NYC Parking P3 Goals: Own Meters, Outsource Operations

When New York’s Mayor Bloomberg announced that he plans to outsource management of more than 80,000 parking meters, he specifically noted he did not want to repeat Chicago’s mistakes. What happened? Details, lessons, research, the actual RFP, and more is inside.

What Happened?

New York’s Mayor Bloomberg announced that he plans outsource management of more than 80,000 parking meters across all five boroughs.

Quick History

This is a loaded issue with major revenue implications. The city of Chicago’s highly criticized deal to outsource parking management was considered a fiscal disaster. The Chicago deal was a one-time exchange; the city gave a Morgan Stanley-led partnership a 75-year lease on city meters in exchange for approximately $1 billion. The city quickly burned through the cash, and ostensibly cut itself off from $11 billion in projected revenue.

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The Lessons

New York is not eager to repeat Chicago’s mistakes. Specifically, the city does not want a one-time payment. Instead, New York wants to own the meters, but simply hire a third-party operator. New York also wants to remain in control of two key components: enforcement and rate control.

The Reaction

Mixed, as expected. Some critics immediately noted that the move would be a mistake, and would “leave us paying thirty bucks an hour to oil barons in Qatar and Saudi Arabia in order to park for dinner in the West Village” (sovereign wealth funds benefited from the Chicago deal). Others were more controlled in their comments, noting that the city was aware of Chicago’s mistakes and wouldn’t repeat them.

Across the Country

The outsourcing of parking enforcement is, of course, being implemented or considered elsewhere across the country. Just this week, the outsourcing of parking was met with resistance in Hermosa Beach, Calif. Despite the fact that outsourcing could improve service and cut pension and health care obligations, the mayor showed concern that outsourcing would result in more tickets, angering visitors and residents.

Learn More

The original New York outsourcing announcement is here, and the city’s actual “request for qualifications” is also available for review.

The International Parking Institute provided research and case studies that outlined potential advantages and disadvantages.

Also available is a case study on outsourcing that included some interesting insights on parking outsourcing challenges in Washington, D.C., and elsewhere.

Do you have lessons, experiences, or thoughts on outsourced parking? We want to hear from you; contact editor Barry Greenfield at bgreenfield@efficientgov.com

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