Indianapolis has selected a private company to handle its parking-meter operations, officials announced Friday morning.
The city has agreed to enter into a 50-year lease agreement with Dallas-based Affiliated Computer Services Inc., according
to city officials. Under terms, the city will receive $35 million upfront and a share of revenue, which is expected to increase
during the span of the agreement from 20 percent to 50 percent.
The contract is expected to generate more than $400 million for the city over the life of the 50-year deal. It also should
result in the creation of 200 jobs, the city said.
ACS plans to spend up to $10 million to replace the city’s antiquated coin meters with newer models that will accept
credit cards. As a result, hourly parking rates are expected to rise from 75 cents to as much as $1.50 in Broad Ripple and
some busy downtown areas.
A long-term lease deal and the additional revenue generated by higher fees would help the city repair streets, sidewalks
and alleys in those areas. The mayor said the $35 million from ACS will be used in part to pay for a new parking garage in
Broad Ripple. The city is already scouting locations and hope to announce details in the near future.
Besides higher meter rates, metered hours would extend to 9 p.m. in busier downtown areas and to 8 p.m. in quieter parts.
In Broad Ripple, hours would stretch to 11 p.m.
Most metered parking in the city now runs until 6 p.m., with a two-hour limit.
One of the goals of the proposal is to spur turnover at the most valuable parking spots in downtown and Broad Ripple, which
would boost economic development and potentially generate more customers for businesses.
The hourly meter rate of 75 cents has not increased since 1975.
New rates would not take effect until later this year or early next year, depending on when the City-County Council approves
a manager. The City-County Council could consider the recommendation at its next meeting on Monday.
The deal with ACS so far only involves parking meters. The city is still negotiating a 10-year deal, also led by ACS, to
operate all the city and CIB parking garages and surface lots, with the exception of the Circle Centre garages.
The city’s formal request for qualifications, issued in February, asked for proposals to oversee all 3,600 metered
parking spaces; two city parking garages; two state-owned parking garages and one surface lot; three downtown garages now
managed by Indianapolis-based Simon Property Group; planned surface and garage parking at the new Wishard Memorial Hospital;
and three surface lots and one garage now operated by Marion County’s Capital Improvement Board.
Under the hybrid parking management system, locally based Denison Parking handles meter enforcement while city employees
are responsible for meter maintenance and coin collection. The parking team also includes Indianapolis-based Evens Time Inc.
Under the city’s proposal with ACS, Denison will continue to oversee enforcement.
As IBJ reported earlier this year, Indianapolis received 16 responses to its privatization
plan and narrowed the number down to seven.
City leaders undoubtedly hope their deal produces better results than a high-profile state contract involving ACS. The firm
was one of 10 companies that won a $1 billion, IBM-led contract with the state to privatize Indiana Family & Social Services
claims processing. Gov. Daniels ultimately canceled the agreement in October after numerous problems, and FSSA and IBM each
have filed lawsuits against the other in Marion County over the cancellation.
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Goldsmith and Rube go to work for ACS - Goldsmith as Executive VP.
Rube becomes Director at FSSA. ACS is awarded welfare system privatization contract.
Goldsmith becomes an advisor to Mayor McCheese. Huber comes over from the State (the City privatization projects look a lot like the toll road lease).
ACS is awarded the parking privatization contract.
The IndyStar reported that the City stands to gain $400 million over the next 50 years. If the City's share at best during the contract is 50%, wouldn't it stand to reason that ACS stands to reap at least $400 million?
Just like the toll road lease, this is all about taking long-term profits upfront for short-term political gains (and shifting rate increases to a private-sector vendor). This is a management issue that demands real leadership. And we haven't seen much leadership from the Mayor's office.
Back of the envelope figures indicate that the price is in the ball park. Does Indianapolis really need this particular $35,000,000? Is it to fund professional sports, either directly or otherwise?
The alternative is to raise taxes, reduce spending or both. That would take real character. The combination of sales tax, income tax and property taxes are already relatively heavy for Indianapolis. The only remaining option would be to reduce spending, politically a third rail.
Indianapolis needs fiscal discipline, not creative financing.
Chicago drivers will pay a Morgan Stanley-led partnership at least $11.6 billion to park at city meters over the next 75 years, 10 times what Mayor Richard Daley got when he leased the system to investors in 2008.
http://www.bloomberg.com/news/2010-08-09/morgan-stanley-group-s-11-billion-from-chicago-meters-makes-taxpayers-cry.html
This 50 year deal gives the city $35 million up front and only 20% of revenues going forward? Heck just collecting the current parking meter money for that period would be $37.5 million.
After all Mitch did it, Now he wants to become president to sell off the National Parks to more special interests. America is up for the highest bidder who will put big bucks into the politians pockets all the while the GOP having already sent American jobs to foreign countries and boast it is all about capitalism, is now looking for ways to sell what is left.
America will not survive in the hands of the GOP.
This deal is all about typical short-term politicial thinking...we want to give up future income stream for money up front so we can win next election. And yes, let's have a private sector increase the rates, because then voters won't be able to blame us.
I am ok with outsourcing jobs to private sector if they can do it better. But this is completely unnecessary. If mayor wants to spend money for capital improvements, then raise taxes. Don't go beating around the bush, and selling future revenue streams. But it's hard to do that when you campaigned and got elected on "lower taxes rhetoric".
Why doesn't the city raise the parking rates itself, buy new parking meters, and collect ALL the profits instead of giving someone else 80% of the profits for almost 50 years?
They want upfront cash? Sell Muni Bonds backed by parking receivables.
Boosting rates, and hours, in Broad Ripple might be another question. While all current public transportation runs through downtown, getting to Broad Ripple from other than downtown still relies heavily on automobiles, so you have to assume this will further push Broad Ripple parking into the surrounding neighborhoods, which means pushing the already growing crime and littler problems there as well.
The FSSA privatization has worked so poorly that Indiana is fined 1.2 million by the Feds because of poor service and the privatization was stopped in midstream. Even after 3 years of trying to tweak their system, ACS is still unable to follow the Federal time guidelines on getting people the services that they are eligible for. Provision of Medicaid Disability has been at a virtual standstill since they were hired in 2007. Note that IBM was to provide the computer programming updating and updated machines. ACS is in charge of providing workers,and training them to answer questions and manage the paperwork. ACS still has not figured out how to get the incoming paperwork to the online case that it belongs to. They have hired more and more workers and still can't do it. But have they had their contract cancelled?? No! The Question is Why??
Question is, is anyone investigating WHY ACS is getting all the contracts for running services for Indiana?? Could it be that Mitch Roob, former VP, has some influence with people who make the decisions??
http://www.chicagoinspectorgeneral.org/news_archive.html
Chicago Lost $1 Billion On Parking Meter Deal
Charts and graphs in Hoffman's report say the city, eager to balance the budget, unloaded its meter revenues for $974 million less than they were actually worth over the life of the 75-year deal. That's just shy of $1 billion.
http://cbs2chicago.com/local/chicago.parking.meters.2.1028497.html
First of all it's not ACS anymore its Xerox/ACS with a capital XEROX.
Second, the agreement with Xerox/ACS wasn't cancelled it was modified to no longer include IBM.
How many other facts in this article are almost but not quite right?
Let me see if I have this straight. We want UAW-23 to do what's best for the city, but we can't enter into a deal with a local vendor. If we are being told the truth, then the 200 jobs, if needed would be needed regardless of who the vendor is, but if we use a local vendor, there would be a few white collar jobs to boot. How about this? The Water Company Deal is supposed to pump millions or billions into fixing the local streets, but that money won't be needed where there are parking meters because we will have millions per year to fix the streets around the parking meters, Boy, I want the job of figuring which pot the money comes from to fix a particular block of a particular street. Talk about the possibility for money to go missing into some grafters pocket, this should really make it easy. With all of these plans and money flowing, I can't wait to live in our new marvelous city with its smooth riding streets and sidewalks without crumbing curbs. It is looking more and more to me (who voted for the guy) that Mr. Ballard might become a one term Mayor. Oh, don't forget that Mr. Roob couldn't understand where the UAW-23 were coming from (because he had his head stuck in the sand on that one), but I bet he was wide awake on helping out on this one.
This is too easy. I want to retire to a job writing political commentary for a newspaper or a TV station here in Indy.
No one came downtown in 1975 and economics 101 says raise price and suppress demand.
Parking problems were the #1 reason people stayed in the suburbs were parking is FREE and convenient to shopping,restaurants,and business/work.
Keep in mind we are talking about handing a 50 year monopoly all of the cities parking meters and large state & city parking facilities
Thought all that money from selling the water company was going to give us road and sidewalks made of gold;)
Meanwhile, if they cap property taxes like everyone insisted, they've got to get the funds somewhere...we all want roads, schools, etc...we just apparently balk at paying for it.
Law of economics says it has to come from somewhere...no free lunch!
Colts, State Reach New Parking Agreement
http://www.insideindianabusiness.com/newsitem.asp?id=26947
Fieldhouse.
Who needs those pesky customers in Broad Ripple, Mass Avenue, or Indians baseball games?
Mitch Roob's former employer that he hired to fix FSSA with IBM?
Since when did they become parking experts?