OSU Parking Privatization – News & Updates

[TaraKParticipant]

If you’re interested, a petition against the privatization of the OSU parking is available here.

[Josh LappParticipant]

It’s interesting, I think two weeks ago I snapped these photos on a CABS bus shelter showing some details on where the funding for CABS comes from and the service that is provided.

Oddly less than a week after I first saw them they were abruptly replaced with these:

Its speculation but I’m guessing the higher ups at the University didn’t like CABS posting the funding for the bus service funding which would go away under the privatization plans.In the email Gee sent out last week funding for CABS was not listed as a recipient of the funds coming from privatization.

[TaraKParticipant]

Yeah, the anti-Gee email that went out today didn’t mention it either, but linked to some articles that may have covered it.

Interesting photos — I hadn’t seen those stickers/info, but, yeah, that seems pretty significant.

[JamesParticipant]

TaraK said:
If you’re interested, a petition against the privatization of the OSU parking is available here.

What is the case for signing the petition?

[local championMember]

My thing is this. You are getting a present value in exchange for a future stream of cash flow payments. Simple present value calculation right? So the only variables would be calculating the future cash flows, and choosing the correct discount rate. The problem I see is that OSU might not get the full value of what the parking is actually worth. Why is this? In my opinion the guys at the private equity firms are probably far more intelligent than the guys working under the CFO at OSU, and they can probably better estimate future cash flows, and also pick the more appropriate rate. I would be curious to see what some of the finance professors say about the price. In fact, if the finance professors approve of the deal I would be more likely to side with doing it. I trust that their finance skills are as good or better than the PE guys looking to buy the parking rights. I do not trust that the guys who work in finance for OSU are as intelligent as the PE guys.

[JamesParticipant]

local champion said:
My thing is this. You are getting a present value in exchange for a future stream of cash flow payments. Simple present value calculation right? So the only variables would be calculating the future cash flows, and choosing the correct discount rate. The problem I see is that OSU might not get the full value of what the parking is actually worth. Why is this? In my opinion the guys at the private equity firms are probably far more intelligent than the guys working under the CFO at OSU, and they can probably better estimate future cash flows, and also pick the more appropriate rate. I would be curious to see what some of the finance professors say about the price. In fact, if the finance professors approve of the deal I would be more likely to side with doing it. I trust that their finance skills are as good or better than the PE guys looking to buy the parking rights. I do not trust that the guys who work in finance for OSU are as intelligent as the PE guys.

Can’t osu hire a company to consult on getting maximum value? The experts don’t have to be employees of the University.

[BrianCWParticipant]

I think the biggest issue for me is cost – cost for the students, faculty, and staff. The possibility of the parking passes doubling in 10 years? Way too much. School is already too expensive and allowing the parking to be privitized is a sure fire way to have costs increase at an even greater rate than they would under OSU’s direction.

I understand the fact that large universities are no longer purely educational institutions, but we need to find an appropriate balance between this new reality and keeping education affordable. This outsourcing of parking seems to be more of a grab for immediate money at the expense of current and future students/faculty/staff’s wallets down the road, more than anything. That’s where I have a problem…

[TaraKParticipant]

The whole issue reminds me of those reverse mortgage commercials where you see an old lady holding fanned out $100 bills at the end.

Not only is it kind of a quick fix that, long-term, can end in a lot of lost funds, but it’s also unclear how it will develop as campus changes and develops, and 50 years is a LONG time.

Lastly, as Brian CW stated, campus parking is already pricy enough and rivals costs in much denser, first-tier cities. Even for staff, the A-pass is almost $800/yr. With lots of administrative staff on campus making salaries in the 30k range, that’s a pretty substantial payment for this area.

[jimbachParticipant]

The university stands to be a big loser with privatized parking. Everyone concerned knows this, except the upper administration, who don’t care.

[bferriotParticipant]

OSU parking privatization worse that you possibly could have imagined (link)[/url]

[futuremanParticipant]

TaraK said:
The whole issue reminds me of those reverse mortgage commercials where you see an old lady holding fanned out $100 bills at the end.

Not only is it kind of a quick fix that, long-term, can end in a lot of lost funds, but it’s also unclear how it will develop as campus changes and develops, and 50 years is a LONG time.

Lastly, as Brian CW stated, campus parking is already pricy enough and rivals costs in much denser, first-tier cities. Even for staff, the A-pass is almost $800/yr. With lots of administrative staff on campus making salaries in the 30k range, that’s a pretty substantial payment for this area.

A passes are $720 a year, monthly payroll deducted at $60 per month. Downtown parking in a garage is significantly more than this. At the Columbus Commons garage monthly parking in above ground garage is $95 or $110 for reserved space and for underground $146 or $160 for reserved. While yes, not all A spaces are in garage the vast majority are and you are paying for the ability to park in a garage.

http://admin.columbuscommons.org/uploads/files/CC%20Parking%20Rate%20Sheet.pdf

If you don’t want to pay the $60 a month, you can do what some of my fellow employees do and is to get a WA and park on west campus and take CABS into main campus. @ $15 a month it’s a pretty good deal.

http://tp.osu.edu/facstaff/parking/permitprices.shtml

The parking at OSU, like other places, is considered a business expense so you aren’t paying any taxes on it as well. Just like your health care, which I might add has gone up at a faster rate than parking passes (single person like myself went from ~$65 a month up to $95 in less than four years..

I’m not backing the privatization of parking, but there have been a lot of made up facts being thrown around by the anti groups.

[futuremanParticipant]

bferriot said:
OSU parking privatization worse that you possibly could have imagined (link)[/url]

+1

This is a strong reason to oppose the privatization of parking.

[roryParticipant]

So if the price of parking does go up will more staff members just try to park immediately off campus making that situation even worse. And I wonder if that would be compensated event?

This parking thing seems like a pretty good scam. If you’re a parking company that is.

[leftoversMember]

I have already heard of campus landlords renting spaces in their parking lot backyards to commuter students needing a cheap place to park. It would not surprise me if OSU staff were next. It might help offset the lost revenue from all the Sophomores moving to campus dorms…

[JamesParticipant]

bferriot said:
OSU parking privatization worse that you possibly could have imagined (link)[/url]

If true, that would put me against the proposal.

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