Jordan Miles Officers Reinstated

After spending more than a year on paid leave, the three Pittsburgh police officers involved in the beating of Jordan Miles have begun the process of being reinstated to the force.

Officers Michael Saldutte, David Sisak, and Richard Ewing beat the CAPA high school student in January of last year when they believed he was resisting arrest. Miles says he did not know the men were police and was running out of fear. The decision to reinstate the officers came a day after the US Attorney’s office decided to not pursue charges against the officers. Police Chief Nate Harper said they relied on that investigation and the investigation of the city’s Office of Municipal Investigations.

The officers will have to undergo a physical and receive updated training before returning to the force. Harper said it is still unclear if the officers will be put back in uniform or if they will return as plain clothes officers. They will not return to zone 5.

Harper says he hopes the incident will serve as a teaching experience. “We hope that young people realize that when a police officer approaches them, if they’ve done nothing wrong, to see what the police officer wants instead of running away from the police officer,” said Harper, “also for the officers to realize that because a person runs, it may be in fear.”

The decision to reinstate the officers came before the Allegheny County District Attorney makes a decision about pursuing or not pursuing charges. “We spoke to them this morning, there are a few documents that the law department will give over to the DA’s office, but I am very comfortable bringing the officers back,” said Harper.

Mayor Luke Ravenstahl hopes the community will find a way to heal. “I don’t believe there is anybody in Pittsburgh… who doesn’t wish that the events of January 12th 2010 did not occur,” said Ravenstahl.

The city has applied for a federal grant to launch programs to build more trust between the police and the community.

City Gives Away Trees

For the fourth time in as many years the city of Pittsburgh will celebrate Earth Day by giving away saplings. 1,000 free dogwood saplings will be given out on a first-come, first-serve starting at 10:00 am Thursday at the City-County Building Portico.

“We were so excited by the overwhelming response to all of our free tree giveaways, that we’ve decided to make this an annual Earth Day event,” said Pittsburgh Mayor Luke Ravenstahl. Last year the line to get the 10-inch trees wrapped around the City-County Building.

The tree giveaways are part of the city’s efforts to restore tree cover in the Pittsburgh region by planting 20,000 trees by 2012. The program’s secondary goal is to better educate residents on the importance of trees and proper planting and care of trees. Information about tree care will be available at the event.

Council Looks to Liberate $0.7 Mill

A budget fight between a few Pittsburgh City Council members and Mayor Luke Ravenstahl could boil down to semantics. Councilman Bill Peduto, who is also the Council Finance Committee Chairman, has introduced a bill that he thinks will free up for future capital projects about $700,000 locked in a G20 account. However, the mayor’s budget office says the money does not exist.

Peduto says the council encumbered $12.8 million to pay for the Pittsburgh G20 Summit in September of 2009 but it only spent $12.1 million. Peduto says that leftover money could be used elsewhere. His bill would close out the account and move the funds back into the capital budget. The move seems to stem from the administration’s reluctance to pay for some capital projects saying there is not enough money in the account.

“They are basically looking at over the past 15 years all the different projects that have come through. Some of them have already been completed and there are funds leftover,” says Peduto. “If you account for all of those, of course there is no money.” The administration has said that there is $66 million in capital projects waiting for money and just $28 million in the bank.

Peduto says it is time to start clearing the city’s books before it switches over to a new accounting system later this year.

The administration agrees with the idea of the bill but differs with Peduto when it comes to the impact the bill will have. The Budget and Finance Department says it is good book keeping to clear out old projects but it feels the action will not actually move any money.

Peduto says this is just the first of several bills like this that he will be introducing in the coming months. “We need to start getting things like this out and the G20 is a very easy one for people to understand because it was recent, it is over, it was an event that occurred and for the past couple of years now we have not been paying any bills yet we still have about $700,000 left in that account.”

The bill will come up for debate Wednesday.

Parking Rates at Center of Council v. Mayor Feud

When the Pittsburgh City Council passed the 2011 budget by overriding Mayor Luke Raventsahl’s veto, it anticipated additional money from the Pittsburgh Parking Authority through higher parking rates. Those new rates have yet to go into effect and the fingers are starting to point.

The payment in lieu of taxes (PILOT) from the Parking Authority is to double to $2.6 million this year and then grow to $9.3 in 2012 and beyond. Taxes from the higher would also increase the city’s revenues. It is all part of the council’s plan to shore up the city’s sagging pension fund.

The Intergovernmental Cooperation Authority (ICA) approved the budget, which was passed on the last day of the year, and its members are now asking if the budget will remain in balance. During a recent ICA meeting Board Chair Barbara McNees said, “ We are going to have to do some analysis on this, see where everybody is on this.”

Where they are right now is fighting. “What we’ve asked council for is kind of an outline of what they feel the appropriate rates are to meet the goals they have set forth for the budget,” said Mayor Luke Ravenstahl at a recent public event.

The council created a list of parking rate increases for use during the budget debate and as recently as last month sent it on to the mayor’s office at his request. But the numbers do not satisfy Ravenstahl. “They have given us the numbers but the data behind it doesn’t add up to the amount of money they’ve suggested, the problem is it doesn’t get us the revenue we need,” said Ravenstahl.

“I’ve not seen numerical evidence of that, I’ve not seen any financial analysis of that,” said Pittsburgh City Council Member Natalia Rudiak. “I’d like to have a real conversation about that, it sounds like a talking point, I want to see the spread sheet.” Rudiak, who is also a Parking Authority Board Member, suggests that the Council Budget Director and the Mayor’s Budget Director sit down in a room and work out the differences. Until now nearly all of the conversations have been by mail or through the media and Rudiak is upset. “We need to work together to make sure our pension fund is fully funded. I’m not playing games,” said Rudiak.

If the new rates are not approved by the board in the next few months there will not be enough time to collect the extra funds by the 4th quarter of the year when the payment is due. That means the Parking Authority would either have to find the money elsewhere to make the PILOT or the city would have to find the money in its budget.

Mayor Ravenstahl is looking to Rudiak to act as a member of the Parking Authority Board. “The Authority is the only one able to raise those rates,” said Ravenstahl. Rudiak introduced a plan to raise rates in the fall and the board rejected the idea. The mayor appoints all five members of the board.

Rudiak believes it is up to the mayor to get the new rates in place. “We as city council are a legislative body, we write legislation. The mayor and the administration are the executive body it is their job to execute whatever legislation the city council passes,” said Rudiak.

The Pittsburgh Parking Authority next meets April 21. Council will investigate the six-year budget outlook at a special meeting Tuesday.

Pgh. Program Aims to Reduce Blight

Neighborhood organizations in Pittsburgh will have a chance to tidy up some vacant lots in their communities, thanks to a new grant program created by the city using federal Community Development Block Grant (CDBG) funds.

The Vacant Lot Clean Up Grant Program will give four or five community groups about $10,000 each to help transform blighted lots into gardens and parks. The 3,400 lots eligible are all Pittsburgh-owned properties in the 30 city neighborhoods that qualify for Community Development Block Grants.

Pittsburgh’s Director of Neighborhood Initiatives Kim Graziani says the grants will provide enough money for each group to clean up about 11 lots. Graziani says while some community groups do this kind of work already, funding is hard to come by.

“Helping folks to provide funding for that not only shows that we appreciate the work; we also want to provide opportunities for folks to have jobs doing this kind of work,” says Graziani. “It really shows a level of investment and pride in these lots that is really hard to attain at the city level.”

Graziani says city residents know which lots in their neighborhood need to be cleaned up the most, so the city is allowing community groups to propose a plan rather than requesting certain lots be revamped.

Proposals must be submitted by April 18 so contracts can be finalized in early May. The grants cover the 2011 growing season of May through October.

More information can be found at the city’s website.

Mayor Launches ‘ServePGH’

With an eye on making Pittsburgh and even more livable city, Pittsburgh Mayor Luke Ravenstahl has launched a new citywide civic volunteerism program. The ‘ServePGH’ program is a multi pronged effort to get more residents involved in their city.

The city has already launched a Civic Leadership Academy where residents are trained to learn how to lead community groups, start block watches and launch other community-building activities. Today Mayor Ravenstahl unveiled four other efforts that will form the basis of ServePGH.

Taking the spotlight today was the “Mayor’s Mentoring Initiative” that gives city workers up to two hours of administrative leave per week to mentor middle-school students. The program piggybacks on a mentoring program launched last year by the United Way of Allegheny County. United Way President Bob Nelkin says many kids in the city need to see adults who hold everyday jobs. “Our kids don’t know what those jobs and careers are, They may have the dream of being an NBA star but they need to know what the real jobs are in health fields and in other fields.”

Toni Kendrick is a principal in a Pittsburgh Public school on the North Side. She says she has seen firsthand the impact of mentoring. “Students who are mentored receive better grades… are less likely to be involved with drugs and street violence… [and] students with mentors are 86% more likely to attend college,” says Kendrick. Her school is home to 55 sixth graders with United Way mentors this year and she says 28 of them are on the Honor Roll.

Other prongs of the ServePGH program will be rolled out in the coming months. The “Love Your Block” program will roll out this spring along with the “Redd Up Zone” effort. Both programs have the goal of cleaning up neighborhoods and instilling more civic pride. A “Snow Angles” program will launch in the fall, calling on residents to volunteer to shovel the sidewalks and driveways of neighbors who can’t do it themselves. “When I grew up, I used to love snow and when I became the mayor I now hate snow,” says Ravenstahl. He says we all have to deal with the snow and many seniors need help.

It is unclear if the mayor plans to adopt a sidewalk but he says he will be taking on a mentee. “I can’t with a straight face ask our directors and city employees to go do something I’m not willing to do myself,” says Ravenstahl.

City/County Finance Merger Passes Preliminary Vote

Pittsburgh Council has given tentative approval to a plan that would merge the city’s financial database system with Allegheny County’s.

Council’s support for the $5 million merger is unanimous, but Mayor Luke Ravenstahl says he’ll only agree to the plan if the state gives Pittsburgh $9 million for the sale of the Municipal Courts Building. Ravenstahl says the city should also seek cheaper proposals.

Councilman Bill Peduto argues while the new financial system might bring up-front costs, it will save Pittsburgh money in the long run.

Peduto says the mayor’s arguments are “red herrings” and he should work instead on a backup plan if the state money doesn’t come through.

Peduto, the Finance Chairman, also called for a series of April meetings to map Pittsburgh’s financial plans.

“Short-term: get all these issues resolved. Middle-term: get through the next six years and have a capital budget, be able to pay the pension costs, be able to pay the debt, the legacy costs,” says Peduto. “And then look long-term at a vision of where the city needs to be.”

Peduto says if the city manages its finances well, it should be able to shed state oversight in six or seven years.

Council, Mayor Debate Action on Financial System

City officials debated the future of Pittsburgh’s outdated financial data system in Council Chambers today, with much of the discussion hinging on the receipt of state funds.

Everyone agrees that Pittsburgh’s PeopleSoft financial system has been outdated for as long as ten years, but there is no consensus on how to replace that system.

One option is for the city to merge its system with Allegheny County’s. Controller Michael Lamb says that deal would cost about $5 million up front, but the administration estimates an immediate $8 million plus $4 million in annual fees.

Mayor Luke Ravenstahl says Pittsburgh should pursue a less expensive choice if the city doesn’t receive $9 million from the state, which has been pending since the 2008 sale of the Municipal Courts Building.

Ravenstahl says if the city doesn’t receive that money, he’d prefer to issue a request for cheaper proposals.

“Is that going to take longer? Of course it is. The other alternative would be to identify the $8 million needed now, the additional $4 million over the next 5 years in annual costs, and identify that $12-13 million in the budget, and move along, paying for this out of city taxpayers’ pockets,” says Ravenstahl.

Councilwoman Theresa Smith says regardless of state funding, the city should pursue the cheapest option it can, rather than the county deal.

Lamb says he signed a 2008 contract with the County to merge systems, but also that it was contingent on the receipt of $9 million from the state, which hasn’t happened yet.

“There’s obviously been a change in administrations in Harrisburg, and they’re examining everything. I’ve yet to hear anything other than that money is coming through, but I do have the same concerns that the mayor and his administration have, in that ‘Why don’t we have it yet?’ because it’s been years,” says Lamb.

The mayor urged council to join him in requesting the $9 million from state government.

City Council Calls Meeting on City/County Financial Management

Six Pittsburgh City Council members have sponsored legislation that would direct the city to join Allegheny County's comprehensive financial management system--a move favored by state overseers, the county, the city controller—everybody except the mayor. There will be a public, televised meeting attended by all the parties tomorrow at 1:30.

Councilman Bill Peduto says work has been going on for five years to improve the city's current, antiquated system, and the mayor’s preference for a cheaper system with the Pittsburgh Water and Sewer Authority is "crazy" because nowhere in the country is a water and sewer authority in charge of the finances of a city.

The nine million dollar cost to join the county is what a modern system costs, according to Peduto, and will enable savings in such areas as the cutting of payroll checks, which now cost $1.5 million a year to outsource.

Peduto says City Council has the votes to override a mayoral veto.

Pension Drama Continues

After a lengthy meeting on Thursday that followed a year of lengthy meetings surrounding the topic, Pittsburgh City Council members voted for a pension bailout proposal that would devote the city's commuter tax to the existing fund so the city can avoid the December 31st deadline for a state takeover. The city will not be able to touch $13 million dollars they make from a commuter tax annually for the next 31 years and will have to raise that money from parking increases.

Ravenstahl said the plan was slated to fail and would only lead to higher taxes and service reductions and repeatedly stated that he would not approve it. In an effort to work along with city council, he agreed to veto the proposal so council could override it and meet the deadline. All council members voted in favor of the plan except for Ricky Burgess who abstained from voting.

"I don't want state takeover but council has put us in this position by not doing the plans that are workable. At the ninth hour without any due diligence, without any research, plans we are putting something to the wind that we don't even know will work. Its jumping off the cliff blindfolded with the hands tied behind the back. I don't like state takeover but at least I want to protect the city's resources," he said to reporters after the vote.

Ravenstahl Won't Veto Bill to Fund Pension

Pittsburgh Mayor Luke Ravenstahl says although he doesn’t like it, he won’t veto Council’s plan to fund the city’s pension to 50% of its obligation by using money from scheduled parking rate increases. Council approved the plan today.

Pennsylvania threatened to take over the pension system if it wasn’t half-full by January.

Ravenstahl says he has four problems with Council’s plan: it doesn’t use any revenue from the parking rate increases to fund the Pittsburgh Parking Authority; it has no revenue source other than the city and taxpayers; it doesn’t give a long-term solution to the pension fund problem; and it wouldn’t prevent a state takeover if parking revenue is less than expected.

Ravenstahl says it’s likely that Council’s revenue projections were too high because it assumes all revenue from the rate increases will go to the pension fund.

“We shouldn’t expect the Parking Authority to give every last red cent that they receive in parking increases to the city. That’s not going to happen. That’s not realistic,” says Ravenstahl. “Once again, I’ll advocate for them to be helpful, as helpful as they can be, while still fulfilling their mission.”

Ravenstahl adds the Parking Authority cannot legally meet before the end of the year, and it’s required to commission a study before it increases any parking rates.

Ravenstahl says he won’t stand in Council’s way by vetoing the bill if Council Members think this plan will work. However, he says he will not sign the measure.

Mayor: First Night Will be Safe

Pittsburgh Mayor Luke Ravenstahl says people should not be afraid to come downtown for the First Night celebrations. In an effort to set aside some public concerns that big events in downtown Pittsburgh are no longer safe, Mayor Ravenstahl says there will be beefed up patrols in the golden triangle New Year’s Eve. He says the gunfire during Light Up Night was an isolated event. “We, as a city, can’t let a few idiots get in the way of a wonderful event,” says Ravenstahl, ”We are determined from a police department prospective and a public safety prospective not to let that happen.”

Ravenstahl says there will be additional officers downtown and they will be keeping an eye out for groups of people like those that gathered on light up night and eventually caused problems. “What I can tell the people of Pittsburgh today is you will be safe, come downtown experience this wonderful event and you should not let a few bad apples ruin your experience with your family on this New Year’s holiday,” says Ravenstahl.

First night usually draws about 35 thousand revelers. The Cultural Trust says there could be another 20-30 thousand on the streets December 31st thanks an influx of visitors in town for the winter classic hockey game on the north shore the next day. Visit Pittsburgh says every hotel room downtown is booked for New Year’s Eve.

Mayor Spends Budget Address Blasting Council

Pittsburgh Mayor Luke Ravenstahl spent more time chiding City Council during his annual budget address this morning than he did laying out the numbers. Mayor Ravenstahl says council members are sending the city into a “financial nightmare” if they do not approve his plan to lease the city’s parking assets. The mayor says he has balanced the 2011 budget and a five-year plan by using reserves but he says the picture will be very different in the sixth year. “The first year following the five year plan our fund balance will be depleted. We will be forced to make a $91 million payment to the state pension system,” says Ravenstahl, “ That is a quarter of our city’s entire budget and more than it costs to operate any city department.”

Ravenstahl says that can all be avoided if the council would just approve his plan to lease the parking assets and use the proceeds to shore up the faltering pension program. He says he refuses to take on more debt as has been suggested by some council members and he hopes he and the council can find a way to revive the lease plan. Council members have been invited to meet with the mayor this afternoon to talk about a modification of the lease bid submitted by J.P. Morgan and LAZ Parking. The administration believes that can be done without having to issue a new request for proposal.

Councilman Bill Peduto says today was the mayor’s day to talk to the council about the budget and that did not happen. “I did not hear the budget today. I heard a lot of lobbying on behalf of a ‘Wall Street’ plan but I missed out on the budget today,” says Peduto. Councilman Doug Shields says he was, “a little bit chagrined to hear it is all council’s fault.” “There is a viable plan that the council enacted on the table and he does not seem to be making mention of that fact,” Says Shields. Shields and Peduto both say it is in the mayor’s best interest to listen to council’s ideas in an effort to find a solution.

The mayor says he did not spend his time talking about the budget because it is very similar to the 2010 spending plan. He says it contains no tax increases, no service cuts and no new programs so he thought it better served the public to talk about what is looming in the future. Spending in 2011 will come in around $450 million with a slight addition to the surplus. The five-year plans calls for a surplus in 2012 and then deficits in the next three years. The mayor says he also hopes to talk to the state about new revenue options but he thinks it is clear that the state will not talk until the city “puts its own financial house in order,” and he thinks that includes leasing the parking assets.

Mayor Ravenstahl characterized the relationship he has with council as “not good.” Doug Shields says the current mayor and council have it the worst relationship he has ever seen.

Listen to the mayor's budget address to council here.

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.

Market Square Opening

Although it never fully closed, Market Square was fully reopened at a small ceremony on Tuesday morning. Mayor Luke Ravenstahl joined Rob Stephany of The Urban Redevelopment Authority, Mike Edwards of the Pittsburgh Downtown Partnership and Jason Capps, owner of Bella Sera- Urban Trattoria and others to celebrate the completion of the renovation.

"Today our vision for this public space became a reality," he said, referring to the closure of the roads that ran through the historic space, widened sidewalks, tree plantings and making the square more of a public space with plenty of outdoor seating.

The renovations cost $5 million dollars.

Council and Mayor Spar Over Pension

More than four hours of debate, lecturing, name calling, and posturing in Pittsburgh City Council Chambers today all boiled down to a single question. The question posed to Mayor Luke Ravenstahl by Pittsburgh City Councilman Bruce Krauss came more than three and half hours into the meeting, “So we are at a stalemate?” Ravenstahl answered, “That’s a fair word, sure.” That short exchange may have made all of the other talk around the conference table moot.

The council has rejected the Mayor’s plan to fund the pension program up to at least 50% through the lease of parking assets for the next 50 years and the Mayor says he will not support the council’s plan to sell assets to the Pittsburgh Parking Authority to fund the pension program. If the city does not get its pension program up to the 50% funded level by the end of the year state law will force the Pennsylvania Municipal Retirement System to seize control of the pension’s assets and layout a schedule to make the plan fully funded within the next 30 years. Everyone agrees a take over by the PMRS will lead to higher minimum payments. How large those payments will be should be known by the end of next week but the Mayor’s office has estimated it will cost the city an additional 27 million dollars next year.

The meeting opened with Mayor Ravenstahl outlining why he thought the council’s plan was irresponsible. He says it is based on what he believes to be an erroneous assumption that a bond floated by the Parking Authority would be tax exempt. If the IRS deems the bond to not be tax-free it would increase the interest rate by 2 to 3 percent. The council disagrees. While pension bonds are usually taxable, City Controller Michael Lamb and Councilman Patrick Dowd argue that it is would be a bond to purchase an asset, not a pension bond. The Mayor also believes the plan puts the parking assets at risk. Council moved its plan partially based on the argument that it keeps “public assets public” while the Mayor’s plan would give control of the assets to a private company. Ravenstahl says the poor financial condition of the city and the parking authority, coupled with the poor condition of the garages means “it is a very real possibility” that the authority would default on the bond. “That means that the public assets would become the assets of Wall Street,” says Ravenstahl. Under the lease deal the assets return to the city in 2051.

The meeting nearly disintegrated after the Mayor’s presentation when he began to asking councilwoman Natalia Rudiak questions about the viability of the plan and its chances of being accepted by the Parking Authority. Council President Darleen Harris scolded the Mayor for asking questions saying a post agenda meeting is intended to help the council gather information, not to launch a debate.

After cutting to the heart of the mater with his question to the mayor, Councilman Bruce Kraus suggested that the council should stop looking at either plan and instead begin talking about how to best deal with a state pension take over. “So lets be honest and call it what it is and begin to do our due diligence and make certain that however the state is to administer this plan it become administered in the most efficient manner with the least impact on services that need to e delivered and the least impact on city employees,” says Krauss. Councilman Ricky Burgess says all of the council’s efforts to derail the mayor’s plan were aimed at forcing a state takeover and them put the blame on the mayor.

At one point Councilman Bill Peduto suggested that the city should look at a hybrid plan. He says the city should consider increasing parking rates on the same schedule as is suggested under the Controller’s plan and then use those funds to help cover the increased pension payments that would come following a state takeover.

Council Rejects Parking Lease, Angers Firefighters

On a 7 to one vote with one abstention today, Pittsburgh City Council officially rejected Mayor Luke Ravenstahl's proposal to lease parking authority assets to a private company in an effort to shore up the underfunded pension fund. The 50-year lease would have resulted in more than $450 million dollars for the city. $220 million of it would have been used to raise the pension program above the 50% funded level to avoid a state takeover. After the vote the firefighters who had packed the council chambers gathered in the hall to listen to their president Joe King. King rallied his members by painting a picture of a city budget that he says will be 25-32 million dollars in the red. “All of this debt is going to fall on the
Home owners and the employees and the businesses of this city, “ says King, “ and I’ll tell you who should be held accountable, those nine people in there.” King says the firefighters will remember the vote when they go to the poles next year. He then called on council to reduce the city’s budget by reducing the size of city council. King warned his members that he believes the city will begin to “brown out” the department. He says the city cannot layoff firefighters so it will selectively, temporarily close firehouses to save on overtime. King says, “this is not about safety, this is about money.”

Council still has several options before it. A plan created by city controller Michael Lamb and sponsored by Council members Darlene Harris, Natalia Rudiak and Patrick Dowd calls for the city to sell the parking garage lots and meters it owns to the Parking Authority for $220 million dollars. That money would then be used to shore up the pension fund. The Authority would have to issue a bond to cover the cost. The proposal also gives the authority the ability to set rates without council approval. Dowd admits that it will lead to hire parking rates but he says the increase will be much less than if the assets were leased to a private company. “Given the choice between handing over the assets to a private company or a public authority, I’ll take the authority every time,” says Dowd.

Councilman Doug Shields says he will listen to the details of the controller’s pan at a meeting and debate it in council tomorrow but for now he still likes the idea of a state take over of the pension plan. He notes it is the only option that puts the pension plan on a 30-year path to being fully funded.

Voting for the lease deal was Ricky Burgess. Theresa Kail-Smith abstained.



LAZ Parking issued a written statement following council’s no vote expressing its disappointment. It reads in part, “Our expertise in operating, investing in and managing parking systems around the country would have provided great benefits to the City, its residents, visitors and downtown commuters…. Over the past several weeks we have had the opportunity to speak with members of Council and made several suggested amendments to be sensitive to the matters raised by Council Members.” The company says it will have other opportunities in other cities looking to better manage their parking assets and tackle fiscal challenges. The statement ends, “Our hope is that the City of Pittsburgh and other municipalities and government agencies around the country learn how important it is in a process like this one to have alignment between City Council Members, the Office of the Mayor and other important stakeholders.”

Mayor's Office: Pension Data Headed to State

A spokesperson for Pittsburgh Mayor Luke Ravenstahl says the administration will send actuarial data to the state before today’s noon deadline. The deadline was set out by a subpoena issued by city council this week. However, the administration stresses the data is being handed over out of good will, not in reaction to the subpoena. Council members asked the Pennsylvania Municipal Retirement System for an exact amount that the city would be obligated to pay if the city’s pension fund were to be taken over by the state. System Secretary James Allen informed council members that he did could not produce the number because the city never sent him the raw data. Council then issued a subpoena to the Mayors office demanding that the data be handed over by noon Friday. Ravenstahl spokesperson Joanna Doven says the administration feels the subpoena is not legal but it will turn over the data in a spirit of cooperation. Doven says the administration will work with the PMRS in anyway necessary.

Council is requesting the payment information as it reviews alternatives to leasing the city’s parking assets. The money generated by the 50-year lease will be used to prop up the city’s failing pension program. The fund is currently less than 30% funded and the state has said if that number does not hit 50% by the end of the year it will take control of the fund. Mayor Ravenstahl has said that if the state takes over the fund it would mean annual city payments to the pension fund would increase by as much as $27 million, resulting in budget cuts and/or tax hikes.

Upon learning that the state could not make the calculation due to a lack of data Councilman Bill Peduto questioned how the Mayor’s office arrived at the $27 million figure. Doven says the city, with approval from the city council, hired Mockenhaupt Benefits Group to make the calculation. The $27 million dollar number is based on the analysis from that company. Council has given itself till the end of the month to come up with alternatives to the mayor’s plan to lease the parking assets for the next 50 years to J.P. Morgan Asset Management and Connecticut-based LAZ Parking, for more than $450 million.

Forging Asian Relationships

Mayor Luke Ravenstahl, accompanied by regional economic development officials, will deliver the keynote address at a meeting of international business leaders in Shanghai, China and then travel to Seoul, Korea, which is hosting the next G-20 meeting in November.

Dennis Yablonsky, CEO of the Allegheny Conference on Community Development, says the publicity Pittsburgh received as host of the G-20 last year has spread the story of the city's economic transformation around the world, attracting interest both as a model and as a place with potential for business relationships.

Yablonsky says in both Shanghai and Seoul, there will be group meetings with companies who might be interested in making job-creating capital investments in the Pittsburgh region.

Officials with the Pittsburgh Regional Alliance will also go on the trip, October 6-15.

Parking Bid Higher Than Expected

The high bidder to take over operation of Pittsburgh's parking garages and meters is Pittsburgh Parking Partners. It's a consortium of investors advised by J. P. Morgan and P-4 partners, an affiliate of Hartford-based L.A.Z. Parking. L.A.Z. manages mores than 1,300 locations in 99 cities in 21 states. The offer is $451 million for the 5o year lease of the garages and meters.
Mayor Luke Ravenstahl wanted a minimum of $300 million, $100 million of which would go to wipe out Pittsburgh Parking Authority debt, and the other $200 million to bolster the city's sagging pension fund.
The city has until January to get the pension fund's assets up to at least 50% of its nearly $990 million obligations toward retired and current city workers. The pension program is currently about 28% funded. If the city does not reach the 50% level by January, the state has threatened a takeover.
The mayor has said the money left over from lease could be funneled into the pension fund or used for capital improvements. “This number certainly exceeded our expectations and further solidifies my view that this partnership is the best solution to protect our residents from the burden of higher taxes, more debt, or serious service cuts. I look forward to having more productive discussions with council members and I hope that they support this plan. ”

In addition to the upfront payment, the 50-year partnership agreement requires the operator to invest at least $50 million over the next 15 years to overhaul and rebuild three aging Downtown garages. In addition, the agreement lays out requirements for the operator to implement new parking meter technology, such as those allowing meter payments by credit card or mobile phones. This investment is estimated to cost the operator more than $8 million dollars. Ravenstahl wants City Council to give its approval by October 1.

But City Council Finance Chair Bill Peduto called this bid just the "end of the first quarter of the game" and that he's pleased they have a baseline to work from....
"But there are still three other options on the table. First, the Mayor’s proposal to privatize parking. Second, keeping the asset public and doing a bond deal to finance the pension gap. Third, joining with cities from across Pennsylvania in a state pension program. Fourth, a hybrid of the above options....... we still need to know the true value of our parking assets. Friday’s release of City Council’s independent consultant’s analysis will provide the value of the asset, as well as independent economic analysis of the options. This information will provide the framework for a healthy discussion in the coming weeks about what is best for the citizens of Pittsburgh.”