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Mayor releases revised parking lease proposal
Wednesday, August 11, 2010

Pittsburgh Mayor Luke Ravenstahl today released a final version of his proposed parking lease that he said incorporates many of the public's suggestions but also includes some tradeoffs to keep the deal attractive to prospective bidders.

Among other changes, the revised lease bans meter enforcement citywide on Sundays, stops meter enforcement at 6 p.m. other days of the week in certain neighborhoods and freezes all meter rates at their current levels until March 31, 2011.

In return for these changes, Mr. Ravenstahl agreed to expand a no-compete zone, Downtown, that discourages construction of new public parking garages by the city and parking authority. The no-compete zone would not affect private developers or certain government bodies, such as the Urban Redevelopment Authority.

The new version of the lease also commits the city and parking authority to more thorough, uniform enforcement of parking meters citywide.

Mr. Ravenstahl has proposed leasing parking garages and meters to a private party for 50 years, a deal he says would generate at least $100 million for parking authority debt and $200 million for the pension fund.

After releasing the initial version of the lease June 30, Mr. Ravenstahl held three public meetings to gather public input. City Council, which has given the lease plan a rocky reception, held its own round of meetings.

"It was my goal to give the public and council plenty of time to review this plan and offer suggestions and changes," Mr. Ravenstahl said in a statement. "Their input was valuable, and many of their suggestions are reflected in the final proposal."

The revisions address concerns raised both at the city and neighborhood levels--and give some breathing room to communities that are struggling or striving to get ahead.

The initial version would have allowed hourly meter rates citywide to increase this fall. Now, meter rates would be held at current levels until March 31, 2011, and the winning bidder wouldn't be allowed to charge more than $1.50 per hour at any meter until it installs technology giving drivers multiple payment options.

In the initial version, meter enforcement would have been permitted after 1 p.m. Sundays. In the final version, Sunday enforcement is banned altogether. There is no Sunday enforcement currently.

Also under the initial version, meters citywide would have been enforced until 10 p.m. Monday through Saturday. The final version stops enforcement at 6 p.m. in certain neighborhoods, including Allentown, Beechview, Carrick, East Liberty, Lawrenceville, the Mellon Park area and the West End.

Meter rates in Carrick, now 50 cents per hour, would be frozen at that level for the first five years of the lease "to allow competition with bordering suburban business districts." In the initial version of the lease, hourly meter rates in Carrick would have risen to $1 by 2014.

In Bloomfield, which is bracing for the loss of as many as 1,500 jobs at West Penn Hospital by year's end, meter rates around the hospital, now 50 cents per hour, would remain at that level until Jan. 1, 2012. The rate would increase to $1.50 per hour by 2015.

In the initial version of the lease, hourly rates would have increased to 75 cents in the first year of the lease and to $2 by 2014.

The new version of the lease does not alter the rate increases Mr. Ravenstahl previously proposed for parking garages, one of the more controversial aspects of his lease plan.

The final version of the lease is part of the "request for proposals' that the city released today. Now, seven prequalified bidders have until Sept. 15 to submit proposals. The mayor's office then will select a winning bidder and ask council to approve the contract.

Initially, Mr. Ravenstahl had wanted council to vote on a contract with the winning bidder by Sept. 15. Now, with proposals not due until that date, council's vote will have to be pushed back.

Council members are divided on the merits of the proposal, but Mr. Ravenstahl has called the lease necessary to avoid a pension fund takeover that, he said, would require higher annual payments that the city could make only with major tax increases or service cuts.

The revised lease says bidders must disclose any relationships with lobbyists or other agents when they submit their proposals. Citing the magnitude of the contract, Councilman Bill Peduto and Controller Michael Lamb had insisted that the city's year old lobbyist-disclosure law be applied to the bidders.

The final lease also:

* Allows the leaseholder to rent advertising space in parking garages and on metering devices, but requires revenue-sharing with the city and authority.

* Requires the leaseholder to maintain an office in Pittsburgh for the duration of the lease.

* Requires the leaseholder to provide bicycle parking on every block that has parking meters.

* Sets a timetable for the leaseholder to rehabilitate garages at Smithfield Street/ Liberty Avenue; Ft. Duquesne Boulevard/Sixth Avenue; and Ninth and Penn Avenues. In all, the work will cost about $50 million.

The no-compete zone for Downtown parking garage construction initially covered an area roughly bounded by Fort Duquesne Boulevard, Fort Pitt Boulevard, Grant Street, the 10th Street Bypass and Liberty Avenue, plus an area bounded by Ross Street, the Boulevard of the Allies and the Parkway East.

The new zone essentially connects those two areas, increasing the no-compete by zone many blocks.

Private developers and certain government agencies may continue to build public parking garages in the zone; the no-compete clause does not apply to them.

In addition, the city and parking authority may build parking garages in the zone for government buildings, libraries, parks, schools and other enumerated purposes. However, if the city and authority want to build garages for general-purpose public parking, the leaseholder would have the opportunity to prove revenue loss and seek compensation.

The final version of the lease also commits the city and parking authority to what the mayor's office called "stronger enforcement standards," including a commitment to have parking enforcement officers visit each meter every few hours. During a one-year enforcement ramp-up, the city will tap the leaseholder's assistance with enforcement and pay the leaseholder $6 per ticket.

Joe Smydo: jsmydo@post-gazette.com or 412-263-1548.

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First published on August 11, 2010 at 1:07 pm