Source: Alex Goldmark, Transportation Nation, July 11, 2012

In 2006, New York inked a two decade privatizing city bus shelters, sidewalk sheds, city benches and even sidewalk newstands. The Spanish company Cemusa would take on the cost of building them and earn back the money through advertising. This kind of deal is growing more popular around the country as municipal governments shy away from capital spending, and business operations like ad sales on public property. Today, an NYC audit finds bus shelter maintenance lacking. This little case study reveals the mixed bag that can come from outsourcing city functions to private companies…. But here’s the thing: Cemusa subcontracts the work to other companies. That’s permitted under the agreement. Those subcontractors aren’t doing their jobs well according to the audit. …