Members of City Council on Tuesday urged Mayor Luke Ravenstahl to end his bid to privatize parking assets to shore up the city's ailing pension fund, even as they introduced legislation to sell some assets to the Pittsburgh Parking Authority.
"The mayor's plan has one vote. On the best day, doing the craziest math, it might have three. This proposal is dead," Councilman Patrick Dowd said.
Mayoral spokeswoman Joanna Doven said the mayor's staff would review council's legislation "to see if it's indeed a viable solution to the city's pension problems."
"It's missing a lot of details," Doven said. "We still haven't seen the math. Residents deserve a lot more from their government. We still believe the mayor's plan is the best plan."
Ravenstahl is pushing a plan in which Pittsburgh Parking Partners, a joint venture by the investment firm J.P. Morgan and Connecticut-based LAZ Parking, would pay the city $451.7 million to lease 12 garages and 9,000 metered spots for 50 years.
The mayor wants to put at least $220 million of that money toward the pension funds, which have 27 percent of their $1 billion in obligations and must be 50 percent funded by year's end to avoid a state takeover.
Council's legislation, sponsored by Dowd, Council President Darlene Harris and Councilwoman Natalia Rudiak, is based on a proposal offered by Controller Michael Lamb.
"This is a coming together of ideas," Harris said. "When you get people to a table and really talk, when you have all the facts and figures, then things fall into place."
The legislation proposes the city sell Mellon Square Garage, five surface parking lots and nearly 7,000 meters for $220 million; the Parking Authority would float a 30-year bond for the money, which would be placed directly into the pension funds.
Lamb said any debt created by the sale could be paid off with increased parking revenue.
Under council's legislation, only the Carrick neighborhood would keep its 50-cent hourly meter rate. Other rates, which range from 50 cents through most of the city to $2 Downtown, would range from 50 cents to $3 Downtown by March 31.
Rates would range from 75 cents to $3 by Jan. 1, 2012. By Jan. 1, 2013, the cheapest rate would be $1 an hour; Oakland would be $2, and the highest would remain at $3 Downtown. Meters would be enforced from 8 a.m. Mondays through Saturdays, to either 6 or 10 p.m.
Doven noted that rates in some city neighborhoods under council's legislation would be higher than those proposed under Ravenstahl's lease. But under privatization, some meter fees would rise to $4.50 by 2015.
Council's legislation doesn't address parking garage rates. Rudiak, a member of the Parking Authority board, said final legislation is being drafted for the authority, which must approve the sale. Its next board meeting is scheduled for Oct. 21.
Council could vote on its legislation Oct. 26. It would require the authority to modernize its meters within a year of the sale and set aside money to rehabilitate garages. After the authority pays off the debt, the city could buy back the parking assets for $1.
Officials with LAZ Parking said they would invest $8 million to replace meters within three months.
Lamb said the Parking Authority has a $40 million reserve account, so he believes it could afford the debt.
Council members said that during public hearings about the parking lease, people expressed concerns about higher parking rates.
"We don't want to kill off business by raising parking rates too high," Harris said, adding that the city should retain control of its parking assets and pension fund.
On Monday, Councilmen Bill Peduto and Ricky Burgess said the city should enter the Pennsylvania Municipal Retirement System. Peduto advocates a state takeover; Burgess said the city should lease its parking assets under Ravenstahl's plan and then talk about voluntarily entering the state retirement system.
Retirement system Secretary James B. Allen is scheduled to speak to council Thursday, though he will not be able to tell how much the city would have to contribute to the pension system if the state takes over its management.
Councilwoman Theresa Smith wants to compare proposals to determine what's best for residents. "It's irresponsible to do anything but," she said.
Lamb and several other council members said any plan needs cooperation from Ravenstahl and the Parking Authority, adding, "It'll be interesting to see if we'll get that cooperation."
