Parking Rejects Bond Review Proposal

The Pittsburgh Parking Authority Board has put the breaks on City Council’s plans to fund the pension program by selling its parking assets. By a 3-2 vote, the board rejected a proposal by Pittsburgh City Councilwoman and board member Natalia Rudiak that would have sent out a request for proposal to get bids to review the viability of a $220 million bond issuance. Specifically, the RFP would have asked for bids to appraise the assets, hire a consultant to look at what rates could be charged, hire a financial advisor to review the viability of the bond and hire bond council to look at the tax status of such a bond. Some members of council and the Pittsburgh Controller believe it would be a tax exempt bond but the mayor’s office disagrees. The City Council was hoping the Parking Authority would approve the proposal and then eventually let the bond and purchase a city owned garage, 5 surface lots and miles of parking meters. Rudiak reminded board members that they were only voting for an RFP, not to purchase the assets. Board member and City Finance Director Scott Kunka called that a “ruse” and voted no. Christopher D’Addario followed suit and board member Linda Judson voted no saying she did not think the Parking authority was where such a review process should begin. Judson says council could do the work but she added that if the city council were to hire consultants she hopes the board would have input into the review process. Natalia Rudiak says the idea is not dead and she will return to council members to look at other options. Mayor Luke Ravenstahl says he is drawing up a budget that assumes the pension will be taken over by the state. During the public comment portion of the meeting Mayor Ravenstahl told the board that he would not support any plan that put the city further into debt. “It is irresponsible to open a new credit card to pay for an old credit card,” says Ravenstahl. He says the vote was a waste of time.

Mayor Condemns Council's Pension/Parking Plan

Pittsburgh Mayor Luke Ravenstahl today rejected city council's plan to sell Pittsburgh's parking assets to the Parking Authority in order to pay down a portion of the city's pension debt. "I have no intention whatsoever of supporting this plan and I think if the residents of the city saw it they would support that position as well." Ravenstahl cited the lack of public airing of council's plan and the parking rate hikes that it would implement as two of his chief concerns, as well as the still unknown financial burden that a state takeover by the Pennsylvania Municipal Retirement System would require. One of council's issues with the mayor's plan to privatize the city's parking garages and meters was the steep hikes it would mean for residents. Today, Ravenstahl called their concern disingenuous, while comparing the rates council would implement to help pay down the 30 year bond the Parking Authority would float to purchase the parking assets for $225 million. Legislation will be presented to the Parking Authority Board on Wednesday to buy the parking assets and Ravenstahl says he won't seek to influence their decision though he hopes they'll reject it. He plans to hold a meeting on Monday at 1 p.m. in council chambers to compare his recently rejected plan for a private takeover of the parking assets, to city council's plan.  His plan would have leased parking assets to LAZ Parking and JP Morgan Asset Management for $452 million dollars for 50 years - council panned his proposal 7-1. Ravenstahl says if some other action isn't worked out he will veto council's plan and prepare for state takeover.


Click here for more information on council's pension/parking plan.

Council Moves Forward on a Pension Plan

Pittsburgh council approved a preliminary plan today that would sell the city's parking assets to the Parking Authority for $220 million, float a 30 year bond to buy those assets and increase parking fees to pay down the debt. Under the plan, that payment would lift the city's pension fund to the 50% funded level; currently it hovers below the 30% funded mark. The 50% level means state takeover would no longer be mandatory. But a number of question marks remain. The Parking Authority still has to approve the deal and councilwoman Natalia Rudiak, who also serves on the Authority's Board, plans to introduce legislation to the Authority next week. Mayor Luke Ravenstahl would also have to approve the deal and he has said he's not interested in allowing the city to take on any more debt. Yet another scenario would allow the city to bring the pension fund to 50% percent funded by selling assets to the Parking Authority and then turning the fund over to state control voluntarily. Everyone is still waiting on the Pennsylvania Municipal Retirement System to give hard numbers on how much the city would have to pay into the pension fund annually to bring it to the fully funded level. Council also discussed the need improve the technology used at meters and garages and in collection to move the city's parking into the 21st century. Councilman Ricky Burgess--who favored he mayor's plan to privatize parking assets and a voluntary take over by the state--was the lone no vote on all of the parking/pension legislation.