WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
December 6th, 2013 By German Lopez | News | Posted In: News, Mayor, City Council, Streetcar

Mayor: Feds to Allow Streetcar Review

City has until Dec. 19 to make decision on project

streetcarRendering: CAF USA / City of Cincinnati

The Federal Transit Administration (FTA) will allow Cincinnati to keep $44.9 million in federal grants for the $132.8 million streetcar project until midnight on Dec. 19 while the city reviews the costs of canceling or completing the project, Mayor John Cranley announced on Facebook on Friday.

The FTA's decision gives the city two weeks to assemble a team and conduct its audit, which a slim majority of City Council agreed to do on Wednesday when it put the streetcar project on pause.

Without the federal grants, the streetcar project would have lost one-third of its funding and presumably died, even if a majority of City Council decided it wants to continue with the project.

The city is currently working to hire KPMG, an audit, tax and advisory firm, for the audit, according to Jay Kincaid, Cranley's chief of staff.

Council members David Mann and Kevin Flynn in particular asked for the review before they make a final decision on the streetcar.

Streetcar Project Executive John Deatrick previously warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants.

Mann and Flynn were among a majority of council members who voiced distrust toward Deatrick's estimates, hence the need for an independent review.

But the review might not matter if Cranley decides to veto any ordinance continuing the streetcar project, which Kincaid said Cranley would do if he deems the project too costly following the audit.


A mayoral veto would require both Flynn and Mann to help provide a supermajority — six of nine council votes — to save the streetcar. That could prove a considerably higher hurdle than a simple majority of five council members.

Update: Added who the city plans to hire for the audit.

 
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