licensing requirements; however, the city has no jurisdiction over parking fees, signage or policies set by the plaza’s owner and its operators. To dispute a parking penalty, residents should direct their complaints to Hall Equities Group, the Washington State Attorney General or the Consumer Financial Protection Bureau.

The issue of endorsement is the latest conflict in a rollout that has been met with significant public backlash. The paid parking system requires patrons to scan a QR code from their cell phone and register their license plate within 15 minutes of arrival; failure to do so will result in a fee. Since July, mailboxes have been filled with penalties of $102, regardless of the length of stay.

Residents visiting the plaza and the employees who work there said the system is confusing, and some of the practices may not meet the state requirements for private lot signage and notice.

Washington law (RCW 46.55.070 and WAC 308-61-145) requires signage at private parking lots to be “clearly conspicuous and visible to all who park,” listing enforcement terms, start times, and contact information in the event of a tow.

At the entrance of the plaza, signs warn that parking charges of up to $250 may apply, but much of the text is printed as half an inch, which can be challenging to read beyond 10 feet, especially in the evenings, as the signs are not reflective. The Leader conducted an informal visibility test from 25 feet away in July. None of the 15 people questioned said they would consider the signage to be “clearly visible’ from that distance, an industry standard for signage. There is also required information missing on the posted signage, including information on grace periods and fee structures, as well as tow retrieval information. That responsibility has been taken up by businesses, who have created visible signage at the entrances of shops.

The lot is owned by California-based Hall Equities Group, which hired PRRS to oversee enforcement and Honk Mobile to provide the QR-based registration system. In a previous response to The Leader in July, Hall Equities CEO Mark Hall defended the system as a necessary response to “poachers,” those who leave their vehicles on the lot for days, and compared public resistance to that of the early skepticism about ATMs in the 1980s.

Local businesses say they are bearing the burden of the community’s frustrations. Employees are still receiving complaints from customers regarding the penalties, despite some business’ attempts to post clear warnings with solutions on its shop windows.

The city is awaiting responses from the companies to its notices before pursuing enforcement of its licensing requirements. For tenants and customers, they continue to be caught in the middle of a situation that is loudly unpopular and, for now, out of compliance.