Mayor Mark Mallory last
night announced during his State of the City address that the city
has chosen the model and vendor for the first batch of streetcars.
The mayor's office today released details about the vendor, along with renderings of the streetcars Cincinnatians can expect to see traversing the 4-mile
loop that will cover 18 stops connecting The Banks, Government Square, Fountain
Square, Broadway Commons, the Gateway Quarter and Music Hall.
According to the release,
the vendor, CAF USA, has produced light rail vehicles for Pittsburgh,
Sacramento and Houston and streetcar vehicles for the international
cities such as Besançon and Nantes, France; Belgrade, Serbia;
Antalya, Turkey; Stockholm, Sweden; Edinburgh, Scotland; and Spanish
cities Zaragoza, Granada, Sevilla, Bilbao and Vitoria.
Officials in February broke ground the Cincinnati Streetcar system, and the city hopes to add additional phases connecting the Uptown area near the University of Cincinnati once funding is secured.
The following are renderings released by the city:
The MLK/I-71 Interchange project is supposed to be funded through the city’s parking plan, but mayoral candidate John Cranley, who opposes the parking plan and streetcar, says the city should instead use federal funding that was originally intended for the streetcar project.
Between 2010 and 2011, the streetcar project was awarded about $40 million in federal grants — nearly $25 million through
the Urban Circulator Grant, $4 million through the Congestion Mitigation
and Air Quality (CMAQ) Grant and nearly $11 million through TIGER 3.
The grants are highly competitive and allocated to certain
projects. In the case of Cincinnati, the grants were specifically
awarded to the streetcar after it was thoroughly vetted as a transit, not highway, project.
The Department of Transportation (DOT) website explains why the Urban Circulator Grant is only meant for transit projects like the streetcar: “Urban circulator systems such as streetcars and rubber-tire trolley lines provide a transportation option that connects urban destinations and foster the redevelopment of urban spaces into walkable mixed-use, high-density environments.”
The CMAQ Grant’s main goal is to fund projects that curtail congestion and pollution, with an emphasis on transit projects, according to the Federal Highway Administration. The website explains, “Eligible activities include transit improvements, travel demand management strategies, traffic flow improvements and public fleet conversions to cleaner fuels, among others.”
The DOT website says TIGER 3 money could go to a highway project, but one of the program’s goals is promoting “livability,” which is defined as, “Fostering livable communities through place-based policies and investments that increase transportation choices and access to transportation services for people in communities across the United States.” TIGER 3 is also described as highly competitive by the DOT, so only a few programs get a chance at the money.When asked about the grants’ limitations, Cranley said, “I believe … the speaker of the house, the senator, the congressman, the governor and the mayor could petition and get that changed. Just because that may have been the way they set the grants in the first place doesn’t mean they can’t change it.”
The parking plan would lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority and allocate a portion of the raised funds — $20 million — to the MLK/I-71 Interchange project, but the plan is currently being held up by a lawsuit seeking to enable a referendum.
The streetcar is one of the few issues in which Cranley and Vice Mayor Roxanne Qualls, a streetcar supporter who is also running for mayor, are in stark contrast (“Back on the Ballot,” issue of Jan. 23).
Cranley’s opponents recently accused him of originally supporting the streetcar when he was a council member through two 2008 City Council motions, but Cranley says those motions, which he co-sponsored, only asked the city administration to study the merits of a streetcar plan, not approve of it. Cranley voted no on the first streetcar resolution in October 2007 and the motion to actually build the streetcar in April 2008.
“I’ve never said that I’m against the (streetcar) concept in all circumstances,” Cranley says. “I wanted to know if there was a way that they could pay for it in a way that wouldn’t take away from what I thought were more important priorities.”
Mayor Mark Mallory is working to thwart an effort by Cincinnati’s own U.S. Rep. Steve Chabot (R-OH) to prevent federal funding from being used to construct a streetcar in the city. Chabot offered an amendment on June 27 to the 2013 Transportation and Housing Urban Development spending bill that would bar federal transportation money from being used to design, construct or operate a “fixed guideway” project in Cincinnati.
Mallory called Chabot’s move “nothing but a political stunt.” Mallory today said in a press release that he is reaching out to legislative leaders in both the U.S. House and Senate to remove the amendment. Mallory said he’s also making calls to the White House.
“Steve Chabot seems determined to stop progress in Cincinnati,” Mallory said in the release. “He seems determined to make sure that other parts of the country thrive, while Cincinnati is left in the past. That is not the kind of leadership that we need in Washington, D.C..”
The city has procured a $25 million federal Urban Circulator Grant. That funding would not be jeopardized, as the Chabot amendment would only apply to federal funding for fiscal year 2013.
The U.S. House approved the amendment on a voice vote. To become law, it would have to be passed by the Senate and signed by the president.
“Far from a necessity, the Cincinnati streetcar is a luxury project that our nation and our region simply cannot afford,” Chabot said during testimony on the House floor.
Some opponents of the amendment worry that it could prevent funding for other transportation as well.
According to the U.S. Department of Transportation, fixed guideway refers to any transit service that uses exclusive or controlled rights-of-way. That means the ban on federal funding to those modes of transportation could apply to ferryboats, designated bus or carpool lanes and aerial tramways in addition to streetcars.
Chabot’s office did not respond to a request for comment on Tuesday. (Andy Brownfield)
That means the city could potentially spend more than 94 percent of the project’s total costs before it manages to fully close down the streetcar project, which is currently undergoing construction and tied up to various federal grants and business contracts.
The presentation was given in advance of Mayor-elect John Cranley and the newly elected City Council taking office in December. Cranley is an ardent opponent of the streetcar project, and a majority of the City Council says it wants to pause the project and consider cancellation.
Cranley’s proposed alternative to the streetcar — a trolley bus system
— would cost $10-$15 million in capital funds, according to supporters of the rubber-tire trolley alternative. If streetcar cancellation costs were to reach the high end of the city’s estimate and the trolley bus is paid for, the city could end up spending $140.3 million to cancel the streetcar project and build a
considerably less ambitious trolley bus line — about $7.5 million more
than it would cost to simply complete the streetcar project.
If it’s completed, Cincinnati Budget Director Lea Eriksen says operating the streetcar would cost between $3.4-$4.5 million each year, which city officials say could come from various potential sources, including a special improvement district that would raise property taxes within three blocks of the streetcar route.
But the operating budget cost would be a wash if Cranley pursues the trolley bus system, which, according to advocates, will cost slightly more to operate than the streetcar. Cranley says the operating cost for the trolley bus is concerning if it holds true.
Following Deatrick’s presentation, Cranley held a press conference in which he flatly denied the current city administration’s estimates. He says he will tap new experts to run over the numbers while the project is put on pause.
“We’re going to bring in new, objective leadership, not the current leadership that is clearly biased toward the project and intent on defying the will of the voters, which was clearly expressed a couple weeks ago in this election,” Cranley says.
Deatrick’s cancellation projections account for $32.8 million in estimated sunk costs through November and a potential range of $30.6-$47.6 million in close-out costs, which include construction to close the project — such as repaving torn-up roads — and orders on vehicles and other supplies that are already placed but not officially billed.
The federal government has also allocated $44.9 million in federal grants to the streetcar project. In a letter released by the city administration on Nov. 14, the Federal Transit Administration (FTA) explicitly stated that $40.9 million would be taken back if the project didn’t adequately progress; the remaining $4 million would be left under the supervision of Gov. John Kasich, who could shift the money to other parts of the state.
But Deatrick’s estimates don’t consider the unknown cost of litigation, which would need to come out of a city operating budget that is already structurally imbalanced, according to Meg Olberding, the city’s spokesperson.
The estimates also don’t consider that the city could potentially forgo spending $7.4 million in contingency funds on the project if it goes through completion and remains within budget, which would lower the project’s effective cost to $125.4 million.
If the city cancels the project, Deatrick says it’s also more likely that the city would lose in its legal battle against Duke Energy, which could add up to $15 million in costs. That money is tentatively allocated from the sale of the Blue Ash Airport as the city and Duke argue in court as to who has to pay for moving utility lines to accommodate for the streetcar tracks.
Those are the potential financial costs, but city officials also warn that canceling the project could have a detrimental impact on the city’s image.
“That’s what the city would be known for forever,” says Councilwoman Laure Quinlivan. “To throw this away would be unconscionable.”
City officials also warn that canceling would be pulling back on a light rail project that President Barack Obama’s administration has clearly prioritized.
“The city-federal relationship is excellent right now,” Deatrick says. “There would be immediate damage to that.”
The 200-plus workers currently involved the project would also be displaced. Councilwoman Yvette Simpson points out pausing or canceling the project in December would leave those workers jobless for the holiday season.
Another concern is the impact of cancellation on the relationship between the federal government and Southwest Ohio Regional Transit Authority (SORTA), which operates the Metro bus system and will operate the streetcar if it’s completed. If the city is unable to pay back the grants to the federal government within 30 days, Deatrick says the FTA could cut SORTA grants for bus service and potentially halt some local bus services.
One concern raised by Councilman Chris Seelbach and Councilman-elect Kevin Flynn, one of the three potential swing votes in the incoming council of nine, is whether the project’s estimated return on investment is still 2.7-to-1 over 35 years. That number is derived from a 2007 study conducted by consulting firm HDR, which was later evaluated and affirmed by the University of Cincinnati.
Deatrick points out the numbers were re-evaluated by HDR in 2011, and they still seem to hold true. He says there are still plenty of vacant buildings along the 3.6-mile streetcar line that could use the encouraged investment, despite some of the revitalization seen in the Over-the-Rhine and downtown areas that the streetcar route would cover.
The 2.7-to-1 return on investment is also “a very, very conservative estimate,” says Deatrick. He claims HDR could have relied on numbers from other cities, such as Portland, Ore., that saw considerably better returns on their streetcar systems.
Still, Flynn and Councilman-elect David Mann, another potential swing vote, say they want to scrutinize the cancellation estimates before making a final decision on the project.
Vice Mayor Roxanne Qualls, a long-time streetcar supporter who lost to Cranley in her mayoral bid, encourages a re-examination of the numbers. But she cautions, “If what has been presented today stands up to scrutiny, there’s absolutely no reason to cancel the project.”
Flynn won’t say whether he would reconsider his past opposition to the project if the numbers hold up. But Mann says, “If they do hold up, that’s fairly persuasive.”
Both Flynn and Mann also say that they would be willing to pause the project while clearer estimates are crunched.
But that could present a short time window. If the project doesn’t adequately progress, the federal government could take back its grant money. Based on city officials’ estimates, that provides a 30-day window to re-calculate cancellation costs and the potential return on investment.
Pausing the project would also impose its own set of costs as some workers and equipment are retained.
Councilman P.G. Sittenfeld, who’s also seen as a swing vote, could not be reached for comment. He’s currently in Washington, D.C., to meet with White House officials for an issue unrelated to the streetcar.
Three elected council members already support the streetcar project, so only two of the three potential swing votes would need to vote in favor of it to keep it going.
Updated with Mayor-elect John Cranley’s comments and clearer, corrected numbers.
Mayor-elect John Cranley and the newly elected City Council announced on Tuesday that, upon taking office in December, they will terminate the city’s plan to lease its parking meters, lots and garages to the Greater Cincinnati Port Authority, following an agreement with the Port Authority to hold off on a bond sale that would have financed — and effectively sealed — the deal. But it remains unclear how much it will cost to terminate the plan, default on the lease agreement with the Port Authority and allow the Port to break its contracts with private companies that would have operated the assets under the deal. The current city administration argues the parking plan is necessary to help balance the budget over the next two years, pay for economic development projects around the city and modernize the city’s parking assets so, for example, parking meters can accept credit card payments. Opponents argue the plan gives up too much control over the city’s parking assets by outsourcing their operations to private companies based around the country.
But some business leaders are upset with the death of the parking plan because it leaves no visible alternative for funding major development projects like the interchange at Interstate 71 and Martin Luther King Drive.
Cranley now says he will not allow a referendum on any ordinance undoing the streetcar project and will instead try to work with supporters of the project to find another way to put it on the ballot if they can gather enough petition signatures. Cranley says blocking a referendum is necessary to avoid spending money during a referendum campaign that could last months. But for supporters of the streetcar, Cranley’s decision seems highly hypocritical following his repeated praise for the “people’s sacred right of referendum” on the campaign trail after City Council blocked a referendum on the parking plan. If the project is placed on the ballot, it will essentially be the third time it’s brought to a public vote; opponents of the project in 2009 and 2011 pursued two ballot initiatives that many saw as referendums on the streetcar.
Meanwhile, Over-the-Rhine businesses and residents yesterday officially launched a campaign to save the streetcar project from Cranley and a newly elected City Council that appears poised to cancel the project. Touting the project’s potential return on investment and cancellation costs, the group plans to lobby newly elected officials to vote in favor of keeping the project going. The group invited Cranley and all elected council members to join them at a town hall-style meeting on Nov. 14 at the Mercantile Library, where supporters will discuss their path forward. So far, supporters have publicly discussed a concerted lobbying effort, a ballot initiative if council passes an ordinance undoing the streetcar project and possible legal action against the city.
The Cincinnati Enquirer’s editorial board is apparently unpleasantly surprised that Cranley undid the parking plan, even though the board endorsed Cranley for mayor after he ran in opposition to the parking plan for nearly a year.
An Ohio Senate bill caps the spending ability of the Controlling Board, a seven-member legislative board that previously approved the federally funded Medicaid expansion despite the Ohio legislature’s opposition. Gov. John Kasich angered many Republican legislators when he decided to go through the Controlling Board to get the Medicaid expansion, which is a major part of Obamacare.
Meanwhile, the Ohio legislature is working on changes to Medicaid that would cap future cost increases and employ professional staff for a Joint Medicaid Oversight Committee that would have the ability to review Medicaid programs and agencies. The bill also includes a portion that clarifies its passage “shall not be construed with endorsing, validating or otherwise approving the (Medicaid) expansion.”
Despite attempts from city officials and local business leaders, Saks Fifth Avenue is leaving downtown to open a store at Kenwood Collection.
Kentucky’s state auditor will look at the Cincinnati/Northern Kentucky International Airport board’s spending policies and expenses, following reports from The Enquirer that the board spent exorbitant amounts on travel, dining and counseling.
The Sixth Circuit Court of Appeals denied the Milford-Miami Advertiser’s request to appeal a 2012 ruling that charged the Gannett-owned suburban weekly with defamation and ordered the paper to pay the defamed plaintiff $100,000 in damages. In a story titled “Cop's suspension called best move for city,” the newspaper wrongly implicated a Miami Township police officer who was previously accused but later exonerated of sexual assault.
Attorney General Mike DeWine warns that some typhoon relief requests could be scams.
Not satisfied with the mere wonder of beginning to exist, some stars explode in a rainbow of colors when they’re born.
Traffic can be awful — not just for drivers, but economies
and the environment as well. A study released Tuesday by the Texas A&M Institute
of Transportation found Cincinnati lost about $947 million in 2011 to delays on the road, coming in at No. 27 nationwide.
The Annual Urban Mobility Report also ranked Cincinnati No. 37 nationwide for extra time stuck in traffic, with the average Cincinnati commuter spending an extra 37 hours on the road in 2011. In comparison, the average Columbus commuter spent 40 extra hours in traffic in 2011, and the typical Cleveland commuter spent 31 extra hours. For all three cities, estimates were unchanged from 2010.
Traffic jams also have a major impact on climate change. According to the report, congestion caused cars to produce an extra
56 billion pounds of carbon dioxide nationwide, with Cincinnati commuters producing 421
The report shows why it’s important for governments to reduce traffic congestion with transit projects like the Cincinnati streetcar. In general, public transportation leads to less congestion by taking cars off the road as people use buses, streetcars and trains instead. But some cities have taken it even further. By adopting exclusive lanes for buses and streetcars, cities like San Francisco have made public transportation more attractive, which makes people more likely to forsake their own cars in favor of public alternatives.
“Americans drive fewer total miles today than we did eight years ago, and fewer per person than we did at the end of Bill Clinton’s first term,” the report reads. “The unique combination of conditions that fueled the Driving Boom — from cheap gas prices to the rapid expansion of the workforce during the Baby Boom generation — no longer exists. Meanwhile, a new generation — the Millennials — is demanding a new American Dream less dependent on driving.”
The report also says U.S. transportation policy “remains stuck in the past” and needs to “hit the ‘reset’ button.”
The report, which uses U.S. Department of Transportation data from 2012, found Americans were driving about 9,000 miles a year per person in 2012, down from a peak of nearly 10,000 in 2004. Until the peak, Americans had been driving more miles each year since the end of World War II.
The report finds the driving trend at odds with other means of transportation: “On the other hand, Americans took nearly 10 percent more trips via public transportation in 2011 than we did in 2005. The nation also saw increases in commuting by bike and on foot.”
The report attributes much of the shift to millennials, members of the generation born between 1983 and 2000, which the report says are more likely to demand public transportation and urban and walkable neighborhoods. The new expectations are largely driven by Internet-connected technologies, which are “rapidly spawning new transportation options and shifting the way young Americans relate to one another, creating new avenues for living connected, vibrant lives that are less reliant on driving,” according to the report.
PIRG finds the trend will likely stick as gas prices continue to rise, fewer Americans participate in the labor force and Americans demands less time spent in travel.
Even if millennials begin driving more in the future, the report’s findings show Americans are going to be driving much less in 2040 than federal agencies currently assume. “This raises the question of whether changing trends in driving are being adequately factored into public policy,” the report reads.
The report concludes local, state and federal governments should react to the new trend by planning for uncertainty, accommodating millennials’ demands, reviewing the need for more highway projects, adapting federal priorities, using transportation funds based on cost-benefit analyses and conducting more transportation research.
For Cincinnati, the trend could have implications for two major transportation projects: the MLK/I-71 Interchange and the streetcar.
The streetcar project uses capital funding sources — some uniquely tied to mass transit projects — that some opponents argue should be reallocated to support the MLK/I-71 Interchange project.
But the report’s findings seem to support the city’s current plans to push forward with mass transit projects like the streetcar, even while local funding for the MLK/I-71 Interchange project remains uncertain.
After making changes based on feedback from public meetings, the Ohio Department of Transportation priced the interchange project at $80 million to $102 million, or $10 million to $32 million higher than the previous estimate of $70 million.
The higher price didn’t lead to the same outcry that resulted from the streetcar project’s $17.4 million cost overrun, likely because of the interchange project’s broader support, secure state funding and feedback-driven circumstances.
Still, the city could share some of the higher cost burden for the MLK/I-71 Interchange project. Previously, the city planned to use funds raised by leasing its parking assets to the Port Authority for the interchange, but that plan is currently being held up in court.
In 2012, the city adopted Plan Cincinnati, the city’s first master plan since 1980. The plan advocates for more alternative methods of public transportation, particularly light rail and bike lanes. But the master plan does not establish means of funding, so City Council will have to approve funding over time to implement the plan.
Voters on Tuesday elected John Cranley to the mayor’s office and six council members — out of nine total — who oppose the streetcar project, giving streetcar opponents enough votes to cancel the project once the new government takes power on Dec. 1.
But, as first reported by CityBeat on Oct. 9, cancellation could carry all sorts of costs with $94 million tied to contractual obligations, including supply orders and other expenses from contractors and subcontractors, and $23 million already sunk on the project.
If the city were to cancel, it would also need to return nearly $41 million in grants to the federal government, according to a June 19 letter from the U.S. Department of Transportation.
Canceling the project would cost jobs as well. About 150 laborers are currently working on the project, according to Deatrick. He says there’s also management positions involved, but he couldn’t offer an estimate for those jobs and whether they’re working on the project full- or part-time.
Deatrick says that it’s difficult to pin down how much cancellation would ultimately cost because the issue would likely be worked through litigation as the city tries to minimize cancellation costs and developers — such as Messer Construction, Prus Construction, Delta Railroad and CAF USA — attempt to maximize what they recoup from the project.
Another concern, according to Olberding, is cancellation’s impact on the operating budget. She says the roughly $2 million in federal grant money already spent on the project would have to come out of the operating budget, and litigation costs would come from the operating budget as well.
The capital budget, which is financed through bonds and other forms of debt, pays for capital projects like the streetcar. The operating budget typically goes toward day-to-day operations, including police, firefighters and human services.
The operating budget has been structurally imbalanced since 2001. If millions in litigation costs and repayments to the federal government are added to it, the city could be forced to cut services and jobs or raise taxes.
There are also concerns about how the federal government and Cincinnati’s business partners would react to the cancellation of such a major project. Vice Mayor Roxanne Qualls, Cranley’s opponent in the mayoral race, previously told CityBeat that pulling back on a commitment could break the faith developers and the feds placed in Cincinnati when they agreed to take on the streetcar project.
Cranley and other anti-streetcar elects argue the long-term costs — the $88 million in the capital budget for the current phase of the project, the cost of future expansion and $3-4 million that it would cost to operate the streetcar annually — outweigh even the costs of cancellation.
Cranley previously told CityBeat that he would help developers involved in the project find other work in the city to recoup the revenue lost from the project’s cancellation. He says Messer and Prus in particular are based in and already work heavily in Cincinnati, so it’s unlikely they would try to cut ties with the city.
Streetcar supporters aren’t convinced. If the city pulls out of such a big commitment, officials argue both the federal government and developers could be compelled to look for a more reliable source for future work.
Meanwhile, Deatrick says current construction work is progressing on time and within budget. He expects the track on Elm Street to be laid down between 12th and Henry streets by the end of the year.
As for the next phase of the project, Deatrick says there’s still no estimated cost. He attributes much of the project’s current political problems to construction bids coming in over budget earlier in the year — a turn of events that led City Council to put another $17.5 million to the streetcar project — so he says the city needs to be really careful with future estimates if it decides to expand the streetcar system.
Despite the fresh political threats, the city still intends to conduct meetings with businesses on Nov. 14 and 18 about the benefits of the streetcar. Deatrick says those meetings should show the economic benefits of the rail line that go beyond the streetcar’s use as a transit network.
Supporters of the streetcar often point to those benefits as their reasoning for backing the project. Citing a 2007 study from consulting firm HDR that was later evaluated and supported by the University of Cincinnati, supporters say the streetcar project would produce a three-to-one return on investment.
Deatrick acknowledges those projections are now outdated, given all the changes the project has gone through since 2007. He says the city has people working on updating the numbers and looking at other economic effects the HDR study may have missed.
But opponents of the streetcar project say it’s simply too expensive and the wrong priority for Cincinnati. Still, the potentially high cost of cancellation could prove a bigger fiscal concern.
Either way, Cincinnati should find out the full consequences to the project in December.
City Manager Milton Dohoney Jr. defended the streetcar project at a special four-hour session of City Council yesterday, but the city manager did not reveal any specifics over how the project’s $17.4 million budget gap could be closed. Dohoney revealed the price of halting the project would be $72 million: the project has already cost the city $19.7 million, the city would have to spend another $14.2 million in close-out costs and another $38.1 million in federal grants would have to be returned to the federal government. Most of Dohoney’s presentation focused on the streetcar’s economic benefits, but opponents say the budget gap proves the streetcar project is unsustainable and its costs are too high.
The Cincinnati Enquirer identified the 17-year-old honors student at LaSalle High School who tried to commit suicide
in front of a classroom of 22 other students yesterday, even though parents asked press to provide privacy. The student remains
alive and in critical condition this morning. No other students were physically hurt, and classes are
resuming as normal. (Update: The student’s name was removed from this post upon the family’s request.)
The city is moving to sell Tower Place Mall for $1 to Brook Lane Holdings, an affiliate of JDL Warm Construction, so the construction company can pour $5 million into the defunct mall and convert it into a garage with street-level retail space. Financing the project at Pogue’s Garage, which is across the street from Tower Place Mall, is still being worked out now that the parking plan has been delayed by court battles and a referendum effort.
Cincinnati’s police and firefighter unions are filing a lawsuit over the city’s health care dependent audit. The city is asking employees to verify whether spouses and children are legitimately eligible for health care benefits by turning over documents such as marriage licenses, birth certificates and tax returns. The unions’ attorney told WVXU the unions are willing to provide the necessary documents, but he said they’re concerned the process is too intrusive and difficult.
Two firms are getting tax credits for creating jobs in the Greater Cincinnati area: 5Me, which creates manufacturing software, and Festo Americas, which specializes in factory and process automation. Altogether, the credits could create 312 jobs in the region.
A Democratic state senator hinted yesterday at letting voters decide whether Internet sweepstakes cafes should be allowed in Ohio. State officials, particularly Attorney General Mike DeWine, claim Internet cafes are hubs for criminal activity. The Ohio House already passed a measure that would effectively ban the cafes, but some are cautious of the ban as the Ohio Senate prepares to vote.
An intelligent headlight makes raindrops disappear.
Some people may prefer death to being saved by this terrifying robot snake.
City Council’s Budget and Finance Committee moved forward with two controversial measures in two 5-4 votes today that will allow the city to rehire retirees while still paying their pensions and create an executive project director position for the streetcar project.
One of the measures repeals the city’s ban on “double dipping,” which means rehired retirees will be able to simultaneously cash in a salary and pension payments. The measures will allow the city to hire John Deatrick, the current project manager for The Banks, to head the streetcar project. The city could not previously hire Deatrick because he formally retired from the city and is currently receiving pension payments.
The city says Deatrick has the experience and expertise necessary to help bring the streetcar project’s costs in line, but critics say the city should not be hiring someone for the streetcar project when the city is considering laying off 344 employees, including 189 cops and 80 firefighters, to balance the budget.
Deatrick says the layoffs are unfortunate, but he
emphasizes that they are occurring through the general fund. If he was
hired, Deatrick’s salary would be paid through the capital budget, a
completely separate fund that the city uses for major development
projects. Because of legal and traditional constraints, capital budget funds generally can’t be used to balance the general fund.
“The capital budget generates projects that bring money into the general fund,” Deatrick says.
Deatrick’s point is similar to an argument often touted by City Manager Milton Dohoney Jr., who says the city needs to economically grow out of structural budget deficits. Dohoney and other city officials say the true cause of Cincinnati’s structural budget imbalance has been the city’s dwindling population in the past decade, and bringing people back to Cincinnati through economic development projects, including the streetcar, is a better approach than austerity that would cause more layoffs and economic pain.
Others, particularly Democratic mayoral candidate John Cranley, aren’t convinced. In a press statement that used vocabulary that often comes from streetcar opponent COAST (Coalition Opposed to Additional Spending and Taxes), Cranley said, “Since day one the streetcar has been a poorly conceived, poorly managed boondoggle that is now costing the city even more money. The fact that this being done while police officers and firefighters are facing layoffs is a slap in the face of those who risk so much to make sure that our city is safe.”
But the city says Deatrick’s involvement could help bring
the streetcar project’s costs down, and Deatrick seems to agree.
“That’s been my whole ‘shtick,’ ” Deatrick says, before citing numerous aspects of the streetcar project he would be interested in looking at to bring costs in line.
Opponents have pointed to the streetcar’s multiple problems, including unexpected costs and delays, as proof the project has been doomed from the start. But Deatrick says it’s normal for big projects to deal with hurdles, and he cautions he would expect to deal with more rising problems if he takes the job.
“Any time you try to build something — even out in the middle of a corn field — you’re going to have unexpected, unanticipated issues,” he says. “These things happen, and that’s what project management is all about.”
Deatrick says he has long supported the streetcar, and he plans to expand the project up to the University of Cincinnati and the rest of the uptown area if he’s put in charge.
While Deatrick has discussed heading the streetcar project with city officials, no formal offers have been made yet. Still, City Council members and Dohoney repeatedly named Deatrick as a potential candidate in the special session of City Council today.
Some council members said they were concerned the double-dipping measure will be used for more similar hires in the future, which could raise hiring costs as the city pays for multiple employees’ salaries and pensions at the same time.
Democratic council members Roxanne Qualls, Laure
Quinlivan, Yvette Simpson, Cecil Thomas and Wendell Young supported the
measures. Democrats Chris Seelbach and P.G. Sittenfeld, Republican
Charlie Winburn and Independent Chris Smitherman voted in opposition.
Deatrick’s resume shows experience going back decades. Since June 2008, Deatrick has headed The Banks project, which recently won the American Planning Association’s 2013 National Planning Excellence Award for Implementation (“Bank On It,” issue of Jan. 16).
Before that, he worked as deputy director and chief engineer at the District of Columbia Department of Transportation from May 2002 to August 2007, where he says he helped manage parts of the D.C. streetcar, among other projects.
Prior to his work at D.C., Deatrick started his career as an urban development
technician at Cincinnati’s Department of Transportation and Engineering on September 1973. He helped with many projects around the city before eventually rising to the director position in
November 1999, where he remained until May 2002.
The streetcar is one of the few issues dividing Democratic mayoral candidates Cranley and Qualls, making the 2013 mayoral race another important election for the future of the project (“Back on the Ballot,” issue of Jan. 23).