SHAH ALAM City Council (MBSA) only expects to finalise an agreement for the implementation of Selangor Intelligent Parking (SIP) in four to six months.
Mayor Datuk Fauzi Mohd Yatim said it was in the midst of reviewing the tripartite agreement involving Rantaian Mesra Sdn Bhd (RMSB), Selmax Sdn Bhd and MBSA.
“We have already issued the letter of acceptance (SST). Now, we are fine-tuning the agreement to ensure the council’s interests are protected, which we expect to sign within four to six months.
“The SST is more of a preliminary phase, while the agreement will spell out key matters in detail such as the portions involved and the responsibilities of each party,” he said when met after MBSA's full board meeting in Shah Alam.
Fauzi added that the implementation of SIP in Shah Alam had already begun.
He said MBSA, which currently records annual parking revenue of about RM27mil, had been assured that earnings would not fall below the present baseline.
Separately, Selayang Municipal Council (MPS) said it had only issued the letter of acceptance for SIP to the new operator.
MPS councillor U Chin Ong had asked for clarification on whether parking collection had decreased in August under the SIP.
“We always allow a grace period when there is a change in operations before concluding if there has been a drop or increase in collection.
"During the transition period, there may be some fluctuations in the amount collected.
"By September, we should be able to get the accurate figure,” said MPS president Shahman Jalaludin after the full board meeting.
Previously, MPS collected about RM330,000 in parking fees monthly.
The council manages 15,400 parking bays, including 58 with a two-hour limit.
Three councils - MBSA, MPS and Subang Jaya City Council (MBSJ) - had agreed to adopt SIP from Aug 1.
Under the system operated by RMSB, 50% of parking revenue will go to the concessionaire, 40% to the local council and 10% to Menteri Besar Selangor Incorporated.
