It’s nearly budget season in Cincinnati again. In a bit of a head start, City Manager Milton Dohoney has unveiled his plan to look into privatizing the city’s parking services.

Dohoney also wrote he had met with American Federation of State, County and Municipal Employees (AFSCME) workers that would be affected by the change. He assured any new parking operator would have to interview AFSCME parking workers for jobs.

Councilman P.G. Sittenfeld responded to the proposal critically in a statement: “I’ll await more details, but it seems penny-wise and pound-foolish to forgo a steady revenue stream for a lump-sum payment. Cincinnati needs a structurally balanced budget, and can’t keep relying on one-time sources. Places like Chicago and Indianapolis have seen their parking rates more than double following privatization — that’s a bad deal for citizens, and something we don’t need while were experiencing an urban renaissance.”

Some have cited the experience in Chicago as a failure of privatization. When New York City moved to privatize its parking meters, Matt Taibbi of Rolling Stone criticized New York City Mayor Mike Bloomberg for his plan: “These deals involve a sitting executive selling off a valuable piece of city property at a steep discount to private financial interests (often, to friends or campaign contributors), in order to solve a current cash flow problem that, surprise, surprise, will still be there the year after you finish spending the proceeds of your sale.”

But New York City’s plan for privatized parking meters kept pricing in public hands. It’s possible Cincinnati could take a similar approach and keep meter rates at the same level.

The full budget proposal typically comes out in late November. Mayor Mark Mallory and City Council will have to approve the proposal.

Private prison critics have been proven right once again. Smuggling incidents are on the rise around Lake Erie Correctional Institution, which Ohio sold to the Corrections Corporation of America (CCA) in 2011.

In a letter to Gov. John Kasich’s northeast Ohio liaison, Conneaut Councilman Neil LaRusch claimed a rise in contraband smuggling has forced local police to increase security around the CCA facility.

Since the end of 2012, four have been arrested and charged with smuggling. Another four were arrested Monday and police suspect they were in Conneaut for a smuggling job. According to the Star Beacon, the four suspects arrested Monday were only caught due to the increased police presence outside the Lake Erie prison.

LaRusch said Conneaut and its police department are already running tight budgets, and they can’t afford to continue padding prison security. He then asked the state and governor to help out with the situation.

The letter prompted a reaction from the American Civil Liberties Union of Ohio (ACLU), which has staunchly opposed prison privatization in the state. In a statement, Mike Brickner, director of communications and public policy for the ACLU, said, “Unfortunately, this is a predictable pattern with private prisons. Promises of lower costs quickly morph into higher crime, increased burdens on local law enforcement, and in the end, a higher bill for taxpayers.”

He added, “This is not an anomaly. It is a predictable pattern. The private prison model is built on profit above all else. These facilities will cut corners and shift responsibility to taxpayers wherever necessary to maximize profits.”

The governor’s office and Ohio Department of Rehabilitation and Correction (ODRC) could not be immediately reached for comment. This story will be updated if a response becomes available.

Update (5:00 p.m.): Col. John Born, superintendent of the Ohio State Highway Patrol, responded to the councilman's letter. In his own letter, Born doesn't contradict that there's a rise in drug smuggling, but he gives the issue more context.

Born wrote criminal incidents at the Lake Erie prison have actually decreased. He acknowledges drug smuggling cases went up from four in 2011 to seven in 2012, but he says drug cases have gone down at the prison since 2010.

He also claims seven other state prisons have seen a greater rise in drug smuggling. Born frames the issue in a national context: “Unfortunately, despite best efforts, the national problem of illegal drug usage and drug trafficking continues to plague our nation.”

Regarding state assistance, Born wrote the Ohio State Highway Patrol does not have the authority to strengthen security in order to directly prevent drug smuggling: “It is important to point out the Ohio State Highway Patrol's legal authority and corresponding duties prior to the sale of the prison and after the sale remain largely unchanged. Ohio troopers did not have original jurisdiction on private property off institution grounds while under state operations nor do they today.”

He adds the Ohio State Highway Patrol has already deployed more cruisers at the prison, but he believes local law enforcement are still the best option for responding to incidents.

JoEllen Smith, spokesperson for ODRC, wrote in an email, “DRC will be in communication with the parties involved to ensure any remaining concerns are addressed.”

CityBeat previously covered private prisons in-depth (“Liberty for Sale,” issue of Sept. 19). Within a week of the story going to stands, ODRC Director Gary Mohr said the state would not privatize any more prisons. On the same day of his announcement, Mohr apparently received an audit that found the CCA facility was only meeting 66.7 percent of state standards (“Prison Privatization Blues,” issue of Oct. 10).

Former Democratic city council member John Cranley is kicking off his 2013 mayoral campaign by getting involved in budget talks. In a public hearing at City Hall last week, Cranley tried to provide an alternative to privatizing the city’s parking assets, which City Manager Milton Dohoney has suggested to pay for $21 million of the city’s $34 million deficit.

“It’s not the citizen’s job to balance the budget, but let me make it very easy for you,” Cranley said. “You have $12 million in casino money that can be used but is currently being used on pet projects, like street sculptures. The parking meters themselves produce $7 million a year. That’s $19 million. And $5 million for garbage cans. That’s $24 million. You only need ($21 million) to cancel the parking privatization plan, so I got you $3 extra million to spare.”

In short, Cranley's alternative to parking privatization is using $12 million from casino revenue, $7 million from keeping parking meters under city ownership and $5 million saved from not purchasing trash carts.

So how viable are Cranley’s ideas? In a memo, Dohoney’s office responded. The memo points out that casino revenue is currently estimated at $7.2 million, not $12 million, and $1.3 million is already included in the budget for Focus 52, a neighborhood redevelopment project. That leaves casino revenues $6.1 million short of what Cranley proposed.

Regarding parking meters, Dohoney’s office says revenue from parking meters is restricted to fund “operations and maintenance in the right-of-way.” The memo says City Council could authorize using the money to plug the deficit, but it would then have to find alternatives for funding operations and maintenance.

Even the trash cart proposal doesn’t work. Not buying trash carts would only save $4.7 million, not $5 million. And the plan, which is part of the city’s effort to semi-automate trash collection, is in the general capital budget, not the general fund operating budget that’s being debated. The memo concludes, “If the trash carts are not purchased, the funds would not be available to close the gap because this is a capital budget expenditure and resources supporting the capital budget cannot be used in the operating budget.”

In other words, Cranley’s “very easy” budget plan isn’t just difficult; it’s a mix of inadequate and impossible. If CityBeat was PolitiFact, Cranley’s suggestions would probably get him a “Pants on Fire” label.

It was the first opportunity council members had to publicly question the budget’s architects. The proposed budget would cover the first half of 2013. The city is switching over to a fiscal year starting in July.

Many council members expressed concern over the plan to use $21 million from a proposed 30-year lease of the city’s parking meters, garages and lots to help close a $34 million budget deficit.

“It seems like … the city budget wins, but the citizens are losing,” said Councilman P.G. Sittenfeld.

City Manager Milton Dohoney said the parking facilities net Cincinnati about $7 million a year. That would equal out to about $210 million over 30 years.

Sittenfeld called into question the wisdom of leasing the facilities for an estimated $50 million and taking half of the profit, for an earnings of about $150 million over 30 years.

Other council members expressed concern that whoever leased the parking would hike rates, something Councilman Cecil Thomas dismissed.

“The market would dictate the rates that are charged,” he said.

Dohoney said a combination of cuts, savings, revenue, projected growth and one-time funding sources helped eliminate the $34 million deficit. He said a budget containing only cuts would result in the layoff of 344 city workers.

A slide show provided by the city showed that 802 positions had been cut since 2000.

Dohoney advocated eliminating the property tax rollback promised as part of the deal to build two new sports stadiums in 1996. He said it would bring in about $9 million a year. However council has had little appetite to allow any increase in taxes as the city recovers from the Great Recession. Property taxes make up about 6 percent of the budget fund used to pay most of the city's operating expenses.

The cuts proposed in the 2013 budget include eliminating support for public access company Media Bridges, the Downtown and Neighborhood Gateways Program, Juvenile Firesetter Program and Arts Grants.

It would also eliminate the Cincinnati Police Department’s Mounted Patrol, which covers downtown on horseback. Dohoney said that would allow Cincinnati Police Chief James Craig to redeploy those nine officers elsewhere. Dohoney said Craig had asked for a new recruit class of 50, but Dohoney requested 30. He said the additional nine from the horse patrol would bring that closer to 40.

Dohoney said he was also allowing 10 additional recruits to cover patrols of University Hospital, which is no longer going to use University of Cincinnati police starting Jan. 1.

He said the police department would also look for ways to save money by increasing the involvement of civilian members who could do things like take reports of non-injury car accidents.

Councilwoman Laure Quinlivan asked if the budgeteers had considered restructuring the police force to save money. She has long been a proponent of “right-sizing” the police and fire forces, saying staffing levels remain at a high while the city’s population is shrinking.

The proposed budget also includes investments in business groups that promote economic development, like the Port Authority, Greater Cincinnati Partnership, Film Commission and African American Chamber of Commerce.

Councilman Chris Seelbach praised Dohoney and his budget team, saying he saw Cincinnati as being better off than it had been six years ago. But he also said he’d like to see the administration focus on people who are barely getting by instead of businesses and developers.

“There is a focus on helping people make more money that are already making a lot of money,” Seelbach said. “Helping people that aren’t paying a lot of taxes still pay very little.”

Cincinnatians can weigh in on the budget in a public hearing Thursday evening at 6 p.m.

In a presentation to City Council Feb. 19, City Manager Milton Dohoney Jr. unveiled an unexpected parking proposal that will solve a $25.8 million budget deficit for the 2014 fiscal year and avoid full privatization. The 30-year plan will also put more than $100 million toward economic development in the city.

The plan involves teaming up with the Port of Greater Cincinnati Development Authority and some private operators to manage and modernize Cincinnati’s parking assets. Dohoney called it a “public-public partnership” that will allow Cincinnati to keep control over rates, operation hours and the placement of meters.

The money raised by the plan will be used for multiple development projects around the city, including the I-71/MLK Interchange, Tower Place Mall and a high-rise that will house a downtown grocery store.

The new parking plan will cap rate increases at 3 percent or the cost of living, with any increases coming in 25-cent increments. Private operators will not be allowed to change operation hours, but hours will be initially expanded to 8 a.m. to 9 p.m. downtown and 7 a.m. to 9 p.m. in neighborhoods.

The proposal will not immediately increase downtown’s $2-an-hour rates, but it will increase all neighborhood parking meters to 75 cents an hour. Afterward, the rate cap will make it so downtown rates can only be increased every four years and neighborhood rates can only be increased every 10 to 11 years.

But the rate hikes will only come after technological improvements are made to parking meters. The new meters will allow users to pay with a smartphone, which will enable remote payment without walking back to the meter. After the plan’s 30 years are up, parking assets will be returned to the city with all the new technological upgrades, according to Dohoney.

Some critics were originally concerned that private operators will aggressively enforce parking rules to run bigger profits, but Dohoney said enforcement standards will remain the same.

Enforcement will be done through booting instead of towing, according to the plan. Booting will only be used after the accumulation of three unpaid parking tickets, which is similar to how towing works today. The boots will be automatically removed once the tickets are paid, which will be possible to do remotely through a smartphone.

The plan, which is a tax-exempt bond deal, will provide the city with $92 million upfront cash and $3 million in annual installments after that, although the city manager said the yearly payments will increase over time. The city originally promised $7 million a year from the deal, but Dohoney said estimates had to be brought down as more standards and limitations were attached to address expressed concerns.

The money will first be used to pay for a $25.8 million deficit in the 2014 fiscal year. Another $6.3 million will be set aside for the working cap reserve and $20.9 million will be put in a reserve to pay for a projected deficit in the 2015 fiscal year.

The rest of the funds will be used for economic development. About $20 million will go to the I-71/MLK Interchange, which would match $40 million from the state. The project is estimated to create $750 million in economic impact, with $460 million of that impact in Hamilton County. Dohoney says the economic impact will create 5,900 to 7,300 permanent jobs, and ultimately bring in $33 million in earnings taxes, which means the plan will eventually pay for itself. He also says the funding from the parking deal will allow the city and state to complete the project within two to three years, instead of the seven to 10 years it would take if the city waited for support from the federal government.

If the state does not agree to take up the I-71/MLK Interchange project, Dohoney promised a “mega job deal” that will create 2,500 jobs.

With $12 million for development and $82 million in leveraged funds, the city will also take on massive development projects downtown. Tower Place Mall will undergo a massive conversion. The city will also tear down Pogue’s Garage at Fourth and Race streets and replace it with a 30-floor high-rise that will include 300 luxury apartments, 1,000 parking spaces and a grocery store.

The plan will also use $3 million for the Wasson Line right-of-way and $4 million for the next phase of Smale Riverfront Park, which should be completed in time for the 2015 Major League Baseball All-Star Game.

AEW, Xerox, Denison and Guggenheim will partner with the city and Port Authority for the plan. AEW will manage assets, Xerox will handle parking operations and on-street spaces, Denison will operate off-street spaces and manage facilities and equipment and Guggenheim will act as underwriter and capital provider.

After the City Council hearing, Councilman P.G. Sittenfeld released a statement that raised concerns about expanded meter operation hours, which Sittenfeld fears could burden certain neighborhoods. He also pointed out the plan will not fix Cincinnati’s long-term structural deficit problems. Still, he said the local Port Authority’s management could make the plan “worthy of support.” 

Sittenfeld has been skeptical of the parking plan since it was first announced in October. In the past, he warned privatization could cause parking rates to skyrocket. ©

Cincinnati’s Music Hall will be getting renovations, but the project will be much smaller than anticipated. Instead of the previously estimated $165 million, the project, which involves the city leasing the iconic building to the Music Hall Revitalization Company (MHRC) for 75 years, will only cover approximately $95 million.

At a joint press conference Wednesday, Mayor Mark Mallory and Otto Budig, president of MHRC, officially announced the plan, which City Council will take up early next year.

Not many details or a timeline were announced at the press conference, but some information did come to light. The renovations will include more comfortable seating, extra restroom capacity, heating, air conditioning, improved plumbing and new escalator models. During the renovations, Music Hall, home of the Cincinnati Symphony Orchestra, Cincinnati Opera and Cincinnati Ballet, will be closed for an estimated 17 months.

“We will do this in a manner that carries with it the surety that the project will be complete,” Budig said. “The worst thing we could do is start this project without the natural resources and pledges available.”

On top of the leasing agreement, the city will also help fund the project through tax credits. 

The lease continues the trend of public-private partnerships city government has used to revitalize Over-the-Rhine and downtown Cincinnati in recent years. From the Banks to Washington Park, the city of Cincinnati has pushed to be seen as a more attractive, business-friendly environment.

However, that has come with some push back. The Cincinnati Center City Development Corporation (3CDC) and city have previously faced criticisms from homeless advocates for allegedly discriminatory rules at Washington Park, which were later voted down by the Cincinnati Park Board.

Some public officials have also raised concerns about the city giving away too many of its public assets. The 2013 budget currently relies on a proposal that will privatize Cincinnati’s parking assets, a plan that has faced heavy criticism from Councilman P.G. Sittenfeld and mayoral candidate John Cranley. City Manager Milton Dohoney argues the privatization plan is necessary to avoid 344 layoffs.

The Ohio Turnpike will remain a public asset, according to The Columbus Dispatch. Many Ohioans have been worried Gov. John Kasich would attempt to privatize the Turnpike in order to pay for transportation projects; instead, the governor will try to generate revenue for state infrastructure projects elsewhere, perhaps by using the Turnpike’s tolls. Kasich will unveil his full plans Thursday and Friday.

The asbestos lawsuit bill is heading to Kasich to be signed. The bill attempts to curb duplicate lawsuits over on-the-job asbestos exposure. Supporters of the bill say it will prevent double-dipping by victims, but opponents say the bill will impede legitimate cases. Ohio has one of the largest backlogs of on-the-job asbestos exposure cases.

City Manager Milton Dohoney has released some of the potential bids for the city’s parking services, and one bidder is offering $100 to $150 million. Dohoney says the budget can only be balanced if parking services are privatized or the city lays off 344 employees. But Councilman P.G. Sittenfeld is speaking out against the privatization of the city’s parking services. In a statement, Sittenfeld said, “Outsourcing our parking system robs the city of future revenue, and also will mean higher parking rates, longer hours of enforcement, and more parking tickets.”

LGBT rights are becoming “the new normal,” but not for Western & Southern or American Financial Group. In the 2012 Corporate Equality Index, the Human Rights Campaign gave 252 companies a 100-percent score for LGBT rights. Cincinnati-based Procter & Gamble got a 90 percent, Macy’s got a 90 percent, Kroger got an 85 percent, Fifth Third Bank got an 85 percent, Omnicare got a 15 percent, American Financial Group got a 0 percent and Western & Southern got a 0 percent. The rankings, dubbed a “Buyer’s Guide,” can be found here.

The Sierra Club says Cincinnati has some of the best and worst transportation projects. In its annual report, the environmental group praised the Cincinnati streetcar, claiming the transportation project will attract residents and business owners. But the organization slammed the Eastern Corridor Highway project because of its negative impact on the Little Miami River and the small village of Newtown. The Sierra Club says the purpose of the report is to shed light on the more than $200 billion spent on transportation projects every year.

University of Cincinnati President Santa Ono is getting a 10-year contract.

The disease-carrying Walnut Twig Beetle has been discovered in southwest Ohio. The beetle is known for carrying Thousand Cankers Disease, which threatens the health of walnut trees. So far, no trees have been determined to be infected.

Ohio Gov. Kasich, Ky. Gov. Steve Beshear and U.S. Secretary of Transportation Ray LaHood will meet today to discuss funding for the Brent Spence Bridge project. If the bridge project starts in 2014, northern Kentucky and Cincinnati could save $18 billion in fuel and congestion costs, according to the Build Our New Bridge Now Coalition.

Following the defeat of Issue 2, the Ohio Senate is taking on redistricting reform, but opponents in the House say there isn’t enough time to tackle the issue. The current redistricting system is widely abused by politicians on both sides of the aisle in a process called “gerrymandering,” which involves politicians redrawing district lines in politically beneficial ways. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County, heavily diluting the impact of Cincinnati’s Democratic-leaning urban vote.

Ohio employers are more aware of wellness than employers in other states, a new survey found. Wellness programs are one way employers can bring down health-care expenditures as cost shifting feels the pinch of diminishing returns.

However, Ohio ranked No. 35 in a nationwide health survey.

Ohio district didn't win federal Race to the Top education funds in the latest competition.

Internet cafe legislation is dead for the year. Ohio Senate President Tom Niehaus announced the legislation, which essentially puts Internet cafes and sweepstakes parlors out of business. State officials, including Attorney General Mike DeWine, have been pushing for regulations or a ban on the businesses because they see them as a breeding ground for criminal activity.

The final 2011-2012 school report cards will not be available until 2013. The report cards were originally delayed due to an investigation into fraudulent attendance reports.

Michigan may have approved its anti-union right-to-work law, but Ohio is not eager to follow. State Democrats are already preparing for a possible battle over the issue, but even Republican Gov. John Kasich says he’s not currently interested in a right-to-work law.

The Ohio Environmental Protection Agency is loosening hazardous waste reporting requirements for companies. If the rules go into effect, regulated facilities will report on hazardous waste once every two years instead of once a year. The rule changes will get a public hearing on Dec. 19 in Columbus.

In a question-and-answer session Monday, U.S. Supreme Court Justice Antonin Scalia asked, “If we cannot have moral feelings against homosexuality, can we have it against murder? Can we have it against other things?” (Hint: The answer to both questions is yes.) The Supreme Court recently agreed to tackle the same-sex marriage issue. CityBeat wrote about same-sex marriage in Ohio here.

Dogs are now capable of driving, and parrots now have vehicles too. But can our new animal overlords shoot magic foam into the body to stop major bleeding? Because we can.

For the first time since inauguration, Ohio Gov. John Kasich has a positive approval rating, but a plurality of registered voters say Kasich doesn’t deserve a second term. The Quinnipac University poll attributed the increase in Kasich’s approval rating to “high levels of satisfaction among Ohio voters with life in the Buckeye State.” About 42 percent of respondents approved of Kasich, while 35 percent disapproved. About 42 percent said Kasich doesn’t deserve a second term, while 36 percent said he does. The poll surveyed 1,165 registered voters with a margin of error of 2.9 percent.

Last night, Cincinnati held its final public hearing on City Manager Milton Dohoney’s proposed budget. About 40 people spoke during the meeting, with many voicing concern about Media Bridges funding, which CityBeat recently covered here. The budget has also come under scrutiny due to its privatization of parking services, but Dohoney says the choice is privatization or 344 layoffs.

Cincinnati plans to bolster its green building incentives. City officials are trying to amend the city’s Leadership in Energy and Environmental Design (LEED) standards to encourage higher levels of investment in green projects. Since LEED standards were first approved in 2009, they have been criticized for only offering strong incentives for lower levels of certification. The amendment seeks to make the higher levels of certification more appealing.

University Hospital is being renamed to the University of Cincinnati Medical Center.

An “anti-immigrant bill” proposed by Cincinnati’s Ohio Sen. Bill Seitz is not being received well by Innovation Ohio. S.B. 323 seeks to limit workers’ compensation to illegal immigrants, but the Ohio policy research group is not sure that’s a legitimate problem. The organization is also worried the bill will impose a regulatory burden on the Ohio Bureau of Workers’ Compensation and Ohio’s workers without providing extra funds and training to carry out the regulations.

Ohio is improving in its battle against human trafficking. The state earned a “C” and it was labeled “most improved” in a new report from the Polaris Project. But one state legislator wants to go further by placing tougher standards on “johns” participating in the sex trade. CityBeat previously wrote about the human trafficking problem in Ohio here.

The Ohio Tax Credit Authority approved enough credits to help create about 500 jobs in Greater Cincinnati.

Michigan may have recently passed its anti-union “right-to-work” law, but Gov. Kasich does not share a similar interest.

Kasich will announce his changes to the Ohio Turnpike Thursday and Friday. The governor says his proposed changes will unlock “greater wealth,” but critics are worried Kasich is about to sell off a major public asset.

Ohio Secretary of State Jon Husted is still defending his decisions during the lead-up the election. Husted has now become infamous nationwide due to his pre-election record, which CityBeat wrote about here.

A surprise inspection of the private prison owned by Corrections Corporation of America (CCA) on Feb. 22 revealed higher levels of violence, inadequate staff, high presence of gang activity, illegal substance use, frequent extortion and theft, according to the report from the Correctional Institution Inspection Committee (CIIC), Ohio’s nonpartisan prison watchdog.

The CIIC report found the Lake Erie Correctional Institution had a 187.5-percent increase in inmate-on-inmate violence between 2010 and 2012, leading to a rate of inmate-on-inmate violence much higher than comparative prisons and slightly below the Ohio Department of Rehabilitation and Correction (ODRC) average for all state prisons. Rates of inmate-on-staff violence increased by 305.9-percent between 2010 and 2012 and were much higher than comparative prisons and the ODRC average, according to the report.

Safety and security were major areas of concern, with the report noting “personal safety is at risk.” Fight convictions were up 40 percent, but they weren’t any higher than comparative prisons or the ODRC average, the report found. Disturbances, use of force, access to illegal substances, shakedowns and bunk searches were all in need of improvement, but rounds were acceptable.

How staff handle the use of force and sanctions were particularly problematic, the report said: “Incident reports indicate that staff hesitate to use force even when appropriate and at times fail to deploy chemical agents prior to physical force, risking greater injury to both inmates and staff. Staff also do not appropriately sanction inmates for serious misconduct. At the time of the inspection, the facility had no options for sanctions other than the segregation unit, which was full.”

Fair treatment, fiscal accountability and rehabilitation and reentry were all found by the report to be in need of improvement, with many of the problems focusing on inadequate staff — a common concern critics repeatedly voiced after Gov. John Kasich announced his plan to sell the state prison to CCA in 2011. “The above issues are compounded by high staff turnover and low morale,” the report said. “New staff generally do not have the experience or training to be able to make quick judgments regarding the appropriate application of force or how to handle inmate confrontations. Staff also reported that they are often required to work an extra 12 hours per week, which may impact their response.”

The troubling findings left CIIC with dozens of recommendations for the private prison, including a thorough review of staff policy and guidelines, stronger cooperation between staff, holding staff and inmates more accountable and the completion of required state audits and evaluations.

The only positive findings were in health and well-being. The report said unit conditions, mental health services and food services were all good, while medical services and recreation were acceptable.

The report echoes many of the concerns raised by private prison critics, which CityBeat previously covered (“Liberty for Sale,” issue of Sept. 19). A September audit from ODRC also found the prison was only meeting two-thirds of the state’s standards, and reports from locals near the prison in January warned about a rise in smuggling.

The company that would operate Cincinnati’s parking meters if the city passes its controversial parking plan this week was mired with audited problems and complaints in the past. The issues surfaced years before Affiliated Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing.

A 2007 audit found ACS had failed to take care and keep track of parking meters it operated in Washington, D.C. The audit claimed 35 percent of parking meters listed in ACS’s inventory were missing, about 16 percent of the remaining meters were completely inoperative and 65 percent had problems that ranged from defacing to improper height and stability. ACS also failed to fix meters within the 72-hour period mandated by its contract, according to the audit.

For some residents, the broken meters led to unfair tickets, with 6,888 tickets, or nearly 1 percent of parking meter tickets, being improperly issued at unfixed meters, according to the audit. The audit also found a 903-percent increase in overall parking meter complaints under the privatization contract with ACS.

The audit also questioned the financial gains for Washington, D.C., which had to pay $8.8 million, or 33.4 percent, more under privatization than projected trends under public management.

The bad audit wasn’t enough for Washington, D.C., to cut its contract with ACS, which still manages the city’s parking meters today.

The audit was among a few other problems tipped to multiple media outlets by Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. In 2007, ACS was accused of bribing police officers in Edmonton, Canada, but a judge ruled in favor of ACS, stating there wasn’t sufficient evidence. In 2010, the Securities Exchange Commission (SEC) charged ACS with backdating and falsely disclosing stock options between 1996 and 2005, and ACS consented to a permanent injunction without admitting or denying the charges.

All the discovered problems occurred before 2010, when Xerox bought ACS.

Kevin Lightfoot, a spokesperson at Xerox, says the audit’s findings were based on “faulty information.” He says Xerox and the District of Columbia Department of Transportation found ACS had saved Washington, D.C., money. He also claims the auditor had misunderstood the parking meters’ screen displays, which he says led to the improper identification of inoperative or malfunctioning meters.

CityBeat previously covered the parking proposal, which would lease the city’s parking assets to fund deficit reduction and economic development, in detail. Mayor Mark Mallory and Vice Mayor Roxanne Qualls have endorsed the plan, and it’s currently expected to have the five votes necessary to pass a possible City Council vote today.

On Friday, Councilman Chris Seelbach revealed Plan S, an alternative proposal that would not lease the city’s parking assets and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.

City Manager Milton Dohoney Jr. also put forward his “Plan B,” which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit.

Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years.