Supporters of the $133 million streetcar project on Thursday night packed Mercantile Library and Fountain Square to start a two-week campaign that seeks to prevent the incoming mayor and City Council from canceling the ongoing project.
Turnout was particularly strong as supporters reached the 200-person capacity at Mercantile Library before the event started. Another 200 watched the event from the Jumbotron screen at Fountain Square, according to the event's organizers.
In attendance were several Over-the-Rhine business owners and residents; council members P.G. Sittenfeld, Chris Seelbach and Wendell Young; and several supporters of the project from around the city.
The goal of the event was to organize supporters and begin a lobbying campaign to convince the three perceived swing votes in the incoming council — Sittenfeld, David Mann and Kevin Flynn — to support continuing the project. All three have spoken against the streetcar in the past, but they told CityBeat they want to fully account for the project's cancellation costs, completion costs and potential return on investment before making a final decision.
Speakers urged supporters to contact the nine newly elected council members and raise awareness about the streetcar's benefits before Mayor-elect John Cranley, who opposes the streetcar project, and the new City Council take office in December.
Ryan Messer, a lead organizer of the effort to save the streetcar, spoke about the advantages of the streetcar project for much of the event. "This is a good economic tool that helps all of Cincinnati," he repeatedly stated.
Supporters have some empirical evidence to base their claims on. A 2007 study from consulting firm HDR found the streetcar project would generate a 2.7-to-1 return on investment over 35 years. The HDR study was later evaluated and supported by the University of Cincinnati.
Project executive John Deatrick acknowledges the 2007 study is now outdated and the city is working on updating the numbers. But he says the streetcar project is supposed to be viewed as an economic development vehicle, not just another transit option.
Supporters also warned of the potential costs of canceling the streetcar project. Hours before the gathering, Mayor Mark Mallory released a letter from the Federal Transit Administration that explicitly stated the city would lose nearly $41 million in federal grant dollars if the project were canceled, and another $4 million would be placed in the hands of Gov. John Kasich to do as he sees fit.
City spokesperson Meg Olberding previously told CityBeat that the city already spent about $2 million of the federal funds. If the project were canceled, she says the money would have to be repaid through the operating budget that funds police, firefighters and human services instead of the capital budget currently financing the streetcar project.
The operating budget has been structurally imbalanced since 2001, so adding millions in costs to it could force the city to cut services or raise taxes.
The FTA letter might already be playing an influence for at least one of the swing votes on City Council. On the elevator ride up to Mercantile Library, Sittenfeld told Seelbach and CityBeat, "I will say that today's news is a big gain in the pro-streetcar column."
Another threat for the city is potential litigation from contractors, subcontractors, taxpayers and Over-the-Rhine residents and businesses who invested in the project or along the streetcar line with the expectation that the project would be completed.
Litigation costs would also come out of the operating budget, according to Olberding.
"As a trial lawyer, this is actually appealing," said Democratic attorney Don Mooney. "For the city, not so much."
Supporters also outlined the potential damage that pulling from the project could do to the city's image, given that developers, businesses and the federal government have put their support and dollars toward the streetcar.
"Is Cincinnati that city that will dine you and wine you and leave you alone at the altar?" Young asked.
But if the lobbying effort, cancellation costs and threat of litigation aren't enough, supporters also presented one more option to save the streetcar: a ballot initiative. Mayor-elect John Cranley on Thursday told The Cincinnati Enquirer that he would be open to allowing some sort of streetcar referendum on the ballot.
The ultimate goal for supporters of the streetcar, beyond ensuring sustainable growth in the urban core, is to connect all of Cincinnati through a vast transit network, much like the streetcar lines that ran through Cincinnati before the city government dismantled the old system in the 1950s.
That provides little assurance to opponents of the streetcar project. Cranley and at least three hard-liners in the incoming City Council — Amy Murray, Charlie Winburn and Christopher Smitherman — claim the project is too expensive and the wrong priority for Cincinnati. Discussing more phases makes the project appear even costlier to opponents who are already concerned with costs.
In its comprehensive plan for 2040, the Ohio-Kentucky-Indiana Regional Council of Governments put the cost of various extensions — to the University of Cincinnati and surrounding hospitals, the Cincinnati Zoo, the Cincinnati Museum Center and the Broadway Commons area near the Horseshoe Casino — at more than $191 million, or $58 million more than the estimated cost for the current phase.
But if Cincinnati never completes the first phase of the streetcar project, supporters say it could be decades before other light rail options are considered.
Following county commissioner’s Feb. 12 meeting, the dispute between Cincinnati and Hamilton County over contracting rules for Metropolitan Sewer District (MSD) projects appears to be heading to court.
The court battle comes after the county dismissed multiple concessions from the city and put MSD’s revamp of the local sewer system on hold in protest of the city’s rules. With a federal mandate looming, both sides agree a resolution is needed soon to avoid costly fines from the federal government.
For many across the city and county, the conflict is understandably confusing. The debate has often been mired down by biased media reports and political talking points that obfuscate the issue. Jargon referencing “responsible bidder,” “local hire,” “local preference,” unions, apprenticeship programs, a pre-apprenticeship fund and contractors make it even more difficult to grasp what is going on.
Cutting through the politics, here is what the responsible bidder rules actually do and why the city and county seem incapable of compromise.
What is responsible bidder?
It’s a city ordinance that essentially forces MSD contractors to adopt job training measures known as apprenticeship programs and pay for a pre-apprenticeship fund. By requiring the training options, the city hopes workers will be able to improve their skills and successfully transition to other jobs once their MSD work is finished.
Apprenticeship programs take workers through extensive on-the-job and classroom-based training in which they can hone their skills in a specific craft, such as electrical or plumbing work. Because workers get paid for their work while participating in an apprenticeship, the programs are typically characterized as an “earn-while-you-learn” model.
The pre-apprenticeship fund will put money toward programs that will teach newcomers basic skills, such as math and reading, so they can eventually move up to an apprenticeship program.
The rules don’t apply to every MSD contractor. Contracts worth less than $400,000, which make up roughly half of MSD’s sewer revamp, are exempted.
What about local hire and local preference?
Those are ordinances separate from responsible bidder that give preference to Cincinnati-based businesses. They try to keep MSD contracts within local companies.
What’s the conflict about?
The conflict is between Cincinnati and Hamilton County, which jointly run MSD. The Democrat-controlled city supports the rules, while the Republican-controlled county opposes them.
The city and county also dispute which governing body can set policy for MSD. Under a 1968 agreement, the county owns and funds MSD, and the city operates and maintains it. City Council argues the agreement allows the city to set policy for MSD, but the county disagrees. Both sides acknowledge the set-up is far from ideal.
So, did the city’s rules halt MSD projects?
No. Nothing in the city’s ordinances forces MSD projects to stop. County commissioners singlehandedly halted MSD projects in protest of the city’s rules. If it were up to the city, work would continue today.
Why are these projects so important?
By federal decree, the city needs to revamp the sewer system to bring it up to environmentally safe standards. The project will cost $3.2 billion over 15-20 years, making it one of the most expensive in the city’s history.
If the city and county don’t carry on with the revamp soon, the federal government will begin issuing fines. By some guesses, the fines could begin rolling in by the end of the year.
Why does a majority of City Council support responsible bidder?
Councilman Chris Seelbach, the Democrat who championed the rules, says they will boost local employment and create more job training options for the city’s struggling workforce.
Other Democrats on council agree, although some, like Councilman P.G. Sittenfeld, believe the ordinance is “imperfect.”
Does responsible bidder benefit workers?
Some research suggests it would.
The left-leaning Center for American Progress (CAP) in a December report argued apprenticeship programs provide an opportunity to revitalize the U.S. workforce.
“By 2020, America is projected to experience a shortage of 3 million workers with associate’s degrees or higher and 5 million workers with technical certificates and credentials,” the report claimed. “Compounding our inadequate workforce development system, research shows that employers are now spending less on training than they have in the past. At the same time, industry surveys show that a lack of qualified workers is a top concern for many employers.”
Citing a 2012 study from Mathematica Policy Research, CAP estimated apprenticeship programs alone can boost a worker’s lifetime earnings and benefits by more than $300,000. Over 36 years of employment, that’s an average gain of nearly $8,400 a year.
Why do county commissioners oppose the rules?
In terms of policy, county commissioners say the responsible bidder rules favor unions and burden businesses.
On a legal basis, the county argues the city’s responsible bidder rules conflict with state law and the local hire and preference rules enforce unconstitutional geographic preferences.
Does responsible bidder actually favor unions?
Since unions tend to offer better and more apprenticeship programs, yes.
But the rules don’t exclude non-union businesses from participating. For example, Ohio Valley Associated Builders and Contractors maintains some non-union apprenticeship programs that would qualify under the law.
Still, most of the union favoritism debate centered around a regulation the city actually offered to give up. Specifically, under current rules employers are only eligible to contract with MSD if they have apprenticeship programs that have graduated at least one person a year for the past five years. In October, Seelbach offered to strip the mandate and replace it with an incentive program. The county seemed unmoved by the proposal.
What about businesses? Does responsible bidder burden them?
By requiring businesses to adopt apprenticeship programs and put 10 cents for each hour of labor into a pre-apprenticeship fund, the law certainly places more regulations on businesses. Whether the requirements are a burden is subjective.
John Morris, president of the Ohio Valley Associated Builders and Contractors and an opponent of the law, told CityBeat the pre-apprenticeship fund’s requirement will increase business costs by $2-3 million over 15-20 years.
Citing MSD estimates for the cost of labor, Rob Richardson, regional manager of the Laborers’ International Union of North America, said the fund will cost businesses $1.5 million.
Even if someone accepts Morris’ estimate, the requirement adds up to at most 0.1 percent of the $3.2 billion project.
More broadly, some supporters of the city’s rules question whether placing a burden on businesses is innately a bad thing. The basic point of government regulations is to make the economy and businesses work better for the public. In that sense, regulations are always going to burden businesses to some extent.
For example, financial regulations burden big banks and financial institutions. But many Americans agree the regulations are necessary to avoid another financial crisis like the one that plunged the country into the Great Recession.
Still, critics argue the extra regulations would increase the cost of business, and the impact could ultimately be felt by MSD ratepayers.
Why don’t the city and county just compromise?
They kind of tried, but it seems the philosophical split between Hamilton County Republicans and Cincinnati Democrats is too strong to reach a substantial agreement.
The city, for example, has offered multiple concessions to the county. In May, City Council modified the law to ease some requirements and add an exemption for contracts worth less than $400,000, which covers half of the contracts involved in MSD’s sewer revamp. In October, Seelbach offered to replace a strict mandate with a looser incentive program. Seelbach also told CityBeat on Feb. 6 that he would consider raising the contract exemption from $400,000 to $750,000.
In return, the county rejected the concessions and instead offered to establish aspirational inclusion goals and some funding for local job training programs — as long as the city repealed its rules altogether.
Which side would win the court battle?
It’s hard to say. Both sides — and their lawyers — seem pretty confident about their legal standing.
So what’s next?
At the current rate, it looks like the city and county are heading to court. Whether the process involves a full-on legal battle or mediation between the city and county’s lawyers remains uncertain, but it’s clear something will eventually have to give.
This blog post will be regularly updated as the situation develops.
A community group known for its controversial and antagonistic tactics is asking other neighborhood organizations to take a vote on whether they support Cincinnati's proposed streetcar project.
In a recent e-mail sent to leaders of the city's network of neighborhood councils, John Sess, president of the Westwood Civic Association, wants to gauge sentiment about the project. Sess states he will be "keeping tracks of the results," presumably to lobby city officials to reconsider the project.
A Charter Committee leader says the group wasn't aware that one of its endorsed candidates — who also happens to be a Charter board member — was seeking the Democratic Party's endorsement.
But Charter chairwoman Dawn Denno said Yvette Simpson, the board member who's running for Cincinnati City Council this fall, won't have to give up her Charter endorsement. Simpson can remain cross-endorsed in the race because she first sought Charter's endorsement, Denno added.
The man that some City Council members want to put in control of policing in Cincinnati once blamed liberal judges, feminists, atheists, civil libertarians, and gays and lesbians as responsible for crime in U.S. society.
Cincinnati officials spent five years and millions of dollars trying to improve police-community relations in the wake of the 2001 riots, as part of a series of reforms mandated by a federal court that became known as the Collaborative Agreement. Now some of the people involved in that process are worried that a proposal to abolish the local Police Department and contract services to the Hamilton County Sheriff's Office could jeopardize the progress.
Some rank-and-file Democrats — including a few Democratic candidates for Cincinnati City Council — are angry with first-time contender Laure Quinlivan’s campaigning tactics, and are letting the party’s chairman know.
Quinlivan’s detractors dislike her public criticism of other Democratic incumbents on council, as well as her recommendation for voters to use “bullet voting” so their choices have more impact.
As Laketa Cole prepares to leave Cincinnati City Council for a state government job, sources say she’s settled on Wendell Young as her replacement.
Multiple sources at City Hall and within the Democratic Party are talking about Young’s apparent selection and expressing surprise because he has ran unsuccessfully in three City Council elections and finished in 14th place in 2009’s balloting for the nine council seats, behind fellow Democrats Greg Harris (10th) and Bernadette Watson (11th).
As part of CityBeat's continuing election coverage, we’ve once again sent a questionnaire to the non-incumbent Cincinnati City Council candidates to get their reactions on a broad range of issues.
Nine of the 14 non-incumbents chose to answer our questions. Others either didn’t respond or couldn’t meet the deadline.
During the next few weeks, we will print the responses from the non-incumbents to a different topic each time.
Today’s question is, “What is your stance on the city's Environmental Justice Ordinance? Should it be retained or repealed?”
As has become the norm during the last few election cycles, Cincinnati's police union is reluctant to publicly reveal its full slate of endorsements, for some strange reason. No matter: CityBeat managed to get this year's information.
Working through multiple sources at different campaigns, we've compiled what we believe to be an all-inclusive list of endorsements made by the Fraternal Order of Police (FOP), Queen City Lodge No. 69.