Daley: City Hall botched parking meter privatization

Mayor Daley acknowledged Tuesday what Chicago alderman and motorists have known for months: City Hall botched the privatization of Chicago’s 36,000 parking meters by not transferring meters to a contractor more gradually.

"I'll take the responsibility. I'll take it. . . . There should have been a transition -- a much better transition -- and there wasn't. That's one thing we learned. There should have been a three-month transition," the mayor told reporters at an unrelated event.

Referring to other major assets turned over to private contractors without incident, he said, "The Skyway, parking garages -- everything else worked out. There should have been a three-month transition into it because the parking meters were not in the best of shape."

Ald. Leslie Hairston (5th), who has led the charge against Chicago Parking Meters LLC, welcomed the mayor's mea culpa. But Hairston said it's not enough for motorists who lost money and time after parking at improperly calibrated downtown meters.

"I'm glad that he's stepping up. Then it becomes what do we do make people whole," Hairston said.

"This company knew something was wrong and did not report it and continued to take peoples' money. Everywhere I go, I'm talking to people who put three quarters into the slot and didn't get any time," she said. "There has to be some type of restitution. Everybody is not gonna be able to get their quarters back. But we need to set up a fund and make a good-faith effort."

Earlier this week, the contractor that paid $1.15 billion to lease the meters was taken to the City Council woodshed amid accusations that it blew the takeover, concealed problems and "stole" money from downtown motorists.

The outrage was so great about a 75-year deal tied to a steep schedule of rate hikes, several aldermen believe there may be grounds to cancel the $1.15 billion lease with Chicago Parking Meters LLC.

Never mind that $150 million of the money was used to balance the city's 2008 and 2009 budgets and that $200 million more will be used to offset shortfalls through 2012.

On Tuesday, Daley defended the deal, even as he fell on his sword.

"If we didn't have that [cash infusion], you're talking about a serious economic crisis for Chicago," the mayor said.

He added, "In the long run, this is the best thing. . . . If you had the foresight in your companies to do things we're doing -- to shore up our budget, to shore up our infrastructure and to shore up our long-term debt -- your companies would be better off. But you don't have the foresight in your companies."

Five months ago, the City Council approved the parking meter deal with only five dissenting votes.

The Feb. 13 takeover turned sour when the private contractor underestimated the resources required to reprogram meters and make timely collections so they wouldn’t get jammed with quarters.

That resulted in a rash of broken, overstuffed and mismarked meters. Chicago motorists have vented their anger with a spike in vandalism and a drop-off in on-street parking.