Indianapolis Goes with a Hybrid – May have a winner
The City of Indianapolis has recommended to its city council a hybrid contract made up of Xerox owned ACS and two local companies Evens Time, and Denison Global Parking. You can read the complete story here. From the news releases:
The ACS proposal, which consists of a hybrid revenue sharing model, will provide the City with a $35 million upfront payment with a continuing a stream of revenue from parking rate increases and violations. ACS expects the City to collect approximately $400 million in ongoing revenue share over the length of the contract. Proceeds from the parking system will be used for infrastructure projects, including streets, sidewalks, bridges and parks, in the downtown and Broad Ripple.
"This collaboration with ACS will enhance our City's already vibrant economic environment and, in addition, create 200 new jobs for our residents," said Mayor Ballard. "Because of this proposal, significant infrastructure improvements will be completed in the downtown and Broad Ripple areas, but also Rebuilds Indy in another way—through modernizing our parking system and bringing new convenient technology to Indianapolis."
I don't know the entire story, but it seems the city of Indianapolis didn't lease its parking operations for a huge up front payment that would be used to cover budget shortfalls. It has a small payment and then ongoing income that will be used for streets, sidewalks, parks, and the like. This means that the City will continue to be closely involved in the team that is providing the parking services.
I know the owners of both Evens Time and Denison Global Parking personally and couldn't be happier for them. They are both quality companies and being local, they have a vested interest in succeeding, not only business wise, but also as members of the community.
The jury is still out, of course, but if this is approved, it seems to be an excellent deal for all concerned.
JVH
UPDATE: I'm reminded by Sherry Evens of Evens Time that there is another partner in the group, PR firm Sease Gerig. Wow -- Having a PR firm as a partner. Does this mean they are thinking about the PR issues involved in this type of program? Good move.
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