Thursday, September 2, 2010

City Promotes 200 New Jobs With ACS Contract, But Promise is Conveniently Omitted from Contract

This from the Mayor's press release on the ACS parking deal:
On August 20th, Mayor Greg Ballard announced the City selected ACS, A Xerox Company, as the operator of Indianapolis’ public parking system. The ACS team includes Denison Global Parking and Evens Time and was selected from 16 bids as the proposed operator of the City’s meters, garages and lots. The proposal will result in a $35 million upfront payment, with ongoing revenues to the city totaling more than $400 million over the 50 year agreement, in addition to the creation of 200 jobs in Indianapolis.

“This collaboration with ACS will enhance our City’s already vibrant economic environment and, in addition, create 200 new jobs for our residents,” said Mayor Ballard. “Because of this proposal, significant infrastructure improvements will be completed in the downtown and
Broad Ripple areas, but also Rebuilds Indy in another way—through modernizing our parking system and bringing new convenient technology to Indianapolis.”
According to Mayor Ballard's comment on Inside Indiana Business, the Mayor said:
The ACS team will bring additional 200 new jobs to Indianapolis area not related to the parking program over a 2 year period.
That would lead you to believe that that promise is in the ACS contract and would legally bind the company, right? Well, folks, I can't find it. I've been through all 154 plus pages of the contract and exhibits and the document is searchable. I can't find it anywhere. It is just a naked, unenforceable promise that the City is peddling to try to get public support for the insider deal. There is no way the state can enforce a promise of 200 jobs without it being in the contract.


Jon said...

As is typical with all of the new contracts in this city the 'good' stuff is omitted. If it is not in the contract it doesn't exist people! Isn't this an example of a great contract and it only cost 2 million.

Paul K. Ogden said...

No, Jon, in the olden days they would put it in the contract and just never enforce the Pacers parking garage. Now they're so emboldened thinking they can do whatever they want they don't bother putting it in the contract.

M Theory said...

$350 an hour we pay those attorneys.

I just want to live in an honest city. Is that asking too much?

Unknown said...

Even if there is a term in the contract binding the company to produce 200 jobs, would the city's legal department enforce it?

Just look at the Pacer's contract. Supposedly, the Pacer's would have to pay millions to pick-up and leave Indianapolis. When the Simons were threaten to leave, no attorney at City Legal was threatening to enforce that provision.

Jon said...

Paul, you are correct, it slipped my mind that this is the city that gave away Pan Am Plaza, free updates to Conseco, free parking for the Pacers & Simons, free Circle City rent, 40+ million to Veolia etc. In this town contract are merely showmanship.