Big Apple Explores Parking Meter Privatization
Uh-oh.
New York City seems to be taking tentative steps toward embracing privatizing their parking meter system, according to the Wall Street Journal.
After putting the initial idea on hold for several months, New York Mayor Michael Bloomberg has restarted the process exploring the idea of a private firm operating the city’s 39,000 parking meters.
The Bloomberg administration believes, and rightly so, that the Big Apple lags behind in parking technologies and services compared to other major American cities. They feel the right private firm could embrace cutting edge parking related technologies like pay by cell phone, in pavement sensors and dynamic pricing, to name a few.
But, the city is very conscious about not repeating the many, many, many mistakes Chicago made when it privatized it’s parking meter system back in 2008.
New York’s parking meters raked in about $149 million in 2011.
To put that in perspective, Chicago grossed around $24 million in revenue in 2007, the year before the meter deal was signed. In 2010, Chicago Parking Meters showed revenue of close to $80 million.
Here’s the Wall Street Journal’s full report, “City Explores Private Deal For Meters.”
New York needs to get a copy of Chicago’s Lease….and use it as a guide for ‘what not to do.”
It worked so well for Chicago… why not?
I know it is a nitpicky point but it iritates me to no end. NYC DOES NOT collect $149 million in revenue from its parking meters. It is not possible given the state of their technology. Their program is the same size as Chicago’s, the rates in Chicago are higher, and Chicago does not have coin only meters (mostly except in some low use area’s). How can NYC revenmue be twice as high as Chicago.
The problem with Chicago was not the “privatization” of the parking meters per se, it was the manner in which it was done. Certainly, for example, if the City had contracted with LAZ to provide parking meter services and provided for the revenue increases in a form of revenue sharing that would be far less offensive. (LAZ has to take care of the admin and the new Tech and gets 50% of the revenue, the City, which OWNS the property on which the meters sit gets 50% of the revenue.) But instead the City signed a bad contract and sold its “birthright” for a bowl of pottage.
Chicago and its residents got a one shot burst of revenue in exchange for many years of getting screwed in the pocketbook.
Such idiocy is a frequent issue with politicians.
GO for it New York, it will come back to bite you many times over.
Ed,
I see your points, but if a NYC DOT spokesperson is telling the WSJ that it collected $149 million, what else can you say? We just reported on the story and it clearly says “$149 million”.
Perhaps they have more meters than what the WSJ is reporting. You are right, the back of the envelope math seems off.
Ed, can you point us to some more reliable data on this?
I know you were just quoting the story and my comment wasn’t directed at you. Love the site.
I don’t have any other data about new york. I assume they are either including revenue from off-street lots that they own/operate (if they have any) or enforcement revenue or street permits or something. Parking data is notoriously difficult to get. I don’t know why.
One factor which may raise the NYC revenue is that fact that more NYC spots are under constant demand. Many spots in Chicago sit vacant or near vacant for most of the day. NYC, which is smaller in size with more population, has far fewer spots which sit empty.
David
This might have a small impact on the revenue per space, but if can’t make up the difference. Coin meters just can’t take in more than 1700 times the hourly rate per year. This is due to technical factors such as coin availability, enforcement, and outage rates at single space meters.
Thanks for the kind thoughts Ed.
I may do a little checking to see if there is any corresponding or contradictory info on NYC’s parking meter revenue out there as you’ve piqued my curiosity.
Ed,
It’s late, I’m tired and I don’t want to run the numbers. So, being a lazy bastard, is 1700 x the hourly rate, what you come up with based on the number of meters, hours of enforcement and current NYC rates?
If so, then there’s something definitely wrong with one or more of those numbers in the WSJ story.
Geek and Ed….
Municipalities never post real numbers….that’s what the FOIA is for.
PTG
It’s empirical.
Any basis for the 1700 claim? That seems low for a city like new York. That’s five hours a day. Do you have any studies? The cited reasons, well at least two of them are pure BS. coin availability? Really? That’s clearly bull s–t. Enforcement? 50% non-compliance ? And the third is also suspect. That would pre-supose that 30% or more of all meters are out of service at any one time. That’s not bs, that’s simply a lie.
From the WSJ article: “The city’s 7,800 muni-meters represent only a slightly more modern approach—they accept credit and debit cards—than the 31,000 single-space meters that gobble coins in boroughs outside Manhattan.”
The degree to which people are unable to grasp even basic math is surpassed only by their willingness to cast stones from a position of ignorance. $149 million / 39,000 meters = $3,820.51 per meter per year. $3,820.51 / 300 days = $12.74 per meter per day.
With rates at $3/hr on most spaces, what don’t you math geniuses get? Unbelievable.
This article says that they have 85,000 paid on-street spaces.
at 1700 times an average rate of $1.00 that would equal $144 million.
The article also says they have 31,000 single space meters and 7800 multi space meters.
So who knows.
http://online.wsj.com/article/SB10001424052702304371504577406520809312032.html#articleTabs%3Darticle
Your comprehension of New York City is on par with your math skills.
To be clear, that is not a compliment.
Hey Mr. Grace
It’s arithmetic not math
Chicago has about 36000 metered spaces. They are grossing about $80,000,000 annually. Their average rate is $2.19 (2012). This equates to slightly over 1000 hours per meter.
Oof, why the harsh words Amazed Grace?
The harsh language is a product of frustration observing people ignorant on a topic feeling free to cast stones. Ed clearly knows nothing about NYC or parking meters (including how many coins accumulate when one uses a credit card).
But his ignorance doesn’t stop his from hurling stones and making accusations. Basically, if you don’t know what you are talking about, shut the hell up or at the very least don’t criticize others. Many of those who post use VERY harsh words towards others (the mayor, city officials, etc). So why are my harsh words, so noteworthy?
Hey Amazed
It is just common sense.
I didn’t hurl any stones or critizice anyone here and (no offence) I doubt the deputy mayor of NYC reads this blog.