PROJECT SUMMARY
Once considered one of the nation's best parking operations, Washington, DC's parking meter program fell victim to vandalism in recent years. During 1996 and 1997, more than half of the District's 40-year-old, on-street meters became inoperable, reducing monthly revenues from the more than $1 million to $196,000 by February 1998. Faced with increasingly an intractable problem, the District turned to the private sector to design a program that would quickly restore the on-street meter inventory and all financial benefits as well as improve the overall delivery of parking services.

In pursuing this initiative, the District became the first city in the nation to privatize its parking meter operations-a bold endeavor considering the political environment in which it operates. While maintaining control of the elements central to parking management regulation and policy decision, the District has creatively used the capital resources and operational expertise of its private-sector partner to restore a program to its former world-class status. Although no two jurisdictions are identical, the success of this innovative partnership provides a model that other medium-size and large cities can use to finance capital acquisitions and improve delivery of municipal operations.

The sight of thousands of headless meters on the city's streets had severely tarnished the District's image, giving it the look of a war zone. In a city like DC that hosts millions of visitors every year, the new meter program has dramatically improved the aesthetics of the city streets. The new meters consist of a high-grade, cast iron case that is three times thicker than other models, which has dramatically reduced incidents of vandalism. Although vandals either stole or ripped the heads off of more than half of the District's previous meters, 99 percent of the District's new meters are now operational at all times.

From a consumer convenience standpoint, the electronic meters have been embraced wholeheartedly. They allow drivers to use nickels, dimes or quarters. And their quartz timing mechanisms reduces the possibility that consumers will get short-changed. Complaints about meter malfunctions, coin jams or other problems have dropped dramatically. The electronic meters-installed two months earlier than scheduled-can also be retrofitted for "smart-card" use, meaning motorists will be able to pay for their parking with a swipe of a card.

Almost immediately, the meter program succeeded in boosting meter revenues to more than $1 million per month, avoiding previous monthly losses of $800,000. By partnering with a private-sector partner, the District was able to avoid the multi-million dollar expense of replacing its 40-year-old meter stock. By privatizing its meter operation, the District has also reduced its program operating costs significantly because Lockheed Martin IMS now handles all program operation and maintenance responsibilities. In addition, to guard against the possibility of future meter outages, the District has assurances of guaranteed meter revenues from its private-sector partner.