1:53 pm Jun. 11, 20121
On Monday, the Bloomberg administration asked private companies interested in operating New York City's expansive parking meter system, the largest in the country, to send in their qualifications.
All responses are due at the end of July, and it is on the basis of these responses that the city will decide whether to outsource the system. (The request is viewable here.)
Chicago embarked on a similar path in 2008, with mixed results.
That year, Chicago mayor Richard M. Daley handed over control of the city's parking meters to a Morgan Stanley-backed company called Chicago Parking Meters for 75 years, in exchange for an upfront lump sum of nearly $1.2 billion.
The following year, parking rates increased fourfold. The company has sought compensation from the city for taking parking spaces out of service for parades.
The Bloomberg administration wants to make clear that New York City's outsourcing of its parking meter management would not be like that.
"The basic structure is totally different—Chicago sold the system for a one-time cash infusion," said mayoral spokeswoman Julie Wood, in an email. "We are looking for a private operator but we would still own the meters."
New York City has about 89,500 parking spaces, the vast majority which are for on-street parking. Most use muni-meters. The rest rely on old-fashioned single-space meters, but the city expects to phase those out by the end of the year.
In contrast to Chicago's outsourcing adventures, the city would retain control over meter rates, the installation and removal of meters, meter operating hours and enforcement.
In order to qualify, companies will need experience managing at least 100,000 spaces, with at least 20,000 of those spaces on the street.
“In contrast to certain precedent U.S. parking transactions, the City’s objective is not to structure an upfront payment," reads the request (emphasis theirs). "Rather, the City views the possible [Private Management Agreement] as an asset management partnership through which a Private Manager would earn compensation for driving long-term value and service to the public and creating Parking System upside for the City.”
The proposed benefits of privatization in New York City remain vague. The request for qualifications mentions better financial results, and the ability to “extend the City’s record of innovation in this area.”
That could, according to the request, include new technology to help customers find spaces, more payment options, and new ways to combat double-parking and the blocking of fire hydrants.
The mayor's office said one new payment technology might be payment by phone.
Muni-meters are themselves an innovation and are already beginning to transform the ways in which New Yorkers pay for parking.
In fiscal year 2011, customers paid with cash 62 percent of the time, and with credit 22 percent. This May, customers used cash 54 percent of the time, and credit 29 percent.
The city has also introduced a program called PARK Smart in some neighborhoods, which seeks to increase turnover by increasing meter costs during certain hours in high-demand areas like Greenwich Village and Park Slope.
New York's parking system is a cash cow, netting $80 million in 2010 and $93 million in 2011. It’s expected to net $99 million this year.
It's unclear how the system's unionized workers—466 are funded in next year's budget—would fit into this. But, presumably, the reduction in the workforce size would be another way a private company could reduce operating costs.
The request for qualifications only says,“Respondents will be asked to provide with their response an explanation of plans concerning the utilization of these City employees.”
Transport economist Charles Komanoff says the move "might be an initial step towards the city rationalizing and optimizing the use of curbisde space to improve both parking and transportation."
I am writing regarding the outrage of privatization in the City of Chicago and New York City. Why isnt anything being done about the infamous parking meter debacle. Selling Chicago's or New York City assets to alleviate temporary budget concerns is fiscally irresponsible and unconstitutional. The City of Chicago found itself in a budget hole because of fallen tax revenue, collapsing of the housing market and high employment and ex-mayor Richard M. Daley decided to sell the Chicago parking meters to a consortium. chicago could of reaped at least another $1 billion dollars in that deal.
People did not understand the forfeiture of their rights. There were no implications of the ramifications that were to come. Now look at the recent tab of $61 miilion for Chicago Parking Meters, LLC for unused parking meters and the spaces for disabled placards. How many mistakes did Mayor Richard M. Daley create for our city and our residents. What about the aldermen that signed off on it because of duress, coercion, and fraud. They were afraid of retribution. This makes this infamous parking meter deal void. We now have the parking meter deal debacle, the red-light cameras, the Chicago Skyway, and now the speed cameras. What next? This whole thing about arbitration is "Smoke and Mirrors". Look at my website and see all the vigilance I've tried to bring to the city and it's residents. Where is the voice of the people and the transparency? Why don't people get a return on their Federal incomet tax return because of city assets sold? My website is Raulmontesforchicago.com
Mayor Richard M. Daley should not be employed by the lawfirm that brokered the deal for the parking meters. It is a conflict of interest. Im sick of all the reasons in the workd to create revenue and it not really being about safety. Something needs to be done, enough with the corruption and privatization. I live in Little Village,and I implore anyone to come and visit 26th street the so called second "Magnificent Mile" that has over 50+ locals closed because of the economic decline and the parking meters. Businesses are struggling to stay afloat because the parking meters are forcing people to go to the suburbs. They rather not deal with the anxiety and stress of getting and then having to pay a $50 dollar ticket. I hope New York City does not copy Chicago's catastrophe with the parking meters.
312-890-6599 Raul Montes, Jr. Community activist throughout Chicagoland.