by German Lopez
Parking lease facing legal dispute, critical memo dismissed, mayor to attend streetcar social
In a letter to the city solicitor, a conservative organization is threatening more legal action
to stop the city’s plans to lease its parking meters, lots and garages
to the Greater Cincinnati Port Authority. The Coalition Opposed to
Additional Spending and Taxes (COAST) claims the city manager exceeded his authority when he
made two “significant and material” changes to the lease agreement after
City Council approved the deal in March. If the city solicitor doesn’t
take up the legal challenge, COAST could sue the city by itself.
Supporters of the parking lease argue it’s necessary to fund development
projects in the city and modernize the city’s parking services, but
opponents say it gives up too much control over the city’s parking
meters, lots and garages and will hurt businesses downtown.
The Business Courier reports that a critical parking memo was supposed to provide a “strike point” for negotiations between the Port Authority and Xerox,
which will manage the city’s parking meters under a lease agreement.
But the city administration didn’t begin sharing the June 20 memo with
anyone else, including the Port Authority, until July 12, after council
members and media outlets began asking the city administration about it.
The memo suggested the city is getting a bad deal from the parking lease agreement and overpaying Xerox. Port and city officials argue the memo relied on outdated information and made technical errors.
Mayor Mark Mallory will today join fellow streetcar supporters
at Rhinegeist Brewery to discuss the streetcar project’s latest news
and future. The city on July 15 set an opening date of Sept. 15, 2016
after finalizing a construction contract with Messer Construction, Prus
Construction and Delta Railroad, which was made possible after City Council closed a $17.4 million budget gap in June. CityBeat recently debunked some of the misrepresentations surrounding the streetcar project here.
Commentary: “Zimmerman Reactions Overlook Broader Racial Issues in America.”
Public access media organization Media Bridges is shutting down
following city and state funding cuts. The organization’s demise is a
great loss to producers like Rufus Johnson, who used its resources for years. The city picked up Media Bridges’ funding after the
state eliminated a fund that was provided by Time Warner Cable, but even the local funding was fully cut in the budget passed in May. City officials
have justified the cuts by pointing to citizen surveys that ranked Media
Bridges poorly in terms of budgetary importance, but a CityBeat
analysis found the surveys were skewed against the low-income
Cincinnatians that benefit the most from public access programs like
State Rep. Peter Beck, a Republican from Mason, is facing multiple felony charges
related to securities fraud. A lawsuit filed in Hamilton County by
investors alleges that money invested at the request of Beck and others
was used for personal gain — specifically, Beck’s campaign — instead of a
business investment as originally intended. Beck has been in power
since 2009, and his current term is set to expire in 2014.
A former poll worker was sentenced to five years for voter fraud after she voted twice for herself and three times for her sister, who’s been in a coma since 2003.
The driver who last August accidentally hit and killed a local cyclist is awaiting his sentence.
Local bike advocacy groups are asking courts to give the maximum
penalty to the driver, who’s facing at most six months in jail and a
The local housing market is rapidly recovering in a
continuing good sign for the economy, with single-family home permits up
48 percent in June compared to the year before, according to the Home
Builders Association of Greater Cincinnati.
Cincinnati Reds games are No. 3 for local TV ratings in all of Major League Baseball, behind only the Detroit Tigers and St. Louis Cardinals.
Xavier University is laying off 31 employees and cutting 20 currently vacant positions.
A Miami University student is getting an astronaut scholarship, making him one of 28 students nationwide to receive the honor.
Entrepreneur says Cincinnati is an “unexpected hub for tech startups.”
A new self-aiming rifle would outshoot human snipers.
Popular Science has a guide for arguing against anti-vaccine crazies here.
by German Lopez
Posted In: News
at 10:52 AM | Permalink
Previously unreleased memo spurs renewed calls to reject parking lease
The city administration today disputed the findings of a June 20 memo that suggested the city is getting a bad deal from its parking lease agreement with the Greater Cincinnati Port Authority, but it has not said why the memo wasn't passed along to City Council members and Port Authority during the three-plus weeks since the administration received the memo. In its own memo released today, the city claims that the June 20 memo, which was first reported by WCPO yesterday, is outdated and makes a few technical errors.The June 20 memo from Walker Parking Cosultants, a parking consultant hired by the city, found it will be 257 percent more expensive for the new private parking operator to run the city’s
on-street parking services in comparison to what the city currently spends. It also
concludes the city isn’t getting as much revenue as other cities got
under their own parking leases.
“The on-street operating expenses shown in the model are
projected to grow at a faster rate than operating revenues,” the June 20 memo
claims. “The city should expect a private operator to run the parking
system more cost effectively than the current operation, not less
effectively. Therefore, revenues should be expected to increase at a
rate faster than expenses, not slower.”
The memo’s numbers come through estimates provided by
ParkCincy, the operating team set to take over the city’s parking meters, lots and garages
following a decades-long lease agreement between the city and the Port
In particular, the memo highlights what it claims are
extraordinary payments requested by Xerox under the deal: The private
parking operator is asking for a $627,063 fee in 2013, putting about
14.6 percent of projected net operating income to management fees.
That’s far higher than the typical 2.1 percent to 2.3 percent found in
similar parking deals in other cities, according to the memo.
The city disputed the findings in its own memo this morning.
“The information that Walker used was from an early point
in time; the deal was subsequently negotiated from that point to improve
the deal,” wrote City Manager Milton Dohoney in his own memo. “For
example, the profit margin used was based on different parking deals in
other cities that are not the same as ours. As we know, the Cincinnati
model is unique in many ways.”One such trait: Cincinnati’s parking deal includes modernizing the city’s parking meters to accept credit cards and mobile payment.
The city cited a letter from the Port Authority sent to
City Solicitor John Curp during an email exchange on July 12, the same day the Port Authority was given the June 20 memo. The letter contradicted what Port Authority CEO Laura Brunner claims are inaccuracies.
“In its memo, Walker Consulting bases its comparisons on
price, yet doesn’t qualify the information with what level of service
capabilities are included in the price,” the Port Authority’s letter
reads. “The Port Authority is basing its purchasing decisions on price,
but also level of enhancement to the on-street system that mirrors the
City’s desire to modernize these vital assets and position them to
enhance economic development opportunities downtown and in City
Besides this “‘apples to oranges’ comparison,” the Port
Authority’s letter disputes many of the technical details behind
the June 20 memo, particularly questioning some of the measurements
used and comparisons that don’t account for differences between Cincinnati’s parking lease and other cities’ agreements. It also emphasizes that contracts with Xerox and other companies
are not finalized yet.
Much of the focus is now on why the June 20 memo
was kept from City Council, the Port Authority and the public for nearly a month, given the
memo’s controversial findings about a controversial deal.
“The city administration misled the public for months on
the need for the deal, saying it was needed to avoid laying off cops and
firefighters and then they don’t do it. Now it’s keeping vital
information from the public and council. It’s a violation of the public
trust of the highest order,” Democratic mayoral candidate John Cranley said in a statement. “I am urging the
Port to reject this deal that is bad for the City.”
Cranley and other city officials, including several City
Council candidates and council members P.G. Sittenfeld, Christopher
Smitherman and Charlie Winburn, signed a letter to the Port Authority
asking the city-funded agency to reject its agreement with Xerox.
The city manager’s office couldn’t be immediately reached for comment. This story will be updated if further comments
The parking lease was finally signed by the city and Port
Authority in June after months of political and court battles. The
deal was signed even though a majority of City Council now opposes the
lease after the city managed to balance its budget without the parking
deal and without laying off cops and firefighters.City Council approved the parking lease on March 6, more than three months before the June 20 memo was given to the city administration.
In return for the lease, Cincinnati is getting a $92
million lump sum and at least $3 million in annual payments, according
to city estimates. The city plans to use that money to pay down future
budget gaps and fund development projects, including the I-71/MLK
Interchange.Update: Clarified Port Authority didn’t receive the memo until July 12.
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.