Is ACS Misappropriating City Property?

I read with interest this line from the Indianapolis Star's story on the increase in the parking meter rates as of today.

New Top Placed on
Rusty Parking Meter
ParkIndy has drawn criticism for leaving rusty meter poles and bases and replacing only the heads. Lou Gerig, a spokesman for ParkIndy, said that as pay boxes go in, leftover meter parts that are in good condition will be used to replace older hardware on remaining individual-space meters.

Over at Advance Indiana, Gary Welsh reports on the replacement of meters:
The multi-space pay boxes were the cornerstone of what councilors were sold when they approved the deal last year. ACS is installing the electronic meters on the poles for now, which are actually used meters that were removed from another city where they were previously used. By installing the older technology now, ACS is getting immediate access to revenues it will generate from the 50-year lease that includes the higher rates and extended hours. ACS will use those revenues to finance the cost of installing the more costly multi-space boxes over time for most but not all spaces. ACS plans to use newer poles already purchased by the city to put on the remaining parking spaces where it intends to use its used electronic meters. In other words, ACS and the Ballard administration flat out lied about how much money ACS would invest up front to install new parking meter technology.
Read closely the italicized information in the two quotes.   Am I reading that right, that ACS, er "ParkIndy," is going to appropriate city property as its own instead of supplying the hardware?  We taxpayers own those meters that they plan to cannibalize and use for parts for other meters. We taxpayers bought those poles.  Where in the contract did we as a city give that property to ParkIndy?  Wasn't the deal that the vendor was supposed to provide the hardware for the parking meters, not the taxpayers.

As a side note, it's interesting to hear IndyPark's spokesperson, Lou Gerig change from day to day the story about when ParkIndy is actually going to replace the parking meters.

Note:  Picture is from the Indianapolis Times story on the parking rate increase which can be found here.