by German Lopez
Before Xerox buyout, audit found ACS improperly managed parking meters
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
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.