In 2007, Donald Shoup summarized the problem with underpriced parking in a New York Times opinion piece: http://www.nytimes.com/2007/03/29/opinion/29shoup.html
In 2009, the City of Chicago addressed this problem while attacking a financial crisis. It leased its 36,000 on-street parking meters for a 75-year term. One outcome was that underpriced parking was dramatically reduced. On average, hourly on-street parking fees will be doubled in four stages from 2009-2013. The number of metered spots will increase and the hours of metering are being extended. Altogether, the total revenue from on-street parking will more than triple. This money will go to a private company who paid the City of Chicago $1.15B.
Some of the commentators to analyze this transaction have been very critical, and there are lessons we can take from this. At the bottom of this post there are several further analytical links.