There's nothing you can do about the handicap placard situation. If she's got one, you must assume she needs it for some reason. Leave that alone.
The best thing to happen would be if one of her superiors could say, "could you please use the employee parking, the spot on the street is for clients." Of course, that might just open up the spot for another handicapped employee (even in another building) to do the same thing. If the spot is truly intended for clients, a two hour parking limit is probably the answer. Ask building management and/or the city about getting it marked as 2 hour parking.
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